Financing Receivables

3 Months Ended

Jun. 30, 2013

Note 2 – Financing Receivables

In accordance with ASU No. 2010-20 "Disclosures about the Credit Quality of Financing Receivables and the Allowance for Credit Losses," the Company allows deferred payment terms that exceed one year for customers purchasing licenses (perpetual or time-based) for our software products and the related maintenance services ("multi-year deferred payment arrangements"). A financing receivable exists when the license transfers to the customer or the related maintenance service has been provided (i.e., revenue recognition has occurred) prior to the due date of the related receivable. Our products financing receivables primarily consist of the perpetual license portion of outstanding multi-year deferred payment arrangements.

As of June 30, 2013, our loans receivable balance consisted of a note due from ForeSee Results, Inc. The terms of the note require quarterly payments of principal and interest through March 31, 2015 at an annual interest rate of 7.0%.

The following is an aged analysis of our products and loans financing receivables based on invoice dates as of June 30, 2013 and March 31, 2013 (in thousands):

	As of June 30, 2013
					Greater than
	0-29 days		30-90 days		90 days				Total
	past		past		past				financing
	invoice date		invoice date		invoice date		Unbilled		receivables
Pass rating
Software products	$	1,202	$	991	$	304	$	41,929	$	44,426
Loans								3,327		3,327
Total		1,202		991		304		45,256		47,753

Watch rating
Software products						170				170

Total financing receivables	$	1,202	$	991	$	474	$	45,256	$	47,923

	As of March 31, 2013
					Greater than
	0-29 days		30-90 days		90 days				Total
	past		past		past				financing
	invoice date		invoice date		invoice date		Unbilled		receivables
Pass rating
Software products	$	3,311	$	679	$	1,324	$	42,659	$	47,973
Loans								3,771		3,771
Total		3,311		679		1,324		46,430		51,744

Watch rating
Software products						179				179

Total financing receivables	$	3,311	$	679	$	1,503	$	46,430	$	51,923

As of June 30, 2013 and March 31, 2013, the allowance for credit losses on our financing receivables was $170,000 and $179,000.