Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Oct. 28, 2013 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Entity Registrant Name | 'EDGEWATER TECHNOLOGY INC/DE/ | ' |
Entity Central Index Key | '0001017968 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 10,880,340 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $17,487 | $16,651 |
Accounts receivable, net of allowance of $250 | 19,001 | 18,281 |
Prepaid expenses and other current assets | 1,150 | 1,418 |
Total current assets | 37,638 | 36,350 |
Property and equipment, net | 1,613 | 1,949 |
Intangible assets, net | 1,115 | 1,194 |
Goodwill | 12,049 | 12,049 |
Other assets | 249 | 247 |
Total assets | 52,664 | 51,789 |
Current liabilities: | ' | ' |
Accounts payable | 598 | 593 |
Accrued liabilities | 14,369 | 14,280 |
Deferred revenue | 1,462 | 2,969 |
Total current liabilities | 16,429 | 17,842 |
Other liabilities | 832 | 1,272 |
Total liabilities | 17,261 | 19,114 |
Stockholders' equity: | ' | ' |
Preferred stock, $.01 par value; 2,000 shares authorized, no shares issued or outstanding | ' | ' |
Common stock, $.01 par value; 48,000 shares authorized, 29,736 shares issued as of September 30, 2013 and December 31, 2012, 10,911 and 10,897 shares outstanding as of September 30, 2013 and December 31, 2012, respectively | 297 | 297 |
Paid-in capital | 212,170 | 213,238 |
Treasury stock, at cost, 18,825 and 18,839 shares at September 30, 2013 and December 31, 2012, respectively | -124,284 | -125,806 |
Accumulated other comprehensive loss | -146 | -123 |
Retained deficit | -52,634 | -54,931 |
Total stockholders' equity | 35,403 | 32,675 |
Total liabilities and stockholders' equity | $52,664 | $51,789 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, except Per Share data, unless otherwise specified | ||
Statement Of Financial Position [Abstract] | ' | ' |
Accounts receivable, allowance | $250 | $250 |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 2,000 | 2,000 |
Preferred stock, shares issued | ' | ' |
Preferred stock, shares outstanding | ' | ' |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 48,000 | 48,000 |
Common stock, shares issued | 29,736 | 29,736 |
Common stock, shares outstanding | 10,911 | 10,897 |
Treasury stock, shares | 18,825 | 18,839 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Revenue: | ' | ' | ' | ' |
Service revenue | $21,389 | $20,232 | $62,684 | $63,615 |
Software revenue | 2,260 | 2,032 | 8,568 | 7,038 |
Reimbursable expenses | 1,750 | 1,901 | 5,523 | 5,980 |
Total revenue | 25,399 | 24,165 | 76,775 | 76,633 |
Cost of revenue: | ' | ' | ' | ' |
Project and personnel costs | 13,071 | 12,401 | 39,837 | 39,107 |
Software costs | 921 | 1,051 | 4,577 | 4,709 |
Reimbursable expenses | 1,750 | 1,901 | 5,523 | 5,980 |
Total cost of revenue | 15,742 | 15,353 | 49,937 | 49,796 |
Gross profit | 9,657 | 8,812 | 26,838 | 26,837 |
Operating expenses: | ' | ' | ' | ' |
Selling, general and administrative | 7,590 | 7,499 | 23,231 | 24,001 |
Depreciation and amortization | 302 | 452 | 925 | 1,342 |
Total operating expenses | 7,892 | 7,951 | 24,156 | 25,343 |
Operating income | 1,765 | 861 | 2,682 | 1,494 |
Other (income) expense, net | -81 | -95 | 92 | 10 |
Income before income taxes | 1,846 | 956 | 2,590 | 1,484 |
Tax provision | 74 | 163 | 293 | 382 |
Net income | 1,772 | 793 | 2,297 | 1,102 |
Comprehensive income: | ' | ' | ' | ' |
Currency translation adjustments | -2 | -8 | -23 | -20 |
Total comprehensive income | $1,770 | $785 | $2,274 | $1,082 |
Net income per share: | ' | ' | ' | ' |
Basic net income per share of common stock | $0.17 | $0.07 | $0.21 | $0.10 |
Diluted net income per share of common stock | $0.14 | $0.07 | $0.19 | $0.10 |
Shares used in computing basic net income per share of common stock | 10,732 | 11,137 | 10,800 | 11,258 |
Shares used in computing diluted net income per share of common stock | 12,233 | 11,677 | 11,785 | 11,680 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net income | $2,297 | $1,102 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 1,183 | 1,437 |
Share-based compensation expense | 1,174 | 1,005 |
Deferred income taxes | 25 | ' |
Fair value adjustment of contingent earnout consideration | ' | -231 |
Changes in operating accounts: | ' | ' |
Accounts receivable | -749 | 636 |
Prepaid expenses and other current assets | 262 | -699 |
Accounts payable | 5 | -2,458 |
Accrued liabilities and other liabilities | -371 | 1,812 |
Deferred revenue | -1,507 | 2,310 |
Net cash provided by operating activities | 2,319 | 4,914 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Capitalization of product development costs | -289 | -206 |
Purchases of property and equipment | -280 | -322 |
Acquisition of intellectual property | -200 | ' |
Net cash used in investing activities | -769 | -528 |
CASH FLOW FROM FINANCING ACTIVITIES: | ' | ' |
Purchases of treasury stock | -1,513 | -2,164 |
Proceeds from employee stock plans and stock option exercises | 793 | 470 |
Payments on capital leases | ' | -52 |
Net cash used in financing activities | -720 | -1,746 |
Effects of exchange rates on cash | 6 | 1 |
Net increase in cash and cash equivalents | 836 | 2,641 |
CASH AND CASH EQUIVALENTS, beginning of period | 16,651 | 10,333 |
CASH AND CASH EQUIVALENTS, end of period | 17,487 | 12,974 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ' | ' |
Cash paid for income taxes | 184 | 534 |
Issuance of restricted stock awards | $1,051 | ' |
Organization
Organization | 9 Months Ended | |
Sep. 30, 2013 | ||
Accounting Policies [Abstract] | ' | |
Organization | ' | |
1 | ORGANIZATION: | |
Edgewater Technology, Inc. (“Edgewater” or the “Company”) is a strategic consulting firm that brings a synergistic blend of specialty services to drive transformational change that (1) improves process, (2) reduces costs and (3) increases revenue. Our solutions are tailored to the C-level executives in the upper mid-market and Global 2000. Headquartered in Wakefield, Massachusetts, we work with customers to reduce costs, improve process and increase revenue through the judicious use of technology. | ||
In this Quarterly Report on Form 10-Q (the “Form 10-Q”), we use the terms “Edgewater,” “Edgewater Technology,” “we,” “our Company,” “the Company,” “our” and “us” to refer to Edgewater Technology, Inc. and its wholly-owned subsidiaries, which are described in our 2012 Annual Report on Form 10-K, as filed with the Securities and Exchange Commission (the “SEC”) on March 8, 2013 (the “2012 Form 10-K”). |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended | |
Sep. 30, 2013 | ||
Accounting Policies [Abstract] | ' | |
Basis of Presentation | ' | |
2 | BASIS OF PRESENTATION: | |
