Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Mar. 31, 2015 | 29-May-15 | Sep. 30, 2014 |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | QUANTUM CORP /DE/ | ||
Entity Central Index Key | 709283 | ||
Current Fiscal Year End Date | -28 | ||
Entity Filer Category | Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | 31-Mar-15 | ||
Document Fiscal Year Focus | 2015 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | FALSE | ||
Document and Entity Information | 258,404,948 | ||
Trading Symbol | QTM | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $197.10 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2015 | Mar. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $67,948 | $99,125 |
Restricted cash | 2,621 | 2,760 |
Accounts receivable, net of allowance for doubtful accounts of $27 and $88, respectively | 124,159 | 101,605 |
Manufacturing inventories | 50,274 | 34,815 |
Service parts inventories | 24,640 | 25,629 |
Other current assets | 12,332 | 10,161 |
Total current assets | 281,974 | 274,095 |
Long-term assets: | ||
Property and equipment, less accumulated depreciation | 14,653 | 17,574 |
Intangible assets, less accumulated amortization | 731 | 3,911 |
Goodwill | 55,613 | 55,613 |
Other long-term assets | 5,784 | 10,605 |
Total long-term assets | 76,781 | 87,703 |
Total assets | 358,755 | 361,798 |
Current liabilities: | ||
Accounts payable | 54,367 | 41,792 |
Accrued warranty | 4,219 | 6,116 |
Deferred revenue, current | 95,899 | 98,098 |
Accrued restructuring charges, current | 3,855 | 4,345 |
Convertible subordinated debt, current | 83,735 | 0 |
Accrued compensation | 35,414 | 25,036 |
Other accrued liabilities | 20,740 | 15,168 |
Total current liabilities | 298,229 | 190,555 |
Long-term liabilities: | ||
Deferred revenue, long-term | 39,532 | 40,054 |
Accrued restructuring charges, long-term | 991 | 4,023 |
Convertible subordinated debt, long-term | 70,000 | 203,735 |
Other long-term liabilities | 10,441 | 10,831 |
Total long-term liabilities | 120,964 | 258,643 |
Commitments and contingencies | 0 | 0 |
Preferred stock: | ||
Preferred stock, 20,000 shares authorized; no shares issued as of March 31, 2015 and 2014 | 0 | 0 |
Common stock: | ||
Common stock, $0.01 par value; 1,000,000 shares authorized; 258,208 and 250,410 shares issued and outstanding as of March 31, 2015 and 2014, respectively | 2,582 | 2,504 |
Capital in excess of par | 456,411 | 443,547 |
Accumulated deficit | -523,311 | -540,071 |
Accumulated other comprehensive income | 3,880 | 6,620 |
Stockholders’ deficit | -60,438 | -87,400 |
Total liabilities and stockholders' deficit | $358,755 | $361,798 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 31, 2015 | Mar. 31, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $27 | $88 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 258,208,000 | 250,410,000 |
Common stock, shares outstanding | 258,208,000 | 250,410,000 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Income Statement [Abstract] | |||
Product revenue | $355,579 | $348,318 | $398,910 |
Service revenue | 155,674 | 147,199 | 144,037 |
Royalty revenue | 41,842 | 57,648 | 44,492 |
Total revenue | 553,095 | 553,165 | 587,439 |
Product cost of revenue | 237,679 | 237,076 | 267,274 |
Service cost of revenue | 70,730 | 75,930 | 79,604 |
Restructuring charges related to cost of revenue | 0 | 539 | 0 |
Total cost of revenue | 308,409 | 313,545 | 346,878 |
Gross margin | 244,686 | 239,620 | 240,561 |
Operating expenses: | |||
Research and development | 58,618 | 64,375 | 73,960 |
Sales and marketing | 113,954 | 118,771 | 136,873 |
General and administrative | 56,513 | 57,865 | 62,017 |
Restructuring charges | 1,666 | 10,675 | 10,171 |
Total operating expenses | 230,751 | 251,686 | 283,021 |
Gain on sale of assets | 462 | 267 | 0 |
Income (loss) from operations | 14,397 | -11,799 | -42,460 |
Other income and expense | 13,836 | 1,296 | -216 |
Interest expense | -9,460 | -9,754 | -8,342 |
Loss on debt extinguishment | -1,295 | 0 | 0 |
Income (loss) before income taxes | 17,478 | -20,257 | -51,018 |
Income tax provision | 718 | 1,217 | 1,161 |
Net income (loss) | $16,760 | ($21,474) | ($52,179) |
Basic net income (loss) per share | $0.07 | ($0.09) | ($0.22) |
Diluted net income (loss) per share | $0.06 | ($0.09) | ($0.22) |
Weighted average shares: | |||
Basic | 254,665 | 247,024 | 239,855 |
Diluted | 260,027 | 247,024 | 239,855 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $16,760 | ($21,474) | ($52,179) |
Other comprehensive income (loss), net of taxes: | |||
Foreign currency translation adjustments | -3,490 | 679 | -583 |
Net unrealized gain (loss) on revaluation of long-term intercompany balances, net of taxes of $200, $(67) and $51, respectively | 750 | -251 | 192 |
Total other comprehensive income (loss) | -2,740 | 428 | -391 |
Total comprehensive income (loss) | $14,020 | ($21,046) | ($52,570) |
CONSOLIDATED_STATEMENTS_OF_COM1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Statement of Comprehensive Income [Abstract] | |||
Taxes on unrealized gain (loss) on revaluation of long-term intercompany balance | $200 | ($67) | $51 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Cash flows from operating activities: | |||
Net income (loss) | $16,760 | ($21,474) | ($52,179) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation | 8,281 | 10,713 | 12,413 |
Amortization of intangible assets | 3,697 | 8,902 | 13,299 |
Amortization and write off of debt issuance costs | 1,896 | 1,634 | 1,347 |
Service parts lower of cost or market adjustment | 3,698 | 11,307 | 10,081 |
Deferred income taxes | -160 | 36 | -142 |
Share-based compensation | 11,583 | 13,459 | 15,139 |
Gain on sale of assets | -462 | 0 | 0 |
Gain on sale of other investments | -13,574 | 0 | 0 |
Changes in assets and liabilities, net of effect of acquisition: | |||
Accounts receivable | -22,554 | -4,770 | 11,880 |
Manufacturing inventories | -19,688 | 13,352 | -2,098 |
Service parts inventories | -1,010 | 2,675 | 3,735 |
Accounts payable | 12,849 | -5,881 | -8,630 |
Accrued warranty | -1,897 | -1,404 | -66 |
Deferred revenue | -2,721 | 8,651 | -370 |
Accrued restructuring charges | -3,548 | 3,619 | 3,009 |
Accrued compensation | 11,318 | -6,140 | -1,663 |
Other assets and liabilities | 1,566 | 795 | 1,980 |
Net cash provided by operating activities | 6,034 | 35,474 | 7,735 |
Cash flows from investing activities: | |||
Purchases of property and equipment | -3,241 | -5,957 | -10,099 |
Proceeds from sale of assets | 462 | 0 | 0 |
Change in restricted cash | -250 | 426 | 1,113 |
Purchases of other investments | -22 | -1,118 | -2,169 |
Return of principal from other investments | 112 | 0 | 247 |
Proceeds from sale of other investments | 15,097 | 0 | 0 |
Payment for business acquisition, net of cash acquired | -517 | 0 | 0 |
Net cash provided by (used in) investing activities | 11,641 | -6,649 | -10,908 |
Cash flows from financing activities: | |||
Repayments of long-term debt | 0 | 0 | -49,495 |
Borrowings of convertible subordinated debt, net | 0 | 0 | 67,701 |
Repayments of convertible subordinated debt | -50,000 | -1,265 | 0 |
Payment of taxes due upon vesting of restricted stock | -2,378 | -1,880 | -2,036 |
Proceeds from issuance of common stock | 3,737 | 4,430 | 4,805 |
Net cash provided by (used in) financing activities | -48,641 | 1,285 | 20,975 |
Effect of exchange rate changes on cash and cash equivalents | -211 | 39 | -87 |
Net increase (decrease) in cash and cash equivalents | -31,177 | 30,149 | 17,715 |
Cash and cash equivalents at beginning of period | 99,125 | 68,976 | 51,261 |
Cash and cash equivalents at end of period | 67,948 | 99,125 | 68,976 |
Supplemental disclosure of cash flow information: | |||
Proceeds from sale of other investments included in other assets | 1,564 | 0 | 0 |
Purchases of property and equipment included in accounts payable | 429 | 649 | 354 |
Cash paid during the year for: | |||
Interest | 8,498 | 8,247 | 5,672 |
Income taxes, net of refunds | $750 | $574 | $2,596 |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT (USD $) | Total | Common Stock | Capital in Excess of Par Value | Accumulated Deficit | Accumulated Other Comprehensive Income |
In Thousands | |||||
Balance at Mar. 31, 2012 | ($47,701) | $2,364 | $409,770 | ($466,418) | $6,583 |
Balance, shares at Mar. 31, 2012 | 236,402 | ||||
Net income (loss) | -52,179 | -52,179 | |||
Foreign currency translation adjustments | -583 | -583 | |||
Net unrealized gain (loss) on revaluation of long-term intercompany balance, net of tax | 192 | 192 | |||
Shares issued under employee stock purchase plan | 4,440 | 38 | 4,402 | ||
Shares issued under employee stock purchase plan, shares | 3,783 | ||||
Shares issued under employee stock incentive plans, net | -1,671 | 29 | -1,700 | ||
Shares issued under employee stock incentive plans, net, shares | 2,895 | ||||
Share-based compensation expense | 15,139 | 15,139 | |||
Balance at Mar. 31, 2013 | -82,363 | 2,431 | 427,611 | -518,597 | 6,192 |
Balance, shares at Mar. 31, 2013 | 243,080 | ||||
Net income (loss) | -21,474 | -21,474 | |||
Foreign currency translation adjustments | 679 | 679 | |||
Net unrealized gain (loss) on revaluation of long-term intercompany balance, net of tax | -251 | -251 | |||
Shares issued under employee stock purchase plan | 3,456 | 32 | 3,424 | ||
Shares issued under employee stock purchase plan, shares | 3,220 | ||||
Shares issued under employee stock incentive plans, net | -906 | 41 | -947 | ||
Shares issued under employee stock incentive plans, net, shares | 4,110 | ||||
Share-based compensation expense | 13,459 | 13,459 | |||
Balance at Mar. 31, 2014 | -87,400 | 2,504 | 443,547 | -540,071 | 6,620 |
Balance, shares at Mar. 31, 2014 | 250,410 | 250,410 | |||
Net income (loss) | 16,760 | 16,760 | |||
Foreign currency translation adjustments | -3,490 | -3,490 | |||
Net unrealized gain (loss) on revaluation of long-term intercompany balance, net of tax | 750 | 750 | |||
Shares issued under employee stock purchase plan | 2,893 | 28 | 2,865 | ||
Shares issued under employee stock purchase plan, shares | 2,790 | ||||
Shares issued under employee stock incentive plans, net | -1,534 | 50 | -1,584 | ||
Shares issued under employee stock incentive plans, net, shares | 5,008 | ||||
Share-based compensation expense | 11,583 | 11,583 | |||
Balance at Mar. 31, 2015 | ($60,438) | $2,582 | $456,411 | ($523,311) | $3,880 |
Balance, shares at Mar. 31, 2015 | 258,208 | 258,208 |
CONSOLIDATED_STATEMENTS_OF_STO1
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Statement of Stockholders' Equity [Abstract] | |||
Taxes on unrealized gain (loss) on revaluation of long-term intercompany balance | $200 | ($67) | $51 |
BASIS_OF_PRESENTATION
BASIS OF PRESENTATION | 12 Months Ended |
Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION |
Quantum Corporation (“Quantum”, the “Company”, “us” or “we”), is a leading expert in scale-out storage, archive and data protection, providing solutions for capturing, sharing, transforming and preserving digital assets over the entire data lifecycle. Our customers, ranging from small businesses to large/multi-national enterprises, trust us to address their most demanding content workflow challenges. We provide solutions for storing and protecting information in physical, virtual and cloud environments that are designed to help customers Be Certain™ they have an end-to-end storage foundation to maximize the value of their data by making it accessible whenever and wherever needed, retaining indefinitely and reducing total cost and complexity. We work closely with a broad network of distributors, value-added resellers (“VARs”), direct marketing resellers (“DMRs”), original equipment manufacturers (“OEMs”) and other suppliers to meet customers’ evolving needs. Our stock is traded on the New York Stock Exchange under the symbol QTM. | |
The accompanying Consolidated Financial Statements include the accounts of Quantum and our wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated. The preparation of our Consolidated Financial Statements in conformity with generally accepted accounting principles (“GAAP”) in the U.S. requires management to make estimates and assumptions that affect the reported amount of assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the period. We base estimates on historical experience and on various assumptions about the future that are believed to be reasonable based on available information. Our reported financial position or results of operations may be materially different under different conditions or when using different estimates and assumptions, particularly with respect to significant accounting policies, which are discussed below. In the event that estimates or assumptions prove to differ from actual results, adjustments are made in the current period to reflect this current information. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||||||||
Revenue Recognition | ||||||||||||||||
Revenue consists of sales of hardware, software and services, as well as royalties we earn for the license of certain intellectual property. Revenue is recognized from the sale of products and services when it is realized or realizable and earned. Revenue is considered realized and earned when: persuasive evidence of an arrangement exists; delivery has occurred or services have been rendered; the price to the buyer is fixed or determinable; and when collectability is reasonably assured. Royalty revenue is recognized when earned or amounts can be reasonably estimated. | ||||||||||||||||
Multiple Element Arrangements | ||||||||||||||||
We enter into sales arrangements with customers that contain multiple deliverables such as hardware, software and services, and these arrangements require assessment of each deliverable to determine its estimated selling price. Additionally, we use judgment in order to determine the appropriate timing of revenue recognition and to assess whether any software and non-software components function together to deliver a tangible product’s essential functionality in order to ensure the arrangement is properly accounted for as software or hardware revenue. The majority of our products are hardware products which contain software essential to the overall functionality of the product. Hardware products are generally sold with customer field support agreements. | ||||||||||||||||
For arrangements with multiple elements, arrangement consideration is first allocated between software (consisting of nonessential and stand-alone software) and non-software deliverables on a relative fair value basis. | ||||||||||||||||
Arrangement consideration in such multiple element transactions is allocated to each non-software element based on the fair value hierarchy, where the selling price for an element is based on vendor-specific objective evidence (“VSOE”), if available; third-party evidence (“TPE”), if VSOE is not available; or the best estimate of selling price (“BESP”), if neither VSOE nor TPE is available. For BESP, we consider our discounting and internal pricing practices. | ||||||||||||||||
For software deliverables, we allocate revenue between multiple elements based on software revenue recognition guidance, which requires revenue earned on software arrangements involving multiple elements to be allocated to each element based on the relative fair values of those elements. The fair value of an element must be based on VSOE. Where fair value of delivered elements is not available, revenue is recognized on the “residual method” based on the fair value of undelivered elements. If evidence of fair value of one or more undelivered elements does not exist, all revenue is deferred and recognized at the earlier of the delivery of those elements or the establishment of fair value of the remaining undelivered elements. | ||||||||||||||||
Product Revenue — Hardware | ||||||||||||||||
Revenue for hardware products sold to distributors, VARs, DMRs, OEMs and end users is generally recognized upon shipment. When significant post-delivery obligations exist, the related revenue is deferred until such obligations are fulfilled. If there are customer acceptance criteria in the contract, we recognize revenue upon end user acceptance. | ||||||||||||||||
In the period revenue is recognized, allowances are provided for estimated future price adjustments, such as rebates, price protection and future product returns. These allowances are based on programs in existence at the time revenue is recognized, plans regarding future price adjustments, the customers’ master agreements and historical product return rates. Since we have historically been able to reliably estimate the amount of allowances required, we recognize revenue, net of projected allowances, upon shipment to our customers. If we were unable to reliably estimate the amount of revenue adjustments in any specific reporting period, then we would be required to defer recognition of the revenue until the rights had lapsed and we were no longer under any obligation to reduce the price or accept the return of the product. | ||||||||||||||||
Product Revenue — Software | ||||||||||||||||
For software products, we generally recognize revenue upon delivery of the software. Revenue from post-contract customer support agreements, which entitle software customers to both telephone support and any unspecified upgrades and enhancements during the term of the agreement, is classified as product revenue and recognized ratably over the term of the support agreement. | ||||||||||||||||
We license certain software to customers under licensing agreements that allow those customers to embed our software into specific products they offer. As consideration, licensees pay us a fee based on the amount of sales of their products that incorporate our software. On a periodic and timely basis, the licensees provide us with reports listing their sales to end users for which they owe us license fees. As the reports substantiate delivery has occurred, we recognize revenue based on the information in these reports or when amounts can be reasonably estimated. | ||||||||||||||||
Service Revenue | ||||||||||||||||
Revenue for service is generally recognized upon services being rendered. Service revenue primarily consists of customer field support agreements for our hardware products. For customer field support agreements, revenue equal to the separately stated price of these service contracts for our hardware products is initially deferred and recognized as revenue ratably over the contract period. | ||||||||||||||||
Royalty Revenue | ||||||||||||||||
We license certain intellectual property to third party manufacturers under arrangements that are represented by master contracts. The master contracts give the third party manufacturers rights to the intellectual property which include allowing them to either manufacture or include the intellectual property in products for resale. As consideration, the licensees pay us a per-unit royalty for sales of their products that incorporate our intellectual property. On a periodic and timely basis, the licensees provide us with reports listing units sold to end users subject to the royalties. As the reports substantiate delivery has occurred, we recognize revenue based on the information in these reports or when amounts can be reasonably estimated. | ||||||||||||||||
Service Cost of Revenue | ||||||||||||||||
We classify expenses as service cost of revenue by estimating the portion of our total cost of revenue that relates to providing field support to our customers under contract. These estimates are based upon a variety of factors, including the nature of the support activity and the level of infrastructure required to support the activities from which we earn service revenue. In the event our service business changes, our estimates of cost of service revenue may be impacted. | ||||||||||||||||
Shipping and Handling Fees | ||||||||||||||||
Shipping and handling fees are included in cost of revenue and were $12.3 million, $13.6 million and $16.0 million in fiscal 2015, 2014 and 2013, respectively. | ||||||||||||||||
Research and Development Costs | ||||||||||||||||
Expenditures relating to the development of new products and processes are expensed as incurred. These costs include expenditures for employee compensation, materials used in the development effort, other internal costs, as well as expenditures for third party professional services. We have determined that technological feasibility for our software products is reached shortly before the products are released to manufacturing. Costs incurred after technological feasibility is established have not been material. We expense software-related research and development costs as incurred. | ||||||||||||||||
Advertising Expense | ||||||||||||||||
We expense advertising costs as incurred. Advertising expense for the years ended March 31, 2015, 2014 and 2013 was $7.6 million, $8.4 million and $8.2 million, respectively. | ||||||||||||||||
Restructuring Charges | ||||||||||||||||
In recent periods and over the past several years, we have recorded significant restructuring charges related to the realignment and restructuring of our business operations. These charges represent expenses incurred in connection with strategic planning, certain cost reduction programs and acquisition integrations that we have implemented and consist of the cost of involuntary termination benefits, facilities charges, asset write-offs and other costs of exiting activities or geographies. | ||||||||||||||||
The charges for involuntary termination costs and associated expenses often require the use of estimates, primarily related to the number of employees to be paid severance and the amounts to be paid, largely based on years of service and statutory requirements. Assumptions to estimate facility exit costs include the ability to secure sublease income largely based on market conditions, the likelihood and amounts of a negotiated settlement for contractual lease obligations and other exit costs. Other estimates for restructuring charges consist of the realizable value of assets including associated disposal costs and termination fees with third parties for other contractual commitments. | ||||||||||||||||
Share-Based Compensation | ||||||||||||||||
The majority of our share-based awards are measured based on the fair market value of the underlying stock on the date of grant, We use the Black-Scholes stock option pricing model to estimate the fair value of stock option awards at the date of grant. For awards that contain market conditions, we use a Monte-Carlo simulation model to estimate the fair value of share-based awards. Both the Black-Scholes and Monte-Carlo models require the use of highly subjective assumptions, including expected life, expected volatility and expected risk-free rate of return. Other reasonable assumptions in either model could provide differing results. We calculate a forfeiture rate to estimate the share-based awards that will ultimately vest based on types of awards and historical experience. Additionally, for awards which are performance based, we make estimates as to the probability of the underlying performance being achieved. | ||||||||||||||||
Foreign Currency Translation and Transactions | ||||||||||||||||
Assets, liabilities and operations of foreign offices and subsidiaries are recorded based on the functional currency of the entity. For a majority of our foreign operations, the functional currency is the U.S. dollar. The assets and liabilities of foreign offices with a local functional currency are translated, for consolidation purposes, at current exchange rates from the local currency to the reporting currency, the U.S. dollar. The resulting gains or losses are reported as a component of other comprehensive income. Foreign exchange gains and losses from changes in the exchange rates underlying intercompany balances that are of a long-term investment nature are also reported as a component of other comprehensive income. Assets and liabilities denominated in other than the functional currency are remeasured each month with the remeasurement gain or loss recorded in other income and expense in the Consolidated Statements of Operations. Foreign currency gains and losses recorded in other income and expense were a $0.2 million gain in fiscal 2015, a $0.3 million gain in fiscal 2014 and a $0.5 million loss in fiscal 2013. | ||||||||||||||||
