2015 Q2 Form 10-Q Financial Statement

#000128005815000025 Filed on August 06, 2015

View on sec.gov

Income Statement

Concept 2015 Q2 2014 Q2
Revenue $156.3M $139.4M
YoY Change 12.1% 11.09%
Cost Of Revenue $73.43M $64.70M
YoY Change 13.5% 14.28%
Gross Profit $82.83M $74.69M
YoY Change 10.89% 8.48%
Gross Profit Margin 53.01% 53.59%
Selling, General & Admin $47.68M $40.21M
YoY Change 18.56% 7.89%
% of Gross Profit 57.56% 53.84%
Research & Development $20.17M $18.06M
YoY Change 11.64% 9.59%
% of Gross Profit 24.35% 24.18%
Depreciation & Amortization $13.60M $10.50M
YoY Change 29.52% 0.0%
% of Gross Profit 16.42% 14.06%
Operating Expenses $68.37M $58.70M
YoY Change 16.48% 7.63%
Operating Profit $14.46M $16.00M
YoY Change -9.6% 11.72%
Interest Expense $1.873M $1.328M
YoY Change 41.04% -11.29%
% of Operating Profit 12.95% 8.3%
Other Income/Expense, Net $695.0K $225.0K
YoY Change 208.89% -172.82%
Pretax Income $11.31M $14.91M
YoY Change -24.1% 18.94%
Income Tax $4.272M $5.626M
% Of Pretax Income 37.76% 37.74%
Net Earnings $7.042M $9.280M
YoY Change -24.12% 40.12%
Net Earnings / Revenue 4.51% 6.66%
Basic Earnings Per Share $0.15 $0.21
Diluted Earnings Per Share $0.15 $0.20
COMMON SHARES
Basic Shares Outstanding 45.58M shares 45.16M shares
Diluted Shares Outstanding 46.40M shares 45.66M shares

Balance Sheet

Concept 2015 Q2 2014 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $13.20M $24.80M
YoY Change -46.77% 239.73%
Cash & Equivalents $13.23M $24.85M
Short-Term Investments
Other Short-Term Assets $111.9M $82.90M
YoY Change 34.98% 14.82%
Inventory
Prepaid Expenses
Receivables $87.46M $84.43M
Other Receivables $2.700M $0.00
Total Short-Term Assets $215.3M $192.1M
YoY Change 12.08% 16.24%
LONG-TERM ASSETS
Property, Plant & Equipment $48.96M $47.39M
YoY Change 3.31% -4.84%
Goodwill $345.9M $277.2M
YoY Change 24.77% 4.82%
Intangibles $212.6M $150.9M
YoY Change 40.91% -3.13%
Long-Term Investments
YoY Change
Other Assets $32.59M $20.67M
YoY Change 57.69% 15.5%
Total Long-Term Assets $640.0M $496.1M
YoY Change 29.0% 1.69%
TOTAL ASSETS
Total Short-Term Assets $215.3M $192.1M
Total Long-Term Assets $640.0M $496.1M
Total Assets $855.4M $688.3M
YoY Change 24.28% 5.37%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $18.10M $8.900M
YoY Change 103.37% 56.14%
Accrued Expenses $28.80M $45.20M
YoY Change -36.28% -3.83%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due $4.375M $4.375M
YoY Change 0.0% -61.11%
Total Short-Term Liabilities $354.0M $293.0M
YoY Change 20.8% 7.72%
LONG-TERM LIABILITIES
Long-Term Debt $253.1M $167.8M
YoY Change 50.88% -8.94%
Other Long-Term Liabilities $6.747M $7.994M
YoY Change -15.6% 41.94%
Total Long-Term Liabilities $259.9M $175.8M
YoY Change 47.86% -7.44%
TOTAL LIABILITIES
Total Short-Term Liabilities $354.0M $293.0M
Total Long-Term Liabilities $259.9M $175.8M
Total Liabilities $660.1M $515.3M
YoY Change 28.11% 3.1%
SHAREHOLDERS EQUITY
Retained Earnings $131.8M $127.4M
YoY Change 3.41% 10.59%
Common Stock $258.1M $231.0M
YoY Change 11.71% 8.06%
Preferred Stock
YoY Change
Treasury Stock (at cost) $192.7M $184.2M
YoY Change 4.61% 5.72%
Treasury Stock Shares 9.790M shares 9.600M shares
Shareholders Equity $195.3M $173.0M
YoY Change
Total Liabilities & Shareholders Equity $855.4M $688.3M
YoY Change 24.28% 5.37%

