Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Jul. 28, 2014 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'CALLIDUS SOFTWARE INC | ' |
Entity Central Index Key | '0001035748 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Jun-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 48,103,761 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $37,914 | $28,295 |
Short-term investments | 4,008 | 7,866 |
Accounts receivable, net of allowances of $981 and $650 at June 30, 2014 and December 31, 2013, respectively | 29,366 | 29,216 |
Deferred income taxes | 187 | 0 |
Prepaid and other current assets | 6,523 | 6,232 |
Total current assets | 77,998 | 71,609 |
Property and equipment, net | 13,637 | 11,351 |
Goodwill | 32,791 | 31,207 |
Intangible assets, net | 17,066 | 16,995 |
Deferred income taxes, noncurrent | 498 | 405 |
Deposits and other noncurrent assets | 1,913 | 2,626 |
Total assets | 143,903 | 134,193 |
Current liabilities: | ' | ' |
Accounts payable | 2,250 | 2,987 |
Accrued payroll and related expenses | 6,218 | 7,377 |
Accrued expenses | 8,266 | 5,395 |
Deferred income taxes | 1,159 | 1,159 |
Deferred revenue | 49,066 | 46,222 |
Capital lease obligations | 1,211 | 1,308 |
Total current liabilities | 68,170 | 64,448 |
Deferred revenue, noncurrent | 11,100 | 10,432 |
Deferred income taxes, noncurrent | 196 | 155 |
Capital lease obligations, noncurrent | 668 | 987 |
Convertible notes | 0 | 14,197 |
Long-term Line of Credit, Noncurrent | 2,982 | 0 |
Other noncurrent liabilities | 1,532 | 1,921 |
Total liabilities | 84,648 | 92,140 |
Commitments and contingencies (Note 7) | ' | ' |
Stockholders’ equity: | ' | ' |
Preferred stock, $0.001 par value; 5,000 shares authorized; no shares issued or outstanding | ' | ' |
Common stock, $0.001 par value; 100,000 shares authorized; 50,438 and 47,817 shares issued and 48,099 and 45,478 shares outstanding at June 30, 2014 and December 31, 2013, respectively | 48 | 45 |
Additional paid-in capital | 334,831 | 315,430 |
Treasury stock; 2,339 shares at June 30, 2014 and December 31, 2013 | -14,430 | -14,430 |
Accumulated other comprehensive income | 180 | 165 |
Accumulated deficit | -261,374 | -259,157 |
Total stockholders’ equity | 59,255 | 42,053 |
Total liabilities and stockholders’ equity | $143,903 | $134,193 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Per Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Accounts receivable, allowances (in dollars) | $981 | $650 |
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 |
Preferred stock, shares authorized | 5,000 | 5,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized | 100,000 | 100,000 |
Common stock, shares issued | 50,438 | 47,817 |
Common stock, shares outstanding | 48,099 | 45,478 |
Treasury stock, shares | 2,339 | 2,339 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Revenue: | ' | ' | ' | ' |
Recurring | $23,684 | $19,616 | $45,934 | $39,240 |
Services and license | 8,831 | 6,314 | 17,558 | 12,232 |
Total revenue | 32,515 | 25,930 | 63,492 | 51,472 |
Cost of revenue: | ' | ' | ' | ' |
Recurring | 7,502 | 6,931 | 14,790 | 14,384 |
Services and license | 5,628 | 4,739 | 10,738 | 9,961 |
Total cost of revenue | 13,130 | 11,670 | 25,528 | 24,345 |
Gross profit | 19,385 | 14,260 | 37,964 | 27,127 |
Operating expenses: | ' | ' | ' | ' |
Sales and marketing | 11,808 | 7,891 | 22,535 | 15,535 |
Research and development | 5,045 | 4,409 | 9,918 | 8,838 |
General and administrative | 5,135 | 5,946 | 10,221 | 11,132 |
Restructuring and other | 404 | 315 | 404 | 1,558 |
Total operating expenses | 22,392 | 18,561 | 43,078 | 37,063 |
Operating loss | -3,007 | -4,301 | -5,114 | -9,936 |
Interest income and other income (expense), net | 3,941 | -131 | 3,968 | -121 |
Interest expense | -154 | -864 | -391 | -1,718 |
Income (loss) before provision for income taxes | 780 | -5,296 | -1,537 | -11,775 |
Provision for income taxes | 530 | 1,119 | 680 | 1,243 |
Net income (loss) | 250 | -6,415 | -2,217 | -13,018 |
Earnings Per Share, Basic | $0 | ($0.17) | ($0.05) | ($0.35) |
Earnings Per Share, Diluted | $0 | ($0.17) | ($0.05) | ($0.35) |
Weighted Average Number of Shares Outstanding, Basic | 46,648 | 37,813 | 46,298 | 37,478 |
Weighted Average Number of Shares Outstanding, Diluted | 48,061 | 37,813 | 46,298 | 37,478 |
Comprehensive income (loss) | ' | ' | ' | ' |
Net income (loss) | 250 | -6,415 | -2,217 | -13,018 |
Unrealized gains (loss) on available-for-sale securities | 0 | 6 | -2 | 11 |
