Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | Apr. 28, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Mar-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Trading Symbol | 'EDGW | ' |
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 | ' | 11,218,450 |
Unaudited_Condensed_Consolidat
Unaudited Condensed Consolidated Balance Sheets (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $17,777 | $20,321 |
Accounts receivable, net of allowance of $150 | 22,820 | 19,842 |
Deferred tax assets, net | 1,174 | 1,175 |
Prepaid expenses and other current assets | 1,372 | 936 |
Total current assets | 43,143 | 42,274 |
Property and equipment, net | 1,328 | 1,437 |
Intangible assets, net | 827 | 956 |
Goodwill | 12,049 | 12,049 |
Deferred tax assets, net | 28,738 | 29,097 |
Other assets | 251 | 254 |
Total assets | 86,336 | 86,067 |
Current liabilities: | ' | ' |
Accounts payable | 347 | 680 |
Accrued liabilities | 13,760 | 14,326 |
Deferred revenue | 1,762 | 1,715 |
Total current liabilities | 15,869 | 16,721 |
Other liabilities | 608 | 760 |
Total liabilities | 16,477 | 17,481 |
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 March 31, 2014 and December 31, 2013, 11,170 and 11,049 shares outstanding as of March 31, 2014 and December 31, 2013, respectively | 297 | 297 |
Paid-in capital | 211,467 | 211,852 |
Treasury stock, at cost, 18,566 and 18,687 shares at March 31, 2014 and December 31, 2013, respectively | -122,214 | -123,186 |
Accumulated other comprehensive loss | -180 | -154 |
Retained deficit | -19,511 | -20,223 |
Total stockholders' equity | 69,859 | 68,586 |
Total liabilities and stockholders' equity | $86,336 | $86,067 |
Unaudited_Condensed_Consolidat1
Unaudited Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Per Share data, unless otherwise specified | ||
Statement Of Financial Position [Abstract] | ' | ' |
Accounts receivable, allowance | $150 | $150 |
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 | 11,170 | 11,049 |
Treasury stock, shares | 18,566 | 18,687 |
Unaudited_Condensed_Consolidat2
Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Revenue: | ' | ' |
Service revenue | $23,483 | $19,696 |
Software revenue | 2,053 | 1,977 |
Reimbursable expenses | 2,078 | 1,803 |
Total revenue | 27,614 | 23,476 |
Cost of revenue: | ' | ' |
Project and personnel costs | 14,357 | 13,310 |
Software costs | 1,072 | 1,223 |
Reimbursable expenses | 2,078 | 1,803 |
Total cost of revenue | 17,507 | 16,336 |
Gross profit | 10,107 | 7,140 |
Operating expenses: | ' | ' |
Selling, general and administrative | 8,581 | 7,531 |
Depreciation and amortization | 247 | 315 |
Total operating expenses | 8,828 | 7,846 |
Operating income (loss) | 1,279 | -706 |
Other expense, net | 46 | 104 |
Income (loss) before income taxes | 1,233 | -810 |
Tax provision | 522 | 79 |
Net income (loss) | 711 | -889 |
Comprehensive income (loss): | ' | ' |
Currency translation adjustments | -26 | 1 |
Total comprehensive income (loss) | $685 | ($888) |
Net income (loss) per share: | ' | ' |
Basic net income (loss) per share of common stock | $0.06 | ($0.08) |
Diluted net income (loss) per share of common stock | $0.06 | ($0.08) |
Shares used in computing basic net income (loss) per share of common stock | 10,968 | 10,878 |
Shares used in computing diluted net income (loss) per share of common stock | 12,610 | 10,878 |
Unaudited_Condensed_Consolidat3
Unaudited Condensed Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net income (loss) | $711 | ($889) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ' | ' |
Depreciation and amortization | 300 | 378 |
Share-based compensation expense | 387 | 492 |
Deferred income taxes | 360 | 8 |
Changes in operating accounts: | ' | ' |
Accounts receivable | -3,001 | -34 |
Prepaid expenses and other current assets | -434 | -229 |
Accounts payable | -332 | 70 |
Accrued expenses and other liabilities | -719 | -1,709 |
Deferred revenue | 48 | -287 |
Net cash used in operating activities | -2,680 | -2,200 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Purchases of property and equipment | -62 | -157 |
Capitalization of product development costs | ' | -90 |
Acquisition of intellectual property | ' | -150 |
Net cash used in investing activities | -62 | -397 |
CASH FLOW FROM FINANCING ACTIVITES: | ' | ' |
Proceeds from employee stock plans and stock option exercises | 200 | 143 |
Purchases of treasury stock | ' | -661 |
Net cash provided by (used in) financing activities | 200 | -518 |
Effects of exchange rates on cash | -2 | -9 |
Net decrease in cash and cash equivalents | -2,544 | -3,124 |