Cashflow Statement

Concept 2015 Q2 2014 Q2
OPERATING ACTIVITIES
Net Income $7.042M $9.280M
YoY Change -24.12% 40.12%
Depreciation, Depletion And Amortization $13.60M $10.50M
YoY Change 29.52% 0.0%
Cash From Operating Activities $43.40M $31.80M
YoY Change 36.48% 29.27%
INVESTING ACTIVITIES
Capital Expenditures -$8.300M -$2.000M
YoY Change 315.0% -56.52%
Acquisitions
YoY Change
Other Investing Activities -$500.0K -$32.70M
YoY Change -98.47%
Cash From Investing Activities -$8.800M -$34.60M
YoY Change -74.57% 636.17%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -33.70M -5.100M
YoY Change 560.78% -75.48%
NET CHANGE
Cash From Operating Activities 43.40M 31.80M
Cash From Investing Activities -8.800M -34.60M
Cash From Financing Activities -33.70M -5.100M
Net Change In Cash 900.0K -7.900M
YoY Change -111.39% 777.78%
FREE CASH FLOW
Cash From Operating Activities $43.40M $31.80M
Capital Expenditures -$8.300M -$2.000M
Free Cash Flow $51.70M $33.80M
YoY Change 52.96% 15.75%

Facts In Submission

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us-gaap Effective Income Tax Rate Continuing Operations
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us-gaap Excess Tax Benefit From Share Based Compensation Financing Activities
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us-gaap Gain Loss On Cash Flow Hedge Ineffectiveness Net
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0 USD
us-gaap Gain Loss On Cash Flow Hedge Ineffectiveness Net
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0 USD
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CY2015Q2 us-gaap Finite Lived Intangible Assets Amortization Expense Year Four
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CY2015Q2 us-gaap Finite Lived Intangible Assets Amortization Expense Year Two
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0 USD
us-gaap Gain Loss On Sale Of Business
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0 USD
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us-gaap Gain Loss On Sale Of Business
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0 USD
us-gaap Gains Losses On Extinguishment Of Debt
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0 USD
us-gaap Gains Losses On Extinguishment Of Debt
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0 USD
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us-gaap General And Administrative Expense
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CY2015Q2 us-gaap General And Administrative Expense
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us-gaap General And Administrative Expense
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CY2014Q4 us-gaap Goodwill
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us-gaap Goodwill Other Changes
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33200000 USD
us-gaap Goodwill Purchase Accounting Adjustments
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us-gaap Goodwill Translation Adjustments
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-401000 USD
us-gaap Goodwill Written Off Related To Sale Of Business Unit
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CY2014Q2 us-gaap Gross Profit
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us-gaap Gross Profit
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138984000 USD
CY2015Q2 us-gaap Gross Profit
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us-gaap Gross Profit
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14906000 USD
us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
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21508000 USD
CY2015Q2 us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments
11314000 USD
us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
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17353000 USD
CY2014Q2 us-gaap Income Tax Expense Benefit
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5626000 USD
us-gaap Income Tax Expense Benefit
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8414000 USD
CY2015Q2 us-gaap Income Tax Expense Benefit
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4272000 USD
us-gaap Income Tax Expense Benefit
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6026000 USD
us-gaap Increase Decrease In Accounts Payable Trade
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us-gaap Increase Decrease In Accounts Payable Trade
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5235000 USD
us-gaap Increase Decrease In Accounts Receivable
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15096000 USD
us-gaap Increase Decrease In Accounts Receivable
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13355000 USD
us-gaap Increase Decrease In Deferred Revenue
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5588000 USD
us-gaap Increase Decrease In Deferred Revenue
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13792000 USD
us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
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us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
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2102000 USD
us-gaap Increase Decrease In Restricted Cash For Operating Activities
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-62609000 USD
us-gaap Increase Decrease In Restricted Cash For Operating Activities
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CY2014Q2 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
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us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
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CY2015Q2 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