The accompanying unaudited condensed consolidated financial statements have been prepared by Edgewater pursuant to the rules and regulations of the SEC regarding interim financial reporting. Certain information and note disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted pursuant to those rules and regulations, although we believe that the disclosures made are adequate to ensure the information presented is not misleading. | ||
The accompanying unaudited condensed consolidated financial statements reflect all adjustments (which were of a normal, recurring nature) that, in the opinion of management, are necessary to present fairly our financial position, results of operations and cash flows as of and for the interim periods presented. All intercompany transactions have been eliminated in the accompanying unaudited condensed consolidated financial statements. These financial statements should be read in conjunction with the audited financial statements and notes thereto included in our 2012 Form 10-K. | ||
The results of operations for the three and nine months ended September 30, 2013 are not necessarily indicative of the results to be expected for any future period or the full fiscal year. Our revenue and earnings may fluctuate from quarter-to-quarter based on factors within and outside our control, including variability in demand for information technology professional services, the length of the sales cycle associated with our service offerings, the number, size and scope of our projects and the efficiency with which we utilize our employees. Substantially all of our revenue is generated within North America. | ||
Other comprehensive income consists of net income plus or minus any periodic currency translation adjustments. |
Revenue_Recognition
Revenue Recognition | 9 Months Ended | |
Sep. 30, 2013 | ||
Text Block [Abstract] | ' | |
Revenue Recognition | ' | |
3 | REVENUE RECOGNITION: | |
Our Company generates revenue primarily through the provision of consulting services and the resale of third-party, off-the-shelf software and maintenance. | ||
We generate revenue by providing consulting services under written service contracts with our customers. The service contracts we enter into generally fall into three specific categories: time and materials, fixed-price and retainer. | ||
We consider amounts to be earned once evidence of an arrangement has been obtained, services are delivered, fees are fixed or determinable and collectability is reasonably assured. We establish billing terms at the time at which the project deliverables and milestones are agreed. Our standard payment terms are 30 days from invoice date. Out-of-pocket reimbursable expenses charged to customers are reflected as revenue. | ||
When a customer enters into a time and materials, fixed-price or a periodic retainer-based contract, the Company recognizes revenue in accordance with its evaluation of the deliverables in each contract. If the deliverables represent separate units of accounting, the Company then measures and allocates the consideration from the arrangement to the separate units, based on vendor specific objective evidence (“VSOE”) of the value for each deliverable. | ||
The revenue under time and materials contracts is recognized as services are rendered and performed at contractually agreed upon rates. Revenue pursuant to fixed-price contracts is recognized under the proportional performance method of accounting. We routinely evaluate whether revenue and profitability should be recognized in the current period. | ||
We estimate the proportional performance on our fixed-price contracts on a monthly basis utilizing hours incurred to date as a percentage of total estimated hours to complete the project. This method is used because reasonably dependable estimates of costs and revenue earned can be made, based on historical experience and milestones identified in any particular contract. If we do not have a sufficient basis to measure progress toward completion, revenue is recognized upon completion of performance, subject to any warranty provisions or other project management assessments as to the status of work performed. | ||
Estimates of total project costs are continuously monitored during the term of an engagement. There are situations where the number of hours to complete projects may either exceed (or be less than) our original estimate, as a result of an increase (or decrease) in project scope, unforeseen events that arise, or the inability of the client or the delivery team to fulfill their responsibilities. Accordingly, recorded revenues and costs are subject to revision throughout the life of a project based on current information and historical trends. Such revisions may result in increases or decreases to revenue and income and are reflected in the consolidated financial statements in the periods in which they are first identified. | ||
If our initial estimates of the resources required or the scope of work to be performed on a contract are inaccurate, or we do not manage the project properly within the planned time period, a provision for estimated losses on incomplete projects is made. Any known or probable losses on projects are charged to operations in the period in which such losses are determined. A formal project review process takes place quarterly, although projects are evaluated on an ongoing basis. Management reviews the estimated total direct costs on each contract to determine if the estimated amounts are accurate, and estimates are adjusted as needed in the period revised estimates are made. No losses were recognized on fixed price contracts during the three- or nine-month periods ended September 30, 2013 or 2012. | ||
We also perform services on a periodic retainer basis under infrastructure service contracts, which include monthly hosting and support services. Revenue under periodic retainer-based contracts is recognized ratably over the contract period, as outlined within the respective contract. In the event additional services are required, above the minimum retained or contracted amount, then such services are billed on a time and materials basis. | ||
Typically, the Company provides warranty services on its fixed-price contracts related to providing customers with the ability to have any “design flaws” remedied and/or have our Company “fix” routine defects. The warranty services, as outlined in the respective contracts, are provided for a specific period of time after a project is complete. The Company values the warranty services based upon historical labor hours incurred for similar services at standard billing rates. Revenue related to the warranty provisions within our fixed-price contracts is recognized as the services are performed or the revenue is earned. The warranty period is typically for a 30-60 day period after the project is complete. | ||
