DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Mar. 12, 2018 | Jun. 30, 2017 | |
Document and Entity Information Abstract | |||
Entity Registrant Name | StarTek, Inc. | ||
Entity Central Index Key | 1,031,029 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $ 154.8 | ||
Entity Common Stock, Shares Outstanding | 16,199,122 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Revenue | $ 292,604 | $ 307,200 | $ 282,134 |
Cost of services | 260,242 | 270,779 | 257,830 |
Gross profit | 32,362 | 36,421 | 24,304 |
Selling, general and administrative expenses | 32,584 | 33,196 | 34,427 |
Impairment losses and restructuring charges, net | 520 | 364 | 3,890 |
Operating income (loss) | (742) | 2,861 | (14,013) |
Interest and other (expense), net | (970) | (1,748) | (1,139) |
Income (loss) before income taxes | (1,712) | 1,113 | (15,152) |
Income tax expense (benefit) | (436) | 718 | 464 |
Net income (loss) | (1,276) | 395 | (15,616) |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustments | 141 | 297 | (47) |
Change in fair value of derivative instruments | 691 | (248) | (427) |
Pension remeasurement | 601 | 253 | 0 |
Comprehensive income (loss) | $ 157 | $ 697 | $ (16,090) |
Net income (loss) per common share - basic | $ (0.08) | $ 0.03 | $ (1.01) |
Net income (loss) per common share - diluted | $ (0.08) | $ 0.02 | $ (1.01) |
Weighted average common shares outstanding - basic | 15,966 | 15,731 | 15,529 |
Weighted average common shares outstanding - diluted | 15,966 | 16,258 | 15,529 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 1,456 | $ 1,039 |
Trade accounts receivable, net | 53,052 | 60,179 |
Prepaid expenses | 2,351 | 2,140 |
Other current assets | 1,290 | 1,670 |
Total current assets | 58,149 | 65,028 |
Property, plant and equipment, net | 19,943 | 23,276 |
Intangible assets, net | 5,557 | 6,697 |
Goodwill | 9,077 | 9,077 |
Other long-term assets | 3,272 | 2,730 |
Total assets | 95,998 | 106,808 |
Current liabilities: | ||
Accounts payable | 7,019 | 7,612 |
Accrued liabilities: | ||
Accrued employee compensation and benefits | 12,850 | 13,767 |
Other accrued liabilities | 2,105 | 2,083 |
Line of credit | 0 | 26,025 |
Other current debt | 2,725 | 2,740 |
Other current liabilities | 1,249 | 2,137 |
Total current liabilities | 25,948 | 54,364 |
Long-term Line of Credit | 19,078 | 0 |
Other debt | 3,128 | 5,500 |
Other liabilities | 905 | 2,200 |
Total liabilities | 49,059 | 62,064 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Common stock, 32,000,000 non-convertible shares, $0.01 par value, authorized; 16,175,351 and 15,811,516 shares issued and outstanding at December 31, 2017 and 2016, respectively | 162 | 158 |
Additional paid-in capital | 82,594 | 80,560 |
Accumulated other comprehensive income (loss) | 1,384 | (49) |
Accumulated deficit | (37,201) | (35,925) |
Total stockholders’ equity | 46,939 | 44,744 |
Total liabilities and stockholders’ equity | $ 95,998 | $ 106,808 |
CONSOLIDATED BALANCE SHEETS _Pa
CONSOLIDATED BALANCE SHEETS [Parenthetical] - $ / shares | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, non-convertible shares authorized | 32,000,000 | 32,000,000 |
Common stock, shares issued | 16,175,351 | 15,811,516 |
Common stock, shares outstanding | 16,175,351 | 15,811,516 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Activities | |||
Net income (loss) | $ (1,276) | $ 395 | $ (15,616) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 11,080 | 12,250 | 13,261 |
Impairment losses | 109 | 174 | 323 |
Provision for doubtful accounts | (40) | 112 | 132 |
Gain (loss) on sale of assets | 3 | (3) | (509) |
Share-based compensation expense | 1,015 | 1,722 | 1,469 |
Amortization of deferred gain on sale leaseback transaction | 0 | 0 | (168) |
Deferred income taxes | (327) | 265 | 210 |
Income tax benefit related to other comprehensive income | (511) | (31) | (282) |
Changes in operating assets and liabilities: | |||
Trade accounts receivable, net | 7,187 | (2,343) | (2,580) |
Prepaid expenses and other assets | 781 | 723 | (490) |
Accounts payable | (537) | (2,331) | 764 |
Accrued and other liabilities | (1,956) | 4 | (1,150) |
Net cash provided by (used in) operating activities | 15,528 | 10,937 | (4,636) |
Investing Activities | |||
Proceeds from sale of assets | 350 | 40 | 982 |
Purchases of property, plant and equipment | (7,185) | (3,797) | (7,722) |
Cash paid for acquisitions of businesses | 0 | (825) | (18,258) |
Net cash used in investing activities | (6,835) | (4,582) | (24,998) |
Financing Activities | |||
Proceeds from the issuance of common stock | 1,023 | 400 | 917 |
Proceeds from line of credit | 307,866 | 302,711 | 318,890 |
Principal payments on line of credit | (314,813) | (308,900) | (291,316) |
Principal payments on other debt | (2,860) | (3,055) | (1,972) |
Net cash provided by (used in) financing activities | (8,784) | (8,844) | 26,519 |
Effect of exchange rate changes on cash | 508 | 902 | 435 |
Net increase (decrease) in cash and cash equivalents | 417 | (1,587) | (2,680) |
Cash and cash equivalents at beginning of period | 1,039 | 2,626 | 5,306 |
Cash and cash equivalents at end of period | 1,456 | 1,039 | 2,626 |
Supplemental Disclosure of Cash Flow Information | |||
Cash paid for interest | 1,623 | 1,553 | 1,601 |
Cash paid for income taxes | 373 | 564 | 348 |
Supplemental Disclosure of Noncash Investing Activities | |||
Assets acquired through capital lease and direct financing | $ 0 | $ 54 | $ 7,388 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
Balance at Dec. 31, 2014 | $ 54,681 | $ 154 | $ 76,056 | $ (825) | $ (20,704) |
Balance (in shares) at Dec. 31, 2014 | 15,414,803 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock | 939 | $ 3 | 936 | ||
Issuance of common stock (in shares) | 284,595 | ||||
Share-based compensation expense | 1,447 | 1,447 | |||
Net income (loss) | (15,616) | (15,616) | |||
Change in accumulated other comprehensive income (loss) | 474 | 474 | |||
Balance at Dec. 31, 2015 | 41,925 | $ 157 | 78,439 | (351) | (36,320) |
Balance (in shares) at Dec. 31, 2015 | 15,699,398 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock | 400 | $ 1 | 399 | ||
Issuance of common stock (in shares) | 112,118 | ||||
Share-based compensation expense | 1,722 | 1,722 | |||
Net income (loss) | 395 | 395 | |||
Change in accumulated other comprehensive income (loss) | 302 | 302 | |||
Balance at Dec. 31, 2016 | $ 44,744 | $ 158 | 80,560 | (49) | (35,925) |
Balance (in shares) at Dec. 31, 2016 | 15,811,516 | 15,811,516 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock | $ 1,023 | $ 4 | 1,019 | ||
Issuance of common stock (in shares) | 363,835 | ||||
Share-based compensation expense | 1,015 | 1,015 | |||
Net income (loss) | (1,276) | (1,276) | |||
Change in accumulated other comprehensive income (loss) | 1,433 | 1,433 | |||
Balance at Dec. 31, 2017 | $ 46,939 | $ 162 | $ 82,594 | $ 1,384 | $ (37,201) |
Balance (in shares) at Dec. 31, 2017 | 16,175,351 | 16,175,351 |
BASIS OF PRESENTATION AND SUMMA
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES StarTek, Inc. ("STARTEK") is a comprehensive contact center and business process outsourcing services company. For over 25 years, we have partnered with our clients to effectively handle their customers throughout the customer life cycle. We have provided customer experience management solutions that solve strategic business challenges so that businesses can effectively manage customer relationships across all contact points. Headquartered in Greenwood Village, Colorado, we operate facilities in the U.S., Canada, Honduras, Jamaica, and the Philippines. We operate within three business segments: Domestic, Nearshore, and Offshore. Refer to Note 16, "Segment Information," for further information. Consolidation Our consolidated financial statements include the accounts of all wholly-owned subsidiaries after elimination of significant intercompany balances and transactions. Use of Estimates The preparation of our consolidated financial statements in conformity with U.S. generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect the reported amounts included in the financial statements and accompanying notes. Estimates and assumptions are reviewed periodically, and the effects of revisions are reflected in the period they are determined to be necessary. Concentration of Credit Risk We are exposed to credit risk in the normal course of business, primarily related to accounts receivable and derivative instruments. Historically, the losses related to credit risk have been immaterial. We regularly monitor credit risk to mitigate the possibility of current and future exposures resulting in a loss. We evaluate the creditworthiness of clients prior to entering into an agreement to provide services and on an on-going basis as part of the processes of revenue recognition and accounts receivable. We do not believe we are exposed to more than a nominal amount of credit risk in our derivative hedging activities, as the counter parties are established, well-capitalized financial institutions. Foreign Currency The assets and liabilities of our foreign operations that are recorded in foreign currencies are translated into U.S. dollars at exchange rates prevailing at the balance sheet date. Revenues and expenses are translated at the weighted-average exchange rate during the reporting period. Resulting translation adjustments, net of applicable deferred income taxes, are recorded in accumulated other comprehensive income. Foreign currency transaction gains and losses are included in interest and other income (expense), net in our consolidated statements of operations and comprehensive loss. Such gains and losses were not material for any period presented. Revenue Recognition We invoice our clients monthly in arrears and recognize revenues for such services when completed. Substantially all of our contractual arrangements are based either on a production rate, meaning that we recognize revenue based on the billable hours or minutes of each call center agent, or on a rate per transaction basis. These rates could be based on the number of paid hours the agent works, the number of minutes the agent is available to answer calls, or the number of minutes the agent is actually handling calls for the client, depending on the client contract. Production rates vary by client contract and can fluctuate based on our performance against certain pre-determined criteria related to quality and performance. Additionally, some clients are contractually entitled to penalties when we are out of compliance with certain quality and/or performance obligations defined in the client contract. Such penalties are recorded as a reduction to revenue as incurred based on a measurement of the appropriate penalty under the terms of the client contract. Likewise, some client contracts stipulate that we are entitled to bonuses should we meet or exceed these predetermined quality and/or performance obligations. These bonuses are recognized as incremental revenue in the period in which they are earned. As a general rule, our contracts do not qualify for separate unit of accounting for multiple deliverables. We provide initial training to customer service representatives upon commencement of new contracts and recognize revenues for such training as the services are provided based upon the production rate (i.e., billable hours and rates related to the training services as stipulated in our contractual arrangements). Accordingly, the corresponding training costs, consisting primarily of labor and related expenses, are expensed as incurred. We have assessed the impact of ASU 2014-09 and have determined that our current revenue recognition process is substantially in compliance with the ASU. We will use the Modified Retrospective transition method for adoption of ASU 2014-09, therefore, we do not anticipate any impact to our consolidated financial statements upon adoption on January 1, 2018. Allowance for Doubtful Accounts An allowance for doubtful accounts is provided for known and estimated potential losses arising from sales to customers based on a periodic review of these accounts. The allowance for doubtful accounts was $52 and $244 , as of December 31, 2017 and 2016, respectively. Fair Value Measurements The carrying value of our cash and cash equivalents, accounts receivable, notes receivable, accounts payable, restructuring liabilities, and line of credit approximate fair value because of their short-term nature. Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities, which are required to be recorded at fair value, we consider the principal or most advantageous market in which we would transact and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as inherent risk, transfer restrictions, and credit risk. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy requires that the Company maximize the use of observable inputs and minimize the use of unobservable inputs. The levels of the fair value hierarchy are described below: Level 1 - Quoted prices for identical instruments traded in active markets. Level 2 - Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. Level 3 - Unobservable inputs that cannot be supported by market activity and that are significant to the fair value of the asset or liability, such as the use of certain pricing models, discounted cash flow models and similar techniques that use significant assumptions. These unobservable inputs reflect our own estimates of assumptions that market participants would use in pricing the asset or liability. Refer to Note 8, “Fair Value Measurements,” for additional information on how we determine fair value for our assets and liabilities. Cash and cash equivalents We consider cash equivalents to be short-term, highly liquid investments readily convertible to known amounts of cash and so near their maturity at purchase that they present insignificant risk of changes in value because of changes in interest rates. Derivative Instruments and Hedging Activities Our derivative instruments consist of foreign currency forward and option contracts and are recorded as either an asset or liability measured at its fair value, with changes in the fair value of qualifying hedges recorded in other comprehensive income. Changes in a derivative’s fair value are recognized currently in the statements of operations unless specific hedge accounting criteria are met. Special accounting for qualifying hedges allows a derivative’s gains and losses to offset the related results of the hedged item and requires that we must formally document, designate and assess the effectiveness of transactions that receive hedge accounting treatment. We generally are able to apply cash flow hedge accounting which associates the results of the hedges with forecasted future intercompany expenses. The current mark-to-market gain or loss is recorded in accumulated other comprehensive income and will be re-classified to operations as the forecasted intercompany expenses are incurred, typically within one year. During 2017 , 2016 , and 2015 , our cash flow hedges were highly effective and hedge ineffectiveness was not material. While we expect that our derivative instruments that have been designated as hedges will continue to meet the conditions for hedge accounting, if hedges do not qualify as highly effective or if we do not believe that forecasted transactions will occur, the changes in the fair value of the derivatives used as hedges will be reflected in earnings. Property, Plant and Equipment Property, plant, and equipment, are stated at depreciated cost. Additions and improvement activities are capitalized. Maintenance and repairs are expensed as incurred. Assets held under capital leases are recorded at the lower of the net present value of the minimum lease payments or the fair value of the leased asset at the inception of the lease. Depreciation and amortization is computed using the straight-line method based on their estimated useful lives, as follows: Estimated Useful Life Buildings and building improvements 10-30 years Telephone and computer equipment 3-5 years Software 3 years Furniture, fixtures, and miscellaneous equipment 5-7 years We depreciate leasehold improvements associated with operating leases over the shorter of 7 years or remaining life of the lease plus renewal term, if renewal is more likely than not. Amortization expense related to assets recorded under capital leases is included in depreciation and amortization expense. Impairment of Long-Lived Assets We periodically, on at least an annual basis, evaluate potential impairments of our long-lived assets. In our annual evaluation or when we determine that the carrying value of a long-lived asset may not be recoverable based upon the existence of one or more indicators of impairment, we evaluate the projected undiscounted cash flows related to the assets. If these cash flows are less than the carrying values of the assets, we measure the impairment based on the excess of the carrying value of the long-lived asset over the long-lived asset’s fair value. Our projections contain assumptions pertaining to anticipated levels of utilization and revenue that may or may not be under contract but are based on our experience and/or projections received from our customers. Refer to Note 4 “Impairment Losses and Restructuring Charges” for additional information on impairment of long-lived assets recognized during the years ended December 31, 2017, 2016 and 2015. Goodwill Goodwill is recorded at fair value and not amortized, but is reviewed for impairment at least annually or more frequently if impairment indicators arise. Our goodwill is allocated by reporting unit and is evaluated for impairment by first performing a qualitative assessment ("Step 0") to determine whether a quantitative goodwill test is necessary. If it is determined, based on qualitative factors, the fair value of the reporting unit is "more likely than not" less than the carrying amount or if significant changes related to the reporting unit have occurred that could materially impact fair value, a quantitative goodwill impairment test would be required. We can elect to forgo the qualitative assessment and perform the quantitative test. If the carrying amount of a reporting unit exceeds its fair value, "Step 1" is performed to determine if goodwill is impaired and to measure the amount of impairment loss to recognize, if any. This step compares the implied fair value of goodwill with the carrying amount of goodwill. If the carrying amount of goodwill exceeds the implied fair value, an impairment loss is recognized in an amount equal to that excess. The implied fair value of goodwill is determined by assigning the fair value of the reporting unit to all the assets and liabilities of that unit (including any unrecognized intangible assets) as if the reporting unit had been acquired in a business combination. We define our reporting units to be the same as our operating segments and have elected to perform the annual impairment assessment for goodwill in the fourth quarter. Refer to Note 3 "Goodwill and Intangible Assets" for additional information on impairment of goodwill recognized during the years ended December 31, 2017, 2016 and 2015. Intangible Assets We amortize all acquisition-related intangible assets that are subject to amortization