Derivative Instruments | ||||||||||||||||
Derivative instruments are carried at fair value on our Consolidated Balance Sheets. The fair values of the derivative financial instruments generally represent the estimated amounts we would expect to receive or pay upon termination of the contracts as of the reporting date. We did not hold any material derivative instruments during fiscal 2015, 2014 or 2013. | ||||||||||||||||
Income Taxes | ||||||||||||||||
We recognize deferred tax assets and liabilities due to the effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. We also reduce deferred tax assets by a valuation allowance if it is more likely than not that some or all of the deferred tax asset will not be realized. | ||||||||||||||||
We recognize the benefit from a tax position only if it is more-likely-than-not that the position would be sustained upon audit based solely on the technical merits of the tax position. The calculation of our tax liabilities requires judgment related to uncertainties in the application of complex tax regulations. It is inherently difficult and subjective to estimate such amounts, as we have to determine the probability of various possible outcomes. We reevaluate these uncertain tax positions on a quarterly basis. This evaluation is based on factors including, but not limited to, changes in facts or circumstances, changes in tax law, effectively settled issues under audit and new audit activity. A change in recognition or measurement would result in the recognition of a tax benefit or an additional tax charge to the provision. | ||||||||||||||||
We recognize interest and penalties related to uncertain tax positions in the income tax provision in the Consolidated Statements of Operations. To the extent accrued interest and penalties do not become payable, amounts accrued will be reduced and reflected as a reduction of the overall income tax provision in the period that such determination is made. | ||||||||||||||||
Cash Equivalents, Restricted Cash and Other Investments | ||||||||||||||||
We consider all highly liquid debt instruments with a maturity of 90 days or less at the time of purchase to be cash equivalents. Cash equivalents are carried at fair value, which approximates their cost. | ||||||||||||||||
Restricted cash is comprised of bank guarantees and similar required minimum balances that serve as cash collateral in connection with various items including insurance requirements, value added taxes, ongoing tax audits and leases in certain countries. | ||||||||||||||||
Investments in private technology venture limited partnerships are currently accounted for using the equity method because we are deemed to have influence. Ownership interests in these limited partnerships are accounted for under the equity method unless our interest is so minor that we have virtually no influence over the partnership operating and financial policies, in which case the cost method is used. | ||||||||||||||||
Investments in other privately held companies are accounted for under the cost method unless we hold a significant stake. We review non-marketable equity investments on a regular basis to determine if there has been any impairment of value which is other than temporary by reviewing their financial information, gaining knowledge of any new financing or other business agreements and assessing their operating viability. In fiscal 2015, we sold our investment in a privately held company that was accounted for under the cost method and recorded a $13.6 million gain in other income and expense in the Consolidated Statements of Operations. Investments in non-marketable equity investments are recorded in other long-term assets in the Consolidated Balance Sheets. | ||||||||||||||||
Allowance for Doubtful Accounts | ||||||||||||||||
We perform ongoing credit evaluations of our customers’ financial condition and, for the majority of our customers, require no collateral. For customers that do not meet our credit standards, we often require a form of collateral, such as cash deposits or letters of credit, prior to the completion of a transaction. These credit evaluations require significant judgment and are based on multiple sources of information. We analyze such factors as our historical bad debt experience, industry and geographic concentrations of credit risk, current economic trends and changes in customer payment terms. We maintain an allowance for doubtful accounts based on historical experience and expected collectability of outstanding accounts receivable. We record bad debt expense in general and administrative expenses. | ||||||||||||||||
Manufacturing Inventories | ||||||||||||||||
Our manufacturing inventory is stated at the lower of cost or market, with cost computed on a first-in, first-out (“FIFO”) basis. Adjustments to reduce the cost of manufacturing inventory to its net realizable value, if required, are made for estimated excess, obsolete or impaired balances. Factors influencing these adjustments include declines in demand, rapid technological changes, product life cycle and development plans, component cost trends, product pricing, physical deterioration and quality issues. Revisions to these adjustments would be required if these factors differ from our estimates. | ||||||||||||||||
Service Parts Inventories | ||||||||||||||||
Our service parts inventories are stated at the lower of cost or market. We carry service parts because we generally provide product warranty for one to three years and earn revenue by providing enhanced and extended warranty and repair service during and beyond this warranty period. Service parts inventories consist of both component parts, which are primarily used to repair defective units, and finished units, which are provided for customer use permanently or on a temporary basis while the defective unit is being repaired. Defective parts returned from customers that can be repaired are repaired and put back into service parts inventories at their current carrying value. We record adjustments to reduce the carrying value of service parts inventory to its net realizable value, and we dispose of parts with no use and a net realizable value of zero. Factors influencing these adjustments include product life cycles, end of service life plans and volume of enhanced or extended warranty service contracts. Estimates of net realizable value involve significant estimates and judgments about the future, and revisions would be required if these factors differ from our estimates. | ||||||||||||||||
Property and Equipment | ||||||||||||||||
Property and equipment are carried at cost, less accumulated depreciation and amortization, computed on a straight-line basis over the estimated useful lives of the assets as follows: | ||||||||||||||||
Machinery and equipment | 3 to 5 years | |||||||||||||||
Computer equipment | 3 to 5 years | |||||||||||||||
ERP software | 10 years | |||||||||||||||
Other software | 3 years | |||||||||||||||
Furniture and fixtures | 5 years | |||||||||||||||
Other office equipment | 5 years | |||||||||||||||
Leasehold improvements | Life of lease | |||||||||||||||
Amortizable Intangible and Other Long-lived Assets | ||||||||||||||||
We review the useful lives of amortizable intangible and other long-lived assets (“long-lived assets”) quarterly and review long-lived assets for impairment whenever events or changes in circumstances indicate the carrying amount of such assets may not be recoverable. The company operates as a single reporting unit for business and operating purposes, and our impairment evaluation also treats the company as a single asset group. Impairment indicators we consider include a significant decrease in the market price of our long-lived asset group, adverse changes in the extent or manner in which our long-lived assets are being used, adverse changes in the business climate that could affect the value of our long-lived assets, a current period operating or cash flow loss combined with a history of operating or cash flow losses or a projection or forecast that demonstrates continuing losses associated with the use of our long-lived assets and an expectation that it is more likely than not our long-lived assets will be sold or otherwise disposed of significantly before the end of their previously estimated useful life. If we identify impairment indicators, we evaluate recoverability using an undiscounted cash flow approach. Estimates of future cash flows incorporate company forecasts and our expectations of future use of our long-lived assets, and these factors are impacted by market conditions. If impairment is indicated, an impairment charge is recorded to write the long-lived assets down to their estimated fair value. | ||||||||||||||||
Goodwill | ||||||||||||||||
We evaluate goodwill for impairment annually during the fourth quarter of our fiscal year, or more frequently when indicators of impairment are present. We operate as a single reporting unit and consider the company as a whole when reviewing impairment factors. In addition to comparing the carrying value of the reporting unit to its fair value, because we have negative book value, we perform a qualitative analysis to determine whether it is more likely than not that the fair value of goodwill is less than its carrying amount. Some of the impairment indicators we consider include significant differences between the carrying amount and the estimated fair value of our assets and liabilities; macroeconomic conditions such as a deterioration in general economic condition or limitations on accessing capital; industry and market considerations such as a deterioration in the environment in which we operate and an increased competitive environment; cost factors such as increases in raw materials, labor, or other costs that have a negative effect on earnings and cash flows; overall financial performance such as negative or declining cash flows or a decline in actual or planned revenue or earnings compared with actual and projected results of relevant prior periods; other relevant events such as litigation, changes in management, key personnel, strategy or customers; the testing for recoverability of our long-lived assets and a sustained decrease in share price. We evaluate the significance of identified events and circumstances on the basis of the weight of evidence along with how they could affect the relationship between the reporting unit's fair value and carrying amount, including positive mitigating events and circumstances. If we determine it is more likely than not that the fair value of goodwill is less than its carrying amount, then a second step is performed to quantify the amount of goodwill impairment. If impairment is indicated, a goodwill impairment charge is recorded to write the goodwill down to its implied fair value. | ||||||||||||||||
Accrued Warranty | ||||||||||||||||
We generally warrant our hardware products against certain defects for periods ranging from 1 to 3 years from the date of sale. Our tape automation systems, disk backup systems and scale-out storage solutions may carry service agreements with customers that choose to extend or upgrade the warranty service. We use a combination of internal resources and third party service providers to supply field service and support. If the actual costs were to differ significantly from our estimates, we would record the impact of these unforeseen costs or cost reductions in subsequent periods. | ||||||||||||||||
We estimate future failure rates based upon historical product failure trends as well as anticipated future failure rates if believed to be significantly different from historical trends. Similarly, we estimate future costs of repair based upon historical trends and anticipated future costs if they are expected to significantly differ, for example due to negotiated agreements with third parties. We use a consistent model and exercise considerable judgment in determining the underlying estimates. Our model requires an element of subjectivity for all of our products. For example, historical rates of return are not completely indicative of future return rates and we must therefore exercise judgment with respect to future deviations from our historical return rate. When actual failure rates differ significantly from our estimates, we record the impact in subsequent periods and update our assumptions and forecasting models accordingly. As our newer products mature, we are able to improve our estimates with respect to these products. It is reasonably likely that assumptions will be updated for failure rates and, therefore, our accrued warranty estimate could change in the future. | ||||||||||||||||
Business Combinations | ||||||||||||||||
We allocate the purchase price paid to the assets acquired and liabilities assumed in a business combination at their estimated fair values as of the acquisition date. Any excess purchase price above the identified net tangible and intangible assets and assumed liabilities is allocated to goodwill. We consider fair value to be the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. We estimate fair value using the fair value hierarchy for the tangible and intangible assets acquired as well as liabilities and contingencies assumed from the acquired company. | ||||||||||||||||
Common Stock Repurchases | ||||||||||||||||
During fiscal 2000, the Board of Directors authorized us to repurchase up to $700 million of our common stock in open market or private transactions. As of March 31, 2015 and 2014, there was $87.9 million remaining on our authorization to repurchase Quantum common stock. Our ability to repurchase our common stock is restricted unless we meet certain thresholds under the terms of our Wells Fargo credit agreement. | ||||||||||||||||
Fair Value of Financial Instruments | ||||||||||||||||
We use exit prices, that is the price to sell an asset or transfer a liability, to measure assets and liabilities that are within the scope of the fair value measurements guidance. We classify these assets and liabilities based on the following fair value hierarchy: | ||||||||||||||||
Level 1: | Quoted (observable) market prices in active markets for identical assets or liabilities. | |||||||||||||||
Level 2: | Observable inputs other than Level 1, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability. | |||||||||||||||
Level 3: | Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. | |||||||||||||||
The assets measured and recorded at fair value on a recurring basis consist of money market funds which are valued using quoted market prices at the respective balance sheet dates and are level 1 fair value measurements (in thousands): | ||||||||||||||||
As of March 31, | ||||||||||||||||
2015 | 2014 | |||||||||||||||
Money market funds | $ | 34,278 | $ | 93,077 | ||||||||||||
We have certain non-financial assets that are measured at fair value on a non-recurring basis when there is an indicator of impairment, and they are recorded at fair value only when an impairment is recognized. These assets include property and equipment, amortizable intangible assets and goodwill. We did not record impairments to any non-financial assets in fiscal 2015 or fiscal 2014. We do not have any non-financial liabilities measured and recorded at fair value on a non-recurring basis. | ||||||||||||||||
Our financial liabilities were comprised primarily of convertible subordinated debt at March 31, 2015 and 2014. The carrying value and fair value based on quoted market prices in less active markets (level 2 fair value measurement) were as follows (in thousands): | ||||||||||||||||
As of March 31, | ||||||||||||||||
2015 | 2014 | |||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||
Convertible subordinated debt | $ | 153,735 | $ | 166,551 | $ | 203,735 | $ | 203,820 | ||||||||
Risks and Uncertainties | ||||||||||||||||
As is typical in the information storage industry, a significant portion of our customer base is concentrated among a small number of OEMs, distributors and large VARs. The loss of any one of our more significant customers, or a significant decrease in the sales volume with one of these significant customers, could have a material adverse effect on our results of operations and financial condition. Furthermore, if there is a downturn in general economic conditions, the resulting effect on IT spending could also have a material adverse effect on our results of operations and financial condition. We also face risks and uncertainties since our competitors in one area may be customers or suppliers in another. | ||||||||||||||||
A limited number of products comprise a significant majority of our sales, and due to increasingly rapid technological change in the industry, our future operating results depend on our ability to develop and successfully introduce new products. | ||||||||||||||||
Concentration of Credit Risk | ||||||||||||||||
We currently invest our excess cash in deposits with major banks and in money market funds. In the past, we have also held investments in short-term debt securities of companies with strong credit ratings from a variety of industries, and we may make investments in these securities in the future. We have not experienced any material losses on these investments and limit the amount of credit exposure to any one issuer and to any one type of investment. | ||||||||||||||||
We sell products to customers in a wide variety of industries on a worldwide basis. In countries or industries where we are exposed to material credit risk, we may require collateral, including cash deposits and letters of credit, prior to the completion of a transaction. We do not believe we have significant credit risk beyond that provided for in the financial statements in the ordinary course of business. | ||||||||||||||||
Sales to our top five customers represented 31% of revenue in fiscal 2015 and fiscal 2014 and 32% of revenue in fiscal 2013. We had no customers that comprised 10% or greater of revenue in fiscal 2015, fiscal 2014 or fiscal 2013. | ||||||||||||||||
Recently Adopted Accounting Pronouncements | ||||||||||||||||
In July 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("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 (“ASU 2013-11”). ASU 2013-11 requires an entity to present an unrecognized tax benefit as a reduction of a deferred tax asset for a net operating loss (“NOL”) carryforward, or similar tax loss or tax credit carryforward, rather than as a liability when (1) the uncertain tax position would reduce the NOL or other carryforward under the tax law of the applicable jurisdiction and (2) the entity intends to use the deferred tax asset for that purpose. ASU 2013-11 does not require new recurring disclosures. ASU 2013-11 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. We adopted ASU 2013-11 prospectively in the first quarter of fiscal 2015. Adoption did not impact our statements of financial position or results of operations. | ||||||||||||||||
Recent Accounting Pronouncements | ||||||||||||||||
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”). ASU 2014-09 requires entities to recognize revenue through the application of a five-step model, which includes identification of the contract, identification of the performance obligations, determination of the transaction price, allocation of the transaction price to the performance obligations and recognition of revenue as the entity satisfies the performance obligations. ASU 2014-09 will become effective for us beginning April 1, 2017, or fiscal 2018. We are currently evaluating the guidance to determine the potential impact on our financial condition, results of operations, cash flows and financial statement disclosures. | ||||||||||||||||
In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements – Going Concern (Topic 205-40): Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern (“ASU 2014-15”). ASU 2014-15 requires that management assess an entity’s ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in U.S. auditing standards. ASU 2014-15 is effective for annual periods ending after December 15, 2016, and for annual periods and interim periods thereafter. We plan to adopt ASU 2014-15 as of the end of our fiscal year ending March 31, 2017 and do not anticipate adoption will impact our statements of financial position or results of operations. | ||||||||||||||||
In April 2015, the FASB issued ASU No. 2015-03, Interest - Imputation of Interest (Topic 835-30): Simplifying the Presentation of Debt Issuance Costs ("ASU 2015-03"). ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs is not affected by ASU 2015-03. ASU 2015-03 is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted. We plan to adopt ASU 2015-03 beginning April 1, 2015 and we will reclassify debt issuance costs from other current and long-term assets to convertible subordinated debt on the Consolidated Balance Sheets; we do not otherwise anticipate adoption will materially impact our statements of financial position or results of operations. |
ACQUISITION
ACQUISITION | 12 Months Ended |
Mar. 31, 2015 | |
Business Combinations [Abstract] | |
ACQUISITION | ACQUISITION |
On July 29, 2014, we acquired a majority of the assets of Symform, Inc., a Washington corporation, for cash of approximately $0.5 million. The assets, consisting primarily of Symform technology, were recorded as purchased technology and are expected to enhance our cloud software capabilities and service offerings for data protection and scale-out storage. This acquisition was recorded as a business combination and the effect was not material to our financial position, results of operations or cash flows. |
BALANCE_SHEET_DETAILS
BALANCE SHEET DETAILS | 12 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Balance Sheet Related Disclosures [Abstract] | ||||||||
BALANCE SHEET DETAILS | BALANCE SHEET DETAILS | |||||||
Cash, cash equivalents and restricted cash consisted of (in thousands): | ||||||||
As of March 31, | ||||||||
2015 | 2014 | |||||||
Cash | $ | 36,291 | $ | 8,808 | ||||
Money market funds | 34,278 | 93,077 | ||||||
$ | 70,569 | $ | 101,885 | |||||
Manufacturing inventories consisted of (in thousands): | ||||||||
As of March 31, | ||||||||
2015 | 2014 | |||||||
Finished goods | $ | 28,022 | $ | 18,069 | ||||
Work in process | 58 | 1,056 | ||||||
Materials and purchased parts | 22,194 | 15,690 | ||||||
$ | 50,274 | $ | 34,815 | |||||
Service parts inventories consisted of (in thousands): | ||||||||
As of March 31, | ||||||||
2015 | 2014 | |||||||
Finished goods | $ | 18,143 | $ | 17,926 | ||||
Component parts | 6,497 | 7,703 | ||||||
$ | 24,640 | $ | 25,629 | |||||
Property and equipment consisted of (in thousands): | ||||||||
As of March 31, | ||||||||
2015 | 2014 | |||||||
Machinery and equipment | $ | 122,339 | $ | 119,783 | ||||
Furniture and fixtures | 5,816 | 6,127 | ||||||
Leasehold improvements | 20,309 | 20,116 | ||||||
148,464 | 146,026 | |||||||
Less: accumulated depreciation | (133,811 | ) | (128,452 | ) | ||||
$ | 14,653 | $ | 17,574 | |||||
INTANGIBLE_ASSETS_AND_GOODWILL
INTANGIBLE ASSETS AND GOODWILL | 12 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||
INTANGIBLE ASSETS AND GOODWILL | INTANGIBLE ASSETS AND GOODWILL | |||||||||||||||||||||||
Intangible Assets | ||||||||||||||||||||||||
Acquired intangible assets are amortized over their estimated useful lives, which generally range from one to eight years. In estimating the useful lives of intangible assets, we considered the following factors: | ||||||||||||||||||||||||
