Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Jun. 30, 2014 | Aug. 06, 2014 | Dec. 31, 2013 | |
Document and Entity Information | ' | ' | ' |
Entity Registrant Name | 'ASPEN TECHNOLOGY INC /DE/ | ' | ' |
Entity Central Index Key | '0000929940 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 30-Jun-14 | ' | ' |
Amendment Flag | 'false | ' | ' |
Current Fiscal Year End Date | '--06-30 | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Public Float | ' | ' | $3,466,534,401 |
Entity Common Stock, Shares Outstanding | ' | 91,269,545 | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Revenue: | ' | ' | ' |
Subscription and software | $350,486 | $276,585 | $213,465 |
Services and other | 40,967 | 34,802 | 29,669 |
Total revenue | 391,453 | 311,387 | 243,134 |
Cost of revenue: | ' | ' | ' |
Subscription and software | 20,141 | 20,148 | 20,769 |
Services and other | 32,547 | 30,200 | 31,508 |
Total cost of revenue | 52,688 | 50,348 | 52,277 |
Gross profit | 338,765 | 261,039 | 190,857 |
Operating expenses: | ' | ' | ' |
Selling and marketing | 94,827 | 93,655 | 96,400 |
Research and development | 68,410 | 62,516 | 56,218 |
General and administrative | 45,819 | 49,273 | 53,547 |
Restructuring charges | -15 | -5 | -301 |
Total operating expenses | 209,041 | 205,439 | 205,864 |
Income (loss) from operations | 129,724 | 55,600 | -15,007 |
Interest income | 1,124 | 3,379 | 7,578 |
Interest expense | -37 | -424 | -4,204 |
Other income (expense), net | -2,278 | -1,117 | -3,519 |
Income (loss) before provision for (benefit from) income taxes | 128,533 | 57,438 | -15,152 |
Provision for (benefit from) income taxes | 42,750 | 12,176 | -1,344 |
Net income (loss) | $85,783 | $45,262 | ($13,808) |
Net income (loss) per common share: | ' | ' | ' |
Basic (in dollars per share) | $0.93 | $0.48 | ($0.15) |
Diluted (in dollars per share) | $0.92 | $0.47 | ($0.15) |
Weighted average shares outstanding: | ' | ' | ' |
Basic (in shares) | 92,648 | 93,586 | 93,780 |
Diluted (in shares) | 93,665 | 95,410 | 93,780 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ' | ' | ' |
Net income (loss) | $85,783 | $45,262 | ($13,808) |
Other comprehensive income (loss): | ' | ' | ' |
Net unrealized gains (losses) on available for sale securities, net of tax effects of ($32) and $28 for fiscal 2014 and 2013 | 59 | -52 | 0 |
Foreign currency translation adjustments | 2,050 | -780 | -1,020 |
Total other comprehensive income (loss) | 2,109 | -832 | -1,020 |
Comprehensive income (loss) | $87,892 | $44,430 | ($14,828) |
CONSOLIDATED_STATEMENTS_OF_COM1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ' | ' |
Net unrealized gains (losses) on available for sale securities, tax effects | ($32) | $28 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $199,526 | $132,432 |
Short-term marketable securities | 67,619 | 57,015 |
Accounts receivable, net | 38,532 | 36,988 |
Current portion of installments receivable, net | 640 | 13,769 |
Unbilled services | 1,656 | 1,965 |
Prepaid expenses and other current assets | 10,567 | 9,665 |
Prepaid income taxes | 605 | 288 |
Current deferred tax assets | 10,537 | 33,229 |
Total current assets | 329,682 | 285,351 |
Long-term marketable securities | 31,270 | 35,353 |
Non-current installments receivable, net | 811 | 963 |
Property, equipment and leasehold improvements, net | 7,588 | 7,829 |
Computer software development costs, net | 1,390 | 1,742 |
Goodwill | 19,276 | 19,132 |
Non-current deferred tax assets | 12,765 | 25,250 |
Other non-current assets | 5,190 | 7,128 |
Total assets | 407,972 | 382,748 |
Current liabilities: | ' | ' |
Accounts payable | 412 | 846 |
Accrued expenses and other current liabilities | 34,984 | 34,577 |
Income taxes payable | 2,168 | 1,697 |
Current deferred revenue | 228,940 | 178,341 |
Total current liabilities | 266,504 | 215,461 |
Non-current deferred revenue | 45,942 | 53,012 |
Other non-current liabilities | 11,850 | 12,377 |
Commitments and contingencies (Note 9) | ' | ' |
Series D redeemable convertible preferred stock | ' | ' |
$0.10 par value- Authorized- 3,636 shares as of June 30, 2014 and 2013 Issued and outstanding- none as of June 30, 2014 and 2013 | 0 | 0 |
Stockholders' equity: | ' | ' |
Common stock, $0.10 par value-Authorized-210,000,000 shares Issued- 101,033,740 shares at June 30, 2014 and 99,945,545 shares at June 30, 2013 Outstanding- 91,661,850 shares at June 30, 2014 and 93,683,769 shares at June 30, 2013 | 10,103 | 9,995 |
Additional paid-in capital | 591,324 | 575,770 |
Accumulated deficit | -264,034 | -349,817 |
Accumulated other comprehensive income | 9,372 | 7,263 |
Treasury stock, at cost-9,371,890 shares of common stock at June 30, 2014 and 6,261,776 at June 30, 2013 | -263,089 | -141,313 |
Total stockholders' equity | 83,676 | 101,898 |
Total liabilities and stockholders' equity | $407,972 | $382,748 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
CONSOLIDATED BALANCE SHEETS | ' | ' |
Series D redeemable convertible preferred stock, par value (in dollars per share) | $0.10 | $0.10 |
Series D redeemable convertible preferred stock, Authorized | 3,636 | 3,636 |
Series D redeemable convertible preferred stock, Issued | 0 | 0 |
Series D redeemable convertible preferred stock, outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $0.10 | $0.10 |
Common stock, Authorized | 210,000,000 | 210,000,000 |
Common stock, Issued | 101,033,740 | 99,945,545 |
Common stock, Outstanding | 91,661,850 | 93,683,769 |
Treasury stock, shares | 9,371,890 | 6,261,776 |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income | Treasury Stock |
In Thousands, except Share data, unless otherwise specified | ||||||
Balance at Jun. 30, 2011 | $157,803 | $9,494 | $530,996 | ($381,271) | $9,115 | ($10,531) |
Balance (in shares) at Jun. 30, 2011 | ' | 94,939,400 | ' | ' | ' | 701,030 |
Comprehensive income (loss): | ' | ' | ' | ' | ' | ' |
Net (loss) income | -13,808 | 0 | 0 | -13,808 | 0 | 0 |
Other comprehensive income (loss) | -1,020 | 0 | 0 | 0 | -1,020 | 0 |
Exercise of stock options | 8,913 | 120 | 8,793 | 0 | 0 | 0 |
Exercise of stock options (in shares) | ' | 1,204,010 | ' | ' | ' | 0 |
Issuance of restricted stock units | -4,597 | 52 | -4,649 | 0 | 0 | 0 |
Issuance of restricted stock units (in shares) | ' | 520,170 | ' | ' | ' | 0 |
Repurchase of common stock | -46,105 | 0 | 0 | 0 | 0 | -46,105 |
Repurchase of common stock (in shares) | ' | 0 | ' | ' | ' | 2,496,595 |
Stock-based compensation | 12,406 | 0 | 12,406 | 0 | 0 | 0 |
Balance at Jun. 30, 2012 | 113,592 | 9,666 | 547,546 | -395,079 | 8,095 | -56,636 |
Balance (in shares) at Jun. 30, 2012 | ' | 96,663,580 | ' | ' | ' | 3,197,625 |
Comprehensive income (loss): | ' | ' | ' | ' | ' | ' |
Net (loss) income | 45,262 | 0 | 0 | 45,262 | 0 | 0 |
Other comprehensive income (loss) | -832 | 0 | 0 | 0 | -832 | 0 |
Exercise of stock options | 21,143 | 275 | 20,868 | 0 | 0 | 0 |
Exercise of stock options (in shares) | ' | 2,743,772 | ' | ' | ' | 0 |
Issuance of restricted stock units | -7,705 | 54 | -7,759 | 0 | 0 | 0 |
Issuance of restricted stock units (in shares) | ' | 538,193 | ' | ' | ' | 0 |
Repurchase of common stock | -84,677 | 0 | 0 | 0 | 0 | -84,677 |
Repurchase of common stock (in shares) | 3,064,151 | 0 | ' | ' | ' | 3,064,151 |
Stock-based compensation | 14,367 | 0 | 14,637 | 0 | 0 | 0 |
Excess tax benefits from stock-based compensation | 478 | 0 | 478 | ' | ' | ' |
Balance at Jun. 30, 2013 | 101,898 | 9,995 | 575,770 | -349,817 | 7,263 | -141,313 |
Balance (in shares) at Jun. 30, 2013 | 99,945,545 | 99,945,545 | ' | ' | ' | 6,261,776 |
Comprehensive income (loss): | ' | ' | ' | ' | ' | ' |
Net (loss) income | 85,783 | 0 | 0 | 85,783 | 0 | 0 |
Other comprehensive income (loss) | 2,109 | 0 | 0 | 0 | 2,109 | 0 |
Exercise of stock options | 8,710 | 72 | 8,638 | 0 | 0 | 0 |
Exercise of stock options (in shares) | ' | 723,330 | ' | ' | ' | 0 |
Issuance of restricted stock units | -7,831 | 36 | -7,867 | 0 | 0 | 0 |
Issuance of restricted stock units (in shares) | ' | 364,865 | ' | ' | ' | 0 |
Repurchase of common stock | -121,776 | 0 | 0 | 0 | 0 | -121,776 |
Repurchase of common stock (in shares) | 3,110,114 | 0 | ' | ' | ' | 3,110,114 |
Stock-based compensation | 14,056 | 0 | 14,056 | 0 | 0 | 0 |
Excess tax benefits from stock-based compensation | 727 | 0 | 727 | ' | ' | ' |
Balance at Jun. 30, 2014 | $83,676 | $10,103 | $591,324 | ($264,034) | $9,372 | ($263,089) |
Balance (in shares) at Jun. 30, 2014 | 101,033,740 | 101,033,740 | ' | ' | ' | 9,371,890 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Cash flows from operating activities: | ' | ' | ' |
Net income (loss) | $85,783 | $45,262 | ($13,808) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ' | ' | ' |
Depreciation and amortization | 5,215 | 5,229 | 5,278 |
Net foreign currency loss (gain) | 1,934 | -952 | 953 |
Stock-based compensation | 14,056 | 14,637 | 12,406 |
Deferred income taxes | 34,596 | 5,127 | -4,827 |
Provision for bad debts | 1,793 | 489 | 22 |
Excess tax benefits from stock-based compensation | -727 | -478 | 0 |
Other non-cash operating activities | 1,847 | 818 | -1,695 |
Changes in assets and liabilities: | ' | ' | ' |
Accounts receivable | -3,179 | -6,094 | -4,285 |
Unbilled services | 301 | -380 | 734 |
Prepaid expenses, prepaid income taxes, and other assets | 947 | 3,827 | -3,918 |
Installments and collateralized receivables | 13,607 | 39,419 | 57,003 |
Accounts payable, accrued expenses and other liabilities | 1,633 | -4,947 | -1,583 |
Deferred revenue | 42,325 | 44,605 | 58,357 |
Net cash provided by operating activities | 200,131 | 146,562 | 104,637 |
Cash flows from investing activities: | ' | ' | ' |
Purchase of marketable securities | -68,356 | -97,597 | 0 |
Maturities of marketable securities | 60,265 | 4,549 | 0 |
Purchase of property, equipment and leasehold improvements | -4,011 | -4,507 | -4,241 |
Insurance proceeds | 0 | 2,222 | 0 |
Purchase of technology intangibles | -400 | -902 | 0 |
Payments for acquisitions, net of cash acquired | 0 | 0 | -2,617 |
Capitalized computer software development costs | -685 | -1,156 | -511 |
Net cash used in investing activities | -13,187 | -97,391 | -7,369 |
Cash flows from financing activities: | ' | ' | ' |
Exercise of stock options | 8,710 | 21,143 | 8,913 |
Proceeds from secured borrowings | 0 | 0 | 4,982 |
Repayments of secured borrowings | 0 | -11,010 | -44,892 |
Repurchases of common stock | -121,776 | -84,677 | -46,105 |
Payment of tax withholding obligations related to restricted stock | -7,831 | -7,705 | -4,597 |
Excess tax benefits from stock-based compensation | 727 | 478 | 0 |
Net cash used in financing activities | -120,170 | -81,771 | -81,699 |
Effect of exchange rate changes on cash and cash equivalents | 320 | -210 | -312 |
Increase (decrease) in cash and cash equivalents | 67,094 | -32,810 | 15,257 |
Cash and cash equivalents, beginning of year | 132,432 | 165,242 | 149,985 |
Cash and cash equivalents, end of year | 199,526 | 132,432 | 165,242 |
Supplemental disclosure of cash flow information: | ' | ' | ' |
Income tax paid, net | 7,157 | 4,645 | 2,707 |
Interest paid | $37 | $424 | $4,206 |
Operations
Operations | 12 Months Ended |
Jun. 30, 2014 | |
Operations | ' |
Operations | ' |
(1) Operations | |
Aspen Technology, Inc., together with its subsidiaries, is a leading global provider of mission-critical process optimization software solutions designed to manage and optimize plant and process design, operational performance, and supply chain planning. Our aspenONE software and related services have been developed for companies in the process industries, which consist of energy, chemicals, engineering and construction, as well as consumer packaged goods, power, metals and mining, pulp and paper, pharmaceuticals and biofuels. Customers use our solutions to improve their competitiveness and profitability by increasing throughput and productivity, reducing operating costs, enhancing capital efficiency, and decreasing working capital requirements. We operate globally in 31 countries as of June 30, 2014. | |
Significant_Accounting_Policie
Significant Accounting Policies | 12 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Significant Accounting Policies | ' | ||||||||||||||||
Significant Accounting Policies | ' | ||||||||||||||||
(2) Significant Accounting Policies | |||||||||||||||||
(a) Principles of Consolidation | |||||||||||||||||
The accompanying consolidated financial statements include the accounts of Aspen Technology, Inc. and our wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. | |||||||||||||||||
Reclassifications | |||||||||||||||||
Certain line items in prior period financial statements have been reclassified to conform to currently reported presentations. | |||||||||||||||||
(b) Management Estimates | |||||||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. | |||||||||||||||||
(c) Cash and Cash Equivalents | |||||||||||||||||
Cash and cash equivalents consist of short-term, highly liquid investments with remaining maturities of three months or less when purchased. | |||||||||||||||||
(d) Marketable Securities | |||||||||||||||||
The following table summarizes the fair value, the amortized cost and unrealized holding gains (losses) on our marketable securities as of June 30, 2014 and 2013: | |||||||||||||||||
Fair Value | Cost | Unrealized | Unrealized | ||||||||||||||
Gains | Losses | ||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||
June 30, 2014: | |||||||||||||||||
U.S. corporate bonds | $ | 67,619 | $ | 67,587 | $ | 39 | $ | (7 | ) | ||||||||
| | | | | | | | | | | | | | ||||
Total short-term marketable securities | $ | 67,619 | $ | 67,587 | $ | 39 | $ | (7 | ) | ||||||||
| | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | ||||
U.S. corporate bonds | $ | 31,270 | $ | 31,290 | $ | 1 | $ | (21 | ) | ||||||||
| | | | | | | | | | | | | | ||||
Total long-term marketable securities | $ | 31,270 | $ | 31,290 | $ | 1 | $ | (21 | ) | ||||||||
| | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | ||||
June 30, 2013: | |||||||||||||||||
U.S. corporate bonds | $ | 57,015 | $ | 57,046 | $ | 8 | $ | (39 | ) | ||||||||
| | | | | | | | | | | | | | ||||
Total short-term marketable securities | $ | 57,015 | $ | 57,046 | $ | 8 | $ | (39 | ) | ||||||||
| | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | ||||
U.S. corporate bonds | $ | 35,353 | $ | 35,402 | $ | — | $ | (49 | ) | ||||||||
| | | | | | | | | | | | | | ||||
Total long-term marketable securities | $ | 35,353 | $ | 35,402 | $ | — | $ | (49 | ) | ||||||||
| | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | ||||
Our marketable securities are classified as available-for-sale and reported at fair value on the consolidated balance sheets. Net unrealized gains (losses) are reported as a separate component of accumulated other comprehensive income, net of tax. Realized gains and losses on investments are recognized in earnings as incurred. Our investments consist primarily of investment grade fixed income corporate debt securities with maturity dates ranging from July 2014 through May 2016 as of June 30, 2014 and from July 2013 through February 2015 as of June 30, 2013, respectively. | |||||||||||||||||
We review our marketable securities for impairment at each reporting period to determine if any of our securities have experienced an other-than-temporary decline in fair value in accordance with the provisions of ASC Topic 320, Investments—Debt and Equity Securities. We consider factors, such as the length of time and extent to which the market value has been less than the cost, the financial condition and near-term prospects of the issuer, our intent to sell, or whether it is more likely than not we will be required to sell the investment before recovery of its amortized cost basis. If we believe that an other-than-temporary decline in fair value has occurred, we write down the investment to fair value and recognize the credit loss in earnings and the non-credit loss in accumulated other comprehensive income. During fiscal 2014 and 2013, our marketable securities were not considered other-than-temporarily impaired and, as such, we did not recognize impairment losses during the periods then ended. Unrealized losses are attributable to changes in interest rates. | |||||||||||||||||
(e) Property and Equipment | |||||||||||||||||
Property and equipment are stated at cost. We provide for depreciation and amortization, primarily computed using the straight-line method, by charges to operations in amounts estimated to allocate the cost of the assets over their estimated useful lives, as follows: | |||||||||||||||||
Asset Classification | Estimated Useful Life | ||||||||||||||||
Computer equipment | 3 years | ||||||||||||||||
Purchased software | 3 - 5 years | ||||||||||||||||
Furniture and fixtures | 3 - 10 years | ||||||||||||||||
Leasehold improvements | Life of lease or asset, whichever is shorter | ||||||||||||||||
Depreciation expense was $3.3 million, $3.4 million and $3.5 million for fiscal 2014, 2013 and 2012, respectively. | |||||||||||||||||
(f) Revenue Recognition | |||||||||||||||||
Overview of Licensing Model Changes | |||||||||||||||||
Transition to the aspenONE Licensing Model | |||||||||||||||||
Prior to fiscal 2010, we offered term or perpetual licenses to specific products, or specifically defined sets of products, which we refer to as point products. The majority of our license revenue was recognized under an "upfront revenue model," in which the net present value of the aggregate license fees was recognized as revenue upon shipment of the point products. Customers typically received one year of post-contract software maintenance and support, or SMS, with their license agreements and then could elect to renew SMS annually. Revenue from SMS was recognized ratably over the period in which the SMS was delivered. | |||||||||||||||||
In fiscal 2010, we introduced the following changes to our licensing model: | |||||||||||||||||
(i) | |||||||||||||||||
We began offering our software on a subscription basis, allowing our customers access to all products within a licensed suite (aspenONE Engineering or aspenONE Manufacturing and Supply Chain). SMS is included for the entire term of the arrangement and customers are entitled to any software products or updates introduced into the licensed suite. We refer to this license arrangement as our aspenONE licensing model. | |||||||||||||||||
(ii) | |||||||||||||||||
We began to include SMS for the entire term on our point product term arrangements. | |||||||||||||||||
Revenue related to our aspenONE licensing model and point product arrangements with Premier Plus SMS are both recognized over the term of the arrangement on a ratable basis. The changes to our licensing model introduced in fiscal 2010 did not change the method or timing of customer billings or cash collections. | |||||||||||||||||
Impact of Licensing Model Changes | |||||||||||||||||
The principal accounting implications of the changes to our licensing model in fiscal 2010 are as follows: | |||||||||||||||||
• | |||||||||||||||||
Prior to fiscal 2010, the majority of our license revenue was recognized on an upfront basis. Since the upfront model resulted in the net present value of multiple years of future installments being recognized at the time of shipment, the changes to our licensing model resulted in a reduction in our software license revenue for fiscal 2010, 2011 and 2012 as compared to the fiscal years preceding our licensing model changes. These changes did not impact the incurrence or timing of our expenses, and there was no corresponding expense reduction to offset the lower revenue, resulting in operating losses for fiscal 2010, 2011 and 2012. By fiscal 2013, the number of license arrangements renewed on the aspenONE licensing model resulted in ratable revenue sufficient to generate an operating profit. | |||||||||||||||||
• | |||||||||||||||||
Since fiscal 2010, the SMS component of our services and other revenue ("legacy SMS revenue") has decreased, and been offset by a corresponding increase in subscription and software revenue as customers have transitioned to our aspenONE licensing model. Under our aspenONE licensing model and for point product arrangements with Premier Plus SMS included for the full contract term, the entire arrangement fee, including the SMS component, is included within subscription and software revenue. | |||||||||||||||||
Legacy SMS revenue is no longer significant in relation to our total revenue due to the number of our term license arrangements that have been converted to the aspenONE licensing model. As a result, beginning with fiscal 2014, legacy SMS revenue is included within subscription and software revenue in our consolidated statements of operations. Prior to fiscal 2014, legacy SMS revenue was included within services and other revenue in our consolidated statements of operations. For further information, please refer to the "Revenue Reclassification" section below. | |||||||||||||||||
• | |||||||||||||||||
Installment payments from aspenONE agreements and from point product arrangements with SMS included for the contract term are not considered fixed or determinable, and as a result, are not included in installments receivable. Accordingly, our installments receivable balance has decreased as licenses previously executed under our upfront revenue model reached the end of their terms. | |||||||||||||||||
• | |||||||||||||||||
The amount of our deferred revenue has increased as more revenue from our term license portfolio has been recognized on a ratable basis. | |||||||||||||||||
Introduction of our Premier Plus SMS Offering | |||||||||||||||||
Beginning in fiscal 2012, we introduced our Premier Plus SMS offering to provide more value to our customers. As part of this offering, customers receive 24×7 support, faster response times, dedicated technical advocates and access to web-based training modules. The Premier Plus SMS offering is only provided to customers that commit to SMS for the entire term of the arrangement. Our annually renewable legacy SMS offering continues to be available to customers with legacy term and perpetual license agreements. | |||||||||||||||||
The introduction of our Premier Plus SMS offering in fiscal 2012 resulted in a change to the revenue recognition of point product arrangements that include Premier Plus SMS for the term of the arrangement. Since we do not have vendor-specific objective evidence of fair value, or VSOE, for our Premier Plus SMS offering, the SMS element of our point product arrangements is not separable, resulting in revenue being recognized ratably over the term of the arrangement, once the other revenue recognition criteria have been met. Prior to fiscal 2012, license revenue was recognized on the due date of each annual installment, provided all revenue recognition criteria were met. The introduction of our Premier Plus SMS offering did not change the revenue recognition for our aspenONE licensing arrangements. | |||||||||||||||||
Revenue Recognition | |||||||||||||||||
We generate revenue from the following sources: (1) licensing software products; (2) providing SMS and training; and (3) providing professional services. We sell our software products to end users under fixed-term and perpetual licenses. As a standard business practice, we offer extended payment term options for our fixed-term license arrangements, which are generally payable on an annual basis. Certain of our fixed-term license agreements include product mixing rights that allow customers the flexibility to change or alternate the use of multiple products included in the license arrangement after those products are delivered to the customer. We refer to these arrangements as token arrangements. Tokens are fixed units of measure. The amount of software usage is limited by the number of tokens purchased by the customer. | |||||||||||||||||
Four basic criteria must be satisfied before software license revenue can be recognized: persuasive evidence of an arrangement between us and an end user; delivery of our product has occurred; the fee for the product is fixed or determinable; and collection of the fee is probable. | |||||||||||||||||
Persuasive evidence of an arrangement—We use a signed contract as evidence of an arrangement for software licenses and SMS. For professional services we use a signed contract and a work proposal to evidence an arrangement. In cases where both a signed contract and a purchase order are required by the customer, we consider both taken together as evidence of the arrangement. | |||||||||||||||||
Delivery of our product—Software and the corresponding access keys are generally delivered to customers via disk media with standard shipping terms of Free Carrier, our warehouse (i.e., FCA, named place). Our software license agreements do not contain conditions for acceptance. | |||||||||||||||||
Fee is fixed or determinable—We assess whether a fee is fixed or determinable at the outset of the arrangement. Significant judgment is involved in making this assessment. | |||||||||||||||||
Under our upfront revenue model, we are able to demonstrate that the fees are fixed or determinable for all arrangements, including those for our term licenses that contain extended payment terms. We have an established history of collecting under the terms of these contracts without providing concessions to customers. In addition, we also assess whether a contract modification to an existing term arrangement constitutes a concession. In making this assessment, significant analysis is performed to ensure that no concessions are given. Our software license agreements do not include a right of return or exchange. For license arrangements executed under the upfront revenue model, we recognize license revenue upon delivery of the software product, provided all other revenue recognition requirements are met. | |||||||||||||||||
We cannot assert that the fees under our aspenONE licensing model and point product arrangements with Premier Plus SMS are fixed or determinable because the rights provided to customers, and the economics of the arrangements, are not comparable to our transactions with other customers under the upfront revenue model. As a result, the amount of revenue recognized for these arrangements is limited by the amount of customer payments that become due. | |||||||||||||||||
Collection of fee is probable—We assess the probability of collecting from each customer at the outset of the arrangement based on a number of factors, including the customer's payment history, its current creditworthiness, economic conditions in the customer's industry and geographic location, and general economic conditions. If in our judgment collection of a fee is not probable, revenue is recognized as cash is collected, provided all other conditions for revenue recognition have been met. | |||||||||||||||||
Vendor-Specific Objective Evidence of Fair Value | |||||||||||||||||
We have established VSOE for certain SMS offerings, professional services, and training, but not for our software products or our Premier Plus SMS offering. We assess VSOE for SMS, professional services, and training, based on an analysis of standalone sales of the offerings using the bell-shaped curve approach. We do not have a history of selling our Premier Plus SMS offering to customers on a standalone basis, and as a result are unable to establish VSOE for this deliverable. As of July 1, 2014, we are no longer able to establish VSOE for legacy SMS offerings sold with our perpetual license arrangements. As a result, all perpetual license agreements that include legacy SMS entered into subsequent to June 30, 2014 will be recognized ratably over the legacy SMS service period. Loss of VSOE on legacy SMS offerings sold with our perpetual license arrangements is not expected to have a material impact on our revenue in fiscal 2015. | |||||||||||||||||
We allocate the arrangement consideration among the elements included in our multi-element arrangements using the residual method. Under the residual method, the VSOE of the undelivered elements is deferred and the remaining portion of the arrangement fee is recognized as revenue upon delivery of the software, assuming all other revenue recognition criteria are met. If VSOE does not exist for an undelivered element in an arrangement, revenue is deferred until such evidence does exist for the undelivered elements, or until all elements are delivered, whichever is earlier. Under the upfront revenue model, the residual license fee is recognized upon delivery of the software provided all other revenue recognition criteria were met. Arrangements that qualified for upfront recognition during fiscal 2014 and prior periods included sales of perpetual licenses, amendments to existing legacy term arrangements and renewals of legacy term arrangements. | |||||||||||||||||
Subscription and Software Revenue | |||||||||||||||||
Subscription and software revenue consists of product and related revenue from our (i) aspenONE licensing model; (ii) point product arrangements with our Premier Plus SMS offering included for the contract term; (iii) legacy arrangements including (a) amendments to existing legacy term arrangements, (b) renewals of legacy term arrangements and (c) legacy arrangements that are being recognized over time as a result of not previously meeting one or more of the requirements for recognition under the upfront revenue model; (iv) legacy SMS arrangements; and (v) perpetual arrangements. | |||||||||||||||||
When a customer elects to license our products under our aspenONE licensing model, our Premier Plus SMS offering is included for the entire term of the arrangement and the customer receives, for the term of the arrangement, the right to any new unspecified future software products and updates that may be introduced into the licensed aspenONE software suite. Due to our obligation to provide unspecified future software products and updates, we are required to recognize revenue ratably over the term of the arrangement, once the other revenue recognition criteria noted above have been met. | |||||||||||||||||
