Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2021 | May 01, 2021 | |
Document And Entity Information | ||
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2021 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Registrant Name | OneSpan Inc. | |
Entity File Number | 000-24389 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 36-4169320 | |
Entity Address, Address Line One | 121 West Wacker Drive, Suite 2050 | |
Entity Address, City or Town | Chicago | |
Entity Address, State or Province | IL | |
Entity Address, Postal Zip Code | 60601 | |
City Area Code | 312 | |
Local Phone Number | 766-4001 | |
Title of 12(b) Security | Common Shares | |
Trading Symbol | OSPN | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 40,265,066 | |
Entity Central Index Key | 0001044777 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash and equivalents | $ 70,819 | $ 88,394 |
Short term investments | 44,388 | 26,859 |
Accounts receivable, net of allowances of $4,170 in 2021 and $4,135 in 2020 | 47,892 | 57,537 |
Inventories, net | 11,346 | 13,093 |
Prepaid expenses | 7,587 | 7,837 |
Contract assets | 5,090 | 7,202 |
Other current assets | 9,602 | 6,256 |
Total current assets | 196,724 | 207,178 |
Property and equipment, net | 11,722 | 11,835 |
Operating lease right-of-use assets | 10,559 | 11,356 |
Goodwill | 97,453 | 97,552 |
Intangible assets, net of accumulated amortization | 25,697 | 27,196 |
Deferred income taxes | 7,450 | 7,030 |
Contract assets - non-current | 1,363 | 1,877 |
Other assets | 11,509 | 11,179 |
Total assets | 362,477 | 375,203 |
Current liabilities | ||
Accounts payable | 5,788 | 5,684 |
Deferred revenue | 43,162 | 43,417 |
Accrued wages and payroll taxes | 15,231 | 13,649 |
Short-term income taxes payable | 967 | 2,618 |
Other accrued expenses | 9,379 | 8,334 |
Deferred compensation | 75 | 1,602 |
Total current liabilities | 74,602 | 75,304 |
Long-term deferred revenue | 11,651 | 11,730 |
Long-term lease liabilities | 11,661 | 12,399 |
Other long-term liabilities | 10,249 | 10,423 |
Long-term income taxes payable | 6,095 | 6,095 |
Deferred income taxes | 1,739 | 1,912 |
Total liabilities | 115,997 | 117,863 |
Stockholders' equity | ||
Preferred stock: 500 shares authorized, none issued and outstanding at December 31, 2021 and 2020 | ||
Common stock: $.001 par value per share, 75,000 shares authorized; 40,265 and 40,103 shares issued; 40,265 and 40,103 shares outstanding at March 31, 2021 and December 31, 2020, respectively | 40 | 40 |
Additional paid-in capital | 98,022 | 98,819 |
Treasury stock, at cost, 250 and 250 shares outstanding at December 31, 2020 and 2019, respectively | (5,030) | (5,030) |
Retained earnings | 164,602 | 173,731 |
Accumulated other comprehensive loss | (11,154) | (10,220) |
Total stockholders' equity | 246,480 | 257,340 |
Total liabilities and stockholders' equity | $ 362,477 | $ 375,203 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||
Accounts receivable, allowance for doubtful accounts | $ 4,170 | $ 4,135 |
Preferred stock, shares authorized | 500,000 | 500,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 75,000,000 | 75,000,000 |
Common stock, shares issued | 40,356,000 | 40,103,000 |
Common stock, shares outstanding | 40,265,000 | 40,103,000 |
Treasury stock, at cost | 250 | 250 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenue | ||
Total revenue | $ 50,775 | $ 56,370 |
Cost of goods sold | ||
Costs of sales | 15,322 | 16,070 |
Gross profit | 35,453 | 40,300 |
Operating costs | ||
Sales and marketing | 18,379 | 14,859 |
Research and development | 12,244 | 9,994 |
General and administrative | 12,551 | 12,268 |
Amortization / impairment of intangible assets | 1,573 | 2,354 |
Total operating costs | 44,747 | 39,475 |
Operating income (loss) | (9,294) | 825 |
Interest income, net | 4 | 207 |
Other income (expense), net | (362) | (338) |
Income (loss) before income taxes | (9,652) | 694 |
Provision (benefit) for income taxes | (501) | 690 |
Net income (loss) | $ (9,151) | $ 4 |
Net income (loss) per share | ||
Basic | $ (0.23) | $ 0 |
Diluted | $ (0.23) | $ 0 |
Weighted average common shares outstanding | ||
Basic | 39,996 | 40,127 |
Diluted | 39,996 | 40,338 |
Product and license | ||
Revenue | ||
Total revenue | $ 28,445 | $ 38,260 |
Cost of goods sold | ||
Costs of sales | 9,541 | 10,738 |
Services and other | ||
Revenue | ||
Total revenue | 22,330 | 18,110 |
Cost of goods sold | ||
Costs of sales | $ 5,781 | $ 5,332 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | ||
Net income (loss) | $ (9,151) | $ 4 |
Other comprehensive loss | ||
Cumulative translation adjustment, net of tax | (919) | (4,278) |
Unrealized gains (losses) on available-for-sale securities | (15) | |
Pension adjustment, net of tax | (6) | |
Comprehensive income (loss) | $ (10,085) | $ (4,280) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Common Stock | Treasury - Common Stock | Additional Paid-In Capital | Accumulated IncomeCumulative Effect, Period of Adoption, Adjustment [Member] | Accumulated Income | Accumulated Other Comprehensive Income (Loss)Cumulative Effect, Period of Adoption, Adjustment [Member] | Accumulated Other Comprehensive Income (Loss) | Cumulative Effect, Period of Adoption, Adjustment [Member] | Total |
Balance at Dec. 31, 2019 | $ 262,294 | ||||||||
Balance at Dec. 31, 2019 | $ 40 | $ 96,109 | $ 179,440 | $ (13,295) | 262,294 | ||||
Balance (in shares) at Dec. 31, 2019 | 40,207 | ||||||||
Change in Stockholders' Equity | |||||||||
Net income (loss) | 4 | 4 | |||||||
Foreign currency translation adjustment, net of tax | (4,278) | (4,278) | |||||||
Restricted stock awards | 1,350 | 1,350 | |||||||
Restricted stock awards, Shares | 168 | ||||||||
Tax payments for stock issuances | (293) | (293) | |||||||
Tax payments for stock issuances, Shares | (61) | ||||||||
Pension adjustment, net of tax | (6) | (6) | |||||||
Balance at Mar. 31, 2020 | 258,817 | ||||||||
Balance at Mar. 31, 2020 | $ 40 | 97,166 | $ (254) | 179,190 | $ 0 | (17,579) | $ (254) | 258,817 | |
Balance (in shares) at Mar. 31, 2020 | 40,314 | ||||||||
Balance at Dec. 31, 2020 | $ 40 | $ (5,030) | 98,819 | 173,731 | (10,220) | 257,340 | |||
Balance (in shares) at Dec. 31, 2020 | 40,103 | 250 | |||||||
Change in Stockholders' Equity | |||||||||
Net income (loss) | (9,151) | (9,151) | |||||||
Foreign currency translation adjustment, net of tax | 22 | (919) | (897) | ||||||
Restricted stock awards | 1,342 | 1,342 | |||||||
Restricted stock awards, Shares | 248 | ||||||||
Tax payments for stock issuances | (2,139) | (2,139) | |||||||
Tax payments for stock issuances, Shares | (86) | ||||||||
Unrealized gains (losses) on available-for-sale securities | (15) | (15) | |||||||
Balance at Mar. 31, 2021 | $ 40 | $ (5,030) | $ 98,022 | $ 164,602 | $ (11,154) | $ 246,480 | |||
Balance (in shares) at Mar. 31, 2021 | 40,265 | 250 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Cash flows from operating activities: | |||
Net income (loss) from operations | $ (9,151) | $ 4 | |
Adjustments to reconcile net income (loss) from operations to net cash provided by (used in) operations: | |||
Depreciation and amortization of intangible assets | 2,310 | 3,019 | |
Loss on disposal of assets | 22 | 88 | |
Deferred tax benefit | (732) | (306) | |
Stock-based compensation | 1,342 | 1,350 | |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | 8,588 | (1,817) | |
Inventories, net | 1,748 | 1,445 | |
Contract assets | 2,346 | (442) | |
Accounts payable | 140 | (1,663) | |
Income taxes payable | (1,634) | (4,735) | |
Accrued expenses | 3,090 | (2,104) | |
Deferred compensation | (1,527) | 418 | |
Deferred revenue | 322 | 4,166 | |
Other assets and liabilities | (3,281) | (1,775) | |
Net cash provided by operating activities | 3,583 | (2,352) | |
Cash flows from investing activities: | |||
Purchase of short term investments | (25,234) | (6,642) | |
Maturities of short term investments | 7,565 | 6,500 | |
Additions to property and equipment | (755) | (1,516) | |
Other | (16) | (13) | |
Net cash provided by (used in) investing activities | (18,440) | (1,671) | |
Cash flows from financing activities: | |||
Tax payments for restricted stock issuances | (2,139) | (293) | |
Net cash used in financing activities | (2,139) | (293) | |
Effect of exchange rate changes on cash | (558) | (342) | |
Net increase (decrease) in cash | (17,554) | (4,658) | |
Cash, cash equivalents, and restricted cash, beginning of period | 89,241 | 85,129 | |
Cash, cash equivalents, and restricted cash, end of period | [1] | 71,687 | 80,471 |
Supplemental cash flow disclosures: | |||
Restricted Cash | $ 900 | $ 800 | |
[1] | End of period cash, cash equivalents, and restricted cash includes $0.9 million and $0.8 million of restricted cash at March 31, 2021 and March 31, 2020, respectively. |
Description of the Company and
Description of the Company and Basis of Presentation | 3 Months Ended |
Mar. 31, 2021 | |
Description of the Company and Basis of Presentation | |
