Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Jul. 25, 2018 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | PERFICIENT INC | |
Entity Central Index Key | 1,085,869 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 34,809,726 | |
Trading Symbol | PRFT |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 10,359 | $ 6,307 |
Accounts receivable, net | 107,286 | 112,194 |
Prepaid expenses | 4,523 | 4,470 |
Other current assets | 3,483 | 6,237 |
Total current assets | 125,651 | 129,208 |
Property and equipment, net | 6,678 | 7,145 |
Goodwill | 315,405 | 305,238 |
Intangible assets, net | 48,995 | 51,066 |
Other non-current assets | 7,811 | 6,403 |
Total assets | 504,540 | 499,060 |
Current liabilities: | ||
Accounts payable | 14,495 | 23,196 |
Other current liabilities | 41,662 | 38,077 |
Total current liabilities | 56,157 | 61,273 |
Long-term debt | 56,000 | 55,000 |
Other non-current liabilities | 18,631 | 16,436 |
Total liabilities | 130,788 | 132,709 |
STOCKHOLDERS' EQUITY ATTRIBUTABLE TO PARENT | ||
Common stock (par value $.001 per share; 100,000,000 authorized; 47,920,263 shares issued and 33,228,199 shares outstanding as of June 30, 2018; 47,370,945 shares issued and 33,249,665 shares outstanding as of December 31, 2017) | 48 | 47 |
Additional paid-in capital | 414,610 | 403,906 |
Accumulated other comprehensive loss | (2,474) | (1,822) |
Treasury stock, at cost (14,692,064 shares as of June 30, 2018; 14,121,280 shares as of December 31, 2017) | (177,301) | (163,871) |
Retained earnings | 138,869 | 128,091 |
Total stockholders’ equity | 373,752 | 366,351 |
Total liabilities and stockholders’ equity | $ 504,540 | $ 499,060 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Common Stock, par value | $ 0.001 | $ 0.001 |
Common Stock, shares authorized | 100,000,000 | 100,000,000 |
Common Stock, shares issued | 47,920,263 | 47,370,945 |
Common stock, shares outstanding (in shares) | 33,228,199 | 33,249,665 |
Treasury Stock, shares | 14,692,064 | 14,121,280 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenues | ||||
Revenues | $ 121,798 | $ 117,026 | $ 242,739 | $ 228,046 |
Cost of revenues (exclusive of depreciation and amortization, shown separately below) | ||||
Cost of Goods and Services Sold | 79,595 | 77,635 | 158,821 | 152,580 |
Selling, general and administrative | 27,884 | 26,128 | 56,624 | 51,812 |
Depreciation | 1,028 | 1,205 | 2,062 | 2,464 |
Amortization | 4,137 | 3,537 | 8,020 | 7,162 |
Acquisition costs | 542 | 893 | 840 | 1,383 |
Adjustment to fair value of contingent consideration | 121 | (597) | 1,091 | (439) |
Income from operations | 8,491 | 8,225 | 15,281 | 13,084 |
Other Income (Expense) | ||||
Net interest expense | 513 | 657 | 887 | 1,004 |
Net other expense (income) | 52 | (51) | 49 | (69) |
Income before income taxes | 7,926 | 7,619 | 14,345 | 12,149 |
Provision for income taxes | 2,077 | 5,210 | 3,567 | 7,030 |
Net income | $ 5,849 | $ 2,409 | $ 10,778 | $ 5,119 |
Basic net income per share (in dollars per share) | $ 0.18 | $ 0.07 | $ 0.33 | $ 0.15 |
Diluted net income per share (in dollars per share) | $ 0.17 | $ 0.07 | $ 0.32 | $ 0.15 |
Shares used in computing basic net income per share (in shares) | 32,772 | 32,942 | 32,762 | 33,161 |
Shares used in computing diluted net income per share (in shares) | 33,889 | 33,747 | 33,894 | 34,080 |
Services | ||||
Revenues | ||||
Revenues | $ 120,912 | $ 107,756 | $ 241,107 | $ 211,777 |
Cost of revenues (exclusive of depreciation and amortization, shown separately below) | ||||
Cost of Goods and Services Sold | 79,595 | 69,908 | 158,821 | 138,888 |
Software and hardware | ||||
Revenues | ||||
Revenues | 886 | 9,270 | 1,632 | 16,269 |
Cost of revenues (exclusive of depreciation and amortization, shown separately below) | ||||
Cost of Goods and Services Sold | $ 0 | $ 7,727 | $ 0 | $ 13,692 |
Unaudited Condensed Consolidat5
Unaudited Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 5,849 | $ 2,409 | $ 10,778 | $ 5,119 |
Other comprehensive (loss) income: | ||||
Foreign currency translation adjustment | (554) | 267 | (652) | 583 |
Comprehensive income | $ 5,295 | $ 2,676 | $ 10,126 | $ 5,702 |
Unaudited Condensed Consolidat6
Unaudited Condensed Consolidated Statement of Stockholders' Equity - 6 months ended Jun. 30, 2018 - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Treasury Stock | Retained Earnings |
Balance at Dec. 31, 2017 | $ 366,351 | $ 47 | $ 403,906 | $ (1,822) | $ (163,871) | $ 128,091 |
Balance (in shares) at Dec. 31, 2017 | 33,249,665 | 33,250,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Proceeds from the sales of stock through the Employee Stock Purchase Plan (in shares) | 4,000 | |||||
Proceeds from the sales of stock through the Employee Stock Purchase Plan | $ 81 | 81 | ||||
Stock compensation related to restricted stock vesting and retirement savings plan contributions (in shares) | 392,000 | |||||
Stock compensation related to restricted stock vesting and retirement savings plan contributions | 7,615 | $ 1 | 7,614 | |||
Purchases of treasury stock and buyback of shares for taxes (in shares) | (557,000) | |||||
Purchases of treasury stock and buyback of shares for taxes | (13,127) | (13,127) | ||||
Issuance of stock in conjunction with acquisition including stock attributed to future compensation (in shares) | 153,000 | |||||
Issuance of stock in conjunction with acquisition including stock attributed to future compensation | 3,009 | 3,009 | 0 | |||
Surrender of stock in conjunction with net working capital settlement (in shares) | (14,000) | |||||
Surrender of stock in conjunction with net working capital settlement | (303) | (303) | ||||
Net income | 10,778 | 10,778 | ||||
Foreign currency translation adjustment | (652) | (652) | ||||
Balance at Jun. 30, 2018 | $ 373,752 | $ 48 | $ 414,610 | $ (2,474) | $ (177,301) | $ 138,869 |
Balance (in shares) at Jun. 30, 2018 | 33,228,199 | 33,228,000 |
Unaudited Condensed Consolidat7
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
OPERATING ACTIVITIES | ||
Net income | $ 10,778 | $ 5,119 |
Adjustments to reconcile net income to net cash provided by operations: | ||
Depreciation | 2,062 | 2,464 |
Amortization | 8,020 | 7,162 |
Deferred income taxes | 774 | 2,034 |
Non-cash stock compensation and retirement savings plan contributions | 7,615 | 7,095 |
Adjustment to fair value of contingent consideration for purchase of business | 1,091 | (439) |
Write-off of unamortized credit facility fees | 0 | 246 |
Changes in operating assets and liabilities, net of acquisitions: | ||
Accounts receivable | 11,596 | 8,653 |
Other assets | 1,422 | 2,901 |
Accounts payable | (8,701) | (6,372) |
Other liabilities | (5,103) | (3,983) |
Net cash provided by operating activities | 29,554 | 24,880 |
INVESTING ACTIVITIES | ||
Purchase of property and equipment | (1,564) | (2,112) |
Capitalization of internally developed software costs | (290) | (585) |
Purchase of business | (11,278) | (37,886) |
Net cash used in investing activities | (13,132) | (40,583) |
FINANCING ACTIVITIES | ||
Proceeds from line of credit | 117,500 | 154,000 |
Payments on line of credit | (116,500) | (118,000) |
Payment for credit facility financing fees | 0 | (355) |
Payment of contingent consideration for purchase of business | 0 | (1,344) |
Proceeds from the sale of stock through the Employee Stock Purchase Plan | 81 | 91 |
Purchases of treasury stock | (10,232) | (20,912) |
Remittance of taxes withheld as part of a net share settlement of restricted stock vesting | (2,895) | (2,487) |
Net cash (used in ) provided by financing activities | (12,046) | 10,993 |
Effect of exchange rate on cash and cash equivalents | (324) | 289 |
Change in cash and cash equivalents | 4,052 | (4,421) |
Cash and cash equivalents at beginning of period | 6,307 | 10,113 |
Cash and cash equivalents at end of period | 10,359 | 5,692 |
Supplemental disclosures: | ||
Cash paid for income taxes | 1,620 | 1,202 |
Cash paid for interest | 806 | 714 |
Non-cash investing activity: | ||
Stock issued for purchase of business | 2,666 | 9,429 |
Stock surrendered by sellers in conjunction with net working capital settlement | $ 303 | $ 0 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying interim unaudited condensed consolidated financial statements of Perficient, Inc. and its subsidiaries (collectively, the “Company”) have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and are presented in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”) applicable to interim financial information. Accordingly, certain note disclosures have been condensed or omitted. In the opinion of management, the interim unaudited condensed consolidated financial statements reflect all adjustments (consisting of only normal recurring adjustments) necessary for a fair presentation of the Company’s financial position, results of operations and cash flows for the periods presented. These financial statements should be read in conjunction with the Company’s consolidated financial statements and notes thereto filed with the SEC in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 . Operating results for the three and six months ended June 30, 2018 may not be indicative of the results for the full year ending December 31, 2018 . Certain prior period financial statement amounts have been reclassified to conform to current period presentation. This reclassification relates to reimbursable expenses, which have been combined with services revenues and cost of services within revenues and cost of revenues in the Unaudited Condensed Consolidated Statements of Operations. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Use of Estimates The preparation of financial statements in conformity with U.S. GAAP 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 revenues and expenses during the reporting periods. Actual results could differ from those estimates, and such differences could be material to the financial statements. Except for the accounting policies related to revenue recognition that were updated as a result of the adoption of Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers issued by the Financial Accounting Standards Board (the “FASB”), there have been no changes to significant accounting policies described in the Annual Report on Form 10-K for the year ended December 31, 2017 , filed with the SEC on March 1, 2018 , that have had a material impact on the Company’s condensed consolidated financial statements and related notes. See Note 4, Revenue , for updated policies related to revenue recognition. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Accounting Standards Codification ( “ ASC ” ) Topic 606) , which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU No. 2014-09 replaced most existing revenue recognition guidance in U.S. GAAP. In 2015, the FASB deferred the effective date of ASU No. 2014-09 by one year. In 2016, the FASB issued ASU No. 2016-08, Principal versus Agent Considerations , ASU No. 2016-10, Identifying Performance Obligations and Licensing , ASU No. 2016-12, Narrow-Scope Improvements and Practical Expedients and ASU No. 