Foreign currency translation adjustments | -18 | -98 | 17 | -148 |
Comprehensive income (loss) | $232 | ($6,507) | ($2,202) | ($13,155) |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Cash flows from operating activities: | ' | ' |
Net loss | ($2,217) | ($13,018) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ' | ' |
Depreciation expense | 2,564 | 2,109 |
Amortization of intangible assets | 2,525 | 2,414 |
Gain (Loss) on Disposition of Intangible Assets | -3,862 | 0 |
Provision for doubtful accounts | 480 | 314 |
Stock-based compensation | 4,924 | 5,801 |
Release of valuation allowance | -149 | 0 |
Gain (Loss) on Sale of Property Plant Equipment | 0 | 3 |
Amortization of convertible notes issuance cost | 58 | 268 |
Net amortization on investments | 15 | 46 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | -243 | 86 |
Prepaid and other current assets | -291 | -272 |
Other noncurrent assets | 401 | -472 |
Accounts payable | -706 | -3,201 |
Accrued expenses | 1,553 | 986 |
Accrued payroll and related expenses | -1,149 | -431 |
Accrued restructuring and other expenses | -50 | -578 |
Deferred revenue | 2,832 | 8,203 |
Deferred income taxes | -239 | 118 |
Net cash provided by operating activities | 6,446 | 2,376 |
Cash flows from investing activities: | ' | ' |
Purchases of investments | -1,209 | -5,634 |
Proceeds from maturities and sale of investments | 5,050 | 9,450 |
Purchases of property and equipment | -4,018 | -1,356 |
Purchases of intangible assets | -743 | -364 |
Proceeds from Sale of Intangible Assets | 4,651 | ' |
Acquisitions, net of cash acquired | -2,402 | 0 |
Net cash provided by investing activities | 1,329 | 2,096 |
Cash flows from financing activities: | ' | ' |
Proceeds from issuance of common stock | 1,975 | 2,168 |
Repurchase of common stock from employees for payment of taxes on vesting of restricted stock units | -1,439 | -490 |
Proceeds from line of credit | 2,982 | ' |
Payment of consideration related to acquisitions | -630 | -3,078 |
Repayment of debt | -645 | 0 |
Payment of principal under capital leases | -416 | -1,047 |
Net cash (used in) provided by financing activities | 1,827 | -2,447 |
Effect of exchange rates on cash and cash equivalents | 17 | -126 |
Net increase in cash and cash equivalents | 9,619 | 1,899 |
Cash and cash equivalents at beginning of period | 28,295 | 16,400 |
Cash and cash equivalents at end of period | 37,914 | 18,299 |
Supplemental disclosures of cash flow information: | ' | ' |
Cash paid for interest on convertible debt | 277 | 1,406 |
Cash paid for interest on capital leases | 24 | 44 |
Conversion of convertible debt to equity | 14,197 | 0 |
Reclassification of unamortized debt issuance cost to additional paid-in capital as a result of debt conversion | 253 | 0 |
Non-cash financing of fixed assets acquired under capital lease | $0 | $2,627 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Summary of Significant Accounting Policies | ' |
Summary of Significant Accounting Policies | |
Basis of Presentation and Summary of Accounting Policies | |
All amounts included herein related to the condensed consolidated financial statements as of June 30, 2014 and the three and six months ended June 30, 2014 and 2013 are unaudited and should be read in conjunction with the audited consolidated financial statements and the notes thereto included in Callidus Software Inc.'s ("the Company") Annual Report on Form 10-K for the year ended December 31, 2013. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") have been condensed or omitted pursuant to the Securities and Exchange Commission ("SEC") rules and regulations regarding interim financial statements. | |
In the opinion of management, the accompanying condensed consolidated financial statements include all necessary adjustments for the fair presentation of the Company’s financial position, results of operations and cash flows. The results of operations for the interim periods presented are not necessarily indicative of the operating results to be expected for any subsequent interim period or for the full fiscal year ending December 31, 2014. | |
The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, which include wholly-owned subsidiaries in Australia, Canada, Germany, Hong Kong, India, Japan, Malaysia, Mexico, New Zealand, Netherlands, Serbia, Singapore, and the United Kingdom. All intercompany transactions and balances have been eliminated upon consolidation. | |
Use of Estimates | |
