View Filing Data

Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Mar. 31, 2018	May 23, 2018	Sep. 30, 2017
Document And Entity Information
Entity Registrant Name	8X8 INC /DE/
Entity Central Index Key	0001023731
Document Type	10-K
Document Period End Date	Mar. 31, 2018
Amendment Flag	false
Current Fiscal Year End Date	--03-31
Is Entity a Well-known Seasoned Issuer?	Yes
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 1,200,000,000
Entity Common Stock, Shares Outstanding		93,004,774
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2018

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2018	Mar. 31, 2017
Current assets:
Cash and cash equivalents	$ 31,703	$ 41,030
Short-term investments	120,559	133,959
Accounts receivable, net	16,296	14,264
Other current assets	10,040	8,101
Total current assets	178,598	197,354
Property and equipment, net	35,732	24,061
Intangible assets, net	11,958	17,038
Goodwill	40,054	46,136
Non-current deferred tax asset	0	48,859
Restricted cash	8,100	0
Other assets	2,767	407
Total assets	277,209	333,855
Current liabilities:
Accounts payable	23,899	18,631
Accrued compensation	17,412	11,508
Accrued taxes	6,367	5,354
Deferred revenue	2,559	2,144
Other accrued liabilities	6,026	5,707
Total current liabilities	56,263	43,344
Non-current liabilities	2,153	1,850
Non-current deferred revenue	19	60
Total liabilities	58,435	45,254
Commitments and contingencies (Note 5)
Stockholders' equity:
Preferred stock, $0.001 par value: Authorized: 5,000,000 shares; Issued and outstanding: no shares at March 31, 2018 and 2017	0	0
Common stock, $0.001 par value: Authorized: 200,000,000 shares; Issued and outstanding: 92,847,354 shares and 91,500,091 shares at March 31, 2018 and 2017, respectively	93	91
Additional paid-in capital	425,790	412,762
Accumulated other comprehensive loss	(5,645)	(9,642)
Accumulated deficit	(201,464)	(114,610)
Total stockholders' equity	218,774	288,601
Total liabilities and stockholders' equity	$ 277,209	$ 333,855

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2018	Mar. 31, 2017
Stockholders' equity:
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value per share	$ 0.001	$ 0.001
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	92,847,354	91,500,091
Common stock, shares outstanding	92,847,354	91,500,091

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Consolidated Statements Of Operations
Service revenue	$ 75,325	$ 71,891	$ 68,123	$ 65,091	$ 62,654	$ 60,149	$ 57,717	$ 55,296	$ 280,430	$ 235,816	$ 192,241
Product revenue	4,019	3,684	4,360	4,007	3,834	3,527	5,466	4,745	16,070	17,572	17,095
Total revenue	79,344	75,575	72,483	69,098	66,488	63,676	63,183	60,041	296,500	253,388	209,336
Operating expenses:
Cost of service revenue	13,952	12,318	12,757	11,662	10,803	10,525	10,837	10,235	50,689	42,400	37,078
Cost of product revenue	5,826	4,675	5,098	4,884	4,187	4,240	5,782	5,505	20,482	19,714	20,168
Research and development	10,016	8,527	8,311	7,943	7,142	7,095	6,505	6,710	34,797	27,452	24,040
Sales and marketing	52,940	48,830	41,163	41,110	38,228	35,667	33,691	31,691	184,044	139,277	109,379
General and administrative	10,340	10,003	9,616	8,956	9,814	7,852	6,747	6,801	38,915	31,214	25,745
Impairment of goodwill, intangible assets and equipment	0	9,469	0	0	0	0	0	0	9,469	0	0
Total operating expenses	93,074	93,822	76,945	74,555	70,174	65,379	63,562	60,942	338,396	260,057	216,410
Loss from operations	(13,730)	(18,247)	(4,462)	(5,457)	(3,686)	(1,703)	(379)	(901)	(41,896)	(6,669)	(7,074)
Other income, net	610	569	463	2,052	583	408	391	410	3,693	1,792	1,107
Loss before provision (benefit) for income taxes	(13,120)	(17,678)	(3,999)	(3,405)	(3,103)	(1,295)	12	(491)	(38,203)	(4,877)	(5,967)
Provision (benefit) for income taxes	142	70,842	(3,453)	(1,236)	(178)	30	(15)	37	66,294	(126)	(847)
Net loss	$ (13,262)	$ (88,520)	$ (546)	$ (2,169)	$ (2,925)	$ (1,325)	$ 27	$ (528)	$ (104,497)	$ (4,751)	$ (5,120)
Net loss per share:
Basic	$ (0.14)	$ (0.96)	$ (0.01)	$ (0.02)	$ (0.03)	$ (0.01)	$ 0.00	$ (0.01)	$ (1.14)	$ (0.05)	$ (0.06)
Diluted	$ (0.14)	$ (0.96)	$ (0.01)	$ (0.02)	$ (0.03)	$ (0.01)	$ 0.00	$ (0.01)	$ (1.14)	$ (0.05)	$ (0.06)
Weighted average number of shares:
Basic	92,526	92,029	91,689	91,643	91,175	90,774	89,987	89,434	92,017	90,340	88,477
Diluted	92,526	92,029	91,689	91,643	91,175	90,774	93,447	89,434	92,017	90,340	88,477

CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands	12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Statement of Comprehensive Income [Abstract]
Net loss	$ (104,497)	$ (4,751)	$ (5,120)
Other comprehensive loss, net of tax
Unrealized gain (loss) on investments in securities	(259)	70	(50)
Foreign currency translation adjustment	4,256	(5,528)	(2,025)
Comprehensive loss	$ (100,500)	$ (10,209)	$ (7,195)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock	Additional Paid-In Capital	Accumulated other Comprehensive Income (Loss)	Accumulated Deficit	Total
Beginning balance, amount at Mar. 31, 2015	$ 88	$ 378,971	$ (2,109)	$ (104,739)	$ 272,211
Beginning balance, shares at Mar. 31, 2015	88,065,528
Issuance of common stock under stock plans	$ 2	5,386	0	0	5,388
Issuance of common stock under stock plans, shares	2,218,470
Withholding taxes from stock plans	$ 0	(466)	0	0	(466)
Withholding taxes from stock plans, shares	(30,702)
Issuance of common stock for acquisition of businesses, net of issuance costs	$ 0	0	0	0	0
Issuance of common stock for acquisition of businesses, net of issuance costs, shares	352,044
Repurchase of common stock	$ (1)	(11,189)	0	0	(11,190)
Repurchase of common stock, shares	(1,392,135)
Stock-based compensation expense	$ 0	16,334	0	0	16,334
Income tax benefit from stock-based compensation	0	224	0	0	224
Unrealized investment gain (loss)	0	0	(50)	0	(50)
Foreign currency translation adjustment	0	0	(2,025)	0	(2,025)
Net loss	0	0	0	(5,120)	(5,120)
Ending balance, amount at Mar. 31, 2016	$ 89	389,260	(4,184)	(109,859)	275,306
Ending balance, shares at Mar. 31, 2016	89,213,205
Issuance of common stock under stock plans	$ 3	4,557	0	0	4,560
Issuance of common stock under stock plans, shares	2,576,785
Withholding taxes from stock plans	$ (1)	(3,003)	0	0	(3,004)
Withholding taxes from stock plans, shares	(289,899)
Stock-based compensation expense	$ 0	21,462	0	0	21,462
Income tax benefit from stock-based compensation	0	486	0	0	486
Unrealized investment gain (loss)	0	0	70	0	70
Foreign currency translation adjustment	0	0	(5,528)	0	(5,528)
Net loss	0	0	0	(4,751)	(4,751)
Ending balance, amount at Mar. 31, 2017	$ 91	412,762	(9,642)	(114,610)	288,601
Ending balance, shares at Mar. 31, 2017	91,500,091
Adjustment from adoption of ASU 2016-9 \| Update 201609				17,643
Adjustment from adoption of ASU 2016-9	$ 0	0	0		17,643
Issuance of common stock under stock plans, less withholding taxes	$ 3	2,179	0	0	2,182
Issuance of common stock under stock plans, less withholding taxes,shares	2,709,990
Repurchase of common stock	$ (1)	(17,933)	0	0	(17,934)
Repurchase of common stock, shares	(1,362,727)
Stock-based compensation expense	$ 0	28,782	0	0	28,782
Income tax benefit from stock-based compensation					0
Unrealized investment gain (loss)	0	0	(259)	0	(259)
Foreign currency translation adjustment	0	0	4,256	0	4,256
Net loss	0	0	0	(104,497)	(104,497)
Ending balance, amount at Mar. 31, 2018	$ 93	$ 425,790	$ (5,645)	$ (201,464)	$ 218,774
Ending balance, shares at Mar. 31, 2018	92,847,354

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Cash flows from operating activities:
Net loss	$ (104,497)	$ (4,751)	$ (5,120)
Adjustments to reconcile net loss to net cash provided by operating activites:
Depreciation	8,171	6,084	4,994
Amortization of intangibles	5,033	3,762	3,557
Impairment of goodwill and long-lived assets	9,469	15	640
Amortization of capitalized software	2,513	591	456
Stock-based compensation	29,176	21,462	16,334
Tax benefit from stock-based compensation expense	0	(486)	(224)
Deferred income tax expense (benefit)	66,273	(411)	(1,493)
Gain on escrow settlement	(1,393)	0	0
Other	677	1,196	1,273
Changes in assets and liabilities:
Accounts receivable	(2,402)	(4,799)	(4,539)
Other current and non-current assets	(3,149)	(2,515)	(1,520)
Accounts payable and accruals	11,860	8,135	9,482
Deferred revenue	310	195	(273)
Net cash provided by operating activities	22,041	28,478	23,567
Cash flows from investing activities:
Purchases of property and equipment	(9,178)	(8,851)	(4,894)
Cost of capitalized software	(12,486)	(5,516)	(2,095)
Gain on escrow settlement	1,393	0	0
Purchase of investments	(115,224)	(140,026)	(126,723)
Sales of investments	27,841	41,288	56,302
Proceeds from maturities of investments	100,382	93,795	64,361
Acquisition of businesses, net of cash acquired	0	(2,884)	(23,246)
Net cash used in investing activities	(7,272)	(22,194)	(36,295)
Cash flows from financing activities:
Capital lease payments	(1,079)	(674)	(446)
Payment of contingent consideration	(150)	(300)	(200)
Repurchase of common stock, including for withholding taxes	(22,440)	(3,003)	(11,653)
Tax benefit from stock-based compensation expense	0	486	224
Proceeds from issuance of common stock under employee stock plans	7,229	5,087	4,827
Net cash (used in) provided by financing activities	(16,440)	1,596	(7,248)
Effect of exchange rate changes on cash	444	(426)	442
Net (decrease) increase in cash and cash equivalents	(1,227)	7,454	(19,534)
Cash and cash equivalents,beginning of year	41,030	33,576	53,110
Cash and cash equivalents, end of year	39,803	41,030	33,576
Supplemental and non-cash disclosures:
Acquisition of property and equipment, net in connection with acquisitions of businesses	0	0	1,453
Acquisition of capital lease in connection with acquisitions of businesses	0	0	1,332
Equipment acquired under capital leases	765	1,152	573
Interest paid	36	16	44
Income taxes paid	$ 38	$ 460	$ 445

THE COMPANY AND SIGNIFICANT ACCOUNTING POLICIES - Note 1

12 Months Ended

Mar. 31, 2018

Notes to Financial Statements

THE COMPANY AND SIGNIFICANT ACCOUNTING POLICIES - Note 1

1. THE COMPANY AND SIGNIFICANT ACCOUNTING POLICIES

THE COMPANY

8x8, Inc. ("8x8" or the "Company") was incorporated in California in February 1987 and was reincorporated in Delaware in December 1996.

The Company is a leading provider of enterprise cloud communications solutions, including unified communications, team collaboration, contact center, and analytics, integrated over a single Software-as-a-Service (SaaS) platform. The 8x8 Communications Cloud^TM offers businesses a secure, reliable and simplified approach to transitioning their legacy, on-premises communications systems to the cloud. This comprehensive solution, built from owned and managed cloud technologies, enables customers to rely on a single provider for their global communications and contact center capabilities as well as customer support requirements. 8x8 customers are spread across more than 100 countries and range from small businesses to large enterprises. Since fiscal 2004, substantially all revenue has been generated from the sale of communications services and related hardware. Prior to fiscal 2003, the Company's main business was Voice over Internet Protocol semiconductors.

The Company's fiscal year ends on March 31 of each calendar year. Each reference to a fiscal year in these notes to the consolidated financial statements refers to the fiscal year ended March 31 of the calendar year indicated (for example, fiscal 2018 refers to the fiscal year ended March 31, 2018).

PRINCIPLES OF CONSOLIDATION

The consolidated financial statements include the accounts of 8x8 and its subsidiaries. All material intercompany accounts and transactions have been eliminated.

Reclassification

Certain software development costs capitalized in accordance with ASC 350-40, Internal-Use Software (ASC 350-40), that were presented in other long-term assets in the Company's consolidated balance sheets as of March 31, 2017 are presented as property and equipment for the consolidated balance sheet as of March 31, 2018. Assets in the amount of $7.7 million, net of accumulated amortization, have been reclassified in the consolidated balance sheet as of March 31, 2017 to conform to the current period presentation. The reclassification had no impact on the Company's previously reported consolidated net income (loss), cash flows, or basic or diluted net income per share amounts.

Certain amounts previously reported within the Company's consolidated balance sheets and consolidated statements of cash flows have been reclassified within each financial statement section to conform to the current period presentation. The reclassification had no impact on the Company's previously reported net loss, cash flows, or basic or diluted net loss per share amounts.

USE OF ESTIMATES

The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and equity and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates, including, but not limited to, those related to bad debts, returns reserve for expected cancellations, income and sales tax, and litigation and other contingencies. The Company bases its estimates on historical experience and on various other assumptions. Actual results could differ from those estimates under different assumptions or conditions.

REVENUE RECOGNITION

Service and Product Revenue

The Company recognizes service revenue, mainly from subscription services to its cloud-based voice, call center, video and collaboration solutions, when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, price is fixed or determinable and collectability is reasonably assured. The Company defers recognition of service revenues in instances when cash receipts are received before services are delivered and recognizes deferred revenues ratably, over the course of the contract, as services are provided.

Under the terms of the Company's typical subscription agreements, new customers can terminate their service within 30 days of order placement and receive a full refund of fees previously paid. The Company has determined that it has sufficient history of subscriber conduct to make a reasonable estimate of cancellations within the 30-day trial period. Therefore, the Company recognizes new subscriber revenue that is fixed or determinable and that is not contingent on future performance or future deliverables in the month in which the new order was shipped, net of an allowance for expected cancellations. The Company recognizes revenue from product sales, mainly IP telephones, for which there are no related services to be rendered upon shipment to customers provided that persuasive evidence of an arrangement exists, the price is fixed or determinable, title has transferred, collection of resulting receivables is reasonably assured, there are no customer acceptance requirements, and there are no remaining significant obligations. Gross outbound shipping and handling charges are recorded as revenue, and the related costs are included in cost of goods sold. Reserves for returns and allowances for customer sales are recorded at the time of shipment. In accordance with the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 605, Revenue Recognition, the Company records shipments to distributors, retailers, channel partners, and resellers, where the right of return exists, as deferred revenue. The Company defers recognition of revenue on product sales to resellers until the products have been sold to the end-customer.

The Company records revenue net of any sales and service related taxes and mandatory government charges that are billed to its customers. The Company believes this approach results in consolidated financial statements that are more easily understood by users.

Multiple Element Arrangements

ASC 605-25, Revenue Recognition - Multiple Element Arrangements, requires that revenue arrangements with multiple deliverables be divided into separate units of accounting if the deliverables in the arrangement meet specific criteria. The provisioning of the cloud service with the accompanying IP telephone constitutes a revenue arrangement with multiple deliverables. For arrangements with multiple deliverables, the Company allocates the arrangement consideration to all units of accounting based on their relative selling prices. In such circumstances, the accounting principles establish a hierarchy to determine the relative selling price to be used for allocating arrangement consideration to units of accounting as follows: (i) vendor-specific objective evidence of fair value ("VSOE"), (ii) third-party evidence of selling price ("TPE"), and (iii) best estimate of the selling price ("BESP").

VSOE generally exists only when a Company sells the deliverable separately, on more than a limited basis, at prices within a relatively narrow range. When VSOE cannot be established, the Company attempts to establish the selling price of deliverables based on relevant TPE. TPE is determined based on manufacturer's prices for similar deliverables when sold separately, when possible. As the Company has historically been unable to establish a selling price using VSOE or TPE, it uses a BESP for the allocation of arrangement consideration. The objective of BESP is to determine the price at which the Company would transact a sale if the product or service was sold on a stand-alone basis. BESP is generally used for offerings that are not typically sold on a stand-alone basis or for new or highly customized offerings. The Company determines BESP for a product or service by considering multiple factors including, but not limited to:

the price list established by its management which is typically based on general pricing practices and targeted gross margin of products and services sold; and
analysis of pricing history of new arrangements, including multiple element and stand-alone transactions.

In accordance with the guidance of ASC 605-25, when the Company enters into revenue arrangements with multiple deliverables the Company allocates arrangement consideration, among the products and subscriber services based on their relative selling prices. Arrangement consideration allocated to the sold products that is fixed or determinable and that is not contingent on future performance or future deliverables is recognized as product revenues during the period of the sale less the allowance for estimated returns during the 30-day trial period. Arrangement consideration allocated to subscriber services that is fixed or determinable and that is not contingent on future performance or future deliverables is recognized ratably as service revenues as the related services are provided, which is generally over the initial contract term.

CASH, CASH EQUIVALENTS AND INVESTMENTS

The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents.

At March 31, 2018 and 2017, all investments were classified as available-for-sale and reported at fair value, based either upon quoted prices in active markets, quoted prices in less active markets, or quoted market prices for similar investments, with unrealized gains and losses, net of related tax, if any, included in other comprehensive income (loss) and disclosed as a separate component of stockholders' equity. Realized gains and losses on sales of all such investments are reported within the caption of other income in the consolidated statements of operations and computed using the specific identification method. The Company classifies its investments as current based on the nature of the investments and their availability for use in current operations. The Company's investments in marketable securities are monitored on a periodic basis for impairment. In the event that the carrying value of an investment exceeds its fair value and the decline in value is determined to be other-than-temporary, an impairment charge is recorded and a new cost basis for the investment is established. These available-for-sale investments are primarily held in the custody of one major financial institution.

ACCOUNTS RECEIVABLE ALLOWANCE

The Company estimates the amount of uncollectible accounts receivable at the end of each reporting period based on the aging of the receivable balance, current and historical customer trends, and communications with its customers. Amounts are written off only after considerable collection efforts have been made and the amounts are determined to be uncollectible.

PROPERTY AND EQUIPMENT

Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method. Estimated useful lives of three years are used for equipment, software and software development costs and five years for furniture and fixtures. Amortization of leasehold improvements is computed using the shorter of the remaining facility lease term or the estimated useful life of the improvements.

Maintenance, repairs and ordinary replacements are charged to expense. Expenditures for improvements that extend the physical or economic life of the property are capitalized. Gains or losses on the disposition of property and equipment are recorded in the Consolidated Statements of Operations.

