Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | May. 27, 2016 | Sep. 30, 2015 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | QUANTUM CORP /DE/ | ||
Entity Central Index Key | 709,283 | ||
Current Fiscal Year End Date | --03-31 | ||
Entity Filer Category | Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Mar. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 266,278,126 | ||
Trading Symbol | QTM | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 121.4 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2016 | Mar. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 33,870 | $ 67,948 |
Restricted cash | 2,788 | 2,621 |
Accounts receivable, net of allowance for doubtful accounts of $22 and $27, respectively | 105,959 | 124,159 |
Manufacturing inventories | 40,614 | 50,274 |
Service parts inventories | 21,407 | 24,640 |
Other current assets | 6,953 | 11,942 |
Total current assets | 211,591 | 281,584 |
Long-term assets: | ||
Property and equipment, less accumulated depreciation | 12,939 | 14,653 |
Intangible assets, less accumulated amortization | 451 | 731 |
Goodwill | 0 | 55,613 |
Other long-term assets | 4,565 | 4,577 |
Total long-term assets | 17,955 | 75,574 |
Total assets | 229,546 | 357,158 |
Current liabilities: | ||
Accounts payable | 46,136 | 54,367 |
Accrued warranty | 3,430 | 4,219 |
Deferred revenue, current | 88,919 | 95,899 |
Accrued restructuring charges, current | 1,621 | 3,855 |
Long-term debt, current | 3,000 | 0 |
Convertible subordinated debt, current, net of unamortized debt issuance costs of $390 at March 31, 2015 | 0 | 83,345 |
Accrued compensation | 22,744 | 35,414 |
Other accrued liabilities | 13,806 | 20,740 |
Total current liabilities | 179,656 | 297,839 |
Long-term liabilities: | ||
Deferred revenue, long-term | 35,427 | 39,532 |
Accrued restructuring charges, long-term | 1,116 | 991 |
Long-term debt | 62,709 | 0 |
Convertible subordinated debt, long-term net of unamortized debt issuance costs of $747 and $1,207, respectively | 69,253 | 68,793 |
Other long-term liabilities | 8,324 | 10,441 |
Total long-term liabilities | $ 176,829 | $ 119,757 |
Commitments and contingencies (Note 13) | ||
Preferred stock: | ||
Preferred stock, 20,000 shares authorized; no shares issued as of March 31, 2016 and 2015 | $ 0 | $ 0 |
Common stock: | ||
Common stock, $0.01 par value; 1,000,000 shares authorized; 266,209 and 258,208 shares issued and outstanding as of March 31, 2016 and 2015, respectively | 2,662 | 2,582 |
Capital in excess of par | 464,549 | 456,411 |
Accumulated deficit | (597,994) | (523,311) |
Accumulated other comprehensive income | 3,844 | 3,880 |
Stockholders’ deficit | (126,939) | (60,438) |
Total liabilities and stockholders' deficit | $ 229,546 | $ 357,158 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2016 | Mar. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 22 | $ 27 |
Unamortized debt issuance costs related to convertible subordinated debt, current | 0 | 390 |
Unamortized debt issuance costs related to convertible subordinated debt, long-term | $ 747 | $ 1,207 |
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 | 266,209,000 | 258,208,000 |
Common stock, shares outstanding | 266,209,000 | 258,208,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Income Statement [Abstract] | |||
Product revenue | $ 286,217 | $ 355,579 | $ 348,318 |
Service revenue | 148,548 | 155,674 | 147,199 |
Royalty revenue | 41,193 | 41,842 | 57,648 |
Total revenue | 475,958 | 553,095 | 553,165 |
Product cost of revenue | 206,859 | 237,679 | 237,076 |
Service cost of revenue | 64,347 | 70,730 | 75,930 |
Restructuring charges related to cost of revenue | 0 | 0 | 539 |
Total cost of revenue | 271,206 | 308,409 | 313,545 |
Gross margin | 204,752 | 244,686 | 239,620 |
Operating expenses: | |||
Research and development | 48,703 | 58,618 | 64,375 |
Sales and marketing | 108,735 | 113,954 | 118,771 |
General and administrative | 53,793 | 56,513 | 57,865 |
Restructuring charges | 4,006 | 1,666 | 10,675 |
Goodwill impairment | 55,613 | 0 | 0 |
Total operating expenses | 270,850 | 230,751 | 251,686 |
Gain on sale of assets | 0 | 462 | 267 |
Income (loss) from operations | (66,098) | 14,397 | (11,799) |
Other income and expense | (191) | 13,836 | 1,296 |
Interest expense | (6,817) | (9,460) | (9,754) |
Loss on debt extinguishment | (394) | (1,295) | 0 |
Income (loss) before income taxes | (73,500) | 17,478 | (20,257) |
Income tax provision | 1,183 | 718 | 1,217 |
Net income (loss) | $ (74,683) | $ 16,760 | $ (21,474) |
Basic net income (loss) per share | $ (0.28) | $ 0.07 | $ (0.09) |
Diluted net income (loss) per share | $ (0.28) | $ 0.06 | $ (0.09) |
Weighted average shares: | |||
Basic | 262,730 | 254,665 | 247,024 |
Diluted | 262,730 | 260,027 | 247,024 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ (74,683) | $ 16,760 | $ (21,474) |
Other comprehensive income (loss), net of taxes: | |||
Foreign currency translation adjustments | 21 | (3,490) | 679 |
Net unrealized gain (loss) on revaluation of long-term intercompany balances, net of taxes of $(15), $200 and $(67) , respectively | (57) | 750 | (251) |
Total other comprehensive income (loss) | (36) | (2,740) | 428 |
Total comprehensive income (loss) | $ (74,719) | $ 14,020 | $ (21,046) |
CONSOLIDATED STATEMENTS OF COM6
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Taxes on unrealized gain (loss) on revaluation of long-term intercompany balance | $ (15) | $ 200 | $ (67) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Cash flows from operating activities: | |||
Net income (loss) | $ (74,683) | $ 16,760 | $ (21,474) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Depreciation | 6,410 | 8,281 | 10,713 |
Amortization of intangible assets | 280 | 3,697 | 8,902 |
Amortization and write off of debt issuance costs | 1,062 | 1,896 | 1,634 |
Service parts lower of cost or market adjustment | 5,972 | 3,698 | 11,307 |
Deferred income taxes | (85) | (160) | 36 |
Share-based compensation | 8,916 | 11,583 | 13,459 |
Goodwill impairment | 55,613 | 0 | 0 |
Gain on sale of assets | 0 | (462) | 0 |
Gain on sale of other investments | 0 | (13,574) | 0 |
Changes in assets and liabilities, net of effect of acquisition: | |||
Accounts receivable | 18,200 | (22,554) | (4,770) |
Manufacturing inventories | 6,325 | (19,688) | 13,352 |
Service parts inventories | (780) | (1,010) | 2,675 |
Accounts payable | (8,180) | 12,849 | (5,881) |
Accrued warranty | (789) | (1,897) | (1,404) |
Deferred revenue | (11,085) | (2,721) | 8,651 |
Accrued restructuring charges | (2,109) | (3,548) | 3,619 |
Accrued compensation | (12,712) | 11,318 | (6,140) |
Other assets and liabilities | (4,075) | 1,566 | 795 |
Net cash provided by (used in) operating activities | (11,720) | 6,034 | 35,474 |
Cash flows from investing activities: | |||
Purchases of property and equipment | (3,482) | (3,241) | (5,957) |
Proceeds from sale of assets | 0 | 462 | 0 |
Change in restricted cash | (139) | (250) | 426 |
Purchases of other investments | 0 | (22) | (1,118) |
Return of principal from other investments | 0 | 112 | 0 |
Proceeds from sale of other investments | 0 | 15,097 | 0 |
Payment for business acquisition, net of cash acquired | 0 | (517) | 0 |
Net cash provided by (used in) investing activities | (3,621) | 11,641 | (6,649) |
Cash flows from financing activities: | |||
Borrowings of long-term debt, net | 68,920 | 0 | 0 |
Repayments of long-term debt | (3,211) | 0 | 0 |
Repayments of convertible subordinated debt | (83,735) | (50,000) | (1,265) |
Payment of taxes due upon vesting of restricted stock | (3,176) | (2,378) | (1,880) |
Proceeds from issuance of common stock | 2,478 | 3,737 | 4,430 |
Net cash provided by (used in) financing activities | (18,724) | (48,641) | 1,285 |
Effect of exchange rate changes on cash and cash equivalents | (13) | (211) | 39 |
Net increase (decrease) in cash and cash equivalents | (34,078) | (31,177) | 30,149 |
Cash and cash equivalents at beginning of period | 67,948 | 99,125 | 68,976 |
Cash and cash equivalents at end of period | 33,870 | 67,948 | 99,125 |
Supplemental disclosure of cash flow information: | |||
Proceeds from sale of other investments included in other assets | 0 | 1,564 | 0 |
Purchases of property and equipment included in accounts payable | 367 | 429 | 649 |
Cash paid during the year for: | |||
Interest | 6,873 | 8,498 | 8,247 |
Income taxes, net of refunds | $ 579 | $ 750 | $ 574 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Capital in Excess of Par Value | Accumulated Deficit | Accumulated Other Comprehensive Income |
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 | ||||
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 | |||
Net income (loss) | $ (74,683) | (74,683) | |||
Foreign currency translation adjustments | 21 | 21 | |||
Net unrealized gain (loss) on revaluation of long-term intercompany balance, net of tax | (57) | (57) | |||
Shares issued under employee stock purchase plan | 2,180 | $ 33 | 2,147 | ||
Shares issued under employee stock purchase plan, shares | 3,273 | ||||
Shares issued under employee stock incentive plans, net | (2,878) | $ 47 | (2,925) | ||
Shares issued under employee stock incentive plans, net, shares | 4,728 | ||||
Share-based compensation expense | 8,916 | 8,916 | |||
Balance at Mar. 31, 2016 | $ (126,939) | $ 2,662 | $ 464,549 | $ (597,994) | $ 3,844 |
Balance, shares at Mar. 31, 2016 | 266,209 | 266,209 |
CONSOLIDATED STATEMENTS OF STO9
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Statement of Stockholders' Equity [Abstract] | |||
Taxes on unrealized gain (loss) on revaluation of long-term intercompany balance | $ (15) | $ 200 | $ (67) |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 12 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION Quantum Corporation (“Quantum”, the “Company”, “us” or “we”), founded in 1980 and reincorporated in Delaware in 1987, is a leading expert in scale-out storage, archive and data protection, providing solutions for capturing, sharing, managing 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 data workflow challenges. Our end-to-end tiered storage solutions enable users to maximize the value of their data by making it accessible whenever and wherever needed, retaining it 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. In the Consolidated Balance Sheets, prior period convertible subordinated debt, current and long-term, have been presented net of debt issuance costs to conform to current period presentation. 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 ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Mar. 31, 2016 | |
