Supplemental Guarantor Condensed Consolidating Financials (Tables)

3 Months Ended

Mar. 31, 2014

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Supplemental Condensed Consolidating Balance Sheet (unaudited)

March 31, 2014



(in thousands)	Parent			Issuer / Guarantor Subsidiaries			Non-guarantor Subsidiaries		Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	1,528		$	3,751		$	20,321	$	—		$	25,600
Accounts receivable, net	—			72,065			58,589		(71,349		)	59,305
Deferred tax assets	—			7,747			1,461		—			9,208
Other current assets	—			16,421			6,656		—			23,077
Total current assets	1,528			99,984			87,027		(71,349		)	117,190
Property, plant, and equipment, net	—			16,516			2,224		—			18,740
Intangible assets, net	—			59,104			10,463		—			69,567
Goodwill	—			715,222			33,412		—			748,634
Investment in subsidiaries	(52,298		)	50,220			—		2,078			—
Other assets	268			11,492			9,020		—			20,780
Total assets	$	(50,502	)	$	952,538		$	142,146	$	(69,271	)	$	974,911
Liabilities and shareholders’ equity (deficit)
Current liabilities:
Accounts payable	$	2,665		$	42,467		$	35,187	$	(71,349	)	$	8,970
Current portion of long-term debt	—			23,292			—		—			23,292
Accrued liabilities	—			49,210			12,611		—			61,821
Deferred revenues	—			63,352			30,793		—			94,145
Total current liabilities	2,665			178,321			78,591		(71,349		)	188,228
Deferred tax liabilities	—			30,031			450		—			30,481
Long-term deferred revenue	—			3,836			1,724		—			5,560
Long-term debt	—			768,657			—		—			768,657
Other long-term liabilities	—			23,991			11,161		—			35,152
Total liabilities	2,665			1,004,836			91,926		(71,349		)	1,028,078
Total Aspect Software Group Holdings Ltd. shareholders’ deficit	(53,167		)	(52,298		)	45,242		2,078			(58,145		)
Noncontrolling interest	—			—			4,978		—			4,978
Total shareholders' (deficit) equity	(53,167		)	(52,298		)	50,220		2,078			(53,167		)
Total liabilities and shareholders’ (deficit) equity	$	(50,502	)	$	952,538		$	142,146	$	(69,271	)	$	974,911

Supplemental Condensed Consolidating Balance Sheet (unaudited)

December 31, 2013



(in thousands)	Parent			Issuer / Guarantor Subsidiaries			Non-guarantor Subsidiaries		Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	1,528		$	3,764		$	22,930	$	—		$	28,222
Accounts receivable, net	—			78,583			50,657		(68,855		)	60,385
Deferred tax assets	—			7,934			1,263		—			9,197
Other current assets	—			14,958			6,062		—			21,020
Total current assets	1,528			105,239			80,912		(68,855		)	118,824
Property, plant, and equipment, net	—			16,396			2,071		—			18,467
Intangible assets, net	—			61,922			10,910		—			72,832
Goodwill	—			715,222			33,451		—			748,673
Investment in subsidiaries	(43,936		)	45,771			—		(1,835		)	—
Other assets	260			13,094			8,987		—			22,341
Total assets	$	(42,148	)	$	957,644		$	136,331	$	(70,690	)	$	981,137
Liabilities and shareholders’ equity (deficit)
Current liabilities:
Accounts payable	$	2,621		$	35,963		$	39,937	$	(68,855	)	$	9,666
Current portion of long-term debt	—			37,851			—		—			37,851
Accrued liabilities	—			49,354			12,613		—			61,967
Deferred revenues	—			52,330			24,340		—			76,670
Total current liabilities	2,621			175,498			76,890		(68,855		)	186,154
Deferred tax liabilities	—			28,888			451		—			29,339
Long-term deferred revenue	—			3,047			1,408		—			4,455
Long-term debt	—			770,079			—		—			770,079
Other long-term liabilities	—			24,068			12,535		—			36,603
Total liabilities	2,621			1,001,580			91,284		(68,855		)	1,026,630
Total shareholders’ (deficit) equity	(44,769		)	(43,936		)	39,777		(1,835		)	(50,763		)
Noncontrolling interest	—			—			5,270		—			5,270
Total shareholder's (deficit) equity	(44,769		)	(43,936		)	45,047		(1,835		)	(45,493		)
Total liabilities and shareholders’ (deficit) equity	$	(42,148	)	$	957,644		$	136,331	$	(70,690	)	$	981,137

Supplemental Condensed Consolidating Statement of Operations (unaudited)

For the Three Months Ended March 31, 2014



(in thousands)	Parent			Issuer / Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Consolidated
Net revenues	$	—		$	72,943		$	39,257		$	(4,514	)	$	107,686
Cost of revenues	—			34,685			17,034			(4,514		)	47,205
Gross profit	—			38,258			22,223			—			60,481
Operating expenses:
Research and development	—			11,274			3,013			—			14,287
Selling, general and administrative	44			19,269			11,759			—			31,072
Amortization expense for acquired intangible assets	—			1,792			290			—			2,082
Total operating expenses	44			32,335			15,062			—			47,441
(Loss) income from operations	(44		)	5,923			7,161			—			13,040
Interest and other income (expense), net	8			(16,040		)	(2,825		)	—			(18,857		)
(Loss) income before income taxes	(36		)	(10,117		)	4,336			—			(5,817		)
Provision for income taxes	—			894			719			—			1,613
Equity in (losses) earnings of subsidiaries	(7,101		)	3,910			—			3,191			—
Net (loss) income	(7,137		)	(7,101		)	3,617			3,191			(7,430		)
Less: Net loss attributable to noncontrolling interest	—			—			(292		)	—			(292		)
Net (loss) income attributable to Aspect Software Group Holdings Ltd.	$	(7,137	)	$	(7,101	)	$	3,909		$	3,191		$	(7,138	)

