Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 26, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | EDGW | |
Entity Registrant Name | EDGEWATER TECHNOLOGY INC/DE/ | |
Entity Central Index Key | 1,017,968 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 11,768,574 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 20,800 | $ 26,768 |
Accounts receivable, net of allowance of $150 | 27,714 | 24,654 |
Deferred tax assets, net | 1,216 | 1,196 |
Prepaid expenses and other current assets | 1,269 | 1,053 |
Total current assets | 50,999 | 53,671 |
Property and equipment, net | 926 | 1,029 |
Intangible assets, net | 4,781 | 480 |
Goodwill | 19,872 | 12,049 |
Deferred tax assets, net | 25,693 | 25,974 |
Other assets | 231 | 210 |
Total assets | 102,502 | 93,413 |
Current liabilities: | ||
Accounts payable | 672 | 315 |
Accrued liabilities | 19,032 | 16,142 |
Deferred revenue | 2,272 | 1,516 |
Total current liabilities | 21,976 | 17,973 |
Other liabilities | 3,198 | 411 |
Total liabilities | $ 25,174 | $ 18,384 |
Stockholders' equity: | ||
Preferred stock, $.01 par value; 2,000 shares authorized, no shares issued or outstanding | ||
Common stock, $.01 par value; 48,000 shares authorized, 29,736 shares issued as of September 30, 2015 and December 31, 2014, 11,742 and 11,440 shares outstanding as of September 30, 2015 and December 31, 2014, respectively | $ 297 | $ 297 |
Paid-in capital | 210,512 | 210,989 |
Treasury stock, at cost, 17,994 and 18,296 shares at September 30, 2015 and December 31, 2014, respectively | (117,428) | (119,878) |
Accumulated other comprehensive loss | (476) | (220) |
Retained deficit | (15,577) | (16,159) |
Total stockholders' equity | 77,328 | 75,029 |
Total liabilities and stockholders' equity | $ 102,502 | $ 93,413 |
Unaudited Condensed Consolidat3
Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance | $ 150 | $ 150 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 2,000,000 | 2,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 48,000,000 | 48,000,000 |
Common stock, shares issued | 29,736,000 | 29,736,000 |
Common stock, shares outstanding | 11,742,000 | 11,440,000 |
Treasury stock, shares | 17,994,000 | 18,296,000 |
Unaudited Condensed Consolidat4
Unaudited Condensed Consolidated Statements of Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenue: | ||||
Service revenue | $ 27,184 | $ 25,144 | $ 74,483 | $ 73,140 |
Software revenue | 2,017 | 1,365 | 8,300 | 5,920 |
Reimbursable expenses | 1,983 | 2,220 | 5,506 | 6,505 |
Total revenue | 31,184 | 28,729 | 88,289 | 85,565 |
Cost of revenue: | ||||
Project and personnel costs | 16,351 | 15,169 | 48,365 | 44,106 |
Software costs | 1,094 | 924 | 4,604 | 3,545 |
Reimbursable expenses | 1,983 | 2,220 | 5,506 | 6,505 |
Total cost of revenue | 19,428 | 18,313 | 58,475 | 54,156 |
Gross profit | 11,756 | 10,416 | 29,814 | 31,409 |
Operating expenses: | ||||
Selling, general and administrative | 8,827 | 8,353 | 26,056 | 25,560 |
Direct acquisition costs | 321 | 932 | ||
Lease abandonment charge | 400 | |||
Fullscope embezzlement costs (loss recovery) | (250) | (1,529) | ||
Depreciation and amortization | 372 | 227 | 918 | 702 |
Total operating expenses | 9,520 | 8,580 | 27,656 | 25,133 |
Operating income | 2,236 | 1,836 | 2,158 | 6,276 |
Other expense, net | 650 | 146 | 1,274 | 147 |
Income before income taxes | 1,586 | 1,690 | 884 | 6,129 |
Tax provision | 559 | 714 | 303 | 2,721 |
Net income | 1,027 | 976 | 581 | 3,408 |
Comprehensive income: | ||||
Currency translation adjustments | (74) | (35) | (256) | (14) |
Total comprehensive income | $ 953 | $ 941 | $ 325 | $ 3,394 |
Net income per share: | ||||
Basic net income per share of common stock | $ 0.09 | $ 0.09 | $ 0.05 | $ 0.31 |
Diluted net income per share of common stock | $ 0.08 | $ 0.08 | $ 0.04 | $ 0.26 |
Shares used in computing basic net income per share of common stock | 11,568 | 11,197 | 11,463 | 11,092 |
Shares used in computing diluted net income per share of common stock | 13,275 | 12,972 | 13,272 | 12,973 |
Unaudited Condensed Consolidat5
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 581 | $ 3,408 |
Adjustments to reconcile net income to net cash provided by operating activities, excluding the impact of acquisitions: | ||
Depreciation and amortization | 1,063 | 862 |
Share-based compensation expense | 1,258 | 1,181 |
Deferred income taxes | 261 | 2,159 |
Lease abandonment | (400) | |
Accretion of contingent earnout consideration | 1,114 | |
Excess tax benefit from stock options | (192) | 206 |
Gain on disposal of equipment | (10) | |
Changes in operating accounts, net of acquisition: | ||
Accounts receivable | (1,155) | (4,219) |
Prepaid expenses and other current assets | (128) | (471) |
Accounts payable | 206 | (532) |
Accrued liabilities and other liabilities | (1,746) | 3,237 |
Deferred revenue | (402) | (43) |
Net cash provided by operating activities | 850 | 5,388 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property and equipment | (302) | (183) |
Net cash used in investing activities | (7,700) | (183) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from employee stock plans and stock option exercises | 1,020 | 1,483 |