Construction in progress primarily relates to costs to acquire or internally develop software for internal use not fully completed as of March 31, 2018.

ACCOUNTING FOR LONG-LIVED ASSETS

The Company reviews the recoverability of its long-lived assets, such as property and equipment, definite lived intangibles or capitalized software, when events or changes in circumstances occur that indicate that the carrying value of the asset or asset group may not be recoverable. Examples of such events could include a significant disposal of a portion of such assets, an adverse change in the market involving the business employing the related asset or a significant change in the operation or use of an asset. The assessment of possible impairment is based on the Company's ability to recover the carrying value of the asset or asset group from the expected future cash flows (undiscounted and without interest charges) of the related operations. If these cash flows are less than the carrying value of such asset or asset group, an impairment loss is recognized for the difference between estimated fair value and carrying value. The measurement of impairment requires management to estimate the fair value of long-lived assets and asset groups through future cash flows. See Note 4 for further discussion on impairment charges incurred.

GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill represents the excess fair value of consideration transferred over the fair value of net assets acquired in business combinations. Goodwill and intangible assets with indefinite useful lives are not amortized but are tested annually for impairment and more often if there is an indicator of impairment. The Company has determined that it has three reporting units and allocates goodwill to the reporting units for the purposes of its annual impairment test.

The Company's annual goodwill impairment test is performed on January 1 each year. No goodwill impairment charges were recorded in the periods presented.

Intangible assets with finite useful lives are amortized on a straight-line basis over the periods benefited. Amortization expense for the customer relationship intangible asset is included in sales and marketing expenses. Amortization expense for technology is included in cost of service revenue.

WARRANTY EXPENSE

The Company accrues for estimated product warranty cost upon revenue recognition. Accruals for product warranties are calculated based on the Company's historical warranty experience adjusted for any specific requirements.

RESEARCH & DEVELOPMENT AND SOFTWARE DEVELOPMENT COSTS

Software developed or obtained for internal use in accordance with ASC 350-40, Internal-Use Software (ASC 350-40), is capitalized during the application development stage. In accordance with authoritative guidance, the Company begins to capitalize costs to develop software when preliminary development efforts are successfully completed, management has authorized and committed project funding, and it is probable that the project will be completed, and the software will be used as intended. Once the project has been completed, these costs are amortized on a straight - line basis over the estimated useful life of the related asset, generally estimated to be three years. Costs incurred prior to meeting these criteria together with costs incurred for training and maintenance are expensed as incurred and recorded in research and development expense on our consolidated statements of operations. The Company classifies software development costs associated with the development of the Company's products and services as property and equipment. See Note 3 for further details.

ADVERTISING COSTS

Advertising costs are expensed as incurred and were $14.5 million, $9.5 million and $8.5 million for the years ended March 31, 2018, 2017 and 2016, respectively.

FOREIGN CURRENCY TRANSLATION

The Company has determined that the functional currency of each of its foreign subsidiaries are the subsidiary's local currency. The Company believes this most appropriately reflects the current economic facts and circumstances of the Company's subsidiaries' operations. The assets and liabilities of the subsidiaries are translated at the applicable exchange rate as of the end of the balance sheet period and revenue and expenses are translated at an average rate over the period presented. Resulting currency translation adjustments are recorded as a component of accumulated other comprehensive income or loss within the stockholder's equity.

BUSINESS SEGMENTS

The Company has two reportable segments, Americas and Europe. The Americas segment is primarily North America. The Europe segment is primarily the United Kingdom. Each operating segment provides similar products and services.

The Company's chief operating decision makers, the Chief Executive Officer, Chief Financial Officer, and Chief Technology Officer, evaluate performance of the Company and makes decisions regarding allocation of resources based on geographical results.

The Company's CODMs evaluate the performance of its operating segments based on revenues and net income. The Company does not allocate research and development, sales and marketing, general and administrative, amortization expense, stock-based compensation expense, and commitment and contingencies for each segment as management does not consider this information in its evaluation of the performance of each operating segment. Revenues are attributed to each segment based on the ordering location of the customer or ship to location.

CONCENTRATIONS

Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and cash equivalents, investments and trade accounts receivable. The Company has cash equivalents and investment policies that limit the amount of credit exposure to any one financial institution and restrict placement of these funds to financial institutions evaluated as highly credit-worthy. The Company has not experienced any material losses relating to its investments.

The Company sells its products to business customers and distributors. The Company performs ongoing credit evaluations of its customers' financial condition and generally does not require collateral from its customers. At March 31, 2018 and 2017, no customer accounted for more than 10% of accounts receivable.

The Company purchases all of its hardware products from suppliers that manufacturer the hardware directly. The inability of any supplier to fulfill supply requirements of the Company could materially impact future operating results, financial position or cash flows.

The Company also relies primarily on third-party network service providers to provide telephone numbers and PSTN call termination and origination services for its customers. If these service providers failed to perform their obligations to the Company, such failure could materially impact future operating results, financial position and cash flows.

FAIR VALUE OF FINANCIAL INSTRUMENTS

The Company defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal market or the most advantageous market in which it would transact.

The accounting guidance for fair value measurement requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Observable inputs are inputs that reflect the assumptions market participants would use in valuing the asset or liability and are developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company's assumptions about the factors that market participants would use in valuing the asset or liability developed based on the best information available in the circumstances.

The standard establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value by requiring that the most observable inputs be used when available. A financial instrument's categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is as follows:

Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date.
Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly, such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets).
Level 3 applies to assets or liabilities for which fair value is derived from valuation techniques in which one or more significant inputs are unobservable, including the Company's own assumptions.

The estimated fair value of financial instruments is determined by the Company using available market information and valuation methodologies considered to be appropriate. The carrying amounts of the Company's cash and cash equivalents, accounts receivable and accounts payable approximate their fair values due to their short maturities. The Company's investments are carried at fair value.

ACCOUNTING FOR STOCK-BASED COMPENSATION

The Company accounts for its employee stock options and other stock awards under the provisions of ASC 718 - Stock Compensation. Stock-based compensation cost is measured at the grant date, based on the estimated fair value of the award, and is recognized as an expense over the employee's requisite service period (generally the vesting period of the equity grant), net of estimated forfeitures.

To value option grants the Company uses the Black-Scholes option valuation model. Fair value determined using the Black-Scholes option valuation model varies based on assumptions used for the expected stock prices volatility, expected life, risk-free interest rates and future dividend payments. The Company used the historical volatility of its stock over a period equal to the expected life of the options. The expected life assumptions represent the weighted-average period stock-based awards are expecting to remain outstanding. These expected life assumptions were established through the review of historical exercise behavior of stock-based award grants with similar vesting periods. The risk-free interest rates were based on the closing market bid yields of actively traded U.S. treasury securities in the over-the-counter market for the expected term equal to the expected term of the option. The dividend yield assumption is based on the Company's history of not paying dividends.

The Company issued performance stock units (PSUs) to a group of executives with vesting that is contingent on both market performance and continued service during the fiscal year ended March 31, 2018:

These PSUs vest (1) 50% on September 19, 2019 and (2) 50% on September 19, 2020, in each case subject to the performance of the Company's common stock relative to the Russell 2000 Index (the benchmark) during the period from grant date through such vesting date. A 2x multiplier will be applied to the total shareholder returns (TSR) for each 1% of positive or negative relative TSR, and the number of shares earned will increase or decrease at the end of each respective performance measurement period by 2% of the target numbers. In the event the Company's common stock performance is below negative 30% relative to the benchmark, no shares will be issued.

The Company issued PSUs to a group of executives with vesting that is contingent on both market performance and continued service during the fiscal year ended March 31, 2017:

These PSUs vest (1) 50% on September 22, 2018 and (2) 50% on September 27, 2019, in each case subject to the performance of the Company's common stock relative to the Russell 2000 Index (the benchmark) during the period from grant date through such vesting date. A 2x multiplier will be applied to the total shareholder returns (TSR) for each 1% of positive or negative relative TSR, and the number of shares earned will increase or decrease by 2% of the target numbers. In the event the Company's common stock performance is below negative 30%, relative to the benchmark, no shares will be issued.

To value these market-based PSUs under the Equity Compensation Plans, the Company used a Monte Carlo simulation model on the date of grant. Fair value determined using the Monte Carlo simulation model varies based on the assumptions used for the expected stock price volatility, the correlation coefficient between the Company and the NASDAQ Composite Index, risk-free interest rates, and future dividend payments.

COMPREHENSIVE INCOME (LOSS)

Comprehensive income (loss), as defined, includes all changes in equity (net assets) during a period. The difference between net income (loss) and comprehensive income (loss) is due to foreign currency translation adjustments and unrealized gains or losses on investments classified as available-for-sale.

NET INCOME (LOSS) PER SHARE

Basic net income (loss) per share is computed by dividing net income (loss) available to common stockholders (numerator) by the weighted average number of vested, unrestricted common shares outstanding during the period (denominator). Diluted net income (loss) per share is computed on the basis of the weighted average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method unless their effect is anti-dilutive. Dilutive potential common shares include outstanding stock options and employee restricted purchase rights.

DEFERRED RENT

The Company recognizes rent expense on a straight-line basis for all operating lease arrangements with the difference between required lease payments and rent expense recorded as deferred rent. The difference results from rent holidays, rent escalations and tenant improvement allowances, which are amortized over the lease term.

RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS

In November 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2015-17, Income Taxes - Balance Sheet Classification of Deferred Taxes (Topic 740). This ASU requires all deferred tax liabilities and assets to be presented in the balance sheet as noncurrent. As permitted, the Company early adopted this standard prospectively during the quarter ended June 30, 2016. The adoption of this standard resulted in reclassifying current deferred income tax assets to noncurrent deferred income tax assets and current deferred income tax liabilities to noncurrent deferred income tax liabilities. No prior periods were retrospectively adjusted.

In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, which is intended to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. As a result of the adoption in fiscal year 2018, stock-based compensation excess tax benefits or tax deficiencies will be reflected in the consolidated statement of operations within the provision for income taxes.

In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230), which provides guidance on how restricted cash or restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The Company elected to early adopt this ASU for fiscal year 2018 and disclosed restricted cash in the amount of $8.1 million in the consolidated balance sheets as of March 31, 2018. No prior periods were retrospectively adjusted.

In January 2017, the FASB issued ASU No. 2017-04, Intangibles and Other (Topic 350): Simplifying the Test for Goodwill Impairment, which eliminates the requirement to calculate the implied fair value of goodwill but rather require an entity to record an impairment charge based on the excess of a reporting unit's carrying value over its fair value. This amendment is effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. The Company elected to early adopt this ASU for fiscal year 2018. No prior periods were retrospectively adjusted.

RECENT ACCOUNTING PRONOUNCEMENTS

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Accounting Standards Codification 606 or ASC 606), which replaces numerous requirements in U.S. GAAP and provide companies with a single revenue recognition model for recognizing revenue from contracts with customers. ASC 606 requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. It defines a five-step process to achieve this core principle and, in doing so, more judgment and estimates are required within the revenue recognition process than are required under current GAAP (ASC 605).

The new standard permits the use of either the full retrospective or modified retrospective transition method. The Company adopted the new standard effective April 1, 2018 using the modified retrospective method. Under the retrospective method prior period financial information is not revised, but instead a cumulative impact is recorded on the day of adoption with a corresponding offset recorded to stockholder's equity.

Under the new standard, the Company expects in some cases to recognize revenue earlier than under ASC 605 guidance when the customer receives services or equipment for a reduced consideration at the onset of an arrangement, for example the initial month's services or equipment are discounted, as a result of the elimination of contingent revenue guidance. Under ASC 605 guidance, amounts allocated to delivered items are limited to amounts that are not contingent on the provision of future services. The impact of adopting the new standard on the Company's total revenues and deferred revenue is not expected to be material.

With the adoption of ASC 606 the Company also adopted ASC 340-40, Other Assets and Deferred Costs - Contracts with Customers, which requires the deferral of incremental costs of obtaining a customer contract which, under the old guidance, were expensed as incurred. Under the new standard, the Company will defer all incremental sales commission costs and amortize them over the expected period of benefit, which is estimated to be five years. The amortization cost will be charged to sales and marketing costs on the consolidated statements of operations. The Company expects the cumulative impact of these deferred costs to be approximately $35 million to $40 million with a corresponding decrease to accumulated deficit as of April 1, 2018.

There will not be any significant tax impact to the Company's consolidated statements of operations and consolidated balance sheet relating to the adoption of the new standard due to the valuation allowance recorded against to the Company's deferred tax assets.

The Company has established new accounting policies, is implementing processes, and implementing internal controls necessary to support the requirements of the new standard.

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which requires companies to generally recognize on the balance sheet operating and financing lease liabilities and corresponding right-of-use assets. The update also requires qualitative and quantitative disclosures designed to assess the amount, timing, and uncertainty of cash flows arising from leases. The update requires the use of a modified retrospective transition approach, which includes a number of optional practical expedients that entities may elect to apply. This amendment is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently assessing the impact of this pronouncement to its consolidated financial statements.

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which provides guidance for measurement and recognition of expected credit losses for financial assets held based on historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. The amendment is effective for fiscal years beginning after December 15, 2019. Early adoption is permitted for fiscal years beginning after December 15, 2018. The Company is currently assessing the impact of this pronouncement to its consolidated financial statements.

In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, which provides guidance on how certain cash receipts and cash payments are to be presented and classified in the statement of cash flows. This amendment is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. The Company is currently assessing the impact of this pronouncement to its Consolidated Statements of Cash Flows.

In October 2016, the FASB has issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory, which provides guidance on how an entity should recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. This amendment is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. The Company is currently assessing the impact of this pronouncement to its consolidated financial statements.

In January 2017, the FASB has issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, which clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. This amendment is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. The Company is currently assessing the impact of this pronouncement to its consolidated financial statements.

FAIR VALUE MEASURESMENTS - Note 2

12 Months Ended

Mar. 31, 2018

Cash and Cash Equivalents [Abstract]

FAIR VALUE MEASURESMENTS - Note 2

2. FAIR VALUE MEASURESMENTS

Cash, cash equivalents, available-for-sale investments, and contingent consideration were (in thousands):

				Gross		Gross				Cash and
		Amortized		Unrealized		Unrealized		Estimated		Cash		Short-Term
As of March 31, 2018		Costs		Gain		Loss		Fair Value		Equivalents		Investments
Cash	$	16,499	$	-	$	-	$	16,499	$	16,499	$	-
Level 1:
Money market funds		15,204		-		-		15,204		15,204		-
Subtotal		31,703		-		-		31,703		31,703		-
Level 2:
Commercial paper		13,254		-		(8)		13,246		-		13,246
Corporate debt		70,631		6		(296)		70,341		-		70,341
Municipal securities		3,385		3		(1)		3,387		-		3,387
Asset backed securities		27,063		1		(119)		26,945		-		26,945
Agency bond		4,183		-		(35)		4,148		-		4,148
International government securities		2,497		-		(5)		2,492		-		2,492
Subtotal		121,013		10		(464)		120,559		-		120,559
Total assets	$	152,716	$	10	$	(464)	$	152,262	$	31,703	$	120,559

				Gross		Gross				Cash and
		Amortized		Unrealized		Unrealized		Estimated		Cash		Short-Term
As of March 31, 2017		Costs		Gain		Loss		Fair Value		Equivalents		Investments
Cash	$	29,122	$	-	$	-	$	29,122	$	29,122	$	-
Level 1:
Money market funds		11,908		-		-		11,908		11,908		-
Mutual funds		2,000		-		(194)		1,806		-		1,806
Subtotal		43,030		-		(194)		42,836		41,030		1,806
Level 2:
Commercial paper		19,144		8		-		19,152		-		19,152
Corporate debt		83,995		61		(58)		83,998		-		83,998
Asset backed securities		26,906		4		(22)		26,888		-		26,888
Mortgage backed securities		116		-		(1)		115		-		115
Agency bond		2,000		-		-		2,000		-		2,000
Subtotal		132,161		73		(81)		132,153		-		132,153
Total assets	$	175,191	$	73	$	(275)	$	174,989	$	41,030	$	133,959
Level 3:
Contingent consideration	$	-	$	-	$	-	$	148	$	-	$	-
Total liabilities	$	-	$	-	$	-	$	148	$	-	$	-

Contractual maturities of investments as of March 31, 2018 are set forth below (in thousands):

		Estimated
		Fair Value
Due within one year	$	69,721
Due after one year		50,838
Total	$	120,559

Contingent Consideration and Escrow Liability

The Company's contingent consideration liability, included in other accrued liabilities on the consolidated balance sheets as of March 31, 2017, was associated with the Quality Software Corporation (QSC) acquisition made in the first quarter of fiscal year 2016. This contingent liability was classified as level 3 within the fair value hierarchy. The remaining liability of $0.1 million was settled and paid during the year ended March 31, 2018.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

PROPERTY AND EQUIPMENT - Note 3

12 Months Ended

Mar. 31, 2018

Property, Plant and Equipment [Abstract]

PROPERTY AND EQUIPMENT - Note 3

3. PROPERTY AND EQUIPMENT

Property and equipment consisted of the following (in thousands):

		March 31,
		2018		2017
Computer equipment	$	29,761	$	24,293
Software development costs		20,144		8,265
Software licenses		8,663		7,380
Leasehold improvements		6,573		5,579
Furniture and fixtures		1,637		1,411
Construction in progress		2,394		689
		69,172		47,617
Less: accumulated depreciation and amortization		(33,440)		(23,556)
	$	35,732	$	24,061

INTANGIBLE ASSETS AND GOODWILL - Note 4

12 Months Ended

Mar. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS AND GOODWILL - Note 4

4. INTANGIBLE ASSETS AND GOODWILL

The carrying value of intangible assets consisted of the following (in thousands):

		March 31, 2018						March 31, 2017
		Gross						Gross
		Carrying		Accumulated		Net Carrying		Carrying		Accumulated		Net Carrying
		Amount		Amortization		Amount		Amount		Amortization		Amount
Technology	$	19,702	$	(10,535)	$	9,167	$	18,685	$	(7,010)	$	11,675
Customer relationships		9,776		(7,366)		2,410		9,419		(6,187)		3,232
Trade names/domains		2,108		(1,727)		381		2,036		-		2,036
In-process research and
development		95		(95)		-		95		-		95
Total acquired identifiable
intangible assets	$	31,681	$	(19,723)	$	11,958	$	30,235	$	(13,197)	$	17,038

At March 31, 2018, annual amortization of definite lived intangible assets, based upon existing intangible assets and current useful lives, is estimated to be the following (in thousands):

		Amount
2019	$	4,002
2020		3,171
2021		2,790
2022		1,766
2023		229
Total	$	11,958

Impairment of Long-Lived Assets and Goodwill

During the third quarter of fiscal year 2018, the Company changed its product and marketing strategy for the use of DXI's technology and re-assessed DXI's profitability outlook. This triggered the requirement that the Company test the recorded goodwill for impairment in accordance with ASC 350-20-35, as amended by ASU 2017-04 (see Footnote 1, Recently Adopted Accounting Pronouncements). First, the Company estimated the fair value of its three reporting units using the market approach. Under the market approach, the Company utilized the market capitalization of its publicly-traded shares and comparable company information to determine revenue multiples which were used to determine the fair value of the reporting unit. Based on this approach, the Company determined that there was an indication of impairment only for its DXI reporting unit, which is within the Company's Europe reporting segment, as the carrying value including goodwill exceeded the estimated fair value. As largely independent cash flows could not be attributed to any assets individually the Company evaluated DXI's assets and liabilities as one asset group. Then the Company estimated the fair value of DXI's asset group using discounted cash flow methods to determine the implied fair value of goodwill. The difference between this implied fair value of the goodwill and its carrying value was recorded as impairment. The outcome of the analysis resulted in a non-cash expense for impairment of property and equipment, intangible assets and goodwill of $0.3 million, $1.2 million and $8.0 million, respectively, which was recorded during the third quarter of fiscal year 2018 as a separate line item in the Company's Consolidated Statements of Operations.

