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REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS | 3 Months Ended
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Jun. 30, 2013
REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS [Abstract] |
REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS | NOTE 2 REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS During the first quarter of fiscal 2014, we identified an error related to certain allowances recorded for estimated future price adjustments on products and services sold to our customers that had accumulated over a significant number of years, resulting in a $1.5 million cumulative overstatement of revenue and accounts receivable at April 1, 2013. Revenue for fiscal 2013, 2012 and 2011 was $0.1 million overstated, $0.1 million understated and $0.1 million overstated, respectively, for this error. In addition, we identified a $0.7 million under accrual of sales commission expense for the fourth quarter of fiscal 2013 that was not recorded in fiscal 2013. The cumulative effect of recording these two items in the first quarter of fiscal 2014 would have been a $2.2 million reduction in net income. In addition, we had previously identified the following items: A $0.7 million overstatement of DXi OEM software revenue in fiscal 2010 that was corrected as an out-of-period adjustment in fiscal 2011; A $0.5 million understatement of royalty revenue in fiscal 2011 that was corrected as an out-of-period adjustment in fiscal 2012; and A $0.9 million understatement of payroll tax expense on commissions that was corrected as an out-of-period adjustment in fiscal 2013. Of the cumulative adjustment, $0.3 million related to fiscal 2012 and $0.6 million related to periods prior to fiscal 2011. We evaluated these errors in accordance with the Securities and Exchange Commission ("SEC") Staff Accounting Bulletin No. 99 and determined that the errors were not material to our results of operations, financial position or cash flows in our previously issued financial statements, and therefore amendments of previously filed reports are not required. However, if the entire correction of the error was recorded during the first quarter of fiscal 2014, the impact would be significant to the quarter ended June 30, 2013. As a result, we have determined that it is appropriate to revise our prior period financial statements in accordance with the SEC's Staff Accounting Bulletin No. 108 for the items discussed above. The revisions to correct these items in the applicable prior periods are reflected in the financial information herein and will be reflected in future filings containing such financial information. The revisions had no net impact on our Consolidated Statements of Cash Flows or net income (loss) per diluted share for any prior period. The impact of these revisions to our Consolidated Balance Sheets at March 31, 2013 and 2012; our Consolidated Statements of Operations for the years ended March 31, 2013, 2012 and 2011; and our Consolidated Statements of Operations for each quarter of fiscal 2013 and 2012 is summarized as follows (in thousands): Consolidated Balance Sheets The As Reported column includes certain reclassifications to conform to the current presentation.
|  | As of March 31,
|  | 2013 |  | 2012
|  | As Reported |  | As Revised |  | As Reported |  | As Revised
Accounts receivable |  | $ | 99,093 |  |  | $ | 97,546 |  |  | $ | 110,840 |  |  | $ | 109,399 |
Total current assets |  |  | 271,727 |  |  |  | 270,180 |  |  |  | 281,221 |  |  |  | 279,780 |
Total assets |  |  | 371,140 |  |  |  | 369,593 |  |  |  | 395,348 |  |  |  | 393,907 |
Accrued compensation |  |  | 30,311 |  |  |  | 30,964 |  |  |  | 31,971 |  |  |  | 32,835 |
Total current liabilities |  |  | 199,782 |  |  |  | 200,435 |  |  |  | 209,910 |  |  |  | 210,774 |
