Aware (AWRE) 10-Q 28 Apr 14 2014 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Mar. 31, 2014	Apr. 18, 2014
Document and Entity Information [Abstract]	'	'
Entity Registrant Name	'AWARE INC /MA/	'
Entity Central Index Key	'0001015739	'
Trading Symbol	'awre	'
Current Fiscal Year End Date	'--12-31	'
Entity Filer Category	'Accelerated Filer	'
Entity Common Stock, Shares Outstanding	'	22,627,475
Document Type	'10-Q	'
Document Period End Date	31-Mar-14	'
Amendment Flag	'false	'
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q1	'

CONSOLIDATED_BALANCE_SHEETS_un

CONSOLIDATED BALANCE SHEETS (unaudited) (USD $)	Mar. 31, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Current assets:	'	'
Cash and cash equivalents	$74,368	$72,660
Accounts receivable, net	4,593	4,582
Inventories	1	1,601
Deferred tax assets	340	383
Prepaid expenses and other current assets	777	695
Total current assets	80,079	79,921
Property and equipment, net	5,489	5,582
Investments	2,896	2,754
Long term deferred tax assets	716	762
Other assets	282	310
Total assets	89,462	89,329
Current liabilities:	'	'
Accounts payable	205	1,516
Accrued expenses	115	108
Accrued compensation	510	571
Accrued professional	116	118
Deferred revenue	1,846	1,848
Total current liabilities	2,792	4,161
Long-term deferred revenue	16	18
Commitments and contingent liabilities	'	'
Stockholders' equity:	'	'
Preferred stock, $1.00 par value; 1,000,000 shares authorized, none outstanding	'	'
Common stock, $.01 par value; 70,000,000 shares authorized; issued and outstanding 22,627,375 as of March 31, 2014 and 22,574,251 as of December 31, 2013	226	226
Additional paid-in capital	101,833	101,293
Accumulated other comprehensive loss	-41	-125
Accumulated deficit	-15,364	-16,244
Total stockholders' equity	86,654	85,150
Total liabilities and stockholders' equity	$89,462	$89,329

CONSOLIDATED_BALANCE_SHEETS_un1

CONSOLIDATED BALANCE SHEETS (unaudited) (Parentheticals) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Statement Of Financial Position [Abstract]	'	'
Preferred stock, par value (in dollars per share)	$1	$1
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares outstanding	'	'
Common stock, par value (in dollars per share)	$0.01	$0.01
Common stock, shares authorized	70,000,000	70,000,000
Common stock, shares issued	22,627,375	22,574,251
Common stock, shares outstanding	22,627,375	22,574,251

CONSOLIDATED_STATEMENTS_OF_INC

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (unaudited) (USD $)	3 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Revenue:	'	'
Software licenses	$1,617	$3,333
Software maintenance	1,045	947
Services	1,008	407
Hardware sales	2,633	'
Royalties	314	291
Total revenue	6,617	4,978
Costs and expenses:	'	'
Cost of hardware sales	1,902	'
Cost of services	463	197
Research and development	1,279	973
Selling and marketing	858	876
General and administrative	804	731
Total cost and expenses	5,306	2,777
Operating income before patent related income	1,311	2,201
Income from patent arrangement	'	780
Operating income after patent related income	1,311	2,981
Interest income	86	82
Income from continuing operations before income taxes	1,397	3,063
Provision for income taxes	517	1,091
Income from continuing operations	880	1,972
Loss from discontinued operations, net of income taxes	'	-115
Net income	880	1,857
Basic net income per share:	'	'
Basic net income per share from continuing operations (in dollars per share)	$0.04	$0.09
Basic net loss per share from discontinued operations (in dollars per share)	'	($0.01)
Basic net income per share (in dollars per share)	$0.04	$0.08
Diluted net income per share:	'	'
Diluted net income per share from continuing operations (in dollars per share)	$0.04	$0.09
Diluted net loss per share from discontinued operations (in dollars per share)	'	($0.01)
Diluted net income per share (in dollars per share)	$0.04	$0.08
Weighted-average shares - basic (in shares)	22,626	22,511
Weighted-average shares - diluted (in shares)	22,699	22,564
Comprehensive income:	'	'
Net income	880	1,857
Other comprehensive income (net of tax):	'	'
Unrealized gains on available for sale securities	84	58
Comprehensive income	$964	$1,915

