crnc-10q_20210630.htm
false Q3 --09-30 0001768267 0.125 true true true true 0.125 P6Y P4Y P1Y P4Y P2Y4M24D P1Y P3Y P1Y7M6D P50M15D P55M27D P50M3D P55M24D P1Y2M26D P1Y2M26D 0.35 0.34 0.56 0.53 0001768267 2020-10-01 2021-06-30 xbrli:shares 0001768267 2021-07-30 iso4217:USD 0001768267 us-gaap:LicenseMember 2021-04-01 2021-06-30 0001768267 us-gaap:LicenseMember 2020-04-01 2020-06-30 0001768267 us-gaap:LicenseMember 2020-10-01 2021-06-30 0001768267 us-gaap:LicenseMember 2019-10-01 2020-06-30 0001768267 crnc:ConnectedServicesMember 2021-04-01 2021-06-30 0001768267 crnc:ConnectedServicesMember 2020-04-01 2020-06-30 0001768267 crnc:ConnectedServicesMember 2020-10-01 2021-06-30 0001768267 crnc:ConnectedServicesMember 2019-10-01 2020-06-30 0001768267 crnc:ProfessionalServicesMember 2021-04-01 2021-06-30 0001768267 crnc:ProfessionalServicesMember 2020-04-01 2020-06-30 0001768267 crnc:ProfessionalServicesMember 2020-10-01 2021-06-30 0001768267 crnc:ProfessionalServicesMember 2019-10-01 2020-06-30 0001768267 2021-04-01 2021-06-30 0001768267 2020-04-01 2020-06-30 0001768267 2019-10-01 2020-06-30 iso4217:USD xbrli:shares 0001768267 2021-06-30 0001768267 2020-09-30 0001768267 us-gaap:CommonStockMember 2021-03-31 0001768267 us-gaap:AdditionalPaidInCapitalMember 2021-03-31 0001768267 us-gaap:RetainedEarningsMember 2021-03-31 0001768267 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-03-31 0001768267 2021-03-31 0001768267 us-gaap:RetainedEarningsMember 2021-04-01 2021-06-30 0001768267 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-04-01 2021-06-30 0001768267 us-gaap:CommonStockMember 2021-04-01 2021-06-30 0001768267 us-gaap:AdditionalPaidInCapitalMember 2021-04-01 2021-06-30 0001768267 us-gaap:CommonStockMember 2021-06-30 0001768267 us-gaap:AdditionalPaidInCapitalMember 2021-06-30 0001768267 us-gaap:RetainedEarningsMember 2021-06-30 0001768267 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-06-30 0001768267 us-gaap:CommonStockMember 2020-03-31 0001768267 us-gaap:AdditionalPaidInCapitalMember 2020-03-31 0001768267 us-gaap:RetainedEarningsMember 2020-03-31 0001768267 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-03-31 0001768267 2020-03-31 0001768267 us-gaap:RetainedEarningsMember 2020-04-01 2020-06-30 0001768267 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-04-01 2020-06-30 0001768267 us-gaap:CommonStockMember 2020-04-01 2020-06-30 0001768267 us-gaap:AdditionalPaidInCapitalMember 2020-04-01 2020-06-30 0001768267 us-gaap:CommonStockMember 2020-06-30 0001768267 us-gaap:AdditionalPaidInCapitalMember 2020-06-30 0001768267 us-gaap:RetainedEarningsMember 2020-06-30 0001768267 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-06-30 0001768267 2020-06-30 0001768267 us-gaap:CommonStockMember 2020-09-30 0001768267 us-gaap:AdditionalPaidInCapitalMember 2020-09-30 0001768267 us-gaap:RetainedEarningsMember 2020-09-30 0001768267 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-09-30 0001768267 us-gaap:RetainedEarningsMember 2020-10-01 2021-06-30 0001768267 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-10-01 2021-06-30 0001768267 us-gaap:CommonStockMember 2020-10-01 2021-06-30 0001768267 us-gaap:AdditionalPaidInCapitalMember 2020-10-01 2021-06-30 0001768267 crnc:NetParentInvestmentMember 2019-09-30 0001768267 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-09-30 0001768267 2019-09-30 0001768267 us-gaap:RetainedEarningsMember 2019-10-01 2020-06-30 0001768267 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-10-01 2020-06-30 0001768267 crnc:NetParentInvestmentMember 2019-10-01 2020-06-30 0001768267 us-gaap:AdditionalPaidInCapitalMember 2019-10-01 2020-06-30 0001768267 us-gaap:CommonStockMember 2019-10-01 2020-06-30 0001768267 crnc:NuanceCommunicationsIncorporationMember us-gaap:SpinoffMember 2019-10-01 2019-10-01 0001768267 crnc:NuanceCommunicationsIncorporationMember us-gaap:SpinoffMember 2020-10-01 2021-06-30 xbrli:pure 0001768267 us-gaap:MoneyMarketFundsMember us-gaap:FairValueInputsLevel1Member 2021-06-30 crnc:Customer 0001768267 us-gaap:CreditConcentrationRiskMember us-gaap:AccountsReceivableMember 2020-10-01 2021-06-30 0001768267 us-gaap:CreditConcentrationRiskMember us-gaap:AccountsReceivableMember 2019-10-01 2020-09-30 0001768267 us-gaap:CreditConcentrationRiskMember us-gaap:AccountsReceivableMember crnc:CustomerOneMember 2020-10-01 2021-06-30 0001768267 us-gaap:CreditConcentrationRiskMember us-gaap:AccountsReceivableMember crnc:CustomerTwoMember 2020-10-01 2021-06-30 0001768267 us-gaap:CreditConcentrationRiskMember us-gaap:AccountsReceivableMember crnc:CustomerThreeMember 2020-10-01 2021-06-30 0001768267 us-gaap:CreditConcentrationRiskMember us-gaap:AccountsReceivableMember crnc:CustomerOneMember 2019-10-01 2020-09-30 0001768267 us-gaap:CreditConcentrationRiskMember us-gaap:AccountsReceivableMember crnc:CustomerTwoMember 2019-10-01 2020-09-30 0001768267 