Accumulated deficit |  |  | (517,816 | ) |  |  | (520,016 | ) |  |  | (465,397 | ) |  |  | (467,702 | )
Total stockholders' deficit |  |  | (81,582 | ) |  |  | (83,782 | ) |  |  | (46,680 | ) |  |  | (48,985 | )
Total liabilities and stockholders' deficit |  |  | 371,140 |  |  |  | 369,593 |  |  |  | 395,348 |  |  |  | 393,907 |
Consolidated Statements of Operations - Annual
|  | Fiscal Year Ended March 31,
|  | 2013 |  | 2012 |  | 2011
|  | As Reported |  | As Revised |  | As Reported |  | As Revised |  | As Reported |  | As Revised
Product revenue |  | $ | 399,043 |  |  | $ | 398,937 |  |  | $ | 451,340 |  |  | $ | 451,468 |  |  | $ | 456,903 |  | $ | 457,505
Royalty revenue |  |  | 44,492 |  |  |  | 44,492 |  |  |  | 56,666 |  |  |  | 56,154 |  |  |  | 64,272 |  |  | 64,784
Total revenue |  |  | 587,572 |  |  |  | 587,466 |  |  |  | 652,370 |  |  |  | 651,986 |  |  |  | 672,270 |  |  | 673,384
Cost of service revenue |  |  | 79,647 |  |  |  | 79,604 |  |  |  | 88,459 |  |  |  | 88,466 |  |  |  | 94,311 |  |  | 94,311
Total cost of revenue |  |  | 346,921 |  |  |  | 346,878 |  |  |  | 378,535 |  |  |  | 378,542 |  |  |  | 389,288 |  |  | 389,288
Gross margin |  |  | 240,651 |  |  |  | 240,588 |  |  |  | 273,835 |  |  |  | 273,444 |  |  |  | 282,982 |  |  | 284,096
Sales and marketing expenses |  |  | 137,041 |  |  |  | 136,873 |  |  |  | 130,938 |  |  |  | 131,239 |  |  |  | 122,768 |  |  | 122,767
Total operating expenses |  |  | 283,351 |  |  |  | 283,183 |  |  |  | 270,143 |  |  |  | 270,444 |  |  |  | 258,278 |  |  | 258,277
Income (loss) from operations |  |  | (42,700 | ) |  |  | (42,595 | ) |  |  | 5,192 |  |  |  | 4,500 |  |  |  | 24,704 |  |  | 25,819
Income (loss) before income taxes |  |  | (51,258 | ) |  |  | (51,153 | ) |  |  | (7,922 | ) |  |  | (8,614 | ) |  |  | 4,554 |  |  | 5,669
Net income (loss) |  |  | (52,419 | ) |  |  | (52,314 | ) |  |  | (8,809 | ) |  |  | (9,501 | ) |  |  | 4,541 |  |  | 5,656
Consolidated Statements of Operations - Quarterly - Fiscal 2013
|  | Fiscal 2013
|  | 1st Quarter |  | 2nd Quarter
|  | As Reported |  | As Revised |  | As Reported |  | As Revised
Product revenue |  | $ | 93,811 |  |  | $ | 93,785 |  |  | $ | 100,067 |  |  | $ | 100,041 |
Total revenue |  |  | 140,879 |  |  |  | 140,853 |  |  |  | 147,340 |  |  |  | 147,314 |
Cost of service revenue |  |  | 20,334 |  |  |  | 20,304 |  |  |  | 20,232 |  |  |  | 20,232 |
Total cost of revenue |  |  | 85,084 |  |  |  | 85,054 |  |  |  | 88,116 |  |  |  | 88,116 |
Gross margin |  |  | 55,795 |  |  |  | 55,799 |  |  |  | 59,224 |  |  |  | 59,198 |
Sales and marketing expenses |  |  | 35,278 |  |  |  | 34,444 |  |  |  | 34,441 |  |  |  | 34,441 |
Total operating expenses |  |  | 70,607 |  |  |  | 69,773 |  |  |  | 69,195 |  |  |  | 69,195 |
Loss from operations |  |  | (14,812 | ) |  |  | (13,974 | ) |  |  | (9,971 | ) |  |  | (9,997 | )
Loss before income taxes |  |  | (16,999 | ) |  |  | (16,161 | ) |  |  | (11,898 | ) |  |  | (11,924 | )
Net loss |  |  | (17,498 | ) |  |  | (16,660 | ) |  |  | (12,268 | ) |  |  | (12,294 | )
|  | 3rd Quarter |  | 4th Quarter
|  | As Reported |  | As Revised |  | As Reported |  | As Revised
Product revenue |  | $ | 112,517 |  |  | $ | 112,490 |  |  | $ | 92,648 |  |  | $ | 92,621 |
Total revenue |  |  | 159,395 |  |  |  | 159,368 |  |  |  | 139,958 |  |  |  | 139,931 |
Cost of service revenue |  |  | 19,360 |  |  |  | 19,360 |  |  |  | 19,721 |  |  |  | 19,708 |
Total cost of revenue |  |  | 91,367 |  |  |  | 91,367 |  |  |  | 82,354 |  |  |  | 82,341 |
Gross margin |  |  | 68,028 |  |  |  | 68,001 |  |  |  | 57,604 |  |  |  | 57,590 |
Sales and marketing expenses |  |  | 33,588 |  |  |  | 33,588 |  |  |  | 33,734 |  |  |  | 34,400 |
Total operating expenses |  |  | 73,656 |  |  |  | 73,656 |  |  |  | 69,893 |  |  |  | 70,559 |