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers , all of which further amended ASU No. 2014-09. The Company adopted the standard on January 1, 2018 using the modified retrospective method which requires a cumulative-effect adjustment to the opening balance of retained earnings within stockholders’ equity. The Company has determined that the most significant impact upon adoption was to third-party software and hardware revenue, which was primarily recorded on a gross basis as the principal in the transaction through December 31, 2017 and presented on a net basis as the agent as of January 1, 2018. The adoption of the standard also resulted in minor changes to the timing of revenue recognition. As the agent, revenue from multi-year sales of third-party software and support is recognized upfront as the performance obligation is fulfilled, rather than annually as invoiced to the customer. Additionally, variable consideration related to service contracts, such as volume discounts and holdbacks, are recognized earlier under the new standard in certain instances. The impact from these timing changes was immaterial as of January 1, 2018, and therefore, did not result in a cumulative-effect adjustment to the opening balance of retained earnings. The adoption of the standard also resulted in increases to accounts receivable, net and deferred revenue within other current liabilities for those contracts under which the Company’s right to consideration is unconditional. Refer to Impacts of ASC Topic 606 Adoption on Current Period Results below for the impact of adopting ASC Topic 606 on the Unaudited Condensed Consolidated Balance Sheet as of June 30, 2018 and the Unaudited Condensed Consolidated Statement of Operations for the three and six months ended June 30, 2018 . There was no material impact on the Unaudited Condensed Consolidated Statement of Cash Flows for the six months ended June 30, 2018 . The adoption of ASU No. 2014-09 and its amendments also resulted in additional disclosures around the nature and timing of performance obligations, contract costs, and deferred revenue, as well as significant judgments and practical expedients used by the Company. See Note 4, Revenue , for these disclosures. Impacts of ASC Topic 606 Adoption on Current Period Results The impacts of ASC Topic 606 adoption on the Unaudited Condensed Consolidated Balance Sheet as of June 30, 2018 are as follows (in thousands): As Reported ASC Topic 606 Impact Without ASC Topic 606 Adoption Accounts receivable, net $ 107,286 $ (1,283 ) $ 106,003 Total assets 504,540 (1,283 ) 503,257 Other current liabilities 41,662 (1,283 ) 40,379 Total liabilities 130,788 (1,283 ) 129,505 The impacts of ASC Topic 606 adoption on the Unaudited Condensed Consolidated Statement of Operations for the three and six months ended June 30, 2018 are as follows (in thousands): Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 As Reported (Net Presentation) ASC Topic 606 Impact Without ASC Topic 606 Adoption (Gross Presentation) As Reported (Net Presentation) ASC Topic 606 Impact Without ASC Topic 606 Adoption (Gross Presentation) Revenues Services $ 120,912 $ — $ 120,912 $ 241,107 $ — $ 241,107 Software and hardware 886 5,865 6,751 1,632 12,385 14,017 Total revenues 121,798 5,865 127,663 242,739 12,385 255,124 Cost of revenues Cost of services 79,595 — 79,595 158,821 — 158,821 Software and hardware costs — 5,865 5,865 — 12,385 12,385 Total cost of revenues 79,595 5,865 85,460 158,821 12,385 171,206 Income from operations 8,491 — 8,491 15,281 — 15,281 Net income 5,849 — 5,849 10,778 — 10,778 In February 2016, the FASB issued ASU No. 2016-02, Leases , which supersedes ASC Topic 840, Leases, and creates a new topic, ASC Topic 842, Leases . This update requires lessees to recognize a lease liability and a lease asset for all leases, including operating leases, with a term greater than 12 months on its balance sheet. The update also expands the required quantitative and qualitative disclosures surrounding leases. This update is effective for the Company on January 1, 2019. Currently, ASU No. 2016-02 requires companies to adopt the requirements of the new standard by applying a modified retrospective approach to the beginning of the earliest period presented in the financial statements. However, the FASB issued an exposure draft in January 2018, which may allow companies the option to instead apply the provisions of the new standard at the effective date without adjusting the comparative periods presented. While the Company is currently assessing the impact ASU No. 2016-02 will have on its consolidated financial statements, the Company expects the primary impact upon adoption will be the recognition, on a discounted basis, of its minimum commitments under noncancellable operating leases on its consolidated balance sheets resulting in the recording of right of use assets and lease obligations. Current minimum commitments under noncancellable operating leases are disclosed in Note 13, Commitments and Contingencies . |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue The Company’s revenues consist of services and software and hardware sales. Revenues are recognized when control of these services or goods are transferred to clients, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services or goods. For a description of the Company’s revenue recognition policy prior to January 1, 2018 under ASC Subtopic 985-605, Software – Revenue Recognition, ASC Subtopic 605-25, Revenue Recognition – Multiple-Element Arrangements , and ASC Section 605-10-S99 (Staff Accounting Bulletin Topic 13, Revenue Recognition ), refer to Note 2, Summary of Significant Accounting Policies, in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. The following discussion relates to the Company’s revenue recognition policy, effective January 1, 2018, under ASC Topic 606. Services Revenues Services revenues are primarily comprised of professional services that include developing, implementing, automating and extending business processes, technology infrastructure, and software applications. The Company’s professional services span multiple industries, platforms and solutions; however, the Company has remained relatively diversified and does not believe that it has significant revenue concentration within any single industry, platform or solution. Professional services revenues are recognized over time as services are rendered. Most projects are performed on a time and materials basis, while a portion of revenues is derived from projects performed on a fixed fee or fixed fee percent complete basis. For time and material contracts, revenues are generally recognized and invoiced by multiplying the number of hours expended in the performance of the contract by the billing rates established in the contract. For fixed fee contracts, revenues are generally recognized and invoiced by multiplying the fixed rate per time period established in the contract by the number of time periods elapsed. For fixed fee percent complete contracts, revenues are generally recognized using an input method based on the ratio of hours expended to total estimated hours, and the client is invoiced according to the agreed-upon schedule detailing the amount and timing of payments in the contract. Clients are typically billed monthly for services provided during that month, but can be billed on a more or less frequent basis as determined by the contract. If the time is worked and approved at the end of a fiscal period and the invoice has not yet been sent to the client, the amount is recorded as revenue once the Company verifies all other revenue recognition criteria have been met, and the amount is classified as a receivable as the right to consideration is unconditional at that point. Amounts invoiced and collected in excess of revenues recognized are contract liabilities, which are classified as deferred revenues in the Unaudited Condensed Consolidated Balance Sheet. The term between invoicing and payment due date is not significant. Contracts for professional services provide for a general right, to the client or the Company, to cancel or terminate the contract within a given period of time (generally 10 to 30 days’ notice is required). The client is responsible for any time and expenses incurred up to the date of cancellation or termination of the contract. Certain contracts may include volume discounts or holdbacks, which are accounted for as variable consideration under ASC Topic 606, but are not typically significant. The Company estimates variable consideration based on historical experience and forecasted sales and includes the variable consideration in the transaction price. Other services revenues are comprised of hosting fees, partner referral fees, maintenance agreements, training and internally developed software-as-a-service (“SaaS”) sales. Revenues from hosting fees, maintenance agreements, training and internally developed SaaS sales are generally recognized over time using a time-based measure of progress as services are rendered. Partner referral fees are recorded at a point in time upon meeting specified requirements set by each partner to earn the respective fee. On many professional service projects, the Company is also reimbursed for out-of-pocket expenses including travel and other project-related expenses. These reimbursements are included as a component of the transaction price of the respective professional services contract and are invoiced as the expenses are incurred. The Company structures its professional services arrangements to recover the cost of reimbursable expenses without a markup. Software and Hardware Revenues Software and hardware revenues are comprised of third-party software and hardware resales, in which the Company is considered the agent, and sales of internally developed software, in which the Company is considered the principal. Third-party software and hardware revenues are recognized and invoiced when the Company fulfills its obligation to arrange the sale, which occurs when the purchase order with the vendor is executed and the customer has access to the software or the hardware has been shipped to the customer. Internally developed software revenues are recognized and invoiced when control is transferred to the customer, which occurs when the software has been made available to the customer and the license term has commenced. Revenues from third-party software and hardware sales are recorded on a net basis, while revenues from internally developed software sales are recorded on a gross basis. There are no significant cancellation or termination-type provisions for the Company’s software and hardware sales, and the term between invoicing and payment due date is not significant. Arrangements with Multiple Performance Obligations Arrangements with clients may contain multiple promises such as delivery of software, hardware, professional services or post-contract support services. These promises are accounted for as separate performance obligations if they are distinct. For arrangements with clients that contain multiple performance obligations, the transaction price is allocated to the separate performance obligations based on estimated relative standalone selling price, which is estimated by the expected cost plus a margin approach, taking into consideration market conditions and competitive factors. Contract Costs In accordance with the terms of the Company’s sales commission plan, commissions are not earned until the related revenue is recognized. Therefore, sales commissions are expensed as they are incurred. Certain sales incentives are accrued based on achievement of specified bookings goals. For these incentives, the Company applies the practical expedient that allows the Company to expense the incentives as incurred, since the amortization period would have been one year or less. Deferred Revenue During the six months ended June 30, 2018 , $ 3.8 million was recognized in revenue that was included in the deferred revenue balance at the beginning of the period. The changes in deferred revenue for the six months ended June 30, 2018 are as follows (in thousands): Balance at December 31, 2017 $ 3,278 Impact of ASC Topic 606 adoption (offset to Accounts Receivable) 2,806 Opening balance at January 1, 2018 6,084 Deferral of revenue 6,418 Recognition of deferred revenue (7,127 ) Other (390 ) Balance at June 30, 2018 $ 4,985 Transaction Price Allocated to Remaining Performance Obligations Due to the ability of the client or the Company to cancel or terminate the contract within a given period of time (generally 10 to 30 days’ notice is required), the majority of the Company’s contracts have a term of less than one year. Perficient does not disclose the value of unsatisfied performance obligations for contracts with an original maturity date of one year or less or time and materials contracts for which the Company has the right to invoice for services performed. Revenue related to unsatisfied performance obligations for remaining contracts as of June 30, 2018 was immaterial. Disaggregation of Revenue The following table presents revenue disaggregated by revenue source and pattern of revenue recognition (in thousands): Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 Over Time Point In Time Total Revenues Over Time Point In Time Total Revenues Time and materials contracts $ 84,884 $ — $ 84,884 $ 167,033 $ — $ 167,033 Fixed fee percent complete contracts 7,898 — 7,898 17,010 — 17,010 Fixed fee contracts 20,377 — 20,377 41,599 — 41,599 Reimbursable expenses 3,215 — 3,215 6,245 — 6,245 Total professional services fees 116,374 — 116,374 231,887 — 231,887 Other services revenue* 3,754 784 4,538 7,618 1,602 9,220 Total services 120,128 784 120,912 239,505 1,602 241,107 Software and hardware — 886 886 — 1,632 1,632 Total revenues $ 120,128 $ 1,670 $ 121,798 $ 239,505 $ 3,234 $ 242,739 * Other services revenue primarily consists of hosting fees, maintenance, training, internally developed SaaS and partner