Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2021 | Aug. 01, 2021 | |
Document And Entity Information | ||
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 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 | 40,210,558 | |
Entity Central Index Key | 0001044777 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash and equivalents | $ 66,530 | $ 88,394 |
Short term investments | 42,726 | 26,859 |
Accounts receivable, net of allowances of $3,147 in 2021 and $4,135 in 2020 | 45,762 | 57,537 |
Inventories, net | 9,498 | 13,093 |
Prepaid expenses | 7,823 | 7,837 |
Contract assets | 5,243 | 7,202 |
Other current assets | 9,860 | 6,256 |
Total current assets | 187,442 | 207,178 |
Property and equipment, net | 11,468 | 11,835 |
Operating lease right-of-use assets | 10,035 | 11,356 |
Goodwill | 97,842 | 97,552 |
Intangible assets, net of accumulated amortization | 24,227 | 27,196 |
Deferred income taxes | 8,942 | 7,030 |
Contract assets - non-current | 1,634 | 1,877 |
Other assets | 12,738 | 11,179 |
Total assets | 354,328 | 375,203 |
Current liabilities | ||
Accounts payable | 6,918 | 5,684 |
Deferred revenue | 43,058 | 43,417 |
Accrued wages and payroll taxes | 15,146 | 13,649 |
Short-term income taxes payable | 997 | 2,618 |
Other accrued expenses | 10,190 | 8,334 |
Deferred compensation | 571 | 1,602 |
Total current liabilities | 76,880 | 75,304 |
Long-term deferred revenue | 10,676 | 11,730 |
Long-term lease liabilities | 11,154 | 12,399 |
Other long-term liabilities | 10,195 | 10,423 |
Long-term income taxes payable | 5,042 | 6,095 |
Deferred income taxes | 1,736 | 1,912 |
Total liabilities | 115,683 | 117,863 |
Stockholders' equity | ||
Preferred stock: 500 shares authorized, none issued and outstanding at June 30, 2021 and December 31, 2020 | ||
Common stock: $.001 par value per share, 75,000 shares authorized; 40,171 and 40,103 shares issued; 40,171 and 40,103 shares outstanding at June 30, 2021 and December 31, 2020, respectively | 40 | 40 |
Additional paid-in capital | 99,223 | 98,819 |
Treasury stock, at cost, 361 and 250 shares outstanding at June 30, 2021 and December 31, 2020, respectively | (7,938) | (5,030) |
Retained earnings | 157,917 | 173,731 |
Accumulated other comprehensive loss | (10,597) | (10,220) |
Total stockholders' equity | 238,645 | 257,340 |
Total liabilities and stockholders' equity | $ 354,328 | $ 375,203 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||
Accounts receivable, allowance for doubtful accounts | $ 3,147 | $ 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 | 40,171,000 | 40,103,000 |
Treasury stock, at cost | 361 | 250 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenue | ||||
Total revenue | $ 52,277 | $ 54,954 | $ 103,052 | $ 111,324 |
Cost of goods sold | ||||
Costs of sales | 16,470 | 18,225 | 31,792 | 34,295 |
Gross profit | 35,807 | 36,729 | 71,260 | 77,029 |
Operating costs | ||||
Sales and marketing | 15,997 | 14,694 | 34,376 | 29,553 |
Research and development | 12,096 | 10,541 | 24,340 | 20,535 |
General and administrative | 15,039 | 10,846 | 27,590 | 23,114 |
Amortization of intangible assets | 1,534 | 2,335 | 3,107 | 4,689 |
Total operating costs | 44,666 | 38,416 | 89,413 | 77,891 |
Operating loss | (8,859) | (1,687) | (18,153) | (862) |
Interest income, net | 2 | 126 | 6 | 333 |
Other income, net | 1,029 | 509 | 667 | 171 |
Loss before income taxes | (7,828) | (1,052) | (17,480) | (358) |
Provision (benefit) for income taxes | (1,143) | 973 | (1,644) | 1,663 |
Net loss | $ (6,685) | $ (2,025) | $ (15,836) | $ (2,021) |
Net loss per share | ||||
Basic | $ (0.17) | $ (0.05) | $ (0.40) | $ (0.05) |
Diluted | $ (0.17) | $ (0.05) | $ (0.40) | $ (0.05) |
Weighted average common shares outstanding | ||||
Basic | 39,694 | 40,028 | 39,692 | 40,059 |
Diluted | 39,694 | 40,028 | 39,692 | 40,059 |
Product and license | ||||
Revenue | ||||
Total revenue | $ 28,378 | $ 35,384 | $ 56,823 | $ 73,644 |
Cost of goods sold | ||||
Costs of sales | 9,589 | 12,576 | 19,130 | 23,314 |
Services and other | ||||
Revenue | ||||
Total revenue | 23,899 | 19,570 | 46,229 | 37,680 |
Cost of goods sold | ||||
Costs of sales | $ 6,881 | $ 5,649 | $ 12,662 | $ 10,981 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | ||||
Net loss | $ (6,685) | $ (2,025) | $ (15,836) | $ (2,021) |
Other comprehensive loss | ||||
Cumulative translation adjustment, net of tax | 549 | 446 | (370) | (3,832) |
Unrealized gains (losses) on available-for-sale securities | 8 | (7) | ||
Pension adjustment, net of tax | (6) | (12) | ||
Comprehensive loss | $ (6,128) | $ (1,585) | $ (16,213) | $ (5,865) |
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 | $ 40 | $ 96,109 | $ 179,440 | $ (13,295) | $ 262,294 | ||||
Balance (in shares) at Dec. 31, 2019 | 40,207 | ||||||||
Change in Stockholders' Equity | |||||||||
Net 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 | $ 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, 2019 | $ 40 | 96,109 | 179,440 | (13,295) | 262,294 | ||||
Balance (in shares) at Dec. 31, 2019 | 40,207 | ||||||||
Change in Stockholders' Equity | |||||||||
Net loss | (2,021) | ||||||||
Balance at Jun. 30, 2020 | $ 40 | 97,140 | 177,165 | (17,139) | 257,206 | ||||
Balance (in shares) at Jun. 30, 2020 | 40,329 | ||||||||
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 | ||||||||
Change in Stockholders' Equity | |||||||||
Net loss | (2,025) | (2,025) | |||||||