The following table provides a summary of the changes in the carrying amounts of goodwill by reporting segment (in thousands):

		Americas		Europe		Total
Balance at March 31, 2016	$	25,729	$	21,691	$	47,420
Additions due to acquisitions		1,580		-		1,580
Foreign currency translation		-		(2,864)		(2,864)
Balance at March 31, 2017		27,309		18,827		46,136
Impairment loss		-		(8,036)		(8,036)
Foreign currency translation		-		1,954		1,954
Balance at March 31, 2018	$	27,309	$	12,745	$	40,054

COMMITMENTS AND CONTINGENCIES - Note 5

12 Months Ended

Mar. 31, 2018

Notes to Financial Statements

COMMITMENTS AND CONTINGENCIES - Note 5

5. COMMITMENTS AND CONTINGENCIES

Guarantees

Indemnifications

In the normal course of business, the Company may agree to indemnify other parties, including customers, lessors and parties to other transactions with the Company, with respect to certain matters such as breaches of representations or covenants or intellectual property infringement or other claims made by third parties. These agreements may limit the time within which an indemnification claim can be made and the amount of the claim. In addition, the Company has entered into indemnification agreements with its officers and directors.

It is not possible to determine the maximum potential amount of the Company's exposure under these indemnification agreements due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each particular agreement. Historically, payments made by the Company under these agreements have not had a material impact on the Company's operating results, financial position or cash flows. Under some of these agreements, however, the Company's potential indemnification liability might not have a contractual limit.

Product Warranties

The Company accrues for the estimated costs that may be incurred under its product warranties upon revenue recognition.

Operating Leases

The Company's operating lease obligations consist of the Company's principal facility and various leased facilities under operating lease agreements, which expire on various dates from fiscal 2018 through fiscal 2026. The Company leases its headquarters facility in San Jose, California under an operating lease agreement that expires in October 2019.

On January 23, 2018, the Company entered into a 132-month lease to rent approximately 162,000 square feet for a new Company headquarters in San Jose, California. The lease term begins on January 1, 2019 or such earlier date on which the Company first commences to conduct business on the premises. The Company has the option to extend the lease for one additional five-year term, on substantially the same terms and conditions as the prior term but with the base rent rate adjusted to fair market value at that time.

Base rent is approximately $512,000 per month for the first 12 months of the lease, and the rate increases 3% on each anniversary of the lease commencement date. The Company is entitled to full rent abatement during the first 10 months of the lease term and 50% rent abatement during the next four months of the lease term. The Company is also responsible for paying its proportionate share of building and common area operating expenses, property taxes and insurance costs.

The Company is entitled to a one-time tenant improvement allowance of approximately $13.3 million, the full amount of which must be used within 12 months of the lease commencement date.

The Company has procured a standby letter of credit (LOC) in the amount of $8.1 million for the benefit of the landlord, which may be drawn down in the event the Company defaults in the payment of its obligations under the lease. The LOC is disclosed as restricted cash on the Company's consolidated balance sheets for the year ending March 31, 2018.

At March 31, 2018, future minimum annual lease payments under non-cancelable operating leases were as follows (in thousands):

Year ending March 31:
2019	$	5,876
2020		6,754
2021		9,093
2022		8,970
2023		8,448
Thereafter		54,936
Total	$	94,077

Rent expense for the years ended March 31, 2018, 2017 and 2016 was $5.6 million, $5.1 million and $2.1 million, respectively.

Capital Leases

The Company has non-cancelable capital lease agreements for office and computer equipment bearing interest at various rates. At March 31, 2018, future minimum annual lease payments under non-cancelable capital leases were as follows (in thousands):

Year ending March 31:
2019	$	1,054
2020		456
2021		53
2022		5
Total minimum payments		1,568
Less: Amount representing interest		(60)
		1,508
Less: Short-term portion of capital lease obligations		(1,049)
Long-term portion of capital lease obligations	$	459

Capital leases included in computer and office equipment were approximately $3.5 million and $2.7 million at March 31, 2018 and 2017, respectively. Total accumulated amortization was approximately $1.8 million and $1.0 million at March 31, 2018 and 2017, respectively.

Minimum Third-Party Customer Support Commitments

The Company's contract with third-party customer support vendors include minimum monthly commitments and the requirements to maintain the service level for several months. The total contractual minimum commitments were approximately $1.4 million at March 31, 2018.

Minimum Third-Party Network Service Provider Commitments

The Company entered into contracts with multiple vendors for third-party network service which expire on various dates through fiscal 2020. At March 31, 2018, future minimum annual payments under these third-party network service contracts were as follows (in thousands):

Year ending March 31:
2019	$	1,916
2020		8
Total minimum payments	$	1,924

Legal Proceedings

The Company, from time to time, is involved in various legal claims or litigation, including patent infringement claims that can arise in the normal course of the Company's operations. Pending or future litigation could be costly, could cause the diversion of management's attention and could upon resolution, have a material adverse effect on the Company's business, results of operations, financial condition and cash flows.

State and Municipal Taxes

From time to time, the Company has received inquiries from a number of state and municipal taxing agencies with respect to the remittance of sales, use, telecommunications, excise, and income taxes. Several jurisdictions currently are conducting tax audits of the Company's records. The Company collects or has accrued for taxes that it believes are required to be remitted. The amounts that have been remitted have historically been within the accruals established by the Company. The Company adjusts its accrual when facts relating to specific exposures warrant such adjustment.

STOCKHOLDERS' EQUITY - Note 6

12 Months Ended

Mar. 31, 2018

Equity [Abstract]

STOCKHOLDERS' EQUITY - Note 6

6. STOCKHOLDERS' EQUITY

In May 2006, the Company's board of directors approved the 2006 Stock Plan ("2006 Plan"). The Company's stockholders subsequently adopted the 2006 Plan in September 2006, and became effective in October 2006. The Company reserved 7,000,000 shares of the Company's common stock for issuance under this plan. The 2006 Plan provides for granting incentive stock options to employees and non-statutory stock options to employees, directors or consultants. The stock option price of incentive stock options granted may not be less than the fair market value on the effective date of the grant. Other types of options and awards under the 2006 Plan may be granted at any price approved by the administrator, which generally will be the compensation committee of the board of directors. Options generally vest over four years and expire ten years after grant. In 2009, the 2006 Plan was amended to provide for the granting of stock purchase rights. The 2006 Plan expired in May 2016. As of March 31, 2018, there are no shares available for future grants under the 2006 Plan.

2012 Equity Incentive Plan

In June 2012, the Company's board of directors approved the 2012 Equity Incentive Plan ("2012 Plan"). The Company's stockholders subsequently adopted the 2012 Plan in July 2012, and became effective in August 2012. The Company reserved 4,100,000 shares of the Company's common stock for issuance under this plan. In August 2014 and 2016, the 2012 Plan was amended to allow for an additional 6,800,000 and 4,500,000 shares reserved for issuance, respectively. The 2012 Plan provides for granting incentive stock options to employees and non-statutory stock options to employees, directors or consultants, and granting of stock appreciation rights, restricted stock, restricted stock units and performance units, qualified performance-based awards and stock grants. The stock option price of incentive stock options granted may not be less than the fair market value on the effective date of the grant. Other types of options and awards under the 2012 Plan may be granted at any price approved by the administrator, which generally will be the compensation committee of the board of directors. Options, restricted stock and restricted stock units generally vest over four years and expire ten years after grant. The 2012 Plan expires in June 2022. As of March 31, 2018, 0.3 million shares remained available under the 2012 Plan.

2013 New Employee Inducement Incentive Plan

In September 2013, the Company's board of directors approved the 2013 New Employee Inducement Incentive Plan ("2013 Plan"). The Company reserved 1,000,000 shares of the Company's common stock for issuance under this plan. In November 2014, the 2013 Plan was amended to allow for an additional 1,200,000 shares reserved for issuance. In July 2015, the Plan was amended to allow for an additional 1,200,000 shares reserved for issuance. In connection with its approval of the August 2016 amendments to the 2012 Plan, the Board of Directors has approved the suspension of future grants under the 2013 Plan, which became effective immediately upon stockholder approval of the proposed 2012 Plan amendments in August 2016. In addition, the 2013 Plan was amended to reduce the number of shares reserved for issuance under the 2013 Plan to the number of shares that are then subject to outstanding awards under the 2013 Plan, leaving no shares available for future grant. The 2013 Plan provided for granting non-statutory stock options, stock appreciation rights, restricted stock, restricted stock and performance units and stock grants solely to newly hired employees as a material inducement to accepting employment with the Company. Options were granted at market value on the grant date under the 2013 Plan, unless determined otherwise at the time of grant by the administrator, which generally will be the compensation committee of the board of directors. Options generally expire ten years after grant.

2017 New Employee Inducement Incentive Plan

In October 2017, the Company's board of directors approved the 2017 New Employee Inducement Incentive Plan ("2017 Plan"). The Company reserved 1,000,000 shares of the Company's common stock for issuance under this plan. In January 2018, the 2017 Plan was amended to allow for an additional 1,500,000 shares reserved for issuance. The 2017 Plan provides for granting non-statutory stock options, stock appreciation rights, restricted stock, and performance units and stock grants solely to newly hired employees as a material inducement to accepting employment with the Company. Options are granted at market value on the grant date under the 2017 Plan, unless determined otherwise at the time of grant by the administrator, which generally will be the compensation committee of the board of directors. Options generally expire ten years after grant. As of March 31, 2018, 1.3 million shares remained available under the 2017 plan.

Stock-Based Compensation

The following table summarizes stock-based compensation expense (in thousands):

		Years Ended March 31,
		2018		2017		2016
Cost of service revenue	$	1,821	$	1,732	$	1,159
Cost of product revenue		-		-		-
Research and development		6,418		3,762		2,914
Sales and marketing		11,654		8,832		6,133
General and administrative		9,283		7,136		6,128
Total	$	29,176	$	21,462	$	16,334

Stock Options, Stock Purchase Right and Restricted Stock Unit Activity

Stock Option activity under all the Company's stock option plans since March 31, 2015, is summarized as follows:

			Weighted
			Average
			Exercise
	Number of		Price
	Shares		Per Share
Outstanding at March 31, 2015	5,327,907	$	5.19
Granted	723,776		8.63
Exercised	(1,162,175)		2.56
Canceled/Forfeited	(96,242)		8.06
Outstanding at March 31, 2016	4,793,266		6.29
Granted	407,392		14.63
Exercised	(603,998)		2.34
Canceled/Forfeited	(134,248)		8.41
Outstanding at March 31, 2017	4,462,412		7.52
Granted	609,135		14.95
Exercised	(773,897)		3.95
Canceled/Forfeited	(299,365)		13.05
Outstanding at March 31, 2018	3,998,285	$	8.93

Vested and expected to vest at March 31, 2018	3,998,285	$	8.93
Exercisable at March 31, 2018	3,025,925	$	7.66

Stock Purchase Right activity since March 31, 2015 is summarized as follows:

			Weighted	Weighted
			Average	Average
			Grant-Date	Remaining
	Number of		Fair Market	Contractual
	Shares		Value	Term (in Years)
Balance at March 31, 2015	223,835	$	5.92	1.50
Granted	-		-
Vested and released	(115,789)		5.32
Forfeited	(25,875)		7.40
Balance at March 31, 2016	82,171		6.30	0.76
Granted	-		-
Vested and released	(69,426)		6.00
Forfeited	(1,375)		6.72
Balance at March 31, 2017	11,370		8.10	1.09
Granted	-		-
Vested and released	(6,395)		8.26
Forfeited	-		-
Balance at March 31, 2018	4,975	$	7.88	0.10

Restricted Stock Unit activity since March 31, 2015 is summarized as follows:

			Weighted	Weighted Average
	Number of		Average Grant	Remaining Contractual
	Shares		Date Fair Value	Term (in Years)
Balance at March 31, 2015	2,698,686	$	7.33	1.88
Granted	2,681,997		8.78
Vested and released	(589,788)		7.79
Forfeited	(246,096)		8.15
Balance at March 31, 2016	4,544,799		8.08	1.67
Granted	2,491,877		15.15
Vested and released	(1,600,831)		7.89
Forfeited	(496,795)		9.56
Balance at March 31, 2017	4,939,050		11.57	1.55
Granted	3,481,870		14.41
Vested and released	(1,833,038)		10.27
Forfeited	(652,339)		12.73
Balance at March 31, 2018	5,935,543	$	13.51	1.60

The total intrinsic value of options exercised in the years ended March 31, 2018, 2017 and 2016 was $9.0 million, $7.2 million and $9.2 million, respectively. As of March 31, 2018, there was $63.9 million of unamortized stock-based compensation expense related to unvested stock options and awards which is expected to be recognized over a weighted average period of approximately 2.5 years.

1996 Employee Stock Purchase Plan

The Company's 1996 Stock Purchase Plan ("Employee Stock Purchase Plan") was adopted in June 1996 and became effective upon the closing of the Company's initial public offering in July 1997. Under the Employee Stock Purchase Plan, 500,000 shares of common stock were initially reserved for issuance. At the start of each fiscal year, the number of shares of common stock subject to the Employee Stock Purchase Plan increases so that 500,000 shares remain available for issuance. In May 2006, the Company's board of directors approved a ten-year extension of the Employee Stock Purchase Plan. Stockholders approved a ten-year extension of the Employee Stock Purchase Plan at the 2006

Annual Meeting of Stockholders held September 18, 2006. The Employee Stock Purchase Plan is effective until August 2017. During fiscal 2018, 2017 and 2016, approximately 0.4 million, 0.3 million, and 0.4 million shares, respectively, were issued under the Employee Stock Purchase Plan.

The Employee Stock Purchase Plan permits eligible employees to purchase common stock through payroll deductions at a price equal to 85% of the fair market value of the common stock at the beginning of each two-year offering period or the end of a six month purchase period, whichever is lower. When the Employee Stock Purchase Plan was reinstated in fiscal 2005, the offering period was reduced from two years to one year. The contribution amount may not exceed ten percent of an employee's base compensation, including commissions, but not including bonuses and overtime. In the event of a merger of the Company with or into another corporation or the sale of all or substantially all of the assets of the Company, the Employee Stock Purchase Plan provides that a new exercise date will be set for each option under the plan which exercise date will occur before the date of the merger or asset sale.

As of March 31, 2018, there was approximately $0.5 million of total unrecognized compensation cost related to employee stock purchases. This cost is expected to be recognized over a weighted average period of 0.5 years.

Assumptions Used to Calculate Stock-Based Compensation Expense

The fair value of each of the Company's option grants has been estimated on the date of grant using the Black-Scholes pricing model with the following assumptions:

		Years Ended March 31,
		2018		2017		2016
Expected volatility		41%		44%		53%
Expected dividend yield		-		-		-
Risk-free interest rate		1.8% to 2.4%		1.1% to 2.2%		1.5% to 1.8%
Weighted average expected term (in years)		4.8 years		4.9 years		5.4 years

Weighted average fair value of options granted	$	5.70	$	5.74	$	4.17

The estimated fair value of stock purchase rights granted under the Employee Stock Purchase Plan was estimated using the Black-Scholes pricing model with the following weighted-average assumptions:

		Years Ended March 31,
		2018		2017		2016
Expected volatility		40%		37%		43%
Expected dividend yield		-		-		-
Risk-free interest rate		1.33%		0.65%		0.39%
Weighted average expected term (in years)		0.8 years		0.8 years		0.8 years

Weighted average fair value of rights granted	$	4.10	$	4.19	$	3.25

Stock Repurchases

In October 2015, the Company's board of directors authorized the Company to purchase an additional $15.0 million of its common stock from time to time until October 20, 2016 under the 2015 Repurchase Plan. The plan expired in October 2016 with an unused authorized repurchase amount of $15.0 million.

In May 2017, the Company's board of directors authorized the Company to purchase $25.0 million of its common stock from time to time under the 2017 Repurchase Plan (the "2017 Plan"). The 2017 Plan expires when the maximum purchase amount is reached, or upon the earlier revocation or termination by the board of directors. The remaining amount available under the 2017 Plan at March 31, 2018 was approximately $7.1 million.

INCOME TAXES - Note 7

12 Months Ended

Mar. 31, 2018

Notes to Financial Statements

INCOME TAXES - Note 7

7. INCOME TAXES

The Tax Cuts and Jobs Act ("Tax Act") was enacted on December 22, 2017. Among numerous provisions, the Tax Act reduces the U.S. federal corporate tax rate from 35% to 21%, requires companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred, and creates new taxes on certain foreign sourced earnings.

The Company remeasured certain deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future, which is generally 21%. Accordingly, deferred tax assets were adjusted down by about $23 million in the period ended December 31, 2017. However, because the Company recorded a full valuation allowance, the decrease in deferred tax assets from the tax rate change was fully offset by a corresponding decrease in valuation allowance, and therefore, resulted in no impact to the tax expense.

The one-time transition tax is based on the Company's total post-1986 earnings and profits (E&P) for which U.S. income taxes have been previously deferred. The Company recorded no one-time transition tax liability for its foreign subsidiaries as the Company's preliminary calculations concluded it does not have any untaxed foreign accumulated earnings as of the measurement dates.

In response to the Tax Act, the SEC staff issued guidance on accounting for the tax effects of the Tax Act. The guidance provides a one-year measurement period for companies to complete the accounting. The Company is still analyzing certain aspects of the Act and refining its calculations, which could potentially affect the measurement of these balances or give rise to new deferred tax amounts. The Company has made a reasonable estimate of the effects on its existing deferred tax balances. The Company will continue to make and refine its calculations as additional analysis and more thorough understanding of the tax law is completed.

For the years ended March 31, 2018, 2017 and 2016, the Company recorded a (benefit) provision for income taxes of approximately $66.3 million, ($0.1) million and ($0.8) million, respectively. The components of the consolidated (benefit) provision for income taxes for fiscal 2018, 2017 and 2016 consisted of the following (in thousands):

		March 31,
Current:		2018		2017		2016
Federal	$	(395)	$	(7)	$	97
State		256		588		551
Foreign		185		112		71
Total current tax provision		46		693		719

Deferred
Federal		59,837		1,506		95
State		6,664		(1,095)		(854)
Foreign		(253)		(1,230)		(807)
Total deferred tax (benefit) provision		66,248		(819)		(1,566)
Income tax (benefit) provision	$	66,294	$	(126)	$	(847)

The Company's income (loss) from continuing operations before income taxes included ($19.7) million, ($8.4) million and ($6.9) million of foreign subsidiary loss for the fiscal years ended March 31, 2018, 2017 and 2016, respectively. The Company is permanently reinvesting the earnings of its profitable foreign subsidiaries. The Company intends to reinvest these profits in expansion of overseas operations. If the Company were to remit these earnings, the tax impact would be immaterial.

