Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Sep. 30, 2014 | Nov. 11, 2014 | Mar. 31, 2014 |
Document And Entity Information [Abstract] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 30-Sep-14 | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Trading Symbol | 'MODN | ' | ' |
Entity Registrant Name | 'MODEL N, INC. | ' | ' |
Entity Central Index Key | '0001118417 | ' | ' |
Current Fiscal Year End Date | '--09-30 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 25,111,617 | ' |
Entity Public Float | ' | ' | $163 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
Current Assets: | ' | ' |
Cash and cash equivalents | $101,006 | $103,350 |
Accounts receivable, (net of allowance for doubtful accounts of $0 and $46 at September 30, 2014 and 2013, respectively) | 15,203 | 16,140 |
Deferred cost of implementation services, current portion | 251 | 491 |
Prepaid expenses | 2,092 | 3,225 |
Other current assets | 322 | 342 |
Total current assets | 118,874 | 123,548 |
Property and equipment, net | 6,889 | 7,871 |
Goodwill | 1,509 | 1,509 |
Intangible assets, net | 587 | 918 |
Other assets | 1,272 | 626 |
Total assets | 129,131 | 134,472 |
Current Liabilities: | ' | ' |
Accounts payable | 1,369 | 468 |
Accrued employee compensation | 9,194 | 13,941 |
Accrued liabilities | 1,998 | 2,848 |
Deferred revenue, current portion | 23,943 | 19,131 |
Capital lease obligations, current portion | 0 | 318 |
Total current liabilities | 36,504 | 36,706 |
Deferred revenue, net of current portion | 2,585 | 3,507 |
Other long-term liabilities | 1,078 | 641 |
Total liabilities | 40,167 | 40,854 |
Commitments and contingencies (Note 5) | ' | ' |
Convertible Preferred Stock | ' | ' |
Convertible preferred stock, $0.00005 par value; no shares authorized, issued and outstanding at September 30, 2014 and 2013, respectively | 0 | 0 |
Stockholders' Equity: | ' | ' |
Common Stock, $0.00015 par value; 200,000 shares authorized; 25,085 and 22,999 shares issued and outstanding at September 30, 2014 and 2013, respectively | 4 | 3 |
Preferred Stock, $0.00015 par value; 5,000 shares authorized; no shares issued and outstanding | 0 | 0 |
Additional paid-in capital | 172,245 | 156,032 |
Accumulated other comprehensive loss | -289 | -302 |
Accumulated deficit | -82,996 | -62,115 |
Total stockholders' equity | 88,964 | 93,618 |
Total liabilities, convertible preferred stock and stockholders' equity | $129,131 | $134,472 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
In Thousands, except Per Share data, unless otherwise specified | ||
Accounts receivable, allowance for doubtful accounts | $0 | $46 |
Common Stock, par value | $0.00 | $0.00 |
Common Stock, shares authorized | 200,000 | 200,000 |
Common Stock, shares issued | 25,085 | 22,999 |
Common Stock, shares outstanding | 25,085 | 22,999 |
Preferred Stock, par value | $0.00 | $0.00 |
Preferred Stock, shares authorized | 5,000 | 5,000 |
Preferred Stock, shares issued | 0 | 0 |
Preferred Stock, shares outstanding | 0 | 0 |
Convertible Preferred Stock [Member] | ' | ' |
Preferred Stock, par value | $0.00 | $0.00 |
Preferred Stock, shares authorized | 0 | 0 |
Preferred Stock, shares issued | 0 | 0 |
Preferred Stock, shares outstanding | 0 | 0 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Revenues: | ' | ' | ' |
License and implementation | $35,333 | $59,134 | $49,756 |
SaaS and maintenance | 46,423 | 42,770 | 34,502 |
Total revenues | 81,756 | 101,904 | 84,258 |
Cost of Revenues: | ' | ' | ' |
License and implementation | 16,652 | 26,832 | 22,483 |
SaaS and maintenance | 21,092 | 19,350 | 18,053 |
Total cost of revenues | 37,744 | 46,182 | 40,536 |
Gross profit | 44,012 | 55,722 | 43,722 |
Operating Expenses: | ' | ' | ' |
Research and development | 18,710 | 16,772 | 17,695 |
Sales and marketing | 25,998 | 21,144 | 19,640 |
General and administrative | 19,671 | 16,063 | 10,584 |
Restructuring | 26 | 1,215 | 0 |
Total operating expenses | 64,405 | 55,194 | 47,919 |
(Loss) income from operations | -20,393 | 528 | -4,197 |
Interest (income) expense, net | -12 | 357 | 655 |
Other expenses, net | 116 | 658 | 540 |
Loss before income taxes | -20,497 | -487 | -5,392 |
Provision for income taxes | 384 | 439 | 301 |
Net loss | ($20,881) | ($926) | ($5,693) |
Net loss per share attributable to common stockholders: | ' | ' | ' |
Basic and diluted | ($0.86) | ($0.06) | ($0.73) |
Weighted average number of shares used in computing net loss per share attributable to common stockholders: | ' | ' | ' |
Basic and diluted | 24,399 | 15,979 | 7,815 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Loss (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' |
Net loss | ($20,881) | ($926) | ($5,693) |
Foreign currency translation gain (loss), net of taxes | 13 | -182 | 0 |
Other comprehensive income (loss), net | 13 | -182 | 0 |
Total comprehensive loss | ($20,868) | ($1,108) | ($5,693) |
Consolidated_Statements_of_Con
Consolidated Statements of Convertible Preferred Stock and Stockholders' Equity (Deficit) (USD $) | Total | Convertible Preferred Stock [Member] | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Other Comprehensive Loss [Member] | Accumulated Deficit [Member] |
In Thousands, except Share data | ||||||
Beginning balance at Sep. 30, 2011 | ($49,703) | $41,776 | $1 | $5,912 | ($120) | ($55,496) |
Beginning balance, shares at Sep. 30, 2011 | ' | 20,103,000 | 7,583,000 | ' | ' | ' |
Issuance of common stock upon exercise of stock options | 600 | 0 | 0 | 600 | 0 | 0 |
Issuance of common stock upon exercise of stock options, shares | 348,000 | 0 | 348,000 | ' | ' | ' |
Issuance of restricted stock awards | 0 | 0 | 0 | 0 | 0 | 0 |
Issuance of restricted stock awards, shares | ' | 0 | 200,000 | ' | ' | ' |
Stock-based compensation | 2,533 | 0 | 0 | 2,533 | 0 | 0 |
Stock-based compensation, shares | ' | 0 | 0 | ' | ' | ' |
Other comprehensive income (loss) | 0 | ' | ' | ' | ' | ' |
Net loss | -5,693 | 0 | 0 | 0 | 0 | -5,693 |
Ending balance at Sep. 30, 2012 | -52,263 | 41,776 | 1 | 9,045 | -120 | -61,189 |
Ending balance, shares at Sep. 30, 2012 | ' | 20,103,000 | 8,131,000 | ' | ' | ' |
Issuance of common stock upon initial public offering (IPO) | 101,064 | 0 | 1 | 101,063 | 0 | 0 |
Issuance of common stock upon initial public offering (IPO), shares | ' | 0 | 7,011,000 | ' | ' | ' |
Reclassification of deferred offering cost from other assets to additional paid-in capital upon IPO | -3,256 | 0 | 0 | -3,256 | 0 | 0 |
Conversion of convertible preferred stock to common stock upon IPO | 41,776 | ' | 1 | 41,775 | 0 | 0 |
Conversion of convertible preferred stock to common stock upon IPO | ' | -41,776 | ' | ' | ' | ' |
Conversion of convertible preferred stock to common stock upon IPO, shares | ' | ' | 7,250,000 | ' | ' | ' |
Conversion of convertible preferred stock to common stock upon IPO, shares | ' | -20,103,000 | ' | ' | ' | ' |
Reclassification of preferred stock warrant liability to additional paid-in capital upon IPO | 1,419 | 0 | 0 | 1,419 | 0 | 0 |
Adjustment to deferred offering cost | 88 | 0 | 0 | 88 | 0 | 0 |
Issuance of common stock upon exercise of preferred stock warrant | 0 | 0 | 0 | 0 | 0 | 0 |
Issuance of common stock upon exercise of preferred stock warrant, shares | ' | 0 | 72,000 | ' | ' | ' |
Issuance of common stock upon exercise of stock options | 860 | 0 | 0 | 860 | 0 | 0 |
Issuance of common stock upon exercise of stock options, shares | 565,000 | 0 | 565,000 | ' | ' | ' |
Issuance of common stock upon release of restricted stock units | 0 | 0 | 0 | 0 | 0 | 0 |
Issuance of common stock upon release of restricted stock units, shares | ' | 0 | 7,000 | ' | ' | ' |
Cancellation of forfeited restricted stock awards, shares | ' | 0 | -37,000 | ' | ' | ' |
Stock-based compensation | 5,038 | 0 | 0 | 5,038 | 0 | 0 |
Stock-based compensation, shares | ' | 0 | 0 | ' | ' | ' |
Other comprehensive income (loss) | -182 | 0 | 0 | 0 | -182 | 0 |
Net loss | -926 | 0 | 0 | 0 | 0 | -926 |
Ending balance at Sep. 30, 2013 | 93,618 | 0 | 3 | 156,032 | -302 | -62,115 |
Ending balance, shares at Sep. 30, 2013 | ' | 0 | 22,999,000 | ' | ' | ' |
Issuance of common stock upon exercise of stock options | 3,035 | 0 | 1 | 3,034 | 0 | 0 |
Issuance of common stock upon exercise of stock options, shares | 1,689,000 | 0 | 1,689,000 | ' | ' | ' |
Issuance of common stock upon release of restricted stock units | 0 | 0 | 0 | 0 | 0 | 0 |
Issuance of common stock upon release of restricted stock units, shares | ' | 0 | 58,000 | ' | ' | ' |
Issuance of common stock under stock purchase plans | 3,203 | 0 | 0 | 3,203 | 0 | 0 |
Issuance of common stock under stock purchase plans, shares | ' | 0 | 339,000 | ' | ' | ' |
Stock-based compensation | 9,976 | 0 | 0 | 9,976 | 0 | 0 |
Stock-based compensation, shares | ' | 0 | 0 | ' | ' | ' |
Other comprehensive income (loss) | 13 | 0 | 0 | 0 | 13 | 0 |
Net loss | -20,881 | 0 | 0 | 0 | 0 | -20,881 |
Ending balance at Sep. 30, 2014 | $88,964 | $0 | $4 | $172,245 | ($289) | ($82,996) |
Ending balance, shares at Sep. 30, 2014 | ' | 0 | 25,085,000 | ' | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Cash Flows From Operating Activities: | ' | ' | ' |
Net loss | ($20,881) | ($926) | ($5,693) |
Adjustments to reconcile net loss to net cash used in operating activities | ' | ' | ' |
Depreciation and amortization | 3,385 | 1,877 | 1,526 |
Amortization of intangible assets | 331 | 330 | 234 |
Stock-based compensation | 9,949 | 4,856 | 2,521 |
Changes in fair value of preferred stock warrant liability and other, net | 0 | 671 | 345 |
Other non cash charges, net | 83 | 151 | 221 |
Changes in assets and liabilities: | ' | ' | ' |
Accounts receivable | 983 | -3,719 | 936 |
Prepaid expenses and other assets | 407 | -3,043 | -852 |
Deferred cost of implementation services | 242 | 925 | -314 |
Accounts payable | 685 | 264 | -284 |
Accrued employee compensation | -4,624 | 6,275 | 1,871 |
Other accrued and long-term liabilities | -500 | 900 | 2,103 |
Deferred revenue | 3,890 | -8,975 | 3,109 |
Net cash (used in) provided by operating activities | -6,050 | -414 | 5,723 |
Cash Flows From Investing Activities: | ' | ' | ' |
Purchases of property and equipment | -1,835 | -1,392 | -1,760 |
Capitalization of software development costs | -381 | -3,741 | -1,145 |
Net purchase of short-term investments | 0 | -7 | 0 |
Acquisition of a business | 0 | 0 | -3,000 |
Net cash used in investing activities | -2,216 | -5,140 | -5,905 |
Cash Flows From Financing Activities: | ' | ' | ' |
Proceeds from initial public offering, net of offering costs of $7.6 million | 0 | 101,064 | 0 |
Proceeds from exercise of stock options and employee stock purchase plan | 6,238 | 860 | 600 |
Payments for deferred offering costs | -6 | -2,914 | -220 |
Principal payments on capital lease obligations | -318 | -586 | -537 |
Principal payments on loan | 0 | -5,208 | -2,292 |
Net cash (used in) provided by financing activities | 5,914 | 93,216 | -2,449 |
Effect of exchange rate changes on cash and cash equivalents | 8 | -80 | -21 |
Net increase (decrease) in cash and cash equivalents | -2,344 | 87,582 | -2,652 |
Cash and cash equivalents | ' | ' | ' |
Beginning of year | 103,350 | 15,768 | 18,420 |
End of year | 101,006 | 103,350 | 15,768 |
Supplemental Disclosure of Cash Flow Data: | ' | ' | ' |
Cash paid for income taxes | 246 | 270 | 273 |
Cash paid for interest | 11 | 298 | 634 |
Noncash Investing and Financing Activities: | ' | ' | ' |
Acquisition of property and equipment under capital leases | 0 | 0 | 95 |
Capitalized stock options in software development costs | 27 | 182 | 12 |
Conversion of preferred stock warrant to common stock warrant | 0 | 1,419 | 0 |
Net settlement for exercise of common stock warrant | 0 | 300 | 0 |
Conversion of convertible preferred stock to common stock | 0 | 41,776 | 0 |
Deferred offering costs not yet paid | $0 | $6 | $473 |
Consolidated_Statements_of_Cas1
Consolidated Statements of Cash Flows (Parenthetical) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Statement of Cash Flows [Abstract] | ' |
Initial public offering, offering costs | $7.60 |
The_Company
The Company | 12 Months Ended |
Sep. 30, 2014 | |
Accounting Policies [Abstract] | ' |
The Company | ' |
1. The Company | |
Model N, Inc. (Company) was incorporated in Delaware on December 14, 1999. The Company is a provider of revenue management solutions for the life science and technology industries. The Company’s solutions enable its customers to maximize revenues and reduce revenue compliance risk by transforming their revenue life cycle from a series of tactical, disjointed operations into a strategic end-to-end process, which enables them to manage the strategy and execution of pricing, contracting, incentives and rebates. The Company’s corporate headquarters are located in Redwood City, California, with additional offices in the United States, India, the United Kingdom and Switzerland. | |
Fiscal Year | |
The Company’s fiscal year ends on September 30. References to fiscal year 2014, for example, refer to the fiscal year ended September 30, 2014. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies and Estimates | 12 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||
Summary of Significant Accounting Policies and Estimates | ' | ||||||||||||
2. Summary of Significant Accounting Policies and Estimates | |||||||||||||
Basis for Presentation | |||||||||||||
The Company’s consolidated financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) and include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated upon consolidation. The Company has evaluated subsequent events through the date that the financial statements were issued. | |||||||||||||
Use of Estimates | |||||||||||||
The preparation of the accompanying consolidated financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of revenues and expenses during the reporting periods. Significant items subject to such estimates include revenue recognition, legal contingencies, income taxes, stock-based compensation, software development costs and valuation of intangibles. These estimates and assumptions are based on management’s best estimates and judgment. Management regularly evaluates its estimates and assumptions using historical experience and other factors; however, actual results could differ significantly from these estimates. | |||||||||||||
Revenue Recognition | |||||||||||||
Revenues are comprised of license and implementation revenues and Software as a Service (SaaS) and maintenance revenues. | |||||||||||||
License and Implementation | |||||||||||||
License and implementation revenues include revenues from the sale of perpetual software licenses for the Company’s solutions and related implementation services. Based on the nature and scope of the implementation services, the Company has concluded that generally the implementation services are essential to its customers’ usability of its on premise solutions, and therefore, the Company recognizes revenues from the sale of software licenses for its on premise solutions and related implementation services on a percentage-of-completion basis over the expected implementation period. The Company estimates the length of this period based on a number of factors, including the number of licensed applications and the scope and complexity of the customer’s deployment requirements. The percentage-of-completion computation is measured by the hours expended on the implementation of the Company’s software solutions during the reporting period as a percentage of the total hours estimated to be necessary to complete the implementation of the Company’s software solutions. | |||||||||||||
SaaS and Maintenance | |||||||||||||
SaaS and maintenance revenues primarily include subscription and related implementation fees from customers accessing the Company’s cloud-based solutions and revenues associated with maintenance and support contracts from customers using on premise solutions. Also included in SaaS and maintenance revenues are other revenues, including revenues related to application support, training and customer-reimbursed expenses. | |||||||||||||
SaaS arrangements include multiple elements, comprised of subscription fees and related implementation services. In SaaS arrangements where implementation services are complex and do not have a stand-alone value to the customers, the Company considers the entire arrangement consideration, including subscription fees and related implementation services, as a single unit of accounting in accordance with the provisions of Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) No. 2009-13, Revenue Recognition (Accounting Standards Codification (ASC) Topic 605)—Multiple-Deliverable Revenue Arrangements. In such arrangements, the Company recognizes SaaS revenues ratably beginning the day the customer is provided access to the subscription service through the longer of the initial contractual period or term of the expected customer relationship. | |||||||||||||
In SaaS arrangements where subscription fees and implementation services have a standalone value, the Company allocates revenue to each element in the arrangement based on a selling price hierarchy. The selling price for a deliverable is based on its vendor-specific objective evidence (VSOE), if available, third-party evidence (TPE), if VSOE is not available, or best estimated selling price (BESP), if neither VSOE nor TPE is available. As the Company has been unable to establish VSOE or TPE for the elements of its SaaS arrangements, the Company establishes the BESP for each element by considering company-specific factors such as existing pricing and discounting. The consideration allocated to subscription fees is recognized as revenue ratably over the contract period. The consideration allocated to implementation services is recognized as revenue as services are performed. The total arrangement fee for a multiple element arrangement is allocated based on the relative BESP of each element. | |||||||||||||
Maintenance and support revenues include post-contract customer support and the right to unspecified software updates and enhancements on a when and if available basis. Application support revenues include supporting, managing and administering our software solutions, and providing additional end user support. Maintenance and support revenues and application support revenues are recognized ratably over the period in which the services are provided. The revenues from training and customer-reimbursed expenses are recognized as the Company delivers these services. | |||||||||||||
Revenue Recognition | |||||||||||||
The Company commences revenue recognition when all of the following conditions are satisfied: persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the price is fixed or determinable and collection is probable. However, determining whether and when some of these criteria have been satisfied often involves assumptions and judgments that can have a significant impact on the timing and amount of revenues the Company reports. | |||||||||||||
For multiple software element arrangements, the Company allocates the sales price among each of the deliverables using the residual method, under which revenue is allocated to undelivered elements based on their VSOE of fair value. VSOE is the price charged when an element is sold separately or a price set by management with the relevant authority. The Company has established VSOE for maintenance and support and training. | |||||||||||||
The Company does not offer any contractual rights of return, rebates or price protection. The Company’s implementation projects generally have a term ranging from a few months to three years and may be terminated by the customer at any time. Should a loss be anticipated on a contract, the full amount of the loss is recorded when the loss is determinable. The Company updates its estimates regarding the completion of implementations based on changes to the expected contract value and revisions to its estimates of time required to complete each implementation project. Amounts that may be payable to customers to settle customer disputes are recorded as a reduction in revenues or reclassified from deferred revenue to customer payables in accrued liabilities and other long-term liabilities. | |||||||||||||
Costs of Revenues | |||||||||||||
Cost of license and implementation revenues consists primarily of personnel-related costs including salary, bonus, stock-based compensation and overhead allocation as well as third-party contractors, royalty fees paid to third parties for the right to intellectual property and travel-related expenses. Cost of SaaS and maintenance revenues consists primarily of personnel-related costs including salary, bonus, stock-based compensation and overhead allocation as well as reimbursable expenses, third-party contractors, amortization of costs recorded on internally developed software and data center-related expenses. | |||||||||||||
Deferred cost of implementation services consists of costs related to implementation services that were provided to the customer but the revenues for the services have not yet been recognized, provided however that the customer is contractually required to pay for the services. These costs primarily consist of personnel costs. As of September 30, 2014 and 2013, the deferred cost of implementation services totaled $0.6 million and $0.8 million, respectively. | |||||||||||||
Warranty | |||||||||||||
The Company provides limited warranties on all sales and provides for the estimated cost of warranties at the date of sale. The estimated cost of warranties has not been material to date. | |||||||||||||
Foreign Currency Translation | |||||||||||||
The functional currency of the Company’s foreign subsidiaries is their respective local currency. The Company translates all assets and liabilities of foreign subsidiaries to U.S. dollars at the current exchange rate as of the applicable consolidated balance sheet date. Revenues and expenses are translated at the average exchange rate prevailing during the period. The effects of foreign currency translations are recorded in accumulated other comprehensive loss as a separate component of stockholders’ equity (deficit) in the accompanying consolidated statements of stockholders’ equity. Realized gains and losses from foreign currency transactions are included in other expenses, net in the consolidated statements of operations and have not been material for all periods presented. | |||||||||||||
Cash and Cash Equivalents | |||||||||||||
The Company considers all highly liquid investments with an original or remaining maturity of three months at date of purchase to be cash equivalents. The Company’s cash equivalents are comprised of U.S. treasury bills and money market funds, and are maintained with financial institutions with high credit ratings. The deposits in money market funds are not federally insured. | |||||||||||||
Concentration of Credit Risk and Significant Customers | |||||||||||||
Credit risk is the risk of loss from amounts owed by financial counterparties. Credit risk can occur at multiple levels; as a result of broad economic conditions, challenges within specific sectors of the economy, or from issues affecting individual companies. Financial instruments that potentially subject the Company to credit risk consist of cash equivalents and accounts receivable. | |||||||||||||