CASH AND CASH EQUIVALENTS, beginning of period | 20,321 | 16,651 |
CASH AND CASH EQUIVALENTS, end of period | 17,777 | 13,527 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ' | ' |
Cash paid for income taxes | 148 | 20 |
Issuance of restricted stock awards | 570 | 872 |
Accrued consideration related to acquisition of intellectual property | ' | $50 |
Organization
Organization | 3 Months Ended |
Mar. 31, 2014 | |
Accounting Policies [Abstract] | ' |
Organization | ' |
1. ORGANIZATION: | |
Edgewater Technology, Inc. (“Edgewater”, the “Company”, “we”, or “our”) is a strategic consulting firm that brings a synergistic blend of classic consulting and product-based consulting services to its customer base. Headquartered in Wakefield, Massachusetts, we typically go to market both vertically by industry and horizontally by product and technology specialty and provide our customers with a wide range of business and technology offerings. We work with customers, primarily within North America, 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 2013 Annual Report on Form 10-K, as filed with the Securities and Exchange Commission (the “SEC”) on March 10, 2014 (the “2013 Form 10-K”). |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2014 | |
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 2013 Form 10-K. | |
The results of operations for the three months ended March 31, 2014 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 | 3 Months Ended |
Mar. 31, 2014 | |
Text Block [Abstract] | ' |
Revenue Recognition | ' |
3. REVENUE RECOGNITION: | |
Our Company recognizes 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 exceed our original estimate, as a result of an increase 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 continuously evaluated throughout the period. 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 identified. No losses were recognized on contracts during the three-month periods ended March 31, 2014 or 2013. | |
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 is 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. | |
Prior to the second quarter of 2013, we recorded substantially all of our software resale revenue on a gross basis (reporting the revenue and cost from the transaction in our consolidated statement of comprehensive income (loss)). However, beginning in the second quarter of 2013, due to changes in the nature of the terms of certain of our Microsoft Dynamics AX software resale arrangements (primarily related to the risk of credit loss and ability to establish pricing), we began to recognize a portion of our software resale revenue on a net basis (reporting only the net profit from the transaction as revenue in our consolidated statement of comprehensive income (loss)). We expect this trend to continue and also anticipate that the number of new software resale arrangements subject to these terms may increase in future periods. Additionally, the changes in the terms of the resale arrangements may, in certain situations, extend the timing of the recognition period (from full, immediate recognition of the gross margin on the transaction to recognition of the gross margin on the transaction over a three-year period) due to payment terms being spread over a multiple year period. This would reduce the amount of the software revenue and associated gross margin to be recognized by the Company in the initial period of the sale. | |
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 and maintenance provided based on the price charged when the services are sold separately and the stated renewal rate. | |
A significant amount of our 2013 software revenue is associated with the recognition of PI2 license revenue. In June 2012, Microsoft purchased the Company’s internally developed PI2 software and intellectual property (the “PI2 Solution”) for an aggregate purchase price of $3.25 million. The sale of the PI2 Solution was a significant multiple element contract. This contract included $3.25 million of license consideration and subsequent development and training services. At the time of the sale, we determined that the license did not have stand-alone value without the services, and accordingly we accounted for the license and related services as one unit. The Company recognized $460 thousand of PI2-related software revenue in the three-month period ended March 31, 2013. No PI2-related revenue was recognized in the three-months ended March 31, 2014. |
ShareBased_Compensation
Share-Based Compensation | 3 Months Ended |
Mar. 31, 2014 | |