Our point product arrangements with Premier Plus SMS include SMS for the term of the arrangement. Since we do not have VSOE for our Premier Plus SMS offering, the SMS element of our point product arrangements is not separable. As a result, revenue associated with point product arrangements with Premier Plus SMS included for the contract term is recognized ratably over the term of the arrangement, once the other revenue recognition criteria have been met. | |||||||||||||||||
Perpetual and legacy term license arrangements do not include the same rights as those provided to customers under the aspenONE licensing model and point product arrangements with Premier Plus SMS. Legacy SMS revenue is generated from legacy SMS offerings provided in support of perpetual and legacy term license arrangements. Customers typically receive SMS for one year and then can elect to renew SMS annually. During fiscal 2014 and prior periods, we had VSOE for certain legacy SMS offerings sold with perpetual and term license arrangements and could therefore separate the undelivered elements. Accordingly, license fee revenue for perpetual and legacy term license arrangements was recognized upon delivery of the software products using the residual method, provided all other revenue recognition requirements were met. VSOE of fair value for the undelivered SMS component sold with our perpetual and term license arrangements was deferred and subsequently amortized into revenue ratably over the contractual term of the SMS arrangement. As of July 1, 2014, we are no longer able to establish VSOE for our legacy SMS offerings sold with our perpetual license arrangements. As a result, all perpetual license agreements that include legacy SMS entered into subsequent to June 30, 2014 will be recognized ratably over the legacy SMS service period. Loss of VSOE on legacy SMS offerings sold with our perpetual license arrangements is not expected to have a material impact on our revenue in fiscal 2015. | |||||||||||||||||
Revenue Reclassification | |||||||||||||||||
Prior to fiscal 2014, legacy SMS revenue was classified within services and other revenue in our consolidated statements of operations. Cost of legacy SMS revenue was included within cost of services and other revenue. Beginning with fiscal 2014, legacy SMS revenue is included within subscription and software revenue in our consolidated statements of operations. We reclassified legacy SMS revenue into subscription and software revenue in our consolidated statements of operations based on the following rationale: | |||||||||||||||||
i) | |||||||||||||||||
Since fiscal 2010, legacy SMS revenue has decreased, and been offset by a corresponding increase in subscription and software revenue as customers have transitioned to our aspenONE licensing model and to point product arrangements with Premier Plus SMS. | |||||||||||||||||
ii) | |||||||||||||||||
Legacy SMS revenue is no longer significant in relation to our total revenue due to the number of our term license arrangements that have been converted to the aspenONE licensing model. | |||||||||||||||||
iii) | |||||||||||||||||
Legacy SMS revenue will continue to decrease as expiring license arrangements are renewed on the aspenONE licensing model. | |||||||||||||||||
iv) | |||||||||||||||||
We manage legacy SMS as a part of our broader software licensing business. The distinction between legacy SMS revenue and revenue from aspenONE licensing and point product arrangements with Premier Plus SMS included for the full contract term no longer represents a meaningful difference from a line of business standpoint since we assess business performance on a combined basis. | |||||||||||||||||
v) | |||||||||||||||||
Legacy SMS revenue and revenue from our aspenONE license arrangements share the same revenue recognition methodology and are both recognized on a ratable basis. | |||||||||||||||||
The following table summarizes the impact of revenue and cost of revenue reclassifications for fiscal 2013 and 2012: | |||||||||||||||||
Classification in Consolidated Statements of | Year Ended June 30, | ||||||||||||||||
Operations for the Year Ended June 30, | |||||||||||||||||
2014 | 2013 and 2012 | 2014 | 2013 | 2012 | |||||||||||||
(Dollars in Thousands) | |||||||||||||||||
Legacy SMS revenue | Subscription and software | Services and other | $ | 30,341 | $ | 36,931 | $ | 46,777 | |||||||||
Cost of Legacy SMS revenue | Subscription and software | Services and other | $ | 5,571 | $ | 7,360 | $ | 10,152 | |||||||||
Prior to fiscal 2014, services and other revenue included revenue related to professional services, training, legacy SMS and other revenue. Beginning with fiscal 2014, legacy SMS revenue is included within subscription and software revenue in our consolidated statements of operations. | |||||||||||||||||
The following tables summarize the impact of legacy SMS revenue and cost of revenue reclassification on our previously presented consolidated statements of operations for fiscal 2013 and 2012: | |||||||||||||||||
Impact on Consolidated Statements | |||||||||||||||||
of Operations for the | |||||||||||||||||
Year Ended June 30, 2013 | |||||||||||||||||
As Previously | Reclassifications | As Currently | |||||||||||||||
Reported | Reported | ||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||
Subscription and software revenue: | |||||||||||||||||
Legacy SMS | $ | — | $ | 36,931 | $ | 36,931 | |||||||||||
Subscription and software | 239,654 | — | 239,654 | ||||||||||||||
| | | | | | | | | | | |||||||
$ | 239,654 | $ | 36,931 | $ | 276,585 | ||||||||||||
| | | | | | | | | | | |||||||
| | | | | | | | | | | |||||||
Services and other revenue: | |||||||||||||||||
Legacy SMS | $ | — | $ | (36,931 | ) | $ | (36,931 | ) | |||||||||
Professional services, training and other | 71,733 | — | 71,733 | ||||||||||||||
| | | | | | | | | | | |||||||
$ | 71,733 | $ | (36,931 | ) | $ | 34,802 | |||||||||||
| | | | | | | | | | | |||||||
| | | | | | | | | | | |||||||
Cost of subscription and software revenue: | |||||||||||||||||
Cost of legacy SMS revenue | $ | — | $ | 7,360 | $ | 7,360 | |||||||||||
Cost of subscription and software revenue | 12,788 | — | 12,788 | ||||||||||||||
| | | | | | | | | | | |||||||
$ | 12,788 | $ | 7,360 | $ | 20,148 | ||||||||||||
| | | | | | | | | | | |||||||
| | | | | | | | | | | |||||||
Cost of services and other revenue: | |||||||||||||||||
Cost of legacy SMS revenue | $ | — | $ | (7,360 | ) | $ | (7,360 | ) | |||||||||
Cost of professional services, training and other revenue | 37,560 | — | 37,560 | ||||||||||||||
| | | | | | | | | | | |||||||
$ | 37,560 | $ | (7,360 | ) | $ | 30,200 | |||||||||||
| | | | | | | | | | | |||||||
| | | | | | | | | | | |||||||
Impact on Consolidated Statements | |||||||||||||||||
of Operations for the | |||||||||||||||||
Year Ended June 30, 2012 | |||||||||||||||||
As Previously | Reclassifications | As Currently | |||||||||||||||
Reported | Reported | ||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||
Subscription and software revenue: | |||||||||||||||||
Legacy SMS | $ | — | $ | 46,777 | $ | 46,777 | |||||||||||
Subscription and software | 166,688 | — | 166,688 | ||||||||||||||
| | | | | | | | | | | |||||||
$ | 166,688 | $ | 46,777 | $ | 213,465 | ||||||||||||
| | | | | | | | | | | |||||||
| | | | | | | | | | | |||||||
Services and other revenue: | |||||||||||||||||
Legacy SMS | $ | — | $ | (46,777 | ) | $ | (46,777 | ) | |||||||||
Professional services, training and other | 76,446 | — | 76,446 | ||||||||||||||
| | | | | | | | | | | |||||||
$ | 76,446 | $ | (46,777 | ) | $ | 29,669 | |||||||||||
| | | | | | | | | | | |||||||
| | | | | | | | | | | |||||||
Cost of subscription and software revenue: | |||||||||||||||||
Cost of legacy SMS revenue | $ | — | $ | 10,152 | $ | 10,152 | |||||||||||
Cost of subscription and software revenue | 10,617 | — | 10,617 | ||||||||||||||
| | | | | | | | | | | |||||||
$ | 10,617 | $ | 10,152 | $ | 20,769 | ||||||||||||
| | | | | | | | | | | |||||||
| | | | | | | | | | | |||||||
Cost of services and other revenue: | |||||||||||||||||
Cost of legacy SMS revenue | $ | — | $ | (10,152 | ) | $ | (10,152 | ) | |||||||||
Cost of professional services, training and other revenue | 41,660 | — | 41,660 | ||||||||||||||
| | | | | | | | | | | |||||||
$ | 41,660 | $ | (10,152 | ) | $ | 31,508 | |||||||||||
| | | | | | | | | | | |||||||
| | | | | | | | | | | |||||||
Services and Other | |||||||||||||||||
Professional Services Revenue | |||||||||||||||||
Professional services are provided to customers on a time-and-materials (T&M) or fixed-price basis. We recognize professional services fees for our T&M contracts based upon hours worked and contractually agreed-upon hourly rates. Revenue from fixed-price engagements is recognized using the proportional performance method based on the ratio of costs incurred to the total estimated project costs. Project costs are typically expensed as incurred. The use of the proportional performance method is dependent upon our ability to reliably estimate the costs to complete a project. We use historical experience as a basis for future estimates to complete current projects. Additionally, we believe that costs are the best available measure of performance. Out-of-pocket expenses which are reimbursed by customers are recorded as revenue. | |||||||||||||||||
In certain circumstances, professional services revenue may be recognized over a longer time period than the period over which the services are performed. If the costs to complete a project are not estimable or the completion is uncertain, the revenue is recognized upon completion of the services. In circumstances in which professional services are sold as a single arrangement with, or in contemplation of, a new aspenONE license or point product arrangement with Premier Plus SMS, revenue is deferred and recognized on a ratable basis over the longer of (i) the period the services are performed, or (ii) the license term. When we provide professional services considered essential to the functionality of the software, we recognize the combined revenue from the sale of the software and related services using the completed contract or percentage-of-completion method. | |||||||||||||||||
We have occasionally been required to commit unanticipated additional resources to complete projects, which resulted in losses on those contracts. Provisions for estimated losses on contracts are made during the period in which such losses become probable and can be reasonably estimated. | |||||||||||||||||
Training Revenue | |||||||||||||||||
We provide training services to our customers, including on-site, Internet-based, public and customized training. Revenue is recognized in the period in which the services are performed. In circumstances in which training services are sold as a single arrangement with, or in contemplation of, a new aspenONE license or point product arrangement with Premier Plus SMS, revenue is deferred and recognized on a ratable basis over the longer of (i) the period the services are performed or (ii) the license term. | |||||||||||||||||
Deferred Revenue | |||||||||||||||||
Deferred revenue includes amounts billed or collected in advance of revenue recognition, including arrangements under the aspenONE licensing model, point product arrangements with Premier Plus SMS, legacy SMS arrangements, professional services, and training. Under the aspenONE licensing model and for point product arrangements with Premier Plus SMS, VSOE does not exist for the undelivered elements, and as a result the arrangement fees are recognized ratably (i.e., on a subscription basis) over the term of the license. Deferred revenue is recorded as each invoice becomes due. | |||||||||||||||||
For arrangements under the upfront revenue model, a portion of the arrangement fee is generally recorded as deferred revenue due to the inclusion of an undelivered element, typically certain of our legacy SMS offerings or professional services. The amount of revenue allocated to undelivered elements is based on the VSOE for those elements using the residual method, and is earned and recognized as revenue as each element is delivered. | |||||||||||||||||
Other Licensing Matters | |||||||||||||||||
Our standard licensing agreements include a product warranty provision. We have not experienced significant claims related to software warranties beyond the scope of SMS support, which we are already obligated to provide, and consequently, we have not established reserves for warranty obligations. | |||||||||||||||||
Our agreements with our customers generally require us to indemnify the customer against claims that our software infringes third-party patent, copyright, trademark or other proprietary rights. Such indemnification obligations are generally limited in a variety of industry-standard respects, including our right to replace an infringing product. As of June 30, 2014 and 2013, we had not experienced any material losses related to these indemnification obligations and no claims with respect thereto were outstanding. We do not expect significant claims related to these indemnification obligations, and consequently, have not established any related reserves. | |||||||||||||||||
(g) Installments Receivable | |||||||||||||||||
Installments receivable resulting from product sales under the upfront revenue model are discounted to present value at prevailing market rates at the date the contract is signed, taking into consideration the customer's credit rating. The finance element is recognized using the effective interest method over the relevant license term and is classified as interest income. Installments receivable are classified as current and non-current in our consolidated balance sheets based on the maturity date of the related installment. Non-current installments receivable consist of receivables with a due date greater than one year from the period-end date. Current installments receivable consist of invoices with a due date of less than one year but greater than 45 days from the period-end date. Once an installments receivable invoice becomes due within 45 days, it is reclassified as a trade accounts receivable in our consolidated balance sheets. As a result, we did not have any past due installments receivable as of June 30, 2014. | |||||||||||||||||
Our non-current installments receivable are within the scope of Accounting Standards Update (ASU) No. 2010-20, Receivables (Topic 310): Disclosures about the Credit Quality of Financing Receivables and the Allowance for Credit Losses. As our portfolio of financing receivables arises from the sale of our software licenses, the methodology for determining our allowance for doubtful accounts is based on the collective population of receivables and is not stratified by class or portfolio segment. We consider factors such as existing economic conditions, country risk, customers' credit rating and past payment history in determining our allowance for doubtful accounts. We reserve against our installments receivable when the related trade accounts receivable have been past due for over a year, or when there is a specific risk of uncollectability. Our specific reserve reflects the full value of the related installments receivable for which collection has been deemed uncertain. We transfer an installment receivable reserve balance into a trade accounts receivable allowance when an installment receivable ages into a trade account receivable. | |||||||||||||||||
We write-off receivables when they are considered uncollectable based on our judgment. In instances when we write-off specific customers' trade accounts receivable, we also write off any related current and non-current installments receivable balances. | |||||||||||||||||
As of June 30, 2014, our gross current and non-current installments receivable of $0.7 million and $0.9 million are presented net of unamortized discounts and allowance for doubtful accounts of less than $0.1 million each, respectively. | |||||||||||||||||
As of June 30, 2013, our gross current and non-current installments receivable of $14.4 million and $1.1 million are presented net of unamortized discounts of $0.6 million and $0.1 million and net of allowance for doubtful accounts of $0.1 million each, respectively. | |||||||||||||||||
Under the aspenONE licensing model and for point product arrangements with Premier Plus SMS included for the contract term, the installment payments are not considered fixed or determinable and, as a result, are not included as installments receivable on our consolidated balance sheet. | |||||||||||||||||
(h) Allowance for Doubtful Accounts and Discounts | |||||||||||||||||
We make judgments as to our ability to collect outstanding receivables and provide allowances for the portion of receivables when a loss is reasonably expected to occur. The allowance for doubtful accounts is established to represent the best estimate of the net realizable value of the outstanding accounts receivable. The development of the allowance for doubtful accounts is based on a review of past due amounts, historical write-off and recovery experience, as well as aging trends affecting specific accounts and general operational factors affecting all accounts. In addition, factors are developed utilizing historical trends in bad debts and allowances. | |||||||||||||||||
We consider current economic trends when evaluating the adequacy of the allowance for doubtful accounts. If circumstances relating to specific customers change or unanticipated changes occur in the general business environment, our estimates of the recoverability of receivables could be further adjusted. | |||||||||||||||||
The following table presents our allowance for doubtful accounts activity for accounts receivable in fiscal 2014 and 2013, respectively: | |||||||||||||||||
Year Ended June 30, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||
Balance, beginning of year | $ | 1,615 | $ | 1,982 | |||||||||||||
Provision for bad debts | 1,922 | 521 | |||||||||||||||
Write-offs | (72 | ) | (888 | ) | |||||||||||||
| | | | | | | | ||||||||||
Balance, end of year | $ | 3,465 | $ | 1,615 | |||||||||||||
| | | | | | | | ||||||||||
| | | | | | | | ||||||||||
The following table summarizes our accounts receivable, net of the related allowance for doubtful accounts, as of June 30, 2014 and 2013. | |||||||||||||||||
Gross | Allowance | Net | |||||||||||||||
(Dollars in Thousands) | |||||||||||||||||
June 30, 2014: | |||||||||||||||||
Accounts Receivable | $ | 41,997 | $ | 3,465 | $ | 38,532 | |||||||||||
| | | | | | | | | | | |||||||
$ | 41,997 | $ | 3,465 | $ | 38,532 | ||||||||||||
| | | | | | | | | | | |||||||
| | | | | | | | | | | |||||||
June 30, 2013: | |||||||||||||||||
Accounts Receivable | $ | 38,603 | $ | 1,615 | $ | 36,988 | |||||||||||
| | | | | | | | | | | |||||||
$ | 38,603 | $ | 1,615 | $ | 36,988 | ||||||||||||
| | | | | | | | | | | |||||||
| | | | | | | | | | | |||||||
(i) Fair Value of Financial Instruments | |||||||||||||||||
We determine fair value of financial and non-financial assets and liabilities in accordance with provisions of ASC Topic 820, Fair Value Measurements and Disclosures (ASC 820). ASC 820 defines fair value as the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants. ASC 820 establishes a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities, and the lowest priority to unobservable inputs. The fair value hierarchy is as follows: | |||||||||||||||||
Level 1 Inputs—Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. | |||||||||||||||||
Level 2 Inputs—Inputs other than quoted prices included in Level 1 that are observable for an asset or a liability, either directly or indirectly. These might include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for an asset or a liability (such as interest rates, yield curves, volatilities, prepayment speeds, credit risks, etc.), or inputs that are derived principally from or corroborated by market data by correlation or other means. | |||||||||||||||||
Level 3 Inputs—Unobservable inputs for determining fair values of assets or liabilities that reflect an entity's own assumptions in pricing assets or liabilities. | |||||||||||||||||
Cash Equivalents. Cash equivalents are reported at fair value utilizing quoted market prices in identical markets, or "Level 1 Inputs." Our cash equivalents consist of short-term, highly liquid investments with remaining maturities of three months or less when purchased. | |||||||||||||||||
Marketable Securities. Marketable securities are reported at fair value calculated in accordance with the market approach, utilizing market consensus pricing models with quoted prices that are directly or indirectly observable, or "Level 2 Inputs". | |||||||||||||||||
Financial instruments not measured or recorded at fair value in the accompanying consolidated financial statements consist of accounts receivable, installments receivable and accounts payable. The estimated fair value of these financial instruments approximates their carrying value. | |||||||||||||||||
The following table summarizes financial assets and financial liabilities measured and recorded at fair value on a recurring basis in the accompanying consolidated balance sheets as of June 30, 2014 and 2013, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: | |||||||||||||||||
Fair Value Measurements at | |||||||||||||||||
Reporting Date Using, | |||||||||||||||||
Quoted Prices in | Significant Other | ||||||||||||||||
Active Markets for | Observable Inputs | ||||||||||||||||
Identical Assets | (Level 2 Inputs) | ||||||||||||||||
(Level 1 Inputs) | |||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||
June 30, 2014: | |||||||||||||||||
Cash equivalents | $ | 175,875 | $ | — | |||||||||||||
Marketable securities | — | 98,889 | |||||||||||||||
June 30, 2013: | |||||||||||||||||
Cash equivalents | $ | 117,010 | $ | — | |||||||||||||
Marketable securities | — | 92,368 | |||||||||||||||
At June 30, 2014 and 2013, we did not have any assets or liabilities measured at fair value on a recurring basis using significant unobservable inputs ("Level 3 Inputs"). | |||||||||||||||||
Certain non-financial assets, including goodwill, finite-lived intangible assets and other non-financial long-lived assets, are measured at fair value using market and income approaches on a non-recurring basis when there is an indication of impairment. | |||||||||||||||||
(j) Computer Software Development Costs | |||||||||||||||||
Certain computer software development costs are capitalized in the accompanying consolidated balance sheets. Capitalization of computer software development costs begins upon establishing technological feasibility defined as meeting specifications determined by the program design. Amortization of capitalized computer software development costs is provided on a product-by-product basis using the greater of (a) the amount computed using the ratio that current gross revenue for a product bears to total of current and anticipated future gross revenue for that product or (b) the straight-line method, beginning upon commercial release of the product, and continuing over the remaining estimated economic life of the product, not to exceed three years. | |||||||||||||||||
Total computer software costs capitalized were $0.7 million, $1.2 million and $0.5 million during the years ended June 30, 2014, 2013 and 2012, respectively. Total amortization expense charged to operations was approximately $1.0 million, $1.1 million and $1.6 million for the years ended June 30, 2014, 2013 and 2012, respectively. Computer software development accumulated amortization totaled $72.7 million and $71.5 million as of June 30, 2014 and 2013, respectively. Weighted average remaining useful life of computer software development costs was 1.9 years and 1.2 years at June 30, 2014 and 2013, respectively. | |||||||||||||||||
At each balance sheet date, we evaluate the unamortized capitalized software costs for potential impairment by comparing the balance to the net realizable value of the products. During the years ending June 30, 2014, 2013 and 2012, our computer software development costs were not considered impaired and as such, we did not recognize impairment losses during the periods then ended. | |||||||||||||||||
(k) Foreign Currency Translation | |||||||||||||||||
The determination of the functional currency of subsidiaries is based on the subsidiaries' financial and operational environment and is the local currency of the subsidiary. Gains and losses from foreign currency translation related to entities whose functional currency is their local currency are credited or charged to accumulated other comprehensive income included in stockholders' equity in the consolidated balance sheets. In all instances, foreign currency transaction and remeasurement gains or losses are credited or charged to the consolidated statements of operations as incurred as a component of other income (expense), net. Foreign currency transaction and remeasurement losses were $2.3 million, $1.2 million and $3.7 million in fiscal 2014, 2013 and 2012, respectively. | |||||||||||||||||
(l) Net Income (Loss) Per Share | |||||||||||||||||
Basic income (loss) per share is determined by dividing net income (loss) by the weighted average common shares outstanding during the period. Diluted income (loss) per share is determined by dividing net income (loss) by diluted weighted average shares outstanding during the period. Diluted weighted average shares reflect the dilutive effect, if any, of potential common shares. To the extent their effect is dilutive, employee equity awards and other commitments to be settled in common stock are included in the calculation of diluted income (loss) per share based on the treasury stock method. | |||||||||||||||||
For the years ended June 30, 2014 and 2013, certain employee equity awards were anti-dilutive based on the treasury stock method. For year ended June 30, 2012, all potential common shares were anti-dilutive due to the net loss. The calculations of basic and diluted net income (loss) per share and basic and diluted weighted average shares outstanding are as follows: | |||||||||||||||||
Year Ended June 30, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
(Dollars and Shares in Thousands, | |||||||||||||||||
Except per Share Data) | |||||||||||||||||
Net income (loss) | $ | 85,783 | $ | 45,262 | $ | (13,808 | ) | ||||||||||
| | | | | | | | | | | |||||||
| | | | | | | | | | | |||||||
Weighted average shares outstanding | 92,648 | 93,586 | 93,780 | ||||||||||||||
Dilutive impact from: | |||||||||||||||||
Employee equity awards | 1,017 | 1,824 | — | ||||||||||||||
Dilutive weighted average shares outstanding | 93,665 | 95,410 | 93,780 | ||||||||||||||
Income (loss) per share | |||||||||||||||||
Basic | $ | 0.93 | $ | 0.48 | $ | (0.15 | ) | ||||||||||
Dilutive | $ | 0.92 | $ | 0.47 | $ | (0.15 | ) | ||||||||||
The following potential common shares were excluded from the calculation of dilutive weighted average shares outstanding because their effect would be anti-dilutive at the balance sheet date: | |||||||||||||||||
Year Ended June 30, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
(Shares in Thousands) | |||||||||||||||||
Employee equity awards | 291 | 443 | 6,554 | ||||||||||||||
(m) Concentration of Credit Risk | |||||||||||||||||
Financial instruments that potentially subject us to concentrations of credit risk are principally cash and cash equivalents, marketable securities, accounts receivable and installments receivable. Our cash is held in financial institutions, and our cash equivalents are invested in money market mutual funds that we believe to be of high credit quality. At June 30, 2014, our investments in marketable securities consist primarily of investment grade fixed income corporate debt securities with maturities ranging from less than 1 month to 23 months. We diversify our investment portfolio by investing in multiple types of investment-grade securities and attempt to mitigate a risk of loss by using a third-party investment manager. | |||||||||||||||||
Concentration of credit risk with respect to receivables is limited to certain customers to which we make substantial sales. To reduce risk, we assess the financial strength of our customers. We do not require collateral or other security in support of our receivables. As of June 30, 2014, one customer receivable balance represented approximately 11% of our total receivables. The balance was fully collected subsequent to June 30, 2014. | |||||||||||||||||
(n) Intangible Assets, Goodwill, Computer Software Developed for Internal Use and Long-Lived Assets | |||||||||||||||||
Intangible Assets: | |||||||||||||||||
We include in our amortizable intangible assets those intangible assets acquired in our business and asset acquisitions. We amortize acquired intangible assets with finite lives over their estimated economic lives, generally using the straight-line method. Each period, we evaluate the estimated remaining useful lives of acquired intangible assets to determine whether events or changes in circumstances warrant a revision to the remaining period of amortization. Acquired intangibles are removed from the accounts when fully amortized and no longer in use. | |||||||||||||||||
Intangible assets consist of the following as of June 30, 2014 and 2013: | |||||||||||||||||
Gross | Accumulated | Effect of | Net Carrying | Weighted | |||||||||||||
Carrying | Amortization | currency | Amount | Average | |||||||||||||
Amount | translation | Remaining | |||||||||||||||
Life (in Years) | |||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||
June 30, 2014: | |||||||||||||||||
Technology and patents | $ | 2,596 | $ | (1,899 | ) | $ | 197 | $ | 894 | 1.1 | |||||||
| | | | | | | | | | | | | | | | | |
Total | $ | 2,596 | $ | (1,899 | ) | $ | 197 | $ | 894 | 1.1 | |||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
June 30, 2013: | |||||||||||||||||
Technology and patents | $ | 2,596 | $ | (977 | ) | $ | 172 | $ | 1,791 | 2 | |||||||
| | | | | | | | | | | | | | | | | |