Purchases of treasury stock | (306) | (962) |
Excess tax benefit from stock options | 192 | (206) |
Net cash provided by financing activities | 906 | 315 |
Effects of exchange rates on cash | (24) | (25) |
Net (decrease) increase in cash and cash equivalents | (5,968) | 5,495 |
CASH AND CASH EQUIVALENTS, beginning of period | 26,768 | 20,321 |
CASH AND CASH EQUIVALENTS, end of period | 20,800 | 25,816 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||
Cash paid for income taxes | 204 | 539 |
Issuance of restricted stock awards | 728 | $ 678 |
Initial estimate of fair value of contingent earnout considerations | 5,795 | |
Zero2Ten [Member] | ||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Net cash used to acquire Zero2Ten/Branchbird | (4,643) | |
Branchbird [Member] | ||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Net cash used to acquire Zero2Ten/Branchbird | $ (2,755) |
Organization
Organization | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | 1. ORGANIZATION: Edgewater Technology, Inc. (“Edgewater”, the “Company”, “we”, or “our”) helps the C-suite drive transformational change through its unique selection of business and technology services and channel-based solutions. Classic consulting disciplines (such as business advisory, process improvement, organizational change management, M&A due diligence, and domain expertise) are blended with technical services (such as digital transformation, technical roadmaps, data and analytics services, custom development and system integration) to help organizations leverage investments in legacy IT assets to create new digital business models. Delivering both on premise and in the cloud, Edgewater offers two major channel-based services. In the Oracle channel, Edgewater Ranzal provides Business Analytics solutions leveraging Oracle EPM, BI and Big Data technologies. In the Microsoft channel, Edgewater Fullscope delivers Dynamics AX ERP, Business Intelligence and CRM solutions primarily in the manufacturing space. 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 2014 Annual Report on Form 10-K, as filed with the Securities and Exchange Commission (the “SEC”) on March 2, 2015 (the “2014 Form 10-K”). |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [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 2014 Form 10-K. The results of operations for the three and nine months ended September 30, 2015 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. The Company is headquartered in Wakefield, Massachusetts, and 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. |
Business Combinations
Business Combinations | 9 Months Ended |
Sep. 30, 2015 | |
Business Combinations [Abstract] | |
Business Combinations | 3. BUSINESS COMBINATIONS: Acquisition of Branchbird LLC (“Branchbird”): The Company determined the total allocable purchase price consideration to be $4.2 million. The initial cash consideration paid at closing was $2.7 million, net of $19 thousand attributable to a net working capital adjustment. The initial consideration paid by the Company was increased by $1.4 million, representing our initial estimate of the fair value of additional contingent earnout consideration that may be earned by Branchbird, which is described in more detail below. In addition to the above payments, the Company incurred approximately $321 thousand in direct transaction costs, which were expensed during the three- and nine-months ended September 30, 2015. An earnout agreement was entered into in connection with the Branchbird Acquisition under which Branchbird is eligible to receive additional contingent consideration. Contingent earnout consideration to be paid, if any, to Branchbird will be based upon the achievement of certain performance measures (and is not impacted by continued employment status of Branchbird owners) over two consecutive twelve-month earnout periods, concluding on August 16, 2017. The Company has estimated the fair value of this obligation on the date of acquisition to be $1.4 million. The maximum amount of contingent earnout consideration that can be earned by Branchbird is capped at $2.4 million. As of September 30, 2015, the Company has recorded an accrual of $1.5 million related to Branchbird contingent earnout consideration. In connection with the Branchbird Acquisition, the Company made certain estimates related to the fair value of assets acquired, liabilities assumed, contingent earnout consideration, identified intangibles and goodwill. The Company expects to complete the Branchbird measurement period during the fourth quarter of 2015. The Company performed a preliminary fair value allocation of the purchase price among assets, liabilities and identified intangible assets. The preliminary allocation of the purchase price was as follows: Total Life (In Years) (In Thousands) Accounts receivable $ 540 Other assets 16 Accounts payable and accrued expenses (86 ) Customer relationships 2,100 5 Goodwill (deductible for tax purposes) 1,613 Total purchase price $ 4,183 The Branchbird Acquisition was accounted for as a purchase transaction, and