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Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Dec. 31, 2017	Jan. 23, 2018
Document And Entity Information [Abstract]
Entity Registrant Name	QUALITY SYSTEMS, INC
Entity Central Index Key	0000708818
Document Type	10-Q
Document Period End Date	Dec. 31, 2017
Amendment Flag	false
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--03-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		63,713,925

Consolidated Balance Sheets (Unaudited) - USD ($)
$ in Thousands

Dec. 31, 2017

Mar. 31, 2017

Current assets:

Cash and cash equivalents

$ 23,359

$ 37,673

Restricted cash and cash equivalents

3,393

4,916

Accounts receivable, net

79,416

83,407

Inventory

154

158

Income taxes receivable

4,082

2,679

Prepaid expenses and other current assets

17,944

17,969

Total current assets

128,348

146,802

Equipment and improvements, net

27,137

27,426

Capitalized software costs, net

23,209

13,607

Deferred income taxes, net

7,197

11,265

Intangibles, net

80,663

69,213

Goodwill

216,530

185,898

Other assets

18,299

19,010

Total assets

501,383

473,221

Current liabilities:

Accounts payable

3,069

4,618

Deferred revenue

52,843

52,383

Accrued compensation and related benefits

21,898

24,513

Income taxes payable

405

Other current liabilities

30,153

46,775

Total current liabilities

107,963

128,694

Deferred revenue, net of current

853

1,394

Deferred compensation

6,473

6,629

Line of credit

39,000

15,000

Other noncurrent liabilities

16,354

16,461

Total liabilities

170,643

168,178

Commitments and contingencies (Note 13)

Shareholders' equity:

Common stock, $0.01 par value; authorized 100,000 shares; issued and outstanding 63,719 and 62,455 shares at December 31, 2017 and March 31, 2017, respectively

637

625

Additional paid-in capital

240,584

228,549

Accumulated other comprehensive loss

(235)

(358)

Retained earnings

^[1]

89,754

76,227

Total shareholders' equity

330,740

305,043

Total liabilities and shareholders' equity

$ 501,383

$ 473,221

[1]	Includes cumulative-effect adjustment related to the adoption of ASU 2016-09, as defined in Note 1. See Note 1 for additional details.

Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Dec. 31, 2017	Mar. 31, 2017
Statement Of Financial Position [Abstract]
Common stock, par value (in USD per share)	$ 0.01	$ 0.01
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	63,712,000	62,455,000
Common stock, shares outstanding	63,712,000	62,455,000

Consolidated Statements of Income (Loss) (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Revenues:
Software license and hardware	$ 13,131	$ 16,995	$ 40,198	$ 48,966
Software related subscription services	24,690	22,546	73,584	63,911
Total software, hardware and related	37,821	39,541	113,782	112,877
Support and maintenance	40,362	39,924	123,171	116,905
Revenue cycle management and related services	21,922	20,048	64,327	62,037
Electronic data interchange and data services	23,136	21,790	69,446	65,527
Professional services	8,474	6,565	24,518	19,893
Total revenues	131,715	127,868	395,244	377,239
Cost of revenue:
Software license and hardware	5,726	5,680	15,947	19,227
Software related subscription services	11,693	9,345	32,822	27,107
Total software, hardware and related	17,419	15,025	48,769	46,334
Support and maintenance	7,525	7,299	22,583	20,903
Revenue cycle management and related services	15,401	13,462	45,615	42,052
Electronic data interchange and data services	13,581	12,662	40,313	38,232
Professional services	7,708	5,904	22,278	19,643
Total cost of revenue	61,634	54,352	179,558	167,164
Gross profit	70,081	73,516	215,686	210,075
Operating expenses:
Selling, general and administrative	43,563	37,542	127,517	120,913
Research and development costs, net	20,645	19,714	60,161	56,230
Amortization of acquired intangible assets	1,956	2,568	6,015	7,889
Restructuring costs	130	231	130	4,685
Total operating expenses	66,294	60,055	193,823	189,717
Income from operations	3,787	13,461	21,863	20,358
Interest income	15	0	36	9
Interest expense	(733)	(629)	(2,250)	(2,445)
Other expense, net	(41)	(4)	(48)	(146)
Income before provision for income taxes	3,028	12,828	19,601	17,776
Provision for income taxes	1,487	2,342	6,134	3,950
Net income	1,541	10,486	13,467	13,826
Other comprehensive income:
Foreign currency translation, net of tax	222	(89)	123	(182)
Unrealized gain on marketable securities, net of tax	0	0	0	10
Comprehensive income	$ 1,763	$ 10,397	$ 13,590	$ 13,654
Net income per share:
Basic	$ 0.02	$ 0.17	$ 0.21	$ 0.22
Diluted	$ 0.02	$ 0.17	$ 0.21	$ 0.22
Weighted-average shares outstanding:
Basic	63,706	62,093	63,287	61,645
Diluted	63,708	62,093	63,296	61,900

