Revenue Recognition (Tables)

6 Months Ended

Dec. 31, 2018

Summary of Revenue Disaggregated by Major Product Category and the Related Financial Statement Classification of Revenue

The tables below present our revenue disaggregated by major product category and the related financial statement classification of revenue for the three and six months ended December 31, 2018.

	Three Months Ended December 31, 2018
	Settlement Network Solutions		Legal Spend Management Solutions		Banking Solutions		Payments and Transactional Documents		Healthcare		Other		Total
	(in thousands)
Financial statement classification:
Subscriptions and transactions	$	24,881	$	19,149	$	15,925	$	11,045	$	231	$	57	$	71,288
Software licenses		235		—		2,100		1,499		464		1,367		5,665
Service and maintenance		6,063		—		5,103		12,601		872		2,147		26,786
Other		—		—		—		798		—		309		1,107
Total revenues	$	31,179	$	19,149	$	23,128	$	25,943	$	1,567	$	3,880	$	104,846

	Six Months Ended December 31, 2018
	Settlement Network Solutions		Legal Spend Management Solutions		Banking Solutions		Payments and Transactional Documents		Healthcare		Other		Total
	(in thousands)
Financial statement classification:
Subscriptions and transactions	$	49,163	$	37,545	$	31,591	$	21,614	$	1,057	$	86	$	141,056
Software licenses		807		—		3,426		3,653		883		1,408		10,177
Service and maintenance		12,388		—		10,363		25,360		1,770		4,310		54,191
Other		—		—		—		1,550		—		309		1,859
Total revenues	$	62,358	$	37,545	$	45,380	$	52,177	$	3,710	$	6,113	$	207,283

Summary of Contract Assets and Liabilities

The table below presents our accounts receivable, contract assets and deferred revenue balances as of July 1, 2018 and December 31, 2018.

	July 1,		December 31,
	2018		2018		$ Change
	(in thousands)
Accounts receivable	$	72,391	$	62,902	$	(9,489	)
Contract assets		5,118		6,894		1,776
Deferred revenue		88,888		75,189		(13,699	)

Accounting Standards Update 2014-09 [Member]

Summary of Impact of Adopting the New Revenue Standard on Condensed Consolidated Balance Sheet, Condensed Consolidated Statement of Comprehensive Loss and Condensed Consolidated Statement of Cash Flows

The following tables summarize the impact of adopting the new revenue standard on our consolidated financial statements as of and for the three and six months ended December 31, 2018:

Unaudited Condensed Consolidated Balance Sheet

	At December 31, 2018
(in thousands, unaudited)	As Reported			Adjustments			Balances without adoption of new revenue standard
ASSETS
Current assets:
Cash and cash equivalents	$	87,639		$	—		$	87,639
Cash held for customers		5,382			—			5,382
Marketable securities		8,477			—			8,477
Accounts receivable, net		62,902			1,576			64,478
Prepaid expenses and other current assets		30,205			(11,162	)		19,043
Total current assets		194,605			(9,586	)		185,019
Property and equipment, net		28,876			—			28,876
Goodwill		200,786			—			200,786
Intangible assets, net		160,136			—			160,136
Other assets		33,301			(14,931	)		18,370
Total assets	$	617,704		$	(24,517	)	$	593,187
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	10,166		$	—		$	10,166
Accrued expenses and other current liabilities		29,038			—			29,038
Customer account liabilities		5,382			—			5,382
Deferred revenue		58,496			2,071			60,567
Total current liabilities		103,082			2,071			105,153
Borrowings under credit facility		110,000			—			110,000
Deferred revenue, non-current		16,693			6,542			23,235
Deferred income taxes		7,457			1,619			9,076
Other liabilities		19,627			—			19,627
Total liabilities		256,859			10,232			267,091
Stockholders’ equity
Preferred Stock, $.001 par value		—			—			—
Common Stock, $.001 par value		46			—			46
Additional paid-in-capital		700,520			—			700,520
Accumulated other comprehensive loss		(35,704	)		185			(35,519	)
Treasury stock, at cost		(128,216	)		—			(128,216	)
Accumulated deficit		(175,801	)		(34,934	)		(210,735	)
Total stockholders’ equity		360,845			(34,749	)		326,096
Total liabilities and stockholders’ equity	$	617,704		$	(24,517	)	$	593,187

Unaudited Condensed Consolidated Statement of Comprehensive Income (Loss)