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 $387 thousand and $492 thousand for the three-month periods ended March 31, 2014 and 2013, respectively. | |
Cash received from the employee stock purchase plan (“ESPP”) and through stock option exercises was $200 thousand and $143 thousand during the three-month periods ended March 31, 2014 and 2013, respectively. | |
As of March 31, 2014, unrecognized compensation expense, net of estimated forfeitures, related to the unvested portion of all share-based compensation arrangements was approximately $2.6 million and is expected to be recognized over a weighted-average period of 1.6 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 | 3 Months Ended |
Mar. 31, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
5. INCOME TAXES: | |
The Company recorded a tax provision of $522 thousand and $79 thousand for the three-month periods ended March 31, 2014 and 2013, respectively. The reported tax expense for the three-month periods ended March 31, 2014 and 2013, is based upon an estimated annual effective tax rate of 42.3% and 9.8%, 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 for the three-month period ended March 31, 2013 is lower than the statutory rate due to a full valuation allowance being provided against our deferred tax assets, which includes significant federal net operating loss carryforwards. | |
We assess the realizability of our deferred tax assets and assess the need for a valuation allowance on an ongoing basis. The periodic assessment of the net carrying value of our deferred tax assets under the applicable accounting rules is highly judgmental. We are required to consider all available positive and negative evidence in evaluating the likelihood that we will be able to realize the benefit of our deferred tax assets in the future. Such evidence includes scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies and the results of recent operations. Since this evaluation requires consideration of events that may occur some years into the future, there is significant judgment involved, and our conclusion could be materially different should certain of our expectations not transpire. | |
When assessing all available evidence, we consider the extent to which we have generated pre-tax income or losses over the most recent three-year period to be an important piece of objective evidence. During the year ended December 31, 2013, we emerged from a cumulative three year pre-tax loss position, which removed this important piece of negative evidence from our evaluation, as a result we concluded the asset was realizable and we reversed $36.2 million of the previously established deferred tax asset valuation allowance. | |
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-month periods ended March 31, 2014 and 2013, we recognized, as a part of income tax expense, $20 thousand and $22 thousand, respectively, in interest and penalties related to our unrecognized tax benefits. | |
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 March 31, 2014, the gross amount of unrecognized tax benefits exclusive of interest and penalties was $448 thousand. Other than certain unrecognized tax benefits for which the statute of limitations expired during the first quarter of 2014, 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 March 31, 2015. We remain subject to examination until the statute of limitations expires for each respective tax jurisdiction. |
Fair_Value_Measurement
Fair Value Measurement | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
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 March 31, 2014 and December 31, 2013, our only financial assets and liabilities required to be measured on a recurring basis were our money market investments. | |||||||||||||||||
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 March 31, 2014: | |||||||||||||||||
Financial assets: | |||||||||||||||||
Money market investment | $ | 4,084 | $ | 4,084 | $ | — | $ | — | |||||||||
Total financial assets | $ | 4,084 | $ | 4,084 | $ | — | $ | — | |||||||||
Balance at December 31, 2013: | |||||||||||||||||
Financial assets: | |||||||||||||||||
Money market investment | $ | 4,084 | $ | 4,084 | $ | — | $ | — | |||||||||
Total financial assets | $ | 4,084 | $ | 4,084 | $ | — | $ | — | |||||||||
No financial instruments were transferred into or out of Level 3 classification during the three-month period ended March 31, 2014. | |||||||||||||||||
As of March 31, 2014 and December 31, 2013, 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 | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
