XML 33 R22.htm IDEA: XBRL DOCUMENT v2.4.0.6
Guarantor Subsidiaries
3 Months Ended
Mar. 31, 2013
Guarantor Subsidiaries [Abstract]  
Guarantor Subsidiaries
 (14)
Guarantor Subsidiaries
 
The obligations under the Notes were fully and unconditionally guaranteed (except for certain release provisions including any sale or other disposition of all or substantially all of the assets of that guarantor, any sale or other disposition of the capital stock of that guarantor, if we designate any restricted subsidiary that is a guarantor to be an unrestricted subsidiary and upon legal defeasance of satisfaction and discharge of the indenture, which are considered customary), jointly and severally, by all of our current and future 100% owned domestic restricted subsidiaries (Guarantors).  No other subsidiaries guaranteed the Notes.  The Notes and guarantees were secured by a first-priority lien on certain collateral which comprises substantially all of the Parent and Guarantors' tangible and intangible assets, subject to certain exceptions.  The following tables present the balance sheets, statements of operations and statements of cash flows of the Parent, Guarantor and Non-Guarantor entities along with the eliminations necessary to arrive at the information on a consolidated basis.
 
General corporate expenses, including public company costs, certain amortization, corporate administration costs, acquisition-related expenses and net interest expense are included in the results of the Parent.
 
See note 16, Subsequent Event for further information on our debt refinancing in April 2013.
 
 
 
 
CONDENSED CONSOLIDATING BALANCE SHEET
 
 
March 31, 2013
 
 
Parent
 
 
Guarantors
 
 
Non-Guarantors
 
 
Eliminations
 
 
Consolidated
 
ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents (including restricted cash)
 
$
1,020
 
 
$
38,040
 
 
$
5,478
 
 
$
-
 
 
$
44,538
 
Accounts receivable, net
 
 
-
 
 
 
64,626
 
 
 
7,989
 
 
 
-
 
 
 
72,615
 
Intercompany receivables
 
 
1,151
 
 
 
40,585
 
 
 
799
 
 
 
(42,535
)
 
 
-
 
Other current assets
 
 
2,671
 
 
 
31,386
 
 
 
3,727
 
 
 
-
 
 
 
37,784
 
Total current assets
 
 
4,842
 
 
 
174,637
 
 
 
17,993
 
 
 
(42,535
)
 
 
154,937
 
Net property and equipment
 
 
113
 
 
 
3,958
 
 
 
624
 
 
 
-
 
 
 
4,695
 
Purchased and developed software, net
 
 
-
 
 
 
17,359
 
 
 
465
 
 
 
-
 
 
 
17,824
 
Other intangible assets, net
 
 
-
 
 
 
32,623
 
 
 
566
 
 
 
-
 
 
 
33,189
 
Goodwill
 
 
-
 
 
 
212,908
 
 
 
1,361
 
 
 
-
 
 
 
214,269
 
Investment in and advances to subsidiaries
 
 
350,642
 
 
 
2,475
 
 
 
-
 
 
 
(353,117
)
 
 
-
 
Other assets
 
 
5,556
 
 
 
3,544
 
 
 
6,885
 
 
 
-
 
 
 
15,985
 
Total assets
 
$
361,153
 
 
$
447,504
 
 
$
27,894
 
 
$
(395,652
)
 
$
440,899
 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accounts payable
 
$
1,241
 
 
$
23,389
 
 
$
1,126
 
 
$
-
 
 
$
25,756
 
Deferred revenue
 
 
-
 
 
 
52,990
 
 
 
1,861
 
 
 
-
 
 
 
54,851
 
Intercompany payables
 
 
22,175
 
 
 
10,738
 
 
 
9,682
 
 
 
(42,595
)
 
 
-
 
Other accrued liabilities
 
 
11,784
 
 
 
15,982
 
 
 
1,237
 
 
 
-
 
 
 