Preparation of the condensed consolidated financial statements in conformity with GAAP and the rules and regulations of the SEC requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, the reported amounts of revenue and expenses during the reporting period and the accompanying notes. Estimates are used for, but not limited to, uncertain tax liabilities, allowances for doubtful accounts, the useful lives of fixed assets and intangible assets, goodwill and intangible asset impairments, stock-based compensation forfeiture rates, accrued liabilities, the allocation of the value of purchase consideration for business acquisitions, and other contingencies. These estimates and assumptions are based on management’s best estimates and judgment. Management evaluates such estimates and assumptions on an ongoing basis for continued reasonableness, using historical experience and other factors, including the current economic environment. Appropriate adjustments, if any, to the estimates used are made prospectively based upon such evaluation. Illiquid credit markets, volatile equity and foreign currency markets and declines in information technology spending by prospective customers have combined to increase the uncertainty inherent in such estimates and assumptions. As future events and their effects cannot be determined with precision, actual results could differ materially from those estimates. Changes in those estimates, if any, resulting from continuing changes in the economic environment, will be reflected in the condensed consolidated financial statements in future periods. | |
Recent Accounting Pronouncements | |
In May 2014, the FASB issued an accounting standard update “Revenue from Contracts with Customers” that replaces existing revenue recognition guidance and convergences with the international accounting standards. The accounting standard update removes the current inconsistencies and weaknesses with existing revenue recognition guidance, provides a more robust framework to address revenue recognition issues, communicates more useful information through improved disclosure requirements, and simplifies financial statement preparation by reducing the number of revenue recognition requirements. This accounting standard update will be effective for the Company beginning in the first quarter of fiscal 2017. The Company is currently evaluating the impact of this accounting standard update on its Consolidated Financial Statements. |
Restructuring
Restructuring | 6 Months Ended | |||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||||||||||
Restructuring | ' | |||||||||||||||||||
Restructuring and Other | ||||||||||||||||||||
During the three months ended June 30, 2014, management approved and initiated restructuring plans to realign our resources to improve cost efficiencies. Restructuring and other expenses primarily consist of costs associated with exit of excess facilities, employee terminations and incremental depreciation expense as a result of the change in the estimated useful life of assets to be abandoned. The Company incurred restructuring and other expense of $0.4 million and $0.3 million during the three months ended June 30, 2014 and 2013, respectively, and $0.4 million and $1.6 million during the six months ended June 30, 2014 and 2013, respectively. | ||||||||||||||||||||
The following table sets forth a summary of accrued restructuring expenses for the six months ended June 30, 2014 and 2013, respectively (in thousands): | ||||||||||||||||||||
31-Dec-13 | Cash | Additions | Adjustments | June 30, 2014 | ||||||||||||||||
Payments | ||||||||||||||||||||
Severance and termination-related costs | $ | 141 | $ | (203 | ) | $ | 70 | $ | — | $ | 8 | |||||||||
Facilities-related costs | 234 | (79 | ) | 162 | — | 317 | ||||||||||||||
Total accrued restructuring expenses | $ | 375 | $ | (282 | ) | $ | 232 | $ | — | $ | 325 | |||||||||
During the three months ended June 30, 2014, the Company has also incurred $0.2 million of non-cash expense primarily related to incremental depreciation expense as a result of the change in the estimated useful life of assets to be abandoned. | ||||||||||||||||||||
December 31, | Cash | Additions | Adjustments | 30-Jun-13 | ||||||||||||||||
2012 | Payments | |||||||||||||||||||
Severance and termination-related costs | $ | 589 | $ | (2,115 | ) | $ | 1,566 | $ | (8 | ) | $ | 32 | ||||||||
Facilities related costs | 289 | (20 | ) | — | — | 269 | ||||||||||||||
Total accrued restructuring expenses | $ | 878 | $ | (2,135 | ) | $ | 1,566 | $ | (8 | ) | $ | 301 | ||||||||