CONSOLIDATED_STATEMENTS_OF_CAS

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Cash flows from operating activities:	'	'
Net income	$880	$1,857
Adjustments to reconcile net income to net cash provided by operating activities:	'	'
Depreciation and amortization	132	107
Stock-based compensation	29	10
Amortization of premium on investments	2	5
Deferred tax provision on other comprehensive income	-60	'
Changes in assets and liabilities:	'	'
Accounts receivable	-11	-1,592
Receivable from patent arrangement	'	341
Inventories	1,600	'
Prepaid expenses and other current assets	-82	-40
Deferred tax assets	89	150
Accounts payable	-1,311	-156
Accrued expenses, compensation, and professional	-56	-180
Deferred revenue	-4	143
Net cash provided by operating activities	1,208	645
Cash flows from investing activities:	'	'
Purchases of property and equipment	-11	-70
Net cash used in investing activities	-11	-70
Cash flows from financing activities:	'	'
Proceeds from issuance of common stock	9	20
Excess tax benefits from stock-based compensation	594	838
Payments made for taxes of employees who surrendered shares related to unrestricted stock	-92	'
Net cash provided by financing activities	511	858
Increase in cash and cash equivalents	1,708	1,433
Cash and cash equivalents, beginning of period	72,660	71,074
Cash and cash equivalents, end of period	74,368	72,507
Supplemental disclosure:	'	'
Cash paid for income taxes	$2	$63

Basis_of_Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2014
Basis Of Accounting [Abstract]	'
Basis of Presentation	'
	A)	Basis of Presentation. The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions for Form 10-Q and therefore do not include all information and notes necessary for a complete presentation of our financial position, results of operations and cash flows, in conformity with generally accepted accounting principles.  We filed audited financial statements which included all information and notes necessary for such presentation for the three years ended December 31, 2013 in conjunction with our 2013 Annual Report on Form 10-K. This Form 10-Q should be read in conjunction with that Form 10-K.
	The accompanying unaudited consolidated balance sheets, statements of income and comprehensive income, and statements of cash flows reflect all adjustments (consisting only of normal recurring items) which are, in the opinion of management, necessary for a fair presentation of financial position at March 31, 2014, and of operations and cash flows for the interim periods ended March 31, 2014 and 2013.
	The results of operations for the interim period ended March 31, 2014 are not necessarily indicative of the results to be expected for the year.

Fair_Value_Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2014
Fair Value Disclosures [Abstract]	'
Fair Value Measurements	'
	B)	Fair Value Measurements. The Financial Accounting Standards Board (“FASB”) Codification defines fair value, and establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to the unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy under the FASB Codification are: i) Level 1 – valuations that are based on quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date; ii) Level 2 – valuations that are based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly; and iii) Level 3 – valuations that require inputs that are both significant to the fair value measurement and unobservable.
	Cash and cash equivalents, which primarily include money market mutual funds, were $74.4 million and $72.7 million as of March 31, 2014 and December 31, 2013, respectively. We classified our cash equivalents of $68.6 million as of March 31, 2014 and December 31, 2013 within Level 1 of the fair value hierarchy because they are valued using quoted market prices.
	Our investments, which consist of high yield corporate debt securities, are also classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices. We categorize our investments as available-for-sale securities, and carry them at fair value in our financial statements.  We had $2.9 million and $2.8 million of available-for-sale investments as of March 31, 2014 and December 31, 2013, respectively.
	As of March 31, 2014, our assets that are measured at fair value on a recurring basis and whose carrying values approximate their respective fair values include the following (in thousands):
			Fair Value Measurement at March 31, 2014 Using:
			Quoted Prices in		Significant Other		Significant Unobservable Inputs
			Active Markets for		Observable Inputs
			Identical Assets
			(Level 1)		(Level 2)		(Level 3)
	Corporate debt securities		$	2,896	$	-	$	-
	Money market funds (included in cash and cash equivalents)			68,641
	Total		$	71,537	$	-	$	-
	As of December 31, 2013, our assets that are measured at fair value on a recurring basis and whose carrying values approximate their respective fair values include the following (in thousands):
			Fair Value Measurement at December 31, 2013 Using:
			Quoted Prices in		Significant Other		Significant
			Active Markets for		Observable Inputs		Unobservable
			Identical Assets				Inputs
			(Level 1)		(Level 2)		(Level 3)
	Corporate debt securities		$	2,754	$	-	$	-
	Money market funds (included in cash and cash equivalents)			68,556
	Total		$	71,310	$	-	$	-