Loss from operations |  |  | (5,628 | ) |  |  | (5,655 | ) |  |  | (12,289 | ) |  |  | (12,969 | )
Loss before income taxes |  |  | (7,798 | ) |  |  | (7,825 | ) |  |  | (14,563 | ) |  |  | (15,243 | )
Net loss |  |  | (8,146 | ) |  |  | (8,173 | ) |  |  | (14,507 | ) |  |  | (15,187 | )
Consolidated Statements of Operations - Quarterly - Fiscal 2012
|  | Fiscal 2012
|  | 1 st Quarter |  | 2nd Quarter
|  | As Reported |  | As Revised |  | As Reported |  | As Revised
Product revenue |  | $ | 102,268 |  |  | $ | 102,300 |  |  | $ | 115,126 |  | $ | 115,158
Royalty revenue |  |  | 14,571 |  |  |  | 14,059 |  |  |  | 14,015 |  |  | 14,015
Total revenue |  |  | 153,535 |  |  |  | 153,055 |  |  |  | 165,039 |  |  | 165,071
Cost of service revenue |  |  | 22,066 |  |  |  | 22,064 |  |  |  | 21,129 |  |  | 21,132
Total cost of revenue |  |  | 90,273 |  |  |  | 90,271 |  |  |  | 93,428 |  |  | 93,431
Gross margin |  |  | 63,262 |  |  |  | 62,784 |  |  |  | 71,611 |  |  | 71,640
Sales and marketing expenses |  |  | 30,525 |  |  |  | 30,263 |  |  |  | 31,115 |  |  | 31,171
Total operating expenses |  |  | 64,943 |  |  |  | 64,681 |  |  |  | 66,211 |  |  | 66,267
Income (loss) from operations |  |  | (1,681 | ) |  |  | (1,897 | ) |  |  | 6,900 |  |  | 6,873
Income (loss) before income taxes |  |  | (4,588 | ) |  |  | (4,804 | ) |  |  | 3,866 |  |  | 3,839
Net income (loss) |  |  | (5,226 | ) |  |  | (5,442 | ) |  |  | 3,561 |  |  | 3,534
|  | 3rd Quarter |  | 4th Quarter
|  | As Reported |  | As Revised |  | As Reported |  | As Revised
Product revenue |  | $ | 124,081 |  | $ | 124,113 |  | $ | 109,865 |  |  | $ | 109,897 |
Royalty revenue |  |  | 14,049 |  |  | 14,049 |  |  | 14,031 |  |  |  | 14,031 |
Total revenue |  |  | 173,492 |  |  | 173,524 |  |  | 160,304 |  |  |  | 160,336 |
Cost of service revenue |  |  | 22,537 |  |  | 22,548 |  |  | 22,727 |  |  |  | 22,722 |
Total cost of revenue |  |  | 99,775 |  |  | 99,786 |  |  | 95,059 |  |  |  | 95,054 |
Gross margin |  |  | 73,717 |  |  | 73,738 |  |  | 65,245 |  |  |  | 65,282 |
Sales and marketing expenses |  |  | 33,350 |  |  | 33,736 |  |  | 35,948 |  |  |  | 36,069 |
Total operating expenses |  |  | 66,738 |  |  | 67,124 |  |  | 72,251 |  |  |  | 72,372 |
Income (loss) from operations |  |  | 6,979 |  |  | 6,614 |  |  | (7,006 | ) |  |  | (7,090 | )
Income (loss) before income taxes |  |  | 4,387 |  |  | 4,022 |  |  | (11,587 | ) |  |  | (11,671 | )
Net income (loss) |  |  | 3,914 |  |  | 3,549 |  |  | (11,058 | ) |  |  | (11,142 | )
These revisions impacted our Consolidated Statements of Comprehensive Income (Loss) for each period by an amount equal to the impact to net income (loss) for the applicable period.

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- Definition The entire disclosure for reporting accounting changes and error corrections. It includes the conveyance of information necessary for a user of the Company's financial information to understand all aspects and required disclosure information concerning all changes and error corrections reported in the Company's financial statements for the period. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 50 -Paragraph 7 -URI http://asc.fasb.org/extlink&oid=28359718&loc=d3e22644-107794 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 45 -Paragraph 23 -URI http://asc.fasb.org/extlink&oid=6368906&loc=d3e21914-107793 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=28359718&loc=d3e22595-107794 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=28359718&loc=d3e22499-107794 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB TOPIC 1.N.Q3) -URI http://asc.fasb.org/extlink&oid=26874127&loc=d3e30840-122693 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 1 -Section N + Details
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