x
|
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF
1934
|
¨
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF
1934
|
Delaware
|
93-1051328
|
(State
or Other Jurisdiction of
Incorporation
or Organization)
|
(I.R.S.
Employer
Identification
Number)
|
Large
accelerated filer ¨
|
Accelerated
filer x
|
Non-accelerated
filer ¨
|
PART I.
FINANCIAL INFORMATION
|
Page No.
|
|
|
|
|
Item 1.
|
3
|
|
|
|
|
|
3
|
|
|
|
|
|
4
|
|
|
|
|
|
5
|
|
|
|
|
|
6
|
|
|
|
|
Item 2.
|
24
|
|
|
|
|
Item 3.
|
41
|
|
|
|
|
Item 4.
|
42
|
|
|
||
PART II.
OTHER INFORMATION
|
||
|
|
|
Item 1.
|
44
|
|
|
|
|
Item 1A.
|
46
|
|
|
|
|
Item 1B.
|
56
|
|
Item 4.
|
57
|
|
Item 6.
|
58
|
|
|
|
|
|
58
|
|
|
|
|
June
30,
2007
|
September
30,
2006
|
|
|||
|
|
|
|
|
|
|||
ASSETS
|
|
|
|
|
||||
Current
assets:
|
|
|
|
|||||
Cash
and cash equivalents
|
|
$
|
73,459
|
$
|
45,278
|
|||
Marketable
securities
|
11,587
|
—
|
||||||
Restricted
cash
|
|
|
44
|
|
185
|
|||
Accounts
receivable, net, including nil and $142 due from related parties
at June
30, 2007 and September 30, 2006, respectively
|
|
|
30,187
|
|
19,025
|
|||
Prepaid
expenses and other current assets
|
|
|
6,235
|
|
5,210
|
|||
Total
current assets
|
|
|
121,512
|
|
69,698
|
|||
Restricted
cash—long-term
|
|
|
260
|
|
334
|
|||
Property
and equipment, net
|
|
|
2,710
|
|
2,630
|
|||
Goodwill
|
|
|
32,044
|
|
32,044
|
|||
Intangible
assets, net
|
|
|
3,028
|
|
3,937
|
|||
Other
assets
|
|
|
3,184
|
|
2,860
|
|||
Total
assets
|
|
$
|
162,738
|
$
|
111,503
|
|||
|
|
|
|
|
|
|||
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
|
|
|
|||||
Current
liabilities:
|
|
|
|
|||||
Accounts
payable, including nil and $132 due to related parties at June
30, 2007 and September 30, 2006, respectively
|
|
$
|
4,140
|
$
|
7,665
|
|||
Accrued
expenses
|
|
|
14,168
|
|
15,706
|
|||
Deferred
revenue, including related party balances of $180 and $112 at June
30,
2007 and September 30, 2006, respectively
|
|
|
50,166
|
|
23,909
|
|||
Current
portion of capital lease obligations
|
|
|
—
|
|
95
|
|||
Total
current liabilities
|
|
|
68,474
|
|
47,375
|
|||
Deferred
revenue—long-term
|
|
|
26,457
|
|
5,596
|
|||
Restructuring
costs, net of current portion
|
|
|
3,021
|
|
1,239
|
|||
Other
long-term liabilities
|
|
|
400
|
|
68
|
|||
Total
liabilities
|
|
|
98,352
|
|
54,278
|
|||
Commitments
and contingencies (Notes 8, 9 and 10)
|
|
|
|
|
||||
|
|
|
|
|||||
Stockholders’
equity:
|
|
|
|
|
||||
Preferred
stock, $0.001 par value; 51,000 shares authorized; none issued
and
outstanding at June 30, 2007 and September 30,
2006
|
|
|
—
|
|
—
|
|||
Common
stock, $0.001 par value; 120,000 shares authorized; 32,858 and
32,030