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-month periods ended March 31, 2014 or 2013. 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 $75 thousand and $108 thousand during the three-month periods ended March 31, 2014 and 2013, respectively. This amortization expense relates to certain non-competition covenants, trade names and customer lists, which expire at various times through 2016. | |||||
The Company recorded amortization from capitalized internally developed software (intellectual property) (reported as part of our software expense) of $53 thousand and $63 thousand during the three-month periods ended March 31, 2014 and 2013, 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) | |||||
2014 | $ | 514 | |||
2015 | $ | 266 | |||
2016 | $ | 176 | |||
2017 | $ | — | |||
2018 | $ | — |
Accrued_Expenses_and_Other_Lia
Accrued Expenses and Other Liabilities | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Payables And Accruals [Abstract] | ' | ||||||||
Accrued Expenses and Other Liabilities | ' | ||||||||
8. ACCRUED EXPENSES AND OTHER LIABILITIES: | |||||||||
Accrued liabilities as of March 31, 2014 and December 31, 2013 consisted of the following: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
(In Thousands) | |||||||||
Accrued bonuses | $ | 2,095 | $ | 3,126 | |||||
Accrued vacation | 2,497 | 1,983 | |||||||
Accrued payroll related liabilities | 2,342 | 1,682 | |||||||
Accrued commissions | 1,636 | 2,765 | |||||||
Accrued software expense | 890 | 1,093 | |||||||
Income tax related accruals | 663 | 588 | |||||||
Deferred rent | 532 | 513 | |||||||
Short-term portion of lease abandonment accrual | 449 | 475 | |||||||
Accrued sales and use tax | 165 | 275 | |||||||
Other accrued expenses | 2,491 | 1,826 | |||||||
Total | $ | 13,760 | $ | 14,326 | |||||
Other long-term liabilities as of March 31, 2014 and December 31, 2013 consisted of the following: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
(In Thousands) | |||||||||
Long-term portion of lease abandonment accrual | $ | 608 | $ | 760 | |||||
Total | $ | 608 | $ | 760 |
Net_Income_Loss_Per_Share
Net Income (Loss) Per Share | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Net Income (Loss) Per Share | ' | ||||||||
9. NET INCOME (LOSS) PER SHARE: | |||||||||
A reconciliation of net income (loss) and weighted average shares used in computing basic and diluted net income (loss) per share is as follows: | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
(In Thousands, Except Per Share Data) | |||||||||
Basic net income (loss) per share: | |||||||||
Net income (loss) applicable to common shares | $ | 711 | $ | (889 | ) | ||||
Weighted average common shares outstanding | 10,968 | 10,878 | |||||||
Basic net income (loss) per share of common stock | $ | 0.06 | $ | (0.08 | ) | ||||
Diluted net income (loss) per share: | |||||||||
Net income (loss) applicable to common shares | $ | 711 | $ | (889 | ) | ||||
Weighted average common shares outstanding | 10,968 | 10,878 | |||||||
Dilutive effect of stock options | 1,642 | — | |||||||
Weighted average common shares, assuming dilutive effect of stock options | 12,610 | 10,878 | |||||||
Diluted net income (loss) per share of common stock | $ | 0.06 | $ | (0.08 | ) | ||||
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 545 thousand and 1.9 million in the three-month periods ended March 31, 2014 and 2013, respectively. As of March 31, 2014 and 2013, there were approximately 4.4 million share-based awards outstanding under the Company’s equity plans. |
Stock_Repurchase_Program
Stock Repurchase Program | 3 Months Ended |
Mar. 31, 2014 | |
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 set to expire on September 20, 2013 (the “Repurchase Period”). On September 19, 2013, we announced that the Board had 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. | |
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 did not repurchase any shares of common stock during the three-month period ended March 31, 2014. The Company repurchased a total of 164 thousand shares of common stock during the three-month period ended March 31, 2013 at an aggregate purchase price of $661 thousand. |
Revolving_Line_of_Credit
Revolving Line of Credit | 3 Months Ended |
Mar. 31, 2014 | |
Debt Disclosure [Abstract] | ' |
Revolving Line of Credit | ' |
11. 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 March 31, 2014. 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 March 31, 2014. |
Fair_Value_Measurement_Tables
Fair Value Measurement (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