referral fees. The following table presents revenue disaggregated by geographic area, as determined by the billing address of customers (in thousands): Three Months Ended Six Months Ended United States $ 119,211 $ 236,739 Canada 739 2,110 Other countries 1,848 3,890 Total revenues $ 121,798 $ 242,739 |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Stock-based compensation is accounted for in accordance with ASC Topic 718, Compensation – Stock Compensation . Under this guidance, the Company recognizes share-based compensation ratably using the straight-line attribution method over the requisite service period, which is generally three years. In addition, the Company has elected to estimate the amount of expected forfeitures when calculating share-based compensation, instead of accounting for forfeitures as they occur. The fair value of restricted stock awards is based on the value of the Company’s common stock on the date of the grant. Stock Award Plans The Company’s Second Amended and Restated 2012 Long Term Incentive Plan (as amended, the “Incentive Plan”) allows for the granting of various types of stock awards, not to exceed a total of 7.0 million shares, to eligible individuals. The Compensation Committee of the Board of Directors administers the Incentive Plan and determines the terms of all stock awards made under the Incentive Plan. As of June 30, 2018 , there were 2.6 million shares of common stock available for issuance under the Incentive Plan. Stock-based compensation cost recognized for the three and six months ended June 30, 2018 was approximately $ 4.1 million and $ 8.0 million, respectively, which included $ 0.7 million and $ 1.4 million, respectively, of expense for retirement savings plan contributions. The associated current and future income tax benefits recognized were $ 0.8 million and $ 1.6 million for the three and six months ended June 30, 2018 , respectively. Stock-based compensation cost recognized for the three and six months ended June 30, 2017 was approximately $ 3.6 million and $ 7.3 million, respectively, which included $ 0.6 million and $ 1.3 million, respectively, of expense for retirement savings plan contributions. The associated current and future income tax benefits recognized were $ 1.1 million and $ 2.3 million for the three and six months ended June 30, 2017 , respectively. As of June 30, 2018 , there was $ 20.3 million of total unrecognized compensation cost related to non-vested share-based awards with a weighted-average remaining life of two years. Restricted stock activity for the six months ended June 30, 2018 was as follows (shares in thousands): Shares Weighted-Average Restricted stock awards outstanding at December 31, 2017 1,436 $ 18.12 Awards granted 364 22.06 Awards vested (330 ) 19.27 Awards forfeited (70 ) 17.45 Restricted stock awards outstanding at June 30, 2018 1,400 $ 18.88 |
Net Income per Share
Net Income per Share | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Net Income per Share | Net Income per Share The following table presents the calculation of basic and diluted net income per share (in thousands, except per share information): Three Months Ended Six Months Ended 2018 2017 2018 2017 Net income $ 5,849 $ 2,409 $ 10,778 $ 5,119 Basic: Weighted-average shares of common stock outstanding 32,772 32,942 32,762 33,161 Shares used in computing basic net income per share 32,772 32,942 32,762 33,161 Effect of dilutive securities: Restricted stock subject to vesting 552 262 576 393 Shares issuable for acquisition consideration (1) 565 543 556 526 Shares used in computing diluted net income per share 33,889 33,747 33,894 34,080 Basic net income per share $ 0.18 $ 0.07 $ 0.33 $ 0.15 Diluted net income per share $ 0.17 $ 0.07 $ 0.32 $ 0.15 Anti-dilutive restricted stock not included in the calculation of diluted net income per share — 228 60 175 (1) For the three and six months ended June 30, 2018 , this represents the shares held in escrow pursuant to: (i) the Asset Purchase Agreement with BioPharm Systems, Inc. (“BioPharm”); (ii) the Asset Purchase Agreement with Zeon Solutions Incorporated and certain related entities (collectively, “Zeon”); (iii) the Asset Purchase Agreement with RAS & Associates, LLC (“RAS”); (iv) the Asset Purchase Agreement with Clarity Consulting, Inc. and Truth Labs, LLC (together, “Clarity”); and (v) the Asset Purchase Agreement with Southport Services Group, LLC (“Southport”), as part of the consideration. For the three and six months ended June 30, 2017 , this represents the shares held in escrow pursuant to: (i) the Asset Purchase Agreement with BioPharm; (ii) the Asset Purchase Agreement with Zeon; (iii) the Asset Purchase Agreement with The Pup Group, Inc. d/b/a Enlighten (“Enlighten”); (iv) the Asset Purchase Agreement with RAS; and (v) the Asset Purchase Agreement with Clarity, as part of the consideration. Prior to 2018, the Company's Board of Directors authorized the repurchase of up to $135.0 million of Company common stock. On February 20, 2018, the Board of Directors authorized the expansion of the stock repurchase program by authorizing the repurchase of up to an additional $25.0 million of Company common stock for a total repurchase program of $160.0 million and extended the expiration date of the program from December 31, 2018 to December 31, 2019. The program could be suspended or discontinued at any time, based on market, economic, or business conditions. The timing and amount of repurchase transactions will be determined by management based on its evaluation of market conditions, share price, and other factors. Since the program’s inception on August 11, 2008, the Company has repurchased approximately $145.2 million ( 12.8 million shares) of outstanding common stock through June 30, 2018 . |
Balance Sheet Components
Balance Sheet Components | 6 Months Ended |
Jun. 30, 2018 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Components | Balance Sheet Components June 30, 2018 (unaudited) December 31, 2017 (in thousands) Accounts receivable: Accounts receivable $ 63,314 $ 82,603 Unbilled revenues 45,151 30,863 Allowance for doubtful accounts (1,179 ) (1,272 ) Total $ 107,286 $ 112,194 Property and equipment: Computer hardware (useful life of 3 years) $ 13,436 $ 13,110 Software (useful life of 1 to 7 years) 5,042 5,159 Furniture and fixtures (useful life of 5 years) 4,203 3,772 Leasehold improvements (useful life of 5 years) 3,120 2,836 Less: Accumulated depreciation (19,123 ) (17,732 ) Total $ 6,678 $ 7,145 Other current liabilities: Estimated fair value of contingent consideration liability (1) $ 13,450 $ 8,148 Accrued variable compensation 12,381 16,842 Deferred revenue 4,985 3,278 Other current liabilities 4,652 3,879 Payroll related costs 3,352 2,971 Accrued medical claims expense 1,925 2,133 Professional fees 582 357 Accrued subcontractor fees 335 469 Total $ 41,662 $ 38,077 Other non-current liabilities: Deferred income taxes $ 7,990 $ 7,360 Other non-current liabilities 6,021 4,667 Deferred compensation liability 4,620 4,409 Total $ 18,631 $ 16,436 (1) As of June 30, 2018 , represents the fair value estimate of revenue and earnings-based contingent consideration that may be realized by Southport and Clarity twelve months after the acquisition. As of December 31, 2017 , represents the fair value estimate of additional revenue and earnings-based contingent consideration that may be realized by Clarity twelve months after the acquisition. |
Business Combinations
Business Combinations | 6 Months Ended |
Jun. 30, 2018 | |
Business Combinations [Abstract] | |
Business Combination Disclosure | Business Combinations 2017 Acquisitions Acquisition of RAS On January 3, 2017 , the Company acquired substantially all of the assets of RAS through a wholly-owned subsidiary of the Company, pursuant to the terms of an Asset Purchase Agreement. The Company’s total allocable purchase price consideration was $10.4 million . The purchase price was comprised of $7.1 million in cash paid and $2.1 million in Company common stock issued at closing reduced by $0.6 million as a result of a net working capital adjustment settled in Company common stock surrendered by RAS in 2017. The purchase price also included $1.8 million representing the initial fair value estimate of additional revenue and earnings-based contingent consideration, which was not realized by RAS. The amount of goodwill deductible for tax purposes was $3.7 million . Acquisition of Clarity On June 22, 2017 , the Company acquired substantially all of the assets of Clarity, pursuant to the terms of an Asset Purchase Agreement. The Company’s total allocable purchase price consideration was $41.7 million . The purchase price was comprised of $30.7 million in cash paid and $7.3 million in Company common stock issued at closing reduced by $0.4 million as a result of the net working capital adjustment settled in Company common stock surrendered by Clarity in February 2018. The purchase price also included $4.1 million representing the initial fair value estimate of additional revenue and earnings-based contingent consideration with a maximum cash payout of $9.2 million . Clarity achieved the maximum cash payout pursuant to the Asset Purchase Agreement and, as a result, the Company has accrued $9.2 million of contingent consideration as of June 30, 2018 . The amount of goodwill expected to be deductible for tax purposes, excluding contingent consideration, is $22.1 million . 2018 Acquisitions Acquisition of Southport On April 2, 2018 , the Company acquired substantially all of the assets of Southport, pursuant to the terms of an Asset Purchase Agreement. The acquisition of Southport expands the Company’s expertise in business intelligence and data warehousing services. The Company has initially estimated the total allocable purchase price consideration to be $18.5 million . The purchase price was comprised of $11.3 million in cash paid and $2.7 million in Company common stock issued at closing increased by $0.3 million for an estimated net working capital adjustment due to the seller. The purchase price also included $4.2 million representing the initial fair value estimate of additional revenue and earnings-based contingent consideration, which may be realized by the seller twelve months after the closing date of the acquisition with a maximum cash payout of $6.6 million . The Company incurred approximately $0.8 million in transaction costs, which were expensed when incurred. As part of the consideration transferred for the acquisition of Southport, the Company issued common stock to owners of Southport, who are continuing with the Company, with restrictions limiting the ability to sell the common stock which lapse over a certain period or over an accelerated period upon meeting specified employment milestones. As such, an estimated $0.3 million of the common stock value was attributed to future compensation and recorded as an asset within “Other current assets” and “Other non-current assets” in the Unaudited Condensed Consolidated Balance Sheet as of the acquisition date, to be amortized over the requisite service period. The Company has estimated the allocation of the total purchase price consideration between tangible assets, identified intangible assets, liabilities, and goodwill as follows (in millions): Acquired tangible assets $ 4.2 Identified intangible assets 5.6 Liabilities assumed (1.8 ) Goodwill 10.5 Total purchase price $ 18.5 The amount of goodwill expected to be deductible for tax purposes, excluding contingent consideration, is $7.1 million . The above purchase price accounting estimates are pending finalization of the intangible assets and contingent consideration valuation and a net working capital settlement that is subject to final adjustment as the Company evaluates information during the measurement period. The following table presents details of the intangible assets acquired during the six months ended June 30, 2018 (dollars in millions): Weighted Average Useful Life Estimated Useful Life Aggregate Acquisitions Customer relationships 5 years 5 years $ 4.6 Customer backlog 1 year 1 year 0.7 Non-compete agreements 5 years 5 years 0.2 Trade name 1 year 1 year 0.1 Total acquired intangible assets $ 5.6 The operating results of the 2017 and 2018 acquisitions have been included in the Company's interim unaudited condensed consolidated financial statements since the respective acquisition date. The aggregate amounts of revenue and net income of the Southport acquisition in the Unaudited Condensed Consolidated Statements of