Description of the Company and Basis of Presentation | Note 1 – Description of the Company and Basis of Presentation Description of the Company OneSpan Inc. and its wholly owned subsidiaries design, develop, market and support hardware and software security systems that manage and secure access to information assets. OneSpan has operations in Austria, Australia, Belgium, Brazil, Canada, China, France, Japan, The Netherlands, Singapore, Switzerland, the United Arab Emirates, the United Kingdom (U.K), and the United States (U.S.). In accordance with ASC 280, Segment Reporting, our operations are reported as a single operating segment. The chief operating decision maker is the Chief Executive Officer who reviews the statement of operations of the Company on a consolidated basis, makes decisions and manages the operations of the Company as a single operating segment. Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of OneSpan and its subsidiaries and have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Accordingly, they do not include all of the information and notes required by generally accepted accounting principles in the United States (“U.S. GAAP”) for complete financial statements and should be read in conjunction with the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. In the opinion of management, the accompanying unaudited condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements, and include all adjustments, consisting only of normal recurring adjustments, necessary for the fair presentation of the results of the interim periods presented. All intercompany accounts and transactions have been eliminated. Operating results for the three months ended March 31, 2021 are not necessarily indicative of the results that may be expected for the year ended December 31, 2021, particularly in light of the novel coronavirus (COVID-19) pandemic and its effects on domestic and global economies. We continue to actively address the effects of the COVID-19 pandemic and its impact globally. Beginning in the Summer of 2020 and continuing through the remainder of 2020, we experienced lengthened sales cycles and reduced demand for some of our security solutions due to economic uncertainty connected to the COVID-19 pandemic. While we hope that the negative consequences on our business associated with the COVID-19 pandemic will subside in 2021, we cannot predict the impact with certainty. Revision of Previously Issued Financial Statements We have revised amounts reported in previously issued financial statements for the periods presented in this Quarterly Report on Form 10-Q related to immaterial errors. The errors relate to certain contracts with customers involving term-based software licenses and related maintenance and support services. The net contract assets that originated from a portion of these contracts in prior periods were not properly accounted for in subsequent periods, which caused overstatements of revenue in prior periods. We evaluated the aggregate effects of the errors to our previously issued financial statements in accordance with SEC Staff Accounting Bulletins No. 99 and No. 108 and, based upon quantitative and qualitative factors, determined that the errors were not material to the previously issued financial statements and disclosures included in our Annual Reports on Form 10-K for the years ended December 31, 2019 and 2018, or for any quarterly periods included therein or through our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2020. The following tables present the effects of the aforementioned revisions on our unaudited condensed consolidated statement of operations for the three months ended March 31, 2020, our unaudited condensed consolidated statement of comprehensive loss for the three months ended March 31, 2020, our unaudited condensed consolidated statement of stockholders’ equity for the three months ended March 31, 2020, and our unaudited condensed consolidated statement of cash flows for the three months ended March 31, 2020 (in thousands). Condensed Consolidated Statement of Operations (Unaudited) Three Months Ended March 31, 2020 in thousands As Previously Reported Adjustments As Revised Revenue Product and license $ 38,260 $ — $ 38,260 Services and other 18,232 (122) 18,110 Total revenue 56,492 (122) 56,370 Gross Profit 40,422 (122) 40,300 Operating income 947 (122) 825 Income before income taxes 816 (122) 694 Provision for income taxes 718 (28) 690 Net Income 98 (94) 4 Condensed Consolidated Statement of Comprehensive Loss (Unaudited) Three Months Ended March 31, 2020 in thousands As Previously Reported Adjustments As Revised Net income $ 98 $ (94) $ 4 Comprehensive loss (4,186) (94) (4,280) Condensed Consolidated Statement of Stockholders’ Equity (Unaudited) Total Stockholders' Equity in thousands As Previously Reported Adjustments As Revised Balance at December 31, 2019 $ 264,021 $ (1,727) $ 262,294 Net income 98 (94) 4 Balance at March 31, 2020 $ 260,639 $ (1,822) $ 258,817 Condensed Consolidated Statement of Cash Flows (Unaudited) Three months ended March 31, 2020 in thousands As Previously Reported Adjustments As Revised Cash flows from operating activities: Net income $ 98 $ (94) $ 4 Changes in operating assets and liabilities: Contract assets (564) 122 (442) Income taxes payable (4,707) (28) (4,735) Net cash used in operating activities (2,352) — (2,352) Principles of Consolidation The consolidated financial statements include the accounts of OneSpan Inc. and its wholly owned subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. Estimates and Assumptions The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. 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 financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Foreign Currency Translation and Transactions The financial position and results of the operations of the majority of the Company’s foreign subsidiaries are measured using the local currency as the functional currency. Accordingly, assets and liabilities are translated into U.S. Dollars using current exchange rates as of the balance sheet date. Revenue and expenses are translated at average exchange rates prevailing during the year. Translation adjustments arising from differences in exchange rates are charged or credited to other comprehensive income (loss). Gains and losses resulting from foreign currency transactions are included in the condensed consolidated statements of operations in other income (expense), net. Foreign exchange transaction losses aggregated $0.7 million for the three months ended March 31, 2021 and $0.5 million for the three months ended March 31, 2020. The financial position and results of our operations in Singapore, Switzerland, and Canada are measured in U.S. Dollars. For these subsidiaries, gains and losses that result from foreign currency transactions are included in the consolidated statements of operations in other income (expense), net. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2021 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | Note 2 – Summary of Significant Accounting Policies There have been no changes to the significant accounting policies described in the Annual Report on Form 10-K for the year ended December 31, 2020, filed with the SEC on February 25, 2021 that have had a material impact on the Company’s condensed consolidated financial statements and related notes. Cash, Cash Equivalents and Restricted Cash We are in lease agreements that require letters of credit to secure the obligations. The restricted cash related to these letters of credit is recorded in other non-current assets on the Condensed Consolidated Balance Sheet in the amounts of $0.9 million and $0.8 million at March 31, 2021 and December 31, 2020, respectively. Equity Method Investment We apply the equity method of accounting to our investment in Promon AS (Promon), because we exercise significant influence, but not controlling interest, in the investee. Promon is a technology company headquartered in Norway that specializes in mobile app security, whose solutions focus largely on Runtime Application Self-Protection (RASP). We exercise significant influence over Promon as a result of our 17% ownership interest in Promon, our representation on Promon’s Board of Directors, and the significance to Promon of our business activities with them. We integrate Promon’s RASP technology into our software solution, which are licensed to our customers. Under the equity method of accounting, the Company’s proportionate share of the net earnings (losses) of Promon is reported in other income (expense), net in our condensed consolidated Statements of Operations. The impact of the proportionate share of net earnings (losses) were immaterial for the three months ended March 31, 2021 and 2020 as were the relative size of Promon’s assets and operations in relation to the Company’s. The carrying value of our equity method investment is reported in other noncurrent assets in the condensed consolidated Balance Sheets and is reported originally at cost and adjusted each period for the Company’s share of the investee’s earnings (losses) and dividends paid, if any. The Company also assesses the investment for impairment whenever events or changes in circumstances indicate that the carrying value of the investment may not be recoverable. The Company did not record any impairment charges during the three month periods ended March 31, 2021 and 2020. The Company recorded $1.6 million and $1.2 million in costs of sales during the three months ended March 31, 2021 and March 31, 2020, respectively for license fees owed to Promon for use of their software and technology. The Company owed Promon $2.7 million as of March 31, 2021, which is included in accounts payable and accrued liabilities. Recently Issued Accounting Pronouncements In December 2019, the FASB issued ASU 2019-12, Simplification for Accounting for Income Taxes In March 2020, the FASB issued ASU 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting From time to time, new accounting pronouncements are issued by the FASB or other standard setting bodies that are adopted by us as of the specified effective date. Unless otherwise discussed, our management believes that the issued standards that are not yet effective will not have a material impact on our consolidated financial statements upon adoption. |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2021 | |