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 March 31, 2014: | |||||||||||||||||
Financial assets: | |||||||||||||||||
Money market investment | $ | 4,084 | $ | 4,084 | $ | — | $ | — | |||||||||
Total financial assets | $ | 4,084 | $ | 4,084 | $ | — | $ | — | |||||||||
Balance at December 31, 2013: | |||||||||||||||||
Financial assets: | |||||||||||||||||
Money market investment | $ | 4,084 | $ | 4,084 | $ | — | $ | — | |||||||||
Total financial assets | $ | 4,084 | $ | 4,084 | $ | — | $ | — | |||||||||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
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) | |||||
2014 | $ | 514 | |||
2015 | $ | 266 | |||
2016 | $ | 176 | |||
2017 | $ | — | |||
2018 | $ | — |
Accrued_Expenses_and_Other_Lia1
Accrued Expenses and Other Liabilities (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Payables And Accruals [Abstract] | ' | ||||||||
Components of Accrued Liabilities | ' | ||||||||
Accrued liabilities as of March 31, 2014 and December 31, 2013 consisted of the following: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
(In Thousands) | |||||||||
Accrued bonuses | $ | 2,095 | $ | 3,126 | |||||
Accrued vacation | 2,497 | 1,983 | |||||||
Accrued payroll related liabilities | 2,342 | 1,682 | |||||||
Accrued commissions | 1,636 | 2,765 | |||||||
Accrued software expense | 890 | 1,093 | |||||||
Income tax related accruals | 663 | 588 | |||||||
Deferred rent | 532 | 513 | |||||||
Short-term portion of lease abandonment accrual | 449 | 475 | |||||||
Accrued sales and use tax | 165 | 275 | |||||||
Other accrued expenses | 2,491 | 1,826 | |||||||
Total | $ | 13,760 | $ | 14,326 | |||||
Components of Other Long-Term Liabilities | ' | ||||||||
Other long-term liabilities as of March 31, 2014 and December 31, 2013 consisted of the following: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
(In Thousands) | |||||||||
Long-term portion of lease abandonment accrual | $ | 608 | $ | 760 | |||||
Total | $ | 608 | $ | 760 | |||||
Net_Income_Loss_Per_Share_Tabl
Net Income (Loss) Per Share (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Reconciliation of Net Income (Loss) and Weighted Average Shares used in Computing Basic and Diluted Net Income (Loss) Per Share | ' | ||||||||
A reconciliation of net income (loss) and weighted average shares used in computing basic and diluted net income (loss) per share is as follows: | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
(In Thousands, Except Per Share Data) | |||||||||
Basic net income (loss) per share: | |||||||||
Net income (loss) applicable to common shares | $ | 711 | $ | (889 | ) | ||||
Weighted average common shares outstanding | 10,968 | 10,878 | |||||||
Basic net income (loss) per share of common stock | $ | 0.06 | $ | (0.08 | ) | ||||
Diluted net income (loss) per share: | |||||||||
Net income (loss) applicable to common shares | $ | 711 | $ | (889 | ) | ||||
Weighted average common shares outstanding | 10,968 | 10,878 | |||||||
Dilutive effect of stock options | 1,642 | — | |||||||
Weighted average common shares, assuming dilutive effect of stock options | 12,610 | 10,878 | |||||||
Diluted net income (loss) per share of common stock | $ | 0.06 | $ | (0.08 | ) | ||||
Revenue_Recognition_Additional
Revenue Recognition - Additional Information (Detail) (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Jun. 30, 2012 | |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ' | ' | ' |
Standard payment terms to customers | '30 days | ' | ' |
Losses recognized on fixed-price contracts | ' | ' | ' |
Recognition of the gross margin on the transaction, period | '3 years | ' | ' |
Maintenance fee revenue recognition period | '1 year | ' | ' |
Purchase of software and intellectual property | ' | ' | 3,250,000 |
Amount of license consideration and subsequent development and training services | ' | ' | 3,250,000 |
License related revenue | $0 | $460,000 | ' |
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 | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Share Based Compensation [Abstract] | ' | ' |
Stock-based compensation expense under share based plans | $387,000 | $492,000 |
Cash received from employee stock purchase plan | 200,000 | 143,000 |
Unrecognized compensation expense | $2,600,000 | ' |
Expected weighted average recognition period for unrecognized compensation expense | '1 year 7 months 6 days | ' |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Tax expense | $522,000 | $79,000 | ' |
Effective tax rate | 42.30% | 9.80% | ' |
Deferred tax asset valuation allowance | ' | ' | 36,200,000 |