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Cash flows from operating activities:
Net income	$ 13,467	$ 13,826
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	8,017	7,562
Amortization of capitalized software costs	4,409	6,626
Amortization of other intangibles	17,350	16,953
Amortization of debt issuance costs	807	807
Provision for bad debts	5,084	2,503
Provision for inventory obsolescence	55	369
Share-based compensation	8,585	5,177
Deferred income taxes	3,110	1,367
Excess tax benefit from share-based compensation	328	0
Change in fair value of contingent consideration	0	3,797
Loss on disposal of equipment and improvements	150	452
Changes in assets and liabilities, net of amounts acquired:
Accounts receivable	960	16,005
Inventory	(51)	(66)
Accounts payable	(2,442)	(5,983)
Deferred revenue	(709)	(8,195)
Accrued compensation and related benefits	(3,315)	(50)
Income taxes	(1,956)	18,060
Deferred compensation	(156)	381
Other assets and liabilities	3,082	1,832
Net cash provided by operating activities	56,775	81,423
Cash flows from investing activities:
Additions to capitalized software costs	(13,647)	(6,371)
Additions to equipment and improvements	(7,606)	(8,242)
Proceeds from sales and maturities of marketable securities	0	9,291
Payments for acquisitions, net of cash acquired	(58,892)	0
HealthFusion working capital adjustment payment	0	(282)
Net cash used in investing activities	(80,145)	(5,604)
Cash flows from financing activities:
Proceeds from line of credit	50,000	0
Repayments on line of credit	(26,000)	(80,000)
Payment of contingent consideration related to acquisitions	(18,817)	0
Proceeds from issuance of shares under employee plans	4,640	999
Payments for taxes related to net share settlement of equity awards	(767)	0
Net cash provided by (used in) financing activities	9,056	(79,001)
Net decrease in cash and cash equivalents	(14,314)	(3,182)
Cash and cash equivalents at beginning of period	37,673	27,176
Cash and cash equivalents at end of period	23,359	23,994
Cash paid for income taxes	5,786	4,455
Cash refunds from income taxes	1,084	19,932
Cash paid for interest	1,388	1,670
Common stock issued for Mirth share-based contingent consideration	0	9,273
Tenant improvement allowance from landlord	1,442	3,094
Unpaid additions to equipment and improvements	138	80
HealthFusion working capital adjustment payment	0	(282)
Entrada [Member]
Cash flows from investing activities:
HealthFusion working capital adjustment payment	(33,856)	0
Cash flows from financing activities:
Fair value of net assets acquired	35,293	0
HealthFusion working capital adjustment payment	(33,856)	0
Liabilities assumed	1,437	0
EagleDream Health [Member]
Cash flows from investing activities:
HealthFusion working capital adjustment payment	(25,036)	0
Cash flows from financing activities:
Fair value of net assets acquired	27,895	0
HealthFusion working capital adjustment payment	(25,036)	0
Liabilities assumed	$ 2,859	$ 0

Summary of Significant Accounting Policies

9 Months Ended

Dec. 31, 2017

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

1. Summary of Significant Accounting Policies

Principles of Consolidation. The consolidated financial statements include the accounts of Quality Systems, Inc. and its wholly-owned subsidiaries (collectively, the “Company”). Each of the terms “we,” “us,” or “our” as used herein refers collectively to the Company, unless otherwise stated. All intercompany accounts and transactions have been eliminated.

Business Segments. We have determined that the Company operates in one segment as of June 30, 2017. We have made such determination by first identifying our Chief Executive Officer as our chief operating decision maker ("CODM") and considering the measures used by our CODM to allocate resources. Our CODM utilizes consolidated revenue and consolidated operating results to assess performance and make decisions about allocation of resources.

Previously, through the end of fiscal year 2017, we operated under two reportable segments, consisting of the Software and Related Solutions segment and the RCM and Related Services segment, which was consistent with the disaggregated financial information used and evaluated by our CODM to assess performance and make decisions about the allocation of resources. However, as part of our reorganization efforts that were substantially complete as of the end of fiscal year 2017, our internal organizational structure whereby certain functions that formerly existed within each individual operating segment has continued to evolve. Our former Chief Operating Officer was previously responsible for leading the operations of our former RCM and Related Services business while our former Chief Client Officer led our client success organization, consisting of the Software and Related Solutions business and other functions, such as sales and marketing. Upon the resignation of our former Chief Operating Officer in April 2017 and concurrent appointment of our former Chief Client Officer as Chief Operating Officer, our entire portfolio of software and services were aligned under our new Chief Operating Officer in an effort to provide our clients with an even more simplified experience and more effectively deliver a consolidated financial solution to our clients, rather than components of a solution. As a result of such changes in our internal organization structure, the CODM now operates the Company as a single functional organization. The CODM measures company-wide performance by reviewing consolidated revenue and operating results and evaluates the impact of allocating resources to overall profit and margins on a consolidated basis.

Basis of Presentation. The accompanying unaudited consolidated financial statements as of December 31, 2017 and for the three and nine months ended December 31, 2017 have been prepared in accordance with the requirements of Quarterly Report on Form 10-Q and Article 10 of the Securities and Exchange Commission Regulation S-X and therefore do not include all information and notes which would be presented were such consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). These consolidated financial statements should be read in conjunction with the audited consolidated financial statements presented in our Annual Report on Form 10-K for the fiscal year ended March 31, 2017. In the opinion of management, the accompanying consolidated financial statements reflect all adjustments which are necessary for a fair statement of the results of operations and cash flows for the periods presented. The results of operations for such interim periods are not necessarily indicative of results of operations to be expected for the full year.

References to amounts in the consolidated financial statement sections are in thousands, except shares and per share data, unless otherwise specified.

Significant Accounting Policies. There have been no material changes to our significant accounting policies from those disclosed in our Annual Report on Form 10-K for the fiscal year ended March 31, 2017.

Share-Based Compensation. The following table summarizes total share-based compensation expense included in the consolidated statements of comprehensive income for the three and nine months ended December 31, 2017 and 2016:

	Three Months Ended December 31,						Nine Months Ended December 31,
	2017			2016			2017			2016
Costs and expenses:
Cost of revenue	$	259		$	144		$	686		$	459
Research and development costs		557			273			1,431			690
Selling, general and administrative		2,637			1,584			6,468			4,028
Total share-based compensation		3,453			2,001			8,585			5,177
Income tax benefit		(1,080	)		(718	)		(2,940	)		(1,825	)
Decrease in net income	$	2,373		$	1,283		$	5,645		$	3,352

Recent Accounting Standards. Recent accounting pronouncements requiring implementation in current or future periods are discussed below or in the notes, where applicable.