Operations from the acquisition date to June 30, 2018 are as follows (in thousands): Acquisition Date to June 30, 2018 Revenues $ 4,661 Net income $ 386 Pro-forma Results of Operations The following presents the unaudited pro-forma combined results of operations of the Company with the 2017 and 2018 acquisitions for the six months ended June 30, 2018 and 2017 , after giving effect to certain pro-forma adjustments and assuming the 2018 acquisition was acquired as of the beginning of 2017 and assuming the 2017 acquisitions were acquired as of the beginning of 2016 . These unaudited pro-forma results are presented in compliance with the adoption of ASU No. 2010-29, Business Combinations (Topic 805): Disclosure of Supplementary Pro Forma Information for Business Combinations , and are not necessarily indicative of the actual consolidated results of operations had the acquisitions actually occurred on January 1, 2017 or January 1, 2016 or of future results of operations of the consolidated entities (in thousands except per share data): Six Months Ended June 30, 2018 2017 Revenues $ 247,813 $ 250,920 Net income $ 13,544 $ 6,601 Basic net income per share $ 0.41 $ 0.20 Diluted net income per share $ 0.40 $ 0.19 Shares used in computing basic net income per share 33,210 33,731 Shares used in computing diluted net income per share 33,969 34,702 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill represents the excess purchase price over the fair value of net assets acquired, or net liabilities assumed, in a business combination. In accordance with ASC Topic 350, Intangibles – Goodwill and Other , the Company performs an annual impairment review in the fourth quarter and more frequently if events or changes in circumstances indicate that goodwill might be impaired. There was no indication that goodwill became impaired as of June 30, 2018 . Other intangible assets include customer relationships, non-compete arrangements, trade names, customer backlog, and internally developed software, which are being amortized over the assets’ estimated useful lives using the straight-line method. Estimated useful lives range from less than one year to ten years. Amortization of customer relationships, non-compete arrangements, trade names, customer backlog, and internally developed software is considered an operating expense and is included in “Amortization” in the accompanying Unaudited Condensed Consolidated Statements of Operations. The Company periodically reviews the estimated useful lives of its identifiable intangible assets, taking into consideration any events or circumstances that might result in a lack of recoverability or revised useful life. Goodwill The changes in the carrying amount of goodwill for the six months ended June 30, 2018 are as follows (in thousands): Balance at December 31, 2017 $ 305,238 Preliminary purchase price allocations for acquisition 10,467 Effect of foreign currency translation adjustments (300 ) Balance at June 30, 2018 $ 315,405 Intangible Assets with Definite Lives The following table presents a summary of the Company’s intangible assets that are subject to amortization (in thousands): June 30, 2018 December 31, 2017 Gross Carrying Amounts Accumulated Amortization Net Carrying Amounts Gross Carrying Amounts Accumulated Amortization Net Carrying Amounts Customer relationships $ 76,666 $ (34,693 ) $ 41,973 $ 75,407 $ (32,307 ) $ 43,100 Non-compete agreements 1,606 (705 ) 901 1,556 (707 ) 849 Customer backlog 680 (170 ) 510 1,650 (866 ) 784 Trade name 70 (18 ) 52 100 (53 ) 47 Internally developed software 11,377 (5,818 ) 5,559 11,325 (5,039 ) 6,286 Total $ 90,399 $ (41,404 ) $ 48,995 $ 90,038 $ (38,972 ) $ 51,066 The estimated useful lives of identifiable intangible assets are as follows: Customer relationships 5 - 10 years Non-compete agreements 2 - 5 years Customer backlog 1 year Trade name 1 year Internally developed software 2 - 7 years Estimated annual amortization expense for the next five years ended December 31 and thereafter is as follows (in thousands): 2018 remaining $ 7,484 2019 $ 13,529 2020 $ 10,261 2021 $ 8,128 2022 $ 6,784 Thereafter $ 2,809 |
Long-term Debt
Long-term Debt | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Line of Credit | Long-term Debt On June 9, 2017 , the Company entered into a Credit Agreement as amended (the “Credit Agreement”) with Wells Fargo Bank, National Association, as administrative agent and the other lenders parties thereto. The Credit Agreement replaced the Second Amended and Restated Credit Agreement dated as of July 31, 2013 between the Company, Silicon Valley Bank and the other lenders and signatories thereto (the “Prior Credit Agreement”). The Credit Agreement provides for revolving credit borrowings up to a maximum principal amount of $125.0 million , subject to a commitment increase of $75.0 million . All outstanding amounts owed under the Credit Agreement become due and payable no later than the final maturity date of June 9, 2022 . The Credit Agreement also allows for the issuance of letters of credit in the aggregate amount of up to $10.0 million at any one time; outstanding letters of credit reduce the credit available for revolving credit borrowings. As of June 30, 2018 , the Company had one outstanding letter of credit for $0.3 million . Substantially all of the Company’s assets are pledged to secure the credit facility. Borrowings under the Credit Agreement bear interest at the Company’s option of the prime rate ( 5.00% on June 30, 2018 ) plus a margin ranging from 0.00% to 0.50% or one month LIBOR ( 2.09% on June 30, 2018 ) plus a margin ranging from 1.00% to 1.75% . The Company incurs an annual commitment fee of 0.15% to 0.20% on the unused portion of the line of credit. The additional margin amount and annual commitment fee are dependent on the level of outstanding borrowings. As of June 30, 2018 , the Company had $68.7 million of unused borrowing capacity. The Company is required to comply with various financial covenants under the Credit Agreement. Specifically, the Company is required to maintain a ratio of earnings before interest, taxes, depreciation, and amortization (“EBITDA”) plus stock compensation to interest expense for the previous four consecutive fiscal quarters of not less than 3.00 to 1.00 and a ratio of indebtedness to EBITDA plus stock compensation (“Leverage Ratio”) of not more than 3.00 to 1.00 . Additionally, the Credit Agreement currently restricts the payment of dividends that would result in a pro-forma Leverage Ratio of more than 2.00 to 1.00 . At June 30, 2018 , the Company was in compliance with all covenants under the Credit Agreement. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company files income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. The Internal Revenue Service (the “IRS”) has completed examinations of the Company’s U.S. income tax returns or the statute of limitations has passed on returns for the years through 2010. The Company’s 2011 through 2015 U.S. income tax returns are currently under examination by the IRS. The IRS has sought to disallow research credits in total of $2.5 million on the Company’s 2011, 2012 and 2013 U.S. income tax returns. The Company has exhausted all administrative appeals and formal mediation and has filed suit to resolve this dispute. A preliminary court date has been set by the U.S. Tax Court for November 5, 2018. The Company believes the research credits taken are appropriate and intends to vigorously defend its position. An amount of adjustment, if any, and the timing of such adjustment are not reasonably possible to estimate at this time. The total amount of research credits taken or expected to be taken in the Company’s income tax returns for 2011 through June 30, 2018 is $9.6 million . Under the provisions of the ASC Subtopic 740-10-25, Income Taxes - Recognition , the Company had an unrecognized tax benefit of $3.3 million (inclusive of $0.3 million of interest) as of June 30, 2018 . The Company’s effective tax rate was 26.2% and 24.9% for the three and six months ended June 30, 2018 compared to 68.4% and 57.9% for the three and six months ended June 30, 2017 . The decrease in the effective rate is primarily due to the passage of the Tax Cuts and Jobs Act of 2017 (the “2017 Tax Act”), as well as the one-time tax impact of the determination in the second quarter of 2017 that the foreign earnings of the Company's Chinese subsidiary were no longer permanently reinvested. As of June 30, 2018 , the Company’s net non-current deferred tax liability was $8.0 million . Deferred tax liabilities relate to goodwill, intangibles, fixed asset depreciation, and prepaid expenses. Net non-current deferred tax liabilities are recorded in “Other non-current liabilities” on the Condensed Consolidated Balance Sheet as of June 30, 2018 (unaudited) and December 31, 2017. In general, it is the Company’s practice and intention to reinvest the earnings of the Company’s foreign subsidiaries in those operations. However, during the second quarter of 2017, the Company determined that as a result of changes in the business and macroeconomic environment, the foreign earnings of the Company’s Chinese subsidiary were no longer permanently reinvested and may repatriate available earnings from time to time. A provision for the expected current and deferred taxes on the repatriation of earnings was recorded in the amount of $2.5 million during the second quarter of 2017. Approximately $1.6 million of this provision was reversed during the fourth quarter of 2017 due to the adoption of the 2017 Tax Act. Management intends to continue to permanently reinvest all other remaining current and prior earnings in its other foreign subsidiaries. Excluding China, foreign unremitted earnings of entities not included in the United States tax return have been included in the consolidated financial statements without giving effect to the United States taxes that may be payable on distribution to the United States because it is not anticipated such earnings will be remitted to the United States. Under current applicable tax laws, if the Company elects to remit some or all of the funds it has designated as indefinitely reinvested outside the United States, the amount remitted would be subject to non-U.S. withholding taxes. As of June 30, 2018 , the aggregate unremitted earnings of the Company’s foreign subsidiaries for which a deferred income tax liability has not been recorded was approximately $8.1 million , and the unrecognized deferred tax liability on unremitted earnings was approximately $0.4 million . U.S. Tax Reform On December 22, 2017, the U.S. government enacted the 2017 Tax Act. The 2017 Tax Act significantly revised the ongoing U.S. corporate income tax by, among other things, lowering U.S. corporate income tax rates and implementing a territorial tax system. The SEC has issued rules that would allow for a measurement period of up to one year after the enactment date of the 2017 Tax Act to finalize the recording of the related tax impacts. Based on a continued analysis of the estimates and further guidance on the application of the law, it is anticipated that additional revisions may occur throughout the allowable measurement period. However, there have been no changes in estimates or additional guidance during the current quarter which would change the Company’s assessment of the tax impacts recorded as of the prior year end. The Company currently anticipates finalizing and recording any resulting adjustments within a year of the enactment date. |
Financial Instruments