Pre-tax income or losses period | ' | ' | '3 years |
Unrecognized tax benefits, penalties and interest expense | 20,000 | 22,000 | ' |
Unrecognized tax benefits | 448,000 | ' | ' |
Uncertain tax positions increase (decrease) | $0 | ' | ' |
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 $) | Mar. 31, 2014 | Dec. 31, 2013 |
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_Additio
Fair Value Measurement - Additional Information (Detail) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 |
Fair Value Disclosures [Abstract] | ' |
Financial instruments transferred into or out of Level 3 classification | $0 |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Intangible Liability Disclosure [Abstract] | ' | ' |
Change in the Company's recorded goodwill | $0 | $0 |
Amortization expense of intangible assets | 75 | 108 |
Expiration of amortization | 'Through 2016 | ' |
Amortization from capitalized internally developed software | $53 | $63 |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets - Estimated Annual Amortization Expense (Detail) (USD $) | Mar. 31, 2014 |
In Thousands, unless otherwise specified | |
Estimated annual amortization expense | ' |
2014 | $514 |
2015 | 266 |
2016 | 176 |
2017 | ' |
2018 | ' |
Accrued_Expenses_and_Other_Lia2
Accrued Expenses and Other Liabilities - Components of Accrued Liabilities (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Components of accrued liabilities | ' | ' |
Accrued bonuses | $2,095 | $3,126 |
Accrued vacation | 2,497 | 1,983 |
Accrued payroll related liabilities | 2,342 | 1,682 |
Accrued commissions | 1,636 | 2,765 |
Accrued software expense | 890 | 1,093 |
Income tax related accruals | 663 | 588 |
Deferred rent | 532 | 513 |
Short-term portion of lease abandonment accrual | 449 | 475 |
Accrued sales and use tax | 165 | 275 |
Other accrued expenses | 2,491 | 1,826 |
Total | $13,760 | $14,326 |
Accrued_Expenses_and_Other_Lia3
Accrued Expenses and Other Liabilities - Components of Other Long-Term Liabilities (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Payables And Accruals [Abstract] | ' | ' |
Long-term portion of lease abandonment accrual | $608 | $760 |
Total | $608 | $760 |
Net_Income_Loss_Per_Share_Reco
Net Income (Loss) Per Share - Reconciliation of Net Income Loss and Weighted Average Shares used in Computing Basic and Diluted Net Income Loss Per Share (Detail) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Basic net income (loss) per share: | ' | ' |
Net income (loss) applicable to common shares | $711 | ($889) |
Weighted average common shares outstanding | 10,968 | 10,878 |
Basic net income (loss) per share of common stock | $0.06 | ($0.08) |
Diluted net income (loss) per share: | ' | ' |
Net income (loss) applicable to common shares | $711 | ($889) |
Weighted average common shares outstanding | 10,968 | 10,878 |
Dilutive effect of stock options | 1,642 | ' |
Weighted average common shares, assuming dilutive effect of stock options | 12,610 | 10,878 |
Diluted net income (loss) per share of common stock | $0.06 | ($0.08) |
Net_Income_Loss_Per_Share_Addi
Net Income (Loss) Per Share - Additional Information (Detail) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ' |
Diluted computation increased | 545,000 | 1,900,000 |
Share-based awards outstanding | 4,400,000 | 4,400,000 |
Stock_Repurchase_Program_Addit
Stock Repurchase Program - Additional Information (Detail) (USD $) | 0 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
Share data in Thousands, unless otherwise specified | Sep. 19, 2013 | Dec. 31, 2007 | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2008 |
Equity, Class of Treasury Stock [Line Items] | ' | ' | ' | ' | ' |
Stock repurchase program | $23,100,000 | $5,000,000 | ' | ' | $16,100,000 |
Additional authorized amount stock repurchase program | 7,000,000 | ' | ' | ' | ' |
Stock repurchase program expiration date | ' | ' | 20-Sep-13 | ' | ' |
Repurchase of common stock | ' | ' | 0 | 164 | ' |
Aggregate purchase price common stock, shares | ' | ' | ' | $661,000 | ' |
Prior Stock Repurchase Program [Member] | ' | ' | ' | ' | ' |
Equity, Class of Treasury Stock [Line Items] | ' | ' | ' | ' | ' |
Stock repurchase program expiration date | ' | ' | 19-Sep-14 | ' | ' |
Revolving_Line_of_Credit_Addit
Revolving Line of Credit - Additional Information (Detail) (Revolving Credit Facility [Member], USD $) | 3 Months Ended | |
Mar. 31, 2014 | Sep. 30, 2013 | |
Revolving Credit Facility [Member] | ' | ' |
Line of Credit Facility [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 | ' | ' |