Inventories

Inventories	3 Months Ended
	Mar. 31, 2014
Inventory Disclosure [Abstract]	'
Inventories	'
	C)	Inventories. Inventories are stated at the lower of cost or net realizable value with cost being determined by the first-in, first-out (“FIFO”) method.  Inventories consisted of the following (in thousands):
			March 31,		December 31,
			2014		2013
	Raw materials		$	1	$	1,584
	Finished goods			-		17
	Total		$	1	$	1,601

Computation_of_Earnings_per_Sh

Computation of Earnings per Share	3 Months Ended
	Mar. 31, 2014
Earnings Per Share [Abstract]	'
Computation of Earnings per Share	'
	D)	Computation of Earnings per Share. Basic earnings per share is computed by dividing net income or loss by the weighted average number of common shares outstanding.  Diluted earnings per share is computed by dividing net income or loss by the weighted average number of common shares outstanding plus additional common shares that would have been outstanding if dilutive potential common shares had been issued.  For the purposes of this calculation, stock options are considered common stock equivalents in periods in which they have a dilutive effect.  Stock options that are anti-dilutive are excluded from the calculation.
	Net income per share is calculated as follows (in thousands, except per share data):
			Three Months Ended
			March 31,
			2014		2013
	Net income:
	Income from continuing operations		$	880	$	1,972
	Loss from discontinued operations			-		(115	)
	Net income		$	880	$	1,857
	Shares outstanding:
	Weighted-average common shares outstanding			22,626		22,511
	Additional dilutive common stock equivalents			73		53
	Diluted shares outstanding			22,699		22,564
	Basic net income per share:
	Basic net income per share from continuing operations		$	0.04	$	0.09
	Basic net loss per share from discontinued operations			-		(0.01	)
	Basic net income per share		$	0.04	$	0.08
	Diluted net income per share:
	Diluted net income per share from continuing operations		$	0.04	$	0.09
	Diluted net loss per share from discontinued operations			-		(0.01	)
	Diluted net income per share		$	0.04	$	0.08
	For the three month periods ended March 31, 2014 and 2013, options to purchase 821,838 shares of common stock were outstanding, but were not included in the computation of diluted EPS because the options’ exercise prices were greater than the average market price of the common stock and thus would be anti-dilutive.

StockBased_Compensation

Stock-Based Compensation	3 Months Ended
	Mar. 31, 2014
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]	'
Stock-Based Compensation	'
	E)	Stock-Based Compensation.  The following table presents stock-based employee compensation expenses included in our unaudited consolidated statements of comprehensive income (in thousands):
			Three Months Ended
			March 31,
			2014		2013
	Cost of services		$	1	$	-
	Research and development			2		-
	Selling and marketing			1		-
	General and administrative			25		10
	Stock-based compensation expense		$	29	$	10
	Stock Option and SAR Grants. We grant stock options and stock appreciation rights (“SARs”) under our 2001 Nonqualified Stock Plan. We estimate the fair value of stock options and SARs using the Black-Scholes valuation model. This valuation model takes into account the exercise price of the award, as well as a variety of significant assumptions. The assumptions used to estimate the fair value of stock options and SARs include the expected term, the expected volatility of our stock over the expected term, the risk-free interest rate over the expected term, and our expected annual dividend yield. We believe that the valuation technique and the approach utilized to develop the underlying assumptions are appropriate in calculating the fair values of our stock options and SARs. Estimates of fair value are not intended to predict actual future events or the value ultimately realized by persons who receive equity awards.
	Unrestricted Stock Grants. We also grant unrestricted shares of stock under our 2001 Nonqualified Stock Plan. Stock-based compensation expense for stock grants is determined based on the fair market value of our stock on the date of grant, provided the number of shares in the grant is fixed on the grant date.
	Stock Option and SAR Grant Activity. We did not grant any stock options or SARs in the three month periods ended March 31, 2014 and 2013.
	Unrestricted Stock Grant Activity. We granted shares of unrestricted stock in 2014 and 2013 that affected financial results for the three months ended March 31, 2014 and 2013. These grants are described below.
	2014 Grant.  On March 26, 2014, we granted 152,000 shares of unrestricted stock to directors, officers and employees. The shares will be issued in two equal installments shortly after June 30, 2014 and December 31, 2014, provided each grantee is serving as a director, officer or employee on those dates. The total stock-based compensation expense related to this grant is $876,000, of which $19,000 was charged to expense in the three months ended March 31, 2014 and we anticipate the remaining $857,000 will be charged to expense ratably over the remaining three quarters of 2014.
	2013 Grant.  In April 2013, we granted 130,000 shares of unrestricted stock to directors, officers and employees. The shares were issued in two equal installments shortly after June 30, 2013 and December 31, 2013. We expensed the entire $623,000 stock-based compensation expense related to this grant in the second, third and fourth quarters of 2013. We issued shares of common stock related to this grant as follows: i) 51,374 net shares of common stock were issued in early July 2013 after employees surrendered 13,626 shares for which we paid $71,000 of withholding taxes on their behalf; and ii) 49,936 net shares of common stock were issued in early January 2014 after employees surrendered 15,064 shares for which we paid $92,000 of withholding taxes on their behalf.