• | The cash flow projections used to estimate the useful lives of the intangible assets showed a trend of growth that was expected to continue for an extended period of time; | |||||||||||||||||||||||
• | Our tape automation products, disk backup systems and scale-out storage solutions, in particular, have long development cycles; these products have experienced long product life cycles; and | |||||||||||||||||||||||
• | Our ability to leverage core technology into data protection and scale-out storage solutions and, therefore, to extend the lives of these technologies. | |||||||||||||||||||||||
Acquired IPR&D is amortized over its estimated useful life once technological feasibility is reached. If IPR&D is determined to not have technological feasibility or is abandoned, we write off the IPR&D in that period. | ||||||||||||||||||||||||
Following is the weighted average amortization period for our amortizable intangible assets: | ||||||||||||||||||||||||
Amortization | ||||||||||||||||||||||||
(Years) | ||||||||||||||||||||||||
Purchased technology | 6.2 | |||||||||||||||||||||||
Trademarks | 6 | |||||||||||||||||||||||
Customer lists | 8 | |||||||||||||||||||||||
All intangible assets | 6.7 | |||||||||||||||||||||||
Intangible amortization within our Consolidated Statements of Operations for the years ended March 31, 2015, 2014 and 2013 follows (in thousands): | ||||||||||||||||||||||||
For the year ended March 31, | ||||||||||||||||||||||||
2015 | 2014 | 2013 | ||||||||||||||||||||||
Purchased technology | $ | 913 | $ | 1,476 | $ | 3,775 | ||||||||||||||||||
Trademarks | — | — | 244 | |||||||||||||||||||||
Customer lists | 2,784 | 7,426 | 9,280 | |||||||||||||||||||||
$ | 3,697 | $ | 8,902 | $ | 13,299 | |||||||||||||||||||
The following table provides a summary of the carrying value of intangible assets (in thousands): | ||||||||||||||||||||||||
As of March 31, | ||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||||||||
Amount | Amortization | Amount | Amount | Amortization | Amount | |||||||||||||||||||
Purchased technology | $ | 179,992 | $ | (179,261 | ) | $ | 731 | $ | 179,475 | $ | (178,348 | ) | $ | 1,127 | ||||||||||
Trademarks | 3,900 | (3,900 | ) | — | 3,900 | (3,900 | ) | — | ||||||||||||||||
Customer lists | 66,219 | (66,219 | ) | — | 76,019 | (73,235 | ) | 2,784 | ||||||||||||||||
$ | 250,111 | $ | (249,380 | ) | $ | 731 | $ | 259,394 | $ | (255,483 | ) | $ | 3,911 | |||||||||||
The total expected future amortization related to amortizable intangible assets is provided in the table below (in thousands): | ||||||||||||||||||||||||
Amortization | ||||||||||||||||||||||||
Fiscal 2016 | $ | 280 | ||||||||||||||||||||||
Fiscal 2017 | 175 | |||||||||||||||||||||||
Fiscal 2018 | 138 | |||||||||||||||||||||||
Fiscal 2019 | 103 | |||||||||||||||||||||||
Fiscal 2020 | 35 | |||||||||||||||||||||||
Total as of March 31, 2015 | $ | 731 | ||||||||||||||||||||||
We evaluate our amortizable intangible and other long-lived assets for impairment whenever indicators of impairment exist and concluded the carrying amount of our long-lived assets was recoverable and there was no impairment in fiscal 2015, 2014 and 2013. In fiscal 2015 and fiscal 2014, we wrote off $9.8 million and $31.0 million, respectively, of fully amortized intangible assets related to prior acquisitions. In-process research and development of $0.1 million reached technological feasibility during fiscal 2014, was transferred to amortizable purchased technology intangible assets and is being amortized over its estimated useful life. | ||||||||||||||||||||||||
Goodwill | ||||||||||||||||||||||||
The following provides a summary of the carrying value of goodwill (in thousands): | ||||||||||||||||||||||||
Goodwill | Accumulated | Net Amount | ||||||||||||||||||||||
Impairment Losses | ||||||||||||||||||||||||
Balances as of March 31, 2015 and March 31, 2014 | $ | 394,613 | $ | (339,000 | ) | $ | 55,613 | |||||||||||||||||
Our annual impairment evaluation for goodwill in the fourth quarters of fiscal 2015, 2014 and 2013 did not indicate any impairment of our goodwill in fiscal 2015, 2014 and 2013. |
ACCRUED_WARRANTY
ACCRUED WARRANTY | 12 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Product Warranties Disclosures [Abstract] | ||||||||
ACCRUED WARRANTY | ACCRUED WARRANTY | |||||||
The following table details the change in the accrued warranty balance (in thousands): | ||||||||
For the year ended March 31, | ||||||||
2015 | 2014 | |||||||
Beginning balance | $ | 6,116 | $ | 7,520 | ||||
Additional warranties issued | 6,146 | 8,508 | ||||||
Adjustments for warranties issued in prior fiscal years | (185 | ) | (228 | ) | ||||
Settlements | (7,858 | ) | (9,684 | ) | ||||
Ending balance | $ | 4,219 | $ | 6,116 | ||||
We warrant our products against certain defects for one to three years. A provision for estimated future costs and estimated returns for repair or replacement relating to warranty is recorded when products are shipped and revenue recognized. Our estimate of future costs to satisfy warranty obligations is primarily based on historical trends and, if believed to be significantly different from historical trends, estimates of future failure rates and future costs of repair. Future costs of repair include materials consumed in the repair, labor and overhead amounts necessary to perform the repair. If we determine in a future period that either actual failure rates or actual costs of repair were to differ from our estimates, we record the impact of those differences in that future period. |
DEBT
DEBT | 12 Months Ended | |||
Mar. 31, 2015 | ||||
Debt Disclosure [Abstract] | ||||
DEBT | DEBT | |||
Convertible Subordinated Debt | ||||
4.50% Notes | ||||
On October 31, 2012, we issued $60 million aggregate principal amount of 4.50% convertible subordinated notes due November 15, 2017, and on November 6, 2012 we issued an additional $10 million aggregate principal amount of 4.50% convertible subordinated notes due November 15, 2017 pursuant to an over-allotment provision (“4.50% notes”). These notes are convertible into shares of our common stock at a conversion rate of 607.1645 shares per $1,000 principal amount, a conversion price of approximately $1.65 per share. We may not redeem the notes prior to their maturity date although investors may convert the 4.50% notes into Quantum common stock until November 14, 2017 at their option. In addition, since purchasers are qualified institutional investors, as defined in Rule 144A under the Securities Act of 1933 (“Securities Act”), the 4.50% notes have not been registered under the Securities Act. We pay 4.50% interest per annum on the principal amount of the 4.50% notes semi-annually on May 15 and November 15 of each year beginning in May 2013. Interest began to accrue on October 31, 2012. The terms of the 4.50% notes are governed by an agreement dated October 31, 2012 between Quantum and U.S. Bank National Association. The 4.50% notes are subordinated to any existing indebtedness and other liabilities. We incurred and capitalized $2.3 million of fees for the 4.50% notes which are included in other long-term assets in our Consolidated Balance Sheets. These fees are amortized to interest expense over the term of the notes. | ||||
3.50% Notes | ||||
On November 15, 2010, we issued $135 million aggregate principal amount of 3.50% convertible subordinated notes due November 15, 2015 with a conversion price of $4.33 per share of our common stock (“3.50% notes”). We may not redeem the 3.50% notes prior to their maturity date although investors may convert the 3.50% notes into Quantum common stock until November 14, 2015 at their option. In addition, since purchasers are qualified institutional investors, as defined in Rule 144 under the Securities Act, the 3.50% notes have not been registered under the Securities Act. We pay 3.50% interest per annum on the principal amount of the 3.50% notes semi-annually on May 15 and November 15 of each year. The terms of the 3.50% notes are governed by an agreement dated November 15, 2010 between Quantum and U.S. Bank National Association. The 3.50% notes are subordinated to any existing indebtedness and other liabilities. During fiscal 2015, the 3.50% notes were reclassified from convertible subordinated debt, long-term to convertible subordinated debt, current as they are due November 15, 2015. We incurred and capitalized $5 million of loan fees in fiscal 2011 for the 3.50% notes which are included in other current assets in our Consolidated Balance Sheets. These fees are amortized to interest expense over the term of the notes. | ||||
On March 11, 2014, we entered into a private transaction with a note holder to purchase $1.3 million of aggregate principal amount of notes for $1.3 million. On January 28, 2015, we entered into a private transaction with a note holder to purchase $50 million of aggregate principal amount for $51 million . In connection with this transaction, we recorded a loss on debt extinguishment of $1.3 million comprised of the loss of $1 million from the notes purchased and a write-off of $0.3 million of unamortized debt issuance costs related to the purchased notes. We also paid accrued interest on the purchased notes of $0.4 million. We funded these transactions using cash on hand. | ||||
Wells Fargo Credit Agreement | ||||
On March 29, 2012, we refinanced the secured credit agreement with Credit Suisse by entering into a senior secured credit agreement (“WF credit agreement”) with Wells Fargo Capital Finance, LLC. We incurred and capitalized $1.0 million of fees related to the WF credit agreement which are included in other long-term assets in our Consolidated Balance Sheets. These fees are being amortized to interest expense over the term of the WF credit agreement in the Consolidated Statements of Operations . | ||||
On April 24, 2014, the WF credit agreement was amended to allow us to use proceeds from the credit agreement to repay the convertible subordinated notes so long as we have a fixed charge coverage ratio of 1.5 and liquidity of $25 million. The amendment also impacted the available line, maturity date and certain covenants and compliance obligations which are reflected below. In addition, there were amendments in fiscal 2013 and fiscal 2014, including an amendment to allow the assignment of one third of the total revolver commitment to Silicon Valley Bank and other conforming and related modifications. | ||||
Under the WF credit agreement, as amended, we have the ability to borrow the lesser of $75 million or the amount of the monthly borrowing base under a senior secured revolving credit facility. The WF credit agreement matures March 29, 2017 so long as an amount sufficient to repay the 3.50% notes is available for borrowing under the WF credit agreement or is deposited in a WF controlled account prior to August 16, 2015. Otherwise, the WF credit agreement matures on August 16, 2015. Quarterly, we are required to pay a .375% commitment fee on undrawn amounts under the revolving credit facility. | ||||
There is a blanket lien on all of our assets under the WF credit agreement in addition to certain financial and reporting covenants. We have letters of credit totaling $1 million, reducing the maximum amount available to borrow by this amount at March 31, 2015. | ||||
The interest rate on amounts borrowed is based on an election by us of an annual rate equal to (1) a base rate established by Wells Fargo plus an applicable margin of 1.0% to 1.5%, based on availability levels under the WF credit agreement or (2) the LIBOR rate plus an applicable margin ranging from 2.0% and 2.5%, based on availability levels under the WF credit agreement. The base rate is defined in the WF credit agreement. | ||||
The WF credit agreement contains customary covenants, including cross-default provisions, as well as financial covenants. Average liquidity must exceed $15 million each month. The fixed charge coverage ratio is required to be greater than 1.2 for the 12 month period ending on the last day of any month in which the covenant is applicable. This covenant is applicable only in months in which borrowings exceed $5 million at any time during the month and was not applicable in fiscal 2015. To avoid triggering mandatory field audits and Wells Fargo controlling our cash receipts, we must maintain liquidity of at least $20 million at all times. The fixed charge coverage ratio, average liquidity and liquidity are defined in the WF credit agreement and/or amendments. Certain schedules in the compliance certificate must be filed monthly if borrowings exceed $5 million; otherwise they are to be filed quarterly. | ||||
As of March 31, 2015, and during fiscal 2015, we were in compliance with all covenants and had no outstanding balance on the line of credit. | ||||
Debt Maturities | ||||
A summary of the scheduled maturities for our outstanding debt as of March 31, 2015 follows (in thousands): | ||||
Debt Maturity | ||||
Fiscal 2016 | $ | 83,735 | ||
Fiscal 2017 | — | |||
Fiscal 2018 | 70,000 | |||
Total as of March 31, 2015 | $ | 153,735 | ||
RESTRUCTURING_CHARGES
RESTRUCTURING CHARGES | 12 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||||||
RESTRUCTURING CHARGES | RESTRUCTURING CHARGES | |||||||||||||||
The following summarizes the type of restructuring expense for fiscal 2015, 2014 and 2013 (in thousands): | ||||||||||||||||
For the year ended March 31, | ||||||||||||||||
2015 | 2014 | 2013 | ||||||||||||||
Restructuring expense related to cost of revenue | $ | — | $ | 539 | $ | — | ||||||||||
Restructuring expense in operating expense | 1,666 | 10,675 | 10,171 | |||||||||||||
$ | 1,666 | $ | 11,214 | $ | 10,171 | |||||||||||
For the year ended March 31, | ||||||||||||||||
2015 | 2014 | 2013 | ||||||||||||||
Severance and benefits | $ | 406 | $ | 6,139 | $ | 8,251 | ||||||||||
Facilities | 1,250 | 4,303 | 1,920 | |||||||||||||
Other | 10 | 772 | — | |||||||||||||
$ | 1,666 | $ | 11,214 | $ | 10,171 | |||||||||||
Fiscal 2015 | ||||||||||||||||
Restructuring charges in fiscal 2015 were primarily due to facilities costs of $1.3 million as a result of further consolidating our facilities in the U.S. | ||||||||||||||||
Fiscal 2014 | ||||||||||||||||
Restructuring charges in fiscal 2014 were primarily due to strategic management decisions to outsource our manufacturing operations and further consolidate repair and service activities, inclusive of exiting manufacturing facilities. In addition, we had additional consolidation in research and development, sales and marketing and administrative activities and teams to align our workforce with our continuing operations plans. Severance and benefits charges of $6.1 million in fiscal 2014 were attributable to positions eliminated worldwide, with the majority of positions eliminated in the U.S. Facility restructuring charges of $4.3 million in fiscal 2014 were primarily due to accruing the remaining lease obligation for the vacated portion of our manufacturing facility in the U.S, reduced by estimated future sublease amounts. Other restructuring charges of $0.8 million were primarily due to charges related to cost of sales as a result of our manufacturing outsource decision. | ||||||||||||||||
Fiscal 2013 | ||||||||||||||||
Restructuring charges in fiscal 2013 were primarily due to severance and benefits expenses of $8.3 million for positions eliminated in both the U.S. and internationally across most functions of the business. Facility restructuring charges for fiscal 2013 were primarily due to accruing the remaining lease obligation for a vacant facility in the U.S. | ||||||||||||||||
The following tables show the activity and the estimated timing of future payouts for accrued restructuring (in thousands): | ||||||||||||||||
Severance and | Facilities | Other | Total | |||||||||||||
benefits | ||||||||||||||||
Balance as of March 31, 2012 | $ | 1,312 | $ | 440 | $ | — | $ | 1,752 | ||||||||
Restructuring costs | 8,815 | 1,920 | — | 10,735 | ||||||||||||
Restructuring charge reversal | (564 | ) | — | — | (564 | ) | ||||||||||
Cash payments | (6,852 | ) | (315 | ) | — | (7,167 | ) | |||||||||
Balance as of March 31, 2013 | 2,711 | 2,045 | — | 4,756 | ||||||||||||
Restructuring costs | 7,522 | 4,392 | 772 | 12,686 | ||||||||||||
Restructuring charge reversal | (1,383 | ) | (89 | ) | — | (1,472 | ) | |||||||||
Cash payments | (7,276 | ) | (607 | ) | (702 | ) | (8,585 | ) | ||||||||
Other non-cash | — | 983 | — | 983 | ||||||||||||
Balance as of March 31, 2014 | 1,574 | 6,724 | 70 | 8,368 | ||||||||||||
Restructuring costs | 749 | 1,680 | 13 | 2,442 | ||||||||||||
Restructuring charge reversal | (343 | ) | (430 | ) | (3 | ) | (776 | ) | ||||||||
Cash payments | (1,791 | ) | (3,617 | ) | (80 | ) | (5,488 | ) | ||||||||
Other non-cash | — | 300 | — | 300 | ||||||||||||
Balance as of March 31, 2015 | $ | 189 | $ | 4,657 | $ | — | $ | 4,846 | ||||||||
Estimated timing of future payouts: | Severance and | Facilities | Total | |||||||||||||
benefits | ||||||||||||||||
Fiscal 2016 | $ | 75 | $ | 3,780 | $ | 3,855 | ||||||||||
Fiscal 2017 to 2021 | 114 | 877 | 991 | |||||||||||||
$ | 189 | $ | 4,657 | $ | 4,846 | |||||||||||
Facility restructuring accruals will be paid in accordance with the respective facility lease terms and amounts above are net of estimated sublease amounts. |
STOCK_INCENTIVE_PLANS_AND_SHAR
STOCK INCENTIVE PLANS AND SHARE-BASED COMPENSATION | 12 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||
STOCK INCENTIVE PLANS AND SHARE-BASED COMPENSATION | STOCK INCENTIVE PLANS AND SHARE-BASED COMPENSATION | ||||||||||||||||||||
Description of Stock Incentive Plans | |||||||||||||||||||||
2012 Long-Term Incentive Plan | |||||||||||||||||||||
We have a stockholder approved 2012 Long-Term Incentive Plan (the “Plan”) which had 34.3 million shares authorized at March 31, 2015. There were 12.9 million shares available for grant and 18.7 million stock options and restricted shares that were outstanding under the Plan as of March 31, 2015, which expire at various times through April 2018. | |||||||||||||||||||||
Stock options under the Plan are granted at prices determined by the Board of Directors, but at not less than the fair market value. The majority of restricted stock units granted to employees vest over three to four years. Stock option and restricted stock grants to nonemployee directors typically vest over one year. Both stock options and restricted stock units granted under the Plan are subject to forfeiture if employment terminates. | |||||||||||||||||||||
Other Stock Incentive Plans | |||||||||||||||||||||
In addition to the Plan, we have other stock incentive plans which are inactive for future share grant purposes, including plans assumed in acquisitions, under which stock options, stock appreciation rights, stock purchase rights, restricted stock awards and long-term performance awards to employees, consultants, officers and affiliates were authorized (“Other Plans”). | |||||||||||||||||||||
Stock options granted and assumed under the Other Plans generally vest over one to four years and expire seven to ten years after the grant date, and restricted stock granted under the Other Plans generally vests over one to four years. The Other Plans have been terminated, and outstanding stock options and restricted stock units granted and assumed remain outstanding and continue to be governed by the terms and conditions of the respective Other Plan. Stock options and restricted stock granted under the Other Plans are subject to forfeiture if employment terminates. Stock options under the Other Plans were granted at prices determined by the Board of Directors, but at not less than the fair market value, and stock options assumed were governed by the respective acquisition agreement. Stock options under the Other Plans expire at various times through June 2021. | |||||||||||||||||||||
Stock Purchase Plan | |||||||||||||||||||||
We have an employee stock purchase plan (the “Purchase Plan”) that allows for the purchase of stock at a 15% discount to fair market value at the date of grant or the exercise date, whichever value is less. The Purchase Plan is qualified under Section 423 of the Internal Revenue Code. The maximum number of shares that may be issued under the Purchase Plan is 64.3 million shares. As of March 31, 2015, 58.7 million shares had been issued. Under the Purchase Plan, rights to purchase shares are granted during the second and fourth quarter of each fiscal year. The Purchase Plan allows a maximum amount of two million shares to be purchased in any six month offering period. Employees purchased 2.8 million shares, 3.2 million shares and 3.8 million shares of common stock under the Purchase Plan in fiscal 2015, 2014 and 2013, respectively. The weighted-average price of stock purchased under the Purchase Plan was $1.04, $1.07 and $1.17 in fiscal 2015, 2014 and 2013, respectively. There were 5.6 million shares available for issuance as of March 31, 2015. | |||||||||||||||||||||
Determining Fair Value | |||||||||||||||||||||
We use the Black-Scholes stock option valuation model for estimating fair value of stock options granted under our plans and rights to acquire stock granted under our Purchase Plan. We amortize the fair value of stock options on a ratable basis over the requisite service periods, which are generally the vesting periods. The expected life of awards granted represents the period of time that they are expected to be outstanding. We determine the expected life based on historical experience with similar awards, giving consideration to the contractual terms, exercise patterns and post-vesting forfeitures. We estimate volatility based on the historical volatility of our common stock over the most recent period corresponding with the estimated expected life of the award. We base the risk-free interest rate used in the Black-Scholes stock option valuation model on the implied yield currently available on U.S. Treasury zero-coupon issues with an equivalent term equal to the expected life of the award. We have not paid any cash dividends on our common stock and do not anticipate paying any cash dividends in the foreseeable future. We use historical data to estimate forfeitures and record share-based compensation for those awards that are expected to vest. We adjust share-based compensation for actual forfeitures. | |||||||||||||||||||||
We granted 0.8 million RSUs with market conditions (“market RSUs”) in fiscal 2014 and estimated the fair value of these market RSUs using a Monte Carlo simulation model. The number of market RSUs is dependent on Quantum’s common stock achieving certain 60-day average stock price targets as of specified dates, which vest immediately to two years after the specified dates. The Monte Carlo model requires the input of assumptions including expected volatility, risk-free interest rate and expected term in order to simulate a large number of possible outcomes to provide an estimated fair value of the market RSUs. We used an expected volatility of 66%, a risk free interest rate of 0.5% and expected terms of ten months, twenty-two months and thirty-four months that mirrors the various vesting dates of the awards. The estimated grant date fair value of the market RSUs was $0.7 million which will be recognized over the respective vesting periods of the awards. | |||||||||||||||||||||
We granted 2.4 million and 0.2 million of RSUs with performance conditions (“performance RSUs”) in fiscal 2015 and fiscal 2014, respectively, and the fair values of the performance RSUs at the grant date were $3.0 million and $0.2 million, respectively. Performance RSUs become eligible for vesting based on Quantum achieving certain revenue and operating income targets through the end of the fiscal year when the performance RSUs were granted. Share-based compensation expense for performance RSUs is recognized when it is probable that the performance conditions will be achieved. The revenue and operating income targets of the fiscal 2015 performance RSUs were achieved and $0.4 million of share-based compensation expense was recognized during fiscal 2015. The performance RSUs granted in fiscal 2014 were canceled in accordance with the grant agreement as the revenue and operating income targets of fiscal 2014 were not met; and, therefore no share-based compensation expense was recognized. | |||||||||||||||||||||