The Company maintains cash and cash equivalents with major financial institutions. The Company’s cash and cash equivalents consist of bank deposits held with banks, U.S. treasury bills and money market funds that, at times, exceed federally insured limits. The Company limits its credit risk by dealing with counterparties that are considered to be of high credit quality and by performing periodic evaluations of its investments and of the relative credit standing of these financial institutions. | |||||||||||||
In the normal course of business, the Company is exposed to credit risk from its customers. To reduce credit risk, the Company performs ongoing credit evaluations of its customers. | |||||||||||||
The following customers comprised 10% or more of the Company’s accounts receivable at September 30, 2014 and 2013 and of the Company’s total revenues for the fiscal years ended September 30, 2014, 2013 and 2012, respectively: | |||||||||||||
As of September 30, | |||||||||||||
2014 | 2013 | ||||||||||||
Accounts Receivable | |||||||||||||
Company A | 12 | % | 21 | % | |||||||||
Company B | * | 14 | |||||||||||
Company C | * | 10 | |||||||||||
Fiscal | |||||||||||||
Years Ended September 30, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Revenue | |||||||||||||
Company A | * | 12 | % | 14 | % | ||||||||
Company B | * | * | 10 | % | |||||||||
Company C | 15 | % | 12 | % | * | ||||||||
* | Less than 10% | ||||||||||||
Accounts Receivable and Allowance for Doubtful Accounts | |||||||||||||
Accounts receivable are recorded at the invoiced amount, net of allowances for doubtful accounts. The allowance for doubtful accounts is based on management’s assessment of the collectability of accounts. The Company regularly reviews the adequacy of this allowance for doubtful accounts by considering historical experience, the age of the accounts receivable balances, the credit quality of the customers, current economic conditions, and other factors that may affect customers’ ability to pay to determine whether a specific allowance is appropriate. Accounts receivable deemed uncollectable are charged against the allowance for doubtful accounts when identified. | |||||||||||||
Revenue that has been recognized, but for which the Company has not invoiced the customer, amounting to $0.8 million and $1.6 million is recorded as unbilled receivables and is included in accounts receivables in the consolidated balance sheets as of September 30, 2014 and 2013, respectively. Invoices that have been issued before revenue has been recognized are recorded as deferred revenue in the consolidated balance sheets. | |||||||||||||
Property and Equipment, Net | |||||||||||||
Property and equipment are recorded at cost less accumulated depreciation. Depreciation of property and equipment is calculated using straight-line basis over the estimated useful lives of the assets. Leasehold improvements are amortized on a straight-line basis over the shorter of lease term or estimated useful lives of the assets. | |||||||||||||
The estimated useful lives of property and equipment are as follows: | |||||||||||||
Computer software and equipment | 2-5 years | ||||||||||||
Furniture and fixtures | 2-5 years | ||||||||||||
Leasehold improvements | Shorter of the lease term or estimated useful life | ||||||||||||
Software development costs | 3 years | ||||||||||||
Costs of maintenance and repairs that do not improve or extend the lives of the respective assets are charged to expense as incurred. Upon retirement or sale of property and equipment, the cost and related accumulated depreciation are removed from the balance sheet and the resulting gain or loss is reflected in statement of operations. | |||||||||||||
Capital Leases | |||||||||||||
Computer equipment leases are capitalized when the Company assumes substantially all risks and benefits of ownership of the computer equipment. Accordingly, the Company records the asset and obligation at an amount equal to the lesser of the fair market value of the computer equipment or the net present value of the minimum lease payments at the inception of the lease. Leased computer equipment is depreciated using the straight-line basis over the shorter of its estimated useful life or the lease term. | |||||||||||||
Long-lived Assets | |||||||||||||
The Company continually monitors events and changes in circumstances that could indicate that carrying amounts of its long-lived assets, including property and equipment and intangible assets may not be recoverable. When such events or changes in circumstances occur, the Company assesses the recoverability of long-lived assets by determining whether the carrying value of such assets will be recovered through their undiscounted expected future cash flows. If the future undiscounted cash flows are less than the carrying amount of these assets, the Company recognizes an impairment loss based on the excess of the carrying amount over the fair value of the assets. The Company did not recognize any impairment charges on its long-lived assets during any periods presented. | |||||||||||||
Goodwill and Other Intangible Assets | |||||||||||||
The Company records goodwill when consideration paid in a purchase acquisition exceeds the fair value of the net tangible assets and the identified intangible assets acquired. Goodwill is not amortized, but rather is tested for impairment annually or more frequently if facts and circumstances warrant a review. The Company has determined that there is a single reporting unit for the purpose of goodwill impairment tests. The Company performs a goodwill impairment test annually during the fourth quarter of its fiscal year and more frequently if an event or circumstance indicates that impairment may have occurred. Such events or circumstances may include significant adverse changes in the general business environment, among other things. If the conclusion of a qualitative assessment is that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the Company estimates the fair value of the reporting unit and compares this amount to the carrying value of the reporting unit. If the Company determines that the carrying value of the reporting unit exceeds its fair value, an impairment charge would be required. During the fourth quarter of fiscal 2014, the Company completed its annual impairment test of goodwill. Based upon the qualitative assessment, the Company determined that its goodwill was not impaired as of September 30, 2014. There are no impairment charges related to purchased intangible assets during the fiscal year 2014 and 2013. Other intangible assets, consisting of developed technology, backlog, non-competition agreements and customer relationships, are stated at fair value less accumulated amortization. All intangible assets have been determined to have finite lives and are amortized on a straight-line basis over their estimated remaining economic lives, ranging from three to five years. Amortization expense related to developed technology is included in cost of SaaS and maintenance revenue while amortization expense related to backlog, non-competition agreements and customer relationships is included in sales and marketing expense. | |||||||||||||
Fair Value of Financial Instruments | |||||||||||||
The financial instruments of the Company consist primarily of cash and cash equivalents, accounts receivable, accounts payable and certain accrued liabilities. The Company regularly reviews its financial instruments portfolio to identify and evaluate such instruments that have indications of possible impairment. When there is no readily available market data, fair value estimates are made by the Company, which involves some level of management estimation and judgment and may not necessarily represent the amounts that could be realized in a current or future sale of these assets. | |||||||||||||
Based on borrowing rates currently available to the Company for financing obligations with similar terms and considering the Company’s credit risks, the carrying value of the financing obligation approximates fair value. | |||||||||||||
Fair value is defined as the exchange price that would be received for an asset or an exit price paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The current accounting guidance for fair value instruments defines a three-level valuation hierarchy for disclosures as follows: | |||||||||||||
Level 1—Unadjusted quoted prices in active markets for identical assets or liabilities; | |||||||||||||
Level 2—Input other than quoted prices included in Level I that are observable, unadjusted quoted prices in markets that are not active, or other inputs for similar assets and liabilities that are observable or can be corroborated by observable market data; and | |||||||||||||
Level 3—Unobservable inputs that are supported by little or no market activity, which requires the Company to develop its own models and involves some level of management estimation and judgment. | |||||||||||||
The Company’s Level 1 assets consist of U.S. treasury bills and money market funds. These instruments are classified within Level 1 of the fair value hierarchy because they are valued based on quoted market prices in active markets. | |||||||||||||
There were no Level 2 or 3 securities as of September 30, 2014 or 2013, respectively. | |||||||||||||
Research and Development and Capitalization of Software Development Costs | |||||||||||||
The Company generally expenses costs related to research and development, including those activities related to software solutions to be sold, leased or otherwise marketed. As such development work is essentially completed concurrently with the establishment of technological feasibility, and accordingly, the Company has not capitalized any such development costs. | |||||||||||||
The Company capitalizes certain software development costs incurred in connection with its cloud-based software platform for internal use. The Company capitalizes software development costs when application development begins, it is probable that the project will be completed, and the software will be used as intended. When development becomes substantially complete and ready for its intended use, such capitalized costs are amortized on a straight-line basis over the estimated useful life of the related asset, which is generally three years. Costs associated with preliminary project stage activities, training, maintenance and all post implementation stage activities are expensed as incurred. The Company capitalized software development costs of $0.4 million and $3.9 million during the fiscal years ended September 30, 2014 and 2013, respectively. | |||||||||||||
Sales Commissions | |||||||||||||
Sales commissions are recognized as an expense upon booking the contract. Substantially all of the compensation due to the sales force is earned at the time of the contract signing, with limited ability to recover any commissions paid if a contract is terminated. | |||||||||||||
Advertising and Promotion Costs | |||||||||||||
Advertising and promotion costs are expensed as incurred. The Company incurred no advertising and promotion costs during the fiscal years ended September 30, 2014 and 2012. The Company incurred $1,000 of advertising and promotion costs during the fiscal year ended September 30, 2013. | |||||||||||||
Employee Benefit Plan | |||||||||||||
The Company has a savings plan that qualifies under Section 401(k) of the Internal Revenue Code (IRC). There were no matching or discretionary employer contributions made to this plan during any periods presented. | |||||||||||||
Stock-Based Compensation | |||||||||||||
Stock-based compensation expense for all share-based payment awards granted to our employees and directors including stock options, employee stock purchase plan, performance-based restricted stock units and restricted stock is measured and recognized based on the estimated fair value of the award on the grant date. The Company uses the Black-Scholes-Merton valuation model to estimate the fair value of stock options and ESPP shares. For restricted stock awards and units, fair value is based on the closing price of our common stock on the grant date. The fair value is recognized as an expense, net of estimated forfeitures on a straight-line basis, over the requisite service period, which is generally the vesting period of the respective award. In addition, the Company uses the Monte-Carlo simulation option-pricing model to determine the fair value of performance-based restricted stock units that contain a market condition such as those granted to the Company’s three senior executives and approved by the Compensation Committee of the Board on December 6, 2013. The Monte-Carlo simulation option-pricing model takes into account the same input assumptions as the Black-Scholes-Merton model; however, it also further incorporates into the fair-value determination, the possibility that the market condition may not be satisfied. The determination of the fair value of performance-based restricted stock units using an option-pricing model is affected by the Company’s stock price and its performance in relation to its peer group. The compensation costs related to performance-based restricted stock units with a market-based condition are recognized regardless of whether the market condition is satisfied, provided that the requisite service has been provided. The models requires the use of subjective assumptions to determine the fair value of stock option awards, including the expected stock price volatility over the expected term of the options, stock option exercise and cancellation behaviors, risk-free interest rates and expected dividends. The Company periodically estimates the portion of awards which will ultimately vest based on its historical forfeiture experience. These estimates are adjusted over the requisite service period to the extent that actual forfeitures differ, or are expected to differ, from the prior estimates. | |||||||||||||
Income Taxes | |||||||||||||
The Company accounts for income taxes in accordance with the FASB ASC No. 740—Accounting for Income Taxes (ASC 740). The Company makes certain estimates and judgments in determining income tax expense for financial statement purposes. These estimates and judgments occur in the calculation of tax credits, tax benefits and deductions and in the calculation of certain tax assets and liabilities, which arise from differences in the timing of recognition of revenue and expense for tax and financial statement purposes. Significant changes to these estimates may result in an increase or decrease to our tax provision in the subsequent period when such a change in estimate occurs. | |||||||||||||
The Company regularly assesses the likelihood that its deferred income tax assets will be realized from future taxable income based on the realization criteria set forth in ASC 740. To the extent that the Company believes any amounts are not more likely than not to be realized, the Company records a valuation allowance to reduce the deferred income tax assets. In assessing the need for a valuation allowance, the Company considers all available evidence, including past operating results, estimates of future taxable income and the feasibility of tax planning strategies. In the event the Company determines that all or part of the net deferred tax assets are not realizable in the future, an adjustment to the valuation allowance would be charged to earnings in the period such determination is made. Similarly, if the Company subsequently realizes deferred income tax assets that were previously determined to be unrealizable, the respective valuation allowance would be reversed, resulting in an adjustment to earnings in the period such determination is made. | |||||||||||||
As of September 30, 2014 and 2013, the Company had gross deferred income tax assets, related primarily to net operating loss (NOL) carry forwards, deferred revenues, accruals and reserves that are not currently deductible and depreciable and amortizable items of $34.7 million and $26.9 million, respectively, which have been fully offset by a valuation allowance. Utilization of these net loss carry forwards is subject to the limitations of IRC Section 382. During the year ended September 30, 2013, the Company undertook a study of NOL carry forwards and determined that most of its NOL carry forwards are not subject to the limitations of IRC Section 382. However, in the future, some portion or all of these carry forwards may not be available to offset any future taxable income. | |||||||||||||
Segment | |||||||||||||
The Company has one operating segment with one business activity, developing and monetizing revenue management solutions. The Company’s Chief Operating Decision Maker (CODM) is its Chief Executive Officer, who manages operations on a consolidated basis for purposes of allocating resources. When evaluating performance and allocating resources, the CODM reviews financial information presented on a consolidated basis, accompanied by disaggregated information for the business operations of revenue management solutions. | |||||||||||||
Net (Loss) Income per Share | |||||||||||||
The Company’s basic net (loss) income per share attributable to common stockholders is calculated by dividing the net (loss) income attributable to common stockholders by the weighted average number of shares of common stock outstanding for the period, which excludes unvested restricted stock awards. The diluted net (loss) income per share attributable to common stockholders is computed by giving effect to all potentially dilutive common stock equivalents outstanding for the period. For purposes of this calculation, convertible preferred stock, warrants outstanding, options to purchase common stock, unvested restricted stock awards and unvested restricted stock units are considered to be common stock equivalents. | |||||||||||||
Since the Company has issued securities other than common stock that participate in dividends with the common stock, or participating securities, it is required to apply the two-class method to compute the net (loss) income per share attributable to common stockholders. The Company determined that as of the end of the fiscal year 2012, it had participating securities outstanding in the form of noncumulative convertible preferred stock that share in dividends with common stock. The two-class method requires that the Company calculate the net (loss) income per share using net income attributable to the common stockholders which will differ from the Company’s net income. Net (loss) income attributable to the common stockholders is generally equal to the net (loss) income less assumed periodic preferred stock dividends with any remaining earnings, after deducting assumed dividends, to be allocated on a pro rata basis between the outstanding common and preferred stock as of the end of each period. | |||||||||||||
Comprehensive (Loss) Income | |||||||||||||
Comprehensive income (loss) income is comprised of net income (loss) income and other comprehensive (loss) income. Other comprehensive (loss) income primarily includes foreign currency translation adjustments. | |||||||||||||
Recently Adopted Accounting Pronouncements | |||||||||||||
In December 2011, the FASB issued ASU No. 2011-11—Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities requiring enhanced disclosures about certain financial instruments and derivative instruments that are offset in the consolidated balance sheets or that are subject to enforceable master netting arrangements or similar agreements. This update is effective for fiscal years beginning on or after January 1, 2013. The Company adopted this update in the first quarter of fiscal year 2014. | |||||||||||||
New Accounting Pronouncements | |||||||||||||
In August, 2014 the FASB issued ASU No. 2014-15—Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. The update provides guidance on evaluating whether there is substantial doubt about the organization’s ability to continue as a going concern and how underlying conditions should be disclosed in the footnotes to the financial statements. The update is effective for the fiscal year beginning after December 15, 2016, with early application permitted. The Company does not anticipate that adoption of this update will have a material impact on its consolidated financial statements. | |||||||||||||
In June 2014, the FASB issued ASU No. 2014-12—Compensation—Stock Compensation: Accounting for Share-Based Payments When the Terms of an Award Provide that a Performance Target Could be Achieved after the Requisite Service Period (Topic 718). This update requires that a performance target which affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant date fair value of the award. This update further clarifies that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the periods for which the requisite service has already been rendered. The Company does not anticipate that the adoption of this update will have a material impact on its consolidated financial statements. | |||||||||||||
In May 2014, the FASB issued ASU No. 2014-09—Revenue from Contracts with Customers (Topic 606). This update outlines a new, single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. This new revenue recognition model provides a five-step analysis in determining when and how revenue is recognized. The new model will require revenue recognition to depict the transfer of promised goods or services to customers in an amount that reflects the consideration a company expects to receive in exchange for those goods or services. This update is effective for fiscal years and interim periods within those years beginning after December 15, 2016. The Company is currently assessing the impact that adopting this update will have on its consolidated financial statements and footnote disclosures. | |||||||||||||
In April 2014, the FASB ASU No. 2014-08—Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. This update changes the criteria for reporting discontinued operations. The update expands the definition of discontinued operations to include the sale or disposal of a component of a Company, if the sale or disposal creates a strategic shift or major effect in the Company’s operations and financial results. A component of a Company includes any segment, reporting unit, subsidiary, or asset group. The update requires expanded disclosures about a disposal of a component. The update is effective beginning January 1, 2015 with early adoption permitted for disposals that have not been reported in previously-issued financial statements. The impact to the Company will be dependent on any transaction that is within the scope of this update. | |||||||||||||
In July 2013, the FASB issued ASU No. 2013-11—Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. This update generally requires, with some exceptions, an entity to present its unrecognized tax benefits as it relates to its NOL carry forwards, similar tax losses, or tax credit carry forwards, as a reduction of deferred tax assets when settlement in this regard is available under the tax law of the applicable taxing jurisdiction as of the balance sheet reporting date. This update is effective for fiscal years beginning after December 15, 2013 with retrospective application permitted. This update requires a change in financial statement presentation. The Company does not anticipate that the adoption of this update will have a material impact on its consolidated financial statements. | |||||||||||||