using the straight-line method over the estimated useful life based on economic benefit as follows: Estimated Useful Life Developed technology 8 years Customer relationships 3-10 years Trade name 6-7 years We perform a review of intangible assets to determine if facts and circumstances indicate that the useful life is shorter than we had originally estimated or that the carrying amount of assets may not be recoverable. If such facts and circumstances exist, we assess recoverability by comparing the projected undiscounted net cash flows associated with the related asset or group of assets over their remaining lives against their respective carrying amounts. Impairments, if any, are based on the excess of the carrying amount over the fair value of those assets. If the useful life is shorter than originally estimated, we accelerate the rate of amortization and amortize the remaining carrying value over the new shorter useful life. For further discussion of goodwill and identified intangible assets, refer to Note 3, "Goodwill and Intangible Assets." Restructuring Charges On an ongoing basis, management assesses the profitability and utilization of our facilities and in some cases management has chosen to close facilities. Severance payments that occur from reductions in workforce are in accordance with our postemployment policy and/or statutory requirements that are communicated to all employees upon hire date; therefore, severance liabilities are recognized when they are determined to be probable and estimable. Other liabilities for costs associated with an exit or disposal activity are recognized when the liability is incurred, instead of upon commitment to an exit plan. A significant assumption used in determining the amount of the estimated liability for closing a facility is the estimated liability for future lease payments on vacant facilities. We determine our estimate of sublease payments based on our ability to successfully negotiate early termination agreements with landlords, a third-party broker or management’s assessment of our ability to sublease the facility based upon the market conditions in which the facility is located. If the assumptions regarding early termination and the timing and amounts of sublease payments prove to be inaccurate, we may be required to record additional losses, or conversely, a future gain. Leases Rent holidays, landlord/tenant incentives and escalations are included in some instances in the base price of our rent payments over the term of our operating leases. We recognize rent holidays and rent escalations on a straight-line basis over the lease term. The landlord/tenant incentives are recorded as deferred rent and amortized on a straight line basis over the lease term. Assets held under capital leases are included in property, plant and equipment, net in our consolidated balance sheets and depreciated over the term of the lease. Rent payments under the leases are recognized as a reduction of the capital lease obligation and interest expense. Income Taxes Income taxes are accounted for under the asset and liability method. Deferred income taxes reflect net effects of temporary differences between carrying amounts of assets and liabilities for financial reporting purposes and amounts used for income tax purposes. We are subject to foreign income taxes on our foreign operations. We are required to estimate our income taxes in each jurisdiction in which we operate. This process involves estimating our actual current tax exposure, together with assessing temporary differences resulting from differing treatment of items for tax and financial reporting purposes. The tax effects of these temporary differences are recorded as deferred tax assets or deferred tax liabilities. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period during which such rates are enacted. We record a valuation allowance when it is more likely than not that we will not realize the net deferred tax assets in a certain jurisdiction. We record tax benefits when they are more likely than not to be realized. Our policy is to reflect penalties and interest as part of income tax expense as they become applicable. Stock-Based Compensation We recognize expense related to all share-based payments to employees, including grants of employee stock options, based on the grant-date fair values amortized straight-line over the period during which the employees are required to provide services in exchange for the equity instruments. We include an estimate of forfeitures when calculating compensation expense. We use the Black-Scholes method for valuing stock-based awards. See Note 11, “Share-Based Compensation and Employee Benefit Plans,” for further information regarding the assumptions used to calculate share-based payment expense. Recently Issued Accounting Standards In February 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220) (“ASU 2018-02”), Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income , which allows for stranded tax effects in accumulated other comprehensive income resulting from the U.S. Tax Cuts and Jobs Act to be reclassified to retained earnings. The guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. Early adoption is permitted. We are currently evaluating the impact of adopting the new standard. In August 2017, FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815) ("ASU 2017-12"), Targeted Improvements to Accounting for Hedging Activities . The amendments in this ASU better align an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. To meet that objective, the amendments expand and refine hedge accounting for both nonfinancial and financial risk components and align the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. The guidance is effective for annual reporting periods beginning after December 15, 2018, including interim reporting periods within those annual reporting periods. We do not expect the adoption of ASU 2017-12 will have a material impact on our consolidated financial statements. In May 2017, FASB issued ASU 2017-09, Compensation - Stock Compensation (Topic 718) ("ASU 2017-09"), Scope of Modification Accounting . The amendments in this ASU provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. An entity should account for the effects of a modification unless all the following are met: 1. The fair value of the modified award is the same as the fair value of the original award immediately before the original award is modified. If the modification does not affect any of the inputs to the valuation technique that the entity uses to value the award, the entity is not required to estimate the value immediately before and after the modification; 2. The vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award is modified; and 3. The classification of the modified award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the original award is modified. The guidance is effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within those annual reporting periods. We do not expect the adoption of ASU 2017-09 will have a material impact on our consolidated financial statements. In January 2017, FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350) ("ASU 2017-04"), Simplifying the Test for Goodwill Impairment . To simplify the subsequent measurement of goodwill, the amendments eliminate Step 2 from the goodwill impairment test. The annual, or interim, goodwill impairment test is performed by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. In addition, income tax effects from any tax-deductible goodwill on the carrying amount of the reporting unit should be considered when measuring the goodwill impairment loss, if applicable. The guidance is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019 and early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. We do not expect the adoption of ASU 2017-04 will have a material impact on our consolidated financial statements. In October 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-16, Income Taxes (Topic 740) ("ASU 2016-16"), Intra-Entity Transfers of Assets Other Than Inventory . The purpose of ASU 2016-16 is to simplify the income tax accounting of an intra-entity transfer of an asset other than inventory and to record its effect when the transfer occurs. The guidance is effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within those annual reporting periods and early adoption is permitted. We do not expect the adoption of ASU 2016-16 will have a material impact on our consolidated financial statements. Financial Instruments - Credit Losses (Topic 326) ("ASU 2016-13"), Measurement of Credit Losses on Financial Instruments . The standard significantly changes how entities will measure credit losses for most financial assets and certain other instruments that aren't measured at fair value through net income. The standard will replace today's "incurred loss" approach with an "expected loss" model for instruments measured at amortized cost. For available-for-sale debt securities, entities will be required to record allowances rather than reduce the carrying amount, as they do today under the other-than-temporary impairment model. It also simplifies the accounting model for purchased credit-impaired debt securities and loans. This ASU is effective for annual periods beginning after December 15, 2019, and interim periods therein. Early adoption is permitted for annual periods beginning after December 15, 2018, and interim periods therein. We do not expect the adoption of ASU 2016-13 will have a material impact on our consolidated financial statements. In March 2016, FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718) ("ASU2016-09"), Improvements to Employee Share-Based Payment Accounting . The amendments in ASU 2016-09 address multiple aspects of the accounting for share-based payment transactions, including income tax consequences, classification of awards as either equity or liability, and classification on the statements of cash flows. This ASU is effective for annual periods beginning after December 15, 2017, and interim periods within annual periods beginning after December 15, 2018. Early adoption is permitted in any interim or annual period. An entity that elects early adoption must adopt all of the amendments in the same period, and any adjustments should be reflected as of the beginning of the fiscal year that includes the interim period. We adopted this ASU for the first quarter of 2017 and it did not have a material impact on our consolidated financial statements. In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-02, Leases (Topic 842) (“ASU 2016-02”). These amendments require the recognition of lease assets and lease liabilities on the balance sheet by lessees for those leases currently classified as operating leases under ASC 840 “Leases”. These amendments also require qualitative disclosures along with specific quantitative disclosures. These amendments are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted. Entities are required to apply the amendments at the beginning of the earliest period presented using a modified retrospective approach. We are currently evaluating the impact that the adoption of ASU 2016-02 will have on our consolidated financial statements, and we anticipate that adoption of ASU 2016-02 will have an impact to the financial statement presentation of right of use asset, lease liability, amortization expense, and lease expense. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”). ASU 2014-09 amends the guidance for revenue recognition to replace numerous, industry-specific requirements and converges areas under this topic with those of the International Financial Reporting Standards. The ASU implements a five-step process for customer contract revenue recognition that focuses on transfer of control, as opposed to transfer of risk and rewards. The amendment also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenues and cash flows from contracts with customers. Other major provisions include the capitalization and amortization of certain contract costs, ensuring the time value of money is considered in the transaction price, and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. The amendments in this ASU are effective for reporting periods beginning after December 15, 2017, and early adoption is prohibited. Entities can transition to the standard either retrospectively or as a cumulative-effect adjustment as of the date of adoption. We have assessed the impact that the adoption of ASU 2014-09 will have on our financial statements. We have assessed the impact of ASU 2014-09 and have determined that our current revenue recognition process is in compliance with the ASU. Therefore, we do not anticipate any impact to our consolidated financial statements upon adoption on January 1, 2018. We will use the Modified Retrospective transition method of adoption for ASU 2014-09. We are currently evaluating the additional disclosures that will be required upon adoption. |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
ACQUISITIONS | ACQUISITIONS Accent Marketing Services On June 1, 2015, we acquired 100% of the membership interests of Accent Marketing Services, L.L.C. ("ACCENT") for $17,492 , pursuant to a Membership Interest Purchase Agreement with MDC Corporate (US) Inc. and MDC Acquisition Inc. ACCENT is a business process outsourcing company providing contact center services and customer engagement solutions across six locations in the U.S. and Jamaica. During the first quarter of 2016, we finalized the valuation of the identifiable assets acquired and liabilities assumed as of the acquisition date resulting in an immaterial adjustment to accounts payable and goodwill. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS Goodwill As of December 31, 2017 , we have recognized $9,077 of goodwill related to business acquisitions. All goodwill is assigned to our Domestic segment. We perform a goodwill impairment analysis at least annually (in the fourth quarter of each year), unless indicators of impairment exist in interim periods. We performed a quantitative assessment to determine if it was more likely than not that the fair value of each of our reporting units with goodwill exceeded its carrying value. In making this assessment, we evaluated overall business and overall economic conditions since the date of our acquisitions as well as expectations of projected revenues and cash flows, assumptions impacting the weighted average cost of capital and overall global industry and market conditions. We concluded that the fair value of the domestic reporting unit was in excess of its carrying value and goodwill was not impaired as of December 31, 2017 . Intangible Assets The following table presents our intangible assets as of December 31, 2017 : Gross Intangibles Accumulated Amortization Net Intangibles Weighted Average Amortization Period (years) Developed technology $ 390 $ 231 $ 159 2.15 Customer relationships 7,550 2,720 4,830 3.11 Trade name 1,050 482 568 2.24 $ 8,990 $ 3,433 $ 5,557 2.99 Amortization expense of intangible assets was $1,140 , $1,150 , and $852 for the years ended December 31, 2017 , 2016 and 2015 , respectively. We estimated future amortization expense for the succeeding years relating to the intangible assets resulting from acquisitions as follows: Year Ending December 31, Amount 2018 $ 1,140 2019 1,131 2020 1,128 2021 1,004 2022 862 Thereafter 292 We evaluated our intangible assets based on current economic and business indicators and determined they were not impaired as of December 31, 2017 . |
IMPAIRMENT LOSSES AND RESTRUCTU
IMPAIRMENT LOSSES AND RESTRUCTURING CHARGES | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
IMPAIRMENT LOSSES AND RESTRUCTURING CHARGES | IMPAIRMENT LOSSES AND RESTRUCTURING CHARGES Impairment Losses During the second quarter of 2017, we closed our facility in Tell City, Indiana. The closure resulted in the recognition of an impairment loss of $53 related to the disposal of certain assets. During the fourth quarter of 2017, we evaluated certain equipment and recognized an impairment loss of $56 related to items that were no longer useful. During 2015, we pursued opening additional capacity in our Nearshore segment. When it became evident that this additional capacity was not necessary, we recognized $323 of impairment losses related to certain assets we determined to be no longer useful. In September 2016, we impaired the remaining value of the assets when we determined that we would not be able to sell them, resulting in an additional loss of $174 . During 2015, we terminated the lease on a portion of under-utilized space in the Offshore segment. As part of this transaction, we sold the assets that were occupying this space to the new lessee and recognized a gain on sale of $509 , which is included in interest and other income (expense), net. Restructuring Charges The table below summarizes the balance of accrued restructuring costs by segment, which is included in other current liabilities in our consolidated balance sheets, and the changes during the years ended December 31, 2017 , 2016 , and 2015 : Facility-Related and Employee Related Costs Domestic Nearshore Offshore Total Balance as of January 1, 2015 96 9 — 105 Expense (reversal) 1,561 112 64 1,737 Payments, net of receipts for sublease (855 ) (9 ) (64 ) (928 ) Balance as of December 31, 2015 802 112 — 914 Expense (reversal) (129 ) 25 — (104 ) Payments, net of receipts for sublease (673 ) (137 ) — (810 ) Balance as of December 31, 2016 — — — — Expense (reversal) 411 — — 411 Payments, net of receipts for sublease (402 ) — — (402 ) Balance as of December 31, 2017 9 — — 9 Domestic Segment In 2017, we established restructuring reserves in our Tell City location for employee related costs of $262 when the decision was made and facility related costs of $97 at the time the facilities were vacated. We recognized $52 as incurred for certain expenses, and expect to pay the remaining accrued costs by the end of second quarter 2018. In 2015, we decided to close facilities in Enid, Oklahoma, and Kansas City, Missouri, as well as Accent's former headquarters office in Jeffersonville, Indiana. In conjunction with the ACCENT acquisition, we also eliminated a number of positions that were considered redundant. We established restructuring reserves for employee related costs of $1,289 at the time the decisions were made, and facility related costs of $272 at the time the facilities were vacated. All costs were paid as of the end of 2016. Nearshore Segment During 2015, we pursued opening additional capacity in our nearshore segment. When it became evident that this additional capacity was not necessary, we decided to abandon the plan and establish a restructuring reserve of $ 112 for the remaining facility costs. All costs were paid as of the end of 2016. Offshore Segment During 2015, we continued to pursue operating efficiencies through streamlining our organizational structure and leveraging our shared services centers in low-cost regions. We eliminated several positions as a result and incurred restructuring charges of $ 64 . We paid all of these costs in 2015 and the restructuring plan is complete. IT Transformation During the third quarter 2015, we completed our initiative to outsource our data centers and move to a hosted solutions model. We recognized $1,461 and $ 1,704 as incurred, on this project in 2015 and 2014, respectively. |