us-gaap:AccountingStandardsUpdate201613Member 2021-06-30 0001768267 srt:MinimumMember 2020-10-01 2021-06-30 0001768267 srt:MaximumMember 2020-10-01 2021-06-30 0001768267 country:US 2021-04-01 2021-06-30 0001768267 country:US 2020-04-01 2020-06-30 0001768267 country:US 2020-10-01 2021-06-30 0001768267 country:US 2019-10-01 2020-06-30 0001768267 crnc:OtherAmericasMember 2021-04-01 2021-06-30 0001768267 crnc:OtherAmericasMember 2020-04-01 2020-06-30 0001768267 crnc:OtherAmericasMember 2020-10-01 2021-06-30 0001768267 crnc:OtherAmericasMember 2019-10-01 2020-06-30 0001768267 country:DE 2021-04-01 2021-06-30 0001768267 country:DE 2020-04-01 2020-06-30 0001768267 country:DE 2020-10-01 2021-06-30 0001768267 country:DE 2019-10-01 2020-06-30 0001768267 crnc:OtherEuropeMiddleEastAndAfricaMember 2021-04-01 2021-06-30 0001768267 crnc:OtherEuropeMiddleEastAndAfricaMember 2020-04-01 2020-06-30 0001768267 crnc:OtherEuropeMiddleEastAndAfricaMember 2020-10-01 2021-06-30 0001768267 crnc:OtherEuropeMiddleEastAndAfricaMember 2019-10-01 2020-06-30 0001768267 country:JP 2021-04-01 2021-06-30 0001768267 country:JP 2020-04-01 2020-06-30 0001768267 country:JP 2020-10-01 2021-06-30 0001768267 country:JP 2019-10-01 2020-06-30 0001768267 crnc:OtherAsiaPacificMember 2021-04-01 2021-06-30 0001768267 crnc:OtherAsiaPacificMember 2020-04-01 2020-06-30 0001768267 crnc:OtherAsiaPacificMember 2020-10-01 2021-06-30 0001768267 crnc:OtherAsiaPacificMember 2019-10-01 2020-06-30 0001768267 us-gaap:GeographicConcentrationRiskMember country:US srt:MinimumMember us-gaap:RevenueFromContractWithCustomerMember 2021-04-01 2021-06-30 0001768267 us-gaap:GeographicConcentrationRiskMember country:US srt:MinimumMember us-gaap:RevenueFromContractWithCustomerMember 2020-04-01 2020-06-30 0001768267 us-gaap:GeographicConcentrationRiskMember country:US srt:MinimumMember us-gaap:RevenueFromContractWithCustomerMember 2020-10-01 2021-06-30 0001768267 us-gaap:GeographicConcentrationRiskMember country:US srt:MinimumMember us-gaap:RevenueFromContractWithCustomerMember 2019-10-01 2020-06-30 0001768267 us-gaap:GeographicConcentrationRiskMember country:DE srt:MinimumMember us-gaap:RevenueFromContractWithCustomerMember 2021-04-01 2021-06-30 0001768267 us-gaap:GeographicConcentrationRiskMember country:DE srt:MinimumMember us-gaap:RevenueFromContractWithCustomerMember 2020-04-01 2020-06-30 0001768267 us-gaap:GeographicConcentrationRiskMember country:DE srt:MinimumMember us-gaap:RevenueFromContractWithCustomerMember 2020-10-01 2021-06-30 0001768267 us-gaap:GeographicConcentrationRiskMember country:DE srt:MinimumMember us-gaap:RevenueFromContractWithCustomerMember 2019-10-01 2020-06-30 0001768267 us-gaap:GeographicConcentrationRiskMember country:JP srt:MinimumMember us-gaap:RevenueFromContractWithCustomerMember 2021-04-01 2021-06-30 0001768267 us-gaap:GeographicConcentrationRiskMember country:JP srt:MinimumMember us-gaap:RevenueFromContractWithCustomerMember 2020-04-01 2020-06-30 0001768267 us-gaap:GeographicConcentrationRiskMember country:JP srt:MinimumMember us-gaap:RevenueFromContractWithCustomerMember 2020-10-01 2021-06-30 0001768267 us-gaap:GeographicConcentrationRiskMember country:JP srt:MinimumMember us-gaap:RevenueFromContractWithCustomerMember 2019-10-01 2020-06-30 0001768267 crnc:CustomerOneMember 2021-04-01 2021-06-30 0001768267 crnc:CustomerOneMember 2020-04-01 2020-06-30 0001768267 crnc:CustomerOneMember 2020-10-01 2021-06-30 0001768267 crnc:CustomerOneMember 2019-10-01 2020-06-30 0001768267 crnc:CustomerOneMember us-gaap:RevenueFromContractWithCustomerMember us-gaap:CustomerConcentrationRiskMember 2021-04-01 2021-06-30 0001768267 crnc:CustomerOneMember us-gaap:RevenueFromContractWithCustomerMember us-gaap:CustomerConcentrationRiskMember 2020-04-01 2020-06-30 0001768267 crnc:CustomerOneMember us-gaap:RevenueFromContractWithCustomerMember us-gaap:CustomerConcentrationRiskMember 2020-10-01 2021-06-30 0001768267 crnc:CustomerOneMember us-gaap:RevenueFromContractWithCustomerMember us-gaap:CustomerConcentrationRiskMember 2019-10-01 2020-06-30 0001768267 crnc:CustomerTwoMember 2021-04-01 2021-06-30 0001768267 crnc:CustomerTwoMember 2020-04-01 2020-06-30 0001768267 crnc:CustomerTwoMember 2020-10-01 2021-06-30 0001768267 crnc:CustomerTwoMember us-gaap:RevenueFromContractWithCustomerMember us-gaap:CustomerConcentrationRiskMember 2021-04-01 2021-06-30 0001768267 crnc:CustomerTwoMember us-gaap:RevenueFromContractWithCustomerMember us-gaap:CustomerConcentrationRiskMember 2020-04-01 2020-06-30 0001768267 crnc:CustomerTwoMember us-gaap:RevenueFromContractWithCustomerMember us-gaap:CustomerConcentrationRiskMember 2020-10-01 2021-06-30 0001768267 crnc:CustomerThreeMember 2020-04-01 2020-06-30 0001768267 crnc:CustomerThreeMember us-gaap:RevenueFromContractWithCustomerMember us-gaap:CustomerConcentrationRiskMember 2020-04-01 2020-06-30 0001768267 us-gaap:RevenueFromContractWithCustomerMember