Foreign currency translation adjustment, net of tax | 446 | 446 | |||||||
Restricted stock awards | 860 | 860 | |||||||
Restricted stock awards, Shares | 19 | ||||||||
Tax payments for stock issuances | (886) | (886) | |||||||
Tax payments for stock issuances, Shares | (4) | ||||||||
Pension adjustment, net of tax | (6) | (6) | |||||||
Balance at Jun. 30, 2020 | $ 40 | 97,140 | 177,165 | (17,139) | 257,206 | ||||
Balance (in shares) at Jun. 30, 2020 | 40,329 | ||||||||
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 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 | |||||||
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 loss | (15,836) | ||||||||
Unrealized gains (losses) on available-for-sale securities | (7) | ||||||||
Balance at Jun. 30, 2021 | $ 40 | $ (7,938) | 99,223 | 157,917 | (10,597) | 238,645 | |||
Balance (in shares) at Jun. 30, 2021 | 40,171 | 361 | |||||||
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 | |||||||
Change in Stockholders' Equity | |||||||||
Net loss | (6,685) | (6,685) | |||||||
Foreign currency translation adjustment, net of tax | 549 | 549 | |||||||
Restricted stock awards | 1,292 | 1,292 | |||||||
Restricted stock awards, Shares | 24 | ||||||||
Tax payments for stock issuances | (91) | (91) | |||||||
Tax payments for stock issuances, Shares | (7) | ||||||||
Share repurchase | $ (2,908) | (2,908) | |||||||
Share repurchased (in shares) | (111) | 111 | |||||||
Unrealized gains (losses) on available-for-sale securities | 8 | 8 | |||||||
Balance at Jun. 30, 2021 | $ 40 | $ (7,938) | $ 99,223 | $ 157,917 | $ (10,597) | $ 238,645 | |||
Balance (in shares) at Jun. 30, 2021 | 40,171 | 361 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | ||
Cash flows from operating activities: | |||
Net loss from operations | $ (15,836) | $ (2,021) | |
Adjustments to reconcile net loss from operations to net cash provided by (used in) operations: | |||
Depreciation and amortization of intangible assets | 4,582 | 6,097 | |
Loss on disposal of assets | 19 | 53 | |
Deferred tax benefit | (2,194) | (319) | |
Stock-based compensation | 2,634 | 2,210 | |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | 11,021 | 7,528 | |
Inventories, net | 3,585 | 3,376 | |
Contract assets | 1,974 | (2,026) | |
Accounts payable | 1,280 | (5,025) | |
Income taxes payable | (2,652) | (5,870) | |
Accrued expenses | 3,660 | (791) | |
Deferred compensation | (1,031) | 13 | |
Deferred revenue | (931) | 2,990 | |
Other assets and liabilities | (4,927) | (1,834) | |
Net cash provided by operating activities | 1,184 | 4,381 | |
Cash flows from investing activities: | |||
Purchase of short term investments | (32,253) | (14,645) | |
Maturities of short term investments | 16,100 | 13,340 | |
Additions to property and equipment | (1,208) | (2,167) | |
Other | (17) | (48) | |
Net cash used in investing activities | (17,378) | (3,520) | |
Cash flows from financing activities: | |||
Repurchase of common stock | (2,908) | ||
Tax payments for restricted stock issuances | (2,230) | (1,179) | |
Net cash used in financing activities | (5,138) | (1,179) | |
Effect of exchange rate changes on cash | (511) | 20 | |
Net decrease in cash | (21,843) | (298) | |
Cash, cash equivalents, and restricted cash, beginning of period | 89,241 | 85,129 | |
Cash, cash equivalents, and restricted cash, end of period | [1] | 67,398 | 84,831 |
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 June 30, 2021 and June 30, 2020, respectively. |
Description of the Company and
Description of the Company and Basis of Presentation | 6 Months Ended |
Jun. 30, 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, 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 and six months ended June 30, 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 through the present, we have 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, we cannot predict the impact with certainty. 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 gains aggregated $0.6 million and foreign transaction losses aggregated less than $0.1 million for the three and six months ended June 30, 2021, respectively. Foreign exchange transaction gains aggregated less than $0.1 million and foreign transaction losses aggregated $0.5 million for the three and six months ended June 30, 2020, respectively. 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 | 6 Months Ended |
Jun. 30, 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 June 30, 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 mobile security offerings, which are then 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 and six months ended June 30, 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 six month periods ended June 30, 2021 and 2020. The Company recorded $0.5 million and $0.1 million in cost of sales during the three months ended June 30, 2021 and June 30, 2020, respectively, for license fees owed to Promon for use of their software and technology, and recorded $2.0 million and $1.4 million for the six months ended June 30, 2021 and 2020, respectively. The Company owed Promon $1.2 million as of June 30, 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 | 6 Months Ended |