NET LOSS PER SHARE
NET LOSS PER SHARE | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
NET LOSS PER SHARE | NET INCOME (LOSS) PER SHARE Basic net income (loss) per common share is computed based on our weighted average number of common shares outstanding. Diluted earnings per share is computed based on our weighted average number of common shares outstanding plus the effect of dilutive stock options, non-vested restricted stock, and deferred stock units, using the treasury stock method. When a net loss is reported, potentially issuable common shares are excluded from the computation of diluted earnings per share as their effect would be anti-dilutive. The following table sets forth the computation of basic and diluted shares for the periods indicated (in thousands): Twelve Months Ended December 31, 2017 2016 2015 Shares used in basic earnings per share calculation: 15,966 15,731 15,731 15,529 Effect of dilutive securities: Stock options — 455 — Restricted stock/Deferred stock units — 72 — Total effects of dilutive securities — 527 — Shares used in dilutive earnings per share calculation: 15,966 16,258 15,529 The following shares were not included in the computation of diluted earnings per share because the exercise price exceeded the value of the shares, or we reported a net loss, and the effect would have been anti-dilutive (in thousands): Twelve Months Ended December 31, 2017 2016 2015 Anti-dilutive securities: Stock options 2,322 83 2,405 Restricted stock/Deferred stock units 50 1 9 Total anti-dilutive securities 2,372 84 2,414 |
PRINCIPAL CLIENTS
PRINCIPAL CLIENTS | 12 Months Ended |
Dec. 31, 2017 | |
Risks and Uncertainties [Abstract] | |
PRINCIPAL CLIENTS | PRINCIPAL CLIENTS The following table represents revenue concentration of our principal clients: Year Ended December 31, 2017 2016 2015 Revenue Percentage Revenue Percentage Revenue Percentage T-Mobile $ 88,975 30.4 % $ 74,686 24.3 % $ 69,427 24.6 % Sprint $ 29,732 10.2 % $ 45,137 14.7 % $ 25,422 9.0 % AT&T $ 29,184 10.0 % $ 38,257 12.5 % $ 35,019 12.4 % We enter into master service agreements (MSAs) that cover all of our work for each client. These MSAs are typically multi-year contracts that include auto-renewal provisions. They typically do not include contractual minimum volumes and are generally terminable by the customer or us with prior written notice. To limit credit risk, management performs periodic credit analyses and maintains allowances for uncollectible accounts as deemed necessary. Under certain circumstances, management may require clients to pre-pay for services. As of December 31, 2017 , management believes reserves are appropriate and does not believe that any significant credit risk exists. $82,690 , $51,684 and $33,980 for the years ended December 31, 2017 , 2016 and 2015 , respectively. |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS | DERIVATIVE INSTRUMENTS We use derivatives to partially offset our business exposure to foreign currency exchange risk. We enter into foreign currency forward and option contracts to hedge our anticipated operating commitments that are denominated in foreign currencies, including forward contracts and range forward contracts (a transaction where both a call option is purchased and a put option is sold). The contracts cover periods commensurate with expected exposure, generally three to twelve months, and are principally unsecured foreign exchange contracts. The market risk exposure is essentially limited to risk related to currency rate movements. We operate in Canada, Jamaica, and the Philippines where the functional currencies are the Canadian dollar, the Jamaican dollar, and the Philippine peso, respectively, which are used to pay labor and other operating costs in those countries. We provide funds for these operating costs as our client contracts generate revenues which are paid in U.S. dollars. In Honduras, our functional currency is the U.S. dollar and the majority of our costs are denominated in U.S. dollars. We have elected to designate our derivatives as cash flow hedges in order to associate the results of the hedges with forecasted expenses. During the years ended December 31, 2017 , 2016 , and 2015 , we entered into Canadian dollar forward and dollar range forward contracts for a notional amount of 10,900 , 19,555 , and 8,580 Canadian dollars, respectively, and during the years ended December 31, 2017 , 2016 and 2015 , we entered into Philippine peso non-deliverable forward and range forward contracts for a notional amount of 2,338,000 , 1,433,800 , and 1,029,100 Philippine pesos, respectively. As of December 31, 2017 , we have not entered into any arrangements to hedge our exposure to fluctuations in Honduran lempira or Jamaican dollar relative to the U.S. dollar. The following table shows the notional amount of our foreign exchange cash flow hedging instruments as of December 31, 2017 , 2016 , and 2015 : December 31, 2017 December 31, 2016 December 31, 2015 Local Currency Notional Amount U.S. Dollar Notional Amount Local Currency Notional Amount U.S. Dollar Notional Amount Local Currency Notional Amount U.S. Dollar Notional Amount Canadian dollar 10,900 $ 8,345 17,080 $ 12,723 2,470 $ 1,997 Philippine peso 1,272,000 24,486 1,178,800 25,231 329,000 7,263 $ 32,831 $ 37,954 $ 9,260 The Canadian dollar and Philippine peso foreign exchange contracts are to be delivered periodically through December 2018 at a purchase price of approximately $8,345 and $24,486 , respectively, and as such we expect unrealized gains and losses recorded in accumulated other comprehensive income will be reclassified to operations as the forecasted intercompany expenses are incurred, typically within twelve months. Derivative assets and liabilities associated with our hedging activities are measured at gross fair value as described in Note 8, “Fair Value Measurements,” and are reflected as separate line items in our consolidated balance sheets. The following table shows the effect of our derivative instruments designated as cash flow hedges for the years ended December 31, 2017 , 2016 , and 2015 : Gain (Loss) Recognized in AOCI, net of tax Years Ended December 31, Gain (Loss) Reclassified from AOCI into Income Years Ended December 31, 2017 2016 2015 2017 2016 2015 Cash flow hedges: Foreign exchange contracts 1,056 $ (832 ) $ (1,906 ) (82 ) $ (431 ) $ (2,587 ) |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy requires that the Company maximize the use of observable inputs and minimize the use of unobservable inputs. The levels of the fair value hierarchy are described below: Level 1 - Quoted prices for identical instruments traded in active markets. Level 2 - Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. Level 3 - Unobservable inputs that cannot be supported by market activity and that are significant to the fair value of the asset or liability, such as the use of certain pricing models, discounted cash flow models and similar techniques that use significant assumptions. These unobservable inputs reflect our own estimates of assumptions that market participants would use in pricing the asset or liability. Derivative Instruments The values of our derivative instruments are derived from pricing models using inputs based upon market information, including contractual terms, market prices and yield curves. The inputs to the valuation pricing models are observable in the market, and as such are generally classified as Level 2 in the fair value hierarchy. The following tables set forth our derivative assets and liabilities measured at fair value on a recurring basis by level within the fair value hierarchy. These balances are included in Other current assets and Other current liabilities, respectively, on our balance sheet. As of December 31, 2017 Level 1 Level 2 Level 3 Total Derivative assets: Foreign exchange contracts $ — $ 566 $ — $ 566 Total fair value of assets measured on a recurring basis $ — $ 566 $ — $ 566 Derivative liabilities: Foreign exchange contracts $ — $ 175 $ — $ 175 Total fair value of liabilities measured on a recurring basis $ — $ 175 $ — $ 175 As of December 31, 2016 Level 1 Level 2 Level 3 Total Derivative assets: Foreign exchange contracts $ — $ 19 $ — $ 19 Total fair value of assets measured on a recurring basis $ — $ 19 $ — $ 19 Derivative liabilities: Foreign exchange contracts $ — $ 980 $ — $ 980 Total fair value of liabilities measured on a recurring basis $ — $ 980 $ — $ 980 |
PROPERTY, PLANT & EQUIPMENT
PROPERTY, PLANT & EQUIPMENT | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT & EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT Our property, plant and equipment as of December 31, 2017 and 2016 consisted of the following, by asset class: 2017 2016 Land, buildings and improvements 18,211 20,582 Telephone and computer equipment 44,116 40,298 Software 36,720 35,626 Furniture, fixtures, and miscellaneous equipment 15,913 15,341 Construction in progress 1,876 1,618 Assets acquired under capital lease 13,530 13,530 130,366 126,995 Less accumulated depreciation (103,111 ) (98,690 ) Less accumulated amortization under capital lease (7,312 ) (5,029 ) Total property, plant and equipment, net $ 19,943 $ 23,276 Depreciation and amortization expense for property, plant and equipment was $9,940 and $11,100 for the years ended December 31, 2017 and 2016 , respectively. |
DEBT
DEBT | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Secured Revolving Credit Facility On April 29, 2015, we entered into a secured revolving credit facility ("Credit Agreement") with BMO Harris Bank N.A. ("Lender"). The Credit Agreement is effective through April 2020 and the amount we may borrow under the agreement is the lesser of the borrowing base calculation or $50,000 , and so long as no default has occurred and with the Administrative Agent’s consent, we may increase the maximum availability to $70,000 in $5,000 increments. We may request letters of credit under the Credit Agreement in an aggregate amount equal to the lesser of the borrowing base calculation (minus outstanding advances) and $5,000 . The borrowing base is generally defined as 85% of our eligible accounts receivable less certain reserves as defined in the Credit Agreement. Our borrowings bear interest at one-month LIBOR plus 1.50% to 1.75% , depending on current availability. We will pay letter of credit fees equal to the applicable margin times the daily maximum amount available to be drawn under all letters of credit outstanding and a monthly unused fee at a rate per annum of 0.25% on the aggregate unused commitment under the Credit Agreement. As of December 31, 2017 , outstanding letters of credit totaled $893 . The Credit Agreement contains standard affirmative and negative covenants that may restrict or limit our ability to sell assets, incur additional indebtedness and engage in mergers and acquisitions. We are required to maintain a minimum consolidated fixed charge coverage ratio of 1.00 to 1.00 if a reporting trigger period commences. On November 6, 2015, we entered into a second amendment to our Credit Agreement with the Lender. The amendment replaced the fixed charge coverage ratio with a Consolidated EBITDA covenant, modified the Consolidated EBITDA definition, and decreased the limits on future capital expenditures. On January 20, 2016, we entered into a third amendment to our Credit Agreement with the Lender. The amendment established the Consolidated EBITDA covenants for each month of 2016 that apply if we cross the availability threshold in the Credit Agreement. On March 28, 2017, we entered into a fourth amendment to our Credit Agreement with BMO Harris Bank N.A. (the “Lender”). The fourth amendment extends the term of the agreement until March 28, 2022 while also amending certain of the financial covenants as follows: 1) reduces the maximum consolidated fixed charge coverage ratio and 2) removes the monetary cap on non-financed capital expenditures for 2017 and each fiscal year thereafter during the term of the Credit Agreement. In addition, the amendment removes the requirement that funds collected be automatically applied to our credit facility balance, unless a trigger event occurs. As a result, the balance sheet classification has been changed from short-term liabilities to long-term liabilities beginning in the first quarter of 2017. As of December 31, 2017 , we were in compliance with all debt covenants, and we had outstanding borrowings of $19,078 , and our remaining borrowing capacity was $29,602 . Other debt From time to time, we enter into financing agreements such as notes payable and capital lease obligations, in order to facilitate the fit-out of new locations. The implied interest rates for these agreements range from 3% to 20% ; the terms range from five to seven years. As of December 31, 2017 and 2016, the outstanding balances for the current portion of these financing agreements were $2,377 and $2,242 , respectively, included in Other current debt on the balance sheet. The outstanding balances for the non-current portion of the financing arrangements were $3,084 and $5,473 respectively, included in Other debt on the balance sheet. |
SHARE-BASED COMPENSATION AND EM
SHARE-BASED COMPENSATION AND EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
SHARE-BASED COMPENSATION AND EMPLOYEE BENEFIT PLANS | SHARE-BASED COMPENSATION AND EMPLOYEE BENEFIT PLANS We have a 2008 Equity Incentive Plan (the “Plan”), which reserved 900,000 shares of common stock for issuance pursuant to the terms of the Plan plus 274,298 shares that remained available for future issuance under prior plans on the effective date of the Plan, which was May 5, 2008. An Amended and Restated Plan was approved by our board of directors and stockholders at our annual meeting of stockholders in May 2014, which authorized an additional 500,000 shares of common stock for issuance. At our annual meeting of stockholders in June 2016, the board of directors and stockholders authorized another 250,000 shares of common stock for issuance under the Amended and Restated Plan. As of December 31, 2017 , there were 235,061 shares available for future grant under the Plan. Our plan is administered by the Compensation Committee (the "Committee") of the Board of Directors. The types of awards that may be granted under the Plan include stock options, stock appreciation rights, restricted stock, restricted stock units, performance units or other stock-based awards. The terms of the awards granted under the Plan will expire no later than ten years from the grant date. The Committee determines the vesting conditions of awards; however, subject to certain exceptions, an award that is not subject to the satisfaction of performance measures may not fully vest or become fully exercisable earlier than three years from the grant date, and the performance period for an award subject to performance measures may not be shorter than one year. At the beginning of each quarter, members of the board of directors, at their option, may elect to receive as compensation 1) stock options to purchase shares of common stock with a fair value equivalent of $ 22,500 (calculated using the Black-Scholes pricing model), 2) shares of common stock with a grant date fair value of $22,500 , 3) deferred stock units with a fair value equivalent of $22,500 (calculated using the Black-Scholes pricing model), with ownership of the common stock vesting immediately or over a period determined by the Committee and stated in the award or 4) any combination of options and common stock. Upon the date of grant, the members of the board of directors are immediately vested in the stock options or common stock. Stock Options A summary of stock option activity under the Plan is as follows: Shares Weighted Weighted-Average Outstanding as of January 1, 2017 2,497,198 $ 4.61 Granted 168,402 9.64 Exercised (257,410 ) 3.95 Forfeited/expired (66,267 ) 6.79 Expired (19,600 ) 9.72 Outstanding as of December 31, 2017 2,322,323 $ 4.94 5.90 Vested and exercisable as of December 31, 2017 1,771,119 $ 4.61 5.15 The weighted-average grant date fair value of options granted during the years ended December 31, 2017 , 2016 , and 2015 was $5.51 , $2.82 , and $3.76 , respectively. The total fair value of shares vested during the years ended December 31, 2017 , 2016 , and 2015 was $1,073 , $1,875 , and $655 , respectively. The assumptions used to determine the value of our stock-based awards under the Black-Scholes method are summarized below: 2017 2016 2015 Risk-free interest rate 2.07% - 2.45% 1.27% - 2.26% 1.71% - 2.4% Dividend yield —% —% —% Expected volatility 49.3% - 61.4% 50.0% - 61.9% 59.9% - 66.9% Expected life in years 7.7 8.2 7.6 The risk-free interest rate is based on the U.S. Treasury strip yield in effect at the time of grant with a term equal to the expected term of the stock option granted. Average expected life and volatilities are based on historical experience, which we believe will be indicative of future experience. Stock Grants and Deferred Stock Units Pursuant to the board of directors' compensation program, 0 , 0 and 2,319 shares of stock were granted in the years ended December 2017 , 2016 and 2015 respectively. The total fair value of stock grants made in the years ended December 2017 , 2016 and 2015 respectively was $0 , $0 and $22 . Deferred stock units of 17,782 , 20,187 , and 12,893 were granted to members of the board of directors during 2017 , 2016 , and 2015 respectively. The total fair value of deferred stock units granted in the years ended December 31, 2017 , 2016 , and 2015 was $180 , $90 , and $65 respectively. Deferred stock units are fully vested upon issuance and are settled in shares of common stock upon the director’s termination of service. The fair value of stock grants and deferred stock units is calculated based on the closing price of our common stock on the date of grant. Share-based Compensation Expense The compensation expense that has been charged against income for December 31, 2017 , 2016 and 2015 was $1,015 , $ 1,722 , and $1,469 , respectively, and is included in selling, general and administrative expense. As of December 31, 2017 , there was $769 of total unrecognized compensation expense related to nonvested stock options, which is expected to be recognized over a weighted-average period of 1.83 years. Employee Stock Purchase Plan Under the terms of our employee stock purchase plan ("ESPP"), eligible employees may authorize payroll deductions up to 10% of their base pay to purchase shares of our common stock at a price equal to 85% of the lower of the closing price at the beginning or end of each quarterly stock purchase period. A total of 400,000 shares were authorized under the original ESPP Plan; an Amended and Restated Plan was approved by our board of directors and stockholders at our annual meeting of stockholders in June 2016, which authorized an additional 100,000 shares of common stock for issuance. As of December 31, 2017 , 60,187 shares were available for issuance. During the years ended December 31, 2017 , 2016 , and 2015 , 33,253 , 48,414 , and 46,227 shares were purchased under this plan at an average price of $ 8.03 , $ 3.87 , and $3.92 , respectively. Total expense recognized related to the ESPP during the years ended December 31, 2017 , 2016 , and 2015 was $ 84 , $ 55 , and $50 , respectively. The assumptions used to value the shares under the ESPP using the Black-Scholes method were as follows: 2017 2016 2015 Risk-free interest rate 0.01% - 0.76% 0.21% - 0.51% 0.00% - 0.16% Dividend yield —% —% —% Expected volatility 52.5% - 61.04% 37.6% - 68.1% 21.9% - 78.9% Expected life in years 3 months 3 months 3 months The weighted average grant date fair value of these shares was $ 2.51 , and $ 1.13 , and $1.09 per share during the years ended December 31, 2017 , 2016 , and 2015 , respectively. 401(k) Plan We have a safe harbor 401(k) plan that allows participation by all eligible employees as of the first day of the month following their hire date. Eligible employees may contribute up to the maximum limit determined by the Internal Revenue Code. Participants receive a matching contribution after completing one year of service. We match 100% of the participant’s contribution for the first 3% and 50% of the participant’s contribution for the next 2% . Company matching contributions to the 401(k) plan totaled $664 , $582 , and $493 for the years ended December 31, 2017 , 2016 , and 2015 , respectively. Philippines Pension Plan The Company sponsors a non-contributory defined benefit pension plan (the “Pension Plan”) for its covered employees in the Philippines. The Pension Plan provides defined benefits based on years of service and final salary. All permanent employees meeting the minimum service requirement are eligible to participate in the Pension Plan. Remeasurement changes are reflected in Accumulated Other Comprehensive Income (AOCI). As of December 31, 2017, the Pension Plan was unfunded. The Company doesn't expect to make any cash contributions to the Pension Plan. As of December 31, 2017 and 2016, the defined benefit obligation of $173 and $550 was included in other long term liabilities in the Consolidated Balance Sheets. |