Total | $ | 2,596 | $ | (977 | ) | $ | 172 | $ | 1,791 | 2 | |||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Amortization expense for technology and patents is included in operating expenses and amounted to $0.9 million, $0.7 million and $0.1 million in fiscal 2014, 2013 and 2012, respectively. Amortization expense is expected to approximate $0.7 million and $0.1 million for fiscal 2015 and 2016, respectively. | |||||||||||||||||
Goodwill: | |||||||||||||||||
During fiscal 2014, we re-aligned our reporting units to reflect our revised operating and reportable segment structure (refer to Note 10). As a result of this re-alignment, goodwill previously assigned to our SMS, training and other reporting unit was combined with goodwill in our license reporting unit, which is currently known as the subscription and software reporting unit. The carrying amount of goodwill of our professional services reporting unit, currently known as the services reporting unit, was zero at June 30, 2014 and 2013 and consisted of gross goodwill of $5.1 million offset by accumulated impairment losses of $(5.1 million) as of the end of each period. | |||||||||||||||||
The changes in the carrying amount of goodwill for our subscription and software reporting unit during fiscal years ending June 30, 2014 and 2013 were as follows: | |||||||||||||||||
Amount | |||||||||||||||||
(Dollars in | |||||||||||||||||
Thousands) | |||||||||||||||||
Balance as of June 30, 2012: | |||||||||||||||||
Goodwill | $ | 84,968 | |||||||||||||||
Accumulated impairment losses | (65,569 | ) | |||||||||||||||
| | | | | |||||||||||||
$ | 19,399 | ||||||||||||||||
| | | | | |||||||||||||
Effect of currency translation | (267 | ) | |||||||||||||||
| | | | | |||||||||||||
Balance as of June 30, 2013: | |||||||||||||||||
Goodwill | $ | 84,701 | |||||||||||||||
Accumulated impairment losses | (65,569 | ) | |||||||||||||||
| | | | | |||||||||||||
$ | 19,132 | ||||||||||||||||
| | | | | |||||||||||||
| | | | | |||||||||||||
Effect of currency translation | 144 | ||||||||||||||||
| | | | | |||||||||||||
Balance as of June 30, 2014: | |||||||||||||||||
Goodwill | $ | 84,845 | |||||||||||||||
Accumulated impairment losses | (65,569 | ) | |||||||||||||||
| | | | | |||||||||||||
$ | 19,276 | ||||||||||||||||
| | | | | |||||||||||||
| | | | | |||||||||||||
We test goodwill for impairment annually (or more often if impairment indicators arise), at the reporting unit level. We first assess qualitative factors to determine whether the existence of events or circumstances indicates that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If we determine based on this assessment that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, we perform the two-step goodwill impairment test. The first step requires us to determine the fair value of the reporting unit and compare it to the carrying amount, including goodwill, of such reporting unit. If the fair value exceeds the carrying amount, no impairment loss is recognized. However, if the carrying amount of the reporting unit exceeds its fair value, the goodwill of the unit may be impaired. The amount of impairment, if any, is measured based upon the implied fair value of goodwill at the valuation date. | |||||||||||||||||
Fair value of a reporting unit is determined using a combined weighted average of a market-based approach (utilizing fair value multiples of comparable publicly traded companies) and an income-based approach (utilizing discounted projected cash flows). In applying the income-based approach, we would be required to make assumptions about the amount and timing of future expected cash flows, growth rates and appropriate discount rates. The amount and timing of future cash flows would be based on our most recent long-term financial projections. The discount rate we would utilize would be determined using estimates of market participant risk-adjusted weighted-average costs of capital and reflect the risks associated with achieving future cash flows. | |||||||||||||||||
We have elected December 31st as the annual impairment assessment date and perform additional impairment tests if triggering events occur. We performed our annual impairment test for the subscription and software reporting unit as of December 31, 2013 and, based upon the results of our qualitative assessment, determined that it was not likely that its fair value was less than its carrying amount. As such, we did not perform the two-step goodwill impairment test and did not recognize impairment losses as a result of our analysis. If an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value, goodwill will be evaluated for impairment between annual tests. No triggering events indicating goodwill impairment occurred during fiscal 2014 and 2013. | |||||||||||||||||
Computer Software Developed for Internal Use: | |||||||||||||||||
Computer software developed for internal use is capitalized in accordance with ASC Topic 350-40, Intangibles Goodwill and Other—Internal Use Software. We capitalize direct labor costs incurred to develop internal-use software during the application development stage after determining software technological requirements and obtaining management approval for funding projects probable of completion. | |||||||||||||||||
As of June 30, 2014 and 2013, capitalized costs for computer software developed for internal use amount to $22.7 million and $21.0 million and are presented net of accumulated amortization of $19.5 million and $18.3 million within property, plant and equipment in our consolidated balance sheets. | |||||||||||||||||
Impairment of Long-Lived Assets: | |||||||||||||||||
We evaluate our long-lived assets, which include finite-lived intangible assets, property and leasehold improvements for impairment as events and circumstances indicate that the carrying amount of an asset or a group of assets may not be recoverable. We assess the recoverability of the asset or a group of assets based on the undiscounted future cash flows the asset is expected to generate, and recognize an impairment loss when estimated undiscounted future cash flows expected to result from the use of the asset are less than its carrying value. If an asset or a group of assets are deemed to be impaired, the amount of the impairment loss, if any, represents the excess of the asset's or a group of assets' carrying value compared to their estimated fair values. | |||||||||||||||||
(o) Comprehensive Income (Loss) | |||||||||||||||||
Comprehensive income (loss) is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. Comprehensive income (loss) and its components for fiscal 2014, 2013 and 2012 are disclosed in the accompanying consolidated statements of comprehensive income (loss). | |||||||||||||||||
As of June 30, 2014 and 2013, accumulated other comprehensive income is comprised of foreign translation adjustments of $9.4 million and $7.3 million and net unrealized gains (losses) on available for sale securities of less than $0.1 million and ($0.1) million, respectively. | |||||||||||||||||
As of June 30, 2012 and 2011, accumulated other comprehensive income is comprised entirely of foreign translation adjustments of $8.1 million and $9.1 million, respectively. | |||||||||||||||||
(p) Accounting for Stock-Based Compensation | |||||||||||||||||
Stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense over the vesting period. | |||||||||||||||||
(q) Accounting for Transfers of Financial Assets | |||||||||||||||||
We derecognize financial assets, specifically accounts receivable and installments receivable, when control has been surrendered in compliance with ASC Topic 860, Transfers and Servicing. Transfers of accounts receivable and installments receivable that meet the requirements of ASC 860 for sale accounting treatment are removed from the balance sheet and gains or losses on the sale are recognized. If the conditions for sale accounting treatment are not met, or are no longer met, accounts receivable and installments receivable transferred are classified as collateralized receivables in the consolidated balance sheets and cash received from these transactions is classified as secured borrowings. Transaction costs associated with secured borrowings, if any, are treated as borrowing costs and recognized in interest expense. Once payment is received from a customer, the collateralized receivables and related secured borrowing balances are reduced. We had no outstanding secured borrowings and collateralized receivables as of June 30, 2014 and 2013 since the balance due to the financial institutions was repaid in full during the second quarter of fiscal 2013. | |||||||||||||||||
(r) Income Taxes | |||||||||||||||||
Deferred income taxes are recognized based on temporary differences between the financial statement and tax bases of assets and liabilities. Deferred tax assets and liabilities are measured using the statutory tax rates and laws expected to apply to taxable income in the years in which the temporary differences are expected to reverse. Valuation allowances are provided against net deferred tax assets if, based upon the available evidence, it is more likely than not that some 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 and the timing of the temporary differences becoming deductible. Management considers, among other available information, scheduled reversals of deferred tax liabilities, projected future taxable income, limitations of availability of net operating loss carryforwards, and other matters in making this assessment. | |||||||||||||||||
We do not provide deferred taxes on unremitted earnings of foreign subsidiaries since we intend to indefinitely reinvest either currently or sometime in the foreseeable future. Unrecognized provisions for taxes on undistributed earnings of foreign subsidiaries, which are considered indefinitely reinvested, are not material to our consolidated financial position or results of operations. We are continuously subject to examination by the IRS, as well as various state and foreign jurisdictions. The IRS and other taxing authorities may challenge certain deductions and credits reported by us on our income tax returns. In accordance with provisions of ASC Topic 740, Income Taxes (ASC 740), an entity should recognize a tax benefit when it is more-likely-than-not, based on the technical merits, that the position would be sustained upon examination by a taxing authority. The amount to be recognized, if the more-likely-than-not threshold was passed, should be measured as the largest amount of tax benefit that is greater than 50 percent likely of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. Furthermore, any change in the recognition, de-recognition or measurement of a tax position should be recorded in the period in which the change occurs. We account for interest and penalties related to uncertain tax positions as part of the provision for (benefit from) income taxes. | |||||||||||||||||
(s) Loss Contingencies | |||||||||||||||||
We accrue estimated liabilities for loss contingencies arising from claims, assessments, litigation and other sources when it is probable that a liability has been incurred and the amount of the claim assessment or damages can be reasonably estimated. We believe that we have sufficient accruals to cover any obligations resulting from claims, assessments or litigation that have met these criteria. Refer to Note 8 for discussion of these matters and related liability accruals. | |||||||||||||||||
(t) Advertising Costs | |||||||||||||||||
Advertising costs are expensed as incurred and are classified as sales and marketing expenses. We incurred advertising expenses of $2.1 million, $2.9 million and $2.2 million during fiscal 2014, 2013 and 2012, respectively. We had no prepaid advertising costs included in the accompanying consolidated balance sheets as of June 30, 2014 and 2013. | |||||||||||||||||
(u) Research and Development Expense | |||||||||||||||||
We charge research and development expenditures to expense as the costs are incurred. Research and development expenses consist primarily of personnel expenses related to the creation of new products, enhancements and engineering changes to existing products and costs of acquired technology prior to establishing technological feasibility. | |||||||||||||||||
During fiscal 2014, we acquired certain technology for $4.9 million that we plan to modify and enhance for release as a commercially available product. At the time we acquired the technology, the project to develop a commercially available product did not meet the definition of having reached technological feasibility and as such, the entire cost of the acquired technology was expensed as research and development expense. | |||||||||||||||||
(v) Recently Adopted Accounting Pronouncements | |||||||||||||||||
In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers. ASU No. 2014-09 was issued by the FASB as a part of the joint project with the International Accounting Standards Board (IASB) to clarify revenue recognition principles and develop a common revenue standard for the U.S. Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS). | |||||||||||||||||
ASU No. 2014-09 is effective for the fiscal years, and interim periods within those years, beginning after December 15, 2016. Early adoption of ASU No. 2014-09 is not permitted. The amendments included within ASU No. 2014-09 should be applied by using one of the following methods: | |||||||||||||||||
Retrospectively to each prior reporting period presented. The entity may elect any of the practical expedients described in ASU No. 2014-09 when applying this method. | |||||||||||||||||
Retrospectively with the cumulative effect of initially applying ASU No. 2014-09 recognized at the date of initial application. In the reporting periods that include the date of the initial application of ASU No. 2014-09, the entity should disclose the amount by which each financial statement line item is affected by the application of ASU No. 2014-09 in the current reporting period as compared to the guidance that was in effect before the change. | |||||||||||||||||
We expect to adopt ASU No. 2014-09 during the first quarter of fiscal 2018. We are currently evaluating the impact of ASU No. 2014-09 on our financial position, results of operations and cash flows. | |||||||||||||||||
In July 2013, the FASB issued ASU No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. ASU No. 2013-11 provides guidance on the financial statement presentation of unrecognized tax benefits when net operating losses, similar tax losses, or tax credit carryforwards exist. ASU No. 2013-11 requires entities to present unrecognized tax benefits as reductions of deferred tax assets for net operating losses, tax credit carryforwards, or similar losses if they are available to settle any additional income tax liabilities as a result of a tax position disallowance under the tax laws of the applicable jurisdiction. Unrecognized tax benefits should be presented as liabilities and should not be combined with deferred tax assets if net operating losses, tax credit carryforwards, or similar losses are not available to settle any additional income tax liabilities as a result of the tax position disallowance, and the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose. | |||||||||||||||||
ASU No. 2013-11 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013 and should be applied prospectively. Early adoption of ASU No. 2013-11 is permitted. We adopted ASU No. 2013-11 during the fourth quarter of fiscal 2013. The adoption of ASU No. 2013-11 did not have a material effect on our financial position, results of operations or cash flows. | |||||||||||||||||
Secured_Borrowings_and_Collate
Secured Borrowings and Collateralized Receivables | 12 Months Ended |
Jun. 30, 2014 | |
Secured Borrowings and Collateralized Receivables | ' |
Secured Borrowings and Collateralized Receivables | ' |
(3) Secured Borrowings and Collateralized Receivables | |
We had no outstanding secured borrowings as of June 30, 2014 and 2013 since the balance due to the financial institutions was repaid in full during fiscal 2013. Prior to the repayment of secured borrowings, we maintained arrangements with financial institutions for borrowings secured by our installments receivable contracts for which limited recourse existed against us. Under these programs, we and the financial institution negotiated the amount borrowed and interest rate secured by each receivable for each transaction. The customers' payments of the underlying receivables funded the repayment of the related amounts borrowed. The collateralized receivables earned interest income, and the secured borrowings accrued borrowing costs at approximately the same interest rate. These arrangements were accounted for as secured borrowings. | |
We recorded $0.2 million and $1.2 million of interest income associated with the collateralized receivables during fiscal 2013 and 2012, respectively, and recognized $0.3 million and $3.0 million of interest expense associated with the secured borrowings during the periods then ended. Proceeds from and payments on the secured borrowings are presented as components of cash flows from financing activities in the accompanying consolidated statements of cash flows. Reductions of secured borrowings were recognized as financing cash flows upon payment to the financial institutions, and operating cash flows from collateralized receivables were recognized upon customer payments of amounts due. | |
Supplemental_Balance_Sheet_Inf
Supplemental Balance Sheet Information | 12 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Supplemental Balance Sheet Information | ' | |||||||
Supplemental Balance Sheet Information | ' | |||||||
(4) Supplemental Balance Sheet Information | ||||||||
Property, equipment and leasehold improvements in the accompanying consolidated balance sheets consist of the following: | ||||||||
Year Ended June 30, | ||||||||
2014 | 2013 | |||||||
(Dollars in Thousands) | ||||||||
Property, equipment and leasehold improvements—at cost: | ||||||||
Computer equipment | $ | 11,772 | $ | 11,106 | ||||
Purchased software | 23,720 | 21,642 | ||||||
Furniture & fixtures | 4,530 | 4,475 | ||||||
Leasehold improvements | 3,448 | 3,379 | ||||||
Accumulated depreciation | (35,882 | ) | (32,773 | ) | ||||
| | | | | | | | |
Property, equipment and leasehold improvements—net | $ | 7,588 | $ | 7,829 | ||||
| | | | | | | | |
| | | | | | | | |
We account for asset retirement obligations in accordance with ASC Topic 410, Asset Retirement and Environmental Obligations. Our asset retirement obligations relate to leasehold improvements for leased properties. The balance of our asset retirement obligations was $0.6 million as of June 30, 2014 and 2013. | ||||||||
We account for restructuring activities in accordance with ASC Topic 420, Exit or Disposal Cost Obligations. We have undertaken no restructuring actions during fiscal 2014, 2013, or 2012. Net restructuring charges consisted of credits of less than $0.1 million in fiscal 2014 and 2013 and $0.3 million in fiscal 2012. Restructuring liabilities relate to the closure of facilities and contract termination costs. Accrued facility exit costs are included in accrued expenses and other current liabilities on the accompanying consolidated balance sheets and are stated at estimated fair value, net of estimated sub-lease income. Accrued facility exit costs were $0.1 million as of June 30, 2014 and 2013 and $0.9 million as of June 30, 2012. Cash payments related to accrued facility exit costs were less than $0.1 million during fiscal 2014 and $0.8 million and $3.0 million during fiscal 2013 and fiscal 2012, respectively. We expect to pay the remaining facility exit cost obligations over the remaining lease terms that will expire on various dates through 2017. As of June 30, 2014, anticipated net cash payments to settle these liabilities are $0.1 million. | ||||||||
Accrued expenses and other current liabilities in the accompanying consolidated balance sheets consist of the following: | ||||||||
Year Ended June 30, | ||||||||
2014 | 2013 | |||||||
(Dollars in Thousands) | ||||||||
Royalties and outside commissions | $ | 3,596 | $ | 4,312 | ||||
Payroll and payroll-related | 19,347 | 18,702 | ||||||
Other | 12,041 | 11,563 | ||||||
| | | | | | | | |
Total accrued expenses and other current liabilities | $ | 34,984 | $ | 34,577 | ||||
| | | | | | | | |
| | | | | | | | |
Other non-current liabilities in the accompanying consolidated balance sheets consist of the following: | ||||||||
Year Ended June 30, | ||||||||
2014 | 2013 | |||||||
(Dollars in Thousands) | ||||||||
Deferred rent | $ | 402 | $ | 862 | ||||
Other* | 11,448 | 11,515 | ||||||
| | | | | | | | |
Total other non-current liabilities | $ | 11,850 | $ | 12,377 | ||||
| | | | | | | | |
| | | | | | | | |
* | ||||||||
Other is comprised primarily of our net reserve for uncertain tax liabilities. See Note 7, "Income Taxes" for additional information. | ||||||||
Common_Stock
Common Stock | 12 Months Ended |
Jun. 30, 2014 | |
Common Stock | ' |
Common Stock | ' |
(5) Common Stock | |
On April 23, 2014, our Board of Directors approved a share repurchase program for up to $200 million worth of our common stock. This share repurchase program replaced the prior program approved by the Board of Directors on April 23, 2013 that had a value of up to $150 million and remaining capacity of approximately $37.5 million and was terminated on April 23, 2014. The program approved on April 23, 2013 had replaced a repurchase program approved by the Board of Directors on October 24, 2012 with a value of up to $100 million. The program approved on October 24, 2012 had replaced a repurchase program approved by the Board of Directors on November 1, 2011 with a value of up to $100 million. The timing and amount of any shares repurchased are based on market conditions and other factors. All share repurchases of our common stock have been recorded as treasury stock under the cost method. | |
We repurchased 3,110,114 shares and 3,064,151 shares of our common stock for $121.8 million and $84.7 million during fiscal 2014 and 2013, respectively. As of June 30, 2014, the remaining dollar value under the stock repurchase program approved on April 23, 2014 was $175.1 million. | |
StockBased_Compensation
Stock-Based Compensation | 12 Months Ended | |||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||
Stock-Based Compensation | ' | |||||||||||||||||||
Stock-Based Compensation | ' | |||||||||||||||||||
(6) Stock-Based Compensation | ||||||||||||||||||||
Stock Compensation Plans | ||||||||||||||||||||
In April 2010, the shareholders approved the establishment of the 2010 Equity Incentive Plan (the 2010 Plan), which provides for the issuance of a maximum of 7,000,000 shares of common stock. The 2010 Plan provides for the grant of incentive and nonqualified stock options, stock appreciation rights, restricted stock, restricted stock units, other stock-related awards, and performance awards that may be settled in cash, stock, or other property. As of June 30, 2014, there were 4,382,564 shares of common stock available for issuance subject to awards under the 2010 Plan. | ||||||||||||||||||||
In May 2005, the shareholders approved the establishment of the 2005 Stock Incentive Plan (the 2005 Plan), which provides for the issuance of a maximum of 4,000,000 shares of common stock. The 2005 Plan provides for the grant of incentive and nonqualified stock options and other stock-based awards, including the grant of shares based upon certain conditions, the grant of securities convertible into common stock and the grant of stock appreciation rights. Restricted stock and other stock-based awards granted under the 2005 Plan may not exceed, in the aggregate, 4,000,000 shares of common stock. As of June 30, 2014, there were 327,591 shares of common stock available for issuance subject to awards under the 2005 Plan. | ||||||||||||||||||||
General Award Terms | ||||||||||||||||||||
We issue stock options and restricted stock units (RSUs) to our employees and outside directors, pursuant to shareholder-approved equity compensation plans. Option awards are granted with an exercise price equal to the market closing price of our stock on the trading day prior to the grant date. Those options generally vest over four years and expire within 7 or 10 years of grant. RSUs generally vest over four years. Historically, our practice has been to settle stock option exercises and RSU vesting through newly-issued shares. | ||||||||||||||||||||
Stock Compensation Accounting | ||||||||||||||||||||
Our stock-based compensation is accounted for as awards of equity instruments. Our policy is to issue new shares upon the exercise of stock awards. We use the "with-and-without" approach for determining if excess tax benefits are realized under ASC 718. | ||||||||||||||||||||
We utilize the Black-Scholes option valuation model for estimating the fair value of options granted. The Black-Scholes option valuation model incorporates assumptions regarding expected stock price volatility, the expected life of the option, the risk-free interest rate, dividend yield and the market value of our common stock. The expected stock price volatility is determined based on our stock's historic prices over a period commensurate with the expected life of the award. The expected life of an option represents the period for which options are expected to be outstanding as determined by historic option exercises and cancellations. The risk-free interest rate is based on the U.S. Treasury yield curve for notes with terms approximating the expected life of the options granted. The expected dividend yield is zero, based on our history and expectation of not paying dividends on common shares. We recognize compensation costs on a straight-line basis, net of estimated forfeitures, over the requisite service period for time-vested awards. | ||||||||||||||||||||
The weighted average estimated fair value of option awards granted during fiscal 2014, 2013 and 2012 was $11.56, $9.76 and $6.49 respectively. | ||||||||||||||||||||
We utilized the Black-Scholes option valuation model with the following weighted average assumptions: | ||||||||||||||||||||
Year Ended June 30, | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
Risk-free interest rate | 1.3 | % | 0.6 | % | 1.1 | % | ||||||||||||||
Expected dividend yield | None | None | None | |||||||||||||||||
Expected life (in years) | 4.6 | 4.8 | 4.6 | |||||||||||||||||
Expected volatility factor | 39 | % | 49 | % | 50 | % | ||||||||||||||
The stock-based compensation expense and its classification in the accompanying consolidated statements of operations for fiscal 2014, 2013 and 2012 was as follows: | ||||||||||||||||||||
Year Ended June 30, | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||
Recorded as expenses: | ||||||||||||||||||||
Cost of service and other | $ | 1,239 | $ | 1,281 | $ | 1,168 | ||||||||||||||
Selling and marketing | 3,280 | 3,890 | 4,601 | |||||||||||||||||
Research and development | 4,129 | 2,969 | 1,334 | |||||||||||||||||
General and administrative | 5,408 | 6,497 | 5,303 | |||||||||||||||||
| | | | | | | | | | | ||||||||||
Total stock-based compensation | $ | 14,056 | $ | 14,637 | $ | 12,406 | ||||||||||||||
| | | | | | | | | | | ||||||||||
| | | | | | | | | | | ||||||||||
A summary of stock option and RSU activity under all equity plans in fiscal 2014 is as follows: | ||||||||||||||||||||
Stock Options | Restricted Stock Units | |||||||||||||||||||
Shares | Weighted | Weighted | Aggregate | Shares | Weighted | |||||||||||||||
Average | Average | Intrinsic | Average | |||||||||||||||||
Exercise | Remaining | Value | Grant | |||||||||||||||||
Price | Contractual | (in 000's) | Date Fair | |||||||||||||||||
Term | Value | |||||||||||||||||||
Outstanding at June 30, 2013 | 1,852,118 | $ | 14.68 | $ | 26,140 | 1,030,839 | $ | 17.69 | ||||||||||||
Granted | 352,795 | 33.06 | 415,938 | 33.07 | ||||||||||||||||
Settled (RSUs) | — | (563,586 | ) | 18.58 | ||||||||||||||||
Exercised | (723,330 | ) | 12.04 | — | — | |||||||||||||||
Cancelled / Forfeited | (235,055 | ) | 20.58 | (265,922 | ) | 21.21 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Outstanding at June 30, 2014 | 1,246,528 | $ | 20.3 | 7.14 | $ | 32,543 | 617,269 | $ | 25.74 | |||||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Vested and exercisable at June 30, 2014 | 733,078 | $ | 16.53 | 6.34 | $ | 21,894 | — | — | ||||||||||||
Vested and expected to vest at June 30, 2014 | 1,164,018 | $ | 19.96 | 7.07 | $ | 30,780 | 518,195 | $ | 25.84 | |||||||||||
During fiscal 2014, 2013 and 2012, the weighted average grant-date fair value of RSUs granted was $33.07, $23.46 and $15.52, respectively. During fiscal 2014, 2013 and 2012 the total fair value of vested shares from RSU grants amounted to $22.2 million, $22.5 million and $14.0 million, respectively. | ||||||||||||||||||||
As of June 30, 2014, the total future unrecognized compensation cost related to stock options and RSUs was $4.0 million and $13.2 million, respectively, and is expected to be recorded over a weighted average period of 2.3 years and 2.4 years, respectively. | ||||||||||||||||||||
The total intrinsic value of options exercised during fiscal 2014, 2013 and 2012 was $19.9 million, $55.7 million and $14.6 million, respectively. We received $8.7 million, $21.1 million and $8.9 million in cash proceeds from option exercises during fiscal 2014, 2013 and 2012, respectively. We paid $7.8 million, $7.7 million and $4.6 million for withholding taxes on vested RSUs during fiscal 2014, 2013 and 2012, respectively. | ||||||||||||||||||||
At June 30, 2014, common stock reserved for future issuance or settlement under equity compensation plans was 6.6 million shares. | ||||||||||||||||||||
The compensation committee and Board of Directors completed its annual program grant for fiscal 2015 and authorized and approved the grant of 331,742 RSUs and 281,085 stock options with a grant date of August 1, 2014. | ||||||||||||||||||||
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||
Jun. 30, 2014 | |||||||||||
Income Taxes | ' | ||||||||||
Income Taxes | ' | ||||||||||