In March 2013, the FASB issued ASU No. 2013-05—Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity (Topic 830) to resolve the diversity in practice regarding the release into net income of the cumulative translation adjustment upon derecognition of a subsidiary or group of assets within a foreign entity. This update will be effective for fiscal years beginning after December 15, 2013. The impact to the Company will be dependent on any transaction that is within the scope of the new guidance. |
Consolidated_Balance_Sheet_Com
Consolidated Balance Sheet Components | 12 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ||||||||||||
Consolidated Balance Sheet Components | ' | ||||||||||||
3. Consolidated Balance Sheet Components | |||||||||||||
Components of prepaid expenses, property and equipment, goodwill and intangibles, other assets, accrued employee compensation and accrued liabilities consisted of the following: | |||||||||||||
Prepaid Expenses | |||||||||||||
As of September 30, | |||||||||||||
2014 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
Prepaid royalties | $ | 392 | $ | 190 | |||||||||
Prepaid taxes | 44 | 185 | |||||||||||
Other prepaid expenses | 1,656 | 2,850 | |||||||||||
Total prepaid expenses | $ | 2,092 | $ | 3,225 | |||||||||
Property and Equipment | |||||||||||||
As of September 30, | |||||||||||||
2014 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
Computer software and equipment | $ | 6,931 | $ | 6,820 | |||||||||
Furniture and fixtures | 477 | 1,130 | |||||||||||
Leasehold improvements | 804 | 733 | |||||||||||
Software development costs | 5,488 | 5,080 | |||||||||||
Total property and equipment | 13,700 | 13,763 | |||||||||||
Less: Accumulated depreciation and amortization | (6,811 | ) | (5,894 | ) | |||||||||
Property and equipment, net | 6,889 | 7,869 | |||||||||||
Add: Construction in progress | — | 2 | |||||||||||
Total property and equipment, net | $ | 6,889 | $ | 7,871 | |||||||||
Computer equipment acquired under the capital leases is included in property and equipment and consisted of the following: | |||||||||||||
As of September 30, | |||||||||||||
2014 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
Computer software and equipment | $ | 823 | $ | 1,376 | |||||||||
Less: Accumulated depreciation and amortization | (819 | ) | (1,096 | ) | |||||||||
Total computer software and equipment, net | $ | 4 | $ | 280 | |||||||||
Depreciation and amortization expense including depreciation of assets under capital leases totaled $3.4 million, $1.9 million and $1.5 million for the fiscal years ended September 30, 2014, 2013 and 2012, respectively. | |||||||||||||
Goodwill and Intangible Assets | |||||||||||||
Estimated | As of September 30, | ||||||||||||
Useful | |||||||||||||
Life | |||||||||||||
(in Years) | |||||||||||||
2014 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
Intangible Assets: | |||||||||||||
Developed technology | 5 | $ | 2,214 | $ | 2,214 | ||||||||
Backlog | 5 | 100 | 100 | ||||||||||
Non-competition agreement | 3 | 100 | 100 | ||||||||||
Customer relationships | 3 | 1,018 | 1,018 | ||||||||||
Less: Accumulated amortization | (2,845 | ) | (2,514 | ) | |||||||||
Total intangible assets | $ | 587 | $ | 918 | |||||||||
Goodwill | $ | 1,509 | $ | 1,509 | |||||||||
The Company recorded amortization expense related to the acquired intangible assets of $0.3 million, $0.3 million and $0.2 million during the fiscal years ended September 30, 2014, 2013, and 2012, respectively. | |||||||||||||
Estimated future amortization expense for the intangible assets as of September 30, 2014 is as follows: | |||||||||||||
Fiscal Years Ending | |||||||||||||
September 30, | |||||||||||||
(in thousands) | |||||||||||||
2015 | $ | 270 | |||||||||||
2016 | 245 | ||||||||||||
2017 | 72 | ||||||||||||
Total future amortization | $ | 587 | |||||||||||
Other Assets | |||||||||||||
As of September 30, | |||||||||||||
2014 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
Deferred cost of implementation services, net of current portion | $ | 317 | $ | 319 | |||||||||
Other | 955 | 307 | |||||||||||
Total other assets | $ | 1,272 | $ | 626 | |||||||||
Accrued Employee Compensation | |||||||||||||
As of September 30, | |||||||||||||
2014 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
Consideration in connection with acquisition (Note 11) | $ | 870 | $ | 1,373 | |||||||||
Restructuring (Note 10) | — | 1,182 | |||||||||||
Accrued employee benefits | 8,324 | 11,386 | |||||||||||
Total accrued employee compensation | $ | 9,194 | $ | 13,941 | |||||||||
Accrued Liabilities | |||||||||||||
As of September 30, | |||||||||||||
2014 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
Taxes payable | $ | 191 | $ | 232 | |||||||||
Other customer payables | 141 | 150 | |||||||||||
Other accrued liabilities | 1,666 | 2,466 | |||||||||||
Total accrued liabilities | $ | 1,998 | $ | 2,848 | |||||||||
Financial_Instruments
Financial Instruments | 12 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Financial Instruments | ' | ||||||||||||||||
4. Financial Instruments | |||||||||||||||||
The table below sets forth the Company’s cash equivalents as of September 30, 2014 and 2013, which are measured at fair value on a recurring basis by level within the fair value hierarchy. The assets are classified based on the lowest level of input that is significant to the fair value measurement. The Company had no liabilities measured at fair value on a recurring basis. | |||||||||||||||||
Cash equivalents in the tables below exclude $55.5 million and $7.8 million held in cash by the Company in its bank and investment accounts as of September 30, 2014 and 2013, respectively. | |||||||||||||||||
There were no transfers of assets and liabilities measured at fair value between Level 1 and Level 2, or between Level 2 and Level 3, during the fiscal years ended September 30, 2014 and 2013. | |||||||||||||||||
The following tables show the Company’s available-for-sale securities’ adjusted cost; gross unrealized gains, gross unrealized losses and fair value recorded as cash equivalents as of September 30, 2014 and 2013: | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
(in thousands) | |||||||||||||||||
As of September 30, 2014: | |||||||||||||||||
Assets: | |||||||||||||||||
Cash equivalents: | |||||||||||||||||
Money market fund deposits | $ | 11,463 | $ | — | $ | — | $ | 11,463 | |||||||||
U.S. treasury bills | 34,050 | — | — | 34,050 | |||||||||||||
Total | $ | 45,513 | $ | — | $ | — | $ | 45,513 | |||||||||
As of September 30, 2013: | |||||||||||||||||
Assets: | |||||||||||||||||
Cash equivalents: | |||||||||||||||||
U.S. treasury bills | $ | 95,508 | $ | — | $ | — | $ | 95,508 | |||||||||
Adjusted Cost | Unrealized Gains | Unrealized Losses | Fair Value | ||||||||||||||
(in thousands) | |||||||||||||||||
As of September 30, 2014: | |||||||||||||||||
Cash equivalents: | |||||||||||||||||
Money market fund deposits | $ | 11,463 | $ | — | $ | — | $ | 11,463 | |||||||||
U.S. treasury bills | 34,050 | — | — | 34,050 | |||||||||||||
Total | $ | 45,513 | $ | — | $ | — | $ | 45,513 | |||||||||
As of September 30, 2013: | |||||||||||||||||
Cash equivalents: | |||||||||||||||||
U.S. treasury bills | $ | 95,508 | $ | — | $ | — | $ | 95,508 | |||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||||||||||||||||
Commitments and Contingencies | ' | ||||||||||||||||||||
5. Commitments and Contingencies | |||||||||||||||||||||
Leases | |||||||||||||||||||||
The Company leases facilities under noncancelable operating leases, and leases certain computer equipment under capital leases and acquired certain equipment under an equipment loan. The Company entered into a new operating lease for the Company’s facility in Redwood City, California for a period of 42 months beginning in July 2014. Rent expense under noncancelable operating leases for the fiscal years ended September 30, 2014, 2013 and 2012 was $2.0 million, $1.7 million and $1.5 million, respectively. | |||||||||||||||||||||
As of September 30, 2014, future minimum payments under operating leases were as follows: | |||||||||||||||||||||
Contractual Payment Obligations Due by Period | |||||||||||||||||||||
Total | Less than 1 | 1 to 3 | 2 to 5 | More than 5 | |||||||||||||||||
Year | Years | Years | Years | ||||||||||||||||||
Operating lease obligations(1) | $ | 6,400 | $ | 2,100 | $ | 3,800 | $ | 500 | $ | — | |||||||||||
(1) | Operating lease obligations represent our obligations to make payments under the lease agreements for our facilities leases. | ||||||||||||||||||||
Loan Financing Arrangements | |||||||||||||||||||||
In October 2010, the Company entered into an amended and restated loan and security agreement with a lender and refinanced its revolving `credit facility with a term loan of $7.5 million. The principal amount outstanding bears a fixed interest rate at 8.0% per annum. The amended and restated loan and security agreement required interest only payments until October 1, 2011 and thirty six (36) equal monthly installments of principal with accrued interest thereafter until maturity on October 1, 2014. The Company pledged all assets excluding any intellectual property to the lender as collateral. The Company repaid this term loan in full in May 2013. | |||||||||||||||||||||
In connection with the amended and restated loan and security agreement, the Company issued a warrant to purchase 86,655 shares of Series C Preferred Stock at an exercise price of $3.462 per share to the lender (see Note 12). | |||||||||||||||||||||
For the fiscal years ended September 30, 2014, 2013 and 2012, the Company recorded an interest expense of $0, $0.4 million and $0.5 million, respectively. | |||||||||||||||||||||
Indemnification Obligations | |||||||||||||||||||||
Each of the Company’s software licenses contains the terms of the contractual arrangement with the customer and generally includes certain provisions for defending the customer against any claims that the Company’s software infringes upon a patent, copyright, trademark, or other proprietary right of a third party. The software license also provides for indemnification by the Company of the customer against losses, expenses, and liabilities from damages that may be assessed against the customer in the event the Company’s software is found to infringe upon such third party rights. | |||||||||||||||||||||
The Company has not had to reimburse any of its customers for losses related to indemnification provisions, and there were no material claims against the Company outstanding as of September 30, 2014 and 2013. For several reasons, including the lack of prior indemnification claims and the lack of a monetary liability limit for certain infringement cases under the software license, the Company cannot estimate the amount of potential future payments, if any, related to indemnification provisions. | |||||||||||||||||||||
As permitted under Delaware law, the Company has indemnification arrangements with respect to its officers and directors, indemnifying them for certain events or occurrences while they serve as officers or directors of the Company. | |||||||||||||||||||||
Legal Proceedings | |||||||||||||||||||||
The Company is involved in litigation arising from the Company’s initial public offering, or IPO. The Company accrues a liability when management believes that it is both probable that a liability has been incurred and the amount of loss can be reasonably estimated. As of September 30, 2014, it was not reasonably possible that any material loss had been incurred. The Company reviews these matters at least quarterly and adjusts its accruals to reflect the impact of negotiations, settlements, rulings, advice of legal counsel, and other information and events pertaining to the case discussed below. The Company believes that any damage amounts claimed in the specific matter discussed below is not a meaningful indicator of the Company’s potential liability. Litigation is inherently unpredictable. However, the Company believes that it has valid defenses with respect to legal matters pending against it. Nevertheless, cash flows or results of operations could be materially affected in any particular period by the resolution of one or more of these contingencies. | |||||||||||||||||||||
On September 5, 2014, a purported securities class action lawsuit was filed in the Superior Court of the State of California, County of San Mateo, against the Company, certain of the Company’s current and former directors and executive officers and underwriters of the Company’s IPO. The lawsuit was brought by a purported stockholder of the Company seeking to represent a class consisting of all those who purchased Company stock pursuant and/or traceable to the Company’s Registration Statement and Prospectus issued in connection with the Company’s IPO. The lawsuit asserts claims under Sections 11, 12(a)(2) and 15 of the Securities Act of 1933 and seeks unspecified damages and other relief. The Company believes that the claims are without merit and intends to defend the lawsuit vigorously. |
StockBased_Compensation
Stock-Based Compensation | 12 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||||||||||
Stock-Based Compensation | ' | ||||||||||||||||||||||||
6. Stock-Based Compensation | |||||||||||||||||||||||||
Stock Plans | |||||||||||||||||||||||||
The Company’s board of directors (Board) adopted the 2013 Equity Incentive Plan (2013 Plan) in February 2013, and the stockholders approved the 2013 Plan in March 2013. The 2013 Plan became effective on March 18, 2013 and will terminate in February 2023. The 2013 Plan serves as the successor equity compensation plan to the 2010 Equity Incentive Plan (2010 Plan). The 2013 Plan was approved with a reserve of 8.0 million shares, which consists of 2.5 million shares of the Company’s common stock reserved for future issuance under the 2013 Plan and shares of common stock previously reserved but unissued under the 2010 Plan. In addition, any shares of common stock subject to outstanding awards under the 2010 Plan and 2000 Stock Plan (2000 Plan) that are issuable upon the exercise of options that expire without having been exercised in full, are forfeited or repurchased by us at the original purchase price or are used to pay the exercise price or withholding obligations related to any award will be available for future grant and issuance under the 2013 Plan. Additionally, the 2013 Plan provides for automatic increases in the number of shares available for issuance under it on October 1 of each of the first four calendar years during the term of the 2013 Plan by the lesser of 5% of the number of shares of common stock issued and outstanding on each September 30 immediately prior to the date of increase or the number determined by our board of directors. No further grants will be made under the 2010 Plan, and the balances under the 2010 Plan have been transferred to the 2013 Plan. The 2013 Plan provides for the grant of incentive stock options, nonqualified stock options, restricted stock awards, stock appreciation rights, performance stock awards, restricted stock units and stock bonuses. Awards generally vest over four years and expire ten years from the date of grant. | |||||||||||||||||||||||||
On June 15, 2010, the Board adopted the 2010 Plan under which employees, directors, and other eligible participants of the Company or any subsidiary of the Company may be granted incentive stock options, nonstatutory stock options and all other types of awards to purchase shares of the Company’s common stock. | |||||||||||||||||||||||||
In 2000, the Board adopted the 2000 Plan under which employees, directors and other eligible participants may be granted incentive stock options or nonstatutory stock options to purchase shares of the Company’s common stock. | |||||||||||||||||||||||||
Employee Stock Purchase Plan | |||||||||||||||||||||||||
The 2013 Employee Stock Purchase Plan (ESPP) became effective on March 19, 2013. The ESPP allows eligible employees to purchase shares of the Company’s common stock at a discount through payroll deductions of up to 15% of their eligible compensation, at not less than 85% of the fair market value, as defined in the ESPP, subject to any plan limitations. Except for the initial offering period, the ESPP provides for six-month offering periods, starting on February 20 and August 20 of each year. The initial offering period began on March 19, 2013 and ended on February 19, 2014. | |||||||||||||||||||||||||
Restricted Stock Awards Issued to Certain Employees in Connection with the LeapFrogRx Acquisition | |||||||||||||||||||||||||
In January 2012, the Company issued 200,000 shares of common stock to certain employees of LeapFrogRx in connection with the acquisition of LeapFrogRx. Of these shares, 36,818 shares were forfeited during fiscal year 2013. There were 29,849 shares subject to repurchase as of September 30, 2013 and no shares subject to repurchase as of September 30, 2014 as these shares were fully vested. The total fair value on their respective vesting dates of the restricted stock awards that vested during the fiscal years ended September 30, 2014 and 2013 was $ 0.1 million and $0.4 million, respectively. | |||||||||||||||||||||||||
Performance-based Restricted Stock Units | |||||||||||||||||||||||||
On December 6, 2013, the Compensation Committee of the Board approved initial grants of an aggregate of 280,000 performance-based restricted stock units to three of the Company’s senior officers, including the Chief Executive Officer and the Chief Financial Officer. Under the terms of these grants, the actual number of shares released could be 0% to 250% of the initial grant based on the Company’s total shareholder return (TSR) relative to the TSR of the Russell 3000 index (Index) over a three-year period. In any of the three years, no shares will be released if the TSR of the Company’s common stock is below the 30th percentile relative to the Index; 100% of the initial grant will be released if the Company’s TSR is at the 50th percentile relative to the Index; and 250% of the initial grant will be released if the Company’s TSR is over the 90th percentile relative to the Index. These grants vest as to one-third on each annual anniversary of November 22, 2013, with a “catch-up” provision such that shares not earned in a prior year may be earned in a subsequent year subject to the Company’s TSR achieving a certain level relative to the Index and exceeding the prior year’s TSR. These grants have a ten-year term, subject to their earlier termination upon certain events including the awardee’s termination of employment. As of September 30, 2014 approximately 43,000 of performance based stock units were forfeited. The weighted-average assumptions used to estimate the fair values of these awards were determined using the following assumptions for the fiscal year ended September 30, 2014: | |||||||||||||||||||||||||
Risk-free interest rate | 0.63 | % | |||||||||||||||||||||||
Dividend yield | — | ||||||||||||||||||||||||
Volatility | 39 | % | |||||||||||||||||||||||
Activities of Stock Options, Restricted Stock Units, Performance-based Restricted Stock Units and Restricted Stock Awards | |||||||||||||||||||||||||
Outstanding Awards | |||||||||||||||||||||||||
Shares | Number of | Weighted | Number of | Weighted | Number of | ||||||||||||||||||||
Available | Stock | Average | Restricted | Average | Restricted | ||||||||||||||||||||
for Grant | Options | Exercise | Stock | Grant Date | Stock | ||||||||||||||||||||
Price | Units | Fair Value | Awards | ||||||||||||||||||||||
(in thousands, except exercise price and grant date fair value) | |||||||||||||||||||||||||
Balance at September 30, 2011 | 989 | 3,787 | $ | 1.62 | — | $ | — | — | |||||||||||||||||
Increase in shares reserved | 1,333 | — | — | — | — | — | |||||||||||||||||||
Granted | (1,788 | ) | 1,568 | 10.05 | 20 | 10.92 | 200 | ||||||||||||||||||
Exercised/released | — | (348 | ) | 1.74 | — | — | (200 | ) | |||||||||||||||||
Forfeited | 282 | (282 | ) | 4.44 | — | — | — | ||||||||||||||||||
Expired | 166 | (166 | ) | 1.59 | — | — | — | ||||||||||||||||||
Balance at September 30, 2012 | 982 | 4,559 | 4.34 | 20 | 10.92 | — | |||||||||||||||||||
Increase in shares reserved | 2,761 | — | — | — | — | — | |||||||||||||||||||
Granted | (1,360 | ) | 272 | 13.86 | 1,088 | 15.73 | — | ||||||||||||||||||
Exercised/released | — | (565 | ) | 1.52 | (7 | ) | 12.27 | — | |||||||||||||||||
Forfeited | 502 | (355 | ) | 8 | (110 | ) | 15.57 | (37 | ) | ||||||||||||||||
Cancelled | — | — | — | — | — | 37 | |||||||||||||||||||
Expired | 43 | (43 | ) | 4.35 | — | — | — | ||||||||||||||||||
Balance at September 30, 2013 | 2,928 | 3,868 | $ | 5.07 | 991 | $ | 15.68 | — | |||||||||||||||||
Increase in shares reserved | 1,150 | — | — | — | — | — | |||||||||||||||||||
Granted(1) | (1,774 | ) | — | — | 1,774 | 9.89 | — | ||||||||||||||||||
Exercised/released | — | (1,689 | ) | 1.8 | (58 | ) | 16.83 | — | |||||||||||||||||
Forfeited(1) | 620 | (178 | ) | 11.29 | (442 | ) | 8.79 | — | |||||||||||||||||
Expired | 120 | (120 | ) | 10.6 | — | — | — | ||||||||||||||||||
Balance at September 30, 2014(1) | 3,044 | 1,881 | $ | 7.07 | 2,265 | $ | 12.46 | — | |||||||||||||||||
-1 | Includes shares issuable as performance-based restricted stock units | ||||||||||||||||||||||||
The following table summarizes certain information of the stock options as of September 30, 2014: | |||||||||||||||||||||||||
Options Outstanding | |||||||||||||||||||||||||
Number of | Weighted | Weighted Average | Aggregate | ||||||||||||||||||||||
Shares | Average | Remaining | Intrinsic Value | ||||||||||||||||||||||
Exercise Price | Contractual Term | ||||||||||||||||||||||||
(in Years) | |||||||||||||||||||||||||
(in thousands) | (in millions) | ||||||||||||||||||||||||
Vested and expected to vest | 1,881 | $ | 7.07 | 5.98 | $ | 7.1 | |||||||||||||||||||
Exercisable | 1,470 | $ | 5.8 | 5.45 | $ | 6.9 | |||||||||||||||||||
The following table summarizes certain information of the unvested awards as of September 30, 2014: | |||||||||||||||||||||||||
Stock | Restricted | ESPP | |||||||||||||||||||||||
Options | Stock | ||||||||||||||||||||||||
Total compensation cost for unvested (in millions) | $ | 1.4 | $ | 12.1 | $ | 0.3 | |||||||||||||||||||
Weighted-average period to recognize (in years) | 2 | 2.2 | 0.4 | ||||||||||||||||||||||
The following table summarizes certain information of the stock options for periods presented: | |||||||||||||||||||||||||
Fiscal Years Ended September 30, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
(in millions, expect grant date fair value) | |||||||||||||||||||||||||
Weighted average per share grant date fair value | $ | — | $ | 6.64 | $ | 4.5 | |||||||||||||||||||
Total intrinsic value of stock options exercised | $ | 13.8 | $ | 7 | $ | 3 | |||||||||||||||||||
Total fair value of shares vested | $ | 0.6 | $ | 0.6 | $ | 0.3 | |||||||||||||||||||
Stock-based Compensation | |||||||||||||||||||||||||
Stock-based compensation is as follows: | |||||||||||||||||||||||||
Fiscal Years Ended September 30, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Cost of revenues: | |||||||||||||||||||||||||
License and implementation | $ | 905 | $ | 591 | $ | 298 | |||||||||||||||||||
SaaS and maintenance | 749 | 622 | 561 | ||||||||||||||||||||||
Total stock-based compensation in cost of revenues | 1,654 | 1,213 | 859 | ||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||
Research and development | 1,278 | 747 | 297 | ||||||||||||||||||||||
Sales and marketing | 2,789 | 1,687 | 1,103 | ||||||||||||||||||||||
General and administrative | 4,228 | 1,209 | 262 | ||||||||||||||||||||||
Total stock-based compensation included in operating expenses | 8,295 | 3,643 | 1,662 | ||||||||||||||||||||||