Revenue | |
Revenue | Note 3 – Revenue We recognize revenue in accordance with ASC 606 “Revenue from Contracts with Customers” Disaggregation of Revenues The following tables present our revenues disaggregated by major products and services, geographical region and timing of revenue recognition. Revenue by major products (in thousands) Three months ended March 31, 2021 2020 Hardware products $ 17,668 $ 19,738 Software licenses 10,777 18,522 Subscription 8,405 5,707 Professional services 1,402 1,421 Maintenance, support and other 12,523 10,982 Total Revenue $ 50,775 $ 56,370 Revenue by location of customer for the three months ended March 31, 2021 and 2020 (in thousands) EMEA Americas APAC Total Total Revenue: 2021 $ 26,989 $ 16,528 $ 7,258 $ 50,775 2020 $ 33,604 $ 12,333 $ 10,433 $ 56,370 Percent of Total: 2021 53 % 33 % 14 % 100 % 2020 59 % 22 % 19 % 100 % Timing of revenue recognition (in thousands) Three months ended March 31, 2021 2020 Products and Licenses transferred at a point in time $ 28,445 $ 38,260 Services transferred over time 22,330 18,110 Total Revenue $ 50,775 $ 56,370 Contract balances The following table provides information about receivables, contract assets and contract liabilities from contracts with customers. March 31, December 31, 2021 2020 Receivables, inclusive of trade and unbilled $ 47,892 $ 57,537 Contract Assets (current and non-current) $ 6,453 $ 9,079 Contract Liabilities (Deferred Revenue current and non-current) $ 54,813 $ 55,147 Contract assets relate primarily to multi-year term license arrangements and the remaining contractual billings. These contract assets are transferred to receivables when the right to billing occurs, which is normally over 3 - 5 years . The contract liabilities primarily relate to the advance consideration received from customers for subscription and maintenance services. Revenue is recognized for these services over time. As a practical expedient, we do not adjust the promised amount of consideration for the effects of a significant financing component when we expect, at contract inception, that the period between our transfer of a promised product or service to a customer and when the customer pays for that product or service will be one year Revenue recognized during the three months ended March 31, 2021 included $15.0 million that was included on the December 31, 2020 balance sheet in contract liabilities. Deferred revenue increased in the same period due to timing of annual renewals. Transaction price allocated to the remaining performance obligations The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period. in thousands 2021 2022 2023 Beyond 2023 Total Future revenue related to current unsatisfied performance obligations $ 17,467 $ 15,600 $ 10,020 $ 6,652 $ 49,739 The Company applies practical expedients and does not one year Costs of obtaining a contract The Company incurs incremental costs related to commissions, which can be directly tied to obtaining a contract. The Company capitalizes commissions associated with certain new contracts and amortizes the costs over a period of benefit based on the transfer of goods or services that we have determined to be up to seven years . The Amortization is reflected in Sales and Marketing in the Statements of Operations. We determined the period of benefit by taking into consideration our customer contracts, our technology and other factors, including customer attrition. Commissions are earned upon invoicing to the customer. For contracts with multiple year payment terms, as the commissions that are payable after year 1 are payable based on continued employment, they are expensed when incurred . Applying the practical expedient, the Company recognizes the incremental costs of obtaining contracts as an expense when incurred if the amortization period for the assets that the Company otherwise would have recognized is one year or less. These costs are included in Sales and Marketing expense in the condensed consolidated statements of operations. The following tables provide information related to the capitalized costs and amortization recognized in the current and prior periods: in thousands March 31, 2021 December 31, 2020 Capitalized costs to obtain contracts, current $ 1,380 $ 1,222 Capitalized costs to obtain contracts, non-current $ 5,635 $ 5,464 Three months ended March 31, in thousands 2021 2020 Amortization of capitalized costs to obtain contracts $ 310 $ 169 Impairments of capitalized costs to obtain contracts $ - $ - |
Inventories, net
Inventories, net | 3 Months Ended |
Mar. 31, 2021 | |
Inventories, net | |
Inventories, net | Note 4 – Inventories, net Inventories, net, consisting principally of hardware and component parts, are stated at the lower of cost or net realizable value. Cost is determined using the FIFO method. Inventories, net are comprised of the following: March 31, December 31, 2021 2020 (in thousands) Component parts $ 5,372 $ 5,439 Work-in-process and finished goods 5,974 7,654 Total $ 11,346 $ 13,093 |
Goodwill
Goodwill | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill | |
Goodwill | Note 5 – Goodwill Goodwill activity for the three months ended March 31, 2021 consisted of the following: in thousands Net balance at December 31, 2020 $ 97,552 Net foreign currency translation (99) Net balance at March 31, 2021 $ 97,453 No impairment of goodwill was recorded during the three months ended March 31, 2021 or March 31, 2020. |
Intangible Assets
Intangible Assets | 3 Months Ended |
Mar. 31, 2021 | |
Intangible Assets | |
Intangible Assets | Note 6 – Intangible Assets Intangible asset activity for the three months ended March 31, 2021 is detailed in the following table. in thousands Acquired Technology Customer Relationships Other Total Intangible Assets Net balance at December 31, 2020 $ 2,277 $ 23,200 $ 1,719 $ 27,196 Additions 2 — 14 16 Disposals — — (21) (21) Net foreign currency translation 17 66 (4) 79 Amortization expense (387) (999) (187) (1,573) Net balance at March 31, 2021 $ 1,909 $ 22,267 $ 1,521 $ 25,697 March 31, 2021 balance at cost $ 43,405 $ 40,055 $ 13,555 $ 97,015 Accumulated amortization (41,496) (17,788) (12,034) (71,318) Net balance at March 31, 2021 $ 1,909 $ 22,267 $ 1,521 $ 25,697 Certain intangible assets are denominated in functional currencies besides the U.S. dollar and are subject to currency fluctuations. No impairment of intangible assets was recorded during the three months ended March 31, 2021 or March 31, 2020. |
Property and Equipment
Property and Equipment | 3 Months Ended |
Mar. 31, 2021 | |
Property and Equipment | |
Property and Equipment | Note 7 – Property and Equipment The major classes of property and equipment are as follows: in thousands March 31, 2021 December 31, 2020 Office equipment and software $ 13,788 $ 13,540 Leasehold improvements 10,388 10,593 Furniture and fixtures 3,875 3,827 Total 28,051 27,960 Accumulated depreciation (16,329) (16,125) Property and equipment, net $ 11,722 $ 11,835 Depreciation expense was $0.7 million and $0.7 million for the three months ended March 31, 2021 and March 31, 2020, respectively. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Measurements | |