In May 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2017-09, Compensation–Stock Compensation (Topic 718): Scope of Modification Accounting ("ASU 2017-09"). ASU 2017-09 clarifies the changes to terms or conditions of a share-based payment award that require an entity to apply modification accounting. ASU 2017-09 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Early application is permitted and prospective application is required. ASU 2017-09 is effective for us in the first quarter of fiscal 2019, and we currently do not expect the adoption of this new standard to have a material impact on our consolidated financial statements.

In January 2017, the FASB issued ASU 2017-04, Intangibles–Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (“ASU 2017-04”). ASU 2017-04 removes the requirement to compare the implied fair value of goodwill with its carrying amount as part of Step two of the goodwill impairment test. Instead, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value. ASU 2017-04 is effective prospectively for annual and interim periods beginning after December 15, 2019, and early adoption is permitted on goodwill impairment tests performed on testing dates after January 1, 2017. ASU 2017-04 is effective for us in the fourth quarter of fiscal 2020, and we currently do not expect the adoption of this new standard to have a material impact on our consolidated financial statements.

In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business (“ASU 2017-01”). ASU 2017-01 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. ASU 2017-01 is effective for annual periods beginning after December 15, 2017, including interim periods within those periods. Early adoption is permitted in two scenarios as identified in the new standard. ASU 2017-01 is effective for us in the first quarter of fiscal 2019, and we currently do not expect the adoption of this new standard to have a material impact on our consolidated financial statements.

In November 2016, the FASB issued Accounting Standards Update ("ASU") 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (“ASU 2016-18”). ASU 2016-18 provides guidance on the classification of restricted cash and cash equivalents in the statement of cash flows. Although it does not provide a definition of restricted cash or restricted cash equivalents, it states that amounts generally described as restricted cash and 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. ASU 2016-18 is effective for interim and annual reporting periods beginning after December 15, 2017. Early adoption is permitted, including adoption in an interim period. ASU 2016-18 is effective for us in the first quarter of fiscal 2019, and we do not expect the adoption of this new standard to have a material impact on our consolidated financial statements.

In October 2016, the FASB issued ASU 2016-16, Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory ("ASU 2016-16"). ASU 2016-16 requires the recognition of current and deferred income taxes for intra-entity asset transfers when the transaction occurs. ASU 2016-16 is effective for interim and annual reporting periods beginning after December 15, 2017. Early adoption is permitted. ASU 2016-16 is effective for us in the first quarter of fiscal 2019, and we are currently in the process of evaluating the potential impact of adoption of this updated authoritative guidance on our consolidated financial statements.

In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments. ASU 2016-15 is intended to add and clarify guidance on the classification of certain cash receipts and cash payments in the statement of cash flows to eliminate diversity in practice related to how such cash receipts and cash payments are presented and classified in the statement of cash flows. ASU 2016-15 is effective for interim and annual reporting periods beginning after December 15, 2017. Early adoption is permitted, including adoption in an interim period. ASU 2016-15 is effective for us in the first quarter of fiscal 2019, and we do not expect the adoption of this new standard to have a material impact on our consolidated financial statements.

In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting ("ASU 2016-09"). ASU 2016-09 simplifies the accounting for and reporting on 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. ASU 2016-09 is effective for interim and annual reporting periods beginning after December 15, 2016, with early adoption permitted. The amendments in this update are to be applied differently upon adoption with certain amendments being applied prospectively, retrospectively and under a modified retrospective transition method. We adopted ASU 2016-09 in the first quarter of fiscal 2018. As permitted by ASU 2016-09, we have made an accounting policy election to account for forfeitures as they occur, which was adopted on a modified retrospective basis and resulted in a cumulative-effect adjustment of $0.1 million to retained earnings and additional paid-in capital as of April 1, 2017. ASU 2016-09 also eliminates additional paid-in capital pools and requires excess tax benefits and tax deficiencies to be recorded in the income statement when the awards vest or are settled, which was adopted on a prospective basis. The requirements to recognize previously unrecognized excess tax benefits on a modified retrospective basis did not have an impact on our consolidated financial statements. Upon adoption of ASU 2016-09, excess tax benefits and tax deficiencies are recognized in the income statement, and the tax effects of exercised or vested awards are treated as discrete items in the period they occur. The provisions of ASU 2016-09 could have an impact to our future income tax expense, including increased volatility in our effective tax rate on a quarter by quarter basis due to a number of factors, including fluctuations in the stock price and the timing of stock option exercises and vesting of restricted share awards. Additionally, ASU 2016-09 addresses presentation of excess tax benefits and deficiencies and employee taxes paid related to shares withheld for tax withholdings purposes on the statement of cash flows, including a requirement to present excess tax benefits and deficiencies as an operating activity in the same manner as other cash flows related to income taxes on the statement of cash flows, which will be adopted on a prospective basis, and presentation of employee taxes paid related to shares withheld for tax withholdings purposes as a financing activity, which is consistent with our current presentation and thus did not impact our consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (“ASU 2016-02”), which is intended to improve financial reporting about leasing transactions. The new guidance will require lessees to recognize on their balance sheets the assets and liabilities for the rights and obligations created by leases and to disclose key information about the leasing arrangements. ASU 2016-02 is effective for interim and annual periods beginning after December 15, 2018, with early adoption permitted. ASU 2016-02 is effective for us in the first quarter of fiscal 2020. We are currently in the process of evaluating the potential impact of adoption of this updated authoritative guidance on our consolidated financial statements.