29,003
 
Total current liabilities
 
 
35,200
 
 
 
103,099
 
 
 
13,906
 
 
 
(42,595
)
 
 
109,610
 
Notes payable
 
 
250,228
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
250,228
 
Other long-term liabilities
 
 
2,747
 
 
 
4,735
 
 
 
601
 
 
 
-
 
 
 
8,083
 
Total liabilities
 
 
288,175
 
 
 
107,834
 
 
 
14,507
 
 
 
(42,595
)
 
 
367,921
 
Total shareholders' equity
 
 
72,978
 
 
 
339,670
 
 
 
13,387
 
 
 
(353,057
)
 
 
72,978
 
Total liabilities and shareholders' equity
 
$
361,153
 
 
$
447,504
 
 
$
27,894
 
 
$
(395,652
)
 
$
440,899
 
 
CONDENSED CONSOLIDATING BALANCE SHEET
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2012
 
 
Parent
 
 
Guarantors
 
 
Non-Guarantors
 
 
Eliminations
 
 
Consolidated
 
ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents (including restricted cash)
 
$
862
 
 
$
32,012
 
 
$
3,001
 
 
$
-
 
 
$
35,875
 
Accounts receivable, net
 
 
-
 
 
 
61,871
 
 
 
10,194
 
 
 
-
 
 
 
72,065
 
Intercompany receivables
 
 
1,142
 
 
 
48,418
 
 
 
799
 
 
 
(50,359
)
 
 
-
 
Other current assets
 
 
2,668
 
 
 
29,337
 
 
 
3,702
 
 
 
-
 
 
 
35,707
 
Total current assets
 
 
4,672
 
 
 
171,638
 
 
 
17,696
 
 
 
(50,359
)
 
 
143,647
 
Net property and equipment
 
 
130
 
 
 
4,187
 
 
 
648
 
 
 
-
 
 
 
4,964
 
Purchased and developed software, net
 
 
-
 
 
 
18,508
 
 
 
499
 
 
 
-
 
 
 
19,007
 
Other intangible assets, net
 
 
-
 
 
 
35,025
 
 
 
603
 
 
 
-
 
 
 
35,628
 
Goodwill
 
 
-
 
 
 
212,908
 
 
 
1,404
 
 
 
-
 
 
 
214,312
 
Investment in and advances to subsidiaries
 
 
345,364
 
 
 
(868
)
 
 
-
 
 
 
(344,496
)
 
 
-
 
Other assets
 
 
5,957
 
 
 
5,745
 
 
 
7,593
 
 
 
-
 
 
 
19,295
 
Total assets
 
$
356,123
 
 
$
447,143
 
 
$
28,443
 
 
$
(394,855
)
 
$
436,853
 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accounts payable
 
$
1,509
 
 
$
21,839
 
 
$
1,090
 
 
$
-
 
 
 
24,438
 
Deferred revenue
 
 
-
 
 
 
50,716
 
 
 
1,639
 
 
 
-
 
 
 
52,355
 
Intercompany payables
 
 
20,008
 
 
 
13,369
 
 
 
17,037
 
 
 
(50,414
)
 
 
-
 
Other accrued liabilities
 
 
4,352
 
 
 
18,168
 
 
 
1,133
 
 
 
-
 
 
 
23,653
 
Total current liabilities
 
 
25,869
 
 
 
104,092
 
 
 
20,899
 
 
 
(50,414
)
 
 
100,446
 
Notes payable
 
 
250,046
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
250,046
 
Other long-term liabilities
 
 
2,747
 
 
 
5,518
 
 
 
635
 
 
 
-
 
 
 
8,900
 
Total liabilities
 
 
278,662
 
 
 
109,610
 
 
 
21,534
 
 
 
(50,414
)
 
 
359,392
 
Total shareholders' equity
 
 
77,461
 
 
 
337,533
 
 
 
6,909
 
 
 
(344,441
)
 