Stock-based compensation included in operating loss | 9,949 | 4,856 | 2,521 | ||||||||||||||||||||||
Stock-based compensation capitalized as software development cost | 27 | 182 | 12 | ||||||||||||||||||||||
Total stock-based compensation | $ | 9,976 | $ | 5,038 | $ | 2,533 | |||||||||||||||||||
Valuation Assumptions | |||||||||||||||||||||||||
The following table presents the weighted-average assumptions used to estimate the fair value of stock options granted during the periods presented: | |||||||||||||||||||||||||
Fiscal Years Ended September 30, | |||||||||||||||||||||||||
2014(1) | 2013 | 2012 | |||||||||||||||||||||||
Common stock valuation | $ | — | $ | 13.95 | $ | 9.57 | |||||||||||||||||||
Risk-free interest rate | — | 1.1 | % | 0.97 | % | ||||||||||||||||||||
Dividend yield | — | — | — | ||||||||||||||||||||||
Volatility | — | 50 | % | 50 | % | ||||||||||||||||||||
Expected term (in years) | — | 6.08 | 6.01 | ||||||||||||||||||||||
(1) | No stock options were granted in the fiscal year ended September 30, 2014 | ||||||||||||||||||||||||
The expected terms of options granted were calculated using the simplified method, determined as the average of the contractual term and the vesting period. Estimated volatility is derived from the historical closing prices of common shares of similar entities whose share prices are publicly available for the expected term of the option. The risk-free interest rate is based on the U.S. treasury constant maturities in effect at the time of grant for the expected term of the option. We use historical data to estimate the number of future stock option forfeitures. | |||||||||||||||||||||||||
The following table presents the weighted-average assumptions used to estimate the fair value of rights to acquire stock granted under the Company’s Employee Stock Purchase Plan: | |||||||||||||||||||||||||
Fiscal Years Ended September 30, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Risk-free interest rate | 0.12 | % | 0.15 | % | — | % | |||||||||||||||||||
Dividend yield | — | — | — | ||||||||||||||||||||||
Volatility | 34 | % | 36 | % | — | % | |||||||||||||||||||
Expected term (in years) | 0.77 | 0.91 | — |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Income Taxes | ' | ||||||||||||
7. Income Taxes | |||||||||||||
The components of loss before income taxes are as follows: | |||||||||||||
Fiscal Years Ended September 30, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Domestic | $ | (21,279 | ) | $ | (1,340 | ) | $ | (6,114 | ) | ||||
Foreign | 782 | 853 | 722 | ||||||||||
Loss before taxes | $ | (20,497 | ) | $ | (487 | ) | $ | (5,392 | ) | ||||
The Company has made no provision for U.S. income taxes on approximately $2.1 million of cumulative undistributed earnings of certain foreign subsidiaries at September 30, 2014 because it is the Company’s intention to reinvest such earnings permanently. The determination of the amount of unrecognized deferred tax liability related to these earnings is not practicable. | |||||||||||||
The components of the provision for income taxes are as follows: | |||||||||||||
Fiscal Years Ended September 30, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Current | |||||||||||||
State | $ | 53 | $ | 54 | $ | 8 | |||||||
Foreign | 295 | 355 | 267 | ||||||||||
348 | 409 | 275 | |||||||||||
Deferred | |||||||||||||
Federal | 27 | 27 | 23 | ||||||||||
State | 9 | 3 | 3 | ||||||||||
36 | 30 | 26 | |||||||||||
Total provision for income taxes | $ | 384 | $ | 439 | $ | 301 | |||||||
Reconciliation of the statutory federal income tax to the Company’s effective tax: | |||||||||||||
Fiscal Years Ended September 30, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Tax at statutory federal rate | $ | (6,969 | ) | $ | (165 | ) | $ | (1,833 | ) | ||||
State tax, net of federal benefit | 53 | 54 | (214 | ) | |||||||||
Permanent differences | 727 | 1,053 | 87 | ||||||||||
Foreign tax rate differential | 29 | 65 | 22 | ||||||||||
Change in valuation allowance | 6,625 | 128 | 2,670 | ||||||||||
Research and development tax credits | (175 | ) | (726 | ) | (393 | ) | |||||||
Foreign tax credits | 35 | (27 | ) | — | |||||||||
Change in deferred tax liabilities | 36 | 30 | — | ||||||||||
Other | 23 | 27 | (38 | ) | |||||||||
Total provision for income taxes | $ | 384 | $ | 439 | $ | 301 | |||||||
The Company is subject to income taxes in U.S. federal and various state, local and foreign jurisdictions. The tax years ended from September 2000 to September 2014 remain open to examination due to the carryover of unused net operating losses or tax credits. | |||||||||||||
Deferred tax assets and liability consisted of the following: | |||||||||||||
As of September 30, | |||||||||||||
2014 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
Deferred tax assets: | |||||||||||||
Depreciation and amortization | $ | (425 | ) | $ | (1,147 | ) | |||||||
Accruals and other | 6,833 | 5,005 | |||||||||||
Deferred revenue | 3,045 | 877 | |||||||||||
NOL carry-forward | 18,917 | 16,416 | |||||||||||
Research and development tax credits | 6,315 | 5,744 | |||||||||||
Total deferred tax assets | 34,685 | 26,895 | |||||||||||
Valuation allowance | (34,685 | ) | (26,895 | ) | |||||||||
Net deferred tax assets | $ | — | $ | — | |||||||||
Deferred tax liabilities: | |||||||||||||
Intangibles | $ | 89 | $ | 56 | |||||||||
A valuation allowance is provided when it is more likely than not that the deferred tax assets will not be realized. The Company had established a valuation allowance to offset net deferred tax assets at September 30, 2014, 2013 and 2012 due to the uncertainty of realizing future tax benefits from its net operating loss carry-forwards and other deferred tax assets. The net change in the total valuation allowance for the year ended September 30, 2014 was an increase of approximately $7.8 million. | |||||||||||||
At September 30, 2014, the Company has federal and California net operating loss carry-forwards of approximately $58.5 million and $26.3 million, respectively. The federal and California net operating losses will begin expiring in 2021 and 2015, respectively. At September 30, 2014, the Company also had other state net operating loss carry-forwards of approximately $0.5 million which will begin expiring in 2016. At September 30, 2014, the Company had federal and state research credit carry forwards of approximately $4.3 million and $5.3 million, respectively. The federal research and development credit carry-forwards will begin expiring in 2020. The California tax credit can be carried forward indefinitely. | |||||||||||||
The Company is tracking its deferred tax assets attributable to stock option benefits in a separate memo account pursuant to ASC 718. Therefore, these amounts are not included in the Company’s gross or net deferred tax assets. As of September 30, 2014, 2013 and 2012, the Company had stock option benefits of approximately $3.1 million, $0.9 million and $0.5 million, respectively. Pursuant to ASC 718-740-25-10, the stock option benefits will be recorded to equity when they reduce cash taxes payable. | |||||||||||||
As of September 30, 2014, the Company had unrecognized tax benefits of approximately $2.5 million. It is unlikely that the amount of liability for unrecognized tax benefits will significantly change over the next twelve months. The Company’s policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. As of September 30, 2014, there was a liability of $0.3 million related to uncertain tax positions recorded on the financial statements | |||||||||||||
Internal Revenue Code section 382 places a limitation (the “Section 382 Limitation”) on the amount of taxable income can be offset by net operating (“NOL”) carry-forwards after a change in control (generally greater than 50% change in ownership) of a loss corporation. California has similar rules. The Company’s capitalization described herein may have resulted in such a change. Generally, after a control change, a loss corporation cannot deduct NOL carry-forwards in excess of the Section 382 limitation. A high level IRC Section 382 analysis has been performed as of September 30, 2013 and determined there would be no effect on the NOL Deferred Tax Asset if ownership changes occurred. | |||||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: | |||||||||||||
Fiscal Years Ended September 30, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Unrecognized tax benefits at the beginning of the period | $ | 1,979 | $ | 1,683 | $ | 1,438 | |||||||
Gross increase based on tax positions during the prior period | 18 | 78 | — | ||||||||||
Gross increase based on tax positions during the current period | 516 | 218 | 245 | ||||||||||
Unrecognized tax benefits at the end of the period | $ | 2,513 | $ | 1,979 | $ | 1,683 | |||||||
Net_Loss_Per_Share
Net Loss Per Share | 12 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Net Loss Per Share | ' | ||||||||||||
8. Net Loss Per Share | |||||||||||||
The following table sets forth the computation of the Company’s basic and diluted net income (loss) per share attributable to common stockholders under the two-class method during the period presented: | |||||||||||||
The following weighted average shares of common stock equivalents were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented because including them would have been antidilutive: | |||||||||||||
Fiscal Years Ended September 30, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands, except share and per share data) | |||||||||||||
Numerator: | |||||||||||||
Basic and diluted: | |||||||||||||
Net loss attributable to common stockholders | $ | (20,881 | ) | $ | (926 | ) | $ | (5,693 | ) | ||||
Denominator: | |||||||||||||
Basic and diluted: | |||||||||||||
Weighted Average Shares Used in Computing Net Loss per Share Attributable to Common Stockholders; basic and diluted | 24,399,387 | 15,979,481 | 7,815,258 | ||||||||||
Net Loss per Share Attributable to Common Stockholders; basic and diluted | $ | (0.86 | ) | $ | (0.06 | ) | $ | (0.73 | ) | ||||
The following weighted average shares of common stock equivalents were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented because including them would have been antidilutive: | |||||||||||||
Fiscal Years Ended September 30, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Stock options | 1,971,126 | 4,254,831 | 4,089,654 | ||||||||||
Restricted stock awards, performance-based restricted stock units and restricted stock units | 1,016,181 | 620,528 | 93,807 | ||||||||||
Preferred stock warrant | — | 44,398 | 86,655 | ||||||||||
ESPP | 22,588 | 9,313 | — |
Geographic_Information
Geographic Information | 12 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Segment Reporting [Abstract] | ' | ||||||||
Geographic Information | ' | ||||||||
9. Geographic Information | |||||||||
The Company has one operating segment with one business activity—developing and monetizing revenue management solutions. | |||||||||
Revenues from External Customers | |||||||||
Revenues from customers outside the United States were 11%, 14% and 9% of total revenues for the fiscal years ended September 30, 2014, 2013 and 2012, respectively. | |||||||||
Long-Lived Assets | |||||||||
The following table sets forth the Company’s property and equipment, net by geographic region: | |||||||||
As of September 30, | |||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
United States | $ | 5,858 | $ | 6,811 | |||||
Other | 1,031 | 1,060 | |||||||
Total property and equipment, net | $ | 6,889 | $ | 7,871 | |||||
Restructuring_Charges
Restructuring Charges | 12 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Restructuring and Related Activities [Abstract] | ' | ||||||||
Restructuring Charges | ' | ||||||||
10. Restructuring Charges | |||||||||
On September 30, 2013, the Company announced a plan to align its workforce with the Company’s strategic initiatives that included a reduction in the size of the Company’s workforce, primarily in professional services. The Company recorded a workforce reduction restructuring charge of $26,000 and $1.2 million in fiscal years 2014 and 2013, respectively, primarily related to employee separation packages, which included severance pay, benefits continuation and outplacement costs. As of September 30, 2014 the Company had completed its restructuring activities. | |||||||||
A roll-forward of the restructuring activity is summarized below: | |||||||||
Fiscal Years Ended | |||||||||
September 30, | |||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Opening balance | $ | 1,182 | $ | — | |||||
Amounts accrued | 26 | 1,215 | |||||||
Cash payments | (1,208 | ) | (33 | ) | |||||
Balance of accrual | $ | — | $ | 1,182 | |||||
Acquisition
Acquisition | 12 Months Ended | ||||
Sep. 30, 2014 | |||||
Business Combinations [Abstract] | ' | ||||
Acquisition | ' | ||||
11. Acquisition | |||||
On January 18, 2012, the Company acquired certain assets of LeapFrogRx, Inc. (LeapFrogRx), a privately held cloud-based analytics solution provider for the pharmaceutical industry. The Company paid total purchase consideration of $3.0 million in cash. | |||||
The purchase price was allocated to tangible and identifiable intangible assets acquired and liabilities assumed based on their respective fair values on the date of acquisition. The purchase accounting allocation resulted in intangible assets of $1.5 million and goodwill of $1.2 million. Intangible assets acquired included developed technology, backlog, non-competition agreements and customer relationships, and are being amortized on a straight-line basis over their estimated useful lives of 3 to 5 years. The key factors attributable to the creation of goodwill by the transaction are synergies in skill-sets, operations, customer base and organizational cultures. | |||||
The allocation of the purchase price was as follows: | |||||
Amount | |||||
(in thousands) | |||||
Tangible assets | $ | 685 | |||
Intangible assets: | |||||
Developed technology | 1,124 | ||||
Backlog | 100 | ||||
Non-competition agreements | 100 | ||||
Customer relationships | 158 | ||||
Liabilities assumed | (1,024 | ) | |||
Payments due from seller | 667 | ||||
Goodwill | 1,190 | ||||
Total purchase price | $ | 3,000 | |||
Retention-Related Payments | |||||
In addition to the total purchase consideration of $3.0 million, the Company is contingently obligated to make additional payments, as described below, which are expected to be incurred through January 2015. These cash payments are subject to future employment and are considered compensatory in nature and are being recognized as compensation expense. | |||||
The Company paid $1.0 million each in January 2014 and 2013 and $3.0 million in July 2012. A future payment of $1.0 million is due January, 2015. Due to the employment service criteria associated with these payments, expenses are being recognized ratably over the term of each payment beginning from the date of the acquisition. The Company recognized compensation expenses of $0.5 million, $1.1 million and $4.3 million during the fiscal year ended September 30, 2014, 2013 and 2012, respectively. | |||||
In accordance with the terms of the purchase consideration, up to $1.0 million of earn-out consideration is payable each year based on revenue recognized during the twelve-month period ending January 2013 and the twelve-month period ending January 2014. Due to the employment service criteria associated with these payments, expenses are being recognized ratably over the term of each payment beginning from the date of acquisition. The Company recognized an expense of $0.1 million, a credit of $0.4 million and an expense of $0.4 million during the fiscal years ended September 30, 2014, 2013 and 2012, respectively. The Company offered one-time retention bonus amounts to the former employees of LeapFrogRx, totaling $0.3 million payable in January 2013 and guaranteed bonus payments totaling $0.4 million for the fiscal year ended September 30, 2012, subject to continuous employment. In addition, the Company issued 200,000 shares of restricted stock to certain employees of LeapFrogRx (see Note 6). | |||||
Included in the Company’s consolidated statement of operations for the fiscal year ended September 30, 2012, were revenues of approximately $6.0 million from LeapFrogRx since its acquisition in January 2012. | |||||
The Company did not make any acquisitions during fiscal years 2013 and 2014. |
Convertible_Preferred_Stock
Convertible Preferred Stock | 12 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Text Block [Abstract] | ' | ||||||||
Convertible Preferred Stock | ' | ||||||||
12. Convertible Preferred Stock | |||||||||
Upon the closing of the IPO, all outstanding shares of convertible preferred stock were converted into shares of common stock, and an outstanding warrant to purchase convertible preferred stock automatically converted into a warrant to purchase 86,655 shares of common stock. | |||||||||
Convertible Preferred Stock Warrant | |||||||||
On October 19, 2010, in connection with a loan agreement, the Company issued a warrant to purchase 86,655 shares of the Company’s Series C Preferred Stock at an exercise price of $3.462 per share. The warrant is exercisable in whole or in part at any time on or before the expiration date of the 10-year anniversary from the issuance date. Upon the closing of the IPO, this warrant automatically converted into a warrant to purchase the same number of shares of common stock at the same exercise price per share. | |||||||||
Prior to the closing of the IPO, the Company re-measured the fair value of the preferred stock warrant at each balance sheet date. The fair value of the outstanding warrant was classified within non-current liabilities on the consolidated balance sheets, and any changes in fair value were recognized as a component of other expenses, net in the consolidated statements of operations. | |||||||||
Upon the closing of the IPO, the warrant was reclassified from liability to equity and the Company will no longer record any mark-to-market changes in the fair value of the warrant. The Company performed the final re-measurement of the warrant on March 25, 2013, the closing date of the IPO, and recorded an expense of $0.7 million arising from the revaluation during the three months ended March 31, 2013. In May 2013, the warrant was converted into 71,847 shares of common stock, net of the warrant price. | |||||||||
The fair value of the outstanding warrant was determined using the Black-Scholes-Merton option-pricing model. The fair value of the warrant was estimated using the following assumptions for the periods presented below. | |||||||||
Fiscal Years Ended September 30, | |||||||||
2013 | 2012 | ||||||||
Risk-free interest rate | 0.92 | % | 0.83 | % | |||||
Dividend yield | — | — | |||||||
Volatility | 45 | % | 53 | % | |||||
Expected term (in years) | 5.92 | 8.05 | |||||||
The change in the fair value of the convertible preferred stock warrant liability is summarized below: | |||||||||
Fiscal Years Ended September 30, | |||||||||
2013 | 2012 | ||||||||
Opening balance | $ | 748 | $ | 403 | |||||
Issuance of convertible preferred stock warrant | — | — | |||||||
Increase in fair value | 671 | 345 | |||||||
Reclassification of warrant liability to additional paid-in capital | (1,419 | ) | — | ||||||
Closing balance | $ | — | $ | 748 | |||||
Schedule_IIValuation_and_quali
Schedule II-Valuation and qualifying accounts | 12 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | ' | ||||||||||||||||
Schedule II-Valuation and qualifying accounts | ' | ||||||||||||||||
Schedule II—Valuation and qualifying accounts | |||||||||||||||||
The table below presents the changes in the allowance for doubtful receivables and valuation allowance for deferred tax assets for the fiscal years ended September 30, 2014, 2013, and 2012, respectively. | |||||||||||||||||
Description | Balance at | Additions | Write-offs | Balance at | |||||||||||||
Beginning of | Charged to | and | End of | ||||||||||||||
Period | Costs and | Deductions | Period | ||||||||||||||
Expenses | |||||||||||||||||
Allowance for doubtful receivables | |||||||||||||||||
Year Ended September 30, 2014 | $ | 46 | — | 46 | $ | — | |||||||||||
Year Ended September 30, 2013 | $ | 55 | 48 | 57 | $ | 46 | |||||||||||
Year Ended September 30, 2012 | $ | 10 | 55 | 10 | $ | 55 | |||||||||||
Valuation allowance for deferred tax assets | |||||||||||||||||
Year Ended September 30, 2014 | $ | 26,895 | 7,790 | — | $ | 34,685 | |||||||||||
Year Ended September 30, 2013 | $ | 27,515 | — | 620 | $ | 26,895 | |||||||||||
Year Ended September 30, 2012 | $ | 24,845 | 2,670 | — | $ | 27,515 |
The_Company_Policies
The Company (Policies) | 12 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||
Fiscal Year | ' | ||||||||||||
Fiscal Year | |||||||||||||
The Company’s fiscal year ends on September 30. References to fiscal year 2014, for example, refer to the fiscal year ended September 30, 2014. | |||||||||||||
Basis for Presentation | ' | ||||||||||||
Basis for Presentation | |||||||||||||
The Company’s consolidated financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) and include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated upon consolidation. The Company has evaluated subsequent events through the date that the financial statements were issued. | |||||||||||||
Use of Estimates | ' | ||||||||||||
Use of Estimates | |||||||||||||
The preparation of the accompanying consolidated financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of revenues and expenses during the reporting periods. Significant items subject to such estimates include revenue recognition, legal contingencies, income taxes, stock-based compensation, software development costs and valuation of intangibles. These estimates and assumptions are based on management’s best estimates and judgment. Management regularly evaluates its estimates and assumptions using historical experience and other factors; however, actual results could differ significantly from these estimates. | |||||||||||||
Revenue Recognition | ' | ||||||||||||
Revenue Recognition | |||||||||||||
Revenues are comprised of license and implementation revenues and Software as a Service (SaaS) and maintenance revenues. | |||||||||||||
License and Implementation | |||||||||||||
License and implementation revenues include revenues from the sale of perpetual software licenses for the Company’s solutions and related implementation services. Based on the nature and scope of the implementation services, the Company has concluded that generally the implementation services are essential to its customers’ usability of its on premise solutions, and therefore, the Company recognizes revenues from the sale of software licenses for its on premise solutions and related implementation services on a percentage-of-completion basis over the expected implementation period. The Company estimates the length of this period based on a number of factors, including the number of licensed applications and the scope and complexity of the customer’s deployment requirements. The percentage-of-completion computation is measured by the hours expended on the implementation of the Company’s software solutions during the reporting period as a percentage of the total hours estimated to be necessary to complete the implementation of the Company’s software solutions. | |||||||||||||
SaaS and Maintenance | |||||||||||||
