ý | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
DELAWARE (State or other jurisdiction of incorporation or organization) | 04-2746201 (I.R.S. Employer Identification No.) |
Large accelerated filer | ý | Accelerated filer | ¨ | ||
Non-accelerated filer | ¨ | Smaller reporting company | ¨ |
PART I | ||
Item 1. | ||
Condensed Consolidated Statements of Comprehensive Income (Loss) for the three and nine months ended August 31, 2016 and 2015 | ||
Condensed Consolidated Statements of Cash Flows for the nine months ended August 31, 2016 and 2015 | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
PART II | ||
Item 1. | ||
Item 1A. | ||
Item 2. | ||
Item 5. | Other Matters | |
Item 6. | ||
Exhibit Index |
(In thousands, except share data) | August 31, 2016 | November 30, 2015 | |||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 188,084 | $ | 212,379 | |||
Short-term investments | 44,600 | 28,900 | |||||
Total cash, cash equivalents and short-term investments | 232,684 | 241,279 | |||||
Accounts receivable (less allowances of $1,565 and $2,193, respectively) | 55,758 | 66,459 | |||||
Other current assets | 20,521 | 15,671 | |||||
Total current assets | 308,963 | 323,409 | |||||
Property and equipment, net | 50,778 | 54,226 | |||||
Intangible assets, net | 87,684 | 114,113 | |||||
Goodwill | 370,097 | 369,985 | |||||
Deferred tax assets | 11,626 | 10,971 | |||||
Other assets | 3,631 | 4,419 | |||||
Total assets | $ | 832,779 | $ | 877,123 | |||
Liabilities and shareholders’ equity | |||||||
Current liabilities: | |||||||
Current portion of long-term debt | $ | 13,125 | $ | 9,375 | |||
Accounts payable | 9,647 | 11,188 | |||||
Accrued compensation and related taxes | 20,967 | 29,720 | |||||
Income taxes payable | 5,098 | 2,941 | |||||
Other accrued liabilities | 17,796 | 21,465 | |||||
Short-term deferred revenue | 129,354 | 125,227 | |||||
Total current liabilities | 195,987 | 199,916 | |||||
Long-term debt | 123,750 | 135,000 | |||||
Long-term deferred revenue | 8,529 | 8,844 | |||||
Deferred tax liabilities | 6,149 | 7,112 | |||||
Other noncurrent liabilities | 3,785 | 3,787 | |||||
Commitments and contingencies | |||||||
Shareholders’ equity: | |||||||
Preferred stock, $0.01 par value; authorized, 1,000,000 shares; issued, none | — | — | |||||
Common stock, $0.01 par value, and additional paid-in capital; authorized, 200,000,000 shares; issued and outstanding, 48,575,307 shares in 2016 and 50,579,539 shares in 2015 | 237,136 | 227,930 | |||||
Retained earnings | 281,303 | 319,162 | |||||
Accumulated other comprehensive loss | (23,860 | ) | (24,628 | ) | |||
Total shareholders’ equity | 494,579 | 522,464 | |||||
Total liabilities and shareholders’ equity | $ | 832,779 | $ | 877,123 |
Three Months Ended | Nine Months Ended | ||||||||||||||
(In thousands, except per share data) | August 31, 2016 | August 31, 2015 | August 31, 2016 | August 31, 2015 | |||||||||||
Revenue: | |||||||||||||||
Software licenses | $ | 33,624 | $ | 31,840 | $ | 86,366 | $ | 85,794 | |||||||
Maintenance and services | 68,394 | 62,797 | 201,251 | 179,042 | |||||||||||
Total revenue | 102,018 | 94,637 | 287,617 | 264,836 | |||||||||||
Costs of revenue: | |||||||||||||||
Cost of software licenses | 1,424 | 1,441 | 4,139 | 4,526 | |||||||||||
Cost of maintenance and services | 11,825 | 9,612 | 33,217 | 31,174 | |||||||||||
Amortization of acquired intangibles | 3,940 | 4,079 | 11,818 | 12,805 | |||||||||||
Total costs of revenue | 17,189 | 15,132 | 49,174 | 48,505 | |||||||||||
Gross profit | 84,829 | 79,505 | 238,443 | 216,331 | |||||||||||
Operating expenses: | |||||||||||||||
Sales and marketing | 29,852 | 30,004 | 88,648 | 92,607 | |||||||||||
Product development | 21,706 | 20,422 | 65,800 | 65,533 | |||||||||||
General and administrative | 11,411 | 14,076 | 36,055 | 42,065 | |||||||||||
Amortization of acquired intangibles | 3,186 | 3,186 | 9,556 | 9,559 | |||||||||||
Impairment of intangible assets | 5,051 | — | 5,051 | — | |||||||||||
Restructuring expenses | (36 | ) | 2,561 | 229 | 8,715 | ||||||||||
Acquisition-related expenses | 53 | 662 | 449 | 3,180 | |||||||||||
Total operating expenses | 71,223 | 70,911 | 205,788 | 221,659 | |||||||||||
Income (loss) from operations | 13,606 | 8,594 | 32,655 | (5,328 | ) | ||||||||||
Other (expense) income: | |||||||||||||||
Interest expense | (1,174 | ) | (987 | ) | (3,244 | ) | (2,808 | ) | |||||||
Interest income and other, net | 260 | 450 | 686 | 1,153 | |||||||||||
Foreign currency (loss) gain, net | (374 | ) | (628 | ) | (1,916 | ) | 397 | ||||||||
Total other (expense) income, net | (1,288 | ) | (1,165 | ) | (4,474 | ) | (1,258 | ) | |||||||
Income (loss) before income taxes | 12,318 | 7,429 | 28,181 | (6,586 | ) | ||||||||||
Provision (benefit) for income taxes | 4,742 | 11,555 | 10,114 | (7,256 | ) | ||||||||||
Net income (loss) | $ | 7,576 | $ | (4,126 | ) | $ | 18,067 | $ | 670 | ||||||
Earnings per share: | |||||||||||||||
Basic | $ | 0.16 | $ | (0.08 | ) | $ | 0.36 | $ | 0.01 | ||||||
Diluted | $ | 0.15 | $ | (0.08 | ) | $ | 0.36 | $ | 0.01 | ||||||
Weighted average shares outstanding: | |||||||||||||||
Basic | 48,611 | 50,120 | 49,765 | 50,377 | |||||||||||
Diluted | 49,135 | 50,120 | 50,310 | 51,117 |
Three Months Ended | Nine Months Ended | ||||||||||||||
(In thousands) | August 31, 2016 | August 31, 2015 | August 31, 2016 | August 31, 2015 | |||||||||||
Net income (loss) | $ | 7,576 | $ | (4,126 | ) | $ | 18,067 | $ | 670 | ||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||
Foreign currency translation adjustments | (1,332 | ) | (257 | ) | 485 | (8,411 | ) | ||||||||
Reclassification adjustment for losses included in net income, net of tax of $0 for the third quarter and first nine months of 2016 | — | — | 256 | — | |||||||||||
Unrealized gains (losses) on investments, net of tax of $16 for the third quarter and first nine months of 2016 and $0 for the third quarter and first nine months of 2015 | 30 | (17 | ) | 27 | (52 | ) | |||||||||
Total other comprehensive income (loss), net of tax | (1,302 | ) | (274 | ) | 768 | (8,463 | ) | ||||||||
Comprehensive income (loss) | $ | 6,274 | $ | (4,400 | ) | $ | 18,835 | $ | (7,793 | ) |
Nine Months Ended | |||||||
(In thousands) | August 31, 2016 | August 31, 2015 | |||||
Cash flows from operating activities: | |||||||
Net income | $ | 18,067 | $ | 670 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization of property and equipment | 6,480 | 7,209 | |||||
Amortization of intangibles and other | 23,316 | 24,420 | |||||
Stock-based compensation | 19,009 | 18,812 | |||||
Loss on disposal of property | 364 | — | |||||
Asset impairment | 5,051 | 3,999 | |||||
Deferred income taxes | (996 | ) | (23,067 | ) | |||
Excess tax benefit from stock plans | (305 | ) | (1,107 | ) | |||
Allowances for accounts receivable | (334 | ) | 356 | ||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | 11,209 | 11,160 | |||||
Other assets | (3,866 | ) | (508 | ) | |||
Accounts payable and accrued liabilities | (14,920 | ) | (3,378 | ) | |||
Income taxes payable | 2,025 | 7,367 | |||||
Deferred revenue | 3,810 | 31,255 | |||||
Net cash flows from operating activities | 68,910 | 77,188 | |||||
Cash flows used in investing activities: | |||||||
Purchases of investments | (33,861 | ) | (20,068 | ) | |||
Sales and maturities of investments | 17,275 | 10,436 | |||||
Purchases of property and equipment | (3,747 | ) | (6,079 | ) | |||
Capitalized software development costs | — | (1,661 | ) | ||||
Payments for acquisitions, net of cash acquired | — | (246,275 | ) | ||||
Proceeds from divestitures, net | — | 4,500 | |||||
Net cash flows used in investing activities | (20,333 | ) | (259,147 | ) | |||
Cash flows (used in) from financing activities: | |||||||
Proceeds from stock-based compensation plans | 8,166 | 10,459 | |||||
Purchases of stock related to withholding taxes from the issuance of restricted stock units | (2,751 | ) | (2,850 | ) | |||
Repurchases of common stock | (71,507 | ) | (32,868 | ) | |||
Excess tax benefit from stock plans | 305 | 1,107 | |||||
Payment of contingent consideration | — | (209 | ) | ||||
Proceeds from the issuance of debt | — | 150,000 | |||||
Payment of long-term debt | (7,500 | ) | (5,625 | ) | |||
Payment of issuance costs for long-term debt | — | (1,787 | ) | ||||
Net cash flows (used in) from financing activities | (73,287 | ) | 118,227 | ||||
Effect of exchange rate changes on cash | 415 | (10,237 | ) | ||||
Net decrease in cash and cash equivalents | (24,295 | ) | (73,969 | ) | |||
Cash and cash equivalents, beginning of period | 212,379 | 263,082 | |||||
Cash and cash equivalents, end of period | $ | 188,084 | $ | 189,113 |
Nine Months Ended | |||||||
August 31, 2016 | August 31, 2015 | ||||||
Supplemental disclosure: | |||||||
Cash paid for income taxes, net of refunds of $781 in 2016 and $1,887 in 2015 | $ | 11,918 | $ | 7,329 | |||
Cash paid for interest | $ | 2,348 | $ | 2,150 | |||
Non-cash financing activities: | |||||||
Total fair value of restricted stock awards, restricted stock units and deferred stock units on date vested | $ | 12,137 | $ | 9,963 |
Amortized Cost Basis | Unrealized Gains | Unrealized Losses | Fair Value | ||||||||||||
Cash | $ | 179,548 | $ | — | $ | 179,548 | |||||||||
Money market funds | 8,536 | — | 8,536 | ||||||||||||
State and municipal bond obligations | 34,489 | 43 | 34,532 | ||||||||||||
U.S. treasury bonds | 6,534 | — | 6,534 | ||||||||||||
U.S. government agency bonds | 525 | 1 | (4 | ) | 522 | ||||||||||
Corporate bonds | 3,006 | 6 | 3,012 | ||||||||||||
Total | $ | 232,638 | $ | 50 | $ | (4 | ) | $ | 232,684 |
Amortized Cost Basis | Unrealized Gains | Unrealized Losses | Fair Value | ||||||||||||
Cash | $ | 186,241 | $ | — | $ | — | $ | 186,241 | |||||||
Money market funds | 26,138 | — | — | 26,138 | |||||||||||
State and municipal bond obligations | 20,387 | 30 | — | 20,417 | |||||||||||
U.S. treasury bonds | 3,109 | — | (15 | ) | 3,094 | ||||||||||
U.S. government agency bonds | 1,645 | — | (4 | ) | 1,641 | ||||||||||
Corporate bonds | 3,756 | — | (8 | ) | 3,748 | ||||||||||
Total | $ | 241,276 | $ | 30 | $ | (27 | ) | $ | 241,279 |
August 31, 2016 | November 30, 2015 | ||||||||||||||
Cash and Equivalents | Short-Term Investments | Cash and Equivalents | Short-Term Investments | ||||||||||||
Cash | $ | 179,548 | $ | — | $ | 186,241 | $ | — | |||||||
Money market funds | 8,536 | — | 26,138 | — | |||||||||||
State and municipal bond obligations | — | 34,532 | — | 20,417 | |||||||||||
U.S. treasury bonds | — | 6,534 | — | 3,094 | |||||||||||
U.S. government agency bonds | — | 522 | — | 1,641 | |||||||||||
Corporate bonds | — | 3,012 | — | 3,748 | |||||||||||
Total | $ | 188,084 | $ | 44,600 | $ | 212,379 | $ | 28,900 |
August 31, 2016 | November 30, 2015 | ||||||
Due in one year or less | $ | 23,474 | $ | 15,945 | |||
Due after one year (1) | 21,126 | 12,955 | |||||
Total | $ | 44,600 | $ | 28,900 |
(1) | Includes state and municipal bond obligations and corporate bonds, which are securities representing investments available for current operations and are classified as current in the consolidated balance sheets. |
August 31, 2016 | November 30, 2015 | ||||||||||||||
Notional Value | Fair Value | Notional Value | Fair Value | ||||||||||||
Forward contracts to sell U.S. dollars | $ | 83,992 | $ | (5,170 | ) | $ | 76,748 | $ | (4,026 | ) | |||||
Forward contracts to purchase U.S. dollars | 2,209 | 4 | 2,077 | 5 | |||||||||||
Total | $ | 86,201 | $ | (5,166 | ) | $ | 78,825 | $ | (4,021 | ) |
Fair Value Measurements Using | |||||||||||||||
Total Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||
Assets | |||||||||||||||
Money market funds | $ | 8,536 | $ | 8,536 | $ | — | $ | — | |||||||
State and municipal bond obligations | 34,532 | — | 34,532 | — | |||||||||||
U.S. treasury bonds | 6,534 | — | 6,534 | — | |||||||||||
U.S. government agency bonds | 522 | — | 522 | — | |||||||||||
Corporate bonds | 3,012 | — | 3,012 | — | |||||||||||
Liabilities | |||||||||||||||
Foreign exchange derivatives | $ | (5,166 | ) | $ | — | $ | (5,166 | ) | $ | — |
Fair Value Measurements Using | |||||||||||||||
Total Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||
Assets | |||||||||||||||
Money market funds | $ | 26,138 | $ | 26,138 | $ | — | $ | — | |||||||
State and municipal bond obligations | 20,417 | — | 20,417 | — | |||||||||||
U.S. treasury bonds | 3,094 | — | 3,094 | — | |||||||||||
U.S. government agency bonds | 1,641 | — | 1,641 | — | |||||||||||
Corporate bonds | 3,748 | — | 3,748 | — | |||||||||||
Liabilities | |||||||||||||||
Foreign exchange derivatives | $ | (4,021 | ) | $ | — | $ | (4,021 | ) | $ | — |
Three Months Ended | Nine Months Ended | ||||||||||||||