us-gaap:CustomerConcentrationRiskMember 2021-04-01 2021-06-30 0001768267 us-gaap:RevenueFromContractWithCustomerMember us-gaap:CustomerConcentrationRiskMember 2020-04-01 2020-06-30 0001768267 us-gaap:RevenueFromContractWithCustomerMember us-gaap:CustomerConcentrationRiskMember 2020-10-01 2021-06-30 0001768267 us-gaap:RevenueFromContractWithCustomerMember us-gaap:CustomerConcentrationRiskMember 2019-10-01 2020-06-30 0001768267 srt:MinimumMember 2021-06-30 0001768267 srt:MaximumMember 2021-06-30 0001768267 2021-07-01 2021-06-30 0001768267 2022-07-01 2021-06-30 0001768267 2026-07-01 2021-06-30 0001768267 crnc:ThreePointZeroZeroPercentageConvertibleSeniorNotesDueTwoThousandTwentyFiveMember 2020-10-01 2021-06-30 0001768267 us-gaap:RestrictedStockUnitsRSUMember 2020-04-01 2020-06-30 0001768267 us-gaap:RestrictedStockUnitsRSUMember 2019-10-01 2020-06-30 0001768267 crnc:ContingentlyIssuableStockAwardsMember 2020-04-01 2020-06-30 0001768267 crnc:ContingentlyIssuableStockAwardsMember 2019-10-01 2020-06-30 0001768267 us-gaap:ConvertibleDebtSecuritiesMember 2021-04-01 2021-06-30 0001768267 us-gaap:ConvertibleDebtSecuritiesMember 2020-04-01 2020-06-30 0001768267 us-gaap:ConvertibleDebtSecuritiesMember 2020-10-01 2021-06-30 0001768267 us-gaap:ConvertibleDebtSecuritiesMember 2019-10-01 2020-06-30 0001768267 us-gaap:MoneyMarketFundsMember us-gaap:FairValueInputsLevel1Member 2021-06-30 0001768267 us-gaap:CommercialPaperMember us-gaap:FairValueInputsLevel2Member 2021-06-30 0001768267 us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueInputsLevel2Member 2021-06-30 0001768267 us-gaap:CommercialPaperMember 2021-06-30 0001768267 us-gaap:CorporateDebtSecuritiesMember 2021-06-30 0001768267 us-gaap:MoneyMarketFundsMember us-gaap:FairValueInputsLevel1Member 2020-09-30 0001768267 us-gaap:CommercialPaperMember us-gaap:FairValueInputsLevel2Member 2020-09-30 0001768267 us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueInputsLevel2Member 2020-09-30 0001768267 us-gaap:CommercialPaperMember 2020-09-30 0001768267 us-gaap:CorporateDebtSecuritiesMember 2020-09-30 0001768267 us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:FairValueInputsLevel2Member 2021-06-30 0001768267 us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:FairValueInputsLevel2Member 2020-09-30 0001768267 srt:MaximumMember us-gaap:ForeignExchangeForwardMember us-gaap:NondesignatedMember 2020-10-01 2021-06-30 0001768267 us-gaap:ForeignExchangeForwardMember us-gaap:NondesignatedMember 2021-06-30 0001768267 us-gaap:ForeignExchangeForwardMember us-gaap:NondesignatedMember 2020-10-01 2021-06-30 0001768267 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember us-gaap:ForeignExchangeForwardMember us-gaap:NondesignatedMember 2021-06-30 0001768267 us-gaap:OtherAssetsMember us-gaap:ForeignExchangeForwardMember us-gaap:NondesignatedMember 2021-06-30 0001768267 crnc:AccruedExpensesAndOtherCurrentLiabilitiesMember us-gaap:ForeignExchangeForwardMember us-gaap:NondesignatedMember 2021-06-30 0001768267 us-gaap:OtherLiabilitiesMember us-gaap:ForeignExchangeForwardMember us-gaap:NondesignatedMember 2021-06-30 0001768267 us-gaap:ForeignExchangeForwardMember us-gaap:NondesignatedMember 2021-04-01 2021-06-30 crnc:Segment 0001768267 us-gaap:CustomerRelationshipsMember 2021-06-30 0001768267 us-gaap:TechnologyBasedIntangibleAssetsMember 2021-06-30 0001768267 us-gaap:CustomerRelationshipsMember 2020-10-01 2021-06-30 0001768267 us-gaap:TechnologyBasedIntangibleAssetsMember 2020-10-01 2021-06-30 0001768267 us-gaap:CustomerRelationshipsMember 2020-09-30 0001768267 us-gaap:TechnologyBasedIntangibleAssetsMember 2020-09-30 0001768267 us-gaap:CustomerRelationshipsMember 2019-10-01 2020-09-30 0001768267 us-gaap:TechnologyBasedIntangibleAssetsMember 2019-10-01 2020-09-30 0001768267 us-gaap:EmployeeSeveranceMember 2020-09-30 0001768267 us-gaap:FacilityClosingMember 2020-09-30 0001768267 crnc:RestructuringMember 2020-09-30 0001768267 us-gaap:OtherRestructuringMember 2020-09-30 0001768267 us-gaap:EmployeeSeveranceMember 2020-10-01 2021-06-30 0001768267 us-gaap:FacilityClosingMember 2020-10-01 2021-06-30 0001768267 crnc:RestructuringMember 2020-10-01 2021-06-30 0001768267 us-gaap:OtherRestructuringMember 2020-10-01 2021-06-30 0001768267 us-gaap:EmployeeSeveranceMember 2021-06-30 0001768267 us-gaap:FacilityClosingMember 2021-06-30 0001768267 crnc:RestructuringMember 2021-06-30 0001768267 us-gaap:OtherRestructuringMember 2021-06-30 0001768267 us-gaap:EmployeeSeveranceMember 2020-04-01 2020-06-30 0001768267 us-gaap:EmployeeSeveranceMember 2019-10-01 2020-06-30 0001768267 us-gaap:FacilityClosingMember 2021-04-01 2021-06-30 0001768267 crnc:RestructuringMember 2021-04-01 2021-06-30 0001768267 crnc:RestructuringMember 2020-04-01 2020-06-30 0001768267 crnc:RestructuringMember 2019-10-01 2020-06-30 0001768267 us-gaap:OtherRestructuringMember 2021-04-01 2021-06-30 0001768267 us-gaap:OtherRestructuringMember 