Jun. 30, 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 June 30, Six months ended June 30, 2021 2020 2021 2020 Hardware products $ 19,451 $ 24,188 $ 37,119 $ 43,926 Software licenses 8,927 11,196 19,704 29,718 Subscription 9,824 6,133 18,229 11,840 Professional services 1,041 1,326 2,443 2,747 Maintenance, support, and other 13,034 12,111 25,557 23,093 Total Revenue $ 52,277 $ 54,954 $ 103,052 $ 111,324 Revenue by location of customer for the three months ended June 30, 2021 and 2020 (in thousands) EMEA Americas APAC Total Total Revenue: 2021 $ 24,830 $ 17,011 $ 10,436 $ 52,277 2020 $ 28,336 $ 13,932 $ 12,686 $ 54,954 Percent of Total: 2021 47 % 33 % 20 % 100 % 2020 52 % 25 % 23 % 100 % Revenue by location of customer for the six months ended June 30, 2021 and 2020 (in thousands) EMEA Americas APAC Total Total Revenue: 2021 $ 51,819 $ 33,539 $ 17,694 $ 103,052 2020 $ 61,940 $ 26,265 $ 23,119 $ 111,324 Percent of Total: 2021 50 % 33 % 17 % 100 % 2020 56 % 24 % 20 % 100 % Timing of revenue recognition (in thousands) Three months ended June 30, Six months ended June 30, 2021 2020 2021 2020 Products and Licenses transferred at a point in time $ 28,378 $ 35,384 $ 56,823 $ 73,644 Services transferred over time 23,899 19,570 46,229 37,680 Total Revenue $ 52,277 $ 54,954 $ 103,052 $ 111,324 Contract balances (in thousands) The following table provides information about receivables, contract assets and contract liabilities from contracts with customers. June 30, December 31, 2021 2020 Receivables, inclusive of trade and unbilled $ 45,762 $ 57,537 Contract Assets (current and non-current) $ 6,877 $ 9,079 Contract Liabilities (Deferred Revenue current and non-current) $ 53,734 $ 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 six months ended June 30, 2021 included $11.6 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 $ 14,877 $ 19,855 $ 12,057 $ 7,043 $ 53,832 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 June 30, 2021 December 31, 2020 Capitalized costs to obtain contracts, current $ 1,622 $ 1,222 Capitalized costs to obtain contracts, non-current $ 6,706 $ 5,464 Three months ended June 30, Six months ended June 30, in thousands 2021 2020 2021 2020 Amortization of capitalized costs to obtain contracts $ 361 $ 264 $ 671 $ 433 Impairments of capitalized costs to obtain contracts $ - $ - $ - $ - |
Inventories, net
Inventories, net | 6 Months Ended |
Jun. 30, 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: June 30, December 31, 2021 2020 (in thousands) Component parts $ 4,815 $ 5,439 Work-in-process and finished goods 4,683 7,654 Total $ 9,498 $ 13,093 |
Goodwill
Goodwill | 6 Months Ended |
Jun. 30, 2021 | |
Goodwill | |
Goodwill | Note 5 – Goodwill Goodwill activity for the three and six months ended June 30, 2021 consisted of the following: in thousands Net balance at December 31, 2020 $ 97,552 Net foreign currency translation 290 Net balance at June 30, 2021 $ 97,842 No impairment of goodwill was recorded during the six months ended June 30, 2021 or June 30, 2020. |
Intangible Assets
Intangible Assets | 6 Months Ended |
Jun. 30, 2021 | |
Intangible Assets | |
Intangible Assets | Note 6 – Intangible Assets Intangible asset activity for the three and six months ended June 30, 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 31 106 6 143 Amortization expense (778) (2,004) (325) (3,107) Net balance at June 30, 2021 $ 1,532 $ 21,302 $ 1,393 $ 24,227 June 30, 2021 balance at cost $ 43,436 $ 40,121 $ 13,559 $ 97,116 Accumulated amortization (41,904) (18,819) (12,166) (72,889) Net balance at June 30, 2021 $ 1,532 $ 21,302 $ 1,393 $ 24,227 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 June 30, 2021 or June 30, 2020. |
Property and Equipment
Property and Equipment | 6 Months Ended |
Jun. 30, 2021 | |
Property and Equipment | |
Property and Equipment | Note 7 – Property and Equipment The major classes of property and equipment are as follows: in thousands June 30, 2021 December 31, 2020 Office equipment and software $ 14,259 $ 13,540 Leasehold improvements 10,433 10,593 Furniture and fixtures 3,909 3,827 Total 28,601 27,960 Accumulated depreciation (17,133) (16,125) Property and equipment, net $ 11,468 $ 11,835 Depreciation expense was $0.7 million and $1.5 million for the three and six months ended June 30, 2021, respectively, compared to $0.7 million and $1.4 million for the three and six months ended June 30, 2020. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 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 June 30, 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 June 30, 2021 and December 31, 2020: Fair Value Measurement at Reporting Date Using in thousands June 30, 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 $ 2,422 - $ 2,422 - Corporate Notes / Bonds $ 12,252 - $ 12,252 - Commercial Paper $ 8,097 - $ 8,097 - U.S. Treasury Bills $ 3,789 - $ 3,789 - U.S. Government Agencies $ 16,166 - $ 16,166 - 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 | 6 Months Ended |