August 31, 2016 | August 31, 2015 | August 31, 2016 | August 31, 2015 | ||||||||||||
Balance, beginning of period | $ | — | $ | 295 | $ | — | $ | 1,717 | |||||||
Changes in fair value of contingent consideration obligation | — | (295 | ) | — | (1,508 | ) | |||||||||
Transfer to Level 2 fair value measurement | — | — | — | (209 | ) | ||||||||||
Balance, end of period | $ | — | $ | — | $ | — | $ | — |
Total Fair Value | Total Losses | ||||||
Intangible assets | $ | — | $ | 5,051 |
August 31, 2016 | November 30, 2015 | ||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Book Value | Gross Carrying Amount | Accumulated Amortization | Net Book Value | ||||||||||||||||||
Purchased technology | $ | 109,880 | $ | (64,438 | ) | $ | 45,442 | $ | 117,151 | $ | (54,963 | ) | $ | 62,188 | |||||||||
Customer-related | 67,602 | (33,257 | ) | 34,345 | 67,602 | (25,493 | ) | 42,109 | |||||||||||||||
Trademarks and trade names | 15,140 | (7,243 | ) | 7,897 | 15,330 | (5,514 | ) | 9,816 | |||||||||||||||
Total | $ | 192,622 | $ | (104,938 | ) | $ | 87,684 | $ | 200,083 | $ | (85,970 | ) | $ | 114,113 |
Remainder of 2016 | $ | 6,852 | |
2017 | 27,426 | ||
2018 | 26,613 | ||
2019 | 25,489 | ||
2020 | 714 | ||
Thereafter | 590 | ||
Total | $ | 87,684 |
Balance, November 30, 2015 | $ | 369,985 | |
Translation adjustments | 112 | ||
Balance, August 31, 2016 | $ | 370,097 |
November 30, 2015 | Translation Adjustments | August 31, 2016 | |||||||||
OpenEdge | $ | 211,980 | $ | 112 | $ | 212,092 | |||||
Data Connectivity and Integration | 19,040 | — | 19,040 | ||||||||
Application Development and Deployment | 138,965 | — | 138,965 | ||||||||
Total goodwill | $ | 369,985 | $ | 112 | $ | 370,097 |
Remainder of 2016 | $ | 1,875 | |
2017 | 15,000 | ||
2018 | 15,000 | ||
2019 | 105,000 | ||
Total | $ | 136,875 |
Three Months Ended | Nine Months Ended | ||||||||||||||
August 31, 2016 | August 31, 2015 | August 31, 2016 | August 31, 2015 | ||||||||||||
Cost of maintenance and services | $ | 223 | $ | 144 | $ | 599 | $ | 462 | |||||||
Sales and marketing | 751 | 1,604 | 2,792 | 4,328 | |||||||||||
Product development | 2,524 | 912 | 7,600 | 3,476 | |||||||||||
General and administrative | 2,281 | 3,878 | 8,018 | 10,546 | |||||||||||
Total stock-based compensation | $ | 5,779 | $ | 6,538 | $ | 19,009 | $ | 18,812 |
Foreign Currency Translation Adjustment | Unrealized Gains (Losses) on Investments | Accumulated Other Comprehensive Loss | |||||||||
Balance, December 1, 2015 | $ | (24,582 | ) | $ | (46 | ) | $ | (24,628 | ) | ||
Other comprehensive loss before reclassifications, net of tax | 485 | 27 | 512 | ||||||||
Amounts reclassified from accumulated other comprehensive loss to realized losses included in earnings | 256 | — | 256 | ||||||||
Balance, August 31, 2016 | $ | (23,841 | ) | $ | (19 | ) | $ | (23,860 | ) |
Excess Facilities and Other Costs | Employee Severance and Related Benefits | Total | |||||||||
Balance, December 1, 2015 | $ | 412 | $ | 2,949 | $ | 3,361 | |||||
Costs incurred | 338 | (109 | ) | 229 | |||||||
Cash disbursements | (514 | ) | (2,487 | ) | (3,001 | ) | |||||
Translation adjustments and other | 4 | 20 | 24 | ||||||||
Balance, August 31, 2016 | $ | 240 | $ | 373 | $ | 613 |
Excess Facilities and Other Costs | Employee Severance and Related Benefits | Total | |||||||||
Balance, December 1, 2015 | $ | 209 | $ | 309 | $ | 518 | |||||
Costs incurred | 323 | (43 | ) | 280 | |||||||
Cash disbursements | (358 | ) | (267 | ) | (625 | ) | |||||
Translation adjustments and other | 4 | 3 | 7 | ||||||||
Balance, August 31, 2016 | $ | 178 | $ | 2 | $ | 180 |
Excess Facilities and Other Costs | Employee Severance and Related Benefits | Total | |||||||||
Balance, December 1, 2015 | $ | — | $ | 2,617 | $ | 2,617 | |||||
Costs incurred | — | (42 | ) | (42 | ) | ||||||
Cash disbursements | — | (2,220 | ) | (2,220 | ) | ||||||
Translation adjustments and other | — | 16 | 16 | ||||||||
Balance, August 31, 2016 | $ | — | $ | 371 | $ | 371 |
Three Months Ended | Nine Months Ended | ||||||||||||||
August 31, 2016 | August 31, 2015 | August 31, 2016 | August 31, 2015 | ||||||||||||
Net income (loss) | $ | 7,576 | $ | (4,126 | ) | $ | 18,067 | $ | 670 | ||||||
Weighted average shares outstanding | 48,611 | 50,120 | 49,765 | 50,377 | |||||||||||
Dilutive impact from common stock equivalents | 524 | — | 545 | 740 | |||||||||||
Diluted weighted average shares outstanding | 49,135 | 50,120 | 50,310 | 51,117 | |||||||||||
Basic earnings per share | $ | 0.16 | $ | (0.08 | ) | $ | 0.36 | $ | 0.01 | ||||||
Diluted earnings per share | $ | 0.15 | $ | (0.08 | ) | $ | 0.36 | $ | 0.01 |
Three Months Ended | Nine Months Ended | ||||||||||||||
(In thousands) | August 31, 2016 | August 31, 2015 | August 31, 2016 | August 31, 2015 | |||||||||||
Segment revenue: | |||||||||||||||
OpenEdge | $ | 67,534 | $ | 73,398 | $ | 198,595 | $ | 214,775 | |||||||
Data Connectivity and Integration | 14,251 | 8,281 | 30,852 | 22,669 | |||||||||||
Application Development and Deployment | 20,233 | 12,958 | 58,170 | 27,392 | |||||||||||
Total revenue | 102,018 | 94,637 | 287,617 | 264,836 | |||||||||||
Segment costs of revenue and operating expenses: | |||||||||||||||
OpenEdge | 18,180 | 18,550 | 53,539 | 56,529 | |||||||||||
Data Connectivity and Integration | 2,828 | 3,180 | 8,863 | 9,563 | |||||||||||
Application Development and Deployment | 11,021 | 9,933 | 29,555 | 30,169 | |||||||||||
Total costs of revenue and operating expenses | 32,029 | 31,663 | 91,957 | 96,261 | |||||||||||
Segment contribution: | |||||||||||||||
OpenEdge | 49,354 | 54,848 | 145,056 | 158,246 | |||||||||||
Data Connectivity and Integration | 11,423 | 5,101 | 21,989 | 13,106 | |||||||||||
Application Development and Deployment | 9,212 | 3,025 | 28,615 | (2,777 | ) | ||||||||||
Total contribution | 69,989 | 62,974 | 195,660 | 168,575 | |||||||||||
Other unallocated expenses (1) | 56,383 | 54,380 | 163,005 | 173,903 | |||||||||||
Income (loss) from operations | 13,606 | 8,594 | 32,655 | (5,328 | ) | ||||||||||
Other (expense) income, net | (1,288 | ) | (1,165 | ) | (4,474 | ) | (1,258 | ) | |||||||
Income (loss) before income taxes | $ | 12,318 | $ | 7,429 | $ | 28,181 | $ | (6,586 | ) | ||||||
(1) The following expenses are not allocated to our segments as we manage and report our business in these functional areas on a consolidated basis only: product development, corporate marketing, administration, amortization and impairment of acquired intangibles, stock-based compensation, restructuring, and acquisition related expenses. |
Three Months Ended | Nine Months Ended | ||||||||||||||
(In thousands) | August 31, 2016 | August 31, 2015 | August 31, 2016 | August 31, 2015 | |||||||||||
Software licenses | $ | 33,624 | $ | 31,840 | $ | 86,366 | $ | 85,794 | |||||||
Maintenance | 60,368 | 55,365 | 178,189 | 157,259 | |||||||||||
Professional services | 8,026 | 7,432 | 23,062 | 21,783 | |||||||||||
Total | $ | 102,018 | $ | 94,637 | $ | 287,617 | $ | 264,836 |
Three Months Ended | Nine Months Ended | ||||||||||||||
(In thousands) | August 31, 2016 | August 31, 2015 | August 31, 2016 | August 31, 2015 | |||||||||||
North America | $ | 58,275 | $ | 49,810 | $ | 160,732 | $ | 139,454 | |||||||
EMEA | 32,719 | 30,656 | 95,517 | 89,667 | |||||||||||
Latin America | 4,667 | 4,621 | 12,749 | 13,977 | |||||||||||
Asia Pacific | 6,357 | 9,550 | 18,619 | 21,738 | |||||||||||
Total | $ | 102,018 | $ | 94,637 | $ | 287,617 | $ | 264,836 |
Three Months Ended | Percentage Change | ||||||||||||
(In thousands) | August 31, 2016 | August 31, 2015 | As Reported | Constant Currency | |||||||||
Revenue | $ | 102,018 | $ | 94,637 | 8 | % | 9 | % |
Nine Months Ended | Percentage Change | ||||||||||||
(In thousands) | August 31, 2016 | August 31, 2015 | As Reported | Constant Currency | |||||||||
Revenue | $ | 287,617 | $ | 264,836 | 9 | % | 11 | % |
Three Months Ended | Percentage Change | ||||||||||||
(In thousands) | August 31, 2016 | August 31, 2015 | As Reported | Constant Currency | |||||||||
License | $ | 33,624 | $ | 31,840 | 6 | % | 6 | % | |||||
As a percentage of total revenue | 33 | % | 34 | % |
Nine Months Ended | Percentage Change | ||||||||||||
(In thousands) | August 31, 2016 | August 31, 2015 | As Reported | Constant Currency | |||||||||
License | $ | 86,366 | $ | 85,794 | 1 | % | 2 | % | |||||
As a percentage of total revenue | 30 | % | 32 | % |
Three Months Ended | Percentage Change | ||||||||||||
(In thousands) | August 31, 2016 | August 31, 2015 | As Reported | Constant Currency | |||||||||
Maintenance | $ | 60,368 | $ | 55,365 | 9 | % | 11 | % | |||||
As a percentage of total revenue | 59 | % | 59 | % | |||||||||
Services | 8,026 | 7,432 | 8 | % | 8 | % | |||||||
As a percentage of total revenue | 8 | % | 8 | % | |||||||||
Total maintenance and services revenue | $ | 68,394 | $ | 62,797 | 9 | % | 10 | % | |||||
As a percentage of total revenue | 67 | % | 66 | % |
Nine Months Ended | Percentage Change | ||||||||||||
(In thousands) | August 31, 2016 | August 31, 2015 | As Reported | Constant Currency | |||||||||
Maintenance | $ | 178,189 | $ | 157,259 | 13 | % | 16 | % | |||||
As a percentage of total revenue | 62 | % | 59 | % | |||||||||
Services | 23,062 | 21,783 | 6 | % | 6 | % | |||||||
As a percentage of total revenue | 8 | % | 8 | % | |||||||||
Total maintenance and services revenue | $ | 201,251 | $ | 179,042 | 12 | % | 14 | % | |||||
As a percentage of total revenue | 70 | % | 68 | % |
Three Months Ended | Percentage Change | ||||||||||||
(In thousands) | August 31, 2016 | August 31, 2015 | As Reported | Constant Currency | |||||||||
North America | $ | 58,275 | $ | 49,810 | 17 | % | 17 | % | |||||
As a percentage of total revenue | 57 | % | 53 | % | |||||||||
EMEA | $ | 32,719 | $ | 30,656 | 7 | % | 10 | % | |||||
As a percentage of total revenue | 32 | % | 32 | % | |||||||||
Latin America | $ | 4,667 | $ | 4,621 | 1 | % | 2 | % | |||||
As a percentage of total revenue | 5 | % | 5 | % | |||||||||
Asia Pacific | $ | 6,357 | $ | 9,550 | (33 | )% | (34 | )% | |||||
As a percentage of total revenue | 6 | % | 10 | % |
Nine Months Ended | Percentage Change | ||||||||||||
(In thousands) | August 31, 2016 | August 31, 2015 | As Reported | Constant Currency | |||||||||
North America | $ | 160,732 | $ | 139,454 | 15 | % | 15 | % | |||||
As a percentage of total revenue | 56 | % | 53 | % | |||||||||
EMEA | $ | 95,517 | $ | 89,667 | 7 | % | 10 | % | |||||
As a percentage of total revenue | 33 | % | 34 | % | |||||||||
Latin America | $ | 12,749 | $ | 13,977 | (9 | )% | 4 | % | |||||
As a percentage of total revenue | 5 | % | 5 | % | |||||||||
Asia Pacific | $ | 18,619 | $ | 21,738 | (14 | )% | (13 | )% | |||||
As a percentage of total revenue | 6 | % | 8 | % |
Three Months Ended | Percentage Change | ||||||||||||
(In thousands) | August 31, 2016 | August 31, 2015 | As Reported | Constant Currency | |||||||||
OpenEdge segment | $ | 67,534 | $ | 73,398 | (8 | )% | (7 | )% | |||||
Data Connectivity and Integration segment | 14,251 | 8,281 | 72 | % | 72 | % | |||||||
Application Development and Deployment segment | 20,233 | 12,958 | 56 | % | 56 | % | |||||||
Total revenue | $ | 102,018 | $ | 94,637 | 8 | % | 9 | % |
Nine Months Ended | Percentage Change | ||||||||||||
(In thousands) | August 31, 2016 | August 31, 2015 | As Reported | Constant Currency | |||||||||
OpenEdge segment | $ | 198,595 | $ | 214,775 | (8 | )% | (5 | )% | |||||
Data Connectivity and Integration segment | 30,852 | 22,669 | 36 | % | 36 | % | |||||||
Application Development and Deployment segment | 58,170 | 27,392 | 112 | % | 112 | % | |||||||
Total revenue | $ | 287,617 | $ | 264,836 | 9 | % | 11 | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
(In thousands) | August 31, 2016 | August 31, 2015 | Percentage Change | August 31, 2016 | August 31, 2015 | Percentage Change | |||||||||||||||
Cost of software licenses | $ | 1,424 | $ | 1,441 | (1 | )% | $ | 4,139 | $ | 4,526 | (9 | )% | |||||||||
As a percentage of software license revenue | 4 | % | 5 | % | 5 | % | 5 | % | |||||||||||||
As a percentage of total revenue | 1 | % | 2 | % | 1 | % | 2 | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
(In thousands) | August 31, 2016 | August 31, 2015 | Percentage Change | August 31, 2016 | August 31, 2015 | Percentage Change | |||||||||||||||
Cost of maintenance and services | $ | 11,825 | $ | 9,612 | 23 | % | $ | 33,217 | $ | 31,174 | 7 | % | |||||||||
As a percentage of maintenance and services revenue | 17 | % | 15 | % | 17 | % | 17 | % | |||||||||||||
As a percentage of total revenue | 12 | % | 10 | % | 12 | % | 12 | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