SaaS and maintenance revenues primarily include subscription and related implementation fees from customers accessing the Company’s cloud-based solutions and revenues associated with maintenance and support contracts from customers using on premise solutions. Also included in SaaS and maintenance revenues are other revenues, including revenues related to application support, training and customer-reimbursed expenses. | |||||||||||||
SaaS arrangements include multiple elements, comprised of subscription fees and related implementation services. In SaaS arrangements where implementation services are complex and do not have a stand-alone value to the customers, the Company considers the entire arrangement consideration, including subscription fees and related implementation services, as a single unit of accounting in accordance with the provisions of Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) No. 2009-13, Revenue Recognition (Accounting Standards Codification (ASC) Topic 605)—Multiple-Deliverable Revenue Arrangements. In such arrangements, the Company recognizes SaaS revenues ratably beginning the day the customer is provided access to the subscription service through the longer of the initial contractual period or term of the expected customer relationship. | |||||||||||||
In SaaS arrangements where subscription fees and implementation services have a standalone value, the Company allocates revenue to each element in the arrangement based on a selling price hierarchy. The selling price for a deliverable is based on its vendor-specific objective evidence (VSOE), if available, third-party evidence (TPE), if VSOE is not available, or best estimated selling price (BESP), if neither VSOE nor TPE is available. As the Company has been unable to establish VSOE or TPE for the elements of its SaaS arrangements, the Company establishes the BESP for each element by considering company-specific factors such as existing pricing and discounting. The consideration allocated to subscription fees is recognized as revenue ratably over the contract period. The consideration allocated to implementation services is recognized as revenue as services are performed. The total arrangement fee for a multiple element arrangement is allocated based on the relative BESP of each element. | |||||||||||||
Maintenance and support revenues include post-contract customer support and the right to unspecified software updates and enhancements on a when and if available basis. Application support revenues include supporting, managing and administering our software solutions, and providing additional end user support. Maintenance and support revenues and application support revenues are recognized ratably over the period in which the services are provided. The revenues from training and customer-reimbursed expenses are recognized as the Company delivers these services. | |||||||||||||
Revenue Recognition | |||||||||||||
The Company commences revenue recognition when all of the following conditions are satisfied: persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the price is fixed or determinable and collection is probable. However, determining whether and when some of these criteria have been satisfied often involves assumptions and judgments that can have a significant impact on the timing and amount of revenues the Company reports. | |||||||||||||
For multiple software element arrangements, the Company allocates the sales price among each of the deliverables using the residual method, under which revenue is allocated to undelivered elements based on their VSOE of fair value. VSOE is the price charged when an element is sold separately or a price set by management with the relevant authority. The Company has established VSOE for maintenance and support and training. | |||||||||||||
The Company does not offer any contractual rights of return, rebates or price protection. The Company’s implementation projects generally have a term ranging from a few months to three years and may be terminated by the customer at any time. Should a loss be anticipated on a contract, the full amount of the loss is recorded when the loss is determinable. The Company updates its estimates regarding the completion of implementations based on changes to the expected contract value and revisions to its estimates of time required to complete each implementation project. Amounts that may be payable to customers to settle customer disputes are recorded as a reduction in revenues or reclassified from deferred revenue to customer payables in accrued liabilities and other long-term liabilities. | |||||||||||||
Costs of Revenues | ' | ||||||||||||
Costs of Revenues | |||||||||||||
Cost of license and implementation revenues consists primarily of personnel-related costs including salary, bonus, stock-based compensation and overhead allocation as well as third-party contractors, royalty fees paid to third parties for the right to intellectual property and travel-related expenses. Cost of SaaS and maintenance revenues consists primarily of personnel-related costs including salary, bonus, stock-based compensation and overhead allocation as well as reimbursable expenses, third-party contractors, amortization of costs recorded on internally developed software and data center-related expenses. | |||||||||||||
Deferred cost of implementation services consists of costs related to implementation services that were provided to the customer but the revenues for the services have not yet been recognized, provided however that the customer is contractually required to pay for the services. These costs primarily consist of personnel costs. As of September 30, 2014 and 2013, the deferred cost of implementation services totaled $0.6 million and $0.8 million, respectively. | |||||||||||||
Foreign Currency Translation | ' | ||||||||||||
Foreign Currency Translation | |||||||||||||
The functional currency of the Company’s foreign subsidiaries is their respective local currency. The Company translates all assets and liabilities of foreign subsidiaries to U.S. dollars at the current exchange rate as of the applicable consolidated balance sheet date. Revenues and expenses are translated at the average exchange rate prevailing during the period. The effects of foreign currency translations are recorded in accumulated other comprehensive loss as a separate component of stockholders’ equity (deficit) in the accompanying consolidated statements of stockholders’ equity. Realized gains and losses from foreign currency transactions are included in other expenses, net in the consolidated statements of operations and have not been material for all periods presented. | |||||||||||||
Cash and Cash Equivalents | ' | ||||||||||||
Cash and Cash Equivalents | |||||||||||||
The Company considers all highly liquid investments with an original or remaining maturity of three months at date of purchase to be cash equivalents. The Company’s cash equivalents are comprised of U.S. treasury bills and money market funds, and are maintained with financial institutions with high credit ratings. The deposits in money market funds are not federally insured. | |||||||||||||
Concentration of Credit Risk and Significant Customers | ' | ||||||||||||
Concentration of Credit Risk and Significant Customers | |||||||||||||
Credit risk is the risk of loss from amounts owed by financial counterparties. Credit risk can occur at multiple levels; as a result of broad economic conditions, challenges within specific sectors of the economy, or from issues affecting individual companies. Financial instruments that potentially subject the Company to credit risk consist of cash equivalents and accounts receivable. | |||||||||||||
The Company maintains cash and cash equivalents with major financial institutions. The Company’s cash and cash equivalents consist of bank deposits held with banks, U.S. treasury bills and money market funds that, at times, exceed federally insured limits. The Company limits its credit risk by dealing with counterparties that are considered to be of high credit quality and by performing periodic evaluations of its investments and of the relative credit standing of these financial institutions. | |||||||||||||
In the normal course of business, the Company is exposed to credit risk from its customers. To reduce credit risk, the Company performs ongoing credit evaluations of its customers. | |||||||||||||
The following customers comprised 10% or more of the Company’s accounts receivable at September 30, 2014 and 2013 and of the Company’s total revenues for the fiscal years ended September 30, 2014, 2013 and 2012, respectively: | |||||||||||||
As of September 30, | |||||||||||||
2014 | 2013 | ||||||||||||
Accounts Receivable | |||||||||||||
Company A | 12 | % | 21 | % | |||||||||
Company B | * | 14 | |||||||||||
Company C | * | 10 | |||||||||||
Fiscal | |||||||||||||
Years Ended September 30, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Revenue | |||||||||||||
Company A | * | 12 | % | 14 | % | ||||||||
Company B | * | * | 10 | % | |||||||||
Company C | 15 | % | 12 | % | * | ||||||||
* | Less than 10% | ||||||||||||
Accounts Receivable and Allowance for Doubtful Accounts | ' | ||||||||||||
Accounts Receivable and Allowance for Doubtful Accounts | |||||||||||||
Accounts receivable are recorded at the invoiced amount, net of allowances for doubtful accounts. The allowance for doubtful accounts is based on management’s assessment of the collectability of accounts. The Company regularly reviews the adequacy of this allowance for doubtful accounts by considering historical experience, the age of the accounts receivable balances, the credit quality of the customers, current economic conditions, and other factors that may affect customers’ ability to pay to determine whether a specific allowance is appropriate. Accounts receivable deemed uncollectable are charged against the allowance for doubtful accounts when identified. | |||||||||||||
Revenue that has been recognized, but for which the Company has not invoiced the customer, amounting to $0.8 million and $1.6 million is recorded as unbilled receivables and is included in accounts receivables in the consolidated balance sheets as of September 30, 2014 and 2013, respectively. Invoices that have been issued before revenue has been recognized are recorded as deferred revenue in the consolidated balance sheets. | |||||||||||||
Property and Equipment, Net | ' | ||||||||||||
Property and Equipment, Net | |||||||||||||
Property and equipment are recorded at cost less accumulated depreciation. Depreciation of property and equipment is calculated using straight-line basis over the estimated useful lives of the assets. Leasehold improvements are amortized on a straight-line basis over the shorter of lease term or estimated useful lives of the assets. | |||||||||||||
The estimated useful lives of property and equipment are as follows: | |||||||||||||
Computer software and equipment | 2-5 years | ||||||||||||
Furniture and fixtures | 2-5 years | ||||||||||||
Leasehold improvements | Shorter of the lease term or estimated useful life | ||||||||||||
Software development costs | 3 years | ||||||||||||
Costs of maintenance and repairs that do not improve or extend the lives of the respective assets are charged to expense as incurred. Upon retirement or sale of property and equipment, the cost and related accumulated depreciation are removed from the balance sheet and the resulting gain or loss is reflected in statement of operations. | |||||||||||||
Capital Leases | ' | ||||||||||||
Capital Leases | |||||||||||||
Computer equipment leases are capitalized when the Company assumes substantially all risks and benefits of ownership of the computer equipment. Accordingly, the Company records the asset and obligation at an amount equal to the lesser of the fair market value of the computer equipment or the net present value of the minimum lease payments at the inception of the lease. Leased computer equipment is depreciated using the straight-line basis over the shorter of its estimated useful life or the lease term. | |||||||||||||
Long-lived Assets | ' | ||||||||||||
Long-lived Assets | |||||||||||||
The Company continually monitors events and changes in circumstances that could indicate that carrying amounts of its long-lived assets, including property and equipment and intangible assets may not be recoverable. When such events or changes in circumstances occur, the Company assesses the recoverability of long-lived assets by determining whether the carrying value of such assets will be recovered through their undiscounted expected future cash flows. If the future undiscounted cash flows are less than the carrying amount of these assets, the Company recognizes an impairment loss based on the excess of the carrying amount over the fair value of the assets. The Company did not recognize any impairment charges on its long-lived assets during any periods presented. | |||||||||||||
Goodwill and Other Intangible Assets | ' | ||||||||||||
Goodwill and Other Intangible Assets | |||||||||||||
The Company records goodwill when consideration paid in a purchase acquisition exceeds the fair value of the net tangible assets and the identified intangible assets acquired. Goodwill is not amortized, but rather is tested for impairment annually or more frequently if facts and circumstances warrant a review. The Company has determined that there is a single reporting unit for the purpose of goodwill impairment tests. The Company performs a goodwill impairment test annually during the fourth quarter of its fiscal year and more frequently if an event or circumstance indicates that impairment may have occurred. Such events or circumstances may include significant adverse changes in the general business environment, among other things. If the conclusion of a qualitative assessment is that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the Company estimates the fair value of the reporting unit and compares this amount to the carrying value of the reporting unit. If the Company determines that the carrying value of the reporting unit exceeds its fair value, an impairment charge would be required. During the fourth quarter of fiscal 2014, the Company completed its annual impairment test of goodwill. Based upon the qualitative assessment, the Company determined that its goodwill was not impaired as of September 30, 2014. There are no impairment charges related to purchased intangible assets during the fiscal year 2014 and 2013. Other intangible assets, consisting of developed technology, backlog, non-competition agreements and customer relationships, are stated at fair value less accumulated amortization. All intangible assets have been determined to have finite lives and are amortized on a straight-line basis over their estimated remaining economic lives, ranging from three to five years. Amortization expense related to developed technology is included in cost of SaaS and maintenance revenue while amortization expense related to backlog, non-competition agreements and customer relationships is included in sales and marketing expense. | |||||||||||||
Fair Value of Financial Instruments | ' | ||||||||||||
Fair Value of Financial Instruments | |||||||||||||
The financial instruments of the Company consist primarily of cash and cash equivalents, accounts receivable, accounts payable and certain accrued liabilities. The Company regularly reviews its financial instruments portfolio to identify and evaluate such instruments that have indications of possible impairment. When there is no readily available market data, fair value estimates are made by the Company, which involves some level of management estimation and judgment and may not necessarily represent the amounts that could be realized in a current or future sale of these assets. | |||||||||||||
Based on borrowing rates currently available to the Company for financing obligations with similar terms and considering the Company’s credit risks, the carrying value of the financing obligation approximates fair value. | |||||||||||||
Fair value is defined as the exchange price that would be received for an asset or an exit price paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The current accounting guidance for fair value instruments defines a three-level valuation hierarchy for disclosures as follows: | |||||||||||||
Level 1—Unadjusted quoted prices in active markets for identical assets or liabilities; | |||||||||||||
Level 2—Input other than quoted prices included in Level I that are observable, unadjusted quoted prices in markets that are not active, or other inputs for similar assets and liabilities that are observable or can be corroborated by observable market data; and | |||||||||||||
Level 3—Unobservable inputs that are supported by little or no market activity, which requires the Company to develop its own models and involves some level of management estimation and judgment. | |||||||||||||
The Company’s Level 1 assets consist of U.S. treasury bills and money market funds. These instruments are classified within Level 1 of the fair value hierarchy because they are valued based on quoted market prices in active markets. | |||||||||||||
There were no Level 2 or 3 securities as of September 30, 2014 or 2013, respectively. | |||||||||||||
Research and Development and Capitalization of Software Development Costs | ' | ||||||||||||
Research and Development and Capitalization of Software Development Costs | |||||||||||||
The Company generally expenses costs related to research and development, including those activities related to software solutions to be sold, leased or otherwise marketed. As such development work is essentially completed concurrently with the establishment of technological feasibility, and accordingly, the Company has not capitalized any such development costs. | |||||||||||||
The Company capitalizes certain software development costs incurred in connection with its cloud-based software platform for internal use. The Company capitalizes software development costs when application development begins, it is probable that the project will be completed, and the software will be used as intended. When development becomes substantially complete and ready for its intended use, such capitalized costs are amortized on a straight-line basis over the estimated useful life of the related asset, which is generally three years. Costs associated with preliminary project stage activities, training, maintenance and all post implementation stage activities are expensed as incurred. The Company capitalized software development costs of $0.4 million and $3.9 million during the fiscal years ended September 30, 2014 and 2013, respectively. | |||||||||||||
Sales Commissions | ' | ||||||||||||
Sales Commissions | |||||||||||||
Sales commissions are recognized as an expense upon booking the contract. Substantially all of the compensation due to the sales force is earned at the time of the contract signing, with limited ability to recover any commissions paid if a contract is terminated. | |||||||||||||
Advertising and Promotion Costs | ' | ||||||||||||
Advertising and Promotion Costs | |||||||||||||
Advertising and promotion costs are expensed as incurred. The Company incurred no advertising and promotion costs during the fiscal years ended September 30, 2014 and 2012. The Company incurred $1,000 of advertising and promotion costs during the fiscal year ended September 30, 2013. | |||||||||||||
Employee Benefit Plan | ' | ||||||||||||
Employee Benefit Plan | |||||||||||||
The Company has a savings plan that qualifies under Section 401(k) of the Internal Revenue Code (IRC). There were no matching or discretionary employer contributions made to this plan during any periods presented. | |||||||||||||
Stock-Based Compensation | ' | ||||||||||||
Stock-Based Compensation | |||||||||||||
Stock-based compensation expense for all share-based payment awards granted to our employees and directors including stock options, employee stock purchase plan, performance-based restricted stock units and restricted stock is measured and recognized based on the estimated fair value of the award on the grant date. The Company uses the Black-Scholes-Merton valuation model to estimate the fair value of stock options and ESPP shares. For restricted stock awards and units, fair value is based on the closing price of our common stock on the grant date. The fair value is recognized as an expense, net of estimated forfeitures on a straight-line basis, over the requisite service period, which is generally the vesting period of the respective award. In addition, the Company uses the Monte-Carlo simulation option-pricing model to determine the fair value of performance-based restricted stock units that contain a market condition such as those granted to the Company’s three senior executives and approved by the Compensation Committee of the Board on December 6, 2013. The Monte-Carlo simulation option-pricing model takes into account the same input assumptions as the Black-Scholes-Merton model; however, it also further incorporates into the fair-value determination, the possibility that the market condition may not be satisfied. The determination of the fair value of performance-based restricted stock units using an option-pricing model is affected by the Company’s stock price and its performance in relation to its peer group. The compensation costs related to performance-based restricted stock units with a market-based condition are recognized regardless of whether the market condition is satisfied, provided that the requisite service has been provided. The models requires the use of subjective assumptions to determine the fair value of stock option awards, including the expected stock price volatility over the expected term of the options, stock option exercise and cancellation behaviors, risk-free interest rates and expected dividends. The Company periodically estimates the portion of awards which will ultimately vest based on its historical forfeiture experience. These estimates are adjusted over the requisite service period to the extent that actual forfeitures differ, or are expected to differ, from the prior estimates. | |||||||||||||
Income Taxes | ' | ||||||||||||
Income Taxes | |||||||||||||
The Company accounts for income taxes in accordance with the FASB ASC No. 740—Accounting for Income Taxes (ASC 740). The Company makes certain estimates and judgments in determining income tax expense for financial statement purposes. These estimates and judgments occur in the calculation of tax credits, tax benefits and deductions and in the calculation of certain tax assets and liabilities, which arise from differences in the timing of recognition of revenue and expense for tax and financial statement purposes. Significant changes to these estimates may result in an increase or decrease to our tax provision in the subsequent period when such a change in estimate occurs. | |||||||||||||
The Company regularly assesses the likelihood that its deferred income tax assets will be realized from future taxable income based on the realization criteria set forth in ASC 740. To the extent that the Company believes any amounts are not more likely than not to be realized, the Company records a valuation allowance to reduce the deferred income tax assets. In assessing the need for a valuation allowance, the Company considers all available evidence, including past operating results, estimates of future taxable income and the feasibility of tax planning strategies. In the event the Company determines that all or part of the net deferred tax assets are not realizable in the future, an adjustment to the valuation allowance would be charged to earnings in the period such determination is made. Similarly, if the Company subsequently realizes deferred income tax assets that were previously determined to be unrealizable, the respective valuation allowance would be reversed, resulting in an adjustment to earnings in the period such determination is made. | |||||||||||||