 
77,461
 
Total liabilities and shareholders' equity
 
$
356,123
 
 
$
447,143
 
 
$
28,443
 
 
$
(394,855
)
 
$
436,853
 
 
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended March 31, 2013
 
 
Parent
 
 
Guarantor
 
 
Non-Guarantor
 
 
Eliminations
 
 
Consolidated
 
Net sales
 
$
-
 
 
$
59,022
 
 
$
4,612
 
 
$
-
 
 
$
63,634
 
Cost of sales
 
 
-
 
 
 
27,568
 
 
 
623
 
 
 
-
 
 
 
28,191
 
Gross margin
 
 
-
 
 
 
31,454
 
 
 
3,989
 
 
 
-
 
 
 
35,443
 
Selling, research and development, general and
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
and administrative expenses
 
 
2,561
 
 
 
24,934
 
 
 
(1,485
)
 
 
-
 
 
 
26,010
 
Acquisition-related expenses
 
 
269
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
269
 
Restructuring and other expenses
-
1,228
1
-
1,229
Depreciation and amortization
 
 
17
 
 
 
2,577
 
 
 
59
 
 
 
-
 
 
 
2,653
 
Total operating costs and expenses
 
 
2,847
 
 
 
28,739
 
 
 
(1,425
)
 
 
-
 
 
 
30,161
 
Operating income (loss)
 
 
(2,847
)
 
 
2,715
 
 
 
5,414
 
 
-
 
 
 
5,282
 
Equity in net income of subsidiaries
 
 
4,971
 
 
 
(525
)
 
 
-
 
 
 
(4,446
)
 
 
-
Other, net
 
 
(8,617
)
 
 
(30
)
 
 
(113
)
 
 
-
 
 
 
(8,760
)
Other income (expense)
 
 
(3,646
)
 
 
(555
)
 
 
(113
)
 
 
(4,446
)
 
 
(8,760
)
Income (loss) before income taxes
 
 
(6,493
)
 
 
2,160
 
 
 
5,301
 
 
(4,446
)
 
 
(3,478
)
Income tax expense
 
 
-
 
 
 
2,355
 
 
 
660
 
 
 
-
 
 
 
3,015
 
Net income (loss)
 
$
(6,493
)
 
$
(195
)
 
$
4,641
 
$
(4,446
)
 
$
(6,493
)
 
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended March 31, 2012
 
 
Parent
 
 
Guarantor
 
 
Non-Guarantor
 
 
Eliminations
 
 
Consolidated
 
Net sales
 
$
-
 
 
$
56,698
 
 
$
4,280
 
 
$
-
 
 
$
60,978
 
Cost of sales
 
 
-
 
 
 
23,826
 
 
 
1,157
 
 
 
-
 
 
$
24,983
 
Gross margin
 
 
-
 
 
 
32,872
 
 
 
3,123
 
 
 
-
 
 
 
35,995
 
Selling, research and development, general and
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
administrative expenses
 
$
976
 
 
$
23,056
 
 
$
3,121
 
 
 
-
 
 
$
27,153
 
Acquisition-related expenses
 
 
362
 
 
 
-
 
 
 
-
 
 
 
-
 
 
$
362
 
Depreciation, amortization and impairment
 
 
11
 
 
 
2,740
 
 
 
56
 
 
 
-
 
 
$
2,807
 
Total operating costs and expenses
 
 
1,349
 
 
 
25,796
 
 
 
3,177
 
 
 
-
 
 
 
30,322
 
Operating income (loss)
 
 
(1,349
)
 
 
7,076
 
 
 
(54
)
 
 
-
 
 
 
5,673
 
Equity in net income of subsidiaries
 
 
7,572
 
 
 
(472
)
 
 
-
 
 
 
(7,100
)
 
$
-
 
Other, net
 
 
(8,054
)
 
 
59
 
 
 
64
 
 
 