Stock Options | |||||||||||||||||||||
No stock options were granted in fiscal 2015, 2014 or 2013. | |||||||||||||||||||||
Restricted Stock | |||||||||||||||||||||
The fair value of our restricted stock is the intrinsic value as of the grant date. | |||||||||||||||||||||
Stock Purchase Plan | |||||||||||||||||||||
The weighted-average fair values and the assumptions used in calculating fair values during each fiscal period are as follows: | |||||||||||||||||||||
For the year ended March 31, | |||||||||||||||||||||
2015 | 2014 | 2013 | |||||||||||||||||||
Option life (in years) | 0.5 | 0.5 | 0.5 | ||||||||||||||||||
Risk-free interest rate | 0.07 | % | 0.07 | % | 0.13 | % | |||||||||||||||
Stock price volatility | 36.58 | % | 43.71 | % | 69.73 | % | |||||||||||||||
Weighted-average grant date fair value | $ | 0.36 | $ | 0.4 | $ | 0.48 | |||||||||||||||
Share-Based Compensation Expense | |||||||||||||||||||||
The following tables summarize share-based compensation expense (in thousands): | |||||||||||||||||||||
For the year ended March 31, | |||||||||||||||||||||
2015 | 2014 | 2013 | |||||||||||||||||||
Share-based compensation expense: | |||||||||||||||||||||
Cost of revenue | $ | 1,489 | $ | 1,963 | $ | 2,389 | |||||||||||||||
Research and development | 2,559 | 3,430 | 3,665 | ||||||||||||||||||
Sales and marketing | 3,506 | 4,097 | 4,699 | ||||||||||||||||||
General and administrative | 4,029 | 3,969 | 4,386 | ||||||||||||||||||
Total share-based compensation expense | $ | 11,583 | $ | 13,459 | $ | 15,139 | |||||||||||||||
For the year ended March 31, | |||||||||||||||||||||
2015 | 2014 | 2013 | |||||||||||||||||||
Share-based compensation by type of award: | |||||||||||||||||||||
Stock options | $ | 617 | $ | 826 | $ | 1,681 | |||||||||||||||
Restricted stock | 10,102 | 11,356 | 11,630 | ||||||||||||||||||
Stock purchase plan | 864 | 1,277 | 1,828 | ||||||||||||||||||
Total share-based compensation expense | $ | 11,583 | $ | 13,459 | $ | 15,139 | |||||||||||||||
The total share-based compensation cost capitalized as part of inventory as of March 31, 2015 and 2014 was not material. During fiscal 2015, 2014 and 2013, no tax benefit was realized for the tax deduction from stock option exercises and other awards due to tax benefit carryforwards and tax ordering requirements. | |||||||||||||||||||||
As of March 31, 2015, there was less than $0.1 million of total unrecognized compensation cost related to stock options granted under our plans. This unrecognized compensation cost is expected to be recognized over a weighted-average period of less than one year. Total intrinsic value of stock options exercised for the years ended March 31, 2015, 2014 and 2013 was $0.4 million, $0.4 million and $0.3 million, respectively. We settle stock option exercises by issuing additional common shares. | |||||||||||||||||||||
As of March 31, 2015, there was $12.4 million of total unrecognized compensation cost related to nonvested restricted stock. The unrecognized compensation cost for restricted stock is expected to be recognized over a weighted-average period of 1.6 years. Total fair value of awards vested during the years ended March 31, 2015, 2014 and 2013 was $7.7 million, $6.2 million and $7.4 million, respectively, based on the fair value of our common stock on the award's vest date. We issue additional common shares upon vesting of restricted stock units. | |||||||||||||||||||||
Stock Activity | |||||||||||||||||||||
Stock Options | |||||||||||||||||||||
A summary of activity relating to all of our stock option plans is as follows (stock options and intrinsic value in thousands): | |||||||||||||||||||||
Stock Options | Weighted- | Weighted- | Aggregate | ||||||||||||||||||
Average | Average | Intrinsic Value | |||||||||||||||||||
Exercise Price | Remaining | ||||||||||||||||||||
Contractual Term | |||||||||||||||||||||
Outstanding as of March 31, 2014 | 7,997 | $ | 1.78 | ||||||||||||||||||
Exercised | (866 | ) | 0.97 | ||||||||||||||||||
Forfeited | (117 | ) | 2.14 | ||||||||||||||||||
Expired | (2,070 | ) | 2.83 | ||||||||||||||||||
Outstanding as of March 31, 2015 | 4,944 | $ | 1.47 | 1.72 | $ | 2,039 | |||||||||||||||
Vested and expected to vest at March 31, 2015 | 4,944 | $ | 1.47 | 1.72 | $ | 2,039 | |||||||||||||||
Exercisable as of March 31, 2015 | 4,916 | $ | 1.46 | 1.71 | $ | 2,039 | |||||||||||||||
The following table summarizes information about stock options outstanding and exercisable as of March 31, 2015 (stock options in thousands): | |||||||||||||||||||||
Range of Exercise Prices | Stock Options | Weighted- | Weighted- | Stock Options | Weighted- | ||||||||||||||||
Outstanding | Average | Average | Exercisable | Average | |||||||||||||||||
Exercise | Remaining | Exercise | |||||||||||||||||||
Price | Contractual Life | Price | |||||||||||||||||||
(Years) | |||||||||||||||||||||
$0.11 | — | $0.63 | 52 | $ | 0.49 | 3.2 | 52 | $ | 0.49 | ||||||||||||
$0.77 | — | $0.98 | 3,019 | 0.98 | 1.25 | 3,019 | 0.98 | ||||||||||||||
$1.00 | — | $1.35 | 233 | 1.15 | 1.26 | 233 | 1.15 | ||||||||||||||
$1.61 | — | $2.17 | 204 | 1.8 | 0.43 | 204 | 1.8 | ||||||||||||||
$2.52 | — | $2.93 | 1,436 | 2.53 | 2.9 | 1,408 | 2.53 | ||||||||||||||
4,944 | $ | 1.47 | 1.72 | 4,916 | $ | 1.46 | |||||||||||||||
Expiration dates ranged from April 2015 to June 2021 for stock options outstanding at March 31, 2015. Prices for stock options exercised during the three-year period ended March 31, 2015, ranged from $0.11 to $2.08. | |||||||||||||||||||||
Restricted Stock | |||||||||||||||||||||
A summary of activity relating to our restricted stock follows (shares in thousands): | |||||||||||||||||||||
Shares | Weighted-Average | ||||||||||||||||||||
Grant Date | |||||||||||||||||||||
Fair Value | |||||||||||||||||||||
Nonvested as March 31, 2014 | 12,108 | $ | 1.8 | ||||||||||||||||||
Granted | 10,348 | 1.24 | |||||||||||||||||||
Vested | (6,013 | ) | 2.1 | ||||||||||||||||||
Forfeited | (2,652 | ) | 1.35 | ||||||||||||||||||
Nonvested as March 31, 2015 | 13,791 | $ | 1.34 | ||||||||||||||||||
401K_PLAN
401K PLAN | 12 Months Ended |
Mar. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
401K PLAN | 401K PLAN |
Substantially all of the U.S. employees are eligible to make contributions to our 401(k) savings and investment plan. We typically make discretionary contributions to the plan by matching a percentage of our employees’ contributions. Employer contributions were $2.4 million, $2.6 million and $2.8 million in fiscal 2015, 2014 and 2013, respectively. |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
INCOME TAXES | INCOME TAXES | |||||||||||
Pre-tax income (loss) reflected in the Consolidated Statements of Operations for the years ended March 31, 2015, 2014 and 2013 follows (in thousands): | ||||||||||||
For the year ended March 31, | ||||||||||||
2015 | 2014 | 2013 | ||||||||||
U.S | $ | 13,507 | $ | (22,549 | ) | $ | (52,940 | ) | ||||
Foreign | 3,971 | 2,292 | 1,922 | |||||||||
$ | 17,478 | $ | (20,257 | ) | $ | (51,018 | ) | |||||
Income tax provision consists of the following (in thousands): | ||||||||||||
For the year ended March 31, | ||||||||||||
2015 | 2014 | 2013 | ||||||||||
Federal: | $ | (138 | ) | $ | — | $ | — | |||||
State: | ||||||||||||
Current | 125 | 76 | 231 | |||||||||
Foreign: | ||||||||||||
Current | 890 | 1,096 | 1,090 | |||||||||
Deferred | (159 | ) | 45 | (160 | ) | |||||||
Total foreign | 731 | 1,141 | 930 | |||||||||
Income tax provision | $ | 718 | $ | 1,217 | $ | 1,161 | ||||||
The income tax provision differs from the amount computed by applying the federal statutory rate of 35% to income (loss) before income taxes as follows (in thousands): | ||||||||||||
For the year ended March 31, | ||||||||||||
2015 | 2014 | 2013 | ||||||||||
Expense (benefit) at federal statutory rate | $ | 6,117 | $ | (7,090 | ) | $ | (17,856 | ) | ||||
State taxes | 125 | 76 | 300 | |||||||||
Unbenefited (benefited) losses and credits | (4,727 | ) | 7,974 | 18,715 | ||||||||
Contingent tax reserves | 103 | 460 | (130 | ) | ||||||||
Foreign rate differential | (778 | ) | (218 | ) | 120 | |||||||
Other | (122 | ) | 15 | 12 | ||||||||
$ | 718 | $ | 1,217 | $ | 1,161 | |||||||
Significant components of deferred tax assets and liabilities are as follows (in thousands): | ||||||||||||
As of March 31, | ||||||||||||
2015 | 2014 | |||||||||||
Deferred tax assets: | ||||||||||||
Inventory valuation method | $ | 1,588 | $ | 1,742 | ||||||||
Accrued warranty expense | 1,624 | 2,336 | ||||||||||
Distribution reserves | 4,283 | 1,950 | ||||||||||
Loss carryforwards | 75,262 | 81,012 | ||||||||||
Tax credits | 185,578 | 191,372 | ||||||||||
Restructuring charge accruals | 1,866 | 3,191 | ||||||||||
Other accruals and reserves not currently deductible for tax purposes | 34,490 | 32,465 | ||||||||||
304,691 | 314,068 | |||||||||||
Less valuation allowance | (252,475 | ) | (261,337 | ) | ||||||||
Deferred tax asset | $ | 52,216 | $ | 52,731 | ||||||||
Deferred tax liabilities: | ||||||||||||
Depreciation | $ | (4,302 | ) | $ | (3,570 | ) | ||||||
Acquired intangibles | (4,920 | ) | (2,794 | ) | ||||||||
Tax on unremitted foreign earnings | (15,968 | ) | (17,245 | ) | ||||||||
Other | (26,093 | ) | (28,330 | ) | ||||||||
Deferred tax liability | $ | (51,283 | ) | $ | (51,939 | ) | ||||||
Net deferred tax asset | $ | 933 | $ | 792 | ||||||||
The valuation allowance decreased $8.9 million and $8.0 million in fiscal years 2015 and 2014, respectively, and increased $17.0 million in fiscal year 2013. The decrease in the valuation allowance during fiscal year 2015 was primarily due to NOL usage and expiring tax credits. | ||||||||||||
A reconciliation of the gross unrecognized tax benefits follows (in thousands): | ||||||||||||
For the year ended March 31, | ||||||||||||
2015 | 2014 | 2013 | ||||||||||
Beginning balance | $ | 32,449 | $ | 32,549 | $ | 32,744 | ||||||
Settlement and effective settlements with tax authorities and related remeasurements | — | (488 | ) | (60 | ) | |||||||
Lapse of statute of limitations | — | — | (135 | ) | ||||||||
Increase in balances related to tax positions taken in prior period | — | 388 | — | |||||||||
Ending balance | $ | 32,449 | $ | 32,449 | $ | 32,549 | ||||||
During fiscal 2015, excluding interest and penalties, there was no change in our unrecognized tax benefits. Including interest and penalties, the total unrecognized tax benefit at March 31, 2015 was $33.5 million, all of which, if recognized, would favorably affect the effective tax rate. At March 31, 2015 accrued interest and penalties totaled $1.1 million. Our practice is to recognize interest and penalties related to income tax matters in income tax provision in the Consolidated Statements of Operations. Unrecognized tax benefits, including interest and penalties, were recorded in other long-term liabilities in the Consolidated Balance Sheets. | ||||||||||||
We file our tax returns as prescribed by the laws of the jurisdictions in which we operate. Our U.S. tax returns have been audited for years through 2002 by the Internal Revenue Service. In other major jurisdictions, we are generally open to examination for the most recent three to five fiscal years. Although timing of the resolution and closure on audits is highly uncertain, we do not believe it is likely that the unrecognized tax benefits would materially change in the next 12 months. | ||||||||||||
As of March 31, 2015, we had federal net operating loss and tax credit carryforwards of approximately $259.3 million and $140.0 million, respectively. Our federal net operating loss carryforwards include $33.6 million attributable to excess tax deductions from stock option exercises, and are not included in the deferred tax assets shown above. The benefit of these loss carryforwards will be credited to equity when realized. The net operating loss and tax credit carryforwards expire in varying amounts beginning in fiscal 2016 if not previously utilized, the utilization of which is limited under the tax law ownership change provision. These carryforwards include $11.1 million of acquired net operating losses and $10.7 million of credits. | ||||||||||||
Certain changes in stock ownership could result in a limitation on the amount of net operating loss and tax credit carryovers that can be utilized each year. Should the company undergo such a change in stock ownership, it could severely limit the usage of these carryover tax attributes against future income, resulting in additional tax charges. | ||||||||||||
Due to our history of net losses and the difficulty in predicting future results, we believe that we cannot rely on projections of future taxable income to realize the deferred tax assets. Accordingly, we have established a full valuation allowance against our U.S. net deferred tax assets. Significant management judgment is required in determining our deferred tax assets and liabilities and valuation allowances for purposes of assessing our ability to realize any future benefit from our net deferred tax assets. We intend to maintain this valuation allowance until sufficient positive evidence exists to support the reversal of the valuation allowance. Our income tax expense recorded in the future will be reduced to the extent that sufficient positive evidence materializes to support a reversal of, or decrease in, our valuation allowance. |
NET_INCOME_LOSS_PER_SHARE
NET INCOME (LOSS) PER SHARE | 12 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
NET INCOME (LOSS) PER SHARE | NET INCOME (LOSS) PER SHARE | |||||||||||
Equity Instruments Outstanding | ||||||||||||
We have stock options and restricted stock units granted under various stock incentive plans that, upon exercise and vesting, respectively, would increase shares outstanding. We have 4.50% convertible subordinated notes which are convertible at the option of the holders at any time prior to maturity into shares of Quantum common stock at a conversion price of $1.65 per share. We also have 3.50% convertible subordinated notes which are convertible at the option of the holders at any time prior to maturity into shares of Quantum common stock at a conversion price of $4.33 per share. Both the 4.50% and the 3.50% notes, if converted, would increase shares outstanding. | ||||||||||||
In June 2009, we issued a warrant to EMC Corporation to purchase 10 million shares of our common stock at a $0.38 per share exercise price. Only in the event of a change of control of Quantum will this warrant vest and be exercisable. The warrant expires seven years from the date of issuance or three years after change of control, whichever occurs first. Due to these terms, no share-based compensation expense related to this warrant has been recorded to date. | ||||||||||||
Net Income (Loss) per Share | ||||||||||||
The following table sets forth the computation of basic and diluted net income (loss) per share (in thousands, except per-share data): | ||||||||||||
For the year ended March 31, | ||||||||||||
2015 | 2014 | 2013 | ||||||||||
Numerator: | ||||||||||||
Net income (loss) | $ | 16,760 | $ | (21,474 | ) | $ | (52,179 | ) | ||||
Denominator: | ||||||||||||
Weighted average shares: | ||||||||||||
Basic | 254,665 | 247,024 | 239,855 | |||||||||
Dilutive shares from stock plans | 5,362 | — | — | |||||||||
Diluted | 260,027 | 247,024 | 239,855 | |||||||||
Basic net income (loss) per share | $ | 0.07 | $ | (0.09 | ) | $ | (0.22 | ) | ||||
Diluted net income (loss) per share | 0.06 | (0.09 | ) | (0.22 | ) | |||||||
Dilutive and potentially dilutive common shares from stock incentive plans are determined by applying the treasury stock method to the assumed exercise of outstanding options and the assumed vesting of outstanding restricted stock units. The dilutive impact related to our convertible subordinated notes is determined by applying the if-converted method, which includes adding the related weighted average shares to the denominator and the related interest expense to net income. | ||||||||||||
The computations of diluted net income (loss) per share for the periods presented exclude the following because the effect would have been anti-dilutive: | ||||||||||||
• | For fiscal 2015, 2014 and 2013, there were 29.0 million, 31.1 million and 31.2 million, respectively, of weighted average shares related to the 3.50% convertible subordinated notes that were excluded. For fiscal 2015, 2014 and 2013, $5.3 million, $5.7 million and $5.7 million, respectively, of related interest expense was excluded. | |||||||||||
• | For fiscal 2015, 2014 and 2013, there were 42.5 million, 42.5 million and 17.6 million, respectively, of weighted average shares related to the 4.50% of convertible subordinated notes that were excluded. For fiscal 2015, 2014 and 2013, $3.6 million, $3.6 million and $1.5 million, respectively, of related interest expense was excluded. | |||||||||||
• | Stock options to purchase 2.4 million, 12.8 million and 17.3 million weighted average shares in fiscal 2015, 2014 and 2013, respectively, were excluded. | |||||||||||
• | Unvested restricted stock units of less than 0.1 million, 11.0 million, and 10.1 million weighted average shares for fiscal 2015, 2014 and 2013, respectively, were excluded. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES | |||||||||||
Lease Commitments | ||||||||||||
We lease certain facilities under non-cancelable lease agreements and also have equipment leases for various types of office equipment. Some of the leases have renewal options ranging from one to ten years and others contain escalation clauses. These leases are operating leases. | ||||||||||||
In February 2006, we leased a campus facility in Colorado Springs, Colorado, comprised of three buildings in three separate operating leases with initial terms of five, seven and 15 years. In August 2010, we negotiated lower lease rates and a five year extension on one of the buildings. In March 2015, we entered into a sublease agreement to sublease a portion of one of the buildings. The future minimum lease payment schedule below includes $18.8 million of lease payments and $4.9 million of sublease rental income for this Colorado Springs campus. | ||||||||||||
Rent expense was $7.0 million in fiscal 2015, $10.3 million in fiscal 2014 and $11.3 million in fiscal 2013. Sublease income was immaterial in fiscal 2015, 2014 and 2013. | ||||||||||||
Future minimum lease payments and sublease rental income are as follows (in thousands): | ||||||||||||
Lease Payments | Sublease Rental Income | Total | ||||||||||
For the year ending March 31, | ||||||||||||
2016 | $ | 9,107 | $ | (587 | ) | $ | 8,520 | |||||
2017 | 6,610 | (959 | ) | 5,651 | ||||||||
2018 | 6,124 | (936 | ) | 5,188 | ||||||||
2019 | 5,523 | (909 | ) | 4,614 | ||||||||
2020 | 4,032 | (943 | ) | 3,089 | ||||||||
Thereafter | 4,459 | (813 | ) | 3,646 | ||||||||
$ | 35,855 | $ | (5,147 | ) | $ | 30,708 | ||||||
Commitments to Purchase Inventory | ||||||||||||
We use contract manufacturers for our manufacturing operations. Under these arrangements, the contract manufacturer procures inventory to manufacture products based upon our forecast of customer demand. We have similar arrangements with certain other suppliers. We are responsible for the financial impact on the supplier or contract manufacturer of any reduction or product mix shift in the forecast relative to materials that the third party had already purchased under a prior forecast. Such a variance in forecasted demand could require a cash payment for inventory in excess of current customer demand or for costs of excess or obsolete inventory. As of March 31, 2015, we had issued non-cancelable commitments for $46.0 million to purchase inventory from our contract manufacturers and suppliers. | ||||||||||||
Legal Proceedings | ||||||||||||
On February 18, 2014, Crossroads Systems, Inc. (“Crossroads”) filed a patent infringement lawsuit against Quantum in the U.S. District Court for the Western District of Texas, alleging infringement of U.S. Patents 6,425,035 and 7,934,041. An amended complaint filed on April 15, 2014 also alleged infringement of U.S. patent 7,051,147. Crossroads asserts that we have incorporated Crossroads' patented technology into our StorNext QX and Q-Series lines of disk array products, and into our Scalar libraries. Crossroads seeks unspecified monetary damages and injunctive relief. Crossroads has already dismissed all claims of infringement with respect to the StorNext QX and Q-Series products. We believe the probability that we will pay material damages related to this lawsuit is remote. | ||||||||||||
On September 23, 2014, we filed a lawsuit against Crossroads in the U.S. District Court for the Northern District of California alleging patent infringement of our patent 6,766,412 by Crossroad’s StrongBox VSeries Library Solution product. We are seeking injunctive relief and the recovery of monetary damages. On December 4, 2014, we amended our complaint alleging infringement of a second patent, 5,940,849, related to Crossroad's SPHiNX product line. On December 16, 2014, we withdrew the amended complaint alleging infringement of the second patent, 5,940,849. | ||||||||||||
Indemnifications | ||||||||||||
We have certain financial guarantees, both express and implied, related to product liability and potential infringement of intellectual property. Other than certain product liabilities recorded as of March 31, 2015 and 2014, we did not record a liability associated with these guarantees, as we have little or no history of costs associated with such indemnification requirements. Contingent liabilities associated with product liability may be mitigated by insurance coverage that we maintain. | ||||||||||||
In the normal course of business to facilitate transactions of our services and products, we indemnify certain parties with respect to certain matters. We have agreed to hold certain parties harmless against losses arising from a breach of representations or covenants, or out of intellectual property infringement or other claims made against certain parties. These agreements may limit the time within which an indemnification claim can be made and the amount of the claim. In addition, we have entered into indemnification agreements with our officers and directors, and our bylaws contain similar indemnification obligations to our agents. | ||||||||||||
It is not possible to determine the maximum potential amount under these indemnification agreements due to the limited history of our indemnification claims and the unique facts and circumstances involved in each particular agreement. Historically, payments made by us under these agreements have not had a material impact on our operating results, financial position or cash flows. |
GEOGRAPHIC_INFORMATION
GEOGRAPHIC INFORMATION | 12 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||
GEOGRAPHIC INFORMATION | GEOGRAPHIC INFORMATION | |||||||||||||||||||||||
The company operates in one reportable segment. | ||||||||||||||||||||||||
Revenue, attributed to regions based on the location of customers, and long-lived assets, comprised of property and equipment, by region were as follows (in thousands): | ||||||||||||||||||||||||
As of and for the year ended March 31, | ||||||||||||||||||||||||
2015 | 2014 | 2013 | ||||||||||||||||||||||
Long- | Revenue | Long- | Revenue | Long-Lived | Revenue | |||||||||||||||||||
Lived | Lived | Assets | ||||||||||||||||||||||
Assets | Assets | |||||||||||||||||||||||
Americas | $ | 14,063 | $ | 340,811 | $ | 16,759 | $ | 359,259 | $ | 20,182 | $ | 378,514 | ||||||||||||