2020-04-01 2020-06-30 0001768267 us-gaap:OtherRestructuringMember 2019-10-01 2020-06-30 0001768267 crnc:OtherOneTimeChargesMember 2021-04-01 2021-06-30 0001768267 crnc:OtherOneTimeChargesMember 2020-10-01 2021-06-30 0001768267 us-gaap:SpinoffMember 2020-04-01 2020-06-30 0001768267 us-gaap:SpinoffMember 2019-10-01 2020-06-30 0001768267 2019-10-01 0001768267 2019-10-02 0001768267 crnc:TwoThousandAndNineteenEquityIncentivePlanMember 2019-10-02 0001768267 crnc:TwoThousandAndNineteenEmployeeStockPurchasePlanMember 2019-10-02 0001768267 2021-01-01 0001768267 crnc:TwoThousandAndNineteenEquityIncentivePlanMember 2020-10-01 2021-06-30 0001768267 srt:MaximumMember crnc:TwoThousandAndNineteenEquityIncentivePlanMember 2020-10-01 2021-06-30 0001768267 crnc:TimeBasedRestrictedStockUnitsMember 2020-09-30 0001768267 crnc:PerformanceBasedRestrictedStockUnitsMember 2020-09-30 0001768267 us-gaap:RestrictedStockUnitsRSUMember 2020-09-30 0001768267 crnc:TimeBasedRestrictedStockUnitsMember 2020-10-01 2021-06-30 0001768267 crnc:PerformanceBasedRestrictedStockUnitsMember 2020-10-01 2021-06-30 0001768267 us-gaap:RestrictedStockUnitsRSUMember 2020-10-01 2021-06-30 0001768267 crnc:TimeBasedRestrictedStockUnitsMember 2021-06-30 0001768267 crnc:PerformanceBasedRestrictedStockUnitsMember 2021-06-30 0001768267 us-gaap:RestrictedStockUnitsRSUMember 2021-06-30 0001768267 crnc:CostOfConnectedServicesMember 2021-04-01 2021-06-30 0001768267 crnc:CostOfConnectedServicesMember 2020-04-01 2020-06-30 0001768267 crnc:CostOfConnectedServicesMember 2020-10-01 2021-06-30 0001768267 crnc:CostOfConnectedServicesMember 2019-10-01 2020-06-30 0001768267 crnc:CostOfProfessionalServicesMember 2021-04-01 2021-06-30 0001768267 crnc:CostOfProfessionalServicesMember 2020-04-01 2020-06-30 0001768267 crnc:CostOfProfessionalServicesMember 2020-10-01 2021-06-30 0001768267 crnc:CostOfProfessionalServicesMember 2019-10-01 2020-06-30 0001768267 us-gaap:ResearchAndDevelopmentExpenseMember 2021-04-01 2021-06-30 0001768267 us-gaap:ResearchAndDevelopmentExpenseMember 2020-04-01 2020-06-30 0001768267 us-gaap:ResearchAndDevelopmentExpenseMember 2020-10-01 2021-06-30 0001768267 us-gaap:ResearchAndDevelopmentExpenseMember 2019-10-01 2020-06-30 0001768267 us-gaap:SellingAndMarketingExpenseMember 2021-04-01 2021-06-30 0001768267 us-gaap:SellingAndMarketingExpenseMember 2020-04-01 2020-06-30 0001768267 us-gaap:SellingAndMarketingExpenseMember 2020-10-01 2021-06-30 0001768267 us-gaap:SellingAndMarketingExpenseMember 2019-10-01 2020-06-30 0001768267 us-gaap:GeneralAndAdministrativeExpenseMember 2021-04-01 2021-06-30 0001768267 us-gaap:GeneralAndAdministrativeExpenseMember 2020-04-01 2020-06-30 0001768267 us-gaap:GeneralAndAdministrativeExpenseMember 2020-10-01 2021-06-30 0001768267 us-gaap:GeneralAndAdministrativeExpenseMember 2019-10-01 2020-06-30 0001768267 crnc:BellevueWashingtonOfficeSpaceMember 2021-06-30 0001768267 crnc:OtherFacilityMember 2021-06-30 0001768267 country:NL 2020-10-01 2021-06-30 0001768267 country:NL 2019-10-01 2020-06-30 0001768267 crnc:ThreePointZeroZeroPercentageConvertibleSeniorNotesDueTwoThousandTwentyFiveMember 2021-06-30 0001768267 crnc:ThreePointZeroZeroPercentageConvertibleSeniorNotesDueTwoThousandTwentyFiveMember 2020-09-30 0001768267 crnc:CreditAgreementMember 2021-06-30 0001768267 crnc:CreditAgreementMember 2020-09-30 0001768267 crnc:ThreePointZeroZeroPercentageConvertibleSeniorNotesDueTwoThousandTwentyFiveMember 2020-06-02 0001768267 crnc:ThreePointZeroZeroPercentageConvertibleSeniorNotesDueTwoThousandTwentyFiveMember 2020-06-02 2020-06-02 0001768267 crnc:ThreePointZeroZeroPercentageConvertibleSeniorNotesDueTwoThousandTwentyFiveMember 2021-04-01 2021-06-30 0001768267 crnc:ThreePointZeroZeroPercentageConvertibleSeniorNotesDueTwoThousandTwentyFiveMember 2020-04-01 2020-06-30 0001768267 crnc:ThreePointZeroZeroPercentageConvertibleSeniorNotesDueTwoThousandTwentyFiveMember 2019-10-01 2020-06-30 0001768267 crnc:FourYearSeniorSecuredTermLoanFacilityMember crnc:CreditAgreementMember 2020-06-12 2020-06-12 0001768267 crnc:FourYearSeniorSecuredTermLoanFacilityMember crnc:CreditAgreementMember 2020-06-12 0001768267 crnc:SeniorSecuredFirstLienRevolvingCreditFacilityMember crnc:CreditAgreementMember 2020-06-12 0001768267 crnc:SeniorSecuredFirstLienRevolvingCreditFacilityMember crnc:CreditAgreementMember 2021-06-30 0001768267 crnc:CreditAgreementAmendmentOneMember 2020-12-17 0001768267 crnc:CreditAgreementAmendmentOneMember 2020-12-17 2020-12-17 0001768267 crnc:NetLeverageRatioScenarioOneMember crnc:CreditAgreementAmendmentOneMember 2020-12-17 0001768267 us-gaap:LondonInterbankOfferedRateLIBORMember crnc:NetLeverageRatioScenarioOneMember crnc:CreditAgreementAmendmentOneMember 2020-12-17 2020-12-17 0001768267 us-gaap:BaseRateMember crnc:NetLeverageRatioScenarioOneMember crnc:CreditAgreementAmendmentOneMember 2020-12-17 2020-12-17 0001768267 srt:MaximumMember