-
 
 
$
(7,931
)
Other income (expense)
 
 
(482
)
 
 
(413
)
 
 
64
 
 
 
(7,100
)
 
 
(7,931
)
Income (loss) before income taxes
 
 
(1,831
)
 
 
6,663
 
 
 
10
 
 
 
(7,100
)
 
 
(2,258
)
Income tax expense (benefit)
 
 
32
 
 
 
(621
)
 
 
194
 
 
 
-
 
 
$
(395
)
Net income (loss)
 
$
(1,863
)
 
$
7,284
 
 
$
(184
)
 
$
(7,100
)
 
$
(1,863
)
 
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended March 31, 2013
 
 
Parent
 
 
Guarantor
 
 
Non-Guarantor
 
 
Eliminations
 
 
Consolidated
 
Cash flows from operating activities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income (loss)
 
$
(6,493
)
 
$
(195
)
 
$
4,641
 
$
(4,446
)
 
$
(6,493
)
Adjustments to reconcile net income (loss) to
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
net cash provided by (used in) operating activities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
 
 
16
 
 
 
4,368
 
 
 
79
 
 
 
-
 
 
 
4,463
 
Share-based compensation
 
 
866
 
 
 
736
 
 
 
41
 
 
 
-
 
 
 
1,643
 
Amortization of notes payable issuance costs & discount
 
 
736
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
736
 
Provision for doubtful accounts receivable and allowances, net of recoveries
 
 
-
 
 
 
150
 
 
 
(65
)
 
 
-
 
 
 
85
 
Deferred income taxes
 
 
-
 
 
 
2,111
 
 
 
661
 
 
 
-
 
 
 
2,772
 
Unrealized loss on equity security
 
 
441
 
 
-
 
 
 
-
 
 
 
-
 
 
 
441
Net change in assets and liabilities (net of effects of acquisitions)
 
 
6,552
 
 
 
(4,119
)
 
 
2,607
 
 
 
-
 
 
 
5,040
 
Net cash provided by (used in) operating activities
 
 
2,118
 
 
3,051
 
 
 
7,964
 
 
 
(4,446
)
 
 
8,687
 
Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchases of property, equipment, and leasehold improvements
 
 
-
 
 
 
(373
)
 
 
(20
)
 
 
-
 
 
 
(393
)
Intercompany advances
 
 
-
 
 
 
(500
)
 
 
(500
)
 
 
1,000
 
 
 
-
 
Net cash provided by (used in) investing activities
 
 
-
 
 
 
(873
)
 
 
(520
)
 
 
1,000
 
 
 
(393
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Intercompany advances
 
 
500
 
 
 
-
 
 
 
500
 
 
 
(1,000
)
 
 
-
 
Proceeds from exercise of stock options and employee stock purchase plan
 
 
64
 
 
 
332
 
 
 
-
 
 
 
-
 
 
 
396
 
Principal payments on notes payable
 
 
-
 
 
 
-
 
 
 
(5
)
 
 
-
 
 
 
(5
)
Principal payments on capital leases
 
 
-
 
 
 
(103
)
 
 
-
 
 
 
-
 
 
 
(103
)
Net cash provided by (used in) financing activities
 
 
564
 
 
 
229
 
 
495
 
 
 
(1,000
)
 
 
288
 
Effect of exchange rates on cash and cash equivalents
 
 
-
 
 
 
-
 
 
 
81
 
 
 
-
 
 
 
81
 
Net increase (decrease) in cash and cash equivalents
 
 
2,682
 
 
2,407
 
 
 
8,020
 
 
 
(4,446
)
 
 
8,663
 
Cash and cash equivalents (net of restricted cash), beginning of period
 
 
212
 
 
 
31,849
 
 
 
3,001
 
 
 
-
 
 
 
35,062
 
(1)
Cash and cash equivalents (net of restricted cash), end of period
 
$
2,894
 
 
$
34,256
 
 
$
11,021
 
 
$
(4,446
)
 
