2017 Q2 Form 10-Q Financial Statement

#000141038417000070 Filed on May 04, 2017

View on sec.gov

Income Statement

Concept 2017 Q2 2017 Q1 2016 Q1
Revenue $47.63M $44.53M $33.76M
YoY Change 32.27% 31.92% 39.75%
Cost Of Revenue $24.33M $22.77M $17.81M
YoY Change 28.92% 27.83% 34.22%
Gross Profit $23.30M $21.76M $15.95M
YoY Change 35.96% 36.48% 46.49%
Gross Profit Margin 48.92% 48.87% 47.23%
Selling, General & Admin $20.36M $18.33M $15.63M
YoY Change 19.45% 17.29% 38.07%
% of Gross Profit 87.41% 84.23% 98.01%
Research & Development $9.922M $9.651M $7.903M
YoY Change 26.72% 22.12% 90.39%
% of Gross Profit 42.59% 44.35% 49.56%
Depreciation & Amortization $3.700M $3.525M $2.927M
YoY Change 25.85% 20.43% 143.31%
% of Gross Profit 15.88% 16.2% 18.36%
Operating Expenses $31.01M $28.70M $25.38M
YoY Change 15.9% 13.08% 64.07%
Operating Profit -$7.713M -$6.938M -$9.436M
YoY Change -19.82% -26.47% 105.8%
Interest Expense $100.0K $0.00 $0.00
YoY Change -200.0%
% of Operating Profit
Other Income/Expense, Net $109.0K $34.00K $14.00K
YoY Change -228.24% 142.86% -150.0%
Pretax Income -$7.604M -$6.904M -$9.422M
YoY Change -21.65% -26.72% 104.25%
Income Tax $217.0K $136.0K $230.0K
% Of Pretax Income
Net Earnings -$7.821M -$7.040M -$9.652M
YoY Change -19.44% -27.06% 107.79%
Net Earnings / Revenue -16.42% -15.81% -28.59%
Basic Earnings Per Share
Diluted Earnings Per Share -$189.8K -$172.4K -$248.7K
COMMON SHARES
Basic Shares Outstanding 40.95M shares 40.47M shares 38.96M shares
Diluted Shares Outstanding

Balance Sheet

Concept 2017 Q2 2017 Q1 2016 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $78.70M $82.20M $105.0M
YoY Change -17.68% -21.71% -12.28%
Cash & Equivalents $34.47M $42.76M $55.26M
Short-Term Investments $44.20M $39.40M $49.70M
Other Short-Term Assets $18.60M $19.00M $14.80M
YoY Change 3.91% 28.38% 43.69%
Inventory
Prepaid Expenses
Receivables $15.01M $8.449M $8.735M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $112.2M $109.6M $128.4M
YoY Change -9.55% -14.63% -6.35%
LONG-TERM ASSETS
Property, Plant & Equipment $31.57M $31.70M $27.49M
YoY Change 13.53% 15.31% 44.68%
Goodwill $12.88M $12.90M $12.90M
YoY Change 0.0% 0.0%
Intangibles $14.72M $15.91M $16.59M
YoY Change -8.32% -4.12%
Long-Term Investments
YoY Change
Other Assets $513.0K $496.0K $615.0K
YoY Change -4.82% -19.35% -46.1%
Total Long-Term Assets $81.16M $81.94M $75.15M
YoY Change 6.57% 9.04% 121.77%
TOTAL ASSETS
Total Short-Term Assets $112.2M $109.6M $128.4M
Total Long-Term Assets $81.16M $81.94M $75.15M
Total Assets $193.4M $191.6M $203.6M
YoY Change -3.42% -5.9% 19.03%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $5.306M $5.769M $4.872M
YoY Change -3.75% 18.41% 41.46%
Accrued Expenses $5.863M $9.583M $10.15M
YoY Change -45.48% -5.6% -1.8%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $100.0K
YoY Change -66.67%
Total Short-Term Liabilities $51.96M $51.62M $48.66M
YoY Change -0.88% 6.08% 37.15%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $0.00
YoY Change -100.0%
Other Long-Term Liabilities $586.0K $473.0K $2.710M
YoY Change 163.96% -82.55% 282.23%
Total Long-Term Liabilities $586.0K $473.0K $2.710M
YoY Change 163.96% -82.55% 282.23%
TOTAL LIABILITIES
Total Short-Term Liabilities $51.96M $51.62M $48.66M
Total Long-Term Liabilities $586.0K $473.0K $2.710M
Total Liabilities $93.05M $91.21M $91.82M
YoY Change -0.37% -0.67% 48.53%
SHAREHOLDERS EQUITY
Retained Earnings -$140.8M -$133.0M -$99.08M
YoY Change 29.43% 34.22% 43.57%
Common Stock
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost) $597.0K $455.0K $44.00K
YoY Change 198.5% 934.09% 62.96%
Treasury Stock Shares 20.84K shares 17.00K shares 2.000K shares
Shareholders Equity $100.3M $100.4M $111.8M
YoY Change
Total Liabilities & Shareholders Equity $193.4M $191.6M $203.6M
YoY Change -3.42% -5.9% 19.03%