(7) Income Taxes | |||||||||||
Income (loss) before provision for (benefit from) income taxes consists of the following: | |||||||||||
Year Ended June 30, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(Dollars in Thousands) | |||||||||||
Domestic | $ | 121,329 | $ | 54,587 | $ | (14,086 | ) | ||||
Foreign | 7,204 | 2,851 | (1,066 | ) | |||||||
| | | | | | | | | | | |
Income (loss) before provision for (benefit from) income taxes | $ | 128,533 | $ | 57,438 | $ | (15,152 | ) | ||||
| | | | | | | | | | | |
| | | | | | | | | | | |
The provision for (benefit from) income taxes shown in the accompanying consolidated statements of operations is composed of the following: | |||||||||||
Year Ended June 30, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(Dollars in Thousands) | |||||||||||
Federal— | |||||||||||
Current | $ | — | $ | — | $ | — | |||||
Deferred | 32,996 | 7,867 | (3,409 | ) | |||||||
State— | |||||||||||
Current | 528 | 136 | 191 | ||||||||
Deferred | 1,005 | 693 | 33 | ||||||||
Foreign— | |||||||||||
Current | 7,785 | 7,068 | 3,292 | ||||||||
Deferred | 436 | (3,588 | ) | (1,451 | ) | ||||||
| | | | | | | | | | | |
$ | 42,750 | $ | 12,176 | $ | (1,344 | ) | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
The provision for (benefit from) income taxes differs from that based on the federal statutory rate due to the following: | |||||||||||
Year Ended June 30, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(Dollars in Thousands) | |||||||||||
Federal tax provision (benefit) at statutory rate | $ | 44,989 | $ | 20,103 | $ | (5,303 | ) | ||||
State income taxes | 78 | 88 | 124 | ||||||||
Subpart F and dividend income | 6,667 | 4,456 | 4,189 | ||||||||
Foreign taxes and rate differences | 1,881 | 2,298 | 1,001 | ||||||||
Stock-based compensation | 631 | 900 | 2,968 | ||||||||
Tax credits | (8,902 | ) | (4,816 | ) | (3,913 | ) | |||||
Tax contingencies | (261 | ) | (168 | ) | (2,385 | ) | |||||
Return to provision adjustments | 150 | (149 | ) | 442 | |||||||
Domestic production activity deduction | (2,443 | ) | — | — | |||||||
Valuation allowance | (16 | ) | (1,813 | ) | 1,431 | ||||||
Benefit from foreign restructuring | — | (9,266 | ) | — | |||||||
Other | (24 | ) | 543 | 102 | |||||||
| | | | | | | | | | | |
Provision for (benefit from) income taxes | $ | 42,750 | $ | 12,176 | $ | (1,344 | ) | ||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Deferred tax assets (liabilities) consist of the following at June 30, 2014 and 2013: | |||||||||||
Year Ended June 30, | |||||||||||
2014 | 2013 | ||||||||||
(Dollars in | |||||||||||
Thousands) | |||||||||||
Deferred tax assets: | |||||||||||
Federal and state credits | $ | 4,354 | $ | 4,918 | |||||||
Foreign tax credits | 4,752 | 33,310 | |||||||||
Federal and state loss carryforwards | 104 | 6,221 | |||||||||
Capital loss carryforwards | 8,012 | 8,076 | |||||||||
Foreign loss carryforwards | 1,672 | 1,653 | |||||||||
Deferred revenue | 4,823 | 4,198 | |||||||||
Restructuring accruals | 26 | 34 | |||||||||
Other reserves and accruals | 6,074 | 4,834 | |||||||||
Intangible assets | 419 | 719 | |||||||||
Property, leasehold improvements, and other basis differences | 2,005 | 2,829 | |||||||||
Other temporary differences | 3,065 | 3,504 | |||||||||
| | | | | | | | ||||
35,306 | 70,296 | ||||||||||
Deferred tax liabilities: | |||||||||||
Deferred revenue | (194 | ) | (151 | ) | |||||||
Intangible assets | (1,295 | ) | (1,444 | ) | |||||||
Property, leasehold improvements, and other basis differences | (298 | ) | (16 | ) | |||||||
Other temporary differences | (826 | ) | (677 | ) | |||||||
| | | | | | | | ||||
(2,613 | ) | (2,288 | ) | ||||||||
Valuation allowance | (9,959 | ) | (9,943 | ) | |||||||
| | | | | | | | ||||
Net deferred tax assets | $ | 22,734 | $ | 58,065 | |||||||
| | | | | | | | ||||
| | | | | | | | ||||
As of June 30, 2014, we have available U.S. federal net operating loss carryforwards of $106.8 million which relate to stock-based compensation tax deductions in excess of book compensation expense (APIC NOLs) that will be credited to additional paid in capital when such deductions reduce taxes payable as determined based on a "with-and-without" approach. APIC NOLs will reduce federal taxes payable if realized in future periods, but NOLs relating to such benefits are not included in the table above. | |||||||||||
We have foreign net operating loss carryforwards of $6.9 million which will expire beginning in 2019 and others with no expiration date. We also have federal and state research and development tax credits, and alternative minimum tax (AMT) credit carryforwards of $ 4.4 million. The research and development tax credits expire at various dates from 2019 through 2034, while the AMT credit carryforwards have an unlimited carryforward period. | |||||||||||
In fiscal 2014 and fiscal 2013, we recorded reductions in the income taxes payable of $0.7 million and $0.5 million, respectively, with an increase to additional paid in capital, for the benefits of excess stock-based compensation deductions recognized during the period in the United States and United Kingdom. | |||||||||||
In fiscal 2013, we restructured our Canadian affiliate, AspenTech Canada Ltd (ATC). The restructuring was considered a deemed liquidation for tax purposes resulting in (i) the elimination of a deferred tax liability of $9.3 million associated with a basis difference and (ii) recognition of a capital loss for tax purposes of $22.2 million. | |||||||||||
Our valuation allowance for deferred tax assets was $10.0 million and $9.9 million as of June 30, 2014 and 2013 respectively. The most significant portion of the valuation allowance is attributable to a reserve against the U.S. capital loss carryforward deferred tax asset of $8.0 million discussed in the preceding paragraph. | |||||||||||
We have determined that we underwent an ownership change (as defined under section 382 of the Internal Revenue Code of 1986, as amended) during fiscal 2011. As such, the utilization of certain tax attributes is subject to an annual limitation. The annual limitation is not expected to impact the realizability of the deferred tax assets. | |||||||||||
For fiscal 2014, our income tax provision included amounts determined under the provisions of ASC 740 intended to satisfy additional income tax assessments, including interest and penalties, that could result from any tax return positions for which the likelihood of sustaining the position on audit does not meet a threshold of "more likely than not." Tax liabilities were recorded as a component of our income taxes payable and other non-current liabilities. The ultimate amount of taxes due will not be known until examinations are completed and settled or the audit periods are closed by statutes. | |||||||||||
A reconciliation of the reserve for uncertain tax positions is as follows: | |||||||||||
Year Ended June 30, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(Dollars in Thousands) | |||||||||||
Uncertain tax positions, beginning of year | $ | 22,031 | $ | 21,906 | $ | 24,835 | |||||
Gross increases—tax positions in prior period | 112 | 1,150 | 2,072 | ||||||||
Gross decreases—tax positions in prior period | — | — | (1,468 | ) | |||||||
Gross increases—tax positions in current period | — | — | — | ||||||||
Gross decreases—lapse of statutes | (823 | ) | (1,172 | ) | (2,954 | ) | |||||
Currency translation adjustment | (127 | ) | 147 | (579 | ) | ||||||
| | | | | | | | | | | |
Uncertain tax positions, end of year | $ | 21,193 | $ | 22,031 | $ | 21,906 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
At June 30, 2014, the total amount of unrecognized tax benefits is $21.2 million, and of that amount, $18.4 million, if recognized, would reduce the effective tax rate. Our policy is to recognize interest and penalties related to income tax matters as provision for (benefit from) income taxes. At June 30, 2014, we had approximately $2.0 million of accrued interest and $1.0 million of penalties related to uncertain tax positions. We recorded a benefit for interest and penalties of approximately $0.1 million during fiscal 2014. We do not anticipate the total amount of unrecognized tax benefits to significantly change within the next twelve months. | |||||||||||
Fiscal years 2007-2013 are subject to audit in the United States and Canada. | |||||||||||
Subsidiaries of Aspen Technology in a number of countries outside of the U.S. and Canada are also subject to tax audits. We estimate that the effects of such tax audits are not material to our consolidated financial statements. | |||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||||||||
Jun. 30, 2014 | |||||||||||
Commitments and Contingencies | ' | ||||||||||
Commitments and Contingencies | ' | ||||||||||
(8) Commitments and Contingencies | |||||||||||
Operating Leases | |||||||||||
We lease certain facilities and various office equipment under non-cancellable operating leases with terms in excess of one year. Rental expense, including short term leases, maintenance charges and taxes on leased facilities, was approximately $7.1 million, $6.7 million and $6.3 million for fiscal years 2014, 2013 and 2012, respectively. | |||||||||||
Future minimum lease payments under these leases and scheduled sublease payments as of June 30, 2014 are as follows: | |||||||||||
Year Ended June 30, | Gross | Scheduled | Net | ||||||||
Payments | Sublease | Payments | |||||||||
Payments | |||||||||||
(Dollars in Thousands) | |||||||||||
2015 | $ | 8,639 | $ | 159 | $ | 8,480 | |||||
2016 | 6,800 | 159 | 6,641 | ||||||||
2017 | 4,255 | 13 | 4,242 | ||||||||
2018 | 3,847 | — | 3,847 | ||||||||
2019 | 3,584 | — | 3,584 | ||||||||
Thereafter | 21,401 | — | 21,401 | ||||||||
| | | | | | | | | | | |
Total | $ | 48,526 | $ | 331 | $ | 48,195 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Due to various restructuring activities (refer to Note 4) in past years we have vacated certain of our leased space and are subleasing a portion of this space. Sublease rental payments received during fiscal 2014, 2013 and 2012 were $0.2 million, $0.8 million and $3.1 million, respectively. Scheduled sublease payments in connection with these activities are included in the table above. | |||||||||||
In January 2014, we entered into a lease agreement for our new principal executive offices to be located in Bedford, Massachusetts. The initial term of the lease with respect to 105,874 square feet of office space will commence on November 1, 2014, and on February 1, 2015 with respect to an additional 36,799 square feet of space. The initial term of the lease will expire approximately ten years and five months following the term commencement date. Subject to the terms and conditions of the lease, we may extend the term of the lease for two successive terms of five years each. Base annual rent is subject to escalating payments over the term of the lease and will range between approximately $2.2 million and $3.9 million in addition to our proportionate share of operating expenses and real estate taxes. Future minimum non-cancelable lease payments amount to approximately $35.8 million over the lease term and are included in the table above. Aggregate capital expenditures, including leasehold improvements, furniture and equipment, with respect to the leased premises are estimated to total approximately $8.9 million, net of a tenant improvement allowance. Payments of $2.0 million for binding contractual obligations related to the new facility capital expenditures are expected to be made in fiscal 2015. | |||||||||||
Standby letters of credit for $2.2 million secure our performance on professional services contracts and certain facility leases. The letters of credit expire at various dates through fiscal 2025. | |||||||||||
Legal Matters | |||||||||||
In the ordinary course of business, we are, from time to time, involved in lawsuits, claims, investigations, proceedings and threats of litigation, including proceedings related to intellectual property rights. These matters include an April 2004 claim by a customer that certain of our software products and implementation services failed to meet the customer's expectations. In March 2014, a judgment was issued in favor of the claimant customer against us in the amount of approximately $2.6 million plus interest and a portion of legal fees. We have filed an appeal of the judgment. | |||||||||||
While the outcome of the proceedings and claims referenced above cannot be predicted with certainty, there are no such matters, as of June 30, 2014 that, in the opinion of management, are reasonably possible to have a material adverse effect on our financial position, results of operations or cash flows. Liabilities, if applicable, related to the aforementioned matters discussed in this Note have been included in our accrued liabilities at June 30, 2014, and are not material to our financial position for the periods then ended. As of June 30, 2014, we do not believe that there is a reasonable possibility of a material loss exceeding the amounts already accrued for the proceedings or matters discussed above. However, the results of litigation (including the above-referenced appeal) and claims cannot be predicted with certainty; unfavorable resolutions are possible and could materially affect our results of operations, cash flows or financial position. In addition, regardless of the outcome, litigation could have an adverse impact on us because of attorneys' fees and costs, diversion of management resources and other factors. | |||||||||||
Retirement_and_Profit_Sharing_
Retirement and Profit Sharing Plans | 12 Months Ended |
Jun. 30, 2014 | |
Retirement and Profit Sharing Plans | ' |
Retirement and Profit Sharing Plans | ' |
(9) Retirement and Profit Sharing Plans | |
We maintain a defined contribution retirement plan under Section 401(k) of the IRC covering all eligible employees, as defined. Under the plan, a participant may elect to defer receipt of a stated percentage of his or her compensation, subject to limitation under the IRC, which would otherwise be payable to the participant for any plan year. We may make discretionary contributions to this plan, including making matching contributions of 50%, up to a maximum of 6% of an employee's pretax contribution. We made matching contributions of approximately $2.0 million, $1.9 million and $1.8 million in fiscal 2014, 2013 and 2012, respectively. Additionally, we participate in certain government mandated and defined contribution plans throughout the world for which we comply with all funding requirements. | |
Segment_and_Geographic_Informa
Segment and Geographic Information | 12 Months Ended | ||||||||||
Jun. 30, 2014 | |||||||||||
Segment and Geographic Information | ' | ||||||||||
Segment and Geographic Information | ' | ||||||||||
(10) Segment and Geographic Information | |||||||||||
Operating segments are defined as components of an enterprise that engage in business activities for which discrete financial information is available and regularly reviewed by the chief operating decision maker in deciding how to allocate resources and to assess performance. Our chief operating decision maker is our President and Chief Executive Officer. | |||||||||||
Prior to fiscal 2014, we had three operating and reportable segments: license; SMS, training and other; and professional services. As our customers have transitioned to our aspenONE licensing model, legacy SMS revenue has decreased and has been offset by a corresponding increase in revenue from aspenONE licensing arrangements and from point product arrangements with Premier Plus SMS (for further information on transition to the aspenONE licensing model and its impact on revenue and our results of operations, please refer to Note 2). As a result, legacy SMS revenue is no longer significant in relation to our total revenue and no longer represents a significant line of business. | |||||||||||
We manage legacy SMS as a part of our broader software licensing business and assess business performance on a combined basis. Our President and Chief Executive Officer evaluates software licensing and maintenance on an aggregate basis in deciding how to assess performance. Effective July 1, 2013, we re-aligned our operating and reportable segments into i) subscription and software and ii) services. | |||||||||||
The subscription and software segment is engaged in the licensing of process optimization software solutions and associated support services. The services segment includes professional services and training. | |||||||||||
The accounting policies of the operating segments are the same as those described in the summary of significant accounting policies (refer to Note 2). We do not track assets or capital expenditures by operating segments. Consequently, it is not practical to present assets, capital expenditures, depreciation or amortization by operating segments. | |||||||||||
Our prior period reportable segment information has been reclassified to reflect the current segment structure and conform to the current period presentation. | |||||||||||
The following table presents a summary of our reportable segments' profits: | |||||||||||
Subscription | Services | Total | |||||||||
and software | |||||||||||
(Dollars in Thousands) | |||||||||||
Year Ended June 30, 2014: | |||||||||||
Segment revenue | $ | 350,486 | $ | 40,967 | $ | 391,453 | |||||
Segment expenses(1) | (183,378 | ) | (32,547 | ) | (215,925 | ) | |||||
| | | | | | | | | | | |
Segment profit | $ | 167,108 | $ | 8,420 | $ | 175,528 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Year Ended June 30, 2013: | |||||||||||
Segment revenue | $ | 276,585 | $ | 34,802 | $ | 311,387 | |||||
Segment expenses(1) | (176,319 | ) | (30,200 | ) | (206,519 | ) | |||||
| | | | | | | | | | | |
Segment profit | $ | 100,266 | $ | 4,602 | $ | 104,868 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Year Ended June 30, 2012: | |||||||||||
Segment revenue | $ | 213,465 | $ | 29,669 | $ | 243,134 | |||||
Segment expenses(1) | (173,387 | ) | (31,508 | ) | (204,895 | ) | |||||
| | | | | | | | | | | |
Segment profit (loss) | $ | 40,078 | $ | (1,839 | ) | $ | 38,239 | ||||
| | | | | | | | | | | |
| | | | | | | | | | | |
-1 | |||||||||||
Our reportable segments' operating expenses include expenses directly attributable to the segments. Segment expenses do not include allocations of general and administrative; restructuring; interest income, net; and other (income) expense, net. As a result of operating and reportable segments realignment, certain costs are more directly attributable to our new operating segments. Starting with fiscal 2014, segment expenses include selling and marketing, research and development, stock-based compensation and certain corporate expenses incurred in support of the segments. Prior to fiscal 2014, segment expenses included certain allocations of selling and marketing; general and administrative; and research and development and did not include restructuring and other corporate expenses incurred in support of these functions. | |||||||||||
Reconciliation to Income (Loss) Before Provision for (Benefit from) Income Taxes | |||||||||||
The following table presents a reconciliation of total segment operating profit to income (loss) before provision for (benefit from) income taxes: | |||||||||||
Year Ended June 30, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(Dollars in Thousands) | |||||||||||
Total segment profit for reportable segments | $ | 175,528 | $ | 104,868 | $ | 38,239 | |||||
General and administrative | (45,819 | ) | (49,273 | ) | (53,547 | ) | |||||
Restructuring charges | 15 | 5 | 301 | ||||||||
Other income (expense), net | (2,278 | ) | (1,117 | ) | (3,519 | ) | |||||
Interest income (net) | 1,087 | 2,955 | 3,374 | ||||||||
| | | | | | | | | | | |
Income (loss) before provision for (benefit from) income taxes | $ | 128,533 | $ | 57,438 | $ | (15,152 | ) | ||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Geographic Information: | |||||||||||
Revenue to external customers is attributed to individual countries based on the location the product or services are sold. Domestic and international sales as a percentage of total revenue are as follows: | |||||||||||
Year Ended June 30, | |||||||||||
2014 | 2013 | 2012 | |||||||||
United States | 35.5 | % | 38.5 | % | 29.5 | % | |||||
Europe | 30.2 | 29.3 | 33.7 | ||||||||
Other(1) | 34.3 | 32.2 | 36.8 | ||||||||
| | | | | | | | | | | |
100 | % | 100 | % | 100 | % | ||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
-1 | |||||||||||
Other consists primarily of Asia Pacific, Canada, Latin America and the Middle East. | |||||||||||
During fiscal 2014, 2013 and 2012, there were no customers that individually represented greater than 10% of our total revenue. | |||||||||||
We have long-lived assets of approximately $16.7 million that are located domestically and $16.8 million that reside in other geographic locations as of June 30, 2014. | |||||||||||
Quarterly_Financial_Data_Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Quarterly Financial Data (Unaudited) | ' | |||||||||||||
Quarterly Financial Data (Unaudited) | ' | |||||||||||||
(11) Quarterly Financial Data (Unaudited) | ||||||||||||||
The following tables present quarterly consolidated statement of operations data for fiscal 2014 and 2013. The below data is unaudited but, in our opinion, reflects all adjustments necessary for a fair presentation of this data in accordance with GAAP: | ||||||||||||||
Three Months Ended | ||||||||||||||
June 30, | March 31, | December 31, | September 30, | |||||||||||
2014 | 2014 | 2013 | 2013 | |||||||||||
(Dollars and Shares in Thousands, Except per Share | ||||||||||||||
Data) | ||||||||||||||
Total revenue | $ | 101,532 | $ | 103,587 | $ | 98,769 | $ | 87,565 | ||||||
Gross profit | 88,653 | 88,299 | 86,326 | 75,487 | ||||||||||
Income from operations | 37,361 | 31,402 | 36,112 | 24,849 | ||||||||||
Net income | 26,678 | 20,843 | 23,263 | 14,999 | ||||||||||
Net income per common share: | ||||||||||||||
Basic | $ | 0.29 | $ | 0.23 | $ | 0.25 | $ | 0.16 | ||||||
Diluted | $ | 0.29 | $ | 0.22 | $ | 0.25 | $ | 0.16 | ||||||
Weighted average shares outstanding: | ||||||||||||||
Basic | 91,916 | 92,414 | 92,839 | 93,410 | ||||||||||
Diluted | 92,710 | 93,365 | 93,816 | 94,522 | ||||||||||
Three Months Ended | ||||||||||||||
June 30, | March 31, | December 31, | September 30, | |||||||||||
2013 | 2013 | 2012 | 2012 | |||||||||||
(Dollars and Shares in Thousands, Except per Share | ||||||||||||||
Data) | ||||||||||||||
Total revenue | $ | 83,264 | $ | 79,357 | $ | 77,309 | $ | 71,457 | ||||||
Gross profit | 70,276 | 66,708 | 64,936 | 59,119 | ||||||||||
(Loss) income from operations | 15,383 | 16,334 | 14,929 | 8,954 | ||||||||||
Net (loss) income | 20,399 | 10,513 | 9,937 | 4,413 | ||||||||||
Net (loss) income per common share: | ||||||||||||||
Basic | $ | 0.28 | $ | 0.11 | $ | 0.11 | $ | 0.05 | ||||||
Diluted | $ | 0.28 | $ | 0.11 | $ | 0.1 | $ | 0.05 | ||||||
Weighted average shares outstanding: | ||||||||||||||
Basic | 93,680 | 93,730 | 93,512 | 93,428 | ||||||||||
Diluted | 95,257 | 95,400 | 95,463 | 95,670 |
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Significant Accounting Policies | ' | ||||||||||||||||
Principles of Consolidation | ' | ||||||||||||||||
(a) Principles of Consolidation | |||||||||||||||||
The accompanying consolidated financial statements include the accounts of Aspen Technology, Inc. and our wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. | |||||||||||||||||
Management Estimates | ' | ||||||||||||||||
(b) Management Estimates | |||||||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. | |||||||||||||||||
Cash and Cash Equivalents | ' | ||||||||||||||||
(c) Cash and Cash Equivalents | |||||||||||||||||
Cash and cash equivalents consist of short-term, highly liquid investments with remaining maturities of three months or less when purchased. | |||||||||||||||||
Marketable Securities | ' | ||||||||||||||||
(d) Marketable Securities | |||||||||||||||||
The following table summarizes the fair value, the amortized cost and unrealized holding gains (losses) on our marketable securities as of June 30, 2014 and 2013: | |||||||||||||||||
Fair Value | Cost | Unrealized | Unrealized | ||||||||||||||
Gains | Losses | ||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||
June 30, 2014: | |||||||||||||||||
U.S. corporate bonds | $ | 67,619 | $ | 67,587 | $ | 39 | $ | (7 | ) | ||||||||
| | | | | | | | | | | | | | ||||
Total short-term marketable securities | $ | 67,619 | $ | 67,587 | $ | 39 | $ | (7 | ) | ||||||||
| | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | ||||
U.S. corporate bonds | $ | 31,270 | $ | 31,290 | $ | 1 | $ | (21 | ) | ||||||||
| | | | | | | | | | | | | | ||||
Total long-term marketable securities | $ | 31,270 | $ | 31,290 | $ | 1 | $ | (21 | ) | ||||||||
| | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | ||||
June 30, 2013: | |||||||||||||||||
U.S. corporate bonds | $ | 57,015 | $ | 57,046 | $ | 8 | $ | (39 | ) | ||||||||
| | | | | | | | | | | | | | ||||
Total short-term marketable securities | $ | 57,015 | $ | 57,046 | $ | 8 | $ | (39 | ) | ||||||||
| | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | ||||
U.S. corporate bonds | $ | 35,353 | $ | 35,402 | $ | — | $ | (49 | ) | ||||||||
| | | | | | | | | | | | | | ||||
Total long-term marketable securities | $ | 35,353 | $ | 35,402 | $ | — | $ | (49 | ) | ||||||||
| | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | ||||
Our marketable securities are classified as available-for-sale and reported at fair value on the consolidated balance sheets. Net unrealized gains (losses) are reported as a separate component of accumulated other comprehensive income, net of tax. Realized gains and losses on investments are recognized in earnings as incurred. Our investments consist primarily of investment grade fixed income corporate debt securities with maturity dates ranging from July 2014 through May 2016 as of June 30, 2014 and from July 2013 through February 2015 as of June 30, 2013, respectively. | |||||||||||||||||
We review our marketable securities for impairment at each reporting period to determine if any of our securities have experienced an other-than-temporary decline in fair value in accordance with the provisions of ASC Topic 320, Investments—Debt and Equity Securities. We consider factors, such as the length of time and extent to which the market value has been less than the cost, the financial condition and near-term prospects of the issuer, our intent to sell, or whether it is more likely than not we will be required to sell the investment before recovery of its amortized cost basis. If we believe that an other-than-temporary decline in fair value has occurred, we write down the investment to fair value and recognize the credit loss in earnings and the non-credit loss in accumulated other comprehensive income. During fiscal 2014 and 2013, our marketable securities were not considered other-than-temporarily impaired and, as such, we did not recognize impairment losses during the periods then ended. Unrealized losses are attributable to changes in interest rates. | |||||||||||||||||
Property and Equipment | ' | ||||||||||||||||
(e) Property and Equipment | |||||||||||||||||
Property and equipment are stated at cost. We provide for depreciation and amortization, primarily computed using the straight-line method, by charges to operations in amounts estimated to allocate the cost of the assets over their estimated useful lives, as follows: | |||||||||||||||||
Asset Classification | Estimated Useful Life | ||||||||||||||||
Computer equipment | 3 years | ||||||||||||||||
Purchased software | 3 - 5 years | ||||||||||||||||
Furniture and fixtures | 3 - 10 years | ||||||||||||||||
Leasehold improvements | Life of lease or asset, whichever is shorter | ||||||||||||||||
Depreciation expense was $3.3 million, $3.4 million and $3.5 million for fiscal 2014, 2013 and 2012, respectively. | |||||||||||||||||
Revenue Recognition | ' | ||||||||||||||||
(f) Revenue Recognition | |||||||||||||||||
Overview of Licensing Model Changes | |||||||||||||||||
Transition to the aspenONE Licensing Model | |||||||||||||||||
Prior to fiscal 2010, we offered term or perpetual licenses to specific products, or specifically defined sets of products, which we refer to as point products. The majority of our license revenue was recognized under an "upfront revenue model," in which the net present value of the aggregate license fees was recognized as revenue upon shipment of the point products. Customers typically received one year of post-contract software maintenance and support, or SMS, with their license agreements and then could elect to renew SMS annually. Revenue from SMS was recognized ratably over the period in which the SMS was delivered. | |||||||||||||||||
In fiscal 2010, we introduced the following changes to our licensing model: | |||||||||||||||||
(i) | |||||||||||||||||
We began offering our software on a subscription basis, allowing our customers access to all products within a licensed suite (aspenONE Engineering or aspenONE Manufacturing and Supply Chain). SMS is included for the entire term of the arrangement and customers are entitled to any software products or updates introduced into the licensed suite. We refer to this license arrangement as our aspenONE licensing model. | |||||||||||||||||
(ii) | |||||||||||||||||
We began to include SMS for the entire term on our point product term arrangements. | |||||||||||||||||
Revenue related to our aspenONE licensing model and point product arrangements with Premier Plus SMS are both recognized over the term of the arrangement on a ratable basis. The changes to our licensing model introduced in fiscal 2010 did not change the method or timing of customer billings or cash collections. | |||||||||||||||||
Impact of Licensing Model Changes | |||||||||||||||||
The principal accounting implications of the changes to our licensing model in fiscal 2010 are as follows: | |||||||||||||||||
• | |||||||||||||||||