Europe | 421 | 152,186 | 524 | 143,508 | 756 | 151,676 | ||||||||||||||||||
Asia Pacific | 169 | 60,098 | 291 | 50,398 | 518 | 57,249 | ||||||||||||||||||
$ | 14,653 | $ | 553,095 | $ | 17,574 | $ | 553,165 | $ | 21,456 | $ | 587,439 | |||||||||||||
Revenue for Americas regions outside of the United States is immaterial. Following are revenues attributable to each of our product groups, services and royalties (in thousands): | ||||||||||||||||||||||||
For the year ended March 31, | ||||||||||||||||||||||||
2015 | 2014 | 2013 | ||||||||||||||||||||||
Tape automation systems | $ | 152,205 | $ | 174,438 | $ | 206,112 | ||||||||||||||||||
Disk backup systems* | 54,845 | 50,217 | 74,255 | |||||||||||||||||||||
Devices and media | 62,642 | 70,680 | 68,724 | |||||||||||||||||||||
Scale-out storage solutions* | 85,887 | 52,983 | 49,819 | |||||||||||||||||||||
Service | 155,674 | 147,199 | 144,037 | |||||||||||||||||||||
Royalty | 41,842 | 57,648 | 44,492 | |||||||||||||||||||||
Total revenue | $ | 553,095 | $ | 553,165 | $ | 587,439 | ||||||||||||||||||
*Revenue from disk backup systems and scale-out storage solutions was previously included in a caption entitled disk systems and software solutions. Previously reported amounts have been reclassified to conform to current period presentation. |
UNAUDITED_QUARTERLY_FINANCIAL_
UNAUDITED QUARTERLY FINANCIAL DATA | 12 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||
UNAUDITED QUARTERLY FINANCIAL DATA | UNAUDITED QUARTERLY FINANCIAL DATA | |||||||||||||||
For the year ended March 31, 2015 | ||||||||||||||||
(In thousands, except per share data) | 1st | 2nd | 3rd | 4th | ||||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||||
Revenue | $ | 128,128 | $ | 135,106 | $ | 142,063 | $ | 147,798 | ||||||||
Gross margin | 55,526 | 61,929 | 65,067 | 62,164 | ||||||||||||
Net income (loss) | (4,324 | ) | 1,248 | 6,931 | 12,905 | |||||||||||
Basic net income (loss) per share | (0.02 | ) | 0 | 0.03 | 0.05 | |||||||||||
Diluted net income (loss) per share | (0.02 | ) | 0 | 0.03 | 0.04 | |||||||||||
For the year ended March 31, 2014 | ||||||||||||||||
1st | 2nd | 3rd | 4th | |||||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||||
Revenue | $ | 147,849 | $ | 131,479 | $ | 145,869 | $ | 127,968 | ||||||||
Gross margin | 69,835 | 56,392 | 61,373 | 52,020 | ||||||||||||
Net income (loss) | 3,281 | (7,893 | ) | (2,458 | ) | (14,404 | ) | |||||||||
Basic and diluted net income (loss) per share | 0.01 | (0.03 | ) | (0.01 | ) | (0.06 | ) | |||||||||
SCHEDULE_II_CONSOLIDATED_VALUA
SCHEDULE II CONSOLIDATED VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | ||||||||||||||||
SCHEDULE II CONSOLIDATED VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II | |||||||||||||||
CONSOLIDATED VALUATION AND QUALIFYING ACCOUNTS | ||||||||||||||||
Allowance for doubtful accounts (in thousands): | ||||||||||||||||
Balance at | Net additions | Deductions (i) | Balance at end | |||||||||||||
beginning of | (releases) | of period | ||||||||||||||
period | charged to | |||||||||||||||
expense | ||||||||||||||||
For the year ended: | ||||||||||||||||
March 31, 2015 | $ | 88 | $ | 40 | $ | (101 | ) | $ | 27 | |||||||
March 31, 2014 | 62 | (39 | ) | 65 | 88 | |||||||||||
March 31, 2013 | 217 | 3 | (158 | ) | 62 | |||||||||||
____________________ | ||||||||||||||||
(i) Uncollectible accounts written off, net of recoveries. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||||
Revenue Recognition | Revenue Recognition | |||||||||||||||
Revenue consists of sales of hardware, software and services, as well as royalties we earn for the license of certain intellectual property. Revenue is recognized from the sale of products and services when it is realized or realizable and earned. Revenue is considered realized and earned when: persuasive evidence of an arrangement exists; delivery has occurred or services have been rendered; the price to the buyer is fixed or determinable; and when collectability is reasonably assured. Royalty revenue is recognized when earned or amounts can be reasonably estimated. | ||||||||||||||||
Multiple Element Arrangements | ||||||||||||||||
We enter into sales arrangements with customers that contain multiple deliverables such as hardware, software and services, and these arrangements require assessment of each deliverable to determine its estimated selling price. Additionally, we use judgment in order to determine the appropriate timing of revenue recognition and to assess whether any software and non-software components function together to deliver a tangible product’s essential functionality in order to ensure the arrangement is properly accounted for as software or hardware revenue. The majority of our products are hardware products which contain software essential to the overall functionality of the product. Hardware products are generally sold with customer field support agreements. | ||||||||||||||||
For arrangements with multiple elements, arrangement consideration is first allocated between software (consisting of nonessential and stand-alone software) and non-software deliverables on a relative fair value basis. | ||||||||||||||||
Arrangement consideration in such multiple element transactions is allocated to each non-software element based on the fair value hierarchy, where the selling price for an element is based on vendor-specific objective evidence (“VSOE”), if available; third-party evidence (“TPE”), if VSOE is not available; or the best estimate of selling price (“BESP”), if neither VSOE nor TPE is available. For BESP, we consider our discounting and internal pricing practices. | ||||||||||||||||
For software deliverables, we allocate revenue between multiple elements based on software revenue recognition guidance, which requires revenue earned on software arrangements involving multiple elements to be allocated to each element based on the relative fair values of those elements. The fair value of an element must be based on VSOE. Where fair value of delivered elements is not available, revenue is recognized on the “residual method” based on the fair value of undelivered elements. If evidence of fair value of one or more undelivered elements does not exist, all revenue is deferred and recognized at the earlier of the delivery of those elements or the establishment of fair value of the remaining undelivered elements. | ||||||||||||||||
Product Revenue — Hardware | ||||||||||||||||
Revenue for hardware products sold to distributors, VARs, DMRs, OEMs and end users is generally recognized upon shipment. When significant post-delivery obligations exist, the related revenue is deferred until such obligations are fulfilled. If there are customer acceptance criteria in the contract, we recognize revenue upon end user acceptance. | ||||||||||||||||
In the period revenue is recognized, allowances are provided for estimated future price adjustments, such as rebates, price protection and future product returns. These allowances are based on programs in existence at the time revenue is recognized, plans regarding future price adjustments, the customers’ master agreements and historical product return rates. Since we have historically been able to reliably estimate the amount of allowances required, we recognize revenue, net of projected allowances, upon shipment to our customers. If we were unable to reliably estimate the amount of revenue adjustments in any specific reporting period, then we would be required to defer recognition of the revenue until the rights had lapsed and we were no longer under any obligation to reduce the price or accept the return of the product. | ||||||||||||||||
Product Revenue — Software | ||||||||||||||||
For software products, we generally recognize revenue upon delivery of the software. Revenue from post-contract customer support agreements, which entitle software customers to both telephone support and any unspecified upgrades and enhancements during the term of the agreement, is classified as product revenue and recognized ratably over the term of the support agreement. | ||||||||||||||||
We license certain software to customers under licensing agreements that allow those customers to embed our software into specific products they offer. As consideration, licensees pay us a fee based on the amount of sales of their products that incorporate our software. On a periodic and timely basis, the licensees provide us with reports listing their sales to end users for which they owe us license fees. As the reports substantiate delivery has occurred, we recognize revenue based on the information in these reports or when amounts can be reasonably estimated. | ||||||||||||||||
Service Revenue | ||||||||||||||||
Revenue for service is generally recognized upon services being rendered. Service revenue primarily consists of customer field support agreements for our hardware products. For customer field support agreements, revenue equal to the separately stated price of these service contracts for our hardware products is initially deferred and recognized as revenue ratably over the contract period. | ||||||||||||||||
Royalty Revenue | ||||||||||||||||
We license certain intellectual property to third party manufacturers under arrangements that are represented by master contracts. The master contracts give the third party manufacturers rights to the intellectual property which include allowing them to either manufacture or include the intellectual property in products for resale. As consideration, the licensees pay us a per-unit royalty for sales of their products that incorporate our intellectual property. On a periodic and timely basis, the licensees provide us with reports listing units sold to end users subject to the royalties. As the reports substantiate delivery has occurred, we recognize revenue based on the information in these reports or when amounts can be reasonably estimated. | ||||||||||||||||
Service Cost of Revenue | Service Cost of Revenue | |||||||||||||||
We classify expenses as service cost of revenue by estimating the portion of our total cost of revenue that relates to providing field support to our customers under contract. These estimates are based upon a variety of factors, including the nature of the support activity and the level of infrastructure required to support the activities from which we earn service revenue. In the event our service business changes, our estimates of cost of service revenue may be impacted. | ||||||||||||||||
Shipping and Handling Fees | Shipping and Handling Fees | |||||||||||||||
Shipping and handling fees are included in cost of revenue and were $12.3 million, $13.6 million and $16.0 million in fiscal 2015, 2014 and 2013, respectively. | ||||||||||||||||
Research and Development Costs | Research and Development Costs | |||||||||||||||
Expenditures relating to the development of new products and processes are expensed as incurred. These costs include expenditures for employee compensation, materials used in the development effort, other internal costs, as well as expenditures for third party professional services. We have determined that technological feasibility for our software products is reached shortly before the products are released to manufacturing. Costs incurred after technological feasibility is established have not been material. We expense software-related research and development costs as incurred. | ||||||||||||||||
Advertising Expense | Advertising Expense | |||||||||||||||
We expense advertising costs as incurred. | ||||||||||||||||
Restructuring Charges | Restructuring Charges | |||||||||||||||
In recent periods and over the past several years, we have recorded significant restructuring charges related to the realignment and restructuring of our business operations. These charges represent expenses incurred in connection with strategic planning, certain cost reduction programs and acquisition integrations that we have implemented and consist of the cost of involuntary termination benefits, facilities charges, asset write-offs and other costs of exiting activities or geographies. | ||||||||||||||||
The charges for involuntary termination costs and associated expenses often require the use of estimates, primarily related to the number of employees to be paid severance and the amounts to be paid, largely based on years of service and statutory requirements. Assumptions to estimate facility exit costs include the ability to secure sublease income largely based on market conditions, the likelihood and amounts of a negotiated settlement for contractual lease obligations and other exit costs. Other estimates for restructuring charges consist of the realizable value of assets including associated disposal costs and termination fees with third parties for other contractual commitments. | ||||||||||||||||
Share-Based Compensation | Share-Based Compensation | |||||||||||||||
The majority of our share-based awards are measured based on the fair market value of the underlying stock on the date of grant, We use the Black-Scholes stock option pricing model to estimate the fair value of stock option awards at the date of grant. For awards that contain market conditions, we use a Monte-Carlo simulation model to estimate the fair value of share-based awards. Both the Black-Scholes and Monte-Carlo models require the use of highly subjective assumptions, including expected life, expected volatility and expected risk-free rate of return. Other reasonable assumptions in either model could provide differing results. We calculate a forfeiture rate to estimate the share-based awards that will ultimately vest based on types of awards and historical experience. Additionally, for awards which are performance based, we make estimates as to the probability of the underlying performance being achieved. | ||||||||||||||||
Foreign Currency Translation and Transactions | Foreign Currency Translation and Transactions | |||||||||||||||
Assets, liabilities and operations of foreign offices and subsidiaries are recorded based on the functional currency of the entity. For a majority of our foreign operations, the functional currency is the U.S. dollar. The assets and liabilities of foreign offices with a local functional currency are translated, for consolidation purposes, at current exchange rates from the local currency to the reporting currency, the U.S. dollar. The resulting gains or losses are reported as a component of other comprehensive income. Foreign exchange gains and losses from changes in the exchange rates underlying intercompany balances that are of a long-term investment nature are also reported as a component of other comprehensive income. Assets and liabilities denominated in other than the functional currency are remeasured each month with the remeasurement gain or loss recorded in other income and expense in the Consolidated Statements of Operations. | ||||||||||||||||
Derivative Instruments | Derivative Instruments | |||||||||||||||
Derivative instruments are carried at fair value on our Consolidated Balance Sheets. The fair values of the derivative financial instruments generally represent the estimated amounts we would expect to receive or pay upon termination of the contracts as of the reporting date. We did not hold any material derivative instruments during fiscal 2015, 2014 or 2013. | ||||||||||||||||
Income Taxes | Income Taxes | |||||||||||||||
We recognize deferred tax assets and liabilities due to the effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. We also reduce deferred tax assets by a valuation allowance if it is more likely than not that some or all of the deferred tax asset will not be realized. | ||||||||||||||||
We recognize the benefit from a tax position only if it is more-likely-than-not that the position would be sustained upon audit based solely on the technical merits of the tax position. The calculation of our tax liabilities requires judgment related to uncertainties in the application of complex tax regulations. It is inherently difficult and subjective to estimate such amounts, as we have to determine the probability of various possible outcomes. We reevaluate these uncertain tax positions on a quarterly basis. This evaluation is based on factors including, but not limited to, changes in facts or circumstances, changes in tax law, effectively settled issues under audit and new audit activity. A change in recognition or measurement would result in the recognition of a tax benefit or an additional tax charge to the provision. | ||||||||||||||||
We recognize interest and penalties related to uncertain tax positions in the income tax provision in the Consolidated Statements of Operations. To the extent accrued interest and penalties do not become payable, amounts accrued will be reduced and reflected as a reduction of the overall income tax provision in the period that such determination is made. | ||||||||||||||||
Cash Equivalents, Restricted Cash and Other Investments | Cash Equivalents, Restricted Cash and Other Investments | |||||||||||||||
We consider all highly liquid debt instruments with a maturity of 90 days or less at the time of purchase to be cash equivalents. Cash equivalents are carried at fair value, which approximates their cost. | ||||||||||||||||
Restricted cash is comprised of bank guarantees and similar required minimum balances that serve as cash collateral in connection with various items including insurance requirements, value added taxes, ongoing tax audits and leases in certain countries. | ||||||||||||||||
Investments in private technology venture limited partnerships are currently accounted for using the equity method because we are deemed to have influence. Ownership interests in these limited partnerships are accounted for under the equity method unless our interest is so minor that we have virtually no influence over the partnership operating and financial policies, in which case the cost method is used. | ||||||||||||||||
Investments in other privately held companies are accounted for under the cost method unless we hold a significant stake. We review non-marketable equity investments on a regular basis to determine if there has been any impairment of value which is other than temporary by reviewing their financial information, gaining knowledge of any new financing or other business agreements and assessing their operating viability. | ||||||||||||||||
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts | |||||||||||||||
We perform ongoing credit evaluations of our customers’ financial condition and, for the majority of our customers, require no collateral. For customers that do not meet our credit standards, we often require a form of collateral, such as cash deposits or letters of credit, prior to the completion of a transaction. These credit evaluations require significant judgment and are based on multiple sources of information. We analyze such factors as our historical bad debt experience, industry and geographic concentrations of credit risk, current economic trends and changes in customer payment terms. We maintain an allowance for doubtful accounts based on historical experience and expected collectability of outstanding accounts receivable. We record bad debt expense in general and administrative expenses. | ||||||||||||||||
Manufacturing Inventories | Manufacturing Inventories | |||||||||||||||
Our manufacturing inventory is stated at the lower of cost or market, with cost computed on a first-in, first-out (“FIFO”) basis. Adjustments to reduce the cost of manufacturing inventory to its net realizable value, if required, are made for estimated excess, obsolete or impaired balances. Factors influencing these adjustments include declines in demand, rapid technological changes, product life cycle and development plans, component cost trends, product pricing, physical deterioration and quality issues. Revisions to these adjustments would be required if these factors differ from our estimates. | ||||||||||||||||
Service Parts Inventories | Service Parts Inventories | |||||||||||||||
Our service parts inventories are stated at the lower of cost or market. We carry service parts because we generally provide product warranty for one to three years and earn revenue by providing enhanced and extended warranty and repair service during and beyond this warranty period. Service parts inventories consist of both component parts, which are primarily used to repair defective units, and finished units, which are provided for customer use permanently or on a temporary basis while the defective unit is being repaired. Defective parts returned from customers that can be repaired are repaired and put back into service parts inventories at their current carrying value. We record adjustments to reduce the carrying value of service parts inventory to its net realizable value, and we dispose of parts with no use and a net realizable value of zero. Factors influencing these adjustments include product life cycles, end of service life plans and volume of enhanced or extended warranty service contracts. Estimates of net realizable value involve significant estimates and judgments about the future, and revisions would be required if these factors differ from our estimates. | ||||||||||||||||
Property and Equipment | Property and Equipment | |||||||||||||||
Property and equipment are carried at cost, less accumulated depreciation and amortization, computed on a straight-line basis over the estimated useful lives of the assets as follows: | ||||||||||||||||
Machinery and equipment | 3 to 5 years | |||||||||||||||
Computer equipment | 3 to 5 years | |||||||||||||||
ERP software | 10 years | |||||||||||||||
Other software | 3 years | |||||||||||||||
Furniture and fixtures | 5 years | |||||||||||||||
Other office equipment | 5 years | |||||||||||||||
Leasehold improvements | Life of lease | |||||||||||||||
Amortizable Intangible and Other Long-lived Assets | Amortizable Intangible and Other Long-lived Assets | |||||||||||||||
We review the useful lives of amortizable intangible and other long-lived assets (“long-lived assets”) quarterly and review long-lived assets for impairment whenever events or changes in circumstances indicate the carrying amount of such assets may not be recoverable. The company operates as a single reporting unit for business and operating purposes, and our impairment evaluation also treats the company as a single asset group. Impairment indicators we consider include a significant decrease in the market price of our long-lived asset group, adverse changes in the extent or manner in which our long-lived assets are being used, adverse changes in the business climate that could affect the value of our long-lived assets, a current period operating or cash flow loss combined with a history of operating or cash flow losses or a projection or forecast that demonstrates continuing losses associated with the use of our long-lived assets and an expectation that it is more likely than not our long-lived assets will be sold or otherwise disposed of significantly before the end of their previously estimated useful life. If we identify impairment indicators, we evaluate recoverability using an undiscounted cash flow approach. Estimates of future cash flows incorporate company forecasts and our expectations of future use of our long-lived assets, and these factors are impacted by market conditions. If impairment is indicated, an impairment charge is recorded to write the long-lived assets down to their estimated fair value. | ||||||||||||||||
Goodwill | Goodwill | |||||||||||||||