Financial Instruments | 6 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments | Financial Instruments In the normal course of business, the Company uses derivative financial instruments to manage foreign currency exchange rate risk. Currency exposure is monitored and managed by the Company as part of its risk management program which seeks to reduce the potentially adverse effects that market volatility could have on operating results. The Company's derivative financial instruments consist of non-deliverable foreign currency forward contracts. Derivative financial instruments are neither held nor issued by the Company for trading purposes. Derivatives Not Designated as Hedging Instruments Both the gain or loss on the derivatives not designated as hedging instruments and the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in current earnings. Realized gains or losses and changes in the estimated fair value of foreign currency forward contracts that have not been designated as hedges were a net loss of $0.1 million for each of the three and six months ended June 30, 2018 . A net gain of $0.1 million was recognized during the three and six months ended June 30, 2017 . Gains and losses on these contracts are recorded in net other expense (income) and net interest expense in the Unaudited Condensed Consolidated Statements of Operations and are offset by losses and gains on the related hedged items. The fair value of the Company’s derivative instruments outstanding as of June 30, 2018 was immaterial. The notional amounts of the Company’s derivative instruments outstanding were as follows (in thousands): June 30, 2018 December 31, 2017 Derivatives not designated as hedges Foreign exchange contracts $ 3,065 $ 3,979 Total derivatives not designated as hedges $ 3,065 $ 3,979 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies From time to time the Company is involved in legal proceedings, claims and litigation related to employee claims, contractual disputes and taxes in the ordinary course of business. Although the Company cannot predict the outcome of such matters, currently the Company has no reason to believe the disposition of any current matter could reasonably be expected to have a material adverse impact on the Company’s financial position, results of operations or the ability to carry on any of its business activities. In June 2016, the Company entered into an agreement to purchase software licenses for internal use payable over a two year period. As a result, the Company has recorded $0.8 million in “Other current liabilities” in the Condensed Consolidated Balance Sheet as of June 30, 2018 (unaudited). The Company leases office space and certain equipment under various operating lease agreements. The Company has the option to extend the term of certain lease agreements. Future minimum commitments under these lease agreements as of June 30, 2018 were as follows (in thousands): Operating Leases 2018 remaining $ 3,434 2019 6,977 2020 6,639 2021 5,138 2022 3,288 Thereafter 3,609 Total minimum lease payments $ 29,085 Rent expense for the three and six months ended June 30, 2018 was $2.2 million and $4.2 million , respectively. Rent expense for the three and six months ended June 30, 2017 was $2.0 million and $3.9 million , respectively. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Acquisition of Stone Temple Consulting Corporation On July 16, 2018 , the Company acquired substantially all of the assets of Stone Temple Consulting Corporation, a Massachusetts corporation (“Stone Temple”), pursuant to the terms of an Asset Purchase Agreement. The Asset Purchase Agreement provided for approximately $9.9 million of cash to be paid at closing, subject to a net working capital adjustment, approximately 48,360 shares of Company common stock to be issued at closing and a maximum potential payout for additional revenue and earnings-based contingent consideration of $2.6 million , which may be realized by the seller twelve months after the closing date of the acquisition. The acquisition of Stone Temple expands the Company’s capabilities in search engine marketing and digital content services. Goodwill and intangible assets are expected to be recorded on the Consolidated Balance Sheet from the acquisition of Stone Temple. As of August 2, 2018, the initial accounting for the business combination has not been completed, including the measurement of certain intangible assets and goodwill. Acquisition costs related to Stone Temple for the three and six months ended June 30, 2018 were immaterial. |
Summary of Significant Accoun22
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Use of Estimates | The preparation of financial statements in conformity with U.S. GAAP 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 revenues and expenses during the reporting periods. Actual results could differ from those estimates, and such differences could be material to the financial statements. Except for the accounting policies related to revenue recognition that were updated as a result of the adoption of Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers issued by the Financial Accounting Standards Board (the “FASB”), there have been no changes to significant accounting policies described in the Annual Report on Form 10-K for the year ended December 31, 2017 , filed with the SEC on March 1, 2018 , that have had a material impact on the Company’s condensed consolidated financial statements and related notes. See Note 4, Revenue , for updated policies related to revenue recognition. |
Revenue from Contract with Customer | The following discussion relates to the Company’s revenue recognition policy, effective January 1, 2018, under ASC Topic 606. Services Revenues Services revenues are primarily comprised of professional services that include developing, implementing, automating and extending business processes, technology infrastructure, and software applications. The Company’s professional services span multiple industries, platforms and solutions; however, the Company has remained relatively diversified and does not believe that it has significant revenue concentration within any single industry, platform or solution. Professional services revenues are recognized over time as services are rendered. Most projects are performed on a time and materials basis, while a portion of revenues is derived from projects performed on a fixed fee or fixed fee percent complete basis. For time and material contracts, revenues are generally recognized and invoiced by multiplying the number of hours expended in the performance of the contract by the billing rates established in the contract. For fixed fee contracts, revenues are generally recognized and invoiced by multiplying the fixed rate per time period established in the contract by the number of time periods elapsed. For fixed fee percent complete contracts, revenues are generally recognized using an input method based on the ratio of hours expended to total estimated hours, and the client is invoiced according to the agreed-upon schedule detailing the amount and timing of payments in the contract. Clients are typically billed monthly for services provided during that month, but can be billed on a more or less frequent basis as determined by the contract. If the time is worked and approved at the end of a fiscal period and the invoice has not yet been sent to the client, the amount is recorded as revenue once the Company verifies all other revenue recognition criteria have been met, and the amount is classified as a receivable as the right to consideration is unconditional at that point. Amounts invoiced and collected in excess of revenues recognized are contract liabilities, which are classified as deferred revenues in the Unaudited Condensed Consolidated Balance Sheet. The term between invoicing and payment due date is not significant. Contracts for professional services provide for a general right, to the client or the Company, to cancel or terminate the contract within a given period of time (generally 10 to 30 days’ notice is required). The client is responsible for any time and expenses incurred up to the date of cancellation or termination of the contract. Certain contracts may include volume discounts or holdbacks, which are accounted for as variable consideration under ASC Topic 606, but are not typically significant. The Company estimates variable consideration based on historical experience and forecasted sales and includes the variable consideration in the transaction price. Other services revenues are comprised of hosting fees, partner referral fees, maintenance agreements, training and internally developed software-as-a-service (“SaaS”) sales. Revenues from hosting fees, maintenance agreements, training and internally developed SaaS sales are generally recognized over time using a time-based measure of progress as services are rendered. Partner referral fees are recorded at a point in time upon meeting specified requirements set by each partner to earn the respective fee. On many professional service projects, the Company is also reimbursed for out-of-pocket expenses including travel and other project-related expenses. These reimbursements are included as a component of the transaction price of the respective professional services contract and are invoiced as the expenses are incurred. The Company structures its professional services arrangements to recover the cost of reimbursable expenses without a markup. Software and Hardware Revenues Software and hardware revenues are comprised of third-party software and hardware resales, in which the Company is considered the agent, and sales of internally developed software, in which the Company is considered the principal. Third-party software and hardware revenues are recognized and invoiced when the Company fulfills its obligation to arrange the sale, which occurs when the purchase order with the vendor is executed and the customer has access to the software or the hardware has been shipped to the customer. Internally developed software revenues are recognized and invoiced when control is transferred to the customer, which occurs when the software has been made available to the customer and the license term has commenced. Revenues from third-party software and hardware sales are recorded on a net basis, while revenues from internally developed software sales are recorded on a gross basis. There are no significant cancellation or termination-type provisions for the Company’s software and hardware sales, and the term between invoicing and payment due date is not significant. Arrangements with Multiple Performance Obligations Arrangements with clients may contain multiple promises such as delivery of software, hardware, professional services or post-contract support services. These promises are accounted for as separate performance obligations if they are distinct. For arrangements with clients that contain multiple performance obligations, the transaction price is allocated to the separate performance obligations based on estimated relative standalone selling price, which is estimated by the expected cost plus a margin approach, taking into consideration market conditions and competitive factors. Contract Costs In accordance with the terms of the Company’s sales commission plan, commissions are not earned until the related revenue is recognized. Therefore, sales commissions are expensed as they are incurred. Certain sales incentives are accrued based on achievement of specified bookings goals. For these incentives, the Company applies the practical expedient that allows the Company to expense the incentives as incurred, since the amortization period would have been one year or less. |
Stock-Based Compensation | Stock-based compensation is accounted for in accordance with ASC Topic 718, Compensation – Stock Compensation . Under this guidance, the Company recognizes share-based compensation ratably using the straight-line attribution method over the requisite service period, which is generally three years. In addition, the Company has elected to estimate the amount of expected forfeitures when calculating share-based compensation, instead of accounting for forfeitures as they occur. The fair value of restricted stock awards is based on the value of the Company’s common stock on the date of the grant. |
Goodwill and Intangible Assets | Goodwill represents the excess purchase price over the fair value of net assets acquired, or net liabilities assumed, in a business combination. In accordance with ASC Topic 350, Intangibles – Goodwill and Other , the Company performs an annual impairment review in the fourth quarter and more frequently if events or changes in circumstances indicate that goodwill might be impaired. There was no indication that goodwill became impaired as of June 30, 2018 . Other intangible assets include customer relationships, non-compete arrangements, trade names, customer backlog, and internally developed software, which are being amortized over the assets’ estimated useful lives using the straight-line method. Estimated useful lives range from less than one year to ten years. Amortization of customer relationships, non-compete arrangements, trade names, customer backlog, and internally developed software is considered an operating expense and is included in “Amortization” in the accompanying Unaudited Condensed Consolidated Statements of Operations. The Company periodically reviews the estimated useful lives of its identifiable intangible assets, taking into consideration any events or circumstances that might result in a lack of recoverability or revised useful life. |