Jun. 30, 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 six months ended June 30, 2021 were as follows: in thousands Balance at December 31, 2020 $ 4,135 Provision 660 Write-offs (1,645) Net foreign currency translation (3) Balance at June 30, 2021 $ 3,147 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Leases | Note 10 – Leases Operating lease cost details for the three and six months ended June 30, 2021 and 2020 are as follows: Three months ended Six months ended June 30, June 30, 2021 2020 2021 2020 (in thousands) (in thousands) Building rent $ 677 $ 765 $ 1,247 $ 1,456 Automobile rentals 411 359 744 711 Total net operating lease costs $ 1,088 $ 1,124 $ 1,991 $ 2,167 At June 30, 2021, the weighted average remaining lease term for our operating leases is 6.6 years. The weighted average discount rate for our operating leases is 5%. During the six months ended June 30, 2021, there were $1.9 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 June 30, 2021 (in $ thousands) 2021 $ 1,682 2022 3,156 2023 2,551 2024 1,738 2025 1,603 Later years 5,972 Less imputed interest (2,847) Total lease liabilities $ 13,855 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 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 7%. 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 $1.5 million and $6.5 million were paid during the three and six months ended June 30, 2021, respectively. 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. |
Long-Term Compensation Plan and
Long-Term Compensation Plan and Stock Based Compensation | 6 Months Ended |
Jun. 30, 2021 | |
Long-Term Compensation Plan and Stock Based Compensation | |
Long-Term Compensation Plan and Stock Based Compensation | Note 12 – Long-Term Compensation Plan and Stock Based Compensation (share counts in thousands) We awarded 226 restricted stock units during the six months ended June 30, 2021, subject to time-based vesting. The fair value of the unissued time-based restricted stock unit grants was $5.9 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 six months ended June 30, 2021, subject to the achievement of market and service conditions, which allow for up to 53 shares to be earned if the market conditions are fully achieved. The fair value of these awards was $2.2 million at the dates of grant and the awards are being amortized over the vesting period of three years. The Company currently believes that 45 of these shares are expected to be earned. We awarded restricted stock units subject to the achievement of service and future performance criteria during the six months ended June 30, 2021, which allow for up to 186 shares to be earned if the performance criteria are fully achieved. The fair value of these awards was $4.5 million at the dates of grant and the awards are being amortized over the vesting period of three years. The Company currently believes that 169 of these shares are expected to be earned. The following table details long-term compensation plan and stock-based compensation expense for the three and six months ended June 30, 2021 and 2020: Three months ended Six months ended June 30, June 30, 2021 2020 2021 2020 in thousands (in thousands) (in thousands) Stock-based compensation $ 1,292 $ 860 $ 2,634 $ 2,210 Other long-term incentive plan compensation 275 305 474 670 Total compensation $ 1,567 $ 1,165 $ 3,108 $ 2,880 |
Earnings per Common Share
Earnings per Common Share | 6 Months Ended |
Jun. 30, 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 and six months ended June 30, 2021 and June 30, 2020, diluted net loss per share for these periods excludes the effects of common stock equivalents, which are anti-dilutive. The details of the earnings per share calculations for the three and six months ended June 30, 2021 and 2020 are as follows: Three months ended Six months ended June 30, June 30, in thousands, except per share data 2021 2020 2021 2020 Net loss $ (6,685) $ (2,025) $ (15,836) $ (2,021) Weighted average common shares outstanding: Basic 39,694 40,028 39,692 40,059 Incremental shares with dilutive effect: Restricted stock awards — — — — Diluted 39,694 40,028 39,692 40,059 Net loss per share: Basic $ (0.17) $ (0.05) $ (0.40) $ (0.05) Diluted $ (0.17) $ (0.05) $ (0.40) $ (0.05) |
Legal Proceedings and Contingen
Legal Proceedings and Contingencies | 6 Months Ended |
Jun. 30, 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 June 28, 2021 the Klein case was dismissed by the court without prejudice. 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. On June 28, 2021 the Herrera case was dismissed by the court without prejudice. 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. |
Subsequent Event
Subsequent Event | 6 Months Ended |
Jun. 30, 2021 | |
Subsequent Event | |
Subsequent Event | Note 15 – Subsequent Events As previously disclosed, pursuant to that certain Cooperation Agreement by and among OneSpan Inc. (the “ Company OneSpan Board ”) on or prior to September 30, 2021. On July 29, 2021, Mr. Fox notified the Board that he will resign from the Board effective August 4, 2021. Mr. Fox did not advise the Company of any disagreement with the Company on any matter relating to its operations, policies or practices. On August 4, 2021, the Company announced that Scott M. Clements, the Company’s President and Chief Executive Officer and a director, left the Company (including the Board) effective August 2, 2021. Mr. Clements’ departure is not related to any disagreement with the Company on any matter relating to its operations, policies or practices. Mr. Clements’ employment agreement with the Company dated December 1, 2015, as amended effective November 15, 2016 and July 28, 2017, provides that he will receive certain severance payments in connection with a termination without Cause (as defined therein), subject to his execution of a customary release in form and substance reasonably acceptable to the Company. For a description of such compensation, please refer to the Company’s definitive proxy statement for the Company’s 2021 annual meeting of stockholders filed on April 26, 2021. On August 4, 2021, the