We evaluate goodwill for impairment annually during the fourth quarter of our fiscal year, or more frequently when indicators of impairment are present. We operate as a single reporting unit and consider the company as a whole when reviewing impairment factors. In addition to comparing the carrying value of the reporting unit to its fair value, because we have negative book value, we perform a qualitative analysis to determine whether it is more likely than not that the fair value of goodwill is less than its carrying amount. Some of the impairment indicators we consider include significant differences between the carrying amount and the estimated fair value of our assets and liabilities; macroeconomic conditions such as a deterioration in general economic condition or limitations on accessing capital; industry and market considerations such as a deterioration in the environment in which we operate and an increased competitive environment; cost factors such as increases in raw materials, labor, or other costs that have a negative effect on earnings and cash flows; overall financial performance such as negative or declining cash flows or a decline in actual or planned revenue or earnings compared with actual and projected results of relevant prior periods; other relevant events such as litigation, changes in management, key personnel, strategy or customers; the testing for recoverability of our long-lived assets and a sustained decrease in share price. We evaluate the significance of identified events and circumstances on the basis of the weight of evidence along with how they could affect the relationship between the reporting unit's fair value and carrying amount, including positive mitigating events and circumstances. If we determine it is more likely than not that the fair value of goodwill is less than its carrying amount, then a second step is performed to quantify the amount of goodwill impairment. If impairment is indicated, a goodwill impairment charge is recorded to write the goodwill down to its implied fair value. | ||||||||||||||||
Accrued Warranty | Accrued Warranty | |||||||||||||||
We generally warrant our hardware products against certain defects for periods ranging from 1 to 3 years from the date of sale. Our tape automation systems, disk backup systems and scale-out storage solutions may carry service agreements with customers that choose to extend or upgrade the warranty service. We use a combination of internal resources and third party service providers to supply field service and support. If the actual costs were to differ significantly from our estimates, we would record the impact of these unforeseen costs or cost reductions in subsequent periods. | ||||||||||||||||
We estimate future failure rates based upon historical product failure trends as well as anticipated future failure rates if believed to be significantly different from historical trends. Similarly, we estimate future costs of repair based upon historical trends and anticipated future costs if they are expected to significantly differ, for example due to negotiated agreements with third parties. We use a consistent model and exercise considerable judgment in determining the underlying estimates. Our model requires an element of subjectivity for all of our products. For example, historical rates of return are not completely indicative of future return rates and we must therefore exercise judgment with respect to future deviations from our historical return rate. When actual failure rates differ significantly from our estimates, we record the impact in subsequent periods and update our assumptions and forecasting models accordingly. As our newer products mature, we are able to improve our estimates with respect to these products. It is reasonably likely that assumptions will be updated for failure rates and, therefore, our accrued warranty estimate could change in the future. | ||||||||||||||||
Business Combinations | Business Combinations | |||||||||||||||
We allocate the purchase price paid to the assets acquired and liabilities assumed in a business combination at their estimated fair values as of the acquisition date. Any excess purchase price above the identified net tangible and intangible assets and assumed liabilities is allocated to goodwill. We consider fair value to be the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. We estimate fair value using the fair value hierarchy for the tangible and intangible assets acquired as well as liabilities and contingencies assumed from the acquired company. | ||||||||||||||||
Common Stock Repurchases | Common Stock Repurchases | |||||||||||||||
During fiscal 2000, the Board of Directors authorized us to repurchase up to $700 million of our common stock in open market or private transactions. As of March 31, 2015 and 2014, there was $87.9 million remaining on our authorization to repurchase Quantum common stock. Our ability to repurchase our common stock is restricted unless we meet certain thresholds under the terms of our Wells Fargo credit agreement. | ||||||||||||||||
Fair Value of Financial Instruments | Fair Value of Financial Instruments | |||||||||||||||
We use exit prices, that is the price to sell an asset or transfer a liability, to measure assets and liabilities that are within the scope of the fair value measurements guidance. We classify these assets and liabilities based on the following fair value hierarchy: | ||||||||||||||||
Level 1: | Quoted (observable) market prices in active markets for identical assets or liabilities. | |||||||||||||||
Level 2: | Observable inputs other than Level 1, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability. | |||||||||||||||
Level 3: | Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. | |||||||||||||||
The assets measured and recorded at fair value on a recurring basis consist of money market funds which are valued using quoted market prices at the respective balance sheet dates and are level 1 fair value measurements (in thousands): | ||||||||||||||||
As of March 31, | ||||||||||||||||
2015 | 2014 | |||||||||||||||
Money market funds | $ | 34,278 | $ | 93,077 | ||||||||||||
We have certain non-financial assets that are measured at fair value on a non-recurring basis when there is an indicator of impairment, and they are recorded at fair value only when an impairment is recognized. These assets include property and equipment, amortizable intangible assets and goodwill. We did not record impairments to any non-financial assets in fiscal 2015 or fiscal 2014. We do not have any non-financial liabilities measured and recorded at fair value on a non-recurring basis. | ||||||||||||||||
Our financial liabilities were comprised primarily of convertible subordinated debt at March 31, 2015 and 2014. The carrying value and fair value based on quoted market prices in less active markets (level 2 fair value measurement) were as follows (in thousands): | ||||||||||||||||
As of March 31, | ||||||||||||||||
2015 | 2014 | |||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||
Convertible subordinated debt | $ | 153,735 | $ | 166,551 | $ | 203,735 | $ | 203,820 | ||||||||
Risks and Uncertainties | Risks and Uncertainties | |||||||||||||||
As is typical in the information storage industry, a significant portion of our customer base is concentrated among a small number of OEMs, distributors and large VARs. The loss of any one of our more significant customers, or a significant decrease in the sales volume with one of these significant customers, could have a material adverse effect on our results of operations and financial condition. Furthermore, if there is a downturn in general economic conditions, the resulting effect on IT spending could also have a material adverse effect on our results of operations and financial condition. We also face risks and uncertainties since our competitors in one area may be customers or suppliers in another. | ||||||||||||||||
A limited number of products comprise a significant majority of our sales, and due to increasingly rapid technological change in the industry, our future operating results depend on our ability to develop and successfully introduce new products. | ||||||||||||||||
Concentration of Credit Risk | Concentration of Credit Risk | |||||||||||||||
We currently invest our excess cash in deposits with major banks and in money market funds. In the past, we have also held investments in short-term debt securities of companies with strong credit ratings from a variety of industries, and we may make investments in these securities in the future. We have not experienced any material losses on these investments and limit the amount of credit exposure to any one issuer and to any one type of investment. | ||||||||||||||||
We sell products to customers in a wide variety of industries on a worldwide basis. In countries or industries where we are exposed to material credit risk, we may require collateral, including cash deposits and letters of credit, prior to the completion of a transaction. We do not believe we have significant credit risk beyond that provided for in the financial statements in the ordinary course of business. | ||||||||||||||||
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements | |||||||||||||||
In July 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("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 (“ASU 2013-11”). ASU 2013-11 requires an entity to present an unrecognized tax benefit as a reduction of a deferred tax asset for a net operating loss (“NOL”) carryforward, or similar tax loss or tax credit carryforward, rather than as a liability when (1) the uncertain tax position would reduce the NOL or other carryforward under the tax law of the applicable jurisdiction and (2) the entity intends to use the deferred tax asset for that purpose. ASU 2013-11 does not require new recurring disclosures. ASU 2013-11 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. We adopted ASU 2013-11 prospectively in the first quarter of fiscal 2015. Adoption did not impact our statements of financial position or results of operations. | ||||||||||||||||
Recent Accounting Pronouncements | Recent Accounting Pronouncements | |||||||||||||||
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”). ASU 2014-09 requires entities to recognize revenue through the application of a five-step model, which includes identification of the contract, identification of the performance obligations, determination of the transaction price, allocation of the transaction price to the performance obligations and recognition of revenue as the entity satisfies the performance obligations. ASU 2014-09 will become effective for us beginning April 1, 2017, or fiscal 2018. We are currently evaluating the guidance to determine the potential impact on our financial condition, results of operations, cash flows and financial statement disclosures. | ||||||||||||||||
In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements – Going Concern (Topic 205-40): Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern (“ASU 2014-15”). ASU 2014-15 requires that management assess an entity’s ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in U.S. auditing standards. ASU 2014-15 is effective for annual periods ending after December 15, 2016, and for annual periods and interim periods thereafter. We plan to adopt ASU 2014-15 as of the end of our fiscal year ending March 31, 2017 and do not anticipate adoption will impact our statements of financial position or results of operations. | ||||||||||||||||
In April 2015, the FASB issued ASU No. 2015-03, Interest - Imputation of Interest (Topic 835-30): Simplifying the Presentation of Debt Issuance Costs ("ASU 2015-03"). ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs is not affected by ASU 2015-03. ASU 2015-03 is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted. We plan to adopt ASU 2015-03 beginning April 1, 2015 and we will reclassify debt issuance costs from other current and long-term assets to convertible subordinated debt on the Consolidated Balance Sheets; we do not otherwise anticipate adoption will materially impact our statements of financial position or results of operations. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||||
Schedule of property and equipment estimated useful lives | Property and equipment are carried at cost, less accumulated depreciation and amortization, computed on a straight-line basis over the estimated useful lives of the assets as follows: | |||||||||||||||
Machinery and equipment | 3 to 5 years | |||||||||||||||
Computer equipment | 3 to 5 years | |||||||||||||||
ERP software | 10 years | |||||||||||||||
Other software | 3 years | |||||||||||||||
Furniture and fixtures | 5 years | |||||||||||||||
Other office equipment | 5 years | |||||||||||||||
Leasehold improvements | Life of lease | |||||||||||||||
Schedule of assets measured and recorded at fair value on a recurring basis | The assets measured and recorded at fair value on a recurring basis consist of money market funds which are valued using quoted market prices at the respective balance sheet dates and are level 1 fair value measurements (in thousands): | |||||||||||||||
As of March 31, | ||||||||||||||||
2015 | 2014 | |||||||||||||||
Money market funds | $ | 34,278 | $ | 93,077 | ||||||||||||
Schedule of carrying value and fair value of financial liabilities | The carrying value and fair value based on quoted market prices in less active markets (level 2 fair value measurement) were as follows (in thousands): | |||||||||||||||
As of March 31, | ||||||||||||||||
2015 | 2014 | |||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||
Convertible subordinated debt | $ | 153,735 | $ | 166,551 | $ | 203,735 | $ | 203,820 | ||||||||
BALANCE_SHEET_DETAILS_Tables
BALANCE SHEET DETAILS (Tables) | 12 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Balance Sheet Related Disclosures [Abstract] | ||||||||
Schedule of cash, cash equivalents and restricted cash | Cash, cash equivalents and restricted cash consisted of (in thousands): | |||||||
As of March 31, | ||||||||
2015 | 2014 | |||||||
Cash | $ | 36,291 | $ | 8,808 | ||||
Money market funds | 34,278 | 93,077 | ||||||
$ | 70,569 | $ | 101,885 | |||||
Schedule of manufacturing inventories | Manufacturing inventories consisted of (in thousands): | |||||||
As of March 31, | ||||||||
2015 | 2014 | |||||||
Finished goods | $ | 28,022 | $ | 18,069 | ||||
Work in process | 58 | 1,056 | ||||||
Materials and purchased parts | 22,194 | 15,690 | ||||||
$ | 50,274 | $ | 34,815 | |||||
Schedule of service parts inventories | Service parts inventories consisted of (in thousands): | |||||||
As of March 31, | ||||||||
2015 | 2014 | |||||||
Finished goods | $ | 18,143 | $ | 17,926 | ||||
Component parts | 6,497 | 7,703 | ||||||
$ | 24,640 | $ | 25,629 | |||||
Schedule of property and equipment | Property and equipment consisted of (in thousands): | |||||||
As of March 31, | ||||||||
2015 | 2014 | |||||||
Machinery and equipment | $ | 122,339 | $ | 119,783 | ||||
Furniture and fixtures | 5,816 | 6,127 | ||||||
Leasehold improvements | 20,309 | 20,116 | ||||||
148,464 | 146,026 | |||||||
Less: accumulated depreciation | (133,811 | ) | (128,452 | ) | ||||
$ | 14,653 | $ | 17,574 | |||||
INTANGIBLE_ASSETS_AND_GOODWILL1
INTANGIBLE ASSETS AND GOODWILL (Tables) | 12 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||
Schedule of weighted average amortization period | Following is the weighted average amortization period for our amortizable intangible assets: | |||||||||||||||||||||||
Amortization | ||||||||||||||||||||||||
(Years) | ||||||||||||||||||||||||
Purchased technology | 6.2 | |||||||||||||||||||||||
Trademarks | 6 | |||||||||||||||||||||||
Customer lists | 8 | |||||||||||||||||||||||
All intangible assets | 6.7 | |||||||||||||||||||||||
Schedule of intangible amortization | Intangible amortization within our Consolidated Statements of Operations for the years ended March 31, 2015, 2014 and 2013 follows (in thousands): | |||||||||||||||||||||||
For the year ended March 31, | ||||||||||||||||||||||||
2015 | 2014 | 2013 | ||||||||||||||||||||||
Purchased technology | $ | 913 | $ | 1,476 | $ | 3,775 | ||||||||||||||||||
Trademarks | — | — | 244 | |||||||||||||||||||||
Customer lists | 2,784 | 7,426 | 9,280 | |||||||||||||||||||||
$ | 3,697 | $ | 8,902 | $ | 13,299 | |||||||||||||||||||
Summary of carrying value of intangible assets | The following table provides a summary of the carrying value of intangible assets (in thousands): | |||||||||||||||||||||||
As of March 31, | ||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||||||||
Amount | Amortization | Amount | Amount | Amortization | Amount | |||||||||||||||||||
Purchased technology | $ | 179,992 | $ | (179,261 | ) | $ | 731 | $ | 179,475 | $ | (178,348 | ) | $ | 1,127 | ||||||||||
Trademarks | 3,900 | (3,900 | ) | — | 3,900 | (3,900 | ) | — | ||||||||||||||||
Customer lists | 66,219 | (66,219 | ) | — | 76,019 | (73,235 | ) | 2,784 | ||||||||||||||||
$ | 250,111 | $ | (249,380 | ) | $ | 731 | $ | 259,394 | $ | (255,483 | ) | $ | 3,911 | |||||||||||
Schedule of total expected future amortization | The total expected future amortization related to amortizable intangible assets is provided in the table below (in thousands): | |||||||||||||||||||||||
Amortization | ||||||||||||||||||||||||
Fiscal 2016 | $ | 280 | ||||||||||||||||||||||
Fiscal 2017 | 175 | |||||||||||||||||||||||
Fiscal 2018 | 138 | |||||||||||||||||||||||
Fiscal 2019 | 103 | |||||||||||||||||||||||
Fiscal 2020 | 35 | |||||||||||||||||||||||
Total as of March 31, 2015 | $ | 731 | ||||||||||||||||||||||
Summary of carrying value of goodwill | The following provides a summary of the carrying value of goodwill (in thousands): | |||||||||||||||||||||||
Goodwill | Accumulated | Net Amount | ||||||||||||||||||||||
Impairment Losses | ||||||||||||||||||||||||
Balances as of March 31, 2015 and March 31, 2014 | $ | 394,613 | $ | (339,000 | ) | $ | 55,613 | |||||||||||||||||
ACCRUED_WARRANTY_Tables
ACCRUED WARRANTY (Tables) | 12 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Product Warranties Disclosures [Abstract] | ||||||||
Schedule of changes in accrued warranty | The following table details the change in the accrued warranty balance (in thousands): | |||||||
For the year ended March 31, | ||||||||
2015 | 2014 | |||||||
Beginning balance | $ | 6,116 | $ | 7,520 | ||||
Additional warranties issued | 6,146 | 8,508 | ||||||
Adjustments for warranties issued in prior fiscal years | (185 | ) | (228 | ) | ||||
Settlements | (7,858 | ) | (9,684 | ) | ||||
Ending balance | $ | 4,219 | $ | 6,116 | ||||
DEBT_Tables
DEBT (Tables) | 12 Months Ended | |||
Mar. 31, 2015 | ||||
Debt Disclosure [Abstract] | ||||
Summary of scheduled maturities for outstanding debt | A summary of the scheduled maturities for our outstanding debt as of March 31, 2015 follows (in thousands): | |||
Debt Maturity | ||||
Fiscal 2016 | $ | 83,735 | ||
Fiscal 2017 | — | |||
Fiscal 2018 | 70,000 | |||
Total as of March 31, 2015 | $ | 153,735 | ||
RESTRUCTURING_CHARGES_Tables
RESTRUCTURING CHARGES (Tables) | 12 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||||||
Summary of types of restructuring expense | The following summarizes the type of restructuring expense for fiscal 2015, 2014 and 2013 (in thousands): | |||||||||||||||
For the year ended March 31, | ||||||||||||||||
2015 | 2014 | 2013 | ||||||||||||||
Restructuring expense related to cost of revenue | $ | — | $ | 539 | $ | — | ||||||||||
Restructuring expense in operating expense | 1,666 | 10,675 | 10,171 | |||||||||||||
$ | 1,666 | $ | 11,214 | $ | 10,171 | |||||||||||
For the year ended March 31, | ||||||||||||||||
2015 | 2014 | 2013 | ||||||||||||||
Severance and benefits | $ | 406 | $ | 6,139 | $ | 8,251 | ||||||||||
Facilities | 1,250 | 4,303 | 1,920 | |||||||||||||
Other | 10 | 772 | — | |||||||||||||
$ | 1,666 | $ | 11,214 | $ | 10,171 | |||||||||||
Schedule of activity for accrued restructuring | The following tables show the activity and the estimated timing of future payouts for accrued restructuring (in thousands): | |||||||||||||||
Severance and | Facilities | Other | Total | |||||||||||||
benefits | ||||||||||||||||
Balance as of March 31, 2012 | $ | 1,312 | $ | 440 | $ | — | $ | 1,752 | ||||||||
Restructuring costs | 8,815 | 1,920 | — | 10,735 | ||||||||||||
Restructuring charge reversal | (564 | ) | — | — | (564 | ) | ||||||||||
Cash payments | (6,852 | ) | (315 | ) | — | (7,167 | ) | |||||||||
Balance as of March 31, 2013 | 2,711 | 2,045 | — | 4,756 | ||||||||||||
Restructuring costs | 7,522 | 4,392 | 772 | 12,686 | ||||||||||||
Restructuring charge reversal | (1,383 | ) | (89 | ) | — | (1,472 | ) | |||||||||
Cash payments | (7,276 | ) | (607 | ) | (702 | ) | (8,585 | ) | ||||||||
Other non-cash | — | 983 | — | 983 | ||||||||||||
Balance as of March 31, 2014 | 1,574 | 6,724 | 70 | 8,368 | ||||||||||||
Restructuring costs | 749 | 1,680 | 13 | 2,442 | ||||||||||||
Restructuring charge reversal | (343 | ) | (430 | ) | (3 | ) | (776 | ) | ||||||||
Cash payments | (1,791 | ) | (3,617 | ) | (80 | ) | (5,488 | ) | ||||||||
Other non-cash | — | 300 | — | 300 | ||||||||||||
Balance as of March 31, 2015 | $ | 189 | $ | 4,657 | $ | — | $ | 4,846 | ||||||||
Schedule of estimated timing of future payouts | ||||||||||||||||
Estimated timing of future payouts: | Severance and | Facilities | Total | |||||||||||||
benefits | ||||||||||||||||
Fiscal 2016 | $ | 75 | $ | 3,780 | $ | 3,855 | ||||||||||
Fiscal 2017 to 2021 | 114 | 877 | 991 | |||||||||||||
$ | 189 | $ | 4,657 | $ | 4,846 | |||||||||||
STOCK_INCENTIVE_PLANS_AND_SHAR1
STOCK INCENTIVE PLANS AND SHARE-BASED COMPENSATION (Tables) | 12 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||
Schedule of assumptions used in calculating fair values | The weighted-average fair values and the assumptions used in calculating fair values during each fiscal period are as follows: | ||||||||||||||||||||
For the year ended March 31, | |||||||||||||||||||||
2015 | 2014 | 2013 | |||||||||||||||||||
Option life (in years) | 0.5 | 0.5 | 0.5 | ||||||||||||||||||
Risk-free interest rate | 0.07 | % | 0.07 | % | 0.13 | % | |||||||||||||||
Stock price volatility | 36.58 | % | 43.71 | % | 69.73 | % | |||||||||||||||
Weighted-average grant date fair value | $ | 0.36 | $ | 0.4 | $ | 0.48 | |||||||||||||||
Summary of share-based compensation expense | The following tables summarize share-based compensation expense (in thousands): | ||||||||||||||||||||
For the year ended March 31, | |||||||||||||||||||||
2015 | 2014 | 2013 | |||||||||||||||||||
Share-based compensation expense: | |||||||||||||||||||||
Cost of revenue | $ | 1,489 | $ | 1,963 | $ | 2,389 | |||||||||||||||
Research and development | 2,559 | 3,430 | 3,665 | ||||||||||||||||||
Sales and marketing | 3,506 | 4,097 | 4,699 | ||||||||||||||||||
General and administrative | 4,029 | 3,969 | 4,386 | ||||||||||||||||||
Total share-based compensation expense | $ | 11,583 | $ | 13,459 | $ | 15,139 | |||||||||||||||
Schedule of share-based compensation by type of award | |||||||||||||||||||||
For the year ended March 31, | |||||||||||||||||||||
2015 | 2014 | 2013 | |||||||||||||||||||
Share-based compensation by type of award: | |||||||||||||||||||||
Stock options | $ | 617 | $ | 826 | $ | 1,681 | |||||||||||||||
Restricted stock | 10,102 | 11,356 | 11,630 | ||||||||||||||||||
Stock purchase plan | 864 | 1,277 | 1,828 | ||||||||||||||||||
Total share-based compensation expense | $ | 11,583 | $ | 13,459 | $ | 15,139 | |||||||||||||||
Schedule of activity relating to stock option plans | A summary of activity relating to all of our stock option plans is as follows (stock options and intrinsic value in thousands): | ||||||||||||||||||||
Stock Options | Weighted- | Weighted- | Aggregate | ||||||||||||||||||
Average | Average | Intrinsic Value | |||||||||||||||||||
Exercise Price | Remaining | ||||||||||||||||||||
Contractual Term | |||||||||||||||||||||
Outstanding as of March 31, 2014 | 7,997 | $ | 1.78 | ||||||||||||||||||
Exercised | (866 | ) | 0.97 | ||||||||||||||||||
Forfeited | (117 | ) | 2.14 | ||||||||||||||||||
Expired | (2,070 | ) | 2.83 | ||||||||||||||||||
Outstanding as of March 31, 2015 | 4,944 | $ | 1.47 | 1.72 | $ | 2,039 | |||||||||||||||