Acquisitions
Acquisitions | 6 Months Ended | |||||
Jun. 30, 2014 | ||||||
Business Combinations [Abstract] | ' | |||||
Acquisitions | ' | |||||
Acquisitions | ||||||
LeadRocket, Inc. | ||||||
On February 4, 2014, the Company acquired all of the common stock of LeadRocket, Inc. (“LeadRocket”), a privately-held company providing marketing automation and demand generation solutions that enable both marketing and sales users to identify and connect with leads efficiently. The Company acquired LeadRocket to strengthen its social engagement and digital marketing platform. The purchase consideration was $3.0 million, which included $2.5 million paid in cash and $0.5 million as indemnity holdback payable upon the one year closing anniversary. As of June 30, 2014, $0.4 million of the indemnity holdback remains accrued for potential indemnification claims, and the timing and amount of any additional indemnification items under the holdback is unknown. | ||||||
The preliminary purchase price allocation for LeadRocket is summarized as follows (in thousands): | ||||||
Fair Value | ||||||
Net liabilities assumed | $ | (1,075 | ) | |||
Intangible assets | 2,640 | |||||
Goodwill | 1,584 | |||||
Deferred tax liabilities | (149 | ) | ||||
Total purchase price | $ | 3,000 | ||||
The excess of purchase consideration over the fair value of net tangible liabilities assumed and identifiable intangible assets acquired was recorded as goodwill. The fair values assigned to tangible and identifiable intangible assets acquired and liabilities assumed are based on management’s estimates and assumptions. The estimated fair values of assets acquired and liabilities assumed, specifically current and noncurrent income taxes payable and deferred taxes, may be subject to change as additional information is received and certain tax returns are finalized. Thus the provisional measurements of fair value set forth above are subject to change. The Company expects to finalize the valuation as soon as practicable, but not later than one-year from the acquisition date. | ||||||
The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the date of the LeadRocket acquisition (in thousands): | ||||||
Fair Value | Useful Life | |||||
Developed technology | $ | 570 | 2-4 years | |||
Patents | 1,060 | 10 years | ||||
Domain names and trademarks | 850 | 5 years | ||||
Customer relationships | 160 | 3 years | ||||
Total intangible assets subject to amortization | $ | 2,640 | ||||
The goodwill balance is primarily attributed to the anticipated synergies from the acquisition and expanded market opportunities with respect to the integration of LeadRocket’s digital marketing platform with the Company’s other solutions. The goodwill balance is not deductible for U.S. income tax purposes. | ||||||
Pro forma results of operations for the LeadRocket acquisition have not been presented because the acquisition is not material. | ||||||
Goodwill | ||||||
Goodwill represents the excess of the purchase price in a business combination over the fair value of net tangible and intangible assets acquired. Goodwill amounts are not amortized, but rather tested for impairment at least annually or as events occur or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. | ||||||
As of June 30, 2014 and December 31, 2013, goodwill consisted of the following (in thousands): | ||||||
Balance as of December 31, 2013 | $ | 31,207 | ||||
LeadRocket | 1,584 | |||||
Balance as of June 30, 2014 | $ | 32,791 | ||||
Financial_Instruments
Financial Instruments | 6 Months Ended | ||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||
Financial Instruments | ' | ||||||||||||||||||||
Financial Instruments | ' | ||||||||||||||||||||
Financial Instruments | |||||||||||||||||||||
As of June 30, 2014 and December 31, 2013, all investment debt securities are classified as available-for-sale and carried at estimated fair value, which is determined based on the inputs discussed below. | |||||||||||||||||||||
The Company classifies all highly liquid instruments with an original maturity on the date of purchase of three months or less as cash and cash equivalents. The Company classifies available-for-sale securities that have a maturity date longer than three months as short-term investments, including those investments with a maturity date of longer than one year that are highly liquid and which the Company does not intend to hold to maturity. | |||||||||||||||||||||