As of September 30, 2014 and 2013, the Company had gross deferred income tax assets, related primarily to net operating loss (NOL) carry forwards, deferred revenues, accruals and reserves that are not currently deductible and depreciable and amortizable items of $34.7 million and $26.9 million, respectively, which have been fully offset by a valuation allowance. Utilization of these net loss carry forwards is subject to the limitations of IRC Section 382. During the year ended September 30, 2013, the Company undertook a study of NOL carry forwards and determined that most of its NOL carry forwards are not subject to the limitations of IRC Section 382. However, in the future, some portion or all of these carry forwards may not be available to offset any future taxable income. | |||||||||||||
Segment | ' | ||||||||||||
Segment | |||||||||||||
The Company has one operating segment with one business activity, developing and monetizing revenue management solutions. The Company’s Chief Operating Decision Maker (CODM) is its Chief Executive Officer, who manages operations on a consolidated basis for purposes of allocating resources. When evaluating performance and allocating resources, the CODM reviews financial information presented on a consolidated basis, accompanied by disaggregated information for the business operations of revenue management solutions. | |||||||||||||
Net (Loss) Income per Share | ' | ||||||||||||
Net (Loss) Income per Share | |||||||||||||
The Company’s basic net (loss) income per share attributable to common stockholders is calculated by dividing the net (loss) income attributable to common stockholders by the weighted average number of shares of common stock outstanding for the period, which excludes unvested restricted stock awards. The diluted net (loss) income per share attributable to common stockholders is computed by giving effect to all potentially dilutive common stock equivalents outstanding for the period. For purposes of this calculation, convertible preferred stock, warrants outstanding, options to purchase common stock, unvested restricted stock awards and unvested restricted stock units are considered to be common stock equivalents. | |||||||||||||
Since the Company has issued securities other than common stock that participate in dividends with the common stock, or participating securities, it is required to apply the two-class method to compute the net (loss) income per share attributable to common stockholders. The Company determined that as of the end of the fiscal year 2012, it had participating securities outstanding in the form of noncumulative convertible preferred stock that share in dividends with common stock. The two-class method requires that the Company calculate the net (loss) income per share using net income attributable to the common stockholders which will differ from the Company’s net income. Net (loss) income attributable to the common stockholders is generally equal to the net (loss) income less assumed periodic preferred stock dividends with any remaining earnings, after deducting assumed dividends, to be allocated on a pro rata basis between the outstanding common and preferred stock as of the end of each period. | |||||||||||||
Comprehensive (Loss) Income | ' | ||||||||||||
Comprehensive (Loss) Income | |||||||||||||
Comprehensive income (loss) income is comprised of net income (loss) income and other comprehensive (loss) income. Other comprehensive (loss) income primarily includes foreign currency translation adjustments. | |||||||||||||
Recently Adopted Accounting Pronouncements | ' | ||||||||||||
Recently Adopted Accounting Pronouncements | |||||||||||||
In December 2011, the FASB issued ASU No. 2011-11—Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities requiring enhanced disclosures about certain financial instruments and derivative instruments that are offset in the consolidated balance sheets or that are subject to enforceable master netting arrangements or similar agreements. This update is effective for fiscal years beginning on or after January 1, 2013. The Company adopted this update in the first quarter of fiscal year 2014. | |||||||||||||
New Accounting Pronouncements | ' | ||||||||||||
New Accounting Pronouncements | |||||||||||||
In August, 2014 the FASB issued ASU No. 2014-15—Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. The update provides guidance on evaluating whether there is substantial doubt about the organization’s ability to continue as a going concern and how underlying conditions should be disclosed in the footnotes to the financial statements. The update is effective for the fiscal year beginning after December 15, 2016, with early application permitted. The Company does not anticipate that adoption of this update will have a material impact on its consolidated financial statements. | |||||||||||||
In June 2014, the FASB issued ASU No. 2014-12—Compensation—Stock Compensation: Accounting for Share-Based Payments When the Terms of an Award Provide that a Performance Target Could be Achieved after the Requisite Service Period (Topic 718). This update requires that a performance target which affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant date fair value of the award. This update further clarifies that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the periods for which the requisite service has already been rendered. The Company does not anticipate that the adoption of this update will have a material impact on its consolidated financial statements. | |||||||||||||
In May 2014, the FASB issued ASU No. 2014-09—Revenue from Contracts with Customers (Topic 606). This update outlines a new, single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. This new revenue recognition model provides a five-step analysis in determining when and how revenue is recognized. The new model will require revenue recognition to depict the transfer of promised goods or services to customers in an amount that reflects the consideration a company expects to receive in exchange for those goods or services. This update is effective for fiscal years and interim periods within those years beginning after December 15, 2016. The Company is currently assessing the impact that adopting this update will have on its consolidated financial statements and footnote disclosures. | |||||||||||||
In April 2014, the FASB ASU No. 2014-08—Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. This update changes the criteria for reporting discontinued operations. The update expands the definition of discontinued operations to include the sale or disposal of a component of a Company, if the sale or disposal creates a strategic shift or major effect in the Company’s operations and financial results. A component of a Company includes any segment, reporting unit, subsidiary, or asset group. The update requires expanded disclosures about a disposal of a component. The update is effective beginning January 1, 2015 with early adoption permitted for disposals that have not been reported in previously-issued financial statements. The impact to the Company will be dependent on any transaction that is within the scope of this update. | |||||||||||||
In July 2013, the FASB issued ASU No. 2013-11—Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. This update generally requires, with some exceptions, an entity to present its unrecognized tax benefits as it relates to its NOL carry forwards, similar tax losses, or tax credit carry forwards, as a reduction of deferred tax assets when settlement in this regard is available under the tax law of the applicable taxing jurisdiction as of the balance sheet reporting date. This update is effective for fiscal years beginning after December 15, 2013 with retrospective application permitted. This update requires a change in financial statement presentation. The Company does not anticipate that the adoption of this update will have a material impact on its consolidated financial statements. | |||||||||||||
In March 2013, the FASB issued ASU No. 2013-05—Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity (Topic 830) to resolve the diversity in practice regarding the release into net income of the cumulative translation adjustment upon derecognition of a subsidiary or group of assets within a foreign entity. This update will be effective for fiscal years beginning after December 15, 2013. The impact to the Company will be dependent on any transaction that is within the scope of the new guidance. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies and Estimates (Tables) | 12 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||
Summary of Accounts Receivable and Revenues of Customers Comprising 10% or More | ' | ||||||||||||
The following customers comprised 10% or more of the Company’s accounts receivable at September 30, 2014 and 2013 and of the Company’s total revenues for the fiscal years ended September 30, 2014, 2013 and 2012, respectively: | |||||||||||||
As of September 30, | |||||||||||||
2014 | 2013 | ||||||||||||
Accounts Receivable | |||||||||||||
Company A | 12 | % | 21 | % | |||||||||
Company B | * | 14 | |||||||||||
Company C | * | 10 | |||||||||||
Fiscal | |||||||||||||
Years Ended September 30, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Revenue | |||||||||||||
Company A | * | 12 | % | 14 | % | ||||||||
Company B | * | * | 10 | % | |||||||||
Company C | 15 | % | 12 | % | * | ||||||||
* | Less than 10% | ||||||||||||
Estimated Useful Lives of Property and Equipment | ' | ||||||||||||
The estimated useful lives of property and equipment are as follows: | |||||||||||||
Computer software and equipment | 2-5 years | ||||||||||||
Furniture and fixtures | 2-5 years | ||||||||||||
Leasehold improvements | Shorter of the lease term or estimated useful life | ||||||||||||
Software development costs | 3 years |
Consolidated_Balance_Sheet_Com1
Consolidated Balance Sheet Components (Tables) | 12 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ||||||||||||
Schedule of Prepaid Expenses | ' | ||||||||||||
Prepaid Expenses | |||||||||||||
As of September 30, | |||||||||||||
2014 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
Prepaid royalties | $ | 392 | $ | 190 | |||||||||
Prepaid taxes | 44 | 185 | |||||||||||
Other prepaid expenses | 1,656 | 2,850 | |||||||||||
Total prepaid expenses | $ | 2,092 | $ | 3,225 | |||||||||
Schedule of Property and Equipment | ' | ||||||||||||
Property and Equipment | |||||||||||||
As of September 30, | |||||||||||||
2014 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
Computer software and equipment | $ | 6,931 | $ | 6,820 | |||||||||
Furniture and fixtures | 477 | 1,130 | |||||||||||
Leasehold improvements | 804 | 733 | |||||||||||
Software development costs | 5,488 | 5,080 | |||||||||||
Total property and equipment | 13,700 | 13,763 | |||||||||||
Less: Accumulated depreciation and amortization | (6,811 | ) | (5,894 | ) | |||||||||
Property and equipment, net | 6,889 | 7,869 | |||||||||||
Add: Construction in progress | — | 2 | |||||||||||
Total property and equipment, net | $ | 6,889 | $ | 7,871 | |||||||||
Schedule of Asset Acquired under Capital Leases | ' | ||||||||||||
Computer equipment acquired under the capital leases is included in property and equipment and consisted of the following: | |||||||||||||
As of September 30, | |||||||||||||
2014 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
Computer software and equipment | $ | 823 | $ | 1,376 | |||||||||
Less: Accumulated depreciation and amortization | (819 | ) | (1,096 | ) | |||||||||
Total computer software and equipment, net | $ | 4 | $ | 280 | |||||||||
Schedule of Goodwill and Intangible Assets | ' | ||||||||||||
Goodwill and Intangible Assets | |||||||||||||
Estimated | As of September 30, | ||||||||||||
Useful | |||||||||||||
Life | |||||||||||||
(in Years) | |||||||||||||
2014 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
Intangible Assets: | |||||||||||||
Developed technology | 5 | $ | 2,214 | $ | 2,214 | ||||||||
Backlog | 5 | 100 | 100 | ||||||||||
Non-competition agreement | 3 | 100 | 100 | ||||||||||
Customer relationships | 3 | 1,018 | 1,018 | ||||||||||
Less: Accumulated amortization | (2,845 | ) | (2,514 | ) | |||||||||
Total intangible assets | $ | 587 | $ | 918 | |||||||||
Goodwill | $ | 1,509 | $ | 1,509 | |||||||||
Schedule of Estimated Future Amortization Expenses | ' | ||||||||||||
Estimated future amortization expense for the intangible assets as of September 30, 2014 is as follows: | |||||||||||||
Fiscal Years Ending | |||||||||||||
September 30, | |||||||||||||
(in thousands) | |||||||||||||
2015 | $ | 270 | |||||||||||
2016 | 245 | ||||||||||||
2017 | 72 | ||||||||||||
Total future amortization | $ | 587 | |||||||||||
Schedule of Other Assets | ' | ||||||||||||
Other Assets | |||||||||||||
As of September 30, | |||||||||||||
2014 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
Deferred cost of implementation services, net of current portion | $ | 317 | $ | 319 | |||||||||
Other | 955 | 307 | |||||||||||
Total other assets | $ | 1,272 | $ | 626 | |||||||||
Schedule of Accrued Employee Compensation | ' | ||||||||||||
Accrued Employee Compensation | |||||||||||||
As of September 30, | |||||||||||||
2014 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
Consideration in connection with acquisition (Note 11) | $ | 870 | $ | 1,373 | |||||||||
Restructuring (Note 10) | — | 1,182 | |||||||||||
Accrued employee benefits | 8,324 | 11,386 | |||||||||||
Total accrued employee compensation | $ | 9,194 | $ | 13,941 | |||||||||
Schedule of Accrued Liabilities | ' | ||||||||||||
Accrued Liabilities | |||||||||||||
As of September 30, | |||||||||||||
2014 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
Taxes payable | $ | 191 | $ | 232 | |||||||||
Other customer payables | 141 | 150 | |||||||||||
Other accrued liabilities | 1,666 | 2,466 | |||||||||||
Total accrued liabilities | $ | 1,998 | $ | 2,848 | |||||||||
Financial_Instruments_Tables
Financial Instruments (Tables) | 12 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Schedule of Fair Value Measured on Recurring Basis | ' | ||||||||||||||||
The table below sets forth the Company’s cash equivalents as of September 30, 2014 and 2013, which are measured at fair value on a recurring basis by level within the fair value hierarchy. The assets are classified based on the lowest level of input that is significant to the fair value measurement. The Company had no liabilities measured at fair value on a recurring basis. | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
(in thousands) | |||||||||||||||||
As of September 30, 2014: | |||||||||||||||||
Assets: | |||||||||||||||||
Cash equivalents: | |||||||||||||||||
Money market fund deposits | $ | 11,463 | $ | — | $ | — | $ | 11,463 | |||||||||
U.S. treasury bills | 34,050 | — | — | 34,050 | |||||||||||||
Total | $ | 45,513 | $ | — | $ | — | $ | 45,513 | |||||||||
As of September 30, 2013: | |||||||||||||||||
Assets: | |||||||||||||||||
Cash equivalents: | |||||||||||||||||
U.S. treasury bills | $ | 95,508 | $ | — | $ | — | $ | 95,508 | |||||||||
Schedule of Available-for-Sale Securities | ' | ||||||||||||||||
The following tables show the Company’s available-for-sale securities’ adjusted cost; gross unrealized gains, gross unrealized losses and fair value recorded as cash equivalents as of September 30, 2014 and 2013: | |||||||||||||||||
Adjusted Cost | Unrealized Gains | Unrealized Losses | Fair Value | ||||||||||||||
(in thousands) | |||||||||||||||||
As of September 30, 2014: | |||||||||||||||||
Cash equivalents: | |||||||||||||||||
Money market fund deposits | $ | 11,463 | $ | — | $ | — | $ | 11,463 | |||||||||
U.S. treasury bills | 34,050 | — | — | 34,050 | |||||||||||||
Total | $ | 45,513 | $ | — | $ | — | $ | 45,513 | |||||||||
As of September 30, 2013: | |||||||||||||||||
Cash equivalents: | |||||||||||||||||
U.S. treasury bills | $ | 95,508 | $ | — | $ | — | $ | 95,508 | |||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||||||||||||||||
Schedule of Future Minimum Payments under Operating Leases | ' | ||||||||||||||||||||
As of September 30, 2014, future minimum payments under operating leases were as follows: | |||||||||||||||||||||
Contractual Payment Obligations Due by Period | |||||||||||||||||||||
Total | Less than 1 | 1 to 3 | 2 to 5 | More than 5 | |||||||||||||||||
Year | Years | Years | Years | ||||||||||||||||||
Operating lease obligations(1) | $ | 6,400 | $ | 2,100 | $ | 3,800 | $ | 500 | $ | — | |||||||||||
(1) | Operating lease obligations represent our obligations to make payments under the lease agreements for our facilities leases. |
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||||||||||
Weighted-Average Assumptions Used to Estimate Fair Values of Awards | ' | ||||||||||||||||||||||||
The weighted-average assumptions used to estimate the fair values of these awards were determined using the following assumptions for the fiscal year ended September 30, 2014: | |||||||||||||||||||||||||
Risk-free interest rate | 0.63 | % | |||||||||||||||||||||||
Dividend yield | — | ||||||||||||||||||||||||
Volatility | 39 | % | |||||||||||||||||||||||
Summary of Stock Option, Restricted Stock Units, Performance-based Restricted Stock Units and Restricted Stock Awards Activities | ' | ||||||||||||||||||||||||
Activities of Stock Options, Restricted Stock Units, Performance-based Restricted Stock Units and Restricted Stock Awards | |||||||||||||||||||||||||
Outstanding Awards | |||||||||||||||||||||||||
Shares | Number of | Weighted | Number of | Weighted | Number of | ||||||||||||||||||||
Available | Stock | Average | Restricted | Average | Restricted | ||||||||||||||||||||
for Grant | Options | Exercise | Stock | Grant Date | Stock | ||||||||||||||||||||
Price | Units | Fair Value | Awards | ||||||||||||||||||||||
(in thousands, except exercise price and grant date fair value) | |||||||||||||||||||||||||
Balance at September 30, 2011 | 989 | 3,787 | $ | 1.62 | — | $ | — | — | |||||||||||||||||
Increase in shares reserved | 1,333 | — | — | — | — | — | |||||||||||||||||||
Granted | (1,788 | ) | 1,568 | 10.05 | 20 | 10.92 | 200 | ||||||||||||||||||
Exercised/released | — | (348 | ) | 1.74 | — | — | (200 | ) | |||||||||||||||||
Forfeited | 282 | (282 | ) | 4.44 | — | — | — | ||||||||||||||||||
Expired | 166 | (166 | ) | 1.59 | — | — | — | ||||||||||||||||||
Balance at September 30, 2012 | 982 | 4,559 | 4.34 | 20 | 10.92 | — | |||||||||||||||||||
Increase in shares reserved | 2,761 | — | — | — | — | — | |||||||||||||||||||
Granted | (1,360 | ) | 272 | 13.86 | 1,088 | 15.73 | — | ||||||||||||||||||
Exercised/released | — | (565 | ) | 1.52 | (7 | ) | 12.27 | — | |||||||||||||||||
Forfeited | 502 | (355 | ) | 8 | (110 | ) | 15.57 | (37 | ) | ||||||||||||||||
Cancelled | — | — | — | — | — | 37 | |||||||||||||||||||
Expired | 43 | (43 | ) | 4.35 | — | — | — | ||||||||||||||||||
Balance at September 30, 2013 | 2,928 | 3,868 | $ | 5.07 | 991 | $ | 15.68 | — | |||||||||||||||||
Increase in shares reserved | 1,150 | — | — | — | — | — | |||||||||||||||||||
Granted(1) | (1,774 | ) | — | — | 1,774 | 9.89 | — | ||||||||||||||||||
Exercised/released | — | (1,689 | ) | 1.8 | (58 | ) | 16.83 | — | |||||||||||||||||
Forfeited(1) | 620 | (178 | ) | 11.29 | (442 | ) | 8.79 | — | |||||||||||||||||
Expired | 120 | (120 | ) | 10.6 | — | — | — | ||||||||||||||||||
Balance at September 30, 2014(1) | 3,044 | 1,881 | $ | 7.07 | 2,265 | $ | 12.46 | — | |||||||||||||||||
-1 | Includes shares issuable as performance-based restricted stock units | ||||||||||||||||||||||||
Summary of Options Outstanding Vested and Expected to Vest Exercisable | ' | ||||||||||||||||||||||||
The following table summarizes certain information of the stock options as of September 30, 2014: | |||||||||||||||||||||||||
Options Outstanding | |||||||||||||||||||||||||
Number of | Weighted | Weighted Average | Aggregate | ||||||||||||||||||||||
Shares | Average | Remaining | Intrinsic Value | ||||||||||||||||||||||
Exercise Price | Contractual Term | ||||||||||||||||||||||||
(in Years) | |||||||||||||||||||||||||
(in thousands) | (in millions) | ||||||||||||||||||||||||
Vested and expected to vest | 1,881 | $ | 7.07 | 5.98 | $ | 7.1 | |||||||||||||||||||
Exercisable | 1,470 | $ | 5.8 | 5.45 | $ | 6.9 | |||||||||||||||||||
Summary of Unvested Awards | ' | ||||||||||||||||||||||||
The following table summarizes certain information of the unvested awards as of September 30, 2014: | |||||||||||||||||||||||||
Stock | Restricted | ESPP | |||||||||||||||||||||||
Options | Stock | ||||||||||||||||||||||||
Total compensation cost for unvested (in millions) | $ | 1.4 | $ | 12.1 | $ | 0.3 | |||||||||||||||||||
Weighted-average period to recognize (in years) | 2 | 2.2 | 0.4 | ||||||||||||||||||||||
Summary of Stock Options | ' | ||||||||||||||||||||||||
The following table summarizes certain information of the stock options for periods presented: | |||||||||||||||||||||||||
Fiscal Years Ended September 30, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
(in millions, expect grant date fair value) | |||||||||||||||||||||||||
Weighted average per share grant date fair value | $ | — | $ | 6.64 | $ | 4.5 | |||||||||||||||||||
Total intrinsic value of stock options exercised | $ | 13.8 | $ | 7 | $ | 3 | |||||||||||||||||||
Total fair value of shares vested | $ | 0.6 | $ | 0.6 | $ | 0.3 | |||||||||||||||||||
Stock-based Compensation | ' | ||||||||||||||||||||||||
Stock-based compensation is as follows: | |||||||||||||||||||||||||
Fiscal Years Ended September 30, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Cost of revenues: | |||||||||||||||||||||||||
License and implementation | $ | 905 | $ | 591 | $ | 298 | |||||||||||||||||||
SaaS and maintenance | 749 | 622 | 561 | ||||||||||||||||||||||
Total stock-based compensation in cost of revenues | 1,654 | 1,213 | 859 | ||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||
Research and development | 1,278 | 747 | 297 | ||||||||||||||||||||||
Sales and marketing | 2,789 | 1,687 | 1,103 | ||||||||||||||||||||||
General and administrative | 4,228 | 1,209 | 262 | ||||||||||||||||||||||
Total stock-based compensation included in operating expenses | 8,295 | 3,643 | 1,662 | ||||||||||||||||||||||
Stock-based compensation included in operating loss | 9,949 | 4,856 | 2,521 | ||||||||||||||||||||||
Stock-based compensation capitalized as software development cost | 27 | 182 | 12 | ||||||||||||||||||||||
Total stock-based compensation | $ | 9,976 | $ | 5,038 | $ | 2,533 | |||||||||||||||||||
Weighted-Average Assumptions Used to Estimate Fair Value of Stock Options Granted | ' | ||||||||||||||||||||||||
The following table presents the weighted-average assumptions used to estimate the fair value of stock options granted during the periods presented: | |||||||||||||||||||||||||
Fiscal Years Ended September 30, | |||||||||||||||||||||||||
2014(1) | 2013 | 2012 | |||||||||||||||||||||||
Common stock valuation | $ | — | $ | 13.95 | $ | 9.57 | |||||||||||||||||||
Risk-free interest rate | — | 1.1 | % | 0.97 | % | ||||||||||||||||||||
Dividend yield | — | — | — | ||||||||||||||||||||||