(In thousands) | August 31, 2016 | August 31, 2015 | Percentage Change | August 31, 2016 | August 31, 2015 | Percentage Change | |||||||||||||||
Amortization of acquired intangibles | $ | 3,940 | $ | 4,079 | (3 | )% | $ | 11,818 | $ | 12,805 | (8 | )% | |||||||||
As a percentage of total revenue | 4 | % | 4 | % | 4 | % | 5 | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||
(In thousands) | August 31, 2016 | August 31, 2015 | Percentage Change | August 31, 2016 | August 31, 2015 | Percentage Change | |||||||||||||
Gross profit | $ | 84,829 | $ | 79,505 | 7 | % | $238,443 | $216,331 | 10 | % | |||||||||
As a percentage of total revenue | 83 | % | 84 | % | 83 | % | 81 | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
(In thousands) | August 31, 2016 | August 31, 2015 | Percentage Change | August 31, 2016 | August 31, 2015 | Percentage Change | |||||||||||||||
Sales and marketing | $ | 29,852 | $ | 30,004 | (1 | )% | $ | 88,648 | $ | 92,607 | (4 | )% | |||||||||
As a percentage of total revenue | 29 | % | 32 | % | 31 | % | 35 | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
(In thousands) | August 31, 2016 | August 31, 2015 | Percentage Change | August 31, 2016 | August 31, 2015 | Percentage Change | |||||||||||||||
Product development costs | $ | 21,706 | $ | 20,701 | 5 | % | $ | 65,800 | $ | 66,858 | (2 | )% | |||||||||
Capitalized product development costs | — | (279 | ) | (100 | )% | — | (1,325 | ) | (100 | )% | |||||||||||
Total product development expense | $ | 21,706 | $ | 20,422 | 6 | % | $ | 65,800 | $ | 65,533 | — | % | |||||||||
As a percentage of total revenue | 21 | % | 22 | % | 23 | % | 25 | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
(In thousands) | August 31, 2016 | August 31, 2015 | Percentage Change | August 31, 2016 | August 31, 2015 | Percentage Change | |||||||||||||||
General and administrative | $ | 11,411 | $ | 14,076 | (19 | )% | $ | 36,055 | $ | 42,065 | (14 | )% | |||||||||
As a percentage of total revenue | 11 | % | 15 | % | 13 | % | 16 | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
(In thousands) | August 31, 2016 | August 31, 2015 | Percentage Change | August 31, 2016 | August 31, 2015 | Percentage Change | |||||||||||||||
Amortization of acquired intangibles | $ | 3,186 | $ | 3,186 | — | % | $ | 9,556 | $ | 9,559 | — | % | |||||||||
As a percentage of total revenue | 3 | % | 3 | % | 3 | % | 4 | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
(In thousands) | August 31, 2016 | August 31, 2015 | Percentage Change | August 31, 2016 | August 31, 2015 | Percentage Change | |||||||||||||||
Impairment of intangible assets | $ | 5,051 | $ | — | 100 | % | $ | 5,051 | $ | — | 100 | % | |||||||||
As a percentage of total revenue | 5 | % | — | % | 2 | % | — | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
(In thousands) | August 31, 2016 | August 31, 2015 | Percentage Change | August 31, 2016 | August 31, 2015 | Percentage Change | |||||||||||||||
Restructuring expenses | $ | (36 | ) | $ | 2,561 | (101 | )% | $ | 229 | $ | 8,715 | (97 | )% | ||||||||
As a percentage of total revenue | — | % | 3 | % | — | % | 3 | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
(In thousands) | August 31, 2016 | August 31, 2015 | Percentage Change | August 31, 2016 | August 31, 2015 | Percentage Change | |||||||||||||||
Acquisition-related expenses | $ | 53 | $ | 662 | (92 | )% | $ | 449 | $ | 3,180 | (86 | )% | |||||||||
As a percentage of total revenue | — | % | 1 | % | — | % | 1 | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
(In thousands) | August 31, 2016 | August 31, 2015 | Percentage Change | August 31, 2016 | August 31, 2015 | Percentage Change | |||||||||||||||
Income (loss) from operations | $ | 13,606 | $ | 8,594 | 58 | % | $ | 32,655 | $ | (5,328 | ) | 713 | % | ||||||||
As a percentage of total revenue | 13 | % | 9 | % | 11 | % | (3 | )% |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
(In thousands) | August 31, 2016 | August 31, 2015 | Percentage Change | August 31, 2016 | August 31, 2015 | Percentage Change | |||||||||||||||
OpenEdge segment | $ | 49,354 | $ | 54,848 | (10 | )% | $ | 145,056 | $ | 158,246 | (8 | )% | |||||||||
Data Connectivity and Integration segment | 11,423 | 5,101 | 124 | % | 21,989 | 13,106 | 68 | % | |||||||||||||
Application Development and Deployment segment | 9,212 | 3,025 | 205 | % | 28,615 | (2,777 | ) | 1,130 | % | ||||||||||||
Other unallocated expenses (1) | (56,383 | ) | (54,380 | ) | 4 | % | (163,005 | ) | (173,903 | ) | (6 | )% | |||||||||
Income (loss) from operations | $ | 13,606 | $ | 8,594 | 58 | % | $ | 32,655 | $ | (5,328 | ) | 713 | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
(In thousands) | August 31, 2016 | August 31, 2015 | Percentage Change | August 31, 2016 | August 31, 2015 | Percentage Change | |||||||||||||||
Interest expense | $ | (1,174 | ) | $ | (987 | ) | 19 | % | $ | (3,244 | ) | $ | (2,808 | ) | 16 | % | |||||
Interest income and other, net | 260 | 450 | (42 | )% | 686 | 1,153 | (41 | )% | |||||||||||||
Foreign currency (loss) gain, net | (374 | ) | (628 | ) | (40 | )% | (1,916 | ) | 397 | (583 | )% | ||||||||||
Total other (expense) income, net | $ | (1,288 | ) | $ | (1,165 | ) | 11 | % | $ | (4,474 | ) | $ | (1,258 | ) | 256 | % | |||||
As a percentage of total revenue | (1 | )% | (1 | )% | (2 | )% | — | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
(In thousands) | August 31, 2016 | August 31, 2015 | Percentage Change | August 31, 2016 | August 31, 2015 | Percentage Change | |||||||||||||||
Provision (benefit) for income taxes | $ | 4,742 | $ | 11,555 | (59 | )% | $ | 10,114 | $ | (7,256 | ) | (239 | )% | ||||||||
As a percentage of total revenue | 5 | % | 12 | % | 4 | % | (3 | )% |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
(In thousands) | August 31, 2016 | August 31, 2015 | Percentage Change | August 31, 2016 | August 31, 2015 | Percentage Change | |||||||||||||||
Net income (loss) | $ | 7,576 | $ | (4,126 | ) | 284 | % | $ | 18,067 | $ | 670 | 2,597 | % | ||||||||
As a percentage of total revenue | 7 | % | (4 | )% | 6 | % | — | % |
(In thousands) | August 31, 2016 | November 30, 2015 | |||||
Cash and cash equivalents | $ | 188,084 | $ | 212,379 | |||
Short-term investments | 44,600 | 28,900 | |||||
Total cash, cash equivalents and short-term investments | $ | 232,684 | $ | 241,279 |
Nine Months Ended | |||||||
(In thousands) | August 31, 2016 | August 31, 2015 | |||||
Net income | $ | 18,067 | $ | 670 | |||
Non-cash reconciling items included in net income | 52,585 | 30,622 | |||||
Changes in operating assets and liabilities | (1,742 | ) | 45,896 | ||||
Net cash flows from operating activities | $ | 68,910 | $ | 77,188 |
Nine Months Ended | |||||||
(In thousands) | August 31, 2016 | August 31, 2015 | |||||
Net investment activity | $ | (16,586 | ) | $ | (9,632 | ) | |
Purchases of property and equipment | (3,747 | ) | (6,079 | ) | |||
Capitalized software development costs | — | (1,661 | ) | ||||
Payments for acquisitions, net of cash acquired | — | (246,275 | ) | ||||
Proceeds from divestitures, net | — | 4,500 | |||||
Net cash flows used in investing activities | $ | (20,333 | ) | $ | (259,147 | ) |
Nine Months Ended | |||||||
(In thousands) | August 31, 2016 | August 31, 2015 | |||||
Proceeds from stock-based compensation plans | $ | 8,166 | $ | 10,459 | |||
Repurchases of common stock | (71,507 | ) | (32,868 | ) | |||
Net proceeds from the issuance of debt | (7,500 | ) | 142,588 | ||||
Other financing activities | (2,446 | ) | (1,952 | ) | |||
Net cash flows (used in) from financing activities | $ | (73,287 | ) | $ | 118,227 |
(In thousands) | August 31, 2016 | August 31, 2015 | |||||
Deferred revenue, primarily related to unexpired maintenance and support contracts | $ | 137,883 | $ | 130,996 | |||
Multi-year licensing arrangements (1) | 31,101 | 22,791 | |||||
Total revenue backlog | $ | 168,984 | $ | 153,787 |
(1) | Our backlog of orders not included on the balance sheet is not subject to our normal accounting controls for information that is either reported in or derived from our basic financial statements. Note that approximately $29.4 million of the multi-year licensing arrangements as of August 31, 2016 relate to OEM arrangements in our Data Connectivity and Integration business segment, while the remaining amount relates to arrangements in our OpenEdge business segment. |
• | changes in demand for our products; |
• | introduction, enhancement or announcement of products by us or our competitors; |
• | market acceptance of our new products; |
• | the growth rates of certain market segments in which we compete; |
• | size and timing of significant orders; |
• | a high percentage of our revenue is generated in the third month of each fiscal quarter and any failure to receive, complete or process orders at the end of any quarter could cause us to fall short of our revenue targets; |
• | budgeting cycles of customers; |
• | mix of distribution channels; |
• | mix of products and services sold; |
• | mix of international and North American revenues; |
• | fluctuations in currency exchange rates; |
• | changes in the level of operating expenses; |
• | the amount of our stock-based compensation; |
• | changes in management; |
• | restructuring programs; |
• | changes in our sales force; |
• | completion or announcement of acquisitions by us or our competitors; |
• | customer order deferrals in anticipation of new products announced by us or our competitors; and |
• | general economic conditions in regions in which we conduct business. |
• | longer payment cycles; |
• | credit risk and higher levels of payment fraud; |
• | greater difficulties in accounts receivable collection; |
• | varying regulatory requirements; |
• | compliance with international and local trade, labor and export control laws; |
• | compliance with U.S. laws such as the Foreign Corrupt Practices Act, and local laws prohibiting bribery and corrupt payments to government officials; |
• | restrictions on the transfer of funds; |
• | difficulties in developing, staffing, and simultaneously managing a large number of varying foreign operations as a result of distance, language, and cultural differences; |
• | reduced or minimal protection of intellectual property rights in some countries; |
• | laws and business practices that favor local competitors or prohibit foreign ownership of certain businesses; |
• | seasonal reductions in business activity during the summer months in Europe and certain other parts of the world; |
• | economic instability in emerging markets; and |
• | potentially adverse tax consequences. |
• | if new or current customers desire only perpetual licenses, we may not be successful in selling subscriptions; |
• | although we intend to support our perpetual license business, the increased emphasis on a cloud strategy may raise concerns among our installed customer base; |
• | we may be unsuccessful in achieving our target pricing; |
• | our revenues might decline over the short or long term as a result of this strategy; |
• | our relationships with existing partners that resell perpetual licenses may be damaged; and |
• | we may incur costs at a higher than forecasted rate as we enhance and expand our cloud operations. |
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares that May Yet be Purchased Under the Plans or Programs | ||||||||||
June 2016 | 442,846 | $ | 25.89 | 442,846 | $ | 143,021 | ||||||||
July 2016 | — | — | — | 143,021 | ||||||||||
August 2016 | — | — | — | 143,021 | ||||||||||
Total | 442,846 | $ | 25.89 | 442,846 | $ | 143,021 |
Exhibit No. | Description | |
31.1* | Certification of the Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act – Philip M. Pead | |
31.2* | Certification of the Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act – Kurt J. Abkemeier | |
32.1** | Certification Pursuant to Section 906 of the Sarbanes-Oxley Act | |
101 | The following materials from Progress Software Corporation’s Quarterly Report on Form 10-Q for the three and nine months ended August 31, 2016, formatted in XBRL (eXtensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets as of August 31, 2016 and November 30, 2015; (ii) Condensed Consolidated Statements of Income for the three and nine months ended August 31, 2016 and 2015; (iii) Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended August 31, 2016 and 2015; (iv) Condensed Consolidated Statements of Cash Flows for the nine months ended August 31, 2016 and 2015; and (v) Notes to Condensed Consolidated Financial Statements. |
* | Filed herewith |
** | Furnished herewith |
Dated: | October 7, 2016 | /s/ PHILIP M. PEAD | |
Philip M. Pead | |||
President and Chief Executive Officer | |||
(Principal Executive Officer) | |||
Dated: | October 7, 2016 | /s/ KURT J. ABKEMEIER | |