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 when earned 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 multiple element arrangements, consideration is first allocated between software (consisting of nonessential and stand-alone software) and non-software deliverables on a relative fair value basis. 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, external market conditions and competitive positioning for similar offerings. For software deliverables, we allocate consideration 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, as the value of these support arrangements are the upgrades and enhancements to the software licenses themselves and there is no on-site support, 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 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 $10.6 million , $12.3 million and $13.6 million in fiscal 2016 , 2015 and 2014 , 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, 2016 , 2015 and 2014 was $9.2 million , $7.6 million and $8.4 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 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 $0.3 million loss in fiscal 2016 , a $0.2 million gain in fiscal 2015 and a $0.3 million gain in fiscal 2014 . 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 2016 , 2015 or 2014 . 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. 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 our stock price, 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. 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 in the current period 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 one to three 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. 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. 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, 2016 and 2015 , 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, 2016 2015 Money market funds $ 1,640 $ 34,278 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 2016 or fiscal 2015 except for a goodwill impairment in fiscal 2016, which is further described in Note 5 "Intangible Assets and Goodwill" to the Consolidated Financial Statements. 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 and long-term debt at March 31, 2016 and convertible subordinated debt at March 31, 2015 . The carrying value and fair value were as follows (in thousands): As of March 31, 2016 2015 Carrying Value Fair Value Carrying Value Fair Value Convertible subordinated debt (1) $ 69,253 $ 51,686 $ 152,138 $ 166,551 Long-term debt (2) $ 65,709 $ 65,741 $ — $ — (1) Fair value based on quoted market prices in less active markets (level 2). (2) Fair value based on outstanding borrowings and market interest rates (level 2) 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 28% of revenue in fiscal 2016 and 31% of revenue in fiscal 2015 and 2014 . We had no customers that comprised 10% or greater of revenue in fiscal 2016 , fiscal 2015 or fiscal 2014 . Recently Adopted Accounting Pronouncements 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 on 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. We early adopted ASU 2015-03 in the first quarter of fiscal 2016 and reclassified debt issuance costs from other current and long-term assets to convertible subordinated debt on the Consolidated Balance Sheets. Adoption did not otherwise impact our statements of financial position or results of operations. In August 2015, the FASB issued ASU No. 2015-15, Interest - Imputation of Interest (Topic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements ("ASU 2015-15"). ASU 2015-15 states that given the absence of authoritative guidance within ASU 2015-03, which does not address for debt issuance costs related to line-of-credit arrangements, the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred costs ratably over the term of the line-of-credit arrangement regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. We adopted ASU 2015-15 in the second quarter of fiscal 2016 and present debt issuance costs related to our line-of-credit arrangements as an asset. Adoption did not impact our statements of financial position or results of operations. In November 2015, the FASB issued ASU No. 2015-17, Income Taxes (Topic 740) Balance Sheet Classification of Deferred Taxes ("ASU 2015-17"). ASU 2015-17 requires that deferred tax liabilities and assets be classified as non-current in a classified statement of financial positions. We early adopted ASU 2015-17 in the fourth quarter of fiscal 2016 on a prospective basis and classified our net deferred tax asset as non-current on the Consolidated Balance Sheets. No prior periods were retrospectively adjusted. Adoption did not otherwise impact our statements of financial position or results of operations. Recent Accounting Pronouncements 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. 2015-05, Customer's Accounting for Fees Paid in a Cloud Computing Arrangement ("ASU 2015-05"). ASU 2015-05 requires that customers apply the same criteria as vendors to determine whether a cloud computing arrangement ("CCA") contains a software license or is solely a service contract. Under ASU 2015-05, fees paid by a customer in a CCA will be within the scope of internal-use software guidance if both of the following criteria are met: 1) the customer has the contractual right to take possession of the software at any time without significant penalty, and 2) it is feasible for the customer t |
ACQUISITION
ACQUISITION | 12 Months Ended |
Mar. 31, 2016 | |
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, 2016 | |
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, 2016 2015 Cash $ 35,018 $ 36,291 Money market funds 1,640 34,278 $ 36,658 $ 70,569 Manufacturing inventories consisted of (in thousands): As of March 31, 2016 2015 Finished goods $ 22,127 $ 28,022 Work in process 665 58 Materials and purchased parts 17,822 22,194 $ 40,614 $ 50,274 Service parts inventories consisted of (in thousands): As of March 31, 2016 2015 Finished goods $ 16,381 $ 18,143 Component parts 5,026 6,497 $ 21,407 $ 24,640 Property and equipment consisted of (in thousands): As of March 31, 2016 2015 Machinery and equipment $ 105,511 $ 122,339 Furniture and fixtures 4,316 5,816 Leasehold improvements 19,799 20,309 129,626 148,464 Less: accumulated depreciation (116,687 ) (133,811 ) $ 12,939 $ 14,653 |
INTANGIBLE ASSETS AND GOODWILL
INTANGIBLE ASSETS AND GOODWILL | 12 Months Ended |
Mar. 31, 2016 | |
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 6.3 Trademarks 6.0 Customer lists 8.2 All intangible assets 6.8 Intangible amortization within our Consolidated Statements of Operations for the years ended March 31, 2016 , 2015 and 2014 is provided in the table below (in thousands): For the year ended March 31, 2016 2015 2014 Purchased technology $ 280 $ 913 $ 1,476 Customer lists — 2,784 7,426 $ 280 $ 3,697 $ 8,902 The following table provides a summary of the carrying value of intangible assets (in thousands): As of March 31, 2016 2015 Gross Amount Accumulated Amortization Net Amount Gross Amount Accumulated Amortization Net Amount Purchased technology $ 178,292 $ (177,841 ) $ 451 $ 179,992 $ (179,261 ) $ 731 Trademarks 3,900 (3,900 ) — 3,900 (3,900 ) — Customer lists 64,701 (64,701 ) — 66,219 (66,219 ) — $ 246,893 $ (246,442 ) $ 451 $ 250,111 $ (249,380 ) $ 731 The total expected future amortization related to amortizable intangible assets is provided in the table below (in thousands): Amortization Fiscal 2017 $ 175 Fiscal 2018 138 Fiscal 2019 103 Fiscal 2020 35 Total as of March 31, 2016 $ 451 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 2016 , 2015 and 2014 . In fiscal 2016 and fiscal 2015 , we retired $3.2 million and $9.8 million , respectively, of fully amortized intangible assets related to prior acquisitions. Goodwill The following provides a summary of activity relating to the carrying value of goodwill (in thousands): Goodwill Accumulated Net Amount Balance as of March 31, 2015 and March 31, 2014 $ 394,613 $ (339,000 ) $ 55,613 Impairment charges — (55,613 ) (55,613 ) Balance as of March 31, 2016 $ 394,613 $ (394,613 ) $ — We evaluate goodwill for impairment annually during the fourth quarter of our fiscal year, or more frequently when indicators of impairment exist. 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. During the fourth quarter of fiscal 2016, our stock price dropped to a low closing price of $0.44 per share, down from $0.93 per share at December 31, 2015. As a result, during the fourth quarter of fiscal 2016 we determined it was more likely than not that the fair value of our goodwill is less than its carrying amount and performed a second step to quantify the amount of goodwill impairment. We determined the fair value of our single reporting unit using the income approach derived from a discounted cash flow methodology and other valuation techniques, as well as necessary estimates and assumptions about the future to determine fair value. We allocated the fair value of our single reporting unit to all tangible and intangible assets and liabilities in a hypothetical sale transaction to determine the implied fair value of our goodwill. After performing our analysis, we determined our goodwill was impaired and recorded an impairment charge of $55.6 million in fiscal 2016. Inherent in the development of our cash flow projections using the income approach are assumptions and estimates derived from a review of our operating results, approved business plans, expected growth, cost of capital and income tax rates. We also made certain assumptions about future economic conditions, applicable interest rates and other market data. Many of the factors used in assessing fair value are outside of our control. Future period results could differ from these estimates and assumptions, which could materially affect the determination of fair value of the company and future amounts of potential impairment. The following significant assumptions were used to determine fair value under the income approach: expected future revenue growth; operating profit margins; working capital levels; asset lives used to generate future cash flows; a discount rate; a terminal value multiple; an income tax rate; and utilization of net operating loss carryforwards. Our annual impairment evaluation for goodwill in the fourth quarters of fiscal 2015 and 2014 did not indicate any impairment of our goodwill in fiscal 2015 and 2014 . |
ACCRUED WARRANTY
ACCRUED WARRANTY | 12 Months Ended |
Mar. 31, 2016 | |
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, 2016 2015 Beginning balance $ 4,219 $ 6,116 Additional warranties issued 6,139 6,146 Adjustments for warranties issued in prior fiscal years 666 (185 ) Settlements (7,594 ) (7,858 ) Ending balance $ 3,430 $ 4,219 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, 2016 | |
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. 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 convertible subordinated debt, long-term in our Consolidated Balance Sheets as a direct deduction of the carrying amount of the 4.50% notes as of March 31, 2016 and 2015. 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 incurred and capitalized $5 million of loan fees in fiscal 2011 for the 3.50% notes which were included in convertible subordinated debt, short-term in our Consolidated Balance Sheets as a direct deduction of the carrying amount of the 3.50% notes as of March 31, 2015. These fees were 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. On October 5, 2015, we entered into a private transaction with a note holder to purchase $81.0 million of aggregate principal amount for $82.4 million , which included $1.1 million of accrued interest. In connection with this transaction, we recorded a loss on debt extinguishment of $0.4 million comprised of a loss of $0.3 million from the notes purchased and $0.1 million of unamortized debt issuance costs related to the purchased notes. We used a combination of $66.1 million of proceeds from our credit agreement with Wells Fargo and $16.3 million of cash to fund the purchase and pay the accrued interest. On November 15, 2015, we purchased the remaining $2.8 million of the 3.50% notes and funded this payment using proceeds from the credit agreement with Wells Fargo. Wells Fargo Credit Agreement On March 29, 2012, we refinanced a 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. On August 7, 2015, the WF credit agreement was amended to modify the maturity date, increase the amount of foreign accounts receivable and intellectual property assets included in our borrowing base and add an additional liquidity covenant. On April 15, 2016, the WF credit agreement was amended to modify the maturity date, increase the excess availability requirement over time and reduce the maximum amount of intellectual property assets that may be included in the borrowing base over time. 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, which matures August 10, 2017 . As of March 31, 2016 , we had a $65.7 million outstanding balance on the line of credit at a weighted average interest rate of 3.18% . In addition, we have letters of credit totaling $1.0 million , reducing the amount available to borrow to $8.3 million at March 31, 2016 . 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. 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 financial covenants and customary events of default for such securities, including cross-payment default and cross-acceleration to other material indebtedness for borrowed money which require notice from the trustee or holders of at least 25% of the notes and are subject to a cure period upon receipt of such notice. Average liquidity must exceed $15 million each month, and at all times we must maintain minimum liquidity of $10 million , at least $5 million of which must be excess availability under the WF revolving credit facility. The excess availability requirement increases by $1.5 million on June 1, 2016, and on the first day of each September, December, March and June occurring thereafter. 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. 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, liquidity and excess availability are each defined in the WF credit agreement and/or amendments thereto. 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, 2016 , and during fiscal 2016 , we were in compliance with all covenants. Debt Maturities A summary of the scheduled maturities for our outstanding debt as of March 31, 2016 follows (in thousands): Debt Maturity Fiscal 2017 $ 3,000 Fiscal 2018 132,709 Total as of March 31, 2016 $ 135,709 |