Fair Value Measurements | Note 8 – Fair Value Measurements The fair values of cash equivalents, receivables, net, and accounts payable approximate their carrying amounts due to their short duration. The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable. Observable inputs reflect assumptions market participants would use in pricing an asset or liability based on market data obtained from independent sources while unobservable inputs reflect a reporting entity’s pricing base upon its own market assumptions. The Company classifies its investments in debt securities as available-for-sale. In accordance with ASU 2016-13, Measurement of Credit Losses on Financial Instruments , we review available-for-sale debt securities for impairments related to losses and other factors each quarter. Unrealized gains and losses are recorded to other comprehensive income. The unrealized gains and losses on the available-for-sale debt securities were not material as of March 31, 2021 and December 31, 2020. The estimated fair value of our financial instruments has been determined by using available market information and appropriate valuation methodologies, as defined in ASC 820, Fair Value Measurements ● Level 1 – Inputs are quoted prices in active markets for identical assets or liabilities. ● Level 2 – Inputs are quoted prices for similar assets or liabilities in an active market, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable and market-corroborated inputs which are derived primarily from or corroborated by observable market data. ● Level 3 – Inputs are derived from valuation techniques in which one or more significant inputs or value drivers are unobservable. The following tables summarize assets that are measured at fair value on a recurring basis as of March 31, 2021 and December 31, 2020: Fair Value Measurement at Reporting Date Using in thousands March 31, 2021 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: U.S. Treasury Notes $ 2,439 - $ 2,439 - Corporate Notes / Bonds $ 13,307 - $ 13,307 - Commercial Paper $ 7,596 - $ 7,596 - U.S. Treasury Bills $ 4,824 - $ 4,824 - U.S. Government Agencies $ 16,223 - $ 16,223 - Fair Value Measurement at Reporting Date Using in thousands December 31, 2020 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: U.S. Treasury Notes $ 4,951 - $ 4,951 - Corporate Notes / Bonds $ 8,780 - $ 8,780 - Commercial Paper $ 4,098 - $ 4,098 - U.S. Treasury Bills $ 5,292 - $ 5,292 - U.S. Government Agencies $ 3,738 - $ 3,738 - |
Allowance for credit losses
Allowance for credit losses | 3 Months Ended |
Mar. 31, 2021 | |
Allowance for credit losses | |
Allowance for credit losses | Note 9 – Allowance for credit losses The changes in the allowance for credit losses during the three months ended March 31, 2021 were as follows: in thousands Balance at December 31, 2020 $ 4,135 Provision 290 Write-offs (253) Net foreign currency translation (2) Balance at March 31, 2021 $ 4,170 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Leases | Note 10 – Leases Operating lease cost details for the three months ended March 31, 2021 and 2020 are as follows: Three months ended March 31, 2021 2021 2020 (in thousands) Building rent $ 570 $ 691 Automobile rentals 333 352 Total net operating lease costs $ 903 $ 1,043 At March 31, 2021, the weighted average remaining lease term for our operating leases is 6.7 years. The weighted average discount rate for our operating leases is 5%. During the three months ended March 31, 2021, there were $0.9 million of operating cash payments for lease liabilities, and $0 of right-of use assets obtained in exchange for new lease liabilities. Maturities of our operating leases are as follows: As of March 31, 2021 (in $ thousands) 2021 $ 2,538 2022 3,118 2023 2,517 2024 1,714 2025 1,581 Later years 5,922 Less imputed interest (3,005) Total lease liabilities $ 14,385 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2021 | |
Income Taxes | |
Income Taxes | Note 11 – Income Taxes Given our expected projected loss (before tax) for the year, our estimated annual effective tax rate for 2021 before discrete items is expected to be approximately 6%. Our global effective tax rate is lower than the U.S. statutory tax rate of 21% primarily due to losses in jurisdictions for which a valuation allowance is required and therefore no benefit is received, along with nondeductible expenses. Our ultimate tax expense will depend on the mix of earnings in various jurisdictions. Income taxes of $5.0 million were paid during the three months ended March 31, 2021. At December 31, 2020, we had deferred tax assets of $30.0 million resulting from foreign and state NOL carryforwards of $119.5 million and other foreign deductible carryforwards of $64.7 million. At December 31, 2020, we had a valuation allowance of $19.9 million against deferred tax assets related to certain carryforwards. Certain non-U.S. operations have incurred net operating losses (NOLs), which are currently subject to a valuation allowance. These NOLs may become deductible to the extent these operations become profitable. For each of our operations, we evaluate whether it is more likely than not that the tax benefits related to NOLs will be realized. As part of this evaluation, we consider evidence such as tax planning strategies, historical operating results, forecasted taxable income, and recent financial performance. In the year that certain non-U.S. operations record a loss, we do not recognize a corresponding tax benefit, thus increasing our effective tax rate, or decreasing our effective tax rate when reporting a loss. Upon determining that it is more likely than not that the NOLs will be realized, we will reduce the tax valuation allowances related to these NOLs, which will result in a reduction of our income tax expense and our effective tax rate in the period. |
Stock Compensation Plans
Stock Compensation Plans | 3 Months Ended |
Mar. 31, 2021 | |
Stock Compensation Plans | |
Stock Based Compensation Plans | Note 12 – Long-Term Compensation Plan and Stock Based Compensation (share counts in thousands) We awarded 169 restricted stock units during the three months ended March 31, 2021, subject to time-based vesting. The fair value of the unissued time-based restricted stock unit grants was $4.1 million at the dates of grant and the grants are being amortized over the vesting periods of one We awarded restricted stock unit grants during the three months ended March 31, 2021, subject to the achievement of market and service conditions, which allow for up to 41 shares to be earned if the market conditions are fully achieved. The fair value of these awards was $1.7 million at the dates of grant and the awards are being amortized over the vesting period of three years. We awarded restricted stock units subject to the achievement of service and future performance criteria during the three months ended March 31, 2021, which allow for up to 114 shares to be earned if the performance criteria are fully achieved. The fair value of these awards was $2.9 million at the dates of grant. The Company currently believes that these awards are expected to be earned. The following table details long-term compensation plan and stock-based compensation expense for the three months ended March 31, 2021 and 2020: March 31, 2021 2020 in thousands Stock-based compensation $ 1,342 $ 1,350 Other long-term incentive plan compensation 200 365 Total compensation $ 1,542 $ 1,715 |
Earnings per Common Share
Earnings per Common Share | 3 Months Ended |
Mar. 31, 2021 | |
Earnings per Common Share | |
Earnings per Common Share | Note 13 – Earnings per Share (share counts in thousands) Basic earnings per share is based on the weighted average number of shares outstanding and excludes the dilutive effect of common stock equivalents. Diluted earnings per share is based on the weighted average number of shares outstanding and includes the dilutive effect of common stock equivalents to the extent they are not anti-dilutive. Because the Company is in a net loss position for the three months ended March 31, 2021, diluted net loss per share for these periods excludes the effects of common stock equivalents, which are anti-dilutive. For the three months ended March 31, 2020, the anti-dilutive effect of our securities is immaterial. The details of the earnings per share calculations for the three months ended March 31, 2021 and 2020 are as follows: March 31, in thousands, except per share data 2021 2020 Net income (loss) $ (9,151) $ 4 Weighted average common shares outstanding: Basic 39,996 40,127 Incremental shares with dilutive effect: Restricted stock awards — 211 Diluted 39,996 40,338 Net income (loss) per share: Basic $ (0.23) $ (0.00) Diluted $ (0.23) $ (0.00) |
Legal Proceedings and Contingen
Legal Proceedings and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies | |
