2016 Q2 Form 10-Q Financial Statement

#000141038416000223 Filed on May 10, 2016

View on sec.gov

Income Statement

Concept 2016 Q2 2016 Q1 2015 Q1
Revenue $36.01M $33.76M $24.16M
YoY Change 36.98% 39.75% 43.5%
Cost Of Revenue $18.87M $17.81M $13.27M
YoY Change 33.47% 34.22% 29.96%
Gross Profit $17.14M $15.95M $10.89M
YoY Change 41.08% 46.49% 64.38%
Gross Profit Margin 47.59% 47.23% 45.06%
Selling, General & Admin $17.05M $15.63M $11.32M
YoY Change 38.25% 38.07% 22.67%
% of Gross Profit 99.49% 98.01% 103.99%
Research & Development $7.830M $7.903M $4.151M
YoY Change 63.23% 90.39% 51.72%
% of Gross Profit 45.7% 49.56% 38.14%
Depreciation & Amortization $2.940M $2.927M $1.203M
YoY Change 116.18% 143.31% 20.42%
% of Gross Profit 17.16% 18.36% 11.05%
Operating Expenses $26.76M $25.38M $15.47M
YoY Change 56.21% 64.07% 29.32%
Operating Profit -$9.620M -$9.436M -$4.585M
YoY Change 93.1% 105.8% -14.15%
Interest Expense -$100.0K $0.00 $0.00
YoY Change -100.0%
% of Operating Profit
Other Income/Expense, Net -$85.00K $14.00K -$28.00K
YoY Change -808.33% -150.0% -86.47%
Pretax Income -$9.705M -$9.422M -$4.613M
YoY Change 95.27% 104.25% -16.85%
Income Tax $3.000K $230.0K $32.00K
% Of Pretax Income
Net Earnings -$9.708M -$9.652M -$4.645M
YoY Change 94.86% 107.79% -16.55%
Net Earnings / Revenue -26.96% -28.59% -19.23%
Basic Earnings Per Share
Diluted Earnings Per Share -$246.2K -$248.7K -$129.2K
COMMON SHARES
Basic Shares Outstanding 39.23M shares 38.96M shares 34.94M shares
Diluted Shares Outstanding

Balance Sheet

Concept 2016 Q2 2016 Q1 2015 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $95.60M $105.0M $119.7M
YoY Change -19.32% -12.28% 38.06%
Cash & Equivalents $52.53M $55.26M $94.17M
Short-Term Investments $43.10M $49.70M $25.50M
Other Short-Term Assets $17.90M $14.80M $10.30M
YoY Change 75.49% 43.69% 47.14%
Inventory
Prepaid Expenses
Receivables $10.58M $8.735M $7.225M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $124.1M $128.4M $137.2M
YoY Change -8.54% -6.35% 38.06%
LONG-TERM ASSETS
Property, Plant & Equipment $27.80M $27.49M $19.00M
YoY Change 48.53% 44.68% 32.92%
Goodwill $12.88M $12.90M
YoY Change
Intangibles $16.05M $16.59M
YoY Change
Long-Term Investments
YoY Change
Other Assets $539.0K $615.0K $1.141M
YoY Change -54.59% -46.1% 51.93%
Total Long-Term Assets $76.16M $75.15M $33.89M
YoY Change 123.88% 121.77% 29.37%
TOTAL ASSETS
Total Short-Term Assets $124.1M $128.4M $137.2M
Total Long-Term Assets $76.16M $75.15M $33.89M
Total Assets $200.2M $203.6M $171.0M
YoY Change 18.0% 19.03% 36.25%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $5.513M $4.872M $3.444M
YoY Change 56.31% 41.46% -23.48%
Accrued Expenses $10.75M $10.15M $10.34M
YoY Change 56.54% -1.8% 76.57%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $0.00 $100.0K $300.0K
YoY Change -100.0% -66.67% -50.0%
Total Short-Term Liabilities $52.42M $48.66M $35.48M
YoY Change 61.12% 37.15% 46.49%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $100.0K
YoY Change -100.0% -98.42%
Other Long-Term Liabilities $222.0K $2.710M $709.0K
YoY Change -69.17% 282.23% 927.54%
Total Long-Term Liabilities $222.0K $2.710M $709.0K
YoY Change -69.17% 282.23% -88.91%
TOTAL LIABILITIES
Total Short-Term Liabilities $52.42M $48.66M $35.48M
Total Long-Term Liabilities $222.0K $2.710M $709.0K
Total Liabilities $93.39M $91.82M $61.82M
YoY Change 47.29% 48.53% 21.32%
SHAREHOLDERS EQUITY
Retained Earnings -$108.8M -$99.08M -$69.01M
YoY Change 47.03% 43.57% 37.2%
Common Stock
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost) $200.0K $44.00K $27.00K
YoY Change 640.74% 62.96%
Treasury Stock Shares 8.882K shares 2.000K shares 1.000K shares
Shareholders Equity $106.9M $111.8M $109.2M
YoY Change
Total Liabilities & Shareholders Equity $200.2M $203.6M $171.0M
YoY Change 18.0% 19.03% 36.25%