Business_Segments

Business Segments	3 Months Ended
	Mar. 31, 2014
Segment Reporting [Abstract]	'
Business Segments	'
	F)	Business Segments. We organize ourselves into a single segment that reports to the chief operating decision makers.
	We conduct our operations in the United States and sell our products and services to domestic and international customers.  Revenues were generated from the following geographic regions (in thousands):
			Three Months Ended
			March 31,
			2014		2013
	United States		$	5,496	$	3,510
	Rest of world			1,121		1,468
			$	6,617	$	4,978
	There were no single foreign countries from which we derived 10% or more of total revenue in the three month periods ended March 31, 2014 and 2013.

Recent_Accounting_Pronouncemen

Recent Accounting Pronouncements	3 Months Ended
	Mar. 31, 2014
Accounting Changes and Error Corrections [Abstract]	'
Recent Accounting Pronouncements	'
	G)	Recent Accounting Pronouncements.  There are no recently issued accounting pronouncements applicable to the Company that have not been adopted as of March 31, 2014.

Income_Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2014
Income Tax Disclosure [Abstract]	'
Income Taxes	'
	H)	Income Taxes.  Income tax expense was $0.5 million and $1.1 million for the three months ended March 31, 2014 and 2013, respectively. Income tax expense in both three month periods was based on the U.S. statutory rate of 34%, increased by state income taxes.
		In the three months ended March 31, 2014 and 2013, we utilized deferred tax assets to reduce our tax liability payable to the government.  A portion of the deferred tax assets we used comprised cumulative deductions for stock options in excess of book expense. Under income tax accounting rules, that portion of tax benefits attributable to such deductions must be recorded as an adjustment to equity versus a reduction of income tax expense. The tax benefits from such stock-based awards were $0.6 million and $0.8 million in the three month periods ended March 31, 2014 and 2013, respectively.  These tax benefits were recorded as an equity adjustment to additional paid-in capital.
	As of March 31, 2014, we had a total of $1.1 million of deferred tax assets for which we had recorded no valuation allowance.  We will continue to assess the level of valuation allowance in future periods.  Should evidence regarding the realizability of tax assets change at a future point in time, the valuation allowance will be adjusted accordingly.
	In addition to deferred tax assets carried on our balance sheet, we also had net federal and state research and development credit carryforwards available at December 31, 2013 of $4.9 million and $0.7 million. These credits were not recorded as tax assets as they relate to excess stock compensation deductions that may not be recorded as tax assets under generally accepted accounting principles until the amounts have been utilized to reduce our tax liability. To the extent that these assets are used to reduce future taxes, the benefit will be recorded as a reduction to additional paid-in capital. The aforementioned $0.6 million and $0.8 million equity adjustment to additional paid-in capital in the first quarters of 2014 and 2013 were related to these deferred tax assets.