For the Three Months Ended March 31, 2013



(in thousands)	Parent			Issuer / Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Consolidated
Net revenues	$	—		$	70,935		$	40,116		$	(6,430	)	$	104,621
Cost of revenues	—			30,655			16,990			(6,430		)	41,215
Gross profit	—			40,280			23,126			—			63,406
Operating expenses:
Research and development	—			10,206			2,014			—			12,220
Selling, general and administrative	50			19,932			9,534			—			29,516
Amortization expense for acquired intangible assets	—			6,913			270			—			7,183
Restructuring credits	—			(44		)	(2		)	—			(46		)
Total operating expenses	50			37,007			11,816			—			48,873
(Loss) income from operations	(50		)	3,273			11,310			—			14,533
Interest and other income (expense), net	8			(4,415		)	(12,103		)	—			(16,510		)
(Loss) income before income taxes	(42		)	(1,142		)	(793		)	—			(1,977		)
Benefit from income taxes	—			(40		)	(976		)	—			(1,016		)
Equity in (losses) earnings of subsidiaries	(919		)	183			—			736			—
Net (loss) income	$	(961	)	$	(919	)	$	183		$	736		$	(961	)

Supplemental Condensed Consolidating Statement of Comprehensive Income (Loss) (unaudited)

For the Three Months Ended March 31, 2014



(in thousands)	Parent			Issuer / Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations		Consolidated
Net income (loss)	$	(7,137	)	$	(7,101	)	$	3,617		$	3,191	$	(7,430	)
Change in cumulative translation adjustment	—			(335		)	7			16		(312		)
Comprehensive (loss) income	(7,137		)	(7,436		)	3,624			3,207		(7,742		)
Comprehensive loss attributable to noncontrolling interest	—			—			(292		)	—		(292		)
Comprehensive (loss) income attributable to Aspect Software Group Holdings Ltd.	$	(7,137	)	$	(7,436	)	$	3,916		$	3,207	$	(7,450	)

For the Three Months Ended March 31, 2013



(in thousands)	Parent			Issuer / Guarantor Subsidiaries			Non-guarantor Subsidiaries		Eliminations			Consolidated
Net (loss) income	$	(961	)	$	(919	)	$	183	$	736		$	(961	)
Change in cumulative translation adjustment	—			(451		)	122		(39		)	(368		)
Comprehensive (loss) income	$	(961	)	$	(1,370	)	$	305	$	697		$	(1,329	)

Supplemental Condensed Consolidating Statement of Cash Flows (unaudited)

For the Three Months Ended March 31, 2014



(in thousands)	Parent			Issuer / Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations		Consolidated
Operating activities:
Net cash provided by operating activities	$	(4	)	$	18,096		$	(1,913	)	$	—	$	16,179
Investing activities:
Purchases of property and equipment	$	—		$	(2,009	)	$	(421	)	$	—	$	(2,430	)
Net cash used in investing activities	—			(2,009		)	(421		)	—		(2,430		)
Financing activities:
Repayment of borrowings	—			(16,100		)	—			—		(16,100		)
Proceeds received from issuance of ordinary shares	4											4
Net cash provided by financing activities	4			(16,100		)	—			—		(16,096		)
Effect of exchange rate changes on cash	—			—			(275		)	—		(275		)
Net change in cash and cash equivalents	—			(13		)	(2,609		)	—		(2,622		)
Cash and cash equivalents:
Beginning of period	1,528			3,764			22,930			—		28,222
End of period	$	1,528		$	3,751		$	20,321		$	—	$	25,600

Supplemental Condensed Consolidating Statement of Cash Flows (unaudited)

For the Three Months Ended March 31, 2013



(in thousands)	Parent		Issuer / Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations		Consolidated
Operating activities:
Net cash provided by operating activities	$	1	$	6,401		$	14,842		$	—	$	21,244
Investing activities:
Purchases of property and equipment	—		(1,045		)	(315		)	—		(1,360		)
Purchase of investment	$	—	$	—		$	(1,886	)	$	—	$	(1,886	)
Net cash used in investing activities	—		(1,045		)	(2,201		)	—		(3,246		)
Financing activities:
Repayment of borrowings	—		—			—			—		—
Sales of subsidiaries	—		—			—			—		—
Net cash used in financing activities	—		—			—			—		—
Effect of exchange rate changes on cash	—		—			(1,590		)	—		(1,590		)
Net change in cash and cash equivalents	1		5,356			11,051			—		16,408
Cash and cash equivalents:
Beginning of period	1,527		11,093			69,745			—		82,365
End of period	$	1,528	$	16,449		$	80,796		$	—	$	98,773