shares issued and outstanding at June 30, 2007 and September 30,
2006, respectively
|
|
|
33
|
|
32
|
|||
Additional
paid-in capital
|
|
|
292,501
|
|
286,440
|
|||
Accumulated
deficit
|
|
|
(232,265
|
)
|
|
(232,943
|
)
|
|
Accumulated
other comprehensive income
|
|
|
4,117
|
|
3,696
|
|||
Total
stockholders’ equity
|
|
|
64,386
|
57,225
|
||||
Total
liabilities and stockholders’ equity
|
|
$
|
162,738
|
$
|
111,503
|
Three
Months Ended June 30,
|
Nine
Months Ended June 30,
|
|||||||||||||||
|
|
|
2007
|
|
2006
|
|
|
2007
|
|
2006
|
||||||
Revenues:
|
|
|
|
|
|
|
||||||||||
License
|
|
$
|
14,094
|
$
|
10,257
|
|
$
|
40,137
|
$
|
32,588
|
||||||
Service,
including related party items aggregating $64 and $296 for the
three
months ended June 30, 2007 and 2006, respectively, and $268 and
$527 for
the nine months ended June 30, 2007 and 2006, respectively
|
|
|
22,667
|
|
16,769
|
|
|
52,328
|
|
43,268
|
||||||
Total
revenues
|
|
|
36,761
|
|
27,026
|
|
|
92,465
|
|
75,856
|
||||||
Cost
of revenues:
|
|
|
|
|
|
|
||||||||||
License
|
|
|
419
|
|
398
|
|
|
1,456
|
|
1,360
|
||||||
Service,
including related party items aggregating nil and $468 for the three
months ended June 30, 2007 and 2006, respectively and $177 and
$542 for
the nine months ended June 30, 2007 and 2006, respectively
|
|
|
9,264
|
|
8,965
|
|
|
22,353
|
|
23,217
|
||||||
Amortization
of intangible assets
|
|
|
303
|
|
303
|
|
|
908
|
|
908
|
||||||
Total
cost of revenues
|
|
|
9,986
|
|
9,666
|
|
|
24,717
|
|
25,485
|
||||||
Gross
profit
|
|
|
26,775
|
|
17,360
|
|
|
67,748
|
|
50,371
|
||||||
Operating
expenses:
|
|
|
|
|
|
|
||||||||||
Sales
and marketing
|
|
|
9,065
|
|
7,976
|
|
|
24,643
|
|
24,876
|
||||||
Research
and development
|
|
|
7,328
|
|
7,780
|
|
|
20,919
|
|
18,159
|
||||||
General
and administrative
|
4,584
|
4,842
|
15,490
|
14,806
|
||||||||||||
Restructuring
expense
|
|
|
—
|
|
—
|
|
|
6,727
|
|
—
|
||||||
Total
operating expenses
|
|
|
20,977
|
|
20,598
|
|
|
67,779
|
|
57,841
|
||||||
Income
(loss) from operations
|
|
|
5,798
|
|
(3,238
|
)
|
|
|
(31
|
)
|
|
(7,470
|
)
|
|||
Interest
income, net
|
|
|
682
|
|
329
|
|
|
1,478
|
|
809
|
||||||
Other
income (expense), net
|
|
|
213
|
|
(623
|
)
|
|
|
377
|
|
(536
|
)
|
||||
Income
(loss) before income taxes
|
|
|
6,693
|
|
(3,532
|
)
|
|
|
1,824
|
|
(7,197
|
)
|
||||
Provision
for income taxes
|
|
|
240
|
|
150
|
|
|
1,146
|
|
441
|
||||||
Net
income (loss)
|
|
$
|
6,453
|
$
|
(3,682
|
)
|
|
$
|
678
|
$
|
(7,638
|
)
|
||||
Net
income (loss) per share:
|
||||||||||||||||
Basic
|
|
$
|
0.20
|
$
|
(0.12
|
)
|
|
$
|
0.02
|
$
|
(0.25
|
)
|
||||
Diluted
|
$
|
0.19
|
$
|
(0.12
|
)
|
$
|
0.02
|
$
|
(0.25
|
)
|
||||||
Weighted