accordingly, the results of operations, commencing August 17, 2015, are included in the Company’s accompanying consolidated statement of comprehensive income. Pro forma financial information related to the Branchbird Acquisition is not presented as the effect of this acquisition was not material to the Company. Acquisition of Zero2Ten, Inc. (“Zero2Ten”): The Company determined the total allocable purchase price consideration to be $9.0 million. The initial cash consideration paid at closing was $4.5 million. The cash paid at closing consisted of the $5.0 million purchase price less $457 thousand attributable to a net working capital adjustment. The initial consideration paid by the Company was increased by $4.4 million, representing our initial estimate of the fair value estimate of additional contingent earnout consideration that may be earned by Zero2Ten, which is described in more detail below. In addition to the above payments, the Company incurred approximately $611 thousand in direct transaction costs, which were expensed during the three-months ended March 31, 2015. During the quarter ended June 30, 2015, the Company made the following adjustments related to its initial purchase price consideration: • The Company increased total purchase price consideration of the Zero2Ten Acquisition, resulting in an increase to the carrying value of goodwill, by $101. The increase is attributable to the final true-up of excess net working capital delivered by Zero2Ten at the closing of the transaction. No adjustments were made to our initial purchase price during the quarter ended September 30, 2015. An earnout agreement was entered into in connection with the Zero2Ten Acquisition under which Zero2Ten is eligible to receive additional contingent consideration. Contingent earnout consideration to be paid, if any, to Zero2Ten will be based upon the achievement of certain performance measures (and is not impacted by continued employment status of Zero2Ten shareholders) over two consecutive twelve-month earnout periods, concluding on March 13, 2017. The Company has estimated the fair value of this obligation on the date of acquisition to be $4.4 million. The maximum amount of contingent earnout consideration that can be earned by Zero2Ten is capped at $8.6 million. As of September 30, 2015, the Company has recorded an accrual of $5.4 million related to Zero2Ten contingent earnout consideration. In connection with the Zero2Ten Acquisition, the Company made certain estimates related to the fair value of assets acquired, liabilities assumed, contingent earnout consideration, identified intangibles and goodwill. The Company performed a fair value allocation of the purchase price among assets, liabilities and identified intangible assets. The allocation of the purchase price was as follows: Total Life (In Years) (In Thousands) Accounts receivable $ 1,596 Other assets 142 Deferred revenue (1,158 ) Accounts payable and accrued expenses (580 ) Customer relationships 2,800 5 Goodwill (deductible for tax purposes) 6,210 Total purchase price $ 9,010 The Zero2Ten Acquisition was accounted for as a purchase transaction, and accordingly, the results of operations, commencing March 13, 2015, are included in the Company’s accompanying consolidated statement of comprehensive income. Pro forma financial information related to the Zero2Ten Acquisition is not presented as the effect of this acquisition was not material to the Company. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2015 | |
Text Block [Abstract] | |
Revenue Recognition | 4. REVENUE RECOGNITION: The 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 may be 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 nine-month periods ended September 30, 2015 or 2014. 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). 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. Substantially all 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. |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | 5. SHARE-BASED COMPENSATION: Share-based compensation expense under all of the Company’s share-based plans was $408 thousand and $1.3 million for the three- and nine-month periods ended September 30, 2015, respectively. Share-based compensation expense under all of the Company’s share-based plans was $369 thousand and $1.2 million for the three- and nine-month periods ended September 30, 2014, respectively. Cash received from the employee stock purchase plan (“ESPP”) and through stock option exercises was $246 thousand and $1.0 million during the three- and nine-month periods ended September 30, 2015, respectively. Cash received from ESPP and stock option exercises was $656 thousand and $1.5 million during the three- and nine-month periods ended September 30, 2014, respectively. As of September 30, 2015, unrecognized compensation expense, net of estimated forfeitures, related to the unvested portion of all share-based compensation arrangements was approximately $1.9 million and is expected to be recognized over a weighted-average period of 1.4 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 | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 6. INCOME TAXES: The Company recorded a tax provision of $559 thousand and $303 thousand for the three- and nine-month periods ended September 30, 2015, respectively. The Company recorded a tax provision of $714 thousand and $2.7 million for the three- and nine-month periods ended September 30, 2014, respectively. The reported tax provision for the three- and nine-month periods ended September 30, 2015 is based upon an estimated annual effective tax rate of 35.2% and 34.3%, respectively. The effective tax rates reflected 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. 