The following table presents the cumulative effect adjustments, net of income tax effects, to beginning consolidated balance sheet accounts for the new accounting standard adopted by the Company on the first day of fiscal 2019:


	April 30, 2018			Topic 606			May 1, 2018
				(in thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	52,794		$	—		$	52,794
Investments		26,121			—			26,121
Trade accounts receivable, net					—
Billed		18,643			—			18,643
Unbilled		3,375			440			3,815
Prepaid expenses and other current assets		6,592			126			6,718

Total current assets		107,525			566			108,091
Investments—Noncurrent		8,893			—			8,893
Property and equipment, net		3,034			—			3,034
Capitalized software, net		9,728			—			9,728
Goodwill		25,888			—			25,888
Other intangibles, net		5,120			—			5,120
Other assets		2,777			1,325			4,102

Total assets	$	162,965		$	1,891		$	164,856

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	1,974		$	—		$	1,974
Accrued compensation and related costs		6,310			—			6,310
Dividends payable		3,367			—			3,367
Other current liabilities		1,246			80			1,326
Deferred revenue		33,226			(521	)		32,705

Total current liabilities		46,123			(441	)		45,682
Deferred income taxes		2,615			579			3,194
Long-term deferred revenue		147			—			147
Other long-term liabilities		1,496			—			1,496

Total liabilities		50,381			138			50,519
Shareholders’ equity:
Common stock:
Class A		3,314			—			3,314
Class B		205			—			205
Additional paid-in capital		131,258			—			131,258
Retained earnings		3,366			1,753			5,119
Class A treasury stock		(25,559	)		—			(25,559	)

Total shareholders’ equity		112,584			1,753			114,337

Total liabilities and shareholders’ equity	$	162,965		$	1,891		$	164,856

The following table summarizes the effects of adopting Topic 606 on the Company’s condensed consolidated balance sheet as of July 31, 2018:


	As reported under Topic 606			Adjustments			Balances under Prior GAAP
				(in thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	54,855		$	—		$	54,855
Investments		29,992			—			29,992
Trade accounts receivable, net
Billed		13,683			—			13,683
Unbilled		3,311			(439	)		2,872
Prepaid expenses and other current assets		6,433			(168	)		6,265

Total current assets		108,274			(607	)		107,667
Investments—Noncurrent		2,509			—			2,509
Property and equipment, net		3,600			—			3,600
Capitalized software, net		9,559			—			9,559
Goodwill		25,888			—			25,888
Other intangibles, net		4,523			—			4,523
Other assets		4,055			(1,211	)		2,844

Total assets	$	158,408		$	(1,818	)	$	156,590

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	2,166		$	—		$	2,166
Accrued compensation and related costs		2,305			—			2,305
Dividends payable		3,400			—			3,400
Other current liabilities		925			(80	)		845
Deferred revenue		29,518			1,008			30,526

Total current liabilities		38,314			928			39,242
Deferred income taxes		3,222			(503	)		2,719
Long-term deferred revenue		—			—			—
Other long-term liabilities		1,485			—			1,485

Total liabilities		43,021			425			43,446
Shareholders’ equity:
Common stock:
Class A		3,367			—			3,367
Class B		182			—			182
Additional paid-in capital		134,292			—			134,292
Retained earnings		3,105			(2,243	)		862
Class A treasury stock		(25,559	)		—			(25,559	)

Total shareholders’ equity		115,387			(2,243	)		113,144

Commitments and contingencies
Total liabilities and shareholders’ equity	$	158,408		$	(1,818	)	$	156,590

The following table summarizes the effects of adopting Topic 606 on the Company’s condensed consolidated statement of operations for the three months ended July 31, 2018:


	As reported under Topic 606			Adjustments			Balances under Prior GAAP
				(in thousands, except per share amounts)
Revenues:
License	$	1,702		$	(446	)	$	1,256
Subscription Fees		3,168			2			3,170
Professional Services and other		11,008			60			11,068
Maintenance		11,521			—			11,521

Total revenues		27,399			(384	)		27,015

Cost of revenues:
License		1,714			—			1,714
Subscription Fees		1,068			—			1,068
Professional Services and other		8,667			—			8,667
Maintenance		2,198			—			2,198

Total cost of revenues		13,647			—			13,647

Gross margin		13,752			(384	)		13,368

Research and development		3,675			—			3,675
Sales and marketing		5,180			30			5,210
General and administrative		4,193			—			4,193
Amortization of acquisition-related intangibles		97			—			97

Total operating expenses		13,145			30			13,175

Operating income		607			(414	)		193
Other income:
Interest income		504			—			504
Other, net		249			—			249

Earnings before income taxes		1,360			(414	)		946
Income tax (benefit) expense		(25	)		76			(101	)

Net earnings	$	1,385		$	(338	)	$	1,047

Earnings per common share:
Basic	$	0.05		$	(0.01	)	$	0.04

Diluted	$	0.04		$	(0.01	)	$	0.03

The Company’s net cash provided by operating activities for the three months ended July 31, 2018 did not change due to the adoption of Topic 606. The following table summarizes the effects of adopting Topic 606 on the financial statement line items of the Company’s condensed consolidated statement of cash flows for the three months ended July 31, 2018:


	As reported under Topic 606		Adjustments			Balances under Prior GAAP
			(in thousands)
Deferred income taxes	$	28	$	579		$	607
Accounts receivable, net	$	5,466	$	(440	)	$	5,026


	As reported under Topic 606			Adjustments			Balances under Prior GAAP
Prepaid expenses and other assets	$	330		$	(1,451	)	$	(1,121	)
Accounts payable and other liabilities	$	(4,223	)	$	80		$	(4,143	)
Deferred revenue	$	(3,334	)	$	(521	)	$	(3,855	)