Company announced the appointment of Steven R. Worth as Interim President and Chief Executive Officer, effective August 2, 2021. Mr. Worth has served as OneSpan’s General Counsel, Chief Compliance Officer and Corporate Secretary since 2016 and has served as OneSpan’s Interim Chief Financial Officer and Treasurer since June 9, 2021. Following his appointment as Interim President and Chief Executive Officer, he continues to serve in the roles of General Counsel, Chief Compliance Officer and Corporate Secretary and has executive responsibility for On August 4, 2021, in connection with Mr. Worth’s appointment as Interim President and Chief Executive Officer, the Company announced the appointment of John Bosshart as Interim Chief Financial Officer and Treasurer, effective August 2, 2021. Mr. Bosshart has served as OneSpan’s Chief Accounting Officer since November 2020. At this time, any compensation adjustments in connection with Mr. Bosshart’s appointment have not been determined. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 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, 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 and six months ended June 30, 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 through the present, we have 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, 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 June 30, 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 mobile security offerings, which are then 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 and six months ended June 30, 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 six month periods ended June 30, 2021 and 2020. The Company recorded $0.5 million and $0.1 million in cost of sales during the three months ended June 30, 2021 and June 30, 2020, respectively, for license fees owed to Promon for use of their software and technology, and recorded $2.0 million and $1.4 million for the six months ended June 30, 2021 and 2020, respectively. The Company owed Promon $1.2 million as of June 30, 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 gains aggregated $0.6 million and foreign transaction losses aggregated less than $0.1 million for the three and six months ended June 30, 2021, respectively. Foreign exchange transaction gains aggregated less than $0.1 million and foreign transaction losses aggregated $0.5 million for the three and six months ended June 30, 2020, respectively. 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. |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Revenue | |
Revenues disaggregated by geography, major product line and timing of revenue recognition | Revenue by major products (in thousands) Three months ended June 30, Six months ended June 30, 2021 2020 2021 2020 Hardware products $ 19,451 $ 24,188 $ 37,119 $ 43,926 Software licenses 8,927 11,196 19,704 29,718 Subscription 9,824 6,133 18,229 11,840 Professional services 1,041 1,326 2,443 2,747 Maintenance, support, and other 13,034 12,111 25,557 23,093 Total Revenue $ 52,277 $ 54,954 $ 103,052 $ 111,324 Revenue by location of customer for the three months ended June 30, 2021 and 2020 (in thousands) EMEA Americas APAC Total Total Revenue: 2021 $ 24,830 $ 17,011 $ 10,436 $ 52,277 2020 $ 28,336 $ 13,932 $ 12,686 $ 54,954 Percent of Total: 2021 47 % 33 % 20 % 100 % 2020 52 % 25 % 23 % 100 % Revenue by location of customer for the six months ended June 30, 2021 and 2020 (in thousands) EMEA Americas APAC Total Total Revenue: 2021 $ 51,819 $ 33,539 $ 17,694 $ 103,052 2020 $ 61,940 $ 26,265 $ 23,119 $ 111,324 Percent of Total: 2021 50 % 33 % 17 % 100 % 2020 56 % 24 % 20 % 100 % Timing of revenue recognition (in thousands) Three months ended June 30, Six months ended June 30, 2021 2020 2021 2020 Products and Licenses transferred at a point in time $ 28,378 $ 35,384 $ 56,823 $ 73,644 Services transferred over time 23,899 19,570 46,229 37,680 Total Revenue $ 52,277 $ 54,954 $ 103,052 $ 111,324 |
Schedule of changes in contract assets and contract liabilities | June 30, December 31, 2021 2020 Receivables, inclusive of trade and unbilled $ 45,762 $ 57,537 Contract Assets (current and non-current) $ 6,877 $ 9,079 Contract Liabilities (Deferred Revenue current and non-current) $ 53,734 $ 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 $ 14,877 $ 19,855 $ 12,057 $ 7,043 $ 53,832 |
Schedule of information related to the capitalized costs and amortization recognized in the current and prior period | in thousands June 30, 2021 December 31, 2020 Capitalized costs to obtain contracts, current $ 1,622 $ 1,222 Capitalized costs to obtain contracts, non-current $ 6,706 $ 5,464 Three months ended June 30, Six months ended June 30, in thousands 2021 2020 2021 2020 Amortization of capitalized costs to obtain contracts $ 361 $ 264 $ 671 $ 433 Impairments of capitalized costs to obtain contracts $ - $ - $ - $ - |
Inventories, net (Tables)
Inventories, net (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Inventories, net | |
Summary of Inventories, net | June 30, December 31, 2021 2020 (in thousands) Component parts $ 4,815 $ 5,439 Work-in-process and finished goods 4,683 7,654 Total $ 9,498 $ 13,093 |
Goodwill (Tables)
Goodwill (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Goodwill | |