Customer prepayments, even if nonrefundable, are deferred (classified as deferred revenue on the condensed consolidated balance sheets) and recognized over future periods as services are performed. | ||
Software revenue represents the resale of certain third-party off-the-shelf software and maintenance and has historically been recorded on a gross basis provided we act as a principal in the transaction, which we have determined based upon several factors, including, but not limited to, the fact that we have credit risk and we set the price to the end user. In the event we do not meet the requirements to be considered a principal in the software sale transaction and act as an agent, software revenue is recorded on a net basis. | ||
The majority of the software sold by the Company is delivered electronically. For software that is delivered electronically, we consider delivery to have occurred when the customer either (a) takes possession of the software via a download (that is, when the customer takes possession of the electronic data on its hardware), or (b) has been provided with access codes that allow the customer to take immediate possession of the software on its hardware pursuant to an agreement or purchase order for the software. | ||
The Company enters into multiple element arrangements which typically include software, post-contract support (or maintenance), and consulting services. Consistent with the software described above, maintenance that is in the form of a pass through transaction is recognized upon delivery of the software, as all related warranty and maintenance is performed by the primary software vendor and not the Company. Maintenance fee revenue for the Company’s software products, which is inconsequential in all years presented, is recognized ratably over the term of the arrangements, which are generally for a one-year period. The Company has established VSOE with respect to the services provided based on the price charged when the services are sold separately. The Company has established VSOE for maintenance based upon the stated renewal rate. | ||
In June 2012, Microsoft Corporation agreed to purchase Edgewater Fullscope’s Process Industries 2 (“PI2”) software and intellectual property along with certain services. The sale of PI2 is a significant multiple element contract. This contract includes $3.25 million of license consideration and subsequent development and training services. We have determined that the license does not have stand-alone value without the services, and thus the license and services are being accounted for as one unit. The license revenue is being recognized as revenue over the period the services are being performed. We recognized $614 thousand and $2.0 million of revenue, reported as Software revenue in our Consolidated Statement of Comprehensive Income, during the three- and nine-month periods ended September 30, 2013, respectively. We recognized $354 thousand of revenue, reported as Software revenue in our Consolidated Statement of Comprehensive Income, during the three- and nine-month periods ended September 30, 2012. |
ShareBased_Compensation
Share-Based Compensation | 9 Months Ended | |
Sep. 30, 2013 | ||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | |
Share-Based Compensation | ' | |
4 | SHARE-BASED COMPENSATION: | |
Share-based compensation expense under all of the Company’s share-based plans was $336 thousand and $1.2 million for the three- and nine-month periods ended September 30, 2013, respectively. Share-based compensation expense under all of the Company’s share-based plans was $298 thousand and $1.0 million for the three- and nine-month periods ended September 30, 2012, respectively. | ||
Cash received from the employee stock purchase plan (“ESPP”) and through stock option exercises was $377 thousand and $793 thousand during the three- and nine-month periods ended September 30, 2013, respectively. Cash received from ESPP and stock option exercises was $230 thousand and $470 thousand during the three- and nine-month periods ended September 30, 2012, respectively. | ||
As of September 30, 2013, unrecognized compensation expense, net of estimated forfeitures, related to the unvested portion of all share-based compensation arrangements was approximately $1.9 million and is expected to be recognized over a weighted-average period of 1.2 years. | ||
The Company intends to use previously purchased treasury shares for shares issued for options, restricted share awards and ESPP purchases. Shares may also be issued from authorized but unissued share reserves. |
Income_Taxes
Income Taxes | 9 Months Ended | |
Sep. 30, 2013 | ||
Income Tax Disclosure [Abstract] | ' | |
Income Taxes | ' | |
5 | INCOME TAXES: | |
The Company recorded a tax provision of $74 thousand and $293 thousand for the three- and nine-month periods ended September 30, 2013, respectively. The Company recorded a tax provision of $163 thousand and $382 thousand for the three- and nine-month periods ended September 30, 2012, respectively. The reported tax expense for the three- and nine-month periods ended September 30, 2013, is based upon an estimated annual effective tax rate of 4.0% and 11.3%, respectively, related to our combined federal and state income tax rates, foreign income tax provisions and the recognition of U.S. deferred tax liabilities for differences between the book and tax basis of goodwill. The reported estimated annual effective tax rate is lower than an anticipated statutory rate due to a full valuation allowance being provided against our deferred tax assets, which includes significant federal net operating loss carryforwards. The reported tax expense for the three- and nine-month periods ended September 30, 2012 is based upon an estimated annual effective tax rate of 17.0% and 25.7%, respectively. | ||
Our policy is to classify interest and penalties related to unrecognized tax benefits as income tax expense. This policy has been consistently applied in all periods. During the three- and nine-month periods ended September 30, 2013, we reduced income tax expense by $(88) thousand and $(45) thousand, respectively, from the reversal of previously recorded unrecognized state income tax-related tax benefits (and associated penalties and interest) as a result of the expiration of certain statutes of limitations. Similarly, during the three-month period ended September 30, 2012, we reduced income tax expense by $(41) thousand in connection with the reversal of certain state unrecognized tax benefits and associated accrued penalties and interest. No income tax expense was recognized related to our unrecognized tax benefits during the nine-month period ended September 30, 2012. | ||
