Edgewater Technology (EDGW) 10-Q 1 Aug 14 2014 Q2 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	6 Months Ended
	Jun. 30, 2014	Jul. 28, 2014
Document And Entity Information [Abstract]	'	'
Document Type	'10-Q	'
Amendment Flag	'false	'
Document Period End Date	30-Jun-14	'
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q2	'
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	'	11,365,202

Unaudited_Condensed_Consolidat

Unaudited Condensed Consolidated Balance Sheets (USD $)	Jun. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Current assets:	'	'
Cash and cash equivalents	$21,702	$20,321
Accounts receivable, net of allowance of $150	23,922	19,842
Deferred tax assets, net	1,172	1,175
Prepaid expenses and other current assets	1,644	936
Total current assets	48,440	42,274
Property and equipment, net	1,235	1,437
Intangible assets, net	699	956
Goodwill	12,049	12,049
Deferred tax assets, net	27,523	29,097
Other assets	244	254
Total assets	90,190	86,067
Current liabilities:	'	'
Accounts payable	357	680
Accrued liabilities	14,656	14,326
Deferred revenue	1,796	1,715
Total current liabilities	16,809	16,721
Other liabilities	702	760
Total liabilities	17,511	17,481
Stockholders' equity:	'	'
Preferred stock, $.01 par value; 2,000 shares authorized, no shares issued or outstanding	0	0
Common stock, $.01 par value; 48,000 shares authorized, 29,736 shares issued as of June 30, 2014 and December 31, 2013, 11,339 and 11,049 shares outstanding as of June 30, 2014 and December 31, 2013, respectively	297	297
Paid-in capital	211,169	211,852
Treasury stock, at cost, 18,397 and 18,687 shares at June 30, 2014 and December 31, 2013, respectively	-120,864	-123,186
Accumulated other comprehensive loss	-133	-154
Retained deficit	-17,790	-20,223
Total stockholders' equity	72,679	68,586
Total liabilities and stockholders' equity	$90,190	$86,067

Unaudited_Condensed_Consolidat1

Unaudited Condensed Consolidated Balance Sheets (Parenthetical) (USD $)	Jun. 30, 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	0	0
Preferred stock, shares outstanding	0	0
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	11,339	11,049
Treasury stock, shares	18,397	18,687

Unaudited_Condensed_Consolidat2

Unaudited Condensed Consolidated Statements of Comprehensive Income (USD $)	3 Months Ended		6 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Revenue:	'	'	'	'
Service revenue	$24,513	$21,599	$47,996	$41,295
Software revenue	2,502	4,331	4,555	6,308
Reimbursable expenses	2,207	1,970	4,285	3,773
Total revenue	29,222	27,900	56,836	51,376
Cost of revenue:	'	'	'	'
Project and personnel costs	14,580	13,456	28,937	26,766
Software costs	1,549	2,433	2,621	3,656
Reimbursable expenses	2,207	1,970	4,285	3,773
Total cost of revenue	18,336	17,859	35,843	34,195
Gross profit	10,886	10,041	20,993	17,181
Operating expenses:	'	'	'	'
Selling, general and administrative	7,497	8,110	16,078	15,641
Depreciation and amortization	228	308	475	623
Total operating expenses	7,725	8,418	16,553	16,264
Operating income	3,161	1,623	4,440	917
Other (income) expense, net	-45	69	1	173
Income before income taxes	3,206	1,554	4,439	744
Tax provision	1,485	140	2,007	219
Net income	1,721	1,414	2,432	525
Comprehensive income:	'	'	'	'
Currency translation adjustments	47	-23	21	-22
Total comprehensive income	$1,768	$1,391	$2,453	$503
Net income per share:	'	'	'	'
Basic net income per share of common stock	$0.15	$0.13	$0.22	$0.05
Diluted net income per share of common stock	$0.13	$0.12	$0.19	$0.05
Shares used in computing basic net income per share of common stock	11,108	10,791	11,038	10,834
Shares used in computing diluted net income per share of common stock	13,144	11,428	12,896	11,447