Kurt J. Abkemeier | |||
Chief Financial Officer | |||
(Principal Financial Officer) | |||
Dated: | October 7, 2016 | /s/ PAUL A. JALBERT | |
Paul A. Jalbert | |||
Vice President, Corporate Controller and Chief Accounting Officer | |||
(Principal Accounting Officer) |
Exhibit No. | Description | |
31.1* | Certification of the Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act – Philip M. Pead | |
31.2* | Certification of the Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act – Kurt J. Abkemeier | |
32.1** | Certification Pursuant to Section 906 of the Sarbanes-Oxley Act | |
101 | The following materials from Progress Software Corporation’s Quarterly Report on Form 10-Q for the three and nine months ended August 31, 2016, formatted in XBRL (eXtensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets as of August 31, 2016 and November 30, 2015; (ii) Condensed Consolidated Statements of Income for the three and nine months ended August 31, 2016 and 2015; (iii) Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended August 31, 2016 and 2015; (iv) Condensed Consolidated Statements of Cash Flows for the nine months ended August 31, 2016 and 2015; and (v) Notes to Condensed Consolidated Financial Statements. |
* | Filed herewith |
** | Furnished herewith |
/s/ PHILIP M. PEAD |
Philip M. Pead |
President and Chief Executive Officer |
(Principal Executive Officer) |
/s/ KURT J. ABKEMEIER |
Kurt J. Abkemeier |
Senior Vice President, Finance and Administration and Chief Financial Officer |
(Principal Financial Officer) |
/s/ PHILIP M. PEAD | /s/ KURT J. ABKEMEIER | |||
President and Chief Executive Officer | Senior Vice President, Finance and Administration | |||
and Chief Financial Officer | ||||
Date: | October 7, 2016 | Date: | October 7, 2016 |
Document And Entity Information - shares |
9 Months Ended | |
---|---|---|
Aug. 31, 2016 |
Sep. 29, 2016 |
|
Document And Entity Information [Abstract] | ||
Entity Registrant Name | PROGRESS SOFTWARE CORP /MA | |
Entity Central Index Key | 0000876167 | |
Document Type | 10-Q | |
Document Period End Date | Aug. 31, 2016 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --11-30 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 48,592,417 |
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Aug. 31, 2016 |
Nov. 30, 2015 |
---|---|---|
Assets | ||
Allowance for accounts receivable (in dollars) | $ 1,565 | $ 2,193 |
Stockholders' Equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 48,575,307 | 50,579,539 |
Common stock, shares outstanding | 48,575,307 | 50,579,539 |
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Aug. 31, 2016 |
Aug. 31, 2015 |
Aug. 31, 2016 |
Aug. 31, 2015 |
|
Revenue: | ||||
Software licenses | $ 33,624 | $ 31,840 | $ 86,366 | $ 85,794 |
Maintenance and services | 68,394 | 62,797 | 201,251 | 179,042 |
Total revenue | 102,018 | 94,637 | 287,617 | 264,836 |
Costs of revenue: | ||||
Cost of software licenses | 1,424 | 1,441 | 4,139 | 4,526 |
Cost of maintenance and services | 11,825 | 9,612 | 33,217 | 31,174 |
Amortization of acquired intangibles | 3,940 | 4,079 | 11,818 | 12,805 |
Total costs of revenue | 17,189 | 15,132 | 49,174 | 48,505 |
Gross profit | 84,829 | 79,505 | 238,443 | 216,331 |
Operating expenses: | ||||
Sales and marketing | 29,852 | 30,004 | 88,648 | 92,607 |
Product development | 21,706 | 20,422 | 65,800 | 65,533 |
General and administrative | 11,411 | 14,076 | 36,055 | 42,065 |
Amortization of acquired intangibles | 3,186 | 3,186 | 9,556 | 9,559 |
Impairment of intangible assets | 5,051 | 0 | 5,051 | 0 |
Restructuring expenses | (36) | 2,561 | 229 | 8,715 |
Acquisition-related expenses | 53 | 662 | 449 | 3,180 |
Total operating expenses | 71,223 | 70,911 | 205,788 | 221,659 |
Income (loss) from operations | 13,606 | 8,594 | 32,655 | (5,328) |
Other (expense) income: | ||||
Interest expense | (1,174) | (987) | (3,244) | (2,808) |
Interest income and other, net | 260 | 450 | 686 | 1,153 |
Foreign currency (loss) gain, net | (374) | (628) | (1,916) | 397 |
Total other (expense) income, net | (1,288) | (1,165) | (4,474) | (1,258) |
Income (loss) before income taxes | 12,318 | 7,429 | 28,181 | (6,586) |
Provision (benefit) for income taxes | 4,742 | 11,555 | 10,114 | (7,256) |
Net income (loss) | $ 7,576 | $ (4,126) | $ 18,067 | $ 670 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 0.16 | $ (0.08) | $ 0.36 | $ 0.01 |
Diluted (in dollars per share) | $ 0.15 | $ (0.08) | $ 0.36 | $ 0.01 |
Weighted average shares outstanding: | ||||
Basic (in shares) | 48,611 | 50,120 | 49,765 | 50,377 |
Diluted (in shares) | 49,135 | 50,120 | 50,310 | 51,117 |
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Aug. 31, 2016 |
Aug. 31, 2015 |
Aug. 31, 2016 |
Aug. 31, 2015 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 7,576 | $ (4,126) | $ 18,067 | $ 670 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustments | (1,332) | (257) | 485 | (8,411) |
Reclassification adjustment for losses included in net income, net of tax of $0 for the third quarter and first nine months of 2016 | 0 | 0 | 256 | 0 |
Unrealized gains (losses) on investments, net of tax of $16 for the third quarter and first nine months of 2016 and $0 for the third quarter and first nine months of 2015 | 30 | (17) | 27 | (52) |
Total other comprehensive income (loss), net of tax | (1,302) | (274) | 768 | (8,463) |
Comprehensive income (loss) | $ 6,274 | $ (4,400) | $ 18,835 | $ (7,793) |
Condensed Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Aug. 31, 2016 |
Aug. 31, 2015 |
Aug. 31, 2016 |
Aug. 31, 2015 |
|
Statement of Comprehensive Income [Abstract] | ||||
Tax effect on reclassification adjustment for losses included in net income | $ 0 | $ 0 | ||
Tax provision (benefit) included in accumulated unrealized losses on investments | $ 16 | $ 0 | $ 16 | $ 0 |
Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Aug. 31, 2016 |
Aug. 31, 2015 |
|
Statement of Cash Flows [Abstract] | ||
Proceeds from income tax refunds | $ 781 | $ 1,887 |
Basis of Presentation |
9 Months Ended |
---|---|
Aug. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation Company Overview - We are a global leader in application development, empowering the digital transformation organizations need to create and sustain engaging user experiences in today's evolving marketplace. With offerings spanning web, mobile and data for on-premise and cloud environments, we power startups and industry titans worldwide. Our solutions are used across a variety of industries. Our products are generally sold as perpetual licenses, but certain products also use term licensing models and our cloud-based offerings use a subscription based model. More than half of our worldwide license revenue is realized through relationships with indirect channel partners, principally application partners and original equipment manufacturers (OEMs). Application partners are independent software vendors (ISVs) that develop and market applications using our technology and resell our products in conjunction with sales of their own products that incorporate our technology. OEMs are companies that embed our products into their own software products or devices. We operate in North America and Latin America (the Americas); Europe, the Middle East and Africa (EMEA); and the Asia Pacific region, through local subsidiaries as well as independent distributors. Basis of Presentation and Significant Accounting Policies - We prepared the accompanying unaudited condensed consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (SEC) regarding interim financial reporting. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America (GAAP) for complete financial statements and these unaudited financial statements should be read in conjunction with the audited financial statements included in our Annual Report on Form 10-K for the fiscal year ended November 30, 2015. We made no significant changes in the application of our significant accounting policies that were disclosed in our Annual Report on Form 10-K for the fiscal year ended November 30, 2015. We have prepared the accompanying unaudited condensed consolidated financial statements on the same basis as the audited financial statements included in our Annual Report on Form 10-K for the fiscal year ended November 30, 2015, and these financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the results of the interim periods presented. The operating results for the interim periods presented are not necessarily indicative of the results expected for the full fiscal year. Recent Accounting Pronouncements - In August 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2016-15, Classification of Certain Cash Receipts and Cash Payments (ASU 2016-15). ASU 2016-15 is intended to add or clarify guidance on the classification of certain cash receipts and payments in the statement of cash flows and to eliminate the diversity in practice related to such classifications. The guidance in ASU 2016-15 is required for annual reporting periods beginning after December 15, 2017, with early adoption permitted. We are currently evaluating the effect that implementation of this update will have upon adoption on our consolidated statement of cash flows. In March 2016, the FASB issued Accounting Standards Update No. 2016-09, Improvements to Employee Share-Based Payment Accounting (ASU 2016-09). ASU 2016-09 is intended to simplify various aspects of the accounting for employee share-based payment transactions, including accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The guidance in ASU 2016-09 is required for annual reporting periods beginning after December 15, 2016, with early adoption permitted. We are currently evaluating the effect that implementation of this update will have upon adoption on our consolidated financial position and results of operations. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (ASU 2016-02), which requires lessees to record most leases on their balance sheets, recognizing a lease liability for the obligation to make lease payments and a right-to-use asset for the right to use the underlying asset for the lease term. The guidance in ASU 2016-02 is required for annual reporting periods beginning after December 15, 2018, with early adoption permitted. We currently expect that most of our operating lease commitments will be subject to the update and recognized as operating lease liabilities and right-of-use assets upon adoption. However, we are currently evaluating the effect that implementation of this update will have upon adoption on our consolidated financial position and results of operations. In April 2015, the FASB issued Accounting Standards Update No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30) Simplifying the Presentation of Debt Issuance Costs (ASU 2015-03). ASU 2015-03 requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability, consistent with the presentation of a debt discount. The guidance in ASU 2015-03 is required for annual reporting periods beginning after December 15, 2015, including interim periods within the reporting period. Early adoption is permitted for financial statements that have not been previously issued. We estimate that the impact on our consolidated balance sheets will be a reclassification of up to $1.1 million from other assets to long-term debt as of December 1, 2016. In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) (ASU 2014-09). ASU 2014-09 outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. This new guidance is effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2016. Early adoption is not permitted. Entities have the option of using either a full retrospective or a modified approach to adopt the guidance. In July 2015, the FASB voted to defer the effective date of this ASU by one year for reporting periods beginning after December 15, 2017, with early adoption permitted as of the original effective date. As a result, the new effective date for the Company will be December 1, 2018. This update will impact the timing and amounts of revenue recognized. Management is currently assessing the impact the adoption of this ASU will have on the Company’s consolidated financial statements. |
Cash, Cash Equivalents and Investments |
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Investments and Cash [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash, Cash Equivalents and Investments | Cash, Cash Equivalents and Investments A summary of our cash, cash equivalents and available-for-sale investments at August 31, 2016 is as follows (in thousands):
A summary of our cash, cash equivalents and available-for-sale investments at November 30, 2015 is as follows (in thousands):