Volatility | — | 50 | % | 50 | % | ||||||||||||||||||||
Expected term (in years) | — | 6.08 | 6.01 | ||||||||||||||||||||||
(1) | No stock options were granted in the fiscal year ended September 30, 2014 | ||||||||||||||||||||||||
Weighted-Average Assumptions Used to Estimate Fair Value of Rights to Acquire Stock Granted Under Company's Employee Stock Purchase Plan | ' | ||||||||||||||||||||||||
The following table presents the weighted-average assumptions used to estimate the fair value of rights to acquire stock granted under the Company’s Employee Stock Purchase Plan: | |||||||||||||||||||||||||
Fiscal Years Ended September 30, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Risk-free interest rate | 0.12 | % | 0.15 | % | — | % | |||||||||||||||||||
Dividend yield | — | — | — | ||||||||||||||||||||||
Volatility | 34 | % | 36 | % | — | % | |||||||||||||||||||
Expected term (in years) | 0.77 | 0.91 | — |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Components of Loss Before Income Taxes | ' | ||||||||||||
The components of loss before income taxes are as follows: | |||||||||||||
Fiscal Years Ended September 30, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Domestic | $ | (21,279 | ) | $ | (1,340 | ) | $ | (6,114 | ) | ||||
Foreign | 782 | 853 | 722 | ||||||||||
Loss before taxes | $ | (20,497 | ) | $ | (487 | ) | $ | (5,392 | ) | ||||
Components of Provision for Income Taxes | ' | ||||||||||||
The components of the provision for income taxes are as follows: | |||||||||||||
Fiscal Years Ended September 30, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Current | |||||||||||||
State | $ | 53 | $ | 54 | $ | 8 | |||||||
Foreign | 295 | 355 | 267 | ||||||||||
348 | 409 | 275 | |||||||||||
Deferred | |||||||||||||
Federal | 27 | 27 | 23 | ||||||||||
State | 9 | 3 | 3 | ||||||||||
36 | 30 | 26 | |||||||||||
Total provision for income taxes | $ | 384 | $ | 439 | $ | 301 | |||||||
Reconciliation of Statutory Federal Income Tax to Company's Effective Tax | ' | ||||||||||||
Reconciliation of the statutory federal income tax to the Company’s effective tax: | |||||||||||||
Fiscal Years Ended September 30, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Tax at statutory federal rate | $ | (6,969 | ) | $ | (165 | ) | $ | (1,833 | ) | ||||
State tax, net of federal benefit | 53 | 54 | (214 | ) | |||||||||
Permanent differences | 727 | 1,053 | 87 | ||||||||||
Foreign tax rate differential | 29 | 65 | 22 | ||||||||||
Change in valuation allowance | 6,625 | 128 | 2,670 | ||||||||||
Research and development tax credits | (175 | ) | (726 | ) | (393 | ) | |||||||
Foreign tax credits | 35 | (27 | ) | — | |||||||||
Change in deferred tax liabilities | 36 | 30 | — | ||||||||||
Other | 23 | 27 | (38 | ) | |||||||||
Total provision for income taxes | $ | 384 | $ | 439 | $ | 301 | |||||||
Components of Deferred Tax Assets and Liability | ' | ||||||||||||
Deferred tax assets and liability consisted of the following: | |||||||||||||
As of September 30, | |||||||||||||
2014 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
Deferred tax assets: | |||||||||||||
Depreciation and amortization | $ | (425 | ) | $ | (1,147 | ) | |||||||
Accruals and other | 6,833 | 5,005 | |||||||||||
Deferred revenue | 3,045 | 877 | |||||||||||
NOL carry-forward | 18,917 | 16,416 | |||||||||||
Research and development tax credits | 6,315 | 5,744 | |||||||||||
Total deferred tax assets | 34,685 | 26,895 | |||||||||||
Valuation allowance | (34,685 | ) | (26,895 | ) | |||||||||
Net deferred tax assets | $ | — | $ | — | |||||||||
Deferred tax liabilities: | |||||||||||||
Intangibles | $ | 89 | $ | 56 | |||||||||
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits | ' | ||||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: | |||||||||||||
Fiscal Years Ended September 30, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Unrecognized tax benefits at the beginning of the period | $ | 1,979 | $ | 1,683 | $ | 1,438 | |||||||
Gross increase based on tax positions during the prior period | 18 | 78 | — | ||||||||||
Gross increase based on tax positions during the current period | 516 | 218 | 245 | ||||||||||
Unrecognized tax benefits at the end of the period | $ | 2,513 | $ | 1,979 | $ | 1,683 | |||||||
Net_Loss_Per_Share_Tables
Net Loss Per Share (Tables) | 12 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Computation of Basic and Diluted Net Income (Loss) per Share | ' | ||||||||||||
The following weighted average shares of common stock equivalents were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented because including them would have been antidilutive: | |||||||||||||
Fiscal Years Ended September 30, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands, except share and per share data) | |||||||||||||
Numerator: | |||||||||||||
Basic and diluted: | |||||||||||||
Net loss attributable to common stockholders | $ | (20,881 | ) | $ | (926 | ) | $ | (5,693 | ) | ||||
Denominator: | |||||||||||||
Basic and diluted: | |||||||||||||
Weighted Average Shares Used in Computing Net Loss per Share Attributable to Common Stockholders; basic and diluted | 24,399,387 | 15,979,481 | 7,815,258 | ||||||||||
Net Loss per Share Attributable to Common Stockholders; basic and diluted | $ | (0.86 | ) | $ | (0.06 | ) | $ | (0.73 | ) | ||||
Summary of Weighted Average Shares of Common Stock Equivalents Excluded from Computation of Diluted Net Loss per Share Attributable to Common Stockholders | ' | ||||||||||||
The following weighted average shares of common stock equivalents were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented because including them would have been antidilutive: | |||||||||||||
Fiscal Years Ended September 30, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Stock options | 1,971,126 | 4,254,831 | 4,089,654 | ||||||||||
Restricted stock awards, performance-based restricted stock units and restricted stock units | 1,016,181 | 620,528 | 93,807 | ||||||||||
Preferred stock warrant | — | 44,398 | 86,655 | ||||||||||
ESPP | 22,588 | 9,313 | — |
Geographic_Information_Tables
Geographic Information (Tables) | 12 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Segment Reporting [Abstract] | ' | ||||||||
Company's Property and Equipment, Net by Geographic Region | ' | ||||||||
The following table sets forth the Company’s property and equipment, net by geographic region: | |||||||||
As of September 30, | |||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
United States | $ | 5,858 | $ | 6,811 | |||||
Other | 1,031 | 1,060 | |||||||
Total property and equipment, net | $ | 6,889 | $ | 7,871 | |||||
Restructuring_Charges_Tables
Restructuring Charges (Tables) | 12 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Restructuring and Related Activities [Abstract] | ' | ||||||||
Summary of Restructuring Activity Roll-forward | ' | ||||||||
A roll-forward of the restructuring activity is summarized below: | |||||||||
Fiscal Years Ended | |||||||||
September 30, | |||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Opening balance | $ | 1,182 | $ | — | |||||
Amounts accrued | 26 | 1,215 | |||||||
Cash payments | (1,208 | ) | (33 | ) | |||||
Balance of accrual | $ | — | $ | 1,182 | |||||
Acquisition_Tables
Acquisition (Tables) | 12 Months Ended | ||||
Sep. 30, 2014 | |||||
Business Combinations [Abstract] | ' | ||||
Allocation of Purchase Price | ' | ||||
The allocation of the purchase price was as follows: | |||||
Amount | |||||
(in thousands) | |||||
Tangible assets | $ | 685 | |||
Intangible assets: | |||||
Developed technology | 1,124 | ||||
Backlog | 100 | ||||
Non-competition agreements | 100 | ||||
Customer relationships | 158 | ||||
Liabilities assumed | (1,024 | ) | |||
Payments due from seller | 667 | ||||
Goodwill | 1,190 | ||||
Total purchase price | $ | 3,000 | |||
Convertible_Preferred_Stock_Ta
Convertible Preferred Stock (Tables) | 12 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Text Block [Abstract] | ' | ||||||||
Fair Value of Warrant | ' | ||||||||
The fair value of the outstanding warrant was determined using the Black-Scholes-Merton option-pricing model. The fair value of the warrant was estimated using the following assumptions for the periods presented below. | |||||||||
Fiscal Years Ended September 30, | |||||||||
2013 | 2012 | ||||||||
Risk-free interest rate | 0.92 | % | 0.83 | % | |||||
Dividend yield | — | — | |||||||
Volatility | 45 | % | 53 | % | |||||
Expected term (in years) | 5.92 | 8.05 | |||||||
Change in Fair Value of Convertible Preferred Stock Warrant Liability | ' | ||||||||
The change in the fair value of the convertible preferred stock warrant liability is summarized below: | |||||||||
Fiscal Years Ended September 30, | |||||||||
2013 | 2012 | ||||||||
Opening balance | $ | 748 | $ | 403 | |||||
Issuance of convertible preferred stock warrant | — | — | |||||||
Increase in fair value | 671 | 345 | |||||||
Reclassification of warrant liability to additional paid-in capital | (1,419 | ) | — | ||||||
Closing balance | $ | — | $ | 748 | |||||
The_Company_Additional_Informa
The Company - Additional Information (Detail) | 12 Months Ended |
Sep. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Date of incorporation | 14-Dec-99 |
State of incorporation | 'Delaware |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies and Estimates - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Segment | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ' | ' | ' |
Project implementation term range | 'Few months to three years | ' | ' |
Deferred cost of implementation services | $600,000 | $800,000 | ' |
Unbilled receivables recorded in balance sheets | 800,000 | 1,600,000 | ' |
Impairment charge related to purchased intangible assets | 0 | 0 | ' |
Software development costs capitalized | 400,000 | 3,900,000 | ' |
Advertising and promoting costs | 0 | 1,000 | 0 |
Deferred tax assets fully offset by valuation allowance | $34,700,000 | $26,900,000 | ' |
Number of operating segment | 1 | ' | ' |
Software development costs [Member] | ' | ' | ' |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ' | ' | ' |
Estimated economic lives | '3 years | ' | ' |
Revenue [Member] | ' | ' | ' |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ' | ' | ' |
Accounts receivable and revenues percentage | 10.00% | ' | ' |
Accounts Receivable [Member] | ' | ' | ' |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ' | ' | ' |
Accounts receivable and revenues percentage | 10.00% | ' | ' |
Minimum [Member] | ' | ' | ' |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ' | ' | ' |
Estimated economic lives | '3 years | ' | ' |
Maximum [Member] | ' | ' | ' |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ' | ' | ' |
Estimated economic lives | '5 years | ' | ' |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies and Estimates - Summary of Accounts Receivable and Revenues of Customers Comprising 10% or More (Detail) | 12 Months Ended | |||||||||
Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Revenue [Member] | Company A [Member] | Company A [Member] | Company A [Member] | Company A [Member] | Company B [Member] | Company B [Member] | Company C [Member] | Company C [Member] | Company C [Member] | |
Accounts Receivable [Member] | Accounts Receivable [Member] | Revenue [Member] | Revenue [Member] | Accounts Receivable [Member] | Revenue [Member] | Accounts Receivable [Member] | Revenue [Member] | Revenue [Member] | ||
Concentration Risk [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Concentration of Credit Risk | 10.00% | 12.00% | 21.00% | 12.00% | 14.00% | 14.00% | 10.00% | 10.00% | 15.00% | 12.00% |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies and Estimates - Estimated Useful Lives of Property and Equipment (Detail) | 12 Months Ended |
Sep. 30, 2014 | |
Leasehold improvements [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful lives | 'Shorter of the lease term or estimated useful life |
Software development costs [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful lives | '3 years |
Minimum [Member] | Computer software and equipment [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful lives | '2 years |
Minimum [Member] | Furniture and fixtures [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful lives | '2 years |
Maximum [Member] | Computer software and equipment [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful lives | '5 years |
Maximum [Member] | Furniture and fixtures [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful lives | '5 years |
Consolidated_Balance_Sheet_Com2
Consolidated Balance Sheet Components - Schedule of Prepaid Expenses (Detail) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | ' |
Prepaid royalties | $392 | $190 |
Prepaid taxes | 44 | 185 |
Other prepaid expenses | 1,656 | 2,850 |
Total prepaid expenses | $2,092 | $3,225 |
Consolidated_Balance_Sheet_Com3
Consolidated Balance Sheet Components - Schedule of Property and Equipment (Detail) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, Gross | $13,700 | $13,763 |
Less: Accumulated depreciation and amortization | -6,811 | -5,894 |
Property and equipment excluding construction in progress, net | 6,889 | 7,869 |
Property and equipment, net | 6,889 | 7,871 |
Computer software and equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, Gross | 6,931 | 6,820 |
Furniture and fixtures [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, Gross | 477 | 1,130 |
Leasehold improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, Gross | 804 | 733 |
Software development costs [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, Gross | 5,488 | 5,080 |
Construction in progress [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, net | $0 | $2 |
Consolidated_Balance_Sheet_Com4
Consolidated Balance Sheet Components - Schedule of Asset Acquired under Capital Leases (Detail) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Abstract] | ' | ' |
Computer software and equipment | $823 | $1,376 |
Less: Accumulated depreciation and amortization | -819 | -1,096 |
Total computer software and equipment, net | $4 | $280 |
Consolidated_Balance_Sheet_Com5
Consolidated Balance Sheet Components - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' | ' |
Depreciation and amortization of property and equipment | $3,385 | $1,877 | $1,526 |
Amortization expense of intangible assets | $331 | $330 | $234 |
Consolidated_Balance_Sheet_Com6
Consolidated Balance Sheet Components - Schedule of Goodwill and Intangible Assets (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Intangible Assets: | ' | ' |
Less: Accumulated amortization | ($2,845) | ($2,514) |
Total future amortization | 587 | 918 |
Goodwill | 1,509 | 1,509 |
Developed technology [Member] | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' |
Estimated Useful Life (in Years) | '5 years | ' |
Intangible Assets: | ' | ' |
Intangible assets, Gross | 2,214 | 2,214 |
Backlog [Member] | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' |
Estimated Useful Life (in Years) | '5 years | ' |
Intangible Assets: | ' | ' |
Intangible assets, Gross | 100 | 100 |
Non-competition agreements [Member] | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' |
Estimated Useful Life (in Years) | '3 years | ' |
Intangible Assets: | ' | ' |
Intangible assets, Gross | 100 | 100 |
Customer relationships [Member] | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' |
Estimated Useful Life (in Years) | '3 years | ' |
Intangible Assets: | ' | ' |
Intangible assets, Gross | $1,018 | $1,018 |
Consolidated_Balance_Sheet_Com7
Consolidated Balance Sheet Components - Schedule of Estimated Future Amortization Expenses (Detail) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' |
2015 | $270 | ' |
2016 | 245 | ' |
2017 | 72 | ' |
Total future amortization | $587 | $918 |
Consolidated_Balance_Sheet_Com8
Consolidated Balance Sheet Components - Schedule of Other Assets (Detail) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | ' |
Deferred cost of implementation services, net of current portion | $317 | $319 |
Other | 955 | 307 |
Total other assets | $1,272 | $626 |
Consolidated_Balance_Sheet_Com9
Consolidated Balance Sheet Components - Schedule of Accrued Employee Compensation (Detail) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
Payables and Accruals [Abstract] | ' | ' |
Consideration in connection with acquisition (Note 11) | $870 | $1,373 |
Restructuring (Note 10) | 0 | 1,182 |
Accrued employee benefits | 8,324 | 11,386 |
Total accrued employee compensation | $9,194 | $13,941 |
Recovered_Sheet1
Consolidated Balance Sheet Components - Schedule of Accrued Liabilities (Detail) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
Payables and Accruals [Abstract] | ' | ' |
Taxes payable | $191 | $232 |
Other customer payables | 141 | 150 |
Other accrued liabilities | 1,666 | 2,466 |
Total accrued liabilities | $1,998 | $2,848 |
Financial_Instruments_Addition
Financial Instruments - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Fair Value Disclosures [Abstract] | ' | ' |
Liabilities measured at fair value on a recurring basis | $0 | $0 |
Cash at bank and investment | $55.50 | $7.80 |
Transfers of assets and liabilities measured at fair value between Level 1, Level 2 and Level 3 | 'There were no transfers of assets and liabilities measured at fair value between Level 1 and Level 2, or between Level 2 and Level 3, during the fiscal years ended September 30, 2014 and 2013. | ' |
Financial_Instruments_Schedule
Financial Instruments - Schedule of Fair Value Measured on Recurring Basis (Detail) (Cash equivalents [Member], USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value assets on recurring basis | $45,513 | ' |
Money market fund deposits [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value assets on recurring basis | 11,463 | ' |
U.S. treasury bills [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value assets on recurring basis | 34,050 | 95,508 |
Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value assets on recurring basis | 45,513 | ' |
Level 1 [Member] | Money market fund deposits [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value assets on recurring basis | 11,463 | ' |
Level 1 [Member] | U.S. treasury bills [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value assets on recurring basis | 34,050 | 95,508 |
Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value assets on recurring basis | 0 | ' |
Level 2 [Member] | Money market fund deposits [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value assets on recurring basis | 0 | ' |
Level 2 [Member] | U.S. treasury bills [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value assets on recurring basis | 0 | 0 |
Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value assets on recurring basis | 0 | ' |
Level 3 [Member] | Money market fund deposits [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value assets on recurring basis | 0 | ' |
Level 3 [Member] | U.S. treasury bills [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value assets on recurring basis | $0 | $0 |
Financial_Instruments_Schedule1
Financial Instruments - Schedule of Available-for-Sale Securities (Detail) (Cash equivalents [Member], USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Adjusted Cost | $45,513 | ' |
Unrealized Gains | 0 | ' |
Unrealized Losses | 0 | ' |
Fair Value | 45,513 | ' |
Money market fund deposits [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Adjusted Cost | 11,463 | ' |
Unrealized Gains | 0 | ' |
Unrealized Losses | 0 | ' |
Fair Value | 11,463 | ' |
U.S. treasury bills [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Adjusted Cost | 34,050 | 95,508 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | $34,050 | $95,508 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Commitments And Contingencies [Line Items] | ' | ' | ' |
Rental expense under noncancelable operating leases | $2 | $1.70 | $1.50 |
New operating lease period | '42 months | ' | ' |
Repayment of loan date | 'May 2013 | ' | ' |
Series C Preferred Stock [Member] | ' | ' | ' |
Commitments And Contingencies [Line Items] | ' | ' | ' |
Warrant to purchase shares | 86,655 | ' | ' |
Warrant exercise price per share | $3.46 | ' | ' |
Revolving Credit Facility [Member] | ' | ' | ' |
Commitments And Contingencies [Line Items] | ' | ' | ' |
Credit facility, agreement date | '2010-10 | ' | ' |
Revolving credit facility with term loan | 7.5 | ' | ' |
Fixed interest rate, percentage | 8.00% | ' | ' |
Interest rate description | 'The amended and restated loan and security agreement required interest only payments until October 1, 2011 and thirty six (36) equal monthly installments of principal with accrued interest thereafter until maturity on October 1, 2014. | ' | ' |
Revolving credit maturity date | 1-Oct-14 | ' | ' |
Recorded interest expense | $0 | $0.40 | $0.50 |
Commitments_and_Contingencies_2
Commitments and Contingencies - Schedule of Future Minimum Payments under Operating Leases (Detail) (USD $) | Sep. 30, 2014 |
Commitments and Contingencies Disclosure [Abstract] | ' |
Operating lease obligations due, Total | $6,400 |
Operating lease obligations due, Less than 1 Year | 2,100 |
Operating lease obligations due, 1 to 3 Years | 3,800 |
Operating lease obligations, 2 to 5 Years | 500 |
Operating lease obligations, More than 5 Years | $0 |
StockBased_Compensation_Additi
Stock-Based Compensation - Additional Information (Detail) (USD $) | 12 Months Ended | 1 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | |||||||||||
In Millions, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Jan. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Dec. 06, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Dec. 06, 2013 | Dec. 06, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 |
Restricted Stock Awards [Member] | Restricted Stock Awards [Member] | Restricted Stock Awards [Member] | Restricted Stock Awards [Member] | Restricted Stock Awards [Member] | Restricted Stock Units [Member] | Restricted Stock Units [Member] | Restricted Stock Units [Member] | Restricted Stock Units [Member] | Restricted Stock Units [Member] | Restricted Stock Units [Member] | Restricted Stock Units [Member] | ESPP [Member] | 2013 Equity Incentive Plan [Member] | 2013 Equity Incentive Plan [Member] | |||
Minimum [Member] | Maximum [Member] | Common Stock [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Approved stock reserve | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,000,000 |
Approved stock reserve | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,500,000 | ' |
Additional shares authorized, percentage of common stock issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | ' |
Awards, vesting period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '4 years | ' |
Awards, expiration period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' |
Discounted employee stock purchase plan percentage | 15.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair market value percentage on employee stock purchase plan | 85.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Offering periods for employee stock purchase plan | ' | ' | ' | ' | ' | ' | ' | ' | 'Ten-year term | ' | ' | ' | ' | ' | 'Except for the initial offering period, the ESPP provides for six-month offering periods, starting on February 20 and August 20 of each year. | ' | ' |
Initial offering period, Description | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'The initial offering period began on March 19, 2013 and ended on February 19, 2014. | ' | ' |