Prior to fiscal 2010, the majority of our license revenue was recognized on an upfront basis. Since the upfront model resulted in the net present value of multiple years of future installments being recognized at the time of shipment, the changes to our licensing model resulted in a reduction in our software license revenue for fiscal 2010, 2011 and 2012 as compared to the fiscal years preceding our licensing model changes. These changes did not impact the incurrence or timing of our expenses, and there was no corresponding expense reduction to offset the lower revenue, resulting in operating losses for fiscal 2010, 2011 and 2012. By fiscal 2013, the number of license arrangements renewed on the aspenONE licensing model resulted in ratable revenue sufficient to generate an operating profit. | |||||||||||||||||
• | |||||||||||||||||
Since fiscal 2010, the SMS component of our services and other revenue ("legacy SMS revenue") has decreased, and been offset by a corresponding increase in subscription and software revenue as customers have transitioned to our aspenONE licensing model. Under our aspenONE licensing model and for point product arrangements with Premier Plus SMS included for the full contract term, the entire arrangement fee, including the SMS component, is included within subscription and software revenue. | |||||||||||||||||
Legacy SMS revenue is no longer significant in relation to our total revenue due to the number of our term license arrangements that have been converted to the aspenONE licensing model. As a result, beginning with fiscal 2014, legacy SMS revenue is included within subscription and software revenue in our consolidated statements of operations. Prior to fiscal 2014, legacy SMS revenue was included within services and other revenue in our consolidated statements of operations. For further information, please refer to the "Revenue Reclassification" section below. | |||||||||||||||||
• | |||||||||||||||||
Installment payments from aspenONE agreements and from point product arrangements with SMS included for the contract term are not considered fixed or determinable, and as a result, are not included in installments receivable. Accordingly, our installments receivable balance has decreased as licenses previously executed under our upfront revenue model reached the end of their terms. | |||||||||||||||||
• | |||||||||||||||||
The amount of our deferred revenue has increased as more revenue from our term license portfolio has been recognized on a ratable basis. | |||||||||||||||||
Introduction of our Premier Plus SMS Offering | |||||||||||||||||
Beginning in fiscal 2012, we introduced our Premier Plus SMS offering to provide more value to our customers. As part of this offering, customers receive 24×7 support, faster response times, dedicated technical advocates and access to web-based training modules. The Premier Plus SMS offering is only provided to customers that commit to SMS for the entire term of the arrangement. Our annually renewable legacy SMS offering continues to be available to customers with legacy term and perpetual license agreements. | |||||||||||||||||
The introduction of our Premier Plus SMS offering in fiscal 2012 resulted in a change to the revenue recognition of point product arrangements that include Premier Plus SMS for the term of the arrangement. Since we do not have vendor-specific objective evidence of fair value, or VSOE, for our Premier Plus SMS offering, the SMS element of our point product arrangements is not separable, resulting in revenue being recognized ratably over the term of the arrangement, once the other revenue recognition criteria have been met. Prior to fiscal 2012, license revenue was recognized on the due date of each annual installment, provided all revenue recognition criteria were met. The introduction of our Premier Plus SMS offering did not change the revenue recognition for our aspenONE licensing arrangements. | |||||||||||||||||
Revenue Recognition | |||||||||||||||||
We generate revenue from the following sources: (1) licensing software products; (2) providing SMS and training; and (3) providing professional services. We sell our software products to end users under fixed-term and perpetual licenses. As a standard business practice, we offer extended payment term options for our fixed-term license arrangements, which are generally payable on an annual basis. Certain of our fixed-term license agreements include product mixing rights that allow customers the flexibility to change or alternate the use of multiple products included in the license arrangement after those products are delivered to the customer. We refer to these arrangements as token arrangements. Tokens are fixed units of measure. The amount of software usage is limited by the number of tokens purchased by the customer. | |||||||||||||||||
Four basic criteria must be satisfied before software license revenue can be recognized: persuasive evidence of an arrangement between us and an end user; delivery of our product has occurred; the fee for the product is fixed or determinable; and collection of the fee is probable. | |||||||||||||||||
Persuasive evidence of an arrangement—We use a signed contract as evidence of an arrangement for software licenses and SMS. For professional services we use a signed contract and a work proposal to evidence an arrangement. In cases where both a signed contract and a purchase order are required by the customer, we consider both taken together as evidence of the arrangement. | |||||||||||||||||
Delivery of our product—Software and the corresponding access keys are generally delivered to customers via disk media with standard shipping terms of Free Carrier, our warehouse (i.e., FCA, named place). Our software license agreements do not contain conditions for acceptance. | |||||||||||||||||
Fee is fixed or determinable—We assess whether a fee is fixed or determinable at the outset of the arrangement. Significant judgment is involved in making this assessment. | |||||||||||||||||
Under our upfront revenue model, we are able to demonstrate that the fees are fixed or determinable for all arrangements, including those for our term licenses that contain extended payment terms. We have an established history of collecting under the terms of these contracts without providing concessions to customers. In addition, we also assess whether a contract modification to an existing term arrangement constitutes a concession. In making this assessment, significant analysis is performed to ensure that no concessions are given. Our software license agreements do not include a right of return or exchange. For license arrangements executed under the upfront revenue model, we recognize license revenue upon delivery of the software product, provided all other revenue recognition requirements are met. | |||||||||||||||||
We cannot assert that the fees under our aspenONE licensing model and point product arrangements with Premier Plus SMS are fixed or determinable because the rights provided to customers, and the economics of the arrangements, are not comparable to our transactions with other customers under the upfront revenue model. As a result, the amount of revenue recognized for these arrangements is limited by the amount of customer payments that become due. | |||||||||||||||||
Collection of fee is probable—We assess the probability of collecting from each customer at the outset of the arrangement based on a number of factors, including the customer's payment history, its current creditworthiness, economic conditions in the customer's industry and geographic location, and general economic conditions. If in our judgment collection of a fee is not probable, revenue is recognized as cash is collected, provided all other conditions for revenue recognition have been met. | |||||||||||||||||
Vendor-Specific Objective Evidence of Fair Value | |||||||||||||||||
We have established VSOE for certain SMS offerings, professional services, and training, but not for our software products or our Premier Plus SMS offering. We assess VSOE for SMS, professional services, and training, based on an analysis of standalone sales of the offerings using the bell-shaped curve approach. We do not have a history of selling our Premier Plus SMS offering to customers on a standalone basis, and as a result are unable to establish VSOE for this deliverable. As of July 1, 2014, we are no longer able to establish VSOE for legacy SMS offerings sold with our perpetual license arrangements. As a result, all perpetual license agreements that include legacy SMS entered into subsequent to June 30, 2014 will be recognized ratably over the legacy SMS service period. Loss of VSOE on legacy SMS offerings sold with our perpetual license arrangements is not expected to have a material impact on our revenue in fiscal 2015. | |||||||||||||||||
We allocate the arrangement consideration among the elements included in our multi-element arrangements using the residual method. Under the residual method, the VSOE of the undelivered elements is deferred and the remaining portion of the arrangement fee is recognized as revenue upon delivery of the software, assuming all other revenue recognition criteria are met. If VSOE does not exist for an undelivered element in an arrangement, revenue is deferred until such evidence does exist for the undelivered elements, or until all elements are delivered, whichever is earlier. Under the upfront revenue model, the residual license fee is recognized upon delivery of the software provided all other revenue recognition criteria were met. Arrangements that qualified for upfront recognition during fiscal 2014 and prior periods included sales of perpetual licenses, amendments to existing legacy term arrangements and renewals of legacy term arrangements. | |||||||||||||||||
Subscription and Software Revenue | |||||||||||||||||
Subscription and software revenue consists of product and related revenue from our (i) aspenONE licensing model; (ii) point product arrangements with our Premier Plus SMS offering included for the contract term; (iii) legacy arrangements including (a) amendments to existing legacy term arrangements, (b) renewals of legacy term arrangements and (c) legacy arrangements that are being recognized over time as a result of not previously meeting one or more of the requirements for recognition under the upfront revenue model; (iv) legacy SMS arrangements; and (v) perpetual arrangements. | |||||||||||||||||
When a customer elects to license our products under our aspenONE licensing model, our Premier Plus SMS offering is included for the entire term of the arrangement and the customer receives, for the term of the arrangement, the right to any new unspecified future software products and updates that may be introduced into the licensed aspenONE software suite. Due to our obligation to provide unspecified future software products and updates, we are required to recognize revenue ratably over the term of the arrangement, once the other revenue recognition criteria noted above have been met. | |||||||||||||||||
Our point product arrangements with Premier Plus SMS include SMS for the term of the arrangement. Since we do not have VSOE for our Premier Plus SMS offering, the SMS element of our point product arrangements is not separable. As a result, revenue associated with point product arrangements with Premier Plus SMS included for the contract term is recognized ratably over the term of the arrangement, once the other revenue recognition criteria have been met. | |||||||||||||||||
Perpetual and legacy term license arrangements do not include the same rights as those provided to customers under the aspenONE licensing model and point product arrangements with Premier Plus SMS. Legacy SMS revenue is generated from legacy SMS offerings provided in support of perpetual and legacy term license arrangements. Customers typically receive SMS for one year and then can elect to renew SMS annually. During fiscal 2014 and prior periods, we had VSOE for certain legacy SMS offerings sold with perpetual and term license arrangements and could therefore separate the undelivered elements. Accordingly, license fee revenue for perpetual and legacy term license arrangements was recognized upon delivery of the software products using the residual method, provided all other revenue recognition requirements were met. VSOE of fair value for the undelivered SMS component sold with our perpetual and term license arrangements was deferred and subsequently amortized into revenue ratably over the contractual term of the SMS arrangement. As of July 1, 2014, we are no longer able to establish VSOE for our legacy SMS offerings sold with our perpetual license arrangements. As a result, all perpetual license agreements that include legacy SMS entered into subsequent to June 30, 2014 will be recognized ratably over the legacy SMS service period. Loss of VSOE on legacy SMS offerings sold with our perpetual license arrangements is not expected to have a material impact on our revenue in fiscal 2015. | |||||||||||||||||
Revenue Reclassification | |||||||||||||||||
Prior to fiscal 2014, legacy SMS revenue was classified within services and other revenue in our consolidated statements of operations. Cost of legacy SMS revenue was included within cost of services and other revenue. Beginning with fiscal 2014, legacy SMS revenue is included within subscription and software revenue in our consolidated statements of operations. We reclassified legacy SMS revenue into subscription and software revenue in our consolidated statements of operations based on the following rationale: | |||||||||||||||||
i) | |||||||||||||||||
Since fiscal 2010, legacy SMS revenue has decreased, and been offset by a corresponding increase in subscription and software revenue as customers have transitioned to our aspenONE licensing model and to point product arrangements with Premier Plus SMS. | |||||||||||||||||
ii) | |||||||||||||||||
Legacy SMS revenue is no longer significant in relation to our total revenue due to the number of our term license arrangements that have been converted to the aspenONE licensing model. | |||||||||||||||||
iii) | |||||||||||||||||
Legacy SMS revenue will continue to decrease as expiring license arrangements are renewed on the aspenONE licensing model. | |||||||||||||||||
iv) | |||||||||||||||||
We manage legacy SMS as a part of our broader software licensing business. The distinction between legacy SMS revenue and revenue from aspenONE licensing and point product arrangements with Premier Plus SMS included for the full contract term no longer represents a meaningful difference from a line of business standpoint since we assess business performance on a combined basis. | |||||||||||||||||
v) | |||||||||||||||||
Legacy SMS revenue and revenue from our aspenONE license arrangements share the same revenue recognition methodology and are both recognized on a ratable basis. | |||||||||||||||||
The following table summarizes the impact of revenue and cost of revenue reclassifications for fiscal 2013 and 2012: | |||||||||||||||||
Classification in Consolidated Statements of | Year Ended June 30, | ||||||||||||||||
Operations for the Year Ended June 30, | |||||||||||||||||
2014 | 2013 and 2012 | 2014 | 2013 | 2012 | |||||||||||||
(Dollars in Thousands) | |||||||||||||||||
Legacy SMS revenue | Subscription and software | Services and other | $ | 30,341 | $ | 36,931 | $ | 46,777 | |||||||||
Cost of Legacy SMS revenue | Subscription and software | Services and other | $ | 5,571 | $ | 7,360 | $ | 10,152 | |||||||||
Prior to fiscal 2014, services and other revenue included revenue related to professional services, training, legacy SMS and other revenue. Beginning with fiscal 2014, legacy SMS revenue is included within subscription and software revenue in our consolidated statements of operations. | |||||||||||||||||
The following tables summarize the impact of legacy SMS revenue and cost of revenue reclassification on our previously presented consolidated statements of operations for fiscal 2013 and 2012: | |||||||||||||||||
Impact on Consolidated Statements | |||||||||||||||||
of Operations for the | |||||||||||||||||
Year Ended June 30, 2013 | |||||||||||||||||
As Previously | Reclassifications | As Currently | |||||||||||||||
Reported | Reported | ||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||
Subscription and software revenue: | |||||||||||||||||
Legacy SMS | $ | — | $ | 36,931 | $ | 36,931 | |||||||||||
Subscription and software | 239,654 | — | 239,654 | ||||||||||||||
| | | | | | | | | | | |||||||
$ | 239,654 | $ | 36,931 | $ | 276,585 | ||||||||||||
| | | | | | | | | | | |||||||
| | | | | | | | | | | |||||||
Services and other revenue: | |||||||||||||||||
Legacy SMS | $ | — | $ | (36,931 | ) | $ | (36,931 | ) | |||||||||
Professional services, training and other | 71,733 | — | 71,733 | ||||||||||||||
| | | | | | | | | | | |||||||
$ | 71,733 | $ | (36,931 | ) | $ | 34,802 | |||||||||||
| | | | | | | | | | | |||||||
| | | | | | | | | | | |||||||
Cost of subscription and software revenue: | |||||||||||||||||
Cost of legacy SMS revenue | $ | — | $ | 7,360 | $ | 7,360 | |||||||||||
Cost of subscription and software revenue | 12,788 | — | 12,788 | ||||||||||||||
| | | | | | | | | | | |||||||
$ | 12,788 | $ | 7,360 | $ | 20,148 | ||||||||||||
| | | | | | | | | | | |||||||
| | | | | | | | | | | |||||||
Cost of services and other revenue: | |||||||||||||||||
Cost of legacy SMS revenue | $ | — | $ | (7,360 | ) | $ | (7,360 | ) | |||||||||
Cost of professional services, training and other revenue | 37,560 | — | 37,560 | ||||||||||||||
| | | | | | | | | | | |||||||
$ | 37,560 | $ | (7,360 | ) | $ | 30,200 | |||||||||||
| | | | | | | | | | | |||||||
| | | | | | | | | | | |||||||
Impact on Consolidated Statements | |||||||||||||||||
of Operations for the | |||||||||||||||||
Year Ended June 30, 2012 | |||||||||||||||||
As Previously | Reclassifications | As Currently | |||||||||||||||
Reported | Reported | ||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||
Subscription and software revenue: | |||||||||||||||||
Legacy SMS | $ | — | $ | 46,777 | $ | 46,777 | |||||||||||
Subscription and software | 166,688 | — | 166,688 | ||||||||||||||
| | | | | | | | | | | |||||||
$ | 166,688 | $ | 46,777 | $ | 213,465 | ||||||||||||
| | | | | | | | | | | |||||||
| | | | | | | | | | | |||||||
Services and other revenue: | |||||||||||||||||
Legacy SMS | $ | — | $ | (46,777 | ) | $ | (46,777 | ) | |||||||||
Professional services, training and other | 76,446 | — | 76,446 | ||||||||||||||
| | | | | | | | | | | |||||||
$ | 76,446 | $ | (46,777 | ) | $ | 29,669 | |||||||||||
| | | | | | | | | | | |||||||
| | | | | | | | | | | |||||||
Cost of subscription and software revenue: | |||||||||||||||||
Cost of legacy SMS revenue | $ | — | $ | 10,152 | $ | 10,152 | |||||||||||
Cost of subscription and software revenue | 10,617 | — | 10,617 | ||||||||||||||
| | | | | | | | | | | |||||||
$ | 10,617 | $ | 10,152 | $ | 20,769 | ||||||||||||
| | | | | | | | | | | |||||||
| | | | | | | | | | | |||||||
Cost of services and other revenue: | |||||||||||||||||
Cost of legacy SMS revenue | $ | — | $ | (10,152 | ) | $ | (10,152 | ) | |||||||||
Cost of professional services, training and other revenue | 41,660 | — | 41,660 | ||||||||||||||
| | | | | | | | | | | |||||||
$ | 41,660 | $ | (10,152 | ) | $ | 31,508 | |||||||||||
| | | | | | | | | | | |||||||
| | | | | | | | | | | |||||||
Services and Other | |||||||||||||||||
Professional Services Revenue | |||||||||||||||||
Professional services are provided to customers on a time-and-materials (T&M) or fixed-price basis. We recognize professional services fees for our T&M contracts based upon hours worked and contractually agreed-upon hourly rates. Revenue from fixed-price engagements is recognized using the proportional performance method based on the ratio of costs incurred to the total estimated project costs. Project costs are typically expensed as incurred. The use of the proportional performance method is dependent upon our ability to reliably estimate the costs to complete a project. We use historical experience as a basis for future estimates to complete current projects. Additionally, we believe that costs are the best available measure of performance. Out-of-pocket expenses which are reimbursed by customers are recorded as revenue. | |||||||||||||||||
In certain circumstances, professional services revenue may be recognized over a longer time period than the period over which the services are performed. If the costs to complete a project are not estimable or the completion is uncertain, the revenue is recognized upon completion of the services. In circumstances in which professional services are sold as a single arrangement with, or in contemplation of, a new aspenONE license or point product arrangement with Premier Plus SMS, revenue is deferred and recognized on a ratable basis over the longer of (i) the period the services are performed, or (ii) the license term. When we provide professional services considered essential to the functionality of the software, we recognize the combined revenue from the sale of the software and related services using the completed contract or percentage-of-completion method. | |||||||||||||||||
We have occasionally been required to commit unanticipated additional resources to complete projects, which resulted in losses on those contracts. Provisions for estimated losses on contracts are made during the period in which such losses become probable and can be reasonably estimated. | |||||||||||||||||
Training Revenue | |||||||||||||||||
We provide training services to our customers, including on-site, Internet-based, public and customized training. Revenue is recognized in the period in which the services are performed. In circumstances in which training services are sold as a single arrangement with, or in contemplation of, a new aspenONE license or point product arrangement with Premier Plus SMS, revenue is deferred and recognized on a ratable basis over the longer of (i) the period the services are performed or (ii) the license term. | |||||||||||||||||
Deferred Revenue | |||||||||||||||||
Deferred revenue includes amounts billed or collected in advance of revenue recognition, including arrangements under the aspenONE licensing model, point product arrangements with Premier Plus SMS, legacy SMS arrangements, professional services, and training. Under the aspenONE licensing model and for point product arrangements with Premier Plus SMS, VSOE does not exist for the undelivered elements, and as a result the arrangement fees are recognized ratably (i.e., on a subscription basis) over the term of the license. Deferred revenue is recorded as each invoice becomes due. | |||||||||||||||||
For arrangements under the upfront revenue model, a portion of the arrangement fee is generally recorded as deferred revenue due to the inclusion of an undelivered element, typically certain of our legacy SMS offerings or professional services. The amount of revenue allocated to undelivered elements is based on the VSOE for those elements using the residual method, and is earned and recognized as revenue as each element is delivered. | |||||||||||||||||
Other Licensing Matters | |||||||||||||||||
Our standard licensing agreements include a product warranty provision. We have not experienced significant claims related to software warranties beyond the scope of SMS support, which we are already obligated to provide, and consequently, we have not established reserves for warranty obligations. | |||||||||||||||||
Our agreements with our customers generally require us to indemnify the customer against claims that our software infringes third-party patent, copyright, trademark or other proprietary rights. Such indemnification obligations are generally limited in a variety of industry-standard respects, including our right to replace an infringing product. As of June 30, 2014 and 2013, we had not experienced any material losses related to these indemnification obligations and no claims with respect thereto were outstanding. We do not expect significant claims related to these indemnification obligations, and consequently, have not established any related reserves. | |||||||||||||||||
Installments Receivable | ' | ||||||||||||||||
(g) Installments Receivable | |||||||||||||||||
Installments receivable resulting from product sales under the upfront revenue model are discounted to present value at prevailing market rates at the date the contract is signed, taking into consideration the customer's credit rating. The finance element is recognized using the effective interest method over the relevant license term and is classified as interest income. Installments receivable are classified as current and non-current in our consolidated balance sheets based on the maturity date of the related installment. Non-current installments receivable consist of receivables with a due date greater than one year from the period-end date. Current installments receivable consist of invoices with a due date of less than one year but greater than 45 days from the period-end date. Once an installments receivable invoice becomes due within 45 days, it is reclassified as a trade accounts receivable in our consolidated balance sheets. As a result, we did not have any past due installments receivable as of June 30, 2014. | |||||||||||||||||
Our non-current installments receivable are within the scope of Accounting Standards Update (ASU) No. 2010-20, Receivables (Topic 310): Disclosures about the Credit Quality of Financing Receivables and the Allowance for Credit Losses. As our portfolio of financing receivables arises from the sale of our software licenses, the methodology for determining our allowance for doubtful accounts is based on the collective population of receivables and is not stratified by class or portfolio segment. We consider factors such as existing economic conditions, country risk, customers' credit rating and past payment history in determining our allowance for doubtful accounts. We reserve against our installments receivable when the related trade accounts receivable have been past due for over a year, or when there is a specific risk of uncollectability. Our specific reserve reflects the full value of the related installments receivable for which collection has been deemed uncertain. We transfer an installment receivable reserve balance into a trade accounts receivable allowance when an installment receivable ages into a trade account receivable. | |||||||||||||||||
We write-off receivables when they are considered uncollectable based on our judgment. In instances when we write-off specific customers' trade accounts receivable, we also write off any related current and non-current installments receivable balances. | |||||||||||||||||
As of June 30, 2014, our gross current and non-current installments receivable of $0.7 million and $0.9 million are presented net of unamortized discounts and allowance for doubtful accounts of less than $0.1 million each, respectively. | |||||||||||||||||
As of June 30, 2013, our gross current and non-current installments receivable of $14.4 million and $1.1 million are presented net of unamortized discounts of $0.6 million and $0.1 million and net of allowance for doubtful accounts of $0.1 million each, respectively. | |||||||||||||||||
Under the aspenONE licensing model and for point product arrangements with Premier Plus SMS included for the contract term, the installment payments are not considered fixed or determinable and, as a result, are not included as installments receivable on our consolidated balance sheet. | |||||||||||||||||
Allowance for Doubtful Accounts and Discounts | ' | ||||||||||||||||
(h) Allowance for Doubtful Accounts and Discounts | |||||||||||||||||
We make judgments as to our ability to collect outstanding receivables and provide allowances for the portion of receivables when a loss is reasonably expected to occur. The allowance for doubtful accounts is established to represent the best estimate of the net realizable value of the outstanding accounts receivable. The development of the allowance for doubtful accounts is based on a review of past due amounts, historical write-off and recovery experience, as well as aging trends affecting specific accounts and general operational factors affecting all accounts. In addition, factors are developed utilizing historical trends in bad debts and allowances. | |||||||||||||||||
We consider current economic trends when evaluating the adequacy of the allowance for doubtful accounts. If circumstances relating to specific customers change or unanticipated changes occur in the general business environment, our estimates of the recoverability of receivables could be further adjusted. | |||||||||||||||||
The following table presents our allowance for doubtful accounts activity for accounts receivable in fiscal 2014 and 2013, respectively: | |||||||||||||||||
Year Ended June 30, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||
Balance, beginning of year | $ | 1,615 | $ | 1,982 | |||||||||||||
Provision for bad debts | 1,922 | 521 | |||||||||||||||
Write-offs | (72 | ) | (888 | ) | |||||||||||||
| | | | | | | | ||||||||||
Balance, end of year | $ | 3,465 | $ | 1,615 | |||||||||||||
| | | | | | | | ||||||||||
| | | | | | | | ||||||||||
The following table summarizes our accounts receivable, net of the related allowance for doubtful accounts, as of June 30, 2014 and 2013. | |||||||||||||||||
Gross | Allowance | Net | |||||||||||||||
(Dollars in Thousands) | |||||||||||||||||
June 30, 2014: | |||||||||||||||||
Accounts Receivable | $ | 41,997 | $ | 3,465 | $ | 38,532 | |||||||||||
| | | | | | | | | | | |||||||
$ | 41,997 | $ | 3,465 | $ | 38,532 | ||||||||||||
| | | | | | | | | | | |||||||
| | | | | | | | | | | |||||||
June 30, 2013: | |||||||||||||||||
Accounts Receivable | $ | 38,603 | $ | 1,615 | $ | 36,988 | |||||||||||
| | | | | | | | | | | |||||||
$ | 38,603 | $ | 1,615 | $ | 36,988 | ||||||||||||
| | | | | | | | | | | |||||||
| | | | | | | | | | | |||||||
Fair Value of Financial Instruments | ' | ||||||||||||||||