RESTRUCTURING CHARGES
RESTRUCTURING CHARGES | 12 Months Ended |
Mar. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING CHARGES | RESTRUCTURING CHARGES Fiscal 2016 Restructuring Plan In November 2015, we approved a plan ("Fiscal 2016 Restructuring Plan") to eliminate approximately 65 positions in the U.S. and internationally, primarily in research and development and sales and marketing functions, in order to improve our cost structure and align spending with continuing operations plans. The costs associated with these actions consist of restructuring charges related to severance and benefits. We incurred aggregate restructuring charges of approximately $2.0 million under this plan, of which $1.7 million was paid. The ending balance for accrued restructuring charges for the Fiscal 2016 Restructuring Plan is $0.3 million as of March 31, 2016, which is expected to be paid by the second quarter of fiscal 2017. The following summarizes the type of restructuring expense for fiscal 2016 , 2015 and 2014 (in thousands): For the year ended March 31, 2016 2015 2014 Restructuring expense related to cost of revenue $ — $ — $ 539 Restructuring expense in operating expense 4,006 1,666 10,675 $ 4,006 $ 1,666 $ 11,214 For the year ended March 31, 2016 2015 2014 Severance and benefits $ 2,293 $ 406 $ 6,139 Facilities 1,713 1,250 4,303 Other — 10 772 $ 4,006 $ 1,666 $ 11,214 Fiscal 2016 Restructuring charges in fiscal 2016 were largely due to $2.3 million of severance and benefits costs primarily from the Fiscal 2016 Restructuring Plan. Additionally, we incurred $ 1.7 million of restructuring charges related to facilities costs primarily due to a change in estimate of sublease timing for our facilities previously used in manufacturing. 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. The following tables show the activity and the estimated timing of future payouts for accrued restructuring (in thousands): Severance and benefits Facilities Other Total Balance as of March 31, 2013 $ 2,711 $ 2,045 $ — $ 4,756 Restructuring costs 7,522 4,392 772 12,686 Adjustments of prior estimates (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 Adjustments of prior estimates (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 Restructuring costs 2,266 656 — 2,922 Adjustments of prior estimates 27 1,057 — 1,084 Cash payments (2,128 ) (4,087 ) — (6,215 ) Other non-cash — 100 — 100 Balance as of March 31, 2016 $ 354 $ 2,383 $ — $ 2,737 Estimated timing of future payouts: Severance and benefits Facilities Total Fiscal 2017 $ 220 $ 1,401 $ 1,621 Fiscal 2018 to 2022 134 982 1,116 $ 354 $ 2,383 $ 2,737 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 SHARE
STOCK INCENTIVE PLANS AND SHARE-BASED COMPENSATION | 12 Months Ended |
Mar. 31, 2016 | |
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 39.3 million shares authorized at March 31, 2016 . There were 21.9 million shares available for grant and 15.2 million stock options and restricted shares that were outstanding under the Plan as of March 31, 2016 , 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, 2016 , 62.0 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 2.0 million shares to be purchased in any six month offering period. Employees purchased 3.3 million shares, 2.8 million shares and 3.2 million shares of common stock under the Purchase Plan in fiscal 2016 , 2015 and 2014 , respectively. The weighted-average price of stock purchased under the Purchase Plan was $0.67 , $1.04 and $1.07 in fiscal 2016 , 2015 and 2014 , respectively. There were 2.3 million shares available for issuance as of March 31, 2016 . 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 , 22 months and 34 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 is being recognized over the respective vesting periods of the awards. We granted 1.5 million , 2.4 million and 0.2 million of RSUs with performance conditions (“performance RSUs”) in fiscal 2016 , 2015 and 2014 , respectively, and the fair values of the performance RSUs at the grant date were $2.6 million , $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 $0.3 million and $0.4 million of share-based compensation expense were recognized during fiscal 2016 and 2015 , respectively. The performance RSUs granted in fiscal 2016 and 2014 were canceled in accordance with the grant agreement as the fiscal 2016 and 2014 targets were not met; and, therefore no share-based compensation expense was recognized. Stock Options No stock options were granted in fiscal 2016 , 2015 or 2014 . 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, 2016 2015 2014 Option life (in years) 0.5 0.5 0.5 Risk-free interest rate 0.26 % 0.07 % 0.07 % Stock price volatility 77.94 % 36.58 % 43.71 % Weighted-average grant date fair value $ 0.29 $ 0.36 $ 0.40 Share-Based Compensation Expense The following tables summarize share-based compensation expense (in thousands): For the year ended March 31, 2016 2015 2014 Share-based compensation expense: Cost of revenue $ 1,241 $ 1,489 $ 1,963 Research and development 1,864 2,559 3,430 Sales and marketing 2,907 3,506 4,097 General and administrative 2,904 4,029 3,969 Total share-based compensation expense $ 8,916 $ 11,583 $ 13,459 For the year ended March 31, 2016 2015 2014 Share-based compensation by type of award: Stock options $ 2 $ 617 $ 826 Restricted stock 8,220 10,102 11,356 Stock purchase plan 694 864 1,277 Total share-based compensation expense $ 8,916 $ 11,583 $ 13,459 The total share-based compensation cost capitalized as part of inventory as of March 31, 2016 and 2015 was not material. During fiscal 2016 , 2015 and 2014 , 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, 2016 , there was no unrecognized compensation cost related to stock options granted under our plans. Total intrinsic value of stock options exercised for the years ended March 31, 2016 , 2015 and 2014 was $0.3 million , $0.4 million and $0.4 million , respectively. We settle stock option exercises by issuing additional common shares. As of March 31, 2016 , there was $10.0 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 1.75 years. Total fair value of awards vested during the years ended March 31, 2016 , 2015 and 2014 was $9.9 million , $7.7 million and $6.2 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- Average Exercise Price Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding as of March 31, 2015 4,944 $ 1.47 Exercised (294 ) 1.01 Forfeited (323 ) 1.00 Expired (196 ) 1.69 Outstanding as of March 31, 2016 4,131 $ 1.52 0.84 $ 1,646 Vested and expected to vest at March 31, 2016 4,131 $ 1.52 0.84 $ 1,646 Exercisable as of March 31, 2016 4,131 $ 1.52 0.84 $ 1,646 The following table summarizes information about stock options outstanding and exercisable as of March 31, 2016 (stock options in thousands ): Range of Exercise Prices Stock Options Outstanding Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life (Years) Stock Options Exercisable Weighted- Average Exercise Price $0.63 — $0.92 40 $ 0.72 3.54 40 $ 0.72 $0.98 — $1.23 2,651 0.99 0.24 2,651 0.99 $1.85 — $2.59 1,419 2.52 1.91 1,419 2.52 $2.90 — $2.93 21 2.91 0.94 21 2.91 4,131 4,131 Expiration dates ranged from April 2016 to June 2021 for stock options outstanding at March 31, 2016 . Prices for stock options exercised during the three-year period ended March 31, 2016 , ranged from $0.11 to $1.81 . 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, 2015 13,791 $ 1.34 Granted 6,854 1.61 Vested (6,426 ) 1.43 Forfeited (3,110 ) 1.54 Nonvested as March 31, 2016 11,109 $ 1.39 |
401K PLAN
401K PLAN | 12 Months Ended |
Mar. 31, 2016 | |
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 $0.6 million , $2.4 million and $2.6 million in fiscal 2016 , 2015 and 2014 , respectively. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Mar. 31, 2016 | |
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, 2016 , 2015 and 2014 follows (in thousands): For the year ended March 31, 2016 2015 2014 U.S $ (77,245 ) $ 13,507 $ (22,549 ) Foreign 3,745 3,971 2,292 $ (73,500 ) $ 17,478 $ (20,257 ) Income tax provision consists of the following (in thousands): For the year ended March 31, 2016 2015 2014 Federal: $ (401 ) $ (138 ) $ — State: Current 52 125 76 Foreign: Current 1,591 890 1,096 Deferred (59 ) (159 ) 45 Total foreign 1,532 731 1,141 Income tax provision $ 1,183 $ 718 $ 1,217 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, 2016 2015 2014 Expense (benefit) at federal statutory rate $ (25,725 ) $ 6,117 $ (7,090 ) State taxes 53 125 76 Unbenefited (benefited) losses and credits 27,035 (4,727 ) 7,974 Contingent tax reserves 108 103 460 Foreign rate differential (347 ) (778 ) (218 ) Other 59 (122 ) 15 $ 1,183 $ 718 $ 1,217 Significant components of deferred tax assets and liabilities are as follows (in thousands): As of March 31, 2016 2015 Deferred tax assets: Inventory valuation method $ 2,025 $ 1,588 Accrued warranty expense 1,320 1,624 Distribution reserves 3,898 4,283 Loss carryforwards 108,022 75,262 Tax credits 132,061 185,578 Restructuring charge accruals 1,054 1,866 Other accruals and reserves not currently deductible for tax purposes 28,656 34,490 277,036 304,691 Less valuation allowance (224,138 ) (252,475 ) Deferred tax asset $ 52,898 $ 52,216 Deferred tax liabilities: Depreciation $ (3,962 ) $ (4,302 ) Acquired intangibles (8,244 ) (4,920 ) Tax on unremitted foreign earnings (16,549 ) (15,968 ) Other (23,123 ) (26,093 ) Deferred tax liability $ (51,878 ) $ (51,283 ) Net deferred tax asset $ 1,020 $ 933 The valuation allowance decreased $28.3 million , $8.9 million and $8.0 million in fiscal years 2016, 2015 and 2014, respectively. The decrease in the valuation allowance during fiscal year 2016 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, 2016 2015 2014 Beginning balance $ 32,449 $ 32,449 $ 32,549 Settlement and effective settlements with tax authorities and related remeasurements — — (488 ) Increase in balances related to tax positions taken in prior period 411 — 388 Ending balance $ 32,860 $ 32,449 $ 32,449 During fiscal 2016 , excluding interest and penalties, there was a $0.4 million change in our unrecognized tax benefits. Including interest and penalties, the total unrecognized tax benefit at March 31, 2016 was $34.1 million , all of which, if recognized, would favorably affect the effective tax rate. At March 31, 2016 , accrued interest and penalties totaled $1.2 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, 2016 , we had federal net operating loss and tax credit carryforwards of approximately $351.1 million and $90.4 million , respectively. Our federal net operating loss carryforwards include $34.3 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 2017 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, 2016 | |