Vested and expected to vest at March 31, 2015 | 4,944 | $ | 1.47 | 1.72 | $ | 2,039 | |||||||||||||||
Exercisable as of March 31, 2015 | 4,916 | $ | 1.46 | 1.71 | $ | 2,039 | |||||||||||||||
Summary of information about stock options outstanding and exercisable | The following table summarizes information about stock options outstanding and exercisable as of March 31, 2015 (stock options in thousands): | ||||||||||||||||||||
Range of Exercise Prices | Stock Options | Weighted- | Weighted- | Stock Options | Weighted- | ||||||||||||||||
Outstanding | Average | Average | Exercisable | Average | |||||||||||||||||
Exercise | Remaining | Exercise | |||||||||||||||||||
Price | Contractual Life | Price | |||||||||||||||||||
(Years) | |||||||||||||||||||||
$0.11 | — | $0.63 | 52 | $ | 0.49 | 3.2 | 52 | $ | 0.49 | ||||||||||||
$0.77 | — | $0.98 | 3,019 | 0.98 | 1.25 | 3,019 | 0.98 | ||||||||||||||
$1.00 | — | $1.35 | 233 | 1.15 | 1.26 | 233 | 1.15 | ||||||||||||||
$1.61 | — | $2.17 | 204 | 1.8 | 0.43 | 204 | 1.8 | ||||||||||||||
$2.52 | — | $2.93 | 1,436 | 2.53 | 2.9 | 1,408 | 2.53 | ||||||||||||||
4,944 | $ | 1.47 | 1.72 | 4,916 | $ | 1.46 | |||||||||||||||
Summary of activity relating to restricted stock | A summary of activity relating to our restricted stock follows (shares in thousands): | ||||||||||||||||||||
Shares | Weighted-Average | ||||||||||||||||||||
Grant Date | |||||||||||||||||||||
Fair Value | |||||||||||||||||||||
Nonvested as March 31, 2014 | 12,108 | $ | 1.8 | ||||||||||||||||||
Granted | 10,348 | 1.24 | |||||||||||||||||||
Vested | (6,013 | ) | 2.1 | ||||||||||||||||||
Forfeited | (2,652 | ) | 1.35 | ||||||||||||||||||
Nonvested as March 31, 2015 | 13,791 | $ | 1.34 | ||||||||||||||||||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Schedule of pre-tax income (loss) | Pre-tax income (loss) reflected in the Consolidated Statements of Operations for the years ended March 31, 2015, 2014 and 2013 follows (in thousands): | |||||||||||
For the year ended March 31, | ||||||||||||
2015 | 2014 | 2013 | ||||||||||
U.S | $ | 13,507 | $ | (22,549 | ) | $ | (52,940 | ) | ||||
Foreign | 3,971 | 2,292 | 1,922 | |||||||||
$ | 17,478 | $ | (20,257 | ) | $ | (51,018 | ) | |||||
Schedule of income tax provision | Income tax provision consists of the following (in thousands): | |||||||||||
For the year ended March 31, | ||||||||||||
2015 | 2014 | 2013 | ||||||||||
Federal: | $ | (138 | ) | $ | — | $ | — | |||||
State: | ||||||||||||
Current | 125 | 76 | 231 | |||||||||
Foreign: | ||||||||||||
Current | 890 | 1,096 | 1,090 | |||||||||
Deferred | (159 | ) | 45 | (160 | ) | |||||||
Total foreign | 731 | 1,141 | 930 | |||||||||
Income tax provision | $ | 718 | $ | 1,217 | $ | 1,161 | ||||||
Schedule of federal income tax rate reconciliation | The income tax provision differs from the amount computed by applying the federal statutory rate of 35% to income (loss) before income taxes as follows (in thousands): | |||||||||||
For the year ended March 31, | ||||||||||||
2015 | 2014 | 2013 | ||||||||||
Expense (benefit) at federal statutory rate | $ | 6,117 | $ | (7,090 | ) | $ | (17,856 | ) | ||||
State taxes | 125 | 76 | 300 | |||||||||
Unbenefited (benefited) losses and credits | (4,727 | ) | 7,974 | 18,715 | ||||||||
Contingent tax reserves | 103 | 460 | (130 | ) | ||||||||
Foreign rate differential | (778 | ) | (218 | ) | 120 | |||||||
Other | (122 | ) | 15 | 12 | ||||||||
$ | 718 | $ | 1,217 | $ | 1,161 | |||||||
Schedule of components of deferred tax assets and liabilities | Significant components of deferred tax assets and liabilities are as follows (in thousands): | |||||||||||
As of March 31, | ||||||||||||
2015 | 2014 | |||||||||||
Deferred tax assets: | ||||||||||||
Inventory valuation method | $ | 1,588 | $ | 1,742 | ||||||||
Accrued warranty expense | 1,624 | 2,336 | ||||||||||
Distribution reserves | 4,283 | 1,950 | ||||||||||
Loss carryforwards | 75,262 | 81,012 | ||||||||||
Tax credits | 185,578 | 191,372 | ||||||||||
Restructuring charge accruals | 1,866 | 3,191 | ||||||||||
Other accruals and reserves not currently deductible for tax purposes | 34,490 | 32,465 | ||||||||||
304,691 | 314,068 | |||||||||||
Less valuation allowance | (252,475 | ) | (261,337 | ) | ||||||||
Deferred tax asset | $ | 52,216 | $ | 52,731 | ||||||||
Deferred tax liabilities: | ||||||||||||
Depreciation | $ | (4,302 | ) | $ | (3,570 | ) | ||||||
Acquired intangibles | (4,920 | ) | (2,794 | ) | ||||||||
Tax on unremitted foreign earnings | (15,968 | ) | (17,245 | ) | ||||||||
Other | (26,093 | ) | (28,330 | ) | ||||||||
Deferred tax liability | $ | (51,283 | ) | $ | (51,939 | ) | ||||||
Net deferred tax asset | $ | 933 | $ | 792 | ||||||||
Reconciliation of gross unrecognized tax benefits | A reconciliation of the gross unrecognized tax benefits follows (in thousands): | |||||||||||
For the year ended March 31, | ||||||||||||
2015 | 2014 | 2013 | ||||||||||
Beginning balance | $ | 32,449 | $ | 32,549 | $ | 32,744 | ||||||
Settlement and effective settlements with tax authorities and related remeasurements | — | (488 | ) | (60 | ) | |||||||
Lapse of statute of limitations | — | — | (135 | ) | ||||||||
Increase in balances related to tax positions taken in prior period | — | 388 | — | |||||||||
Ending balance | $ | 32,449 | $ | 32,449 | $ | 32,549 | ||||||
NET_INCOME_LOSS_PER_SHARE_Tabl
NET INCOME (LOSS) PER SHARE (Tables) | 12 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
Schedule of basic and diluted net income (loss) per share | The following table sets forth the computation of basic and diluted net income (loss) per share (in thousands, except per-share data): | |||||||||||
For the year ended March 31, | ||||||||||||
2015 | 2014 | 2013 | ||||||||||
Numerator: | ||||||||||||
Net income (loss) | $ | 16,760 | $ | (21,474 | ) | $ | (52,179 | ) | ||||
Denominator: | ||||||||||||
Weighted average shares: | ||||||||||||
Basic | 254,665 | 247,024 | 239,855 | |||||||||
Dilutive shares from stock plans | 5,362 | — | — | |||||||||
Diluted | 260,027 | 247,024 | 239,855 | |||||||||
Basic net income (loss) per share | $ | 0.07 | $ | (0.09 | ) | $ | (0.22 | ) | ||||
Diluted net income (loss) per share | 0.06 | (0.09 | ) | (0.22 | ) | |||||||
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||
Schedule of future minimum lease payments and sublease rental income | Future minimum lease payments and sublease rental income are as follows (in thousands): | |||||||||||
Lease Payments | Sublease Rental Income | Total | ||||||||||
For the year ending March 31, | ||||||||||||
2016 | $ | 9,107 | $ | (587 | ) | $ | 8,520 | |||||
2017 | 6,610 | (959 | ) | 5,651 | ||||||||
2018 | 6,124 | (936 | ) | 5,188 | ||||||||
2019 | 5,523 | (909 | ) | 4,614 | ||||||||
2020 | 4,032 | (943 | ) | 3,089 | ||||||||
Thereafter | 4,459 | (813 | ) | 3,646 | ||||||||
$ | 35,855 | $ | (5,147 | ) | $ | 30,708 | ||||||
GEOGRAPHIC_INFORMATION_Tables
GEOGRAPHIC INFORMATION (Tables) | 12 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||
Schedule of revenue and long-lived assets by region | Revenue, attributed to regions based on the location of customers, and long-lived assets, comprised of property and equipment, by region were as follows (in thousands): | |||||||||||||||||||||||
As of and for the year ended March 31, | ||||||||||||||||||||||||
2015 | 2014 | 2013 | ||||||||||||||||||||||
Long- | Revenue | Long- | Revenue | Long-Lived | Revenue | |||||||||||||||||||
Lived | Lived | Assets | ||||||||||||||||||||||
Assets | Assets | |||||||||||||||||||||||
Americas | $ | 14,063 | $ | 340,811 | $ | 16,759 | $ | 359,259 | $ | 20,182 | $ | 378,514 | ||||||||||||
Europe | 421 | 152,186 | 524 | 143,508 | 756 | 151,676 | ||||||||||||||||||
Asia Pacific | 169 | 60,098 | 291 | 50,398 | 518 | 57,249 | ||||||||||||||||||
$ | 14,653 | $ | 553,095 | $ | 17,574 | $ | 553,165 | $ | 21,456 | $ | 587,439 | |||||||||||||
Schedule of revenues attributable to product groups, services and royalties | Following are revenues attributable to each of our product groups, services and royalties (in thousands): | |||||||||||||||||||||||
For the year ended March 31, | ||||||||||||||||||||||||
2015 | 2014 | 2013 | ||||||||||||||||||||||
Tape automation systems | $ | 152,205 | $ | 174,438 | $ | 206,112 | ||||||||||||||||||
Disk backup systems* | 54,845 | 50,217 | 74,255 | |||||||||||||||||||||
Devices and media | 62,642 | 70,680 | 68,724 | |||||||||||||||||||||
Scale-out storage solutions* | 85,887 | 52,983 | 49,819 | |||||||||||||||||||||
Service | 155,674 | 147,199 | 144,037 | |||||||||||||||||||||
Royalty | 41,842 | 57,648 | 44,492 | |||||||||||||||||||||
Total revenue | $ | 553,095 | $ | 553,165 | $ | 587,439 | ||||||||||||||||||
*Revenue from disk backup systems and scale-out storage solutions was previously included in a caption entitled disk systems and software solutions. Previously reported amounts have been reclassified to conform to current period presentation. |
UNAUDITED_QUARTERLY_FINANCIAL_1
UNAUDITED QUARTERLY FINANCIAL DATA (Tables) | 12 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||
Schedule of Quarterly Financial Information | ||||||||||||||||
For the year ended March 31, 2015 | ||||||||||||||||
(In thousands, except per share data) | 1st | 2nd | 3rd | 4th | ||||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||||
Revenue | $ | 128,128 | $ | 135,106 | $ | 142,063 | $ | 147,798 | ||||||||
Gross margin | 55,526 | 61,929 | 65,067 | 62,164 | ||||||||||||
Net income (loss) | (4,324 | ) | 1,248 | 6,931 | 12,905 | |||||||||||
Basic net income (loss) per share | (0.02 | ) | 0 | 0.03 | 0.05 | |||||||||||
Diluted net income (loss) per share | (0.02 | ) | 0 | 0.03 | 0.04 | |||||||||||
For the year ended March 31, 2014 | ||||||||||||||||
1st | 2nd | 3rd | 4th | |||||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||||
Revenue | $ | 147,849 | $ | 131,479 | $ | 145,869 | $ | 127,968 | ||||||||
Gross margin | 69,835 | 56,392 | 61,373 | 52,020 | ||||||||||||
Net income (loss) | 3,281 | (7,893 | ) | (2,458 | ) | (14,404 | ) | |||||||||
Basic and diluted net income (loss) per share | 0.01 | (0.03 | ) | (0.01 | ) | (0.06 | ) | |||||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) (USD $) | 12 Months Ended | |||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2000 | |
Accounting Policies [Abstract] | ||||
Shipping and handling fees | $12,300,000 | $13,600,000 | $16,000,000 | |
Advertising expense | 7,600,000 | 8,400,000 | 8,200,000 | |
Foreign currency gain (loss) recorded in other income and expense | 200,000 | 300,000 | -500,000 | |
Gain on sale of other investments | 13,574,000 | 0 | 0 | |
Product Warranty Term [Line Items] | ||||
Amount authorized to repurchase common stock | 700,000,000 | |||
Remaining amount authorized to repurchase common stock | $87,900,000 | $87,900,000 | ||
Minimum | ||||
Product Warranty Term [Line Items] | ||||
Product warranty term (in years) | 1 year | |||
Maximum | ||||
Product Warranty Term [Line Items] | ||||
Product warranty term (in years) | 3 years |
SUMMARY_OF_SIGNIFICANT_ACCOUNT4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Share-Based Compensation (Details) | 12 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Pricing model used in estimating grant-date fair value | Black-Scholes | |
Market RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Pricing model used in estimating grant-date fair value | Monte-Carlo | Monte Carlo |
SUMMARY_OF_SIGNIFICANT_ACCOUNT5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Property and Equipment Useful Lives (Details) | 12 Months Ended |
Mar. 31, 2015 | |
Machinery and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Machinery and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
Computer equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Computer equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
ERP software | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 10 years |
Other software | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Furniture and fixtures | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
Other office equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
Leasehold improvements | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of leasehold improvements | Life of lease |
SUMMARY_OF_SIGNIFICANT_ACCOUNT6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Assets Measured at Fair Value on a Recurring Basis (Details) (Level 1, Money market funds, USD $) | Mar. 31, 2015 | Mar. 31, 2014 |
In Thousands, unless otherwise specified | ||
Level 1 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured and recorded at fair value on a recurring basis | $34,278 | $93,077 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Carrying Value and Fair Value of Financial Liabilities (Details) (USD $) | Mar. 31, 2015 | Mar. 31, 2014 |
In Thousands, unless otherwise specified | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Carrying Value | $153,735 | |
Convertible subordinated debt | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Carrying Value | 153,735 | 203,735 |
Level 2 fair value measurement | Convertible subordinated debt | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Fair Value | $166,551 | $203,820 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Concentration of Credit Risk (Details) (Sales, Customer concentration risk) | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2013 | |
Rate | Rate | ||
Concentration Risk [Line Items] | |||
Percentage of revenue | 31.00% | ||
Top five customers | |||
Concentration Risk [Line Items] | |||
Percentage of revenue | 31.00% | 32.00% |
ACQUISITION_Details
ACQUISITION (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Business Combinations [Abstract] | |||
Payment for business acquisition, net of cash acquired | $517 | $0 | $0 |
BALANCE_SHEET_DETAILS_Schedule
BALANCE SHEET DETAILS - Schedule of Cash, Cash Equivalents and Restricted Cash (Details) (USD $) | Mar. 31, 2015 | Mar. 31, 2014 |
In Thousands, unless otherwise specified | ||
Balance Sheet Related Disclosures [Abstract] | ||
Cash | $36,291 | $8,808 |
Money market funds | 34,278 | 93,077 |
Cash, cash equivalents, and restricted cash | $70,569 | $101,885 |
BALANCE_SHEET_DETAILS_Schedule1
BALANCE SHEET DETAILS - Schedule of Manufacturing Inventories (Details) (USD $) | Mar. 31, 2015 | Mar. 31, 2014 |
In Thousands, unless otherwise specified | ||
Balance Sheet Related Disclosures [Abstract] | ||
Finished goods | $28,022 | $18,069 |
Work in process | 58 | 1,056 |
Materials and purchased parts | 22,194 | 15,690 |
Manufacturing inventories, net | $50,274 | $34,815 |
BALANCE_SHEET_DETAILS_Schedule2
BALANCE SHEET DETAILS - Schedule of Service Parts Inventories (Details) (USD $) | Mar. 31, 2015 | Mar. 31, 2014 |
In Thousands, unless otherwise specified | ||
Balance Sheet Related Disclosures [Abstract] | ||
Finished goods | $18,143 | $17,926 |
Component parts | 6,497 | 7,703 |
Service parts inventories, net | $24,640 | $25,629 |
BALANCE_SHEET_DETAILS_Schedule3
BALANCE SHEET DETAILS - Schedule of Property and Equipment (Details) (USD $) | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $148,464 | $146,026 | |
Less: accumulated depreciation | -133,811 | -128,452 | |
Property and equipment, net | 14,653 | 17,574 | 21,456 |
Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 122,339 | 119,783 | |
Furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 5,816 | 6,127 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $20,309 | $20,116 |
INTANGIBLE_ASSETS_AND_GOODWILL2
INTANGIBLE ASSETS AND GOODWILL - Schedule of Weighted Average Amortization Period (Details) | 12 Months Ended |
Mar. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted average amortization period | 6 years 8 months 17 days |
Purchased technology | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted average amortization period | 6 years 2 months 5 days |
Trademarks | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted average amortization period | 6 years 0 months 1 day |
Customer lists | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted average amortization period | 8 years 0 months 7 days |
INTANGIBLE_ASSETS_AND_GOODWILL3
INTANGIBLE ASSETS AND GOODWILL - Schedule of Intangible Amortization (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Finite-Lived Intangible Assets [Line Items] | |||
Intangible amortization | $3,697 | $8,902 | $13,299 |
Purchased technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible amortization | 913 | 1,476 | 3,775 |
Trademarks | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible amortization | 0 | 0 | 244 |
Customer lists | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible amortization | $2,784 | $7,426 | $9,280 |
INTANGIBLE_ASSETS_AND_GOODWILL4
INTANGIBLE ASSETS AND GOODWILL - Schedule of Intangible Assets (Details) (USD $) | Mar. 31, 2015 | Mar. 31, 2014 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | $250,111 | $259,394 |
Accumulated Amortization | -249,380 | -255,483 |
Net Amount | 731 | 3,911 |
Purchased technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 179,992 | 179,475 |
Accumulated Amortization | -179,261 | -178,348 |
Net Amount | 731 | 1,127 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 3,900 | 3,900 |
Accumulated Amortization | -3,900 | -3,900 |
Net Amount | 0 | 0 |
Customer lists | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 66,219 | 76,019 |
Accumulated Amortization | -66,219 | -73,235 |
Net Amount | $0 | $2,784 |
INTANGIBLE_ASSETS_AND_GOODWILL5
INTANGIBLE ASSETS AND GOODWILL - Schedule of Estimated Future Amortization (Details) (USD $) | Mar. 31, 2015 |
In Thousands, unless otherwise specified | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Fiscal 2016 | $280 |
Fiscal 2017 | 175 |
Fiscal 2018 | 138 |
Fiscal 2019 | 103 |
Fiscal 2020 | 35 |
Total | $731 |
INTANGIBLE_ASSETS_AND_GOODWILL6
INTANGIBLE ASSETS AND GOODWILL - Narrative (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful life (in years) | 6 years 8 months 17 days | |
Write off of fully amortized intangible assets | $9.80 | $31 |
IPR&D transferred to amortizable purchased technology intangible assets | $0.10 | |
Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful life (in years) | 1 year | |
Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful life (in years) | 8 years |
INTANGIBLE_ASSETS_AND_GOODWILL7
INTANGIBLE ASSETS AND GOODWILL - Schedule of Goodwill (Details) (USD $) | Mar. 31, 2015 | Mar. 31, 2014 |
In Thousands, unless otherwise specified | ||
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $394,613 | $394,613 |
Accumulated Impairment Losses | -339,000 | -339,000 |
Net Amount | $55,613 | $55,613 |
ACCRUED_WARRANTY_Schedule_of_C
ACCRUED WARRANTY - Schedule of Changes in Accrued Warranty (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Beginning balance | $6,116 | $7,520 |
Additional warranties issued | 6,146 | 8,508 |
Adjustments for warranties issued in prior fiscal years | -185 | -228 |
Settlements | -7,858 | -9,684 |
Ending balance | $4,219 | $6,116 |
ACCRUED_WARRANTY_Narrative_Det
ACCRUED WARRANTY - Narrative (Details) | 12 Months Ended |
Mar. 31, 2015 | |
Minimum | |
Product Warranty Term [Line Items] | |
Product warranty term (in years) | 1 year |
Maximum | |
Product Warranty Term [Line Items] | |
Product warranty term (in years) | 3 years |
DEBT_Narrative_Details
DEBT - Narrative (Details) (USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | |||||||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | Oct. 31, 2012 | Nov. 06, 2012 | Mar. 31, 2011 | Mar. 29, 2012 | Apr. 24, 2014 | Jan. 28, 2015 | Mar. 11, 2014 | Nov. 15, 2010 | |
Debt Instrument [Line Items] | |||||||||||
Loss on debt extinguishment | $1,295,000 | $0 | $0 | ||||||||
Accrued interest paid | 8,498,000 | 8,247,000 | 5,672,000 | ||||||||
4.50% Convertible Subordinated Debt | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate per annum on the principal amount (as a percent) | 4.50% | ||||||||||
Principal amount outstanding | 60,000,000 | ||||||||||
Debt due date | 15-Nov-17 | ||||||||||
Additional aggregate principal amount of debt issued | 10,000,000 | ||||||||||
Conversion rate | 607.1645 | ||||||||||
Conversion ratio applied per principal amount | 1,000 | ||||||||||
Conversion price (usd per share) | $1.65 | $1.65 | |||||||||
Latest date that investors may convert notes into common stock | 14-Nov-17 | ||||||||||
Capitalized debt issuance costs | 2,300,000 | ||||||||||
3.50% Convertible Subordinated Debt | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate per annum on the principal amount (as a percent) | 3.50% | ||||||||||
Principal amount outstanding | 135,000,000 | ||||||||||
Debt due date | 15-Nov-15 | ||||||||||
Conversion price (usd per share) | $4.33 | $4.33 | |||||||||
Latest date that investors may convert notes into common stock | 14-Nov-15 | ||||||||||
Capitalized debt issuance costs | 5,000,000 | ||||||||||
Repurchased principal amount | 50,000,000 | 1,300,000 | |||||||||
Repurchase amount | 51,000,000 | 1,300,000 | |||||||||
Loss on debt extinguishment | 1,300,000 | ||||||||||
Loss from notes purchased | 1,000,000 | ||||||||||
Write-off of unamortized debt issuance costs | 300,000 | ||||||||||
Accrued interest paid | 400,000 | ||||||||||
Wells Fargo Credit Agreement | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Capitalized debt issuance costs | 1,000,000 | ||||||||||
Fixed charge coverage ratio | 1.5 | ||||||||||
Amount of liquidity to be below for covenant to be applicable | 15,000,000 | 25,000,000 | |||||||||
Line of credit facility, fixed charge coverage ratio | 1.2 | ||||||||||
Line of credit facility, fixed charge coverage ratio, period when covenant is applied | 12 months | ||||||||||
Amount of borrowings, if exceeded, increase the filing compliance certificates to monthly rather than quarterly | 5,000,000 | ||||||||||
Line of credit facility, amount of liquidity required to avoid audits | 20,000,000 | ||||||||||
Amount of borrowings, if exceeded, increase the filing of compliance certificates to monthly rather than quarterly | 5,000,000 | ||||||||||
Wells Fargo Credit Agreement | Base rate | Minimum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate margin | 1.00% | ||||||||||
Wells Fargo Credit Agreement | Base rate | Maximum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate margin | 1.50% | ||||||||||
Wells Fargo Credit Agreement | LIBOR | Minimum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate margin | 2.00% | ||||||||||
Wells Fargo Credit Agreement | LIBOR | Maximum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate margin | 2.50% | ||||||||||
Wells Fargo Credit Agreement | Revolving Credit Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit facility, maximum borrowing amount | 75,000,000 | ||||||||||
Line of credit facility, expiration date | 29-Mar-17 | ||||||||||
Line of credit facility, frequency of commitment fee payment | Quarterly | ||||||||||
Line of credit facility, percent commitment fee on undrawn amounts | 0.38% | ||||||||||
Wells Fargo Credit Agreement | Letter of Credit | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit facility, letters of credit outstanding | $1,000,000 |
DEBT_Schedule_of_Debt_Maturiti
DEBT - Schedule of Debt Maturities (Details) (USD $) | Mar. 31, 2015 |
In Thousands, unless otherwise specified | |
Debt Maturity | |
Fiscal 2016 | $83,735 |
Fiscal 2017 | 0 |
Fiscal 2018 | 70,000 |
Total | $153,735 |
RESTRUCTURING_CHARGES_Schedule
RESTRUCTURING CHARGES - Schedule of Restructuring Expense (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Restructuring Costs [Abstract] | |||
Restructuring expense related to cost of revenue | $0 | $539 | $0 |
Restructuring expense in operating expense | 1,666 | 10,675 | 10,171 |
Restructuring expense | 1,666 | 11,214 | 10,171 |
Restructuring Charges [Abstract] | |||
Severance and benefits | 406 | 6,139 | 8,251 |
Facilities | 1,250 | 4,303 | 1,920 |
Other | 10 | 772 | 0 |
Restructuring expense | $1,666 | $11,214 | $10,171 |
RESTRUCTURING_CHARGES_Narrativ
