Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2020 | Jul. 02, 2020 | Oct. 31, 2018 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Apr. 30, 2020 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | AMERICAN SOFTWARE INC | ||
Entity Central Index Key | 0000713425 | ||
Current Fiscal Year End Date | --04-30 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 516.5 | ||
Class A Common Shares | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 30,620,541 | ||
Class B Common Shares | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 1,821,587 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Apr. 30, 2020 | Apr. 30, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 79,814 | $ 61,288 |
Investments | 14,161 | 24,710 |
Trade accounts receivable, net | ||
Billed | 22,582 | 18,819 |
Unbilled | 2,425 | 1,475 |
Prepaid expenses and other current assets | 6,684 | 6,210 |
Total current assets | 125,666 | 112,502 |
Investments-noncurrent | 701 | 2,484 |
Property and equipment, net | 3,373 | 3,585 |
Capitalized software, net | 8,362 | 11,063 |
Goodwill | 25,888 | 25,888 |
Other intangibles, net | 1,132 | 2,732 |
Deferred sales commissions - non-current | 2,177 | 1,546 |
Lease right of use assets | 2,053 | |
Other assets | 1,941 | 1,510 |
Total assets | 171,293 | 161,310 |
Current liabilities: | ||
Accounts payable | 1,643 | 2,448 |
Accrued compensation and related costs | 6,635 | 2,561 |
Dividends payable | 3,547 | 3,434 |
Operating lease obligation | 763 | |
Other current liabilities | 643 | 1,375 |
Deferred revenue | 34,227 | 33,283 |
Total current liabilities | 47,458 | 43,101 |
Deferred income taxes | 2,897 | 3,514 |
Long-term operating lease obligations | 1,424 | |
Other long-term liabilities | 92 | 88 |
Total liabilities | 51,871 | 46,703 |
Shareholders’ equity: | ||
Additional paid-in capital | 150,312 | 138,315 |
Retained deficit | (9,013) | (1,729) |
Class A treasury stock, 4,588,632 shares at April 30, 2020 and 4,588,632 shares at April 30, 2019, at cost | (25,559) | (25,559) |
Total shareholders’ equity | 119,422 | 114,607 |
Commitments and contingencies | ||
Total liabilities and shareholders’ equity | 171,293 | 161,310 |
Class A Common Shares | ||
Shareholders’ equity: | ||
Common stock value | 3,500 | 3,398 |
Class B Common Shares | ||
Shareholders’ equity: | ||
Common stock value | $ 182 | $ 182 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Apr. 30, 2020 | Apr. 30, 2019 |
Trade accounts receivable, allowance for doubtful accounts | $ 264 | $ 153 |
Class A Common Shares | ||
Common stock, par value (in usd per share) | $ 0.10 | $ 0.10 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 35,000,649 | 33,979,739 |
Common stock, shares issued, net | 30,412,017 | 29,391,107 |
Common stock, shares Outstanding | 35,000,649 | 33,979,739 |
Common stock, shares Outstanding, net | 30,412,017 | 29,391,107 |
Class A treasury stock shares | 4,588,632 | 4,588,632 |
Class B Common Shares | ||
Common stock, par value (in usd per share) | $ 0.10 | $ 0.10 |
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares issued | 1,821,587 | 1,821,587 |
Common stock, shares Outstanding | 1,821,587 | 1,821,587 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | ||
Revenues: | ||||
Total revenues | $ 115,466 | $ 108,706 | $ 112,703 | |
Cost of revenues: | ||||
Cost of revenues | 52,308 | 51,966 | 50,000 | |
Gross margin | 63,158 | 56,740 | 62,703 | |
Research and development | 15,348 | 13,078 | 11,877 | |
Sales and marketing | 21,958 | 20,992 | 20,658 | |
General and administrative | 19,519 | 17,006 | 16,057 | |
Amortization of acquisition-related intangibles | 285 | 388 | 580 | |
Total operating expenses | 57,110 | 51,464 | 49,172 | |
Operating income | 6,048 | 5,276 | 13,531 | |
Other income: | ||||
Interest income | 1,524 | 2,092 | 1,575 | |
Other, net | (774) | 273 | 609 | |
Earnings before income taxes | 6,798 | 7,641 | 15,715 | |
Income tax expense | 56 | 838 | 3,662 | |
Net earnings | $ 6,742 | $ 6,803 | $ 12,053 | |
Earnings per common share | ||||
Basic (in usd per share) | [1] | $ 0.21 | $ 0.22 | $ 0.40 |
Diluted (in usd per share) | $ 0.21 | $ 0.22 | $ 0.40 | |
Shares used in the calculation of earnings per common share: | ||||
Basic (in shares) | 31,747 | 30,950 | 30,080 | |
Diluted (in shares) | 32,367 | 31,378 | 30,472 | |
Subscriptions fees | ||||
Revenues: | ||||
Total revenues | $ 22,033 | $ 14,026 | $ 8,855 | |
Cost of revenues: | ||||
Cost of revenues | 9,491 | 5,759 | 3,817 | |
License | ||||
Revenues: | ||||
Total revenues | 7,582 | 7,126 | 15,344 | |
Cost of revenues: | ||||
Cost of revenues | 4,798 | 6,430 | 6,261 | |
Professional services and other | ||||
Revenues: | ||||
Total revenues | 42,774 | 42,154 | 44,663 | |
Cost of revenues: | ||||
Cost of revenues | 30,695 | 31,421 | 30,596 | |
Maintenance | ||||
Revenues: | ||||
Total revenues | 43,077 | 45,400 | 43,841 | |
Cost of revenues: | ||||
Cost of revenues | $ 7,324 | $ 8,356 | $ 9,326 | |
Class A Common Shares | ||||
Earnings per common share | ||||
Basic (in usd per share) | $ 0.21 | $ 0.22 | $ 0.40 | |
Diluted (in usd per share) | [1] | $ 0.21 | $ 0.22 | $ 0.40 |
Shares used in the calculation of earnings per common share: | ||||
Basic (in shares) | 29,925 | 29,106 | 27,805 | |
Diluted (in shares) | 32,367 | 31,379 | 30,472 | |
Class B Common Shares | ||||
Earnings per common share | ||||
Basic (in usd per share) | $ 0.21 | $ 0.22 | $ 0.39 | |
Diluted (in usd per share) | $ 0.22 | $ 0.22 | $ 0.39 | |
Shares used in the calculation of earnings per common share: | ||||
Basic (in shares) | 1,822 | 1,844 | 2,275 | |
Diluted (in shares) | 1,822 | 1,844 | 2,275 | |
[1] | Diluted per share amounts for Class A shares are shown above. Diluted per share for Class B shares under the two-class method are $0.22, $0.22 and $0.39 for the years ended April 30, 2020, 2019 and 2018, respectively. See Note 1 to the Consolidated Financial Statements. |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Class A Common Shares | Class B Common Shares | Common stockClass A Common Shares | Common stockClass B Common Shares | Additional paid-in capital | Retained earnings/deficit | Treasury stock |
Beginning Balance (in shares) at Apr. 30, 2017 | 31,821,508 | 2,393,336 | ||||||
Beginning Balance at Apr. 30, 2017 | $ 103,750 | $ 3,182 | $ 239 | $ 121,280 | $ 4,608 | $ (25,559) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Proceeds from stock options exercised (in shares) | 984,310 | 984,310 | ||||||
Proceeds from stock options exercised | $ 8,609 | $ 98 | 8,511 | |||||
Conversion of Class B shares into Class A shares (in shares) | 335,946 | (335,946) | ||||||
Conversion of Class B shares into Class A shares | $ 34 | $ (34) | ||||||
Stock-based compensation | 1,467 | 1,467 | ||||||
Net earnings | 12,053 | 12,053 | ||||||
Dividends declared | (13,295) | (13,295) | ||||||
Ending Balance (in shares) at Apr. 30, 2018 | 33,141,764 | 2,057,390 | ||||||
Ending Balance at Apr. 30, 2018 | $ 112,584 | $ 3,314 | $ 205 | 131,258 | 3,366 | (25,559) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Proceeds from stock options exercised (in shares) | 602,176 | 602,176 | ||||||
Proceeds from stock options exercised | $ 5,367 | $ 61 | 5,306 | |||||
Conversion of Class B shares into Class A shares (in shares) | 235,799 | (235,803) | ||||||
Conversion of Class B shares into Class A shares | $ 23 | $ (23) | ||||||
Stock-based compensation | 1,751 | 1,751 | ||||||
Net earnings | 6,803 | 6,803 | ||||||
Dividends declared | (13,651) | (13,651) | ||||||
Ending Balance (in shares) at Apr. 30, 2019 | 33,979,739 | 1,821,587 | 33,979,739 | 1,821,587 | ||||
Ending Balance at Apr. 30, 2019 | $ 114,607 | $ 3,398 | $ 182 | 138,315 | (1,729) | (25,559) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Proceeds from stock options exercised (in shares) | 1,020,910 | 1,020,910 | ||||||
Proceeds from stock options exercised | $ 10,072 | $ 102 | 9,970 | |||||
Stock-based compensation | 2,027 | 2,027 | ||||||
Net earnings | 6,742 | 6,742 | ||||||
Dividends declared | (14,026) | (14,026) | ||||||
Ending Balance (in shares) at Apr. 30, 2020 | 35,000,649 | 1,821,587 | 35,000,649 | 1,821,587 | ||||
Ending Balance at Apr. 30, 2020 | $ 119,422 | $ 3,500 | $ 182 | $ 150,312 | $ (9,013) | $ (25,559) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows $ in Thousands | 12 Months Ended | ||
Apr. 30, 2020USD ($) | Apr. 30, 2019USD ($) | Apr. 30, 2018USD ($) | |
Cash flows from operating activities: | |||
Net earnings | $ 6,742 | $ 6,803 | $ 12,053 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||
Depreciation and amortization | 8,103 | 7,719 | 6,030 |
Stock-based compensation expense | 2,027 | 1,751 | 1,467 |
Net loss (gain) on investments | 563 | (373) | (254) |
Net gain on sale of fixed assets | 0 | (4) | 0 |
Deferred income tax (benefit) expense | (609) | 320 | 621 |
Purchases of trading securities | (22,433) | (10,254) | (24,541) |
Proceeds from sales and maturities of trading securities | 34,202 | 18,447 | 13,568 |
Changes in operating assets and liabilities, net of effects of acquisition: | |||
Accounts receivable, net | (4,712) | 2,165 | (1,774) |
Prepaid expenses and other assets | (1,537) | 536 | (1,983) |
Accounts payable and other liabilities | 2,692 | (3,611) | (1,807) |
Deferred revenue | 944 | 431 | 3,374 |
Net cash provided by operating activities | 25,982 | 23,930 | 6,754 |
Cash flows from investing activities: | |||
Capitalized computer software development costs | (3,170) | (5,961) | (4,804) |
Purchases of property and equipment, net of disposals | (420) | (1,252) | (1,428) |
Purchase of business, net of cash acquired | 0 | 0 | (9,150) |
Net cash used in provided by investing activities | (3,590) | (7,213) | (15,382) |
Cash flows from financing activities: | |||
Proceeds from exercise of stock options | 10,072 | 5,367 | 8,609 |
Dividends paid | (13,938) | (13,590) | (13,188) |
Net cash used in financing activities | (3,866) | (8,223) | (4,579) |
Net change in cash and cash equivalents | 18,526 | 8,494 | (13,207) |
Cash and cash equivalents at beginning of year | 61,288 | 52,794 | 66,001 |
Cash and cash equivalents at end of year | 79,814 | 61,288 | 52,794 |
Supplemental disclosures of cash paid during the year for: | |||
Income taxes | 544 | 516 | 7,892 |
Supplemental disclosures of noncash operating, investing and financing activities: | |||
Accrual of dividends payable | $ 3,547 | $ 3,434 | $ 3,367 |
Presentation and Summary of Sig
Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Apr. 30, 2020 | |
Accounting Policies [Abstract] | |
Presentation and Summary of Significant Accounting Policies | Presentation and Summary of Significant Accounting Policies (a) Basis of Presentation Founded in 1970 and headquartered in Atlanta, Georgia, American Software, Inc. and its subsidiaries (collectively, the “Company”) are engaged in the development, marketing, and support activities of a broad range of computer business application software products. The Company’s operations are principally in the computer software industry, and its products and services are used by customers within the United States and certain international markets. We provide our software solutions through three major business segments, which are further broken down into a total of six major product and service groups. The three operating segments are: (1) Supply Chain Management (“SCM”), (2) Information Technology Consulting (“IT Consulting”) and (3) Other. • The SCM segment consists of Logility, Inc. (see Note 8), which provides collaborative supply chain solutions to streamline and optimize the production, distribution and management of products between trading partners, as well as Demand Management, Inc. and New Generation Computing, Inc., wholly-owned subsidiaries of Logility and American Software, Inc., respectively. • The IT Consulting segment consists of The Proven Method, Inc., an IT staffing and consulting services firm. • The Other segment consists of (i) American Software ERP, which provides purchasing and materials management, customer order processing, financial, e-commerce and traditional manufacturing solutions, and (ii) unallocated corporate overhead expenses. (b) Principles of Consolidation The consolidated financial statements include the accounts of American Software, Inc. and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. (c) Revenue Recognition In accordance with the FASB issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) , we recognize revenue when we transfer control of the promised goods or services to our customers, in an amount that reflects the consideration we expect to receive in exchange for those goods or services. We derive our revenue from software licenses, maintenance services, consulting, implementation and training services, and Software-as-a-Service (“SaaS”), which includes a subscription to our software as well as support, hosting and managed services. The Company determines revenue recognition through the following steps: Step 1 - Identification of the Contract with the Customer Step 2 - Identification of Promised Goods and Services and Evaluation of Whether the Promised Goods and Services are Distinct Performance Obligations Step 3 - Determination of the Transaction Price Step 4 - Allocation of the Transaction Price to Distinct Performance Obligations Step 5 - Attribution of Revenue for Each Distinct Performance Obligation Nature of Products and Services. License. Our perpetual software licenses provide the customer with a right to use the software as it exists at the time of purchase. We recognize revenue for distinct software licenses once the license period has begun and we have made the software available to the customer. Our perpetual software licenses are sold with maintenance under which we provide customers with telephone consulting, product updates on a when and if available basis, and releases of new versions of products previously purchased by the customer, as well as error reporting and correction services. Subscription. Subscription fees include Software-as-a-Service ("SaaS") revenues for the right to use the software for a limited period of time in an environment hosted by the Company or by a third party. The customer accesses and uses the software on an as needed basis over the Internet or via a dedicated line; however, the customer has no right to take delivery of the software. The underlying arrangements typically include a single fee for the service that is billed monthly, quarterly or annually. The Company’s SaaS solutions represent a series of distinct services that are substantially the same and have the same pattern of transfer to the customer. Revenue from a SaaS solution is generally recognized ratably over the term of the arrangement. Professional Services and Other. Our professional services revenue consists of fees generated from consulting, implementation and training services, including reimbursements of out-pocket expenses in connection with our services. These services are typically optional to our customers, and are distinct from our software. Fees for our professional services are separately priced and are generally billed on an hourly basis, and revenue is recognized over time as the services are performed. We believe the output method of hours worked provides the best depiction of the transfer of our services since the customer is receiving the benefit from our services as the work is performed. Reimbursements received from customers for out-of-pocket expenses were recorded in revenues and totaled approximately $1.5 million , $1.4 million , and $1.9 million for 2020 , 2019 and 2018 , respectively. Maintenance and Support. Revenue is derived from maintenance and support services, under which we provide customers with telephone consulting, product updates on a when and if available basis, and releases of new versions of products previously purchased by the customer, as well as error reporting and correction services. Maintenance for perpetual licenses is renewable, generally on an annual basis, at the option of the customer. Maintenance terms typically range from one to three years . Revenue related to maintenance is generally paid in advance and recognized ratably over the term of the agreement since the Company is standing ready to provide a series of maintenance services that are substantially the same each period over the term; therefore, time is the best measure of progress. Support services for subscriptions are included in the subscription fees and are recognized as a component of such fees. Indirect Channel Revenue. We record revenues from sales made through the indirect sales channels on a gross basis, because we control the goods or services and act as the principal in the transaction. In reaching this determination, we evaluate sales through our indirect channel on a case-by-case basis and consider a number of factors including indicators of control such as the party having the primary responsibility to provide specified goods or services, and the party having discretion in establishing prices. Sales Taxes. We account for sales taxes collected from customers on a net basis . Significant Judgments. Many of our contracts include multiple performance obligations. Our products and services generally do not require a significant amount of integration or interdependency; therefore, our products and services are generally not combined. We allocate the transaction price for each contract to each performance obligation based on the relative standalone selling price (SSP) for each performance obligation within each contract. We use judgment in determining the SSP for products and services. For substantially all performance obligations except on-premise licenses, we are able to establish SSP based on the observable prices of products or services sold separately in comparable circumstances to similar customers. We typically establish an SSP range for our products and services which is reassessed on a periodic basis or when facts and circumstances change. Our on-premise licenses have not historically been sold on a standalone basis, as the vast majority of all customers elect to purchase on-premise license support contracts at the time of a on-premise license purchase. Support contracts are generally priced as a percentage of the net fees paid by the customer to access the on-premise license. We are unable to establish the SSP for our on-premise licenses based on observable prices given the same products are sold for a broad range of amounts (that is, the selling price is highly variable) and a representative SSP is not discernible from past transactions or other observable evidence. As a result, the SSP for a on-premise license included in a contract with multiple performance obligations is determined by applying a residual approach whereby all other performance obligations within a contract are first allocated a portion of the transaction price based upon their respective SSPs, with any residual amount of transaction price allocated to on-premise license revenues Contract Balances. Timing of invoicing to customers may differ from timing of revenue recognition and these timing differences result in unbilled accounts receivables or contract liabilities (deferred revenue) on the Company’s consolidated balance sheets. Fees for our software licenses are generally due within 30 days of contract execution. We have an established history of collecting under the terms of our software license contracts without providing refunds or concessions to our customers. SaaS solutions and maintenance are typically billed in advance on a monthly, quarterly, or annual basis. Services are typically billed as performed. In instances where the timing of revenue recognition differs from the timing of invoicing, we have determined that our contracts generally do not include a significant financing component. The primary purpose of our invoicing terms is to provide customers with predictable ways to purchase our software and services, not to provide or receive financing. Additionally, we are applying the practical expedient to exclude any financing component from consideration for any contracts with payment terms of one year or less since we rarely offer terms extending beyond one year. The consideration in our customer contracts is fixed. We have an unconditional right to consideration for all goods and services transferred to our customers. That unconditional right to consideration is reflected in billed and unbilled accounts receivable in the accompanying consolidated balance sheets in accordance with ASC Topic 606. Deferred revenue consists of amounts collected prior to having completed the performance of maintenance, SaaS, hosting, and managed services. We typically invoice customers for cloud subscription and support fees in advance on a monthly, quarterly or annual basis, with payment due at the start of the cloud subscription or support term. During the twelve months ended April 30, 2020, the Company recognized $31.0 million of revenue that was included in the deferred revenue balance as of April 30, 2019. Years ended April 30, 2020 2019 in thousands Deferred revenue, current $ 34,227 $ 33,283 Deferred revenue, long-term — — Total deferred revenue $ 34,227 $ 33,283 Remaining Performance Obligations. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account under Topic 606. The transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied by transferring the promised good or service to the customer. The Company identifies and tracks the performance obligations at contract inception so that the Company can monitor and account for the performance obligations over the life of the contract. Remaining performance obligations represent the transaction price of orders for which products have not been delivered or services have not been performed. As of April 30, 2020 , the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $77.0 million . The Company expects to recognize revenue on approximately 60% of the remaining performance obligations over the next 12 months, with the remainder recognized thereafter. Disaggregated Revenue. The Company disaggregates revenue from contracts with customers by geography, as it believes it best depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. The Company’s revenue by geography is as follows: Years ended April 30, 2020 2019 in thousands Revenues: Domestic $ 93,332 $ 87,316 International 22,134 21,390 $ 115,466 $ 108,706 Practical Expedients and Exemptions. There are several practical expedients and exemptions allowed under Topic 606 that impact the timing of revenue recognition and the Company’s disclosures. Below is a list of practical expedients the Company applies in the application of Topic 606: • The Company does not evaluate a contract for a significant financing component if payment is expected within one year or less from the transfer of the promised items to the customer. • The Company does not disclose the value of unsatisfied performance obligations for contracts for which the Company recognizes revenue at the amount to which it has the right to invoice for services performed (this applies to time-and-material engagements). Contract Costs. The Company capitalizes the incremental costs of obtaining a contract with a customer if the Company expects to recover those costs. The incremental costs of obtaining a contract are those that the Company incurs to obtain a contract with a customer that it would not have incurred if the contract had not been obtained (for example, a sales commission). The Company capitalizes the costs incurred to fulfill a contract only if those costs meet all of the following criteria: • The costs relate directly to a contract or to an anticipated contract that the Company can specifically identify. • The costs generate or enhance resources of the Company that will be used in satisfying (or in continuing to satisfy) performance obligations in the future. • The costs are expected to be recovered. Certain sales commissions incurred by the Company were determined to be incremental costs to obtain the related contracts, which are deferred and amortized ratably over the economic benefit period for license and term subscriptions. These deferred commission costs are classified as current or non-current based on the timing of when the Company expects to recognize the expense. The current and non-current portions of deferred commissions are included in prepaid expenses and other current assets and d eferred sales commissions in long-term assets, respectively, in the Company’s consolidated balance sheets. Total deferred commissions at April 30, 2020 and April 30, 2019 were $3.5 million and $2.3 million , respectively. Amortization of sales commissions was $2.1 million for year ended April 30, 2020, which is included in sales and marketing expense in the accompanying consolidated statements of operations. During the fiscal 2020 and 2019 impairment analyses, no losses were recognized. Unbilled Accounts Receivable. The unbilled receivable balance consists of amounts generated from license fee and services revenues. At April 30, 2020 and 2019 , unbilled license fees were approximately $1.3 million and $0.4 million , respectively, and unbilled services revenues were approximately $1.1 million and $1.1 million , respectively. Unbilled license fee accounts receivable represents revenue that has been recognized but under the terms of the license agreements, which include specified payment terms that are considered normal and customary, certain payments have not yet been invoiced to the customers. Unbilled services revenues primarily occur due to the timing of the billings, which occur subsequent to the end of each reporting period. (d) Cost of Revenues Cost of revenues for licenses includes amortization of developed technology and capitalized computer software development costs, salaries and benefits and value-added reseller ("VAR") commissions. Costs for maintenance and services revenues include the cost of personnel to conduct implementations, customer support and consulting, and other personnel-related expenses as well as agent commission expenses related to maintenance revenues generated by the indirect channel. Costs for subscriptions revenues include amortization of developed technology and capitalized computer software development costs, third–party hosting costs, salaries and benefits and value–added reseller ("VAR") commissions. Commission costs for maintenance are deferred and amortized over the related maintenance term. Commission costs for subscriptions are deferred and amortized over the related subscription term. (e) Cash Equivalents Cash equivalents of $75.3 million and $56.6 million at April 30, 2020 and 2019 , respectively, consist of overnight repurchase agreements and money market deposit accounts. The Company considers all such investments with original maturities of three months or less to be cash equivalents for purposes of the consolidated statements of cash flows. (f) Concentrations of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and cash equivalents, short- and long-term investments and accounts receivable. The Company maintains cash and cash equivalents and short- and long-term investments with various financial institutions. The Company’s sales are primarily to companies located in North America and Europe. The Company performs periodic credit evaluations of its customers’ financial condition and does not require collateral. Accounts receivable are due principally from companies under stated contract terms. (g) Returns and Allowances The Company has not experienced significant returns or warranty claims to date and, as a result, the allowance for the cost of returns and product warranty claims at April 30, 2020 and 2019 is not material. The Company records an allowance for doubtful accounts based on the historical experience of write-offs and a detailed assessment of accounts receivable. The total amounts of expense to operations were approximately $97,000 , $0 , and $24,000 for fiscal 2020 , 2019 , and 2018 , respectively, which are included in general and administrative expenses in the accompanying consolidated statements of operations. In estimating the allowance for doubtful accounts, management considers the age of the accounts receivable, the Company’s historical write-offs, and the credit worthiness of the customer, among other factors. Should any of these factors change, the estimates made by management will also change accordingly, which could affect the level of the Company’s future provision for doubtful accounts. Uncollectible accounts are written off when it is determined that the specific balance is not collectible. (h) Investments Investments consist of commercial paper, corporate bonds, government securities, certificates of deposits and marketable equity securities. The Company accounts for its investments in accordance with the Investments – Debt Securities (Topic 320) and Investments—Equity Securities (Topic 321). The Company has classified its investment portfolio as “trading.” “Trading” securities are bought and held principally for the purpose of selling them in the near term and are recorded at fair value. Unrealized gains and losses on trading securities are included in the determination of net earnings. For the purposes of computing realized gains and losses, cost is identified on a specific identification basis. Investments with maturities less than one year as of the balance sheet date are classified as short-term investments and those that mature greater than one year are classified as long-term investments. (i) Property and Equipment Property and equipment are recorded at cost, less accumulated depreciation and amortization. Depreciation of buildings, computer equipment, purchased computer software, office furniture and equipment is calculated using the straight-line method based upon the estimated useful lives of the assets ( three years for computer equipment and software, seven years for office furniture and equipment, fifteen years for building improvements and thirty years for buildings). Leasehold improvements are amortized using the straight-line method over the estimated useful lives of the assets or the related lease term, whichever is shorter. Depreciation and amortization expense on buildings, furniture, equipment and purchased computer software was $0.6 million , $0.7 million , and $0.5 million in 2020 , 2019 , and 2018 , respectively. (j) Capitalized Computer Software Development Costs The Company capitalizes certain computer software development costs in accordance with the Costs of Software to be Sold, Leased or Marketed under ASC 985-20. Costs incurred internally to create a computer software product or to develop an enhancement to an existing product are charged when incurred as research and development expense until technological feasibility for the respective product is established. Thereafter, software development costs are capitalized and reported at the lower of unamortized cost or net realizable value. Capitalization ceases when the product or enhancement is available for general release to customers. The Company makes ongoing evaluations of the recoverability of its capitalized software projects by comparing the net amount capitalized for each product to the estimated net realizable value of the product. If such evaluations indicate that the unamortized software development costs exceed the net realizable value, the Company writes off the amount by which the unamortized software development costs exceed net realizable value. Capitalized computer software development costs are amortized ratably based on the projected revenues associated with the related software or on a straight-line basis over three years, whichever method results in a higher level of amortization. Amortization of capitalized computer software development costs is included in the cost of license and subscription revenues in the consolidated statements of operations. Total Expenditures and Amortization. Total expenditures for capitalized computer software development costs, total research and development expense, and total amortization of capitalized computer software development costs are as follows: Years ended April 30, 2020 2019 2018 (in thousands) Total capitalized computer software development costs $ 3,170 $ 5,961 $ 4,804 Total research and development expense 15,348 13,078 11,877 Total research and development expense and capitalized computer software-development costs $ 18,518 $ 19,039 $ 16,681 Total amortization of capitalized computer software development costs $ 5,871 $ 4,627 $ 3,690 Capitalized computer software development costs consist of the following at April 30, 2020 and 2019 (in thousands): 2020 2019 Capitalized computer software development costs $ 42,973 $ 39,803 Accumulated amortization (34,611 ) (28,740 ) $ 8,362 $ 11,063 Of the Company’s capitalized software projects that are currently completed and being amortized, the Company expects amortization expense for the next three years to be as follows (in thousands): 2021 $ 3,437 2022 2,222 2023 197 $ 5,856 (k) Acquisition-Related Intangible Assets (exclusive of Logility’s treasury stock repurchases) Acquisition-related intangible assets are stated at historical cost and include acquired software and certain other intangible assets with definite lives. Intangible assets are being amortized over a period ranging from one to eight years . For 2020 , total amortization expense related to acquisition-related intangible assets was approximately $1.6 million , with $0.3 million included in operating expense and $1.3 million included in cost of license fees in the accompanying consolidated statements of operations. For 2019 , total amortization expense related to acquisition-related intangible assets was approximately $2.4 million , with $0.4 million included in operating expense and $2.0 million included in cost of license fees in the accompanying consolidated statements of operations. For 2018 , total amortization expense related to acquisition-related intangible assets was approximately $1.8 million , with $0.6 million included in operating expense and $1.2 million included in cost of license fees in the accompanying consolidated statements of operations. Acquisition-Related Intangible Assets consist of the following at April 30, 2020 and 2019 (in thousands): Weighted Average Amortization in Years 2020 2019 Current technology 3 $ 6,000 $ 6,000 Customer relationships 8 1,700 1,700 Non-compete 3 100 100 Trademarks 3 340 340 8,140 8,140 Accumulated amortization (7,008 ) (5,408 ) $ 1,132 $ 2,732 The Company expects amortization expense for the next five years to be as follows based on intangible assets as of April 30, 2020 (in thousands): 2021 $ 772 2022 212 2023 52 2024 38 2025 38 Thereafter 20 $ 1,132 (l) Goodwill and Other Intangibles Goodwill represents the excess of costs over fair value of assets of businesses acquired. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but instead are tested for impairment at least annually in accordance with the FASB issued Accounting Standards Update (“ASU”) No.2017-04 Intangibles-Goodwill and Other (Topic 350) . The Company evaluates the carrying value of goodwill annually and between annual evaluations if events occur or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying amount. Such circumstances could include, but are not limited to, (1) a significant adverse change in legal factors or in business climate, (2) unanticipated competition, or (3) an adverse action or assessment by a regulator. When evaluating whether the goodwill is impaired, the Company compares the fair value of the reporting unit to which the goodwill is assigned to its carrying amount, including goodwill. The Company identifies the reporting unit on a basis that is similar to its method for identifying operating segments as defined by the Segment Reporting Topic of the FASB ASC. If the carrying amount of a reporting unit exceeds its fair value, then the amount of the impairment loss must be measured. This evaluation is applied annually on each impairment testing date (April 30) unless there is a triggering event present during an interim period. For the years ended April 30, 2020 and 2019 , the Company performed a qualitative assessment based on economic, industry and company-specific factors as the initial step in the annual goodwill impairment test for all reporting units. Based on the results of the qualitative assessment, companies are only required to perform Step 1 of the annual impairment test for a reporting unit if the company concludes that it is more likely than not that the unit’s fair value is less than its carrying amount. To the extent the Company concludes it is more likely than not that a reporting unit’s estimated fair value is less than its carrying amount, the two-step approach is applied. The first step would require a comparison of each reporting unit’s fair value to the respective carrying value. If the carrying value exceeds the fair value, a second step is performed to measure the amount of impairment loss, if any. The Company did not identify any macroeconomic or industry conditions as of April 30, 2020 , that would indicate the fair value of the reporting units were more likely than not to be less than their respective carrying values. If circumstances change or events occur to indicate it is more likely than not that the fair value of any reporting units have fallen below their carrying value, the Company would test such reporting unit for impairment. Intangible assets with estimable useful lives are required to be amortized over their respective estimated useful lives to their estimated residual values, and reviewed for impairment in accordance with the (ASU) No. 2011-10, Property, Plant and Equipment (Topic 360). Goodwill consisted of the following by segment (in thousands): Supply Chain Management* IT Consulting Other Total Balance at April 30, 2018 $ 25,888 $ — $ — $ 25,888 Balance at April 30, 2019 25,888 — — 25,888 Balance at April 30, 2020 $ 25,888 $ — $ — $ 25,888 * Goodwill related to Logility, Inc., New Generation Computing, Inc., Demand Management, Inc. and their acquisitions. Intangible Assets (including Acquisition-Related Intangible Assets) consisted of the following by segment (in thousands): IT Consulting Other Total Balance at April 30, 2018 $ 5,120 $ — $ — $ 5,120 Amortization expense (2,388 ) — — (2,388 ) Balance at April 30, 2019 2,732 — — 2,732 Amortization expense (1,600 ) — — (1,600 ) Balance at April 30, 2020 $ 1,132 $ — $ — $ 1,132 (m) Income Taxes The Company accounts for income taxes using the asset and liability method. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. (n) Recent Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), and the related amendments, which replaced the previous revenue recognition guidance. The Company adopted this revenue standard effective May 1, 2018 using the modified retrospective transition method. Under this method, the Company elected to apply the cumulative effect method to contracts that are not complete as of the adoption date. The Company’s total revenue impact was $1.2 million , with approximately 70% impacting the fiscal year ending April 30, 2019, which is the result of recognizing revenue for the license component of its term licenses and certain perpetual license contracts that were previously recognized over time due to the lack of vendor-specific objective evidence (VSOE) of fair value at the point in time at which control of the software license is transferred to the customer. In addition, under this standard, the Company will capitalize a portion of sales commission expenses and recognize them ratably over the associated period of economic benefit, which the Company has determined to be six years, which had an impact of $1.1 million . As a result, the cumulative impact due to the adoption of the revenue standard on the opening consolidated balance sheet was an increase in opening retained earnings, with a corresponding increase in unbilled accounts receivable and a decrease in deferred revenue. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), and the related amendments, to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. Under the new guidance, a lessee is required to recognize assets and liabilities for leases with lease terms of more than 12 months. The Company adopted ASU 2016-02 as of May 1, 2019 using the modified retrospective approach, which allows the Company to apply Accounting Standards Codification (ASC) 840, Leases, in the comparative periods presented in the year of adoption. Accordingly, the comparative periods and disclosures have not been restated. The cumulative effect of adoption was recorded as an adjustment to the opening balance sheet in the period of adoption. As part of the adoption of ASC 842, the Company elected to adopt certain of the optional practical expedients, including the package of practical expedients which, among other things, gives us the option to not reassess: 1) whether expired or existing contracts are or contain leases; 2) the lease classification for expired or existing leases; and 3) initial direct costs for existing leases. The Company also elected the practical expedient to not record lease right-of-use (“ROU”) assets and lease obligations for leases with terms of 12 months or less. Finally, the Company also elected the practical expedient to not separate lease and non-lease components, which allows it to account for lease and non-lease components as a single lease component. The Company did not elect the hindsight practical expedient in its determination of the lease term for existing leases; therefore, the original |