Unaudited_Condensed_Consolidat3

Unaudited Condensed Consolidated Statements of Cash Flows (USD $)	6 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013
CASH FLOWS FROM OPERATING ACTIVITIES:	'	'
Net income	$2,432	$525
Adjustments to reconcile net income to net cash provided by (used in) operating activities:	'	'
Depreciation and amortization	582	804
Share-based compensation expense	811	838
Deferred income taxes	1,577	17
Lease abandonment	-400	'
Excess tax benefit from stock options	138	'
Changes in operating accounts:	'	'
Accounts receivable	-4,053	-5,581
Prepaid expenses and other current assets	-699	-188
Accounts payable	-323	1,745
Accrued liabilities and other liabilities	673	-1,770
Deferred revenue	81	59
Net cash provided by (used in) operating activities	819	-3,551
CASH FLOWS FROM INVESTING ACTIVITIES:	'	'
Acquisition of intellectual property	0	-200
Capitalization of product development costs	0	-152
Purchases of property and equipment	-125	-179
Net cash used in investing activities	-125	-531
CASH FLOW FROM FINANCING ACTIVITIES:	'	'
Purchases of treasury stock	0	-1,513
Excess tax benefit from stock options	-138	'
Proceeds from employee stock plans and stock option exercises	827	416
Net cash provided by (used in) financing activities	689	-1,097
Effects of exchange rates on cash	-2	-5
Net increase (decrease) in cash and cash equivalents	1,381	-5,184
CASH AND CASH EQUIVALENTS, beginning of period	20,321	16,651
CASH AND CASH EQUIVALENTS, end of period	21,702	11,467
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:	'	'
Cash paid for income taxes	351	66
Issuance of restricted stock awards	$678	$1,051

Organization

Organization	6 Months Ended
	Jun. 30, 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/technology specialties 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	6 Months Ended
	Jun. 30, 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 and six months ended June 30, 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	6 Months Ended
	Jun. 30, 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- or six-month periods ended June 30, 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). 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). 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 $934 thousand and $1.4 million in PI2 license revenue in the three- and six-month periods ended June 30, 2013, respectively. No PI2-related revenue was recognized in the three- or six-months ended June 30, 2014.

ShareBased_Compensation

Share-Based Compensation	6 Months Ended
	Jun. 30, 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 $424 thousand and $811 thousand for the three- and six-month periods ended June 30, 2014, respectively. Share-based compensation expense under all of the Company’s share-based plans was $346 thousand and $838 thousand for the three- and six-month periods ended June 30, 2013, respectively.
	Cash received from the employee stock purchase plan (“ESPP”) and through stock option exercises was $627 thousand and $827 thousand during the three- and six-month periods ended June 30, 2014, respectively. Cash received from ESPP and stock option exercises was $273 thousand and $416 thousand during the three- and six-month periods ended June 30, 2013, respectively.
	As of June 30, 2014, unrecognized compensation expense, net of estimated forfeitures, related to the unvested portion of all share-based compensation arrangements was approximately $2.2 million and is expected to be recognized over a weighted-average period of 1.4 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	6 Months Ended
	Jun. 30, 2014
Income Tax Disclosure [Abstract]	'
Income Taxes	'
	5	INCOME TAXES:
	The Company recorded a tax provision of $1.5 million and $2.0 million for the three- and six-month periods ended June 30, 2014. The reported tax expense for the three- and six month periods ended June 30, 2014 is based upon an estimated annual effective tax rate of 46.3% and 45.2%, respectively, related to our combined federal and state income tax rates, foreign income tax provisions, the recognition of U.S. deferred tax liabilities for differences between the book and tax basis of goodwill and other descrete items. The Company recorded a tax provision of $140 thousand and $219 thousand for the three- and six-month periods ended June 30, 2013. The reported tax expense for the three- and six month periods ended June 30, 2013 is based upon an estimated annual effective tax rate of 9.0% and 29.4%, respectively.
	The reported estimated annual effective tax rate for the three- and six-month periods ended June 30, 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- and six-month periods ended June 30, 2014, we recognized, as a part of income tax expense, $20 thousand and $40 thousand, respectively, in interest and penalties related to our unrecognized tax benefits. During the three- and six-month periods ended June 30, 2013, we recognized, as a part of income tax expense, $22 thousand and $43 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 June 30, 2014, the gross amount of unrecognized tax benefits, exclusive of interest and penalties, was $108 thousand. 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 June 30, 2015. We remain subject to examination until the statute of limitations expires for each respective tax jurisdiction.