$
43,725
 
(2)
 
(1) Net of restricted cash of $813 at December 31, 2012
(2) Net of restricted cash of $813 at March 31, 2013
 
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
 
Three Months Ended March 31, 2012
 
 
Parent
 
 
Guarantor
 
 
Non-Guarantor
 
 
Eliminations
 
 
Consolidated
 
Cash flows from operating activities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income (loss)
 
$
(1,863
)
 
$
7,284
 
 
$
(184
)
 
$
(7,100
)
 
$
(1,863
)
Adjustments to reconcile net income (loss) to
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
net cash provided by (used in) operating activities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation, amortization and impairment
 
 
11
 
 
 
4,587
 
 
 
88
 
 
 
-
 
 
 
4,686
 
Share-based compensation
 
 
563
 
 
 
605
 
 
 
31
 
 
 
-
 
 
 
1,199
 
Change in contingent consideration for acquisitions
 
 
-
 
 
 
(297
)
 
 
-
 
 
 
-
 
 
 
(297
)
Amortization of notes payable issuance costs and discount
 
 
649
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
649
 
Provision for doubtful accounts receivable and sales returns, net of recoveries
 
 
-
 
 
 
493
 
 
 
31
 
 
 
-
 
 
 
524
 
Deferred income taxes
 
 
-
 
 
 
(307
)
 
 
212
 
 
 
-
 
 
 
(95
)
Net change in assets and liabilities (net of effects of acquisitions)
 
 
(4,141
)
 
 
(5,865
)
 
 
274
 
 
 
7,100
 
 
 
(2,632
)
Net cash provided by (used in) operating activities
 
 
(4,781
)
 
 
6,500
 
 
 
452
 
 
 
-
 
 
 
2,171
 
Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Acquisitions, net of cash acquired
 
 
-
 
 
 
(500
)
 
 
-
 
 
 
-
 
 
 
(500
)
Purchases of property, equipment, and leasehold improvements
 
 
(62
)
 
 
(1,487
)
 
 
(194
)
 
 
-
 
 
 
(1,743
)
Intercompany advances
 
 
2,470
 
 
 
(198
)
 
 
(2,470
)
 
 
198
 
 
 
-
 
Net cash provided by (used in) investing activities
 
 
2,408
 
 
 
(2,185
)
 
 
(2,664
)
 
 
198
 
 
 
(2,243
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Intercompany advances
 
 
-
 
 
 
-
 
 
 
198
 
 
 
(198
)
 
 
-
 
Proceeds from exercise of stock options and employee stock purchase plan
 
 
745
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
745
 
Principal payments on notes payables
 
 
-
 
 
 
-
 
 
 
(27
)
 
 
-
 
 
 
(27
)
Principal payments on capital leases
 
 
-
 
 
 
(41
)
 
 
-
 
 
 
-
 
 
 
(41
)
Net cash provided by (used in) financing activities
 
 
745
 
 
 
(41
)
 
 
171
 
 
 
(198
)
 
 
677
 
Effect of exchange rates on cash and cash equivalents
 
 
-
 
 
 
-
 
 
 
(12
)
 
 
-
 
 
 
(12
)
Net increase (decrease) in cash and cash equivalents
 
 
(1,628
)
 
 
4,274
 
 
 
(2,053
)
 
 
-
 
 
 
593
 
Cash and cash equivalents (net of restricted cash), beginning of period
 
 
4,907
 
 
 
27,840
 
 
 
5,818
 
 
 
-
 
 
 
38,565
 
(1)
Cash and cash equivalents (net of restricted cash), end of period
 
$
3,279
 
 
$
32,114
 
 
$
3,765
 
 
$
-
 
 
$
39,158
 
(2)
 
(1) Net of restricted cash of $707 at December 31, 2011
(2) Net of restricted cash of $707 at March 31, 2012