In May 2014, the FASB, along with the International Accounting Standards Board, issued ASU 2014-09, Revenue from Contracts with Customers ("ASU 2014-09"), which supersedes the revenue recognition requirements in ASC 605, Revenue Recognition. ASU 2014-09 provides enhancements to the quality and consistency of how revenue is reported while also improving comparability in the financial statements of companies reporting using International Financial Reporting Standards and GAAP. The core principle of this updated guidance is that an entity should recognize revenue to depict 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. The new standard also requires additional disclosure about revenue and provides improved guidance for multiple element arrangements. In July 2015 decision, the FASB issued ASU 2015-14, Deferral of Effective Date ("ASU 2015-14") to delay the effective date by one year. In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606) –Principal versus Agent Consideration ("ASU 2016-08"). In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606) - Identifying Performance Obligations and Licensing ("ASU 2016-10”). In May 2016, the FASB issued ASU 2016-11, Revenue from Contracts with Customers (Topic 606) and Derivatives and Hedging (Topic 815) – Rescission of SEC Guidance Because of ASU 2014-09 and 2014-16 ("ASU 2016-11") and ASU 2016-12, Revenue from Contracts with Customers (Topic 606) –Narrow Scope Improvements and Practical Expedients ("ASU 2016-12"). The new ASUs do not change the core principle of the guidance in Topic 606 (as amended by ASU 2014-09), but rather help to provide further interpretive clarifications on the new guidance in ASU 2014-09. ASU 2014-09, as amended by ASU 2015-14, is effective for us in the first quarter of fiscal 2019. Companies are permitted to adopt this new guidance following either a full retrospective or modified retrospective approach.

We have completed our assessment of the potential impacts to our business processes, systems, and internal controls that could result from the implementation of the new revenue guidance. Based on our assessment, we currently believe that the impact on our consolidated financial statements could be material. We expect that revenue related to hardware, EDI, maintenance, and certain subscriptions would remain substantially unchanged, and we are the process of evaluating the impact of the new revenue guidance on our other revenue streams. Due to the complexity of our revenue recognition, a significant amount of work remains as we continue to evaluate all potential impacts of the new revenue guidance, and develop and implement the necessary changes to our current accounting systems, processes, and internal controls. Accordingly, our preliminary assessments are subject to change. We expect that the new revenue guidance will result in additional complexity to our revenue recognition, including the use of an increased amount of significant judgments and estimates, particularly as it relates to our RCM services revenue, as compared to our current revenue recognition. We preliminarily expect our RCM services revenue to decrease subsequent to the adoption of the new revenue guidance as a larger portion of our RCM fees is expected to be allocated to software and subscriptions revenue.

Additionally, certain incremental costs incurred to obtain contracts with customers, such as sales commissions, are within the scope of the new revenue guidance and are required to be capitalized and amortized to expense over the remaining performance periods of the contracts. Currently, our sales commission are capitalized and amortized to expense over the related period of revenue recognition. Although the amortization period of capitalized sales commissions may differ upon adoption of the new revenue guidance, we do not expect the adoption of this new revenue standard to have a material impact on our consolidated financial statements with respect to the capitalization and amortization of sales commissions.

We currently expect to implement the new revenue guidance when it becomes effective for us in the first quarter of fiscal 2019 utilizing the modified retrospective transition method. Under this transition method, prior period amounts will not be adjusted and the cumulative effect from prior periods of applying the new revenue guidance will be recognized in our consolidated balance sheets as of the date of adoption, including an adjustment to retained earnings.

We do not believe that any other recently issued, but not yet effective accounting standards, if adopted, would have a material impact on our consolidated financial statements.

Fair Value Measurements

9 Months Ended

Dec. 31, 2017

Fair Value Disclosures [Abstract]

Fair Value Measurements

2. Fair Value Measurements

The following tables set forth by level within the fair value hierarchy our financial assets and liabilities that were accounted for at fair value on a recurring basis at December 31, 2017 and March 31, 2017:

	Balance At		Quoted Prices in Active Markets for		Significant Other		Unobservable
	December 31, 2017		Identical Assets (Level 1)		Observable Inputs (Level 2)		Inputs (Level 3)
ASSETS
Cash and cash equivalents ⁽¹⁾	$	23,359	$	23,359	$	—	$	—
Restricted cash and cash equivalents		3,393		3,393		—		—
	$	26,752	$	26,752	$	—	$	—

	Balance At		Quoted Prices in Active Markets for		Significant Other		Unobservable
	March 31, 2017		Identical Assets (Level 1)		Observable Inputs (Level 2)		Inputs (Level 3)
ASSETS
Cash and cash equivalents ⁽¹⁾	$	37,673	$	37,673	$	—	$	—
Restricted cash and cash equivalents		4,916		4,916		—		—
	$	42,589	$	42,589	$	—	$	—
LIABILITIES
Contingent consideration related to acquisitions ⁽²⁾	$	18,817	$	—	$	18,817	$	—
	$	18,817	$	—	$	18,817	$	—

⁽¹⁾	Cash equivalents consist primarily of money market funds.

⁽²⁾

The contingent consideration liability as of March 31, 2017 relates to the acquisition of HealthFusion, which was settled during the quarter ended June 30, 2017. The measurement period of the contingent consideration liability ended on December 31, 2016, and thus the actual revenue achievement rate was utilized to compute the ending contingent consideration liability as of March 31, 2017. Accordingly, the contingent consideration liability was reflected under a Level 2 valuation hierarchy because the fair value was determined based on other significant observable inputs.

We believe that the fair value of other financial assets and liabilities, including accounts receivable, accounts payable, and line of credit, approximate their respective carrying values due to their nominal credit risk.

Non-Recurring Fair Value Measurements

We have certain assets, including goodwill and other intangible assets, which are measured at fair value on a non-recurring basis and are adjusted to fair value only if an impairment charge is recognized. The categorization of the framework used to measure fair value of the assets is considered to be within the Level 3 valuation hierarchy due to the subjective nature of the unobservable inputs used. During the three and nine months ended December 31, 2017, no adjustments were recorded.