average shares used in computing net income (loss) per
share:
|
|
|||||||||||||||
Basic
|
32,743
|
31,214
|
32,208
|
30,943
|
||||||||||||
Diluted
|
34,384
|
31,214
|
33,431
|
30,943
|
Nine
Months Ended June 30,
|
||||||||
|
|
|
2007
|
|
2006
|
|
||
Cash
flows from operating activities:
|
|
|
|
|
||||
Net
income (loss)
|
|
$
|
678
|
$
|
(7,638
|
)
|
||
Adjustments
to reconcile net income (loss) to net cash provided by operating
activities:
|
|
|
|
|||||
Depreciation
and amortization
|
|
|
1,065
|
|
892
|
|||
Amortization
of intangibles and capitalized software
|
|
|
1,584
|
|
1,583
|
|||
Non-cash
stock-based compensation expense
|
|
|
2,234
|
|
3,694
|
|||
Provision
for doubtful accounts and sales returns
|
|
|
234
|
|
51
|
|||
Loss
on disposal of assets
|
|
|
666
|
|
39
|
|||
Accretion
of discounts on investments
|
(51
|
)
|
—
|
|||||
Other
non-cash charges
|
|
|
445
|
|
105
|
|||
Changes
in assets and liabilities:
|
|
|
|
|||||
Accounts
receivable
|
|
|
(13,960
|
)
|
|
(3,122
|
)
|
|
Prepaid
expenses and other current assets
|
|
|
(930
|
)
|
|
(628
|
)
|
|
Other
assets
|
|
|
1,771
|
|
(60
|
)
|
||
Accounts
payable
|
|
|
(3,625
|
)
|
|
3,171
|
||
Accrued
expenses
|
|
|
246
|
|
4,055
|
|||
Deferred
revenue
|
|
|
45,999
|
|
(1,489
|
)
|
||
Net
cash provided by operating activities
|
|
|
36,356
|
|
653
|
|||
Cash
flows from investing activities:
|
|
|
|
|||||
Purchases
of property, equipment, and leasehold improvements
|
|
|
(1,751
|
)
|
|
(1,043
|
)
|
|
Capitalized
product development costs
|
(202
|
)
|
—
|
|||||
Cash
proceeds from disposal of property and equipment
|
—
|
11
|
||||||
Purchase
of marketable securities
|
(11,536
|
)
|
—
|
|||||
Proceeds
from release of restricted cash
|
|
|
217
|
|
1,875
|
|||
Net
cash provided by (used for) investing activities
|
|
|
(13,272
|
)
|
|
843
|
||
Cash
flows from financing activities:
|
|
|
|
|||||
Proceeds
from exercise of stock options
|
|
|
3,798
|
|
1,682
|
|||
Payment
on capital leases
|
|
|
(96
|
)
|
|
(158
|
)
|
|
Net
cash provided by financing activities
|
|
|
3,702
|
|
1,524
|
|||
Effect
of exchange rate changes
|
|
|
1,395
|
|
1,098
|
|||
Net
increase in cash and cash equivalents
|
|
|
28,181
|
|
4,118
|
|||
Cash
and cash equivalents at beginning of period
|
|
|
45,278
|
|
38,546
|
|||
Cash
and cash equivalents at end of period
|
|
$
|
73,459
|
$
|
42,664
|
Three
Months Ended June 30,
|
Nine
Months Ended June 30,
|
|||||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||||
Citicorp
Credit Services, Inc.
|
44%
|
16%
|
21%
|
13%
|
||||||||||||||
International
Business Machines (“IBM”)
|
*
|
*
|
20%
|
*
|
||||||||||||||
Turkiye
Is Bankasi, A.S.
|
10%
|
*
|
*
|
*
|
||||||||||||||
Capital
One Services, Inc.