Such amounts are classified on our condensed consolidated balance sheets as follows (in thousands):
The fair value of debt securities by contractual maturity is as follows (in thousands):
We did not hold any investments with continuous unrealized losses as of August 31, 2016 and as of November 30, 2015. |
Derivative Instruments |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments | Derivative Instruments We generally use forward contracts that are not designated as hedging instruments to hedge economically the impact of the variability in exchange rates on intercompany accounts receivable and loans receivable denominated in certain foreign currencies. We generally do not hedge the net assets of our international subsidiaries. All forward contracts are recorded at fair value in other current assets or other accrued liabilities on the consolidated balance sheets at the end of each reporting period and expire from 30 days to one year. In the three and nine months ended August 31, 2016, realized and unrealized gains of $2.2 million and $1.4 million, respectively, from our forward contracts were recognized in foreign currency (loss) gain, net, in the condensed consolidated statements of operations. In the three and nine months ended August 31, 2015, realized and unrealized gains of $0.6 million and realized and unrealized losses of $1.9 million, respectively, from our forward contracts were recognized in foreign currency gain (loss), net, in the condensed consolidated statements of operations. The gains and losses were substantially offset by realized and unrealized losses and gains on the offsetting positions. The table below details outstanding foreign currency forward contracts where the notional amount is determined using contract exchange rates (in thousands):
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Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements Recurring Fair Value Measurements The following table details the fair value measurements within the fair value hierarchy of our financial assets and liabilities at August 31, 2016 (in thousands):
The following table details the fair value measurements within the fair value hierarchy of our financial assets and liabilities at November 30, 2015 (in thousands):
When developing fair value estimates, we maximize the use of observable inputs and minimize the use of unobservable inputs. When available, we use quoted market prices to measure fair value. The valuation technique used to measure fair value for our Level 1 and Level 2 assets is a market approach, using prices and other relevant information generated by market transactions involving identical or comparable assets. If market prices are not available, the fair value measurement is based on models that use primarily market based parameters including yield curves, volatilities, credit ratings and currency rates. In certain cases where market rate assumptions are not available, we are required to make judgments about assumptions market participants would use to estimate the fair value of a financial instrument. The following table reflects the activity for our liabilities measured at fair value using Level 3 inputs, which relate to a contingent consideration obligation in connection with a prior acquisition, for each period presented (in thousands):
We recorded credits of approximately $0.3 million and $1.5 million during the three and nine months ended August 31, 2015, respectively, due to the change in fair value of a contingent consideration obligation in connection with a prior acquisition, which is included in acquisition-related expenses in our condensed consolidated statement of operations. The contingent consideration obligation was reduced to $0 during the fiscal year ended November 30, 2015. Nonrecurring Fair Value Measurements During the third quarter of fiscal year 2016, certain assets have been measured at fair value on a nonrecurring basis using significant unobservable inputs (Level 3). Based on the fair value measurement, we recorded a $5.1 million asset impairment charge as of August 31, 2016, which was applicable to the intangible assets obtained in connection with our acquisition of Modulus during the second quarter of fiscal year 2014 (Note 5). The following table presents nonrecurring fair value measurements as of August 31, 2016 (in thousands):
The fair value measurement was determined using an income-based valuation methodology, which incorporates unobservable inputs, including expected cash flows over the remaining estimated useful life of the technology, thereby classifying the fair value as a Level 3 measurement within the fair value hierarchy. The expected cash flows include subscription fees to be collected from existing customers using the platform, offset by hosting fees and compensation related costs to be incurred over the remaining estimated useful life. |
Intangible Assets and Goodwill |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets and Goodwill | Intangible Assets and Goodwill Intangible Assets Intangible assets are comprised of the following significant classes (in thousands):
During the third quarter of fiscal year 2016, we evaluated the ongoing value of the intangible assets associated with the technology obtained in connection with the acquisition of Modulus. As a result of our decision to abandon the related assets due to a change in our expected ability to use the technology internally, we determined that the intangible assets were fully impaired. As a result, we incurred an impairment charge of $5.1 million in the third quarter of fiscal year 2016. In the three and nine months ended August 31, 2016, amortization expense related to intangible assets was $7.1 million and $21.4 million, respectively. In the three and nine months ended August 31, 2015, amortization expense related to intangible assets was $7.3 million and $22.4 million, respectively. Future amortization expense for intangible assets as of August 31, 2016, is as follows (in thousands):
Goodwill Changes in the carrying amount of goodwill in the nine months ended August 31, 2016 are as follows (in thousands):
Changes in the goodwill balances by reportable segment in the nine months ended August 31, 2016 are as follows (in thousands):
During the fourth quarter of fiscal year 2015, we completed our annual testing for impairment of goodwill and, based on those tests, concluded that no impairment of goodwill existed as of October 31, 2015. During the quarter ending August 31, 2016, no triggering events have occurred that would indicate that it is more likely than not that the carrying values of any of our reporting units exceeded their fair values. |
Business Combinations |
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Aug. 31, 2016 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combinations Telerik Acquisition On December 2, 2014, we completed the acquisition of all of the outstanding securities of Telerik AD (Telerik), a leading provider of application development tools based in Sofia, Bulgaria, for total consideration of $262.5 million. Approximately $10.5 million of the total consideration was paid to Telerik’s founders and certain other key employees in restricted stock units, subject to a vesting schedule and continued employment. Under the Securities Purchase Agreement, 10% of the total consideration was deposited into an escrow account to secure certain indemnification and other obligations of the sellers to Progress. In accordance with the agreement, the full amount of the escrow was released to the former equity holders in June 2016. Through this acquisition, we now provide comprehensive cloud and on-premise platform offerings that enable developers to rapidly create applications, driven by data for any web, desktop or mobile platform. We funded the acquisition through a combination of existing cash resources and a $150 million term loan (Note 7). Acquisition-related transaction costs (e.g., legal, due diligence, valuation, and other professional fees) and certain acquisition restructuring and related charges are not included as a component of consideration transferred, but are required to be expensed as incurred. We incurred $0 and $0.3 million of acquisition-related costs during the three and nine months ended August 31, 2016, respectively, and $0.8 million and $2.7 million during the three and nine months ended August 31, 2015, respectively, which are included in acquisition-related expenses in our condensed consolidated statement of operations. In connection with the acquisition of Telerik, we agreed to provide retention bonuses to certain Telerik employees as an incentive for those employees to remain with Telerik for at least one year following the acquisition. We concluded that the retention bonuses for these individuals, which totaled approximately $2.2 million, are compensation arrangements and recognized these costs over the one-year service period. During the three and nine months ended August 31, 2015, we incurred $0.6 million and $1.8 million of expense related to the retention bonuses, respectively, which is included in the acquisition-related expenses in our consolidated statement of operations. There were no additional expenses related to the retention bonuses incurred during the three and nine months ended August 31, 2016 and the entire amount accrued during fiscal year 2015 was paid in December 2015. The operations of Telerik are included in our operating results as part of the Application Development and Deployment segment from the date of acquisition. The amount of revenue of Telerik included in our condensed consolidated statement of operations during the three and nine months ended August 31, 2016 was $19.4 million and $56.0 million, respectively. The amount of revenue of Telerik included in our condensed consolidated statement of operations during the three and nine months ended August 31, 2015 was $12.5 million and $26.2 million, respectively. The revenue from sales of Telerik products and maintenance is primarily recognized ratably over the maintenance period, which is generally one year, as vendor specific objective evidence of fair value cannot be established for such maintenance. The amount of pretax losses of Telerik included in our condensed consolidated statement of operations during the three and nine months ended August 31, 2016 was $7.0 million and $20.2 million, respectively. The amount of pretax losses of Telerik included in our condensed consolidated statement of operations during the three and nine months ended August 31, 2015 was $10.2 million and $41.2 million, respectively. The pretax losses in each three and nine month period includes the amortization expense of approximately $6.2 million and $18.5 million, respectively, related to the acquired intangible assets discussed above. In addition, the pretax losses in the three and nine months ended August 31, 2016 includes stock-based compensation expense of approximately $2.2 million and $6.5 million, respectively. |
Term Loan and Line of Credit |
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Line of Credit Facility [Abstract] | |||||||||||||||||||||||||||||