Legal Proceedings and Contingencies | Note 14 – Legal Proceedings and Contingencies We are a party to or have intellectual property subject to litigation and other proceedings that arise in the ordinary course of our business. These types of matters could result in fines, penalties, compensatory or treble damages or non-monetary sanctions or relief. We believe the probability is remote that the outcome of each of these matters, including the legal proceedings described below, will have a material adverse effect on the corporation as a whole, notwithstanding that the unfavorable resolution of any matter may have a material effect on our financial results in any particular interim reporting period. Among the factors that we consider in this assessment are the nature of existing legal proceedings and claims, the asserted or possible damages or loss contingency (if estimable), the progress of the case, existing law and precedent, the opinions or views of legal counsel and other advisers, our experience in similar cases and the experience of other companies, the facts available to us at the time of assessment and how we intend to respond to the proceeding or claim. Our assessment of these factors may change over time as individual proceedings or claims progress. Although we cannot predict the outcome of legal or other proceedings with certainty, where there is at least a reasonable possibility that a loss may have been incurred, U.S. GAAP requires us to disclose an estimate of the reasonably possible loss or range of loss or make a statement that such an estimate cannot be made. We follow a process in which we seek to estimate the reasonably possible loss or range of loss, and only if we are unable to make such an estimate do we conclude and disclose that an estimate cannot be made. Accordingly, unless otherwise indicated below in our discussion of legal proceedings, a reasonably possible loss or range of loss associated with any individual legal proceeding cannot be estimated. We include various types of indemnification clauses in our customer agreements. These indemnifications may include, but are not limited to, infringement claims related to our intellectual property, direct damages and consequential damages. The type and amount of such indemnifications vary substantially based on our assessment of risk and reward associated with each agreement. We believe the estimated fair value of these indemnification clauses is minimal, and we cannot determine the maximum amount of potential future payments, if any, related to such indemnification provisions. We have A complaint was filed on August 20, 2020 against OneSpan and certain of its officers, asserting claims for purported violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”), and SEC Rule 10b-5 promulgated thereunder, based on certain alleged material misstatements and omissions. The case is captioned Almendariz v. OneSpan Inc., et al., No. 1:20-cv-04906 (N.D. Ill.) (the “Securities Class Action”). Specifically, the plaintiff in the Securities Class Action alleges, among other things, that certain statements about OneSpan’s business were misleading because of defendants’ failure to disclose that OneSpan purportedly had inadequate internal procedures and controls over financial reporting and related disclosures; and OneSpan purportedly downplayed the negative impacts of immaterial errors in its financial statements. On April 28, 2021, the Securities Class Action was dismissed by the court without prejudice. A complaint, related in subject matter to the Securities Class Action, was filed on October 23, 2020 against certain of OneSpan’s officers and directors, and names OneSpan as a nominal defendant. The case is captioned Klein v. Boroditzky, et al., No. 1:20-cv-06310 (N.D. Ill.) (the “Derivative Action” and, collectively with the Securities Class Action, the “Litigation”). The plaintiff asserts claims for breach of fiduciary duty, abuse of control and corporate waste, as well as a claim for contribution under Sections 10(b) and 21D of the Exchange Act, based on the same alleged wrongdoing pled in the Securities Class Action. On February 16, 2021, on the parties’ agreed motion, the court stayed the action pending a decision on the then-anticipated motion to dismiss in the Securities Class Action. On April 2, 2021, a different purported shareholder of the Company, represented by one of the same law firms representing plaintiff in the Klein case, filed second derivative suit in the Northern District of Illinois arising out of the same events that led to the filing of the Securities Class Action. The case is captioned Herrera v. Boroditsky, et al., 1:21-cv-01789 (N.D. Ill.). The factual allegations are substantially similar to those in Klein, except that the complaint does not contain express allegations regarding the pendency of the Securities Class Action and only one cause of action, for breach of fiduciary duty, is asserted. Defendants have not yet been served or entered an appearance. From time to time, we have been involved in litigation and claims incidental to the conduct of our business, such as compensation claims from current or former employees in Europe. We expect that to continue. Excluding matters specifically disclosed above, we are not a party to any lawsuit or proceeding that, in management’s opinion, is likely to have a material adverse effect on its business, financial condition or results of operations. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Summary of Significant Accounting Policies | |
Description of the Company | Description of the Company OneSpan Inc. and its wholly owned subsidiaries design, develop, market and support hardware and software security systems that manage and secure access to information assets. OneSpan has operations in Austria, Australia, Belgium, Brazil, Canada, China, France, Japan, The Netherlands, Singapore, Switzerland, the United Arab Emirates, the United Kingdom (U.K), and the United States (U.S.). In accordance with ASC 280, Segment Reporting, our operations are reported as a single operating segment. The chief operating decision maker is the Chief Executive Officer who reviews the statement of operations of the Company on a consolidated basis, makes decisions and manages the operations of the Company as a single operating segment. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of OneSpan Inc. and its wholly owned subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of OneSpan and its subsidiaries and have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Accordingly, they do not include all of the information and notes required by generally accepted accounting principles in the United States (“U.S. GAAP”) for complete financial statements and should be read in conjunction with the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. In the opinion of management, the accompanying unaudited condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements, and include all adjustments, consisting only of normal recurring adjustments, necessary for the fair presentation of the results of the interim periods presented. All intercompany accounts and transactions have been eliminated. Operating results for the three months ended March 31, 2021 are not necessarily indicative of the results that may be expected for the year ended December 31, 2021, particularly in light of the novel coronavirus (COVID-19) pandemic and its effects on domestic and global economies. We continue to actively address the effects of the COVID-19 pandemic and its impact globally. Beginning in the Summer of 2020 and continuing through the remainder of 2020, we experienced lengthened sales cycles and reduced demand for some of our security solutions due to economic uncertainty connected to the COVID-19 pandemic. While we hope that the negative consequences on our business associated with the COVID-19 pandemic will subside in 2021, we cannot predict the impact with certainty. |
Estimates and Assumptions | Estimates and Assumptions The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. 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 financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash, Cash Equivalents and Restricted Cash We are in lease agreements that require letters of credit to secure the obligations. The restricted cash related to these letters of credit is recorded in other non-current assets on the Condensed Consolidated Balance Sheet in the amounts of $0.9 million and $0.8 million at March 31, 2021 and December 31, 2020, respectively. |
Equity Method Investment | Equity Method Investment We apply the equity method of accounting to our investment in Promon AS (Promon), because we exercise significant influence, but not controlling interest, in the investee. Promon is a technology company headquartered in Norway that specializes in mobile app security, whose solutions focus largely on Runtime Application Self-Protection (RASP). We exercise significant influence over Promon as a result of our 17% ownership interest in Promon, our representation on Promon’s Board of Directors, and the significance to Promon of our business activities with them. We integrate Promon’s RASP technology into our software solution, which are licensed to our customers. Under the equity method of accounting, the Company’s proportionate share of the net earnings (losses) of Promon is reported in other income (expense), net in our condensed consolidated Statements of Operations. The impact of the proportionate share of net earnings (losses) were immaterial for the three months ended March 31, 2021 and 2020 as were the relative size of Promon’s assets and operations in relation to the Company’s. The carrying value of our equity method investment is reported in other noncurrent assets in the condensed consolidated Balance Sheets and is reported originally at cost and adjusted each period for the Company’s share of the investee’s earnings (losses) and dividends paid, if any. The Company also assesses the investment for impairment whenever events or changes in circumstances indicate that the carrying value of the investment may not be recoverable. The Company did not record any impairment charges during the three month periods ended March 31, 2021 and 2020. The Company recorded $1.6 million and $1.2 million in costs of sales during the three months ended March 31, 2021 and March 31, 2020, respectively for license fees owed to Promon for use of their software and technology. The Company owed Promon $2.7 million as of March 31, 2021, which is included in accounts payable and accrued liabilities. |