Investments
Investments | 12 Months Ended |
Apr. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments Investments consist of the following (in thousands): April 30, 2020 2019 Trading: Debt securities—Tax-exempt state and municipal bonds $ 3,104 $ 16,192 Marketable equity securities 11,758 11,002 $ 14,862 $ 27,194 The total carrying value of all investments on a consolidated basis was approximately $14.9 million and $27.2 million at April 30, 2020 and 2019 , respectively. At April 30, 2020 , there were approximately $0.7 million in trading investments included in investments-noncurrent in the accompanying consolidated balance sheet. At April 30, 2019 , there were approximately $2.5 million in trading investments included in investments-noncurrent in the accompanying consolidated balance sheet. The contractual maturities of debt securities classified as trading at April 30, 2020 and 2019 were as follows (in thousands): 2020 2019 Due within one year $ 2,403 $ 13,708 Due within two years 701 2,484 Due within three years — — Due after three years — — $ 3,104 $ 16,192 In fiscal 2020 , 2019 and 2018 , the Company’s investment portfolio of marketable equity securities experienced unrealized holding gains of $ 0.7 million , unrealized holding losses of approximately $0.9 million and unrealized holding losses of approximately $1.0 million , respectively. In fiscal 2020 , 2019 and 2018 , the Company’s investment portfolio of debt securities experienced unrealized holding losses of approximately $0.6 million , unrealized holding losses of $0.1 million and unrealized holding gains of approximately $0.1 million , respectively. In fiscal 2020 , 2019 and 2018 , the Company’s investment portfolio of marketable equity securities experienced realized holding losses of approximately $0.2 million , realized holding losses of $0.1 million and realized holding losses of approximately $0 million , respectively. In fiscal 2020 , 2019 and 2018 , the Company’s investment portfolio of debt securities experienced realized holding gains of approximately $0.7 million for all periods. Unrealized and realized gains and losses are included in "Other income, net" in the company’s condensed consolidated statements of operations. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Apr. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company measures its investments based on a fair value hierarchy disclosure framework that prioritizes and ranks the level of market price observability used in measuring assets and liabilities at fair value. A number of factors affect market price observability including the type of asset or liability and its characteristics. This hierarchy prioritizes the inputs into three broad levels as follows: • Level 1—Quoted prices in active markets for identical instruments. • Level 2—Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. • Level 3—Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. The following is a general description of the valuation methodologies used for financial assets and liabilities measured at fair value, including the general classification of such assets and liabilities pursuant to the valuation hierarchy. Cash Equivalents —Cash equivalents include investments in government obligation based money-market funds, other money market instruments and interest-bearing deposits with initial or remaining terms of three months or less. The fair value of cash equivalents approximates its carrying value due to the short-term nature of these instruments. Marketable Securities —Marketable securities utilizing Level 1 inputs include active exchange-traded equity securities and equity index funds, and most U.S. government debt securities, as these securities all have quoted prices in active markets. Marketable securities utilizing Level 2 inputs include municipal bonds. We value these securities using market-corroborated pricing or other models that use observable inputs such as yield curves. The following table presents our assets that we measured at fair value on a recurring basis and indicates the fair value hierarchy of the valuation techniques we utilized to determine such fair value (in thousands): April 30, 2020 April 30, 2019 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Cash equivalents $ 75,256 $ — $ — $ 75,256 $ 56,645 $ — $ — $ 56,645 Marketable securities 11,758 3,104 — 14,862 11,002 16,192 — 27,194 Total $ 87,014 $ 3,104 $ — $ 90,118 $ 67,647 $ 16,192 $ — $ 83,839 The carrying amounts of cash, trade accounts receivable and unbilled accounts receivable, accounts payable, accrued compensation and related costs, and other current liabilities approximate fair value because of their short-term maturities. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Apr. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment consisted of the following at April 30, 2020 and 2019 (in thousands): 2020 2019 Buildings and leasehold improvements $ 16,881 $ 16,724 Computer equipment and purchased software 11,478 11,235 Office furniture and equipment 4,973 4,953 33,332 32,912 Accumulated depreciation and amortization (29,959 ) (29,327 ) $ 3,373 $ 3,585 |
Income Taxes
Income Taxes | 12 Months Ended |
Apr. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax expense (benefit) consisted of the following: Years ended April 30, 2020 2019 2018 (in thousands) Current: Federal $ 295 $ 184 $ 2,298 State 370 334 743 665 518 3,041 Deferred: Federal (513 ) 256 321 State (96 ) 64 300 (609 ) 320 621 $ 56 $ 838 $ 3,662 The Company’s actual income tax expense differs from the “expected” income tax expense calculated by applying the Federal statutory rate of 21.0% for fiscal 2020 and 2019 and our blended U.S. Federal statutory rate of 30.3% for fiscal 2018 , to earnings before income taxes as follows: Years ended April 30, 2020 2019 2018 (in thousands) Computed “expected” income tax expense $ 1,428 $ 1,605 $ 4,763 Increase (decrease) in income taxes resulting from: State income taxes, net of federal income tax effect 214 339 891 Research and development credits (703 ) (678 ) (493 ) Excess tax benefits from stock option deductions (737 ) (251 ) (165 ) Foreign tax credits (164 ) (112 ) (211 ) Rate change – tax reform — — (1,206 ) Other, net, including permanent items 18 (65 ) 83 $ 56 $ 838 $ 3,662 Our effective income tax rates were 1% , 11% and 23% in 2020 , 2019 and 2018 , respectively. Our effective income tax rate takes into account the source of taxable income, by state, and available income tax credits. The provision for income taxes in fiscal 2020 , 2019 and 2018 includes approximately $878,000 , $298,000 and $186,000 , respectively, in income tax benefits related to the tax benefits realized from stock option deductions. The significant components of deferred income tax expense attributable to income from continuing operations before income taxes for the years ended April 30, 2020 , 2019 , and 2018 are as follows: Years ended April 30, 2020 2019 2018 (in thousands) Deferred tax (benefit) expense $ (639 ) $ 330 $ 1,823 Deferred tax benefit related to tax reform — — (1,206 ) Increase (decrease) in the valuation allowance for deferred tax assets 30 (10 ) 4 $ (609 ) $ 320 $ 621 The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at April 30, 2020 and 2019 are presented as follows: 2020 2019 (in thousands) Deferred tax assets: Accruals and expenses not deducted for tax purposes $ 363 $ 328 State net operating loss carryforwards 226 217 Fixed asset basis differences 822 831 Nonqualified stock options 848 858 Right of use liability 547 — Tax credit carryforwards 83 — Total gross deferred tax assets 2,889 2,234 Less valuation allowance (190 ) (160 ) Net deferred tax 2,699 2,074 Deferred tax liabilities: Capitalized computer software development costs (2,090 ) (2,766 ) Net gains/losses on trading securities (1,005 ) (1,183 ) Goodwill and intangible assets basis differences (746 ) (639 ) Right of use asset (513 ) — Deferred agent commissions (1,242 ) (1,000 ) Total gross deferred tax liabilities (5,596 ) (5,588 ) Net deferred tax liabilities $ (2,897 ) $ (3,514 ) At April 30, 2020 , the Company had approximately $5.7 million of various state net operating loss carryforwards which are available to offset future state taxable income, if any, through 2035 . In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Based upon reversal of deferred tax liabilities and expected future profitability, management believes it is more likely than not the Company will realize the benefits of these deductible differences, net of the existing valuation allowances, at April 30, 2020 . The Company applies the accounting provisions which require us to prescribe a recognition threshold and measurement attribution for the financial statement recognition and measurement of a tax position taken or expected to be taken within an income tax return. As of April 30, 2020 , 2019 and 2018 , we recorded approximately $34,000 , $43,000 , and $56,000 , respectively, of unrecognized tax benefits, inclusive of interest and penalties, all of which would impact our effective tax rate if recognized. The liability for unrecognized tax benefits is recorded net of any federal tax benefit that would result from payment. We recognize potential accrued interest and penalties related to unrecognized tax benefits within income tax expense. To the extent interest and penalties are not assessed with respect to uncertain tax positions, amounts accrued will be reduced and reflected as a reduction of the overall income tax provision. As of April 30, 2020 and 2019 , we recorded a liability for potential penalties and interest of approximately $19,000 and $22,000 , respectively, related to uncertain tax positions. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows, excluding interest and penalties (in thousands): 2020 2019 Balance at beginning of the period $ 21 $ 32 Decreases as a result of positions taken during prior periods (6 ) (11 ) Increases as a result of positions taken during the current period — — Balance at April 30, $ 15 $ 21 We conduct business globally and, as a result, file consolidated income tax returns in the United States federal jurisdiction and in many state and foreign jurisdictions. We are no longer subject to state and local, or non–U.S. income tax examinations for years prior to 2002. We are no longer subject to U.S. federal income tax examination for years prior to 2016. During the years ended April 30, 2020 , 2019 and 2018, we recorded research and development state tax credits against payroll taxes of approximately $427,000 , $488,000 , and $290,000 respectively, which reduced general and administrative expenses by the same amounts. On December 22, 2017, the U.S. enacted the Tax Cuts and Jobs Act (the “Act”), which significantly changed U.S. tax law. The Act lowered our U.S. statutory federal income tax rate from 35% to 21% effective January 1, 2018. For fiscal 2018, our blended U.S. federal statutory tax rate was 30.3% . This is the result of using the tax rate of 35% for the first eight months of fiscal year 2018 and the reduced tax rate of 21% for the final four months of fiscal 2018. During the fiscal year ended April 30, 2018, we recorded a $1.2 million benefit from the impact of changes in the tax rate, primarily on deferred tax assets and liabilities, which was included in income tax expense on our consolidated statement of operations and deferred income taxes on our consolidated balance sheet. We remeasured our deferred taxes to reflect the reduced rate that will apply when these deferred taxes are settled or realized in future periods. To calculate the remeasurement of deferred taxes, we estimated when the existing deferred taxes will be settled or realized. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Apr. 30, 2020 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity Except for the election or removal of directors and class votes as required by law or our Articles of Incorporation, holders of both classes of common stock vote as a single class on all matters, with each Class A common share entitled to cast one-tenth vote per share and each Class B common share entitled to cast one vote per share. Neither class has cumulative voting rights. Holders of Class A common shares, as a class, are entitled to elect 25% of the board of directors (rounded up to the nearest whole number of directors) if the number of outstanding Class A common shares is at least 10% of the number of outstanding shares of both classes of common stock. No cash or property dividend may be paid to holders of Class B common shares during any fiscal year of the Company unless a dividend of $0.05 per share has been paid in such year on each outstanding Class A common share. This $0.05 per share annual dividend preference is noncumulative. Dividends per Class B common share during any fiscal year may not exceed dividends paid per Class A common share during such year. Each Class B common share is convertible at any time into one Class A common share at the option of the shareholder. Stock Option Plans As of April 30, 2020 , the Company has outstanding stock options granted pursuant to four stock option plans. The 2001 Stock Option Plan (the “2001 Plan”) became effective on September 1, 2000 . This Plan was terminated and replaced by the 2011 Equity Compensation Plan (the “2011 Plan”) effective May 17, 2010 . Options outstanding under the 2001 Plan remain in effect, but no new options may be granted under the plan. Effective July 9, 2009 , we adopted the Logility, Inc. 1997 Stock Plan and the Logility, Inc. 2007 Stock Plan as equity plans of American Software, although we will not grant any additional stock options under these plans. On August 21, 2019, shareholders approved the Company’s 2020 Equity Compensation Plan (the "2020 Plan"). The 2020 Plan reserves for issuance 2,500,000 shares of Class A Common Stock plus the number of shares, if any, remaining available for issuance under the Company’s 2011 Plan. Under the 2020 Plan, options to purchase Class A common shares are granted in the form of both incentive stock options and non-qualified stock options. The number of options granted under this plan is determined with each grant. By resolution of the Board of Directors, non-employee directors receive grants of non-qualified options to purchase 10,000 shares upon election and 4,000 shares at the end of each fiscal quarter. The price of such grants is equal to the closing market price of the shares on the date of grant. Options are exercisable based on the terms of such options, but no more than six years after the date of grant (or five years for incentive stock options granted to any person who owns 10% or more of the combined voting power of all classes of capital stock of the Company at the time of grant). A total of 2,500,000 shares are authorized for issuance pursuant to options granted under this Plan. Incentive and nonqualified options exercisable at April 30, 2020 , 2019 and 2018 totaled 900,610 , 1,086,180 , and 965,416 , respectively. Options available for grant at April 30, 2020 , for the 2020 Plan are 1,529,143 shares. A summary of changes in outstanding options for the year ended April 30, 2020 is as follows: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value Outstanding at May 1, 2019 3,983,060 $ 10.88 Granted 1,113,000 14.72 Exercised (1,020,910 ) 9.87 Forfeited (327,000 ) 12.02 Expired (2,500 ) 9.79 Outstanding at April 30, 2020 3,745,650 $ 12.21 3.8 $ 16,011,836 Exercisable at April 30, 2020 900,610 $ 10.69 2.8 $ 5,214,907 The weighted-average grant date fair value of stock options granted during the years ended April 30, 2020 , 2019 , and 2018 is $3.20 , $2.58 , and $2.01 per share, respectively. The fair value of each option award is estimated on the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions for the years ended April 30, 2020 , 2019 , and 2018 : 2020 2019 2018 Dividend yield 2.8 % 3.6 % 3.9 % Expected volatility 30.9 % 30.0 % 28.9 % Risk-free interest rate 1.6 % 2.9 % 1.9 % Expected term 5 years 5 years 5 years The expected volatility is based on the historical volatility and implied volatility. The Company uses historical data to estimate stock option exercise and forfeiture rates. The expected term represents the period over which the share-based awards are expected to be outstanding. Beginning after December 31, 2007, the expected term was estimated using historical data. The dividend yield is an estimate of the expected dividend yield on the Company’s stock. The risk-free rate is based on U.S. Treasury yields in effect at the time of the grant for the expected term of the stock options. Options issued after May 1, 2007 with graded vesting are valued as a single award. The total value of the award is expensed on a straight-line basis over the vesting period with the amount of compensation cost recognized at any date at least equal to the portion of the grant date value of the award that is vested at that date. During the years ended April 30, 2020 , 2019 , and 2018 , we issued 1,020,910 , 602,176 and 984,310 shares of common stock, respectively, resulting from the exercise of stock options. The total intrinsic value of options exercised during the years ended April 30, 2020 , 2019 and 2018 based on market value at the exercise dates was $5,569,882 , $2,441,830 and $2,999,372 respectively. The fair value of grants vested during the years ended April 30, 2020 , 2019 and 2018 was $1,786,342 , $1,470,840 and $1,287,222 , respectively. As of April 30, 2020 , unrecognized compensation cost related to unvested stock option awards approximated $3.4 million and is expected to be recognized over a weighted average period of 1.9 years . Stock Repurchases On August 19, 2002, our Board of Directors approved a resolution authorizing the repurchase of up to 2.0 million shares of our Class A common stock. These repurchases have been and will be made through open market purchases at prevailing market prices. The timing of any repurchases will depend upon market conditions, the market price of our common stock and management’s assessment of our liquidity and cash flow needs. For this repurchase plan, through April 30, 2020 , we have repurchased 1,053,679 shares of common stock at a cost of approximately $6.2 million . During fiscal 2020 we did not repurchase any shares. Under all repurchase plans as of April 30, 2020 , we have repurchased 4,588,632 shares of common stock at a cost of approximately $25.6 million . |
Leases
Leases | 12 Months Ended |
Apr. 30, 2020 | |
Leases [Abstract] | |
Leases | Leases The Company’s operating leases are primarily related to facility leases for administration and sales personnel. The operating leases have terms ranging from three to five years. While each of the leases includes renewal options, the Company has only included the base lease term in its calculation of lease assets and liabilities. The Company does not have any finance leases. Balance sheet information related to operating leases is as follows (in thousands): April 30, 2020 Assets Right of use assets $ 2,053 Liabilities Current lease liabilities 763 Long-term lease liabilities 1,424 Total liabilities $ 2,187 Lease cost information related to operating leases is as follows (in thousands): Year ended April 30, 2020 Lease cost Operating lease cost $ 770 Short-term lease cost 643 Variable lease cost 225 Total lease cost $ 1,638 Lease costs are primarily included in "Sales and marketing" and "General and administrative" expenses in the Company’s consolidated statements of operations. The impact of the Company's leases on consolidated statement of cash flows is presented in the operating activities section, which mainly consisted of cash paid for operating lease liabilities of approximately $1.3 million during fiscal 2020. The Company did not modify any existing leases or execute any new leases during fiscal 2020. Weighted average information associated with the measurement of the Company’s remaining operating lease obligations is as follows: April 30, 2020 Weighted average remaining lease term 3.3 years Weighted average discount rate 3.5 % The following table summarizes the maturity of the Company’s operating lease liabilities as of April 30, 2020 (in thousands): Years ended April 30: 2021 $ 775 2022 702 2023 470 2024 346 2025 20 Thereafter — Total operating lease payments $ 2,313 Less imputed interest (126 ) Total operating lease liabilities $ 2,187 Future minimum lease payments, as defined under the previous lease accounting guidance of ASC Topic 840, under noncancelable operating leases (due to existence of renewal or escalation clauses) with initial or remaining lease terms in excess of one year as of April 30, 2019 are as follows (in thousands): Years ended April 30: 2020 $ 847 2021 790 2022 706 2023 433 2024 317 Thereafter 17 $ 3,110 The Company leases to other tenants a portion of its headquarters building that it owns in Atlanta, Georgia. The leases expire at various dates through March 2025. Lease income is included in "Other, net" in the Company’s consolidated statements of operations and totaled approximately $0.2 million for the year ending April 30, 2020. Lease payments to be received as of April 30, 2020 are as follows (in thousands): Years ended April 30: 2021 $ 165 2022 149 2023 96 2024 98 2025 100 Thereafter 50 $ 658 Future minimum lease rentals receivable under noncancelable, as defined under the previous lease accounting guidance of ASC Topic 840, operating leases (with initial or remaining lease terms in excess of one year) as of April 30, 2019 are as follows (already included or prorated at the Company’s occupied building) (in thousands): Years ended April 30: 2020 $ 194 2021 105 2022 55 2023 — 2024 — Thereafter — $ 354 |