Schedule of Goodwill Activity | in thousands Net balance at December 31, 2020 $ 97,552 Net foreign currency translation 290 Net balance at June 30, 2021 $ 97,842 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 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 31 106 6 143 Amortization expense (778) (2,004) (325) (3,107) Net balance at June 30, 2021 $ 1,532 $ 21,302 $ 1,393 $ 24,227 June 30, 2021 balance at cost $ 43,436 $ 40,121 $ 13,559 $ 97,116 Accumulated amortization (41,904) (18,819) (12,166) (72,889) Net balance at June 30, 2021 $ 1,532 $ 21,302 $ 1,393 $ 24,227 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Property and Equipment | |
Schedule of major classes of property and equipment | in thousands June 30, 2021 December 31, 2020 Office equipment and software $ 14,259 $ 13,540 Leasehold improvements 10,433 10,593 Furniture and fixtures 3,909 3,827 Total 28,601 27,960 Accumulated depreciation (17,133) (16,125) Property and equipment, net $ 11,468 $ 11,835 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, 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 $ 2,422 - $ 2,422 - Corporate Notes / Bonds $ 12,252 - $ 12,252 - Commercial Paper $ 8,097 - $ 8,097 - U.S. Treasury Bills $ 3,789 - $ 3,789 - U.S. Government Agencies $ 16,166 - $ 16,166 - 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) | 6 Months Ended |
Jun. 30, 2021 | |
Allowance for credit losses | |
Schedule change in the allowance for credit losses | in thousands Balance at December 31, 2020 $ 4,135 Provision 660 Write-offs (1,645) Net foreign currency translation (3) Balance at June 30, 2021 $ 3,147 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Schedule of supplemental consolidated balance sheet information related to our operating leases | Three months ended Six months ended June 30, June 30, 2021 2020 2021 2020 (in thousands) (in thousands) Building rent $ 677 $ 765 $ 1,247 $ 1,456 Automobile rentals 411 359 744 711 Total net operating lease costs $ 1,088 $ 1,124 $ 1,991 $ 2,167 |
Schedule of maturities of operating leases | As of June 30, 2021 (in $ thousands) 2021 $ 1,682 2022 3,156 2023 2,551 2024 1,738 2025 1,603 Later years 5,972 Less imputed interest (2,847) Total lease liabilities $ 13,855 |
Long-Term Compensation Plan a_2
Long-Term Compensation Plan and Stock Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Long-Term Compensation Plan and Stock Based Compensation | |
Summary of compensation expense | Three months ended Six months ended June 30, June 30, 2021 2020 2021 2020 in thousands (in thousands) (in thousands) Stock-based compensation $ 1,292 $ 860 $ 2,634 $ 2,210 Other long-term incentive plan compensation 275 305 474 670 Total compensation $ 1,567 $ 1,165 $ 3,108 $ 2,880 |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Earnings per Common Share | |
Details of Earnings Per Share Calculations | Three months ended Six months ended June 30, June 30, in thousands, except per share data 2021 2020 2021 2020 Net loss $ (6,685) $ (2,025) $ (15,836) $ (2,021) Weighted average common shares outstanding: Basic 39,694 40,028 39,692 40,059 Incremental shares with dilutive effect: Restricted stock awards — — — — Diluted 39,694 40,028 39,692 40,059 Net loss per share: Basic $ (0.17) $ (0.05) $ (0.40) $ (0.05) Diluted $ (0.17) $ (0.05) $ (0.40) $ (0.05) |
Description of the Company an_2
Description of the Company and Basis of Presentation - Consolidated Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Pro forma Income Statement: | ||||||
Total revenue | $ 52,277 | $ 54,954 | $ 103,052 | $ 111,324 | ||
Gross profit | 35,807 | 36,729 | 71,260 | 77,029 | ||
Operating income | (8,859) | (1,687) | (18,153) | (862) | ||
Income before taxes | (7,828) | (1,052) | (17,480) | (358) | ||
Provision for income taxes | (1,143) | 973 | (1,644) | 1,663 | ||
Net income | (6,685) | $ (9,151) | (2,025) | $ 4 | (15,836) | (2,021) |
Product and license | ||||||
Pro forma Income Statement: | ||||||
Total revenue | 28,378 | 35,384 | 56,823 | 73,644 | ||
Services and other | ||||||
Pro forma Income Statement: | ||||||
Total revenue | $ 23,899 | $ 19,570 | $ 46,229 | $ 37,680 |
Description of the Company an_3
Description of the Company and Basis of Presentation - Consolidated Statements of Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Pro forma Comprehensive Income | ||||||
Net loss | $ (6,685) | $ (9,151) | $ (2,025) | $ 4 | $ (15,836) | $ (2,021) |
Comprehensive loss | $ (6,128) | $ (1,585) | $ (16,213) | $ (5,865) |
Description of the Company an_4
Description of the Company and Basis of Presentation - Consolidated Statements of Stockholders' Equity (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Pro forma Stockholder's Equity | ||||||
Net loss | $ (6,685) | $ (9,151) | $ (2,025) | $ 4 | $ (15,836) | $ (2,021) |
Description of the Company an_5
Description of the Company and Basis of Presentation - Consolidated Statements of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flows from operating activities: | ||||||
Net income | $ (6,685) | $ (9,151) | $ (2,025) | $ 4 | $ (15,836) | $ (2,021) |
Changes in operating assets and liabilities: | ||||||
Contract assets | 1,974 | (2,026) | ||||
Income taxes payable | (2,652) | (5,870) | ||||
Net cash provided by operating activities | $ 1,184 | $ 4,381 |
Description of the Company an_6
Description of the Company and Basis of Presentation - Foreign Currency Translation and Transactions (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Description of the Company and Basis of Presentation | ||||