INTEREST AND OTHER INCOME (EXPE
INTEREST AND OTHER INCOME (EXPENSE), NET | 12 Months Ended |
Dec. 31, 2017 | |
Other Income and Expenses [Abstract] | |
INTEREST AND OTHER (INCOME) EXPENSE, NET | INTEREST AND OTHER INCOME (EXPENSE), NET Interest and other income (expense), net for the years ended December 31, 2017 , 2016 , and 2015 were composed of the following: Year Ended December 31, 2017 2016 2015 Interest income $ 5 $ — $ 2 Interest expense (1,609 ) (1,573 ) (1,685 ) Gain (loss) on disposal of assets (3 ) 3 509 Other income (expense) 637 (178 ) 35 Interest and other income (expense), net $ (970 ) $ (1,748 ) $ (1,139 ) |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The domestic and foreign source component of income (loss) from continuing operations before income taxes was: Year Ended December 31, 2017 2016 2015 U.S. $ (8,888 ) $ (5,244 ) $ (21,246 ) Foreign 7,176 6,357 6,094 Total $ (1,712 ) $ 1,113 $ (15,152 ) Significant components of the provision for income taxes from continuing operations were: Year Ended December 31, 2017 2016 2015 Current: Federal $ (686 ) $ (28 ) $ (264 ) State (50 ) (23 ) 33 Foreign 611 504 360 Total current (benefit) expense $ (125 ) $ 453 $ 129 Deferred: Federal $ (324 ) $ 203 $ 164 State (28 ) 27 11 Foreign 41 35 160 Total deferred (benefit) expense $ (311 ) $ 265 $ 335 Income tax expense $ (436 ) $ 718 $ 464 GAAP requires all items be considered, including items recorded in other comprehensive income, in determining the amount of tax benefit that results from a loss from continuing operations that should be allocated to continuing operations. Significant components of deferred tax assets and deferred tax liabilities included in the accompanying consolidated balance sheets in Other long-term assets and Other liabilities, respectively, as of December 31, 2017 , 2016 , and 2015 were: Year Ended December 31, 2017 2016 2015 Long-term deferred tax assets (liabilities): Fixed assets $ 1,770 $ 2,511 $ 2,077 Prepaid expenses (411 ) (569 ) (554 ) Accrued stock compensation 2,781 4,641 4,114 Accrued restructuring costs 2 — 303 Work opportunity credit carryforward 5,233 5,226 5,234 Operating loss carryforward 10,663 16,231 18,066 Intangibles and goodwill (64 ) (77 ) (53 ) Derivative Instruments (48 ) 354 202 Cumulative Translation adjustment (965 ) (1,381 ) (1,178 ) Other 137 297 39 Net long-term deferred tax assets $ 19,098 $ 27,233 $ 28,250 Valuation allowance (18,939 ) (27,384 ) (28,162 ) Total net deferred tax asset (liability) $ 159 $ (151 ) $ 88 We consider all available evidence to determine whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become realizable. Management considers the scheduled reversal of deferred tax liabilities (including the impact of available carryback and carryforward periods), and projected taxable income in assessing the realizability of deferred tax assets. In making such judgments, significant weight is given to evidence that can be objectively verified. In order to fully realize the U.S. deferred tax assets, we will need to generate sufficient taxable income in future periods before the expiration of the deferred tax assets governed by the tax code. We do not provide for deferred taxes on the excess of the financial reporting basis over the tax basis in our investments in foreign subsidiaries that are essentially permanent in duration or not subject to taxation in the US or in the local country. In general, it is our practice and intention to reinvest the earnings of our foreign subsidiaries in those operations. Generally, the earnings of our foreign subsidiaries become subject to U.S. taxation based on certain provisions in U.S. tax law such as the recently enacted territorial transition tax under section 965 and under certain other circumstances. Exceptions may be made on a year-by-year basis to repatriate current year earnings of certain foreign subsidiaries based on cash needs in the U.S. At December 31, 2017 , 2016 , and 2015 , U.S. income and foreign withholding taxes have not been provided for on approximately $ 0 , $ 0 , and $1,300 , respectively, of unremitted earnings of subsidiaries operating outside of the U.S. These earnings are estimated to represent the excess of the financial reporting over the tax basis in our investments in those subsidiaries and would become subject to U.S. income tax if they were remitted to the U.S. Differences between U.S. federal statutory income tax rates and our effective tax rates for the years ended December 31, 2017 , 2016 , and 2015 for continuing operations were: Year Ended December 31, 2017 2016 2015 U.S. statutory tax rate 35.0 % 35.0 % 35.0 % Effect of state taxes (net of federal benefit) 24.4 % -12.2 % 1.7 % Rate differential on foreign earnings 109.5 % -146.0 % 10.9 % Foreign income taxed in the U.S. -261.4 % 133.9 % -8.3 % Uncertain tax positions 77.9 % 107.1 % -4.9 % Unremitted foreign earnings of subsidiary 16.0 % 19.7 % — % Tax expense allocation to OCI 29.8 % -2.7 % — % Effect of U.S tax rate change -466.4 % — % — % Valuation allowance 463.1 % -67.1 % -40.4 % Other permanent differences -12.4 % — % — % Stock based compensation 30.4 % — % — % True-up of deferred items -20.1 % — % — % Other, net -0.4 % -3.2 % 2.9 % Total 25.4 % 64.5 % -3.1 % As of December 31, 2017 , we had gross federal net operating loss carry forwards of approximately $49,942 expiring beginning in 2030 and gross state net operating loss carry forwards of approximately $70,014 expiring beginning in 2018 . The Tax Cuts and Jobs Act (the “Act”), signed into law on December 22, 2017, makes significant modifications to U.S. federal income tax laws including reducing the corporate tax rate to 21 percent starting January 1, 2018 and transitioning the U.S. to a territorial tax regime. Consequently, we have recorded an adjustment to the Company’s net deferred tax liability of $582 and a corresponding net adjustment to deferred income tax (benefit) of $(582) for the year ended December 31, 2017. The passage of the Act will result in a one-time reduction in the Company’s deferred tax assets related to net operating loss carryforwards of approximately $6,452 with a corresponding reduction in the Company’s valuation allowance of $6,452 . Also, the Tax provides there will still be US tax consequences of our foreign operations in future periods due to the recently enacted global intangible low tax income (GILTI) provisions and other US tax provisions even though the U.S. is transitioning to a territorial tax regime. We are still evaluating the impact of these provisions and we are not yet able to reasonably estimate the effect of this provision of the Act on our results in future periods. Based on the Company's current interpretation and subject to the release of the related regulations and any future interpretive guidance, the Company believes the effects of the change in tax law incorporated herein are substantially complete. Additional information that may affect our income tax accounts and disclosures would include further clarification and guidance on how the Internal Revenue Service will implement tax reform, further clarification and guidance on how state taxing authorities will implement tax reform and the related effect on our state income tax returns, completion of our 2017 tax return filings, and the potential for additional guidance from the SEC or the FASB related to tax reform. We have been granted “Tax Holidays” as an incentive to attract foreign investment by the governments of Honduras, Jamaica, and certain qualifying locations in the Philippines. Generally, a Tax Holiday is an agreement between us and a foreign government under which we receive certain tax benefits in that country. In Honduras, we have been granted approval for an indefinite exemption from income taxes. The tax holidays for our qualifying Philippines facilities expire at staggered dates through 2019. Our Tax Holidays could be eliminated if there are future changes in our operations or the governmental authorities approve legislation to modify the Tax Holidays in the various taxing jurisdictions. The aggregate reduction in income tax expense for the years ended December 31, 2017 , 2016 , and 2015 was $1,338 , $1,136 , and $1,106 . Under accounting standards for uncertainty in income taxes (ASC 740-10), a company recognizes a tax benefit in the financial statements for an uncertain tax position only if management’s assessment is that the position is “more likely than not” (i.e., a likelihood greater than 50 percent) to be allowed by the tax jurisdiction based solely on the technical merits of the position. The term “tax position” in the accounting standards for income taxes refers to a position in a previously filed tax return or a position expected to be taken in a future tax return that is reflected in measuring current or deferred income tax assets and liabilities for interim or annual periods. The following table indicates the changes to our unrecognized tax benefits for the years ended December 31, 2017 , 2016 , and 2015 . The term “unrecognized tax benefits” in the accounting standards for income taxes refers to the differences between a tax position taken or expected to be taken in a tax return and the benefit measured and recognized in the financial statements. If recognized, all of these benefits would impact our income tax expense, before consideration of any related valuation allowance. Years Ended December 31, 2017 2016 2015 Unrecognized, January 1, $ 4,155 $ 2,962 $ 2,215 Additions based on tax positions taken in current year $ 2,872 $ 1,193 $ 888 Reductions based on tax positions taken in prior year $ (4,155 ) $ — $ (141 ) Unrecognized, December 31, $ 2,872 $ 4,155 $ 2,962 We file numerous consolidated and separate income tax returns in the U.S. federal jurisdiction and in many state jurisdictions, as well as in Canada, the Philippines, Costa Rica and Honduras. Our U.S. federal returns and most state returns for tax years 2014 and forward are subject to examination. Canadian returns for tax years 2012 and forward are subject to examination. Our returns in the Philippines in 2014, Costa Rica in 2013 and Honduras in 2013 are subject to examination. In December 2014, our Canadian subsidiary was notified that its income tax returns for the years ended December 31, 2013 and 2012 are under examination. The Company has received a notice of assessment, but we do not believe it is more likely than not that we owe the taxes that have been assessed. Therefore, we filed an appeal in June 2017 and have not accrued a liability related to this matter. Because the Canadian Revenue Agency considers us a large corporation (a corporation which has taxable capital employed in Canada over $10 million ), we were required to pay half of the reassessment, of $0.4 million , which is recorded in other long-term assets on our balance sheet. We do not anticipate receiving a decision on our appeal in the next twelve months. Also, in May 2016, our Philippine subsidiary received notification that its income tax return for the year ended December 31, 2014 is under examination. The Company has received an assessment notice for a de minimis amount that it has accrued and is in the process of resolving this examination. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended |
Dec. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Accumulated other comprehensive income (loss) consisted of the following items: Foreign Currency Translation Adjustment Unrealized Gain (Loss) on Cash Flow Hedging Instruments Defined Benefit Plan Total Balance at January 1, 2015 $ 1,486 $ (2,311 ) $ — $ (825 ) Foreign currency translation 75 — — 75 Reclassification to operations — 2,587 — 2,587 Unrealized losses — (1,906 ) — (1,906 ) Tax (provision) benefit (28 ) (254 ) — (282 ) Balance at December 31, 2015 $ 1,533 $ (1,884 ) $ — $ (351 ) Foreign currency translation 481 — — 481 Reclassification to operations — 431 — 431 Unrealized losses — (832 ) — (832 ) Pension remeasurement — — 253 253 Tax (provision) benefit (184 ) 153 — (31 ) Balance at December 31, 2016 $ 1,830 $ (2,132 ) $ 253 $ (49 ) Foreign currency translation 206 — — 206 Reclassification to operations 22 59 — 81 Unrealized losses — 1,056 — 1,056 Pension remeasurement — — 601 601 Tax provision (87 ) (424 ) — (511 ) Balance at December 31, 2017 $ 1,971 $ (1,441 ) $ 854 $ 1,384 Reclassifications out of accumulated other comprehensive income for the years ended December 31, 2017 , 2016 , and 2015 were as follows: Details About Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Statement Where Net Income is Presented Year Ended December 31, 2017 2016 2015 Gains and losses on cash flow hedges Foreign exchange contracts (COS) $ 81 $ 416 $ 2,401 Cost of Services Foreign exchange contracts (SG&A) 1 15 186 Selling, general and administrative expenses $ 82 $ 431 $ 2,587 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Operating Leases We lease facilities and equipment under various non-cancelable operating leases. Some of these leases have renewal clauses that vary both in length and fee, based on our negotiations with the lessors. Rent expense, including equipment rentals, for the twelve months ended December 31, 2017 , 2016 , and 2015 was $11,302 , $11,954 , and $11,875 , respectively. Capital Leases We leased several asset types under various non-cancelable capital leases with original terms between three and seven years. See Footnote 10 for more information. Minimum lease payments As of December 31, 2017 , approximate minimum annual lease payments were as follows: Operating leases Capital leases 2018 $ 11,228 $ 2,134 2019 7,561 2,049 2020 4,335 487 2021 2,985 — 2022 2,610 — Thereafter 3,689 — Total minimum lease payments $ 32,408 $ 4,670 Less amount representing interest $ (509 ) Present value of capital lease obligations $ 4,161 Capital lease obligations, current portion $ 1,829 Capital lease obligations, long term portion $ 2,332 The current and long term capital lease obligations above are included in other current debt and other debt, respectively, on the consolidated balance sheets. Legal Proceedings We have been involved from time to time in litigation arising in the normal course of business, none of which is expected by management to have a material adverse effect on our business, consolidated financial condition, results of operations or cash flows. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION We operate our business within three reportable segments, based on the geographic regions in which our services are rendered: Domestic, Nearshore and Offshore. For the year ended December 31, 2017 , our Domestic segment included the operations of thirteen facilities in the U.S. and one facility in Canada. Our Nearshore segment included the operations of two facilities in Honduras and one facility in Jamaica. Our Offshore segment included the operations of four facilities in the Philippines. We primarily evaluate segment operating performance in each reporting segment based on net sales and gross profit. Certain operating expenses are not allocated to each reporting segment; therefore, we do not present income statement information by reporting segment below the gross profit level. Information about our reportable segments, which correspond to the geographic areas in which we operate, for the years ended December 31, 2017 , 2016 , and 2015 is as follows: For the Year Ended December 31, 2017 2016 2015 Revenue: Domestic 171,188 $ 186,061 $ 169,945 Offshore 77,074 76,868 72,914 Nearshore 44,342 44,271 39,275 Total $ 292,604 $ 307,200 $ 282,134 Gross profit: Domestic $ 7,329 $ 12,392 $ 11,614 Offshore 18,793 16,607 6,672 Nearshore 6,240 7,422 6,018 Total $ 32,362 $ 36,421 $ 24,304 Depreciation: Domestic $ 6,419 $ 7,748 $ 8,049 Offshore 2,950 3,678 4,232 Nearshore 571 824 980 Total $ 9,940 $ 12,250 $ 13,261 Capital expenditures: Domestic $ 4,113 $ 3,291 $ 4,382 Offshore 738 287 3,049 Nearshore 2,334 219 291 Total $ 7,185 $ 3,797 $ 7,722 As of December 31, 2017 2016 2015 Total assets: Domestic $ 37,991 $ 59,612 $ 67,927 Offshore 43,106 36,503 38,016 Nearshore 14,901 10,693 8,861 Total $ 95,998 $ 106,808 $ 114,804 |
QUARTERLY FINANCIAL DATA (UNAUD
QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data | QUARTERLY FINANCIAL DATA (UNAUDITED) The following represent selected information from our unaudited quarterly Statements of Operations for the years ended December 31, 2017 and 2016 . 2017 Quarters Ended March 31 June 30 September 30 December 31 Revenue $ 77,652 $ 73,979 $ 69,372 $ 71,600 Gross profit 10,014 8,987 7,319 6,041 Net income (loss) 1,793 554 (1,172 ) (2,452 ) Income tax expense (benefit) (28 ) (66 ) 30 (371 ) Comprehensive income (loss) 2,225 587 (889 ) (1,766 ) Net income (loss) per common share - basic $ 0.11 $ 0.03 $ (0.07 ) $ (0.15 ) Net income (loss) per common share - diluted $ 0.11 $ 0.03 $ (0.07 ) $ (0.15 ) 2016 Quarters Ended March 31 June 30 September 30 December 31 Revenue $ 78,035 $ 73,733 $ 78,305 $ 77,127 Gross Profit 8,388 7,011 10,347 10,675 Net income (loss) 31 (1,684 ) 856 1,192 Income tax expense (benefit) 125 46 163 384 Comprehensive income (loss) 310 (1,570 ) 855 1,133 Net income (loss) per common share - basic $ 0.00 $ (0.11 ) $ 0.05 0.08 Net income (loss) per common share - diluted $ 0.00 $ (0.11 ) $ 0.05 0.07 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS Kingston, Jamaica In January 2018, we entered into a lease agreement for a new facility in Kingston, Jamaica. Colorado Springs, Colorado In January 2018, we made the decision to discontinue our operation in Colorado Springs, Colorado. We plan to vacate the facility in March. Amazon Agreement On January 23, 2018, we and Amazon.com, Inc. (“Amazon”) entered into a transaction agreement, pursuant to which we issued to Amazon.com NV Investment Holdings LLC, a wholly owned subsidiary of Amazon, a warrant to acquire up to 4,000,000 shares (the “Warrant Shares”) of our common stock, subject to certain vesting events. We and Amazon entered into the transaction agreement in connection with existing commercial arrangements pursuant to which we provide and will continue to provide commercial services to Amazon. The vesting of the Warrant Shares is linked to payments made by Amazon or its affiliates (directly or indirectly through third parties) pursuant to the existing commercial arrangements, with full vesting tied to Amazon's payment of up to $600 million to us in connection with Amazon's receipt of commercial services from us. Aegis Transaction Agreement On March 14, 2018 we entered into a Transaction Agreement (the “Transaction Agreement”) with CSP Alpha Midco Pte Ltd, a Singapore private limited company (“Aegis”), and CSP Alpha Holdings Parent Pte Ltd, a Singapore private limited company (the “Aegis Stockholder”) pursuant to which we, Aegis and the Aegis Stockholder agreed to, among other things: (1) the sale of all of the issued and outstanding shares of the common stock of Aegis by the Aegis Stockholder to us; (2) the issuance of 20,600,000 shares, as may be adjusted for stock splits, consolidation and other similar corporate events, of our common stock in consideration of such sale; (3) the amendment of our Restated Certificate of Incorporation, as amended from time to time, in order to effect such issuance and the other transactions contemplated by the Transaction Agreement; and (4) in addition to the transactions set forth above, the purchase at the closing of additional shares of our common stock by the Aegis Stockholder, for $10 million at a price of $12 per share, subject to adjustment as set forth in the Transaction Agreement. Immediately following the consummation of the transactions contemplated by the Transaction Agreement, Aegis will become a wholly-owned subsidiary of us and the Aegis Stockholder will hold approximately 55% of our outstanding common stock. We, Aegis and the Aegis Stockholder have each agreed to customary representations, warranties and covenants in the Transaction Agreement and the transactions contemplated by the Transaction Agreement are subject to specified closing conditions. Notice of Client Termination On March 9, 2018, we received an unsigned letter from Sprint purporting to notify us that they would be eliminating all business with us by June 29, 2018, unless mutually agreed otherwise by the parties. The unsigned letter is not effective notice under the terms of the contract between the parties and we remain in discussions with Sprint regarding termination and exit. |
BASIS OF PRESENTATION AND SUM25
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Consolidation | Consolidation Our consolidated financial statements include the accounts of all wholly-owned subsidiaries after elimination of significant intercompany balances and transactions. |
Use of Estimates | Use of Estimates The preparation of our consolidated financial statements in conformity with U.S. generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect the reported amounts included in the financial statements and accompanying notes. Estimates and assumptions are reviewed periodically, and the effects of revisions are reflected in the period they are determined to be necessary. |
Concentration of Credit Risk | Concentration of Credit Risk We are exposed to credit risk in the normal course of business, primarily related to accounts receivable and derivative instruments. Historically, the losses related to credit risk have been immaterial. We regularly monitor credit risk to mitigate the possibility of current and future exposures resulting in a loss. We evaluate the creditworthiness of clients prior to entering into an agreement to provide services and on an on-going basis as part of the processes of revenue recognition and accounts receivable. We do not believe we are exposed to more than a nominal amount of credit risk in our derivative hedging activities, as the counter parties are established, well-capitalized financial institutions. |
Foreign Currency | Foreign Currency The assets and liabilities of our foreign operations that are recorded in foreign currencies are translated into U.S. dollars at exchange rates prevailing at the balance sheet date. Revenues and expenses are translated at the weighted-average exchange rate during the reporting period. Resulting translation adjustments, net of applicable deferred income taxes, are recorded in accumulated other comprehensive income. Foreign currency transaction gains and losses are included in interest and other income (expense), net in our consolidated statements of operations and comprehensive loss. |
Revenue Recognition | Revenue Recognition We invoice our clients monthly in arrears and recognize revenues for such services when completed. Substantially all of our contractual arrangements are based either on a production rate, meaning that we recognize revenue based on the billable hours or minutes of each call center agent, or on a rate per transaction basis. These rates could be based on the number of paid hours the agent works, the number of minutes the agent is available to answer calls, or the number of minutes the agent is actually handling calls for the client, depending on the client contract. Production rates vary by client contract and can fluctuate based on our performance against certain pre-determined criteria related to quality and performance. Additionally, some clients are contractually entitled to penalties when we are out of compliance with certain quality and/or performance obligations defined in the client contract. Such penalties are recorded as a reduction to revenue as incurred based on a measurement of the appropriate penalty under the terms of the client contract. Likewise, some client contracts stipulate that we are entitled to bonuses should we meet or exceed these predetermined quality and/or performance obligations. These bonuses are recognized as incremental revenue in the period in which they are earned. As a general rule, our contracts do not qualify for separate unit of accounting for multiple deliverables. We provide initial training to customer service representatives upon commencement of new contracts and recognize revenues for such training as the services are provided based upon the production rate (i.e., billable hours and rates related to the training services as stipulated in our contractual arrangements). Accordingly, the corresponding training costs, consisting primarily of labor and related expenses, are expensed as incurred. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts An allowance for doubtful accounts is provided for known and estimated potential losses arising from sales to customers based on a periodic review of these accounts. |
Fair Value Measurements | Fair Value Measurements The carrying value of our cash and cash equivalents, accounts receivable, notes receivable, accounts payable, restructuring liabilities, and line of credit approximate fair value because of their short-term nature. Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities, which are required to be recorded at fair value, we consider the principal or most advantageous market in which we would transact and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as inherent risk, transfer restrictions, and credit risk. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy requires that the Company maximize the use of observable inputs and minimize the use of unobservable inputs. The levels of the fair value hierarchy are described below: Level 1 - Quoted prices for identical instruments traded in active markets. Level 2 - Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. Level 3 - Unobservable inputs that cannot be supported by market activity and that are significant to the fair value of the asset or liability, such as the use of certain pricing models, discounted cash flow models and similar techniques that use significant assumptions. These unobservable inputs reflect our own estimates of assumptions that market participants would use in pricing the asset or liability. Refer to Note 8, “Fair Value Measurements,” for additional information on how we determine fair value for our assets and liabilities. |
Cash | Cash and cash equivalents We consider cash equivalents to be short-term, highly liquid investments readily convertible to known amounts of cash and so near their maturity at purchase that they present insignificant risk of changes in value because of changes in interest rates. |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities Our derivative instruments consist of foreign currency forward and option contracts and are recorded as either an asset or liability measured at its fair value, with changes in the fair value of qualifying hedges recorded in other comprehensive income. Changes in a derivative’s fair value are recognized currently in the statements of operations unless specific hedge accounting criteria are met. Special accounting for qualifying hedges allows a derivative’s gains and losses to offset the related results of the hedged item and requires that we must formally document, designate and assess the effectiveness of transactions that receive hedge accounting treatment. We generally are able to apply cash flow hedge accounting which associates the results of the hedges with forecasted future intercompany expenses. The current mark-to-market gain or loss is recorded in accumulated other comprehensive income and will be re-classified to operations as the forecasted intercompany expenses are incurred, typically within one year. During 2017 , 2016 , and 2015 , our cash flow hedges were highly effective and hedge ineffectiveness was not material. While we expect that our derivative instruments that have been designated as hedges will continue to meet the conditions for hedge accounting, if hedges do not qualify as highly effective or if we do not believe that forecasted transactions will occur, the changes in the fair value of the derivatives used as hedges will be reflected in earnings. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant, and equipment, are stated at depreciated cost. Additions and improvement activities are capitalized. Maintenance and repairs are expensed as incurred. Assets held under capital leases are recorded at the lower of the net present value of the minimum lease payments or the fair value of the leased asset at the inception of the lease. Depreciation and amortization is computed using the straight-line method based on their estimated useful lives, as follows: Estimated Useful Life Buildings and building improvements 10-30 years Telephone and computer equipment 3-5 years Software 3 years Furniture, fixtures, and miscellaneous equipment 5-7 years We depreciate leasehold improvements associated with operating leases over the shorter of 7 years or remaining life of the lease plus renewal term, if renewal is more likely than not. Amortization expense related to assets recorded under capital leases is included in depreciation and amortization expense. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets We periodically, on at least an annual basis, evaluate potential impairments of our long-lived assets. In our annual evaluation or when we determine that the carrying value of a long-lived asset may not be recoverable based upon the existence of one or more indicators of impairment, we evaluate the projected undiscounted cash flows related to the assets. If these cash flows are less than the carrying values of the assets, we measure the impairment based on the excess of the carrying value of the long-lived asset over the long-lived asset’s fair value. Our projections contain assumptions pertaining to anticipated levels of utilization and revenue that may or may not be under contract but are based on our experience and/or projections received from our customers. |
Goodwill | Goodwill Goodwill is recorded at fair value and not amortized, but is reviewed for impairment at least annually or more frequently if impairment indicators arise. Our goodwill is allocated by reporting unit and is evaluated for impairment by first performing a qualitative assessment ("Step 0") to determine whether a quantitative goodwill test is necessary. If it is determined, based on qualitative factors, the fair value of the reporting unit is "more likely than not" less than the carrying amount or if significant changes related to the reporting unit have occurred that could materially impact fair value, a quantitative goodwill impairment test would be required. We can elect to forgo the qualitative assessment and perform the quantitative test. If the carrying amount of a reporting unit exceeds its fair value, "Step 1" is performed to determine if goodwill is impaired and to measure the amount of impairment loss to recognize, if any. This step compares the implied fair value of goodwill with the carrying amount of goodwill. If the carrying amount of goodwill exceeds the implied fair value, an impairment loss is recognized in an amount equal to that excess. The implied fair value of goodwill is determined by assigning the fair value of the reporting unit to all the assets and liabilities of that unit (including any unrecognized intangible assets) as if the reporting unit had been acquired in a business combination. We define our reporting units to be the same as our operating segments and have elected to perform the annual impairment assessment for goodwill in the fourth quarter. |
Intangible Assets | Intangible Assets We amortize all acquisition-related intangible assets that are subject to amortization using the straight-line method over the estimated useful life based on economic benefit as follows: Estimated Useful Life Developed technology 8 years Customer relationships 3-10 years Trade name 6-7 years We perform a review of intangible assets to determine if facts and circumstances indicate that the useful life is shorter than we had originally estimated or that the carrying amount of assets may not be recoverable. If such facts and circumstances exist, we assess recoverability by comparing the projected undiscounted net cash flows associated with the related asset or group of assets over their remaining lives against their respective carrying amounts. Impairments, if any, are based on the excess of the carrying amount over the fair value of those assets. If the useful life is shorter than originally estimated, we accelerate the rate of amortization and amortize the remaining carrying value over the new shorter useful life. |
Restructuring Charges | Restructuring Charges On an ongoing basis, management assesses the profitability and utilization of our facilities and in some cases management has chosen to close facilities. Severance payments that occur from reductions in workforce are in accordance with our postemployment policy and/or statutory requirements that are communicated to all employees upon hire date; therefore, severance liabilities are recognized when they are determined to be probable and estimable. Other liabilities for costs associated with an exit or disposal activity are recognized when the liability is incurred, instead of upon commitment to an exit plan. A significant assumption used in determining the amount of the estimated liability for closing a facility is the estimated liability for future lease payments on vacant facilities. We determine our estimate of sublease payments based on our ability to successfully negotiate early termination agreements with landlords, a third-party broker or management’s assessment of our ability to sublease the facility based upon the market conditions in which the facility is located. If the assumptions regarding early termination and the timing and amounts of sublease payments prove to be inaccurate, we may be required to record additional losses, or conversely, a future gain. |
Leases | Leases Rent holidays, landlord/tenant incentives and escalations are included in some instances in the base price of our rent payments over the term of our operating leases. We recognize rent holidays and rent escalations on a straight-line basis over the lease term. The landlord/tenant incentives are recorded as deferred rent and amortized on a straight line basis over the lease term. Assets held under capital leases are included in property, plant and equipment, net in our consolidated balance sheets and depreciated over the term of the lease. Rent payments under the leases are recognized as a reduction of the capital lease obligation and interest expense. |
Income Taxes | Income Taxes Income taxes are accounted for under the asset and liability method. Deferred income taxes reflect net effects of temporary differences between carrying amounts of assets and liabilities for financial reporting purposes and amounts used for income tax purposes. We are subject to foreign income taxes on our foreign operations. We are required to estimate our income taxes in each jurisdiction in which we operate. This process involves estimating our actual current tax exposure, together with assessing temporary differences resulting from differing treatment of items for tax and financial reporting purposes. The tax effects of these temporary differences are recorded as deferred tax assets or deferred tax liabilities. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period during which such rates are enacted. We record a valuation allowance when it is more likely than not that we will not realize the net deferred tax assets in a certain jurisdiction. We record tax benefits when they are more likely than not to be realized. Our policy is to reflect penalties and interest as part of income tax expense as they become applicable. |