crnc:NetLeverageRatioScenarioTwoMember crnc:CreditAgreementAmendmentOneMember 2020-12-17 0001768267 srt:MinimumMember crnc:NetLeverageRatioScenarioTwoMember crnc:CreditAgreementAmendmentOneMember 2020-12-17 0001768267 us-gaap:LondonInterbankOfferedRateLIBORMember crnc:NetLeverageRatioScenarioTwoMember crnc:CreditAgreementAmendmentOneMember 2020-12-17 2020-12-17 0001768267 us-gaap:BaseRateMember crnc:NetLeverageRatioScenarioTwoMember crnc:CreditAgreementAmendmentOneMember 2020-12-17 2020-12-17 0001768267 srt:MaximumMember crnc:NetLeverageRatioScenarioThreeMember crnc:CreditAgreementAmendmentOneMember 2020-12-17 0001768267 srt:MinimumMember crnc:NetLeverageRatioScenarioThreeMember crnc:CreditAgreementAmendmentOneMember 2020-12-17 0001768267 us-gaap:LondonInterbankOfferedRateLIBORMember crnc:NetLeverageRatioScenarioThreeMember crnc:CreditAgreementAmendmentOneMember 2020-12-17 2020-12-17 0001768267 us-gaap:BaseRateMember crnc:NetLeverageRatioScenarioThreeMember crnc:CreditAgreementAmendmentOneMember 2020-12-17 2020-12-17 0001768267 srt:MaximumMember crnc:NetLeverageRatioScenarioFourMember crnc:CreditAgreementAmendmentOneMember 2020-12-17 0001768267 srt:MinimumMember crnc:NetLeverageRatioScenarioFourMember crnc:CreditAgreementAmendmentOneMember 2020-12-17 0001768267 us-gaap:LondonInterbankOfferedRateLIBORMember crnc:NetLeverageRatioScenarioFourMember crnc:CreditAgreementAmendmentOneMember 2020-12-17 2020-12-17 0001768267 us-gaap:BaseRateMember crnc:NetLeverageRatioScenarioFourMember crnc:CreditAgreementAmendmentOneMember 2020-12-17 2020-12-17 0001768267 crnc:NetLeverageRatioScenarioFiveMember crnc:CreditAgreementAmendmentOneMember 2020-12-17 0001768267 us-gaap:LondonInterbankOfferedRateLIBORMember crnc:NetLeverageRatioScenarioFiveMember crnc:CreditAgreementAmendmentOneMember 2020-12-17 2020-12-17 0001768267 us-gaap:BaseRateMember crnc:NetLeverageRatioScenarioFiveMember crnc:CreditAgreementAmendmentOneMember 2020-12-17 2020-12-17 0001768267 us-gaap:LondonInterbankOfferedRateLIBORMember crnc:CreditAgreementAmendmentOneMember 2020-06-12 2020-06-12 0001768267 us-gaap:LondonInterbankOfferedRateLIBORMember crnc:CreditAgreementAmendmentOneMember 2020-12-17 2020-12-17 0001768267 crnc:CreditAgreementAmendmentOneMember 2020-10-01 2021-06-30 0001768267 crnc:CreditAgreementAmendmentOneMember 2020-04-01 2020-06-30 0001768267 crnc:CreditAgreementAmendmentOneMember 2021-04-01 2021-06-30 0001768267 crnc:CreditAgreementAmendmentOneMember 2019-10-01 2020-06-30 0001768267 us-gaap:LondonInterbankOfferedRateLIBORMember crnc:CreditAgreementAmendmentOneMember 2020-10-01 2020-12-31 0001768267 us-gaap:LondonInterbankOfferedRateLIBORMember crnc:CreditAgreementAmendmentOneMember 2021-01-01 2021-03-31 0001768267 us-gaap:LondonInterbankOfferedRateLIBORMember crnc:CreditAgreementAmendmentOneMember 2021-04-01 2021-06-30 0001768267 crnc:NetLeverageRatioScenarioOneMember crnc:CreditAgreementAmendmentOneMember 2020-12-17 2020-12-17 0001768267 crnc:NetLeverageRatioScenarioTwoMember crnc:CreditAgreementAmendmentOneMember 2020-12-17 2020-12-17 0001768267 crnc:NetLeverageRatioScenarioThreeMember crnc:CreditAgreementAmendmentOneMember 2020-12-17 2020-12-17 0001768267 crnc:NetLeverageRatioScenarioFourMember crnc:CreditAgreementAmendmentOneMember 2020-12-17 2020-12-17 0001768267 crnc:NetLeverageRatioScenarioFiveMember crnc:CreditAgreementAmendmentOneMember 2020-12-17 2020-12-17 0001768267 crnc:FourYearSeniorSecuredTermLoanFacilityMember crnc:CreditAgreementAmendmentOneMember 2020-10-01 2021-06-30 0001768267 crnc:FourYearSeniorSecuredTermLoanFacilityMember crnc:CreditAgreementAmendmentOneMember 2020-12-17 2020-12-17 0001768267 crnc:CreditAgreementMember srt:MaximumMember 2020-10-01 2021-06-30 0001768267 crnc:CreditAgreementMember srt:MaximumMember 2021-06-30 0001768267 crnc:CreditAgreementMember 2020-10-01 2021-06-30 0001768267 srt:ScenarioPreviouslyReportedMember 2019-10-01 2019-12-31 0001768267 srt:RevisionOfPriorPeriodErrorCorrectionAdjustmentMember 2019-10-01 2019-12-31 0001768267 2019-10-01 2019-12-31 0001768267 srt:ScenarioPreviouslyReportedMember 2020-01-01 2020-03-31 0001768267 srt:RevisionOfPriorPeriodErrorCorrectionAdjustmentMember 2020-01-01 2020-03-31 0001768267 2020-01-01 2020-03-31 0001768267 srt:ScenarioPreviouslyReportedMember 2020-04-01 2020-06-30 0001768267 srt:RevisionOfPriorPeriodErrorCorrectionAdjustmentMember 2020-04-01 2020-06-30 0001768267 srt:ScenarioPreviouslyReportedMember 2019-10-01 2020-09-30 0001768267 srt:RevisionOfPriorPeriodErrorCorrectionAdjustmentMember 2019-10-01 2020-09-30 0001768267 2019-10-01 2020-09-30 0001768267 srt:ScenarioPreviouslyReportedMember 2020-09-30 0001768267 srt:RevisionOfPriorPeriodErrorCorrectionAdjustmentMember 2020-09-30 0001768267 srt:ScenarioPreviouslyReportedMember 2020-10-01 2020-12-31 0001768267 srt:RevisionOfPriorPeriodErrorCorrectionAdjustmentMember 2020-10-01 2020-12-31 0001768267 2020-10-01 2020-12-31