|
*
|
*
|
*
|
10%
|
||||||||||||||
Sky
Subscribers Services Limited
|
*
|
13%
|
*
|
*
|
||||||||||||||
Three
Months Ended June 30,
|
Nine
Months Ended June 30,
|
||||||||||||||||
2007
|
2006
|
2007
|
2006
|
||||||||||||||
Net
income (loss) available to common stockholders
|
$
|
6,453
|
$
|
(3,682
|
)
|
$
|
678
|
$
|
(7,638
|
)
|
|||||||
Denominator:
|
|||||||||||||||||
Weighted
average common stock outstanding
|
32,787
|
31,710
|
32,464
|
31,439
|
|||||||||||||
Common
stock subject to repurchase
|
(44
|
)
|
(496
|
)
|
(256
|
)
|
(496
|
)
|
|||||||||
Denominator
for basic calculation
|
32,743
|
31,214
|
32,208
|
30,943
|
|||||||||||||
Effect
of dilutive potential common shares
|
1,641
|
—
|
(1)
|
1,223
|
—
|
(1)
|
|||||||||||
Denominator
for diluted calculation
|
34,384
|
31,214
|
33,431
|
30,943
|
|||||||||||||
Net
income (loss) per share – basic
|
$
|
0.20
|
$
|
(0.12
|
)
|
$
|
0.02
|
$
|
(0.25
|
)
|
|||||||
Net
income (loss) per share – diluted
|
$
|
0.19
|
$
|
(0.12
|
)
|
$
|
0.02
|
$
|
(0.25
|
)
|
June
30,
2006
|
|
||||||||
|
|
||||||||
Warrants
outstanding
|
665
|
||||||||
Employee
stock options
|
3,920
|
||||||||
Restricted
stock
|
496
|
||||||||
|
5,081
|
As
of June 30, 2007
|
|||||||||||||||||
Amortized
costs
|
Gross
Unrealized
Gain
|
Gross
Unrealized
Loss
|
Fair
Value
|
||||||||||||||
Marketable
Securities:
|
|||||||||||||||||
Commercial
paper
|
$
|
6,445
|
$
|
—
|
$
|
—
|
$
|
6,445
|
|||||||||
Corporate
Bonds
|
5,144
|
—
|
(2
|
)
|
5,142
|
||||||||||||
Total
|
$
|
11,589
|
$
|
—
|
$
|
(2
|
)
|
$
|
11,587
|
June
30,
2007
|
September
30,
2006
|
|
|||||||
Accounts
receivable, net:
|
|
|
|
|
|||||
Accounts
receivable
|
$
|
30,504
|
|
$
|
19,108
|
|
|||
Less:
allowance for doubtful accounts
|
|
(317
|
)
|
|
(83
|
)
|
|||
|
$
|
30,187
|
|
$
|
19,025
|
|
June
30,
2007
|
September
30,
2006
|
|
|||||||
Prepaid
expense and other current assets:
|
|
|
|
|
|||||
Prepaid
commissions and royalties
|
$
|
4,261
|
|
$
|
3,265
|
|
|||
Other
prepaid expenses and current assets
|
|
1,974
|
|
1,945
|
|||||
|
$
|
6,235
|
|
$
|
5,210
|
|
June
30,
2007
|
September
30,
2006
|
|
|||||||
Property
and equipment, net:
|
|
|
|
|
|||||
Computer
hardware (useful lives of 3 years)
|
$
|
3,441
|
|
$
|
3,313
|
|
|||
Purchased
internal-use software (useful lives of 3 years)
|
|
2,411
|
|
|
2,254
|
||||
Furniture
and equipment (useful lives of 3 to 7 years)
|
|
1,385
|
|
|
1,043
|
||||
Computer
equipment and software under capital leases (useful lives of 3
years)
|
|
—
|
|
|
549
|
||||
Leasehold
improvements (shorter of 7 years or the term of the lease)
|
|
2,004
|
|
|
2,729
|
||||
9,241
|
|
|
9,888
|
|
|||||
Accumulated
depreciation and amortization
|
(6,531
|
)
|
|
(7,258
|
)
|
||||
|
$
|
2,710
|
|
$
|
2,630
|
|
June
30, 2007
|
September 30,
2006
|
|||||||||||||||||||||||
|
Gross
Carrying
Amount
|
|
|
Accumulated
Amortization
|
Net
Carrying
Amount
|
Gross
Carrying
Amount
|
Accumulated
Amortization
|
Net
Carrying
Amount
|
|
|||||||||||||||
Intangible
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Developed
technologies
|
|
$
|
6,904
|
|
$
|
(4,645
|
)
|
$
|
2,259
|
|
$
|
6,904
|
|
$
|
(3,972
|
)
|
$
|
2,932
|
|
|||||
Customer
list and trade-names
|
2,731
|
(1,962
|
)
|
769
|
2,731
|
(1,726
|
)
|
1,005
|
||||||||||||||||
|
|
$
|
9,635
|
|
$
|
(6,607
|
)
|
$
|
3,028
|
|
$
|
9,635
|
|
$
|
(5,698
|
)
|
$
|
3,937
|
|
June
30,
2007
|
September
30,
2006
|
|
|||||||
Other
assets:
|
|
|
|
|
|||||
Long-term
accounts receivable
|
$
|
1,006
|
|
$
|
—
|
|
|||
Other
assets
|
|
2,178
|
|
2,860
|
|||||
|
$
|
3,184
|
|
$
|
2,860
|
|
June
30,
2007
|
September
30,
2006
|
|
|||||||
Accrued
expenses:
|
|
|
|
|
|||||
Accrued
payroll, payroll taxes and related expenses
|
$
|
7,660
|
|
$
|
7,627
|
||||
Accrued
restructuring expenses, current portion (Note 5)
|
|
1,579
|
|
655
|
|||||
Accrued
third party consulting fees
|
|
1,098
|
|
1,491
|
|||||
Accrued
income, sales and other taxes
|
|
2,068
|
|
2,545
|
|||||
Accrued
professional fees
|
|
482
|
|
1,630
|
|||||
Other
accrued liabilities
|
1,281
|
|
1,758
|
||||||
|
$
|
14,168
|
$
|
15,706
|
|
•
|
Severance
and Termination
Benefits—These costs represent severance and payroll taxes related to
restructuring plans.