Stock-Based Compensation | Stock-Based Compensation We recognize expense related to all share-based payments to employees, including grants of employee stock options, based on the grant-date fair values amortized straight-line over the period during which the employees are required to provide services in exchange for the equity instruments. We include an estimate of forfeitures when calculating compensation expense. We use the Black-Scholes method for valuing stock-based awards. See Note 11, “Share-Based Compensation and Employee Benefit Plans,” for further information regarding the assumptions used to calculate share-based payment expense. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In February 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220) (“ASU 2018-02”), Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income , which allows for stranded tax effects in accumulated other comprehensive income resulting from the U.S. Tax Cuts and Jobs Act to be reclassified to retained earnings. The guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. Early adoption is permitted. We are currently evaluating the impact of adopting the new standard. In August 2017, FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815) ("ASU 2017-12"), Targeted Improvements to Accounting for Hedging Activities . The amendments in this ASU better align an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. To meet that objective, the amendments expand and refine hedge accounting for both nonfinancial and financial risk components and align the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. The guidance is effective for annual reporting periods beginning after December 15, 2018, including interim reporting periods within those annual reporting periods. We do not expect the adoption of ASU 2017-12 will have a material impact on our consolidated financial statements. In May 2017, FASB issued ASU 2017-09, Compensation - Stock Compensation (Topic 718) ("ASU 2017-09"), Scope of Modification Accounting . The amendments in this ASU provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. An entity should account for the effects of a modification unless all the following are met: 1. The fair value of the modified award is the same as the fair value of the original award immediately before the original award is modified. If the modification does not affect any of the inputs to the valuation technique that the entity uses to value the award, the entity is not required to estimate the value immediately before and after the modification; 2. The vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award is modified; and 3. The classification of the modified award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the original award is modified. The guidance is effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within those annual reporting periods. We do not expect the adoption of ASU 2017-09 will have a material impact on our consolidated financial statements. In January 2017, FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350) ("ASU 2017-04"), Simplifying the Test for Goodwill Impairment . To simplify the subsequent measurement of goodwill, the amendments eliminate Step 2 from the goodwill impairment test. The annual, or interim, goodwill impairment test is performed by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. In addition, income tax effects from any tax-deductible goodwill on the carrying amount of the reporting unit should be considered when measuring the goodwill impairment loss, if applicable. The guidance is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019 and early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. We do not expect the adoption of ASU 2017-04 will have a material impact on our consolidated financial statements. In October 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-16, Income Taxes (Topic 740) ("ASU 2016-16"), Intra-Entity Transfers of Assets Other Than Inventory . The purpose of ASU 2016-16 is to simplify the income tax accounting of an intra-entity transfer of an asset other than inventory and to record its effect when the transfer occurs. The guidance is effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within those annual reporting periods and early adoption is permitted. We do not expect the adoption of ASU 2016-16 will have a material impact on our consolidated financial statements. Financial Instruments - Credit Losses (Topic 326) ("ASU 2016-13"), Measurement of Credit Losses on Financial Instruments . The standard significantly changes how entities will measure credit losses for most financial assets and certain other instruments that aren't measured at fair value through net income. The standard will replace today's "incurred loss" approach with an "expected loss" model for instruments measured at amortized cost. For available-for-sale debt securities, entities will be required to record allowances rather than reduce the carrying amount, as they do today under the other-than-temporary impairment model. It also simplifies the accounting model for purchased credit-impaired debt securities and loans. This ASU is effective for annual periods beginning after December 15, 2019, and interim periods therein. Early adoption is permitted for annual periods beginning after December 15, 2018, and interim periods therein. We do not expect the adoption of ASU 2016-13 will have a material impact on our consolidated financial statements. In March 2016, FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718) ("ASU2016-09"), Improvements to Employee Share-Based Payment Accounting . The amendments in ASU 2016-09 address multiple aspects of the accounting for share-based payment transactions, including income tax consequences, classification of awards as either equity or liability, and classification on the statements of cash flows. This ASU is effective for annual periods beginning after December 15, 2017, and interim periods within annual periods beginning after December 15, 2018. Early adoption is permitted in any interim or annual period. An entity that elects early adoption must adopt all of the amendments in the same period, and any adjustments should be reflected as of the beginning of the fiscal year that includes the interim period. We adopted this ASU for the first quarter of 2017 and it did not have a material impact on our consolidated financial statements. In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-02, Leases (Topic 842) (“ASU 2016-02”). These amendments require the recognition of lease assets and lease liabilities on the balance sheet by lessees for those leases currently classified as operating leases under ASC 840 “Leases”. These amendments also require qualitative disclosures along with specific quantitative disclosures. These amendments are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted. Entities are required to apply the amendments at the beginning of the earliest period presented using a modified retrospective approach. We are currently evaluating the impact that the adoption of ASU 2016-02 will have on our consolidated financial statements, and we anticipate that adoption of ASU 2016-02 will have an impact to the financial statement presentation of right of use asset, lease liability, amortization expense, and lease expense. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”). ASU 2014-09 amends the guidance for revenue recognition to replace numerous, industry-specific requirements and converges areas under this topic with those of the International Financial Reporting Standards. The ASU implements a five-step process for customer contract revenue recognition that focuses on transfer of control, as opposed to transfer of risk and rewards. The amendment also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenues and cash flows from contracts with customers. Other major provisions include the capitalization and amortization of certain contract costs, ensuring the time value of money is considered in the transaction price, and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. The amendments in this ASU are effective for reporting periods beginning after December 15, 2017, and early adoption is prohibited. Entities can transition to the standard either retrospectively or as a cumulative-effect adjustment as of the date of adoption. We have assessed the impact that the adoption of ASU 2014-09 will have on our financial statements. We have assessed the impact of ASU 2014-09 and have determined that our current revenue recognition process is in compliance with the ASU. Therefore, we do not anticipate any impact to our consolidated financial statements upon adoption on January 1, 2018. We will use the Modified Retrospective transition method of adoption for ASU 2014-09. We are currently evaluating the additional disclosures that will be required upon adoption. |
BASIS OF PRESENTATION AND SUM26
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Estimated Useful Lives | Depreciation and amortization is computed using the straight-line method based on their estimated useful lives, as follows: Estimated Useful Life Buildings and building improvements 10-30 years Telephone and computer equipment 3-5 years Software 3 years Furniture, fixtures, and miscellaneous equipment 5-7 years Our property, plant and equipment as of December 31, 2017 and 2016 consisted of the following, by asset class: 2017 2016 Land, buildings and improvements 18,211 20,582 Telephone and computer equipment 44,116 40,298 Software 36,720 35,626 Furniture, fixtures, and miscellaneous equipment 15,913 15,341 Construction in progress 1,876 1,618 Assets acquired under capital lease 13,530 13,530 130,366 126,995 Less accumulated depreciation (103,111 ) (98,690 ) Less accumulated amortization under capital lease (7,312 ) (5,029 ) Total property, plant and equipment, net $ 19,943 $ 23,276 |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination | We amortize all acquisition-related intangible assets that are subject to amortization using the straight-line method over the estimated useful life based on economic benefit as follows: Estimated Useful Life Developed technology 8 years Customer relationships 3-10 years Trade name 6-7 years |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | The following table presents our intangible assets as of December 31, 2017 : Gross Intangibles Accumulated Amortization Net Intangibles Weighted Average Amortization Period (years) Developed technology $ 390 $ 231 $ 159 2.15 Customer relationships 7,550 2,720 4,830 3.11 Trade name 1,050 482 568 2.24 $ 8,990 $ 3,433 $ 5,557 2.99 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | We estimated future amortization expense for the succeeding years relating to the intangible assets resulting from acquisitions as follows: Year Ending December 31, Amount 2018 $ 1,140 2019 1,131 2020 1,128 2021 1,004 2022 862 Thereafter 292 |
IMPAIRMENT LOSSES AND RESTRUC28
IMPAIRMENT LOSSES AND RESTRUCTURING CHARGES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Related Costs | The table below summarizes the balance of accrued restructuring costs by segment, which is included in other current liabilities in our consolidated balance sheets, and the changes during the years ended December 31, 2017 , 2016 , and 2015 : Facility-Related and Employee Related Costs Domestic Nearshore Offshore Total Balance as of January 1, 2015 96 9 — 105 Expense (reversal) 1,561 112 64 1,737 Payments, net of receipts for sublease (855 ) (9 ) (64 ) (928 ) Balance as of December 31, 2015 802 112 — 914 Expense (reversal) (129 ) 25 — (104 ) Payments, net of receipts for sublease (673 ) (137 ) — (810 ) Balance as of December 31, 2016 — — — — Expense (reversal) 411 — — 411 Payments, net of receipts for sublease (402 ) — — (402 ) Balance as of December 31, 2017 9 — — 9 |
NET LOSS PER SHARE (Tables)
NET LOSS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The following table sets forth the computation of basic and diluted shares for the periods indicated (in thousands): Twelve Months Ended December 31, 2017 2016 2015 Shares used in basic earnings per share calculation: 15,966 15,731 15,731 15,529 Effect of dilutive securities: Stock options — 455 — Restricted stock/Deferred stock units — 72 — Total effects of dilutive securities — 527 — Shares used in dilutive earnings per share calculation: 15,966 16,258 15,529 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | The following shares were not included in the computation of diluted earnings per share because the exercise price exceeded the value of the shares, or we reported a net loss, and the effect would have been anti-dilutive (in thousands): Twelve Months Ended December 31, 2017 2016 2015 Anti-dilutive securities: Stock options 2,322 83 2,405 Restricted stock/Deferred stock units 50 1 9 Total anti-dilutive securities 2,372 84 2,414 |
PRINCIPAL CLIENTS (Tables)
PRINCIPAL CLIENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Risks and Uncertainties [Abstract] | |
Schedule of Revenue by Major Client | The following table represents revenue concentration of our principal clients: Year Ended December 31, 2017 2016 2015 Revenue Percentage Revenue Percentage Revenue Percentage T-Mobile $ 88,975 30.4 % $ 74,686 24.3 % $ 69,427 24.6 % Sprint $ 29,732 10.2 % $ 45,137 14.7 % $ 25,422 9.0 % AT&T $ 29,184 10.0 % $ 38,257 12.5 % $ 35,019 12.4 % |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amounts of Outstanding Derivative Positions | The following table shows the notional amount of our foreign exchange cash flow hedging instruments as of December 31, 2017 , 2016 , and 2015 : December 31, 2017 December 31, 2016 December 31, 2015 Local Currency Notional Amount U.S. Dollar Notional Amount Local Currency Notional Amount U.S. Dollar Notional Amount Local Currency Notional Amount U.S. Dollar Notional Amount Canadian dollar 10,900 $ 8,345 17,080 $ 12,723 2,470 $ 1,997 Philippine peso 1,272,000 24,486 1,178,800 25,231 329,000 7,263 $ 32,831 $ 37,954 $ 9,260 |
Schedule of Derivative Instruments, Gain (Loss) in the Consolidated Statement of Operations | The following table shows the effect of our derivative instruments designated as cash flow hedges for the years ended December 31, 2017 , 2016 , and 2015 : Gain (Loss) Recognized in AOCI, net of tax Years Ended December 31, Gain (Loss) Reclassified from AOCI into Income Years Ended December 31, 2017 2016 2015 2017 2016 2015 Cash flow hedges: Foreign exchange contracts 1,056 $ (832 ) $ (1,906 ) (82 ) $ (431 ) $ (2,587 ) |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements, Recurring and Nonrecurring | The following tables set forth our derivative assets and liabilities measured at fair value on a recurring basis by level within the fair value hierarchy. These balances are included in Other current assets and Other current liabilities, respectively, on our balance sheet. As of December 31, 2017 Level 1 Level 2 Level 3 Total Derivative assets: Foreign exchange contracts $ — $ 566 $ — $ 566 Total fair value of assets measured on a recurring basis $ — $ 566 $ — $ 566 Derivative liabilities: Foreign exchange contracts $ — $ 175 $ — $ 175 Total fair value of liabilities measured on a recurring basis $ — $ 175 $ — $ 175 As of December 31, 2016 Level 1 Level 2 Level 3 Total Derivative assets: Foreign exchange contracts $ — $ 19 $ — $ 19 Total fair value of assets measured on a recurring basis $ — $ 19 $ — $ 19 Derivative liabilities: Foreign exchange contracts $ — $ 980 $ — $ 980 Total fair value of liabilities measured on a recurring basis $ — $ 980 $ — $ 980 |
PROPERTY, PLANT & EQUIPMENT (Ta
PROPERTY, PLANT & EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Depreciation and amortization is computed using the straight-line method based on their estimated useful lives, as follows: Estimated Useful Life Buildings and building improvements 10-30 years Telephone and computer equipment 3-5 years Software 3 years Furniture, fixtures, and miscellaneous equipment 5-7 years Our property, plant and equipment as of December 31, 2017 and 2016 consisted of the following, by asset class: 2017 2016 Land, buildings and improvements 18,211 20,582 Telephone and computer equipment 44,116 40,298 Software 36,720 35,626 Furniture, fixtures, and miscellaneous equipment 15,913 15,341 Construction in progress 1,876 1,618 Assets acquired under capital lease 13,530 13,530 130,366 126,995 Less accumulated depreciation (103,111 ) (98,690 ) Less accumulated amortization under capital lease (7,312 ) (5,029 ) Total property, plant and equipment, net $ 19,943 $ 23,276 |
SHARE-BASED COMPENSATION AND 34
SHARE-BASED COMPENSATION AND EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Stock Options Activity | A summary of stock option activity under the Plan is as follows: Shares Weighted Weighted-Average Outstanding as of January 1, 2017 2,497,198 $ 4.61 Granted 168,402 9.64 Exercised (257,410 ) 3.95 Forfeited/expired (66,267 ) 6.79 Expired (19,600 ) 9.72 Outstanding as of December 31, 2017 2,322,323 $ 4.94 5.90 Vested and exercisable as of December 31, 2017 1,771,119 $ 4.61 5.15 |
Schedule of Stock Options, Valuation Assumptions | The assumptions used to determine the value of our stock-based awards under the Black-Scholes method are summarized below: 2017 2016 2015 Risk-free interest rate 2.07% - 2.45% 1.27% - 2.26% 1.71% - 2.4% Dividend yield —% —% —% Expected volatility 49.3% - 61.4% 50.0% - 61.9% 59.9% - 66.9% Expected life in years 7.7 8.2 7.6 |
Schedule of Employee Stock Purchase Plan, Valuation Assumptions | The assumptions used to value the shares under the ESPP using the Black-Scholes method were as follows: 2017 2016 2015 Risk-free interest rate 0.01% - 0.76% 0.21% - 0.51% 0.00% - 0.16% Dividend yield —% —% —% Expected volatility 52.5% - 61.04% 37.6% - 68.1% 21.9% - 78.9% Expected life in years 3 months 3 months 3 months |
INTEREST AND OTHER INCOME (EX35
INTEREST AND OTHER INCOME (EXPENSE), NET (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Income and Expenses [Abstract] | |
Schedule of Net Interest and Other Income | Interest and other income (expense), net for the years ended December 31, 2017 , 2016 , and 2015 were composed of the following: Year Ended December 31, 2017 2016 2015 Interest income $ 5 $ — $ 2 Interest expense (1,609 ) (1,573 ) (1,685 ) Gain (loss) on disposal of assets (3 ) 3 509 Other income (expense) 637 (178 ) 35 Interest and other income (expense), net $ (970 ) $ (1,748 ) $ (1,139 ) |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Taxes | The domestic and foreign source component of income (loss) from continuing operations before income taxes was: Year Ended December 31, 2017 2016 2015 U.S. $ (8,888 ) $ (5,244 ) $ (21,246 ) Foreign 7,176 6,357 6,094 Total $ (1,712 ) $ 1,113 $ (15,152 ) |
Schedule of Components of Income Tax Expense (Benefit) | Significant components of the provision for income taxes from continuing operations were: Year Ended December 31, 2017 2016 2015 Current: Federal $ (686 ) $ (28 ) $ (264 ) State (50 ) (23 ) 33 Foreign 611 504 360 Total current (benefit) expense $ (125 ) $ 453 $ 129 Deferred: Federal $ (324 ) $ 203 $ 164 State (28 ) 27 11 Foreign 41 35 160 Total deferred (benefit) expense $ (311 ) $ 265 $ 335 Income tax expense $ (436 ) $ 718 $ 464 |
Schedule of Deferred Tax Assets and Liabilities | Significant components of deferred tax assets and deferred tax liabilities included in the accompanying consolidated balance sheets in Other long-term assets and Other liabilities, respectively, as of December 31, 2017 , 2016 , and 2015 were: Year Ended December 31, 2017 2016 2015 Long-term deferred tax assets (liabilities): Fixed assets $ 1,770 $ 2,511 $ 2,077 Prepaid expenses (411 ) (569 ) (554 ) Accrued stock compensation 2,781 4,641 4,114 Accrued restructuring costs 2 — 303 Work opportunity credit carryforward 5,233 5,226 5,234 Operating loss carryforward 10,663 16,231 18,066 Intangibles and goodwill (64 ) (77 ) (53 ) Derivative Instruments (48 ) 354 202 Cumulative Translation adjustment (965 ) (1,381 ) (1,178 ) Other 137 297 39 Net long-term deferred tax assets $ 19,098 $ 27,233 $ 28,250 Valuation allowance (18,939 ) (27,384 ) (28,162 ) Total net deferred tax asset (liability) $ 159 $ (151 ) $ 88 |