Foreign Currency Translation and Transactions | Foreign Currency Translation and Transactions The financial position and results of the operations of the majority of the Company’s foreign subsidiaries are measured using the local currency as the functional currency. Accordingly, assets and liabilities are translated into U.S. Dollars using current exchange rates as of the balance sheet date. Revenue and expenses are translated at average exchange rates prevailing during the year. Translation adjustments arising from differences in exchange rates are charged or credited to other comprehensive income (loss). Gains and losses resulting from foreign currency transactions are included in the condensed consolidated statements of operations in other income (expense), net. Foreign exchange transaction losses aggregated $0.7 million for the three months ended March 31, 2021 and $0.5 million for the three months ended March 31, 2020. The financial position and results of our operations in Singapore, Switzerland, and Canada are measured in U.S. Dollars. For these subsidiaries, gains and losses that result from foreign currency transactions are included in the consolidated statements of operations in other income (expense), net. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In December 2019, the FASB issued ASU 2019-12, Simplification for Accounting for Income Taxes In March 2020, the FASB issued ASU 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting From time to time, new accounting pronouncements are issued by the FASB or other standard setting bodies that are adopted by us as of the specified effective date. Unless otherwise discussed, our management believes that the issued standards that are not yet effective will not have a material impact on our consolidated financial statements upon adoption. |
Revision of Previously Issued Financial Statements | Revision of Previously Issued Financial Statements We have revised amounts reported in previously issued financial statements for the periods presented in this Quarterly Report on Form 10-Q related to immaterial errors. The errors relate to certain contracts with customers involving term-based software licenses and related maintenance and support services. The net contract assets that originated from a portion of these contracts in prior periods were not properly accounted for in subsequent periods, which caused overstatements of revenue in prior periods. We evaluated the aggregate effects of the errors to our previously issued financial statements in accordance with SEC Staff Accounting Bulletins No. 99 and No. 108 and, based upon quantitative and qualitative factors, determined that the errors were not material to the previously issued financial statements and disclosures included in our Annual Reports on Form 10-K for the years ended December 31, 2019 and 2018, or for any quarterly periods included therein or through our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2020. The following tables present the effects of the aforementioned revisions on our unaudited condensed consolidated statement of operations for the three months ended March 31, 2020, our unaudited condensed consolidated statement of comprehensive loss for the three months ended March 31, 2020, our unaudited condensed consolidated statement of stockholders’ equity for the three months ended March 31, 2020, and our unaudited condensed consolidated statement of cash flows for the three months ended March 31, 2020 (in thousands). Condensed Consolidated Statement of Operations (Unaudited) Three Months Ended March 31, 2020 in thousands As Previously Reported Adjustments As Revised Revenue Product and license $ 38,260 $ — $ 38,260 Services and other 18,232 (122) 18,110 Total revenue 56,492 (122) 56,370 Gross Profit 40,422 (122) 40,300 Operating income 947 (122) 825 Income before income taxes 816 (122) 694 Provision for income taxes 718 (28) 690 Net Income 98 (94) 4 Condensed Consolidated Statement of Comprehensive Loss (Unaudited) Three Months Ended March 31, 2020 in thousands As Previously Reported Adjustments As Revised Net income $ 98 $ (94) $ 4 Comprehensive loss (4,186) (94) (4,280) Condensed Consolidated Statement of Stockholders’ Equity (Unaudited) Total Stockholders' Equity in thousands As Previously Reported Adjustments As Revised Balance at December 31, 2019 $ 264,021 $ (1,727) $ 262,294 Net income 98 (94) 4 Balance at March 31, 2020 $ 260,639 $ (1,822) $ 258,817 Condensed Consolidated Statement of Cash Flows (Unaudited) Three months ended March 31, 2020 in thousands As Previously Reported Adjustments As Revised Cash flows from operating activities: Net income $ 98 $ (94) $ 4 Changes in operating assets and liabilities: Contract assets (564) 122 (442) Income taxes payable (4,707) (28) (4,735) Net cash used in operating activities (2,352) — (2,352) |
Description of the Company an_2
Description of the Company and Basis of Presentation (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Description of the Company and Basis of Presentation | |
Revised Consolidated Statements | Condensed Consolidated Statement of Operations (Unaudited) Three Months Ended March 31, 2020 in thousands As Previously Reported Adjustments As Revised Revenue Product and license $ 38,260 $ — $ 38,260 Services and other 18,232 (122) 18,110 Total revenue 56,492 (122) 56,370 Gross Profit 40,422 (122) 40,300 Operating income 947 (122) 825 Income before income taxes 816 (122) 694 Provision for income taxes 718 (28) 690 Net Income 98 (94) 4 Condensed Consolidated Statement of Comprehensive Loss (Unaudited) Three Months Ended March 31, 2020 in thousands As Previously Reported Adjustments As Revised Net income $ 98 $ (94) $ 4 Comprehensive loss (4,186) (94) (4,280) Condensed Consolidated Statement of Stockholders’ Equity (Unaudited) Total Stockholders' Equity in thousands As Previously Reported Adjustments As Revised Balance at December 31, 2019 $ 264,021 $ (1,727) $ 262,294 Net income 98 (94) 4 Balance at March 31, 2020 $ 260,639 $ (1,822) $ 258,817 Condensed Consolidated Statement of Cash Flows (Unaudited) Three months ended March 31, 2020 in thousands As Previously Reported Adjustments As Revised Cash flows from operating activities: Net income $ 98 $ (94) $ 4 Changes in operating assets and liabilities: Contract assets (564) 122 (442) Income taxes payable (4,707) (28) (4,735) Net cash used in operating activities (2,352) — (2,352) |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Revenue | |
Revenues disaggregated by geography, major product line and timing of revenue recognition | Revenue by major products (in thousands) Three months ended March 31, 2021 2020 Hardware products $ 17,668 $ 19,738 Software licenses 10,777 18,522 Subscription 8,405 5,707 Professional services 1,402 1,421 Maintenance, support and other 12,523 10,982 Total Revenue $ 50,775 $ 56,370 Revenue by location of customer for the three months ended March 31, 2021 and 2020 (in thousands) EMEA Americas APAC Total Total Revenue: 2021 $ 26,989 $ 16,528 $ 7,258 $ 50,775 2020 $ 33,604 $ 12,333 $ 10,433 $ 56,370 Percent of Total: 2021 53 % 33 % 14 % 100 % 2020 59 % 22 % 19 % 100 % Timing of revenue recognition (in thousands) Three months ended March 31, 2021 2020 Products and Licenses transferred at a point in time $ 28,445 $ 38,260 Services transferred over time 22,330 18,110 Total Revenue $ 50,775 $ 56,370 |
Schedule of changes in contract assets and contract liabilities | March 31, December 31, 2021 2020 Receivables, inclusive of trade and unbilled $ 47,892 $ 57,537 Contract Assets (current and non-current) $ 6,453 $ 9,079 Contract Liabilities (Deferred Revenue current and non-current) $ 54,813 $ 55,147 |
Schedule of estimated revenue expected to be recognized in the future | in thousands 2021 2022 2023 Beyond 2023 Total Future revenue related to current unsatisfied performance obligations $ 17,467 $ 15,600 $ 10,020 $ 6,652 $ 49,739 |
Schedule of information related to the capitalized costs and amortization recognized in the current and prior period | in thousands March 31, 2021 December 31, 2020 Capitalized costs to obtain contracts, current $ 1,380 $ 1,222 Capitalized costs to obtain contracts, non-current $ 5,635 $ 5,464 Three months ended March 31, in thousands 2021 2020 Amortization of capitalized costs to obtain contracts $ 310 $ 169 Impairments of capitalized costs to obtain contracts $ - $ - |
Inventories, net (Tables)
Inventories, net (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Inventories, net | |
Summary of Inventories, net | March 31, December 31, 2021 2020 (in thousands) Component parts $ 5,372 $ 5,439 Work-in-process and finished goods 5,974 7,654 Total $ 11,346 $ 13,093 |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill | |
Schedule of Goodwill Activity | in thousands Net balance at December 31, 2020 $ 97,552 Net foreign currency translation (99) Net balance at March 31, 2021 $ 97,453 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Intangible Assets | |