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. As of both September 30, 2015 and December 31, 2014, the recorded deferred tax asset valuation allowance balance was $1.5 million. Our policy is to classify interest and penalties related to unrecognized tax benefits as income tax expense. This policy has been consistently applied in all periods. During the three- and nine-month periods ended September 30, 2015, we reversed, as part of income tax expense, $(37) thousand and $(33) thousand, respectively, in interest and penalties related to our unrecognized tax benefits. During the three- and nine-month periods ended September 30, 2014, we recognized, as a part of income tax expense, $20 thousand and $60 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. Other than certain unrecognized tax benefits for which the statute of limitations will expire during the third quarter of 2015, we have identified no other uncertain tax positions for which it is reasonably possible that the total amount of unrecognized tax benefits will significantly increase or decrease within the twelve months ending September 30, 2016. We remain subject to examination until the statute of limitations expires for each respective tax jurisdiction. |
Fair Value Measurement
Fair Value Measurement | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | 7. FAIR VALUE MEASUREMENT: We utilize the following valuation hierarchy for disclosure of the inputs to valuation used to measure fair value. This hierarchy prioritizes the inputs into three broad levels as follows: • Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. • Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. • Level 3 inputs are unobservable inputs based on our own assumptions used to measure assets and liabilities at fair value. A financial asset or liability’s classification within the hierarchy is determined based upon the lowest level input that is significant to the fair value measurement. As of September 30, 2015, our financial assets and liabilities required to be measured on a recurring basis were our money market investments and contingent earnout considerations. As of December 31, 2014, 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 Thousands) Balance at September 30, 2015: Financial assets: Money market investment $ 4,084 $ 4,084 $ — $ — Total financial assets $ 4,084 $ 4,084 $ — $ — Financial liabilities: Contingent earnout consideration $ 6,909 $ — $ — $ 6,909 Total financial liabilities $ 6,909 $ — $ — $ 6,909 Balance at December 31, 2014: 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- or nine-month periods ended September 30, 2015. The Company has classified its net liability for contingent earnout considerations relating to its acquisitions of Zero2Ten and Branchbird within Level 3 of the fair value hierarchy because the fair value is determined using significant unobservable inputs, which included probability weighted cash flows. A description of these acquisitions is included within Note 3. A reconciliation of the beginning and ending Level 3 net liabilities for the nine-month period ended September 30, 2015 is as follows: Fair Value (In Thousands) Balance at December 31, 2014 $ — Initial estimate of fair value related to Zero2Ten contingent earnout consideration 4,367 Initial estimate of fair value related to Branchbird contingent earnout consideration 1,428 Accretion of contingent earnout consideration (included within other expense, net) 1,114 Ending balance at September 30, 2015 $ 6,909 As of September 30, 2015 and December 31, 2014, the fair values of our other financial instruments, which include cash and cash equivalents, accounts receivable and accounts payable, approximate the carrying amounts of the respective asset and/or liability due to the short-term nature of these financial instruments. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 8. GOODWILL AND INTANGIBLE ASSETS: Goodwill increased to $19.9 million as of September 30, 2015 compared to $12.0 million as of December 31, 2014. This increase is the result of the acquisitions of substantially all of the assets of Zero2Ten and Branchbird, which are further disclosed within Note 3. With the exception of the acquisition-related increase noted herein, there have been no other changes to the Company’s goodwill balance. 