Deferred tax assets and (liabilities) were comprised of the following (in thousands):

		March 31,
		2018		2017
Net operating loss carryforwards	$	40,465	$	36,427
Research and development and other credit carryforwards		11,761		8,614
Stock-based compensation		6,389		6,942
Reserves and allowances		3,181		3,266
Fixed assets and intangibles		378		(3,688)
Net non-current deferred tax assets		62,174		51,561
Valuation allowance		(62,174)		(2,934)
Total	$	-	$	48,627

The Company assesses the realizability of deferred tax assets based on the available evidence, including a history of taxable income and estimates of future taxable income. In assessing the realizability of deferred tax assets, The Company considers whether it is more likely than not that all or some portion of deferred tax assets will not be realized. During the year ended March 31, 2018, the Company recorded a full valuation allowance against its deferred tax assets as it considered the cumulative losses in recent periods to be a substantial negative evidence. At March 31, 2018, management determined that a valuation allowance of approximately $62.2 million was needed compared with approximately $2.9 million as of March 31, 2017.

At March 31, 2018, the Company had net operating loss carryforwards for federal and state income tax purposes of approximately $157.6 million and $27.5 million, respectively, which expire at various dates between 2029 and 2037. In addition, at March 31, 2018, the Company had research and development credit carryforwards for federal and California tax reporting purposes of approximately $7.2 million and $9.1 million, respectively. The federal income tax credit carryforwards will expire at various dates between 2021 and 2038, while the California income tax credits will carry forward indefinitely. A reconciliation of the Company's provision (benefit) for income taxes to the amounts computed using the statutory U.S. federal income tax rate is as follows (in thousands):

		Years Ended March 31,
		2018		2017		2016
Tax provision at statutory rate	$	(11,790)	$	(1,652)	$	(2,029)
State income taxes before valuation allowance,
net of federal effect		(1,042)		108		9
Foreign tax rate differential		(1,188)		885		(769)
Research and development credits		(2,189)		(1,484)		(1,253)
Change in valuation allowance		56,663		(287)		(1,555)
Compensation/option differences		(4,965)		(246)		(471)
Non-deductible compensation		1,132		1,079		944
Tax Act rate change impact		22,630		-		-
Acquisition costs		-		54		230
Expiring California loss carry-forwards		-		-		1,626
Foreign loss not benefited		6,847		780		2,342
Other		196		637		79
Total income tax provision	$	66,294	$	(126)	$	(847)

For fiscal year ended March 31, 2018, a blended statutory U.S. federal income tax rate of 34% for 9 months and 21% for 3 months was used. For other years, the statutory federal rate of 34% was used.

The Company recognizes the tax benefit from uncertain tax positions if it is more likely than not that the tax positions will be sustained on examination by the tax authorities, based on the technical merits of the position. The tax benefit is measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):

		Unrecognized Tax Benefits
		2018		2017		2016
Balance at beginning of year	$	3,331	$	2,881	$	2,420
Gross increases - tax position in prior period		-		-		82
Gross increases - tax position related to the current year		649		450		379
Balance at end of year	$	3,980	$	3,331	$	2,881

At March 31, 2018, the Company had a liability for unrecognized tax benefits of $4.0 million, all of which, if recognized, would favorably affect the company's effective tax rate. The Company does not expect its unrecognized tax benefits to change significantly over the next 12 months.

The Company's policy for recording interest and penalties associated with tax examinations is to record such items as a component of operating expense income before taxes. During the fiscal years ended March 31, 2018, 2017 and 2016, the Company did not recognize any interest or penalties related to unrecognized tax benefits.

Utilization of the Company's net operating loss and tax credit carryforwards can become subject to a substantial annual limitation due to the ownership change limitations provided by Section 382 of the Internal Revenue Code and similar state provisions. Such an annual limitation could result in the expiration or elimination of the net operating loss and tax credit carryforwards before utilization. The Company has performed an analysis of its changes in ownership under Section 382 of the Internal Revenue Code. The Company currently believes that the Section 382 limitation will not limit utilization of the carryforwards prior to their expiration, with the exception of certain acquired loss and tax credit carryforwards.

The Company files U.S. federal and state income tax returns in jurisdictions with varying statutes of limitations. The Company is currently under examination by the Internal Revenue Service for the fiscal year ended March 31, 2016 and by the Illinois Department of Revenue for the fiscal years ended March 31, 2015 and 2016. It is too early to predict the outcome of the ongoing examinations. The tax years fiscal 1999 through fiscal 2018 generally remain subject to examination by federal and most state tax authorities.

NET INCOME (LOSS) PER SHARE - Note 8

12 Months Ended

Mar. 31, 2018

Notes to Financial Statements

NET INCOME (LOSS) PER SHARE - Note 8

8. NET INCOME (LOSS) PER SHARE

The following is a reconciliation of the weighted average number of common shares outstanding used in calculating basic and diluted net income (loss) per share (in thousands, except share and per share data):

		Years Ended March 31,
		2018		2017		2016
Numerator:
Net loss available to common stockholders	$	(104,497)	$	(4,751)	$	(5,120)

Denominator:
Denominator for basic calculation		92,017		90,340		88,477
Denominator for diluted calculation		92,017		90,340		88,477

Net loss per share:
Basic	$	(1.14)	$	(0.05)	$	(0.06)
Diluted	$	(1.14)	$	(0.05)	$	(0.06)

The following shares attributable to outstanding stock options and restricted stock purchase rights were excluded from the calculation of diluted earnings per share because their inclusion would have been antidilutive (in thousands):

	Years Ended March 31,
	2018	2017	2016
Common stock options	3,998	4,462	4,793
Stock units	5,940	4,950	4,628
	9,938	9,412	9,421

SEGMENT REPORTING - Note 9

12 Months Ended

Mar. 31, 2018

Segment Reporting [Abstract]

SEGMENT REPORTING - Note 9

9. SEGMENT REPORTING

The following tables set forth the segment and geographic information for each period (in thousands):

		Revenue for the Years Ended March 31,
		2018		2017		2016
Americas (principally US)	$	266,034	$	227,914	$	185,241
Europe (principally UK)		30,466		25,474		24,095
	$	296,500	$	253,388	$	209,336

Revenue is based upon the destination of shipments and the customers' service address. In fiscal 2018, 2017 and 2016 intersegment revenues of approximately $15.1 million, $4.9 million, $1.0 million, respectively, were eliminated in consolidation, and have been excluded from the table above.

		Depreciation and Amortization for the Years Ended March 31,
		2018		2017		2016
Americas (principally US)	$	10,619	$	6,842	$	5,776
Europe (principally UK)		5,098		3,595		3,231
	$	15,717	$	10,437	$	9,007

		Net Income (Loss) for the Years Ended March 31,
		2018		2017		2016
Americas (principally US)	$	(84,792)	$	2,557	$	940
Europe (principally UK)		(19,705)		(7,308)		(6,060)
	$	(104,497)	$	(4,751)	$	(5,120)

		March 31,
		2018				2017
		Total Assets		Property and Equipment, net		Total Assets		Property and Equipment, net
Americas (principally US)	$	240,099	$	27,270	$	284,011	$	19,480
Europe (principally UK)		37,110		8,462		49,844		4,581
	$	277,209	$	35,732	$	333,855	$	24,061

ACQUISITIONS - Note 10

12 Months Ended

Mar. 31, 2018

Business Combinations [Abstract]

ACQUISITIONS - Note 10

10. ACQUISITIONS

LeChat, Inc.

On January 5, 2017, the Company entered into an Agreement and Plan of Merger (the "Agreement") with the preferred and common shareholders LeChat Inc. (LeChat) for the purchase of all the outstanding preferred and common shares of LeChat. The transaction closed on January 6, 2017. The total aggregate purchase price was $3.1 million, consisting of approximately $2.4 million paid to the preferred shareholders at closing, $0.2 million paid to the common shareholders at closing, and approximately $0.5 million in cash deposited into escrow to be held for two years as security against indemnity claims made by the Company after the closing date.

The Company recorded the acquired tangible and identifiable intangible assets and liabilities assumed based on their estimated fair values. The excess of the consideration transferred over the aggregate fair values of the assets acquired and liabilities assumed was recorded as goodwill. The amount of goodwill recognized was primarily attributable to the expected contributions of the entity to the overall corporate strategy in addition to synergies and acquired workforce of the acquired business. The finite-lived intangible asset consisted of developed technology, with an estimated weighted-average useful life of two years. The fair value assigned to identifiable intangible assets acquired was based on estimates and assumptions made by management using a cost approach method. Intangible assets are amortized on a straight-line basis.

The fair values of the assets acquired and liabilities assumed are as follows (in thousands):

		Fair Value
Assets acquired:
Cash	$	231
Intangible assets		1,200
Other non-current assets		428
Total assets acquired		1,859
Liabilities assumed:
Current liabilities		(324)
Total liabilities assumed		(324)
Net identifiable assets acquired		1,535
Goodwill		1,580
Total consideration transferred	$	3,115

None of the goodwill recognized is deductible for income tax purposes.

Revenue from LeChat from the date of acquisition to March 31, 2017 was immaterial. Total acquisition related costs were immaterial. Pro forma information has not been presented as the impact to the Company's Consolidated Financial Statements was not material.

DXI Group Limited

On May 26, 2015, the Company entered into a share purchase agreement with the shareholders of DXI Limited, and its wholly owned subsidiaries, (collectively DXI) for the purchase of the entire share capital of DXI. The transaction closed effective May 29, 2015. The total aggregate purchase price was approximately $22.5 million, consisting of $18.7 million in cash paid to the DXI shareholders at closing, and $3.8 million in cash deposited into escrow to be held for two years as security against indemnity claims made by the Company after the closing date. The cash escrow is to be released in annual installments over two years.

The Company recorded the acquired tangible and identifiable intangible assets and liabilities assumed based on their estimated fair values. The excess of the consideration transferred over the aggregate fair values of the assets acquired and liabilities assumed is recorded as goodwill. The amount of goodwill recognized is primarily attributable to the expected contributions of the entity to the overall corporate strategy in addition to synergies and acquired workforce of the acquired business. The finite-lived intangible assets consist of the following: customer relationships, with an estimated weighted-average useful life of two and five years; and developed technology, with an estimated weighted-average useful life of six years. The indefinite lived intangible asset consisted of a tradename. The fair value assigned to identifiable intangible assets acquired was based on estimates and assumptions made by management using income approach methods. Intangible assets are amortized on a straight-line basis.

The fair values of the assets acquired and liabilities assumed are as follows (in thousands):

		Fair Value
Assets acquired:
Cash	$	1,318
Current assets		2,016
Property and equipment		1,453
Intangible assets		13,374
Total assets acquired		18,161
Liabilities assumed:
Current liabilities and non-current liabilities		(5,734)
Total liabilities assumed		(5,734)
Net identifiable assets acquired		12,427
Goodwill		10,125
Total consideration transferred	$	22,552

None of the goodwill recognized is deductible for income tax purposes.

DXI contributed revenue of approximately $10.0 million and a net loss of approximately ($3.2) million for the period from the date of acquisition to March 31, 2016. Total acquisition related costs were approximately $0.9 million, which were included in general and administrative expenses. The Company determined that it is impractical to include pro forma information given the difficulty in obtaining the historical financial information of DXI. Inclusion of such information would require the Company to make estimates and assumptions regarding DXI's historical financial results that the Company believes may ultimately prove inaccurate.

In the second quarter of fiscal 2016, the Company updated its analysis of the valuation of the assets and liabilities acquired, which resulted in an increase of approximately $1.1 million to goodwill, a decrease in intangible assets of approximately $1.3 million, and a decrease to current and non-current liabilities of $0.2 million, compared with the preliminary estimates recorded for the first quarter of fiscal 2016. The impact of the change in preliminary values on the first quarter of fiscal 2016 statement of operations was not material. Therefore, no measurement period adjustment was required.

Quality Software Corporation

On June 3, 2015, the Company entered into an asset purchase agreement with the shareholder of Quality Software Corporation (QSC) and other parties affiliated with the shareholder and QSC for the purchase of certain assets as per the purchase agreement. The total aggregate fair value of the consideration was approximately $2.9 million, which $2.2 million was paid in cash to the QSC shareholder at closing. As part of the aggregate purchases price, there is also $0.5 million in contingent consideration payable subject to attainment of certain revenue and product release milestones for the acquired business, and $0.3 million in cash held by the Company in escrow to be retained for two years as security against indemnity claims made by the Company after the closing date. The preliminary fair value of the contingent consideration and escrow amounts was $0.7 million at the acquisition date.

The Company recorded the acquired identifiable intangible assets and liabilities assumed based on their estimated fair values. The excess of the consideration transferred over the aggregate fair values of the assets acquired and liabilities assumed is recorded as goodwill. The amount of goodwill recognized is primarily attributable to the expected contributions of the entity to the overall corporate strategy in addition to synergies and acquired workforce of the acquired business. The finite-lived intangible assets consist of the following: customer relationships, with an estimated weighted-average useful life of five years; and developed technology, with an estimated weighted-average useful life of six years. The indefinite lived intangible asset consisted of in-process research and development and a tradename. The fair value assigned to identifiable intangible assets acquired was based on estimates and assumptions made by management using income approach methods. Intangible assets are amortized on a straight-line basis.

The fair values of the assets acquired and liabilities assumed are as follows (in thousands):

		Fair Value
Assets acquired:
Intangible assets	$	1,100
Goodwill		1,789
Total consideration transferred	$	2,889

QSC's contributions to revenue and income for the period from the date of acquisition to March 31, 2016 were not material. Total acquisition related costs were approximately $0.1 million, which were included in general and administrative expenses. The Company determined that the acquisition was not deemed to be a material business combination and it is impractical to include such pro forma information given the difficulty in obtaining the historical financial information of QSC. Inclusion of such information would require the Company to make estimates and assumptions regarding QSC's historical financial results that the Company believes may ultimately prove inaccurate.

In the fourth quarter of fiscal 2016, the Company updated its analysis of the valuation of the assets and liabilities acquired, which resulted in an increase of approximately $0.1million to goodwill, and a decrease in intangible assets of approximately $0.1 million compared with what was recorded for the third quarter of fiscal 2016. The impact of the change in preliminary values on the first quarter of fiscal 2016 statement of operations was not material. Therefore, no measurement period adjustment was required.

SUBSEQUENT EVENTS - Note 11

12 Months Ended

Mar. 31, 2018

Subsequent Events [Abstract]

SUBSEQUENT EVENTS - Note 11

11. SUBSEQUENT EVENTS

In April 2018, the Company entered into an asset purchase agreement with MarianaIQ, Inc. The total aggregate purchase price was $3.5 million, consisting of approximately $2.6 million paid at closing and $0.9 million in cash deposited into escrow to be held for fifteen months as security against indemnity claims made by the Company after the closing date.

CONSOLIDATED QUARTERLY FINANCIAL DATA (Unaudited) - Note 12

12 Months Ended

Mar. 31, 2018

Consolidated Quarterly Financial Data

CONSOLIDATED QUARTERLY FINANCIAL DATA (Unaudited) - Note 12

12. CONSOLIDATED QUARTERLY FINANCIAL DATA (UNAUDITED)

In thousands, except per share data amounts:

		QUARTER ENDED
		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,		Dec. 31,		Sept. 30,		June 30,
		2018		2017		2017		2017		2017		2016		2016		2016
Service revenue	$	75,325	$	71,891	$	68,123	$	65,091	$	62,654	$	60,149	$	57,717	$	55,296
Product revenue		4,019		3,684		4,360		4,007		3,834		3,527		5,466		4,745
Total revenue		79,344		75,575		72,483		69,098		66,488		63,676		63,183		60,041
Operating expenses:
Cost of service revenue		13,952		12,318		12,757		11,662		10,803		10,525		10,837		10,235
Cost of product revenue		5,826		4,675		5,098		4,884		4,187		4,240		5,782		5,505
Research and development		10,016		8,527		8,311		7,943		7,142		7,095		6,505		6,710
Sales and marketing		52,940		48,830		41,163		41,110		38,228		35,667		33,691		31,691
General, and administrative		10,340		10,003		9,616		8,956		9,814		7,852		6,747		6,801
Impairment of goodwill, intangible
assets and equipment		-		9,469		-		-		-		-		-		-
Total operating expenses		93,074		93,822		76,945		74,555		70,174		65,379		63,562		60,942
Loss from operations		(13,730)		(18,247)		(4,462)		(5,457)		(3,686)		(1,703)		(379)		(901)
Other income, net		610		569		463		2,052		583		408		391		410
Loss from operations before provision
(benefit) for income taxes		(13,120)		(17,678)		(3,999)		(3,405)		(3,103)		(1,295)		12		(491)
Provision (benefit) for income taxes		142		70,842		(3,453)		(1,236)		(178)		30		(15)		37
Net income (loss)	$	(13,262)	$	(88,520)	$	(546)	$	(2,169)	$	(2,925)	$	(1,325)	$	27	$	(528)

Net income (loss) per share:
Basic	$	(0.14)	$	(0.96)	$	(0.01)	$	(0.02)	$	(0.03)	$	(0.01)	$	0.00	$	(0.01)
Diluted	$	(0.14)	$	(0.96)	$	(0.01)	$	(0.02)	$	(0.03)	$	(0.01)	$	0.00	$	(0.01)

Shares used in per share calculations:
Basic		92,526		92,029		91,689		91,643		91,175		90,774		89,987		89,434
Diluted		92,526		92,029		91,689		91,643		91,175		90,774		93,447		89,434

Schedule II Valuation and Qualifying Accounts

12 Months Ended

Mar. 31, 2018

Schedule Ii Valuation And Qualifying Accounts

Schedule of Valuation and Qualifying Accounts Disclosure

SCHEDULE II
VALUATION AND QUALIFYING ACCOUNTS
(in thousands)

		Balance at		Additions				Balance
		Beginning		Charged to				at End
Description		of Year		Expenses		Deductions (a)		of Year
Total Allowance for Doubtful Accounts:
Year ended March 31, 2016:	$	416	$	509	$	(339)	$	586
Year ended March 31, 2017:	$	586	$	941	$	(573)	$	954
Year ended March 31, 2018:	$	954	$	250	$	(300)	$	904

(a) The deductions related to allowance for doubtful accounts represent accounts receivable which are written off.