Schedule of Effective Income Tax Rate Reconciliation | Differences between U.S. federal statutory income tax rates and our effective tax rates for the years ended December 31, 2017 , 2016 , and 2015 for continuing operations were: Year Ended December 31, 2017 2016 2015 U.S. statutory tax rate 35.0 % 35.0 % 35.0 % Effect of state taxes (net of federal benefit) 24.4 % -12.2 % 1.7 % Rate differential on foreign earnings 109.5 % -146.0 % 10.9 % Foreign income taxed in the U.S. -261.4 % 133.9 % -8.3 % Uncertain tax positions 77.9 % 107.1 % -4.9 % Unremitted foreign earnings of subsidiary 16.0 % 19.7 % — % Tax expense allocation to OCI 29.8 % -2.7 % — % Effect of U.S tax rate change -466.4 % — % — % Valuation allowance 463.1 % -67.1 % -40.4 % Other permanent differences -12.4 % — % — % Stock based compensation 30.4 % — % — % True-up of deferred items -20.1 % — % — % Other, net -0.4 % -3.2 % 2.9 % Total 25.4 % 64.5 % -3.1 % |
Schedule of Unrecognized Tax Benefits Roll Forward | The following table indicates the changes to our unrecognized tax benefits for the years ended December 31, 2017 , 2016 , and 2015 . The term “unrecognized tax benefits” in the accounting standards for income taxes refers to the differences between a tax position taken or expected to be taken in a tax return and the benefit measured and recognized in the financial statements. If recognized, all of these benefits would impact our income tax expense, before consideration of any related valuation allowance. Years Ended December 31, 2017 2016 2015 Unrecognized, January 1, $ 4,155 $ 2,962 $ 2,215 Additions based on tax positions taken in current year $ 2,872 $ 1,193 $ 888 Reductions based on tax positions taken in prior year $ (4,155 ) $ — $ (141 ) Unrecognized, December 31, $ 2,872 $ 4,155 $ 2,962 |
ACCUMULATED OTHER COMPREHENSI37
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Comprehensive Income (Loss) | Accumulated other comprehensive income (loss) consisted of the following items: Foreign Currency Translation Adjustment Unrealized Gain (Loss) on Cash Flow Hedging Instruments Defined Benefit Plan Total Balance at January 1, 2015 $ 1,486 $ (2,311 ) $ — $ (825 ) Foreign currency translation 75 — — 75 Reclassification to operations — 2,587 — 2,587 Unrealized losses — (1,906 ) — (1,906 ) Tax (provision) benefit (28 ) (254 ) — (282 ) Balance at December 31, 2015 $ 1,533 $ (1,884 ) $ — $ (351 ) Foreign currency translation 481 — — 481 Reclassification to operations — 431 — 431 Unrealized losses — (832 ) — (832 ) Pension remeasurement — — 253 253 Tax (provision) benefit (184 ) 153 — (31 ) Balance at December 31, 2016 $ 1,830 $ (2,132 ) $ 253 $ (49 ) Foreign currency translation 206 — — 206 Reclassification to operations 22 59 — 81 Unrealized losses — 1,056 — 1,056 Pension remeasurement — — 601 601 Tax provision (87 ) (424 ) — (511 ) Balance at December 31, 2017 $ 1,971 $ (1,441 ) $ 854 $ 1,384 |
Reclassification out of Accumulated Other Comprehensive Income | Reclassifications out of accumulated other comprehensive income for the years ended December 31, 2017 , 2016 , and 2015 were as follows: Details About Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Statement Where Net Income is Presented Year Ended December 31, 2017 2016 2015 Gains and losses on cash flow hedges Foreign exchange contracts (COS) $ 81 $ 416 $ 2,401 Cost of Services Foreign exchange contracts (SG&A) 1 15 186 Selling, general and administrative expenses $ 82 $ 431 $ 2,587 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | Operating leases 2018 $ 11,228 2019 7,561 2020 4,335 2021 2,985 2022 2,610 Thereafter 3,689 Total minimum lease payments $ 32,408 |
Schedule of Future Minimum Lease Payments for Capital Leases | As of December 31, 2017 , approximate minimum annual lease payments were as follows: Operating leases Capital leases 2018 $ 11,228 $ 2,134 2019 7,561 2,049 2020 4,335 487 2021 2,985 — 2022 2,610 — Thereafter 3,689 — Total minimum lease payments $ 32,408 $ 4,670 Less amount representing interest $ (509 ) Present value of capital lease obligations $ 4,161 Capital lease obligations, current portion $ 1,829 Capital lease obligations, long term portion $ 2,332 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Information about our reportable segments, which correspond to the geographic areas in which we operate, for the years ended December 31, 2017 , 2016 , and 2015 is as follows: For the Year Ended December 31, 2017 2016 2015 Revenue: Domestic 171,188 $ 186,061 $ 169,945 Offshore 77,074 76,868 72,914 Nearshore 44,342 44,271 39,275 Total $ 292,604 $ 307,200 $ 282,134 Gross profit: Domestic $ 7,329 $ 12,392 $ 11,614 Offshore 18,793 16,607 6,672 Nearshore 6,240 7,422 6,018 Total $ 32,362 $ 36,421 $ 24,304 Depreciation: Domestic $ 6,419 $ 7,748 $ 8,049 Offshore 2,950 3,678 4,232 Nearshore 571 824 980 Total $ 9,940 $ 12,250 $ 13,261 Capital expenditures: Domestic $ 4,113 $ 3,291 $ 4,382 Offshore 738 287 3,049 Nearshore 2,334 219 291 Total $ 7,185 $ 3,797 $ 7,722 As of December 31, 2017 2016 2015 Total assets: Domestic $ 37,991 $ 59,612 $ 67,927 Offshore 43,106 36,503 38,016 Nearshore 14,901 10,693 8,861 Total $ 95,998 $ 106,808 $ 114,804 |
QUARTERLY FINANCIAL DATA (UNA40
QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Data | The following represent selected information from our unaudited quarterly Statements of Operations for the years ended December 31, 2017 and 2016 . 2017 Quarters Ended March 31 June 30 September 30 December 31 Revenue $ 77,652 $ 73,979 $ 69,372 $ 71,600 Gross profit 10,014 8,987 7,319 6,041 Net income (loss) 1,793 554 (1,172 ) (2,452 ) Income tax expense (benefit) (28 ) (66 ) 30 (371 ) Comprehensive income (loss) 2,225 587 (889 ) (1,766 ) Net income (loss) per common share - basic $ 0.11 $ 0.03 $ (0.07 ) $ (0.15 ) Net income (loss) per common share - diluted $ 0.11 $ 0.03 $ (0.07 ) $ (0.15 ) 2016 Quarters Ended March 31 June 30 September 30 December 31 Revenue $ 78,035 $ 73,733 $ 78,305 $ 77,127 Gross Profit 8,388 7,011 10,347 10,675 Net income (loss) 31 (1,684 ) 856 1,192 Income tax expense (benefit) 125 46 163 384 Comprehensive income (loss) 310 (1,570 ) 855 1,133 Net income (loss) per common share - basic $ 0.00 $ (0.11 ) $ 0.05 0.08 Net income (loss) per common share - diluted $ 0.00 $ (0.11 ) $ 0.05 0.07 |
BASIS OF PRESENTATION AND SUM41
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Operating Segments (Details) | 12 Months Ended |
Dec. 31, 2017segment | |
Accounting Policies [Abstract] | |
Number of segments | 3 |
BASIS OF PRESENTATION AND SUM42
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Accounting Policies [Abstract] | ||
Allowance for doubtful accounts | $ 52 | $ 244 |
BASIS OF PRESENTATION AND SUM43
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Property, Plant & Equipment (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Buildings and building improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 10 years |
Buildings and building improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 30 years |
Telephone and computer equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 3 years |
Telephone and computer equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 5 years |
Software | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 3 years |
Furniture, fixtures, and miscellaneous equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 5 years |
Furniture, fixtures, and miscellaneous equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 7 years |
BASIS OF PRESENTATION AND SUM44
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Intangibles (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Developed technology | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Useful Life (in years) | 8 years |
Minimum | Customer relationships | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Useful Life (in years) | 3 years |
Minimum | Trade name | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Useful Life (in years) | 6 years |
Maximum | Customer relationships | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Useful Life (in years) | 10 years |
Maximum | Trade name | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Useful Life (in years) | 7 years |
ACQUISITIONS (Details)
ACQUISITIONS (Details) - Accent Marketing Services, L.L.C. [Member] $ in Thousands | Jun. 01, 2015USD ($) |
Business Acquisition [Line Items] | |
Percentage of membership interests acquired (percent) | 100.00% |
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | $ 17,492 |
GOODWILL AND INTANGIBLE ASSET46
GOODWILL AND INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | $ 9,077 | $ 9,077 | |
Gross Intangibles | 8,990 | ||
Accumulated Amortization | 3,433 | ||
Net Intangibles | $ 5,557 | 6,697 | |
Weighted Average Amortization Period (years) | 2 years 11 months 26 days | ||
Amortization of Intangible Assets | $ 1,140 | $ 1,150 | $ 852 |
2,018 | 1,140 | ||
2,019 | 1,131 | ||
2,020 | 1,128 | ||
2,021 | 1,004 | ||
2,022 | 862 | ||
Thereafter | 292 | ||
Developed technology | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Intangibles | 390 | ||
Accumulated Amortization | 231 | ||
Net Intangibles | $ 159 | ||
Weighted Average Amortization Period (years) | 2 years 1 month 24 days | ||
Customer relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Intangibles | $ 7,550 | ||
Accumulated Amortization | 2,720 | ||
Net Intangibles | $ 4,830 | ||
Weighted Average Amortization Period (years) | 3 years 1 month 10 days | ||
Trade name | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Intangibles | $ 1,050 | ||
Accumulated Amortization | 482 | ||
Net Intangibles | $ 568 | ||
Weighted Average Amortization Period (years) | 2 years 2 months 26 days |
IMPAIRMENT LOSSES AND RESTRUC47
IMPAIRMENT LOSSES AND RESTRUCTURING CHARGES (Textuals) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Restructuring Cost and Reserve [Line Items] | ||||||
Impairment losses | $ 109 | $ 174 | $ 323 | |||
Gain (loss) on disposal of assets | (3) | 3 | 509 | |||
Expense (reversal) | 411 | (104) | 1,737 | |||
Domestic [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Impairment losses | $ 56 | $ 53 | ||||
Expense (reversal) | 411 | (129) | 1,561 | |||
Domestic [Member] | Employee Severance [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Expense (reversal) | 262 | 1,289 | ||||
Domestic [Member] | Facility Closing [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Expense (reversal) | 97 | 272 | ||||
Domestic [Member] | Other Restructuring [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Expense (reversal) | 0 | |||||
Domestic [Member] | Other Restructuring [Member] | United States [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Expense (reversal) | 1,461 | $ 1,704 | ||||
Nearshore [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Impairment losses | 174 | 323 | ||||
Expense (reversal) | 0 | 25 | 112 | |||
Nearshore [Member] | Facility Closing [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Expense (reversal) | 112 | |||||
Offshore [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Gain (loss) on disposal of assets | 509 | |||||
Expense (reversal) | $ 0 | $ 0 | $ 64 |
IMPAIRMENT LOSSES AND RESTRUC48
IMPAIRMENT LOSSES AND RESTRUCTURING CHARGES Summary of Activity, Restructuring Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Restructuring Reserve [Roll Forward] | |||
Balance | $ 0 | $ 914 | $ 105 |
Expense (reversal) | 411 | (104) | 1,737 |
Payments, net of receipts for sublease | (402) | (810) | (928) |
Balance | 9 | 0 | 914 |
Domestic [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Balance | 0 | 802 | 96 |
Expense (reversal) | 411 | (129) | 1,561 |
Payments, net of receipts for sublease | (402) | (673) | (855) |
Balance | 9 | 0 | 802 |
Nearshore [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Balance | 0 | 112 | 9 |
Expense (reversal) | 0 | 25 | 112 |
Payments, net of receipts for sublease | 0 | (137) | (9) |
Balance | 0 | 0 | 112 |
Offshore [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Balance | 0 | 0 | 0 |
Expense (reversal) | 0 | 0 | 64 |
Payments, net of receipts for sublease | 0 | 0 | (64) |
Balance | $ 0 | $ 0 | $ 0 |
NET LOSS PER SHARE Dilutive (De
NET LOSS PER SHARE Dilutive (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||
Weighted average common shares outstanding - basic | 15,966 | 15,731 | 15,529 |
Dilutive Securities (in shares) | 0 | 527 | 0 |
Weighted average common shares outstanding - diluted | 15,966 | 16,258 | 15,529 |
Stock options | |||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||
Dilutive Securities (in shares) | 0 | 455 | 0 |
Restricted stock/Deferred stock units | |||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||
Dilutive Securities (in shares) | 0 | 72 | 0 |
NET LOSS PER SHARE Anti-Dilutiv
NET LOSS PER SHARE Anti-Dilutive (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2,372 | 84 | 2,414 |
Stock options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2,322 | 83 | 2,405 |
Restricted stock/Deferred stock units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 50 | 1 | 9 |
PRINCIPAL CLIENTS (Major Custom
PRINCIPAL CLIENTS (Major Customer) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
T-Mobile | |||
Revenue, Major Customer [Line Items] | |||
Revenue | $ 88,975 | $ 74,686 | $ 69,427 |
Revenue concentration, percentage | 30.40% | 24.30% | 24.60% |
Sprint | |||
Revenue, Major Customer [Line Items] | |||
Revenue | $ 29,732 | $ 45,137 | $ 25,422 |
Revenue concentration, percentage | 10.20% | 14.70% | 9.00% |
AT&T | |||
Revenue, Major Customer [Line Items] | |||
Revenue | $ 29,184 | $ 38,257 | $ 35,019 |
Revenue concentration, percentage | 10.00% | 12.50% | 12.40% |
PRINCIPAL CLIENTS (Textual) (De
PRINCIPAL CLIENTS (Textual) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Risks and Uncertainties [Abstract] | |||
Receivables Sold Under Factoring Agreements | $ 82,690 | $ 51,684 | $ 33,980 |
DERIVATIVE INSTRUMENTS (Textual
DERIVATIVE INSTRUMENTS (Textual) (Details) - Foreign Exchange Contract [Member] ₱ in Thousands, $ in Thousands, $ in Thousands | 12 Months Ended | ||||||||||||||
Dec. 31, 2017PHP (₱) | Dec. 31, 2017CAD ($) | Dec. 31, 2016PHP (₱) | Dec. 31, 2016CAD ($) | Dec. 31, 2015PHP (₱) | Dec. 31, 2015CAD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2017PHP (₱) | Dec. 31, 2017CAD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2016PHP (₱) | Dec. 31, 2016CAD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2015PHP (₱) | Dec. 31, 2015CAD ($) | |
Derivative [Line Items] | |||||||||||||||
Derivative, notional amount | $ 32,831 | $ 37,954 | $ 9,260 | ||||||||||||
Reclassification period of unrealized gains and losses from AOCI to earnings | 12 months | 12 months | |||||||||||||
Minimum | |||||||||||||||
Derivative [Line Items] | |||||||||||||||
Contract period | 3 months | 3 months | |||||||||||||
Maximum | |||||||||||||||
Derivative [Line Items] | |||||||||||||||
Contract period | 12 months | 12 months | |||||||||||||
Canada, Dollars | |||||||||||||||
Derivative [Line Items] | |||||||||||||||
Derivative, notional amount | 8,345 | $ 10,900 | 12,723 | $ 17,080 | 1,997 | $ 2,470 | |||||||||
Foreign Currency Acquired Through Forward Exchange Contracts, Amount | $ 10,900 | $ 19,555 | $ 8,580 | ||||||||||||
Philippines, Pesos | |||||||||||||||
Derivative [Line Items] | |||||||||||||||
Derivative, notional amount | $ 24,486 | ₱ 1,272,000 | $ 25,231 | ₱ 1,178,800 | $ 7,263 | ₱ 329,000 | |||||||||
Foreign Currency Acquired Through Forward Exchange Contracts, Amount | ₱ | ₱ 2,338,000 | ₱ 1,433,800 | ₱ 1,029,100 |
DERIVATIVE INSTRUMENTS (Fair Va
DERIVATIVE INSTRUMENTS (Fair Value of Derivative Instruments and Effect in AOCI) (Details) - Foreign Exchange Contract [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivatives, Fair Value [Line Items] | |||
Gain (Loss) Recognized in AOCI, net of tax | $ 1,056 | $ (832) | $ (1,906) |
Gain (Loss) Reclassified from AOCI into Income | $ (82) | $ (431) | $ (2,587) |
FAIR VALUE MEASUREMENTS (Recurr
FAIR VALUE MEASUREMENTS (Recurring and Nonrecurring) (Details) - Recurring [Member] - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Assets and Liabilities at Fair Value Measured on Recurring Basis | ||
Assets, Fair Value Disclosure | $ 566 | $ 19 |
Financial Liabilities Fair Value Disclosure | 175 | 980 |
Foreign Exchange Contract [Member] | ||
Assets and Liabilities at Fair Value Measured on Recurring Basis | ||
Assets, Fair Value Disclosure | 566 | 19 |
Financial Liabilities Fair Value Disclosure | 175 | 980 |
Level 1 [Member] | ||
Assets and Liabilities at Fair Value Measured on Recurring Basis | ||
Assets, Fair Value Disclosure | 0 | 0 |
Financial Liabilities Fair Value Disclosure | 0 | 0 |
Level 1 [Member] | Foreign Exchange Contract [Member] | ||
Assets and Liabilities at Fair Value Measured on Recurring Basis | ||
Assets, Fair Value Disclosure | 0 | 0 |
Financial Liabilities Fair Value Disclosure | 0 | 0 |
Level 2 [Member] | ||
Assets and Liabilities at Fair Value Measured on Recurring Basis | ||
Assets, Fair Value Disclosure | 566 | 19 |
Financial Liabilities Fair Value Disclosure | 175 | 980 |
Level 2 [Member] | Foreign Exchange Contract [Member] | ||
Assets and Liabilities at Fair Value Measured on Recurring Basis | ||
Assets, Fair Value Disclosure | 566 | 19 |
Financial Liabilities Fair Value Disclosure | 175 | 980 |
Level 3 [Member] | ||
Assets and Liabilities at Fair Value Measured on Recurring Basis | ||
Assets, Fair Value Disclosure | 0 | 0 |
Financial Liabilities Fair Value Disclosure | 0 | 0 |
Level 3 [Member] | Foreign Exchange Contract [Member] | ||
Assets and Liabilities at Fair Value Measured on Recurring Basis | ||
Assets, Fair Value Disclosure | 0 | 0 |
Financial Liabilities Fair Value Disclosure | $ 0 | $ 0 |
PROPERTY, PLANT & EQUIPMENT (De
PROPERTY, PLANT & EQUIPMENT (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 130,366 | $ 126,995 |
Less accumulated depreciation | (103,111) | (98,690) |
Less accumulated amortization under capital lease | (7,312) | (5,029) |
Total property, plant and equipment, net | 19,943 | 23,276 |
Depreciation expense | 9,940 | 11,100 |
Land, buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 18,211 | 20,582 |
Telephone and computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 44,116 | 40,298 |
Software | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 36,720 | 35,626 |
Furniture, fixtures, and miscellaneous equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 15,913 | 15,341 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 1,876 | 1,618 |
Assets acquired under capital lease | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 13,530 | $ 13,530 |
DEBT Debt (Details)
DEBT Debt (Details) - USD ($) $ in Thousands | Jun. 02, 2015 | Apr. 30, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Apr. 29, 2015 |
Line of Credit Facility [Line Items] | |||||
Long-term Line of Credit | $ 19,078 | $ 0 | |||
Remaining borrowing capacity | 29,602 | ||||
Revolving Credit Facility [Member] | BMO Harris Bank [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Line of Credit Facility, Current Borrowing Capacity | $ 50,000 | ||||
Maximum borrowing capacity | 70,000 | ||||
Increments for additional borrowing | 5,000 | ||||
Letters of credit, maximum allowed | $ 5,000 | ||||
Borrrowing base, as percentage of eligible accounts receivable less reserves | 85.00% | ||||
Letters of Credit Outstanding, Amount | $ 893 | ||||
Revolving Credit Facility [Member] | BMO Harris Bank [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Description of variable rate basis | one-month LIBOR | ||||