Gain (loss) from foreign currency transactions | $ 0.6 | $ 0.1 | $ (0.1) | $ (0.5) |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Cash and Cash Equivalents (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Jun. 30, 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 | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Equity Method Investments | ||||
Impairment charges | $ 0 | $ 0 | ||
Costs of sales | $ 16,470 | $ 18,225 | $ 31,792 | 34,295 |
Investment In Promon A | ||||
Equity Method Investments | ||||
Ownership percentage | 17.00% | 17.00% | ||
Costs of sales | $ 500 | $ 100 | $ 2,000 | $ 1,400 |
Amount owed included in accounts payable and accrued liabilities | $ 1,200 | $ 1,200 |
Revenue - Disaggregation of rev
Revenue - Disaggregation of revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenue | ||||
Revenue | $ 52,277 | $ 54,954 | $ 103,052 | $ 111,324 |
Percent of Total | 100.00% | 100.00% | 100.00% | 100.00% |
Products and Licenses transferred at a point in time | ||||
Revenue | ||||
Revenue | $ 28,378 | $ 35,384 | $ 56,823 | $ 73,644 |
Services transferred over time | ||||
Revenue | ||||
Revenue | 23,899 | 19,570 | 46,229 | 37,680 |
EMEA | ||||
Revenue | ||||
Revenue | $ 24,830 | $ 28,336 | $ 51,819 | $ 61,940 |
Percent of Total | 47.00% | 52.00% | 50.00% | 56.00% |
Americas | ||||
Revenue | ||||
Revenue | $ 17,011 | $ 13,932 | $ 33,539 | $ 26,265 |
Percent of Total | 33.00% | 25.00% | 33.00% | 24.00% |
APAC | ||||
Revenue | ||||
Revenue | $ 10,436 | $ 12,686 | $ 17,694 | $ 23,119 |
Percent of Total | 20.00% | 23.00% | 17.00% | 20.00% |
Hardware products | ||||
Revenue | ||||
Revenue | $ 19,451 | $ 24,188 | $ 37,119 | $ 43,926 |
Software licenses | ||||
Revenue | ||||
Revenue | 8,927 | 11,196 | 19,704 | 29,718 |
Subscription | ||||
Revenue | ||||
Revenue | 9,824 | 6,133 | 18,229 | 11,840 |
Professional services | ||||
Revenue | ||||
Revenue | 1,041 | 1,326 | 2,443 | 2,747 |
Maintenance, support and other | ||||
Revenue | ||||
Revenue | $ 13,034 | $ 12,111 | $ 25,557 | $ 23,093 |
Revenue - Contract balances (De
Revenue - Contract balances (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Contract balances | ||
Revenue recognized that was included in the balance sheet | $ 11,600 | |
Receivables, inclusive of trade and unbilled | 45,762 | $ 57,537 |
Contract Assets (current and non-current) | 6,877 | 9,079 |
Contract Liabilities (Deferred Revenue current and non-current) | $ 53,734 | $ 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 | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Revenue | |
Future revenue related to current unsatisfied performance obligations | $ 53,832 |
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 | $ 14,877 |
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 | $ 19,855 |
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 | $ 12,057 |
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 | $ 7,043 |
Revenue - Capitalized Costs and
Revenue - Capitalized Costs and Amortization (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Revenue | |||||
Amortization period | 7 years | 7 years | |||
Capitalized costs to obtain contracts, current | $ 1,622 | $ 1,622 | $ 1,222 | ||
Capitalized costs to obtain contracts, non-current | 6,706 | 6,706 | $ 5,464 | ||
Amortization of capitalized costs to obtain contracts | $ 361 | $ 264 | $ 671 | $ 433 |
Inventories, net - Summary of I
Inventories, net - Summary of Inventories, Net (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Inventories, net | ||
Component parts | $ 4,815 | $ 5,439 |
Work-in-process and finished goods | 4,683 | 7,654 |
Total | $ 9,498 | $ 13,093 |
Goodwill - Schedule of Goodwill
Goodwill - Schedule of Goodwill Activity (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Goodwill | ||
Net balance at beginning of period | $ 97,552 | |
Net foreign currency translation | 290 | |
Net balance at end of period | 97,842 | |
Goodwill impairment | $ 0 | $ 0 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Intangible asset activity | ||||
Net balance | $ 27,196 | |||
Additions | 16 | |||
Disposals-Other | (21) | |||
Net foreign currency translation | 143 | |||
Amortization expense | $ (1,534) | $ (2,335) | (3,107) | $ (4,689) |
Net balance | 24,227 | 24,227 | ||
Intangible assets, net | ||||
Balance at cost | 97,116 | 97,116 | ||
Accumulated amortization | (72,889) | (72,889) | ||
Total intangible assets | 24,227 | 24,227 | ||
Impairment charges | 0 | $ 0 | ||
Acquired Technology | ||||
Intangible asset activity | ||||
Net balance | 2,277 | |||
Additions | 2 | |||
Net foreign currency translation | 31 | |||
Amortization expense | (778) | |||
Net balance | 1,532 | 1,532 | ||
Intangible assets, net | ||||
Balance at cost | 43,436 | 43,436 | ||
Accumulated amortization | (41,904) | (41,904) | ||
Total intangible assets | 1,532 | 1,532 | ||
Customer relationships | ||||
Intangible asset activity | ||||
Net balance | 23,200 | |||
Net foreign currency translation | 106 | |||
Amortization expense | (2,004) | |||
Net balance | 21,302 | 21,302 | ||
Intangible assets, net | ||||
Balance at cost | 40,121 | 40,121 | ||
Accumulated amortization | (18,819) | (18,819) | ||
Total intangible assets | 21,302 | 21,302 | ||
Other | ||||
Intangible asset activity | ||||
Net balance | 1,719 | |||
Additions | 14 | |||
Disposals-Other | (21) | |||
Net foreign currency translation | 6 | |||
Amortization expense | (325) | |||
Net balance | 1,393 | 1,393 | ||
Intangible assets, net | ||||