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 $215 thousand and $454 thousand during the three- and nine-month periods ended September 30, 2015, respectively. Amortization expense was $75 thousand and $226 thousand during the three- and nine-month periods ended September 30, 2014, respectively. This amortization expense relates to certain non-competition covenants, trade names and customer lists, which expire at various times through 2020. The Company recorded amortization from capitalized internally developed software (intellectual property) (reported as part of Cost of Revenue - software cost) of $44 thousand and $145 thousand during the three- and nine-month periods ended September 30, 2015, respectively. The Company recorded amortization from capitalized internally developed software (intellectual property) (reported as part of Cost of Revenue - software cost) of $53 thousand and $160 thousand during the three- and nine-month periods ended September 30, 2014, 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 (In Thousands) 2015 $ 913 2016 $ 1,273 2017 $ 1,086 2018 $ 953 2019 and beyond $ 1,155 |
Accrued Expenses and Other Liab
Accrued Expenses and Other Liabilities | 9 Months Ended |
Sep. 30, 2015 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Liabilities | 9. ACCRUED EXPENSES AND OTHER LIABILITIES: Accrued liabilities as of September 30, 2015 and December 31, 2014 consisted of the following: September 30, December 31, (In Thousands) Accrued short-term contingent earnout consideration $ 3,711 $ — Accrued bonuses 2,701 4,268 Accrued commissions 1,674 3,012 Accrued vacation 2,755 2,106 Accrued payroll related liabilities 3,044 2,055 Accrued software expense 770 820 Short-term portion of lease abandonment accrual 583 609 Deferred rent 253 400 Accrued sales and use tax 53 274 Other accrued expenses 3,488 2,598 Total $ 19,032 $ 16,142 Other liabilities consisted of $3.2 million of contingent earnout consideration as of September 30, 2015. Other liabilities consisted of $411 thousand of the long-term portion of lease abandonment accrual as of December 31, 2014. |
Net Income Per Share
Net Income Per Share | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | 10. NET INCOME PER SHARE: A reconciliation of net income and weighted average shares used in computing basic and diluted net income per share is as follows: Three Months Ended Nine Months Ended 2015 2014 2015 2014 (In Thousands, Except Per Share Data) Basic net income per share: Net income applicable to common shares $ 1,027 $ 976 $ 581 $ 3,408 Weighted average common shares outstanding 11,568 11,197 11,463 11,092 Basic net income per share of common stock $ 0.09 $ 0.09 $ 0.05 $ 0.31 Diluted net income per share: Net income applicable to common shares $ 1,027 $ 976 $ 581 $ 3,408 Weighted average common shares outstanding 11,568 11,197 11,463 11,092 Dilutive effects of stock options 1,707 1,775 1,809 1,881 Weighted average common shares, assuming dilutive effect of stock options 13,275 12,972 13,272 12,973 Diluted net income per share of common stock $ 0.08 $ 0.08 $ 0.04 $ 0.26 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 69 thousand and 68 thousand in the three- and nine-month periods ended September 30, 2015, respectively. The diluted computation would have increased by approximately 303 thousand and 314 thousand in the three- and nine-month periods ended September 30, 2014, respectively. As of September 30, 2015 and 2014, there were approximately 4.0 million share-based awards outstanding, respectively, under the Company’s equity plans. |
Stock Repurchase Program
Stock Repurchase Program | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Stock Repurchase Program | 11. 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 $23.1 million (the “Purchase Authorization”) and was set to expire on September 19, 2014 (the “Repurchase Period”). On September 17, 2015, we announced that the Board had approved an extension of the Repurchase Period to September 23, 2016. The timing and amount of the purchases will be based upon market conditions, securities law considerations and other factors. The Stock Repurchase Program does not obligate the Company to acquire a specific number of shares in any period and may be modified, suspended, extended or discontinued at any time, without prior notice. The Company repurchased 27 thousand shares at an aggregate price of $192 thousand and 43 thousand shares at an aggregate price of $306 thousand during the three- and nine-month periods ended September 30, 2015. The Company repurchased a total of 142 thousand shares of common stock during the three- and nine-month periods ended September 30, 2014 at an aggregate price of $962 thousand. |
Revolving Line of Credit