Schedule of intangible asset activity | in thousands Acquired Technology Customer Relationships Other Total Intangible Assets Net balance at December 31, 2020 $ 2,277 $ 23,200 $ 1,719 $ 27,196 Additions 2 — 14 16 Disposals — — (21) (21) Net foreign currency translation 17 66 (4) 79 Amortization expense (387) (999) (187) (1,573) Net balance at March 31, 2021 $ 1,909 $ 22,267 $ 1,521 $ 25,697 March 31, 2021 balance at cost $ 43,405 $ 40,055 $ 13,555 $ 97,015 Accumulated amortization (41,496) (17,788) (12,034) (71,318) Net balance at March 31, 2021 $ 1,909 $ 22,267 $ 1,521 $ 25,697 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Property and Equipment | |
Schedule of major classes of property and equipment | in thousands March 31, 2021 December 31, 2020 Office equipment and software $ 13,788 $ 13,540 Leasehold improvements 10,388 10,593 Furniture and fixtures 3,875 3,827 Total 28,051 27,960 Accumulated depreciation (16,329) (16,125) Property and equipment, net $ 11,722 $ 11,835 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Measurements | |
Schedule of assets that are measured at fair value on a recurring basis | Fair Value Measurement at Reporting Date Using in thousands March 31, 2021 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: U.S. Treasury Notes $ 2,439 - $ 2,439 - Corporate Notes / Bonds $ 13,307 - $ 13,307 - Commercial Paper $ 7,596 - $ 7,596 - U.S. Treasury Bills $ 4,824 - $ 4,824 - U.S. Government Agencies $ 16,223 - $ 16,223 - Fair Value Measurement at Reporting Date Using in thousands December 31, 2020 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: U.S. Treasury Notes $ 4,951 - $ 4,951 - Corporate Notes / Bonds $ 8,780 - $ 8,780 - Commercial Paper $ 4,098 - $ 4,098 - U.S. Treasury Bills $ 5,292 - $ 5,292 - U.S. Government Agencies $ 3,738 - $ 3,738 - |
Allowance for credit losses (Ta
Allowance for credit losses (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Allowance for credit losses | |
Schedule change in the allowance for credit losses | in thousands Balance at December 31, 2020 $ 4,135 Provision 290 Write-offs (253) Net foreign currency translation (2) Balance at March 31, 2021 $ 4,170 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Schedule of supplemental consolidated balance sheet information related to our operating leases | Three months ended March 31, 2021 2021 2020 (in thousands) Building rent $ 570 $ 691 Automobile rentals 333 352 Total net operating lease costs $ 903 $ 1,043 |
Schedule of maturities of operating leases | As of March 31, 2021 (in $ thousands) 2021 $ 2,538 2022 3,118 2023 2,517 2024 1,714 2025 1,581 Later years 5,922 Less imputed interest (3,005) Total lease liabilities $ 14,385 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Stock Compensation Plans | |
Summary of compensation expense | March 31, 2021 2020 in thousands Stock-based compensation $ 1,342 $ 1,350 Other long-term incentive plan compensation 200 365 Total compensation $ 1,542 $ 1,715 |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Earnings per Common Share | |
Details of Earnings Per Share Calculations | March 31, in thousands, except per share data 2021 2020 Net income (loss) $ (9,151) $ 4 Weighted average common shares outstanding: Basic 39,996 40,127 Incremental shares with dilutive effect: Restricted stock awards — 211 Diluted 39,996 40,338 Net income (loss) per share: Basic $ (0.23) $ (0.00) Diluted $ (0.23) $ (0.00) |
Description of the Company an_3
Description of the Company and Basis of Presentation - Consolidated Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Pro forma Income Statement: | ||
Total revenue | $ 50,775 | $ 56,370 |
Gross profit | 35,453 | 40,300 |
Operating income | (9,294) | 825 |
Income before taxes | (9,652) | 694 |
Provision for income taxes | (501) | 690 |
Net income | (9,151) | 4 |
Product and license | ||
Pro forma Income Statement: | ||
Total revenue | 28,445 | 38,260 |
Services and other | ||
Pro forma Income Statement: | ||
Total revenue | $ 22,330 | 18,110 |
As Previously Reported | ||
Pro forma Income Statement: | ||
Total revenue | 56,492 | |
Gross profit | 40,422 | |
Operating income | 947 | |
Income before taxes | 816 | |
Provision for income taxes | 718 | |
Net income | 98 | |
As Previously Reported | Product and license | ||
Pro forma Income Statement: | ||
Total revenue | 38,260 | |
As Previously Reported | Services and other | ||
Pro forma Income Statement: | ||
Total revenue | 18,232 | |
Adjustment | ||
Pro forma Income Statement: | ||
Total revenue | (122) | |
Gross profit | (122) | |
Operating income | (122) | |
Income before taxes | (122) | |
Provision for income taxes | (28) | |
Net income | (94) | |
Adjustment | Services and other | ||
Pro forma Income Statement: | ||
Total revenue | $ (122) |
Description of the Company an_4
Description of the Company and Basis of Presentation - Consolidated Statements of Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Pro forma Comprehensive Income | ||
Net income (loss) | $ (9,151) | $ 4 |
Comprehensive income (loss) | $ (10,085) | (4,280) |
As Previously Reported | ||
Pro forma Comprehensive Income | ||
Net income (loss) | 98 | |
Comprehensive income (loss) | (4,186) | |
Adjustment | ||
Pro forma Comprehensive Income | ||
Net income (loss) | (94) | |
Comprehensive income (loss) | $ (94) |
Description of the Company an_5
Description of the Company and Basis of Presentation - Consolidated Statements of Stockholders' Equity (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Pro forma Stockholder's Equity | ||
Balance | $ 262,294 | |
Net income (loss) | $ (9,151) | 4 |
Balance | 258,817 | |
As Previously Reported | ||
Pro forma Stockholder's Equity | ||
Balance | 264,021 | |
Net income (loss) | 98 | |
Balance | 260,639 | |
Adjustment | ||
Pro forma Stockholder's Equity | ||
Balance | (1,727) | |
Net income (loss) | (94) | |
Balance | $ (1,822) |
Description of the Company an_6
Description of the Company and Basis of Presentation - Consolidated Statements of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities: | ||
Net income | $ (9,151) | $ 4 |
Changes in operating assets and liabilities: | ||
Contract assets | 2,346 | (442) |
Income taxes payable | (1,634) | (4,735) |
Net cash provided by operating activities | $ 3,583 | (2,352) |
As Previously Reported | ||
Cash flows from operating activities: | ||
Net income | 98 | |
Changes in operating assets and liabilities: | ||
Contract assets | (564) | |
Income taxes payable | (4,707) | |
Net cash provided by operating activities | (2,352) | |
Adjustment | ||
Cash flows from operating activities: | ||
Net income | (94) | |
Changes in operating assets and liabilities: | ||
Contract assets | 122 | |
Income taxes payable | $ (28) |
Description of the Company an_7
Description of the Company and Basis of Presentation - Foreign Currency Translation and Transactions (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Description of the Company and Basis of Presentation | ||
Gain (loss) from foreign currency transactions | $ 0.7 | $ 0.5 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Cash and Cash Equivalents (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Mar. 31, 2020 |
Summary of Significant Accounting Policies | ||
Restricted Cash | $ 0.9 | $ 0.8 |
Restricted Cash, Asset, Statement of Financial Position [Extensible List] | Other Assets, Noncurrent | Other Assets, Noncurrent |
Summary of Significant Accoun_4
Summary of Significant Accounting policies - Equity Method Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Equity Method Investments | ||
Impairment charges | $ 0 | $ 0 |
Costs of sales | $ 15,322 | $ 16,070 |
Cost, Product and Service [Extensible List] | us-gaap:LicenseAndServiceMember | us-gaap:LicenseAndServiceMember |
Investment In Promon A | ||
Equity Method Investments | ||
Ownership percentage | 17.00% | |
Costs of sales | $ 1,600 | $ 1,200 |
Amount owed included in accounts payable and accrued liabilities | $ 2,700 |
Revenue - Disaggregation of rev
Revenue - Disaggregation of revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenue | ||
Revenue | $ 50,775 | $ 56,370 |
Percent of Total | 100.00% | 100.00% |
Products and Licenses transferred at a point in time | ||
Revenue | ||
Revenue | $ 28,445 | $ 38,260 |
Services transferred over time | ||
Revenue | ||
Revenue | 22,330 | 18,110 |
EMEA | ||
Revenue | ||
Revenue | $ 26,989 | $ 33,604 |
Percent of Total | 53.00% | 59.00% |
Americas | ||
Revenue | ||
Revenue | $ 16,528 | $ 12,333 |
Percent of Total | 33.00% | 22.00% |
APAC | ||
Revenue | ||
Revenue | $ 7,258 | $ 10,433 |
Percent of Total | 14.00% | 19.00% |
Hardware products | ||
Revenue | ||
Revenue | $ 17,668 | $ 19,738 |
Software licenses | ||
Revenue | ||
Revenue | 10,777 | 18,522 |
Subscription | ||
Revenue | ||
Revenue | 8,405 | 5,707 |
Professional services | ||
Revenue | ||
Revenue | 1,402 | 1,421 |
Maintenance, support and other | ||
Revenue | ||
Revenue | $ 12,523 | $ 10,982 |
Revenue - Contract balances (De
Revenue - Contract balances (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Contract balances | ||
Revenue recognized that was included in the balance sheet | $ 15,000 | |
Receivables, inclusive of trade and unbilled | 47,892 | $ 57,537 |
Contract Assets (current and non-current) | 6,453 | 9,079 |
Contract Liabilities (Deferred Revenue current and non-current) | $ 54,813 | $ 55,147 |