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

FORM 10-Q

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2021

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________ to __________

Commission File Number: 001-39030

 

CERENCE INC.

(Exact name of registrant as specified in its charter)

 

 

Delaware

83-4177087

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer
Identification No.)

15 Wayside Road

Burlington, Massachusetts

01803

(Address of principal executive offices)

(Zip Code)

(857) 362-7300

(Registrant’s telephone number, including area code)

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange on which registered

Common Stock, par value $0.01 per share

 

CRNC

 

The Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes No 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).     Yes  ☒    No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

  

Accelerated filer

 

 

 

 

 

Non-accelerated filer

 

  

Smaller reporting company

 

 

 

 

 

 

 

 

Emerging growth company

 

 

 

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     Yes      No  

As of July 30, 2021, the registrant had 38,006,493 shares of common stock, $0.01 par value per share, outstanding.

 

 

 


 

Table of Contents

 

 

 

Page

PART I.

FINANCIAL INFORMATION

3

Item 1.

Condensed Consolidated Financial Statements (Unaudited)

3

 

Condensed Consolidated Statements of Operations for the Three and Nine Months Ended June 30, 2021 and 2020

3

 

Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three and Nine Months Ended June 30, 2021 and 2020

4

 

Condensed Consolidated Balance Sheets as of June 30, 2021 and September 30, 2020

5

 

Consolidated Statements of Stockholders' Equity for the Three and Nine Months Ended June 30, 2021 and 2020

6

 

Condensed Consolidated Statements of Cash Flows for the Nine Months Ended June 30, 2021 and 2020

8

 

Notes to Condensed Consolidated Financial Statements

9

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

29

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

45

Item 4.

Controls and Procedures

46

PART II.

OTHER INFORMATION

47

Item 1.

Legal Proceedings

47

Item 1A.

Risk Factors

47

Item 6.

Exhibits

48

Signatures

49

 

 

i


 

CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q (“Form 10-Q”), filed by Cerence Inc. together with its consolidated subsidiaries, “Cerence,” the “Company,” “we,” “us” or “our” unless the context indicates otherwise, contains “forward-looking statements” that involve risks and uncertainties. These statements can be identified by the fact that they do not relate strictly to historical or current facts, but rather are based on current expectations, estimates, assumptions and projections about our industry and our business and financial results. Forward-looking statements often include words such as “anticipates,” “estimates,” “expects,” “projects,” “forecasts,” “intends,” “plans,” “continues,” “believes,” “may,” “will,” “goals” and words and terms of similar substance in connection with discussions of future operating or financial performance. As with any projection or forecast, forward-looking statements are inherently susceptible to uncertainty and changes in circumstances. Our actual results may vary materially from those expressed or implied in our forward-looking statements. Accordingly, undue reliance should not be placed on any forward-looking statement made by us or on our behalf. Although we believe that the forward-looking statements contained in this Form 10-Q are based on reasonable assumptions, you should be aware that many factors could affect our actual financial results or results of operations and could cause actual results to differ materially from those in such forward-looking statements, including but not limited to:

 

the duration and severity of the COVID-19 pandemic and its impact on our business and financial performance;

 

adverse conditions in the automotive industry or the global economy more generally, including as a result of the COVID-19 pandemic;

 

the continuation of the semiconductor shortage being experienced by the automotive industry;

 

the highly competitive and rapidly changing market in which we operate;

 

our employees are represented by workers councils or unions or are subject to local laws that are less favorable to employers than the laws of the U.S.;

 

our strategy to increase cloud services and fluctuations in our operating results;

 

escalating pricing pressures from our customers;

 

our failure to win, renew or implement service contracts;