Financial Instruments | Both the gain or loss on the derivatives not designated as hedging instruments and the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in current earnings. Realized gains or losses and changes in the estimated fair value of foreign currency forward contracts that have not been designated as hedges were a net loss of $0.1 million for each of the three and six months ended June 30, 2018 . A net gain of $0.1 million was recognized during the three and six months ended June 30, 2017 . Gains and losses on these contracts are recorded in net other expense (income) and net interest expense in the Unaudited Condensed Consolidated Statements of Operations and are offset by losses and gains on the related hedged items. The fair value of the Company’s derivative instruments outstanding as of June 30, 2018 was immaterial. |
Commitments and Contingencies, Policy | From time to time the Company is involved in legal proceedings, claims and litigation related to employee claims, contractual disputes and taxes in the ordinary course of business. Although the Company cannot predict the outcome of such matters, currently the Company has no reason to believe the disposition of any current matter could reasonably be expected to have a material adverse impact on the Company’s financial position, results of operations or the ability to carry on any of its business activities. |
Lessee, Leases | The Company leases office space and certain equipment under various operating lease agreements. The Company has the option to extend the term of certain lease agreements. |
Recent Accounting Pronounceme23
Recent Accounting Pronouncements (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Impacts of ASC Topic 606 Adoption on Current Period Results | The impacts of ASC Topic 606 adoption on the Unaudited Condensed Consolidated Balance Sheet as of June 30, 2018 are as follows (in thousands): As Reported ASC Topic 606 Impact Without ASC Topic 606 Adoption Accounts receivable, net $ 107,286 $ (1,283 ) $ 106,003 Total assets 504,540 (1,283 ) 503,257 Other current liabilities 41,662 (1,283 ) 40,379 Total liabilities 130,788 (1,283 ) 129,505 The impacts of ASC Topic 606 adoption on the Unaudited Condensed Consolidated Statement of Operations for the three and six months ended June 30, 2018 are as follows (in thousands): Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 As Reported (Net Presentation) ASC Topic 606 Impact Without ASC Topic 606 Adoption (Gross Presentation) As Reported (Net Presentation) ASC Topic 606 Impact Without ASC Topic 606 Adoption (Gross Presentation) Revenues Services $ 120,912 $ — $ 120,912 $ 241,107 $ — $ 241,107 Software and hardware 886 5,865 6,751 1,632 12,385 14,017 Total revenues 121,798 5,865 127,663 242,739 12,385 255,124 Cost of revenues Cost of services 79,595 — 79,595 158,821 — 158,821 Software and hardware costs — 5,865 5,865 — 12,385 12,385 Total cost of revenues 79,595 5,865 85,460 158,821 12,385 171,206 Income from operations 8,491 — 8,491 15,281 — 15,281 Net income 5,849 — 5,849 10,778 — 10,778 |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Deferred Revenue | During the six months ended June 30, 2018 , $ 3.8 million was recognized in revenue that was included in the deferred revenue balance at the beginning of the period. The changes in deferred revenue for the six months ended June 30, 2018 are as follows (in thousands): Balance at December 31, 2017 $ 3,278 Impact of ASC Topic 606 adoption (offset to Accounts Receivable) 2,806 Opening balance at January 1, 2018 6,084 Deferral of revenue 6,418 Recognition of deferred revenue (7,127 ) Other (390 ) Balance at June 30, 2018 $ 4,985 |
Disaggregation of Revenue | The following table presents revenue disaggregated by revenue source and pattern of revenue recognition (in thousands): Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 Over Time Point In Time Total Revenues Over Time Point In Time Total Revenues Time and materials contracts $ 84,884 $ — $ 84,884 $ 167,033 $ — $ 167,033 Fixed fee percent complete contracts 7,898 — 7,898 17,010 — 17,010 Fixed fee contracts 20,377 — 20,377 41,599 — 41,599 Reimbursable expenses 3,215 — 3,215 6,245 — 6,245 Total professional services fees 116,374 — 116,374 231,887 — 231,887 Other services revenue* 3,754 784 4,538 7,618 1,602 9,220 Total services 120,128 784 120,912 239,505 1,602 241,107 Software and hardware — 886 886 — 1,632 1,632 Total revenues $ 120,128 $ 1,670 $ 121,798 $ 239,505 $ 3,234 $ 242,739 * Other services revenue primarily consists of hosting fees, maintenance, training, internally developed SaaS and partner referral fees. The following table presents revenue disaggregated by geographic area, as determined by the billing address of customers (in thousands): Three Months Ended Six Months Ended United States $ 119,211 $ 236,739 Canada 739 2,110 Other countries 1,848 3,890 Total revenues $ 121,798 $ 242,739 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Restricted Stock Activity | Restricted stock activity for the six months ended June 30, 2018 was as follows (shares in thousands): Shares Weighted-Average Restricted stock awards outstanding at December 31, 2017 1,436 $ 18.12 Awards granted 364 22.06 Awards vested (330 ) 19.27 Awards forfeited (70 ) 17.45 Restricted stock awards outstanding at June 30, 2018 1,400 $ 18.88 |
Net Income per Share (Tables)
Net Income per Share (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Net Income per Share | The following table presents the calculation of basic and diluted net income per share (in thousands, except per share information): Three Months Ended Six Months Ended 2018 2017 2018 2017 Net income $ 5,849 $ 2,409 $ 10,778 $ 5,119 Basic: Weighted-average shares of common stock outstanding 32,772 32,942 32,762 33,161 Shares used in computing basic net income per share 32,772 32,942 32,762 33,161 Effect of dilutive securities: Restricted stock subject to vesting 552 262 576 393 Shares issuable for acquisition consideration (1) 565 543 556 526 Shares used in computing diluted net income per share 33,889 33,747 33,894 34,080 Basic net income per share $ 0.18 $ 0.07 $ 0.33 $ 0.15 Diluted net income per share $ 0.17 $ 0.07 $ 0.32 $ 0.15 Anti-dilutive restricted stock not included in the calculation of diluted net income per share — 228 60 175 (1) For the three and six months ended June 30, 2018 , this represents the shares held in escrow pursuant to: (i) the Asset Purchase Agreement with BioPharm Systems, Inc. (“BioPharm”); (ii) the Asset Purchase Agreement with Zeon Solutions Incorporated and certain related entities (collectively, “Zeon”); (iii) the Asset Purchase Agreement with RAS & Associates, LLC (“RAS”); (iv) the Asset Purchase Agreement with Clarity Consulting, Inc. and Truth Labs, LLC (together, “Clarity”); and (v) the Asset Purchase Agreement with Southport Services Group, LLC (“Southport”), as part of the consideration. For the three and six months ended June 30, 2017 , this represents the shares held in escrow pursuant to: (i) the Asset Purchase Agreement with BioPharm; (ii) the Asset Purchase Agreement with Zeon; (iii) the Asset Purchase Agreement with The Pup Group, Inc. d/b/a Enlighten (“Enlighten”); (iv) the Asset Purchase Agreement with RAS; and (v) the Asset Purchase Agreement with Clarity, as part of the consideration. |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Balance Sheet Related Disclosures [Abstract] | |
Accounts Receivable | June 30, 2018 (unaudited) December 31, 2017 (in thousands) Accounts receivable: Accounts receivable $ 63,314 $ 82,603 Unbilled revenues 45,151 30,863 Allowance for doubtful accounts (1,179 ) (1,272 ) Total $ 107,286 $ 112,194 |
Property and Equipment | Property and equipment: Computer hardware (useful life of 3 years) $ 13,436 $ 13,110 Software (useful life of 1 to 7 years) 5,042 5,159 Furniture and fixtures (useful life of 5 years) 4,203 3,772 Leasehold improvements (useful life of 5 years) 3,120 2,836 Less: Accumulated depreciation (19,123 ) (17,732 ) Total $ 6,678 $ 7,145 |
Other Current Liabilities | Other current liabilities: Estimated fair value of contingent consideration liability (1) $ 13,450 $ 8,148 Accrued variable compensation 12,381 16,842 Deferred revenue 4,985 3,278 Other current liabilities 4,652 3,879 Payroll related costs 3,352 2,971 Accrued medical claims expense 1,925 2,133 Professional fees 582 357 Accrued subcontractor fees 335 469 Total $ 41,662 $ 38,077 |
Other Non-Current Liabilities | Other non-current liabilities: Deferred income taxes $ 7,990 $ 7,360 Other non-current liabilities 6,021 4,667 Deferred compensation liability 4,620 4,409 Total $ 18,631 $ 16,436 (1) As of June 30, 2018 , represents the fair value estimate of revenue and earnings-based contingent consideration that may be realized by Southport and Clarity twelve months after the acquisition. As of December 31, 2017 , represents the fair value estimate of additional revenue and earnings-based contingent consideration that may be realized by Clarity twelve months after the acquisition. |
Business Combinations (Tables)
Business Combinations (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Business Combinations [Abstract] | |
Allocation of Total Purchase Price Consideration | The Company has estimated the allocation of the total purchase price consideration between tangible assets, identified intangible assets, liabilities, and goodwill as follows (in millions): Acquired tangible assets $ 4.2 Identified intangible assets 5.6 Liabilities assumed (1.8 ) Goodwill 10.5 Total purchase price $ 18.5 |
Schedule of Finite-Lived Intangible Assets Acquired | The following table presents details of the intangible assets acquired during the six months ended June 30, 2018 (dollars in millions): Weighted Average Useful Life Estimated Useful Life Aggregate Acquisitions Customer relationships 5 years 5 years $ 4.6 Customer backlog 1 year 1 year 0.7 Non-compete agreements 5 years 5 years 0.2 Trade name 1 year 1 year 0.1 Total acquired intangible assets $ 5.6 |
Pro-Forma Results of Operations | The aggregate amounts of revenue and net income of the Southport acquisition in the Unaudited Condensed Consolidated Statements of Operations from the acquisition date to June 30, 2018 are as follows (in thousands): Acquisition Date to June 30, 2018 Revenues $ 4,661 Net income $ 386 These unaudited pro-forma results are presented in compliance with the adoption of ASU No. 2010-29, Business Combinations (Topic 805): Disclosure of Supplementary Pro Forma Information for Business Combinations , and are not necessarily indicative of the actual consolidated results of operations had the acquisitions actually occurred on January 1, 2017 or January 1, 2016 or of future results of operations of the consolidated entities (in thousands except per share data): Six Months Ended June 30, 2018 2017 Revenues $ 247,813 $ 250,920 Net income $ 13,544 $ 6,601 Basic net income per share $ 0.41 $ 0.20 Diluted net income per share $ 0.40 $ 0.19 Shares used in computing basic net income per share 33,210 33,731 Shares used in computing diluted net income per share 33,969 34,702 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | The changes in the carrying amount of goodwill for the six months ended June 30, 2018 are as follows (in thousands): Balance at December 31, 2017 $ 305,238 Preliminary purchase price allocations for acquisition 10,467 Effect of foreign currency translation adjustments (300 ) Balance at June 30, 2018 $ 315,405 |
Intangible Assets | The following table presents a summary of the Company’s intangible assets that are subject to amortization (in thousands): June 30, 2018 December 31, 2017 Gross Carrying Amounts Accumulated Amortization Net Carrying Amounts Gross Carrying Amounts Accumulated Amortization Net Carrying Amounts Customer relationships $ 76,666 $ (34,693 ) $ 41,973 $ 75,407 $ (32,307 ) $ 43,100 Non-compete agreements 1,606 (705 ) 901 1,556 (707 ) 849 Customer backlog 680 (170 ) 510 1,650 (866 ) 784 Trade name 70 (18 ) 52 100 (53 ) 47 Internally developed software 11,377 (5,818 ) 5,559 11,325 (5,039 ) 6,286 Total $ 90,399 $ (41,404 ) $ 48,995 $ 90,038 $ (38,972 ) $ 51,066 |
Estimated Useful Lives of Intangible Assets | The estimated useful lives of identifiable intangible assets are as follows: Customer relationships 5 - 10 years Non-compete agreements 2 - 5 years Customer backlog 1 year Trade name 1 year Internally developed software 2 - 7 years |