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 had 3.50% convertible subordinated notes outstanding as of March 31, 2015 and 2014, which were 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 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, 2016 2015 2014 Numerator: Net income (loss) $ (74,683 ) $ 16,760 $ (21,474 ) Denominator: Weighted average shares: Basic 262,730 254,665 247,024 Dilutive shares from stock plans — 5,362 — Diluted 262,730 260,027 247,024 Basic net income (loss) per share $ (0.28 ) $ 0.07 $ (0.09 ) Diluted net income (loss) per share $ (0.28 ) $ 0.06 $ (0.09 ) 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 2016 , 2015 and 2014 , there were 10.0 million , 29.0 million and 31.1 million , respectively, of weighted average shares related to the 3.50% convertible subordinated notes that were excluded. For fiscal 2016 , 2015 and 2014 , $1.8 million , $5.3 million and $5.7 million , respectively, of related interest expense was excluded. • For fiscal 2016 , 2015 and 2014 , there were 42.5 million of weighted average shares and $3.6 million of related interest expense related to the 4.50% convertible subordinated notes that were excluded • Stock options to purchase 4.5 million , 2.4 million and 12.8 million weighted average shares in fiscal 2016 , 2015 and 2014 , respectively, were excluded. • Unvested restricted stock units of 12.1 million , less than 0.1 million , and 11.0 million weighted average shares for fiscal 2016 , 2015 and 2014 , respectively, were excluded. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Mar. 31, 2016 | |
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 $15.0 million of lease payments and $4.4 million of sublease rental income for this Colorado Springs campus. Rent expense was $6.6 million in fiscal 2016 , $7.0 million in fiscal 2015 and $10.3 million in fiscal 2014 . Sublease income was $0.1 million for fiscal 2016 and immaterial in fiscal 2015 and 2014 . 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, 2017 $ 8,564 $ (971 ) $ 7,593 2018 7,961 (966 ) 6,995 2019 7,163 (909 ) 6,254 2020 5,558 (943 ) 4,615 2021 4,937 (812 ) 4,125 Thereafter 2,156 — 2,156 $ 36,339 $ (4,601 ) $ 31,738 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, 2016 , we had issued non-cancelable commitments for $42.2 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. In July and September of 2014, we filed for inter partes review of all three asserted Crossroads patents before the Patent Trial and Appeal Board and a review has been initiated for all claims. On June 16, 2015, the U.S. District Court, Western District of Texas stayed the Crossroads trial proceedings pending resolution of the inter partes review proceedings. On January 29, 2016, the Patent Trial and Appeal Board issued decisions on the inter partes reviews for U.S. patents 6,425,035 and 7,051,147, ordering all claims of both patents to be unpatentable. On March 17, 2016, the Patent Trial and Appeal Board issued a decision on the inter partes review for U.S. patent 7,934,041, ordering all claims to be unpatentable. On March 31, 2016, Crossroads filed Notices of Appeal in each of the inter partes review decisions. We believe the probability that this lawsuit will have a material adverse effect on our business, operating results or financial condition is remote. 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, 2016 and 2015 , 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, 2016 | |
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, 2016 2015 2014 Long- Lived Assets Revenue Long- Lived Assets Revenue Long-Lived Assets Revenue Americas $ 12,657 $ 304,007 $ 14,063 $ 340,811 $ 16,759 $ 359,259 Europe 145 124,821 421 152,186 524 143,508 Asia Pacific 137 47,130 169 60,098 291 50,398 $ 12,939 $ 475,958 $ 14,653 $ 553,095 $ 17,574 $ 553,165 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, 2016 2015 2014 Tape automation systems $ 97,454 $ 152,205 $ 174,438 Disk backup systems 39,722 54,845 50,217 Devices and media 45,767 62,642 70,680 Scale-out storage solutions 103,274 85,887 52,983 Service 148,548 155,674 147,199 Royalty 41,193 41,842 57,648 Total revenue $ 475,958 $ 553,095 $ 553,165 |
UNAUDITED QUARTERLY FINANCIAL D
UNAUDITED QUARTERLY FINANCIAL DATA | 12 Months Ended |
Mar. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
UNAUDITED QUARTERLY FINANCIAL DATA | UNAUDITED QUARTERLY FINANCIAL DATA For the year ended March 31, 2016 (In thousands, except per share data) 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Revenue $ 110,856 $ 117,025 $ 128,048 $ 120,029 Gross margin 46,965 46,317 56,697 54,773 Net loss (10,755 ) (11,227 ) (299 ) (52,402 ) Basic and diluted net loss per share (0.04 ) (0.04 ) (0.00) (0.20 ) For the year ended March 31, 2015 1st Quarter 2nd Quarter 3rd Quarter 4th 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 ) 0.00 0.03 0.05 Diluted net income (loss) per share (0.02 ) 0.00 0.03 0.04 Net income for fiscal 2015 included a $13.6 million gain on the sale of our investment in a privately held company which was recorded in the fourth quarter of fiscal 2015. Net loss for fiscal 2016 included a $55.6 million goodwill impairment charge which was recorded in the fourth quarter of fiscal 2016. |
SCHEDULE II CONSOLIDATED VALUAT
SCHEDULE II CONSOLIDATED VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Mar. 31, 2016 | |
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 beginning of period Net additions (releases) charged to expense Recoveries(Deductions) (i) Balance at end of period For the year ended: March 31, 2016 $ 27 $ (78 ) $ 73 $ 22 March 31, 2015 88 40 (101 ) 27 March 31, 2014 62 (39 ) 65 88 ____________________ (i) Uncollectible accounts written off, net of recoveries. |
SUMMARY OF SIGNIFICANT ACCOUN26
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Mar. 31, 2016 | |
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 when earned 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 multiple element arrangements, consideration is first allocated between software (consisting of nonessential and stand-alone software) and non-software deliverables on a relative fair value basis. 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, external market conditions and competitive positioning for similar offerings. For software deliverables, we allocate consideration 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, as the value of these support arrangements are the upgrades and enhancements to the software licenses themselves and there is no on-site support, 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 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 $10.6 million , $12.3 million and $13.6 million in fiscal 2016 , 2015 and 2014 , 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 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 2016 , 2015 or 2014 . |
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. 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 our stock price, 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. 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 in the current period 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 one to three 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. 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. 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, 2016 and 2015 , 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, 2016 2015 Money market funds $ 1,640 $ 34,278 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 2016 or fiscal 2015 except for a goodwill impairment in fiscal 2016, which is further described in Note 5 "Intangible Assets and Goodwill" to the Consolidated Financial Statements. 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 and long-term debt at March 31, 2016 and convertible subordinated debt at March 31, 2015 . The carrying value and fair value were as follows (in thousands): As of March 31, 2016 2015 Carrying Value Fair Value Carrying Value Fair Value Convertible subordinated debt (1) $ 69,253 $ 51,686 $ 152,138 $ 166,551 Long-term debt (2) $ 65,709 $ 65,741 $ — $ — (1) Fair value based on quoted market prices in less active markets (level 2). (2) Fair value based on outstanding borrowings and market interest rates (level 2) |
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 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 on 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. We early adopted ASU 2015-03 in the first quarter of fiscal 2016 and reclassified debt issuance costs from other current and long-term assets to convertible subordinated debt on the Consolidated Balance Sheets. Adoption did not otherwise impact our statements of financial position or results of operations. In August 2015, the FASB issued ASU No. 2015-15, Interest - Imputation of Interest (Topic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements ("ASU 2015-15"). ASU 2015-15 states that given the absence of authoritative guidance within ASU 2015-03, which does not address for debt issuance costs related to line-of-credit arrangements, the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred costs ratably over the term of the line-of-credit arrangement regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. We adopted ASU 2015-15 in the second quarter of fiscal 2016 and present debt issuance costs related to our line-of-credit arrangements as an asset. Adoption did not impact our statements of financial position or results of operations. In November 2015, the FASB issued ASU No. 2015-17, Income Taxes (Topic 740) Balance Sheet Classification of Deferred Taxes ("ASU 2015-17"). ASU 2015-17 requires that deferred tax liabilities and assets be classified as non-current in a classified statement of financial positions. We early adopted ASU 2015-17 in the fourth quarter of fiscal 2016 on a prospective basis and classified our net deferred tax asset as non-current on the Consolidated Balance Sheets. No prior periods were retrospectively adjusted. Adoption did not otherwise impact our statements of financial position or results of operations. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements 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. 2015-05, Customer's Accounting for Fees Paid in a Cloud Computing Arrangement ("ASU 2015-05"). ASU 2015-05 requires that customers apply the same criteria as vendors to determine whether a cloud computing arrangement ("CCA") contains a software license or is solely a service contract. Under ASU 2015-05, fees paid by a customer in a CCA will be within the scope of internal-use software guidance if both of the following criteria are met: 1) the customer has the contractual right to take possession of the software at any time without significant penalty, and 2) it is feasible for the customer to run the software on its own hardware (or to contract with another party to host the software). ASU 2015-05 will be effective for us beginning April 1, 2016, or fiscal 2017. We do not anticipate adoption will impact our statements of financial position or results of operations. In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330) ("ASU 2015-11"). ASU 2015-11 requires that an entity measure all inventory at the lower of cost and net realizable value, except for inventory that is measured using last-in, first-out (LIFO) or the retail inventory method. ASU 2015-11 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 January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall (Topic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities ("ASU 2016-01"). ASU 2016-01 addresses certain aspects of recognition, measurement, presentation and disclosures of financial instruments. ASU 2016-01 will become effective for us beginning April 1, 2018, or fiscal 2019. 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 February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) ("ASU 2016-02"). ASU 2016-02 provides a new comprehensive model for lease accounting. Under ASU 2016-02, lessees and lessors should apply a "right-of-use" model in accounting for all leases and eliminate the concept of operating leases and off-balance sheet leases. ASU 2016-02 will become effective for us beginning April 1, 2019, or fiscal 2020. 