Revenue, Practical Expedient, Financing Component [true/false] | true | |
Minimum | ||
Contract balances | ||
The amount of time contract assets are transferred to receivables | 3 years | |
Maximum | ||
Contract balances | ||
The amount of time contract assets are transferred to receivables | 5 years |
Revenue - Performance Obligatio
Revenue - Performance Obligations (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Revenue | |
Future revenue related to current unsatisfied performance obligations | $ 49,739 |
Remaining performance obligations | true |
Original expected durations | true |
Revenue, Practical Expedient, Incremental Cost of Obtaining Contract [true/false] | true |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 12 months |
Future revenue related to current unsatisfied performance obligations | $ 17,467 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 12 months |
Future revenue related to current unsatisfied performance obligations | $ 15,600 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 12 months |
Future revenue related to current unsatisfied performance obligations | $ 10,020 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 9 months |
Future revenue related to current unsatisfied performance obligations | $ 6,652 |
Revenue - Capitalized Costs and
Revenue - Capitalized Costs and Amortization (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Revenue | |||
Amortization period | 7 years | ||
Capitalized costs to obtain contracts, current | $ 1,380 | $ 1,222 | |
Capitalized costs to obtain contracts, non-current | 5,635 | $ 5,464 | |
Amortization of capitalized costs to obtain contracts | $ 310 | $ 169 |
Inventories, net - Summary of I
Inventories, net - Summary of Inventories, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Inventories, net | ||
Component parts | $ 5,372 | $ 5,439 |
Work-in-process and finished goods | 5,974 | 7,654 |
Total | $ 11,346 | $ 13,093 |
Goodwill - Schedule of Goodwill
Goodwill - Schedule of Goodwill Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Goodwill | ||
Net balance at beginning of period | $ 97,552 | |
Net foreign currency translation | (99) | |
Net balance at end of period | 97,453 | |
Goodwill impairment | $ 0 | $ 0 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | |
Intangible asset activity | |||
Net balance | $ 27,196 | ||
Additions | 16 | ||
Disposals-Other | (21) | ||
Net foreign currency translation | 79 | ||
Amortization expense | (1,573) | $ (2,354) | |
Net balance | 25,697 | ||
Intangible assets, net | |||
Balance at cost | $ 97,015 | ||
Accumulated amortization | (71,318) | ||
Total intangible assets | 27,196 | 25,697 | |
Impairment charges | 0 | $ 0 | |
Acquired Technology | |||
Intangible asset activity | |||
Net balance | 2,277 | ||
Additions | 2 | ||
Net foreign currency translation | 17 | ||
Amortization expense | (387) | ||
Net balance | 1,909 | ||
Intangible assets, net | |||
Balance at cost | 43,405 | ||
Accumulated amortization | (41,496) | ||
Total intangible assets | 1,909 | 1,909 | |
Customer relationships | |||
Intangible asset activity | |||
Net balance | 23,200 | ||
Net foreign currency translation | 66 | ||
Amortization expense | (999) | ||
Net balance | 22,267 | ||
Intangible assets, net | |||
Balance at cost | 40,055 | ||
Accumulated amortization | (17,788) | ||
Total intangible assets | 22,267 | 22,267 | |
Other | |||
Intangible asset activity | |||
Net balance | 1,719 | ||
Additions | 14 | ||
Disposals-Other | (21) | ||
Net foreign currency translation | (4) | ||
Amortization expense | (187) | ||
Net balance | 1,521 | ||
Intangible assets, net | |||
Balance at cost | 13,555 | ||
Accumulated amortization | (12,034) | ||
Total intangible assets | $ 1,521 | $ 1,521 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | |||
Total | $ 28,051 | $ 27,960 | |
Accumulated depreciation | (16,329) | (16,125) | |
Property and equipment, net | 11,722 | 11,835 | |
Depreciation expense | 700 | $ 700 | |
Office equipment and software | |||
Property, Plant and Equipment [Line Items] | |||
Total | 13,788 | 13,540 | |
Leasehold Improvements | |||
Property, Plant and Equipment [Line Items] | |||
Total | 10,388 | 10,593 | |
Furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Total | $ 3,875 | $ 3,827 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Recurring - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
U.S. Treasury Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | $ 2,439 | $ 4,951 |
U.S. Treasury Notes | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 2,439 | 4,951 |
Corporate Notes / Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 13,307 | 8,780 |
Corporate Notes / Bonds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 13,307 | 8,780 |
Commercial Paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 7,596 | 4,098 |
Commercial Paper | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 7,596 | 4,098 |
U.S. Treasury Bills | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 4,824 | 5,292 |
U.S. Treasury Bills | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 4,824 | 5,292 |
U.S. Government Agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 16,223 | 3,738 |
U.S. Government Agencies | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | $ 16,223 | $ 3,738 |
Allowance for credit losses (De
Allowance for credit losses (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Changes in the allowance for credit losses | |
Write-offs | $ (253) |
Impact of ASU 2016-13 adoption | |
Changes in the allowance for credit losses | |
Beginning Balance | 4,135 |
Provision | 290 |
Net foreign currency translation | (2) |
Ending Balance | $ 4,170 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Operating lease cost | $ 903 | $ 1,043 |
Other information related to operating leases | ||
Cash payments to settle a lease liability reported in cash flows | 900 | |
Right-of-use assets obtained in exchange for new lease liabilities | $ 0 | |
Weighted-average discount rate | 5.00% | |
Weighted average remaining lease term | 6 years 8 months 12 days | |
Building | ||
Operating lease cost | $ 570 | 691 |
Automobile | ||
Operating lease cost | $ 333 | $ 352 |
Leases - Maturities of our oper
Leases - Maturities of our operating leases (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Maturities of operating leases | |
2021 | $ 2,538 |
2022 | 3,118 |
2023 | 2,517 |
2024 | 1,714 |
2025 | 1,581 |
Later years | 5,922 |
Less imputed interest | (3,005) |
Total lease liabilities | $ 14,385 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Income Taxes | |||
Effective tax rate | 6.00% | ||
Provision (benefit) for income taxes | $ (501) | $ 690 | |
Statutory tax rate | 21.00% | ||
Income taxes paid | $ 5,000 | ||
Deferred tax assets, foreign and state NOL carryforwards | $ 30,000 | ||
Foreign and state, net operating loss (NOL) carryforwards | 119,500 | ||
Other foreign deductible carryforwards | 64,700 | ||
Deferred tax assets, valuation allowance | $ 19,900 |
Long-Term Compensation Plan and
Long-Term Compensation Plan and Stock Based Compensation (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($)shares | |
Plan information | |
Restricted stock awards | $ 1,342 |
Restricted Stock [Member] | |
Plan information | |
Stock based compensation awards issued shares | shares | 169 |
2019 Omnibus Incentive Plan | Restricted Stock, subject to time-based criteria | |
Plan information | |
Restricted stock awards | $ 4,100 |
2019 Omnibus Incentive Plan | Restricted Stock, subject to time-based criteria | Minimum | |
Plan information | |
Vesting period (in years) | 1 year |
2019 Omnibus Incentive Plan | Restricted Stock, subject to time-based criteria | Maximum | |
Plan information | |
Vesting period (in years) | 4 years |
2019 Omnibus Incentive Plan | Restricted Stock, subject to future performance criteria | |
Plan information | |
Stock based compensation awards issued shares | shares | 114 |
Restricted stock awards | $ 2,900 |
2019 Omnibus Incentive Plan | Restricted Stock, subject to performance criteria | |
Plan information | |
Stock based compensation awards issued shares | shares | 41,000 |
Restricted stock awards | $ 1,700 |
Vesting period (in years) | 3 years |
Long-Term Compensation Plan a_2
Long-Term Compensation Plan and Stock Based Compensation - Allocation of Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Compensation expense | ||
Stock-based compensation | $ 1,342 | $ 1,350 |
Other long-term compensation plan | 200 | 365 |
Total Compensation | $ 1,542 | $ 1,715 |
Earnings per Common Share - Det
Earnings per Common Share - Details of Earnings Per Share Calculations (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Earnings per Common Share | ||
Net income (loss) | $ (9,151) | $ 4 |
Weighted average common shares outstanding: | ||
Basic | 39,996 | 40,127 |
Incremental shares with dilutive effect: | ||
Restricted stock awards (in shares) | 211 | |
Diluted (in shares) | 39,996 | 40,338 |
Basic | $ (0.23) | $ 0 |
Diluted | $ (0.23) | $ 0 |
Legal Proceedings and Conting_2
Legal Proceedings and Contingencies - Regulatory Actions (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Commitments and Contingencies | |
Liabilities accrued | $ 0 |