Estimated Annual Amortization Expense | Estimated annual amortization expense for the next five years ended December 31 and thereafter is as follows (in thousands): 2018 remaining $ 7,484 2019 $ 13,529 2020 $ 10,261 2021 $ 8,128 2022 $ 6,784 Thereafter $ 2,809 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amounts of Outstanding Derivative Positions | The notional amounts of the Company’s derivative instruments outstanding were as follows (in thousands): June 30, 2018 December 31, 2017 Derivatives not designated as hedges Foreign exchange contracts $ 3,065 $ 3,979 Total derivatives not designated as hedges $ 3,065 $ 3,979 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Commitments Under Operating Lease Agreements | Future minimum commitments under these lease agreements as of June 30, 2018 were as follows (in thousands): Operating Leases 2018 remaining $ 3,434 2019 6,977 2020 6,639 2021 5,138 2022 3,288 Thereafter 3,609 Total minimum lease payments $ 29,085 |
Recent Accounting Pronounceme32
Recent Accounting Pronouncements, Impact on Unaudited Condensed Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Assets [Abstract] | ||
Accounts receivable, net | $ 107,286 | $ 112,194 |
Total assets | 504,540 | 499,060 |
Liabilities [Abstract] | ||
Other current liabilities | 41,662 | 38,077 |
Total liabilities | 130,788 | $ 132,709 |
ASC Topic 606 Impact | ASU 2014-09 | ||
Assets [Abstract] | ||
Accounts receivable, net | (1,283) | |
Total assets | (1,283) | |
Liabilities [Abstract] | ||
Other current liabilities | (1,283) | |
Total liabilities | (1,283) | |
Without ASC Topic 606 Adoption | ASU 2014-09 | ||
Assets [Abstract] | ||
Accounts receivable, net | 106,003 | |
Total assets | 503,257 | |
Liabilities [Abstract] | ||
Other current liabilities | 40,379 | |
Total liabilities | $ 129,505 |
Recent Accounting Pronounceme33
Recent Accounting Pronouncements, Impact on Unaudited Condensed Consolidated Statement of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenues | ||||
Revenues | $ 121,798 | $ 117,026 | $ 242,739 | $ 228,046 |
Cost of revenues | ||||
Cost of Goods and Services Sold | 79,595 | 77,635 | 158,821 | 152,580 |
Income from operations | 8,491 | 8,225 | 15,281 | 13,084 |
Net income | 5,849 | 2,409 | 10,778 | 5,119 |
Services | ||||
Revenues | ||||
Revenues | 120,912 | 107,756 | 241,107 | 211,777 |
Cost of revenues | ||||
Cost of Goods and Services Sold | 79,595 | 69,908 | 158,821 | 138,888 |
Software and hardware | ||||
Revenues | ||||
Revenues | 886 | 9,270 | 1,632 | 16,269 |
Cost of revenues | ||||
Cost of Goods and Services Sold | 0 | $ 7,727 | 0 | $ 13,692 |
Impact of ASC Topic 606 Adoption | ASU 2014-09 | ||||
Revenues | ||||
Revenues | 5,865 | 12,385 | ||
Cost of revenues | ||||
Cost of Goods and Services Sold | 5,865 | 12,385 | ||
Income from operations | 0 | 0 | ||
Net income | 0 | 0 | ||
Impact of ASC Topic 606 Adoption | ASU 2014-09 | Services | ||||
Revenues | ||||
Revenues | 0 | 0 | ||
Cost of revenues | ||||
Cost of Goods and Services Sold | 0 | 0 | ||
Impact of ASC Topic 606 Adoption | ASU 2014-09 | Software and hardware | ||||
Revenues | ||||
Revenues | 5,865 | 12,385 | ||
Cost of revenues | ||||
Cost of Goods and Services Sold | 5,865 | 12,385 | ||
Without ASC Topic 606 Adoption | ASU 2014-09 | ||||
Revenues | ||||
Revenues | 127,663 | 255,124 | ||
Cost of revenues | ||||
Cost of Goods and Services Sold | 85,460 | 171,206 | ||
Income from operations | 8,491 | 15,281 | ||
Net income | 5,849 | 10,778 | ||
Without ASC Topic 606 Adoption | ASU 2014-09 | Services | ||||
Revenues | ||||
Revenues | 120,912 | 241,107 | ||
Cost of revenues | ||||
Cost of Goods and Services Sold | 79,595 | 158,821 | ||
Without ASC Topic 606 Adoption | ASU 2014-09 | Software and hardware | ||||
Revenues | ||||
Revenues | 6,751 | 14,017 | ||
Cost of revenues | ||||
Cost of Goods and Services Sold | $ 5,865 | $ 12,385 |
Revenue, Services Revenue (Deta
Revenue, Services Revenue (Details) - Services | 6 Months Ended |
Jun. 30, 2018 | |
Minimum | |
Revenue [Abstract] | |
Notice period to cancel or terminate contract | 10 days |
Maximum | |
Revenue [Abstract] | |
Notice period to cancel or terminate contract | 30 days |
Revenue, Deferred Revenue (Deta
Revenue, Deferred Revenue (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Change in Contract with Customer, Asset and Liability [Abstract] | |
Balance at beginning of period | $ 3,278 |
Deferral of revenue | 6,418 |
Recognition of deferred revenue | (7,127) |
Other | (390) |
Balance at end of period | 4,985 |
ASU 2014-09 | |
Change in Contract with Customer, Asset and Liability [Abstract] | |
Balance at beginning of period | 6,084 |
Impact of ASC Topic 606 Adoption | ASU 2014-09 | |
Change in Contract with Customer, Asset and Liability [Abstract] | |
Balance at beginning of period | 2,806 |
Recognition of deferred revenue | $ 3,800 |
Revenue, Disaggregation of Reve
Revenue, Disaggregation of Revenue by Revenue Source and Pattern of Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenue [Abstract] | ||||
Revenues | $ 121,798 | $ 117,026 | $ 242,739 | $ 228,046 |
Transferred over Time | ||||
Revenue [Abstract] | ||||
Revenues | 120,128 | 239,505 | ||
Transferred at Point in Time | ||||
Revenue [Abstract] | ||||
Revenues | 1,670 | 3,234 | ||
Services | ||||
Revenue [Abstract] | ||||
Revenues | 120,912 | 107,756 | 241,107 | 211,777 |
Services | Transferred over Time | ||||
Revenue [Abstract] | ||||
Revenues | 120,128 | 239,505 | ||
Services | Transferred at Point in Time | ||||
Revenue [Abstract] | ||||
Revenues | 784 | 1,602 | ||
Professional Services | ||||
Revenue [Abstract] | ||||
Revenues | 116,374 | 231,887 | ||
Professional Services | Transferred over Time | ||||
Revenue [Abstract] | ||||
Revenues | 116,374 | 231,887 | ||
Professional Services | Transferred at Point in Time | ||||
Revenue [Abstract] | ||||
Revenues | 0 | 0 | ||
Professional Services | Time and materials contracts | ||||
Revenue [Abstract] | ||||
Revenues | 84,884 | 167,033 | ||
Professional Services | Time and materials contracts | Transferred over Time | ||||
Revenue [Abstract] | ||||
Revenues | 84,884 | 167,033 | ||
Professional Services | Time and materials contracts | Transferred at Point in Time | ||||
Revenue [Abstract] | ||||
Revenues | 0 | 0 | ||
Professional Services | Fixed fee percent complete contracts | ||||
Revenue [Abstract] | ||||
Revenues | 7,898 | 17,010 | ||
Professional Services | Fixed fee percent complete contracts | Transferred over Time | ||||
Revenue [Abstract] | ||||
Revenues | 7,898 | 17,010 | ||
Professional Services | Fixed fee percent complete contracts | Transferred at Point in Time | ||||
Revenue [Abstract] | ||||
Revenues | 0 | 0 | ||
Professional Services | Fixed fee contracts | ||||
Revenue [Abstract] | ||||
Revenues | 20,377 | 41,599 | ||
Professional Services | Fixed fee contracts | Transferred over Time | ||||
Revenue [Abstract] | ||||
Revenues | 20,377 | 41,599 | ||
Professional Services | Fixed fee contracts | Transferred at Point in Time | ||||
Revenue [Abstract] | ||||
Revenues | 0 | 0 | ||
Professional Services | Reimbursable expenses | ||||
Revenue [Abstract] | ||||
Revenues | 3,215 | 6,245 | ||
Professional Services | Reimbursable expenses | Transferred over Time | ||||
Revenue [Abstract] | ||||
Revenues | 3,215 | 6,245 | ||
Professional Services | Reimbursable expenses | Transferred at Point in Time | ||||
Revenue [Abstract] | ||||
Revenues | 0 | 0 | ||
Other Services | ||||
Revenue [Abstract] | ||||
Revenues | 4,538 | 9,220 | ||
Other Services | Transferred over Time | ||||
Revenue [Abstract] | ||||
Revenues | 3,754 | 7,618 | ||
Other Services | Transferred at Point in Time | ||||
Revenue [Abstract] | ||||
Revenues | 784 | 1,602 | ||
Software and hardware | ||||
Revenue [Abstract] | ||||
Revenues | 886 | $ 9,270 | 1,632 | $ 16,269 |
Software and hardware | Transferred over Time | ||||
Revenue [Abstract] | ||||
Revenues | 0 | 0 | ||
Software and hardware | Transferred at Point in Time | ||||
Revenue [Abstract] | ||||
Revenues | $ 886 | $ 1,632 |
Revenue, Disaggregation of Re37
Revenue, Disaggregation of Revenue by Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenue [Abstract] | ||||
Revenues | $ 121,798 | $ 117,026 | $ 242,739 | $ 228,046 |
United States | ||||
Revenue [Abstract] | ||||
Revenues | 119,211 | 236,739 | ||
Canada | ||||
Revenue [Abstract] | ||||
Revenues | 739 | 2,110 | ||
Other countries | ||||
Revenue [Abstract] | ||||
Revenues | $ 1,848 | $ 3,890 |
Stock-Based Compensation, Stock
Stock-Based Compensation, Stock Award Plans (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Stock-Based Compensation [Abstract] | ||||
Requisite service period | 3 years | |||
Stock-based compensation expense | $ 4.1 | $ 3.6 | $ 8 | $ 7.3 |
Stock-based compensation expense for retirement savings plan contributions | 0.7 | 0.6 | 1.4 | 1.3 |
Associated current and future income tax benefits recognized | 0.8 | $ 1.1 | 1.6 | $ 2.3 |
Total unrecognized compensation cost related to non-vested share-based awards | $ 20.3 | $ 20.3 | ||
Unrecognized compensation cost, weighted-average period for recognition | 2 years | |||
2012 Long Term Incentive Plan | ||||
Stock-Based Compensation [Abstract] | ||||
Maximum number of shares authorized under plan (in shares) | 7 | 7 | ||
Number of shares available for issuance under the Incentive Plan | 2.6 | 2.6 |
Stock-Based Compensation, Restr
Stock-Based Compensation, Restricted Stock Activity (Details) - 2012 Long Term Incentive Plan - Restricted Stock shares in Thousands | 6 Months Ended |
Jun. 30, 2018$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Restricted stock awards outstanding at beginning of period | shares | 1,436 |
Awards granted (in shares) | shares | 364 |
Awards vested (in shares) | shares | (330) |
Awards forfeited (in shares) | shares | (70) |
Restricted stock awards outstanding at end of period | shares | 1,400 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Awards outstanding at beginning of period (in dollars per share) | $ / shares | $ 18.12 |
Awards granted (in dollars per share) | $ / shares | 22.06 |
Awards vested (in dollars per share) | $ / shares | 19.27 |
Awards forfeited (in dollars per share) | $ / shares | 17.45 |
Awards outstanding at end of period (in dollars per share) | $ / shares | $ 18.88 |
Net Income per Share (Details)
Net Income per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |||||
Net income | $ 5,849 | $ 2,409 | $ 10,778 | $ 5,119 | |
Weighted Average Number of Shares Outstanding, Basic [Abstract] | |||||
Weighted-average shares of common stock outstanding | 32,772 | 32,942 | 32,762 | 33,161 | |
Shares used in computing basic net income per share | 32,772 | 32,942 | 32,762 | 33,161 | |
Incremental Weighted Average Shares Attributable to Dilutive Effect [Abstract] | |||||
Restricted stock subject to vesting | 552 | 262 | 576 | 393 | |
Shares issuable for acquisition consideration (in shares) | 565 | 543 | 556 | 526 | |
Shares used in computing diluted net income per share | 33,889 | 33,747 | 33,894 | 34,080 | |
Basic net income per share (in dollars per share) | $ 0.18 | $ 0.07 | $ 0.33 | $ 0.15 | |
Diluted net income per share (in dollars per share) | $ 0.17 | $ 0.07 | $ 0.32 | $ 0.15 | |
Anti-dilutive options and restricted stock not included in the calculation of diluted net income per share (in shares) | 0 | 228 | 60 | 175 | |
Stock Repurchase Program [Abstract] | |||||
Authorized amount to be repurchased | $ 160,000 | $ 160,000 | $ 135,000 | ||
Increase in authorized amount to be repurchased | 25,000 | ||||
Cumulative amount repurchased | $ 145,200 | $ 145,200 | |||
Cumulative number of shares repurchased | 12,800 | 12,800 |
Balance Sheet Components, Accou
Balance Sheet Components, Accounts Receivable (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Balance Sheet Related Disclosures [Abstract] | ||
Accounts receivable | $ 63,314 | $ 82,603 |
Unbilled revenues | 45,151 | 30,863 |
Allowance for doubtful accounts | (1,179) | (1,272) |
Total | $ 107,286 | $ 112,194 |
Balance Sheet Components, Prope
Balance Sheet Components, Property and Equipment) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Property and Equipment [Abstract] | ||
Less: Accumulated depreciation | $ (19,123) | $ (17,732) |
Property and equipment, net | 6,678 | 7,145 |
Computer Hardware | ||
Property and Equipment [Abstract] | ||
Property, Plant and Equipment, Gross | $ 13,436 | 13,110 |
Useful life | 3 years | |
Software and Software Development Costs | ||
Property and Equipment [Abstract] | ||
Property, Plant and Equipment, Gross | $ 5,042 | 5,159 |
Furniture And Fixtures | ||