Revolving Line of Credit | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Revolving Line of Credit | 12. REVOLVING LINE OF CREDIT: In September 2013, the Company entered into a three-year secured revolving credit facility (the “Credit Facility”). The Credit Facility allows the Company to borrow up to $10.0 million and includes an additional accordion feature that allows the Company to request an additional $5.0 million as needed, extending the total credit facility borrowing capacity to $15 million over its three-year term. The Credit Facility is secured by the personal property of the Company and its domestic subsidiaries, and is subject to normal covenants. The Company was in compliance with all covenants as of September 30, 2015. Under the terms of the Credit Facility, any advances will accrue interest at a variable per annum rate of interest equal to, as elected by the Company, (i) the Prime Rate, or (ii) the LIBOR Rate plus 1.5%. Interest is due and payable, in arrears, on a monthly basis. The Company will be obligated to pay an annual commitment fee of 0.15% on the daily undrawn balance of the facility. Any amounts outstanding under the Credit Facility will be due on September 23, 2016. No amounts were drawn under this facility as of September 30, 2015. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 13. COMMITMENTS AND CONTINGENCIES: Lone Star Value Investors, LP, on behalf of itself and other stockholders (collectively “Lone Star”), filed a preliminary consent solicitation statement (the “Lone Star Consent Solicitation”) on Schedule 14A with the Securities and Exchange Commission on October 26, 2015. Lone Star intends to solicit written consents from stockholders of the Company to remove and replace the independents members of the Company’s Board of Directors. The Company intends to vigorously defend itself and continue to act in the best interest of all stockholders. The Company is involved in legal proceedings, claims, and litigation arising in the ordinary course of business not specifically discussed herein. We have not formed an opinion that an unfavorable outcome in any of the actions is either “probable” or “remote” and are unable to estimate the magnitude or range of any potential loss. |
Business Combinations (Tables)
Business Combinations (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Branchbird [Member] | |
Summary of Preliminary Purchase Price Allocation | The Company performed a preliminary fair value allocation of the purchase price among assets, liabilities and identified intangible assets. The preliminary allocation of the purchase price was as follows: Total Life (In Years) (In Thousands) Accounts receivable $ 540 Other assets 16 Accounts payable and accrued expenses (86 ) Customer relationships 2,100 5 Goodwill (deductible for tax purposes) 1,613 Total purchase price $ 4,183 |
Zero2Ten [Member] | |
Summary of Preliminary Purchase Price Allocation | The Company performed a fair value allocation of the purchase price among assets, liabilities and identified intangible assets. The allocation of the purchase price was as follows: Total Life (In Years) (In Thousands) Accounts receivable $ 1,596 Other assets 142 Deferred revenue (1,158 ) Accounts payable and accrued expenses (580 ) Customer relationships 2,800 5 Goodwill (deductible for tax purposes) 6,210 Total purchase price $ 9,010 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
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 Thousands) Balance at September 30, 2015: Financial assets: Money market investment $ 4,084 $ 4,084 $ — $ — Total financial assets $ 4,084 $ 4,084 $ — $ — Financial liabilities: Contingent earnout consideration $ 6,909 $ — $ — $ 6,909 Total financial liabilities $ 6,909 $ — $ — $ 6,909 Balance at December 31, 2014: Financial assets: Money market investment $ 4,084 $ 4,084 $ — $ — Total financial assets $ 4,084 $ 4,084 $ — $ — |
Reconciliation of the Beginning and Ending Level 3 Net Liabilities | A reconciliation of the beginning and ending Level 3 net liabilities for the nine-month period ended September 30, 2015 is as follows: Fair Value (In Thousands) Balance at December 31, 2014 $ — Initial estimate of fair value related to Zero2Ten contingent earnout consideration 4,367 Initial estimate of fair value related to Branchbird contingent earnout consideration 1,428 Accretion of contingent earnout consideration (included within other expense, net) 1,114 Ending balance at September 30, 2015 $ 6,909 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
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 (In Thousands) 2015 $ 913 2016 $ 1,273 2017 $ 1,086 2018 $ 953 2019 and beyond $ 1,155 |
Accrued Expenses and Other Li22
Accrued Expenses and Other Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Payables and Accruals [Abstract] | |
Components of Accrued Liabilities | Accrued liabilities as of September 30, 2015 and December 31, 2014 consisted of the following: September 30, December 31, (In Thousands) Accrued short-term contingent earnout consideration $ 3,711 $ — Accrued bonuses 2,701 4,268 Accrued commissions 1,674 3,012 Accrued vacation 2,755 2,106 Accrued payroll related liabilities 3,044 2,055 Accrued software expense 770 820 Short-term portion of lease abandonment accrual 583 609 Deferred rent 253 400 Accrued sales and use tax 53 274 Other accrued expenses 3,488 2,598 Total $ 19,032 $ 16,142 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