(i) Fair Value of Financial Instruments | |||||||||||||||||
We determine fair value of financial and non-financial assets and liabilities in accordance with provisions of ASC Topic 820, Fair Value Measurements and Disclosures (ASC 820). ASC 820 defines fair value as the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants. ASC 820 establishes a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities, and the lowest priority to unobservable inputs. The fair value hierarchy is as follows: | |||||||||||||||||
Level 1 Inputs—Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. | |||||||||||||||||
Level 2 Inputs—Inputs other than quoted prices included in Level 1 that are observable for an asset or a liability, either directly or indirectly. These might include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for an asset or a liability (such as interest rates, yield curves, volatilities, prepayment speeds, credit risks, etc.), or inputs that are derived principally from or corroborated by market data by correlation or other means. | |||||||||||||||||
Level 3 Inputs—Unobservable inputs for determining fair values of assets or liabilities that reflect an entity's own assumptions in pricing assets or liabilities. | |||||||||||||||||
Cash Equivalents. Cash equivalents are reported at fair value utilizing quoted market prices in identical markets, or "Level 1 Inputs." Our cash equivalents consist of short-term, highly liquid investments with remaining maturities of three months or less when purchased. | |||||||||||||||||
Marketable Securities. Marketable securities are reported at fair value calculated in accordance with the market approach, utilizing market consensus pricing models with quoted prices that are directly or indirectly observable, or "Level 2 Inputs". | |||||||||||||||||
Financial instruments not measured or recorded at fair value in the accompanying consolidated financial statements consist of accounts receivable, installments receivable and accounts payable. The estimated fair value of these financial instruments approximates their carrying value. | |||||||||||||||||
The following table summarizes financial assets and financial liabilities measured and recorded at fair value on a recurring basis in the accompanying consolidated balance sheets as of June 30, 2014 and 2013, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: | |||||||||||||||||
Fair Value Measurements at | |||||||||||||||||
Reporting Date Using, | |||||||||||||||||
Quoted Prices in | Significant Other | ||||||||||||||||
Active Markets for | Observable Inputs | ||||||||||||||||
Identical Assets | (Level 2 Inputs) | ||||||||||||||||
(Level 1 Inputs) | |||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||
June 30, 2014: | |||||||||||||||||
Cash equivalents | $ | 175,875 | $ | — | |||||||||||||
Marketable securities | — | 98,889 | |||||||||||||||
June 30, 2013: | |||||||||||||||||
Cash equivalents | $ | 117,010 | $ | — | |||||||||||||
Marketable securities | — | 92,368 | |||||||||||||||
At June 30, 2014 and 2013, we did not have any assets or liabilities measured at fair value on a recurring basis using significant unobservable inputs ("Level 3 Inputs"). | |||||||||||||||||
Certain non-financial assets, including goodwill, finite-lived intangible assets and other non-financial long-lived assets, are measured at fair value using market and income approaches on a non-recurring basis when there is an indication of impairment. | |||||||||||||||||
Computer Software Development Costs | ' | ||||||||||||||||
(j) Computer Software Development Costs | |||||||||||||||||
Certain computer software development costs are capitalized in the accompanying consolidated balance sheets. Capitalization of computer software development costs begins upon establishing technological feasibility defined as meeting specifications determined by the program design. Amortization of capitalized computer software development costs is provided on a product-by-product basis using the greater of (a) the amount computed using the ratio that current gross revenue for a product bears to total of current and anticipated future gross revenue for that product or (b) the straight-line method, beginning upon commercial release of the product, and continuing over the remaining estimated economic life of the product, not to exceed three years. | |||||||||||||||||
Total computer software costs capitalized were $0.7 million, $1.2 million and $0.5 million during the years ended June 30, 2014, 2013 and 2012, respectively. Total amortization expense charged to operations was approximately $1.0 million, $1.1 million and $1.6 million for the years ended June 30, 2014, 2013 and 2012, respectively. Computer software development accumulated amortization totaled $72.7 million and $71.5 million as of June 30, 2014 and 2013, respectively. Weighted average remaining useful life of computer software development costs was 1.9 years and 1.2 years at June 30, 2014 and 2013, respectively. | |||||||||||||||||
At each balance sheet date, we evaluate the unamortized capitalized software costs for potential impairment by comparing the balance to the net realizable value of the products. During the years ending June 30, 2014, 2013 and 2012, our computer software development costs were not considered impaired and as such, we did not recognize impairment losses during the periods then ended. | |||||||||||||||||
Foreign Currency Translation | ' | ||||||||||||||||
(k) Foreign Currency Translation | |||||||||||||||||
The determination of the functional currency of subsidiaries is based on the subsidiaries' financial and operational environment and is the local currency of the subsidiary. Gains and losses from foreign currency translation related to entities whose functional currency is their local currency are credited or charged to accumulated other comprehensive income included in stockholders' equity in the consolidated balance sheets. In all instances, foreign currency transaction and remeasurement gains or losses are credited or charged to the consolidated statements of operations as incurred as a component of other income (expense), net. Foreign currency transaction and remeasurement losses were $2.3 million, $1.2 million and $3.7 million in fiscal 2014, 2013 and 2012, respectively. | |||||||||||||||||
Net Income (Loss) Per Share | ' | ||||||||||||||||
(l) Net Income (Loss) Per Share | |||||||||||||||||
Basic income (loss) per share is determined by dividing net income (loss) by the weighted average common shares outstanding during the period. Diluted income (loss) per share is determined by dividing net income (loss) by diluted weighted average shares outstanding during the period. Diluted weighted average shares reflect the dilutive effect, if any, of potential common shares. To the extent their effect is dilutive, employee equity awards and other commitments to be settled in common stock are included in the calculation of diluted income (loss) per share based on the treasury stock method. | |||||||||||||||||
For the years ended June 30, 2014 and 2013, certain employee equity awards were anti-dilutive based on the treasury stock method. For year ended June 30, 2012, all potential common shares were anti-dilutive due to the net loss. The calculations of basic and diluted net income (loss) per share and basic and diluted weighted average shares outstanding are as follows: | |||||||||||||||||
Year Ended June 30, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
(Dollars and Shares in Thousands, | |||||||||||||||||
Except per Share Data) | |||||||||||||||||
Net income (loss) | $ | 85,783 | $ | 45,262 | $ | (13,808 | ) | ||||||||||
| | | | | | | | | | | |||||||
| | | | | | | | | | | |||||||
Weighted average shares outstanding | 92,648 | 93,586 | 93,780 | ||||||||||||||
Dilutive impact from: | |||||||||||||||||
Employee equity awards | 1,017 | 1,824 | — | ||||||||||||||
Dilutive weighted average shares outstanding | 93,665 | 95,410 | 93,780 | ||||||||||||||
Income (loss) per share | |||||||||||||||||
Basic | $ | 0.93 | $ | 0.48 | $ | (0.15 | ) | ||||||||||
Dilutive | $ | 0.92 | $ | 0.47 | $ | (0.15 | ) | ||||||||||
The following potential common shares were excluded from the calculation of dilutive weighted average shares outstanding because their effect would be anti-dilutive at the balance sheet date: | |||||||||||||||||
Year Ended June 30, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
(Shares in Thousands) | |||||||||||||||||
Employee equity awards | 291 | 443 | 6,554 | ||||||||||||||
Concentration of Credit Risk | ' | ||||||||||||||||
(m) Concentration of Credit Risk | |||||||||||||||||
Financial instruments that potentially subject us to concentrations of credit risk are principally cash and cash equivalents, marketable securities, accounts receivable and installments receivable. Our cash is held in financial institutions, and our cash equivalents are invested in money market mutual funds that we believe to be of high credit quality. At June 30, 2014, our investments in marketable securities consist primarily of investment grade fixed income corporate debt securities with maturities ranging from less than 1 month to 23 months. We diversify our investment portfolio by investing in multiple types of investment-grade securities and attempt to mitigate a risk of loss by using a third-party investment manager. | |||||||||||||||||
Concentration of credit risk with respect to receivables is limited to certain customers to which we make substantial sales. To reduce risk, we assess the financial strength of our customers. We do not require collateral or other security in support of our receivables. As of June 30, 2014, one customer receivable balance represented approximately 11% of our total receivables. The balance was fully collected subsequent to June 30, 2014. | |||||||||||||||||
Intangible Assets | ' | ||||||||||||||||
Intangible Assets: | |||||||||||||||||
We include in our amortizable intangible assets those intangible assets acquired in our business and asset acquisitions. We amortize acquired intangible assets with finite lives over their estimated economic lives, generally using the straight-line method. Each period, we evaluate the estimated remaining useful lives of acquired intangible assets to determine whether events or changes in circumstances warrant a revision to the remaining period of amortization. Acquired intangibles are removed from the accounts when fully amortized and no longer in use. | |||||||||||||||||
Intangible assets consist of the following as of June 30, 2014 and 2013: | |||||||||||||||||
Gross | Accumulated | Effect of | Net Carrying | Weighted | |||||||||||||
Carrying | Amortization | currency | Amount | Average | |||||||||||||
Amount | translation | Remaining | |||||||||||||||
Life (in Years) | |||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||
June 30, 2014: | |||||||||||||||||
Technology and patents | $ | 2,596 | $ | (1,899 | ) | $ | 197 | $ | 894 | 1.1 | |||||||
| | | | | | | | | | | | | | | | | |
Total | $ | 2,596 | $ | (1,899 | ) | $ | 197 | $ | 894 | 1.1 | |||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
June 30, 2013: | |||||||||||||||||
Technology and patents | $ | 2,596 | $ | (977 | ) | $ | 172 | $ | 1,791 | 2 | |||||||
| | | | | | | | | | | | | | | | | |
Total | $ | 2,596 | $ | (977 | ) | $ | 172 | $ | 1,791 | 2 | |||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Amortization expense for technology and patents is included in operating expenses and amounted to $0.9 million, $0.7 million and $0.1 million in fiscal 2014, 2013 and 2012, respectively. Amortization expense is expected to approximate $0.7 million and $0.1 million for fiscal 2015 and 2016, respectively. | |||||||||||||||||
Goodwill | ' | ||||||||||||||||
Goodwill: | |||||||||||||||||
During fiscal 2014, we re-aligned our reporting units to reflect our revised operating and reportable segment structure (refer to Note 10). As a result of this re-alignment, goodwill previously assigned to our SMS, training and other reporting unit was combined with goodwill in our license reporting unit, which is currently known as the subscription and software reporting unit. The carrying amount of goodwill of our professional services reporting unit, currently known as the services reporting unit, was zero at June 30, 2014 and 2013 and consisted of gross goodwill of $5.1 million offset by accumulated impairment losses of $(5.1 million) as of the end of each period. | |||||||||||||||||
The changes in the carrying amount of goodwill for our subscription and software reporting unit during fiscal years ending June 30, 2014 and 2013 were as follows: | |||||||||||||||||
Amount | |||||||||||||||||
(Dollars in | |||||||||||||||||
Thousands) | |||||||||||||||||
Balance as of June 30, 2012: | |||||||||||||||||
Goodwill | $ | 84,968 | |||||||||||||||
Accumulated impairment losses | (65,569 | ) | |||||||||||||||
| | | | | |||||||||||||
$ | 19,399 | ||||||||||||||||
| | | | | |||||||||||||
Effect of currency translation | (267 | ) | |||||||||||||||
| | | | | |||||||||||||
Balance as of June 30, 2013: | |||||||||||||||||
Goodwill | $ | 84,701 | |||||||||||||||
Accumulated impairment losses | (65,569 | ) | |||||||||||||||
| | | | | |||||||||||||
$ | 19,132 | ||||||||||||||||
| | | | | |||||||||||||
| | | | | |||||||||||||
Effect of currency translation | 144 | ||||||||||||||||
| | | | | |||||||||||||
Balance as of June 30, 2014: | |||||||||||||||||
Goodwill | $ | 84,845 | |||||||||||||||
Accumulated impairment losses | (65,569 | ) | |||||||||||||||
| | | | | |||||||||||||
$ | 19,276 | ||||||||||||||||
| | | | | |||||||||||||
| | | | | |||||||||||||
We test goodwill for impairment annually (or more often if impairment indicators arise), at the reporting unit level. We first assess qualitative factors to determine whether the existence of events or circumstances indicates that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If we determine based on this assessment that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, we perform the two-step goodwill impairment test. The first step requires us to determine the fair value of the reporting unit and compare it to the carrying amount, including goodwill, of such reporting unit. If the fair value exceeds the carrying amount, no impairment loss is recognized. However, if the carrying amount of the reporting unit exceeds its fair value, the goodwill of the unit may be impaired. The amount of impairment, if any, is measured based upon the implied fair value of goodwill at the valuation date. | |||||||||||||||||
Fair value of a reporting unit is determined using a combined weighted average of a market-based approach (utilizing fair value multiples of comparable publicly traded companies) and an income-based approach (utilizing discounted projected cash flows). In applying the income-based approach, we would be required to make assumptions about the amount and timing of future expected cash flows, growth rates and appropriate discount rates. The amount and timing of future cash flows would be based on our most recent long-term financial projections. The discount rate we would utilize would be determined using estimates of market participant risk-adjusted weighted-average costs of capital and reflect the risks associated with achieving future cash flows. | |||||||||||||||||
We have elected December 31st as the annual impairment assessment date and perform additional impairment tests if triggering events occur. We performed our annual impairment test for the subscription and software reporting unit as of December 31, 2013 and, based upon the results of our qualitative assessment, determined that it was not likely that its fair value was less than its carrying amount. As such, we did not perform the two-step goodwill impairment test and did not recognize impairment losses as a result of our analysis. If an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value, goodwill will be evaluated for impairment between annual tests. No triggering events indicating goodwill impairment occurred during fiscal 2014 and 2013. | |||||||||||||||||
Computer Software Developed for Internal Use | ' | ||||||||||||||||
Computer Software Developed for Internal Use: | |||||||||||||||||
Computer software developed for internal use is capitalized in accordance with ASC Topic 350-40, Intangibles Goodwill and Other—Internal Use Software. We capitalize direct labor costs incurred to develop internal-use software during the application development stage after determining software technological requirements and obtaining management approval for funding projects probable of completion. | |||||||||||||||||
As of June 30, 2014 and 2013, capitalized costs for computer software developed for internal use amount to $22.7 million and $21.0 million and are presented net of accumulated amortization of $19.5 million and $18.3 million within property, plant and equipment in our consolidated balance sheets. | |||||||||||||||||
Impairment of Long-Lived Assets | ' | ||||||||||||||||
Impairment of Long-Lived Assets: | |||||||||||||||||
We evaluate our long-lived assets, which include finite-lived intangible assets, property and leasehold improvements for impairment as events and circumstances indicate that the carrying amount of an asset or a group of assets may not be recoverable. We assess the recoverability of the asset or a group of assets based on the undiscounted future cash flows the asset is expected to generate, and recognize an impairment loss when estimated undiscounted future cash flows expected to result from the use of the asset are less than its carrying value. If an asset or a group of assets are deemed to be impaired, the amount of the impairment loss, if any, represents the excess of the asset's or a group of assets' carrying value compared to their estimated fair values. | |||||||||||||||||
Comprehensive Income (Loss) | ' | ||||||||||||||||
(o) Comprehensive Income (Loss) | |||||||||||||||||
Comprehensive income (loss) is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. Comprehensive income (loss) and its components for fiscal 2014, 2013 and 2012 are disclosed in the accompanying consolidated statements of comprehensive income (loss). | |||||||||||||||||
As of June 30, 2014 and 2013, accumulated other comprehensive income is comprised of foreign translation adjustments of $9.4 million and $7.3 million and net unrealized gains (losses) on available for sale securities of less than $0.1 million and ($0.1) million, respectively. | |||||||||||||||||
As of June 30, 2012 and 2011, accumulated other comprehensive income is comprised entirely of foreign translation adjustments of $8.1 million and $9.1 million, respectively. | |||||||||||||||||
Accounting for Stock-Based Compensation | ' | ||||||||||||||||
(p) Accounting for Stock-Based Compensation | |||||||||||||||||
Stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense over the vesting period. | |||||||||||||||||
Accounting for Transfers of Financial Assets | ' | ||||||||||||||||
(q) Accounting for Transfers of Financial Assets | |||||||||||||||||
We derecognize financial assets, specifically accounts receivable and installments receivable, when control has been surrendered in compliance with ASC Topic 860, Transfers and Servicing. Transfers of accounts receivable and installments receivable that meet the requirements of ASC 860 for sale accounting treatment are removed from the balance sheet and gains or losses on the sale are recognized. If the conditions for sale accounting treatment are not met, or are no longer met, accounts receivable and installments receivable transferred are classified as collateralized receivables in the consolidated balance sheets and cash received from these transactions is classified as secured borrowings. Transaction costs associated with secured borrowings, if any, are treated as borrowing costs and recognized in interest expense. Once payment is received from a customer, the collateralized receivables and related secured borrowing balances are reduced. We had no outstanding secured borrowings and collateralized receivables as of June 30, 2014 and 2013 since the balance due to the financial institutions was repaid in full during the second quarter of fiscal 2013. | |||||||||||||||||
Income Taxes | ' | ||||||||||||||||
(r) Income Taxes | |||||||||||||||||
Deferred income taxes are recognized based on temporary differences between the financial statement and tax bases of assets and liabilities. Deferred tax assets and liabilities are measured using the statutory tax rates and laws expected to apply to taxable income in the years in which the temporary differences are expected to reverse. Valuation allowances are provided against net deferred tax assets if, based upon the available evidence, it is more likely than not that some 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 and the timing of the temporary differences becoming deductible. Management considers, among other available information, scheduled reversals of deferred tax liabilities, projected future taxable income, limitations of availability of net operating loss carryforwards, and other matters in making this assessment. | |||||||||||||||||
We do not provide deferred taxes on unremitted earnings of foreign subsidiaries since we intend to indefinitely reinvest either currently or sometime in the foreseeable future. Unrecognized provisions for taxes on undistributed earnings of foreign subsidiaries, which are considered indefinitely reinvested, are not material to our consolidated financial position or results of operations. We are continuously subject to examination by the IRS, as well as various state and foreign jurisdictions. The IRS and other taxing authorities may challenge certain deductions and credits reported by us on our income tax returns. In accordance with provisions of ASC Topic 740, Income Taxes (ASC 740), an entity should recognize a tax benefit when it is more-likely-than-not, based on the technical merits, that the position would be sustained upon examination by a taxing authority. The amount to be recognized, if the more-likely-than-not threshold was passed, should be measured as the largest amount of tax benefit that is greater than 50 percent likely of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. Furthermore, any change in the recognition, de-recognition or measurement of a tax position should be recorded in the period in which the change occurs. We account for interest and penalties related to uncertain tax positions as part of the provision for (benefit from) income taxes. | |||||||||||||||||
Loss Contingencies | ' | ||||||||||||||||
(s) Loss Contingencies | |||||||||||||||||
We accrue estimated liabilities for loss contingencies arising from claims, assessments, litigation and other sources when it is probable that a liability has been incurred and the amount of the claim assessment or damages can be reasonably estimated. We believe that we have sufficient accruals to cover any obligations resulting from claims, assessments or litigation that have met these criteria. Refer to Note 8 for discussion of these matters and related liability accruals. | |||||||||||||||||
Advertising Costs | ' | ||||||||||||||||
(t) Advertising Costs | |||||||||||||||||
Advertising costs are expensed as incurred and are classified as sales and marketing expenses. We incurred advertising expenses of $2.1 million, $2.9 million and $2.2 million during fiscal 2014, 2013 and 2012, respectively. We had no prepaid advertising costs included in the accompanying consolidated balance sheets as of June 30, 2014 and 2013. | |||||||||||||||||
Research and Development Expense | ' | ||||||||||||||||
(u) Research and Development Expense | |||||||||||||||||
We charge research and development expenditures to expense as the costs are incurred. Research and development expenses consist primarily of personnel expenses related to the creation of new products, enhancements and engineering changes to existing products and costs of acquired technology prior to establishing technological feasibility. | |||||||||||||||||
During fiscal 2014, we acquired certain technology for $4.9 million that we plan to modify and enhance for release as a commercially available product. At the time we acquired the technology, the project to develop a commercially available product did not meet the definition of having reached technological feasibility and as such, the entire cost of the acquired technology was expensed as research and development expense. | |||||||||||||||||
Recently Adopted Accounting Pronouncements | ' | ||||||||||||||||
(v) Recently Adopted Accounting Pronouncements | |||||||||||||||||
In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers. ASU No. 2014-09 was issued by the FASB as a part of the joint project with the International Accounting Standards Board (IASB) to clarify revenue recognition principles and develop a common revenue standard for the U.S. Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS). | |||||||||||||||||
ASU No. 2014-09 is effective for the fiscal years, and interim periods within those years, beginning after December 15, 2016. Early adoption of ASU No. 2014-09 is not permitted. The amendments included within ASU No. 2014-09 should be applied by using one of the following methods: | |||||||||||||||||
Retrospectively to each prior reporting period presented. The entity may elect any of the practical expedients described in ASU No. 2014-09 when applying this method. | |||||||||||||||||
Retrospectively with the cumulative effect of initially applying ASU No. 2014-09 recognized at the date of initial application. In the reporting periods that include the date of the initial application of ASU No. 2014-09, the entity should disclose the amount by which each financial statement line item is affected by the application of ASU No. 2014-09 in the current reporting period as compared to the guidance that was in effect before the change. | |||||||||||||||||
We expect to adopt ASU No. 2014-09 during the first quarter of fiscal 2018. We are currently evaluating the impact of ASU No. 2014-09 on our financial position, results of operations and cash flows. | |||||||||||||||||
In July 2013, the FASB issued ASU No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. ASU No. 2013-11 provides guidance on the financial statement presentation of unrecognized tax benefits when net operating losses, similar tax losses, or tax credit carryforwards exist. ASU No. 2013-11 requires entities to present unrecognized tax benefits as reductions of deferred tax assets for net operating losses, tax credit carryforwards, or similar losses if they are available to settle any additional income tax liabilities as a result of a tax position disallowance under the tax laws of the applicable jurisdiction. Unrecognized tax benefits should be presented as liabilities and should not be combined with deferred tax assets if net operating losses, tax credit carryforwards, or similar losses are not available to settle any additional income tax liabilities as a result of the tax position disallowance, and the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose. | |||||||||||||||||
ASU No. 2013-11 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013 and should be applied prospectively. Early adoption of ASU No. 2013-11 is permitted. We adopted ASU No. 2013-11 during the fourth quarter of fiscal 2013. The adoption of ASU No. 2013-11 did not have a material effect on our financial position, results of operations or cash flows. | |||||||||||||||||
Significant_Accounting_Policie2
Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Significant Accounting Policies | ' | ||||||||||||||||
Summary of the fair value, the amortized cost and unrealized holding gains (losses) on marketable securities | ' | ||||||||||||||||
Fair Value | Cost | Unrealized | Unrealized | ||||||||||||||
Gains | Losses | ||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||
June 30, 2014: | |||||||||||||||||
U.S. corporate bonds | $ | 67,619 | $ | 67,587 | $ | 39 | $ | (7 | ) | ||||||||
| | | | | | | | | | | | | | ||||
Total short-term marketable securities | $ | 67,619 | $ | 67,587 | $ | 39 | $ | (7 | ) | ||||||||
| | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | ||||
U.S. corporate bonds | $ | 31,270 | $ | 31,290 | $ | 1 | $ | (21 | ) | ||||||||
| | | | | | | | | | | | | | ||||
Total long-term marketable securities | $ | 31,270 | $ | 31,290 | $ | 1 | $ | (21 | ) | ||||||||
| | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | ||||
June 30, 2013: | |||||||||||||||||
U.S. corporate bonds | $ | 57,015 | $ | 57,046 | $ | 8 | $ | (39 | ) | ||||||||
| | | | | | | | | | | | | | ||||
Total short-term marketable securities | $ | 57,015 | $ | 57,046 | $ | 8 | $ | (39 | ) | ||||||||
| | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | ||||
U.S. corporate bonds | $ | 35,353 | $ | 35,402 | $ | — | $ | (49 | ) | ||||||||
| | | | | | | | | | | | | | ||||
Total long-term marketable securities | $ | 35,353 | $ | 35,402 | $ | — | $ | (49 | ) | ||||||||
| | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | ||||
Property and Equipment, Useful Lives | ' | ||||||||||||||||
Asset Classification | Estimated Useful Life | ||||||||||||||||
Computer equipment | 3 years | ||||||||||||||||
Purchased software | 3 - 5 years | ||||||||||||||||
Furniture and fixtures | 3 - 10 years | ||||||||||||||||
Leasehold improvements | Life of lease or asset, whichever is shorter | ||||||||||||||||
Summary of impact of revenue and cost of revenue reclassifications | ' | ||||||||||||||||
Classification in Consolidated Statements of | Year Ended June 30, | ||||||||||||||||
Operations for the Year Ended June 30, | |||||||||||||||||
2014 | 2013 and 2012 | 2014 | 2013 | 2012 | |||||||||||||
(Dollars in Thousands) | |||||||||||||||||
Legacy SMS revenue | Subscription and software | Services and other | $ | 30,341 | $ | 36,931 | $ | 46,777 | |||||||||
Cost of Legacy SMS revenue | Subscription and software | Services and other | $ | 5,571 | $ | 7,360 | $ | 10,152 | |||||||||