Term Loan and Line of Credit | Term Loan and Line of Credit Our credit agreement provides for a $150 million secured term loan and a $150 million secured revolving credit facility, which may be made available in U.S. Dollars and certain other currencies. The revolving credit facility may be increased by up to an additional $75 million if the existing or additional lenders are willing to make such increased commitments. We borrowed the $150 million term loan included in our credit agreement to partially fund our acquisition of Telerik, as described in Note 6. The revolving credit facility has sublimits for swing line loans up to $25.0 million and for the issuance of standby letters of credit in a face amount up to $25.0 million. We expect to use the revolving credit facility for general corporate purposes, including acquisitions of other businesses, and may also use it for working capital. The credit facility matures on December 2, 2019, when all amounts outstanding will be due and payable in full. The revolving credit facility does not require amortization of principal. The outstanding balance of the $150 million term loan as of August 31, 2016 was $136.9 million, with $13.1 million due in the next 12 months. The term loan requires repayment of principal at the end of each fiscal quarter, beginning with the fiscal quarter ended February 28, 2015. The first eight payments are in the principal amount of $1.9 million each, the following eight payments are in the principal amount of $3.8 million each, the following three payments are in the principal amount of $5.6 million each, and the last payment is of the remaining principal amount. The term loan may be prepaid before maturity in whole or in part at our option without penalty or premium. As of August 31, 2016, the carrying value of the term loan approximates the fair value, based on Level 2 inputs (observable market prices in less than active markets), as the interest rate is variable over the selected interest period and is similar to current rates at which we can borrow funds. The interest rate of the credit facility as of August 31, 2016 was 2.25%. Costs incurred to obtain our long-term debt of $1.8 million were recorded as debt issuance costs within other assets in our consolidated balance sheet as of August 31, 2016 and are being amortized over the term of the debt agreement using the effective interest rate method. Amortization expense related to debt issuance costs of $0.1 million and $0.3 million for the three and nine months ended August 31, 2016, respectively, and $0.1 million and $0.3 million for the three and nine months ended August 31, 2015, respectively, is recorded within interest expense in our condensed consolidated statements of operations. Revolving loans may be borrowed, repaid and reborrowed until December 2, 2019, at which time all amounts outstanding must be repaid. As of August 31, 2016, there were no amounts outstanding under the revolving line and $0.5 million of letters of credit. As of August 31, 2016, aggregate principal payments of long-term debt for the next five years and thereafter are (in thousands):
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Common Stock Repurchases |
9 Months Ended |
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Aug. 31, 2016 | |
Common Stock Repurchases [Abstract] | |
Common Stock Repurchases | Common Stock Repurchases We repurchased and retired 0.4 million shares of our common stock for $11.5 million in the three months ended August 31, 2016 and 2.8 million shares for $71.5 million in the nine months ended August 31, 2016. We did not repurchase shares of our common stock during the three months ended August 31, 2015 and in the nine months ended August 31, 2015, we repurchased and retired 1.3 million shares for $32.9 million. The shares were repurchased in both periods as part of our Board of Directors authorized share repurchase program. In March 2016, our Board of Directors authorized a new $100.0 million share repurchase program, which increased the total authorization to $202.8 million. As of August 31, 2016, there is $143.0 million remaining under this current authorization. |
Stock-Based Compensation |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation | Stock-Based Compensation Stock-based compensation expense reflects the fair value of stock-based awards measured at the grant date and recognized over the relevant service period. We estimate the fair value of each stock-based award on the measurement date using the current market price of the stock or the Black-Scholes option valuation model. In addition, during the first quarter of fiscal year 2014, each of the first three quarters of fiscal year 2015, and the first and third quarters of fiscal year 2016, we granted performance-based restricted stock units to members of executive management that include a three-year market condition. In order to estimate the fair value of such awards, we used a Monte Carlo Simulation valuation model. The Black-Scholes and Monte Carlo Simulation valuation models incorporate assumptions as to stock price volatility, the expected life of options or awards, a risk-free interest rate and dividend yield. We recognize stock-based compensation expense related to options and restricted stock units on a straight-line basis over the service period of the award, which is generally 4 or 5 years for options and 3 years for restricted stock units. We recognize stock-based compensation expense related to performance stock units and our employee stock purchase plan using an accelerated attribution method. The following table provides the classification of stock-based compensation as reflected in our condensed consolidated statements of operations (in thousands):
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Accumulated Other Comprehensive Loss |
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Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The following table summarizes the changes in accumulated balances of other comprehensive loss during the nine months ended August 31, 2016 (in thousands):
The tax effect on accumulated unrealized gains (losses) on investments was minimal as of August 31, 2016 and November 30, 2015. |
Restructuring Charges |
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Restructuring Charges [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Charges | Restructuring Charges The following table provides a summary of activity for all of the restructuring actions, which are detailed further below (in thousands):
2015 Restructurings During the first quarter of fiscal year 2015, we restructured our operations in connection with the acquisition of Telerik. This restructuring resulted in a reduction of redundant positions primarily within the administrative functions. This restructuring also resulted in the closing of two facilities as well as asset impairment charges for assets no longer deployed as a result of the acquisition. During the second and third quarters of fiscal year 2015, we incurred additional costs with respect to this restructuring, including reduction of redundant positions primarily within the product development function, as well as an impairment charge discussed further below. Restructuring expenses are related to employee costs, including severance, health benefits and outplacement services (but excluding stock-based compensation), facilities costs, which include fees to terminate lease agreements and costs for unused space, net of sublease assumptions, and other costs, which include asset impairment charges. During the second quarter of fiscal year 2015, we decided to replace our existing cloud-based mobile application development technology with technology acquired in connection with the acquisition of Telerik. Accordingly, we evaluated the ongoing value of the assets associated with this prior mobile technology and, based on this evaluation, we determined that the long-lived assets with a carrying amount of $4.0 million were no longer recoverable and were impaired and wrote them down to their estimated fair value of $0.1 million. Fair value was based on expected future cash flows using Level 3 inputs under ASC 820. As part of this first quarter of fiscal year 2015 restructuring, for the three months ended August 31, 2016 we incurred minimal expenses and for the nine months ended August 31, 2016 we incurred expenses of $0.3 million. For the three and nine months ended August 31, 2015, we incurred expenses of $2.5 million and $7.4 million, respectively. The expenses are recorded as restructuring expenses in the condensed consolidated statements of operations. We do not expect to incur additional material costs with respect to this restructuring. A summary of the first nine months of fiscal year 2016 activity for this restructuring action is as follows (in thousands):
Cash disbursements for expenses incurred to date under this restructuring are expected to be made through the fourth quarter of fiscal year 2016. As a result, the total amount of the restructuring reserve of $0.2 million is included in other accrued liabilities on the condensed consolidated balance sheet at August 31, 2016. During the fourth quarter of fiscal year 2015, our management approved, committed to and initiated plans to make strategic changes to our organization to further build on the focus gained from operating under our business segment structure and to enable stronger cross-collaboration among product management, marketing and sales teams and a tighter integration of the product management and product development teams. In connection with the new organizational structure, we no longer have presidents of our three segments, as well as certain other positions within the administrative organization. Our Chief Operating Officer, appointed during fiscal year 2015, assumed responsibility for driving the operations of our three segments. The organizational changes did not result in the closing of any of our facilities. Restructuring expenses are related to employee costs, including severance, health benefits and outplacement services (but excluding stock-based compensation), and other costs, which include charges for the abandonment of certain assets. As part of this fourth quarter of fiscal year 2015 restructuring, for the three and nine months ended August 31, 2016, we recorded a minimal credit to restructuring expenses in the consolidated statements of operations due to changes in estimates of severance to be paid. We do not expect to incur additional material costs with respect to this restructuring. A summary of the first nine months of fiscal year 2016 activity for this restructuring action is as follows (in thousands):
Cash disbursements for expenses incurred to date under this restructuring are expected to be made through the fourth quarter of fiscal year 2016. As a result, the total amount of the restructuring reserve of $0.4 million is included in other accrued liabilities on the condensed consolidated balance sheet at August 31, 2016. 2012 - 2014 Restructurings During fiscal years 2012, 2013, and 2014, our management approved, committed to and initiated plans to make strategic changes to our organization to provide greater focus and agility in the delivery of next generation application development, deployment and integration solutions. During each of these fiscal years, we took restructuring actions that involved the elimination of personnel and/or the closure of facilities. As part of these restructuring actions, for the three and nine months ended August 31, 2016, we incurred minimal expenses, and for the three and nine months ended August 31, 2015, we incurred expenses of $0 and $1.3 million, respectively, which are related to employee costs, including severance, health benefits, and outplacement services (but excluding stock-based compensation), and facilities costs, which include fees to terminate lease agreements and costs for unused space, net of sublease assumptions. The expenses are recorded as restructuring expenses in the condensed consolidated statements of operations. We do not expect to incur additional material costs with respect to the 2012, 2013, and 2014 restructuring actions. The restructuring reserve of $0.1 million is included in other accrued liabilities on the condensed consolidated balance sheet as of August 31, 2016. |
Income Taxes |
9 Months Ended |
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Aug. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our income tax provision for the third quarter of fiscal years 2016 and 2015 reflects our estimates of the effective tax rates expected to be applicable for the full fiscal years, adjusted for any discrete events which are recorded in the period they occur. The estimates are reevaluated each quarter based on our estimated tax expense for the full fiscal year. The decrease in our effective tax rate in the nine months ended August 31, 2016 compared to the same period in the prior year is primarily due to the jurisdictional mix of profits as a result of the acquisition of Telerik, where substantial losses were incurred in Bulgaria in fiscal year 2015 and tax effected at a 10% statutory rate and other jurisdictions’ earnings, primarily in the United States, were taxed at higher rates. In addition, during the preparation of our condensed consolidated financial statements for the three months ended May 31, 2016, we identified an error in our prior year income tax provision whereby income tax expense was overstated for the year ended November 30, 2015 by $2.7 million related to our tax treatment of an intercompany gain. We determined that the error is not material to the prior year financial statements. We also concluded that recording an out-of-period correction would not be material and have therefore corrected this error by recording an out-of-period $2.7 million tax benefit in our interim financial statements for the periods ended May 31, 2016. The Internal Revenue Service is currently examining our U.S. Federal income tax returns for fiscal years 2013 and 2014. Our Federal income tax returns have been examined or are closed by statute for all years prior to fiscal year 2012, and we are no longer subject to audit for those periods. Our state income tax returns have been examined or are closed by statute for all years prior to fiscal year 2011, and we are no longer subject to audit for those periods. Tax authorities for certain non-U.S. jurisdictions are also examining returns, none of which are material to our consolidated balance sheets, cash flows or statements of income. With some exceptions, we are generally no longer subject to tax examinations in non-U.S. jurisdictions for years prior to fiscal year 2010. |
