Annual report pursuant to Section 13 and 15(d)

Revenue Recognition (Notes)

Revenue Recognition (Notes)
12 Months Ended
Mar. 31, 2020
Revenue from Contract with Customer [Abstract]  
Revenue from Contract with Customer [Text Block]
Revenue Recognition and Deferred Revenue
The Company adopted ASC 606 on April 1, 2018, using the modified retrospective approach to all non-completed contracts as of the date of adoption. As a result of the adoption, the Company recognized a cumulative effect of initially applying ASC 606 as a credit of $0.3 million to the beginning balance of retained earnings. This adjustment to retained earnings was a result of accelerated revenue recognition for right-to-use licenses previously accounted for under the software revenue recognition
guidance and for which vendor specific objective evidence (“VSOE”) had not been established. The Company records revenue based on a five-step model in accordance with ASC 606. The Company's revenue is derived from the sale of products, software, and services identified in contracts. A contract exists when both parties have an approved agreement that creates enforceable rights and obligations, identifies performance obligations and payment terms and has commercial substance. The Company records revenue from these contracts when control of the products or services transfer to the customer. The amount of revenue to be recognized is based upon the consideration, including the impact of any variable consideration that the Company expects to be entitled to receive in exchange for these products and services.

Disaggregation of revenue
The following table disaggregates our revenue by major source:
(In thousands)
Twelve months ended March 31,






Total revenue


The following is the expected future revenue recognition timing of deferred revenue as of March 31, 2020:
< 1 year
1-2 years
> 2 years
Deferred Revenue



During the fiscal years ended March 31, 2020, and 2019, the Company recognized $1.2 million and $1.7 million of revenue, respectively, related to contract liabilities included in deferred revenue at the beginning of the periods.
The Company allows certain customers to return unused product under specified terms and conditions.  The Company estimates product returns based on historical sales and return trends and records a corresponding refund liability.  The refund liability is included within Accrued expenses on the accompanying Consolidated Balance Sheets.  Additionally, the Company records an asset based on historical experience for the amount of product we expect to return to inventory as a result of the return, which is recorded in Prepaid and other current assets in the Consolidated Balance Sheets.  The gross product return asset was $0.1 million and $0.2 million at March 31, 2020, and 2019, respectively.