We have reviewed the tax positions taken, or to be taken, in our tax returns for all tax years currently open to examination by a taxing authority. As of September 30, 2013, the gross amount of unrecognized tax benefits exclusive of interest and penalties was $108 thousand. Other than certain unrecognized tax benefits for which the statute of limitations expired during the third quarter of 2013, we have identified no other uncertain tax positions for which it is reasonably possible that the total amount of unrecognized tax benefits will significantly increase or decrease within the twelve months ending September 30, 2014. We remain subject to examination until the statute of limitations expires for each respective tax jurisdiction. | ||
We have deferred tax assets that have arisen primarily as a result of timing differences, net operating loss carryforwards and tax credits. Our ability to realize a deferred tax asset is based on our ability to generate sufficient future taxable income within the applicable carryforward period and subject to any applicable limitations. We assess, on a routine periodic basis, the estimated future realizability of the gross carrying value of our deferred tax assets on a more likely than not basis. Our periodic assessments take into consideration both positive evidence (future profitability projections for example) and negative evidence (recent and historical financial performance for example) as it relates to evaluating the future recoverability of our deferred tax assets. | ||
We have a full valuation allowance against our deferred tax assets at September 30, 2013. The establishment of a full valuation allowance against the gross carrying value of our deferred tax assets does not prohibit or limit the Company’s ability to realize a tax benefit in future periods. All existing deferred tax assets, net operating loss carryforwards and credits will be available, subject to possible statutory limitations, to reduce certain future federal and state income tax obligations. |
Fair_Value_Measurement
Fair Value Measurement | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair Value Measurement | ' | ||||||||||||||||
6 | FAIR VALUE MEASUREMENT: | ||||||||||||||||
We utilize the following valuation hierarchy for disclosure of the inputs to valuation used to measure fair value. This hierarchy prioritizes the inputs into three broad levels as follows: | |||||||||||||||||
• | Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. | ||||||||||||||||
• | Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. | ||||||||||||||||
• | Level 3 inputs are unobservable inputs based on our own assumptions used to measure assets and liabilities at fair value. | ||||||||||||||||
A financial asset or liability’s classification within the hierarchy is determined based upon the lowest level input that is significant to the fair value measurement. | |||||||||||||||||
As of September 30, 2013, the Company’s only financial assets and liabilities required to be measured on a recurring basis were our money market investments. As of December 31, 2012, the Company’s only financial assets and liabilities required to be measured on a recurring basis were our money market investments and the accrued contingent earnout consideration payable in connection with the Company’s acquisition of Meridian Consulting International (“Meridian”). | |||||||||||||||||
The following table represents the Company’s fair value hierarchy for its financial assets and liabilities required to be measured on a recurring basis: | |||||||||||||||||
Basis of Fair Value Measurements | |||||||||||||||||
Balance | Quoted Prices | Significant | Significant | ||||||||||||||
in Active Markets | Other | Unobservable | |||||||||||||||
for Identical Items | Observable | Inputs | |||||||||||||||
(Level 1) | Inputs | (Level 3) | |||||||||||||||
(Level 2) | |||||||||||||||||
(In Thousands) | |||||||||||||||||
Balance at September 30, 2013: | |||||||||||||||||
Financial assets: | |||||||||||||||||
Money market investment | $ | 4,084 | $ | 4,084 | $ | — | $ | — | |||||||||
Total financial assets | $ | 4,084 | $ | 4,084 | $ | — | $ | — | |||||||||
Balance at December 31, 2012: | |||||||||||||||||
Financial assets: | |||||||||||||||||
Money market investment | $ | 4,084 | $ | 4,084 | $ | — | $ | — | |||||||||
Total financial assets | $ | 4,084 | $ | 4,084 | $ | — | $ | — | |||||||||
The Company had historically classified its liability for contingent earnout consideration relating to its acquisition of Meridian within Level 3 of the fair value hierarchy because the fair value is determined using significant unobservable inputs, which includes probability weighted cash flows. The former Meridian stockholders’ third and final twelve-month earnout period concluded in May 2013. None of the minimum financial performance measures necessary to earn additional contingent earnout consideration were achieved. | |||||||||||||||||
A reconciliation of the beginning and ending Level 3 net liabilities is as follows: | |||||||||||||||||
Fair Value | |||||||||||||||||
Measurements | |||||||||||||||||
Using Significant | |||||||||||||||||
Unobservable | |||||||||||||||||
Inputs | |||||||||||||||||
(Level 3) | |||||||||||||||||
(In Thousands) | |||||||||||||||||
Balance at January 1, 2012 | $ | 231 | |||||||||||||||
Change in fair value related to Meridian contingent earnout consideration | (231 | ) | |||||||||||||||
Balance at December 31, 2012 | — | ||||||||||||||||
Change in fair value related to Meridian contingent earnout consideration | — | ||||||||||||||||
Ending balance at September 30, 2013 | $ | — | |||||||||||||||
The Company routinely examined, on a periodic basis, actual results in comparison to the performance measurements utilized in the earnout calculation and assesses the carrying value of the contingent earnout consideration. No adjustment was made to fair value during the three- or nine-month periods ended September 30, 2013. During the three- and nine-month periods ended September 30, 2012, the Company decreased the estimated accrual of contingent earnout consideration earned by the former Meridian stockholders by $246 thousand and $231 thousand, respectively. The reduction was due to our estimate that Meridian’s projected financial operating performance was trending below the required minimum financial performance measures necessary for the former Meridian stockholders to achieve additional contingent consideration payments. | |||||||||||||||||
No financial instruments were transferred into or out of Level 3 classification during the three- or nine-month period ended September 30, 2013. | |||||||||||||||||
As of September 30, 2013 and December 31, 2012, the fair values of our other financial instruments, which include cash and cash equivalents, accounts receivable and accounts payable, approximate the carrying amounts of the respective asset and/or liability due to the short-term nature of these financial instruments. |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||