Summary of Significant Accounting Policies (Policies)	12 Months Ended
Summary of Significant Accounting Policies (Policies)	Mar. 31, 2018
Notes to Financial Statements
Company	*THE COMPANY* 8x8, Inc. ("8x8" or the "Company") was incorporated in California in February 1987 and was reincorporated in Delaware in December 1996. The Company is a leading provider of enterprise cloud communications solutions, including unified communications, team collaboration, contact center, and analytics, integrated over a single Software-as-a-Service (SaaS) platform. The 8x8 Communications Cloud^TM offers businesses a secure, reliable and simplified approach to transitioning their legacy, on-premises communications systems to the cloud. This comprehensive solution, built from owned and managed cloud technologies, enables customers to rely on a single provider for their global communications and contact center capabilities as well as customer support requirements. 8x8 customers are spread across more than 100 countries and range from small businesses to large enterprises. Since fiscal 2004, substantially all revenue has been generated from the sale of communications services and related hardware. Prior to fiscal 2003, the Company's main business was Voice over Internet Protocol semiconductors.
Fiscal Period	The Company's fiscal year ends on March 31 of each calendar year. Each reference to a fiscal year in these notes to the consolidated financial statements refers to the fiscal year ended March 31 of the calendar year indicated (for example, fiscal 2018 refers to the fiscal year ended March 31, 2018).
Principles of Consolidation	*PRINCIPLES OF CONSOLIDATION* The consolidated financial statements include the accounts of 8x8 and its subsidiaries. All material intercompany accounts and transactions have been eliminated.
Reclassification	*Reclassification* Certain software development costs capitalized in accordance with ASC 350-40, Internal-Use Software (ASC 350-40), that were presented in other long-term assets in the Company's consolidated balance sheets as of March 31, 2017 are presented as property and equipment for the consolidated balance sheet as of March 31, 2018. Assets in the amount of $7.7 million, net of accumulated amortization, have been reclassified in the consolidated balance sheet as of March 31, 2017 to conform to the current period presentation. The reclassification had no impact on the Company's previously reported consolidated net income (loss), cash flows, or basic or diluted net income per share amounts. Certain amounts previously reported within the Company's consolidated balance sheets and consolidated statements of cash flows have been reclassified within each financial statement section to conform to the current period presentation. The reclassification had no impact on the Company's previously reported net loss, cash flows, or basic or diluted net loss per share amounts.
Use of Estimates	*USE OF ESTIMATES* The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and equity and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates, including, but not limited to, those related to bad debts, returns reserve for expected cancellations, income and sales tax, and litigation and other contingencies. The Company bases its estimates on historical experience and on various other assumptions. Actual results could differ from those estimates under different assumptions or conditions.
Service Revenue	Service Revenue The Company recognizes service revenue, mainly from subscription services to its cloud-based voice, call center, video and collaboration solutions, when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, price is fixed or determinable and collectability is reasonably assured. The Company defers recognition of service revenues in instances when cash receipts are received before services are delivered and recognizes deferred revenues ratably, over the course of the contract, as services are provided. Under the terms of the Company's typical subscription agreements, new customers can terminate their service within 30 days of order placement and receive a full refund of fees previously paid. The Company has determined that it has sufficient history of subscriber conduct to make a reasonable estimate of cancellations within the 30-day trial period. Therefore, the Company recognizes new subscriber revenue that is fixed or determinable and that is not contingent on future performance or future deliverables in the month in which the new order was shipped, net of an allowance for expected cancellations. The Company recognizes revenue from product sales, mainly IP telephones, for which there are no related services to be rendered upon shipment to customers provided that persuasive evidence of an arrangement exists, the price is fixed or determinable, title has transferred, collection of resulting receivables is reasonably assured, there are no customer acceptance requirements, and there are no remaining significant obligations. Gross outbound shipping and handling charges are recorded as revenue, and the related costs are included in cost of goods sold. Reserves for returns and allowances for customer sales are recorded at the time of shipment. In accordance with the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 605, Revenue Recognition, the Company records shipments to distributors, retailers, channel partners, and resellers, where the right of return exists, as deferred revenue. The Company defers recognition of revenue on product sales to resellers until the products have been sold to the end-customer. The Company records revenue net of any sales and service related taxes and mandatory government charges that are billed to its customers. The Company believes this approach results in consolidated financial statements that are more easily understood by users.
Product Revenue	Under the terms of the Company's typical subscription agreements, new customers can terminate their service within 30 days of order placement and receive a full refund of fees previously paid. The Company has determined that it has sufficient history of subscriber conduct to make a reasonable estimate of cancellations within the 30-day trial period. Therefore, the Company recognizes new subscriber revenue that is fixed or determinable and that is not contingent on future performance or future deliverables in the month in which the new order was shipped, net of an allowance for expected cancellations. The Company recognizes revenue from product sales, mainly IP telephones, for which there are no related services to be rendered upon shipment to customers provided that persuasive evidence of an arrangement exists, the price is fixed or determinable, title has transferred, collection of resulting receivables is reasonably assured, there are no customer acceptance requirements, and there are no remaining significant obligations. Gross outbound shipping and handling charges are recorded as revenue, and the related costs are included in cost of goods sold. Reserves for returns and allowances for customer sales are recorded at the time of shipment. In accordance with the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 605, Revenue Recognition, the Company records shipments to distributors, retailers, channel partners, and resellers, where the right of return exists, as deferred revenue. The Company defers recognition of revenue on product sales to resellers until the products have been sold to the end-customer. The Company records revenue net of any sales and service related taxes and mandatory government charges that are billed to its customers. The Company believes this approach results in consolidated financial statements that are more easily understood by users.
Revenue Recognition for Multiple Element Arrangements	Multiple Element Arrangements ASC 605-25, Revenue Recognition - Multiple Element Arrangements, requires that revenue arrangements with multiple deliverables be divided into separate units of accounting if the deliverables in the arrangement meet specific criteria. The provisioning of the cloud service with the accompanying IP telephone constitutes a revenue arrangement with multiple deliverables. For arrangements with multiple deliverables, the Company allocates the arrangement consideration to all units of accounting based on their relative selling prices. In such circumstances, the accounting principles establish a hierarchy to determine the relative selling price to be used for allocating arrangement consideration to units of accounting as follows: (i) vendor-specific objective evidence of fair value ("VSOE"), (ii) third-party evidence of selling price ("TPE"), and (iii) best estimate of the selling price ("BESP"). VSOE generally exists only when a Company sells the deliverable separately, on more than a limited basis, at prices within a relatively narrow range. When VSOE cannot be established, the Company attempts to establish the selling price of deliverables based on relevant TPE. TPE is determined based on manufacturer's prices for similar deliverables when sold separately, when possible. As the Company has historically been unable to establish a selling price using VSOE or TPE, it uses a BESP for the allocation of arrangement consideration. The objective of BESP is to determine the price at which the Company would transact a sale if the product or service was sold on a stand-alone basis. BESP is generally used for offerings that are not typically sold on a stand-alone basis or for new or highly customized offerings. The Company determines BESP for a product or service by considering multiple factors including, but not limited to: the price list established by its management which is typically based on general pricing practices and targeted gross margin of products and services sold; and analysis of pricing history of new arrangements, including multiple element and stand-alone transactions. In accordance with the guidance of ASC 605-25, when the Company enters into revenue arrangements with multiple deliverables the Company allocates arrangement consideration, among the products and subscriber services based on their relative selling prices. Arrangement consideration allocated to the sold products that is fixed or determinable and that is not contingent on future performance or future deliverables is recognized as product revenues during the period of the sale less the allowance for estimated returns during the 30-day trial period. Arrangement consideration allocated to subscriber services that is fixed or determinable and that is not contingent on future performance or future deliverables is recognized ratably as service revenues as the related services are provided, which is generally over the initial contract term.
Cash, Cash Equivalents and Investments	*CASH, CASH EQUIVALENTS AND INVESTMENTS* The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. At March 31, 2018 and 2017, all investments were classified as available-for-sale and reported at fair value, based either upon quoted prices in active markets, quoted prices in less active markets, or quoted market prices for similar investments, with unrealized gains and losses, net of related tax, if any, included in other comprehensive income (loss) and disclosed as a separate component of stockholders' equity. Realized gains and losses on sales of all such investments are reported within the caption of other income in the consolidated statements of operations and computed using the specific identification method. The Company classifies its investments as current based on the nature of the investments and their availability for use in current operations. The Company's investments in marketable securities are monitored on a periodic basis for impairment. In the event that the carrying value of an investment exceeds its fair value and the decline in value is determined to be other-than-temporary, an impairment charge is recorded and a new cost basis for the investment is established. These available-for-sale investments are primarily held in the custody of one major financial institution.
Accounts Receivable Allowance	*ACCOUNTS RECEIVABLE ALLOWANCE* The Company estimates the amount of uncollectible accounts receivable at the end of each reporting period based on the aging of the receivable balance, current and historical customer trends, and communications with its customers. Amounts are written off only after considerable collection efforts have been made and the amounts are determined to be uncollectible.
Property and Equipment	*PROPERTY AND EQUIPMENT* Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method. Estimated useful lives of three years are used for equipment, software and software development costs and five years for furniture and fixtures. Amortization of leasehold improvements is computed using the shorter of the remaining facility lease term or the estimated useful life of the improvements. Maintenance, repairs and ordinary replacements are charged to expense. Expenditures for improvements that extend the physical or economic life of the property are capitalized. Gains or losses on the disposition of property and equipment are recorded in the Consolidated Statements of Operations. Construction in progress primarily relates to costs to acquire or internally develop software for internal use not fully completed as of March 31, 2018.
Accounting for Long-Lived Assets	*ACCOUNTING FOR LONG-LIVED ASSETS* The Company reviews the recoverability of its long-lived assets, such as property and equipment, definite lived intangibles or capitalized software, when events or changes in circumstances occur that indicate that the carrying value of the asset or asset group may not be recoverable. Examples of such events could include a significant disposal of a portion of such assets, an adverse change in the market involving the business employing the related asset or a significant change in the operation or use of an asset. The assessment of possible impairment is based on the Company's ability to recover the carrying value of the asset or asset group from the expected future cash flows (undiscounted and without interest charges) of the related operations. If these cash flows are less than the carrying value of such asset or asset group, an impairment loss is recognized for the difference between estimated fair value and carrying value. The measurement of impairment requires management to estimate the fair value of long-lived assets and asset groups through future cash flows. See Note 4 for further discussion on impairment charges incurred.
Goodwill and Other Intangible Assets	*GOODWILL AND OTHER INTANGIBLE ASSETS* Goodwill represents the excess fair value of consideration transferred over the fair value of net assets acquired in business combinations. Goodwill and intangible assets with indefinite useful lives are not amortized but are tested annually for impairment and more often if there is an indicator of impairment. The Company has determined that it has three reporting units and allocates goodwill to the reporting units for the purposes of its annual impairment test. The Company's annual goodwill impairment test is performed on January 1 each year. No goodwill impairment charges were recorded in the periods presented. Intangible assets with finite useful lives are amortized on a straight-line basis over the periods benefited. Amortization expense for the customer relationship intangible asset is included in sales and marketing expenses. Amortization expense for technology is included in cost of service revenue.
Warranty Expense	*WARRANTY EXPENSE* The Company accrues for estimated product warranty cost upon revenue recognition. Accruals for product warranties are calculated based on the Company's historical warranty experience adjusted for any specific requirements.
Research, Development and Software Costs	*RESEARCH & DEVELOPMENT AND SOFTWARE COSTS* Software developed or obtained for internal use in accordance with ASC 350-40, Internal-Use Software (ASC 350-40), is capitalized during the application development stage. In accordance with authoritative guidance, the Company begins to capitalize costs to develop software when preliminary development efforts are successfully completed, management has authorized and committed project funding, and it is probable that the project will be completed, and the software will be used as intended. Once the project has been completed, these costs are amortized on a straight - line basis over the estimated useful life of the related asset, generally estimated to be three years. Costs incurred prior to meeting these criteria together with costs incurred for training and maintenance are expensed as incurred and recorded in research and development expense on our consolidated statements of operations. The Company classifies software development costs associated with the development of the Company's products and services as property and equipment. See Note 3 for further details.
Advertising Costs	*ADVERTISING COSTS* Advertising costs are expensed as incurred and were $14.5 million, $9.5 million and $8.5 million for the years ended March 31, 2018, 2017 and 2016, respectively.
Foreign Currency Translation	*FOREIGN CURRENCY TRANSLATION* The Company has determined that the functional currency of each of its foreign subsidiaries are the subsidiary's local currency. The Company believes this most appropriately reflects the current economic facts and circumstances of the Company's subsidiaries' operations. The assets and liabilities of the subsidiaries are translated at the applicable exchange rate as of the end of the balance sheet period and revenue and expenses are translated at an average rate over the period presented. Resulting currency translation adjustments are recorded as a component of accumulated other comprehensive income or loss within the stockholder's equity.
Business Segments	*BUSINESS SEGMENTS* The Company has two reportable segments, Americas and Europe. The Americas segment is primarily North America. The Europe segment is primarily the United Kingdom. Each operating segment provides similar products and services. The Company's chief operating decision makers, the Chief Executive Officer, Chief Financial Officer, and Chief Technology Officer, evaluate performance of the Company and makes decisions regarding allocation of resources based on geographical results. The Company's CODMs evaluate the performance of its operating segments based on revenues and net income. The Company does not allocate research and development, sales and marketing, general and administrative, amortization expense, stock-based compensation expense, and commitment and contingencies for each segment as management does not consider this information in its evaluation of the performance of each operating segment. Revenues are attributed to each segment based on the ordering location of the customer or ship to location.
Concentrations	*CONCENTRATIONS* Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and cash equivalents, investments and trade accounts receivable. The Company has cash equivalents and investment policies that limit the amount of credit exposure to any one financial institution and restrict placement of these funds to financial institutions evaluated as highly credit-worthy. The Company has not experienced any material losses relating to its investments. The Company sells its products to business customers and distributors. The Company performs ongoing credit evaluations of its customers' financial condition and generally does not require collateral from its customers. At March 31, 2018 and 2017, no customer accounted for more than 10% of accounts receivable. The Company purchases all of its hardware products from suppliers that manufacturer the hardware directly. The inability of any supplier to fulfill supply requirements of the Company could materially impact future operating results, financial position or cash flows. The Company also relies primarily on third-party network service providers to provide telephone numbers and PSTN call termination and origination services for its customers. If these service providers failed to perform their obligations to the Company, such failure could materially impact future operating results, financial position and cash flows.
Fair Values of Financial Instruments	*FAIR VALUE OF FINANCIAL INSTRUMENTS* The Company defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal market or the most advantageous market in which it would transact. The accounting guidance for fair value measurement requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Observable inputs are inputs that reflect the assumptions market participants would use in valuing the asset or liability and are developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company's assumptions about the factors that market participants would use in valuing the asset or liability developed based on the best information available in the circumstances. The standard establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value by requiring that the most observable inputs be used when available. A financial instrument's categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is as follows: Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly, such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets). Level 3 applies to assets or liabilities for which fair value is derived from valuation techniques in which one or more significant inputs are unobservable, including the Company's own assumptions. The estimated fair value of financial instruments is determined by the Company using available market information and valuation methodologies considered to be appropriate. The carrying amounts of the Company's cash and cash equivalents, accounts receivable and accounts payable approximate their fair values due to their short maturities. The Company's investments are carried at fair value.
Accounting for Stock-Based Compensation	*ACCOUNTING FOR STOCK-BASED COMPENSATION* The Company accounts for its employee stock options and other stock awards under the provisions of ASC 718 - Stock Compensation. Stock-based compensation cost is measured at the grant date, based on the estimated fair value of the award, and is recognized as an expense over the employee's requisite service period (generally the vesting period of the equity grant), net of estimated forfeitures. To value option grants the Company uses the Black-Scholes option valuation model. Fair value determined using the Black-Scholes option valuation model varies based on assumptions used for the expected stock prices volatility, expected life, risk-free interest rates and future dividend payments. The Company used the historical volatility of its stock over a period equal to the expected life of the options. The expected life assumptions represent the weighted-average period stock-based awards are expecting to remain outstanding. These expected life assumptions were established through the review of historical exercise behavior of stock-based award grants with similar vesting periods. The risk-free interest rates were based on the closing market bid yields of actively traded U.S. treasury securities in the over-the-counter market for the expected term equal to the expected term of the option. The dividend yield assumption is based on the Company's history of not paying dividends. The Company issued performance stock units (PSUs) to a group of executives with vesting that is contingent on both market performance and continued service during the fiscal year ended March 31, 2018: These PSUs vest (1) 50% on September 19, 2019 and (2) 50% on September 19, 2020, in each case subject to the performance of the Company's common stock relative to the Russell 2000 Index (the benchmark) during the period from grant date through such vesting date. A 2x multiplier will be applied to the total shareholder returns (TSR) for each 1% of positive or negative relative TSR, and the number of shares earned will increase or decrease at the end of each respective performance measurement period by 2% of the target numbers. In the event the Company's common stock performance is below negative 30% relative to the benchmark, no shares will be issued. The Company issued PSUs to a group of executives with vesting that is contingent on both market performance and continued service during the fiscal year ended March 31, 2017: These PSUs vest (1) 50% on September 22, 2018 and (2) 50% on September 27, 2019, in each case subject to the performance of the Company's common stock relative to the Russell 2000 Index (the benchmark) during the period from grant date through such vesting date. A 2x multiplier will be applied to the total shareholder returns (TSR) for each 1% of positive or negative relative TSR, and the number of shares earned will increase or decrease by 2% of the target numbers. In the event the Company's common stock performance is below negative 30%, relative to the benchmark, no shares will be issued. To value these market-based PSUs under the Equity Compensation Plans, the Company used a Monte Carlo simulation model on the date of grant. Fair value determined using the Monte Carlo simulation model varies based on the assumptions used for the expected stock price volatility, the correlation coefficient between the Company and the NASDAQ Composite Index, risk-free interest rates, and future dividend payments.
Comprehensive Income (Loss)	*COMPREHENSIVE (LOSS) INCOME* Comprehensive income (loss), as defined, includes all changes in equity (net assets) during a period. The difference between net income (loss) and comprehensive income (loss) is due to foreign currency translation adjustments and unrealized gains or losses on investments classified as available-for-sale.
Net Income (Loss) Per Share	*NET INCOME (LOSS) PER SHARE* Basic net income (loss) per share is computed by dividing net income (loss) available to common stockholders (numerator) by the weighted average number of vested, unrestricted common shares outstanding during the period (denominator). Diluted net income (loss) per share is computed on the basis of the weighted average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method unless their effect is anti-dilutive. Dilutive potential common shares include outstanding stock options and employee restricted purchase rights.
Deferred Rent	*DEFERRED RENT* The Company recognizes rent expense on a straight-line basis for all operating lease arrangements with the difference between required lease payments and rent expense recorded as deferred rent. The difference results from rent holidays, rent escalations and tenant improvement allowances, which are amortized over the lease term.
Recently Adopted Accounting Pronouncements	*RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS* In November 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2015-17, Income Taxes - Balance Sheet Classification of Deferred Taxes (Topic 740). This ASU requires all deferred tax liabilities and assets to be presented in the balance sheet as noncurrent. As permitted, the Company early adopted this standard prospectively during the quarter ended June 30, 2016. The adoption of this standard resulted in reclassifying current deferred income tax assets to noncurrent deferred income tax assets and current deferred income tax liabilities to noncurrent deferred income tax liabilities. No prior periods were retrospectively adjusted. In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, which is intended to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. As a result of the adoption in fiscal year 2018, stock-based compensation excess tax benefits or tax deficiencies will be reflected in the consolidated statement of operations within the provision for income taxes. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230), which provides guidance on how restricted cash or restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The Company elected to early adopt this ASU for fiscal year 2018 and disclosed restricted cash in the amount of $8.1 million in the consolidated balance sheets as of March 31, 2018. No prior periods were retrospectively adjusted. In January 2017, the FASB issued ASU No. 2017-04, Intangibles and Other (Topic 350): Simplifying the Test for Goodwill Impairment, which eliminates the requirement to calculate the implied fair value of goodwill but rather require an entity to record an impairment charge based on the excess of a reporting unit's carrying value over its fair value. This amendment is effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. The Company elected to early adopt this ASU for fiscal year 2018. No prior periods were retrospectively adjusted.
Recent Accounting Pronouncements	*RECENT ACCOUNTING PRONOUNCEMENTS* In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Accounting Standards Codification 606 or ASC 606), which replaces numerous requirements in U.S. GAAP and provide companies with a single revenue recognition model for recognizing revenue from contracts with customers. ASC 606 requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. It defines a five-step process to achieve this core principle and, in doing so, more judgment and estimates are required within the revenue recognition process than are required under current GAAP (ASC 605). The new standard permits the use of either the full retrospective or modified retrospective transition method. The Company adopted the new standard effective April 1, 2018 using the modified retrospective method. Under the retrospective method prior period financial information is not revised, but instead a cumulative impact is recorded on the day of adoption with a corresponding offset recorded to stockholder's equity. Under the new standard, the Company expects in some cases to recognize revenue earlier than under ASC 605 guidance when the customer receives services or equipment for a reduced consideration at the onset of an arrangement, for example the initial month's services or equipment are discounted, as a result of the elimination of contingent revenue guidance. Under ASC 605 guidance, amounts allocated to delivered items are limited to amounts that are not contingent on the provision of future services. The impact of adopting the new standard on the Company's total revenues and deferred revenue is not expected to be material. With the adoption of ASC 606 the Company also adopted ASC 340-40, Other Assets and Deferred Costs - Contracts with Customers, which requires the deferral of incremental costs of obtaining a customer contract which, under the old guidance, were expensed as incurred. Under the new standard, the Company will defer all incremental sales commission costs and amortize them over the expected period of benefit, which is estimated to be five years. The amortization cost will be charged to sales and marketing costs on the consolidated statements of operations. The Company expects the cumulative impact of these deferred costs to be approximately $35 million to $40 million with a corresponding decrease to accumulated deficit as of April 1, 2018. There will not be any significant tax impact to the Company's consolidated statements of operations and consolidated balance sheet relating to the adoption of the new standard due to the valuation allowance recorded against to the Company's deferred tax assets. The Company has established new accounting policies, is implementing processes, and implementing internal controls necessary to support the requirements of the new standard. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which requires companies to generally recognize on the balance sheet operating and financing lease liabilities and corresponding right-of-use assets. The update also requires qualitative and quantitative disclosures designed to assess the amount, timing, and uncertainty of cash flows arising from leases. The update requires the use of a modified retrospective transition approach, which includes a number of optional practical expedients that entities may elect to apply. This amendment is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently assessing the impact of this pronouncement to its consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which provides guidance for measurement and recognition of expected credit losses for financial assets held based on historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. The amendment is effective for fiscal years beginning after December 15, 2019. Early adoption is permitted for fiscal years beginning after December 15, 2018. The Company is currently assessing the impact of this pronouncement to its consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, which provides guidance on how certain cash receipts and cash payments are to be presented and classified in the statement of cash flows. This amendment is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. The Company is currently assessing the impact of this pronouncement to its Consolidated Statements of Cash Flows. In October 2016, the FASB has issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory, which provides guidance on how an entity should recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. This amendment is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. The Company is currently assessing the impact of this pronouncement to its consolidated financial statements. In January 2017, the FASB has issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, which clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. This amendment is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. The Company is currently assessing the impact of this pronouncement to its consolidated financial statements.
Indemnifications	Indemnifications In the normal course of business, the Company may agree to indemnify other parties, including customers, lessors and parties to other transactions with the Company, with respect to certain matters such as breaches of representations or covenants or intellectual property infringement or other claims made by third parties. These agreements may limit the time within which an indemnification claim can be made and the amount of the claim. In addition, the Company has entered into indemnification agreements with its officers and directors. It is not possible to determine the maximum potential amount of the Company's exposure under these indemnification agreements due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each particular agreement. Historically, payments made by the Company under these agreements have not had a material impact on the Company's operating results, financial position or cash flows. Under some of these agreements, however, the Company's potential indemnification liability might not have a contractual limit.