Cashflow Statement

Concept 2017 Q2 2017 Q1 2016 Q1
OPERATING ACTIVITIES
Net Income -$7.821M -$7.040M -$9.652M
YoY Change -19.44% -27.06% 107.79%
Depreciation, Depletion And Amortization $3.700M $3.525M $2.927M
YoY Change 25.85% 20.43% 143.31%
Cash From Operating Activities $410.0K -$10.67M $187.0K
YoY Change -115.89% -5804.81% -107.07%
INVESTING ACTIVITIES
Capital Expenditures -$2.500M $5.361M $3.590M
YoY Change -57.19% 49.33% 723.39%
Acquisitions $1.316M $95.00K
YoY Change 1285.26%
Other Investing Activities -$8.990M $1.450M -$6.280M
YoY Change -237.67% -123.09% 35.05%
Cash From Investing Activities -$11.48M -$4.439M -$10.51M
YoY Change -1788.24% -57.75% 106.57%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 2.790M $2.990M -$1.471M
YoY Change -432.14% -303.26% -104.34%
NET CHANGE
Cash From Operating Activities 410.0K -$10.67M $187.0K
Cash From Investing Activities -11.48M -$4.439M -$10.51M
Cash From Financing Activities 2.790M $2.990M -$1.471M
Net Change In Cash -8.280M -$12.12M -$11.79M
YoY Change 202.19% 2.77% -145.02%
FREE CASH FLOW
Cash From Operating Activities $410.0K -$10.67M $187.0K
Capital Expenditures -$2.500M $5.361M $3.590M
Free Cash Flow $2.910M -$16.03M -$3.403M
YoY Change -10.74% 371.03% 10.49%