Leases | Leases The Company’s operating leases are primarily related to facility leases for administration and sales personnel. The operating leases have terms ranging from three to five years. While each of the leases includes renewal options, the Company has only included the base lease term in its calculation of lease assets and liabilities. The Company does not have any finance leases. Balance sheet information related to operating leases is as follows (in thousands): April 30, 2020 Assets Right of use assets $ 2,053 Liabilities Current lease liabilities 763 Long-term lease liabilities 1,424 Total liabilities $ 2,187 Lease cost information related to operating leases is as follows (in thousands): Year ended April 30, 2020 Lease cost Operating lease cost $ 770 Short-term lease cost 643 Variable lease cost 225 Total lease cost $ 1,638 Lease costs are primarily included in "Sales and marketing" and "General and administrative" expenses in the Company’s consolidated statements of operations. The impact of the Company's leases on consolidated statement of cash flows is presented in the operating activities section, which mainly consisted of cash paid for operating lease liabilities of approximately $1.3 million during fiscal 2020. The Company did not modify any existing leases or execute any new leases during fiscal 2020. Weighted average information associated with the measurement of the Company’s remaining operating lease obligations is as follows: April 30, 2020 Weighted average remaining lease term 3.3 years Weighted average discount rate 3.5 % The following table summarizes the maturity of the Company’s operating lease liabilities as of April 30, 2020 (in thousands): Years ended April 30: 2021 $ 775 2022 702 2023 470 2024 346 2025 20 Thereafter — Total operating lease payments $ 2,313 Less imputed interest (126 ) Total operating lease liabilities $ 2,187 Future minimum lease payments, as defined under the previous lease accounting guidance of ASC Topic 840, under noncancelable operating leases (due to existence of renewal or escalation clauses) with initial or remaining lease terms in excess of one year as of April 30, 2019 are as follows (in thousands): Years ended April 30: 2020 $ 847 2021 790 2022 706 2023 433 2024 317 Thereafter 17 $ 3,110 The Company leases to other tenants a portion of its headquarters building that it owns in Atlanta, Georgia. The leases expire at various dates through March 2025. Lease income is included in "Other, net" in the Company’s consolidated statements of operations and totaled approximately $0.2 million for the year ending April 30, 2020. Lease payments to be received as of April 30, 2020 are as follows (in thousands): Years ended April 30: 2021 $ 165 2022 149 2023 96 2024 98 2025 100 Thereafter 50 $ 658 Future minimum lease rentals receivable under noncancelable, as defined under the previous lease accounting guidance of ASC Topic 840, operating leases (with initial or remaining lease terms in excess of one year) as of April 30, 2019 are as follows (already included or prorated at the Company’s occupied building) (in thousands): Years ended April 30: 2020 $ 194 2021 105 2022 55 2023 — 2024 — Thereafter — $ 354 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Apr. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies (a) 401(k) Profit Sharing Plan Employees are offered the opportunity to participate in the Company’s 401(k) Profit Sharing Plan (the "401(k) Plan"), which is intended to be a tax-qualified defined contribution plan under Section 401(k) of the Internal Revenue Code. Under the 401(k) Plan, employees are eligible to participate on the first day of the month following the date of hire. Eligible employees may contribute up to $19,500 of their salary to the 401(k) Plan. Subject to certain limitations, the Company may make a discretionary profit sharing contribution at an amount determined by the board of directors of the Company. The Company’s profit sharing contribution was $451,000 for fiscal 2020 , $ 429,000 for fiscal 2019 and $ 330,000 for fiscal 2018 . (b) Contingencies The Company more often than not indemnifies its customers against damages and costs resulting from claims of intellectual property infringement associated with use of the Company’s products. The Company historically has not been required to make any payments under such indemnifications. However, the Company continues to monitor the circumstances that are subject to the indemnifications to identify whether it is probable that a loss has occurred, and would recognize any such losses under the indemnifications when those losses are estimable. In addition, the Company warrants to customers that the Company’s products operate substantially in accordance with the software product’s specifications. Historically, no costs have been incurred related to software product warranties and none are expected in the future, and as such no accruals for software product warranty costs have been made. Additionally, the Company is involved in various claims arising in the ordinary course of business. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on the financial position or results of operations of the Company. |
Segment Information
Segment Information | 12 Months Ended |
Apr. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information FASB ASC 280, Segment Reporting , establishes standards for reporting information about operating segments. Operating segments are defined as components of a public entity about which separate financial information is available that is evaluated regularly by the chief operating decision makers (“CODMs”), or decision making group, in deciding how to allocate resources and in assessing performance. Our CODMs are our Chief Executive Officer and President and our Chief Financial Officer. While our CODMs are apprised of a variety of financial metrics and information, we manage our business primarily on a segment basis, with the CODMs evaluating performance based upon segment operating profit or loss that includes an allocation of common expenses, but excludes certain unallocated corporate expenses, which are included in the Other segment. Our CODMs review the operating results of our three segments, assess performance and allocate resources in a manner that is consistent with the changing market dynamics that we have experienced. As a result, in the third quarter of fiscal 2018, we updated our operating segments to reflect the fact that we provide our software solutions through three major operating segments, which are further broken down into a total of six major product and service groups. The three operating segments are: (1) Supply Chain Management (“SCM”), (2) Information Technology Consulting (“IT Consulting”) and (3) Other. The SCM segment consists of (i) Logility, which provides supply chain optimization and advance retail planning solutions, as an integrated suite of sales and operations planning, demand optimization, inventory optimization, manufacturing planning and scheduling, supply optimization, retail allocation and merchandise planning and transportation optimization, as well as (ii) DMI, which provides collaborative supply chain solutions to streamline and optimize the forecasting, inventory, production, supply, allocation, distribution and management of products between trading partners, and (iii) NGC, which provides cloud solutions for supply chain management, PLM, quality control, vendor compliance and enterprise resource planning for both retailers and manufacturers in the apparel, sewn products and furniture industries. The IT Consulting segment consists of The Proven Method, Inc., an IT staffing and consulting services firm, which provides support for our software products, such as software enhancements, documentation, updates, customer education, consulting, systems integration services, maintenance and support services. The Other segment consists of (i) American Software ERP, which provides purchasing and materials management, customer order processing, financial, e-commerce and traditional manufacturing solutions, and (ii) unallocated corporate overhead expenses. All of our revenues are derived from external customers. We do not have any inter-segment revenue. Our income taxes and dividends are paid at a consolidated level. Consequently, it is not practical to show these items by operating segment. Following is information related to each segment as of and for the years ended April 30, 2020 , 2019 and 2018 , (in thousands): 2020 2019 2018 Revenues: Supply Chain Management $ 95,018 $ 86,296 $ 91,613 IT Consulting 17,997 20,007 18,460 Other 2,451 2,403 2,630 $ 115,466 $ 108,706 $ 112,703 Operating income/(loss): Supply Chain Management $ 19,612 $ 15,967 $ 19,580 IT Consulting 332 964 985 Other (13,896 ) (11,655 ) (7,034 ) $ 6,048 $ 5,276 $ 13,531 Capital expenditures: Supply Chain Management $ 156 $ 375 $ 263 IT Consulting — 1 10 Other 264 876 1,155 $ 420 $ 1,252 $ 1,428 Capitalized software: Supply Chain Management $ 3,170 $ 5,961 $ 4,804 IT Consulting — — — Other — — — $ 3,170 $ 5,961 $ 4,804 Depreciation and amortization: Supply Chain Management $ 7,727 $ 7,372 $ 5,827 IT Consulting 5 7 7 Other 371 340 196 $ 8,103 $ 7,719 $ 6,030 Interest income: Supply Chain Management $ 829 $ 1,408 $ 1,043 IT Consulting — — — Other 695 684 532 $ 1,524 $ 2,092 $ 1,575 Earnings/(loss) before income taxes: Supply Chain Management $ 19,855 $ 16,335 $ 20,026 IT Consulting 332 964 985 Other (13,389 ) (9,658 ) (5,296 ) $ 6,798 $ 7,641 $ 15,715 April 30, April 30, (in thousands) Total Consolidated Assets: Supply Chain Management $ 117,135 $ 112,604 IT Consulting 5,200 4,599 Other 48,958 44,107 $ 171,293 $ 161,310 International Revenue and Significant Customer International revenues approximated $22.1 million or 19% , $21.4 million or 20% , and $21.8 million or 19% , of consolidated revenues for the years ended April 30, 2020 , 2019 , and 2018 , respectively, and were derived primarily from customers in Canada and Europe. International revenue is based on the delivery of software and performance of services. No single customer accounted for more than 10% of total revenues for the years ended April 30, 2020 , 2019 and 2018. |
Financial Statements and Supple
Financial Statements and Supplementary Data (Unaudited) | 12 Months Ended |
Apr. 30, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Financial Statements and Supplementary Data (Unaudited) | Financial Statements and Supplementary Data (Unaudited) The following schedule presents results for each quarter in the years ended April 30, 2020 and 2019 (in thousands, except per share amounts): Total revenues Gross margin Operating income Net earnings Diluted earnings per share* Quarter ended: July 31, 2019 $ 27,383 $ 14,622 $ 797 $ 1,152 $ 0.04 October 31, 2019 28,210 15,186 843 1,759 0.05 January 31, 2020 30,600 17,442 2,819 3,286 0.10 April 30, 2020 29,273 15,908 1,589 545 0.02 Year ended April 30, 2020 $ 115,466 $ 63,158 $ 6,048 $ 6,742 $ 0.21 Quarter ended: July 31, 2018 $ 27,399 $ 13,752 $ 607 $ 1,385 $ 0.04 October 31, 2018 28,033 14,667 1,526 1,243 0.04 January 31, 2019 27,003 14,039 2,130 2,301 0.07 April 30, 2019 26,271 14,282 1,013 1,874 0.06 Year ended April 30, 2019 $ 108,706 $ 56,740 $ 5,276 $ 6,803 $ 0.22 ______________ * Table may contain rounding |
Subsequent Events
Subsequent Events | 12 Months Ended |
Apr. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On May 20, 2020, our Board of Directors declared a quarterly cash dividend of $0.11 per share of our Class A and Class B common stock. The cash dividend is payable on August 28, 2020 to Class A and Class B shareholders of record at the close of business on August 14, 2020 . |
CONSOLIDATED VALUATION ACCOUNTS
CONSOLIDATED VALUATION ACCOUNTS | 12 Months Ended |
Apr. 30, 2020 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
CONSOLIDATED VALUATION ACCOUNTS | AMERICAN SOFTWARE, INC. CONSOLIDATED VALUATION ACCOUNTS Years ended April 30, 2020 , 2019 , 2018 (In thousands) Allowance for Doubtful Accounts Year ended: Balance at beginning of year Amounts charged to expense Other Additions (1) Deductions (2) Balance at end of year April 30, 2020 $ 153 97 14 — 264 April 30, 2019 $ 159 — — 6 153 April 30, 2018 $ 171 24 — 36 159 _______________ (1) Recovery of previously written-off amounts. (2) Write-off of uncollectible accounts. Deferred Income Tax Valuation Allowance The deferred tax valuation allowance roll-forward is included in Item 8 of this Report in the Notes to Consolidated Financial Statements—Note 5. See accompanying report of independent registered public accounting firm. |
Presentation and Summary of S_2
Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Apr. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation Founded in 1970 and headquartered in Atlanta, Georgia, American Software, Inc. and its subsidiaries (collectively, the “Company”) are engaged in the development, marketing, and support activities of a broad range of computer business application software products. The Company’s operations are principally in the computer software industry, and its products and services are used by customers within the United States and certain international markets. We provide our software solutions through three major business segments, which are further broken down into a total of six major product and service groups. The three operating segments are: (1) Supply Chain Management (“SCM”), (2) Information Technology Consulting (“IT Consulting”) and (3) Other. • The SCM segment consists of Logility, Inc. (see Note 8), which provides collaborative supply chain solutions to streamline and optimize the production, distribution and management of products between trading partners, as well as Demand Management, Inc. and New Generation Computing, Inc., wholly-owned subsidiaries of Logility and American Software, Inc., respectively. • The IT Consulting segment consists of The Proven Method, Inc., an IT staffing and consulting services firm. • The Other segment consists of (i) American Software ERP, which provides purchasing and materials management, customer order processing, financial, e-commerce and traditional manufacturing solutions, and (ii) unallocated corporate overhead expenses. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of American Software, Inc. and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. |
Revenue Recognition | Revenue Recognition In accordance with the FASB issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) , we recognize revenue when we transfer control of the promised goods or services to our customers, in an amount that reflects the consideration we expect to receive in exchange for those goods or services. We derive our revenue from software licenses, maintenance services, consulting, implementation and training services, and Software-as-a-Service (“SaaS”), which includes a subscription to our software as well as support, hosting and managed services. The Company determines revenue recognition through the following steps: Step 1 - Identification of the Contract with the Customer Step 2 - Identification of Promised Goods and Services and Evaluation of Whether the Promised Goods and Services are Distinct Performance Obligations Step 3 - Determination of the Transaction Price Step 4 - Allocation of the Transaction Price to Distinct Performance Obligations Step 5 - Attribution of Revenue for Each Distinct Performance Obligation Nature of Products and Services. License. Our perpetual software licenses provide the customer with a right to use the software as it exists at the time of purchase. We recognize revenue for distinct software licenses once the license period has begun and we have made the software available to the customer. Our perpetual software licenses are sold with maintenance under which we provide customers with telephone consulting, product updates on a when and if available basis, and releases of new versions of products previously purchased by the customer, as well as error reporting and correction services. Subscription. Subscription fees include Software-as-a-Service ("SaaS") revenues for the right to use the software for a limited period of time in an environment hosted by the Company or by a third party. The customer accesses and uses the software on an as needed basis over the Internet or via a dedicated line; however, the customer has no right to take delivery of the software. The underlying arrangements typically include a single fee for the service that is billed monthly, quarterly or annually. The Company’s SaaS solutions represent a series of distinct services that are substantially the same and have the same pattern of transfer to the customer. Revenue from a SaaS solution is generally recognized ratably over the term of the arrangement. Professional Services and Other. Our professional services revenue consists of fees generated from consulting, implementation and training services, including reimbursements of out-pocket expenses in connection with our services. These services are typically optional to our customers, and are distinct from our software. Fees for our professional services are separately priced and are generally billed on an hourly basis, and revenue is recognized over time as the services are performed. We believe the output method of hours worked provides the best depiction of the transfer of our services since the customer is receiving the benefit from our services as the work is performed. Reimbursements received from customers for out-of-pocket expenses were recorded in revenues and totaled approximately $1.5 million , $1.4 million , and $1.9 million for 2020 , 2019 and 2018 , respectively. Maintenance and Support. Revenue is derived from maintenance and support services, under which we provide customers with telephone consulting, product updates on a when and if available basis, and releases of new versions of products previously purchased by the customer, as well as error reporting and correction services. Maintenance for perpetual licenses is renewable, generally on an annual basis, at the option of the customer. Maintenance terms typically range from one to three years . Revenue related to maintenance is generally paid in advance and recognized ratably over the term of the agreement since the Company is standing ready to provide a series of maintenance services that are substantially the same each period over the term; therefore, time is the best measure of progress. Support services for subscriptions are included in the subscription fees and are recognized as a component of such fees. Indirect Channel Revenue. We record revenues from sales made through the indirect sales channels on a gross basis, because we control the goods or services and act as the principal in the transaction. In reaching this determination, we evaluate sales through our indirect channel on a case-by-case basis and consider a number of factors including indicators of control such as the party having the primary responsibility to provide specified goods or services, and the party having discretion in establishing prices. Sales Taxes. We account for sales taxes collected from customers on a net basis . Significant Judgments. Many of our contracts include multiple performance obligations. Our products and services generally do not require a significant amount of integration or interdependency; therefore, our products and services are generally not combined. We allocate the transaction price for each contract to each performance obligation based on the relative standalone selling price (SSP) for each performance obligation within each contract. We use judgment in determining the SSP for products and services. For substantially all performance obligations except on-premise licenses, we are able to establish SSP based on the observable prices of