| Summary of Impact of Adoption of Accounting Standards |
The cumulative effect of the adoption on our condensed consolidated
balance sheet, by applying the modified retrospective method as of
January 1, 2018, is as follows (in thousands):
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As Reported |
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As Adjusted |
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December 31, 2017 |
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Cumulative
Adjustments |
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January 1,
2018 |
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Assets:
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Accounts receivable, net(1)
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$ |
34,461 |
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$ |
7,052 |
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$ |
41,513 |
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Prepaid expenses and other current assets(2)
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5,714 |
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427 |
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6,141 |
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Other assets(3)
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3,112 |
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650 |
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3,762 |
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Liabilities:
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Deferred revenue
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15,102 |
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(2,923 |
) |
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12,179 |
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Other long-term liabilities(4)
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6,428 |
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(825 |
) |
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5,603 |
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Deferred income taxes
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28,004 |
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2,927 |
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30,931 |
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Stockholders’ equity:
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Retained earnings
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97,815 |
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8,950 |
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106,765 |
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| (1) |
Contract assets, short term are
included in the accounts receivables, net of allowance for doubtful
accounts in our condensed consolidated balance sheet. |
| (2) |
Capitalized contract costs, short
term are included in the prepaid expenses and other current assets
in our condensed consolidated balance sheet. |
| (3) |
Capitalized contract costs, long term
are included in other assets in our condensed consolidated balance
sheet. |
| (4) |
Deferred revenue, long term is
included in other long-term liabilities in our condensed
consolidated balance sheet. |
The following reflects the Company’s condensed consolidated
balance sheet and condensed consolidated statement of operations on
an as reported basis and as if we had continued to recognize
revenue under the guidance of ASC 985-605, Software Revenue
Recognition, which is also referred to herein as “legacy
GAAP” (in thousands):
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March 31, 2018 |
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As Reported |
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Balances without
adoption of ASC 606 |
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Difference |
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Assets:
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Accounts receivable, net
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$ |
34,064 |
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$ |
28,335 |
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$ |
5,729 |
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Prepaid expenses and other current assets
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6,455 |
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6,347 |
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108 |
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Other assets
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4,750 |
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3,670 |
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1,080 |
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Liabilities:
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Accrued expenses and other current liabilities
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38,127 |
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35,966 |
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2,161 |
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Deferred revenue
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15,889 |
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17,549 |
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(1,660 |
) |
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Other long-term liabilities
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5,830 |
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6,298 |
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(468 |
) |
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Deferred income taxes
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27,135 |
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26,951 |
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|
184 |
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Stockholders’ equity:
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Retained earnings
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100,673 |
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93,973 |
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|
6,700 |
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For the three months ended
March 31, 2018 |
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As Reported |
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Balances without
adoption of ASC 606 |
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Difference |
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License revenue
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$ |
45,867 |
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$ |
43,568 |
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$ |
2,299 |
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Service revenue
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10,816 |
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10,618 |
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|
198 |
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Cost of revenue—license
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9,612 |
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7,451 |
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2,161 |
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Marketing and selling
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20,065 |
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20,519 |
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(454 |
) |
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Benefit from income taxes
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(2,465 |
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(2,649 |
) |
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184 |
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Net loss
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(1,199 |
) |
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(1,805 |
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|
606 |
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Net loss—basic and diluted
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$ |
(0.03 |
) |
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$ |
(0.05 |
) |
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$ |
0.02 |
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