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IncreaseDecreaseInAccruedLiabilities
942000 USD
CY2017Q1 us-gaap Increase Decrease In Accrued Liabilities
IncreaseDecreaseInAccruedLiabilities
-8756000 USD
CY2016Q1 us-gaap Increase Decrease In Deferred Revenue
IncreaseDecreaseInDeferredRevenue
4026000 USD
CY2016Q1 us-gaap Interest Income Other
InterestIncomeOther
83000 USD
CY2017Q1 us-gaap Interest Income Other
InterestIncomeOther
108000 USD
CY2016Q1 us-gaap Interest Paid
InterestPaid
50000 USD
CY2017Q1 us-gaap Interest Paid
InterestPaid
43000 USD
CY2016Q1 us-gaap Investment Income Amortization Of Premium
InvestmentIncomeAmortizationOfPremium
102000 USD
CY2017Q1 us-gaap Investment Income Amortization Of Premium
InvestmentIncomeAmortizationOfPremium
69000 USD
CY2016Q1 us-gaap Lease And Rental Expense
LeaseAndRentalExpense
900000 USD
CY2017Q1 us-gaap Lease And Rental Expense
LeaseAndRentalExpense
1100000 USD
CY2016Q4 us-gaap Liabilities
Liabilities
100745000 USD
CY2017Q1 us-gaap Liabilities
Liabilities
91206000 USD
CY2016Q4 us-gaap Liabilities And Stockholders Equity
LiabilitiesAndStockholdersEquity
200980000 USD
CY2017Q1 us-gaap Liabilities And Stockholders Equity
LiabilitiesAndStockholdersEquity
191586000 USD
CY2016Q4 us-gaap Liabilities Current
LiabilitiesCurrent
59211000 USD
CY2017Q1 us-gaap Payments To Acquire Available For Sale Securities
PaymentsToAcquireAvailableForSaleSecurities
2939000 USD
CY2016Q1 us-gaap Payments To Acquire Businesses Net Of Cash Acquired
PaymentsToAcquireBusinessesNetOfCashAcquired
95000 USD
CY2016Q1 us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
-1471000 USD
CY2017Q1 us-gaap Other Assets Noncurrent
OtherAssetsNoncurrent
496000 USD
CY2016Q1 us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Net Of Tax
OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax
89000 USD
CY2017Q1 us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Net Of Tax
OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax
-1000 USD
CY2016Q4 us-gaap Other Liabilities Noncurrent
OtherLiabilitiesNoncurrent
361000 USD
CY2017Q1 us-gaap Other Liabilities Noncurrent
OtherLiabilitiesNoncurrent
473000 USD
CY2016Q1 us-gaap Payments Related To Tax Withholding For Share Based Compensation
PaymentsRelatedToTaxWithholdingForShareBasedCompensation
3000 USD
CY2017Q1 us-gaap Payments Related To Tax Withholding For Share Based Compensation
PaymentsRelatedToTaxWithholdingForShareBasedCompensation
39000 USD
CY2016Q1 us-gaap Payments To Acquire Available For Sale Securities
PaymentsToAcquireAvailableForSaleSecurities
10962000 USD
CY2017Q1 us-gaap Other Amortization Of Deferred Charges
OtherAmortizationOfDeferredCharges
1719000 USD
CY2016Q4 us-gaap Other Assets Noncurrent
OtherAssetsNoncurrent
526000 USD
CY2017Q1 us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
2990000 USD
CY2016Q1 us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
-10506000 USD
CY2017Q1 us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
-4439000 USD
CY2016Q1 us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
187000 USD
CY2017Q1 us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
-10668000 USD
CY2016Q1 us-gaap Net Income Loss
NetIncomeLoss
-9652000 USD
CY2017Q1 us-gaap Net Income Loss
NetIncomeLoss
-7040000 USD
CY2016Q1 us-gaap Nonoperating Income Expense
NonoperatingIncomeExpense
14000 USD
CY2017Q1 us-gaap Nonoperating Income Expense
NonoperatingIncomeExpense
34000 USD
CY2017Q1 us-gaap Number Of Operating Segments
NumberOfOperatingSegments
1 operating_segment
CY2017Q1 us-gaap Number Of Reporting Units
NumberOfReportingUnits
1 reporting_unit
CY2016Q1 us-gaap Operating Expenses
OperatingExpenses
25381000 USD
CY2017Q1 us-gaap Operating Expenses
OperatingExpenses
28700000 USD
CY2016Q1 us-gaap Operating Income Loss
OperatingIncomeLoss
-9436000 USD
CY2017Q1 us-gaap Operating Income Loss
OperatingIncomeLoss
-6938000 USD
CY2016Q1 us-gaap Other Amortization Of Deferred Charges
OtherAmortizationOfDeferredCharges
1636000 USD
CY2017Q1 us-gaap Payments To Acquire Businesses Net Of Cash Acquired
PaymentsToAcquireBusinessesNetOfCashAcquired
1316000 USD
CY2016Q1 us-gaap Payments To Acquire Intangible Assets
PaymentsToAcquireIntangibleAssets
563000 USD
CY2017Q1 us-gaap Payments To Acquire Intangible Assets
PaymentsToAcquireIntangibleAssets
532000 USD
CY2016Q1 us-gaap Payments To Acquire Other Productive Assets
PaymentsToAcquireOtherProductiveAssets
75000 USD
CY2017Q1 us-gaap Payments To Acquire Other Productive Assets
PaymentsToAcquireOtherProductiveAssets
0 USD
CY2017Q1 us-gaap Payments To Acquire Productive Assets
PaymentsToAcquireProductiveAssets
1500000 USD
CY2016Q1 us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
3590000 USD
CY2017Q1 us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
5361000 USD
CY2016Q4 us-gaap Preferred Stock Par Or Stated Value Per Share
PreferredStockParOrStatedValuePerShare
0.0001
CY2017Q1 us-gaap Preferred Stock Par Or Stated Value Per Share
PreferredStockParOrStatedValuePerShare
0.0001
CY2016Q4 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
5000000 shares
CY2017Q1 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
5000000 shares
CY2016Q4 us-gaap Preferred Stock Shares Issued
PreferredStockSharesIssued
0 shares
CY2017Q1 us-gaap Preferred Stock Shares Issued
PreferredStockSharesIssued
0 shares
CY2016Q4 us-gaap Preferred Stock Shares Outstanding
PreferredStockSharesOutstanding
0 shares
CY2017Q1 us-gaap Preferred Stock Shares Outstanding
PreferredStockSharesOutstanding
0 shares
CY2016Q4 us-gaap Preferred Stock Value Outstanding
PreferredStockValueOutstanding