Fair Value Measurements (Tables)

12 Months Ended

Mar. 31, 2018

Fair Value Measurements Tables

Fair Value Measurements, Recurring and Nonrecurring (Tables)

Cash, cash equivalents, available-for-sale investments, and contingent consideration were (in thousands):

				Gross		Gross				Cash and
		Amortized		Unrealized		Unrealized		Estimated		Cash		Short-Term
As of March 31, 2018		Costs		Gain		Loss		Fair Value		Equivalents		Investments
Cash	$	16,499	$	-	$	-	$	16,499	$	16,499	$	-
Level 1:
Money market funds		15,204		-		-		15,204		15,204		-
Subtotal		31,703		-		-		31,703		31,703		-
Level 2:
Commercial paper		13,254		-		(8)		13,246		-		13,246
Corporate debt		70,631		6		(296)		70,341		-		70,341
Municipal securities		3,385		3		(1)		3,387		-		3,387
Asset backed securities		27,063		1		(119)		26,945		-		26,945
Agency bond		4,183		-		(35)		4,148		-		4,148
International government securities		2,497		-		(5)		2,492		-		2,492
Subtotal		121,013		10		(464)		120,559		-		120,559
Total assets	$	152,716	$	10	$	(464)	$	152,262	$	31,703	$	120,559

				Gross		Gross				Cash and
		Amortized		Unrealized		Unrealized		Estimated		Cash		Short-Term
As of March 31, 2017		Costs		Gain		Loss		Fair Value		Equivalents		Investments
Cash	$	29,122	$	-	$	-	$	29,122	$	29,122	$	-
Level 1:
Money market funds		11,908		-		-		11,908		11,908		-
Mutual funds		2,000		-		(194)		1,806		-		1,806
Subtotal		43,030		-		(194)		42,836		41,030		1,806
Level 2:
Commercial paper		19,144		8		-		19,152		-		19,152
Corporate debt		83,995		61		(58)		83,998		-		83,998
Asset backed securities		26,906		4		(22)		26,888		-		26,888
Mortgage backed securities		116		-		(1)		115		-		115
Agency bond		2,000		-		-		2,000		-		2,000
Subtotal		132,161		73		(81)		132,153		-		132,153
Total assets	$	175,191	$	73	$	(275)	$	174,989	$	41,030	$	133,959
Level 3:
Contingent consideration	$	-	$	-	$	-	$	148	$	-	$	-
Total liabilities	$	-	$	-	$	-	$	148	$	-	$	-

Contractual maturities of investments as of March 31, 2018 are set forth below (in thousands):

		Estimated
		Fair Value
Due within one year	$	69,721
Due after one year		50,838
Total	$	120,559

Property and Equipment (Tables)

12 Months Ended

Mar. 31, 2018

Property And Equipment Tables

Components of Property, Plant and Equipment

Property and equipment consisted of the following (in thousands):

		March 31,
		2018		2017
Computer equipment	$	29,761	$	24,293
Software development costs		20,144		8,265
Software licenses		8,663		7,380
Leasehold improvements		6,573		5,579
Furniture and fixtures		1,637		1,411
Construction in progress		2,394		689
		69,172		47,617
Less: accumulated depreciation and amortization		(33,440)		(23,556)
	$	35,732	$	24,061

Intangible Assets (Tables)

12 Months Ended

Mar. 31, 2018

Intangible Assets Tables

Carrying values of intangible assets

The carrying value of intangible assets consisted of the following (in thousands):

		March 31, 2018						March 31, 2017
		Gross						Gross
		Carrying		Accumulated		Net Carrying		Carrying		Accumulated		Net Carrying
		Amount		Amortization		Amount		Amount		Amortization		Amount
Technology	$	19,702	$	(10,535)	$	9,167	$	18,685	$	(7,010)	$	11,675
Customer relationships		9,776		(7,366)		2,410		9,419		(6,187)		3,232
Trade names/domains		2,108		(1,727)		381		2,036		-		2,036
In-process research and
development		95		(95)		-		95		-		95
Total acquired identifiable
intangible assets	$	31,681	$	(19,723)	$	11,958	$	30,235	$	(13,197)	$	17,038

Finite-lived intangible assets - future amortization expense

At March 31, 2018, annual amortization of definite lived intangible assets, based upon existing intangible assets and current useful lives, is estimated to be the following (in thousands):

		Amount
2019	$	4,002
2020		3,171
2021		2,790
2022		1,766
2023		229
Total	$	11,958

Goodwill (Tables)

12 Months Ended

Mar. 31, 2018

Goodwill Tables

Carrying amounts of goodwill

The following table provides a summary of the changes in the carrying amounts of goodwill by reporting segment (in thousands):

		Americas		Europe		Total
Balance at March 31, 2016	$	25,729	$	21,691	$	47,420
Additions due to acquisitions		1,580		-		1,580
Foreign currency translation		-		(2,864)		(2,864)
Balance at March 31, 2017		27,309		18,827		46,136
Impairment loss		-		(8,036)		(8,036)
Foreign currency translation		-		1,954		1,954
Balance at March 31, 2018	$	27,309	$	12,745	$	40,054

Commitments And Contingencies (Tables)

12 Months Ended

Mar. 31, 2018

Commitments And Contingencies Tables

Future minimum annual operating lease payments

At March 31, 2018, future minimum annual lease payments under non-cancelable operating leases were as follows (in thousands):

Year ending March 31:
2019	$	5,876
2020		6,754
2021		9,093
2022		8,970
2023		8,448
Thereafter		54,936
Total	$	94,077

Future annual lease payments under noncancelable capital leases

At March 31, 2018, future minimum annual lease payments under non-cancelable capital leases were as follows (in thousands):

Year ending March 31:
2019	$	1,054
2020		456
2021		53
2022		5
Total minimum payments		1,568
Less: Amount representing interest		(60)
		1,508
Less: Short-term portion of capital lease obligations		(1,049)
Long-term portion of capital lease obligations	$	459

Minimum third party network service provider commitments

At March 31, 2018, future minimum annual payments under these third-party network service contracts were as follows (in thousands):

Year ending March 31:
2019	$	1,916
2020		8
Total minimum payments	$	1,924

Distribution of Stock-Based Compensation Plan Expense (Tables)

12 Months Ended

Mar. 31, 2018

Distribution Of Stock-based Compensation Plan Expense Tables

Schedule Of Stock-Based Compensation Expense By Statement Of Operations Line Item

The following table summarizes stock-based compensation expense (in thousands):

		Years Ended March 31,
		2018		2017		2016
Cost of service revenue	$	1,821	$	1,732	$	1,159
Cost of product revenue		-		-		-
Research and development		6,418		3,762		2,914
Sales and marketing		11,654		8,832		6,133
General and administrative		9,283		7,136		6,128
Total	$	29,176	$	21,462	$	16,334

Stock-Based Compensation And Employee Purchase Plan (Tables)

12 Months Ended

Mar. 31, 2018

Employee Stock Purchase Plan

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions

The estimated fair value of stock purchase rights granted under the Employee Stock Purchase Plan was estimated using the Black-Scholes pricing model with the following weighted-average assumptions:

		Years Ended March 31,
		2018		2017		2016
Expected volatility		40%		37%		43%
Expected dividend yield		-		-		-
Risk-free interest rate		1.33%		0.65%		0.39%
Weighted average expected term (in years)		0.8 years		0.8 years		0.8 years

Weighted average fair value of rights granted	$	4.10	$	4.19	$	3.25

Option Grants

Disclosure Of Share-Based Compensation Arrangements By Share-Based Payment Award

Stock Option activity under all the Company's stock option plans since March 31, 2015, is summarized as follows:

			Weighted
			Average
			Exercise
	Number of		Price
	Shares		Per Share
Outstanding at March 31, 2015	5,327,907	$	5.19
Granted	723,776		8.63
Exercised	(1,162,175)		2.56
Canceled/Forfeited	(96,242)		8.06
Outstanding at March 31, 2016	4,793,266		6.29
Granted	407,392		14.63
Exercised	(603,998)		2.34
Canceled/Forfeited	(134,248)		8.41
Outstanding at March 31, 2017	4,462,412		7.52
Granted	609,135		14.95
Exercised	(773,897)		3.95
Canceled/Forfeited	(299,365)		13.05
Outstanding at March 31, 2018	3,998,285	$	8.93

Vested and expected to vest at March 31, 2018	3,998,285	$	8.93
Exercisable at March 31, 2018	3,025,925	$	7.66

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions

The fair value of each of the Company's option grants has been estimated on the date of grant using the Black-Scholes pricing model with the following assumptions:

		Years Ended March 31,
		2018		2017		2016
Expected volatility		41%		44%		53%
Expected dividend yield		-		-		-
Risk-free interest rate		1.8% to 2.4%		1.1% to 2.2%		1.5% to 1.8%
Weighted average expected term (in years)		4.8 years		4.9 years		5.4 years

Weighted average fair value of options granted	$	5.70	$	5.74	$	4.17

Stock Purchase Rights

Disclosure Of Share-Based Compensation Arrangements By Share-Based Payment Award

Stock Purchase Right activity since March 31, 2015 is summarized as follows:

			Weighted	Weighted
			Average	Average
			Grant-Date	Remaining
	Number of		Fair Market	Contractual
	Shares		Value	Term (in Years)
Balance at March 31, 2015	223,835	$	5.92	1.50
Granted	-		-
Vested and released	(115,789)		5.32
Forfeited	(25,875)		7.40
Balance at March 31, 2016	82,171		6.30	0.76
Granted	-		-
Vested and released	(69,426)		6.00
Forfeited	(1,375)		6.72
Balance at March 31, 2017	11,370		8.10	1.09
Granted	-		-
Vested and released	(6,395)		8.26
Forfeited	-		-
Balance at March 31, 2018	4,975	$	7.88	0.10

Restricted Stock Units

Disclosure Of Share-Based Compensation Arrangements By Share-Based Payment Award

Restricted Stock Unit activity since March 31, 2015 is summarized as follows:

			Weighted	Weighted Average
	Number of		Average Grant	Remaining Contractual
	Shares		Date Fair Value	Term (in Years)
Balance at March 31, 2015	2,698,686	$	7.33	1.88
Granted	2,681,997		8.78
Vested and released	(589,788)		7.79
Forfeited	(246,096)		8.15
Balance at March 31, 2016	4,544,799		8.08	1.67
Granted	2,491,877		15.15
Vested and released	(1,600,831)		7.89
Forfeited	(496,795)		9.56
Balance at March 31, 2017	4,939,050		11.57	1.55
Granted	3,481,870		14.41
Vested and released	(1,833,038)		10.27
Forfeited	(652,339)		12.73
Balance at March 31, 2018	5,935,543	$	13.51	1.60

Income Taxes (Tables)

12 Months Ended

Mar. 31, 2018

Income Taxes Tables

Components of tax provision

The components of the consolidated (benefit) provision for income taxes for fiscal 2018, 2017 and 2016 consisted of the following (in thousands):

		March 31,
Current:		2018		2017		2016
Federal	$	(395)	$	(7)	$	97
State		256		588		551
Foreign		185		112		71
Total current tax provision		46		693		719

Deferred
Federal		59,837		1,506		95
State		6,664		(1,095)		(854)
Foreign		(253)		(1,230)		(807)
Total deferred tax (benefit) provision		66,248		(819)		(1,566)
Income tax (benefit) provision	$	66,294	$	(126)	$	(847)

Schedule of tax effects of temporary differences that give rise to deferred tax assets and liabilities

Deferred tax assets and (liabilities) were comprised of the following (in thousands):

		March 31,
		2018		2017
Net operating loss carryforwards	$	40,465	$	36,427
Research and development and other credit carryforwards		11,761		8,614
Stock-based compensation		6,389		6,942
Reserves and allowances		3,181		3,266
Fixed assets and intangibles		378		(3,688)
Net non-current deferred tax assets		62,174		51,561
Valuation allowance		(62,174)		(2,934)
Total	$	-	$	48,627

Reconciliation of U.S. statutory income tax rate to company's effective tax rate

A reconciliation of the Company's provision (benefit) for income taxes to the amounts computed using the statutory U.S. federal income tax rate is as follows (in thousands):

		Years Ended March 31,
		2018		2017		2016
Tax provision at statutory rate	$	(11,790)	$	(1,652)	$	(2,029)
State income taxes before valuation allowance,
net of federal effect		(1,042)		108		9
Foreign tax rate differential		(1,188)		885		(769)
Research and development credits		(2,189)		(1,484)		(1,253)
Change in valuation allowance		56,663		(287)		(1,555)
Compensation/option differences		(4,965)		(246)		(471)
Non-deductible compensation		1,132		1,079		944
Tax Act rate change impact		22,630		-		-
Acquisition costs		-		54		230
Expiring California loss carry-forwards		-		-		1,626
Foreign loss not benefited		6,847		780		2,342
Other		196		637		79
Total income tax provision	$	66,294	$	(126)	$	(847)

Reconciliation of beginning and ending amount of unrecognized tax benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):

		Unrecognized Tax Benefits
		2018		2017		2016
Balance at beginning of year	$	3,331	$	2,881	$	2,420
Gross increases - tax position in prior period		-		-		82
Gross increases - tax position related to the current year		649		450		379
Balance at end of year	$	3,980	$	3,331	$	2,881

Net Income Per Share (Tables)

12 Months Ended

Mar. 31, 2018

Net Income Per Share Tables

Net Income Per Share

		Years Ended March 31,
		2018		2017		2016
Numerator:
Net loss available to common stockholders	$	(104,497)	$	(4,751)	$	(5,120)

Denominator:
Denominator for basic calculation		92,017		90,340		88,477
Denominator for diluted calculation		92,017		90,340		88,477

Net loss per share:
Basic	$	(1.14)	$	(0.05)	$	(0.06)
Diluted	$	(1.14)	$	(0.05)	$	(0.06)

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share

	Years Ended March 31,
	2018	2017	2016
Common stock options	3,998	4,462	4,793
Stock units	5,940	4,950	4,628
	9,938	9,412	9,421

Segment Information (Tables)

12 Months Ended

Mar. 31, 2018

Segment Information Tables

Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas

The following tables set forth the segment and geographic information for each period (in thousands):

		Revenue for the Years Ended March 31,
		2018		2017		2016
Americas (principally US)	$	266,034	$	227,914	$	185,241
Europe (principally UK)		30,466		25,474		24,095
	$	296,500	$	253,388	$	209,336

		Depreciation and Amortization for the Years Ended March 31,
		2018		2017		2016
Americas (principally US)	$	10,619	$	6,842	$	5,776
Europe (principally UK)		5,098		3,595		3,231
	$	15,717	$	10,437	$	9,007

		Net Income (Loss) for the Years Ended March 31,
		2018		2017		2016
Americas (principally US)	$	(84,792)	$	2,557	$	940
Europe (principally UK)		(19,705)		(7,308)		(6,060)
	$	(104,497)	$	(4,751)	$	(5,120)

		March 31,
		2018				2017
		Total Assets		Property and Equipment, net		Total Assets		Property and Equipment, net
Americas (principally US)	$	240,099	$	27,270	$	284,011	$	19,480
Europe (principally UK)		37,110		8,462		49,844		4,581
	$	277,209	$	35,732	$	333,855	$	24,061

