Basis of Presentation and Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2018

Summary of Change in Cash Flows As Reported and As Previously Reported Prior to Adoption of Standards

The following table summarizes the change in cash flows as reported and as previously reported prior to the adoption of these standards (in thousands):

	Quarter Ended
	March 31, 2018			March 31, 2017
	As Reported			As Reported		As previously Reported
Change in restricted cash		-			-	$	(18	)
Net cash provided by (used in) investing activities		(343	)	$	10,457		10,439
NET INCREASE (DECREASE)		21,783			28,993		28,975
Balance at beginning of period*		194,874			109,295		107,343
Balance at end of period*		216,657			138,288		136,318

*: Amounts in As Reported column include cash, cash equivalents and restricted cash as required. Amounts in the As Previously Reported column reflect only cash and cash equivalents.

Summary of Revenue Comprised of Major Product and Service Lines

The Company’s revenue was comprised of the following major product and service lines (in thousands):

	Three months ended March 31
	2018		2017
Major product/service lines
Products and licenses	$	20,512	$	19,578
Services:
Subscriptions		34,953		27,252
Maintenance and support		25,226		21,980
Professional services and training		3,553		3,498
Total services revenue		63,732		52,730
Total revenue	$	84,244	$	72,308

Summary of Revenue by Timing of Revenue Recognition

The following table presents the Company’s revenue by timing of revenue recognition (in thousands):

	Three months ended March 31
	2018		2017
Timing of revenue recognition
Products and services transferred at a point in time	$	20,512	$	19,578
Products and services transferred over time		63,732		52,730
Total revenue	$	84,244	$	72,308

Summary of Deferred Revenues from Contracts with Customers

The following table provides information about deferred revenues from contracts with customers (in thousands).

	As of March 31, 2018
Deferred Revenue (current)	$	121,818
Deferred Revenue		34,575
Total Deferred Revenue	$	156,393

Summary of Estimated Revenue Expected to be Recognized Over Time Related to Performance Obligations

The following table includes estimated revenue expected to be recognized over time related to performance obligations that are unsatisfied (or partially unsatisfied) as of March 31, 2018 (in thousands).

	Remainder of 2018		2019		2020		2021		Thereafter
Performance obligations transferred over time	$	109,260	$	31,104	$	12,816	$	2,019	$	1,194
Total net revenue	$	109,260	$	31,104	$	12,816	$	2,019	$	1,194

Topic 606 [Member]

Summary of Impacts of Adopting the New Standard on Financial Statements

The following tables summarize the impacts of adopting the new standard on the Company’s condensed consolidated financial statements as of adoption on January 1, 2018. Select condensed consolidated balance sheet line items that reflect the adoption of the new standard are as follows (in thousands):

	As reported on December 31, 2017			Impact of adoption			As adjusted on January 1, 2018
ASSETS
Deferred costs, current		-		$	3,755		$	3,755
Other assets including non-current deferred cost		1,593			12,156			13,749
LIABILITIES
Deferred revenue, current		126,174			(4,159	)		122,015
Deferred revenue		33,081			597			33,678
STOCKHOLDERS' EQUITY
Accumulated deficit	$	(256,537	)	$	19,473		$	(237,064	)

The following tables summarize the impacts of adopting the new standard on the Company’s condensed consolidated financial statements for the three months ended March 31, 2018. Select consolidated balance sheet line items that reflect the adoption of the new standard are as follows:

	March 31, 2018
	As reported			Adjustments			Balances without adoption of Topic 606
ASSETS
Deferred cost, current	$	4,452		$	(4,452	)		-
Other assets including non-current deferred cost		15,455			(14,043	)		1,412
LIABILITIES AND STOCKHOLDERS' EQUITY
Deferred revenue, current		121,818			4,402			126,220
Deferred revenue		34,575			204			34,779
STOCKHOLDERS' EQUITY
Accumulated deficit	$	(246,845	)	$	(23,101	)	$	(269,946	)

Select Condensed Consolidated Statement of operations line items for the three months ended March 31, 2018 that reflect the adoption of the new standard are as follows:

	Three months ended March 31, 2018
	As reported			Adjustments			Balances without adoption of Topic 606
Net revenue:
Products and license	$	20,512		$	(234	)	$	20,278
Services:
Subscriptions		34,953			86			35,039
Maintenance and Support		25,226			(958	)		24,268
Professional services and training		3,553			62			3,615
Total services		63,732			(810	)		62,922
Total net revenue		84,244			(1,044	)		83,200
Operating expenses:
Sales and marketing		39,531			2,585			42,116
Loss from operations		(11,237	)		(3,629	)		(14,866	)
Net loss		(9,781	)		(3,629	)		(13,410	)
Net loss per share of common stock stockholders, basic and diluted	$	(0.28	)	$	(0.11	)	$	(0.39	)

Select Condensed Consolidated Statement of Cash Flows for the three months ended March 31, 2018 that reflect the adoption of the new standard are as follows: (in thousands)

	Three months ended March 31, 2018
Statement of Cash Flows	As reported			Adjustments			Balance without adoption of Topic 606
Net loss	$	(9,781	)	$	(3,629	)	$	(13,410	)
Adjustments to reconcile net income (loss) to net cash provided by operating    activities
Amortization of deferred costs		1,041			(1,041	)		-
Changes in operating assets and liabilities:
Deferred costs		(3,626	)		3,626			-
Deferred revenue		700			1,044			1,744
Net cash provided by operating activities	$	22,502		$	-		$	22,502