Goodwill and Intangible Assets | ' | ||||
7 | GOODWILL AND INTANGIBLE ASSETS: | ||||
There has been no change in the Company’s recorded goodwill balance during the three- or nine-month periods ended September 30, 2013 or 2012. Our annual goodwill and intangible assets measurement date is December 2. | |||||
We amortize our intangible assets that have finite lives using either the straight-line method or based on estimated future cash flows to approximate the pattern in which the economic benefit of the asset will be utilized. Amortization expense was $101 thousand and $310 thousand during the three- and nine-month periods ended September 30, 2013, respectively. Amortization expense was $241 thousand and $723 thousand during the three- and nine-month periods ended September 30, 2012, respectively. This amortization expense relates to certain non-competition covenants, trade names and customer lists, which expire between 2012 and 2016. | |||||
The Company recorded amortization from capitalized internally developed software (intellectual property) (reported as part of our software expense) of $77 thousand and $258 thousand during the three- and nine-month periods ended September 30, 2013, respectively. The Company recorded amortization from capitalized internally developed software (reported as part of our software expense) of $53 thousand and $95 thousand during the three- and nine-month periods ended September 30, 2012, respectively. | |||||
Estimated annual amortization expense (including amortization expense associated with capitalized software costs) for the current year and the following four years ending December 31, is as follows: | |||||
Amortization | |||||
Expense | |||||
(In Thousands) | |||||
2013 | $ | 663 | |||
2014 | $ | 583 | |||
2015 | $ | 265 | |||
2016 | $ | 172 | |||
2017 | $ | — |
Accrued_Liabilities
Accrued Liabilities | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Text Block [Abstract] | ' | ||||||||
Accrued Liabilities | ' | ||||||||
8 | ACCRUED LIABILITIES: | ||||||||
Accrued liabilities as of September 30, 2013 and December 31, 2012 consisted of the following: | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
(In Thousands) | |||||||||
Accrued bonuses | $ | 2,524 | $ | 2,245 | |||||
Accrued vacation | 2,275 | 1,838 | |||||||
Accrued payroll related liabilities | 2,217 | 1,364 | |||||||
Accrued commissions | 2,122 | 2,229 | |||||||
Income tax related accruals | 709 | 498 | |||||||
Accrued software expense | 673 | 1,668 | |||||||
Short-term portion of lease abandonment accrual | 580 | 580 | |||||||
Deferred rent | 559 | 526 | |||||||
Accrued sales and use tax | 308 | 1,482 | |||||||
Other accrued expenses | 2,402 | 1,850 | |||||||
Total | $ | 14,369 | $ | 14,280 | |||||
Other long-term liabilities as of September 30, 2013 and December 31, 2012 consisted of the following: | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
(In Thousands) | |||||||||
Long-term portion of lease abandonment accrual | $ | 722 | $ | 1,179 | |||||
Long-term portion of deferred tax liability | 110 | 93 | |||||||
Total | $ | 832 | $ | 1,272 | |||||
Net_Income_Per_Share
Net Income Per Share | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Net Income Per Share | ' | ||||||||||||||||
9 | NET INCOME PER SHARE: | ||||||||||||||||
A reconciliation of net income and weighted average shares used in computing basic and diluted net income per share is as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(In Thousands, Except Per Share Data) | |||||||||||||||||
Basic net income per share: | |||||||||||||||||
Net income applicable to common shares | $ | 1,772 | $ | 793 | $ | 2,297 | $ | 1,102 | |||||||||
Weighted average common shares outstanding | 10,732 | 11,137 | 10,800 | 11,258 | |||||||||||||
Basic net income per share of common stock | $ | 0.17 | $ | 0.07 | $ | 0.21 | $ | 0.1 | |||||||||
Diluted net income per share: | |||||||||||||||||
Net income applicable to common shares | $ | 1,772 | $ | 793 | $ | 2,297 | $ | 1,102 | |||||||||
Weighted average common shares outstanding | 10,732 | 11,137 | 10,800 | 11,258 | |||||||||||||
Dilutive effects of stock options | 1,501 | 540 | 985 | 422 | |||||||||||||
Weighted average common shares, assuming dilutive effect of stock options | 12,233 | 11,677 | 11,785 | 11,680 | |||||||||||||
Diluted net income per share of common stock | $ | 0.14 | $ | 0.07 | $ | 0.19 | $ | 0.1 | |||||||||
Share-based awards, inclusive of all grants made under the Company’s equity plans, for which either the stock option exercise price or the fair value of the restricted share award exceeds the average market price over the period, have an anti-dilutive effect on earnings per share, and accordingly, are excluded from the diluted computations for all periods presented. Had such shares been included, shares for the diluted computation would have increased by approximately 478 thousand and 1.0 million in the three- and nine-month periods ended September 30, 2013, respectively. The diluted computation would have increased by approximately 1.2 million and 1.3 million, respectively, in the three- and nine-month periods ended September 30, 2012. As of September 30, 2013 and 2012, there were approximately 4.3 million and 4.2 million share-based awards outstanding, respectively, under the Company’s equity plans. |
Stock_Repurchase_Program
Stock Repurchase Program | 9 Months Ended | |
Sep. 30, 2013 | ||
Equity [Abstract] | ' | |
Stock Repurchase Program | ' | |
10 | STOCK REPURCHASE PROGRAM: | |
In December 2007, our Board of Directors (the “Board”) authorized a stock repurchase program for up to $5.0 million of common stock on the open market or through privately negotiated transactions from time to time through December 31, 2008 (the “Stock Repurchase Program”). The Board subsequently amended the Stock Repurchase Program, authorizing both an increase to and an extension of the Stock Repurchase Program. The Stock Repurchase Program, as amended, had a maximum purchase value of shares of $16.1 million (the “Purchase Authorization”) and was scheduled to expire on September 20, 2013 (the “Repurchase Period”). In September 2013, the Board approved both a $7.0 million increase to the Purchase Authorization, to $23.1 million, and an extension of the Repurchase Period to September 19, 2014. As of September 30, 2013, there was $10.0 million of remaining Purchase Authorization under the Stock Repurchase Program. | ||
The timing and amount of the purchases will be based upon market conditions, securities law considerations and other factors. The Stock Repurchase Program does not obligate the Company to acquire a specific number of shares in any period and may be modified, suspended, extended or discontinued at any time, without prior notice. | ||