Balance at cost | 13,559 | 13,559 | ||
Accumulated amortization | (12,166) | (12,166) | ||
Total intangible assets | $ 1,393 | $ 1,393 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | |||||
Total | $ 28,601 | $ 28,601 | $ 27,960 | ||
Accumulated depreciation | (17,133) | (17,133) | (16,125) | ||
Property and equipment, net | 11,468 | 11,468 | 11,835 | ||
Depreciation expense | 700 | $ 700 | 1,500 | $ 1,400 | |
Office equipment and software | |||||
Property, Plant and Equipment [Line Items] | |||||
Total | 14,259 | 14,259 | 13,540 | ||
Leasehold Improvements | |||||
Property, Plant and Equipment [Line Items] | |||||
Total | 10,433 | 10,433 | 10,593 | ||
Furniture and fixtures | |||||
Property, Plant and Equipment [Line Items] | |||||
Total | $ 3,909 | $ 3,909 | $ 3,827 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Recurring - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
U.S. Treasury Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | $ 2,422 | $ 4,951 |
U.S. Treasury Notes | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 2,422 | 4,951 |
Corporate Notes / Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 12,252 | 8,780 |
Corporate Notes / Bonds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 12,252 | 8,780 |
Commercial Paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 8,097 | 4,098 |
Commercial Paper | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 8,097 | 4,098 |
U.S. Treasury Bills | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 3,789 | 5,292 |
U.S. Treasury Bills | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 3,789 | 5,292 |
U.S. Government Agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 16,166 | 3,738 |
U.S. Government Agencies | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | $ 16,166 | $ 3,738 |
Allowance for credit losses (De
Allowance for credit losses (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Changes in the allowance for credit losses | |
Write-offs | $ (1,645) |
Impact of ASU 2016-13 adoption | |
Changes in the allowance for credit losses | |
Beginning Balance | 4,135 |
Provision | 660 |
Net foreign currency translation | (3) |
Ending Balance | $ 3,147 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Operating lease cost | $ 1,088 | $ 1,124 | $ 1,991 | $ 2,167 |
Other information related to operating leases | ||||
Cash payments to settle a lease liability reported in cash flows | 1,900 | |||
Right-of-use assets obtained in exchange for new lease liabilities | $ 0 | |||
Weighted-average discount rate | 5.00% | 5.00% | ||
Weighted average remaining lease term | 6 years 7 months 6 days | 6 years 7 months 6 days | ||
Building | ||||
Operating lease cost | $ 677 | 765 | $ 1,247 | 1,456 |
Automobile | ||||
Operating lease cost | $ 411 | $ 359 | $ 744 | $ 711 |
Leases - Maturities of our oper
Leases - Maturities of our operating leases (Details) $ in Thousands | Jun. 30, 2021USD ($) |
Maturities of operating leases | |
2021 | $ 1,682 |
2022 | 3,156 |
2023 | 2,551 |
2024 | 1,738 |
2025 | 1,603 |
Later years | 5,972 |
Less imputed interest | (2,847) |
Total lease liabilities | $ 13,855 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Income Taxes | |||||
Effective tax rate | 7.00% | ||||
Provision (benefit) for income taxes | $ (1,143) | $ 973 | $ (1,644) | $ 1,663 | |
Statutory tax rate | 21.00% | ||||
Income taxes paid | $ 1,500 | $ 6,500 | |||
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 a_3
Long-Term Compensation Plan and Stock Based Compensation (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2021USD ($)shares | |
Restricted Stock [Member] | |
Plan information | |
Stock based compensation awards issued shares | 226 |
2019 Omnibus Incentive Plan | Restricted Stock [Member] | |
Plan information | |
Stock based compensation awards issued shares | 45 |
Restricted stock awards | $ | $ 2.2 |
2019 Omnibus Incentive Plan | Restricted Stock, subject to time-based criteria | |
Plan information | |
Restricted stock awards | $ | $ 5.9 |
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 | 186 |
Restricted stock awards | $ | $ 4.5 |
2019 Omnibus Incentive Plan | Restricted Stock, subject to performance criteria | |
Plan information | |
Stock based compensation awards issued shares | 53 |
Vesting period (in years) | 3 years |
Long-Term Compensation Plan a_4
Long-Term Compensation Plan and Stock Based Compensation - Allocation of Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Compensation expense | ||||
Stock-based compensation | $ 1,292 | $ 860 | $ 2,634 | $ 2,210 |
Other long-term compensation plan | 275 | 305 | 474 | 670 |
Total Compensation | $ 1,567 | $ 1,165 | $ 3,108 | $ 2,880 |
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 | 6 Months Ended | ||||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Earnings per Common Share | ||||||
Net loss | $ (6,685) | $ (9,151) | $ (2,025) | $ 4 | $ (15,836) | $ (2,021) |
Weighted average common shares outstanding: | ||||||
Basic | 39,694 | 40,028 | 39,692 | 40,059 | ||
Incremental shares with dilutive effect: | ||||||
Diluted (in shares) | 39,694 | 40,028 | 39,692 | 40,059 | ||
Basic | $ (0.17) | $ (0.05) | $ (0.40) | $ (0.05) | ||
Diluted | $ (0.17) | $ (0.05) | $ (0.40) | $ (0.05) |
Legal Proceedings and Conting_2
Legal Proceedings and Contingencies - Regulatory Actions (Details) $ in Thousands | Jun. 30, 2021USD ($) |
Commitments and Contingencies | |
Liabilities accrued | $ 0 |