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us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
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us-gaap Interest Expense
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2787000 USD
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us-gaap Interest Expense
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3559000 USD
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us-gaap Interest Income Expense Net
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us-gaap Interest Income Expense Net
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13000 USD
us-gaap Investment Income Interest
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29000 USD
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us-gaap Investment Income Interest
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15000 USD
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2300000 USD
us-gaap Lease And Rental Expense
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4500000 USD
CY2015Q2 us-gaap Lease And Rental Expense
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2400000 USD
us-gaap Lease And Rental Expense
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4900000 USD
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CY2014Q1 us-gaap Line Of Credit Facility Maximum Borrowing Capacity
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325000000.0 USD
us-gaap Line Of Credit Facility Unused Capacity Commitment Fee Percentage
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0.00225
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4375000 USD
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0 USD
CY2015Q2 us-gaap Long Term Debt Maturities Repayments Of Principal In Year Five
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243818000 USD
CY2015Q2 us-gaap Long Term Debt Maturities Repayments Of Principal In Year Four
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4375000 USD
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4375000 USD
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4375000 USD
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2188000 USD
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253130000 USD
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us-gaap Maintenance Costs
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11397000 USD
CY2015Q2 us-gaap Maintenance Costs
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6969000 USD
us-gaap Maintenance Costs
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14471000 USD
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36527000 USD
us-gaap Maintenance Revenue
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72179000 USD
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38627000 USD
us-gaap Maintenance Revenue
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us-gaap Net Cash Provided By Used In Financing Activities
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us-gaap Net Cash Provided By Used In Investing Activities
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us-gaap Net Cash Provided By Used In Investing Activities
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us-gaap Net Cash Provided By Used In Operating Activities
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45104000 USD
us-gaap Net Cash Provided By Used In Operating Activities
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47564000 USD
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us-gaap Net Income Loss
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CY2014 us-gaap Net Income Loss
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us-gaap Net Income Loss
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us-gaap Operating Expenses
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us-gaap Operating Expenses
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us-gaap Operating Income Loss
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us-gaap Operating Income Loss
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us-gaap Other Comprehensive Income Derivatives Qualifying As Hedges Net Of Tax Portion Attributable To Parent
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CY2015Q2 us-gaap Other Comprehensive Income Derivatives Qualifying As Hedges Net Of Tax Portion Attributable To Parent
OtherComprehensiveIncomeDerivativesQualifyingAsHedgesNetOfTaxPortionAttributableToParent
97000 USD
us-gaap Other Comprehensive Income Derivatives Qualifying As Hedges Net Of Tax Portion Attributable To Parent
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us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
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us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
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us-gaap Other Comprehensive Income Loss Net Of Tax
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us-gaap Other Comprehensive Income Loss Net Of Tax Portion Attributable To Parent
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88000 USD
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us-gaap Other Comprehensive Income Loss Net Of Tax Portion Attributable To Parent
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us-gaap Other Cost Of Operating Revenue
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us-gaap Other Noncash Income Expense
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us-gaap Other Nonoperating Income Expense
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us-gaap Other Nonoperating Income Expense
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us-gaap Other Sales Revenue Net
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CY2015Q2 us-gaap Other Sales Revenue Net