Common stock issued | ' | ' | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted stock awards, shares forfeited | ' | 36,818 | ' | ' | ' | ' | ' | ' | 43,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Repurchase of shares | ' | ' | ' | 0 | 29,849 | 0 | 0 | ' | 2,265,000 | 991,000 | 20,000 | 0 | ' | ' | ' | ' | ' |
Fair value of restricted stock awards vested | $0.10 | $0.40 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted stock units granted to senior officers | ' | ' | ' | ' | ' | ' | ' | 280,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of shares released under terms of grants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.00% | 250.00% | ' | ' | ' |
Performance-based restricted stock units, description | ' | ' | ' | ' | ' | ' | ' | ' | 'the Compensation Committee of the Board approved initial grants of an aggregate of 280,000 performance-based restricted stock units to three of the Companybs senior officers, including the Chief Executive Officer and the Chief Financial Officer.B Under the terms of these grants, the actual number of shares released could be 0% to 250% of the initial grant based on the Companybs total shareholder return (TSR) relative to the TSR of the Russell 3000 index (Index) over a three-year period.B In any of the three years, no shares will be released if the TSR of the Companybs common stock is below the 30th percentile relative to the Index; 100% of the initial grant will be released if the Companybs TSR is at the 50th percentile relative to the Index; and 250% of the initial grant will be released if the Companybs TSR is over the 90th percentile relative to the Index.B These grants vest as to one-third on each annual anniversary of NovemberB 22, 2013, with a bcatch-upb provision such that shares not earned in a prior year may be earned in a subsequent year subject to the Companybs TSR achieving a certain level relative to the Index and exceeding the prior yearbs TSR. These grants have a ten-year term, subject to their earlier termination upon certain events including the awardeebs termination of employment. As of SeptemberB 30, 2014 approximately 43,000 of performance based stock units were forfeited. | ' | ' | ' | ' | ' | ' | ' | ' |
StockBased_Compensation_Weight
Stock-Based Compensation - Weighted-Average Assumptions Used to Estimate Fair Values of Awards (Detail) (Performance Shares [Member]) | 12 Months Ended |
Sep. 30, 2014 | |
Performance Shares [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Risk-free interest rate | 0.63% |
Dividend yield | 0.00% |
Volatility | 39.00% |
StockBased_Compensation_Summar
Stock-Based Compensation - Summary of Stock Option, Restricted Stock Units, Performance-based Restricted Stock Units and Restricted Stock Awards Activities (Detail) (USD $) | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Shares Available for Grant, Beginning balance | 2,928,000 | 982,000 | 989,000 |
Shares Available for Grant, Increase in shares reserved | 1,150,000 | 2,761,000 | 1,333,000 |
Shares Available for Grant, Granted | -1,774,000 | -1,360,000 | -1,788,000 |
Shares Available for Grant, Exercised/released | 0 | 0 | 0 |
Shares Available for Grant, Forfeited | 620,000 | 502,000 | 282,000 |
Shares Available for Grant, Cancelled | ' | 0 | ' |
Shares Available for Grant, Expired | 120,000 | 43,000 | 166,000 |
Shares Available for Grant, Ending balance | 3,044,000 | 2,928,000 | 982,000 |
Number of Stock Options, Beginning balance | 3,868,000 | 4,559,000 | 3,787,000 |
Number of Stock Options, Granted | 0 | 272,000 | 1,568,000 |
Number of Stock Options, Exercised/released | -1,689,000 | -565,000 | -348,000 |
Number of Stock Options, Forfeited | -178,000 | -355,000 | -282,000 |
Number of Stock Options, Cancelled | ' | 0 | ' |
Number of Stock Options, Expired | -120,000 | -43,000 | -166,000 |
Number of Stock Options, Ending balance | 1,881,000 | 3,868,000 | 4,559,000 |
Weighted Average Exercise Price, Beginning balance | $5.07 | $4.34 | $1.62 |
Weighted Average Exercise Price, Granted | $0 | $13.86 | $10.05 |
Weighted Average Exercise Price, Exercised/released | $1.80 | $1.52 | $1.74 |
Weighted Average Exercise Price, Forfeited | $11.29 | $8 | $4.44 |
Weighted Average Exercise Price, Forfeited, Cancelled | ' | $0 | ' |
Weighted Average Exercise Price, Expired | $10.60 | $4.35 | $1.59 |
Weighted Average Exercise Price, Ending balance | $7.07 | $5.07 | $4.34 |
Weighted Average Grant Date Fair Value, Beginning balance | $15.68 | $10.92 | $0 |
Weighted Average Grant Date Fair Value, Granted | $9.89 | $15.73 | $10.92 |
Weighted Average Grant Date Fair Value, Exercised/released | $16.83 | $12.27 | $0 |
Weighted Average Grant Date Fair Value, Forfeited | $8.79 | $15.57 | $0 |
Weighted Average Grant Date Fair Value, Cancelled | ' | $0 | ' |
Weighted Average Grant Date Fair Value, Expired | $0 | $0 | $0 |
Weighted Average Grant Date Fair Value, Ending balance | $12.46 | $15.68 | $10.92 |
Restricted Stock Awards [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Number of Restricted Stock, Beginning balance | 29,849 | 0 | 0 |
Number of Restricted Stock, Granted | 0 | 0 | 200,000 |
Number of Restricted Stock, Exercised/released | 0 | 0 | -200,000 |
Number of Restricted Stock, Forfeited | 0 | -37,000 | 0 |
Number of Restricted Stock, Canceled | ' | 37,000 | ' |
Number of Restricted Stock, Expired | 0 | 0 | 0 |
Number of Restricted Stock, Ending balance | 0 | 29,849 | 0 |
Restricted Stock Units [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Number of Restricted Stock, Beginning balance | 991,000 | 20,000 | 0 |
Number of Restricted Stock, Granted | 1,774,000 | 1,088,000 | 20,000 |
Number of Restricted Stock, Exercised/released | -58,000 | -7,000 | 0 |
Number of Restricted Stock, Forfeited | -442,000 | -110,000 | 0 |
Number of Restricted Stock, Canceled | ' | 0 | ' |
Number of Restricted Stock, Expired | 0 | 0 | 0 |
Number of Restricted Stock, Ending balance | 2,265,000 | 991,000 | 20,000 |
StockBased_Compensation_Summar1
Stock-Based Compensation - Summary of Options Outstanding Vested and Expected to Vest Exercisable (Detail) (USD $) | 12 Months Ended |
In Millions, except Share data in Thousands, unless otherwise specified | Sep. 30, 2014 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' |
Number of Shares, Vested and expected to vest | 1,881 |
Number of Shares, Exercisable | 1,470 |
Weighted Average Exercise Price, Vested and expected to vest | $7.07 |
Weighted Average Exercise Price, Exercisable | $5.80 |
Weighted Average Remaining Contractual Term, Vested and expected to vest | '5 years 11 months 23 days |
Weighted Average Remaining Contractual Term, Exercisable | '5 years 5 months 12 days |
Aggregate Intrinsic Value, Vested and expected to vest | $7.10 |
Aggregate Intrinsic Value, Exercisable | $6.90 |
StockBased_Compensation_Summar2
Stock-Based Compensation - Summary of Unvested Awards (Detail) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2014 |
ESPP [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Total compensation cost for unvested | $0.30 |
Weighted-average period to recognize | '4 months 24 days |
Stock options [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Total compensation cost for unvested | 1.4 |
Weighted-average period to recognize | '2 years |
Restricted Stock Units [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Total compensation cost for unvested | $12.10 |
Weighted-average period to recognize | '2 years 2 months 12 days |
StockBased_Compensation_Summar3
Stock-Based Compensation - Summary of Stock Options (Detail) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' | ' |
Weighted average per share grant date fair value | $0 | $6.64 | $4.50 |
Total intrinsic value of stock options exercised | $13.80 | $7 | $3 |
Total fair value of shares vested | $0.60 | $0.60 | $0.30 |
StockBased_Compensation_Stockb
Stock-Based Compensation - Stock-based Compensation (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Total stock-based compensation expenses | $9,949 | $4,856 | $2,521 |
Stock-based compensation capitalized as software development cost | 27 | 182 | 12 |
Total stock-based compensation | 9,976 | 5,038 | 2,533 |
Cost of revenues, License and implementation [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Total stock-based compensation expenses | 905 | 591 | 298 |
Cost of revenues, SaaS and maintenance [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Total stock-based compensation expenses | 749 | 622 | 561 |
Cost of revenues [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Total stock-based compensation expenses | 1,654 | 1,213 | 859 |
Operating expenses, Research and development [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Total stock-based compensation expenses | 1,278 | 747 | 297 |
Operating expenses, Sales and marketing [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Total stock-based compensation expenses | 2,789 | 1,687 | 1,103 |
Operating expenses, General and administrative [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Total stock-based compensation expenses | 4,228 | 1,209 | 262 |
Operating expenses [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Total stock-based compensation expenses | $8,295 | $3,643 | $1,662 |
StockBased_Compensation_Weight1
Stock-Based Compensation - Weighted-Average Assumptions Used to Estimate Fair Value of Stock Options Granted (Detail) (Stock options [Member], USD $) | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Stock options [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Common stock valuation | $0 | $13.95 | $9.57 |
Risk-free interest rate | 0.00% | 1.10% | 0.97% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Volatility | 0.00% | 50.00% | 50.00% |
Expected term (in years) | '0 years | '6 years 29 days | '6 years 4 days |
StockBased_Compensation_Weight2
Stock-Based Compensation - Weighted-Average Assumptions Used to Estimate Fair Value of Stock Options Granted (Parenthetical) (Detail) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Number of Stock Options, Granted | 0 | 272 | 1,568 |
Stock options [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Number of Stock Options, Granted | 0 | ' | ' |
StockBased_Compensation_Weight3
Stock-Based Compensation - Weighted-Average Assumptions Used to Estimate Fair Value of Rights to Acquire Stock Granted Under Company's Employee Stock Purchase Plan (Detail) (ESPP [Member]) | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
ESPP [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Risk-free interest rate | 0.12% | 0.15% | 0.00% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Volatility | 34.00% | 36.00% | 0.00% |
Expected term (in years) | '9 months 7 days | '10 months 28 days | '0 years |
Income_Taxes_Components_of_Los
Income Taxes - Components of Loss Before Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Domestic | ($21,279) | ($1,340) | ($6,114) |
Foreign | 782 | 853 | 722 |
Loss before income taxes | ($20,497) | ($487) | ($5,392) |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | |||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |
Income Tax Disclosure [Line Items] | ' | ' | ' | ' |
Cumulative undistributed earnings from foreign subsidiaries | $2,100,000 | ' | ' | ' |
Net change in total valuation allowance | 7,800,000 | ' | ' | ' |
Research credit carry forwards | 6,315,000 | 5,744,000 | ' | ' |
Stock option benefits | 3,100,000 | 900,000 | 500,000 | ' |
Unrecognized tax benefits | 2,513,000 | 1,979,000 | 1,683,000 | 1,438,000 |
Uncertain tax positions | 516,000 | 218,000 | 245,000 | ' |
Net operating loss carry-forwards, limitations on use | 'Internal Revenue Code section 382 places a limitation (the "Section 382 Limitation") on the amount of taxable income can be offset by net operating ("NOL") carry-forwards after a change in control (generally greater than 50% change in ownership) of a loss corporation. California has similar rules. | ' | ' | ' |
Federal [Member] | ' | ' | ' | ' |
Income Tax Disclosure [Line Items] | ' | ' | ' | ' |
Net operating loss (NOL) carry forwards | 58,500,000 | ' | ' | ' |
Net operating loss (NOL) carry forwards, beginning expiring period | '2021 | ' | ' | ' |
Research credit carry forwards | 4,300,000 | ' | ' | ' |
Research credit carry forwards, beginning expiring period | '2020 | ' | ' | ' |
California [Member] | ' | ' | ' | ' |
Income Tax Disclosure [Line Items] | ' | ' | ' | ' |
Net operating loss (NOL) carry forwards | 26,300,000 | ' | ' | ' |
Net operating loss (NOL) carry forwards, beginning expiring period | '2015 | ' | ' | ' |
Research credit carry forwards, beginning expiring period | 'Indefinitely | ' | ' | ' |
California [Member] | Research [Member] | ' | ' | ' | ' |
Income Tax Disclosure [Line Items] | ' | ' | ' | ' |
State research credit carry forwards | 5,300,000 | ' | ' | ' |
Other State [Member] | ' | ' | ' | ' |
Income Tax Disclosure [Line Items] | ' | ' | ' | ' |
Net operating loss (NOL) carry forwards | $500,000 | ' | ' | ' |
Net operating loss (NOL) carry forwards, beginning expiring period | '2016 | ' | ' | ' |
Income_Taxes_Components_of_Pro
Income Taxes - Components of Provision for Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Current | ' | ' | ' |
State | $53 | $54 | $8 |
Foreign | 295 | 355 | 267 |
Total current | 348 | 409 | 275 |
Deferred | ' | ' | ' |
Federal | 27 | 27 | 23 |
State | 9 | 3 | 3 |
Total deferred | 36 | 30 | 26 |
Total provision for income taxes | $384 | $439 | $301 |
Income_Taxes_Reconciliation_of
Income Taxes - Reconciliation of Statutory Federal Income Tax to Company's Effective Tax (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Tax at statutory federal rate | ($6,969) | ($165) | ($1,833) |
State tax, net of federal benefit | 53 | 54 | -214 |
Permanent differences | 727 | 1,053 | 87 |
Foreign tax rate differential | 29 | 65 | 22 |
Change in valuation allowance | 6,625 | 128 | 2,670 |
Research and development tax credits | -175 | -726 | -393 |
Foreign tax credits | 35 | -27 | 0 |
Change in deferred tax liabilities | 36 | 30 | 0 |
Other | 23 | 27 | -38 |
Total provision for income taxes | $384 | $439 | $301 |
Income_Taxes_Components_of_Def
Income Taxes - Components of Deferred Tax Assets and Liability (Detail) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ' | ' |
Depreciation and amortization | ($425) | ($1,147) |
Accruals and other | 6,833 | 5,005 |
Deferred revenue | 3,045 | 877 |
NOL carry-forward | 18,917 | 16,416 |
Research and development tax credits | 6,315 | 5,744 |
Total deferred tax assets | 34,685 | 26,895 |
Valuation allowance | -34,685 | -26,895 |
Net deferred tax assets | 0 | 0 |
Deferred tax liabilities: | ' | ' |
Intangibles | $89 | $56 |
Income_Taxes_Reconciliation_of1
Income Taxes - Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Unrecognized tax benefits at the beginning of the period | $1,979 | $1,683 | $1,438 |
Gross increase based on tax positions during the prior period | 18 | 78 | 0 |
Gross increase based on tax positions during the current period | 516 | 218 | 245 |
Unrecognized tax benefits at the end of the period | $2,513 | $1,979 | $1,683 |
Net_Loss_Per_Share_Computation
Net Loss Per Share - Computation of Basic and Diluted Net Income (Loss) per Share (Detail) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Basic and diluted: | ' | ' | ' |
Net loss attributable to common stockholders | ($20,881) | ($926) | ($5,693) |
Basic and diluted: | ' | ' | ' |
Weighted Average Shares Used in Computing Net Loss per Share Attributable to Common Stockholders; basic and diluted | 24,399 | 15,979 | 7,815 |
Net Loss per Share Attributable to Common Stockholders; basic and diluted | ($0.86) | ($0.06) | ($0.73) |
Net_Loss_Per_Share_Summary_of_
Net Loss Per Share - Summary of Weighted Average Shares of Common Stock Equivalents Excluded from Computation of Diluted Net Loss per Share Attributable to Common Stockholders (Detail) | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Earnings Per Share [Abstract] | ' | ' | ' |
Stock options | 1,971,126 | 4,254,831 | 4,089,654 |
Restricted stock awards, performance-based restricted stock units and restricted stock units | 1,016,181 | 620,528 | 93,807 |
Preferred stock warrant | 0 | 44,398 | 86,655 |
ESPP | 22,588 | 9,313 | 0 |
Geographic_Information_Additio
Geographic Information - Additional Information (Detail) | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Segment Reporting Information [Line Items] | ' | ' | ' |
Number of operating segment | 1 | ' | ' |
Revenue [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenues from customers outside United States | 10.00% | ' | ' |
Other [Member] | Geographic concentration risk [Member] | Revenue [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenues from customers outside United States | 11.00% | 14.00% | 9.00% |
Geographic_Information_Company
Geographic Information - Company's Property and Equipment, Net by Geographic Region (Detail) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, net | $6,889 | $7,871 |
United States [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, net | 5,858 | 6,811 |
Other [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, net | $1,031 | $1,060 |
Restructuring_Charges_Addition
Restructuring Charges - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Restructuring and Related Activities [Abstract] | ' | ' | ' |
Amounts accrued (released) | $26 | $1,215 | $0 |
Restructuring_Charges_Summary_
Restructuring Charges - Summary of Restructuring Activity Roll-forward (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Restructuring and Related Activities [Abstract] | ' | ' | ' |
Opening balance | $1,182 | ' | ' |
Amounts accrued | 26 | 1,215 | 0 |
Cash payments | -1,208 | -33 | ' |
Balance of accrual | $0 | $1,182 | ' |
Acquisition_Additional_Informa
Acquisition - Additional Information (Detail) (USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Jan. 31, 2014 | Jan. 31, 2013 | Jul. 31, 2012 | Sep. 30, 2014 | Jan. 31, 2013 | Sep. 30, 2012 | Jan. 18, 2012 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | |
Forecast [Member] | LeapFrogRx [Member] | LeapFrogRx [Member] | LeapFrogRx [Member] | LeapFrogRx [Member] | Minimum [Member] | Maximum [Member] | |||||||
January 2015 [Member] | Restricted Stock Awards [Member] | ||||||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisition date | 18-Jan-12 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total purchase consideration paid in cash | $3,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,500,000 | ' | ' | ' |
Goodwill | 1,509,000 | 1,509,000 | ' | ' | ' | ' | ' | ' | ' | 1,190,000 | ' | ' | ' |
Estimated Useful Life (in Years) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | '5 years |
Total purchase consideration | ' | ' | ' | 1,000,000 | 1,000,000 | 3,000,000 | ' | ' | ' | 3,000,000 | ' | ' | ' |
Purchase consideration future payments | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' |
Business acquisition, recognized compensation expenses | 500,000 | 1,100,000 | 4,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business acquisition earn-out consideration payable | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business acquisition, recognized expense | 100,000 | ' | 400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business acquisition, recognized credit | ' | 400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
One-time retention bonus payable to former employees | ' | ' | ' | ' | ' | ' | ' | 300,000 | ' | ' | ' | ' | ' |
Guaranteed bonus payments | ' | ' | ' | ' | ' | ' | ' | ' | 400,000 | ' | ' | ' | ' |
Business acquisition shares issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200,000 | ' | ' |
Business acquisition, revenue | ' | ' | ' | ' | ' | ' | ' | ' | $6,000,000 | ' | ' | ' | ' |
Acquisition_Allocation_of_Purc
Acquisition - Allocation of Purchase Price (Detail) (USD $) | Sep. 30, 2014 | Jan. 31, 2014 | Sep. 30, 2013 | Jan. 31, 2013 | Jul. 31, 2012 | Jan. 18, 2012 | Jan. 18, 2012 | Jan. 18, 2012 | Jan. 18, 2012 | Jan. 18, 2012 |
In Thousands, unless otherwise specified | LeapFrogRx [Member] | Developed technology [Member] | Backlog [Member] | Non-competition agreements [Member] | Customer relationships [Member] | |||||
LeapFrogRx [Member] | LeapFrogRx [Member] | LeapFrogRx [Member] | LeapFrogRx [Member] | |||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tangible assets | ' | ' | ' | ' | ' | $685 | ' | ' | ' | ' |
Intangible assets: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intangible assets | ' | ' | ' | ' | ' | 1,500 | 1,124 | 100 | 100 | 158 |
Liabilities assumed | ' | ' | ' | ' | ' | -1,024 | ' | ' | ' | ' |
Payments due from seller | ' | ' | ' | ' | ' | 667 | ' | ' | ' | ' |
Goodwill | 1,509 | ' | 1,509 | ' | ' | 1,190 | ' | ' | ' | ' |
Total purchase price | ' | $1,000 | ' | $1,000 | $3,000 | $3,000 | ' | ' | ' | ' |
Convertible_Preferred_Stock_Ad
Convertible Preferred Stock - Additional Information (Detail) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Oct. 19, 2010 | Mar. 31, 2013 | Sep. 30, 2013 | 31-May-13 | Sep. 30, 2013 | Sep. 30, 2014 | Oct. 19, 2010 | Oct. 19, 2010 |
Warrant [Member] | Common Stock [Member] | Common Stock [Member] | Series C Convertible Preferred Stock [Member] | Series C Convertible Preferred Stock [Member] | ||||
IPO [Member] | IPO [Member] | Warrant [Member] | ||||||
Class of Warrant or Right [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Company's Series C Preferred Stock issued | ' | ' | ' | ' | ' | 86,655 | ' | 86,655 |
Exercise price of Series C Preferred Stock | ' | ' | ' | ' | ' | ' | $3.46 | ' |
Warrant exercisable period | '10 years | ' | ' | ' | ' | ' | ' | ' |
Revaluation expense | ' | $700 | $0 | ' | $0 | ' | ' | ' |
Number of common stock issued upon the conversion of common stock warrant, net of the warrant price | ' | ' | ' | 71,847 | 72,000 | ' | ' | ' |
Convertible_Preferred_Stock_Fa
Convertible Preferred Stock - Fair Value of Warrant (Detail) | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Equity [Abstract] | ' | ' |
Risk-free interest rate | 0.92% | 0.83% |
Dividend yield | 0.00% | 0.00% |
Volatility | 45.00% | 53.00% |
Expected term (in years) | '5 years 11 months 1 day | '8 years 18 days |
Convertible_Preferred_Stock_Ch
Convertible Preferred Stock - Change in Fair Value of Convertible Preferred Stock Warrant Liability (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Equity [Abstract] | ' | ' | ' |
Opening balance | $0 | $748 | $403 |
Issuance of convertible preferred stock warrant | ' | 0 | 0 |
Increase in fair value | 0 | 671 | 345 |
Reclassification of warrant liability to additional paid-in capital | ' | -1,419 | 0 |
Closing balance | ' | $0 | $748 |
Schedule_II_Valuation_and_Qual
Schedule II - Valuation and Qualifying Accounts (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' |
Valuation allowance for deferred tax assets, Balance at End of Period | $34,685 | $26,895 | ' |
Allowance for doubtful receivables [Member] | ' | ' | ' |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' |
Allowance for doubtful receivables, Balance at Beginning of Period | 46 | 55 | 10 |
Charged to Costs and Expenses | 0 | 48 | 55 |
Charged to Other Accounts | 46 | 57 | 10 |
Allowance for doubtful receivables, Balance at End of Period | 0 | 46 | 55 |
Valuation allowance for deferred tax assets [Member] | ' | ' | ' |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' |
Valuation allowance for deferred tax assets, Balance at Beginning of Period | 26,895 | 27,515 | 24,845 |
Charged to Costs and Expenses | 7,790 | 0 | 2,670 |
Charged to Other Accounts | 0 | 620 | 0 |
Valuation allowance for deferred tax assets, Balance at End of Period | $34,685 | $26,895 | $27,515 |