|
|
•
|
Excess
Facilities—These costs
represent future minimum lease payments related to excess and abandoned
office space under leases,
the disposal of property and
equipment including facility leasehold improvements, and net
of estimated sublease
income.
|
Current
|
Non-Current
|
Total
|
|
||||||||||
Severance
and termination benefits
|
$
|
85
|
$
|
—
|
$
|
85
|
|||||||
Excess
facilities
|
1,494
|
|
3,021
|
4,515
|
|||||||||
|
Total
|
$
|
1,579
|
$
|
3,021
|
$
|
4,600
|
Fiscal
Year Ended
September 30,
|
Total
Future
Minimum
Lease
Payments
|
||||||||||||
2007
(remaining three months)
|
$
|
559
|
|||||||||||
2008
|
1,196
|
||||||||||||
2009
|
|
1,012
|
|||||||||||
2010
|
|
1,642
|
|||||||||||
2011
|
|
106
|
|||||||||||
|
Total
|
$
|
4,515
|
Severance
and
Benefits
|
Excess
Facilities
|
Total
|
|
||||||||||
Reserve
balance as
of September 30, 2006
|
$
|
—
|
$
|
—
|
|
$
|
—
|
|
|||||
Total
charges
|
1,752
|
4,587
|
6,339
|
||||||||||
Non-cash
|
4
|
(982
|
)
|
(978
|
)
|
||||||||
Cash
paid
|
(1,756
|
)
|
(545
|
)
|
(2,301
|
)
|
|||||||
|
Reserve
balance as
of June 30, 2007
|
$
|
—
|
$
|
3,060
|
|
$
|
3,060
|
|
Severance
and Benefits
|
|||||||||||||
Reserve
balance as of September 30, 2006
|
$
|
32
|
|
||||||||||
Total
charges
|
46
|
||||||||||||
Non-cash
|
7
|
||||||||||||
Cash
paid
|
|
—
|
|||||||||||
|
Reserve
balance as of June 30, 2007
|
$
|
85
|
|
Excess
Facilities
|
|||||||||||||
Reserve
balance as of September 30, 2006
|
$
|
1,862
|
|
||||||||||
Total
charges
|
342
|
||||||||||||
Non-cash
|
—
|
||||||||||||
Cash
paid
|
|
(749
|
)
|
||||||||||
|
Reserve
balance as of June 30, 2007
|
$
|
1,455
|
|
Three
Months Ended June 30,
|
Nine
Months Ended June 30,
|
||||||||||||||||
|
|
|
2007
|
|
2006
|
|
|
2007
|
|
2006
|
|||||||
Net
income (loss)
|
|
$
|
6,453
|
$
|
(3,682
|
)
|
|
$
|
678
|
$
|
(7,638
|
)
|
|||||
Other
comprehensive income (loss):
|
|
|
|
|
|
|
|||||||||||
Foreign
currency translation gain (loss)
|
|
|
(109
|
)
|
|
971
|
|
|
422
|
|
904
|
||||||
Unrealized
loss from investments
|
(2
|
)
|
—
|
(2
|
)
|
—
|
|||||||||||
Comprehensive
income (loss)
|
|
$
|
6,342
|
$
|
(2,711
|
)
|
|
$
|
1,098
|
$
|
(6,734
|
)
|
Revenue
|
Cost
of Revenues
|
Payments
|
|||||||||||||||||
For
the three
months ended
June
30, 2007
|
For
nine
months ended
June 30, 2007
|
For
the three
months ended
June 30, 2007
|
For
the nine
months ended
June 30, 2007
|
For
the three
months ended