Property and Equipment [Abstract] | ||
Property, Plant and Equipment, Gross | $ 4,203 | 3,772 |
Useful life | 5 years | |
Leasehold Improvements | ||
Property and Equipment [Abstract] | ||
Property, Plant and Equipment, Gross | $ 3,120 | $ 2,836 |
Useful life | 5 years | |
Minimum | Software and Software Development Costs | ||
Property and Equipment [Abstract] | ||
Useful life | 1 year | |
Maximum | Software and Software Development Costs | ||
Property and Equipment [Abstract] | ||
Useful life | 7 years |
Balance Sheet Components, Other
Balance Sheet Components, Other Current Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Balance Sheet Related Disclosures [Abstract] | ||
Estimated fair value of contingent consideration liability | $ 13,450 | $ 8,148 |
Accrued variable compensation | 12,381 | 16,842 |
Deferred revenue | 4,985 | 3,278 |
Other current liabilities | 4,652 | 3,879 |
Payroll related costs | 3,352 | 2,971 |
Accrued medical claims expense | 1,925 | 2,133 |
Professional fees | 582 | 357 |
Accrued subcontractor fees | 335 | 469 |
Total | $ 41,662 | $ 38,077 |
Balance Sheet Components, Oth44
Balance Sheet Components, Other Non-Current Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Balance Sheet Related Disclosures [Abstract] | ||
Deferred income taxes | $ 7,990 | $ 7,360 |
Other non-current liabilities | 6,021 | 4,667 |
Deferred compensation liability | 4,620 | 4,409 |
Total | $ 18,631 | $ 16,436 |
Business Combinations, RAS (Det
Business Combinations, RAS (Details) - RAS - USD ($) $ in Millions | Jan. 03, 2017 | Jun. 30, 2018 |
Business Combinations [Abstract] | ||
Date of acquisition | Jan. 3, 2017 | |
Total purchase price | $ 10.4 | |
Cash paid for acquisition | 7.1 | |
Common stock issued | 2.1 | |
Net working capital settlement | (0.6) | |
Initial fair value estimate of additional earnings-based contingent consideration | $ 1.8 | |
Tax deductible amount of Goodwill | $ 3.7 |
Business Combinations, Clarity
Business Combinations, Clarity (Details) - Clarity Consultants - USD ($) $ in Millions | Jun. 22, 2017 | Jun. 30, 2018 |
Business Combinations [Abstract] | ||
Date of acquisition | Jun. 22, 2017 | |
Total purchase price | $ 41.7 | |
Cash paid for acquisition | 30.7 | |
Common stock issued | 7.3 | |
Net working capital settlement | (0.4) | |
Initial fair value estimate of additional earnings-based contingent consideration | $ 4.1 | |
Contingent consideration, maximum cash payout | $ 9.2 | |
Tax deductible amount of Goodwill | $ 22.1 |
Business Combinations, Southpor
Business Combinations, Southport (Details) - USD ($) $ in Thousands | Apr. 02, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Business Combinations [Abstract] | |||
Period to realize additional earnings-based contingent consideration | 12 months | ||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |||
Goodwill | $ 315,405 | $ 305,238 | |
Southport Services Group, LLC | |||
Business Combinations [Abstract] | |||
Date of acquisition | Apr. 2, 2018 | ||
Cash paid for acquisition | $ 11,300 | ||
Common stock issued | 2,700 | ||
Net working capital settlement | 300 | ||
Initial fair value estimate of additional earnings-based contingent consideration | 4,200 | ||
Contingent consideration, maximum cash payout | 6,600 | ||
Transaction costs | 800 | ||
Common stock value attributed to future compensation | 300 | ||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |||
Acquired tangible assets | 4,200 | ||
Identified intangible assets | 5,600 | ||
Liabilities assumed | (1,800) | ||
Goodwill | 10,500 | ||
Total purchase price | $ 18,500 | ||
Tax deductible amount of Goodwill | $ 7,100 |
Business Combinations, Intangib
Business Combinations, Intangible Assets Acquired (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Finite-Lived Intangible Assets, Gross [Abstract] | |
Aggregate Acquisitions | $ 5.6 |
Customer relationships | |
Finite-Lived Intangible Assets, Gross [Abstract] | |
Weighted Average Useful Life | 5 years |
Estimated Useful Life | 5 years |
Aggregate Acquisitions | $ 4.6 |
Customer backlog | |
Finite-Lived Intangible Assets, Gross [Abstract] | |
Weighted Average Useful Life | 1 year |
Estimated Useful Life | 1 year |
Aggregate Acquisitions | $ 0.7 |
Non-compete agreements | |
Finite-Lived Intangible Assets, Gross [Abstract] | |
Weighted Average Useful Life | 5 years |
Estimated Useful Life | 5 years |
Aggregate Acquisitions | $ 0.2 |
Trade name | |
Finite-Lived Intangible Assets, Gross [Abstract] | |
Weighted Average Useful Life | 1 year |
Estimated Useful Life | 1 year |
Aggregate Acquisitions | $ 0.1 |
Business Combinations Acquisiti
Business Combinations Acquisition Results (Details) | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Business Combinations [Abstract] | |
Revenues | $ 4,661 |
Net income | $ 386 |
Business Combinations, Pro Form
Business Combinations, Pro Forma Results of Operations (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Business Acquisition, Pro Forma Information [Abstract] | ||
Revenues | $ 247,813 | $ 250,920 |
Net income | $ 13,544 | $ 6,601 |
Basic net income per share | $ 0.41 | $ 0.20 |
Diluted net income per share | $ 0.40 | $ 0.19 |
Shares used in computing basic net income per share | 33,210 | 33,731 |
Shares used in computing diluted net income per share | 33,969 | 34,702 |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Goodwill) (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Balance at beginning of period | $ 305,238 |
Preliminary purchase price allocations for acquisition | 10,467 |
Effect of foreign currency translation adjustments | (300) |
Balance at end of period | $ 315,405 |
Goodwill and Intangible Asset52
Goodwill and Intangible Assets, Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Amounts | $ 90,399 | $ 90,038 |
Accumulated Amortization | (41,404) | (38,972) |
Net Carrying Amounts | 48,995 | 51,066 |
Customer relationships | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Amounts | 76,666 | 75,407 |
Accumulated Amortization | (34,693) | (32,307) |
Net Carrying Amounts | 41,973 | 43,100 |
Non-compete agreements | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Amounts | 1,606 | 1,556 |
Accumulated Amortization | (705) | (707) |
Net Carrying Amounts | 901 | 849 |
Customer backlog | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Amounts | 680 | 1,650 |
Accumulated Amortization | (170) | (866) |
Net Carrying Amounts | 510 | 784 |
Trade name | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Amounts | 70 | 100 |
Accumulated Amortization | (18) | (53) |
Net Carrying Amounts | 52 | 47 |
Internally developed software | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Amounts | 11,377 | 11,325 |
Accumulated Amortization | (5,818) | (5,039) |
Net Carrying Amounts | $ 5,559 | $ 6,286 |
Goodwill and Intangible Asset53
Goodwill and Intangible Assets, Estimated Useful Lives (Details) | 6 Months Ended |
Jun. 30, 2018 | |
Customer relationships | Minimum | |
Intangible Assets [Abstract] | |
Estimated useful lives | 5 years |
Customer relationships | Maximum | |
Intangible Assets [Abstract] | |
Estimated useful lives | 10 years |
Non-compete agreements | Minimum | |
Intangible Assets [Abstract] | |
Estimated useful lives | 2 years |
Non-compete agreements | Maximum | |
Intangible Assets [Abstract] | |
Estimated useful lives | 5 years |
Customer backlog | |
Intangible Assets [Abstract] | |
Estimated useful lives | 1 year |
Trade name | |
Intangible Assets [Abstract] | |
Estimated useful lives | 1 year |
Internally developed software | Minimum | |
Intangible Assets [Abstract] | |
Estimated useful lives | 2 years |
Internally developed software | Maximum | |
Intangible Assets [Abstract] | |
Estimated useful lives | 7 years |
Goodwill and Intangible Asset54
Goodwill and Intangible Assets, Estimated Amortization Expense (Details) $ in Thousands | Jun. 30, 2018USD ($) |
Estimated Amortization Expense [Abstract] | |
2018 remaining | $ 7,484 |
2,019 | 13,529 |
2,020 | 10,261 |
2,021 | 8,128 |
2,022 | 6,784 |
Thereafter | $ 2,809 |
Long-term Debt (Details)
Long-term Debt (Details) | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Line of Credit [Abstract] | |
Leverage Ratio | 3 |
Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | Minimum | |
Line of Credit [Abstract] | |
Margin interest rate percentage | 1.00% |
Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | Maximum | |
Line of Credit [Abstract] | |
Margin interest rate percentage | 1.75% |
Revolving Credit Facility | Credit Agreement | |
Line of Credit [Abstract] | |
Maximum borrowing capacity | $ 125,000,000 |
Additional commitment increase | 75,000,000 |
Allowable amount of letters of credit for issuance | 10,000,000 |
Letters of Credit Outstanding, Amount | $ 300,000 |
Maturity date | Jun. 9, 2022 |
Available borrowing capacity | $ 68,700,000 |
EBITDA Ratio | 3 |
Leverage Ratio needed for payment of dividends | 2 |
Revolving Credit Facility | Credit Agreement | Minimum | |
Line of Credit [Abstract] | |
Annual commitment fee percentage on unused capacity | 0.15% |
Revolving Credit Facility | Credit Agreement | Maximum | |
Line of Credit [Abstract] | |
Annual commitment fee percentage on unused capacity | 0.20% |
Revolving Credit Facility | Credit Agreement | Prime Rate | |
Line of Credit [Abstract] | |
Interest rate at end of period | 5.00% |
Revolving Credit Facility | Credit Agreement | Prime Rate | Minimum | |
Line of Credit [Abstract] | |
Margin interest rate percentage | 0.00% |
Revolving Credit Facility | Credit Agreement | Prime Rate | Maximum | |
Line of Credit [Abstract] | |
Margin interest rate percentage | 0.50% |
Revolving Credit Facility | Credit Agreement | London Interbank Offered Rate (LIBOR) | |
Line of Credit [Abstract] | |
Term of variable rate | 1 month |
Interest rate at end of period | 2.09% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Taxes [Abstract] | |||||
Unrecognized tax benefits | $ 3,300 | $ 3,300 | |||
Unrecognized Tax Benefits, Interest on Income Taxes Accrued | $ 300 | $ 300 | |||
Effective tax rate | 26.20% | 68.40% | 24.90% | 57.90% | |
Deferred income taxes | $ 7,990 | $ 7,360 | $ 7,990 | ||
Taxes on foreign earnings repatriated | $ 2,500 | ||||
Reversal of taxes on foreign earnings repatriated due to 2017 Tax Act | $ (1,600) | ||||
Unremitted earnings of foreign subsidiaries | 8,100 | 8,100 | |||
Unrecognized deferred tax liability on unremitted earnings of foreign subsidiaries | 400 | 400 | |||
Internal Revenue Service (IRS) | Tax Years 2011, 2012 and 2013 | |||||
Income Taxes [Abstract] | |||||
Disallowed research tax credits being litigated | $ 2,500 | 2,500 | |||
Internal Revenue Service (IRS) | Tax Years 2011 to Date | |||||
Income Taxes [Abstract] | |||||
Income Tax Credits and Adjustments | $ 9,600 |
Financial Instruments, Gains (L
Financial Instruments, Gains (Losses) on Derivatives, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Foreign Exchange Forward | Net Other Income (Expense) and Net Interest Expense | Not Designated as Hedging Instrument | ||||
Derivative, Gain (Loss) on Derivative, Net [Abstract] | ||||
Derivative, Gain (Loss) on Derivative, Net | $ (0.1) | $ 0.1 | $ (0.1) | $ 0.1 |
Financial Instruments, Notional
Financial Instruments, Notional Amounts (Details) - Not Designated as Hedging Instrument - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Notional Disclosures [Abstract] | ||
Derivative, Notional Amount | $ 3,065 | $ 3,979 |
Foreign Exchange Forward | ||
Notional Disclosures [Abstract] | ||
Derivative, Notional Amount | $ 3,065 | $ 3,979 |
Commitments and Contingencies59
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Commitments [Abstract] | ||||||
Other current liabilities | $ 41,662 | $ 41,662 | $ 38,077 | |||
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||||||
2018 remaining | 3,434 | 3,434 | ||||
2,019 | 6,977 | 6,977 | ||||
2,020 | 6,639 | 6,639 | ||||
2,021 | 5,138 | 5,138 | ||||
2,022 | 3,288 | 3,288 | ||||
Thereafter | 3,609 | 3,609 | ||||
Total minimum lease payments | 29,085 | 29,085 | ||||
Rent expense | 2,200 | $ 2,000 | 4,200 | $ 3,900 | ||
Software Licenses | ||||||
Commitments [Abstract] | ||||||
Period to purchase software licenses | 2 years | |||||
Other current liabilities | $ 800 | $ 800 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event - Stone Temple Consulting Corporation $ in Millions | Jul. 16, 2018USD ($)shares |
Business Combinations [Abstract] | |
Date of acquisition | Jul. 16, 2018 |
Cash paid for acquisition | $ 9.9 |
Common stock issued | shares | 48,360 |
Contingent consideration, maximum cash payout | $ 2.6 |