- 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

Business Combinations

9 Months Ended

Dec. 31, 2017

Business Combinations [Abstract]

Business Combinations

3. Business Combinations

Entrada Acquisition

On April 14, 2017, we completed our acquisition of Entrada, Inc. ("Entrada") pursuant to the terms of the Agreement and Plan of Merger, dated April 11, 2017 (the "Agreement"). Based in Nashville, TN, Entrada is a leading provider of cloud-based solutions that are reshaping the way care is delivered by leveraging the power of mobile whenever and wherever care happens. Entrada’s best-in-class mobile application integrates with multiple clinical platforms and all major electronic health record systems. Entrada enables organizations to maximize their existing technology investments while simultaneously enhancing physician and staff productivity. The acquisition of Entrada and its cloud-based, mobile application is part of our commitment to deliver systematic solutions that meet its clients' transforming work requirements to become increasingly nimble and mobile.

The preliminary purchase price totaled $33,958, which included preliminary working capital and other customary adjustments. The acquisition was primarily funded by a draw against our revolving credit agreement (see Note 7).

We accounted for the Entrada acquisition as a purchase business combination using the acquisition method of accounting. The preliminary purchase price was allocated to the tangible and intangible assets acquired and liabilities assumed based on their preliminary estimated fair values as of the acquisition date. The preliminary fair values of acquired assets and liabilities assumed represent management’s estimate of fair value and are subject to change if additional information, such as changes to deferred taxes and/or working capital, becomes available. We expect to finalize the purchase price allocation as soon as practicable within the measurement period, but not later than one year following the acquisition date.

The preliminary estimated fair value of the acquired tangible and intangible assets and liabilities assumed were determined using multiple valuation approaches depending on the type of tangible or intangible asset acquired, including but not limited to the income approach, the excess earnings method and the relief from royalty method approach.

In connection with the Entrada acquisition, we recorded $15,400 of intangible assets related to customer relationships, trade names and software technology. We are amortizing the Entrada customer relationships over 10 years and trade names and software technology over 5 years. The weighted average amortization period for the total amount of intangible assets acquired is 6.1 years.

The preliminary amount of goodwill represents the excess of the preliminary purchase price over the preliminary net identifiable assets acquired and liabilities assumed. Goodwill primarily represents, among other factors, the value of synergies expected to be realized and the assemblage of all assets that enable us to create new client relationships, neither of which qualify as separate amortizable intangible assets. Goodwill arising from the acquisition of Entrada is not deductible for tax purposes and is allocated to our single reportable segment.

The total preliminary purchase price for the Entrada acquisition is summarized as follows:

Initial purchase price	$	34,000
Preliminary working capital and other adjustments		(42	)
Total preliminary purchase price	$	33,958

	April 14, 2017
Preliminary fair value of the net tangible assets acquired and liabilities assumed:
Acquired cash and cash equivalents	$	102
Accounts receivable, net		1,835
Prepaid expense and other current assets		145
Equipment and improvements, net		134
Capitalized software costs, net		364
Deferred income taxes, net		1,041
Accounts payable		(639	)
Accrued compensation and related benefits		(120	)
Deferred revenues		(234	)
Other liabilities		(444	)
Total preliminary net tangible assets acquired and liabilities assumed		2,184
Preliminary fair value of identifiable intangible assets acquired:
Goodwill		16,374
Software technology		10,500
Customer relationships		3,300
Trade name		1,600
Total preliminary identifiable intangible assets acquired		31,774
Total preliminary purchase price	$	33,958

The pro forma effects of the Entrada acquisition would not have been material to the Company's results of operations and are therefore not presented.

EagleDream Health Acquisition

On August 16, 2017, we completed the acquisition of EagleDream Health, Inc. ("EagleDream") pursuant to the Agreement and Plan of Merger (the “Merger Agreement"), dated July 31, 2017. Headquartered in Rochester, NY, EagleDream is a cloud-based analytics company that drives meaningful insight across clinical, financial and administrative data to optimize practice performance.

The preliminary purchase price totaled $25,609, which included preliminary working capital and other customary adjustments. The acquisition was partially funded by a draw against our revolving credit agreement (see Note 7).

We accounted for the EagleDream acquisition as a purchase business combination using the acquisition method of accounting. The preliminary purchase price was allocated to the tangible and intangible assets acquired and liabilities assumed based on their preliminary estimated fair values as of the acquisition date. The preliminary fair values of acquired assets and liabilities assumed represent management’s estimate of fair value and are subject to change if additional information, such as changes to deferred taxes and/or working capital, becomes available. We expect to finalize the purchase price allocation as soon as practicable within the measurement period, but not later than one year following the acquisition date.

In connection with the EagleDream acquisition, we recorded $13,400 of intangible assets related to customer relationships and software technology. We are amortizing the EagleDream customer relationships over 8 years and software technology over 5 years. The weighted average amortization period for the total amount of intangible assets acquired is 5.1 years.

The preliminary amount of goodwill represents the excess of the preliminary purchase price over the preliminary net identifiable assets acquired and liabilities assumed. Goodwill primarily represents, among other factors, the value of synergies expected to be realized and the assemblage of all assets that enable us to create new client relationships, neither of which qualify as separate amortizable intangible assets. Goodwill arising from the acquisition of EagleDream is not deductible for tax purposes and is allocated to our single reportable segment.

The total preliminary purchase price for the EagleDream acquisition is summarized as follows:

Initial purchase price	$	26,000
Preliminary working capital and other adjustments		(391	)
Total preliminary purchase price	$	25,609

	August 16, 2017
Preliminary fair value of the net tangible assets acquired and liabilities assumed:
Acquired cash and cash equivalents	$	573
Accounts receivable, net		217
Prepaid expense and other current assets		20
Accounts payable		(115	)
Accrued compensation and related benefits		(271	)
Deferred revenues		(394	)
Deferred income taxes, net		(1,957	)
Other liabilities		(122	)
Total preliminary net tangible assets acquired and liabilities assumed		(2,049	)
Preliminary fair value of identifiable intangible assets acquired:
Goodwill		14,258
Software technology		12,800
Customer relationships		600
Total preliminary identifiable intangible assets acquired		27,658
Total preliminary purchase price	$	25,609

The pro forma effects of the EagleDream acquisition would not have been material to the Company's results of operations and are therefore not presented.