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 March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting ("ASU 2016-09"). ASU 2016-09 simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. ASU 2016-09 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. The FASB issued the following accounting standard updates related to Topic 606: • ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”) in May 2014. 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 No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) ("ASU 2016-08") in March 2016. ASU 2016-08 does not change the core principle of revenue recognition in Topic 606 but clarifies the implementation guidance on principal versus agent considerations. • ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing ("ASU 2016-10") in April 2016. ASU 2016-10 does not change the core principle of revenue recognition in Topic 606 but clarifies the implementation guidance on identifying performance obligations and the licensing implementation guidance, while retaining the related principles for those areas. • ASU No. 2016-11, Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting (SEC Update) ("ASU 2016-11") in May 2016. ASU 2016-11 rescinds SEC paragraphs pursuant to two SEC Staff Announcements at the March 3, 2016 EITF meeting. The SEC Staff is rescinding SEC Staff Observer comments that are codified in Topic 605 and Topic 932, effective upon adoption of Topic 606. • ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients in May 2016. ASU 2016-12 does not change the core principle of revenue recognition in Topic 606 but clarifies the implementation guidance on a few narrow areas and adds some practical expedients to the guidance. These ASUs will become effective for us beginning April 1, 2018, or fiscal 2019. We are currently evaluating the guidance to determine the potential impact on our financial condition, results of operations, cash flows and financial statement disclosures. |
SUMMARY OF SIGNIFICANT ACCOUN27
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
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, 2016 2015 Money market funds $ 1,640 $ 34,278 |
Schedule of carrying value and fair value of financial liabilities | The carrying value and fair value were as follows (in thousands): As of March 31, 2016 2015 Carrying Value Fair Value Carrying Value Fair Value Convertible subordinated debt (1) $ 69,253 $ 51,686 $ 152,138 $ 166,551 Long-term debt (2) $ 65,709 $ 65,741 $ — $ — (1) Fair value based on quoted market prices in less active markets (level 2). (2) Fair value based on outstanding borrowings and market interest rates (level 2) |
BALANCE SHEET DETAILS (Tables)
BALANCE SHEET DETAILS (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
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, 2016 2015 Cash $ 35,018 $ 36,291 Money market funds 1,640 34,278 $ 36,658 $ 70,569 |
Schedule of manufacturing inventories | Manufacturing inventories consisted of (in thousands): As of March 31, 2016 2015 Finished goods $ 22,127 $ 28,022 Work in process 665 58 Materials and purchased parts 17,822 22,194 $ 40,614 $ 50,274 |
Schedule of service parts inventories | Service parts inventories consisted of (in thousands): As of March 31, 2016 2015 Finished goods $ 16,381 $ 18,143 Component parts 5,026 6,497 $ 21,407 $ 24,640 |
Schedule of property and equipment | Property and equipment consisted of (in thousands): As of March 31, 2016 2015 Machinery and equipment $ 105,511 $ 122,339 Furniture and fixtures 4,316 5,816 Leasehold improvements 19,799 20,309 129,626 148,464 Less: accumulated depreciation (116,687 ) (133,811 ) $ 12,939 $ 14,653 |
INTANGIBLE ASSETS AND GOODWILL
INTANGIBLE ASSETS AND GOODWILL (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
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 6.3 Trademarks 6.0 Customer lists 8.2 All intangible assets 6.8 |
Schedule of intangible amortization | Intangible amortization within our Consolidated Statements of Operations for the years ended March 31, 2016 , 2015 and 2014 is provided in the table below (in thousands): For the year ended March 31, 2016 2015 2014 Purchased technology $ 280 $ 913 $ 1,476 Customer lists — 2,784 7,426 $ 280 $ 3,697 $ 8,902 |
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, 2016 2015 Gross Amount Accumulated Amortization Net Amount Gross Amount Accumulated Amortization Net Amount Purchased technology $ 178,292 $ (177,841 ) $ 451 $ 179,992 $ (179,261 ) $ 731 Trademarks 3,900 (3,900 ) — 3,900 (3,900 ) — Customer lists 64,701 (64,701 ) — 66,219 (66,219 ) — $ 246,893 $ (246,442 ) $ 451 $ 250,111 $ (249,380 ) $ 731 |
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 2017 $ 175 Fiscal 2018 138 Fiscal 2019 103 Fiscal 2020 35 Total as of March 31, 2016 $ 451 |
Summary of carrying value of goodwill | The following provides a summary of activity relating to the carrying value of goodwill (in thousands): Goodwill Accumulated Net Amount Balance as of March 31, 2015 and March 31, 2014 $ 394,613 $ (339,000 ) $ 55,613 Impairment charges — (55,613 ) (55,613 ) Balance as of March 31, 2016 $ 394,613 $ (394,613 ) $ — |
ACCRUED WARRANTY (Tables)
ACCRUED WARRANTY (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
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, 2016 2015 Beginning balance $ 4,219 $ 6,116 Additional warranties issued 6,139 6,146 Adjustments for warranties issued in prior fiscal years 666 (185 ) Settlements (7,594 ) (7,858 ) Ending balance $ 3,430 $ 4,219 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Summary of scheduled maturities for outstanding debt | A summary of the scheduled maturities for our outstanding debt as of March 31, 2016 follows (in thousands): Debt Maturity Fiscal 2017 $ 3,000 Fiscal 2018 132,709 Total as of March 31, 2016 $ 135,709 |
RESTRUCTURING CHARGES (Tables)
RESTRUCTURING CHARGES (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Summary of types of restructuring expense | The following summarizes the type of restructuring expense for fiscal 2016 , 2015 and 2014 (in thousands): For the year ended March 31, 2016 2015 2014 Restructuring expense related to cost of revenue $ — $ — $ 539 Restructuring expense in operating expense 4,006 1,666 10,675 $ 4,006 $ 1,666 $ 11,214 For the year ended March 31, 2016 2015 2014 Severance and benefits $ 2,293 $ 406 $ 6,139 Facilities 1,713 1,250 4,303 Other — 10 772 $ 4,006 $ 1,666 $ 11,214 |
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 benefits Facilities Other Total Balance as of March 31, 2013 $ 2,711 $ 2,045 $ — $ 4,756 Restructuring costs 7,522 4,392 772 12,686 Adjustments of prior estimates (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 Adjustments of prior estimates (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 Restructuring costs 2,266 656 — 2,922 Adjustments of prior estimates 27 1,057 — 1,084 Cash payments (2,128 ) (4,087 ) — (6,215 ) Other non-cash — 100 — 100 Balance as of March 31, 2016 $ 354 $ 2,383 $ — $ 2,737 |
Schedule of estimated timing of future payouts | Estimated timing of future payouts: Severance and benefits Facilities Total Fiscal 2017 $ 220 $ 1,401 $ 1,621 Fiscal 2018 to 2022 134 982 1,116 $ 354 $ 2,383 $ 2,737 |
STOCK INCENTIVE PLANS AND SHA33
STOCK INCENTIVE PLANS AND SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
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, 2016 2015 2014 Option life (in years) 0.5 0.5 0.5 Risk-free interest rate 0.26 % 0.07 % 0.07 % Stock price volatility 77.94 % 36.58 % 43.71 % Weighted-average grant date fair value $ 0.29 $ 0.36 $ 0.40 |
Summary of share-based compensation expense | The following tables summarize share-based compensation expense (in thousands): For the year ended March 31, 2016 2015 2014 Share-based compensation expense: Cost of revenue $ 1,241 $ 1,489 $ 1,963 Research and development 1,864 2,559 3,430 Sales and marketing 2,907 3,506 4,097 General and administrative 2,904 4,029 3,969 Total share-based compensation expense $ 8,916 $ 11,583 $ 13,459 |
Schedule of share-based compensation by type of award | For the year ended March 31, 2016 2015 2014 Share-based compensation by type of award: Stock options $ 2 $ 617 $ 826 Restricted stock 8,220 10,102 11,356 Stock purchase plan 694 864 1,277 Total share-based compensation expense $ 8,916 $ 11,583 $ 13,459 |
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- Average Exercise Price Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding as of March 31, 2015 4,944 $ 1.47 Exercised (294 ) 1.01 Forfeited (323 ) 1.00 Expired (196 ) 1.69 Outstanding as of March 31, 2016 4,131 $ 1.52 0.84 $ 1,646 Vested and expected to vest at March 31, 2016 4,131 $ 1.52 0.84 $ 1,646 Exercisable as of March 31, 2016 4,131 $ 1.52 0.84 $ 1,646 |
Summary of information about stock options outstanding and exercisable | The following table summarizes information about stock options outstanding and exercisable as of March 31, 2016 (stock options in thousands ): Range of Exercise Prices Stock Options Outstanding Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life (Years) Stock Options Exercisable Weighted- Average Exercise Price $0.63 — $0.92 40 $ 0.72 3.54 40 $ 0.72 $0.98 — $1.23 2,651 0.99 0.24 2,651 0.99 $1.85 — $2.59 1,419 2.52 1.91 1,419 2.52 $2.90 — $2.93 21 2.91 0.94 21 2.91 4,131 4,131 |
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, 2015 13,791 $ 1.34 Granted 6,854 1.61 Vested (6,426 ) 1.43 Forfeited (3,110 ) 1.54 Nonvested as March 31, 2016 11,109 $ 1.39 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
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, 2016 , 2015 and 2014 follows (in thousands): For the year ended March 31, 2016 2015 2014 U.S $ (77,245 ) $ 13,507 $ (22,549 ) Foreign 3,745 3,971 2,292 $ (73,500 ) $ 17,478 $ (20,257 ) |
Schedule of income tax provision | Income tax provision consists of the following (in thousands): For the year ended March 31, 2016 2015 2014 Federal: $ (401 ) $ (138 ) $ — State: Current 52 125 76 Foreign: Current 1,591 890 1,096 Deferred (59 ) (159 ) 45 Total foreign 1,532 731 1,141 Income tax provision $ 1,183 $ 718 $ 1,217 |
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, 2016 2015 2014 Expense (benefit) at federal statutory rate $ (25,725 ) $ 6,117 $ (7,090 ) State taxes 53 125 76 Unbenefited (benefited) losses and credits 27,035 (4,727 ) 7,974 Contingent tax reserves 108 103 460 Foreign rate differential (347 ) (778 ) (218 ) Other 59 (122 ) 15 $ 1,183 $ 718 $ 1,217 |
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, 2016 2015 Deferred tax assets: Inventory valuation method $ 2,025 $ 1,588 Accrued warranty expense 1,320 1,624 Distribution reserves 3,898 4,283 Loss carryforwards 108,022 75,262 Tax credits 132,061 185,578 Restructuring charge accruals 1,054 1,866 Other accruals and reserves not currently deductible for tax purposes 28,656 34,490 277,036 304,691 Less valuation allowance (224,138 ) (252,475 ) Deferred tax asset $ 52,898 $ 52,216 Deferred tax liabilities: Depreciation $ (3,962 ) $ (4,302 ) Acquired intangibles (8,244 ) (4,920 ) Tax on unremitted foreign earnings (16,549 ) (15,968 ) Other (23,123 ) (26,093 ) Deferred tax liability $ (51,878 ) $ (51,283 ) Net deferred tax asset $ 1,020 $ 933 |
Reconciliation of gross unrecognized tax benefits | A reconciliation of the gross unrecognized tax benefits follows (in thousands): For the year ended March 31, 2016 2015 2014 Beginning balance $ 32,449 $ 32,449 $ 32,549 Settlement and effective settlements with tax authorities and related remeasurements — — (488 ) Increase in balances related to tax positions taken in prior period 411 — 388 Ending balance $ 32,860 $ 32,449 $ 32,449 |
NET INCOME (LOSS) PER SHARE (Ta
NET INCOME (LOSS) PER SHARE (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