0 USD
CY2017Q1 us-gaap Preferred Stock Value Outstanding
PreferredStockValueOutstanding
0 USD
CY2016Q4 us-gaap Prepaid Expense And Other Assets Current
PrepaidExpenseAndOtherAssetsCurrent
3215000 USD
CY2017Q1 us-gaap Prepaid Expense And Other Assets Current
PrepaidExpenseAndOtherAssetsCurrent
6017000 USD
CY2016Q1 us-gaap Proceeds From Issuance Initial Public Offering
ProceedsFromIssuanceInitialPublicOffering
-8000 USD
CY2017Q1 us-gaap Proceeds From Issuance Initial Public Offering
ProceedsFromIssuanceInitialPublicOffering
0 USD
CY2016Q1 us-gaap Proceeds From Sale Of Available For Sale Securities
ProceedsFromSaleOfAvailableForSaleSecurities
4779000 USD
CY2017Q1 us-gaap Proceeds From Sale Of Available For Sale Securities
ProceedsFromSaleOfAvailableForSaleSecurities
5709000 USD
CY2016Q1 us-gaap Proceeds From Stock Options Exercised
ProceedsFromStockOptionsExercised
727000 USD
CY2017Q1 us-gaap Proceeds From Stock Options Exercised
ProceedsFromStockOptionsExercised
3029000 USD
CY2016Q4 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
27480000 USD
CY2017Q1 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
31701000 USD
CY2017Q1 us-gaap Reimbursement Revenue
ReimbursementRevenue
400000 USD
CY2016Q1 us-gaap Repayments Of Long Term Capital Lease Obligations
RepaymentsOfLongTermCapitalLeaseObligations
87000 USD
CY2017Q1 us-gaap Repayments Of Long Term Capital Lease Obligations
RepaymentsOfLongTermCapitalLeaseObligations
0 USD
CY2016Q1 us-gaap Repayments Of Other Debt
RepaymentsOfOtherDebt
2100000 USD
CY2017Q1 us-gaap Repayments Of Other Debt
RepaymentsOfOtherDebt
0 USD
CY2016Q1 us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
7903000 USD
CY2017Q1 us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
9651000 USD
CY2016Q4 us-gaap Restricted Cash And Cash Equivalents
RestrictedCashAndCashEquivalents
1315000 USD
CY2016Q1 us-gaap Reimbursement Revenue
ReimbursementRevenue
300000 USD
CY2016Q4 us-gaap Treasury Stock Shares
TreasuryStockShares
16000 shares
CY2017Q1 us-gaap Treasury Stock Shares
TreasuryStockShares
17000 shares
CY2017Q1 us-gaap Restricted Cash And Cash Equivalents
RestrictedCashAndCashEquivalents
1315000 USD
CY2016Q4 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-125783000 USD
CY2017Q1 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-132990000 USD
CY2016Q1 us-gaap Revenues
Revenues
33759000 USD
CY2017Q1 us-gaap Revenues
Revenues
44534000 USD
CY2016Q1 us-gaap Selling And Marketing Expense
SellingAndMarketingExpense
8207000 USD
CY2017Q1 us-gaap Selling And Marketing Expense
SellingAndMarketingExpense
9878000 USD
CY2016Q1 us-gaap Share Based Compensation
ShareBasedCompensation
2605000 USD
CY2017Q1 us-gaap Share Based Compensation
ShareBasedCompensation
4197000 USD
CY2017Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Forfeitures In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresInPeriod
94000 shares
CY2017Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Gross
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross
571000 shares
CY2016Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
4434000 shares
CY2017Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
4504000 shares
CY2016Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice
12.91
CY2017Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice
16.32
CY2017Q1 us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Exercises In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice
7.43
CY2017Q1 us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Forfeitures In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsForfeituresInPeriodWeightedAverageExercisePrice
12.38
CY2017Q1 us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Grants In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice
35.77
CY2017Q1 us-gaap Stock Issued During Period Shares Stock Options Exercised
StockIssuedDuringPeriodSharesStockOptionsExercised
407000 shares
CY2016Q4 us-gaap Stockholders Equity
StockholdersEquity
100235000 USD
CY2017Q1 us-gaap Stockholders Equity
StockholdersEquity
100380000 USD
CY2016Q4 us-gaap Treasury Stock Value
TreasuryStockValue
417000 USD
CY2017Q1 us-gaap Treasury Stock Value
TreasuryStockValue
455000 USD
CY2016Q4 us-gaap Unbilled Receivables Current
UnbilledReceivablesCurrent
1200000 USD
CY2017Q1 us-gaap Unbilled Receivables Current
UnbilledReceivablesCurrent
1100000 USD
CY2017Q1 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
0 USD
CY2016Q1 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
39024000 shares
CY2017Q1 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
40630000 shares
CY2017Q1 us-gaap Advertising Cost Policy Expensed Advertising Cost
AdvertisingCostPolicyExpensedAdvertisingCost
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:10px;padding-top:10px;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>
CY2017Q1 us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:10px;padding-top:10px;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 capitalization of software development costs, 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>
CY2017Q1 us-gaap Concentration Risk Credit Risk
ConcentrationRiskCreditRisk
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:10px;padding-top:10px;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.</font></div></div>
CY2017Q1 us-gaap Revenue Recognition Deferred Revenue
RevenueRecognitionDeferredRevenue
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:10px;padding-top:10px;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>

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