The Company repurchased a total of 365 thousand shares of common stock during the nine- month period ended September 30, 2013 at an aggregate purchase price of $1.5 million. The Company did not repurchase any shares during the three-month period ended September 30, 2013. The Company repurchased a total of 380 thousand and 568 thousand shares of common stock during the three- and nine-month periods ended September 30, 2012, respectively, at an aggregate purchase price of $1.5 million and $2.2 million, respectively. |
Fullscope_Embezzlement
Fullscope Embezzlement | 9 Months Ended | |
Sep. 30, 2013 | ||
Extraordinary And Unusual Items [Abstract] | ' | |
Fullscope Embezzlement | ' | |
11. FULLSCOPE | EMBEZZLEMENT: | |
During the second quarter of 2010, the Company discovered embezzlement activities at Fullscope, one of its wholly-owned subsidiaries, which was acquired by the Company in December 2009 (the “Fullscope Embezzlement Issue”). Based upon the results of forensic accounting procedures, we identified that the embezzlement activities occurred for an extended period prior to our acquisition of Fullscope and also during the first and second quarter of 2010. | ||
The Company incurred a majority of its embezzlement-related expenses during fiscal 2010 in connection with its identification and investigation of the embezzlement activity. Embezzlement-related expenses incurred in the three- and nine-month periods ended September 30, 2013 were not material. | ||
During the fourth quarter of 2012, the Company began to file tax returns and pay sales and use tax liabilities related to the Fullscope Embezzlement (which were created by the methods employed by a former employee of Fullscope to conceal the discovered fraudulent activity). As of September 30, 2013, the Company had made payments totaling $1.2 million associated with the sales and use tax liabilities. As of September 30, 2013, the remaining accrual for pre-acquisition sales and use tax exposure was $273 thousand. The Company expects to continue to make payments associated with these liabilities during the fourth quarter of 2013. | ||
The Company has incurred significant expenses related to the investigation and related to the filing of sales and use tax returns. The Company anticipates that it may continue to incur additional expenses associated with the Fullscope Embezzlement Issue. We intend to aggressively pursue recovery of these expenses through a claim against existing escrow accounts established in connection with the acquisition of Fullscope, Inc. (“Fullscope Acquisition”) which consists of total of approximately $4.6 million as of September 30, 2013, which is sufficient to cover our claims. The Company fully expects to be reimbursed for payments made in relation to embezzlement-related professional services, as well as the payments associated with the filing of amended sales and use tax returns. However, reimbursement from escrow is not expected until resolution is reached on all outstanding embezzlement-related sales and use tax amounts. Amounts recovered, if any, will be recorded during the period in which settlement is determined to be probable of recovery from escrow. |
Purchase_of_Intellectual_Prope
Purchase of Intellectual Property | 9 Months Ended | |
Sep. 30, 2013 | ||
Text Block [Abstract] | ' | |
Purchase of Intellectual Property | ' | |
12. PURCHASE | OF INTELLECTUAL PROPERTY: | |
In March 2013, the Company purchased Trade Program Management (“TPM”) software assets. The purchase price for the TPM intellectual property was $200 thousand, payable in two installments ($150 thousand and $50 thousand paid in the first and second quarters of 2013, respectively). The Company has recorded this asset within intangible assets on the condensed consolidated balance sheet as of June 30, 2013 (and will begin to amortize the purchase price, over a three-year period (the expected period of benefit), once development is complete and the product is commercially available). |
Revolving_Line_of_Credit
Revolving Line of Credit | 9 Months Ended | |
Sep. 30, 2013 | ||
Debt Disclosure [Abstract] | ' | |
Revolving Line of Credit | ' | |
13. REVOLVING | LINE OF CREDIT: | |
In September 2013, the Company entered into a three-year secured revolving credit facility (the “Credit Facility”). The Credit Facility allows the Company to borrow up to $10.0 million and includes an additional accordion feature that allows the Company to request an additional $5.0 million as needed, extending the total credit facility borrowing capacity to $15 million over its three-year term. The Credit Facility is secured by the personal property of the Company and its domestic subsidiaries, and is subject to normal covenants. The Company was in compliance with all covenants as of September 30, 2013. Under the terms of the Credit Facility, any advances will accrue interest at a variable per annum rate of interest equal to, as elected by the Company, (i) the Prime Rate, or (ii) the LIBOR Rate plus 1.5%. Interest is due and payable, in arrears, on a monthly basis. The Company will be obligated to pay an annual commitment fee of 0.15% on the daily undrawn balance of the facility. Any amounts outstanding under the Credit Facility will be due on September 23, 2016. No amounts were drawn under this facility as of September 30, 2013. |
Fair_Value_Measurement_Tables
Fair Value Measurement (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Company's Fair Value Hierarchy for its Financial Assets and Liabilities | ' | ||||||||||||||||
The following table represents the Company’s fair value hierarchy for its financial assets and liabilities required to be measured on a recurring basis: | |||||||||||||||||
Basis of Fair Value Measurements | |||||||||||||||||
Balance | Quoted Prices | Significant | Significant | ||||||||||||||
in Active Markets | Other | Unobservable | |||||||||||||||
for Identical Items | Observable | Inputs | |||||||||||||||
(Level 1) | Inputs | (Level 3) | |||||||||||||||
(Level 2) | |||||||||||||||||
(In Thousands) | |||||||||||||||||
Balance at September 30, 2013: | |||||||||||||||||
Financial assets: | |||||||||||||||||
Money market investment | $ | 4,084 | $ | 4,084 | $ | — | $ | — | |||||||||
Total financial assets | $ | 4,084 | $ | 4,084 | $ | — | $ | — | |||||||||
Balance at December 31, 2012: | |||||||||||||||||
Financial assets: | |||||||||||||||||
Money market investment | $ | 4,084 | $ | 4,084 | $ | — | $ | — | |||||||||
Total financial assets | $ | 4,084 | $ | 4,084 | $ | — | $ | — | |||||||||
Reconciliation of the Beginning and Ending Level 3 Net Liabilities | ' | ||||||||||||||||
A reconciliation of the beginning and ending Level 3 net liabilities is as follows: | |||||||||||||||||