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, 2016 2015 2014 Numerator: Net income (loss) $ (74,683 ) $ 16,760 $ (21,474 ) Denominator: Weighted average shares: Basic 262,730 254,665 247,024 Dilutive shares from stock plans — 5,362 — Diluted 262,730 260,027 247,024 Basic net income (loss) per share $ (0.28 ) $ 0.07 $ (0.09 ) Diluted net income (loss) per share $ (0.28 ) $ 0.06 $ (0.09 ) |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
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, 2017 $ 8,564 $ (971 ) $ 7,593 2018 7,961 (966 ) 6,995 2019 7,163 (909 ) 6,254 2020 5,558 (943 ) 4,615 2021 4,937 (812 ) 4,125 Thereafter 2,156 — 2,156 $ 36,339 $ (4,601 ) $ 31,738 |
GEOGRAPHIC INFORMATION (Tables)
GEOGRAPHIC INFORMATION (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
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, 2016 2015 2014 Long- Lived Assets Revenue Long- Lived Assets Revenue Long-Lived Assets Revenue Americas $ 12,657 $ 304,007 $ 14,063 $ 340,811 $ 16,759 $ 359,259 Europe 145 124,821 421 152,186 524 143,508 Asia Pacific 137 47,130 169 60,098 291 50,398 $ 12,939 $ 475,958 $ 14,653 $ 553,095 $ 17,574 $ 553,165 |
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, 2016 2015 2014 Tape automation systems $ 97,454 $ 152,205 $ 174,438 Disk backup systems 39,722 54,845 50,217 Devices and media 45,767 62,642 70,680 Scale-out storage solutions 103,274 85,887 52,983 Service 148,548 155,674 147,199 Royalty 41,193 41,842 57,648 Total revenue $ 475,958 $ 553,095 $ 553,165 |
UNAUDITED QUARTERLY FINANCIAL38
UNAUDITED QUARTERLY FINANCIAL DATA (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | For the year ended March 31, 2016 (In thousands, except per share data) 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Revenue $ 110,856 $ 117,025 $ 128,048 $ 120,029 Gross margin 46,965 46,317 56,697 54,773 Net loss (10,755 ) (11,227 ) (299 ) (52,402 ) Basic and diluted net loss per share (0.04 ) (0.04 ) (0.00) (0.20 ) For the year ended March 31, 2015 1st Quarter 2nd Quarter 3rd Quarter 4th 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 ) 0.00 0.03 0.05 Diluted net income (loss) per share (0.02 ) 0.00 0.03 0.04 |
SUMMARY OF SIGNIFICANT ACCOUN39
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) - USD ($) | 12 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2000 | |
Accounting Policies [Abstract] | ||||
Shipping and handling fees | $ 10,600,000 | $ 12,300,000 | $ 13,600,000 | |
Advertising expense | 9,200,000 | 7,600,000 | 8,400,000 | |
Foreign currency gain (loss) recorded in other income and expense | (300,000) | 200,000 | 300,000 | |
Gain on sale of other investments | 0 | 13,574,000 | $ 0 | |
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 ACCOUN40
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Share-Based Compensation (Details) | 12 Months Ended | |
Mar. 31, 2016 | 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 ACCOUN41
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Property and Equipment Useful Lives (Details) | 12 Months Ended |
Mar. 31, 2016 | |
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 |
Maximum | Machinery and equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
Maximum | Computer equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
Minimum | Machinery and equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Minimum | Computer equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
SUMMARY OF SIGNIFICANT ACCOUN42
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Assets Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Mar. 31, 2015 |
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 | $ 1,640 | $ 34,278 |
SUMMARY OF SIGNIFICANT ACCOUN43
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Carrying Value and Fair Value of Financial Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Mar. 31, 2015 |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Carrying Value | $ 135,709 | |
Convertible subordinated debt | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Carrying Value | 69,253 | $ 152,138 |
Long-term debt | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Carrying Value | 65,709 | 0 |
Level 2 fair value measurement | Convertible subordinated debt | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Fair Value | 51,686 | 166,551 |
Level 2 fair value measurement | Long-term debt | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Fair Value | $ 65,741 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUN44
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Concentration of Credit Risk (Details) | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Sales | Customer concentration risk | Top five customers | |||
Concentration Risk [Line Items] | |||
Percentage of revenue | 28.00% | 31.00% | 31.00% |
ACQUISITION (Details)
ACQUISITION (Details) - USD ($) $ in Thousands | Jul. 29, 2014 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 |
Business Combinations [Abstract] | ||||
Payment for business acquisition, net of cash acquired | $ 500 | $ 0 | $ 517 | $ 0 |
BALANCE SHEET DETAILS - Schedul
BALANCE SHEET DETAILS - Schedule of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Mar. 31, 2015 |
Balance Sheet Related Disclosures [Abstract] | ||
Cash | $ 35,018 | $ 36,291 |
Money market funds | 1,640 | 34,278 |
Cash, cash equivalents, and restricted cash | $ 36,658 | $ 70,569 |
BALANCE SHEET DETAILS - Sched47
BALANCE SHEET DETAILS - Schedule of Manufacturing Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Mar. 31, 2015 |
Balance Sheet Related Disclosures [Abstract] | ||
Finished goods | $ 22,127 | $ 28,022 |
Work in process | 665 | 58 |
Materials and purchased parts | 17,822 | 22,194 |
Manufacturing inventories, net | $ 40,614 | $ 50,274 |
BALANCE SHEET DETAILS - Sched48
BALANCE SHEET DETAILS - Schedule of Service Parts Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Mar. 31, 2015 |
Balance Sheet Related Disclosures [Abstract] | ||
Finished goods | $ 16,381 | $ 18,143 |
Component parts | 5,026 | 6,497 |
Service parts inventories, net | $ 21,407 | $ 24,640 |
BALANCE SHEET DETAILS - Sched49
BALANCE SHEET DETAILS - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 129,626 | $ 148,464 | |
Less: accumulated depreciation | (116,687) | (133,811) | |
Property and equipment, net | 12,939 | 14,653 | $ 17,574 |
Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 105,511 | 122,339 | |
Furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 4,316 | 5,816 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 19,799 | $ 20,309 |
INTANGIBLE ASSETS AND GOODWIL50
INTANGIBLE ASSETS AND GOODWILL - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Estimated useful life (in years) | 6 years 9 months | ||||
Write off of fully amortized intangible assets | $ 3,200 | $ 9,800 | |||
Share price | $ 0.44 | $ 0.44 | $ 0.93 | ||
Goodwill impairment | $ 55,613 | $ 55,613 | $ 0 | $ 0 | |
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 GOODWIL51
INTANGIBLE ASSETS AND GOODWILL - Schedule of Weighted Average Amortization Period (Details) | 12 Months Ended |
Mar. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted average amortization period | 6 years 9 months |
Purchased technology | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted average amortization period | 6 years 3 months |
Trademarks | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted average amortization period | 6 years |
Customer lists | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted average amortization period | 8 years 2 months 30 days |
INTANGIBLE ASSETS AND GOODWIL52
INTANGIBLE ASSETS AND GOODWILL - Schedule of Intangible Amortization (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Finite-Lived Intangible Assets [Line Items] | |||
Intangible amortization | $ 280 | $ 3,697 | $ 8,902 |
Purchased technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible amortization | 280 | 913 | 1,476 |
Customer lists | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible amortization | $ 0 | $ 2,784 | $ 7,426 |
INTANGIBLE ASSETS AND GOODWIL53
INTANGIBLE ASSETS AND GOODWILL - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Mar. 31, 2015 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | $ 246,893 | $ 250,111 |
Accumulated Amortization | (246,442) | (249,380) |
Net Amount | 451 | 731 |
Purchased technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 178,292 | 179,992 |
Accumulated Amortization | (177,841) | (179,261) |
Net Amount | 451 | 731 |
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 | 64,701 | 66,219 |
Accumulated Amortization | (64,701) | (66,219) |
Net Amount | $ 0 | $ 0 |
INTANGIBLE ASSETS AND GOODWIL54
INTANGIBLE ASSETS AND GOODWILL - Schedule of Estimated Future Amortization (Details) $ in Thousands | Mar. 31, 2016USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Fiscal 2,017 | $ 175 |
Fiscal 2,018 | 138 |
Fiscal 2,019 | 103 |
Fiscal 2,020 | 35 |
Total as of March 31, 2016 | $ 451 |
INTANGIBLE ASSETS AND GOODWIL55
INTANGIBLE ASSETS AND GOODWILL - Schedule of Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Goodwill [Roll Forward] | ||||
Goodwill | $ 394,613 | |||
Accumulated Impairment Losses | (339,000) | |||
Net Amount | 55,613 | $ 55,613 | ||
Impairment charges | $ (55,613) | (55,613) | 0 | $ 0 |
Goodwill | 394,613 | 394,613 | 394,613 | |
Accumulated Impairment Losses | (394,613) | (394,613) | (339,000) | |
Net Amount | $ 0 | $ 0 | $ 55,613 | $ 55,613 |
ACCRUED WARRANTY - Schedule of
ACCRUED WARRANTY - Schedule of Changes in Accrued Warranty (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Beginning balance | $ 4,219 | $ 6,116 |
Additional warranties issued | 6,139 | 6,146 |
Adjustments for warranties issued in prior fiscal years | 666 | (185) |
Settlements | (7,594) | (7,858) |
Ending balance | $ 3,430 | $ 4,219 |
ACCRUED WARRANTY - Narrative (D
ACCRUED WARRANTY - Narrative (Details) | 12 Months Ended |
Mar. 31, 2016 | |
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) | Apr. 15, 2016USD ($) | Oct. 05, 2015USD ($) | Nov. 06, 2012USD ($) | Oct. 31, 2012USD ($)$ / shares | Mar. 31, 2016USD ($)$ / shares | Mar. 31, 2015USD ($)$ / shares | Mar. 31, 2014USD ($)$ / shares | Nov. 15, 2015USD ($) | Jan. 28, 2015USD ($) | Apr. 24, 2014USD ($) | Mar. 11, 2014USD ($) | Mar. 29, 2012USD ($) | Mar. 31, 2011USD ($) | Nov. 15, 2010USD ($)$ / shares |
Debt Instrument [Line Items] | ||||||||||||||
Loss on debt extinguishment | $ 394,000 | $ 1,295,000 | $ 0 | |||||||||||
Borrowings of long-term debt, net | 68,920,000 | 0 | 0 | |||||||||||
Net Cash Provided by (Used in) Financing Activities | (18,724,000) | (48,641,000) | 1,285,000 | |||||||||||
Accrued interest paid | 6,873,000 | 8,498,000 | $ 8,247,000 | |||||||||||
Long-term debt | 62,709,000 | 0 | ||||||||||||
4.50% Convertible Subordinated Debt | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Interest rate per annum on the principal amount (as a percent) | 4.50% | |||||||||||||
Debt issuance fees | $ 2,300,000 | $ 2,300,000 | ||||||||||||
Principal amount outstanding | $ 60,000,000 | |||||||||||||
Debt due date | Nov. 15, 2017 | |||||||||||||
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) | $ / shares | $ 1.65 | $ 1.65 | $ 1.65 | $ 1.65 | ||||||||||
Latest date that investors may convert notes into common stock | Nov. 14, 2017 | |||||||||||||
Repurchased principal amount | $ 81,000,000 | $ 2,800,000 | ||||||||||||
Repurchase amount | 82,400,000 | |||||||||||||
3.50% Convertible Subordinated Debt | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Interest rate per annum on the principal amount (as a percent) | 3.50% | 3.50% | ||||||||||||
Debt issuance fees | $ 5,000,000 | |||||||||||||
Principal amount outstanding | $ 135,000,000 | |||||||||||||
Debt due date | Nov. 15, 2015 | |||||||||||||
Conversion price (usd per share) | $ / shares | $ 4.33 | $ 4.33 | $ 4.33 | $ 4.33 | ||||||||||
Repurchased principal amount | $ 50,000,000 | $ 1,300,000 | ||||||||||||
Repurchase amount | $ 51,000,000 | $ 1,300,000 | ||||||||||||
Interest Payable | 1,100,000 | |||||||||||||
Loss on debt extinguishment | 400,000 | $ 1,300,000 | ||||||||||||
Loss from notes purchased | 300,000 | 1,000,000 | ||||||||||||