Acquisitions (Tables)

12 Months Ended

Mar. 31, 2018

LeChat

Schedule of Purchase Price Allocation

The fair values of the assets acquired and liabilities assumed are as follows (in thousands):

		Fair Value
Assets acquired:
Cash	$	231
Intangible assets		1,200
Other non-current assets		428
Total assets acquired		1,859
Liabilities assumed:
Current liabilities		(324)
Total liabilities assumed		(324)
Net identifiable assets acquired		1,535
Goodwill		1,580
Total consideration transferred	$	3,115

DXI

Schedule of Purchase Price Allocation

The fair values of the assets acquired and liabilities assumed are as follows (in thousands):

		Fair Value
Assets acquired:
Cash	$	1,318
Current assets		2,016
Property and equipment		1,453
Intangible assets		13,374
Total assets acquired		18,161
Liabilities assumed:
Current liabilities and non-current liabilities		(5,734)
Total liabilities assumed		(5,734)
Net identifiable assets acquired		12,427
Goodwill		10,125
Total consideration transferred	$	22,552

QSC

Schedule of Purchase Price Allocation

The fair values of the assets acquired and liabilities assumed are as follows (in thousands):

		Fair Value
Assets acquired:
Intangible assets	$	1,100
Goodwill		1,789
Total consideration transferred	$	2,889

Quarterly Financial Data (Unaudited) (Tables)

12 Months Ended

Mar. 31, 2018

Consolidated Quarterly Financial Data

Quarterly Financial Data (Unaudited)

In thousands, except per share data amounts:

		QUARTER ENDED
		March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,		Dec. 31,		Sept. 30,		June 30,
		2018		2017		2017		2017		2017		2016		2016		2016
Service revenue	$	75,325	$	71,891	$	68,123	$	65,091	$	62,654	$	60,149	$	57,717	$	55,296
Product revenue		4,019		3,684		4,360		4,007		3,834		3,527		5,466		4,745
Total revenue		79,344		75,575		72,483		69,098		66,488		63,676		63,183		60,041
Operating expenses:
Cost of service revenue		13,952		12,318		12,757		11,662		10,803		10,525		10,837		10,235
Cost of product revenue		5,826		4,675		5,098		4,884		4,187		4,240		5,782		5,505
Research and development		10,016		8,527		8,311		7,943		7,142		7,095		6,505		6,710
Sales and marketing		52,940		48,830		41,163		41,110		38,228		35,667		33,691		31,691
General, and administrative		10,340		10,003		9,616		8,956		9,814		7,852		6,747		6,801
Impairment of goodwill, intangible
assets and equipment		-		9,469		-		-		-		-		-		-
Total operating expenses		93,074		93,822		76,945		74,555		70,174		65,379		63,562		60,942
Loss from operations		(13,730)		(18,247)		(4,462)		(5,457)		(3,686)		(1,703)		(379)		(901)
Other income, net		610		569		463		2,052		583		408		391		410
Loss from operations before provision
(benefit) for income taxes		(13,120)		(17,678)		(3,999)		(3,405)		(3,103)		(1,295)		12		(491)
Provision (benefit) for income taxes		142		70,842		(3,453)		(1,236)		(178)		30		(15)		37
Net income (loss)	$	(13,262)	$	(88,520)	$	(546)	$	(2,169)	$	(2,925)	$	(1,325)	$	27	$	(528)

Net income (loss) per share:
Basic	$	(0.14)	$	(0.96)	$	(0.01)	$	(0.02)	$	(0.03)	$	(0.01)	$	0.00	$	(0.01)
Diluted	$	(0.14)	$	(0.96)	$	(0.01)	$	(0.02)	$	(0.03)	$	(0.01)	$	0.00	$	(0.01)

Shares used in per share calculations:
Basic		92,526		92,029		91,689		91,643		91,175		90,774		89,987		89,434
Diluted		92,526		92,029		91,689		91,643		91,175		90,774		93,447		89,434

Valuation and Qualifying Accounts (Tables)

12 Months Ended

Mar. 31, 2018

Valuation And Qualifying Accounts Tables

Schedule of Valuation Allowance for Impairment of Recognized Servicing Assets [Table Text Block]

SCHEDULE II
VALUATION AND QUALIFYING ACCOUNTS
(in thousands)

		Balance at		Additions				Balance
		Beginning		Charged to				at End
Description		of Year		Expenses		Deductions (a)		of Year
Total Allowance for Doubtful Accounts:
Year ended March 31, 2016:	$	416	$	509	$	(339)	$	586
Year ended March 31, 2017:	$	586	$	941	$	(573)	$	954
Year ended March 31, 2018:	$	954	$	250	$	(300)	$	904

(a) The deductions related to allowance for doubtful accounts represent accounts receivable which are written off.

Description of the Business (Narrative) (Details)	12 Months Ended
Description of the Business (Narrative) (Details)	Mar. 31, 2018
Description Of Business Narrative Details
Year Founded	1987
Entity Incorporation, Date of Incorporation	Dec. 31, 1996
Entity Incorporation, State Country Name	Delaware
Fiscal Year End Date	--03-31
Number of Countries in which Entity Operates	100

Significant Accounting Policies Service and Product Revenue (Narrative) (Details)	Mar. 31, 2018
Significant Accounting Policies Service And Product Revenue Narrative Details
Trial period offered with all new services, days	30

Significant Accounting Policies (Advertising Costs) (Narrative) (Details) - USD ($) $ in Millions	12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Significant Accounting Policies Advertising Costs Narrative Details
Advertising expense	$ 14.5	$ 9.5	$ 8.5

Cash, Cash Equivalents and Investments with Hierarchy (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Mar. 31, 2017
Amortized Costs	$ 152,716	$ 175,191
Gross Unrealized Gains	10	73
Gross Unrealized Loss	(464)	(275)
Estimated Fair Value	152,262	174,989
Cash and cash equivalents	31,703	41,030
Short-term marketable investments	120,559	133,959
Investments due within one year	69,721
Investments due after one year	50,838
Level 1
Amortized Costs	31,703	43,030
Gross Unrealized Gains	0	0
Gross Unrealized Loss	0	(194)
Estimated Fair Value	31,703	42,836
Cash and cash equivalents	31,703	41,030
Short-term marketable investments	0	1,806
Level 2
Amortized Costs	121,013	132,161
Gross Unrealized Gains	10	73
Gross Unrealized Loss	(464)	(81)
Estimated Fair Value	120,559	132,153
Cash and cash equivalents	0	0
Short-term marketable investments	120,559	132,153
Level 3
Amortized Costs		0
Gross Unrealized Gains		0
Gross Unrealized Loss		0
Estimated Fair Value		148
Cash and cash equivalents		0
Short-term marketable investments		0
Liabilities, Fair Value Disclosure		148
Cash
Amortized Costs	16,499	29,122
Gross Unrealized Gains	0	0
Gross Unrealized Loss	0	0
Estimated Fair Value	16,499	29,122
Cash and cash equivalents	16,499	29,122
Short-term marketable investments	0	0
Money Market Funds \| Level 1
Amortized Costs	15,204	11,908
Gross Unrealized Gains	0	0
Gross Unrealized Loss	0	0
Estimated Fair Value	15,204	11,908
Cash and cash equivalents	15,204	11,908
Short-term marketable investments	0	0
Mutual Funds \| Level 1
Amortized Costs		2,000
Gross Unrealized Gains		0
Gross Unrealized Loss		(194)
Estimated Fair Value		1,806
Cash and cash equivalents		0
Short-term marketable investments		1,806
Commercial Paper \| Level 2
Amortized Costs	13,254	19,144
Gross Unrealized Gains	0	8
Gross Unrealized Loss	(8)	0
Estimated Fair Value	13,246	19,152
Cash and cash equivalents	0	0
Short-term marketable investments	13,246	19,152
Corporate Debt \| Level 2
Amortized Costs	70,631	83,995
Gross Unrealized Gains	6	61
Gross Unrealized Loss	(296)	(58)
Estimated Fair Value	70,341	83,998
Cash and cash equivalents	0	0
Short-term marketable investments	70,341	83,998
Municipal Securities \| Level 2
Amortized Costs	3,385
Gross Unrealized Gains	3
Gross Unrealized Loss	(1)
Estimated Fair Value	3,387
Cash and cash equivalents	0
Short-term marketable investments	3,387
Asset-backed Securities \| Level 2
Amortized Costs	27,063	26,906
Gross Unrealized Gains	1	4
Gross Unrealized Loss	(119)	(22)
Estimated Fair Value	26,945	26,888
Cash and cash equivalents	0	0
Short-term marketable investments	26,945	26,888
Mortgage backed Securities \| Level 2
Amortized Costs		116
Gross Unrealized Gains		0
Gross Unrealized Loss		(1)
Estimated Fair Value		115
Cash and cash equivalents		0
Short-term marketable investments		115
Agency Bond \| Level 2
Amortized Costs	4,183	2,000
Gross Unrealized Gains	0	0
Gross Unrealized Loss	(35)	0
Estimated Fair Value	4,148	2,000
Cash and cash equivalents	0	0
Short-term marketable investments	4,148	2,000
International Government Securities \| Level 2
Amortized Costs	2,497
Gross Unrealized Gains	0
Gross Unrealized Loss	(5)
Estimated Fair Value	2,492
Cash and cash equivalents	0
Short-term marketable investments	$ 2,492
Contingent Consideration \| Level 3
Amortized Costs		0
Gross Unrealized Gains		0
Gross Unrealized Loss		0
Estimated Fair Value		148
Cash and cash equivalents		0
Short-term marketable investments		0
Liabilities, Fair Value Disclosure		$ 148

Fair Value Measurements (Contingent Consideration Liability) (Narrative) (Details) $ in Millions	12 Months Ended
	Mar. 31, 2018 USD ($)
Contingent consideration liabilities [Roll Forward]
Contingent consideration payments	$ 0.1

Property and Equipment (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Mar. 31, 2017
Property And Equipment Details
Computer equipment	$ 29,761	$ 24,293
Software development costs	20,144	8,265
Software licenses	8,663	7,380
Leasehold improvements	6,573	5,579
Furniture and fixtures	1,637	1,411
Construction in progress	2,394	689
Gross	69,172	47,617
Less: accumulated depreciation and amortization	(33,440)	(23,556)
Net	$ 35,732	$ 24,061

Intangible Assets Schedule Of Intangibles (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Mar. 31, 2017
Gross Carrying Amount	$ 31,681	$ 30,235
Accumulated Amortization	(19,723)	(13,197)
Net Carrying Amount	11,958	17,038
Technology
Gross Carrying Amount	19,702	18,685
Accumulated Amortization	(10,535)	(7,010)
Net Carrying Amount	9,167	11,675
Customer relationships
Gross Carrying Amount	9,776	9,419
Accumulated Amortization	(7,366)	(6,187)
Net Carrying Amount	2,410	3,232
Trade names/domains
Gross Carrying Amount	2,108	2,036
Accumulated Amortization	(1,727)	0
Net Carrying Amount	381	2,036
In-process research and development
Gross Carrying Amount	95	95
Accumulated Amortization	(95)	0
Net Carrying Amount	$ 0	$ 95

Intangible Assets Schedule Of Future Amortization Of Intangibles (Details) $ in Thousands	Mar. 31, 2018 USD ($)
Intangible Assets Schedule Of Future Amortization Of Intangibles Details
2019	$ 4,002
2020	3,171
2021	2,790
2022	1,766
2023	229
Total	$ 11,958

Intangible Assets Impairmrent of Long-Lived Assets (Narrative) (Details) $ in Millions	12 Months Ended
	Mar. 31, 2018 USD ($)
Intangible Assets Impairmrent Of Long-lived Assets Narrative Details
Impaired Intangible Asset, Description	<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">During the third quarter of fiscal year 2018, the Company changed its product and marketing strategy for the use of DXI's technology and re-assessed DXI's profitability outlook. This triggered the requirement that the Company test the recorded goodwill for impairment in accordance with ASC 350-20-35, as amended by ASU 2017-04 (see Footnote 1, Recently Adopted Accounting Pronouncements). First, the Company estimated the fair value of its three reporting units using the market approach. Under the market approach, the Company utilized the market capitalization of its publicly-traded shares and comparable company information to determine revenue multiples which were used to determine the fair value of the reporting unit. Based on this approach, the Company determined that there was an indication of impairment only for its DXI reporting unit in the UK as the carrying value including goodwill exceeded the estimated fair value. As largely independent cash flows could not be attributed to any assets individually the Company evaluated DXI's assets and liabilities as one asset group. Then the Company estimated the fair value of DXI's asset group using discounted cash flow methods to determine the implied fair value of goodwill. The difference between this implied fair value of the goodwill and its carrying value was recorded as impairment. The outcome of the analysis resulted in a non-cash expense for impairment of property and equipment, intangible assets and goodwill of $0.3 million, $1.2 million and $8.0 million, respectively, which was recorded during the third quarter of fiscal year 2018 as a separate line item in the Company's Consolidated Statements of Operations.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"> </p>
Impairment of Equipment	$ 0.3
Impairment of Intangible Assets, Finite-lived	1.2
Goodwill, Impairment Loss	$ 8.0
Impaired Intangible Asset, Income Statement Classification	<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">The outcome of the analysis resulted in a non-cash expense for impairment of property and equipment, intangible assets and goodwill of $0.3 million, $1.2 million and $8.0 million, respectively, which was recorded during the third quarter of fiscal year 2018 as a separate line item in the Company's Consolidated Statements of Operations.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"> </p>

Changes in Carrying Amount of Goodwill by Location (Detail) - USD ($) $ in Thousands	12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Goodwill, beginning balance	$ 46,136	$ 47,420
Additions due to acquisitions		1,580
Impairment loss	(8,036)
Foreign currency translation	1,954	(2,864)
Goodwill, ending balance	40,054	46,136
Americas
Goodwill, beginning balance	27,309	25,729
Additions due to acquisitions		1,580
Impairment loss	0
Foreign currency translation	0	0
Goodwill, ending balance	27,309	27,309
Europe
Goodwill, beginning balance	18,827	21,691
Additions due to acquisitions	0	0
Impairment loss	(8,036)
Foreign currency translation	1,954	(2,864)
Goodwill, ending balance	$ 12,745	$ 18,827

Commitments and Contingencies (Operating Leases) (Details) $ in Thousands	Mar. 31, 2018 USD ($)
Year ending March 31:
2019	$ 5,876
2020	6,754
2021	9,093
2022	8,970
2023	8,448
Thereafter	54,936
Total	$ 94,077

Commitments and Contingencies (Capital Leases) (Details) $ in Thousands	Mar. 31, 2018 USD ($)
Year ending March 31:
2019	$ 1,054
2020	456
2021	53
2022	5
Total minimum payments	1,568
Less: Amount representing interest	(60)
Total payments, net of interest	1,508
Less: Short-term portion of capital lease obligations	(1,049)
Long-term portion of capital lease obligations	$ 459

Commitments and Contingencies (Service Provider Contracts) (Details) $ in Thousands	Mar. 31, 2018 USD ($)
Year ending March 31:
2019	$ 1,916
2020	8
Total minimum payments	$ 1,924

Commitments and Contingencies (Leases - Rent Expense) (Narrative) (Details) - USD ($) $ in Millions	12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Commitments And Contingencies Leases - Rent Expense Narrative Details
Rent expense	$ 5.6	$ 5.1	$ 2.1

Commitments and Contingencies (CustomerSupport Commitments) (Narrative) (Details) - USD ($) $ in Millions	Mar. 31, 2018	Mar. 31, 2017
Commitments And Contingencies Customersupport Commitments Narrative Details
Third party customer support vendor minimum obligation	$ 1.4
Property and equipment under capital lease	3.5	$ 2.7
Accumulated depreciation related to assets under capital lease	$ 1.8	$ 1.0

Stockholders' Equity Stock-Based Compensation Expense By Statement Of Operations (Details) - USD ($) $ in Thousands	12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Stock-based employee compensation expense related to employee stock options and employee stock purchases, net of tax	$ 29,176	$ 21,462	$ 16,334
Cost of service revenue
Stock-based employee compensation expense related to employee stock options and employee stock purchases, net of tax	1,821	1,732	1,159
Cost of product revenue
Stock-based employee compensation expense related to employee stock options and employee stock purchases, net of tax	0	0	0
Research and development
Stock-based employee compensation expense related to employee stock options and employee stock purchases, net of tax	6,418	3,762	2,914
Sales and marketing
Stock-based employee compensation expense related to employee stock options and employee stock purchases, net of tax	11,654	8,832	6,133
General and administrative
Stock-based employee compensation expense related to employee stock options and employee stock purchases, net of tax	$ 9,283	$ 7,136	$ 6,128

Stockholders' Equity Option Activity (Details) - $ / shares	12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Stockholders Equity Option Activity Details
Balance at beginning of period	4,462,412	4,793,266	5,327,907
Granted	609,135	407,392	723,776
Exercised	(773,897)	(603,998)	(1,162,175)
Cancelled/forfeited	(299,365)	(134,248)	(96,242)
Balance at end of period	3,998,285	4,462,412	4,793,266
Options, Vested and expected to vest	3,998,285
Options, Exercisable at end of period	3,025,925
Weighted-average exercise price of options outstanding, at beginning of period	$ 7.52	$ 6.29	$ 5.19
Weighted-average exercise price of options granted during period	14.95	14.63	8.63
Weighted-average exercise price of options exercised during the period	3.95	2.34	2.56
Weighted-average exercise price of options forfeited, cancelled or expired during the period	13.05	8.41	8.06
Weighted-average exercise price of options outstanding at end of period	8.93	$ 7.52	$ 6.29
Options, Vested and Expected to Vest, Weighted Average Exercise Price	7.52
Weighted-Average Exercise Prices, Exercisable at end of period	$ 7.66

Stockholders' Equity Stock Purchase Right Activity (Details) - $ / shares	12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2014
Stockholders Equity Stock Purchase Right Activity Details
Balance at beginning of year	11,370	82,171	223,835
Granted	0	0	0
Vested	(6,395)	(69,426)	(115,789)
Forfeited	0	(1,375)	(25,875)
Balance at end of year	4,975	11,370	82,171
Weighted-average grant date fair value, beginning balance	$ 8.10	$ 6.30	$ 5.92
Weighted-average grant date fair value of restricted stock rights granted	0	0	0
Weighted-average grant date fair value, released during period	8.26	6.00	5.32
Weighted-average grant date fair value, forfeited during period	0	6.72	7.40
Weighted-average grant date fair value, ending balance	$ 7.88	$ 8.10	$ 6.30
Weighted-average remaining contractual term, in years, ending balance	36 days	1 year 32 days	274 days	1 year 180 days