products or services sold separately in comparable circumstances to similar customers. We typically establish an SSP range for our products and services which is reassessed on a periodic basis or when facts and circumstances change. Our on-premise licenses have not historically been sold on a standalone basis, as the vast majority of all customers elect to purchase on-premise license support contracts at the time of a on-premise license purchase. Support contracts are generally priced as a percentage of the net fees paid by the customer to access the on-premise license. We are unable to establish the SSP for our on-premise licenses based on observable prices given the same products are sold for a broad range of amounts (that is, the selling price is highly variable) and a representative SSP is not discernible from past transactions or other observable evidence. As a result, the SSP for a on-premise license included in a contract with multiple performance obligations is determined by applying a residual approach whereby all other performance obligations within a contract are first allocated a portion of the transaction price based upon their respective SSPs, with any residual amount of transaction price allocated to on-premise license revenues Contract Balances. Timing of invoicing to customers may differ from timing of revenue recognition and these timing differences result in unbilled accounts receivables or contract liabilities (deferred revenue) on the Company’s consolidated balance sheets. Fees for our software licenses are generally due within 30 days of contract execution. We have an established history of collecting under the terms of our software license contracts without providing refunds or concessions to our customers. SaaS solutions and maintenance are typically billed in advance on a monthly, quarterly, or annual basis. Services are typically billed as performed. In instances where the timing of revenue recognition differs from the timing of invoicing, we have determined that our contracts generally do not include a significant financing component. The primary purpose of our invoicing terms is to provide customers with predictable ways to purchase our software and services, not to provide or receive financing. Additionally, we are applying the practical expedient to exclude any financing component from consideration for any contracts with payment terms of one year or less since we rarely offer terms extending beyond one year. The consideration in our customer contracts is fixed. We have an unconditional right to consideration for all goods and services transferred to our customers. That unconditional right to consideration is reflected in billed and unbilled accounts receivable in the accompanying consolidated balance sheets in accordance with ASC Topic 606. Deferred revenue consists of amounts collected prior to having completed the performance of maintenance, SaaS, hosting, and managed services. We typically invoice customers for cloud subscription and support fees in advance on a monthly, quarterly or annual basis, with payment due at the start of the cloud subscription or support term. During the twelve months ended April 30, 2020, the Company recognized $31.0 million of revenue that was included in the deferred revenue balance as of April 30, 2019. Years ended April 30, 2020 2019 in thousands Deferred revenue, current $ 34,227 $ 33,283 Deferred revenue, long-term — — Total deferred revenue $ 34,227 $ 33,283 Remaining Performance Obligations. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account under Topic 606. The transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied by transferring the promised good or service to the customer. The Company identifies and tracks the performance obligations at contract inception so that the Company can monitor and account for the performance obligations over the life of the contract. Remaining performance obligations represent the transaction price of orders for which products have not been delivered or services have not been performed. As of April 30, 2020 , the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $77.0 million . The Company expects to recognize revenue on approximately 60% of the remaining performance obligations over the next 12 months, with the remainder recognized thereafter. Disaggregated Revenue. The Company disaggregates revenue from contracts with customers by geography, as it believes it best depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. The Company’s revenue by geography is as follows: Years ended April 30, 2020 2019 in thousands Revenues: Domestic $ 93,332 $ 87,316 International 22,134 21,390 $ 115,466 $ 108,706 Practical Expedients and Exemptions. There are several practical expedients and exemptions allowed under Topic 606 that impact the timing of revenue recognition and the Company’s disclosures. Below is a list of practical expedients the Company applies in the application of Topic 606: • The Company does not evaluate a contract for a significant financing component if payment is expected within one year or less from the transfer of the promised items to the customer. • The Company does not disclose the value of unsatisfied performance obligations for contracts for which the Company recognizes revenue at the amount to which it has the right to invoice for services performed (this applies to time-and-material engagements). Contract Costs. The Company capitalizes the incremental costs of obtaining a contract with a customer if the Company expects to recover those costs. The incremental costs of obtaining a contract are those that the Company incurs to obtain a contract with a customer that it would not have incurred if the contract had not been obtained (for example, a sales commission). The Company capitalizes the costs incurred to fulfill a contract only if those costs meet all of the following criteria: • The costs relate directly to a contract or to an anticipated contract that the Company can specifically identify. • The costs generate or enhance resources of the Company that will be used in satisfying (or in continuing to satisfy) performance obligations in the future. • The costs are expected to be recovered. Certain sales commissions incurred by the Company were determined to be incremental costs to obtain the related contracts, which are deferred and amortized ratably over the economic benefit period for license and term subscriptions. These deferred commission costs are classified as current or non-current based on the timing of when the Company expects to recognize the expense. The current and non-current portions of deferred commissions are included in prepaid expenses and other current assets and d eferred sales commissions in long-term assets, respectively, in the Company’s consolidated balance sheets. Total deferred commissions at April 30, 2020 and April 30, 2019 were $3.5 million and $2.3 million , respectively. Amortization of sales commissions was $2.1 million for year ended April 30, 2020, which is included in sales and marketing expense in the accompanying consolidated statements of operations. During the fiscal 2020 and 2019 impairment analyses, no losses were recognized. Unbilled Accounts Receivable. The unbilled receivable balance consists of amounts generated from license fee and services revenues. At April 30, 2020 and 2019 , unbilled license fees were approximately $1.3 million and $0.4 million , respectively, and unbilled services revenues were approximately $1.1 million and $1.1 million , respectively. Unbilled license fee accounts receivable represents revenue that has been recognized but under the terms of the license agreements, which include specified payment terms that are considered normal and customary, certain payments have not yet been invoiced to the customers. Unbilled services revenues primarily occur due to the timing of the billings, which occur subsequent to the end of each reporting period. (d) Cost of Revenues Cost of revenues for licenses includes amortization of developed technology and capitalized computer software development costs, salaries and benefits and value-added reseller ("VAR") commissions. Costs for maintenance and services revenues include the cost of personnel to conduct implementations, customer support and consulting, and other personnel-related expenses as well as agent commission expenses related to maintenance revenues generated by the indirect channel. Costs for subscriptions revenues include amortization of developed technology and capitalized computer software development costs, third–party hosting costs, salaries and benefits and value–added reseller ("VAR") commissions. Commission costs for maintenance are deferred and amortized over the related maintenance term. Commission costs for subscriptions are deferred and amortized over the related subscription term. Returns and Allowances The Company has not experienced significant returns or warranty claims to date and, as a result, the allowance for the cost of returns and product warranty claims at April 30, 2020 and 2019 is not material. The Company records an allowance for doubtful accounts based on the historical experience of write-offs and a detailed assessment of accounts receivable. The total amounts of expense to operations were approximately $97,000 , $0 , and $24,000 for fiscal 2020 , 2019 , and 2018 , respectively, which are included in general and administrative expenses in the accompanying consolidated statements of operations. In estimating the allowance for doubtful accounts, management considers the age of the accounts receivable, the Company’s historical write-offs, and the credit worthiness of the customer, among other factors. Should any of these factors change, the estimates made by management will also change accordingly, which could affect the level of the Company’s future provision for doubtful accounts. Uncollectible accounts are written off when it is determined that the specific balance is not collectible. |
Cash Equivalents | Cash Equivalents Cash equivalents of $75.3 million and $56.6 million at April 30, 2020 and 2019 , respectively, consist of overnight repurchase agreements and money market deposit accounts. The Company considers all such investments with original maturities of three months or less to be cash equivalents for purposes of the consolidated statements of cash flows. (f) Concent |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and cash equivalents, short- and long-term investments and accounts receivable. The Company maintains cash and cash equivalents and short- and long-term investments with various financial institutions. The Company’s sales are primarily to companies located in North America and Europe. The Company performs periodic credit evaluations of its customers’ financial condition and does not require collateral. Accounts receivable are due principally from companies under stated contract terms. |
Investments | Investments Investments consist of commercial paper, corporate bonds, government securities, certificates of deposits and marketable equity securities. The Company accounts for its investments in accordance with the Investments – Debt Securities (Topic 320) and Investments—Equity Securities (Topic 321). The Company has classified its investment portfolio as “trading.” “Trading” securities are bought and held principally for the purpose of selling them in the near term and are recorded at fair value. Unrealized gains and losses on trading securities are included in the determination of net earnings. For the purposes of computing realized gains and losses, cost is identified on a specific identification basis. Investments with maturities less than one year as of the balance sheet date are classified as short-term investments and those that mature greater than one year are classified as long-term investments. |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost, less accumulated depreciation and amortization. Depreciation of buildings, computer equipment, purchased computer software, office furniture and equipment is calculated using the straight-line method based upon the estimated useful lives of the assets ( three years for computer equipment and software, seven years for office furniture and equipment, fifteen years for building improvements and thirty years for buildings). Leasehold improvements are amortized using the straight-line method over the estimated useful lives of the assets or the related lease term, whichever is shorter. |
Capitalized Computer Software Development Costs | Capitalized Computer Software Development Costs The Company capitalizes certain computer software development costs in accordance with the Costs of Software to be Sold, Leased or Marketed under ASC 985-20. Costs incurred internally to create a computer software product or to develop an enhancement to an existing product are charged when incurred as research and development expense until technological feasibility for the respective product is established. Thereafter, software development costs are capitalized and reported at the lower of unamortized cost or net realizable value. Capitalization ceases when the product or enhancement is available for general release to customers. The Company makes ongoing evaluations of the recoverability of its capitalized software projects by comparing the net amount capitalized for each product to the estimated net realizable value of the product. If such evaluations indicate that the unamortized software development costs exceed the net realizable value, the Company writes off the amount by which the unamortized software development costs exceed net realizable value. Capitalized computer software development costs are amortized ratably based on the projected revenues associated with the related software or on a straight-line basis over three years, whichever method results in a higher level of amortization. Amortization of capitalized computer software development costs is included in the cost of license and subscription revenues in the consolidated statements of operations. |
Acquisition-Related Intangible Assets (exclusive of Logility's treasury stock repurchases) | Acquisition-Related Intangible Assets (exclusive of Logility’s treasury stock repurchases) Acquisition-related intangible assets are stated at historical cost and include acquired software and certain other intangible assets with definite lives. Intangible assets are being amortized over a period ranging from one to eight years . For 2020 , total amortization expense related to acquisition-related intangible assets was approximately $1.6 million , with $0.3 million included in operating expense and $1.3 million included in cost of license fees in the accompanying consolidated statements of operations. For 2019 , total amortization expense related to acquisition-related intangible assets was approximately $2.4 million , with $0.4 million included in operating expense and $2.0 million included in cost of license fees in the accompanying consolidated statements of operations. For 2018 , total amortization expense related to acquisition-related intangible assets was approximately $1.8 million , with $0.6 million included in operating expense and $1.2 million included in cost of license fees in the accompanying consolidated statements of operations. |
Goodwill and Other Intangibles | Goodwill and Other Intangibles Goodwill represents the excess of costs over fair value of assets of businesses acquired. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but instead are tested for impairment at least annually in accordance with the FASB issued Accounting Standards Update (“ASU”) No.2017-04 Intangibles-Goodwill and Other (Topic 350) . The Company evaluates the carrying value of goodwill annually and between annual evaluations if events occur or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying amount. Such circumstances could include, but are not limited to, (1) a significant adverse change in legal factors or in business climate, (2) unanticipated competition, or (3) an adverse action or assessment by a regulator. When evaluating whether the goodwill is impaired, the Company compares the fair value of the reporting unit to which the goodwill is assigned to its carrying amount, including goodwill. The Company identifies the reporting unit on a basis that is similar to its method for identifying operating segments as defined by the Segment Reporting Topic of the FASB ASC. If the carrying amount of a reporting unit exceeds its fair value, then the amount of the impairment loss must be measured. This evaluation is applied annually on each impairment testing date (April 30) unless there is a triggering event present during an interim period. For the years ended April 30, 2020 and 2019 , the Company performed a qualitative assessment based on economic, industry and company-specific factors as the initial step in the annual goodwill impairment test for all reporting units. Based on the results of the qualitative assessment, companies are only required to perform Step 1 of the annual impairment test for a reporting unit if the company concludes that it is more likely than not that the unit’s fair value is less than its carrying amount. To the extent the Company concludes it is more likely than not that a reporting unit’s estimated fair value is less than its carrying amount, the two-step approach is applied. The first step would require a comparison of each reporting unit’s fair value to the respective carrying value. If the carrying value exceeds the fair value, a second step is performed to measure the amount of impairment loss, if any. The Company did not identify any macroeconomic or industry conditions as of April 30, 2020 , that would indicate the fair value of the reporting units were more likely than not to be less than their respective carrying values. If circumstances change or events occur to indicate it is more likely than not that the fair value of any reporting units have fallen below their carrying value, the Company would test such reporting unit for impairment. Intangible assets with estimable useful lives are required to be amortized over their respective estimated useful lives to their estimated residual values, and reviewed for impairment in accordance with the (ASU) No. 2011-10, Property, Plant and Equipment (Topic 360). |
Income Taxes | Income Taxes The Company accounts for income taxes using the asset and liability method. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), and the related amendments, which replaced the previous revenue recognition guidance. The Company adopted this revenue standard effective May 1, 2018 using the modified retrospective transition method. Under this method, the Company elected to apply the cumulative effect method to contracts that are not complete as of the adoption date. The Company’s total revenue impact was $1.2 million , with approximately 70% impacting the fiscal year ending April 30, 2019, which is the result of recognizing revenue for the license component of its term licenses and certain perpetual license contracts that were previously recognized over time due to the lack of vendor-specific objective evidence (VSOE) of fair value at the point in time at which control of the software license is transferred to the customer. In addition, under this standard, the Company will capitalize a portion of sales commission expenses and recognize them ratably over the associated period of economic benefit, which the Company has determined to be six years, which had an impact of $1.1 million . As a result, the cumulative impact due to the adoption of the revenue standard on the opening consolidated balance sheet was an increase in opening retained earnings, with a corresponding increase in unbilled accounts receivable and a decrease in deferred revenue. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), and the related amendments, to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. Under the new guidance, a lessee is required to recognize assets and liabilities for leases with lease terms of more than 12 months. The Company adopted ASU 2016-02 as of May 1, 2019 using the modified retrospective approach, which allows the Company to apply Accounting Standards Codification (ASC) 840, Leases, in the comparative periods presented in the year of adoption. Accordingly, the comparative periods and disclosures have not been restated. The cumulative effect of adoption was recorded as an adjustment to the opening balance sheet in the period of adoption. As part of the adoption of ASC 842, the Company elected to adopt certain of the optional practical expedients, including the package of practical expedients which, among other things, gives us the option to not reassess: 1) whether expired or existing contracts are or contain leases; 2) the lease classification for expired or existing leases; and 3) initial direct costs for existing leases. The Company also elected the practical expedient to not record lease right-of-use (“ROU”) assets and lease obligations for leases with terms of 12 months or less. Finally, the Company also elected the practical expedient to not separate lease and non-lease components, which allows it to account for lease and non-lease components as a single lease component. The Company did not elect the hindsight practical expedient in its determination of the lease term for existing leases; therefore, the original lease terms, as determined under ASC 840, were used in the calculation of the Company’s initial ASC 842 lease liabilities. Adoption of the new standard resulted in the recognition of operating lease ROU assets of approximately $2.7 million , current operating lease liabilities of approximately $0.7 million and long-term operating lease liabilities of approximately $2.1 million as of May 1, 2019. The adoption had no impact on retained deficit, the consolidated statements of operations, or the consolidated statements of cash flows. See Note 7 for further discussion of the Company’s leases. Recent Accounting Pronouncements Not Yet Adopted In January 2017, the FASB issued ASU 2017–04, Intangibles—Goodwill and Other (Topic 350) : Simplifying the Test for Goodwill Impairment, which simplifies the subsequent measurement of goodwill to eliminate Step 2 from the goodwill impairment test. In addition, it eliminates the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. Therefore, the same impairment assessment applies to all reporting units. ASU 2017–04 will be effective for the Company’s fiscal year beginning May 1, 2020. The new guidance is required to be applied on a prospective basis. The Company does not believe adoption of ASU 2017–04 will have a material impact on its consolidated financial statements. |