Write-off of unamortized debt issuance costs | 100,000 | 300,000 | ||||||||||||
Accrued interest paid | $ 400,000 | |||||||||||||
Wells Fargo Credit Agreement | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Capitalized debt issuance costs | $ 1,000,000 | |||||||||||||
Borrowings of long-term debt, net | 66,100,000 | |||||||||||||
Net Cash Provided by (Used in) Financing Activities | $ 16,300,000 | |||||||||||||
Fixed charge coverage ratio | 1.5 | |||||||||||||
Amount of liquidity to be below for covenant to be applicable | $ 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 | |||||||||||||
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] | ||||||||||||||
Amount of liquidity to be below for covenant to be applicable | $ 15,000,000 | |||||||||||||
Line of credit minimum liquidity at all times when covenant is applied | 10,000,000 | |||||||||||||
Minimum Excess Availability | 5,000,000 | |||||||||||||
Maximum borrowing capacity | $ 8,300,000 | |||||||||||||
Weighted average interest rate | 3.18% | |||||||||||||
Outstanding letters of credit | $ 1,000,000 | |||||||||||||
Line of credit facility, percent commitment fee on undrawn amounts | 0.375% | |||||||||||||
Long-term debt | $ 65,700,000 | |||||||||||||
Debt instrument minimum percent of debt holders requested to give written notice of default | 25.00% | |||||||||||||
Increase in amount of excess availability requirement | $ 1,500,000 | |||||||||||||
Subsequent event | 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 | Aug. 10, 2017 |
DEBT - Schedule of Debt Maturit
DEBT - Schedule of Debt Maturities (Details) $ in Thousands | Mar. 31, 2016USD ($) |
Debt Maturity | |
Fiscal 2,017 | $ 3,000 |
Fiscal 2,018 | 132,709 |
Total | $ 135,709 |
RESTRUCTURING CHARGES - Narrati
RESTRUCTURING CHARGES - Narrative (Details) $ in Thousands | 12 Months Ended | |||
Mar. 31, 2016USD ($)employee | Mar. 31, 2015USD ($) | Mar. 31, 2014USD ($) | Mar. 31, 2013USD ($) | |
Restructuring costs | $ 2,922 | $ 2,442 | $ 12,686 | |
Payments for Restructuring | 6,215 | 5,488 | 8,585 | |
Restructuring Reserve | 2,737 | 4,846 | 8,368 | $ 4,756 |
Severance and benefits | 2,293 | 406 | 6,139 | |
Facilities | 1,713 | 1,250 | 4,303 | |
Other | $ 0 | $ 10 | $ 772 | |
Fiscal 2016 Plan | ||||
Number of positions eliminated | employee | 65 | |||
Restructuring costs | $ 2,000 | |||
Payments for Restructuring | 1,700 | |||
Restructuring Reserve | $ 300 |
RESTRUCTURING CHARGES - Schedul
RESTRUCTURING CHARGES - Schedule of Restructuring Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expense | $ 4,006 | $ 1,666 | $ 11,214 |
Restructuring Charges [Abstract] | |||
Severance and benefits | 2,293 | 406 | 6,139 |
Facilities | 1,713 | 1,250 | 4,303 |
Other | 0 | 10 | 772 |
Restructuring expense | 4,006 | 1,666 | 11,214 |
Cost of revenue | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expense | 0 | 0 | 539 |
Restructuring Charges [Abstract] | |||
Restructuring expense | 0 | 0 | 539 |
Operating expense | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expense | 4,006 | 1,666 | 10,675 |
Restructuring Charges [Abstract] | |||
Restructuring expense | $ 4,006 | $ 1,666 | $ 10,675 |
RESTRUCTURING CHARGES - Sched62
RESTRUCTURING CHARGES - Schedule of Restructuring Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Restructuring Reserve [Roll Forward] | |||
Beginning balance | $ 4,846 | $ 8,368 | $ 4,756 |
Restructuring costs | 2,922 | 2,442 | 12,686 |
Adjustments of prior estimates | 1,084 | (776) | (1,472) |
Cash payments | (6,215) | (5,488) | (8,585) |
Other non-cash | 100 | 300 | 983 |
Ending balance | 2,737 | 4,846 | 8,368 |
Severance and benefits | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 189 | 1,574 | 2,711 |
Restructuring costs | 2,266 | 749 | 7,522 |
Adjustments of prior estimates | 27 | (343) | (1,383) |
Cash payments | (2,128) | (1,791) | (7,276) |
Other non-cash | 0 | 0 | 0 |
Ending balance | 354 | 189 | 1,574 |
Facilities | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 4,657 | 6,724 | 2,045 |
Restructuring costs | 656 | 1,680 | 4,392 |
Adjustments of prior estimates | 1,057 | (430) | (89) |
Cash payments | (4,087) | (3,617) | (607) |
Other non-cash | 100 | 300 | 983 |
Ending balance | 2,383 | 4,657 | 6,724 |
Other | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 0 | 70 | 0 |
Restructuring costs | 0 | 13 | 772 |
Adjustments of prior estimates | 0 | (3) | 0 |
Cash payments | 0 | (80) | (702) |
Other non-cash | 0 | 0 | 0 |
Ending balance | $ 0 | $ 0 | $ 70 |
RESTRUCTURING CHARGES - Sched63
RESTRUCTURING CHARGES - Schedule of Estimated Timing of Future Payouts (Details) $ in Thousands | 12 Months Ended |
Mar. 31, 2016USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Estimated timing of future payouts | $ 2,737 |
Fiscal 2,017 | |
Restructuring Cost and Reserve [Line Items] | |
Estimated timing of future payouts | 1,621 |
Fiscal 2018 to 2022 | |
Restructuring Cost and Reserve [Line Items] | |
Estimated timing of future payouts | 1,116 |
Severance and benefits | |
Restructuring Cost and Reserve [Line Items] | |
Estimated timing of future payouts | 354 |
Severance and benefits | Fiscal 2017 | |
Restructuring Cost and Reserve [Line Items] | |
Estimated timing of future payouts | 220 |
Severance and benefits | Fiscal 2018 to 2022 | |
Restructuring Cost and Reserve [Line Items] | |
Estimated timing of future payouts | 134 |
Facilities | |
Restructuring Cost and Reserve [Line Items] | |
Estimated timing of future payouts | 2,383 |
Facilities | Fiscal 2017 | |
Restructuring Cost and Reserve [Line Items] | |
Estimated timing of future payouts | 1,401 |
Facilities | Fiscal 2018 to 2022 | |
Restructuring Cost and Reserve [Line Items] | |
Estimated timing of future payouts | $ 982 |
STOCK INCENTIVE PLANS AND SHA64
STOCK INCENTIVE PLANS AND SHARE-BASED COMPENSATION - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares granted, stock awards | 6,854,000 | ||
Share-based compensation expense | $ 8,916 | $ 11,583 | $ 13,459 |
Restricted stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost | 10,000 | ||
Weighted-average period for recognition | 1 year 9 months | ||
Fair value of awards released | $ 9,900 | $ 7,700 | 6,200 |
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Pricing model used in estimating grant-date fair value | Black-Scholes | ||
Total intrinsic value of options exercised | $ 300 | $ 400 | $ 400 |
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 | $ 1.81 | ||
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 shares granted, stock awards | 800,000 | ||
Number of days over average stock price is calculated | 60 days | ||
Expected volatility rate | 66.00% | ||
Risk free interest rate | 0.50% | ||
Fair value at the grant date | $ 700 | ||
Performance RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares granted, stock awards | 1,500,000 | 2,400,000 | 200,000 |
Fair value at the grant date | $ 2,600 | $ 3,000 | $ 200 |
Share-based compensation expense | $ 300 | $ 400 | |
2012 Long-Term Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total shares authorized | 39,300,000 | ||
Shares available for grant | 21,900,000 | ||
Stock options and restricted shares outstanding | 15,200,000 | ||
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 | Restricted stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 1 year | ||
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 | 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 | ||
Shares available for grant | 2,300,000 | ||
Discount on market price to purchase stock | 15.00% | ||
Shares issued | 62,000,000 | ||
Maximum amount of shares to be purchased in any offering period | 2,000,000 | ||
Duration of offering periods | 6 months | ||
Number of shares purchased | 3,300,000 | 2,800,000 | 3,200,000 |
Weighted-average price of stock purchased | $ 0.67 | $ 1.04 | $ 1.07 |
Expected volatility rate | 77.94% | 36.58% | 43.71% |
Risk free interest rate | 0.26% | 0.07% | 0.07% |
Expected term | 6 months | 6 months | 6 months |
STOCK INCENTIVE PLANS AND SHA65
STOCK INCENTIVE PLANS AND SHARE-BASED COMPENSATION - Schedule of Assumptions Used to Valuing Stock Purchase Plan (Details) - Stock purchase plan - $ / shares | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
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 | 0.26% | 0.07% | 0.07% |
Stock price volatility | 77.94% | 36.58% | 43.71% |
Weighted-average grant date fair value (usd per share) | $ 0.29 | $ 0.36 | $ 0.40 |
STOCK INCENTIVE PLANS AND SHA66
STOCK INCENTIVE PLANS AND SHARE-BASED COMPENSATION - Schedule of Share-based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Share-based compensation expense: | |||
Total share-based compensation expense | $ 8,916 | $ 11,583 | $ 13,459 |
Cost of revenue | |||
Share-based compensation expense: | |||
Total share-based compensation expense | 1,241 | 1,489 | 1,963 |
Research and development | |||
Share-based compensation expense: | |||
Total share-based compensation expense | 1,864 | 2,559 | 3,430 |
Sales and marketing | |||
Share-based compensation expense: | |||
Total share-based compensation expense | 2,907 | 3,506 | 4,097 |
General and administrative | |||
Share-based compensation expense: | |||
Total share-based compensation expense | $ 2,904 | $ 4,029 | $ 3,969 |
STOCK INCENTIVE PLANS AND SHA67
STOCK INCENTIVE PLANS AND SHARE-BASED COMPENSATION - Schedule of Share-based Compensation by Type of Award (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Share-based compensation by type of award: | |||
Total share-based compensation expense | $ 8,916 | $ 11,583 | $ 13,459 |
Stock purchase plan | |||
Share-based compensation by type of award: | |||
Total share-based compensation expense | 694 | 864 | 1,277 |
Stock options | |||
Share-based compensation by type of award: | |||
Total share-based compensation expense | 2 | 617 | 826 |
Restricted stock | |||
Share-based compensation by type of award: | |||
Total share-based compensation expense | $ 8,220 | $ 10,102 | $ 11,356 |
STOCK INCENTIVE PLANS AND SHA68
STOCK INCENTIVE PLANS AND SHARE-BASED COMPENSATION - Schedule of Stock Option Activity (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Mar. 31, 2016USD ($)$ / sharesshares | |
Stock Options | |
Outstanding, beginning balance | 4,944 |
Exercised | (294) |
Forfeited | (323) |
Expired | (196) |
Outstanding, ending balance | 4,131 |
Stock Options, vested and expected to vest | 4,131 |
Stock Options, exercisable | 4,131 |
Weighted- Average Exercise Price | |
Outstanding, beginning balance | $ / shares | $ 1.47 |
Exercised | $ / shares | 1.01 |
Forfeited | $ / shares | 1 |
Expired | $ / shares | 1.69 |
Weighted-Average Exercise Price, vested and expected to vest | $ / shares | 1.52 |
Weighted-Average Exercise Price, exercisable | $ / shares | $ 1.52 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest [Abstract] | |
Weighted-Average Remaining Contractual Term, outstanding | 10 months 2 days |
Weighted-Average Remaining Contractual Term, vested and expected to vest | 10 months 2 days |
Weighted-Average Remaining Contractual Term, exercisable | 10 months 2 days |
Aggregate Intrinsic Value | |
Aggregate Intrinsic Value, outstanding | $ | $ 1,646 |
Aggregate Intrinsic Value, vested and expected to vest | $ | 1,646 |
Aggregate Intrinsic Value, exercisable | $ | $ 1,646 |
STOCK INCENTIVE PLANS AND SHA69
STOCK INCENTIVE PLANS AND SHARE-BASED COMPENSATION - Schedule of Options Outstanding and Exercisable, by Exercise Price Range (Details) - $ / shares shares in Thousands | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Stock Options Outstanding | 4,131 | 4,944 |
Weighted- Average Exercise Price | $ 1.52 | $ 1.47 |
Weighted- Average Remaining Contractual Life (Years) | 10 months 2 days | |
Stock Options Exercisable | 4,131 | |
Weighted- Average Exercise Price | $ 1.52 | |
Exercise Price Range 1 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Range of Exercise Prices, Minimum | 0.63 | |
Range of Exercise Prices, Maximum | $ 0.92 | |
Stock Options Outstanding | 40 | |
Weighted- Average Exercise Price | $ 0.72 | |
