Fair Value of Financial Assets and Liabilities (Tables)

3 Months Ended

Jul. 31, 2013

Summary of Cash and Cash Equivalents

The following table summarizes the Company’s cash and cash equivalents as of July 31, 2013 and April 30, 2013 (in thousands):

	July 31,		April 30,
	2013		2013
Demand deposit accounts	$	21,486	$	16,522
Money market funds		5,254		1,314
U.S. Treasury bills		—		7,209
Total cash and cash equivalents	$	26,740	$	25,045

Summary of Short-Term Investments

The following table summarizes the Company’s short-term investments as of July 31, 2013 (in thousands):

	Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available-for-sale securities:
Certificates of deposit	$	10,210	$	5	$	(8	)	$	10,207
U.S. Treasury notes		47,898		8		(60	)		47,846
Total short-term investments	$	58,108	$	13	$	(68	)	$	58,053

The following table summarizes the Company’s short-term investments as of April 30, 2013 (in thousands):

	Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available-for-sale securities:
Certificates of deposit	$	9,230	$	9	$	(4	)	$	9,235
U.S. Treasury notes		61,140		15		(100	)		61,055
Total short-term investments	$	70,370	$	24	$	(104	)	$	70,290

Summary of Fair Value of Financial Assets and Liabilities

The following table summarizes the fair value of the Company’s financial assets and liabilities that were measured on a recurring basis as of July 31, 2013 and April 30, 2013 (in thousands):

	Fair Value Measurements at July 31, 2013								Fair Value Measurements at April 30, 2013
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents:
Money market funds	$	5,254	$	—	$	—	$	5,254	$	1,314	$	—	$	—	$	1,314
U.S. Treasury bills		—		—		—		—		7,209		—		—		7,209
Total cash equivalents		5,254		—		—		5,254		8,523		—		—		8,523
Restricted cash		604		—		—		604		604		—		—		604
Short-term investments:
Certificates of deposit		—		10,207		—		10,207		—		9,235		—		9,235
U.S. Treasury notes		47,846		—		—		47,846		61,055		—		—		61,055
Total short-term investments		47,846		10,207		—		58,053		61,055		9,235		—		70,290
Total assets	$	53,704	$	10,207	$	—	$	63,911	$	70,182	$	9,235	$	—	$	79,417
Liabilities:
Contingent consideration (1)	$	—	$	—	$	3,270	$	3,270	$	—	$	—	$	3,270	$	3,270
Total liabilities	$	—	$	—	$	3,270	$	3,270	$	—	$	—	$	3,270	$	3,270

The Company measures certain assets, including property and equipment, goodwill and intangible assets, at fair value on a non-recurring basis. These assets are recognized at fair value when they are deemed to be other-than-temporarily impaired. During the three months ended July 31, 2013 and 2012, there were no non-recurring fair value measurements of assets or liabilities.

⁽¹⁾  On November 5, 2012, the Company acquired Longboard Media, Inc. (“Longboard Media”) for approximately $26.9 million in cash, 0.5 million shares of the Company’s common stock and future contingent consideration with an acquisition date fair value of $4.3 million. The contingent consideration is payable on Longboard Media’s achievement of certain performance goals as of December 31, 2013. The estimated fair value of contingent consideration was determined using a weighted average probability of various outcomes of achieving the performance goals. Changes in the fair value of this contingent consideration are recorded in the income statement through the date of payout.

As of July 31, 2013 and April 30, 2013, the fair value of the contingent consideration included in the purchase consideration, which is recorded in accrued expenses and other current liabilities, was $3.3 million. The fair value of the contingent consideration included in the purchase consideration will continue to be re-measured at the end of each reporting period.

At April 30, 2013, the additional contingent consideration payable to the identified key individuals conditional upon being employed with the Company, was re-measured to $1.5 million which is being recorded over the remaining period for which services are provided. As of July 31, 2013, the Company has accrued $1.0 million for this additional contingent consideration.