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 Nine Months Ended 2015 2014 2015 2014 (In Thousands, Except Per Share Data) Basic net income per share: Net income applicable to common shares $ 1,027 $ 976 $ 581 $ 3,408 Weighted average common shares outstanding 11,568 11,197 11,463 11,092 Basic net income per share of common stock $ 0.09 $ 0.09 $ 0.05 $ 0.31 Diluted net income per share: Net income applicable to common shares $ 1,027 $ 976 $ 581 $ 3,408 Weighted average common shares outstanding 11,568 11,197 11,463 11,092 Dilutive effects of stock options 1,707 1,775 1,809 1,881 Weighted average common shares, assuming dilutive effect of stock options 13,275 12,972 13,272 12,973 Diluted net income per share of common stock $ 0.08 $ 0.08 $ 0.04 $ 0.26 |
Business Combinations - Additio
Business Combinations - Additional Information (Detail) - USD ($) | Aug. 17, 2015 | Mar. 13, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2015 |
Business Acquisition [Line Items] | ||||||
Direct acquisition costs | $ 321,000 | $ 932,000 | ||||
Zero2Ten [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Acquisition date | Mar. 13, 2015 | |||||
Initial cash consideration | $ 4,500,000 | $ 4,643,000 | ||||
Working capital adjustment | 457,000 | |||||
Initial cash consideration increased | 4,400,000 | |||||
Direct acquisition costs | $ 611,000 | |||||
Estimated earnout consideration, Fair value | 4,400,000 | |||||
Earnout consideration | 8,600,000 | |||||
Business combination, contingent earnout considerations accrual | 5,400,000 | $ 5,400,000 | ||||
Purchase price consideration | 9,010,000 | |||||
Gross cash consideration | $ 5,000,000 | |||||
Increase in carrying value of goodwill | $ 101,000 | |||||
Branchbird [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Acquisition date | Aug. 17, 2015 | |||||
Purchase price consideration | $ 4,200,000 | |||||
Initial cash consideration | 2,700,000 | $ 2,755,000 | ||||
Working capital adjustment | 19,000 | |||||
Initial cash consideration increased | 1,400,000 | |||||
Direct acquisition costs | 321,000 | 321,000 | ||||
Estimated earnout consideration, Fair value | 1,400,000 | |||||
Earnout consideration | 2,400,000 | |||||
Business combination, contingent earnout considerations accrual | $ 1,500,000 | $ 1,500,000 | ||||
Purchase price consideration | $ 4,183,000 |
Business Combinations - Summary
Business Combinations - Summary of Preliminary Purchase Price Allocation (Detail) - USD ($) $ in Thousands | Aug. 17, 2015 | Mar. 13, 2015 | Sep. 30, 2015 |
Branchbird [Member] | |||
Business Acquisition [Line Items] | |||
Customer relationships | 5 years | ||
Accounts receivable | $ 540 | ||
Other assets | 16 | ||
Accounts payable and accrued expenses | (86) | ||
Customer relationships | 2,100 | ||
Goodwill (deductible for tax purposes) | 1,613 | ||
Total purchase price | $ 4,183 | ||
Zero2Ten [Member] | |||
Business Acquisition [Line Items] | |||
Customer relationships | 5 years | ||
Accounts receivable | $ 1,596 | ||
Other assets | 142 | ||
Deferred revenue | (1,158) | ||
Accounts payable and accrued expenses | (580) | ||
Customer relationships | 2,800 | ||
Goodwill (deductible for tax purposes) | 6,210 | ||
Total purchase price | $ 9,010 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
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 | |||
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 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Share-based Compensation [Abstract] | ||||
Stock-based compensation expense under share based plans | $ 408 | $ 369 | $ 1,258 | $ 1,181 |
Proceeds from employee stock plans and stock option exercises | 246 | $ 656 | 1,020 | $ 1,483 |
Unrecognized compensation expense | $ 1,900 | $ 1,900 | ||
Expected weighted-average recognition period for unrecognized compensation expense | 1 year 4 months 24 days |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||||||
Income tax provision | $ 559,000 | $ 714,000 | $ 303,000 | $ 2,721,000 | ||
Effective tax rate | 35.20% | 34.30% | ||||
Deferred tax asset valuation allowance | $ 1,500,000 | $ 1,500,000 | $ 36,200,000 | $ 1,500,000 | ||
Pre-tax income or losses period | 3 years | |||||
Unrecognized tax benefits, penalties and interest expense | $ (37,000) | $ 20,000 | (33,000) | $ 60,000 | ||
Uncertain tax positions increase (decrease) | $ 0 |
Fair Value Measurement - Compan
Fair Value Measurement - Company's Fair Value Hierarchy for its Financial Assets and Liabilities (Detail) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Financial assets: | ||
Total financial assets | $ 4,084 | $ 4,084 |
Financial liabilities: | ||
Total financial liabilities | 6,909 | |
Zero2Ten and Branchbird Contingent Earnout Consideration [Member] | ||
Financial liabilities: | ||
Total financial liabilities | 6,909 | |
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 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Financial liabilities: | ||
Total financial liabilities | 6,909 | |
Significant Unobservable Inputs (Level 3) [Member] | Zero2Ten and Branchbird Contingent Earnout Consideration [Member] | ||
Financial liabilities: | ||
Total financial liabilities | $ 6,909 |
Fair Value Measurement - Additi
Fair Value Measurement - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2015 | Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | ||
Financial instruments transferred into or out of Level 3 classification | $ 0 | $ 0 |
Fair Value Measurement - Reconc