Weighted- Average Remaining Contractual Life (Years) | 3 years 6 months 14 days | |
Stock Options Exercisable | 40 | |
Weighted- Average Exercise Price | $ 0.72 | |
Exercise Price Range 2 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Range of Exercise Prices, Minimum | 0.98 | |
Range of Exercise Prices, Maximum | $ 1.23 | |
Stock Options Outstanding | 2,651 | |
Weighted- Average Exercise Price | $ 0.99 | |
Weighted- Average Remaining Contractual Life (Years) | 2 months 25 days | |
Stock Options Exercisable | 2,651 | |
Weighted- Average Exercise Price | $ 0.99 | |
Exercise Price Range 3 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Range of Exercise Prices, Minimum | 1.85 | |
Range of Exercise Prices, Maximum | $ 2.59 | |
Stock Options Outstanding | 1,419 | |
Weighted- Average Exercise Price | $ 2.52 | |
Weighted- Average Remaining Contractual Life (Years) | 1 year 10 months 27 days | |
Stock Options Exercisable | 1,419 | |
Weighted- Average Exercise Price | $ 2.52 | |
Exercise Price Range 4 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Range of Exercise Prices, Minimum | 2.9 | |
Range of Exercise Prices, Maximum | $ 2.93 | |
Stock Options Outstanding | 21 | |
Weighted- Average Exercise Price | $ 2.91 | |
Weighted- Average Remaining Contractual Life (Years) | 11 months 8 days | |
Stock Options Exercisable | 21 | |
Weighted- Average Exercise Price | $ 2.91 |
STOCK INCENTIVE PLANS AND SHA70
STOCK INCENTIVE PLANS AND SHARE-BASED COMPENSATION - Schedule of Restricted Stock Activity (Details) shares in Thousands | 12 Months Ended |
Mar. 31, 2016$ / sharesshares | |
Shares | |
Nonvested, beginning balance | shares | 13,791 |
Granted | shares | 6,854 |
Vested | shares | (6,426) |
Forfeited | shares | (3,110) |
Nonvested, ending balance | shares | 11,109 |
Weighted-Average Grant Date Fair Value | |
Nonvested, beginning balance | $ / shares | $ 1.34 |
Granted | $ / shares | 1.61 |
Vested | $ / shares | 1.43 |
Forfeited | $ / shares | 1.54 |
Nonvested, ending balance | $ / shares | $ 1.39 |
401K PLAN (Details)
401K PLAN (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |||
Employer contributions | $ 0.6 | $ 2.4 | $ 2.6 |
INCOME TAXES - Schedule of Pre-
INCOME TAXES - Schedule of Pre-tax Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
U.S | $ (77,245) | $ 13,507 | $ (22,549) |
Foreign | 3,745 | 3,971 | 2,292 |
Income (loss) before income taxes | $ (73,500) | $ 17,478 | $ (20,257) |
INCOME TAXES - Schedule of Comp
INCOME TAXES - Schedule of Components of Income Tax Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Federal: | |||
Current | $ (401) | $ (138) | $ 0 |
State: | |||
Current | 52 | 125 | 76 |
Foreign: | |||
Current | 1,591 | 890 | 1,096 |
Deferred | (59) | (159) | 45 |
Total foreign | 1,532 | 731 | 1,141 |
Income tax provision | $ 1,183 | $ 718 | $ 1,217 |
INCOME TAXES - Schedule of Inco
INCOME TAXES - Schedule of Income Tax Rate Reconciliation Amount (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Expense (benefit) at federal statutory rate | $ (25,725) | $ 6,117 | $ (7,090) |
State taxes | 53 | 125 | 76 |
Unbenefited (benefited) losses and credits | 27,035 | (4,727) | 7,974 |
Contingent tax reserves | 108 | 103 | 460 |
Foreign rate differential | (347) | (778) | (218) |
Other | 59 | (122) | 15 |
Income tax provision | $ 1,183 | $ 718 | $ 1,217 |
INCOME TAXES - Schedule of Co75
INCOME TAXES - Schedule of Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Mar. 31, 2015 |
Deferred tax assets: | ||
Inventory valuation method | $ 2,025 | $ 1,588 |
Accrued warranty expense | 1,320 | 1,624 |
Distribution reserves | 3,898 | 4,283 |
Loss carryforwards | 108,022 | 75,262 |
Tax credits | 132,061 | 185,578 |
Restructuring charge accruals | 1,054 | 1,866 |
Other accruals and reserves not currently deductible for tax purposes | 28,656 | 34,490 |
Deferred tax asset, gross | 277,036 | 304,691 |
Less valuation allowance | (224,138) | (252,475) |
Deferred tax asset | 52,898 | 52,216 |
Deferred tax liabilities: | ||
Depreciation | (3,962) | (4,302) |
Acquired intangibles | (8,244) | (4,920) |
Tax on unremitted foreign earnings | (16,549) | (15,968) |
Other | (23,123) | (26,093) |
Deferred tax liability | (51,878) | (51,283) |
Net deferred tax asset | $ 1,020 | $ 933 |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | $ 32,449 | $ 32,449 | $ 32,549 |
Settlement and effective settlements with tax authorities and related remeasurements | 0 | 0 | (488) |
Increase in balances related to tax positions taken in prior period | 411 | 0 | 388 |
Ending balance | $ 32,860 | $ 32,449 | $ 32,449 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory rate (as a percent) | 35.00% | ||
Increase (decrease) in valuation allowance | $ (28,300) | $ (8,900) | $ (8,000) |
Increase in balances related to tax positions taken in prior period | 411 | $ 0 | $ 388 |
Total unrecognized tax benefit including interest and penalties | 34,100 | ||
Accrued interest and penalties | 1,200 | ||
Federal net operating loss | 351,100 | ||
Tax credit carryforwards | 90,400 | ||
Federal net operating loss carryforwards attributable to excess tax deductions from stock option exercises | 34,300 | ||
Acquired net operating losses included in carryforwards | 11,100 | ||
Acquired credits included in carryforwards | $ 10,700 |
NET INCOME (LOSS) PER SHARE - N
NET INCOME (LOSS) PER SHARE - Narrative (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | |||||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | Oct. 31, 2012 | Nov. 15, 2010 | Jun. 30, 2009 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Warrant Expiration Date From Date of Issuance | 7 years | |||||
Warrant Expiration Date, After Change of Control | 3 years | |||||
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) | 4.5 | 2.4 | 12.8 | |||
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) | 12.1 | 0.1 | 11 | |||
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% | 3.50% | 3.50% | |||
Conversion price (usd per share) | $ 4.33 | $ 4.33 | $ 4.33 | $ 4.33 | ||
Anti-dilutive shares excluded from anti-dilutive shares excluded from computations (in shares) | 10 | 29 | 31.1 | |||
Anti-dilutive income excluded from computations | $ 1.8 | $ 5.3 | $ 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% | 4.50% | 4.50% | |||
Conversion price (usd per share) | $ 1.65 | $ 1.65 | $ 1.65 | $ 1.65 | ||
Anti-dilutive shares excluded from anti-dilutive shares excluded from computations (in shares) | 42.5 | 42.5 | 42.5 | |||
Anti-dilutive income excluded from computations | $ 3.6 | $ 3.6 | $ 3.6 |
NET INCOME (LOSS) PER SHARE -79
NET INCOME (LOSS) PER SHARE - Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Earnings Per Share [Abstract] | |||||||||||
Net income (loss) | $ (52,402) | $ (299) | $ (11,227) | $ (10,755) | $ 12,905 | $ 6,931 | $ 1,248 | $ (4,324) | $ (74,683) | $ 16,760 | $ (21,474) |
Weighted average shares: | |||||||||||
Basic | 262,730 | 254,665 | 247,024 | ||||||||
Dilutive shares from stock plans | 0 | 5,362 | 0 | ||||||||
Diluted | 262,730 | 260,027 | 247,024 | ||||||||
Basic net income (loss) per share | $ 0.05 | $ 0.03 | $ 0 | $ (0.02) | $ (0.28) | $ 0.07 | $ (0.09) | ||||
Diluted net income (loss) per share | $ 0.04 | $ 0.03 | $ 0 | $ (0.02) | $ (0.28) | $ 0.06 | $ (0.09) |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Schedule Of Future Minimum Lease Payments (Details) $ in Thousands | Mar. 31, 2016USD ($) |
Lease Payments | |
2,017 | $ 8,564 |
2,018 | 7,961 |
2,019 | 7,163 |
2,020 | 5,558 |
2,021 | 4,937 |
Thereafter | 2,156 |
Total | 36,339 |
Sublease Rental Income | |
2,017 | (971) |
2,018 | (966) |
2,019 | (909) |
2,020 | (943) |
2,021 | (812) |
Thereafter | 0 |
Total | (4,601) |
Total | |
2,017 | 7,593 |
2,018 | 6,995 |
2,019 | 6,254 |
2,020 | 4,615 |
2,021 | 4,125 |
Thereafter | 2,156 |
Total | $ 31,738 |
COMMITMENTS AND CONTINGENCIES81
COMMITMENTS AND CONTINGENCIES - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2016USD ($)Building | Mar. 31, 2015USD ($) | Mar. 31, 2014USD ($) | |
Operating Leases [Line Items] | |||
Future minimum lease payments | $ 36,339 | ||
Future minimum sublease rental income | 4,601 | ||
Rent expense | 6,600 | $ 7,000 | $ 10,300 |
Sublease income | 100 | ||
Non-cancelable commitments | $ 42,200 | ||
Colorado Springs campus | |||
Operating Leases [Line Items] | |||
Number of buildings | Building | 3 | ||
Future minimum lease payments | $ 15,000 | ||
Future minimum sublease rental income | $ 4,400 | ||
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 Narrativ
GEOGRAPHIC INFORMATION Narrative (Details) | 12 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Number of reportable segments | 1 |
GEOGRAPHIC INFORMATION - Schedu
GEOGRAPHIC INFORMATION - Schedule of Revenue and Long-Lived Assets by Region (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Long- Lived Assets | $ 12,939 | $ 14,653 | $ 12,939 | $ 14,653 | $ 17,574 | ||||||
Revenue | 120,029 | $ 128,048 | $ 117,025 | $ 110,856 | 147,798 | $ 142,063 | $ 135,106 | $ 128,128 | 475,958 | 553,095 | 553,165 |
Americas | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Long- Lived Assets | 12,657 | 14,063 | 12,657 | 14,063 | 16,759 | ||||||
Revenue | 304,007 | 340,811 | 359,259 | ||||||||
Europe | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Long- Lived Assets | 145 | 421 | 145 | 421 | 524 | ||||||
Revenue | 124,821 | 152,186 | 143,508 | ||||||||
Asia Pacific | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Long- Lived Assets | $ 137 | $ 169 | 137 | 169 | 291 | ||||||
Revenue | $ 47,130 | $ 60,098 | $ 50,398 |
GEOGRAPHIC INFORMATION - Sche84
GEOGRAPHIC INFORMATION - Schedule of Revenues Attributable to Product Groups, Services and Royalties (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Product revenue | $ 286,217 | $ 355,579 | $ 348,318 | ||||||||
Service revenue | 148,548 | 155,674 | 147,199 | ||||||||
Royalty revenue | 41,193 | 41,842 | 57,648 | ||||||||
Total revenue | $ 120,029 | $ 128,048 | $ 117,025 | $ 110,856 | $ 147,798 | $ 142,063 | $ 135,106 | $ 128,128 | 475,958 | 553,095 | 553,165 |
Tape automation systems | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Product revenue | 97,454 | 152,205 | 174,438 | ||||||||
Disk backup systems | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Product revenue | 39,722 | 54,845 | 50,217 | ||||||||
Devices and media | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Product revenue | 45,767 | 62,642 | 70,680 | ||||||||
Scale-out storage solutions | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Product revenue | $ 103,274 | $ 85,887 | $ 52,983 |
UNAUDITED QUARTERLY FINANCIAL85
UNAUDITED QUARTERLY FINANCIAL DATA (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue | $ 120,029 | $ 128,048 | $ 117,025 | $ 110,856 | $ 147,798 | $ 142,063 | $ 135,106 | $ 128,128 | $ 475,958 | $ 553,095 | $ 553,165 |
Gross margin | 54,773 | 56,697 | 46,317 | 46,965 | 62,164 | 65,067 | 61,929 | 55,526 | 204,752 | 244,686 | 239,620 |
Net income (loss) | $ (52,402) | $ (299) | $ (11,227) | $ (10,755) | $ 12,905 | $ 6,931 | $ 1,248 | $ (4,324) | $ (74,683) | $ 16,760 | $ (21,474) |
Basic and diluted net loss per share | $ (0.20) | $ 0 | $ (0.04) | $ (0.04) | |||||||
Basic net income (loss) per share | $ 0.05 | $ 0.03 | $ 0 | $ (0.02) | $ (0.28) | $ 0.07 | $ (0.09) | ||||
Diluted net income (loss) per share | $ 0.04 | $ 0.03 | $ 0 | $ (0.02) | $ (0.28) | $ 0.06 | $ (0.09) |
UNAUDITED QUARTERLY FINANCIAL86
UNAUDITED QUARTERLY FINANCIAL DATA Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Quarterly Financial Information Disclosure [Abstract] | |||||
Gain on Sale of Investments | $ 13,600 | ||||
Goodwill impairment | $ 55,613 | $ 55,613 | $ 0 | $ 0 |
SCHEDULE II CONSOLIDATED VALU87
SCHEDULE II CONSOLIDATED VALUATION AND QUALIFYING ACCOUNTS (Details) - Allowance for doubtful accounts - USD ($) $ in Thousands | 12 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at beginning of period | $ 22 | $ 27 | $ 88 | $ 62 |
Net additions (releases) charged to expense | (78) | 40 | (39) | |
Deductions | 73 | (101) | 65 | |
Balance at end of period | $ 22 | $ 27 | $ 88 |