Goodwill	9 Months Ended
Goodwill	Dec. 31, 2017
Goodwill And Intangible Assets Disclosure [Abstract]
Goodwill	4. Goodwill We test goodwill for impairment annually during our first fiscal quarter, referred to as the annual test date. We will also test for impairment between annual test dates if an event occurs or circumstances change that would indicate the carrying amount may be impaired. We have not identified any events or circumstances as of December 31, 2017 that would require an interim goodwill impairment test. We do not amortize goodwill as it has been determined to have an indefinite useful life. The carrying amount of goodwill as of December 31, 2017 was $216,530, which reflects the acquisitions of Entrada and EagleDream (see Note 3). The carrying amount of goodwill as of March 31, 2017 was $185,898.

Intangible Assets

9 Months Ended

Dec. 31, 2017

Goodwill And Intangible Assets Disclosure [Abstract]

Intangible Assets

5. Intangible Assets

Our definite-lived intangible assets, other than capitalized software development costs, are summarized as follows, and reflects the acquisitions of Entrada and EagleDream (see Note 3):

	December 31, 2017
	Customer			Trade Name			Software
	Relationships			and Contracts			Technology			Total
Gross carrying amount	$	54,450		$	7,080		$	91,110		$	152,640
Accumulated amortization		(33,955	)		(3,118	)		(34,904	)		(71,977	)
Net intangible assets	$	20,495		$	3,962		$	56,206		$	80,663

	March 31, 2017
	Customer			Trade Name			Software
	Relationships			and Contracts			Technology			Total
Gross carrying amount	$	50,550		$	5,480		$	67,810		$	123,840
Accumulated amortization		(28,972	)		(2,088	)		(23,567	)		(54,627	)
Net intangible assets	$	21,578		$	3,392		$	44,243		$	69,213

Amortization expense related to customer relationships and trade name and contracts recorded as operating expenses in the consolidated statements of comprehensive income was $1,956 and $2,568 for the three months ended December 31, 2017 and 2016, respectively. Amortization expense related to software technology recorded as cost of revenue was $4,127 and $3,007 for the three months ended December 31, 2017 and 2016, respectively.

Amortization expense related to customer relationships and trade name and contracts was $6,015 and $7,889 for the nine months ended December 31, 2017 and 2016, respectively. Amortization expense related to software technology was $11,335 and $9,064 for the nine months ended December 31, 2017 and 2016, respectively.

The following table summarizes the remaining estimated amortization of definite-lived intangible assets as of December 31, 2017:

	Amortization Expense Recorded As:
	Operating Expense		Cost of Revenue		Total
For the year ended March 31,
2018 (remaining three months)	$	1,922	$	4,128	$	6,050
2019		5,577		16,511		22,088
2020		4,580		16,511		21,091
2021		3,731		12,628		16,359
2022		2,593		4,840		7,433
2023 and beyond		6,054		1,588		7,642
Total	$	24,457	$	56,206	$	80,663

Capitalized Software Costs

9 Months Ended

Dec. 31, 2017

Research And Development [Abstract]

Capitalized Software Costs

6. Capitalized Software Costs

Our capitalized software costs are summarized as follows:

	December 31, 2017			March 31, 2017
Gross carrying amount	$	115,202		$	104,948
Accumulated amortization		(91,993	)		(91,341	)
Net capitalized software costs	$	23,209		$	13,607

Amortization expense related to capitalized software costs was $1,838 and $1,807 for the three months ended December 31, 2017 and 2016, respectively, and is recorded as cost of revenue in the consolidated statements of comprehensive income.

Amortization expense related to capitalized software costs was $4,409 and $6,626 for the nine months ended December 31, 2017 and 2016, respectively.

The following table presents the remaining estimated amortization of capitalized software costs as of December 31, 2017. The estimated amortization is comprised of (i) amortization of released products and (ii) the expected amortization for products that are not yet available for sale based on their estimated economic lives and projected general release dates.

For the year ended March 31,
2018 (remaining three months)	$	2,500
2019		10,500
2020		6,100
2021		3,500
2022		609
Total	$	23,209

Line of Credit	9 Months Ended
Line of Credit	Dec. 31, 2017
Debt Disclosure [Abstract]
Line of Credit	7. Line of Credit On January 4, 2016, we entered into a $250,000 revolving credit agreement (“Credit Agreement”) with JP Morgan Chase Bank, N.A., as administrative agent, U.S. Bank National Association, as syndication agent, and certain other lenders. The Credit Agreement is secured by substantially all of our existing and future property and material domestic subsidiaries. The Credit Agreement provides a subfacility of up to $10,000 for letters of credit and a subfacility of up to $10,000 for swing-line loans. The Credit Agreement matures on January 4, 2021 and the full balance of the revolving loans and all other obligations under the agreement must be paid at that time. The revolving loans under the Credit Agreement will be available for letters of credit, working capital and general corporate purposes. We were in compliance with all covenants under the Credit Agreement as of December 31, 2017. As of December 31, 2017, we had $39,000 in outstanding loans and $211,000 of unused credit under the Credit Agreement. As of March 31, 2017, we had $15,000 in outstanding loans under the Credit Agreement. Interest expense related to the Credit Agreement was $463 and $359 for the three months ended December 31, 2017 and 2016, respectively. Amortization of deferred debt issuance costs was $269 for both the three months ended December 31, 2017 and 2016. Interest expense related to the Credit Agreement was $1,390 and $1,631 for the nine months ended December 31, 2017 and 2016, respectively. Amortization of deferred debt issuance costs was $807 for both the nine months ended December 31, 2017 and 2016, respectively.