Fair_Value_Measurement

Fair Value Measurement	6 Months Ended
	Jun. 30, 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 June 30, 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
							Significant
					Quoted Prices		Other		Significant
					in Active Markets		Observable		Unobservable
					for Identical Items		Inputs		Inputs
			Balance		(Level 1)		(Level 2)		(Level 3)
			(In Thousands)
	Balance at June 30, 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 June 30, 2014.
	As of June 30, 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	6 Months Ended
	Jun. 30, 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- or six-month periods ended June 30, 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 $76 thousand and $151 thousand during the three- and six-month periods ended June 30, 2014, respectively. Amortization expense was $101 thousand and $209 thousand during the three- and six-month periods ended June 30, 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 Cost of Revenue - software cost) of $54 thousand and $107 thousand during the three- and six-month periods ended June 30, 2014, respectively. The Company recorded amortization from capitalized internally developed software (intellectual property) (reported as part of Cost of Revenue - software cost) of $116 thousand and $181 thousand during the three- and six-month periods ended June 30, 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	6 Months Ended
	Jun. 30, 2014
Payables And Accruals [Abstract]	'
Accrued Expenses and Other Liabilities	'
	8	ACCRUED EXPENSES AND OTHER LIABILITIES:
	Accrued liabilities as of June 30, 2014 and December 31, 2013 consisted of the following:
			June 30,		December 31,
			2014		2013
			(In Thousands)
	Accrued bonuses		$	2,737	$	3,126
	Accrued vacation			2,635		1,983
	Accrued payroll related liabilities			1,569		1,682
	Accrued commissions			1,909		2,765
	Accrued software expense			1,315		1,093
	Income tax related accruals			896		588
	Deferred rent			477		513
	Short-term portion of lease abandonment accrual			609		475
	Accrued sales and use tax			281		275
	Other accrued expenses			2,228		1,826
	Total		$	14,656	$	14,326
	Other long-term liabilities as of June 30, 2014 and December 31, 2013 consisted of the following:
			June 30,		December 31,
			2014		2013
			(In Thousands)
	Long-term portion of lease abandonment accrual		$	702	$	760
	Total		$	702	$	760

Net_Income_Per_Share

Net Income Per Share	6 Months Ended
	Jun. 30, 2014
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				Six Months Ended
			June 30,				June 30,
			2014		2013		2014		2013
			(In Thousands, Except Per Share Data)
	Basic net income per share:
	Net income applicable to common shares		$	1,721	$	1,414	$	2,432	$	525
	Weighted average common shares outstanding			11,108		10,791		11,038		10,834
	Basic net income per share of common stock		$	0.15	$	0.13	$	0.22	$	0.05
	Diluted net income per share:
	Net income applicable to common shares		$	1,721	$	1,414	$	2,432	$	525
	Weighted average common shares outstanding			11,108		10,791		11,038		10,834
	Dilutive effects of stock options			2,036		637		1,858		612
	Weighted average common shares, assuming dilutive effect of stock options			13,144		11,428		12,896		11,447
	Diluted net income per share of common stock		$	0.13	$	0.12	$	0.19	$	0.05
	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 27 thousand and 47 thousand in the three- and six-month periods ended June 30, 2014, respectively. The diluted computation would have increased by approximately 1.6 million and 1.7 million, respectively, in the three- and six-month periods ended June 30, 2013. As of June 30, 2014 and 2013, there were approximately 4.1 million and 4.3 million share-based awards outstanding, respectively, under the Company’s equity plans.