Earnings Per Share |
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Earnings Per Share | Earnings Per Share We compute basic earnings per share using the weighted average number of common shares outstanding. We compute diluted earnings per share using the weighted average number of common shares outstanding plus the effect of outstanding dilutive stock options, restricted stock units and deferred stock units, using the treasury stock method. The following table sets forth the calculation of basic and diluted earnings per share on an interim basis (in thousands, except per share data):
We excluded stock awards representing approximately 287,000 shares and 423,000 shares of common stock from the calculation of diluted earnings per share in the three and nine months ended August 31, 2016, respectively, because these awards were anti-dilutive. In the three and nine months ended August 31, 2015, we excluded stock awards representing 1,173,000 shares and 296,000 shares of common stock, respectively, from the calculation of diluted earnings per share as they were anti-dilutive. |
Business Segments and International Operations |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Segments and International Operations | Business Segments and International Operations Operating segments are components of an enterprise that engage in business activities for which discrete financial information is available and regularly reviewed by the chief operating decision maker in deciding how to allocate resources and assess performance. Our chief operating decision maker is the combination of our Chief Executive Officer and Chief Operating Officer. We do not manage our assets or capital expenditures by segment or assign other income (expense) and income taxes to segments. We manage and report such items on a consolidated company basis. The following table provides revenue and contribution from our reportable segments and reconciles to the consolidated income (loss) before income taxes:
Our revenues are derived from licensing our products, and from related services, which consist of maintenance and consulting and education. Information relating to revenue from customers by revenue type is as follows (in thousands):
In the following table, revenue attributed to North America includes sales to customers in the U.S. and sales to certain multinational organizations. Revenue from Europe, the Middle East and Africa (EMEA), Latin America and the Asia Pacific region includes sales to customers in each region plus sales from the U.S. to distributors in these regions. Information relating to revenue from external customers from different geographical areas is as follows (in thousands):
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Subsequent Events |
9 Months Ended |
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Aug. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On September 27, 2016, our Board of Directors approved the initiation of a quarterly cash dividend to Progress shareholders. The first quarterly dividend of $0.125 per share of common stock will be paid on December 15, 2016 to shareholders of record as of the close of business on December 1, 2016. On September 28, 2016, we announced the appointment of Kurt J. Abkemeier as our new chief financial officer. As CFO, Mr. Abkemeier will oversee the company's global finance and accounting operations and be a member of the company's executive leadership team, reporting to Phil Pead, president and chief executive officer. Mr. Abkemeier succeeds Chris E. Perkins, who informed the company in March 2016 that he would retire as CFO upon the appointment of his successor. Mr. Abkemeier began as CFO at Progress on September 28, 2016. |
Basis of Presentation (Policies) |
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Aug. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies - We prepared the accompanying unaudited condensed consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (SEC) regarding interim financial reporting. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America (GAAP) for complete financial statements and these unaudited financial statements should be read in conjunction with the audited financial statements included in our Annual Report on Form 10-K for the fiscal year ended November 30, 2015. We made no significant changes in the application of our significant accounting policies that were disclosed in our Annual Report on Form 10-K for the fiscal year ended November 30, 2015. We have prepared the accompanying unaudited condensed consolidated financial statements on the same basis as the audited financial statements included in our Annual Report on Form 10-K for the fiscal year ended November 30, 2015, and these financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the results of the interim periods presented. The operating results for the interim periods presented are not necessarily indicative of the results expected for the full fiscal year. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements - In August 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2016-15, Classification of Certain Cash Receipts and Cash Payments (ASU 2016-15). ASU 2016-15 is intended to add or clarify guidance on the classification of certain cash receipts and payments in the statement of cash flows and to eliminate the diversity in practice related to such classifications. The guidance in ASU 2016-15 is required for annual reporting periods beginning after December 15, 2017, with early adoption permitted. We are currently evaluating the effect that implementation of this update will have upon adoption on our consolidated statement of cash flows. In March 2016, the FASB issued Accounting Standards Update No. 2016-09, Improvements to Employee Share-Based Payment Accounting (ASU 2016-09). ASU 2016-09 is intended to simplify various aspects of the accounting for employee share-based payment transactions, including accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The guidance in ASU 2016-09 is required for annual reporting periods beginning after December 15, 2016, with early adoption permitted. We are currently evaluating the effect that implementation of this update will have upon adoption on our consolidated financial position and results of operations. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (ASU 2016-02), which requires lessees to record most leases on their balance sheets, recognizing a lease liability for the obligation to make lease payments and a right-to-use asset for the right to use the underlying asset for the lease term. The guidance in ASU 2016-02 is required for annual reporting periods beginning after December 15, 2018, with early adoption permitted. We currently expect that most of our operating lease commitments will be subject to the update and recognized as operating lease liabilities and right-of-use assets upon adoption. However, we are currently evaluating the effect that implementation of this update will have upon adoption on our consolidated financial position and results of operations. In April 2015, the FASB issued Accounting Standards Update No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30) Simplifying the Presentation of Debt Issuance Costs (ASU 2015-03). ASU 2015-03 requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability, consistent with the presentation of a debt discount. The guidance in ASU 2015-03 is required for annual reporting periods beginning after December 15, 2015, including interim periods within the reporting period. Early adoption is permitted for financial statements that have not been previously issued. We estimate that the impact on our consolidated balance sheets will be a reclassification of up to $1.1 million from other assets to long-term debt as of December 1, 2016. In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) (ASU 2014-09). ASU 2014-09 outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. This new guidance is effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2016. Early adoption is not permitted. Entities have the option of using either a full retrospective or a modified approach to adopt the guidance. In July 2015, the FASB voted to defer the effective date of this ASU by one year for reporting periods beginning after December 15, 2017, with early adoption permitted as of the original effective date. As a result, the new effective date for the Company will be December 1, 2018. This update will impact the timing and amounts of revenue recognized. Management is currently assessing the impact the adoption of this ASU will have on the Company’s consolidated financial statements. |
Cash, Cash Equivalents and Investments (Tables) |
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Investments and Cash [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Cash, Cash Equivalents and Trading and Available-for-sale Investments | A summary of our cash, cash equivalents and available-for-sale investments at August 31, 2016 is as follows (in thousands):
A summary of our cash, cash equivalents and available-for-sale investments at November 30, 2015 is as follows (in thousands):
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Summary of Cash, Cash Equivalents and Trading and Available-for-sale Investments by Balance Sheet Classification | Such amounts are classified on our condensed consolidated balance sheets as follows (in thousands):
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Fair Value of Debt Securities by Contractual Maturity | The fair value of debt securities by contractual maturity is as follows (in thousands):
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Derivative Instruments (Tables) |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding Foreign Currency Forward Contracts | The table below details outstanding foreign currency forward contracts where the notional amount is determined using contract exchange rates (in thousands):
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Fair Value Measurements (Tables) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements, Nonrecurring [Table Text Block] | The following table presents nonrecurring fair value measurements as of August 31, 2016 (in thousands):
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Fair Value Measurements within the Fair Value Hierarchy of the Financial Assets | The following table details the fair value measurements within the fair value hierarchy of our financial assets and liabilities at August 31, 2016 (in thousands):
The following table details the fair value measurements within the fair value hierarchy of our financial assets and liabilities at November 30, 2015 (in thousands):
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Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The following table reflects the activity for our liabilities measured at fair value using Level 3 inputs, which relate to a contingent consideration obligation in connection with a prior acquisition, for each period presented (in thousands):
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Intangible Assets and Goodwill (Tables) |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Intangible Assets | Intangible assets are comprised of the following significant classes (in thousands):
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Schedule of Future Amortization Expense from Intangible Assets Held | Future amortization expense for intangible assets as of August 31, 2016, is as follows (in thousands):
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Schedule of Goodwill | Changes in the goodwill balances by reportable segment in the nine months ended August 31, 2016 are as follows (in thousands):
Changes in the carrying amount of goodwill in the nine months ended August 31, 2016 are as follows (in thousands):
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Term Loan and Line of Credit (Tables) |
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Line of Credit Facility [Abstract] | |||||||||||||||||||||||||||||
Schedule of Maturities of Long-term Debt | As of August 31, 2016, aggregate principal payments of long-term debt for the next five years and thereafter are (in thousands):