Summary of impact of legacy SMS revenue and cost of revenue reclassification on previously presented unaudited consolidated statements of operations | ' | ||||||||||||||||
Impact on Consolidated Statements | |||||||||||||||||
of Operations for the | |||||||||||||||||
Year Ended June 30, 2013 | |||||||||||||||||
As Previously | Reclassifications | As Currently | |||||||||||||||
Reported | Reported | ||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||
Subscription and software revenue: | |||||||||||||||||
Legacy SMS | $ | — | $ | 36,931 | $ | 36,931 | |||||||||||
Subscription and software | 239,654 | — | 239,654 | ||||||||||||||
| | | | | | | | | | | |||||||
$ | 239,654 | $ | 36,931 | $ | 276,585 | ||||||||||||
| | | | | | | | | | | |||||||
| | | | | | | | | | | |||||||
Services and other revenue: | |||||||||||||||||
Legacy SMS | $ | — | $ | (36,931 | ) | $ | (36,931 | ) | |||||||||
Professional services, training and other | 71,733 | — | 71,733 | ||||||||||||||
| | | | | | | | | | | |||||||
$ | 71,733 | $ | (36,931 | ) | $ | 34,802 | |||||||||||
| | | | | | | | | | | |||||||
| | | | | | | | | | | |||||||
Cost of subscription and software revenue: | |||||||||||||||||
Cost of legacy SMS revenue | $ | — | $ | 7,360 | $ | 7,360 | |||||||||||
Cost of subscription and software revenue | 12,788 | — | 12,788 | ||||||||||||||
| | | | | | | | | | | |||||||
$ | 12,788 | $ | 7,360 | $ | 20,148 | ||||||||||||
| | | | | | | | | | | |||||||
| | | | | | | | | | | |||||||
Cost of services and other revenue: | |||||||||||||||||
Cost of legacy SMS revenue | $ | — | $ | (7,360 | ) | $ | (7,360 | ) | |||||||||
Cost of professional services, training and other revenue | 37,560 | — | 37,560 | ||||||||||||||
| | | | | | | | | | | |||||||
$ | 37,560 | $ | (7,360 | ) | $ | 30,200 | |||||||||||
| | | | | | | | | | | |||||||
| | | | | | | | | | | |||||||
Impact on Consolidated Statements | |||||||||||||||||
of Operations for the | |||||||||||||||||
Year Ended June 30, 2012 | |||||||||||||||||
As Previously | Reclassifications | As Currently | |||||||||||||||
Reported | Reported | ||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||
Subscription and software revenue: | |||||||||||||||||
Legacy SMS | $ | — | $ | 46,777 | $ | 46,777 | |||||||||||
Subscription and software | 166,688 | — | 166,688 | ||||||||||||||
| | | | | | | | | | | |||||||
$ | 166,688 | $ | 46,777 | $ | 213,465 | ||||||||||||
| | | | | | | | | | | |||||||
| | | | | | | | | | | |||||||
Services and other revenue: | |||||||||||||||||
Legacy SMS | $ | — | $ | (46,777 | ) | $ | (46,777 | ) | |||||||||
Professional services, training and other | 76,446 | — | 76,446 | ||||||||||||||
| | | | | | | | | | | |||||||
$ | 76,446 | $ | (46,777 | ) | $ | 29,669 | |||||||||||
| | | | | | | | | | | |||||||
| | | | | | | | | | | |||||||
Cost of subscription and software revenue: | |||||||||||||||||
Cost of legacy SMS revenue | $ | — | $ | 10,152 | $ | 10,152 | |||||||||||
Cost of subscription and software revenue | 10,617 | — | 10,617 | ||||||||||||||
| | | | | | | | | | | |||||||
$ | 10,617 | $ | 10,152 | $ | 20,769 | ||||||||||||
| | | | | | | | | | | |||||||
| | | | | | | | | | | |||||||
Cost of services and other revenue: | |||||||||||||||||
Cost of legacy SMS revenue | $ | — | $ | (10,152 | ) | $ | (10,152 | ) | |||||||||
Cost of professional services, training and other revenue | 41,660 | — | 41,660 | ||||||||||||||
| | | | | | | | | | | |||||||
$ | 41,660 | $ | (10,152 | ) | $ | 31,508 | |||||||||||
| | | | | | | | | | | |||||||
| | | | | | | | | | | |||||||
Allowance for Doubtful Accounts Activity for Accounts Receivable | ' | ||||||||||||||||
Year Ended June 30, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||
Balance, beginning of year | $ | 1,615 | $ | 1,982 | |||||||||||||
Provision for bad debts | 1,922 | 521 | |||||||||||||||
Write-offs | (72 | ) | (888 | ) | |||||||||||||
| | | | | | | | ||||||||||
Balance, end of year | $ | 3,465 | $ | 1,615 | |||||||||||||
| | | | | | | | ||||||||||
| | | | | | | | ||||||||||
Accounts Receivable Balances | ' | ||||||||||||||||
Gross | Allowance | Net | |||||||||||||||
(Dollars in Thousands) | |||||||||||||||||
June 30, 2014: | |||||||||||||||||
Accounts Receivable | $ | 41,997 | $ | 3,465 | $ | 38,532 | |||||||||||
| | | | | | | | | | | |||||||
$ | 41,997 | $ | 3,465 | $ | 38,532 | ||||||||||||
| | | | | | | | | | | |||||||
| | | | | | | | | | | |||||||
June 30, 2013: | |||||||||||||||||
Accounts Receivable | $ | 38,603 | $ | 1,615 | $ | 36,988 | |||||||||||
| | | | | | | | | | | |||||||
$ | 38,603 | $ | 1,615 | $ | 36,988 | ||||||||||||
| | | | | | | | | | | |||||||
| | | | | | | | | | | |||||||
Financial Assets and Financial Liabilities Measured and Recorded at Fair Value on a Recurring Basis | ' | ||||||||||||||||
Fair Value Measurements at | |||||||||||||||||
Reporting Date Using, | |||||||||||||||||
Quoted Prices in | Significant Other | ||||||||||||||||
Active Markets for | Observable Inputs | ||||||||||||||||
Identical Assets | (Level 2 Inputs) | ||||||||||||||||
(Level 1 Inputs) | |||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||
June 30, 2014: | |||||||||||||||||
Cash equivalents | $ | 175,875 | $ | — | |||||||||||||
Marketable securities | — | 98,889 | |||||||||||||||
June 30, 2013: | |||||||||||||||||
Cash equivalents | $ | 117,010 | $ | — | |||||||||||||
Marketable securities | — | 92,368 | |||||||||||||||
Calculations of Basic and Diluted Net Income (loss) per Share | ' | ||||||||||||||||
Year Ended June 30, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
(Dollars and Shares in Thousands, | |||||||||||||||||
Except per Share Data) | |||||||||||||||||
Net income (loss) | $ | 85,783 | $ | 45,262 | $ | (13,808 | ) | ||||||||||
| | | | | | | | | | | |||||||
| | | | | | | | | | | |||||||
Weighted average shares outstanding | 92,648 | 93,586 | 93,780 | ||||||||||||||
Dilutive impact from: | |||||||||||||||||
Employee equity awards | 1,017 | 1,824 | — | ||||||||||||||
Dilutive weighted average shares outstanding | 93,665 | 95,410 | 93,780 | ||||||||||||||
Income (loss) per share | |||||||||||||||||
Basic | $ | 0.93 | $ | 0.48 | $ | (0.15 | ) | ||||||||||
Dilutive | $ | 0.92 | $ | 0.47 | $ | (0.15 | ) | ||||||||||
Potential Common Shares Excluded From Calculation of Dilutive Weighted Average Shares Outstanding | ' | ||||||||||||||||
Year Ended June 30, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
(Shares in Thousands) | |||||||||||||||||
Employee equity awards | 291 | 443 | 6,554 | ||||||||||||||
Intangible Assets | ' | ||||||||||||||||
Gross | Accumulated | Effect of | Net Carrying | Weighted | |||||||||||||
Carrying | Amortization | currency | Amount | Average | |||||||||||||
Amount | translation | Remaining | |||||||||||||||
Life (in Years) | |||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||
June 30, 2014: | |||||||||||||||||
Technology and patents | $ | 2,596 | $ | (1,899 | ) | $ | 197 | $ | 894 | 1.1 | |||||||
| | | | | | | | | | | | | | | | | |
Total | $ | 2,596 | $ | (1,899 | ) | $ | 197 | $ | 894 | 1.1 | |||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
June 30, 2013: | |||||||||||||||||
Technology and patents | $ | 2,596 | $ | (977 | ) | $ | 172 | $ | 1,791 | 2 | |||||||
| | | | | | | | | | | | | | | | | |
Total | $ | 2,596 | $ | (977 | ) | $ | 172 | $ | 1,791 | 2 | |||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Changes in carrying amount of goodwill for subscription and software reporting unit | ' | ||||||||||||||||
Amount | |||||||||||||||||
(Dollars in | |||||||||||||||||
Thousands) | |||||||||||||||||
Balance as of June 30, 2012: | |||||||||||||||||
Goodwill | $ | 84,968 | |||||||||||||||
Accumulated impairment losses | (65,569 | ) | |||||||||||||||
| | | | | |||||||||||||
$ | 19,399 | ||||||||||||||||
| | | | | |||||||||||||
Effect of currency translation | (267 | ) | |||||||||||||||
| | | | | |||||||||||||
Balance as of June 30, 2013: | |||||||||||||||||
Goodwill | $ | 84,701 | |||||||||||||||
Accumulated impairment losses | (65,569 | ) | |||||||||||||||
| | | | | |||||||||||||
$ | 19,132 | ||||||||||||||||
| | | | | |||||||||||||
| | | | | |||||||||||||
Effect of currency translation | 144 | ||||||||||||||||
| | | | | |||||||||||||
Balance as of June 30, 2014: | |||||||||||||||||
Goodwill | $ | 84,845 | |||||||||||||||
Accumulated impairment losses | (65,569 | ) | |||||||||||||||
| | | | | |||||||||||||
$ | 19,276 | ||||||||||||||||
| | | | | |||||||||||||
| | | | | |||||||||||||
Supplemental_Balance_Sheet_Inf1
Supplemental Balance Sheet Information (Tables) | 12 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Supplemental Balance Sheet Information | ' | |||||||
Property, Equipment and Leasehold Improvements | ' | |||||||
Year Ended June 30, | ||||||||
2014 | 2013 | |||||||
(Dollars in Thousands) | ||||||||
Property, equipment and leasehold improvements—at cost: | ||||||||
Computer equipment | $ | 11,772 | $ | 11,106 | ||||
Purchased software | 23,720 | 21,642 | ||||||
Furniture & fixtures | 4,530 | 4,475 | ||||||
Leasehold improvements | 3,448 | 3,379 | ||||||
Accumulated depreciation | (35,882 | ) | (32,773 | ) | ||||
| | | | | | | | |
Property, equipment and leasehold improvements—net | $ | 7,588 | $ | 7,829 | ||||
| | | | | | | | |
| | | | | | | | |
Accrued Expenses and Other Current Liabilities | ' | |||||||
Year Ended June 30, | ||||||||
2014 | 2013 | |||||||
(Dollars in Thousands) | ||||||||
Royalties and outside commissions | $ | 3,596 | $ | 4,312 | ||||
Payroll and payroll-related | 19,347 | 18,702 | ||||||
Other | 12,041 | 11,563 | ||||||
| | | | | | | | |
Total accrued expenses and other current liabilities | $ | 34,984 | $ | 34,577 | ||||
| | | | | | | | |
| | | | | | | | |
Other Non-current Liabilities | ' | |||||||
Year Ended June 30, | ||||||||
2014 | 2013 | |||||||
(Dollars in Thousands) | ||||||||
Deferred rent | $ | 402 | $ | 862 | ||||
Other* | 11,448 | 11,515 | ||||||
| | | | | | | | |
Total other non-current liabilities | $ | 11,850 | $ | 12,377 | ||||
| | | | | | | | |
| | | | | | | | |
* | ||||||||
Other is comprised primarily of our net reserve for uncertain tax liabilities. See Note 7, "Income Taxes" for additional information. | ||||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 12 Months Ended | |||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||
Stock-Based Compensation | ' | |||||||||||||||||||
Weighted Average Assumptions | ' | |||||||||||||||||||
Year Ended June 30, | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
Risk-free interest rate | 1.3 | % | 0.6 | % | 1.1 | % | ||||||||||||||
Expected dividend yield | None | None | None | |||||||||||||||||
Expected life (in years) | 4.6 | 4.8 | 4.6 | |||||||||||||||||
Expected volatility factor | 39 | % | 49 | % | 50 | % | ||||||||||||||
Stock-based Compensation Expense | ' | |||||||||||||||||||
Year Ended June 30, | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||
Recorded as expenses: | ||||||||||||||||||||
Cost of service and other | $ | 1,239 | $ | 1,281 | $ | 1,168 | ||||||||||||||
Selling and marketing | 3,280 | 3,890 | 4,601 | |||||||||||||||||
Research and development | 4,129 | 2,969 | 1,334 | |||||||||||||||||
General and administrative | 5,408 | 6,497 | 5,303 | |||||||||||||||||
| | | | | | | | | | | ||||||||||
Total stock-based compensation | $ | 14,056 | $ | 14,637 | $ | 12,406 | ||||||||||||||
| | | | | | | | | | | ||||||||||
| | | | | | | | | | | ||||||||||
Stock Options and RSU Activity | ' | |||||||||||||||||||
Stock Options | Restricted Stock Units | |||||||||||||||||||
Shares | Weighted | Weighted | Aggregate | Shares | Weighted | |||||||||||||||
Average | Average | Intrinsic | Average | |||||||||||||||||
Exercise | Remaining | Value | Grant | |||||||||||||||||
Price | Contractual | (in 000's) | Date Fair | |||||||||||||||||
Term | Value | |||||||||||||||||||
Outstanding at June 30, 2013 | 1,852,118 | $ | 14.68 | $ | 26,140 | 1,030,839 | $ | 17.69 | ||||||||||||
Granted | 352,795 | 33.06 | 415,938 | 33.07 | ||||||||||||||||
Settled (RSUs) | — | (563,586 | ) | 18.58 | ||||||||||||||||
Exercised | (723,330 | ) | 12.04 | — | — | |||||||||||||||
Cancelled / Forfeited | (235,055 | ) | 20.58 | (265,922 | ) | 21.21 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Outstanding at June 30, 2014 | 1,246,528 | $ | 20.3 | 7.14 | $ | 32,543 | 617,269 | $ | 25.74 | |||||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Vested and exercisable at June 30, 2014 | 733,078 | $ | 16.53 | 6.34 | $ | 21,894 | — | — | ||||||||||||
Vested and expected to vest at June 30, 2014 | 1,164,018 | $ | 19.96 | 7.07 | $ | 30,780 | 518,195 | $ | 25.84 |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||
Jun. 30, 2014 | |||||||||||
Income Taxes | ' | ||||||||||
Income (loss) before provision for (benefit from) income taxes | ' | ||||||||||
Year Ended June 30, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(Dollars in Thousands) | |||||||||||
Domestic | $ | 121,329 | $ | 54,587 | $ | (14,086 | ) | ||||
Foreign | 7,204 | 2,851 | (1,066 | ) | |||||||
| | | | | | | | | | | |
Income (loss) before provision for (benefit from) income taxes | $ | 128,533 | $ | 57,438 | $ | (15,152 | ) | ||||
| | | | | | | | | | | |
| | | | | | | | | | | |
(Benefit from) Provision for Income Taxes | ' | ||||||||||
Year Ended June 30, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(Dollars in Thousands) | |||||||||||
Federal— | |||||||||||
Current | $ | — | $ | — | $ | — | |||||
Deferred | 32,996 | 7,867 | (3,409 | ) | |||||||
State— | |||||||||||
Current | 528 | 136 | 191 | ||||||||
Deferred | 1,005 | 693 | 33 | ||||||||
Foreign— | |||||||||||
Current | 7,785 | 7,068 | 3,292 | ||||||||
Deferred | 436 | (3,588 | ) | (1,451 | ) | ||||||
| | | | | | | | | | | |
$ | 42,750 | $ | 12,176 | $ | (1,344 | ) | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Income Tax Reconciliation Based on Federal Statutory Rate | ' | ||||||||||
Year Ended June 30, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(Dollars in Thousands) | |||||||||||
Federal tax provision (benefit) at statutory rate | $ | 44,989 | $ | 20,103 | $ | (5,303 | ) | ||||
State income taxes | 78 | 88 | 124 | ||||||||
Subpart F and dividend income | 6,667 | 4,456 | 4,189 | ||||||||
Foreign taxes and rate differences | 1,881 | 2,298 | 1,001 | ||||||||
Stock-based compensation | 631 | 900 | 2,968 | ||||||||
Tax credits | (8,902 | ) | (4,816 | ) | (3,913 | ) | |||||
Tax contingencies | (261 | ) | (168 | ) | (2,385 | ) | |||||
Return to provision adjustments | 150 | (149 | ) | 442 | |||||||
Domestic production activity deduction | (2,443 | ) | — | — | |||||||
Valuation allowance | (16 | ) | (1,813 | ) | 1,431 | ||||||
Benefit from foreign restructuring | — | (9,266 | ) | — | |||||||
Other | (24 | ) | 543 | 102 | |||||||
| | | | | | | | | | | |
Provision for (benefit from) income taxes | $ | 42,750 | $ | 12,176 | $ | (1,344 | ) | ||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Deferred Tax Assets and Liabilities | ' | ||||||||||
Year Ended June 30, | |||||||||||
2014 | 2013 | ||||||||||
(Dollars in | |||||||||||
Thousands) | |||||||||||
Deferred tax assets: | |||||||||||
Federal and state credits | $ | 4,354 | $ | 4,918 | |||||||
Foreign tax credits | 4,752 | 33,310 | |||||||||
Federal and state loss carryforwards | 104 | 6,221 | |||||||||
Capital loss carryforwards | 8,012 | 8,076 | |||||||||
Foreign loss carryforwards | 1,672 | 1,653 | |||||||||
Deferred revenue | 4,823 | 4,198 | |||||||||
Restructuring accruals | 26 | 34 | |||||||||
Other reserves and accruals | 6,074 | 4,834 | |||||||||
Intangible assets | 419 | 719 | |||||||||
Property, leasehold improvements, and other basis differences | 2,005 | 2,829 | |||||||||
Other temporary differences | 3,065 | 3,504 | |||||||||
| | | | | | | | ||||
35,306 | 70,296 | ||||||||||
Deferred tax liabilities: | |||||||||||
Deferred revenue | (194 | ) | (151 | ) | |||||||
Intangible assets | (1,295 | ) | (1,444 | ) | |||||||
Property, leasehold improvements, and other basis differences | (298 | ) | (16 | ) | |||||||
Other temporary differences | (826 | ) | (677 | ) | |||||||
| | | | | | | | ||||
(2,613 | ) | (2,288 | ) | ||||||||
Valuation allowance | (9,959 | ) | (9,943 | ) | |||||||
| | | | | | | | ||||
Net deferred tax assets | $ | 22,734 | $ | 58,065 | |||||||
| | | | | | | | ||||
| | | | | | | | ||||
Reconciliation of Reserve for Uncertain Tax Positions | ' | ||||||||||
Year Ended June 30, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(Dollars in Thousands) | |||||||||||
Uncertain tax positions, beginning of year | $ | 22,031 | $ | 21,906 | $ | 24,835 | |||||
Gross increases—tax positions in prior period | 112 | 1,150 | 2,072 | ||||||||
Gross decreases—tax positions in prior period | — | — | (1,468 | ) | |||||||
Gross increases—tax positions in current period | — | — | — | ||||||||
Gross decreases—lapse of statutes | (823 | ) | (1,172 | ) | (2,954 | ) | |||||
Currency translation adjustment | (127 | ) | 147 | (579 | ) | ||||||
| | | | | | | | | | | |
Uncertain tax positions, end of year | $ | 21,193 | $ | 22,031 | $ | 21,906 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||||||||
Jun. 30, 2014 | |||||||||||
Commitments and Contingencies | ' | ||||||||||
Schedule of future minimum lease payments | ' | ||||||||||
Year Ended June 30, | Gross | Scheduled | Net | ||||||||
Payments | Sublease | Payments | |||||||||
Payments | |||||||||||
(Dollars in Thousands) | |||||||||||
2015 | $ | 8,639 | $ | 159 | $ | 8,480 | |||||
2016 | 6,800 | 159 | 6,641 | ||||||||
2017 | 4,255 | 13 | 4,242 | ||||||||
2018 | 3,847 | — | 3,847 | ||||||||
2019 | 3,584 | — | 3,584 | ||||||||
Thereafter | 21,401 | — | 21,401 | ||||||||
| | | | | | | | | | | |
Total | $ | 48,526 | $ | 331 | $ | 48,195 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Segment_and_Geographic_Informa1
Segment and Geographic Information (Tables) | 12 Months Ended | ||||||||||
Jun. 30, 2014 | |||||||||||
Segment and Geographic Information | ' | ||||||||||
Summary of reportable segments' profits | ' | ||||||||||
Subscription | Services | Total | |||||||||
and software | |||||||||||
(Dollars in Thousands) | |||||||||||
Year Ended June 30, 2014: | |||||||||||
Segment revenue | $ | 350,486 | $ | 40,967 | $ | 391,453 | |||||
Segment expenses(1) | (183,378 | ) | (32,547 | ) | (215,925 | ) | |||||
| | | | | | | | | | | |
Segment profit | $ | 167,108 | $ | 8,420 | $ | 175,528 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Year Ended June 30, 2013: | |||||||||||
Segment revenue | $ | 276,585 | $ | 34,802 | $ | 311,387 | |||||
Segment expenses(1) | (176,319 | ) | (30,200 | ) | (206,519 | ) | |||||
| | | | | | | | | | | |
Segment profit | $ | 100,266 | $ | 4,602 | $ | 104,868 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Year Ended June 30, 2012: | |||||||||||
Segment revenue | $ | 213,465 | $ | 29,669 | $ | 243,134 | |||||
Segment expenses(1) | (173,387 | ) | (31,508 | ) | (204,895 | ) | |||||
| | | | | | | | | | | |
Segment profit (loss) | $ | 40,078 | $ | (1,839 | ) | $ | 38,239 | ||||
| | | | | | | | | | | |
| | | | | | | | | | | |
-1 | |||||||||||
Our reportable segments' operating expenses include expenses directly attributable to the segments. Segment expenses do not include allocations of general and administrative; restructuring; interest income, net; and other (income) expense, net. As a result of operating and reportable segments realignment, certain costs are more directly attributable to our new operating segments. Starting with fiscal 2014, segment expenses include selling and marketing, research and development, stock-based compensation and certain corporate expenses incurred in support of the segments. Prior to fiscal 2014, segment expenses included certain allocations of selling and marketing; general and administrative; and research and development and did not include restructuring and other corporate expenses incurred in support of these functions. | |||||||||||
Reconciliation of total segment operating profit to income (loss) before provision for (benefit from) income taxes | ' | ||||||||||
Year Ended June 30, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(Dollars in Thousands) | |||||||||||
Total segment profit for reportable segments | $ | 175,528 | $ | 104,868 | $ | 38,239 | |||||
General and administrative | (45,819 | ) | (49,273 | ) | (53,547 | ) | |||||
Restructuring charges | 15 | 5 | 301 | ||||||||
Other income (expense), net | (2,278 | ) | (1,117 | ) | (3,519 | ) | |||||
Interest income (net) | 1,087 | 2,955 | 3,374 | ||||||||
| | | | | | | | | | | |
Income (loss) before provision for (benefit from) income taxes | $ | 128,533 | $ | 57,438 | $ | (15,152 | ) | ||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Domestic and International Sales as a Percentage of Total Revenue | ' | ||||||||||
Year Ended June 30, | |||||||||||
2014 | 2013 | 2012 | |||||||||
United States | 35.5 | % | 38.5 | % | 29.5 | % | |||||
Europe | 30.2 | 29.3 | 33.7 | ||||||||
Other(1) | 34.3 | 32.2 | 36.8 | ||||||||
| | | | | | | | | | | |
100 | % | 100 | % | 100 | % | ||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
-1 | |||||||||||
Other consists primarily of Asia Pacific, Canada, Latin America and the Middle East. | |||||||||||
Quarterly_Financial_Data_Unaud1
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Quarterly Financial Data (Unaudited) | ' | |||||||||||||
Quarterly Consolidated Statement of Operations Data | ' | |||||||||||||
Three Months Ended | ||||||||||||||
June 30, | March 31, | December 31, | September 30, | |||||||||||
2014 | 2014 | 2013 | 2013 | |||||||||||
(Dollars and Shares in Thousands, Except per Share | ||||||||||||||
Data) | ||||||||||||||
Total revenue | $ | 101,532 | $ | 103,587 | $ | 98,769 | $ | 87,565 | ||||||
Gross profit | 88,653 | 88,299 | 86,326 | 75,487 | ||||||||||
Income from operations | 37,361 | 31,402 | 36,112 | 24,849 | ||||||||||
Net income | 26,678 | 20,843 | 23,263 | 14,999 | ||||||||||
Net income per common share: | ||||||||||||||
Basic | $ | 0.29 | $ | 0.23 | $ | 0.25 | $ | 0.16 | ||||||
Diluted | $ | 0.29 | $ | 0.22 | $ | 0.25 | $ | 0.16 | ||||||
Weighted average shares outstanding: | ||||||||||||||
Basic | 91,916 | 92,414 | 92,839 | 93,410 | ||||||||||
Diluted | 92,710 | 93,365 | 93,816 | 94,522 | ||||||||||
Three Months Ended | ||||||||||||||
June 30, | March 31, | December 31, | September 30, | |||||||||||
2013 | 2013 | 2012 | 2012 | |||||||||||
(Dollars and Shares in Thousands, Except per Share | ||||||||||||||
Data) | ||||||||||||||
Total revenue | $ | 83,264 | $ | 79,357 | $ | 77,309 | $ | 71,457 | ||||||
Gross profit | 70,276 | 66,708 | 64,936 | 59,119 | ||||||||||
(Loss) income from operations | 15,383 | 16,334 | 14,929 | 8,954 | ||||||||||
Net (loss) income | 20,399 | 10,513 | 9,937 | 4,413 | ||||||||||
Net (loss) income per common share: | ||||||||||||||
Basic | $ | 0.28 | $ | 0.11 | $ | 0.11 | $ | 0.05 | ||||||
Diluted | $ | 0.28 | $ | 0.11 | $ | 0.1 | $ | 0.05 | ||||||
Weighted average shares outstanding: | ||||||||||||||
Basic | 93,680 | 93,730 | 93,512 | 93,428 | ||||||||||
Diluted | 95,257 | 95,400 | 95,463 | 95,670 |
Operations_Details
Operations (Details) | Jun. 30, 2014 |
item | |
Operations | ' |
Number of countries of operations | 31 |
Significant_Accounting_Policie3
Significant Accounting Policies (Details) (U.S. corporate bonds, USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Short-term Marketable Securities | ' | ' |
Marketable Securities | ' | ' |
Fair Value | $67,619 | $57,015 |
Cost | 67,587 | 57,046 |
Unrealized Gain | 39 | 8 |
Unrealized Loss | -7 | -39 |
Long-term Marketable Securities | ' | ' |
Marketable Securities | ' | ' |
Fair Value | 31,270 | 35,353 |
Cost | 31,290 | 35,402 |
Unrealized Gain | 1 | 0 |
Unrealized Loss | ($21) | ($49) |
Significant_Accounting_Policie4
Significant Accounting Policies (Details 2) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Property, Plant and Equipment | ' | ' | ' |
Depreciation expense | $3.30 | $3.40 | $3.50 |
Computer equipment | ' | ' | ' |
Property, Plant and Equipment | ' | ' | ' |
Estimated Useful Life | '3 years | ' | ' |
Purchased software | Minimum | ' | ' | ' |
Property, Plant and Equipment | ' | ' | ' |
Estimated Useful Life | '3 years | ' | ' |
Purchased software | Maximum | ' | ' | ' |
Property, Plant and Equipment | ' | ' | ' |
Estimated Useful Life | '5 years | ' | ' |
Furniture and fixtures | Minimum | ' | ' | ' |
Property, Plant and Equipment | ' | ' | ' |
Estimated Useful Life | '3 years | ' | ' |
Furniture and fixtures | Maximum | ' | ' | ' |
Property, Plant and Equipment | ' | ' | ' |
Estimated Useful Life | '10 years | ' | ' |
Significant_Accounting_Policie5
Significant Accounting Policies (Details 3) (USD $) | 12 Months Ended | ||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2011 | Jun. 30, 2010 | |
item | item | ||||
Revenue recognition | ' | ' | ' | ' | ' |
Expense reduction to offset the lower revenue | ' | ' | $0 | $0 | $0 |
Concessions given on contract modification to an existing term arrangement | 0 | ' | ' | ' | ' |
Revenue and cost of revenue reclassifications | ' | ' | ' | ' | ' |
Subscription and software revenue | 350,486,000 | 276,585,000 | 213,465,000 | ' | ' |
Services and other | 40,967,000 | 34,802,000 | 29,669,000 | ' | ' |
Cost of subscription and software revenue | 20,141,000 | 20,148,000 | 20,769,000 | ' | ' |
Cost of services and other revenue | 32,547,000 | 30,200,000 | 31,508,000 | ' | ' |
Other Licensing Matters | ' | ' | ' | ' | ' |
Number of claims outstanding | 0 | 0 | ' | ' | ' |
As Previously Reported | ' | ' | ' | ' | ' |
Revenue and cost of revenue reclassifications | ' | ' | ' | ' | ' |
Subscription and software revenue | ' | 239,654,000 | 166,688,000 | ' | ' |
Services and other | ' | 71,733,000 | 76,446,000 | ' | ' |
Cost of subscription and software revenue | ' | 12,788,000 | 10,617,000 | ' | ' |
Cost of services and other revenue | ' | 37,560,000 | 41,660,000 | ' | ' |
Reclassifications | ' | ' | ' | ' | ' |
Revenue and cost of revenue reclassifications | ' | ' | ' | ' | ' |
Subscription and software revenue | ' | 36,931,000 | 46,777,000 | ' | ' |
Services and other | ' | -36,931,000 | -46,777,000 | ' | ' |
Cost of subscription and software revenue | ' | 7,360,000 | 10,152,000 | ' | ' |
Cost of services and other revenue | ' | -7,360,000 | -10,152,000 | ' | ' |
Legacy SMS | ' | ' | ' | ' | ' |
Revenue and cost of revenue reclassifications | ' | ' | ' | ' | ' |
Period over which customers typically received SMS | '1 year | ' | ' | ' | ' |
Subscription and software revenue | 30,341,000 | 36,931,000 | 46,777,000 | ' | ' |
Services and other | ' | -36,931,000 | -46,777,000 | ' | ' |
Cost of subscription and software revenue | 5,571,000 | 7,360,000 | 10,152,000 | ' | ' |
Cost of services and other revenue | ' | -7,360,000 | -10,152,000 | ' | ' |
Legacy SMS | As Previously Reported | ' | ' | ' | ' | ' |
Revenue and cost of revenue reclassifications | ' | ' | ' | ' | ' |
Subscription and software revenue | ' | 0 | 0 | ' | ' |
Services and other | ' | 0 | 0 | ' | ' |
Cost of subscription and software revenue | ' | 0 | 0 | ' | ' |
Cost of services and other revenue | ' | 0 | 0 | ' | ' |
Legacy SMS | Reclassifications | ' | ' | ' | ' | ' |
Revenue and cost of revenue reclassifications | ' | ' | ' | ' | ' |
Subscription and software revenue | ' | 36,931,000 | 46,777,000 | ' | ' |
Services and other | ' | -36,931,000 | -46,777,000 | ' | ' |
Cost of subscription and software revenue | ' | 7,360,000 | 10,152,000 | ' | ' |
Cost of services and other revenue | ' | -7,360,000 | -10,152,000 | ' | ' |
Subscription and Software | ' | ' | ' | ' | ' |
Revenue and cost of revenue reclassifications | ' | ' | ' | ' | ' |
Subscription and software revenue | ' | 239,654,000 | 166,688,000 | ' | ' |
Cost of subscription and software revenue | ' | 12,788,000 | 10,617,000 | ' | ' |
Subscription and Software | As Previously Reported | ' | ' | ' | ' | ' |
Revenue and cost of revenue reclassifications | ' | ' | ' | ' | ' |
Subscription and software revenue | ' | 239,654,000 | 166,688,000 | ' | ' |
Cost of subscription and software revenue | ' | 12,788,000 | 10,617,000 | ' | ' |
Subscription and Software | Reclassifications | ' | ' | ' | ' | ' |
Revenue and cost of revenue reclassifications | ' | ' | ' | ' | ' |
Subscription and software revenue | ' | 0 | 0 | ' | ' |
Cost of subscription and software revenue | ' | 0 | 0 | ' | ' |
Professional services, training and other | ' | ' | ' | ' | ' |
Revenue and cost of revenue reclassifications | ' | ' | ' | ' | ' |
Services and other | ' | 71,733,000 | 76,446,000 | ' | ' |
Cost of services and other revenue | ' | 37,560,000 | 41,660,000 | ' | ' |
Professional services, training and other | As Previously Reported | ' | ' | ' | ' | ' |
Revenue and cost of revenue reclassifications | ' | ' | ' | ' | ' |
Services and other | ' | 71,733,000 | 76,446,000 | ' | ' |
Cost of services and other revenue | ' | 37,560,000 | 41,660,000 | ' | ' |
Professional services, training and other | Reclassifications | ' | ' | ' | ' | ' |
Revenue and cost of revenue reclassifications | ' | ' | ' | ' | ' |
Services and other | ' | 0 | 0 | ' | ' |
Cost of services and other revenue | ' | $0 | $0 | ' | ' |
Significant_Accounting_Policie6
Significant Accounting Policies (Details 4) (USD $) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Installments Receivable | ' | ' |
Threshold period for classification of installments receivable to trade accounts receivable | '45 days | ' |
Installments receivable, Current | ' | ' |
Installments receivable, gross | $700,000 | $14,400,000 |
Less: Unamortized discount | ' | 600,000 |
Installments receivable, Non-current | ' | ' |
Installments receivable, gross | 900,000 | 1,100,000 |
Less: Unamortized discount | ' | 100,000 |
Accounts Receivable | ' | ' |
Gross | 41,997,000 | 38,603,000 |
Allowance | 3,465,000 | 1,615,000 |
Net | 38,532,000 | 36,988,000 |
Maximum | ' | ' |
Installments receivable, Current | ' | ' |
Less: Unamortized discount | 100,000 | ' |
Installments receivable, Non-current | ' | ' |
Less: Unamortized discount | 100,000 | ' |
Allowance For Doubtful Accounts Installments Receivables Current | ' | ' |
Installments receivable, Current | ' | ' |
Allowance for doubtful accounts | ' | 100,000 |
Allowance For Doubtful Accounts Installments Receivables Current | Maximum | ' | ' |
Installments receivable, Current | ' | ' |