Use of Estimates | Use of Estimates The preparation of these consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosures of contingent assets and liabilities, at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, we evaluate our estimates, including, but not limited to, those related to revenue/reserves and allowances. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Our actual results could differ materially from these estimates under different assumptions or conditions. |
Stock-Based Compensation | Stock-Based Compensation The Company has one stock-based employee compensation plan under which options to purchase common stock of the Company were outstanding as of April 30, 2020 . This plan is described more fully in Note 6. The Company recorded stock option compensation cost of approximately $2.0 million , $1.8 million and $1.5 million and related income tax benefit of approximately $0.7 million , an income tax benefit of approximately $0.3 million , and an income tax shortfall of approximately $39,000 for the years ended April 30, 2020 , April 30, 2019 and 2018 , respectively. Stock-based compensation expense is recorded on a straight-line basis over the vesting period for the entire award directly to additional paid-in capital. |
Comprehensive Income | Comprehensive Income Accounting Standards Update (ASU) 2018-02, Comprehensive Income (Topic 220), establishes standards for reporting and presentation of comprehensive income and its components in a full set of financial statements. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company reviews long-lived assets, such as property, and equipment, and purchased intangibles subject to amortization, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. Assets to be disposed of by sale would be separately presented in the consolidated balance sheet and reported at the lower of the carrying amount or fair value less costs to sell, and are no longer depreciated. The assets and liabilities of a group classified as held for sale would be presented separately in the appropriate asset and liability sections of the consolidated balance sheet. |
Earnings per Common Share | Earnings per Common Share The Company has two classes of common stock. Class B common shares are convertible into Class A common shares at any time, on a one-for-one basis. Under the Company’s Articles of Incorporation, if dividends are declared, holders of Class A common shares shall receive a $.05 dividend per share prior to the Class B common shares receiving any dividend and holders of Class A common shares shall receive a dividend at least equal to Class B common shares dividends on a per share basis. As a result, the Company has computed the earnings per share in compliance with the Earnings Per Share Topic of the FASB ASC, which requires companies that have multiple classes of equity securities to use the “two-class” method in computing earnings per share. For the Company’s basic earnings per share calculation, the Company uses the “two-class” method. Basic earnings per share are calculated by dividing net earnings attributable to each class of common stock by the weighted average number of shares outstanding. All undistributed earnings are allocated evenly between Class A and B common shares in the earnings per share calculation to the extent that earnings equal or exceed $.05 per share. This allocation is based on management’s judgment after considering the dividend rights of the two-classes of common stock, the control of the Class B shareholders and the convertibility rights of the Class B shares to Class A shares. If Class B shares convert to Class A shares during the period, the distributed net earnings for Class B shares is calculated using the weighted average common shares outstanding during the period. Diluted earnings per share is calculated similarly to basic earnings per share, except that the calculation includes the dilutive effect of the assumed exercise of options issuable under the Company’s stock incentive plans. For the Company’s diluted earnings per share calculation for Class A shares, the Company uses the “if-converted” method. This calculation assumes that all Class B common shares are converted into Class A common shares and, as a result, assumes there are no holders of Class B common shares to participate in undistributed earnings. For the Company’s diluted earnings per share calculation for Class B shares, the Company uses the “two-class” method. This calculation does not assume that all Class B common shares are converted into Class A common shares. In addition, this method assumes the dilutive effect of Class A stock options were converted to Class A shares and the undistributed earnings are allocated evenly to both Class A and B shares including Class A shares issued pursuant to those converted stock options. This allocation is based on management’s judgment after considering the dividend rights of the two-classes of common stock, the control of the Class B shareholders and the convertibility rights of the Class B shares into Class A shares. |
Advertising | Advertising All advertising costs are expensed as incurred. Advertising expenses, which are included within sales and marketing expenses, were $2.9 million , $2.3 million and $2.4 million in fiscal 2020 , 2019 and 2018 , respectively. |
Guarantees and Indemnifications | Guarantees and Indemnifications The Company accounts for guarantees in accordance with the Guarantee Topic of the FASB ASC . The Company’s sales agreements with customers generally contain infringement indemnity provisions. Under these agreements, the Company agrees to indemnify, defend and hold harmless the customer in connection with intellectual property infringement claims made by third parties with respect to the customer’s authorized use of the Company’s products and services. The indemnity provisions generally provide for the Company’s control of defense and settlement and cover costs and damages finally awarded against the customer, as well as the Company’s modification of the product so it is no longer infringing or, if it cannot be corrected, return of the product for a refund. The sales agreements with customers sometimes also contain indemnity provisions for death, personal injury or property damage caused by the Company’s personnel or contractors in the course of performing services to customers. Under these agreements, the Company agrees to indemnify, defend and hold harmless the customer in connection with death, personal injury and property damage claims made by third parties with respect to actions of the Company’s personnel or contractors. The indemnity provisions generally provide for the Company’s control of defense and settlement and cover costs and damages finally awarded against the customer. The indemnity obligations contained in sales agreements generally have a limited monetary award. The Company has not previously incurred costs to settle claims or pay awards under these indemnification obligations. The Company accounts for these indemnity obligations in accordance with the Contingencies Topic of the FASB ASC, and records a liability for these obligations when a loss is probable and reasonably estimable. The Company has not recorded any liabilities for these agreements as of April 30, 2020 or 2019 . The Company warrants to its customers that its software products will perform in all material respects in accordance with the standard specifications, generally for 90 days after delivery of the licensed products and for the subscription term for SaaS products. Additionally, the Company warrants to its customers that services will be performed consistent with generally accepted industry standards or specific service levels through completion of the agreed upon services. If necessary, the Company will provide for the estimated cost of product and service warranties based on specific warranty claims and claim history. However, the Company has not incurred significant recurring expense under product or service warranties. |
Industry Segments | Industry Segments The Company operates and manages its business in three reportable segments. See Note 8 of the Consolidated Financial Statements. |
Presentation and Summary of S_3
Presentation and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Apr. 30, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Contract Balances | Years ended April 30, 2020 2019 in thousands Deferred revenue, current $ 34,227 $ 33,283 Deferred revenue, long-term — — Total deferred revenue $ 34,227 $ 33,283 |
Schedule of Disaggregated Revenue | The Company’s revenue by geography is as follows: Years ended April 30, 2020 2019 in thousands Revenues: Domestic $ 93,332 $ 87,316 International 22,134 21,390 $ 115,466 $ 108,706 |
Total Expenditures and Amortization of Capitalized Computer Software | Total expenditures for capitalized computer software development costs, total research and development expense, and total amortization of capitalized computer software development costs are as follows: Years ended April 30, 2020 2019 2018 (in thousands) Total capitalized computer software development costs $ 3,170 $ 5,961 $ 4,804 Total research and development expense 15,348 13,078 11,877 Total research and development expense and capitalized computer software-development costs $ 18,518 $ 19,039 $ 16,681 Total amortization of capitalized computer software development costs $ 5,871 $ 4,627 $ 3,690 |
Capitalized Computer Software Development Costs | Capitalized computer software development costs consist of the following at April 30, 2020 and 2019 (in thousands): 2020 2019 Capitalized computer software development costs $ 42,973 $ 39,803 Accumulated amortization (34,611 ) (28,740 ) $ 8,362 $ 11,063 |
Expected Amortization Expense | The Company expects amortization expense for the next five years to be as follows based on intangible assets as of April 30, 2020 (in thousands): 2021 $ 772 2022 212 2023 52 2024 38 2025 38 Thereafter 20 $ 1,132 Of the Company’s capitalized software projects that are currently completed and being amortized, the Company expects amortization expense for the next three years to be as follows (in thousands): 2021 $ 3,437 2022 2,222 2023 197 $ 5,856 |
Acquisition-Related Intangible Assets | Acquisition-Related Intangible Assets consist of the following at April 30, 2020 and 2019 (in thousands): Weighted Average Amortization in Years 2020 2019 Current technology 3 $ 6,000 $ 6,000 Customer relationships 8 1,700 1,700 Non-compete 3 100 100 Trademarks 3 340 340 8,140 8,140 Accumulated amortization (7,008 ) (5,408 ) $ 1,132 $ 2,732 |
Goodwill | Goodwill consisted of the following by segment (in thousands): Supply Chain Management* IT Consulting Other Total Balance at April 30, 2018 $ 25,888 $ — $ — $ 25,888 Balance at April 30, 2019 25,888 — — 25,888 Balance at April 30, 2020 $ 25,888 $ — $ — $ 25,888 * Goodwill related to Logility, Inc., New Generation Computing, Inc., Demand Management, Inc. and their acquisitions. |
Intangible Assets (Including Acquisition-Related Intangible Assets) | Intangible Assets (including Acquisition-Related Intangible Assets) consisted of the following by segment (in thousands): IT Consulting Other Total Balance at April 30, 2018 $ 5,120 $ — $ — $ 5,120 Amortization expense (2,388 ) — — (2,388 ) Balance at April 30, 2019 2,732 — — 2,732 Amortization expense (1,600 ) — — (1,600 ) Balance at April 30, 2020 $ 1,132 $ — $ — $ 1,132 |
Basic Earnings per Common Share | The following tables set forth the computation of basic earnings per common share and diluted earnings per common share (in thousands except for per share amounts). See Note 6 for total stock options outstanding and potential dilution: Basic earnings per common share: Year Ended Year Ended Year Ended Class A Common Shares Class B Common Shares Class A Common Shares Class B Common Shares Class A Common Shares Class B Common Shares Distributed earnings per share $ 0.44 $ 0.44 $ 0.44 $ 0.44 $ 0.44 $ 0.43 Undistributed earnings/(loss) per share (0.23 ) (0.23 ) (0.22 ) (0.22 ) (0.04 ) (0.04 ) Total per share $ 0.21 $ 0.21 $ 0.22 $ 0.22 $ 0.40 $ 0.39 Distributed earnings $ 13,219 $ 805 $ 12,837 $ 819 $ 12,321 $ 974 Undistributed earnings/(loss) (6,864 ) (418 ) (6,441 ) (412 ) (1,151 ) (91 ) Total $ 6,355 $ 387 $ 6,396 $ 407 $ 11,170 $ 883 Basic weighted average common shares 29,925 1,822 29,106 1,844 27,805 2,275 |
Diluted Earnings Per Share for Class A Common Shares Using If-Converted Method | Diluted EPS for Class A common shares using the If-Converted Method Year Ended April 30, 2020 Undistributed and distributed earnings to Class A Common Shares Class A Common Shares EPS* Per basic $ 6,355 29,925 $ 0.21 Common stock equivalents — 620 6,355 30,545 0.21 Class B Common Share Conversion 387 1,822 Diluted EPS for Class A Common Shares $ 6,742 32,367 $ 0.21 Year Ended April 30, 2019 Undistributed and distributed earnings to Class A Common Shares Class A Common Shares EPS* Per basic $ 6,396 29,106 $ 0.22 Common stock equivalents — 429 6,396 29,535 0.22 Class B Common Share Conversion 407 1,844 Diluted EPS for Class A Common Shares $ 6,803 $ 31,379 $ 0.22 Year Ended April 30, 2018 Undistributed and distributed earnings to Class A Common Shares Class A Common Shares EPS* Per basic $ 11,170 27,805 $ 0.40 Common stock equivalents — 392 11,170 28,197 0.40 Class B Common Share Conversion 883 2,275 Diluted EPS for Class A Common Shares $ 12,053 $ 30,472 $ 0.40 |
Diluted Earnings Per Share for Class B Common Shares Using Two-Class Method | Diluted EPS for Class B common shares using the Two-Class Method Year Ended April 30, 2020 Undistributed and distributed earnings to Class B Common Shares Class B Common Shares EPS* Per basic $ 387 1,822 0.21 Reallocation of undistributed earnings from Class A Common Shares to Class B Common Shares 5 — Diluted EPS for Class B Common Shares $ 392 1,822 0.22 Year Ended April 30, 2019 Undistributed and distributed earnings to Class B Common Shares Class B Common Shares EPS* Per basic $ 407 1,844 0.22 Reallocation of undistributed earnings from Class A Common Shares to Class B Common Shares 2 — Diluted EPS for Class B Common Shares $ 409 1,844 0.22 Year Ended April 30, 2018 Undistributed and distributed earnings to Class B Common Shares Class B Common Shares EPS* Per basic $ 883 2,275 0.39 Reallocation of undistributed earnings from Class A Common Shares to Class B Common Shares — — Diluted EPS for Class B Common Shares $ 883 2,275 0.39 _______________ * Amounts adjusted for rounding |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Apr. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments consist of the following (in thousands): April 30, 2020 2019 Trading: Debt securities—Tax-exempt state and municipal bonds $ 3,104 $ 16,192 Marketable equity securities 11,758 11,002 $ 14,862 $ 27,194 |
Contractual Maturities of Debt Securities Classified as Trading | The contractual maturities of debt securities classified as trading at April 30, 2020 and 2019 were as follows (in thousands): 2020 2019 Due within one year $ 2,403 $ 13,708 Due within two years 701 2,484 Due within three years — — Due after three years — — $ 3,104 $ 16,192 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Apr. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table presents our assets that we measured at fair value on a recurring basis and indicates the fair value hierarchy of the valuation techniques we utilized to determine such fair value (in thousands): April 30, 2020 April 30, 2019 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Cash equivalents $ 75,256 $ — $ — $ 75,256 $ 56,645 $ — $ — $ 56,645 Marketable securities 11,758 3,104 — 14,862 11,002 16,192 — 27,194 Total $ 87,014 $ 3,104 $ — $ 90,118 $ 67,647 $ 16,192 $ — $ 83,839 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Apr. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and equipment consisted of the following at April 30, 2020 and 2019 (in thousands): 2020 2019 Buildings and leasehold improvements $ 16,881 $ 16,724 Computer equipment and purchased software 11,478 11,235 Office furniture and equipment 4,973 4,953 33,332 32,912 Accumulated depreciation and amortization (29,959 ) (29,327 ) $ 3,373 $ 3,585 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Apr. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Tax Expense | Income tax expense (benefit) consisted of the following: Years ended April 30, 2020 2019 2018 (in thousands) Current: Federal $ 295 $ 184 $ 2,298 State 370 334 743 665 518 3,041 Deferred: Federal (513 ) 256 321 State (96 ) 64 300 (609 ) 320 621 $ 56 $ 838 $ 3,662 |
Earnings before Income Taxes Due to Change in Effective Income Tax Rate | The Company’s actual income tax expense differs from the “expected” income tax expense calculated by applying the Federal statutory rate of 21.0% for fiscal 2020 and 2019 and our blended U.S. Federal statutory rate of 30.3% for fiscal 2018 , to earnings before income taxes as follows: Years ended April 30, 2020 2019 2018 (in thousands) Computed “expected” income tax expense $ 1,428 $ 1,605 $ 4,763 Increase (decrease) in income taxes resulting from: State income taxes, net of federal income tax effect 214 339 891 Research and development credits (703 ) (678 ) (493 ) Excess tax benefits from stock option deductions (737 ) (251 ) (165 ) Foreign tax credits (164 ) (112 ) (211 ) Rate change – tax reform — — (1,206 ) Other, net, including permanent items 18 (65 ) 83 $ 56 $ 838 $ 3,662 |
Significant Components of Deferred Income Tax (Benefit) Expense Attributable to Income from Continuing Operations before Income Taxes | The significant components of deferred income tax expense attributable to income from continuing operations before income taxes for the years ended April 30, 2020 , 2019 , and 2018 are as follows: Years ended April 30, 2020 2019 2018 (in thousands) Deferred tax (benefit) expense $ (639 ) $ 330 $ 1,823 Deferred tax benefit related to tax reform — — (1,206 ) Increase (decrease) in the valuation allowance for deferred tax assets 30 (10 ) 4 $ (609 ) $ 320 $ 621 |
Deferred Tax Assets and Deferred Tax Liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at April 30, 2020 and 2019 are presented as follows: 2020 2019 (in thousands) Deferred tax assets: Accruals and expenses not deducted for tax purposes $ 363 $ 328 State net operating loss carryforwards 226 217 Fixed asset basis differences 822 831 Nonqualified stock options 848 858 Right of use liability 547 — Tax credit carryforwards 83 — Total gross deferred tax assets 2,889 2,234 Less valuation allowance (190 ) (160 ) Net deferred tax 2,699 2,074 Deferred tax liabilities: Capitalized computer software development costs (2,090 ) (2,766 ) Net gains/losses on trading securities (1,005 ) (1,183 ) Goodwill and intangible assets basis differences (746 ) (639 ) Right of use asset (513 ) — Deferred agent commissions (1,242 ) (1,000 ) Total gross deferred tax liabilities (5,596 ) (5,588 ) Net deferred tax liabilities $ (2,897 ) $ (3,514 ) |