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Stock-Based Compensation (Tables) |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Classification of Stock-Based Compensation | The following table provides the classification of stock-based compensation as reflected in our condensed consolidated statements of operations (in thousands):
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Accumulated Other Comprehensive Loss (Tables) |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table summarizes the changes in accumulated balances of other comprehensive loss during the nine months ended August 31, 2016 (in thousands):
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Restructuring Charges (Tables) |
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Restructuring Cost and Reserve [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Restructuring Activity | The following table provides a summary of activity for all of the restructuring actions, which are detailed further below (in thousands):
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Summary of Restructuring Activity | A summary of the first nine months of fiscal year 2016 activity for this restructuring action is as follows (in thousands):
A summary of the first nine months of fiscal year 2016 activity for this restructuring action is as follows (in thousands):
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Earnings Per Share (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Calculation of Basic and Diluted Earnings Per Share | The following table sets forth the calculation of basic and diluted earnings per share on an interim basis (in thousands, except per share data):
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Business Segments and International Operations (Tables) |
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Aug. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | The following table provides revenue and contribution from our reportable segments and reconciles to the consolidated income (loss) before income taxes:
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Revenue from External Customers by Products and Services | Our revenues are derived from licensing our products, and from related services, which consist of maintenance and consulting and education. Information relating to revenue from customers by revenue type is as follows (in thousands):
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Revenue from External Customers from Different Geographical Areas | In the following table, revenue attributed to North America includes sales to customers in the U.S. and sales to certain multinational organizations. Revenue from Europe, the Middle East and Africa (EMEA), Latin America and the Asia Pacific region includes sales to customers in each region plus sales from the U.S. to distributors in these regions. Information relating to revenue from external customers from different geographical areas is as follows (in thousands):
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Cash, Cash Equivalents and Investments (Fair Value of Debt Securities by Contractual Maturity) (Details) - USD ($) $ in Thousands |
Aug. 31, 2016 |
Nov. 30, 2015 |
---|---|---|
Investments and Cash [Abstract] | ||
Due in one year or less | $ 23,474 | $ 15,945 |
Due after one year | 21,126 | 12,955 |
Total | $ 44,600 | $ 28,900 |
Derivative Instruments (Narrative) (Details) - Forward Contracts [Member] - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Aug. 31, 2016 |
Aug. 31, 2015 |
Aug. 31, 2016 |
Aug. 31, 2015 |
|
Derivative [Line Items] | ||||
Minimum maturity period, foreign currency derivative | 30 days | |||
Maximum maturity period, foreign currency derivative | 1 year | |||
Gains (losses) on foreign currency forward contracts | $ (2.2) | $ 0.6 | $ (1.4) | $ (1.9) |
Derivative Instruments (Outstanding Foreign Currency Forward Contracts) (Details) - USD ($) $ in Thousands |
Aug. 31, 2016 |
Nov. 30, 2015 |
---|---|---|
Derivative [Line Items] | ||
Derivative contracts, notional value | $ 86,201 | $ 78,825 |
Derivative contracts, fair value | (5,166) | (4,021) |
Short [Member] | Forward Contracts [Member] | ||
Derivative [Line Items] | ||
Derivative contracts, notional value | 83,992 | 76,748 |
Derivative contracts, fair value | (5,170) | (4,026) |
Long [Member] | Forward Contracts [Member] | ||
Derivative [Line Items] | ||
Derivative contracts, notional value | 2,209 | 2,077 |
Derivative contracts, fair value | $ 4 | $ 5 |
Fair Value Measurements (Liabilities Measured at Fair Value Using Level 3 Inputs) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Aug. 31, 2016 |
Aug. 31, 2015 |
Aug. 31, 2016 |
Aug. 31, 2015 |
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Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, beginning of period | $ 0 | $ 295 | $ 0 | $ 1,717 |
Changes in fair value of contingent consideration obligation | 0 | (295) | 0 | (1,508) |
Transfer to Level 2 fair value measurement | 0 | 0 | 0 | (209) |
Balance, end of period | $ 0 | $ 0 | $ 0 | $ 0 |
Fair Value Measurements (Quantitative Information about Unobservable Inputs, Liabilities) (Details) - Modulus [Member] - USD ($) |
3 Months Ended | 9 Months Ended | |
---|---|---|---|
May 31, 2014 |
Aug. 31, 2015 |
Nov. 30, 2015 |
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Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Change in fair value of contingent consideration | $ 300,000 | $ 1,500,000 | |
Contingent Consideration [Member] | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Contingent consideration liability | $ 0 |
Fair Value Measurements (Assets Measured on Nonrecurring Basis) (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Aug. 31, 2016 |
Aug. 31, 2015 |
Aug. 31, 2016 |
Aug. 31, 2015 |
|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Impairment of intangible assets | $ 5,051,000 | $ 0 | $ 5,051,000 | $ 0 |
Level 3 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Intangible assets at fair value | 0 | 0 | ||
Impairment of intangible assets | $ 5,100,000 | $ 5,051,000 |
Intangible Assets and Goodwill (Schedule Of Intangible Assets) (Details) - USD ($) $ in Thousands |
Aug. 31, 2016 |
Nov. 30, 2015 |
---|---|---|
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 192,622 | $ 200,083 |
Accumulated Amortization | (104,938) | (85,970) |
Net Book Value | 87,684 | 114,113 |
Purchased technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 109,880 | 117,151 |
Accumulated Amortization | (64,438) | (54,963) |
Net Book Value | 45,442 | 62,188 |
Customer-related [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 67,602 | 67,602 |
Accumulated Amortization | (33,257) | (25,493) |
Net Book Value | 34,345 | 42,109 |
Trademarks and trade names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 15,140 | 15,330 |
Accumulated Amortization | (7,243) | (5,514) |
Net Book Value | $ 7,897 | $ 9,816 |
Intangible Assets and Goodwill (Narrative) (Details) - USD ($) |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Aug. 31, 2016 |
Aug. 31, 2015 |
Aug. 31, 2016 |
Aug. 31, 2015 |
Nov. 30, 2015 |
|
Finite-Lived Intangible Assets [Line Items] | |||||
Impairment of intangible assets | $ 5,051,000 | $ 0 | $ 5,051,000 | $ 0 | |
Intangible assets, amortization expense | 7,100,000 | $ 7,300,000 | $ 21,400,000 | $ 22,400,000 | |
Goodwill impairment loss | $ 0 | ||||
Modulus [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Impairment of intangible assets | $ 5,100,000 |
Intangible Assets and Goodwill (Schedule Of Future Amortization Expense From Intangible Assets Held) (Details) - USD ($) $ in Thousands |
Aug. 31, 2016 |
Nov. 30, 2015 |
---|---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remainder of 2016 | $ 6,852 | |
2017 | 27,426 | |
2018 | 26,613 | |
2019 | 25,489 | |
2020 | 714 | |
Thereafter | 590 | |
Net Book Value | $ 87,684 | $ 114,113 |
Intangible Assets and Goodwill (Schedule of Goodwill) (Details) $ in Thousands |
9 Months Ended |
---|---|
Aug. 31, 2016
USD ($)
| |
Goodwill [Roll Forward] | |
Balance, November 30, 2015 | $ 369,985 |
Translation adjustments | 112 |
Balance, August 31, 2016 | 370,097 |
OpenEdge [Member] | |
Goodwill [Roll Forward] | |
Balance, November 30, 2015 | 211,980 |
Translation adjustments | 112 |
Balance, August 31, 2016 | 212,092 |
Data Connectivity and Integration [Member] | |
Goodwill [Roll Forward] | |
Balance, November 30, 2015 | 19,040 |
Translation adjustments | 0 |
Balance, August 31, 2016 | 19,040 |
Application Development and Deployment [Member] | |
Goodwill [Roll Forward] | |
Balance, November 30, 2015 | 138,965 |
Translation adjustments | 0 |
Balance, August 31, 2016 | $ 138,965 |
Term Loan and Line of Credit (Future Maturities) (Details) $ in Thousands |
Aug. 31, 2016
USD ($)
|
---|---|
Line of Credit Facility [Abstract] | |
Remainder of 2016 | $ 1,875 |
2017 | 15,000 |
2018 | 15,000 |
2019 | 105,000 |
Total | $ 136,875 |
Common Stock Repurchases (Details) - USD ($) shares in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Aug. 31, 2016 |
Aug. 31, 2016 |
Aug. 31, 2015 |
Mar. 31, 2016 |
|
Common Stock Repurchases [Abstract] | ||||
Common stock repurchased and retired (in shares) | 0.4 | 2.8 | 1.3 | |
Common stock repurchased and retired | $ 11,500,000 | $ 71,500,000 | $ 32,900,000 | |
Remaining authorized repurchase amount | $ 143,000,000 | $ 143,000,000 | $ 202,800,000 | |
March 2016 Share Repurchase Program [Member] | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Authorized amount for share repurchase programs | $ 100,000,000.0 |
Income Taxes (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Aug. 31, 2016 |
May 31, 2016 |
Aug. 31, 2015 |
Aug. 31, 2016 |
Aug. 31, 2015 |
|
Income Tax Disclosure [Abstract] | |||||
Foreign statutory rate (as a percent) | 10.00% | 10.00% | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Out of period tax benefit | $ (4,742) | $ (11,555) | $ (10,114) | $ 7,256 | |
Adjustment for Error Correction [Member] | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Out of period tax benefit | $ 2,700 |
Earnings Per Share (Calculation of Basic and Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Aug. 31, 2016 |
Aug. 31, 2015 |
Aug. 31, 2016 |
Aug. 31, 2015 |
|
Earnings Per Share [Abstract] | ||||
Net (loss) income (in dollars) | $ 7,576 | $ (4,126) | $ 18,067 | $ 670 |
Weighted average shares outstanding (in shares) | 48,611 | 50,120 | 49,765 | 50,377 |
Dilutive impact from common stock equivalents (in shares) | 524 | 0 | 545 | 740 |
Diluted weighted average shares outstanding (in shares) | 49,135 | 50,120 | 50,310 | 51,117 |
Basic earnings (loss) per share (in dollars per share) | $ 0.16 | $ (0.08) | $ 0.36 | $ 0.01 |
Diluted earnings (loss) per share (in dollars per share) | $ 0.15 | $ (0.08) | $ 0.36 | $ 0.01 |
Earnings Per Share (Narrative) (Details) - shares shares in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Aug. 31, 2016 |
Aug. 31, 2015 |
Aug. 31, 2016 |
Aug. 31, 2015 |
|
Earnings Per Share [Abstract] | ||||
Number of shares excluded from the calculation of diluted earnings per share | 287 | 1,173 | 423 | 296 |
Business Segments and International Operations (Revenue from External Customers by Product) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Aug. 31, 2016 |
Aug. 31, 2015 |
Aug. 31, 2016 |
Aug. 31, 2015 |
|
Segment Reporting [Abstract] | ||||
Software licenses | $ 33,624 | $ 31,840 | $ 86,366 | $ 85,794 |
Maintenance | 60,368 | 55,365 | 178,189 | 157,259 |
Professional services | 8,026 | 7,432 | 23,062 | 21,783 |
Total revenue | $ 102,018 | $ 94,637 | $ 287,617 | $ 264,836 |
Business Segments and International Operations (Revenue from External Customers from Different Geographical Areas) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Aug. 31, 2016 |
Aug. 31, 2015 |
Aug. 31, 2016 |
Aug. 31, 2015 |
|
Revenue from External Customer [Line Items] | ||||
Total revenue | $ 102,018 | $ 94,637 | $ 287,617 | $ 264,836 |
North America [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Total revenue | 58,275 | 49,810 | 160,732 | 139,454 |
EMEA [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Total revenue | 32,719 | 30,656 | 95,517 | 89,667 |
Latin America [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Total revenue | 4,667 | 4,621 | 12,749 | 13,977 |
Asia Pacific [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Total revenue | $ 6,357 | $ 9,550 | $ 18,619 | $ 21,738 |
Subsequent Events (Details) |
Sep. 27, 2016
$ / shares
|
---|---|
Subsequent Event [Member] | |
Subsequent Event [Line Items] | |
Dividend declared (in dollars per share) | $ 0.125 |
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