 

the cancellation or postponement of service contracts after a design win;

 

the loss of business from any of our largest customers;

 

inability to recruit and retain qualified personnel;

 

cybersecurity and data privacy incidents that damage client relations;

 

interruptions or delays in our services or services from data center hosting facilities or public clouds;

 

economic, political, regulatory, foreign exchange and other risks of international operations;

 

unforeseen U.S. and foreign tax liabilities;

 

impairment of our goodwill and other intangible assets;

 

the failure to protect our intellectual property or allegations that we have infringed the intellectual property of others;

 

defects in our software products that result in lost revenue, expensive corrections or claims against us;

 

our inability to quickly respond to changes in technology and to develop our intellectual property into commercially viable products;

 

our inability to successfully introduce new products, applications or services;

 

a significant interruption in the supply or maintenance of our third-party hardware, software, services or data;

 

restrictions on our current and future operations under the terms of our debt and the use of cash to service our debt; and

 

certain factors discussed elsewhere in this Form 10-Q.

1


 

These and other factors are more fully discussed in Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended September 30, 2020 and elsewhere in this Form 10-Q, including Part II, “Item 1A, Risk Factors”. These risks could cause actual results to differ materially from those implied by forward-looking statements in this Form 10-Q. Even if our results of operations, financial condition and liquidity and the development of the industry in which we operate are consistent with the forward-looking statements contained in this Form 10-Q, those results or developments may not be indicative of results or developments in subsequent periods.

Any forward-looking statements made by us in this Form 10-Q speak only as of the date on which they are made. We are under no obligation to, and expressly disclaim any obligation to, update or alter our forward-looking statements, whether as a result of new information, subsequent events or otherwise, except as required by law.


2


 

 

PART I—FINANCIAL INFORMATION

Item 1. Condensed Consolidated Financial Statements.

CERENCE INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(unaudited)

 

 

 

Three Months Ended June 30,

 

 

Nine Months Ended June 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

License

 

$

49,980

 

 

$

32,454

 

 

$

150,765

 

 

$

117,843

 

Connected services

 

 

30,283

 

 

 

25,383

 

 

 

83,949

 

 

 

72,109

 

Professional services

 

 

16,538

 

 

 

17,360

 

 

 

54,392

 

 

 

49,773

 

Total revenues

 

 

96,801

 

 

 

75,197

 

 

 

289,106

 

 

 

239,725

 

Cost of revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

License

 

 

863

 

 

 

820

 

 

 

2,718

 

 

 

2,344

 

Connected services

 

 

6,108

 

 

 

7,191

 

 

 

19,960

 

 

 

24,742

 

Professional services

 

 

14,985

 

 

 

17,529

 

 

 

48,632

 

 

 

48,773

 

Amortization of intangible assets

 

 

1,879

 

 

 

2,063

 

 

 

5,637

 

 

 

6,408

 

Total cost of revenues

 

 

23,835

 

 

 

27,603

 

 

 

76,947

 

 

 

82,267

 

Gross profit

 

 

72,966

 

 

 

47,594

 

 

 

212,159

 

 

 

157,458

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

30,370

 

 

 

22,041

 

 

 

83,365

 

 

 

66,898

 

Sales and marketing

 

 

9,534

 

 

 

9,180

 

 

 

28,097

 

 

 

24,829

 

General and administrative

 

 

13,173

 

 

 

14,261

 

 

 

38,563

 

 

 

36,456

 

Amortization of intangible assets

 

 

3,180

 

 

 

3,120

 

 

 

9,521

 

 

 

9,376

 

Restructuring and other costs, net

 

 

1,760

 

 

 

3,301

 

 

 

2,777

 

 

 

13,725

 

Total operating expenses

 

 

58,017

 

 

 

51,903

 

 

 

162,323

 

 

 

151,284

 

Income (loss) from operations

 

 

14,949

 

 

 

(4,309

)

 

 

49,836

 

 

 

6,174

 

Interest income

 

 

34

 

 

 

38

 

 

 

68

 

 

 

563

 

Interest expense

 

 

(3,294

)

 

 

(5,546

)

 

 

(10,569

)

 

 

(19,043

)

Other income (expense), net

 

 

173

 

 

 

(20,446

)

 

 

1,432

 

 

 

(20,366

)

Income (loss) before income taxes

 

 

11,862

 

 

 

(30,263

)

 

 

40,767

 

 

 

(32,672

)

Provision for (benefit from) income taxes

 

 

6,064

 

 

 

(2,211

)

 

 

2,865

 

 

 

(6,149

)

Net income (loss)

 

$

5,798

 

 

$

(28,052

)

 

$

37,902

 

 

$

(26,523

)

Net income (loss) per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.15

 

 

$

(0.77

)

 

$

1.01

 

 

$

(0.73

)

Diluted

 

$

0.15

 

 

$

(0.77

)

 

$

0.97

 

 

$

(0.73

)

Weighted-average common share outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

37,825

 

 

 

36,509

 

 

 

37,664

 

 

 

36,315

 

Diluted

 

 

39,296

 

 

 

36,509

 

 

 

39,135

 

 

 

36,315

 

 

Refer to accompanying Notes to the unaudited condensed consolidated financial statements.

3


CERENCE INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(In thousands)

(unaudited)

 

 

 

Three Months Ended June 30,

 

 

Nine Months Ended June 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

5,798

 

 

$

(28,052

)

 

$

37,902

 

 

$

(26,523

)

Other comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustments

 

 

3,937

 

 

 

6,382

 

 

 

5,786

 

 

 

4,002

 

Pension adjustments, net

 

 

22

 

 

 

16

 

 

 

96

 

 

 

1,032

 

Net unrealized loss on available-for-sale securities

 

 

(14

)

 

 

 

 

 

(14

)

 

 

 

Total other comprehensive income

 

 

3,945

 

 

 

6,398

 

 

 

5,868

 

 

 

5,034

 

Comprehensive income (loss)

 

$

9,743

 

 

$

(21,654

)

 

$

43,770

 

 

$

(21,489

)

 

Refer to accompanying Notes to the unaudited condensed consolidated financial statements.