Discontinued_Operations

Discontinued Operations	3 Months Ended
	Mar. 31, 2014
Discontinued Operations and Disposal Groups [Abstract]	'
Discontinued Operations	'
	(I)	Discontinued Operations.  In 2013, we shut down our DSL service assurance software product line, which was previously a component of our DSL Service Assurance Segment. We completed the shutdown in the fourth quarter of 2013 and no longer have any continuing involvement with, or cash flows from, this product line. The results of our DSL service assurance software product line have been included in discontinued operations in the consolidated statements of income and comprehensive income. The loss from discontinued operations attributable to the DSL service assurance software product line was (in thousands):
			Three Months Ended
			March 31,
			2014			2013
	Revenue		$	-		$	638
	Expenses			-			828
	Loss before income taxes			-			(190	)
	Income taxes			-			75
	Loss from discontinued operations		$	-		$	(115	)
	The consolidated statements of income and comprehensive income for the three months ended March 31, 2013 have been reclassified to reflect the effect of discontinued operations as set forth above.
	There were no assets or liabilities remaining on the balance sheet as of March 31, 2014 related to the DSL Service Assurance Segment. The following table is a rollforward of our exit costs liability accounts for the three months ended March 31, 2014 (in thousands):
			Severance			Total
			and Employee-Related Costs
	Balance at January 1, 2014		$	90		$	90
	Amount charged to expense			-			-
	Payments			(90	)		(90	)
	Balance at March 31, 2014		$	-		$	-

Fair_Value_Measurements_Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2014
Fair Value Disclosures [Abstract]	'
Schedule of assets that are measured at fair value on a recurring basis	'
	As of March 31, 2014, our assets that are measured at fair value on a recurring basis and whose carrying values approximate their respective fair values include the following (in thousands):
		Fair Value Measurement at March 31, 2014 Using:
		Quoted Prices in		Significant Other		Significant Unobservable Inputs
		Active Markets for		Observable Inputs
		Identical Assets
		(Level 1)		(Level 2)		(Level 3)
	Corporate debt securities	$	2,896	$	-	$	-
	Money market funds (included in cash and cash equivalents)		68,641
	Total	$	71,537	$	-	$	-
	As of December 31, 2013, our assets that are measured at fair value on a recurring basis and whose carrying values approximate their respective fair values include the following (in thousands):
		Fair Value Measurement at December 31, 2013 Using:
		Quoted Prices in		Significant Other		Significant
		Active Markets for		Observable Inputs		Unobservable
		Identical Assets				Inputs
		(Level 1)		(Level 2)		(Level 3)
	Corporate debt securities	$	2,754	$	-	$	-
	Money market funds (included in cash and cash equivalents)		68,556
	Total	$	71,310	$	-	$	-

Inventories_Tables

Inventories (Tables)	3 Months Ended
	Mar. 31, 2014
Inventory Disclosure [Abstract]	'
Schedule of inventories	'
		March 31,		December 31,
		2014		2013
	Raw materials	$	1	$	1,584
	Finished goods		-		17
	Total	$	1	$	1,601

Computation_of_Earnings_per_Sh1

Computation of Earnings per Share (Tables)	3 Months Ended
	Mar. 31, 2014
Earnings Per Share [Abstract]	'
Schedule of net income per share	'
		Three Months Ended
		March 31,
		2014		2013
	Net income:
	Income from continuing operations	$	880	$	1,972
	Loss from discontinued operations		-		(115	)
	Net income	$	880	$	1,857
	Shares outstanding:
	Weighted-average common shares outstanding		22,626		22,511
	Additional dilutive common stock equivalents		73		53
	Diluted shares outstanding		22,699		22,564
	Basic net income per share:
	Basic net income per share from continuing operations	$	0.04	$	0.09
	Basic net loss per share from discontinued operations		-		(0.01	)
	Basic net income per share	$	0.04	$	0.08
	Diluted net income per share:
	Diluted net income per share from continuing operations	$	0.04	$	0.09
	Diluted net loss per share from discontinued operations		-		(0.01	)
	Diluted net income per share	$	0.04	$	0.08

StockBased_Compensation_Tables

Stock-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2014
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]	'
Schedule of stock-based employee compensation expense included in unaudited consolidated statements of comprehensive income	'
		Three Months Ended
		March 31,
		2014		2013
	Cost of services	$	1	$	-
	Research and development		2		-
	Selling and marketing		1		-
	General and administrative		25		10
	Stock-based compensation expense	$	29	$	10