Fair Value Measurement - Reconciliation of the Beginning and Ending Level 3 Net Liabilities (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Accretion of contingent earnout consideration (included within other expense, net) | $ (1,114) |
Significant Unobservable Inputs (Level 3) [Member] | Zero2Ten and Branchbird Contingent Earnout Consideration [Member] | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Accretion of contingent earnout consideration (included within other expense, net) | 1,114 |
Ending balance | 6,909 |
Significant Unobservable Inputs (Level 3) [Member] | Zero2Ten and Branchbird Contingent Earnout Consideration [Member] | Branchbird [Member] | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Initial estimate of fair value related to Branchbird/Zero2Ten contingent earnout consideration | 1,428 |
Significant Unobservable Inputs (Level 3) [Member] | Zero2Ten and Branchbird Contingent Earnout Consideration [Member] | Zero2Ten [Member] | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Initial estimate of fair value related to Branchbird/Zero2Ten contingent earnout consideration | $ 4,367 |
Goodwill and Intangible Asset32
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
Goodwill | $ 19,872 | $ 19,872 | $ 12,049 | ||
Amortization expense of intangible assets | 215 | $ 75 | $ 454 | $ 226 | |
Expiration of amortization | Various times through 2020 | ||||
Amortization from capitalized internally developed software | $ 44 | $ 53 | $ 145 | $ 160 |
Goodwill and Intangible Asset33
Goodwill and Intangible Assets - Estimated Annual Amortization Expense (Detail) $ in Thousands | Sep. 30, 2015USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2,015 | $ 913 |
2,016 | 1,273 |
2,017 | 1,086 |
2,018 | 953 |
2019 and beyond | $ 1,155 |
Accrued Expenses and Other Li34
Accrued Expenses and Other Liabilities - Components of Accrued Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Components of accrued liabilities | ||
Accrued short-term contingent earnout consideration | $ 3,711 | |
Accrued bonuses | 2,701 | $ 4,268 |
Accrued commissions | 1,674 | 3,012 |
Accrued vacation | 2,755 | 2,106 |
Accrued payroll related liabilities | 3,044 | 2,055 |
Accrued software expense | 770 | 820 |
Short-term portion of lease abandonment accrual | 583 | 609 |
Deferred rent | 253 | 400 |
Accrued sales and use tax | 53 | 274 |
Other accrued expenses | 3,488 | 2,598 |
Total | $ 19,032 | $ 16,142 |
Accrued Expenses and Other Li35
Accrued Expenses and Other Liabilities - Additional Information (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Accrued Liabilities [Line Items] | ||
Accrued expenses and other liabilities | $ 3,198 | $ 411 |
Contingent Consideration Earn Out Liability [Member] | ||
Accrued Liabilities [Line Items] | ||
Accrued expenses and other liabilities | $ 3,198 | |
Lease Abandonment Accrual [Member] | ||
Accrued Liabilities [Line Items] | ||
Accrued expenses and other liabilities | $ 411 |
Net Income Per Share - Reconcil
Net Income Per Share - Reconciliation of Net Income and Weighted Average Shares used in Computing Basic and Diluted Net Income Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Basic net income per share: | ||||
Net income applicable to common shares | $ 1,027 | $ 976 | $ 581 | $ 3,408 |
Weighted average common shares outstanding | 11,568 | 11,197 | 11,463 | 11,092 |
Basic net income per share of common stock | $ 0.09 | $ 0.09 | $ 0.05 | $ 0.31 |
Diluted net income per share: | ||||
Net income applicable to common shares | $ 1,027 | $ 976 | $ 581 | $ 3,408 |
Weighted average common shares outstanding | 11,568 | 11,197 | 11,463 | 11,092 |
Dilutive effects of stock options | 1,707 | 1,775 | 1,809 | 1,881 |
Weighted average common shares, assuming dilutive effect of stock options | 13,275 | 12,972 | 13,272 | 12,973 |
Diluted net income per share of common stock | $ 0.08 | $ 0.08 | $ 0.04 | $ 0.26 |
Net Income Per Share - Addition
Net Income Per Share - Additional Information (Detail) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Earnings Per Share [Abstract] | ||||
Number of shares due to anti-dilutive effect | 69 | 303 | 68 | 314 |
Share-based awards outstanding | 4,000 | 4,000 | 4,000 | 4,000 |
Stock Repurchase Program - Addi
Stock Repurchase Program - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2008 | Dec. 31, 2007 | |
Equity, Class of Treasury Stock [Line Items] | ||||||
Stock repurchase program | $ 23,100,000 | $ 5,000,000 | ||||
Stock repurchase program expiration date | Sep. 19, 2014 | |||||
Repurchase of common stock | 27,000 | 142,000 | 43,000 | 142,000 | ||
Aggregate purchase price common stock | $ 192,000 | $ 962,000 | $ 306,000 | $ 962,000 | ||
Prior Stock Repurchase Program [Member] | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Stock repurchase program expiration date | Sep. 23, 2016 |
Revolving Line of Credit - Addi
Revolving Line of Credit - Additional Information (Detail) - Revolving Credit Facility [Member] - USD ($) | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2013 | |
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 | Sep. 23, 2016 | |
Amount drawn under credit facility | $ 0 |