Stock_Repurchase_Program

Stock Repurchase Program	6 Months Ended
	Jun. 30, 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- or six-month periods ended June 30, 2014. The Company repurchased a total of 201 thousand and 365 thousand shares of common stock during the three- and six-month periods ended June 30, 2013 at an aggregate purchase price of $852 thousand and $1.5 million, respectively.

Revolving_Line_of_Credit

Revolving Line of Credit	6 Months Ended
	Jun. 30, 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 June 30, 2014.

Lease_Abandonment

Lease Abandonment	6 Months Ended
	Jun. 30, 2014
Leases [Abstract]	'
Lease Abandonment	'
	12	LEASE ABANDONMENT:
	In December 2011, the Company abandoned certain excess office space within its corporate headquarters in Wakefield, Massachusetts. As a result of the abandonment of such space, the Company incurred a non-cash operating charge of $2.2 million in the fourth quarter of 2011 and recorded a lease abandonment accrual (the short- and long-term portions of which are recorded within accrued expenses and other long-term liabilities within the consolidated balance sheets). The lease abandonment charge was calculated based on the net of future contractually obligated lease payments and an estimate of potential sub-lease income (which took into account current market rates and occupancy levels). This analysis is reviewed and updated each reporting period. During the second quarter of 2014 the Company determined that an elimination of the estimated sub-lease income was warranted and, as a result, the Company has recorded a non-cash operating expense charge of $400 thousand which has been recorded within selling, general and administrative expenses in the condensed statement of comprehensive income for the periods ended June 30, 2014. The lease abandonment accrual totaled $1.3 million and $1.2 million as of June 30, 2014 and December 31, 2013, respectively.

Fullscope_Embezzlement

Fullscope Embezzlement	6 Months Ended
	Jun. 30, 2014
Extraordinary And Unusual Items [Abstract]	'
Fullscope Embezzlement	'
	13	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.
	Since 2010 we have incurred certain embezzlement-related expenses associated with non-routine professional services and sales and use tax obligations.
	The Company incurred the 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 six-month periods ended June 30, 2014 were not material.
	During the second quarter of 2014, the Company reached an agreement with the former Fullscope stockholders settling the Company’s outstanding escrow claims associated with the Fullscope acquisition (the “Settlement Agreement”). In connection with the Settlement Agreement, the Company received approximately $1.9 million in cash to satisfy the Company’s escrow claims. The settlement and collection of the escrow has been recorded within selling, general and administrative expense within the condensed consolidated statement of comprehensive income. As of June 30, 2014, the escrow account has a remaining balance of $250 thousand. This balance will remain in the escrow account for a period of twelve months and will be utilized to cover any potential future sales and use tax exposure that may arise from subsequent state inquiry or audit. If no exposure is identified, then the remaining balance will be remitted to the former Fullscope stockholders. Amounts recovered, if any, will be recorded during the period in which settlement is determined to be probable of recovery from escrow.