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows, excluding interest and penalties (in thousands): 2020 2019 Balance at beginning of the period $ 21 $ 32 Decreases as a result of positions taken during prior periods (6 ) (11 ) Increases as a result of positions taken during the current period — — Balance at April 30, $ 15 $ 21 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Apr. 30, 2020 | |
Equity [Abstract] | |
Summary of Changes in Outstanding Options | A summary of changes in outstanding options for the year ended April 30, 2020 is as follows: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value Outstanding at May 1, 2019 3,983,060 $ 10.88 Granted 1,113,000 14.72 Exercised (1,020,910 ) 9.87 Forfeited (327,000 ) 12.02 Expired (2,500 ) 9.79 Outstanding at April 30, 2020 3,745,650 $ 12.21 3.8 $ 16,011,836 Exercisable at April 30, 2020 900,610 $ 10.69 2.8 $ 5,214,907 |
Fair Value of Option Award Estimated Using Black-Scholes Option Pricing Model | The fair value of each option award is estimated on the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions for the years ended April 30, 2020 , 2019 , and 2018 : 2020 2019 2018 Dividend yield 2.8 % 3.6 % 3.9 % Expected volatility 30.9 % 30.0 % 28.9 % Risk-free interest rate 1.6 % 2.9 % 1.9 % Expected term 5 years 5 years 5 years |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Apr. 30, 2020 | |
Leases [Abstract] | |
Balance Sheet Information | Balance sheet information related to operating leases is as follows (in thousands): April 30, 2020 Assets Right of use assets $ 2,053 Liabilities Current lease liabilities 763 Long-term lease liabilities 1,424 Total liabilities $ 2,187 Weighted average information associated with the measurement of the Company’s remaining operating lease obligations is as follows: April 30, 2020 Weighted average remaining lease term 3.3 years Weighted average discount rate 3.5 % |
Lease Cost Information | Lease cost information related to operating leases is as follows (in thousands): Year ended April 30, 2020 Lease cost Operating lease cost $ 770 Short-term lease cost 643 Variable lease cost 225 Total lease cost $ 1,638 |
Future Minimum Lease Payments under Noncancelable Operating Leases | The following table summarizes the maturity of the Company’s operating lease liabilities as of April 30, 2020 (in thousands): Years ended April 30: 2021 $ 775 2022 702 2023 470 2024 346 2025 20 Thereafter — Total operating lease payments $ 2,313 Less imputed interest (126 ) Total operating lease liabilities $ 2,187 Future minimum lease payments, as defined under the previous lease accounting guidance of ASC Topic 840, under noncancelable operating leases (due to existence of renewal or escalation clauses) with initial or remaining lease terms in excess of one year as of April 30, 2019 are as follows (in thousands): Years ended April 30: 2020 $ 847 2021 790 2022 706 2023 433 2024 317 Thereafter 17 $ 3,110 |
Future Minimum Lease Rentals Receivable under Noncancelable Operating Leases | Lease payments to be received as of April 30, 2020 are as follows (in thousands): Years ended April 30: 2021 $ 165 2022 149 2023 96 2024 98 2025 100 Thereafter 50 $ 658 Future minimum lease rentals receivable under noncancelable, as defined under the previous lease accounting guidance of ASC Topic 840, operating leases (with initial or remaining lease terms in excess of one year) as of April 30, 2019 are as follows (already included or prorated at the Company’s occupied building) (in thousands): Years ended April 30: 2020 $ 194 2021 105 2022 55 2023 — 2024 — Thereafter — $ 354 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Apr. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment Operating Profit or Loss | Following is information related to each segment as of and for the years ended April 30, 2020 , 2019 and 2018 , (in thousands): 2020 2019 2018 Revenues: Supply Chain Management $ 95,018 $ 86,296 $ 91,613 IT Consulting 17,997 20,007 18,460 Other 2,451 2,403 2,630 $ 115,466 $ 108,706 $ 112,703 Operating income/(loss): Supply Chain Management $ 19,612 $ 15,967 $ 19,580 IT Consulting 332 964 985 Other (13,896 ) (11,655 ) (7,034 ) $ 6,048 $ 5,276 $ 13,531 Capital expenditures: Supply Chain Management $ 156 $ 375 $ 263 IT Consulting — 1 10 Other 264 876 1,155 $ 420 $ 1,252 $ 1,428 Capitalized software: Supply Chain Management $ 3,170 $ 5,961 $ 4,804 IT Consulting — — — Other — — — $ 3,170 $ 5,961 $ 4,804 Depreciation and amortization: Supply Chain Management $ 7,727 $ 7,372 $ 5,827 IT Consulting 5 7 7 Other 371 340 196 $ 8,103 $ 7,719 $ 6,030 Interest income: Supply Chain Management $ 829 $ 1,408 $ 1,043 IT Consulting — — — Other 695 684 532 $ 1,524 $ 2,092 $ 1,575 Earnings/(loss) before income taxes: Supply Chain Management $ 19,855 $ 16,335 $ 20,026 IT Consulting 332 964 985 Other (13,389 ) (9,658 ) (5,296 ) $ 6,798 $ 7,641 $ 15,715 April 30, April 30, (in thousands) Total Consolidated Assets: Supply Chain Management $ 117,135 $ 112,604 IT Consulting 5,200 4,599 Other 48,958 44,107 $ 171,293 $ 161,310 |
Financial Statements and Supp_2
Financial Statements and Supplementary Data (Unaudited) (Tables) | 12 Months Ended |
Apr. 30, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Results | The following schedule presents results for each quarter in the years ended April 30, 2020 and 2019 (in thousands, except per share amounts): Total revenues Gross margin Operating income Net earnings Diluted earnings per share* Quarter ended: July 31, 2019 $ 27,383 $ 14,622 $ 797 $ 1,152 $ 0.04 October 31, 2019 28,210 15,186 843 1,759 0.05 January 31, 2020 30,600 17,442 2,819 3,286 0.10 April 30, 2020 29,273 15,908 1,589 545 0.02 Year ended April 30, 2020 $ 115,466 $ 63,158 $ 6,048 $ 6,742 $ 0.21 Quarter ended: July 31, 2018 $ 27,399 $ 13,752 $ 607 $ 1,385 $ 0.04 October 31, 2018 28,033 14,667 1,526 1,243 0.04 January 31, 2019 27,003 14,039 2,130 2,301 0.07 April 30, 2019 26,271 14,282 1,013 1,874 0.06 Year ended April 30, 2019 $ 108,706 $ 56,740 $ 5,276 $ 6,803 $ 0.22 ______________ * Table may contain rounding |
Presentation and Summary of S_4
Presentation and Summary of Significant Accounting Policies - Additional Information (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Apr. 30, 2020USD ($) | Jan. 31, 2020USD ($) | Oct. 31, 2019USD ($) | Jul. 31, 2019USD ($) | Apr. 30, 2019USD ($) | Jan. 31, 2019USD ($) | Oct. 31, 2018USD ($) | Jul. 31, 2018USD ($) | Apr. 30, 2020USD ($)SegmentCompensationPlanGroup$ / shares | Apr. 30, 2019USD ($) | Apr. 30, 2018USD ($) | May 01, 2019USD ($) | |
Accounting Policies [Line Items] | ||||||||||||
Number of major product and service groups | Group | 6 | |||||||||||
Number of major business segments | Segment | 3 | |||||||||||
Amounts received for reimbursement of travel and other out-of-pocket expenses | $ 1,500 | $ 1,400 | $ 1,900 | |||||||||
Revenue recognized and included in deferred revenue | 31,000 | |||||||||||
Unbilled | $ 2,425 | $ 1,475 | 2,425 | 1,475 | ||||||||
Cash equivalents | 75,300 | 56,600 | 75,300 | 56,600 | ||||||||
Total amounts of expense/(recovery) to operations for doubtful accounts | 97 | 0 | 24 | |||||||||
Depreciation and amortization expense | 600 | 700 | 500 | |||||||||
Amortization of acquisition-related intangibles | 285 | 388 | 580 | |||||||||
Remaining performance obligations | 77,000 | 77,000 | ||||||||||
Deferred commissions | 3,500 | 2,300 | 3,500 | 2,300 | ||||||||
Amortization of sales commissions | 2,100 | |||||||||||
Total revenues | $ 29,273 | $ 30,600 | $ 28,210 | $ 27,383 | 26,271 | $ 27,003 | $ 28,033 | $ 27,399 | $ 115,466 | 108,706 | 112,703 | |
Period of economic benefit | 6 years | 6 years | ||||||||||
Lease right of use assets | $ 2,053 | $ 2,053 | ||||||||||
Current lease liabilities | 763 | 763 | ||||||||||
Long-term operating lease obligations | 1,424 | $ 1,424 | ||||||||||
Number of stock compensation plans | CompensationPlan | 1 | |||||||||||
Stock-based compensation expense | $ 2,027 | 1,751 | 1,467 | |||||||||
Income tax benefit (shortfall) | 700 | 300 | 39 | |||||||||
Advertising expense | $ 2,900 | 2,300 | 2,400 | |||||||||
Number of reportable segments | Segment | 3 | |||||||||||
Computers Equipment And Software | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Estimated useful lives of assets | 3 years | |||||||||||
Office furniture and equipment | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Estimated useful lives of assets | 7 years | |||||||||||
Building | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Estimated useful lives of assets | 30 years | |||||||||||
Operating Expense | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Amortization of acquisition-related intangibles | $ 300 | 400 | 600 | |||||||||
Cost of License Fees | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Amortization of acquisition-related intangibles | $ 1,300 | 2,000 | 1,200 | |||||||||
Class A Common Shares | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Dividends preference (in usd per share) | $ / shares | $ 0.05 | |||||||||||
Accounting Standards Update 2016-02 | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Lease right of use assets | $ 2,700 | |||||||||||
Current lease liabilities | 700 | |||||||||||
Long-term operating lease obligations | 2,100 | |||||||||||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Total revenues | $ 1,200 | |||||||||||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Upfront recognition of revenue | 70.00% | |||||||||||
Sales commission capitalized | 1,100 | $ 1,100 | ||||||||||
Capitalized Software | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Intangible assets amortized period | 3 years | |||||||||||
Finite-Lived Intangible Assets | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Amortization of acquisition-related intangibles | $ 1,600 | 2,400 | $ 1,800 | |||||||||
License Fees | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Unbilled | 1,300 | 400 | 1,300 | 400 | ||||||||
Services Revenues | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Unbilled | $ 1,100 | $ 1,100 | $ 1,100 | $ 1,100 | ||||||||
Minimum | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Contractual period of maintenance contract | 1 year | |||||||||||
Minimum | Accounting Standards Update 2016-02 | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Lease right of use assets | 28,000 | |||||||||||
Minimum | Other Intangible Assets | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Intangible assets amortized period | 1 year | |||||||||||
Maximum | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Contractual period of maintenance contract | 3 years | |||||||||||
Maximum | Accounting Standards Update 2016-02 | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Lease right of use assets | $ 30,000 | |||||||||||
Maximum | Other Intangible Assets | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Intangible assets amortized period | 8 years |
Presentation and Summary of S_5
Presentation and Summary of Significant Accounting Policies - Contract Balances (Details) - USD ($) $ in Thousands | Apr. 30, 2020 | Apr. 30, 2019 |
Accounting Policies [Abstract] | ||
Deferred revenue, current | $ 34,227 | $ 33,283 |
Deferred revenue, long-term | 0 | 0 |
Total deferred revenue | $ 34,227 | $ 33,283 |
Presentation and Summary of S_6
Presentation and Summary of Significant Accounting Policies - Revenue recognition timing (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-05-01 | Apr. 30, 2020 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue recognition of remaining performance obligations | 60.00% |
Revenue recognition in next twelve months | 12 months |
Presentation and Summary of S_7
Presentation and Summary of Significant Accounting Policies - Disaggregated Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Apr. 30, 2020 | Jan. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | $ 29,273 | $ 30,600 | $ 28,210 | $ 27,383 | $ 26,271 | $ 27,003 | $ 28,033 | $ 27,399 | $ 115,466 | $ 108,706 | $ 112,703 |
Domestic | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 93,332 | 87,316 | |||||||||
International | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | $ 22,134 | $ 21,390 |
Presentation and Summary of S_8
Presentation and Summary of Significant Accounting Policies - Total Expenditures and Amortization of Capitalized Computer Software (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | |
Accounting Policies [Abstract] | |||
Total capitalized computer software development costs | $ 3,170 | $ 5,961 | $ 4,804 |
Research and development | 15,348 | 13,078 | 11,877 |
Total research and development expense and capitalized computer software-development costs | 18,518 | 19,039 | 16,681 |
Total amortization of capitalized computer software development costs | $ 5,871 | $ 4,627 | $ 3,690 |
Presentation and Summary of S_9
Presentation and Summary of Significant Accounting Policies - Capitalized Computer Software Development Costs (Details) - USD ($) $ in Thousands | Apr. 30, 2020 | Apr. 30, 2019 |
Accounting Policies [Abstract] | ||
Capitalized computer software development costs | $ 42,973 | $ 39,803 |
Accumulated amortization | (34,611) | (28,740) |
Capitalized software, net | $ 8,362 | $ 11,063 |
Presentation and Summary of _10
Presentation and Summary of Significant Accounting Policies - Expected Amortization Expenses Based on Capitalized Software (Details) - Capitalized Software $ in Thousands | Apr. 30, 2020USD ($) |
Schedule Of Estimated Future Amortization Expense [Line Items] | |
2020 | $ 3,437 |
2021 | 2,222 |
2022 | 197 |
Total amortization expense | $ 5,856 |
Presentation and Summary of _11
Presentation and Summary of Significant Accounting Policies - Acquisition-Related Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amortization of acquisition-related intangibles | $ 285 | $ 388 | $ 580 |
Finite-Lived Intangible Assets | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amortization of acquisition-related intangibles | 1,600 | 2,400 | 1,800 |
Operating Expense | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amortization of acquisition-related intangibles | 300 | 400 | 600 |
Cost of License Fees | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amortization of acquisition-related intangibles | 1,300 | 2,000 | $ 1,200 |
Acquired Finite Lived Intangible Assets | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Acquisition-related intangible assets | 8,140 | 8,140 | |
Accumulated amortization | (7,008) | (5,408) | |
Total amortization expense | $ 1,132 | 2,732 | |
Acquired Finite Lived Intangible Assets | Current Technology | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted Average Amortization in Years | 3 years | ||
Acquisition-related intangible assets | $ 6,000 | 6,000 | |
Acquired Finite Lived Intangible Assets | Customer Relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted Average Amortization in Years | 8 years | ||
Acquisition-related intangible assets | $ 1,700 | 1,700 | |
Acquired Finite Lived Intangible Assets | Non-compete | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted Average Amortization in Years | 3 years | ||
Acquisition-related intangible assets | $ 100 | 100 | |
Acquired Finite Lived Intangible Assets | Trademarks | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted Average Amortization in Years | 3 years | ||
Acquisition-related intangible assets | $ 340 | $ 340 |
Presentation and Summary of _12
Presentation and Summary of Significant Accounting Policies - Expected Amortization Expenses Based on Intangible Assets (Details) - Acquired Finite Lived Intangible Assets - USD ($) $ in Thousands | Apr. 30, 2020 | Apr. 30, 2019 |
Schedule Of Estimated Future Amortization Expense [Line Items] | ||
2020 | $ 772 | |
2021 | 212 | |
2022 | 52 | |
2023 | 38 | |
2024 | 38 | |
Thereafter | 20 | |
Total amortization expense | $ 1,132 | $ 2,732 |
Presentation and Summary of _13
Presentation and Summary of Significant Accounting Policies - Goodwill (Details) - USD ($) $ in Thousands | Apr. 30, 2020 | Apr. 30, 2019 |
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | $ 25,888 | $ 25,888 |
Goodwill, ending balance | 25,888 | 25,888 |
Goodwill | 25,888 | 25,888 |
Supply Chain Management | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 25,888 | 25,888 |
Goodwill, ending balance | 25,888 | 25,888 |
Goodwill | 25,888 | 25,888 |
IT Consulting | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 0 | 0 |
Goodwill, ending balance | 0 | 0 |
Goodwill | 0 | 0 |
Other | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 0 | 0 |
Goodwill, ending balance | 0 | 0 |
Goodwill | $ 0 | $ 0 |
Presentation and Summary of _14
Presentation and Summary of Significant Accounting Policies - Intangible Assets Including Acquisition-Related Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Finite-lived Intangible Assets [Roll Forward] | ||
Beginning balance | $ 2,732 | $ 5,120 |
Amortization expense | (1,600) | (2,388) |
Ending balance | 1,132 | 2,732 |
Supply Chain Management | ||
Finite-lived Intangible Assets [Roll Forward] | ||
Beginning balance | 2,732 | 5,120 |
Amortization expense | (1,600) | (2,388) |
Ending balance | 1,132 | 2,732 |
IT Consulting | ||
Finite-lived Intangible Assets [Roll Forward] | ||
Beginning balance | 0 | 0 |
Amortization expense | 0 | 0 |
Ending balance | 0 | 0 |
Other | ||
Finite-lived Intangible Assets [Roll Forward] | ||
Beginning balance | 0 | 0 |
Amortization expense | 0 | 0 |
Ending balance | $ 0 | $ 0 |
Presentation and Summary of _15
Presentation and Summary of Significant Accounting Policies - Basic Earnings per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Total (in usd per share) | [1] | $ 0.21 | $ 0.22 | $ 0.40 |
Basic weighted average common shares (in shares) | 31,747 | 30,950 | 30,080 | |
Class A Common Shares | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Distributed earnings per share (in usd per share) | $ 0.44 | $ 0.44 | $ 0.44 | |
Undistributed earnings/(loss) per share (in usd per share) | (0.23) | (0.22) | (0.04) | |
Total (in usd per share) | $ 0.21 | $ 0.22 | $ 0.40 | |
Distributed earnings | $ 13,219 | $ 12,837 | $ 12,321 | |
Undistributed earnings/(loss) | (6,864) | (6,441) | (1,151) | |
Total | $ 6,355 | $ 6,396 | $ 11,170 | |
Basic weighted average common shares (in shares) | 29,925 | 29,106 | 27,805 | |
Class B Common Shares | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Distributed earnings per share (in usd per share) | $ 0.44 | $ 0.44 | $ 0.43 | |
Undistributed earnings/(loss) per share (in usd per share) | (0.23) | (0.22) | (0.04) | |
Total (in usd per share) | $ 0.21 | $ 0.22 | $ 0.39 | |
Distributed earnings | $ 805 | $ 819 | $ 974 | |
Undistributed earnings/(loss) | (418) | (412) | (91) | |
Total | $ 387 | $ 407 | $ 883 | |
Basic weighted average common shares (in shares) | 1,822 | 1,844 | 2,275 | |
[1] | Diluted per share amounts for Class A shares are shown above. Diluted per share for Class B shares under the two-class method are $0.22, $0.22 and $0.39 for the years ended April 30, 2020, 2019 and 2018, respectively. See Note 1 to the Consolidated Financial Statements. |
Presentation and Summary of _16
Presentation and Summary of Significant Accounting Policies - Diluted Earnings per Share for Class A Common Shares Using If-Converted Method (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Apr. 30, 2020 | Jan. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | ||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||||||||||
Basic weighted average common shares outstanding (in shares) | 31,747 | 30,950 | 30,080 | |||||||||
Class A common shares. diluted (in shares) | 32,367 | 31,378 | 30,472 | |||||||||
Basic, EPS (in usd per share) | [1] | $ 0.21 | $ 0.22 | $ 0.40 | ||||||||
Diluted, EPS (in usd per share) | $ 0.02 | $ 0.10 | $ 0.05 | $ 0.04 | $ 0.06 | $ 0.07 | $ 0.04 | $ 0.04 | $ 0.21 | $ 0.22 | $ 0.40 | |
Class A Common Shares | ||||||||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||||||||||
Undistributed and distributed earnings, Per basic | $ 6,355 | $ 6,396 | $ 11,170 | |||||||||
Undistributed and distributed earnings, Class B conversion | 387 | 407 | 883 | |||||||||
Net earnings | $ 6,742 | $ 6,803 | $ 12,053 | |||||||||
Basic weighted average common shares outstanding (in shares) | 29,925 | 29,106 | 27,805 | |||||||||
Common stock equivalents (in shares) | 620 | 429 | 392 | |||||||||
Weighted average number of shares including common stock equivalents, diluted | 30,545 | 29,535 | 28,197 | |||||||||
Class B conversion (in shares) | 1,822 | 1,844 | 2,275 | |||||||||
Class A common shares. diluted (in shares) | 32,367 | 31,379 | 30,472 | |||||||||
Basic, EPS (in usd per share) | $ 0.21 | $ 0.22 | $ 0.40 | |||||||||
Diluted, EPS (in usd per share) | [1] | $ 0.21 | $ 0.22 | $ 0.40 | ||||||||