4


CERENCE INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except per share amounts)

 

 

 

June 30, 2021

 

 

September 30, 2020

 

 

 

(Unaudited)

 

 

 

 

 

ASSETS

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

120,840

 

 

$

136,067

 

Marketable securities

 

 

29,100

 

 

 

11,662

 

Accounts receivable, net of allowances of $404 and $1,394

 

 

53,141

 

 

 

50,900

 

Deferred costs

 

 

7,330

 

 

 

7,256

 

Prepaid expenses and other current assets

 

 

61,328

 

 

 

44,220

 

Total current assets

 

 

271,739

 

 

 

250,105

 

Long-term marketable securities

 

 

7,348

 

 

 

-

 

Property and equipment, net

 

 

30,723

 

 

 

29,529

 

Deferred costs

 

 

33,446

 

 

 

38,161

 

Operating lease right of use assets

 

 

16,837

 

 

 

20,096

 

Goodwill

 

 

1,132,897

 

 

 

1,128,198

 

Intangible assets, net

 

 

30,618

 

 

 

45,616

 

Deferred tax assets

 

 

165,077

 

 

 

160,974

 

Other assets

 

 

20,354

 

 

 

14,938

 

Total assets

 

$

1,709,039

 

 

$

1,687,617

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

11,187

 

 

$

8,447

 

Deferred revenue

 

 

84,993

 

 

 

112,156

 

Short-term operating lease liabilities

 

 

5,497

 

 

 

5,700

 

Short-term debt

 

 

6,250

 

 

 

6,250

 

Accrued expenses and other current liabilities

 

 

60,955

 

 

 

66,078

 

Total current liabilities

 

 

168,882

 

 

 

198,631

 

Long-term debt

 

 

265,372

 

 

 

266,872

 

Deferred revenue, net of current portion

 

 

204,790

 

 

 

212,573

 

Long-term operating lease liabilities

 

 

13,157

 

 

 

17,821

 

Other liabilities

 

 

34,989

 

 

 

31,649

 

Total liabilities

 

 

687,190

 

 

 

727,546

 

Commitments and contingencies (Note 13)

 

 

 

 

 

 

 

 

Stockholders' Equity:

 

 

 

 

 

 

 

 

Common stock, $0.01 par value, 560,000 shares authorized; 37,828 shares issued and outstanding as of June 30, 2021; 36,842 shares issued and outstanding as of September 30, 2020.

 

 

379

 

 

 

369

 

Accumulated other comprehensive income

 

 

9,579

 

 

 

3,711

 

Additional paid-in capital

 

 

992,305

 

 

 

974,307

 

Retained earnings (accumulated deficit)

 

 

19,586

 

 

 

(18,316

)

Total stockholders' equity

 

 

1,021,849

 

 

 

960,071

 

Total liabilities and stockholders' equity

 

$

1,709,039

 

 

$

1,687,617

 

 

Refer to accompanying Notes to the unaudited condensed consolidated financial statements.

5


CERENCE INC.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(In thousands)

(unaudited)

 

 

Three Months Ended June 30, 2021

 

 

 

Common Stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Additional

Paid-In

Capital

 

 

Retained Earnings

 

 

Net

Parent

Investment

 

 

Accumulated

Other

Comprehensive

Income

 

 

Total

 

Balance at March 31, 2021

 

 

37,780

 

 

$

379

 

 

$

983,640

 

 

$

13,788

 

 

$

-

 

 

$

5,634

 

 

$

1,003,441

 

Net income

 

 

-

 

 

 

-

 

 

 

-

 

 

 

5,798

 

 

 

-

 

 

 

-

 

 

 

5,798

 

Other comprehensive income

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

3,945

 

 

 

3,945

 

Issuance of common stock

 

 

51

 

 

 

-

 

 

 

1,637

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

1,637

 

Stock withheld to cover tax withholdings requirements upon stock vesting

 

 

(3

)

 

 

-

 

 

 

(1,889

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(1,889

)

Stock-based compensation

 

 

-

 

 

 

-

 

 

 

8,917

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

8,917

 

Balance at June 30, 2021

 

 

37,828

 

 

$

379

 

 

$

992,305

 

 

$

19,586

 

 

$

 

 

$

9,579

 

 

$

1,021,849

 

 

 

Three Months Ended June 30, 2020

 

 

 

Common Stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Additional

Paid-In

Capital

 

 

Retained Earnings (Accumulated Deficit)

 

 

Net

Parent

Investment

 

 

Accumulated

Other

Comprehensive

Loss

 

 

Total

 

Balance at March 31, 2020

 

 

36,458

 

 

$

365

 

 

$

949,916

 

 

$

1,529

 

 

$

-

 

 

$

(14,635

)

 

$

937,175

 

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(28,052

)

 

 

-

 

 

 

-

 

 

 

(28,052

)

Other comprehensive income

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

6,398

 

 

 

6,398

 

Issuance of common stock

 

 

96

 

 

 

1

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

1

 

Stock withheld to cover tax withholdings requirements upon stock vesting

 

 

(34

)

 

 

-

 

 

 

(696

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(696

)

Convertible Senior Notes conversion feature (net of taxes of $4,678 and issuance costs of $629)

 

 

 

 

 

 

 

 

 

 

14,369

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

14,369

 

Stock-based compensation

 

 

-

 

 

 

-

 

 

 

10,423

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

10,423

 

Balance at June 30, 2020

 

 

36,520

 

 

$

366

 

 

$

974,012

 

 

$

(26,523

)

 

$

-

 

 

$

(8,237

)

 

$

939,618

 

 

6


 

CERENCE INC.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Cont.)

(In thousands)

(unaudited)

 

Nine Months Ended June 30, 2021

 

 

 

Common Stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Additional

Paid-In

Capital

 

 

(Accumulated Deficit) Retained Earnings

 

 

Net

Parent

Investment

 

 

Accumulated

Other

Comprehensive

Income

 

 

Total

 

Balance at September 30, 2020

 

 

36,842