Fair_Value_Measurement_Tables

Fair Value Measurement (Tables)	6 Months Ended
	Jun. 30, 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
						Significant
				Quoted Prices		Other		Significant
				in Active Markets		Observable		Unobservable
				for Identical Items		Inputs		Inputs
		Balance		(Level 1)		(Level 2)		(Level 3)
		(In Thousands)
	Balance at June 30, 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)	6 Months Ended
	Jun. 30, 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)	6 Months Ended
	Jun. 30, 2014
Payables And Accruals [Abstract]	'
Components of Accrued Liabilities	'
	Accrued liabilities as of June 30, 2014 and December 31, 2013 consisted of the following:
		June 30,		December 31,
		2014		2013
		(In Thousands)
	Accrued bonuses	$	2,737	$	3,126
	Accrued vacation		2,635		1,983
	Accrued payroll related liabilities		1,569		1,682
	Accrued commissions		1,909		2,765
	Accrued software expense		1,315		1,093
	Income tax related accruals		896		588
	Deferred rent		477		513
	Short-term portion of lease abandonment accrual		609		475
	Accrued sales and use tax		281		275
	Other accrued expenses		2,228		1,826
	Total	$	14,656	$	14,326
Components of Other Long-Term Liabilities	'
	Other long-term liabilities as of June 30, 2014 and December 31, 2013 consisted of the following:
		June 30,		December 31,
		2014		2013
		(In Thousands)
	Long-term portion of lease abandonment accrual	$	702	$	760
	Total	$	702	$	760

Net_Income_Per_Share_Tables

Net Income Per Share (Tables)	6 Months Ended
	Jun. 30, 2014
Earnings Per Share [Abstract]	'
Reconciliation of Net Income and Weighted Average Shares used in Computing Basic and Diluted 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				Six Months Ended
		June 30,				June 30,
		2014		2013		2014		2013
		(In Thousands, Except Per Share Data)
	Basic net income per share:
	Net income applicable to common shares	$	1,721	$	1,414	$	2,432	$	525
	Weighted average common shares outstanding		11,108		10,791		11,038		10,834
	Basic net income per share of common stock	$	0.15	$	0.13	$	0.22	$	0.05
	Diluted net income per share:
	Net income applicable to common shares	$	1,721	$	1,414	$	2,432	$	525
	Weighted average common shares outstanding		11,108		10,791		11,038		10,834
	Dilutive effects of stock options		2,036		637		1,858		612
	Weighted average common shares, assuming dilutive effect of stock options		13,144		11,428		12,896		11,447
	Diluted net income per share of common stock	$	0.13	$	0.12	$	0.19	$	0.05

Revenue_Recognition_Additional

Revenue Recognition - Additional Information (Detail) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Jun. 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	'
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	$934,000	$0	$1,400,000	'
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		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Share Based Compensation [Abstract]	'	'	'	'
Stock-based compensation expense under share based plans	$424,000	$346,000	$811,000	$838,000
Cash received from employee stock purchase plan	627,000	273,000	827,000	416,000
Unrecognized compensation expense	$2,200,000	'	$2,200,000	'
Expected weighted-average recognition period for unrecognized compensation expense	'	'	'1 year 4 months 24 days	'

Income_Taxes_Additional_Inform

Income Taxes - Additional Information (Detail) (USD $)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013
Income Tax Disclosure [Abstract]	'	'	'	'	'
Tax expense	$1,485,000	$140,000	$2,007,000	$219,000	'
Effective tax rate	46.30%	9.00%	45.20%	29.40%	'
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	40,000	43,000	'
Unrecognized tax benefits	108,000	'	108,000	'	'
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 $)	Jun. 30, 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 (Level1) [Member]	'	'
Financial assets:	'	'
Total financial assets	4,084	4,084
Quoted Prices in Active Markets for Identical Items (Level1) [Member] | Money Market Investment [Member]	'	'
Financial assets:	'	'
Total financial assets	$4,084	$4,084

Fair_Value_Measurement_Additio

Fair Value Measurement - Additional Information (Detail) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 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		6 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Intangible Liability Disclosure [Abstract]	'	'	'	'
Change in the Company's recorded goodwill	$0	$0	$0	$0
Amortization expense of intangible assets	76	101	151	209
Expiration of amortization	'	'	'Through 2016	'
Amortization from capitalized internally developed software	$54	$116	$107	$181