Business_Segments_Tables

Business Segments (Tables)	3 Months Ended
	Mar. 31, 2014
Segment Reporting [Abstract]	'
Schedule of revenues generated from geographic regions	'
		Three Months Ended
		March 31,
		2014		2013
	United States	$	5,496	$	3,510
	Rest of world		1,121		1,468
		$	6,617	$	4,978

Discontinued_Operations_Tables

Discontinued Operations (Tables)	3 Months Ended
	Mar. 31, 2014
Discontinued Operations and Disposal Groups [Abstract]	'
Schedule of loss from discontinued operations attributable to the DSL service assurance software product line	'
		Three Months Ended
		March 31,
		2014			2013
	Revenue	$	-		$	638
	Expenses		-			828
	Loss before income taxes		-			(190	)
	Income taxes		-			75
	Loss from discontinued operations	$	-		$	(115	)
Schedule of rollforward of the exit costs liability accounts	'
		Severance			Total
		and Employee-Related Costs
	Balance at January 1, 2014	$	90		$	90
	Amount charged to expense		-			-
	Payments		(90	)		(90	)
	Balance at March 31, 2014	$	-		$	-

Fair_Value_Measurements_Assets

Fair Value Measurements - Assets measured at fair value on a recurring basis (Details) (Fair value on recurring basis, USD $)	Mar. 31, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Fair Value Measurement, Quoted Prices in Active Markets for Identical Assets (Level 1)	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Total assets measured at fair value	$71,537	$71,310
Fair Value Measurement, Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate debt securities	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Corporate debt securities, fair value	2,896	2,754
Fair Value Measurement, Quoted Prices in Active Markets for Identical Assets (Level 1) | Money market funds (included in cash and cash equivalents)	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Money market funds (included in cash and cash equivalents)	68,641	68,556
Fair Value Measurement, Significant Other Observable Inputs (Level 2)	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Total assets measured at fair value	'	'
Fair Value Measurement, Significant Other Observable Inputs (Level 2) | Corporate debt securities	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Corporate debt securities, fair value	'	'
Fair Value Measurement, Significant Other Observable Inputs (Level 2) | Money market funds (included in cash and cash equivalents)	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Money market funds (included in cash and cash equivalents)	'	'
Fair Value Measurement, Significant Unobservable Inputs (Level 3)	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Total assets measured at fair value	'	'
Fair Value Measurement, Significant Unobservable Inputs (Level 3) | Corporate debt securities	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Corporate debt securities, fair value	'	'
Fair Value Measurement, Significant Unobservable Inputs (Level 3) | Money market funds (included in cash and cash equivalents)	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Money market funds (included in cash and cash equivalents)	'	'

Fair_Value_Measurements_Detail

Fair Value Measurements (Detail Textuals) (USD $)	Mar. 31, 2014	Dec. 31, 2013	Mar. 31, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'	'	'
Cash and cash equivalents, primarily include money market funds	$74,368	$72,660	$72,507	$71,074
Fair value on recurring basis | Fair Value Measurement, Quoted Prices in Active Markets for Identical Assets (Level 1)	'	'	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'	'	'
Cash and cash equivalents, primarily include money market funds	68,641	68,556	'	'
Fair value on recurring basis | Corporate debt securities | Fair Value Measurement, Quoted Prices in Active Markets for Identical Assets (Level 1)	'	'	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'	'	'
Available-for-sale investments	$2,896	$2,754	'	'

Inventories_Summary_of_invento

Inventories - Summary of inventories (Details) (USD $)	Mar. 31, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Inventory Disclosure [Abstract]	'	'
Raw materials	$1	$1,584
Finished goods	'	17
Total	$1	$1,601