Cashflow Statement

Concept 2016 Q2 2016 Q1 2015 Q1
OPERATING ACTIVITIES
Net Income -$9.708M -$9.652M -$4.645M
YoY Change 94.86% 107.79% -16.55%
Depreciation, Depletion And Amortization $2.940M $2.927M $1.203M
YoY Change 116.18% 143.31% 20.42%
Cash From Operating Activities -$2.580M $187.0K -$2.644M
YoY Change -186.87% -107.07% -41.22%
INVESTING ACTIVITIES
Capital Expenditures -$5.840M $3.590M $436.0K
YoY Change 210.64% 723.39% -76.17%
Acquisitions $95.00K $0.00
YoY Change
Other Investing Activities $6.530M -$6.280M -$4.650M
YoY Change -127.7% 35.05%
Cash From Investing Activities $680.0K -$10.51M -$5.086M
YoY Change -102.67% 106.57% 177.92%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -840.0K -$1.471M $33.92M
YoY Change -63.79% -104.34% -54.36%
NET CHANGE
Cash From Operating Activities -2.580M $187.0K -$2.644M
Cash From Investing Activities 680.0K -$10.51M -$5.086M
Cash From Financing Activities -840.0K -$1.471M $33.92M
Net Change In Cash -2.740M -$11.79M $26.19M
YoY Change -88.96% -145.02% -61.48%
FREE CASH FLOW
Cash From Operating Activities -$2.580M $187.0K -$2.644M
Capital Expenditures -$5.840M $3.590M $436.0K
Free Cash Flow $3.260M -$3.403M -$3.080M
YoY Change -32.78% 10.49% -51.33%