Fair Value | |||||||||||||||||
Measurements | |||||||||||||||||
Using Significant | |||||||||||||||||
Unobservable | |||||||||||||||||
Inputs | |||||||||||||||||
(Level 3) | |||||||||||||||||
(In Thousands) | |||||||||||||||||
Balance at January 1, 2012 | $ | 231 | |||||||||||||||
Change in fair value related to Meridian contingent earnout consideration | (231 | ) | |||||||||||||||
Balance at December 31, 2012 | — | ||||||||||||||||
Change in fair value related to Meridian contingent earnout consideration | — | ||||||||||||||||
Ending balance at September 30, 2013 | $ | — | |||||||||||||||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||
Estimated Annual Amortization Expense | ' | ||||
Estimated annual amortization expense (including amortization expense associated with capitalized software costs) for the current year and the following four years ending December 31, is as follows: | |||||
Amortization | |||||
Expense | |||||
(In Thousands) | |||||
2013 | $ | 663 | |||
2014 | $ | 583 | |||
2015 | $ | 265 | |||
2016 | $ | 172 | |||
2017 | $ | — |
Accrued_Liabilities_Tables
Accrued Liabilities (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Text Block [Abstract] | ' | ||||||||
Components of Accrued Liabilities | ' | ||||||||
Accrued liabilities as of September 30, 2013 and December 31, 2012 consisted of the following: | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
(In Thousands) | |||||||||
Accrued bonuses | $ | 2,524 | $ | 2,245 | |||||
Accrued vacation | 2,275 | 1,838 | |||||||
Accrued payroll related liabilities | 2,217 | 1,364 | |||||||
Accrued commissions | 2,122 | 2,229 | |||||||
Income tax related accruals | 709 | 498 | |||||||
Accrued software expense | 673 | 1,668 | |||||||
Short-term portion of lease abandonment accrual | 580 | 580 | |||||||
Deferred rent | 559 | 526 | |||||||
Accrued sales and use tax | 308 | 1,482 | |||||||
Other accrued expenses | 2,402 | 1,850 | |||||||
Total | $ | 14,369 | $ | 14,280 | |||||
Components of Other Long Term Liabilities | ' | ||||||||
Other long-term liabilities as of September 30, 2013 and December 31, 2012 consisted of the following: | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
(In Thousands) | |||||||||
Long-term portion of lease abandonment accrual | $ | 722 | $ | 1,179 | |||||
Long-term portion of deferred tax liability | 110 | 93 | |||||||
Total | $ | 832 | $ | 1,272 | |||||
Net_Income_Per_Share_Tables
Net Income Per Share (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Reconciliation of Net (Loss) Income and Weighted Average Shares used in Computing Basic and Diluted Net (Loss) Income Per Share | ' | ||||||||||||||||
A reconciliation of net income and weighted average shares used in computing basic and diluted net income per share is as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(In Thousands, Except Per Share Data) | |||||||||||||||||
Basic net income per share: | |||||||||||||||||
Net income applicable to common shares | $ | 1,772 | $ | 793 | $ | 2,297 | $ | 1,102 | |||||||||
Weighted average common shares outstanding | 10,732 | 11,137 | 10,800 | 11,258 | |||||||||||||
Basic net income per share of common stock | $ | 0.17 | $ | 0.07 | $ | 0.21 | $ | 0.1 | |||||||||
Diluted net income per share: | |||||||||||||||||
Net income applicable to common shares | $ | 1,772 | $ | 793 | $ | 2,297 | $ | 1,102 | |||||||||
Weighted average common shares outstanding | 10,732 | 11,137 | 10,800 | 11,258 | |||||||||||||
Dilutive effects of stock options | 1,501 | 540 | 985 | 422 | |||||||||||||
Weighted average common shares, assuming dilutive effect of stock options | 12,233 | 11,677 | 11,785 | 11,680 | |||||||||||||
Diluted net income per share of common stock | $ | 0.14 | $ | 0.07 | $ | 0.19 | $ | 0.1 | |||||||||
Revenue_Recognition_Additional
Revenue Recognition - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ' | ' | ' | ' |
Standard payment terms to customers | ' | ' | '30 days | ' |
Losses recognized on fixed-price contracts | $0 | $0 | $0 | $0 |
Maintenance fee revenue recognition period | ' | ' | '1 year | ' |
Amount of license consideration and subsequent development and training services | 3,250,000 | ' | 3,250,000 | ' |
Edgewater Fullscope [Member] | ' | ' | ' | ' |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ' | ' | ' | ' |
License related revenue | $614,000 | $354,000 | $2,000,000 | $354,000 |
Minimum [Member] | ' | ' | ' | ' |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ' | ' | ' | ' |
Warranty period on fixed-price contracts | ' | ' | '30 days | ' |
Maximum [Member] | ' | ' | ' | ' |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ' | ' | ' | ' |
Warranty period on fixed-price contracts | ' | ' | '60 days | ' |
ShareBased_Compensation_Additi
Share-Based Compensation - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Share Based Compensation [Abstract] | ' | ' | ' | ' |
Stock-based compensation expense under share based plans | $336,000 | $298,000 | $1,174,000 | $1,005,000 |
Cash received from employee stock purchase plan | 377,000 | 230,000 | 793,000 | 470,000 |
Unrecognized compensation expense related to unvested portion of all share-based compensation | $1,900,000 | ' | $1,900,000 | ' |
Expected weighted average recognition period for unrecognized compensation expense | ' | ' | '1 year 2 months 12 days | ' |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
Tax expense | $74 | $163 | $293 | $382 |
Effective tax rate | 4.00% | 17.00% | 11.30% | 25.70% |
Reduction in income tax expense | -88 | ' | -45 | ' |
Interest and penalties | ' | -41 | ' | ' |
Income tax expense recognized for unrecognized tax benefits | ' | ' | ' | 0 |
Unrecognized tax benefits | $108 | ' | $108 | ' |
Fair_Value_Measurement_Company
Fair Value Measurement - Company's Fair Value Hierarchy for its Financial Assets and Liabilities (Detail) (Fair Value, Measurements, Recurring [Member], USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Financial assets: | ' | ' |
Total financial assets | $4,084 | $4,084 |
Money Market Investment [Member] | ' | ' |
Financial assets: | ' | ' |
Total financial assets | 4,084 | 4,084 |
Quoted Prices in Active Markets for Identical Items (Level 1) [Member] | ' | ' |
Financial assets: | ' | ' |
Total financial assets | 4,084 | 4,084 |
Quoted Prices in Active Markets for Identical Items (Level 1) [Member] | Money Market Investment [Member] | ' | ' |
Financial assets: | ' | ' |
Total financial assets | 4,084 | 4,084 |
Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Financial assets: | ' | ' |
Total financial assets | ' | ' |
Significant Other Observable Inputs (Level 2) [Member] | Money Market Investment [Member] | ' | ' |
Financial assets: | ' | ' |
Total financial assets | ' | ' |
Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Financial assets: | ' | ' |
Total financial assets | ' | ' |
Significant Unobservable Inputs (Level 3) [Member] | Money Market Investment [Member] | ' | ' |
Financial assets: | ' | ' |
Total financial assets | ' | ' |
Fair_Value_Measurement_Reconci
Fair Value Measurement - Reconciliation of the Beginning and Ending Level 3 Net Liabilities (Detail) (Significant Unobservable Inputs (Level 3) [Member], Contingent Earnout Consideration [Member], USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Significant Unobservable Inputs (Level 3) [Member] | Contingent Earnout Consideration [Member] | ' | ' |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' |
Beginning balance | ' | $231 |
Change in fair value related to Meridian contingent earnout consideration | ' | -231 |
Ending balance | ' | ' |
Fair_Value_Measurement_Additio
Fair Value Measurement - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' |
Financial instruments transferred into or out of Level 3 classification | $0 | ' | $0 | ' |
Meridian Stockholder [Member] | ' | ' | ' | ' |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' |
Decrease in estimated accrual of contingent earnout consideration | $0 | $246 | $0 | $231 |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ' | ' | ' |
Change in Company's recorded goodwill | $0 | $0 | $0 | $0 |
Amortization expense of intangible assets | 101 | 241 | 310 | 723 |
Expiration of amortization | ' | ' | 'Between 2012 and 2016 | ' |
Amortization from capitalized software development costs | $77 | $53 | $258 | $95 |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets - Estimated Annual Amortization Expense (Detail) (USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
Estimated annual amortization expense | ' |
2013 | $663 |
2014 | 583 |
2015 | 265 |
2016 | 172 |
2017 | ' |
Accrued_Liabilities_Components
Accrued Liabilities - Components of Accrued Liabilities (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Components of accrued liabilities | ' | ' |
Accrued bonuses | $2,524 | $2,245 |
Accrued vacation | 2,275 | 1,838 |
Accrued payroll related liabilities | 2,217 | 1,364 |
Accrued commissions | 2,122 | 2,229 |
Income tax related accruals | 709 | 498 |
Accrued software expense | 673 | 1,668 |
Short-term portion of lease abandonment accrual | 580 | 580 |
Deferred rent | 559 | 526 |
Accrued sales and use tax | 308 | 1,482 |
Other accrued expenses | 2,402 | 1,850 |
Total | $14,369 | $14,280 |
Accrued_Liabilities_Components1
Accrued Liabilities - Components of Other Long-term Liabilities (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Components of other long-term liabilities | ' | ' |
Long-term portion of lease abandonment accrual | $722 | $1,179 |
Long-term portion of deferred tax liability | 110 | 93 |
Total | $832 | $1,272 |
Net_Loss_Income_Per_Share_Reco
Net Loss Income Per Share - Reconciliation of Net Loss Income and Weighted Average Shares used in Computing Basic and Diluted Net Loss Income Per Share (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Basic net income per share: | ' | ' | ' | ' |
Net income applicable to common shares | $1,772 | $793 | $2,297 | $1,102 |
Weighted average common shares outstanding | 10,732 | 11,137 | 10,800 | 11,258 |
Basic net income per share of common stock | $0.17 | $0.07 | $0.21 | $0.10 |
Diluted net income per share: | ' | ' | ' | ' |
Net income applicable to common shares | $1,772 | $793 | $2,297 | $1,102 |
Weighted average common shares outstanding | 10,732 | 11,137 | 10,800 | 11,258 |
Dilutive effects of stock options | 1,501 | 540 | 985 | 422 |
Weighted average common shares, assuming dilutive effect of stock options | 12,233 | 11,677 | 11,785 | 11,680 |
Diluted net income per share of common stock | $0.14 | $0.07 | $0.19 | $0.10 |
Net_Income_Per_Share_Additiona
Net Income Per Share - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ' | ' | ' |
Diluted computation increased | 478,000 | 1,200,000 | 1,000,000 | 1,300,000 |
Share-based awards outstanding | 4,300,000 | 4,200,000 | 4,300,000 | 4,200,000 |
Stock_Repurchase_Program_Addit
Stock Repurchase Program - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Share data in Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2007 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2008 |
Changes In Equity And Comprehensive Income Line Items [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Stock repurchase program expiration date | ' | ' | ' | ' | 19-Sep-14 | ' | ' |
Stock repurchase program | $23,100,000 | $5,000,000 | ' | ' | $10,000,000 | ' | $16,100,000 |
Additional authorized amount stock repurchase program | 7,000,000 | ' | 7,000,000 | ' | 7,000,000 | ' | ' |
Repurchase of common stock | ' | ' | ' | 380 | 365 | 568 | ' |
Aggregate purchase price common stock Shares | ' | ' | $0 | $1,500,000 | $1,513,000 | $2,164,000 | ' |
Prior Stock Repurchase Program [Member] | ' | ' | ' | ' | ' | ' | ' |
Changes In Equity And Comprehensive Income Line Items [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Stock repurchase program expiration date | ' | ' | ' | ' | 20-Sep-13 | ' | ' |
Fullscope_Embezzlement_Additio
Fullscope Embezzlement - Additional Information (Detail) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Extraordinary And Unusual Items [Abstract] | ' |
Accrual for pre-acquisition sales and use tax exposure estimated | $273,000 |
Combined value of two escrow accounts | 4,600,000 |
Payments associated with sales and use tax liabilities | $1,200,000 |
Purchase_of_Intellectual_Prope1
Purchase of Intellectual Property - Additional Information (Detail) (USD $) | 9 Months Ended | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2013 | Mar. 31, 2013 | Jun. 30, 2013 |
Developed Technology Rights [Member] | Developed Technology Rights [Member] | Developed Technology Rights [Member] | |||
Installment | |||||
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Purchase price for the TPM intellectual property | ' | ' | ' | ' | $200 |
Amortization period | ' | ' | ' | ' | '3 years |
Number of installments | ' | ' | ' | ' | 2 |
Second payment for installment | 200 | ' | 50 | ' | ' |
Initial payment for installment | ' | ' | ' | $150 | ' |
Revolving_Line_of_Credit_Addit
Revolving Line of Credit - Additional Information (Detail) (Revolving Credit Facility [Member], USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Revolving Credit Facility [Member] | ' |
Credit Facilities [Line Items] | ' |
Revolving credit facility period | '3 years |
Borrowing credit facility | $10,000,000 |
Additional borrowing credit facility | 5,000,000 |
Total credit facility borrowing capacity | 15,000,000 |
LIBOR rate plus | 1.50% |
Annual commitment fee | 0.15% |
Due date of amounts outstanding under credit facility | 23-Sep-16 |
Amount drawn under credit facility | $0 |