| Quarterly Results of Operations-Unaudited |
|
15.
|
Quarterly Results of Operations—Unaudited
|
The following table sets forth certain unaudited quarterly results of operations for fiscal 2018 and fiscal 2017. In the opinion of management, this information has been prepared on the same basis as the audited consolidated financial statements and all necessary adjustments, consisting only of normal recurring adjustments, have been included in the amounts stated below to present fairly the quarterly information when read in conjunction with the audited consolidated financial statements and notes thereto included elsewhere in this Form 10-K. The quarterly operating results are not necessarily indicative of future results of operations.
|
|
|
Fiscal Year Ended January 31, 2018
|
|
|
|
|
Q1
|
|
|
Q2
|
|
|
Q3
|
|
|
Q4
|
|
|
|
|
(Amounts in thousands, except per share data)
|
|
|
Revenue
|
|
$
|
16,667
|
|
|
$
|
17,225
|
|
|
$
|
23,430
|
|
|
$
|
22,945
|
|
|
Gross profit
|
|
|
9,877
|
|
|
|
11,416
|
|
|
|
16,364
|
|
|
|
16,287
|
|
|
Operating expenses
|
|
|
15,345
|
|
|
|
13,499
|
|
|
|
15,444
|
|
|
|
15,066
|
|
|
Net (loss) income (1)
|
|
|
(5,371
|
)
|
|
|
(1,529
|
)
|
|
|
(220
|
)
|
|
|
20,618
|
|
|
(Loss) income per share (2):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.15
|
)
|
|
$
|
(0.05
|
)
|
|
$
|
(0.00
|
)
|
|
$
|
0.58
|
|
|
Diluted
|
|
$
|
(0.15
|
)
|
|
$
|
(0.05
|
)
|
|
$
|
(0.00
|
)
|
|
$
|
0.58
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year Ended January 31, 2017
|
|
|
|
|
Q1
|
|
|
Q2
|
|
|
Q3
|
|
|
Q4
|
|
|
|
|
(Amounts in thousands, except per share data)
|
|
|
Revenue
|
|
$
|
21,570
|
|
|
$
|
18,452
|
|
|
$
|
19,961
|
|
|
$
|
23,812
|
|
|
Gross profit
|
|
|
9,662
|
|
|
|
8,023
|
|
|
|
10,378
|
|
|
|
16,242
|
|
|
Operating expenses (3)
|
|
|
19,237
|
|
|
|
19,691
|
|
|
|
18,813
|
|
|
|
40,710
|
|
|
Net loss (1)
|
|
|
(8,907
|
)
|
|
|
(26,884
|
)
|
|
|
(8,082
|
)
|
|
|
(27,376
|
)
|
|
Loss per share (2):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.26
|
)
|
|
$
|
(0.77
|
)
|
|
$
|
(0.23
|
)
|
|
$
|
(0.78
|
)
|
|
Diluted
|
|
$
|
(0.26
|
)
|
|
$
|
(0.77
|
)
|
|
$
|
(0.23
|
)
|
|
$
|
(0.78
|
)
|
|
|
(1)
|
Net income in the fourth quarter of fiscal 2018 includes a tax benefit of $14.7 million resulting from the re-measurement of the deferred tax liability in connection with the outside basis of our foreign subsidiaries and a $2.6 million gain on the sale of our investment in Layer 3. Net loss in the second quarter of fiscal 2017 includes a tax provision of $14.6 million related to foreign income taxes on $58.6 million of undistributed earnings. Also, the fourth quarter of fiscal 2017 includes a $23.7 million loss on impairment of long-lived assets as we found during “Step 2” of our annual goodwill impairment test that the carrying value of our goodwill was greater than the implied fair value. As a result, we recorded an impairment charge of $23.5 million. In addition, we fully impaired the fair market value of our facility in Greenville, New Hampshire by recording an impairment charge of $0.2 million as we feel that the sale of this facility is not imminent due to the facility’s location and the market conditions in the area. Finally, we also recorded an impairment charge of $0.5 million to write down an investment in affiliate whose fair value was determined to be lower than its carrying value.
|
|
|
(2)
|
The sum of per share data may not agree to annual amounts due to rounding.
|
|
|
(3)
|
Effective February 1, 2017, the Company changed how it classifies costs associated with its solution architect employees. In fiscal 2017, all solution architect costs were classified as cost of revenues. However, beginning in fiscal 2018, the Company began reflecting in cost of revenues only those costs associated with revenue-generating projects, based on the hours worked by solution architect employees. Solution architect costs that are not associated with revenue-generating projects are recognized as selling and marketing expenses since these employees are involved in pre-sale and other customer-facing activities. We have adjusted prior fiscal year amounts to conform to the current fiscal year presentation. The effect of this change in methodology, which is a decrease to cost of revenue and an increase to selling and marketing expenses, is reflected in our current statements of operations and comprehensive income (loss) for fiscal 2017. See Note 2, “Summary of Significant Accounting Policies – Basis of Presentation and Principles of Consolidation,” for more information.
|
|