RESTRUCTURING CHARGES - Narrative (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Restructuring and Related Activities [Abstract] | |||
Facilities | $1,250 | $4,303 | $1,920 |
Severance and benefits | 406 | 6,139 | 8,251 |
Other | $10 | $772 | $0 |
RESTRUCTURING_CHARGES_Schedule1
RESTRUCTURING CHARGES - Schedule of Restructuring Activity (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Restructuring Reserve [Roll Forward] | |||
Beginning balance | $8,368 | $4,756 | $1,752 |
Restructuring costs | 2,442 | 12,686 | 10,735 |
Restructuring charge reversal | -776 | -1,472 | -564 |
Cash payments | -5,488 | -8,585 | -7,167 |
Other non-cash | 300 | 983 | |
Ending balance | 4,846 | 8,368 | 4,756 |
Severance and benefits | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 1,574 | 2,711 | 1,312 |
Restructuring costs | 749 | 7,522 | 8,815 |
Restructuring charge reversal | -343 | -1,383 | -564 |
Cash payments | -1,791 | -7,276 | -6,852 |
Other non-cash | 0 | 0 | |
Ending balance | 189 | 1,574 | 2,711 |
Facilities | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 6,724 | 2,045 | 440 |
Restructuring costs | 1,680 | 4,392 | 1,920 |
Restructuring charge reversal | -430 | -89 | 0 |
Cash payments | -3,617 | -607 | -315 |
Other non-cash | 300 | 983 | |
Ending balance | 4,657 | 6,724 | 2,045 |
Other | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 70 | 0 | 0 |
Restructuring costs | 13 | 772 | 0 |
Restructuring charge reversal | -3 | 0 | 0 |
Cash payments | -80 | -702 | 0 |
Other non-cash | 0 | 0 | |
Ending balance | $0 | $70 | $0 |
RESTRUCTURING_CHARGES_Schedule2
RESTRUCTURING CHARGES - Schedule of Estimated Timing of Future Payouts (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 |
Restructuring Cost and Reserve [Line Items] | |
Estimated timing of future payouts | $4,846 |
Fiscal 2016 | |
Restructuring Cost and Reserve [Line Items] | |
Estimated timing of future payouts | 3,855 |
Fiscal 2017 to 2021 | |
Restructuring Cost and Reserve [Line Items] | |
Estimated timing of future payouts | 991 |
Severance and benefits | |
Restructuring Cost and Reserve [Line Items] | |
Estimated timing of future payouts | 189 |
Severance and benefits | Fiscal 2016 | |
Restructuring Cost and Reserve [Line Items] | |
Estimated timing of future payouts | 75 |
Severance and benefits | Fiscal 2017 to 2021 | |
Restructuring Cost and Reserve [Line Items] | |
Estimated timing of future payouts | 114 |
Facilities | |
Restructuring Cost and Reserve [Line Items] | |
Estimated timing of future payouts | 4,657 |
Facilities | Fiscal 2016 | |
Restructuring Cost and Reserve [Line Items] | |
Estimated timing of future payouts | 3,780 |
Facilities | Fiscal 2017 to 2021 | |
Restructuring Cost and Reserve [Line Items] | |
Estimated timing of future payouts | $877 |
STOCK_INCENTIVE_PLANS_AND_SHAR2
STOCK INCENTIVE PLANS AND SHARE-BASED COMPENSATION - Narrative (Details) (USD $) | 12 Months Ended | 36 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares granted, stock awards | 10,348,000 | |||
Share-based compensation expense | $11,583,000 | $13,459,000 | $15,139,000 | |
Restricted stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation cost | 12,400,000 | 12,400,000 | ||
Weighted-average period for recognition | 1 year 6 months 20 days | |||
Fair value of awards released | 7,700,000 | 6,200,000 | 7,400,000 | |
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Pricing model used in estimating grant-date fair value | Black-Scholes | |||
Unrecognized compensation cost | 100,000 | 100,000 | ||
Weighted-average period for recognition | 1 year | |||
Total intrinsic value of options exercised | 400,000 | 400,000 | 300,000 | |
Stock options | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Prices for stock options exercised | $0.11 | |||
Stock options | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Prices for stock options exercised | $2.08 | |||
Performance RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares granted, stock awards | 2,400,000 | 200,000 | ||
Fair value at the grant date | 3,000,000 | 200,000 | ||
Share-based compensation expense | 400,000 | |||
Market RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Pricing model used in estimating grant-date fair value | Monte-Carlo | Monte Carlo | ||
Number of days over average stock price is calculated | 60 days | |||
Number of shares granted, stock awards | 800,000 | |||
Expected volatility rate | 66.00% | |||
Risk free interest rate | 0.50% | |||
Fair value at the grant date | $700,000 | |||
2012 Long-Term Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total shares authorized | 34,300,000 | 34,300,000 | ||
Shares available for grant | 12,900,000 | 12,900,000 | ||
Stock options and restricted shares outstanding | 18,700,000 | 18,700,000 | ||
2012 Long-Term Incentive Plan | Restricted Stock Units | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
2012 Long-Term Incentive Plan | Restricted Stock Units | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 4 years | |||
2012 Long-Term Incentive Plan | Market RSUs | Vesting Date One | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected term | 10 months | |||
2012 Long-Term Incentive Plan | Market RSUs | Vesting Date Two | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected term | 22 months | |||
2012 Long-Term Incentive Plan | Market RSUs | Vesting Date Three | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected term | 34 months | |||
2012 Long-Term Incentive Plan | Market RSUs | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 2 years | |||
Other Stock Incentive Plans | Restricted stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 1 year | |||
Other Stock Incentive Plans | Restricted stock | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 1 year | |||
Other Stock Incentive Plans | Restricted stock | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 4 years | |||
Other Stock Incentive Plans | Stock options | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 1 year | |||
Stock options granted contractual terms | 7 years | |||
Other Stock Incentive Plans | Stock options | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 4 years | |||
Stock options granted contractual terms | 10 years | |||
Stock purchase plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total shares authorized | 64,300,000 | 64,300,000 | ||
Shares available for grant | 5,600,000 | 5,600,000 | ||
Discount on market price to purchase stock | 15.00% | |||
Shares issued | 58,700,000 | 58,700,000 | ||
Maximum amount of shares to be purchased in any offering period | 2,000,000 | |||
Duration of offering periods | 6 months | |||
Number of shares purchased | 2,800,000 | 3,200,000 | 3,800,000 | |
Weighted-average price of stock purchased | $1.04 | $1.07 | $1.17 | $1.04 |
Expected volatility rate | 36.58% | 43.71% | 69.73% | |
Risk free interest rate | 0.07% | 0.07% | 0.13% | |
Expected term | 6 months | 6 months | 6 months |
STOCK_INCENTIVE_PLANS_AND_SHAR3
STOCK INCENTIVE PLANS AND SHARE-BASED COMPENSATION - Schedule of Assumptions Used to Valuing Stock Purchase Plan (Details) (Stock purchase plan, USD $) | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | |
Rate | Rate | Rate | |
Stock purchase plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Option life (in years) | 6 months | 6 months | 6 months |
Risk-free interest rate | 0.07% | 0.07% | 0.13% |
Stock price volatility | 36.58% | 43.71% | 69.73% |
Weighted-average grant date fair value (usd per share) | $0.36 | $0.40 | $0.48 |
STOCK_INCENTIVE_PLANS_AND_SHAR4
STOCK INCENTIVE PLANS AND SHARE-BASED COMPENSATION - Schedule of Share-based Compensation Expense (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Share-based compensation expense: | |||
Total share-based compensation expense | $11,583 | $13,459 | $15,139 |
Cost of revenue | |||
Share-based compensation expense: | |||
Total share-based compensation expense | 1,489 | 1,963 | 2,389 |
Research and development | |||
Share-based compensation expense: | |||
Total share-based compensation expense | 2,559 | 3,430 | 3,665 |
Sales and marketing | |||
Share-based compensation expense: | |||
Total share-based compensation expense | 3,506 | 4,097 | 4,699 |
General and administrative | |||
Share-based compensation expense: | |||
Total share-based compensation expense | $4,029 | $3,969 | $4,386 |
STOCK_INCENTIVE_PLANS_AND_SHAR5
STOCK INCENTIVE PLANS AND SHARE-BASED COMPENSATION - Schedule of Share-based Compensation by Type of Award (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Share-based compensation by type of award: | |||
Total share-based compensation expense | $11,583 | $13,459 | $15,139 |
Stock purchase plan | |||
Share-based compensation by type of award: | |||
Total share-based compensation expense | 864 | 1,277 | 1,828 |
Stock options | |||
Share-based compensation by type of award: | |||
Total share-based compensation expense | 617 | 826 | 1,681 |
Restricted stock | |||
Share-based compensation by type of award: | |||
Total share-based compensation expense | $10,102 | $11,356 | $11,630 |
STOCK_INCENTIVE_PLANS_AND_SHAR6
STOCK INCENTIVE PLANS AND SHARE-BASED COMPENSATION - Schedule of Stock Option Activity (Details) (USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 |
Stock Options | |
Outstanding, beginning balance | 7,997 |
Exercised | -866 |
Forfeited | -117 |
Expired | -2,070 |
Outstanding, ending balance | 4,944 |
Stock Options, vested and expected to vest | 4,944 |
Stock Options, exercisable | 4,916 |
Weighted- Average Exercise Price | |
Outstanding, beginning balance | $1.78 |
Exercised | $0.97 |
Forfeited | $2.14 |
Expired | $2.83 |
Outstanding, ending balance | $1.47 |
Weighted-Average Exercise Price, vested and expected to vest | $1.47 |
Weighted-Average Exercise Price, exercisable | $1.46 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest [Abstract] | |
Weighted-Average Remaining Contractual Term, outstanding | 1 year 8 months 20 days |
Weighted-Average Remaining Contractual Term, vested and expected to vest | 1 year 8 months 20 days |
Weighted-Average Remaining Contractual Term, exercisable | 1 year 8 months 16 days |
Aggregate Intrinsic Value | |
Aggregate Intrinsic Value, outstanding | $2,039 |
Aggregate Intrinsic Value, vested and expected to vest | 2,039 |
Aggregate Intrinsic Value, exercisable | $2,039 |
STOCK_INCENTIVE_PLANS_AND_SHAR7
STOCK INCENTIVE PLANS AND SHARE-BASED COMPENSATION - Schedule of Options Outstanding and Exercisable, by Exercise Price Range (Details) (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Stock Options Outstanding | 4,944 | 7,997 |
Weighted- Average Exercise Price | $1.47 | $1.78 |
Weighted- Average Remaining Contractual Life (Years) | 1 year 8 months 20 days | |
Stock Options Exercisable | 4,916 | |
Weighted- Average Exercise Price | $1.46 | |
Exercise Price Range 1 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Range of Exercise Prices, Minimum | $0.11 | |
Range of Exercise Prices, Maximum | $0.63 | |
Stock Options Outstanding | 52 | |
Weighted- Average Exercise Price | $0.49 | |
Weighted- Average Remaining Contractual Life (Years) | 3 years 2 months 12 days | |
Stock Options Exercisable | 52 | |
Weighted- Average Exercise Price | $0.49 | |
Exercise Price Range 2 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Range of Exercise Prices, Minimum | $0.77 | |
Range of Exercise Prices, Maximum | $0.98 | |
Stock Options Outstanding | 3,019 | |
Weighted- Average Exercise Price | $0.98 | |
Weighted- Average Remaining Contractual Life (Years) | 1 year 3 months 0 days | |
Stock Options Exercisable | 3,019 | |
Weighted- Average Exercise Price | $0.98 | |
Exercise Price Range 3 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Range of Exercise Prices, Minimum | $1 | |
Range of Exercise Prices, Maximum | $1.35 | |
Stock Options Outstanding | 233 | |
Weighted- Average Exercise Price | $1.15 | |
Weighted- Average Remaining Contractual Life (Years) | 1 year 3 months 3 days | |
Stock Options Exercisable | 233 | |
Weighted- Average Exercise Price | $1.15 | |
Exercise Price Range 4 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Range of Exercise Prices, Minimum | $1.61 | |
Range of Exercise Prices, Maximum | $2.17 | |
Stock Options Outstanding | 204 | |
Weighted- Average Exercise Price | $1.80 | |
Weighted- Average Remaining Contractual Life (Years) | 0 years 5 months 5 days | |
Stock Options Exercisable | 204 | |
Weighted- Average Exercise Price | $1.80 | |
Exercise Price Range 5 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Range of Exercise Prices, Minimum | $2.52 | |
Range of Exercise Prices, Maximum | $2.93 | |
Stock Options Outstanding | 1,436 | |
Weighted- Average Exercise Price | $2.53 | |
Weighted- Average Remaining Contractual Life (Years) | 2 years 10 months 25 days | |
Stock Options Exercisable | 1,408 | |
Weighted- Average Exercise Price | $2.53 |
STOCK_INCENTIVE_PLANS_AND_SHAR8
STOCK INCENTIVE PLANS AND SHARE-BASED COMPENSATION - Schedule of Restricted Stock Activity (Details) (USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 |
Shares | |
Nonvested, beginning balance | 12,108 |
Granted | 10,348 |
Vested | -6,013 |
Forfeited | -2,652 |
Nonvested, ending balance | 13,791 |
Weighted-Average Grant Date Fair Value | |
Nonvested, beginning balance | $1.80 |
Granted | $1.24 |
Vested | $2.10 |
Forfeited | $1.35 |
Nonvested, ending balance | $1.34 |
401K_PLAN_Details
401K PLAN (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Compensation and Retirement Disclosure [Abstract] | |||
Employer contributions | $2.40 | $2.60 | $2.80 |
INCOME_TAXES_Schedule_of_Preta
INCOME TAXES - Schedule of Pre-tax Income (Loss) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Income Tax Disclosure [Abstract] | |||
U.S | $13,507 | ($22,549) | ($52,940) |
Foreign | 3,971 | 2,292 | 1,922 |
Income (loss) before income taxes | $17,478 | ($20,257) | ($51,018) |
INCOME_TAXES_Schedule_of_Compo
INCOME TAXES - Schedule of Components of Income Tax Provision (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Federal: | |||
Current | ($138) | $0 | $0 |
State: | |||
Current | 125 | 76 | 231 |
Foreign: | |||
Current | 890 | 1,096 | 1,090 |
Deferred | -159 | 45 | -160 |
Total foreign | 731 | 1,141 | 930 |
Income tax provision | $718 | $1,217 | $1,161 |
INCOME_TAXES_Schedule_of_Incom
INCOME TAXES - Schedule of Income Tax Rate Reconciliation Amount (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Income Tax Disclosure [Abstract] | |||
Expense (benefit) at federal statutory rate | $6,117 | ($7,090) | ($17,856) |
State taxes | 125 | 76 | 300 |
Unbenefited (benefited) losses and credits | -4,727 | 7,974 | 18,715 |
Contingent tax reserves | 103 | 460 | -130 |
Foreign rate differential | -778 | -218 | 120 |
Other | -122 | 15 | 12 |
Income tax provision | $718 | $1,217 | $1,161 |
INCOME_TAXES_Schedule_of_Compo1
INCOME TAXES - Schedule of Components of Deferred Tax Assets and Liabilities (Details) (USD $) | Mar. 31, 2015 | Mar. 31, 2014 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ||
Inventory valuation method | $1,588 | $1,742 |
Accrued warranty expense | 1,624 | 2,336 |
Distribution reserves | 4,283 | 1,950 |
Loss carryforwards | 75,262 | 81,012 |
Tax credits | 185,578 | 191,372 |
Restructuring charge accruals | 1,866 | 3,191 |
Other accruals and reserves not currently deductible for tax purposes | 34,490 | 32,465 |
Deferred tax asset, gross | 304,691 | 314,068 |
Less valuation allowance | -252,475 | -261,337 |
Deferred tax asset | 52,216 | 52,731 |
Deferred tax liabilities: | ||
Depreciation | -4,302 | -3,570 |
Acquired intangibles | -4,920 | -2,794 |
Tax on unremitted foreign earnings | -15,968 | -17,245 |
Other | -26,093 | -28,330 |
Deferred tax liability | -51,283 | -51,939 |
Net deferred tax asset | $933 | $792 |
INCOME_TAXES_Reconciliation_of
INCOME TAXES - Reconciliation of Unrecognized Tax Benefits (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | $32,449 | $32,549 | $32,744 |
Settlement and effective settlements with tax authorities and related remeasurements | 0 | -488 | -60 |
Lapse of statute of limitations | 0 | 0 | -135 |
Increase in balances related to tax positions taken in prior period | 0 | 388 | 0 |
Ending balance | $32,449 | $32,449 | $32,549 |
INCOME_TAXES_Narrative_Details
INCOME TAXES - Narrative (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Rate | |||
Income Tax Disclosure [Abstract] | |||
Federal statutory rate (as a percent) | 35.00% | ||
Increase (decrease) in valuation allowance | ($8.90) | ($8) | $17 |
Total unrecognized tax benefit including interest and penalties | 33.5 | ||
Accrued interest and penalties | 1.1 | ||
Federal net operating loss | 259.3 | ||
Tax credit carryforwards | 140 | ||
Federal net operating loss carryforwards attributable to excess tax deductions from stock option exercises | 33.6 | ||
Acquired net operating losses included in carryforwards | 11.1 | ||
Acquired credits included in carryforwards | $10.70 |
NET_INCOME_LOSS_PER_SHARE_Net_
NET INCOME (LOSS) PER SHARE - Net Income (Loss) Per Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Earnings Per Share [Abstract] | |||||||||||
Net income (loss) | $12,905 | $6,931 | $1,248 | ($4,324) | ($14,404) | ($2,458) | ($7,893) | $3,281 | $16,760 | ($21,474) | ($52,179) |
Weighted average shares: | |||||||||||
Basic | 254,665 | 247,024 | 239,855 | ||||||||
Dilutive shares from stock plans | 5,362 | 0 | 0 | ||||||||
Diluted | 260,027 | 247,024 | 239,855 | ||||||||
Basic net income (loss) per share | $0.05 | $0.03 | $0 | ($0.02) | $0.07 | ($0.09) | ($0.22) | ||||
Diluted net income (loss) per share | $0.04 | $0.03 | $0 | ($0.02) | $0.06 | ($0.09) | ($0.22) |
NET_INCOME_LOSS_PER_SHARE_Narr
NET INCOME (LOSS) PER SHARE - Narrative (Details) (USD $) | 12 Months Ended | |||||
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | Jun. 23, 2009 | Nov. 15, 2010 | Oct. 31, 2012 |
Stock options | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Anti-dilutive shares excluded from anti-dilutive shares excluded from computations (in shares) | 2.4 | 12.8 | 17.3 | |||
Restricted Stock Units | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Anti-dilutive shares excluded from anti-dilutive shares excluded from computations (in shares) | 0.1 | 11 | 10.1 | |||
EMC Corporation | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Number of shares called by warrants (in shares) | 10 | |||||
Exercise price (usd per share) | $0.38 | |||||
3.50% Convertible Subordinated Debt | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Stated interest rate (as a percent) | 3.50% | |||||
Conversion price (usd per share) | 4.33 | $4.33 | ||||
Anti-dilutive shares excluded from anti-dilutive shares excluded from computations (in shares) | 29 | 31.1 | 31.2 | |||
Anti-dilutive income excluded from computations | 5.3 | 5.7 | 5.7 | |||
4.50% Convertible Subordinated Debt | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Stated interest rate (as a percent) | 4.50% | |||||
Conversion price (usd per share) | 1.65 | $1.65 | ||||
Anti-dilutive shares excluded from anti-dilutive shares excluded from computations (in shares) | 42.5 | 42.5 | 17.6 | |||
Anti-dilutive income excluded from computations | 3.6 | 3.6 | 1.5 |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES - Schedule Of Future Minimum Lease Payments (Details) (USD $) | Mar. 31, 2015 |
In Thousands, unless otherwise specified | |
Lease Payments | |
2016 | $9,107 |
2017 | 6,610 |
2018 | 6,124 |
2019 | 5,523 |
2020 | 4,032 |
Thereafter | 4,459 |
Total | 35,855 |
Sublease Rental Income | |
2016 | -587 |
2017 | -959 |
2018 | -936 |
2019 | -909 |
2020 | -943 |
Thereafter | -813 |
Total | -5,147 |
Total | |
2016 | 8,520 |
2017 | 5,651 |
2018 | 5,188 |
2019 | 4,614 |
2020 | 3,089 |
Thereafter | 3,646 |
Total | $30,708 |
COMMITMENTS_AND_CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Narrative (Details) (USD $) | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | |
Operating Leases [Line Items] | |||
Future minimum lease payments | $35,855,000 | ||
Future minimum sublease rental income | 5,147,000 | ||
Rent expense | 7,000,000 | 10,300,000 | 11,300,000 |
Non-cancelable commitments | 46,000,000 | ||
Colorado Springs campus | |||
Operating Leases [Line Items] | |||
Number of buildings | 3 | ||
Future minimum lease payments | 18,800,000 | ||
Future minimum sublease rental income | $4,900,000 | ||
Five Years | Colorado Springs campus | |||
Operating Leases [Line Items] | |||
Initial lease term (in years) | 5 years | ||
Lease extension term (in years) | 5 years | ||
Seven Years | Colorado Springs campus | |||
Operating Leases [Line Items] | |||
Initial lease term (in years) | 7 years | ||
15 Years | Colorado Springs campus | |||
Operating Leases [Line Items] | |||
Initial lease term (in years) | 15 years | ||
Minimum | |||
Operating Leases [Line Items] | |||
Renewal term (in years) | 1 year | ||
Maximum | |||
Operating Leases [Line Items] | |||
Renewal term (in years) | 10 years |
GEOGRAPHIC_INFORMATION_Schedul
GEOGRAPHIC INFORMATION - Schedule of Revenue and Long-Lived Assets by Region (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Long- Lived Assets | $14,653 | $17,574 | $14,653 | $17,574 | $21,456 | ||||||
Revenue | 147,798 | 142,063 | 135,106 | 128,128 | 127,968 | 145,869 | 131,479 | 147,849 | 553,095 | 553,165 | 587,439 |
Americas | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Long- Lived Assets | 14,063 | 16,759 | 14,063 | 16,759 | 20,182 | ||||||
Revenue | 340,811 | 359,259 | 378,514 | ||||||||
Europe | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Long- Lived Assets | 421 | 524 | 421 | 524 | 756 | ||||||
Revenue | 152,186 | 143,508 | 151,676 | ||||||||
Asia Pacific | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Long- Lived Assets | 169 | 291 | 169 | 291 | 518 | ||||||
Revenue | $60,098 | $50,398 | $57,249 |
GEOGRAPHIC_INFORMATION_Schedul1
GEOGRAPHIC INFORMATION - Schedule of Revenues Attributable to Product Groups, Services and Royalties (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Product revenue | $355,579 | $348,318 | $398,910 | ||||||||
Service revenue | 155,674 | 147,199 | 144,037 | ||||||||
Royalty revenue | 41,842 | 57,648 | 44,492 | ||||||||
Total revenue | 147,798 | 142,063 | 135,106 | 128,128 | 127,968 | 145,869 | 131,479 | 147,849 | 553,095 | 553,165 | 587,439 |
Tape automation systems | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Product revenue | 152,205 | 174,438 | 206,112 | ||||||||
Disk backup systems | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Product revenue | 54,845 | 50,217 | 74,255 | ||||||||
Devices and media | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Product revenue | 62,642 | 70,680 | 68,724 | ||||||||
Scale-out storage solutions | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Product revenue | $85,887 | $52,983 | $49,819 |
UNAUDITED_QUARTERLY_FINANCIAL_2
UNAUDITED QUARTERLY FINANCIAL DATA (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue | $147,798 | $142,063 | $135,106 | $128,128 | $127,968 | $145,869 | $131,479 | $147,849 | $553,095 | $553,165 | $587,439 |
Gross margin | 62,164 | 65,067 | 61,929 | 55,526 | 52,020 | 61,373 | 56,392 | 69,835 | 244,686 | 239,620 | 240,561 |
Net income (loss) | $12,905 | $6,931 | $1,248 | ($4,324) | ($14,404) | ($2,458) | ($7,893) | $3,281 | $16,760 | ($21,474) | ($52,179) |
Basic net income (loss) per share | $0.05 | $0.03 | $0 | ($0.02) | $0.07 | ($0.09) | ($0.22) | ||||
Diluted net income (loss) per share | $0.04 | $0.03 | $0 | ($0.02) | $0.06 | ($0.09) | ($0.22) | ||||
Basic and diluted net income (loss) per share | ($0.06) | ($0.01) | ($0.03) | $0.01 |
SCHEDULE_II_CONSOLIDATED_VALUA1
SCHEDULE II CONSOLIDATED VALUATION AND QUALIFYING ACCOUNTS (Details) (Allowance for doubtful accounts, USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
Allowance for doubtful accounts | ||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at beginning of period | $27 | $88 | $62 | $217 |
Net additions (releases) charged to expense | 40 | -39 | 3 | |
Deductions | -101 | 65 | -158 | |
Balance at end of period | $27 | $88 | $62 | $217 |