Recent Accounting Pronouncements (Tables)

6 Months Ended

Jun. 30, 2018

Accounting Standards Update 2014-09 [Member]

Summary of Impact of Adoption of Accounting Standards

The cumulative effect of the adoption on our condensed consolidated balance sheet, by applying the modified retrospective method as of January 1, 2018, is as follows (in thousands):

	As Reported		Cumulative Adjustments			As Adjusted
	December 31, 2017					January 1, 2018
Assets:
Accounts receivable, net(1)	$	34,461	$	7,052		$	41,513
Prepaid expenses and other current assets(2)		5,714		427			6,141
Other assets(3)		3,112		650			3,762
Liabilities:
Deferred revenue		15,102		(2,923	)		12,179
Other long-term liabilities(4)		6,428		(825	)		5,603
Deferred income taxes		28,004		2,927			30,931
Stockholders’ equity:
Retained earnings		97,815		8,950			106,765

(1) Contract assets, short term are included in the accounts receivables, net of allowance for doubtful accounts in our condensed consolidated balance sheet.

(2) Capitalized contract costs, short term are included in the prepaid expenses and other current assets in our condensed consolidated balance sheet.

(3) Capitalized contract costs, long term are included in other assets in our condensed consolidated balance sheet.

(4) Deferred revenue, long term is included in other long-term liabilities in our condensed consolidated balance sheet.

The following reflects the Company’s condensed consolidated balance sheet and condensed consolidated statement of operations on an as reported basis and as if we had continued to recognize revenue under the guidance of ASC 985-605, Software Revenue Recognition, which is also referred to herein as “legacy GAAP” (in thousands):

	June 30, 2018
	As Reported			Balances without adoption of ASC 606			Increase (Decrease)
Assets:
Accounts receivable, net	$	36,491		$	28,908		$	7,583
Prepaid expenses and other current assets		7,491			7,301			190
Other assets		6,313			3,379			2,934
Liabilities:
Accrued expenses and other current liabilities		31,127			28,966			2,161
Deferred revenue		13,771			16,455			(2,684	)
Other long-term liabilities		6,925			7,393			(468	)
Deferred income taxes		26,351			25,047			1,304
Stockholders’ equity:
Retained earnings		96,477			86,083			10,394
	For the three months ended June 30, 2018
	As Reported			Balances without adoption of ASC 606			Increase (Decrease)
License revenue	$	48,093		$	44,005		$	4,088
Marketing and selling		20,081			20,807			(726	)
Provision (benefit) for income taxes		1,274			154			1,120
Net income (loss)		695			(2,999	)		3,694
Net income (loss)—basic and diluted	$	0.02		$	(0.07	)	$	0.09
	For the six months ended June 30, 2018
	As Reported			Balances without adoption of ASC 606			Increase (Decrease)
License revenue	$	93,960		$	87,573		$	6,387
Service revenue		23,410			23,212			198
Cost of revenue—license		16,894			14,733			2,161
Marketing and selling		40,170			41,350			(1,180	)
(Benefit) provision for income taxes		(1,191	)		(2,495	)		1,304
Net loss		(504	)		(4,804	)		4,300
Net loss—basic and diluted	$	(0.01	)	$	(0.12	)	$	0.11