Allowance for doubtful accounts | 100,000 | ' |
Allowance For Doubtful Accounts Installments Receivables Non Current | ' | ' |
Installments receivable, Non-current | ' | ' |
Allowance for doubtful accounts | ' | 100,000 |
Allowance For Doubtful Accounts Installments Receivables Non Current | Maximum | ' | ' |
Installments receivable, Non-current | ' | ' |
Allowance for doubtful accounts | 100,000 | ' |
Accounts Receivable Allowances | ' | ' |
Allowance for doubtful accounts | ' | ' |
Beginning balance | 1,615,000 | 1,982,000 |
Provision for bad debts | 1,922,000 | 521,000 |
Write-offs | -72,000 | -888,000 |
Ending balance | $3,465,000 | $1,615,000 |
Significant_Accounting_Policie7
Significant Accounting Policies (Details 5) (Fair Value, Measurements, Recurring, USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Level 1 Inputs | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Cash equivalents | $175,875 | $117,010 |
Marketable Securities | 0 | 0 |
Level 2 Inputs | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Cash equivalents | 0 | 0 |
Marketable Securities | $98,889 | $92,368 |
Significant_Accounting_Policie8
Significant Accounting Policies (Details 6) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Foreign Currency Transactions | ' | ' | ' |
Foreign currency transaction and remeasurement losses | $2.30 | $1.20 | $3.70 |
Computer software development costs | ' | ' | ' |
Computer Software Development Costs | ' | ' | ' |
Maximum period over which amortization of computer software development costs provided on a product-by-product basis using straight-line method | '3 years | ' | ' |
Computer software cost capitalized | 0.7 | 1.2 | 0.5 |
Amortization of expense charged to operations | 1 | 1.1 | 1.6 |
Computer software development accumulated amortization | $72.70 | $71.50 | ' |
Weighted average remaining useful life of computer software development costs | '1 year 10 months 24 days | '1 year 2 months 12 days | ' |
Significant_Accounting_Policie9
Significant Accounting Policies (Details 7) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Net (Loss) Income per Common Share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net (loss) income | $26,678 | $20,843 | $23,263 | $14,999 | $20,399 | $10,513 | $9,937 | $4,413 | $85,783 | $45,262 | ($13,808) |
Weighted average shares outstanding (in shares) | 91,916 | 92,414 | 92,839 | 93,410 | 93,680 | 93,730 | 93,512 | 93,428 | 92,648 | 93,586 | 93,780 |
Dilutive impact from: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employee equity awards (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 1,017 | 1,824 | 0 |
Dilutive weighted average shares outstanding (in shares) | 92,710 | 93,365 | 93,816 | 94,522 | 95,257 | 95,400 | 95,463 | 95,670 | 93,665 | 95,410 | 93,780 |
Net income (loss) per common share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic (in dollars per share) | $0.29 | $0.23 | $0.25 | $0.16 | $0.28 | $0.11 | $0.11 | $0.05 | $0.93 | $0.48 | ($0.15) |
Diluted (in dollars per share) | $0.29 | $0.22 | $0.25 | $0.16 | $0.28 | $0.11 | $0.10 | $0.05 | $0.92 | $0.47 | ($0.15) |
Employee Equity Awards | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employee equity awards (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 291 | 443 | 6,554 |
Recovered_Sheet1
Significant Accounting Policies (Details 8) | 12 Months Ended |
Jun. 30, 2014 | |
item | |
Concentration of Credit Risk | ' |
Maturity period of marketable securities, maximum minimum period | '1 month |
Maturity period of marketable securities, maximum | '23 months |
Number of customer's receivables balance representing a concentration | 1 |
Accounts and installments receivable | Customers concentration risk | ' |
Concentration of Credit Risk | ' |
Percentage of total receivables | 11.00% |
Recovered_Sheet2
Significant Accounting Policies (Details 9) (USD $) | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
Finite-Lived Intangible Assets | ' | ' | ' |
Intangible asset amortization expense | $900,000 | $700,000 | $100,000 |
Future Amortization Expense | ' | ' | ' |
Amortization expense - 2015 | 700,000 | ' | ' |
Amortization expense - 2016 | 100,000 | ' | ' |
Technology and patents | ' | ' | ' |
Finite-Lived Intangible Assets | ' | ' | ' |
Gross Carrying Amount | 2,596,000 | 2,596,000 | ' |
Accumulated Amortization | -1,899,000 | -977,000 | ' |
Effect of currency translation | 197,000 | 172,000 | ' |
Net Carrying Amount | $894,000 | $1,791,000 | ' |
Technology and patents | Weighted average | ' | ' | ' |
Finite-Lived Intangible Assets | ' | ' | ' |
Weighted Average Remaining Life | '1 year 1 month 6 days | '2 years | ' |
Recovered_Sheet3
Significant Accounting Policies (Details 10) (USD $) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
item | item | |
Goodwill: | ' | ' |
Goodwill, net, beginning balance | $19,132,000 | ' |
Goodwill, net, ending balance | 19,276,000 | 19,132,000 |
Number of triggering events indicating goodwill impairment occurred | 0 | 0 |
Subscription and software | ' | ' |
Goodwill: | ' | ' |
Goodwill, gross, beginning balance | 84,701,000 | 84,968,000 |
Accumulated impairment losses, beginning balance | -65,569,000 | -65,569,000 |
Goodwill, net, beginning balance | 19,132,000 | 19,399,000 |
Effect of currency translation | 144,000 | -267,000 |
Goodwill, gross, ending balance | 84,845,000 | 84,701,000 |
Accumulated impairment losses, ending balance | -65,569,000 | -65,569,000 |
Goodwill, net, ending balance | 19,276,000 | 19,132,000 |
Services | ' | ' |
Goodwill: | ' | ' |
Goodwill, gross, ending balance | 5,100,000 | 5,100,000 |
Accumulated impairment losses, ending balance | -5,100,000 | -5,100,000 |
Goodwill, net, ending balance | $0 | $0 |
Recovered_Sheet4
Significant Accounting Policies (Details 11) (Computer software developed for internal use, USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Millions, unless otherwise specified | ||
Computer software developed for internal use | ' | ' |
Computer Software Development Costs | ' | ' |
Capitalized costs for computer software developed for internal use | $22.70 | $21 |
Accumulated amortization | $19.50 | $18.30 |
Recovered_Sheet5
Significant Accounting Policies (Details 12) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2011 |
Comprehensive Income (Loss) | ' | ' | ' | ' |
Foreign translation adjustments | $9.40 | $7.30 | $8.10 | $9.10 |
Net unrealized gains (losses) on available for sale securities | ' | -0.1 | ' | ' |
Accounting for Transfers of Financial Assets | ' | ' | ' | ' |
Outstanding secured borrowings | 0 | 0 | ' | ' |
Receivables pledged as collateral | 0 | 0 | ' | ' |
Advertising expenses | ' | ' | ' | ' |
Advertising expenses | 2.1 | 2.9 | 2.2 | ' |
Prepaid advertising costs | 0 | 0 | ' | ' |
Research and Development Expense | ' | ' | ' | ' |
Technology acquired | 4.9 | ' | ' | ' |
Maximum | ' | ' | ' | ' |
Comprehensive Income (Loss) | ' | ' | ' | ' |
Net unrealized gains (losses) on available for sale securities | $0.10 | ' | ' | ' |
Secured_Borrowings_and_Collate1
Secured Borrowings and Collateralized Receivables (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2014 |
Secured Borrowings and Collateralized Receivables | ' | ' | ' |
Total secured borrowings | $0 | ' | $0 |
Interest income associated with collateralized receivables | 0.2 | 1.2 | ' |
Interest expense associated with secured borrowings | $0.30 | $3 | ' |
Supplemental_Balance_Sheet_Inf2
Supplemental Balance Sheet Information (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
Property, Plant and Equipment | ' | ' |
Accumulated depreciation | ($35,882,000) | ($32,773,000) |
Property, equipment and leasehold improvements-net | 7,588,000 | 7,829,000 |
Asset retirement obligations | ' | ' |
Balance of asset retirement obligations | 600,000 | 600,000 |
Computer equipment | ' | ' |
Property, Plant and Equipment | ' | ' |
Property, equipment and leasehold improvements-at cost | 11,772,000 | 11,106,000 |
Purchased software | ' | ' |
Property, Plant and Equipment | ' | ' |
Property, equipment and leasehold improvements-at cost | 23,720,000 | 21,642,000 |
Furniture and fixtures | ' | ' |
Property, Plant and Equipment | ' | ' |
Property, equipment and leasehold improvements-at cost | 4,530,000 | 4,475,000 |
Leasehold improvements | ' | ' |
Property, Plant and Equipment | ' | ' |
Property, equipment and leasehold improvements-at cost | $3,448,000 | $3,379,000 |
Supplemental_Balance_Sheet_Inf3
Supplemental Balance Sheet Information (Details 2) (USD $) | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
item | item | item | |
Restructuring Charges | ' | ' | ' |
Number of restructuring actions taken | 0 | 0 | 0 |
Restructuring charges | $15,000 | $5,000 | $301,000 |
Accrued facility exit costs | 100,000 | 100,000 | 900,000 |
Cash payments related to accrued facility exit costs | ' | 800,000 | 3,000,000 |
Anticipated net cash payments | 100,000 | ' | ' |
Accrued expenses and other current liabilities | ' | ' | ' |
Royalties and outside commissions | 3,596,000 | 4,312,000 | ' |
Payroll and payroll-related | 19,347,000 | 18,702,000 | ' |
Other | 12,041,000 | 11,563,000 | ' |
Total accrued expenses and other liabilities | 34,984,000 | 34,577,000 | ' |
Other non-current liabilities | ' | ' | ' |
Deferred rent | 402,000 | 862,000 | ' |
Other | 11,448,000 | 11,515,000 | ' |
Total other non-current liabilities | 11,850,000 | 12,377,000 | ' |
Maximum | ' | ' | ' |
Restructuring Charges | ' | ' | ' |
Cash payments related to accrued facility exit costs | $100,000 | ' | ' |
Common_Stock_Details
Common Stock (Details) (USD $) | 0 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2014 | Apr. 23, 2014 | Apr. 23, 2013 | Oct. 24, 2012 | Nov. 01, 2011 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
Common Stock | ' | ' | ' | ' | ' | ' | ' | ' |
Approved stock repurchase program, authorized amount | ' | $200,000,000 | $150,000,000 | $100,000,000 | $100,000,000 | ' | ' | ' |
Repurchase of common stock (in shares) | ' | ' | ' | ' | ' | 3,110,114 | 3,064,151 | ' |
Repurchase of common stock, amount | ' | ' | ' | ' | ' | 121,776,000 | 84,677,000 | 46,105,000 |
Remaining capacity under the stock repurchase program | $175,100,000 | $37,500,000 | ' | ' | ' | ' | ' | ' |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) (USD $) | 12 Months Ended | 12 Months Ended | |||||||||||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Aug. 01, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Aug. 01, 2014 | Jun. 30, 2014 | Apr. 30, 2010 | Jun. 30, 2014 | 31-May-05 | |
Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Restricted Stock Units | Restricted Stock Units | Restricted Stock Units | Restricted Stock Units | 2010 Plan | 2010 Plan | 2005 Plan | 2005 Plan | ||||
Subsequent Event | Minimum | Maximum | Subsequent Event | ||||||||||||||
Stock-based compensation, additional disclosures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum number of shares authorized (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,000,000 | ' | 4,000,000 |
Common stock reserved for future issuance or settlement (in shares) | 6,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,382,564 | ' | 327,591 | ' |
General award terms | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Award vesting period | ' | ' | ' | '4 years | ' | ' | ' | ' | ' | '4 years | ' | ' | ' | ' | ' | ' | ' |
Contractual terms | ' | ' | ' | ' | ' | ' | ' | '7 years | '10 years | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average assumptions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average fair value (in dollars per share) | ' | ' | ' | $11.56 | $9.76 | $6.49 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Risk-free interest rate (as a percent) | ' | ' | ' | 1.30% | 0.60% | 1.10% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected dividend yield (as a percent) | ' | ' | ' | 0.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected life | ' | ' | ' | '4 years 7 months 6 days | '4 years 9 months 18 days | '4 years 7 months 6 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected volatility factor (as a percent) | ' | ' | ' | 39.00% | 49.00% | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock options activity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding, beginning of period (in shares) | ' | ' | ' | 1,852,118 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Granted (in shares) | ' | ' | ' | 352,795 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercised (in shares) | ' | ' | ' | -723,330 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cancelled / Forfeited (in shares) | ' | ' | ' | -235,055 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding, end of period (in shares) | ' | ' | ' | 1,246,528 | 1,852,118 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vested and exercisable, end of period (in shares) | ' | ' | ' | 733,078 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vested and expected to vest, end of period (in shares) | ' | ' | ' | 1,164,018 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Exercise Price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding, beginning of period (in dollars per share) | ' | ' | ' | $14.68 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Granted (in dollars per share) | ' | ' | ' | $33.06 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercised (in dollars per share) | ' | ' | ' | $12.04 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cancelled / Forfeited (in dollars per share) | ' | ' | ' | $20.58 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding, end of period (in dollars per share) | ' | ' | ' | $20.30 | $14.68 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vested and exercisable, end of period (in dollars per share) | ' | ' | ' | $16.53 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vested and expected to vest, end of period (in dollars per share) | ' | ' | ' | $19.96 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Remaining Contractual Term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding, end of period | ' | ' | ' | '7 years 1 month 20 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vested and exercisable, end of period | ' | ' | ' | '6 years 4 months 2 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vested and expected to vest, end of period | ' | ' | ' | '7 years 25 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate Intrinsic Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding, beginning of period | ' | ' | ' | $26,140,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding, end of period | ' | ' | ' | 32,543,000 | 26,140,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vested and exercisable, end of period | ' | ' | ' | 21,894,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vested and expected to vest, end of period | ' | ' | ' | 30,780,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted stock units activity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding, beginning of period (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,030,839 | ' | ' | ' | ' | ' | ' | ' |
Granted (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 415,938 | ' | ' | ' | ' | ' | ' | ' |
Settled (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | -563,586 | ' | ' | ' | ' | ' | ' | ' |
Cancelled / Forfeited (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | -265,922 | ' | ' | ' | ' | ' | ' | ' |
Outstanding, end of period (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 617,269 | 1,030,839 | ' | ' | ' | ' | ' | ' |
Vested and expected to vest (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 518,195 | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Grant Date Fair Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding, beginning of period (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | $17.69 | ' | ' | ' | ' | ' | ' | ' |
Granted (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | $33.07 | $23.46 | $15.52 | ' | ' | ' | ' | ' |
Settled (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | $18.58 | ' | ' | ' | ' | ' | ' | ' |
Cancelled / Forfeited (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | $21.21 | ' | ' | ' | ' | ' | ' | ' |
Outstanding, end of period (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | $25.74 | $17.69 | ' | ' | ' | ' | ' | ' |
Vested and expected to vest, end of period (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | $25.84 | ' | ' | ' | ' | ' | ' | ' |
Total fair value of shares vested from RSU grants | ' | ' | ' | ' | ' | ' | ' | ' | ' | 22,200,000 | 22,500,000 | 14,000,000 | ' | ' | ' | ' | ' |
Total unrecognized compensation cost | ' | ' | ' | 4,000,000 | ' | ' | ' | ' | ' | 13,200,000 | ' | ' | ' | ' | ' | ' | ' |
Total unrecognized compensation cost, period of recognition | ' | ' | ' | '2 years 3 months 18 days | ' | ' | ' | ' | ' | '2 years 4 months 24 days | ' | ' | ' | ' | ' | ' | ' |
Total intrinsic value of options exercised | ' | ' | ' | 19,900,000 | 55,700,000 | 14,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash proceeds from option exercises | ' | ' | ' | 8,700,000 | 21,100,000 | 8,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments related to tax withholding | $7,831,000 | $7,705,000 | $4,597,000 | $7,800,000 | $7,700,000 | $4,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock grant (in shares) | ' | ' | ' | ' | ' | ' | 281,085 | ' | ' | ' | ' | ' | 331,742 | ' | ' | ' | ' |
StockBased_Compensation_Detail1
Stock-Based Compensation (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Recorded as expenses: | ' | ' | ' |
Total stock-based compensation | $14,056 | $14,637 | $12,406 |
Cost of services and other | ' | ' | ' |
Recorded as expenses: | ' | ' | ' |
Total stock-based compensation | 1,239 | 1,281 | 1,168 |
Selling and marketing | ' | ' | ' |
Recorded as expenses: | ' | ' | ' |
Total stock-based compensation | 3,280 | 3,890 | 4,601 |
Research and development | ' | ' | ' |
Recorded as expenses: | ' | ' | ' |
Total stock-based compensation | 4,129 | 2,969 | 1,334 |
General and administrative | ' | ' | ' |
Recorded as expenses: | ' | ' | ' |
Total stock-based compensation | $5,408 | $6,497 | $5,303 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
Income (loss) before provision for income taxes | ' | ' | ' |
Domestic | $121,329,000 | $54,587,000 | ($14,086,000) |
Foreign | 7,204,000 | 2,851,000 | -1,066,000 |
Income (loss) before provision for (benefit from) income taxes | 128,533,000 | 57,438,000 | -15,152,000 |
Federal | ' | ' | ' |
Current | 0 | 0 | 0 |
Deferred | 32,996,000 | 7,867,000 | -3,409,000 |
State | ' | ' | ' |
Current | 528,000 | 136,000 | 191,000 |
Deferred | 1,005,000 | 693,000 | 33,000 |
Foreign | ' | ' | ' |
Current | 7,785,000 | 7,068,000 | 3,292,000 |
Deferred | 436,000 | -3,588,000 | -1,451,000 |
Provision for (benefit from) income taxes | 42,750,000 | 12,176,000 | -1,344,000 |
Income Tax Reconciliation | ' | ' | ' |
Federal tax provision (benefit) at statutory rate | 44,989,000 | 20,103,000 | -5,303,000 |
State income taxes | 78,000 | 88,000 | 124,000 |
Subpart F and dividend income | 6,667,000 | 4,456,000 | 4,189,000 |
Foreign taxes and rate differences | 1,881,000 | 2,298,000 | 1,001,000 |
Stock-based compensation | 631,000 | 900,000 | 2,968,000 |
Tax credits | -8,902,000 | -4,816,000 | -3,913,000 |
Tax contingencies | -261,000 | -168,000 | -2,385,000 |
Return to provision adjustments | 150,000 | -149,000 | 442,000 |
Domestic production activity deduction | -2,443,000 | 0 | 0 |
Valuation allowance | -16,000 | -1,813,000 | 1,431,000 |
Benefit from foreign restructuring | 0 | -9,266,000 | 0 |
Other | -24,000 | 543,000 | 102,000 |
Provision for (benefit from) income taxes | 42,750,000 | 12,176,000 | -1,344,000 |
Deferred tax assets: | ' | ' | ' |
Federal and state credits | 4,354,000 | 4,918,000 | ' |
Foreign tax credits | 4,752,000 | 33,310,000 | ' |
Federal and state loss carryforwards | 104,000 | 6,221,000 | ' |
Capital loss carryforwards | 8,012,000 | 8,076,000 | ' |
Foreign loss carryforwards | 1,672,000 | 1,653,000 | ' |
Deferred revenue | 4,823,000 | 4,198,000 | ' |
Restructuring accruals | 26,000 | 34,000 | ' |
Other reserves and accruals | 6,074,000 | 4,834,000 | ' |
Intangible assets | 419,000 | 719,000 | ' |
Property, leasehold improvements, and other basis differences | 2,005,000 | 2,829,000 | ' |
Other temporary differences | 3,065,000 | 3,504,000 | ' |
Deferred tax assets, total | 35,306,000 | 70,296,000 | ' |
Deferred tax liabilities: | ' | ' | ' |
Deferred revenue | -194,000 | -151,000 | ' |
Intangible assets | -1,295,000 | -1,444,000 | ' |
Property, leasehold improvements, and other basis differences | -298,000 | -16,000 | ' |
Other temporary differences | -826,000 | -677,000 | ' |
Deferred tax liabilities, total | -2,613,000 | -2,288,000 | ' |
Valuation allowance | -9,959,000 | -9,943,000 | ' |
Net deferred tax assets | 22,734,000 | 58,065,000 | ' |
Operating Loss Carryforwards | ' | ' | ' |
Alternative minimum tax (AMT) credit carryforwards | 4,400,000 | ' | ' |
Deferred tax liability eliminated on restructuring | ' | 9,300,000 | ' |
Capital loss recognized for tax purposes | ' | 22,200,000 | ' |
U.S. capital loss carryforward deferred tax asset | 8,000,000 | ' | ' |
Reconciliation of the reserve for uncertain tax positions | ' | ' | ' |
Unrecognized tax positions, beginning of year | 22,031,000 | 21,906,000 | 24,835,000 |
Gross increases-tax positions in prior period | 112,000 | 1,150,000 | 2,072,000 |
Gross decreases-tax positions in prior period | 0 | 0 | -1,468,000 |
Gross increases-tax positions in current period | 0 | 0 | 0 |
Gross decreases-lapse of statutes | -823,000 | -1,172,000 | -2,954,000 |
Currency translation adjustment | -127,000 | 147,000 | -579,000 |
Unrecognized tax positions, end of year | 21,193,000 | 22,031,000 | 21,906,000 |
Unrecognized tax benefits that if recognized would reduce the effective tax rate | 18,400,000 | ' | ' |
Accrued interest | 2,000,000 | ' | ' |
Accrued penalties related to uncertain tax positions | 1,000,000 | ' | ' |
Benefit for interest and penalties | 100,000 | ' | ' |
Foreign | ' | ' | ' |
Operating Loss Carryforwards | ' | ' | ' |
Net operating loss carryforwards | 6,900,000 | ' | ' |
U.S. federal | ' | ' | ' |
Operating Loss Carryforwards | ' | ' | ' |
Net operating loss carryforwards | 106,800,000 | ' | ' |
Reduction in income tax payable | $700,000 | $500,000 | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
Operating Leases | ' | ' | ' |
Rent expense | $7,100,000 | $6,700,000 | $6,300,000 |
Gross Payments | ' | ' | ' |
2015 | 8,639,000 | ' | ' |
2016 | 6,800,000 | ' | ' |
2017 | 4,255,000 | ' | ' |
2018 | 3,847,000 | ' | ' |
2019 | 3,584,000 | ' | ' |
Thereafter | 21,401,000 | ' | ' |
Total | 48,526,000 | ' | ' |
Scheduled Sublease Payments | ' | ' | ' |
2015 | 159,000 | ' | ' |
2016 | 159,000 | ' | ' |
2017 | 13,000 | ' | ' |
2018 | 0 | ' | ' |
2019 | 0 | ' | ' |
Thereafter | 0 | ' | ' |
Total | 331,000 | ' | ' |
Net Payments | ' | ' | ' |
2015 | 8,480,000 | ' | ' |
2016 | 6,641,000 | ' | ' |
2017 | 4,242,000 | ' | ' |
2018 | 3,847,000 | ' | ' |
2019 | 3,584,000 | ' | ' |
Thereafter | 21,401,000 | ' | ' |
Total | 48,195,000 | ' | ' |
Sublease rental payments received | $200,000 | $800,000 | $3,100,000 |
Commitments_and_Contingencies_2
Commitments and Contingencies (Details 2) (USD $) | 1 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2014 | Jun. 30, 2014 | Jan. 31, 2014 | Jun. 30, 2014 | Jan. 31, 2014 | Jan. 31, 2014 | Jan. 31, 2014 | Jan. 31, 2014 |
item | Office space in Bedford, Massachusetts | Office space in Bedford, Massachusetts | Office space in Bedford, Massachusetts | Office space in Bedford, Massachusetts | Office space in Bedford, Massachusetts | Office space in Bedford, Massachusetts | ||
item | Minimum | Maximum | Lease term commencing on November 1, 2014 | Lease term commencing on February 1, 2015 | ||||
sqft | sqft | |||||||
Legal Matters | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of damages sought | $2.60 | ' | ' | ' | ' | ' | ' | ' |
Matters that might have a material adverse effect on financial position, results of operations or cash flows | ' | 0 | ' | ' | ' | ' | ' | ' |
Operating leases | ' | ' | ' | ' | ' | ' | ' | ' |
Area of office space (in square feet) | ' | ' | ' | ' | ' | ' | 105,874 | 36,799 |
Initial term of lease | ' | ' | ' | ' | ' | ' | '10 years 5 months | ' |
Number of successive five-year terms for which the lease may be extended | ' | ' | 2 | ' | ' | ' | ' | ' |
Extension period of lease term | ' | ' | '5 years | ' | ' | ' | ' | ' |
Base annual rent expense | ' | ' | ' | ' | 2.2 | 3.9 | ' | ' |
Contractual obligations related to the new facility capital expenditures are expected to be made in fiscal 2015 | ' | 2 | ' | ' | ' | ' | ' | ' |
Aggregate capital expenditures with respect to the leased premises | ' | ' | ' | 8.9 | ' | ' | ' | ' |
Future minimum non-cancelable lease payments | ' | 35.8 | ' | ' | ' | ' | ' | ' |
Standby letters of credit | ' | $2.20 | ' | ' | ' | ' | ' | ' |
Retirement_and_Profit_Sharing_1
Retirement and Profit Sharing Plans (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Retirement and Profit Sharing Plans | ' | ' | ' |
Employer matching contributions (as a percent) | 50.00% | ' | ' |
Maximum employee's pretax contribution that can be matched (as a percent) | 6.00% | ' | ' |
Employer matching contributions | $2 | $1.90 | $1.80 |
Segment_and_Geographic_Informa2
Segment and Geographic Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
segment | segment | segment | |||||||||
Segment and Geographic Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of operating segments | ' | ' | ' | ' | ' | ' | ' | ' | 2 | 3 | 3 |
Number of reportable segments | ' | ' | ' | ' | ' | ' | ' | ' | 2 | 3 | 3 |
Summary of operating segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment revenue | $101,532 | $103,587 | $98,769 | $87,565 | $83,264 | $79,357 | $77,309 | $71,457 | $391,453 | $311,387 | $243,134 |
Segment profit (loss) | 37,361 | 31,402 | 36,112 | 24,849 | 15,383 | 16,334 | 14,929 | 8,954 | 129,724 | 55,600 | -15,007 |
Reconciliation to Income Before Income Taxes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
General and administrative | ' | ' | ' | ' | ' | ' | ' | ' | -45,819 | -49,273 | -53,547 |
Restructuring charges | ' | ' | ' | ' | ' | ' | ' | ' | 15 | 5 | 301 |
Other income (expense), net | ' | ' | ' | ' | ' | ' | ' | ' | -2,278 | -1,117 | -3,519 |
Interest income (net) | ' | ' | ' | ' | ' | ' | ' | ' | 1,087 | 2,955 | 3,374 |
Income (loss) before provision for (benefit from) income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 128,533 | 57,438 | -15,152 |
Operating segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary of operating segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment expenses | ' | ' | ' | ' | ' | ' | ' | ' | -215,925 | -206,519 | -204,895 |
Segment profit (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 175,528 | 104,868 | 38,239 |
Subscription and software | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary of operating segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment revenue | ' | ' | ' | ' | ' | ' | ' | ' | 350,486 | 276,585 | 213,465 |
Subscription and software | Operating segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary of operating segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment expenses | ' | ' | ' | ' | ' | ' | ' | ' | -183,378 | -176,319 | -173,387 |
Segment profit (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 167,108 | 100,266 | 40,078 |
Services | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary of operating segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment revenue | ' | ' | ' | ' | ' | ' | ' | ' | 40,967 | 34,802 | 29,669 |
Services | Operating segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary of operating segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment expenses | ' | ' | ' | ' | ' | ' | ' | ' | -32,547 | -30,200 | -31,508 |
Segment profit (loss) | ' | ' | ' | ' | ' | ' | ' | ' | $8,420 | $4,602 | ($1,839) |
Segment_and_Geographic_Informa3
Segment and Geographic Information (Details 2) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
item | item | item | |
Geographic Information | ' | ' | ' |
Revenue (as a percent) | 100.00% | 100.00% | 100.00% |
Number of customers individually generating more than 10% of total revenue | 0 | 0 | 0 |
United States | ' | ' | ' |
Geographic Information | ' | ' | ' |
Revenue (as a percent) | 35.50% | 38.50% | 29.50% |
Long-lived assets | 16.7 | ' | ' |
Europe | ' | ' | ' |
Geographic Information | ' | ' | ' |
Revenue (as a percent) | 30.20% | 29.30% | 33.70% |
Other | ' | ' | ' |
Geographic Information | ' | ' | ' |
Revenue (as a percent) | 34.30% | 32.20% | 36.80% |
Other geographic locations | ' | ' | ' |
Geographic Information | ' | ' | ' |
Long-lived assets | 16.8 | ' | ' |
Quarterly_Financial_Data_Unaud2
Quarterly Financial Data (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Quarterly Financial Data (Unaudited) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenue | $101,532 | $103,587 | $98,769 | $87,565 | $83,264 | $79,357 | $77,309 | $71,457 | $391,453 | $311,387 | $243,134 |
Gross profit | 88,653 | 88,299 | 86,326 | 75,487 | 70,276 | 66,708 | 64,936 | 59,119 | 338,765 | 261,039 | 190,857 |
Income from operations | 37,361 | 31,402 | 36,112 | 24,849 | 15,383 | 16,334 | 14,929 | 8,954 | 129,724 | 55,600 | -15,007 |
Net (loss) income | $26,678 | $20,843 | $23,263 | $14,999 | $20,399 | $10,513 | $9,937 | $4,413 | $85,783 | $45,262 | ($13,808) |
Net (loss) income per common share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic (in dollars per share) | $0.29 | $0.23 | $0.25 | $0.16 | $0.28 | $0.11 | $0.11 | $0.05 | $0.93 | $0.48 | ($0.15) |
Diluted (in dollars per share) | $0.29 | $0.22 | $0.25 | $0.16 | $0.28 | $0.11 | $0.10 | $0.05 | $0.92 | $0.47 | ($0.15) |
Weighted average shares outstanding: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic (in shares) | 91,916 | 92,414 | 92,839 | 93,410 | 93,680 | 93,730 | 93,512 | 93,428 | 92,648 | 93,586 | 93,780 |
Diluted (in shares) | 92,710 | 93,365 | 93,816 | 94,522 | 95,257 | 95,400 | 95,463 | 95,670 | 93,665 | 95,410 | 93,780 |