June 30, 2007
|
For
the nine
months ended
June 30, 2007
|
||||||||||||||
$
|
—
|
$
|
81
|
$
|
—
|
$
|
177
|
$
|
—
|
$
|
117
|
||||||||
Revenue
|
Cost
of Revenues
|
Payments
|
Accounts
Receivable
|
Accounts
Payable
|
||||||||||||||||||||
For
the three
months ended
June
30, 2006
|
For
nine
months ended
June 30, 2006
|
For
the three
months ended
June 30, 2006
|
For
the nine
months ended
June 30, 2006
|
For
the three
months ended
June 30, 2006
|
For
the nine
months ended
June 30, 2006
|
At
September
30,
2006
|
At
September
30,
2006
|
|||||||||||||||||
$
|
234
|
$
|
345
|
$
|
468
|
$
|
542
|
$
|
417
|
$
|
559
|
$
|
2
|
$
|
132
|
|||||||||
Revenue
|
Accounts Receivable
|
Deferred
Revenue
|
||||||||||||||||||||||
For
the three
months ended
June 30, 2007
|
For
the nine
months ended
June
30, 2007
|
For
the three
months ended
June 30, 2006
|
For
the nine
months ended
June 30, 2006
|
At
June
30,
2007
|
At
September
30,
2006
|
At
June
30,
2007
|
At
September
30,
2006
|
|||||||||||||||||
$
|
64
|
$
|
187
|
$
|
62
|
$
|
182
|
$
|
—
|
$
|
140
|
$
|
180
|
$
|
112
|
|||||||||
Operating
Leases
|
Operating
Sublease
Income
|
Net
Operating
Leases
|
|
||||||||||
Fiscal
year ended September 30:
|
|||||||||||||
2007
(remaining three months)
|
$
|
1,094
|
|
$
|
(69
|
)
|
$
|
1,025
|
|||||
2008
|
4,091
|
(277
|
)
|
3,814
|
|||||||||
2009
|
3,348
|
(283
|
)
|
3,065
|
|||||||||
2010
|
3,119
|
(294
|
)
|
2,825
|
|||||||||
2011
|
1,540
|
(85
|
)
|
1,455
|
|||||||||
Thereafter
|
1,261
|
|
—
|
|
1,261
|
||||||||
|
Total
minimum payments
|
$
|
14,453
|
$
|
(1,008
|
)
|
$
|
13,445
|
Options
Outstanding
|
|||||||||||||
Shares
Available
for Grant
|
Shares
|
Weighted
Average
Exercise
Price
|
|||||||||||
Balance
at September 30, 2006
|
2,621
|
|
3,688
|
|
$
|
6.33
|
|
||||||
Authorized
|
1,766
|
|
—
|
|
|
—
|
|
||||||
Options
granted
|
(1,298
|
)
|
1,298
|
|
8.85
|
|
|||||||
Options
exercised
|
—
|
|
(965
|
)
|
3.94
|
|
|||||||
Cancellation
of unvested restricted stock
|
133
|
|
—
|
|
|
—
|
|
||||||
Options
cancelled
|
(222
|
)
|
(408
|
)
|
|
8.73
|
|
||||||
|
Balance
at June 30, 2007
|
3,000
|
|
3,613
|
|
$
|
7.71
|
|
Options
Outstanding and Exercisable
|
Options
Vested
|
|||||||||||||||||||||
Range
of
Exercise
Prices
|
|
Number
Outstanding
|
Weighted
Average
Remaining
Contractual
Life
(Years)
|
Weighted
Average
Exercise
Price
|
Aggregate
Intrinsic
Value
Closing
Price
at
06/30/2007
of
$15.66
|