[1] | Diluted per share amounts for Class A shares are shown above. Diluted per share for Class B shares under the two-class method are $0.22, $0.22 and $0.39 for the years ended April 30, 2020, 2019 and 2018, respectively. See Note 1 to the Consolidated Financial Statements. |
Presentation and Summary of _17
Presentation and Summary of Significant Accounting Policies - Diluted Earnings per Share for Class B Common Shares Using Two-Class Method (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Apr. 30, 2020 | Jan. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | ||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||||||||||
Basic weighted average common shares outstanding (in shares) | 31,747 | 30,950 | 30,080 | |||||||||
Diluted (in shares) | 32,367 | 31,378 | 30,472 | |||||||||
Basic, EPS (in usd per share) | [1] | $ 0.21 | $ 0.22 | $ 0.40 | ||||||||
Diluted, EPS (in usd per share) | $ 0.02 | $ 0.10 | $ 0.05 | $ 0.04 | $ 0.06 | $ 0.07 | $ 0.04 | $ 0.04 | $ 0.21 | $ 0.22 | $ 0.40 | |
Class B Common Shares | ||||||||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||||||||||
Undistributed and distributed earnings, Per basic | $ 387 | $ 407 | $ 883 | |||||||||
Reallocation of undistributed earnings from Class A Common Shares to Class B Common Shares | 5 | 2 | 0 | |||||||||
Net earnings | $ 392 | $ 409 | $ 883 | |||||||||
Basic weighted average common shares outstanding (in shares) | 1,822 | 1,844 | 2,275 | |||||||||
Diluted (in shares) | 1,822 | 1,844 | 2,275 | |||||||||
Basic, EPS (in usd per share) | $ 0.21 | $ 0.22 | $ 0.39 | |||||||||
Diluted, EPS (in usd per share) | $ 0.22 | $ 0.22 | $ 0.39 | |||||||||
[1] | Diluted per share amounts for Class A shares are shown above. Diluted per share for Class B shares under the two-class method are $0.22, $0.22 and $0.39 for the years ended April 30, 2020, 2019 and 2018, respectively. See Note 1 to the Consolidated Financial Statements. |
Investments - Components of In
Investments - Components of Investments (Details) - USD ($) $ in Thousands | Apr. 30, 2020 | Apr. 30, 2019 |
Investments, Debt and Equity Securities [Abstract] | ||
Debt securities—Tax-exempt state and municipal bonds | $ 3,104 | $ 16,192 |
Marketable equity securities | 11,758 | 11,002 |
Total trading securities | $ 14,862 | $ 27,194 |
Investments - Additional Infor
Investments - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | |
Net Investment Income [Line Items] | |||
Carrying value of investment | $ 14,900 | $ 27,200 | |
Investments-noncurrent | 701 | 2,484 | |
Marketable equity securities | |||
Net Investment Income [Line Items] | |||
Net unrealized holding gains (losses) | 700 | (900) | $ (1,000) |
Net realized holding gains (losses) | (200) | (100) | 0 |
Portfolio debt securities | |||
Net Investment Income [Line Items] | |||
Net unrealized holding gains (losses) | (600) | (100) | 100 |
Net realized holding gains (losses) | $ 700 | $ 700 | $ 700 |
Investments - Contractual Matu
Investments - Contractual Maturities of Debt Securities Classified as Trading (Details) - USD ($) $ in Thousands | Apr. 30, 2020 | Apr. 30, 2019 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Total debt securities | $ 3,104 | $ 16,192 |
Tax-exempt state and municipal bonds | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Due within one year | 2,403 | 13,708 |
Due within two years | 701 | 2,484 |
Due within three years | 0 | 0 |
Due after three years | 0 | 0 |
Total debt securities | $ 3,104 | $ 16,192 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Apr. 30, 2020 | Apr. 30, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 75,256 | $ 56,645 |
Marketable securities | 14,862 | 27,194 |
Total | 90,118 | 83,839 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 75,256 | 56,645 |
Marketable securities | 11,758 | 11,002 |
Total | 87,014 | 67,647 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Marketable securities | 3,104 | 16,192 |
Total | 3,104 | 16,192 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Marketable securities | 0 | 0 |
Total | $ 0 | $ 0 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | Apr. 30, 2020 | Apr. 30, 2019 |
Property, Plant and Equipment [Line Items] | ||
Gross property plant and equipment | $ 33,332 | $ 32,912 |
Accumulated depreciation and amortization | (29,959) | (29,327) |
Net property plant and equipment | 3,373 | 3,585 |
Buildings and leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Gross property plant and equipment | 16,881 | 16,724 |
Computer equipment and purchased software | ||
Property, Plant and Equipment [Line Items] | ||
Gross property plant and equipment | 11,478 | 11,235 |
Office furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Gross property plant and equipment | $ 4,973 | $ 4,953 |
Income Taxes - Income Tax Expe
Income Taxes - Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | |
Current: | |||
Federal | $ 295 | $ 184 | $ 2,298 |
State | 370 | 334 | 743 |
Total current income tax expense | 665 | 518 | 3,041 |
Deferred: | |||
Federal | (513) | 256 | 321 |
State | (96) | 64 | 300 |
Total deferred income tax expense | (609) | 320 | 621 |
Income tax expense | $ 56 | $ 838 | $ 3,662 |
Income Taxes - Additional Info
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | |
Income Tax Disclosure [Line Items] | |||
Federal statutory income tax rate | 30.30% | ||
Effective income tax rate | 1.00% | 11.00% | 23.00% |
Tax benefits realized from the recognition of stock option deductions | $ 878 | $ 298 | $ 186 |
Unrecognized tax benefits that, if recognized, would impact effective tax rate | 34 | 43 | 56 |
Liability for potential penalties and interest | 19 | 22 | |
Research and development state tax credits | 703 | 678 | 493 |
Benefit from impact of changes in tax rate | 0 | 0 | 1,206 |
State and Local Jurisdiction | |||
Income Tax Disclosure [Line Items] | |||
Operating loss carryforwards | $ 5,700 | ||
Operating loss carryforwards expiration year | 2035 | ||
Research and development state tax credits | $ 427 | $ 488 | $ 290 |
Income Taxes - Effective Incom
Income Taxes - Effective Income Tax Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | |
Income Tax Disclosure [Abstract] | |||
Computed “expected” income tax expense | $ 1,428 | $ 1,605 | $ 4,763 |
Increase (decrease) in income taxes resulting from: | |||
State income taxes, net of federal income tax effect | 214 | 339 | 891 |
Research and development credits | (703) | (678) | (493) |
Excess tax benefits from stock option deductions | (737) | (251) | (165) |
Foreign tax credits | (164) | (112) | (211) |
Rate change – tax reform | 0 | 0 | (1,206) |
Other, net, including permanent items | 18 | (65) | 83 |
Income tax expense | $ 56 | $ 838 | $ 3,662 |
Income Taxes - Significant Com
Income Taxes - Significant Components of Deferred Income Tax (Benefit) Expense Attributable to Income from Continuing Operations before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | |
Income Tax Disclosure [Abstract] | |||
Deferred tax (benefit) expense | $ (639) | $ 330 | $ 1,823 |
Deferred tax benefit related to tax reform | 0 | 0 | (1,206) |
Increase (decrease) in the valuation allowance for deferred tax assets | 30 | (10) | 4 |
Deferred income tax expense/(benefit) | $ (609) | $ 320 | $ 621 |
Income Taxes - Tax Effects of
Income Taxes - Tax Effects of Temporary Differences That Give Rise to Significant Portions of Deferred Tax Assets and Deferred Tax Liabilities (Details) - USD ($) $ in Thousands | Apr. 30, 2020 | Apr. 30, 2019 |
Deferred tax assets | ||
Accruals and expenses not deducted for tax purposes | $ 363 | $ 328 |
State net operating loss carryforwards | 226 | 217 |
Fixed asset basis differences | 822 | 831 |
Nonqualified stock options | 848 | 858 |
Right of use liability | 547 | |
Tax credit carryforwards | 83 | |
Total gross deferred tax assets | 2,889 | 2,234 |
Less valuation allowance | (190) | (160) |
Net deferred tax | 2,699 | 2,074 |
Deferred tax liabilities | ||
Capitalized computer software development costs | (2,090) | (2,766) |
Net gains/losses on trading securities | (1,005) | (1,183) |
Goodwill and intangible assets basis differences | (746) | (639) |
Right of use asset | (513) | |
Deferred agent commissions | (1,242) | (1,000) |
Total gross deferred tax liabilities | (5,596) | (5,588) |
Net deferred tax liabilities | $ (2,897) | $ (3,514) |
Income Taxes - Reconciliation
Income Taxes - Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits, Excluding Interest and Penalties (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance at beginning of the period | $ 21 | $ 32 |
Decreases as a result of positions taken during prior periods | (6) | (11) |
Increases as a result of positions taken during the current period | 0 | 0 |
April 30, | $ 15 | $ 21 |
Shareholders' Equity - Additio
Shareholders' Equity - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | Aug. 19, 2002 | |
Stock Based Compensation And Stockholders Equity [Line Items] | ||||
Options available for grant (in shares) | 1,113,000 | |||
Incentive and nonqualified options exercisable (in shares) | 900,610 | |||
Weighted-average grant date fair value of stock options granted (in usd per share) | $ 3.20 | $ 2.58 | $ 2.01 | |
Exercised (in shares) | 1,020,910 | 602,176 | 984,310 | |
Total intrinsic value of options exercised | $ 5,569,882 | $ 2,441,830 | $ 2,999,372 | |
Fair value of grants vested | 1,786,342 | $ 1,470,840 | $ 1,287,222 | |
Unrecognized compensation cost related to unvested stock option | $ 3,400,000 | |||
Weighted average period for unrecognized compensation cost | 1 year 10 months 24 days | |||
2001 Option Plan | ||||
Stock Based Compensation And Stockholders Equity [Line Items] | ||||
Stock option plan effective date | Sep. 1, 2000 | |||
2011 Option Plan | ||||
Stock Based Compensation And Stockholders Equity [Line Items] | ||||
Stock option plan effective date | May 17, 2010 | |||
Options available for grant (in shares) | 2,500,000 | |||
Options exercisable period, maximum | 6 years | |||
Options authorized for issuance (in shares) | 2,500,000 | |||
Options available for grant (in shares) | 1,529,143 | |||
2011 Option Plan | Non Qualified | ||||
Stock Based Compensation And Stockholders Equity [Line Items] | ||||
Options available for grant (in shares) | 10,000 | |||
Incentive and nonqualified options exercisable (in shares) | 900,610 | 1,086,180 | 965,416 | |
2011 Option Plan | Quarterly Option Amount | ||||
Stock Based Compensation And Stockholders Equity [Line Items] | ||||
Options available for grant (in shares) | 4,000 | |||
1997 Stock Plan | ||||
Stock Based Compensation And Stockholders Equity [Line Items] | ||||
Stock option plan effective date | Jul. 9, 2009 | |||
Class A Common Shares | ||||
Stock Based Compensation And Stockholders Equity [Line Items] | ||||
Percentage of board of directors entitled to elect | 25.00% | |||
Ownership compared to both classes of common stock | 10.00% | |||
Common stock dividends declared (in usd per share) | $ 0.05 | |||
Common stock shares repurchased | 4,588,632 | |||
Cost of common stock repurchased | $ 25,600,000 | |||
Class A Common Shares | Shares Stock Repurchase Plan, August 19, 2002 | ||||
Stock Based Compensation And Stockholders Equity [Line Items] | ||||
Approved number of shares to be repurchased | 2,000,000 | |||
Common stock shares repurchased | 1,053,679 | |||
Cost of common stock repurchased | $ 6,200,000 | |||
Shareholder Holding More Than 10% of Outstanding Shares | 2011 Option Plan | ||||
Stock Based Compensation And Stockholders Equity [Line Items] | ||||
Ownership compared to both classes of common stock | 10.00% | |||
Options exercisable period, maximum | 5 years |
Shareholders' Equity - Summary
Shareholders' Equity - Summary of Changes in Outstanding Options (Details) - USD ($) | 12 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | |
Number of Shares | |||
Outstanding at May 1, 2017 (in shares) | 3,983,060 | ||
Granted (in shares) | 1,113,000 | ||
Exercised (in shares) | (1,020,910) | (602,176) | (984,310) |
Forfeited (in shares) | (327,000) | ||
Expired (in shares) | (2,500) | ||
Outstanding at April 30, 2019 (in shares) | 3,745,650 | 3,983,060 | |
Exercisable at April 30, 2019 | 900,610 | ||
Weighted Average Exercise Price | |||
Outstanding at May 1, 2017 (in shares) | $ 10.88 | ||
Granted (in usd per share) | 14.72 | ||
Exercised (in usd per share) | 9.87 | ||
Forfeited (in usd per share) | 12.02 | ||
Expired (in usd per share) | 9.79 | ||
Outstanding at April 30, 2019 (in shares) | 12.21 | $ 10.88 | |
Exercisable at April 30, 2019 (in shares) | $ 10.69 | ||
Weighted Average Remaining Contractual Term | |||
Outstanding at April 30, 2019 (in shares) | 3 years 9 months 29 days | ||
Exercisable at April 30, 2019 (in shares) | 2 years 9 months 18 days | ||
Aggregate Intrinsic Value | |||
Outstanding at April 30, 2019 (in shares) | $ 16,011,836 | ||
Exercisable at April 30, 2019 (in shares) | $ 5,214,907 |
Shareholders' Equity - Fair Va
Shareholders' Equity - Fair Value of Option Award Estimated Using Black-Scholes Option Pricing Model (Details) | 12 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | |
Equity [Abstract] | |||
Dividend yield | 2.80% | 3.60% | 3.90% |
Expected volatility | 30.90% | 30.00% | 28.90% |
Risk-free interest rate | 1.60% | 2.90% | 1.90% |
Expected term | 5 years | 5 years | 5 years |
Leases - Additional Informatio
Leases - Additional Information (Details) $ in Millions | 12 Months Ended |
Apr. 30, 2020USD ($) | |
Lessee, Lease, Description [Line Items] | |
Cash paid for operating lease liabilities | $ 1.3 |
Headquarters in Atlanta, GA | |
Lessee, Lease, Description [Line Items] | |
Lease income | $ 0.2 |
Minimum | Various Operating Leases | |
Lessee, Lease, Description [Line Items] | |
Operating lease terms | 3 years |
Maximum | Various Operating Leases | |
Lessee, Lease, Description [Line Items] | |
Operating lease terms | 5 years |
Leases - Balance Sheet Informat
Leases - Balance Sheet Information (Details) $ in Thousands | Apr. 30, 2020USD ($) |
Assets [Abstract] | |
Lease right of use assets | $ 2,053 |
Liabilities [Abstract] | |
Current lease liabilities | 763 |
Long-term operating lease obligations | 1,424 |
Total liabilities | $ 2,187 |
Weighted average remaining lease term | 3 years 3 months 18 days |
Weighted average discount rate | 3.50% |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) $ in Thousands | 12 Months Ended |
Apr. 30, 2020USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 770 |
Short-term lease cost | 643 |
Variable lease cost | 225 |
Total lease cost | $ 1,638 |
Leases - Future Minimum Lease
Leases - Future Minimum Lease Payments under Noncancelable Operating Leases (Details) - USD ($) $ in Thousands | Apr. 30, 2020 | Apr. 30, 2019 |
Lease Liabilities After Adoption Of ASC 842 | ||
2021 | $ 775 | |
2022 | 702 | |
2023 | 470 | |
2024 | 346 | |
2025 | 20 | |
Thereafter | 0 | |
Total operating lease payments | 2,313 | |
Less imputed interest | (126) | |
Total liabilities | $ 2,187 | |
Lease Liabilities Before Adoption Of ASC 842 | ||
2020 | $ 847 | |
2021 | 790 | |
2022 | 706 | |
2023 | 433 | |
2024 | 317 | |
Thereafter | 17 | |
Future minimum lease payments due | $ 3,110 |
Leases - Future Minimum Leas_2
Leases - Future Minimum Lease Rentals Receivable under Noncancelable Operating Leases (Details) $ in Thousands | Apr. 30, 2020USD ($) |
Leases [Abstract] | |
2021 | $ 165 |
2022 | 149 |
2023 | 96 |
2024 | 98 |
2025 | 100 |
Thereafter | 50 |
Future minimum lease payments receivable | 658 |
2020 | 194 |
2021 | 105 |
2022 | 55 |
2023 | 0 |
2024 | 0 |
Thereafter | 0 |
Future minimum lease payments receivable | $ 354 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | 12 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Eligible employee contribution amount (up to) | $ 19,500 | ||
Employer profit sharing contribution to 401(k) plan | $ 451,000 | $ 429,000 | $ 330,000 |
Segment Information - Addition
Segment Information - Additional Information (Details) $ in Millions | 12 Months Ended | ||
Apr. 30, 2020USD ($)SegmentGroup | Apr. 30, 2019USD ($) | Apr. 30, 2018USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of major operating segments | Segment | 3 | ||
Number of major product and service groups | Group | 6 | ||
International Customers | |||
Segment Reporting Information [Line Items] | |||
Total revenue | $ | $ 22.1 | $ 21.4 | $ 21.8 |
International Customers | Total revenues | Customer Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Percentage of total revenue | 19.00% | 20.00% | 19.00% |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Apr. 30, 2020 | Jan. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | |
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | $ 29,273 | $ 30,600 | $ 28,210 | $ 27,383 | $ 26,271 | $ 27,003 | $ 28,033 | $ 27,399 | $ 115,466 | $ 108,706 | $ 112,703 |
Operating income | 1,589 | $ 2,819 | $ 843 | $ 797 | 1,013 | $ 2,130 | $ 1,526 | $ 607 | 6,048 | 5,276 | 13,531 |
Capital expenditures | 420 | 1,252 | 1,428 | ||||||||
Capitalized Software | 3,170 | 5,961 | 4,804 | ||||||||
Depreciation and amortization | 8,103 | 7,719 | 6,030 | ||||||||
Interest income | 1,524 | 2,092 | 1,575 | ||||||||
Earnings (loss) before income taxes | 6,798 | 7,641 | 15,715 | ||||||||
Total Consolidated Assets | 171,293 | 161,310 | 171,293 | 161,310 | |||||||
Supply Chain Management | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 95,018 | 86,296 | 91,613 | ||||||||
Capital expenditures | 156 | 375 | 263 | ||||||||
Capitalized Software | 3,170 | 5,961 | 4,804 | ||||||||
Depreciation and amortization | 7,727 | 7,372 | 5,827 | ||||||||
Interest income | 829 | 1,408 | 1,043 | ||||||||
Earnings (loss) before income taxes | 19,855 | 16,335 | 20,026 | ||||||||
Total Consolidated Assets | 117,135 | 112,604 | 117,135 | 112,604 | |||||||
IT Consulting | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 17,997 | 20,007 | 18,460 | ||||||||
Capital expenditures | 0 | 1 | 10 | ||||||||
Capitalized Software | 0 | 0 | 0 | ||||||||
Depreciation and amortization | 5 | 7 | 7 | ||||||||
Interest income | 0 | 0 | 0 | ||||||||
Earnings (loss) before income taxes | 332 | 964 | 985 | ||||||||
Total Consolidated Assets | 5,200 | 4,599 | 5,200 | 4,599 | |||||||
Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 2,451 | 2,403 | 2,630 | ||||||||
Capital expenditures | 264 | 876 | 1,155 | ||||||||
Capitalized Software | 0 | 0 | 0 | ||||||||
Depreciation and amortization | 371 | 340 | 196 | ||||||||
Interest income | 695 | 684 | 532 | ||||||||
Earnings (loss) before income taxes | (13,389) | (9,658) | (5,296) | ||||||||
Total Consolidated Assets | $ 48,958 | $ 44,107 | 48,958 | 44,107 | |||||||
Operating income/(loss) before intersegment eliminations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating income | 6,048 | 5,276 | 13,531 | ||||||||
Operating income/(loss) before intersegment eliminations | Supply Chain Management | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating income | 19,612 | 15,967 | 19,580 | ||||||||
Operating income/(loss) before intersegment eliminations | IT Consulting | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating income | 332 | 964 | 985 | ||||||||
Operating income/(loss) before intersegment eliminations | Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating income | $ (13,896) | $ (11,655) | $ (7,034) |
Financial Statements and Supp_3
Financial Statements and Supplementary Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Apr. 30, 2020 | Jan. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total revenues | $ 29,273 | $ 30,600 | $ 28,210 | $ 27,383 | $ 26,271 | $ 27,003 | $ 28,033 | $ 27,399 | $ 115,466 | $ 108,706 | $ 112,703 |
Gross margin | 15,908 | 17,442 | 15,186 | 14,622 | 14,282 | 14,039 | 14,667 | 13,752 | 63,158 | 56,740 | 62,703 |
Operating income | 1,589 | 2,819 | 843 | 797 | 1,013 | 2,130 | 1,526 | 607 | 6,048 | 5,276 | 13,531 |
Net earnings | $ 545 | $ 3,286 | $ 1,759 | $ 1,152 | $ 1,874 | $ 2,301 | $ 1,243 | $ 1,385 | $ 6,742 | $ 6,803 | $ 12,053 |
Diluted earnings per share | $ 0.02 | $ 0.10 | $ 0.05 | $ 0.04 | $ 0.06 | $ 0.07 | $ 0.04 | $ 0.04 | $ 0.21 | $ 0.22 | $ 0.40 |
Subsequent Events (Details)
Subsequent Events (Details) | May 20, 2020$ / shares |
Subsequent Event | |
Subsequent Event [Line Items] | |
Cash dividends declared per common share (in usd per share) | $ 0.11 |
CONSOLIDATED VALUATION ACCOUN_2
CONSOLIDATED VALUATION ACCOUNTS (Details) - Allowance for Doubtful Accounts - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of year | $ 153 | $ 159 | $ 171 |
Amounts charged to expense | 97 | 0 | 24 |
Other Additions | 14 | 0 | 0 |
Deductions | 0 | 6 | 36 |
Balance at end of year | $ 264 | $ 153 | $ 159 |
Uncategorized Items - amswa-202
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 1,753,000 |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 1,753,000 |