Computation_of_Earnings_per_Sh2

Computation of Earnings per Share - Summary of net income per share (Details) (USD $)	3 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Net income:	'	'
Income from continuing operations	$880	$1,972
Loss from discontinued operations	'	-115
Net income	$880	$1,857
Shares outstanding:	'	'
Weighted-average common shares outstanding (in shares)	22,626	22,511
Additional dilutive common stock equivalents (in shares)	73	53
Diluted shares outstanding (in shares)	22,699	22,564
Basic net income per share:	'	'
Basic net income per share from continuing operations (in dollars per share)	$0.04	$0.09
Basic net loss per share from discontinued operations (in dollars per share)	'	($0.01)
Basic net income per share (in dollars per share)	$0.04	$0.08
Diluted net income per share:	'	'
Diluted net income per share from continuing operations (in dollars per share)	$0.04	$0.09
Diluted net loss per share from discontinued operations (in dollars per share)	'	($0.01)
Diluted net income per share (in dollars per share)	$0.04	$0.08

Computation_of_Earnings_per_Sh3

Computation of Earnings per Share (Detail Textuals) (Options)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Options	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]	'	'
Anti-dilutive common stock Share purchase (in shares)	821,838	821,838

StockBased_Compensation_Summar

Stock-Based Compensation - Summary of stock-based employee compensation expenses (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]	'	'
Stock-based compensation	$29	$10
Cost of services	'	'
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]	'	'
Stock-based compensation	1	'
Research and development	'	'
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]	'	'
Stock-based compensation	2	'
Selling and marketing	'	'
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]	'	'
Stock-based compensation	1	'
General and administrative	'	'
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]	'	'
Stock-based compensation	$25	$10

StockBased_Compensation_Detail

Stock-Based Compensation (Detail Textuals) (Unrestricted Stock Grants, 2001 Nonqualified Stock Plan, Directors, officers and employees, USD $)	3 Months Ended	9 Months Ended	12 Months Ended	1 Months Ended	3 Months Ended	6 Months Ended	9 Months Ended
	Mar. 31, 2014	Dec. 31, 2014	Dec. 31, 2014	Apr. 30, 2013	Jun. 30, 2013	Dec. 31, 2013	Dec. 31, 2013
	2014 Grant	2014 Grant	2014 Grant	2013 Grant	2013 Grant	2013 Grant	2013 Grant
		Subsequent Event	Subsequent Event
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'	'	'	'	'
Number of shares granted (in shares)	152,000	'	'	130,000	'	'	'
Number of shares issued (in shares)	'	'	'	'	51,374	49,936	'
Number of common stock shares surrendered by employees withholding taxes	'	'	'	'	13,626	15,064	'
Common stock value surrendered by employees withholding taxes	'	'	'	'	$71,000	$92,000	'
Stock-based compensation expense	$19,000	$857,000	$876,000	'	'	'	$623,000

Business_Segments_Revenues_gen

Business Segments - Revenues generated following geographic regions (Details ) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Segment Reporting Information [Line Items]	'	'
Revenue	$6,617	$4,978
United States	'	'
Segment Reporting Information [Line Items]	'	'
Revenue	5,496	3,510
Rest of World	'	'
Segment Reporting Information [Line Items]	'	'
Revenue	$1,121	$1,468

Income_Taxes_Detail_Textuals

Income Taxes (Detail Textuals) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013
Income Tax Disclosure [Abstract]	'	'	'
Income tax expense	$517,000	$1,091,000	'
Income tax U.S. statutory rate	34.00%	34.00%	'
Equity adjustment to additional paid-in capital	600,000	800,000	'
Deferred tax assets	1,100,000	'	'
Total deferred tax assets of federal research and development credit carryforwards	'	'	4,900,000
Total deferred tax assets of state research and development credit carryforwards	'	'	$700,000

Discontinued_Operations_Loss_f

Discontinued Operations - Loss from discontinued operations attributable to DSL service assurance software product line (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]	'	'
Loss from discontinued operations	'	($115)
DSL service assurance software product line	'	'
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]	'	'
Revenue	'	638
Expenses	'	828
Loss before income taxes	'	-190
Income taxes	'	75
Loss from discontinued operations	'	($115)

Discontinued_Operations_Exit_c

Discontinued Operations - Exit costs liability accounts (Details 1) (DSL Service Assurance Segment, Discontinued Operations, USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014
Restructuring Reserve [Roll Forward]	'
Balance at January 1, 2014	$90
Amount charged to expense	'
Payments	-90
Balance at March 31, 2014	'
Severance and Employee-Related Costs	'
Restructuring Reserve [Roll Forward]	'
Balance at January 1, 2014	90
Amount charged to expense	'
Payments	-90
Balance at March 31, 2014	'