	Three Months Ended December 31, 2018									Six Months Ended December 31, 2018
(in thousands, unaudited)	As Reported			Adjustments			Balances without adoption of new revenue standard			As Reported			Adjustments			Balances without adoption of new revenue standard
Revenues:
Subscriptions and transactions	$	71,288		$	390		$	71,678		$	141,056		$	1,226		$	142,282
Software licenses		5,665			(1,742	)		3,923			10,177			(3,382	)		6,795
Service and maintenance		26,786			514			27,300			54,191			1,227			55,418
Other		1,107			(37	)		1,070			1,859			(37	)		1,822
Total revenues		104,846			(875	)		103,971			207,283			(966	)		206,317
Cost of revenues:
Subscriptions and transactions		31,352			263			31,615			63,021			649			63,670
Software licenses		210			2			212			441			2			443
Service and maintenance		12,528			408			12,936			25,234			801			26,035
Other		891			(30	)		861			1,415			(28	)		1,387
Total cost of revenues		44,981			643			45,624			90,111			1,424			91,535
Gross profit		59,865			(1,518	)		58,347			117,172			(2,390	)		114,782
Operating expenses:
Sales and marketing		22,585			175			22,760			45,607			365			45,972
Product development and engineering		16,815			146			16,961			33,380			178			33,558
General and administrative		11,904			—			11,904			25,769			—			25,769
Amortization of acquisition-related intangible assets		5,253			—			5,253			10,579			—			10,579
Total operating expenses		56,557			321			56,878			115,335			543			115,878
Income from operations		3,308			(1,839	)		1,469			1,837			(2,933	)		(1,096	)
Other expense, net		(858	)		—			(858	)		(1,639	)		—			(1,639	)
Income (loss) before income taxes		2,450			(1,839	)		611			198			(2,933	)		(2,735	)
Benefit (expense) from income taxes		3,519			4,797			(1,278	)		4,853			5,738			(885	)
Net income (loss)	$	5,969		$	(6,636	)	$	(667	)	$	5,051		$	(8,671	)	$	(3,620	)
Net income (loss) per share:
Basic	$	0.15		$	(0.17	)	$	(0.02	)	$	0.13		$	(0.22	)	$	(0.09	)
Diluted	$	0.14		$	(0.16	)	$	(0.02	)	$	0.12		$	(0.21	)	$	(0.09	)
Shares used in computing net income (loss) per share:
Basic		40,635			—			40,635			40,162			—			40,162
Diluted		41,739			(1,104	)		40,635			41,662			(1,500	)		40,162
Other comprehensive income (loss), net of tax:
Unrealized gain (loss) on available for sale securities		8			—			8			6			—			6
Unrealized gain (loss) on interest rate hedging transactions		(1,438	)		—			(1,438	)		(1,111	)		—			(1,111	)
Minimum pension liability adjustments		(10	)		—			(10	)		(56	)		—			(56	)
Foreign currency translation adjustments		(2,543	)		125			(2,418	)		(3,910	)		185			(3,725	)
Other comprehensive loss, net of tax:		(3,983	)		125			(3,858	)		(5,071	)		185			(4,886	)
Comprehensive income (loss)	$	1,986		$	(6,511	)	$	(4,525	)	$	(20	)	$	(8,486	)	$	(8,506	)

Unaudited Condensed Consolidated Statement of Cash Flows

	Six Months Ended December 31, 2018
(in thousands, unaudited)	As Reported			Adjustments			Balances without adoption of new revenue standard
Operating activities:
Net income (loss)	$	5,051		$	(8,671	)	$	(3,620	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Amortization of acquisition-related intangible assets		10,579			—			10,579
Stock-based compensation plan expense		21,891			15			21,906
Depreciation and other amortization		11,191			—			11,191
Gain on sale of cost-method investment		(237	)		—			(237	)
Deferred income tax benefit		(6,177	)		5,738			(439	)
Provision for allowances on accounts receivable		159			—			159
Amortization of debt issuance costs		208			—			208
Amortization of discount on investments		(75	)		—			(75	)
Loss (gain) on disposal of equipment		594			—			594
Loss (gain) on foreign exchange		326			(5	)		321
Changes in operating assets and liabilities:
Accounts receivable		8,827			328			9,155
Prepaid expenses and other current assets		(1,982	)		2,754			772
Other assets		(1,643	)		1,004			(639	)
Accounts payable		403			—			403
Accrued expenses		(4,858	)		—			(4,858	)
Customer account liabilities		2,761			—			2,761
Deferred revenue		(13,491	)		(1,163	)		(14,654	)
Other liabilities		(278	)		—			(278	)
Net cash provided by operating activities	$	33,249		$	—		$	33,249