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CY2015Q4 us-gaap Liabilities Current
LiabilitiesCurrent
45693000 USD
CY2016Q1 us-gaap Liabilities Current
LiabilitiesCurrent
48658000 USD
CY2015Q4 us-gaap Marketable Securities Current
MarketableSecuritiesCurrent
43571000 USD
CY2016Q1 us-gaap Marketable Securities Current
MarketableSecuritiesCurrent
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CY2015Q1 us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
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CY2016Q1 us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
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CY2015Q1 us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
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CY2016Q1 us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
-10506000 USD
CY2015Q1 us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
-2644000 USD
CY2016Q1 us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
187000 USD
CY2015Q1 us-gaap Net Income Loss
NetIncomeLoss
-4645000 USD
CY2016Q1 us-gaap Net Income Loss
NetIncomeLoss
-9652000 USD
CY2015Q1 us-gaap Nonoperating Income Expense
NonoperatingIncomeExpense
-28000 USD
CY2016Q1 us-gaap Nonoperating Income Expense
NonoperatingIncomeExpense
14000 USD
CY2016Q1 us-gaap Number Of Operating Segments
NumberOfOperatingSegments
1 operating_segment
CY2016Q1 us-gaap Number Of Reporting Units
NumberOfReportingUnits
1 reporting_unit
CY2015Q1 us-gaap Operating Expenses
OperatingExpenses
15470000 USD
CY2016Q1 us-gaap Operating Expenses
OperatingExpenses
25381000 USD
CY2015Q1 us-gaap Operating Income Loss
OperatingIncomeLoss
-4585000 USD
CY2016Q1 us-gaap Operating Income Loss
OperatingIncomeLoss
-9436000 USD
CY2016Q1 us-gaap Operating Leases Future Minimum Payments Due
OperatingLeasesFutureMinimumPaymentsDue
54941000 USD
CY2016Q1 us-gaap Operating Leases Future Minimum Payments Due In Five Years
OperatingLeasesFutureMinimumPaymentsDueInFiveYears
5564000 USD
CY2016Q1 us-gaap Operating Leases Future Minimum Payments Due In Four Years
OperatingLeasesFutureMinimumPaymentsDueInFourYears
5540000 USD
CY2016Q1 us-gaap Operating Leases Future Minimum Payments Due In Three Years
OperatingLeasesFutureMinimumPaymentsDueInThreeYears
5538000 USD
CY2016Q1 us-gaap Operating Leases Future Minimum Payments Due In Two Years
OperatingLeasesFutureMinimumPaymentsDueInTwoYears
5498000 USD
CY2016Q1 us-gaap Operating Leases Future Minimum Payments Due Thereafter
OperatingLeasesFutureMinimumPaymentsDueThereafter
29370000 USD
CY2016Q1 us-gaap Operating Leases Future Minimum Payments Remainder Of Fiscal Year
OperatingLeasesFutureMinimumPaymentsRemainderOfFiscalYear
3431000 USD
CY2015Q1 us-gaap Other Amortization Of Deferred Charges
OtherAmortizationOfDeferredCharges
1127000 USD
CY2016Q1 us-gaap Other Amortization Of Deferred Charges
OtherAmortizationOfDeferredCharges
1636000 USD
CY2015Q4 us-gaap Other Assets Noncurrent
OtherAssetsNoncurrent
551000 USD
CY2016Q1 us-gaap Other Assets Noncurrent
OtherAssetsNoncurrent
615000 USD
CY2015Q1 us-gaap Other Comprehensive Income Loss Net Of Tax
OtherComprehensiveIncomeLossNetOfTax
-4636000 USD
CY2016Q1 us-gaap Other Comprehensive Income Loss Net Of Tax
OtherComprehensiveIncomeLossNetOfTax
-9563000 USD
CY2015Q1 us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Net Of Tax
OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax
9000 USD
CY2016Q1 us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Net Of Tax
OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax
89000 USD
CY2015Q4 us-gaap Other Liabilities Noncurrent
OtherLiabilitiesNoncurrent
4254000 USD
CY2016Q1 us-gaap Other Liabilities Noncurrent
OtherLiabilitiesNoncurrent
2710000 USD
CY2015Q1 us-gaap Payments Related To Tax Withholding For Share Based Compensation
PaymentsRelatedToTaxWithholdingForShareBasedCompensation
7000 USD
CY2016Q1 us-gaap Payments Related To Tax Withholding For Share Based Compensation
PaymentsRelatedToTaxWithholdingForShareBasedCompensation
3000 USD
CY2015Q1 us-gaap Payments To Acquire Available For Sale Securities
PaymentsToAcquireAvailableForSaleSecurities
6480000 USD
CY2016Q1 us-gaap Payments To Acquire Available For Sale Securities
PaymentsToAcquireAvailableForSaleSecurities
10962000 USD
CY2015Q1 us-gaap Payments To Acquire Businesses Net Of Cash Acquired
PaymentsToAcquireBusinessesNetOfCashAcquired
0 USD
CY2016Q1 us-gaap Payments To Acquire Businesses Net Of Cash Acquired
PaymentsToAcquireBusinessesNetOfCashAcquired
95000 USD
CY2015Q1 us-gaap Payments To Acquire Intangible Assets
PaymentsToAcquireIntangibleAssets
0 USD
CY2016Q1 us-gaap Payments To Acquire Intangible Assets
PaymentsToAcquireIntangibleAssets
563000 USD
CY2015Q1 us-gaap Payments To Acquire Other Productive Assets
PaymentsToAcquireOtherProductiveAssets
0 USD
CY2016Q1 us-gaap Payments To Acquire Other Productive Assets