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us-gaap Other Sales Revenue Net
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CY2014Q1 us-gaap Payments Of Debt Issuance Costs
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us-gaap Payments Of Dividends
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us-gaap Payments Of Dividends
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2500000 USD
us-gaap Payments Of Financing Costs
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2484000 USD
us-gaap Payments Of Financing Costs
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us-gaap Payments To Acquire Businesses Net Of Cash Acquired
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us-gaap Payments To Acquire Businesses Net Of Cash Acquired
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0 USD
us-gaap Payments To Acquire Property Plant And Equipment
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5423000 USD
us-gaap Payments To Acquire Property Plant And Equipment
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us-gaap Payments To Develop Software
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3831000 USD
us-gaap Payments To Develop Software
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CY2014Q4 us-gaap Preferred Stock Shares Authorized
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CY2015Q2 us-gaap Preferred Stock Shares Authorized
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CY2014Q4 us-gaap Prepaid Royalties
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us-gaap Proceeds From Divestiture Of Businesses
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0 USD
us-gaap Proceeds From Divestiture Of Businesses
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us-gaap Proceeds From Issuance Of Debt
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201000000 USD
us-gaap Proceeds From Issuance Of Debt
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us-gaap Provision For Doubtful Accounts
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us-gaap Provision For Doubtful Accounts
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us-gaap Repayments Of Debt
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us-gaap Research And Development Expense
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34558000 USD
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us-gaap Research And Development Expense
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CY2014Q4 us-gaap Restricted Cash And Cash Equivalents At Carrying Value
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61055000 USD
CY2014Q4 us-gaap Retained Earnings Accumulated Deficit
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CY2014Q2 us-gaap Revenues
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us-gaap Revenues
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CY2015Q2 us-gaap Revenues
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us-gaap Revenues
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us-gaap Selling And Marketing Expense
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51549000 USD
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us-gaap Selling And Marketing Expense
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58285000 USD
us-gaap Share Based Compensation
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us-gaap Share Based Compensation
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11413000 USD
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us-gaap Stock Issued During Period Value Restricted Stock Award Gross
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CY2013Q4 us-gaap Stockholders Equity
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CY2014Q4 us-gaap Stockholders Equity
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us-gaap Subscription Revenue
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us-gaap Subscription Revenue
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CY2014Q2 us-gaap Technology Services Revenue
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31795000 USD
us-gaap Technology Services Revenue
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59925000 USD
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33667000 USD
us-gaap Technology Services Revenue
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64973000 USD
CY2014Q4 us-gaap Treasury Stock Shares
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CY2014Q4 us-gaap Unrecognized Tax Benefits
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2836000 USD
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us-gaap Weighted Average Number Of Diluted Shares Outstanding
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46289440 shares
CY2014Q2 us-gaap Weighted Average Number Of Shares Outstanding Basic
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45155955 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
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CY2015Q2 us-gaap Weighted Average Number Of Shares Outstanding Basic
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us-gaap Weighted Average Number Of Shares Outstanding Basic
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CY2014Q1 us-gaap Write Off Of Deferred Debt Issuance Cost
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400000 USD
CY2014Q4 us-gaap Unrecognized Tax Benefits That Would Impact Effective Tax Rate
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2800000 USD
CY2015Q2 us-gaap Unrecognized Tax Benefits That Would Impact Effective Tax Rate
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2100000 USD
CY2014Q2 us-gaap Weighted Average Number Of Diluted Shares Outstanding