Goodwill_and_Intangible_Assets3

Goodwill and Intangible Assets - Estimated Annual Amortization Expense (Detail) (USD $)	Jun. 30, 2014
In Thousands, unless otherwise specified
Estimated annual amortization expense	'
2014	$514
2015	266
2016	176
2017	0
2018	$0

Accrued_Expenses_and_Other_Lia2

Accrued Expenses and Other Liabilities - Components of Accrued Liabilities (Detail) (USD $)	Jun. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Components of accrued liabilities	'	'
Accrued bonuses	$2,737	$3,126
Accrued vacation	2,635	1,983
Accrued payroll related liabilities	1,569	1,682
Accrued commissions	1,909	2,765
Accrued software expense	1,315	1,093
Income tax related accruals	896	588
Deferred rent	477	513
Short-term portion of lease abandonment accrual	609	475
Accrued sales and use tax	281	275
Other accrued expenses	2,228	1,826
Total	$14,656	$14,326

Accrued_Expenses_and_Other_Lia3

Accrued Expenses and Other Liabilities - Components of Other Long-Term Liabilities (Detail) (USD $)	Jun. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Payables And Accruals [Abstract]	'	'
Long-term portion of lease abandonment accrual	$702	$760
Total	$702	$760

Net_Income_Per_Share_Reconcili

Net Income Per Share - Reconciliation of Net Income and Weighted Average Shares used in Computing Basic and Diluted Net Income Per Share (Detail) (USD $)	3 Months Ended		6 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Basic net income per share:	'	'	'	'
Net income applicable to common shares	$1,721	$1,414	$2,432	$525
Weighted average common shares outstanding	11,108	10,791	11,038	10,834
Basic net income per share of common stock	$0.15	$0.13	$0.22	$0.05
Diluted net income per share:	'	'	'	'
Net income applicable to common shares	$1,721	$1,414	$2,432	$525
Weighted average common shares outstanding	11,108	10,791	11,038	10,834
Dilutive effects of stock options	2,036	637	1,858	612
Weighted average common shares, assuming dilutive effect of stock options	13,144	11,428	12,896	11,447
Diluted net income per share of common stock	$0.13	$0.12	$0.19	$0.05

Net_Income_Per_Share_Additiona

Net Income Per Share - Additional Information (Detail)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Earnings Per Share [Abstract]	'	'	'	'
Diluted computation increased	27,000	1,600,000	47,000	1,700,000
Share-based awards outstanding	4,100,000	4,300,000	4,100,000	4,300,000

Stock_Repurchase_Program_Addit

Stock Repurchase Program - Additional Information (Detail) (USD $)	0 Months Ended	1 Months Ended	3 Months Ended		6 Months Ended		12 Months Ended
Share data in Thousands, unless otherwise specified	Sep. 19, 2013	Dec. 31, 2007	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 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	201	0	365	'
Aggregate purchase price common stock	'	'	'	$852,000	$0	$1,513,000	'
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 $)	6 Months Ended
	Jun. 30, 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
Variable interest rate	'The LIBOR Rate plus 1.5%	'
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	'

Lease_Abandonment_Additional_I

Lease Abandonment - Additional Information (Detail) (USD $)	3 Months Ended	6 Months Ended
	Dec. 31, 2011	Jun. 30, 2014	Dec. 31, 2013
Leases [Abstract]	'	'	'
Non-cash operating charge	$2,200,000	'	'
Non-cash operating expense charge	'	400,000	'
Lease abandonment accrual	'	$1,300,000	$1,200,000

Fullscope_Embezzlement_Additio

Fullscope Embezzlement - Additional Information (Detail) (USD $)	3 Months Ended	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2014
Extraordinary And Unusual Items [Abstract]	'	'
Fullscope acquisition, escrow claims received in cash	$1,900,000	'
Escrow account balance	$250,000	$250,000
Escrow accounts balance remaining period	'	'12 months