Presentation and Summary of Significant Accounting Policies (Tables)

6 Months Ended

Oct. 31, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Summary of Effect of Adopting Topic 606 on Financial Statements

The following table presents the cumulative effect of 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 October 31, 2018:

	As reported under Topic 606			Adjustments			Balances under Prior GAAP
				(in thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	50,933		$	—		$	50,933
Investments		29,816			—			29,816
Trade accounts receivable, net					—
Billed		17,427			—			17,427
Unbilled		3,104			(389	)		2,715
Prepaid expenses and other current assets		6,568			(251	)		6,317
Total current assets		107,848			(640	)		107,208
Investments—Noncurrent		1,925			—			1,925
Property and equipment, net		3,609			—			3,609
Capitalized software, net		9,618			—			9,618
Goodwill		25,888			—			25,888
Other intangibles, net		3,926			—			3,926
Other assets		3,776			(1,191	)		2,585
Total assets	$	156,590		$	(1,831	)	$	154,759
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	1,475		$	—		$	1,475
Accrued compensation and related costs		2,829			—			2,829
Dividends payable		3,405			—			3,405
Other current liabilities		1,362			(80	)		1,282
Deferred revenue		29,395			619			30,014
Total current liabilities		38,466			539			39,005
Deferred income taxes		2,929			(584	)		2,345
Long-term deferred revenue		—			—			—
Other long-term liabilities		1,107			—			1,107
Total liabilities		42,502			(45	)		42,457
Shareholders’ equity:
Common stock:
Class A		3,372			—			3,372
Class B		182			—			182
Additional paid-in capital		135,150			—			135,150
Retained earnings		943			(1,786	)		(843	)
Class A treasury stock		(25,559	)		—			(25,559	)
Total shareholders’ equity		114,088			(1,786	)		112,302
Commitments and contingencies
Total liabilities and shareholders’ equity	$	156,590		$	(1,831	)	$	154,759

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

	As reported under Topic 606			Adjustments		Balances under Prior GAAP
				(in thousands, except per share amounts)
Revenues:
License	$	2,012		$	391	$	2,403
Subscription Fees		3,341			2		3,343
Professional Services and other		11,056			46		11,102
Maintenance		11,624			—		11,624
Total revenues		28,033			439		28,472
Cost of revenues:
License		1,760			—		1,760
Subscription Fees		1,289			—		1,289
Professional Services and other		8,103			—		8,103
Maintenance		2,214			—		2,214
Total cost of revenues		13,366			—		13,366
Gross margin		14,667			439		15,106
Research and development		3,332					3,332
Sales and marketing		5,304			63		5,368
General and administrative		4,408			—		4,408
Amortization of acquisition-related intangibles		97			—		97
Total operating expenses		13,141			63		13,204
Operating income		1,526			376		1,902
Other income:
Interest income		524			—		524
Other, net		(714	)		—		(714	)
Earnings before income taxes		1,336			376		1,712
Income tax expense		93			71		164
Net earnings	$	1,243		$	305	$	1,548
Earnings per common share:
Basic	$	0.04		$	0.01	$	0.05
Diluted	$	0.04		$	0.01	$	0.05

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

	As reported under Topic 606			Adjustments			Balances under Prior GAAP
				(in thousands, except per share amounts)
Revenues:
License	$	3,714		$	(55	)	$	3,659
Subscription Fees		6,509			4			6,513
Professional Services and other		22,064			106			22,170
Maintenance		23,145			—			23,145
Total revenues		55,432			55			55,487
Cost of revenues:
License		3,474			—			3,474
Subscription Fees		2,356			—			2,356
Professional Services and other		16,771			—			16,771
Maintenance		4,412			—			4,412
Total cost of revenues		27,013			—			27,013
Gross margin		28,419			55			28,474
Research and development		7,007						7,007
Sales and marketing		10,484			93			10,577
General and administrative		8,601			—			8,601
Amortization of acquisition-related intangibles		194			—			194
Total operating expenses		26,286			93			26,379
Operating income		2,133			(38	)		2,095
Other income:
Interest income		1,027			—			1,027
Other, net		(464	)		—			(464	)
Earnings before income taxes		2,696			(38	)		2,658
Income tax expense (benefit)		68			(5	)		63
Net earnings	$	2,628		$	(33	)	$	2,595
Earnings per common share:
Basic	$	0.09		$	—		$	0.09
Diluted	$	0.08		$	—		$	0.08

The Company’s net cash provided by operating activities for the six months ended October 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 six months ended October 31, 2018:

	As reported under Topic 606			Adjustments			Balances under Prior GAAP
				(in thousands)
Net earnings (loss)	$	2,628		$	(33	)	$	2,595
Deferred income taxes	$	(265	)	$	(5	)	$	(270	)
Changes in operating assets and liabilities:
Accounts receivable, net	$	2,162		$	(51	)	$	2,111
Prepaid expenses and other assets	$	242		$	(9)		$	233
Accounts payable and other liabilities	$	(4,333	)	$	—		$	(4,333	)
Deferred revenue	$	(3,457	)	$	98		$	(3,359	)
Net cash provided by operating activities	$	(3,023	)	$	—		$	(3,023	)