Stockholders' Equity Restricted Stock Unit Activity (Details)	12 Months Ended
	Mar. 31, 2018 $ / shares shares	Mar. 31, 2017 $ / shares shares	Mar. 31, 2016 $ / shares shares	Mar. 31, 2015
Stockholders Equity Restricted Stock Unit Activity Details
Balance at beginning of period \| shares	4,939,050	4,544,799	2,698,686
Granted \| shares	3,481,870	2,491,877	2,681,997
Vested \| shares	(1,833,038)	(1,600,831)	(589,788)
Forfeited \| shares	(652,339)	(496,795)	(246,096)
Balance at end of period \| shares	5,935,543	4,939,050	4,544,799
RSU weighted-average remaining contractual term, in years	1.60	1.55	1.67	1.88
Beginning of period, weighted-average purchase price \| $ / shares	$ 11.57	$ 8.08	$ 7.33
Granted, weighted-average purchase price \| $ / shares	14.41	15.15	8.78
Vested, weighted-average purchase price \| $ / shares	10.27	7.89	7.79
Forfeited, weighted-average purchase price \| $ / shares	12.73	9.56	8.15
End of period, weighted-average purchase price \| $ / shares	$ 13.51	$ 11.57	$ 8.08

Stockholder's Equity Stock Options Outstanding And Exercisable (Details) - $ / shares	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2015
Options Outstanding, Number of Shares	3,998,285	4,462,412	4,793,266	5,327,907
Options Outstanding, Weighted-Average Exercise Price Per Share	$ 8.93	$ 7.52	$ 6.29	$ 5.19
Options Exercisable, Number of Shares	3,025,925
Options Exercisable, Weighted-Average Exercise Price Per Share	$ 7.66

Stockholder's Equity Assumptions Used In Black-Scholes Model (Details) - $ / shares	12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Option Grants
Expected volatility	41.00%	44.00%	53.00%
Expected dividend yield	0.00%	0.00%	0.00%
Risk-free interest rate, minimum	1.80%	1.10%	1.50%
Risk-free interest rate, maximum	2.40%	2.20%	1.80%
Weighted average expected option term, in years	4 years 288 days	4 years 324 days	5 years 144 days
Weighted average fair value of options granted, per share	$ 5.70	$ 5.74	$ 4.17
Employee Stock Purchase
Expected volatility	40.00%	37.00%	43.00%
Expected dividend yield	0.00%	0.00%	0.00%
Risk-free interest rate	1.33%	0.65%	0.39%
Weighted average expected option term, in years	288 days	288 days	288 days
Weighted average fair value of options granted, per share	$ 4.10	$ 4.19	$ 3.25

Stockholders' Equity (Narrative) (Details) - USD ($)	12 Months Ended
Stockholders' Equity (Narrative) (Details) - USD ($)	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Stock-Based Awards
Total intrinsic value of options exercised	$ 9,000,000	$ 7,200,000	$ 9,200,000
Unamortized stock-based compensation expense related to unvested stock awards	$ 63,900,000
Weighted average period of recognition for unrecognized compensation costs (in years)	2 years 180 days
Employee Stock Purchase Plan
Unamortized stock-based compensation expense related to unvested stock awards	$ 500,000
Weighted average period of recognition for unrecognized compensation costs (in years)	180 days
Percentage of market value price of common stock under Employee Stock Purchase Plan	85.00%
Maximum contribution percentage amount of employee's base compensation	10.00%

Stockholders' Equity Repurchases of Common Shares (Narrative) (Detail) - USD ($)	12 Months Ended
	Mar. 31, 2018	Mar. 31, 2016
Stock repurchased and retired during period, value	$ (17,934,000)	$ (11,190,000)
Total Plan 2017
Stock repurchase program, authorized amount	25,000,000
Stock repurchase program, remaining authorized repurchase amount	$ 7,100,000

Inome Taxes (Income Tax Provision) (Detail) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Current:
Federal									$ (395)	$ (7)	$ 97
State									256	588	551
Foreign									185	112	71
Total current income tax provision									46	693	719
Deferred:
Federal									59,837	1,506	95
State									6,664	(1,095)	(854)
Foreign									(253)	(1,230)	(807)
Total deferred tax (benefit) provision									66,248	(819)	(1,566)
Income tax (benefit) provision	$ 142	$ 70,842	$ (3,453)	$ (1,236)	$ (178)	$ 30	$ (15)	$ 37	$ 66,294	$ (126)	$ (847)

Income taxes (Deferred Tax Assets) (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Mar. 31, 2017
Current deferred tax assets
Net operating loss carryforwards	$ 40,465	$ 36,427
Research and development and other credit carryforwards	11,761	8,614
Stock-based compensation	6,389	6,942
Reserves and allowances	3,181	3,266
Fixed assets and intangibles	378	(3,688)
Net non-current deferred tax assets	62,174	51,561
Valuation allowance	(62,174)	(2,934)
Total	$ 0	$ 48,627

Income Taxes (Reconciliation of Taxes Provided to Federal Statutory Rate) (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Income Taxes Reconciliation Of Taxes Provided To Federal Statutory Rate Details
Tax provision at statutory rate									$ (11,790)	$ (1,652)	$ (2,029)
State income taxes before valuation allowance, net of federal effect									(1,042)	108	9
Foreign tax rate differential									(1,188)	885	(769)
Research and development credits									(2,189)	(1,484)	(1,253)
Change in valuation allowance									56,663	(287)	(1,555)
Compensation/option differences									(4,965)	(246)	(471)
Tax Act rate change impact									1,132	0	0
Non-deductible compensation									22,630	1,079	944
Acquisition costs									0	54	230
Expiring California loss carry-forwards									0	0	1,626
Foreign loss not benefited									6,847	780	2,342
Other									196	637	79
Total income tax provision (benefit)	$ 142	$ 70,842	$ (3,453)	$ (1,236)	$ (178)	$ 30	$ (15)	$ 37	$ 66,294	$ (126)	$ (847)

Income Taxes (Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands	12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Income Taxes Unrecognized Tax Benefits Details
Balance at beginning of year	$ 3,331	$ 2,881	$ 2,420
Gross increases - tax position in prior period	0	0	82
Gross increases - tax positions related to the current year	649	450	379
Balance at end of year	$ 3,980	$ 3,331	$ 2,881

Income Taxes (Narrative) (Details) - USD ($) $ in Millions	12 Months Ended
Income Taxes (Narrative) (Details) - USD ($) $ in Millions	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Operating loss carryforwards, expiration dates	Mar. 31, 2029
Accrued penalties and interest	$ 0.0	$ 0.0	$ 0.0
Federal
Operating Loss Carryforwards	157.6
Research Tax Credit Carryforwards	$ 7.2
Research Tax Credit Carryforwards, Expiration Dates	Mar. 31, 2021
State
Operating Loss Carryforwards	$ 27.5
Research Tax Credit Carryforwards	$ 9.1

Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Numerator:
Net loss available to common stockholders	$ (13,262)	$ (88,520)	$ (546)	$ (2,169)	$ (2,925)	$ (1,325)	$ 27	$ (528)	$ (104,497)	$ (4,751)	$ (5,120)
Denominator:
Denominator for basic calculation	92,526	92,029	91,689	91,643	91,175	90,774	89,987	89,434	92,017	90,340	88,477
Denominator for diluted calculation	92,526	92,029	91,689	91,643	91,175	90,774	93,447	89,434	92,017	90,340	88,477
Net loss per share:
Basic	$ (0.14)	$ (0.96)	$ (0.01)	$ (0.02)	$ (0.03)	$ (0.01)	$ 0.00	$ (0.01)	$ (1.14)	$ (0.05)	$ (0.06)
Diluted	$ (0.14)	$ (0.96)	$ (0.01)	$ (0.02)	$ (0.03)	$ (0.01)	$ 0.00	$ (0.01)	$ (1.14)	$ (0.05)	$ (0.06)

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(19))
-URI http://asc.fasb.org/extlink&oid=114873790&loc=SL114874131-224263

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109260490&loc=d3e1337-109256

Reference 3: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 55
-Paragraph 52
-URI http://asc.fasb.org/extlink&oid=109256448&loc=d3e4984-109258

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(21))
-URI http://asc.fasb.org/extlink&oid=115205541&loc=SL114868664-224227

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22694-107794

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=109260490&loc=d3e1252-109256

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(23))
-URI http://asc.fasb.org/extlink&oid=114873765&loc=SL114874048-224260

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 60B
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=109260490&loc=SL5780133-109256

+ Details

- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 55
-Paragraph 52
-URI http://asc.fasb.org/extlink&oid=109256448&loc=d3e4984-109258

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=109260490&loc=d3e1252-109256

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(23))
-URI http://asc.fasb.org/extlink&oid=114873765&loc=SL114874048-224260

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22694-107794

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109260490&loc=d3e1337-109256

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(21))
-URI http://asc.fasb.org/extlink&oid=115205541&loc=SL114868664-224227

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 60B
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=109260490&loc=SL5780133-109256

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(19))
-URI http://asc.fasb.org/extlink&oid=114873790&loc=SL114874131-224263

+ Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Net Income Per Share Options and Rights Excluded (Details) - shares shares in Thousands	12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Anti-dilutive shares	9,938	9,412	9,421
Employee stock options
Anti-dilutive shares	3,998	4,462	4,793
Stock purchase rights
Anti-dilutive shares	5,940	4,950	4,628

Segment Reporting Revenue and Property and Equipment by Geographic Area (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Net revenue									$ 296,500	$ 253,388	$ 209,336
Depreciation and amortization expense									15,717	10,437	9,007
Net income (loss)	$ (13,262)	$ (88,520)	$ (546)	$ (2,169)	$ (2,925)	$ (1,325)	$ 27	$ (528)	(104,497)	(4,751)	(5,120)
Total assets	277,209				333,855				277,209	333,855
Property and equipments, net	35,732				24,061				35,732	24,061
Americas
Net revenue									266,034	227,914	185,241
Depreciation and amortization expense									10,619	6,842	5,776
Net income (loss)									(84,792)	2,557	940
Total assets	240,099				284,011				240,099	284,011
Property and equipments, net	27,210				19,480				27,210	19,480
Europe
Net revenue									30,466	25,474	24,095
Depreciation and amortization expense									5,098	3,595	3,231
Net income (loss)									(19,705)	(7,308)	$ (6,060)
Total assets	37,110				49,844				37,110	49,844
Property and equipments, net	$ 8,462				$ 4,581				$ 8,462	$ 4,581

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Acquisitions (Purchase Information) (Details) - USD ($) $ in Thousands	1 Months Ended
	Jan. 31, 2017	Jun. 30, 2015	May 31, 2015
LeChat
Effective date of purchase agreement	Jan. 06, 2017
Business Acquisition, Description of Acquired Entity	<p style="margin: 0"><font style="font-size: 10pt"></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">On January 5, 2017, the Company entered into an Agreement and Plan of Merger (the "Agreement") with the preferred and common shareholders LeChat Inc. (LeChat) for the purchase of all the outstanding preferred and common shares of LeChat. The transaction closed on January 6, 2017. The total aggregate purchase price was $3.1 million, consisting of approximately $2.4 million paid to the preferred shareholders at closing, $0.2 million paid to the common shareholders at closing, and approximately $0.5 million in cash deposited into escrow to be held for two years as security against indemnity claims made by the Company after the closing date.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">The Company recorded the acquired tangible and identifiable intangible assets and liabilities assumed based on their estimated fair values. The excess of the consideration transferred over the aggregate fair values of the assets acquired and liabilities assumed was recorded as goodwill. The amount of goodwill recognized was primarily attributable to the expected contributions of the entity to the overall corporate strategy in addition to synergies and acquired workforce of the acquired business. The finite-lived intangible asset consisted of developed technology, with an estimated weighted-average useful life of two years. The fair value assigned to identifiable intangible assets acquired was based on estimates and assumptions made by management using a cost approach method. Intangible assets are amortized on a straight-line basis.</p> <p style="margin: 0"><font style="font-size: 10pt"> </font></p> <p style="margin: 0"></p> <p style="margin: 0"> </p> <p style="margin: 0"></p> <p style="margin: 0"> </p> <p style="margin: 0"> </p> <p style="margin: 0"><font style="font-size: 10pt"> </font></p>
Assets acquired:
Cash	$ 231
Intangible assets	1,200
Other non-current assets	428
Total assets acquired	1,859
Liabilities assumed:
Current and non-current liabilities	(324)
Total liabilities assumed	(324)
Net identifiable assets acquired	1,535
Goodwill	1,580
Total consideration transferred	$ 3,115
DXI
Effective date of purchase agreement			May 26, 2015
Business Acquisition, Description of Acquired Entity			<p style="margin: 0"><font style="font-size: 10pt"></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">On May 26, 2015, the Company entered into a share purchase agreement with the shareholders of DXI Limited, and its wholly owned subsidiaries, (collectively DXI) for the purchase of the entire share capital of DXI. The transaction closed effective May 29, 2015. The total aggregate purchase price was approximately $22.5 million, consisting of $18.7 million in cash paid to the DXI shareholders at closing, and $3.8 million in cash deposited into escrow to be held for two years as security against indemnity claims made by the Company after the closing date. The cash escrow is to be released in annual installments over two years.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">The Company recorded the acquired tangible and identifiable intangible assets and liabilities assumed based on their estimated fair values. The excess of the consideration transferred over the aggregate fair values of the assets acquired and liabilities assumed is recorded as goodwill. The amount of goodwill recognized is primarily attributable to the expected contributions of the entity to the overall corporate strategy in addition to synergies and acquired workforce of the acquired business. The finite-lived intangible assets consist of the following: customer relationships, with an estimated weighted-average useful life of two and five years; and developed technology, with an estimated weighted-average useful life of six years. The indefinite lived intangible asset consisted of a tradename. The fair value assigned to identifiable intangible assets acquired was based on estimates and assumptions made by management using income approach methods. Intangible assets are amortized on a straight-line basis.</p> <p style="margin: 0"><font style="font-size: 10pt"> </font></p> <p style="margin: 0"></p> <p style="margin: 0"></p> <p style="margin: 0"><font style="font-size: 10pt"> </font></p>
Assets acquired:
Cash			$ 1,318
Current assets			2,016
Property and equipment			1,453
Intangible assets			13,374
Total assets acquired			18,161
Liabilities assumed:
Current and non-current liabilities			(5,734)
Total liabilities assumed			(5,734)
Net identifiable assets acquired			12,427
Goodwill			10,125
Total consideration transferred			$ 22,552
QSC
Effective date of purchase agreement		Jun. 03, 2015
Business Acquisition, Description of Acquired Entity		<p style="margin: 0"><font style="font-size: 10pt"></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">On June 3, 2015, the Company entered into an asset purchase agreement with the shareholder of Quality Software Corporation (QSC) and other parties affiliated with the shareholder and QSC for the purchase of certain assets as per the purchase agreement. The total aggregate fair value of the consideration was approximately $2.9 million, which $2.2 million was paid in cash to the QSC shareholder at closing. As part of the aggregate purchases price, there is also $0.5 million in contingent consideration payable subject to attainment of certain revenue and product release milestones for the acquired business, and $0.3 million in cash held by the Company in escrow to be retained for two years as security against indemnity claims made by the Company after the closing date. The preliminary fair value of the contingent consideration and escrow amounts was $0.7 million at the acquisition date.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">The Company recorded the acquired identifiable intangible assets and liabilities assumed based on their estimated fair values. The excess of the consideration transferred over the aggregate fair values of the assets acquired and liabilities assumed is recorded as goodwill. The amount of goodwill recognized is primarily attributable to the expected contributions of the entity to the overall corporate strategy in addition to synergies and acquired workforce of the acquired business. The finite-lived intangible assets consist of the following: customer relationships, with an estimated weighted-average useful life of five years; and developed technology, with an estimated weighted-average useful life of six years. The indefinite lived intangible asset consisted of in-process research and development and a tradename. The fair value assigned to identifiable intangible assets acquired was based on estimates and assumptions made by management using income approach methods. Intangible assets are amortized on a straight-line basis.</p> <p style="margin: 0"><font style="font-size: 10pt"> </font></p> <p style="margin: 0"><font style="font-size: 10pt"> </font></p> <p style="margin: 0"></p>
Assets acquired:
Intangible assets		$ 1,100
Total assets acquired		1,100
Liabilities assumed:
Net identifiable assets acquired		1,100
Goodwill		1,789
Total consideration transferred		$ 2,889

Subsequent Events (Narrative) (Details) - DXI Subsequent Event	1 Months Ended
	Apr. 30, 2018
Subsequent Event, Date	Apr. 30, 2018
Subsequent Event, Description	<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">In April 2018, the Company entered into an asset purchase agreement with MarianaIQ, Inc. The total aggregate purchase price was $3.5 million, consisting of approximately $2.6 million paid at closing and $0.9 million in cash deposited into escrow to be held for fifteen months as security against indemnity claims made by the Company after the closing date.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"> </p>

Consolidated Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Quarterly Financial Data Details
Service revenue	$ 75,325	$ 71,891	$ 68,123	$ 65,091	$ 62,654	$ 60,149	$ 57,717	$ 55,296	$ 280,430	$ 235,816	$ 192,241
Product revenue	4,019	3,684	4,360	4,007	3,834	3,527	5,466	4,745	16,070	17,572	17,095
Total revenue	79,344	75,575	72,483	69,098	66,488	63,676	63,183	60,041	296,500	253,388	209,336
Operating expenses:
Cost of service revenue	13,952	12,318	12,757	11,662	10,803	10,525	10,837	10,235	50,689	42,400	37,078
Cost of product revenue	5,826	4,675	5,098	4,884	4,187	4,240	5,782	5,505	20,482	19,714	20,168
Research and development	10,016	8,527	8,311	7,943	7,142	7,095	6,505	6,710	34,797	27,452	24,040
Sales and marketing	52,940	48,830	41,163	41,110	38,228	35,667	33,691	31,691	184,044	139,277	109,379
General and administrative	10,340	10,003	9,616	8,956	9,814	7,852	6,747	6,801	38,915	31,214	25,745
Impairment of goodwill, intangible assets and equipment	0	9,469	0	0	0	0	0	0	9,469	0	0
Total operating expenses	93,074	93,822	76,945	74,555	70,174	65,379	63,562	60,942	338,396	260,057	216,410
Loss from operations	(13,730)	(18,247)	(4,462)	(5,457)	(3,686)	(1,703)	(379)	(901)	(41,896)	(6,669)	(7,074)
Other income, net	610	569	463	2,052	583	408	391	410	3,693	1,792	1,107
Loss before provision (benefit) for income taxes	(13,120)	(17,678)	(3,999)	(3,405)	(3,103)	(1,295)	12	(491)	(38,203)	(4,877)	(5,967)
Provision (benefit) for income taxes	142	70,842	(3,453)	(1,236)	(178)	30	(15)	37	66,294	(126)	(847)
Net loss	$ (13,262)	$ (88,520)	$ (546)	$ (2,169)	$ (2,925)	$ (1,325)	$ 27	$ (528)	$ (104,497)	$ (4,751)	$ (5,120)
Net income (loss) per share:
Basic	$ (0.14)	$ (0.96)	$ (0.01)	$ (0.02)	$ (0.03)	$ (0.01)	$ 0.00	$ (0.01)	$ (1.14)	$ (0.05)	$ (0.06)
Diluted	$ (0.14)	$ (0.96)	$ (0.01)	$ (0.02)	$ (0.03)	$ (0.01)	$ 0.00	$ (0.01)	$ (1.14)	$ (0.05)	$ (0.06)
Shares used in per share calculations:
Basic	92,526	92,029	91,689	91,643	91,175	90,774	89,987	89,434	92,017	90,340	88,477
Diluted	92,526	92,029	91,689	91,643	91,175	90,774	93,447	89,434	92,017	90,340	88,477