Number
Exercisable
|
Weighted
Average
Exercise
Price
|
Aggregate
Intrinsic
Value
Closing
Price
at
06/30/07
of
$15.66
|
|
|||||||||||||
$0.35
– 4.25
|
|
|
519
|
|
|
6.16
|
|
$
|
3.29
|
|
$
|
6,431
|
|
|
452
|
|
$
|
3.17
|
|
$
|
5,681
|
|
4.50
– 7.05
|
|
|
517
|
|
|
7.15
|
|
|
5.96
|
|
|
5,014
|
|
|
371
|
|
|
5.84
|
|
|
3,640
|
|
7.08
– 7.88
|
|
|
441
|
|
|
7.98
|
|
|
7.46
|
|
|
3,617
|
|
|
170
|
|
|
7.44
|
|
|
1,401
|
|
7.98
– 8.15
|
|
|
440
|
|
|
8.45
|
|
|
7.98
|
|
|
3,376
|
|
|
155
|
|
|
7.99
|
|
|
1,188
|
|
8.25
– 8.25
|
|
|
950
|
|
|
9.63
|
|
|
8.25
|
|
|
7,039
|
|
|
120
|
|
|
8.25
|
|
|
888
|
|
8.28
– 10.43
|
|
|
400
|
|
|
8.10
|
|
|
9.26
|
|
|
2,557
|
|
|
189
|
|
|
9.67
|
|
|
1,135
|
|
10.53
– 45.00
|
|
|
346
|
|
|
7.49
|
|
|
13.69
|
|
|
860
|
|
|
206
|
|
|
13.78
|
|
|
567
|
|
$0.35
– 45.00
|
|
|
3,613
|
|
|
8.06
|
|
$
|
7.71
|
|
$
|
28,894
|
|
|
1,663
|
|
$
|
7.07
|
|
$
|
14,500
|
|
Three
Months Ended June 30,
|
Nine
Months Ended June 30,
|
||||||||||||||||
2007
|
2006
|
2007
|
2006
|
||||||||||||||
Stock-based
compensation expense:
|
|||||||||||||||||
Cost
of revenues, service
|
$
|
63
|
$
|
92
|
$
|
224
|
$
|
176
|
|||||||||
Sales
and marketing
|
|
(1
|
)
|
|
571
|
|
565
|
|
1,907
|
||||||||
Research
and development
|
|
134
|
|
124
|
|
396
|
|
252
|
|||||||||
General
and administrative
|
|
169
|
|
669
|
|
1,049
|
|
1,359
|
|||||||||
Total
stock-based compensation expense
|
$
|
365
|
$
|
1,456
|
$
|
2,234
|
$
|
3,694
|
Three
Months Ended June 30,
|
Nine
Months Ended June 30,
|
||||||||||||||||
2007
|
2006
|
2007
|
2006
|
||||||||||||||
Expected
lives in years
|
3.3
|
3.9
|
3.5
|
3.9
|
|||||||||||||
Risk
free interest rates
|
4.7
|
%
|
5.1
|
%
|
4.7
|
%
|
4.8
|
%
|
|||||||||
Volatility
|
59
|
%
|
86
|
%
|
63
|
%
|
89
|
%
|
|||||||||
Dividend
yield
|
|
0
|
%
|
0
|
%
|
0
|
%
|
0
|
%
|
Three
Months Ended June 30,
|
Nine
Months Ended June 30,
|
||||||||||||||||
2007
|
2006
|
2007
|
2006
|
||||||||||||||
License
Revenue:
|
|||||||||||||||||
Enterprise
solutions
|
$
|
10,442
|
$
|
8,517
|
$
|
26,607
|
$
|
23,631
|
|||||||||
Marketing
solutions
|
2,119
|
1,031
|
4,375
|
6,196
|
|||||||||||||
Decision
management solutions
|
1,533
|
709
|
9,155
|
2,761
|
|||||||||||||
Total
|
$
|
14,094
|
$
|
10,257
|
$
|
40,137
|
$
|
32,588
|
Three
Months Ended June 30,
|
Nine
Months Ended June 30,
|
||||||||||||||||
2007
|
2006
|
2007
|
2006
|
||||||||||||||
Service
Revenue:
|