Composition of Certain Financial Statement Captions

9 Months Ended

Dec. 31, 2017

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Composition of Certain Financial Statement Captions

8. Composition of Certain Financial Statement Captions

Accounts receivable may include amounts invoiced for undelivered products and services at each period end. Undelivered products and services are included as a component of the deferred revenue balance on the accompanying consolidated balance sheets.

	December 31, 2017			March 31, 2017
Accounts receivable, gross	$	88,437		$	93,377
Sales return reserve		(5,580	)		(7,213	)
Allowance for doubtful accounts		(3,441	)		(2,757	)
Accounts receivable, net	$	79,416		$	83,407

Inventory is comprised of computer systems and components.

Prepaid expenses and other current assets are summarized as follows:

	December 31, 2017		March 31, 2017
Prepaid expenses	$	16,409	$	14,884
Other current assets		1,535		3,085
Prepaid expenses and other current assets	$	17,944	$	17,969

Equipment and improvements are summarized as follows:

	December 31, 2017			March 31, 2017
Computer equipment	$	26,886		$	22,014
Internal-use software		14,359			13,053
Furniture and fixtures		11,448			10,472
Leasehold improvements		16,231			16,360
Equipment and improvements, gross		68,924			61,899
Accumulated depreciation and amortization		(41,787	)		(34,473	)
Equipment and improvements, net	$	27,137		$	27,426

The current portion of deferred revenues are summarized as follows:

	December 31, 2017		March 31, 2017
Professional services	$	21,887	$	21,889
Software license, hardware and other		12,251		12,680
Support and maintenance		9,436		9,691
Software related subscription services		9,269		8,123
Deferred revenue	$	52,843	$	52,383

Accrued compensation and related benefits are summarized as follows:

	December 31, 2017		March 31, 2017
Payroll, bonus and commission	$	13,198	$	15,836
Vacation		8,700		8,677
Accrued compensation and related benefits	$	21,898	$	24,513

Other current and noncurrent liabilities are summarized as follows:

	December 31, 2017		March 31, 2017
Customer credit balances and deposits	$	4,406	$	4,124
Care services liabilities		3,393		4,957
Accrued self insurance expense		2,880		1,697
Accrued consulting and outside services		2,384		2,496
Deferred rent and lease obligations		2,228		2,427
Accrued EDI expense		2,025		2,490
Accrued royalties		1,891		2,033
Accrued outsourcing costs		1,853		1,588
Accrued legal expense		1,560		853
Accrued hosting costs		973		401
Employee benefit plan withholdings		655		739
Sales tax payable		601		448
Contingent consideration and other liabilities related to acquisitions		—		18,817
Other accrued expenses		5,304		3,705
Other current liabilities	$	30,153	$	46,775

Deferred rent and lease obligations	$	11,116	$	11,402
Uncertain tax positions		4,890		4,762
Other liabilities		348		297
Other noncurrent liabilities	$	16,354	$	16,461

Income Taxes	9 Months Ended
Income Taxes	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Income Taxes	9. Income Taxes The provision for income taxes in the three months ended December 31, 2017 and 2016 was $1,487 and $2,342, respectively. The effective tax rates were 49.1% and 18.3% for the three months ended December 31, 2017 and 2016, respectively. The provision for income taxes for the nine months ended December 31, 2017 and 2016 was $6,134 and $3,950, respectively. The effective tax rates were 31.3% and 22.2% for the nine months ended December 31, 2017 and 2016, respectively. The increase in the effective tax rate for the three and nine months ended December 31, 2017 compared to the prior year periods was primarily due to a one-time revaluation of deferred and foreign transition taxes, which was a result of new tax reform legislation enacted on December 22, 2017, as described further below. This increase in the effective tax rate was offset by a favorable benefit due to an increase in the research and development credit claimed on our recently filed tax return. The deferred tax assets and liabilities are presented net in the accompanying consolidated balance sheets as noncurrent. We expect to receive the full benefit of the deferred tax assets recorded, with the exception of certain state credits, state net operating loss carryforwards, and foreign accumulated minimum tax credits, for which we have recorded a valuation allowance. Uncertain tax positions We had liabilities of $4,890 and $4,762 for unrecognized tax benefits related to various federal, state and local income tax matters as of December 31, 2017 and March 31, 2017, respectively. If recognized, this amount would reduce our effective tax rate. We are no longer subject to United States federal income tax examinations for tax years before fiscal year ended 2014. With a few exceptions, we are no longer subject to state or local income tax examinations for tax years before fiscal year ended 2013. We do not anticipate the total unrecognized tax benefits to significantly change due to the settlement of audits or the expiration of statute of limitations within the next twelve months. United States Tax Reform On December 22, 2017, the President of the United States signed and enacted into law H.R. 1 (the “Tax Reform”). This new tax legislation, effective for tax years beginning on or after January 1, 2018, except for certain provisions, resulted in significant changes to existing United States tax law, including various provisions that will impact our Company. Below is a summary of the provisions of the Tax Reform that we believe will be most impactful to our Company. We are subject to the provisions of FASB Accounting Standards Codification 740-10, Income Taxes, which requires that the effect on deferred tax assets and liabilities of a change in tax rates be recognized in the period the tax rate change was enacted. The Tax Reform reduces the federal corporate tax rate from 35% to 21% effective January 1, 2018, and thus we have revised our estimated annual effective tax rate to reflect the change in the federal statutory rate by using a blended rate of 31.5% for the annual period ended March 31, 2018. As a result of the enacted reduction in the federal corporate income tax rate, we recorded a one-time, non-cash increase to income tax expense for the three and nine months ended December 31, 2017 related to the remeasurement of certain deferred tax assets and liabilities. The resulting $3,095 decrease in net deferred tax assets was reasonably estimated and based on the tax rates at which they are expected to reverse in the future. We are currently in the process of analyzing certain aspects of the Tax Reform and continue to refine our calculations, which include, but are not limited to, computing the full year remeasurement of net deferred tax assets. The Tax Reform also required a one-time transition tax based on total post-1986 foreign cumulative earnings and profits previously deferred from United States federal taxation, which was reasonably estimated at December 31, 2017 and recorded as a one-time income tax expense of $1,354 in the current period. This liability is expected to be paid with our annual tax returns for the fiscal year ended March 31, 2018. We will continue to analyze the calculation of cumulative foreign earnings and finalize the amounts held in cash or other specified assets. We have recorded the provisional impacts of the Tax Reform at December 31, 2017 based on our most reasonable estimates, as noted above. The Tax Reform legislation includes various other provisions with effective dates for the Company beginning April 1, 2018 and beyond. For other changes that impact business related income, exclusions, deductions and credits with effective dates for our fiscal year beginning April 1, 2018, we will continue to account for those items based on our existing accounting under ASC 740, Income Taxes, and the provisions of the tax laws that were in effect immediately prior to the enactment of the Tax Reform. We will continue to analyze the provisions of the Tax Reform to fully assess the impact on our consolidated financial statements and expect to provide additional details in our Annual Report on Form 10-K for the fiscal year ended March 31, 2018.