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45660910 shares
us-gaap Description Of New Accounting Pronouncements Not Yet Adopted
DescriptionOfNewAccountingPronouncementsNotYetAdopted
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:12px;font-size:10pt;"><font style="font-family:Frutiger LT 45 Light,sans-serif;font-size:10pt;font-weight:bold;">Recently issued accounting pronouncements</font></div><div style="line-height:120%;padding-top:12px;font-size:10pt;"><font style="font-family:Frutiger LT 45 Light,sans-serif;font-size:10pt;">In April 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No.&#160;2015-05,&#160;</font><font style="font-family:Frutiger LT 45 Light,sans-serif;font-size:10pt;font-style:italic;">Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40) - Customer's Accounting for Fees Paid in a Cloud Computing Arrangement&#160;(ASU 2015-05)</font><font style="font-family:Frutiger LT 45 Light,sans-serif;font-size:10pt;">. The amendments in this update provide guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, the update specifies that the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. The update further specifies that the customer should account for a cloud computing arrangement as a service contract if the arrangement does not include a software license.&#160;ASU 2015-05&#160;will be effective for the Company in fiscal year 2016. Early adoption is permitted. An entity can elect to adopt the amendments either (1) prospectively to all arrangements entered into or materially modified after the effective date or (2) retrospectively. We are currently evaluating implementation methods and the extent of the impact that implementation of this standard will have upon adoption.</font></div><div style="line-height:120%;padding-top:12px;font-size:10pt;"><font style="font-family:Frutiger LT 45 Light,sans-serif;font-size:10pt;">In April 2015, the FASB issued ASU 2015-03, </font><font style="font-family:Frutiger LT 45 Light,sans-serif;font-size:10pt;font-style:italic;">Interest - Imputation of Interest - Simplifying the Presentation of Debt Issuance Costs</font><font style="font-family:Frutiger LT 45 Light,sans-serif;font-size:10pt;">. ASU 2015-03 sets forth a requirement that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs is not affected by the amendments in this update.&#160;ASU&#160;2015-03 will be effective for the Company in fiscal year 2016. Early adoption is permitted. An entity should apply the new guidance on a retrospective basis, wherein the balance sheet of each individual period presented is adjusted to reflect the period-specific effects of applying the new guidance. We are currently evaluating the extent of the impact that implementation of this standard will have on adoption; however, we will reclassify debt issuance costs attributable to the term portion of our debt liability from other assets and record them as a direct deduction from the carrying amount of our debt liability.</font></div><div style="line-height:120%;padding-top:12px;font-size:10pt;"><font style="font-family:Frutiger LT 45 Light,sans-serif;font-size:10pt;">In May 2014, the FASB issued ASU 2014-09, </font><font style="font-family:Frutiger LT 45 Light,sans-serif;font-size:10pt;font-style:italic;">Revenue from Contracts with Customers (Topic 606)</font><font style="font-family:Frutiger LT 45 Light,sans-serif;font-size:10pt;">. ASU 2014-09 outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and will replace most existing revenue recognition guidance in GAAP when it becomes effective. ASU 2014-09 was originally effective for fiscal years and interim periods within those years beginning after December 15, 2016. An entity should apply ASU 2014-09 either retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying the ASU recognized as an adjustment to the opening balance of retained earnings at the date of initial application. On July 9, 2015, the FASB decided to delay the effective date of the new standard for one year. The new standard now requires application no later than annual reporting periods beginning after December 15, 2017, including interim reporting periods therein; however, public entities are permitted to elect to early adopt the new standard as of the original effective date. We expect the adoption of ASU 2014-09 will impact our consolidated financial statements. We are currently evaluating implementation methods and the extent of the impact that implementation of this standard will have upon adoption.</font></div></div>
us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:18px;font-size:10pt;"><font style="font-family:Frutiger LT 45 Light,sans-serif;font-size:10pt;font-weight:bold;">Use of estimates</font></div><div style="line-height:120%;padding-top:12px;font-size:10pt;"><font style="font-family:Frutiger LT 45 Light,sans-serif;font-size:10pt;">The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting periods. On an ongoing basis, we reconsider and evaluate our estimates and assumptions, including those that impact revenue recognition, long-lived and intangible assets including goodwill, stock-based compensation, the provision for income taxes, deferred taxes, capitalization of software development costs, our allowances for sales returns and doubtful accounts, deferred sales commissions and professional services costs, valuation of derivative instruments, accounting for business combinations and loss contingencies. Changes in the facts or circumstances underlying these estimates could result in material changes and actual results could materially differ from these estimates.</font></div></div>

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