Monthly unused fee, rate per annum | 0.25% | ||||
Revolving Credit Facility [Member] | BMO Harris Bank [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate | 1.50% | ||||
Revolving Credit Facility [Member] | BMO Harris Bank [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate | 1.75% |
DEBT Other (Details)
DEBT Other (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Line of Credit Facility [Line Items] | ||
Other debt | $ 3,128 | $ 5,500 |
Financing Arrangement | Notes Payable and Capital Lease Obligations | ||
Line of Credit Facility [Line Items] | ||
Other Long-term Debt, Current | 2,377 | 2,242 |
Other debt | $ 3,084 | $ 5,473 |
Financing Arrangement | Notes Payable and Capital Lease Obligations | Minimum | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Interest Rate, Effective Percentage Rate Range, Minimum (Deprecated 2016-01-31) | 3.00% | |
Debt Instrument, Term | 5 years | |
Financing Arrangement | Notes Payable and Capital Lease Obligations | Maximum | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Interest Rate, Effective Percentage Rate Range, Minimum (Deprecated 2016-01-31) | 20.00% | |
Debt Instrument, Term | 7 years |
SHARE-BASED COMPENSATION AND 59
SHARE-BASED COMPENSATION AND EMPLOYEE BENEFIT PLANS (Textuals) (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
May 31, 2014 | Jun. 30, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | May 05, 2008 | |
Stock Awards Activity [Line Items] | |||||
Defined Benefit Plan, Benefit Obligation | $ 173,000 | $ 550,000 | |||
2008 Equity Incentive [Member] | |||||
Stock Awards Activity [Line Items] | |||||
Maximum number of shares reserved for issuance under stock plans | 900,000 | ||||
Shares available for future grants | 235,061 | 274,298 | |||
Number of additional shares authorized | 500,000 | 250,000 | |||
2008 Equity Incentive [Member] | Maximum | |||||
Stock Awards Activity [Line Items] | |||||
Term of options | 10 years | ||||
2008 Equity Incentive [Member] | Minimum | |||||
Stock Awards Activity [Line Items] | |||||
Award vesting period for an award not subject to performance measures | 3 years | ||||
Performance period for an award subject to performance measures | 1 year | ||||
2008 Equity Incentive [Member] | Director [Member] | |||||
Stock Awards Activity [Line Items] | |||||
Fair value equivalent of stock options | $ 22,500 | ||||
Grant date fair value of common stock | 22,500 | ||||
Fair value of deferred stock units | $ 22,500 |
SHARE-BASED COMPENSATION AND 60
SHARE-BASED COMPENSATION AND EMPLOYEE BENEFIT PLANS (Stock Options Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Options Outstanding [Roll Forward] | |||
Outstanding | 2,497,198 | ||
Granted | 168,402 | ||
Exercised | (257,410) | ||
Forfeited | (66,267) | ||
Expired | (19,600) | ||
Outstanding | 2,322,323 | 2,497,198 | |
Options Outstanding, Weighted Average Exercise Price [Roll Forward] | |||
Oustanding (in usd per share) | $ 4.61 | ||
Granted (in usd per share) | 9.64 | ||
Exercised (in usd per share) | 3.95 | ||
Forfeited (in usd per share) | 6.79 | ||
Expired (in usd per share) | 9.72 | ||
Outstanding (in usd per share) | $ 4.94 | $ 4.61 | |
Options, Additional Disclosures | |||
Outstanding, Weighted-Average Remaining Contractual Term | 5 years 10 months 25 days | ||
Vested and exercisable | 1,771,119 | ||
Vested and exercisable (in usd per share) | $ 4.61 | ||
Vested and exercisable, Weighted-Average Remaining Contractual Term | 5 years 1 month 24 days | ||
Weighted-average grant date fair value of options granted | $ 5.51 | $ 2.82 | $ 3.76 |
Total fair value of stock options vested | $ 1,073 | $ 1,875 | $ 655 |
SHARE-BASED COMPENSATION AND 61
SHARE-BASED COMPENSATION AND EMPLOYEE BENEFIT PLANS (Options, Valuation Assumptions) (Details) - Stock options | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Valuation Assumptions [Line Items] | |||
Dividend yield | 0.00% | 0.00% | 0.00% |
Expected life in years | 7 years 8 months 12 days | 8 years 2 months 12 days | 7 years 7 months 6 days |
Minimum | |||
Valuation Assumptions [Line Items] | |||
Risk-free interest rate | 2.07% | 1.27% | 1.71% |
Expected volatility | 49.30% | 50.00% | 59.90% |
Maximum | |||
Valuation Assumptions [Line Items] | |||
Risk-free interest rate | 2.45% | 2.26% | 2.40% |
Expected volatility | 61.40% | 61.90% | 66.90% |
SHARE-BASED COMPENSATION AND 62
SHARE-BASED COMPENSATION AND EMPLOYEE BENEFIT PLANS (Stock Grants and Deferred Stock Units Activity) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Stock Grants [Member] | |||
Stock Awards Activity [Line Items] | |||
Granted | 0 | 0 | 2,319 |
Granted, Fair Value | $ 0 | $ 0 | $ 22 |
Deferred Stock [Member] | |||
Stock Awards Activity [Line Items] | |||
Granted | 17,782 | 20,187 | 12,893 |
Granted, Fair Value | $ 180 | $ 90 | $ 65 |
SHARE-BASED COMPENSATION AND 63
SHARE-BASED COMPENSATION AND EMPLOYEE BENEFIT PLANS (Comp Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Stock options | |||
Stock Awards Activity [Line Items] | |||
Total unrecognized compensation cost | $ 769 | ||
Weighted-average period that cost is expected to be recognized | 1 year 9 months 29 days | ||
Selling, General and Administrative Expenses [Member] | |||
Stock Awards Activity [Line Items] | |||
Total compensation cost | $ 1,015 | $ 1,722 | $ 1,469 |
SHARE-BASED COMPENSATION AND 64
SHARE-BASED COMPENSATION AND EMPLOYEE BENEFIT PLANS (ESPP, Valuation Assumptions) (Details) - Employee Stock Purchase Plan [Member] - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Valuation Assumptions [Line Items] | ||||
Maximum percentage of base pay that a participating employee may elect | 10.00% | |||
Purchase price as percentage of lower of closing price on first or last trading day of offering period | 85.00% | |||
Maximum number of shares reserved for issuance under stock plans | 400,000 | |||
Number of additional shares authorized | 100,000 | |||
Shares available for future grants | 60,187 | |||
Shares purchased under the ESPP | 33,253 | 48,414 | 46,227 | |
Weighted average purchase price (in usd per share) | $ 8.03 | $ 3.87 | $ 3.92 | |
Total compensation cost | $ 84 | $ 55 | $ 50 | |
Dividend yield | 0.00% | 0.00% | 0.00% | |
Expected life in years | 3 months | 3 months | 3 months | |
Weighted average grant date fair value (in usd per share) | $ 2.51 | $ 1.13 | $ 1.09 | |
Minimum | ||||
Valuation Assumptions [Line Items] | ||||
Risk-free interest rate | 0.01% | 0.21% | 0.00% | |
Expected volatility | 52.50% | 37.60% | 21.90% | |
Maximum | ||||
Valuation Assumptions [Line Items] | ||||
Risk-free interest rate | 0.76% | 0.51% | 0.16% | |
Expected volatility | 61.40% | 68.10% | 78.90% |
SHARE-BASED COMPENSATION AND 65
SHARE-BASED COMPENSATION AND EMPLOYEE BENEFIT PLANS (401k) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Required service period for participants to receive a matching contribution | 1 year | ||
Company matching contributions to the 401(k) | $ 664 | $ 582 | $ 493 |
First 3% [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Portion of employee contribution matched, percent | 100.00% | ||
Employer matching contribution, percent | 3.00% | ||
Next 2% [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Portion of employee contribution matched, percent | 50.00% | ||
Employer matching contribution, percent | 2.00% |
INTEREST AND OTHER INCOME (EX66
INTEREST AND OTHER INCOME (EXPENSE), NET (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other Income and Expenses [Abstract] | |||
Interest income | $ 5 | $ 0 | $ 2 |
Interest expense | (1,609) | (1,573) | (1,685) |
Gain (loss) on disposal of assets | (3) | 3 | 509 |
Other income (expense) | 637 | (178) | 35 |
Interest and other income (expense), net | $ (970) | $ (1,748) | $ (1,139) |
INCOME TAXES (Income Before Inc
INCOME TAXES (Income Before Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
U.S. | $ (8,888) | $ (5,244) | $ (21,246) |
Foreign | 7,176 | 6,357 | 6,094 |
Income (loss) before income taxes | $ (1,712) | $ 1,113 | $ (15,152) |
INCOME TAXES (Components of Inc
INCOME TAXES (Components of Income Tax Expense (Benefit)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current: | |||||||||||
Federal | $ (686) | $ (28) | $ (264) | ||||||||
State | (50) | (23) | 33 | ||||||||
Foreign | 611 | 504 | 360 | ||||||||
Total current (benefit) expense | (125) | 453 | 129 | ||||||||
Deferred: | |||||||||||
Federal | (324) | 203 | 164 | ||||||||
State | (28) | 27 | 11 | ||||||||
Foreign | 41 | 35 | 160 | ||||||||
Total deferred (benefit) expense | (311) | 265 | 335 | ||||||||
Income tax expense | $ (371) | $ 30 | $ (66) | $ (28) | $ 384 | $ 163 | $ 46 | $ 125 | $ (436) | $ 718 | $ 464 |
INCOME TAXES (Deferred Tax Asse
INCOME TAXES (Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Long-term deferred tax assets (liabilities): | |||
Fixed assets | $ 1,770 | $ 2,511 | $ 2,077 |
Prepaid expenses | (411) | (569) | (554) |
Accrued stock compensation | 2,781 | 4,641 | 4,114 |
Accrued restructuring costs | 2 | 0 | 303 |
Work opportunity credit carryforward | 5,233 | 5,226 | 5,234 |
Operating loss carryforward | 10,663 | 16,231 | 18,066 |
Intangibles and goodwill | (64) | (77) | (53) |
Derivative Instruments | (48) | 354 | 202 |
Cumulative Translation adjustment | (965) | (1,381) | (1,178) |
Other | 137 | 297 | 39 |
Net long-term deferred tax assets | 19,098 | 27,233 | 28,250 |
Valuation allowance | (18,939) | (27,384) | (28,162) |
Total net deferred tax asset (liability) | $ 159 | $ (151) | $ 88 |
INCOME TAXES (Reconciliation of
INCOME TAXES (Reconciliation of Tax Rates) (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
U.S. statutory tax rate | 35.00% | 35.00% | 35.00% |
Effect of state taxes (net of federal benefit) | 24.40% | (12.20%) | 1.70% |
Rate differential on foreign earnings | 109.50% | (146.00%) | 10.90% |
Foreign income taxed in the U.S. | (261.40%) | 133.90% | (8.30%) |
Uncertain tax positions | 77.90% | 107.10% | (4.90%) |
Unremitted foreign earnings of subsidiary | 16.00% | 19.70% | 0.00% |
Tax expense allocation to OCI | 29.80% | (2.70%) | 0.00% |
Effect of U.S tax rate change | (466.40%) | 0.00% | 0.00% |
Valuation allowance | 463.10% | (67.10%) | (40.40%) |
Other permanent differences | (12.40%) | 0.00% | 0.00% |
Stock based compensation | 30.40% | 0.00% | 0.00% |
True-up of deferred items | (20.10%) | 0.00% | 0.00% |
Other, net | (0.40%) | (3.20%) | 2.90% |
Total | 25.40% | 64.50% | (3.10%) |
INCOME TAXES (Uncertain Income
INCOME TAXES (Uncertain Income Tax Positions) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Unrecognized Tax Benefits [Roll Forward] | |||
Unrecognized, January 1, | $ 4,155 | $ 2,962 | $ 2,215 |
Additions based on tax positions taken in current year | 2,872 | 1,193 | 888 |
Reductions based on tax positions taken in prior year | (4,155) | 0 | (141) |
Unrecognized, December 31, | $ 2,872 | $ 4,155 | $ 2,962 |
INCOME TAXES (Textuals) (Detail
INCOME TAXES (Textuals) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Unremitted earnings of foreign subsidiaries | $ 0 | $ 0 | $ 1,300 |
Deferred income taxes | (327) | 265 | 210 |
Operating loss carryforward | 10,663 | 16,231 | 18,066 |
Valuation allowance | (18,939) | (27,384) | (28,162) |
Aggregate reduction in income tax expense | 1,338 | $ 1,136 | $ 1,106 |
Federal [Member] | |||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Net operating loss carryforwards | 49,942 | ||
Federal [Member] | Tax Cuts And Jobs Act [Member] | |||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Deferred Tax Liabilities, Other | 582 | ||
Deferred income taxes | (582) | ||
Operating loss carryforward | 6,452 | ||
Valuation allowance | 6,452 | ||
State [Member] | |||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Net operating loss carryforwards | 70,014 | ||
Canada Revenue Agency [Member] | |||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Taxable Revenue Threshold Amount Large Corporation | 10,000 | ||
Tax Re-assessment Amount | $ 400 |
ACCUMULATED OTHER COMPREHENSI73
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) AOCI - (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Total - Beginning balance | $ (49) | $ (351) | $ (825) |
Foreign currency translation | 206 | 481 | 75 |
Reclassification to operations | 81 | 431 | 2,587 |
Unrealized losses | 1,056 | (832) | (1,906) |
Pension remeasurement | 601 | 253 | |
Tax (provision) benefit | (511) | (31) | (282) |
Total - Ending balance | 1,384 | (49) | (351) |
Foreign Currency Translation Adjustment | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Total - Beginning balance | 1,830 | 1,533 | 1,486 |
Foreign currency translation | 206 | 481 | 75 |
Reclassification to operations | 22 | ||
Tax (provision) benefit | (87) | (184) | (28) |
Total - Ending balance | 1,971 | 1,830 | 1,533 |
Unrealized Gain (Loss) on Cash Flow Hedging Instruments | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Total - Beginning balance | (2,132) | (1,884) | (2,311) |
Reclassification to operations | 59 | 431 | 2,587 |
Unrealized losses | 1,056 | (832) | (1,906) |
Tax (provision) benefit | (424) | 153 | (254) |
Total - Ending balance | (1,441) | (2,132) | (1,884) |
Defined Benefit Plan | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Total - Beginning balance | 253 | 0 | 0 |
Pension remeasurement | 601 | 253 | |
Total - Ending balance | $ 854 | $ 253 | $ 0 |
ACCUMULATED OTHER COMPREHENSI74
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Reclassifications) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Cost of services | $ 260,242 | $ 270,779 | $ 257,830 |
Selling, general and administrative expenses | 32,584 | 33,196 | 34,427 |
Reclassification to operations | 81 | 431 | 2,587 |
Foreign Exchange Contract [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Cost of services | 81 | 416 | 2,401 |
Selling, general and administrative expenses | 1 | 15 | 186 |
Reclassification to operations | $ 82 | $ 431 | $ 2,587 |
COMMITMENTS AND CONTINGENCIES75
COMMITMENTS AND CONTINGENCIES (Operating Lease) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Rental expense, including equipment rentals | $ 11,302 | $ 11,954 | $ 11,875 |
Minimum Lease Payments | |||
2,018 | 11,228 | ||
2,019 | 7,561 | ||
2,020 | 4,335 | ||
2,021 | 2,985 | ||
2,022 | 2,610 | ||
Thereafter | 3,689 | ||
Total minimum lease payments | $ 32,408 |
COMMITMENTS AND CONTINGENCIES76
COMMITMENTS AND CONTINGENCIES (Capital Lease) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2,018 | $ 2,134 |
2,019 | 2,049 |
2,020 | 487 |
2,021 | 0 |
2,022 | 0 |
Thereafter | 0 |
Total minimum lease payments | 4,670 |
Less amount representing interest | (509) |
Present value of capital lease obligations | 4,161 |
Capital lease obligations, current portion | 1,829 |
Capital lease obligations, long term portion | $ 2,332 |
Minimum | |
Capital Leased Assets [Line Items] | |
Lessee Leasing Arrangements, Operating Leases, Term of Contract | 3 years |
Maximum | |
Capital Leased Assets [Line Items] | |
Lessee Leasing Arrangements, Operating Leases, Term of Contract | 7 years |
SEGMENT INFORMATION (Textual) (
SEGMENT INFORMATION (Textual) (Details) | 12 Months Ended |
Dec. 31, 2017segmentfacility | |
Segment Reporting Information [Line Items] | |
Number of segments | segment | 3 |
United States [Member] | |
Segment Reporting Information [Line Items] | |
Number of facilities | 13 |
Canada [Member] | |
Segment Reporting Information [Line Items] | |
Number of facilities | 1 |
Honduras [Member] | |
Segment Reporting Information [Line Items] | |
Number of facilities | 2 |
JAMAICA | |
Segment Reporting Information [Line Items] | |
Number of facilities | 1 |
PHILIPPINES | |
Segment Reporting Information [Line Items] | |
Number of facilities | 4 |
SEGMENT INFORMATION (Segment Re
SEGMENT INFORMATION (Segment Reporting) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenue | $ 71,600 | $ 69,372 | $ 73,979 | $ 77,652 | $ 77,127 | $ 78,305 | $ 73,733 | $ 78,035 | $ 292,604 | $ 307,200 | $ 282,134 |
Gross profit | 6,041 | $ 7,319 | $ 8,987 | $ 10,014 | 10,675 | $ 10,347 | $ 7,011 | $ 8,388 | 32,362 | 36,421 | 24,304 |
Depreciation | 11,080 | 12,250 | 13,261 | ||||||||
Capital expenditures | 7,185 | 3,797 | 7,722 | ||||||||
Total assets | 95,998 | 106,808 | 95,998 | 106,808 | 114,804 | ||||||
Reportable Geographical Components [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Depreciation | 9,940 | 12,250 | 13,261 | ||||||||
Domestic [Member] | Reportable Geographical Components [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 171,188 | 186,061 | 169,945 | ||||||||
Gross profit | 7,329 | 12,392 | 11,614 | ||||||||
Depreciation | 6,419 | 7,748 | 8,049 | ||||||||
Capital expenditures | 4,113 | 3,291 | 4,382 | ||||||||
Total assets | 37,991 | 59,612 | 37,991 | 59,612 | 67,927 | ||||||
Offshore [Member] | Reportable Geographical Components [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 77,074 | 76,868 | 72,914 | ||||||||
Gross profit | 18,793 | 16,607 | 6,672 | ||||||||
Depreciation | 2,950 | 3,678 | 4,232 | ||||||||
Capital expenditures | 738 | 287 | 3,049 | ||||||||
Total assets | 43,106 | 36,503 | 43,106 | 36,503 | 38,016 | ||||||
Nearshore [Member] | Reportable Geographical Components [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 44,342 | 44,271 | 39,275 | ||||||||
Gross profit | 6,240 | 7,422 | 6,018 | ||||||||
Depreciation | 571 | 824 | 980 | ||||||||
Capital expenditures | 2,334 | 219 | 291 | ||||||||
Total assets | $ 14,901 | $ 10,693 | $ 14,901 | $ 10,693 | $ 8,861 |
QUARTERLY FINANCIAL DATA (UNA79
QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue | $ 71,600 | $ 69,372 | $ 73,979 | $ 77,652 | $ 77,127 | $ 78,305 | $ 73,733 | $ 78,035 | $ 292,604 | $ 307,200 | $ 282,134 |
Gross profit | 6,041 | 7,319 | 8,987 | 10,014 | 10,675 | 10,347 | 7,011 | 8,388 | 32,362 | 36,421 | 24,304 |
Net income (loss) | (2,452) | (1,172) | 554 | 1,793 | 1,192 | 856 | (1,684) | 31 | (1,276) | 395 | (15,616) |
Income tax expense | (371) | 30 | (66) | (28) | 384 | 163 | 46 | 125 | (436) | 718 | 464 |
Comprehensive income (loss) | $ (1,766) | $ (889) | $ 587 | $ 2,225 | $ 1,133 | $ 855 | $ (1,570) | $ 310 | $ 157 | $ 697 | $ (16,090) |
Net income (loss) per common share - basic | $ (0.15) | $ (0.07) | $ 0.03 | $ 0.11 | $ 0.08 | $ 0.05 | $ (0.11) | $ 0 | $ (0.08) | $ 0.03 | $ (1.01) |
Net income (loss) per common share - diluted | $ (0.15) | $ (0.07) | $ 0.03 | $ 0.11 | $ 0.07 | $ 0.05 | $ (0.11) | $ 0 | $ (0.08) | $ 0.02 | $ (1.01) |
SUBSEQUENT EVENTS Amazon Agreem
SUBSEQUENT EVENTS Amazon Agreement (Details) - Subsequent Event - Amazon Transaction Agreement - Warrant $ in Millions | Jan. 23, 2018USD ($)shares |
Warrant | shares | 4,000,000 |
Warrants and Rights Outstanding | $ | $ 600 |
SUBSEQUENT EVENTS Aegis Transac
SUBSEQUENT EVENTS Aegis Transaction (Details) - USD ($) $ / shares in Units, $ in Millions | Mar. 14, 2018 | Mar. 15, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Subsequent Event [Line Items] | ||||
Common stock, shares issued | 16,175,351 | 15,811,516 | ||
Subsequent Event | Aegis Transaction Agreement | ||||
Subsequent Event [Line Items] | ||||
Payments to Acquire Businesses, Gross | $ 10 | |||
Subsequent Event | Aegis Transaction Agreement | Aegis | ||||
Subsequent Event [Line Items] | ||||
Common stock, shares issued | 20,600,000 | |||
Business Acquisition, Share Price | $ 12 | |||
Percentage of membership interests acquired (percent) | 55.00% |