Earnings Per Share

9 Months Ended

Dec. 31, 2017

Earnings Per Share [Abstract]

Earnings Per Share

10. Earnings per Share

The dual presentation of “basic” and “diluted” earnings per share is provided below. Share amounts below are in thousands.

	Three Months Ended December 31,				Nine Months Ended December 31,
	2017		2016		2017		2016
Earnings per share — Basic:
Net income	$	1,541	$	10,486	$	13,467	$	13,826
Weighted-average shares outstanding — Basic		63,706		62,093		63,287		61,645
Net income per common share — Basic	$	0.02	$	0.17	$	0.21	$	0.22

Earnings per share — Diluted:
Net income	$	1,541	$	10,486	$	13,467	$	13,826
Weighted-average shares outstanding		63,706		62,093		63,287		61,645
Effect of potentially dilutive securities		2		-		9		255
Weighted-average shares outstanding — Diluted		63,708		62,093		63,296		61,900
Net income per common share — Diluted	$	0.02	$	0.17	$	0.21	$	0.22

The computation of diluted net income per share does not include 3,228 and 2,785 options to acquire shares of common stock for the three and nine months ended December 31, 2017, respectively, because their inclusion would have an anti-dilutive effect on net income per share.

The computation of diluted net income per share does not include 3,054 and 3,015 options to acquire shares of common stock for the three and nine months ended December 31, 2016, respectively, because their inclusion would have an anti-dilutive effect on net income per share.

Share-Based Awards

9 Months Ended

Dec. 31, 2017

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Share-Based Awards

11. Share-Based Awards

Employee Stock Option and Incentive Plans

In October 2005, our shareholders approved a stock option and incentive plan (the “2005 Plan”) under which 4,800,000 shares of common stock were reserved for the issuance of awards, including incentive stock options and non-qualified stock options, stock appreciation rights, restricted stock, unrestricted stock, restricted stock units, performance shares, performance units (including performance options) and other share-based awards. The 2005 Plan provides that our employees and directors may, at the discretion of the Board of Directors ("Board") or a duly designated compensation committee, be granted certain share-based awards. In the case of option awards granted under the 2005 Plan, the exercise price of each option is determined based on the date of grant and expire no later than 10 years from the date of grant. Awards granted pursuant to the 2005 Plan are subject to the vesting schedule or performance metrics set forth in the agreements pursuant to which they are granted. Upon a change of control of our Company, as such term is defined in the 2005 Plan, awards under the 2005 Plan will fully vest under certain circumstances. The 2005 Plan expired on May 25, 2015. As of December 31, 2017, there were 689,260 outstanding options under the 2005 Plan.

In August 2015, our shareholders approved a stock option and incentive plan (the “2015 Plan”) under which 11,500,000 shares of common stock were reserved for the issuance of awards, including incentive stock options and non-qualified stock options, stock appreciation rights, restricted stock awards and restricted stock unit awards, performance stock awards and other share-based awards. In August 2017, our shareholders approved an amendment to our 2015 Equity Incentive Plan, (the “Amended 2015 Plan”), to, among other items, increase the number of shares of common stock reserved for issuance thereunder by 6,000,000. The Amended 2015 Plan provides that our employees and directors may, at the discretion of the Board of Directors or a duly designated compensation committee, be granted certain share-based awards. In the case of option awards granted under the Amended 2015 Plan, the exercise price of each option is determined based on the date of grant and expire no later than 10 years from the date of grant. Awards granted pursuant to the Amended 2015 Plan are subject to the vesting schedule or performance metrics set forth in the agreements pursuant to which they are granted. Upon a change of control of our Company, as such term is defined in the Amended 2015 Plan, awards under the Amended 2015 Plan will fully vest under certain circumstances. As of December 31, 2017, there were 3,134,375 outstanding options, 1,601,580 outstanding shares of restricted stock awards, 86,187 outstanding shares of performance stock awards, and 9,269,858 shares available for future grant under the Amended 2015 Plan.

The following table summarizes the stock option transactions during the nine months ended December 31, 2017:

Weighted-

Average

Aggregate

Exercise

Remaining

Intrinsic

Number of

Price

Contractual

Value

per Share

Life (years)

(in thousands)

Outstanding, April 1, 2017

2,885,415

15.41

6.2

3,150

Granted

1,479,000

14.56