PaymentsToAcquireOtherProductiveAssets
75000 USD
CY2015Q1 us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
436000 USD
CY2016Q1 us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
3590000 USD
CY2015Q4 us-gaap Preferred Stock Par Or Stated Value Per Share
PreferredStockParOrStatedValuePerShare
0.0001
CY2016Q1 us-gaap Preferred Stock Par Or Stated Value Per Share
PreferredStockParOrStatedValuePerShare
0.0001
CY2015Q4 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
5000000 shares
CY2016Q1 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
5000000 shares
CY2015Q4 us-gaap Preferred Stock Shares Issued
PreferredStockSharesIssued
0 shares
CY2016Q1 us-gaap Preferred Stock Shares Issued
PreferredStockSharesIssued
0 shares
CY2015Q4 us-gaap Preferred Stock Shares Outstanding
PreferredStockSharesOutstanding
0 shares
CY2016Q1 us-gaap Preferred Stock Shares Outstanding
PreferredStockSharesOutstanding
0 shares
CY2015Q4 us-gaap Preferred Stock Value Outstanding
PreferredStockValueOutstanding
0 USD
CY2016Q1 us-gaap Preferred Stock Value Outstanding
PreferredStockValueOutstanding
0 USD
CY2015Q4 us-gaap Prepaid Expense And Other Assets Current
PrepaidExpenseAndOtherAssetsCurrent
3058000 USD
CY2016Q1 us-gaap Prepaid Expense And Other Assets Current
PrepaidExpenseAndOtherAssetsCurrent
5153000 USD
CY2015Q1 us-gaap Proceeds From Issuance Initial Public Offering
ProceedsFromIssuanceInitialPublicOffering
32811000 USD
CY2016Q1 us-gaap Proceeds From Issuance Initial Public Offering
ProceedsFromIssuanceInitialPublicOffering
-8000 USD
CY2015Q1 us-gaap Proceeds From Sale Of Available For Sale Securities
ProceedsFromSaleOfAvailableForSaleSecurities
1830000 USD
CY2016Q1 us-gaap Proceeds From Sale Of Available For Sale Securities
ProceedsFromSaleOfAvailableForSaleSecurities
4779000 USD
CY2015Q1 us-gaap Proceeds From Stock Options Exercised
ProceedsFromStockOptionsExercised
1253000 USD
CY2016Q1 us-gaap Proceeds From Stock Options Exercised
ProceedsFromStockOptionsExercised
727000 USD
CY2015Q4 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
24440000 USD
CY2016Q1 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
27491000 USD
CY2015Q1 us-gaap Reimbursement Revenue
ReimbursementRevenue
200000 USD
CY2016Q1 us-gaap Reimbursement Revenue
ReimbursementRevenue
300000 USD
CY2015Q1 us-gaap Repayments Of Long Term Capital Lease Obligations
RepaymentsOfLongTermCapitalLeaseObligations
136000 USD
CY2016Q1 us-gaap Repayments Of Long Term Capital Lease Obligations
RepaymentsOfLongTermCapitalLeaseObligations
87000 USD
CY2015Q1 us-gaap Repayments Of Other Debt
RepaymentsOfOtherDebt
0 USD
CY2016Q1 us-gaap Repayments Of Other Debt
RepaymentsOfOtherDebt
2100000 USD
CY2015Q1 us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
4151000 USD
CY2016Q1 us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
7903000 USD
CY2015Q4 us-gaap Restricted Cash And Cash Equivalents
RestrictedCashAndCashEquivalents
2123000 USD
CY2016Q1 us-gaap Restricted Cash And Cash Equivalents
RestrictedCashAndCashEquivalents
1867000 USD
CY2015Q4 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-89429000 USD
CY2016Q1 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-99081000 USD
CY2015Q1 us-gaap Revenue Recognition Sales Returns Reserve For Sales Returns
RevenueRecognitionSalesReturnsReserveForSalesReturns
-15000 USD
CY2016Q1 us-gaap Revenue Recognition Sales Returns Reserve For Sales Returns
RevenueRecognitionSalesReturnsReserveForSalesReturns
-24000 USD
CY2015Q1 us-gaap Revenues
Revenues
24157000 USD
CY2016Q1 us-gaap Revenues
Revenues
33759000 USD
CY2015Q1 us-gaap Selling And Marketing Expense
SellingAndMarketingExpense
6194000 USD
CY2016Q1 us-gaap Selling And Marketing Expense
SellingAndMarketingExpense
8207000 USD
CY2015Q1 us-gaap Share Based Compensation
ShareBasedCompensation
1322000 USD
CY2016Q1 us-gaap Share Based Compensation
ShareBasedCompensation
2605000 USD
CY2016Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Forfeitures In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresInPeriod
16000 shares
CY2016Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
5212000 shares
CY2015Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice
8.84
CY2016Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Gross
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross
441000 shares
CY2015Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
5044000 shares
CY2016Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice
10.00
CY2016Q1 us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Exercises In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice
2.94
CY2016Q1 us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Forfeitures In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsForfeituresInPeriodWeightedAverageExercisePrice
12.01
CY2016Q1 us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Grants In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice
19.26
CY2016Q1 us-gaap Stock Issued During Period Shares Stock Options Exercised
StockIssuedDuringPeriodSharesStockOptionsExercised
257000 shares
CY2015Q4 us-gaap Stockholders Equity
StockholdersEquity
117974000 USD
CY2016Q1 us-gaap Stockholders Equity
StockholdersEquity
111772000 USD
CY2015Q4 us-gaap Treasury Stock Shares
TreasuryStockShares
2000 shares
CY2016Q1 us-gaap Treasury Stock Shares
TreasuryStockShares
2000 shares
CY2015Q4 us-gaap Treasury Stock Value
TreasuryStockValue
41000 USD
CY2016Q1 us-gaap Treasury Stock Value
TreasuryStockValue
44000 USD
CY2015Q4 us-gaap Unbilled Receivables Current
UnbilledReceivablesCurrent
3400000 USD
CY2016Q1 us-gaap Unbilled Receivables Current
UnbilledReceivablesCurrent
3500000 USD
CY2016Q1 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
0 USD
CY2015Q1 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
35633000 shares
CY2016Q1 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
39024000 shares
CY2016Q1 us-gaap Advertising Cost Policy Expensed Advertising Cost
AdvertisingCostPolicyExpensedAdvertisingCost
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">All advertising costs of the Company are expensed the first time the advertising takes place.</font></div></div>
CY2016Q1 us-gaap Concentration Risk Credit Risk
ConcentrationRiskCreditRisk
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents, restricted cash, investments and accounts receivable. The Company's cash and cash equivalents, restricted cash and investments are placed with high credit quality financial institutions and issuers, and at times may exceed federally-insured limits. The Company has not experienced any loss relating to cash and cash equivalents or restricted cash in these accounts. The Company provides credit, in the normal course of business, to a number of its customers. The Company performs periodic credit evaluations of its customers' financial condition and generally does not require collateral. No individual customer accounted for 10% or more of revenues for each of the three month periods ended </font><font style="font-family:inherit;font-size:10pt;">March 31, 2016</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">2015</font><font style="font-family:inherit;font-size:10pt;">. No individual customer accounted for 10% or more of accounts receivable, net, as of </font><font style="font-family:inherit;font-size:10pt;">March 31, 2016</font><font style="font-family:inherit;font-size:10pt;"> or </font><font style="font-family:inherit;font-size:10pt;">December&#160;31, 2015</font><font style="font-family:inherit;font-size:10pt;">.<br clear="none"/> <br clear="none"/></font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;"></font></div></div>
CY2016Q1 us-gaap Revenue Recognition Deferred Revenue
RevenueRecognitionDeferredRevenue
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Deferred revenues primarily consist of amounts that have been billed to or received from customers in advance of revenue recognition and prepayments received from customers in advance for implementation, maintenance and other services, as well as initial subscription fees. The Company recognizes deferred revenues as revenues when the services are performed and the corresponding revenue recognition criteria are met. Customer prepayments are generally applied against invoices issued to customers when services are performed and billed. Deferred revenues that are expected to be recognized as revenues during the succeeding twelve-month period are recorded in current liabilities as deferred revenues, current portion, and the remaining portion is recorded in long-term liabilities as deferred revenues, net of current portion.</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></div>
CY2016Q1 us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The preparation of the accompanying interim unaudited condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the interim unaudited condensed consolidated financial statements, and the reported amounts of revenues and expenses. Significant items subject to such estimates include revenue recognition, stock-based compensation, the carrying value of goodwill, the fair value of acquired intangibles, the useful lives of property and equipment and long-lived intangible assets, accruals for compensation for certain employees and shareholders of recent acquisitions, and income taxes. In accordance with GAAP, management bases its estimates on historical experience and on various other assumptions that management believes are reasonable under the circumstances. Management regularly evaluates its estimates and assumptions using historical experience and other factors; however, actual results could differ significantly from those estimates.</font></div></div>

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