Realized gains and losses are calculated using the specific identification method. As of June 30, 2014 and December 31, 2013, the Company had no short-term investments in a material unrealized loss position. | |||||||||||||||||||||
The components of the Company’s cash, cash equivalents, and investments classified as available-for-sale were as follows at June 30, 2014 and December 31, 2013 (in thousands): | |||||||||||||||||||||
30-Jun-14 | Amortized | Gross | Gross | Other Than | Estimated | ||||||||||||||||
Cost | Unrealized | Unrealized | Temporary | Fair value | |||||||||||||||||
Gains | Losses | Impairment | |||||||||||||||||||
Cash | $ | 32,843 | $ | — | $ | — | $ | — | $ | 32,843 | |||||||||||
Cash equivalents: | |||||||||||||||||||||
Money market funds | 5,071 | — | — | — | 5,071 | ||||||||||||||||
Total cash equivalents | 5,071 | — | — | — | 5,071 | ||||||||||||||||
Total cash and cash equivalents | $ | 37,914 | $ | — | $ | — | $ | — | $ | 37,914 | |||||||||||
Short-term investments: | |||||||||||||||||||||
U.S. government and agency obligations | 2,802 | — | — | — | 2,802 | ||||||||||||||||
Corporate notes and obligations | 1,207 | — | (1 | ) | — | 1,206 | |||||||||||||||
Total short-term investments | $ | 4,009 | $ | — | $ | (1 | ) | $ | — | $ | 4,008 | ||||||||||
December 31, 2013 | Amortized | Gross | Gross | Other Than | Estimated | ||||||||||||||||
Cost | Unrealized | Unrealized | Temporary | Fair value | |||||||||||||||||
Gains | Losses | Impairment | |||||||||||||||||||
Cash | $ | 21,989 | $ | — | $ | — | $ | — | $ | 21,989 | |||||||||||
Cash equivalents: | |||||||||||||||||||||
Money market funds | 6,306 | — | — | — | 6,306 | ||||||||||||||||
Total cash equivalents | 6,306 | — | — | — | 6,306 | ||||||||||||||||
Total cash and cash equivalents | $ | 28,295 | $ | — | $ | — | $ | — | $ | 28,295 | |||||||||||
Short-term investments: | |||||||||||||||||||||
U.S. government and agency obligations | 6,115 | — | — | — | 6,115 | ||||||||||||||||
Corporate notes and obligations | 1,751 | — | — | — | 1,751 | ||||||||||||||||
Total short-term investments | $ | 7,866 | $ | — | $ | — | $ | — | $ | 7,866 | |||||||||||
The market value and the amortized cost of available-for-sale debt securities by contractual maturities as of June 30, 2014 were as follows (in thousands): | |||||||||||||||||||||
Contractual maturity | Amortized | Estimated | |||||||||||||||||||
Cost | Fair value | ||||||||||||||||||||
Less than 1 year | $ | 2,802 | $ | 2,802 | |||||||||||||||||
Between 1 and 2 years | 1,207 | 1,206 | |||||||||||||||||||
Total | $ | 4,009 | $ | 4,008 | |||||||||||||||||
At June 30, 2014, the Company had no material unrealized losses on our short-term investments. | |||||||||||||||||||||
The Company had no realized gains or losses on sales of its investments for the three and six months ended June 30, 2014 and 2013. The Company had proceeds, net of purchases of investments, of $3.8 million and $3.8 million from maturities and sales of investments during the six months ended June 30, 2014 and 2013, respectively. | |||||||||||||||||||||
The short-term investments in government obligations or highly rated credit securities generally have minor to moderate fluctuations in the fair values from period to period. The Company monitors credit ratings, downgrades and significant events surrounding these securities so as to assess if any of the impairments will be considered other-than-temporary. The Company did not identify any government obligations or highly rated credit securities held as of June 30, 2014 or as of December 31, 2013 for which the fair value declined significantly below amortized cost and were considered other-than-temporary impairments. |
Fair_Value_Measurements
Fair Value Measurements | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||
Fair Value Measurements | |||||||||||||||||
The Company measures financial assets at fair value on an ongoing basis. The estimated fair value of the Company’s financial assets was determined using the following inputs at June 30, 2014 (in thousands): | |||||||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||
Quoted Prices in | Significant | Significant | |||||||||||||||
Active Markets for | Other Observable | Unobservable | |||||||||||||||
Identical Assets | Inputs | Inputs | |||||||||||||||
30-Jun-14 | Total | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
Assets: | |||||||||||||||||
Money market funds (1) | $ | 5,071 | $ | 5,071 | $ | — | $ | — | |||||||||
U.S. government and agency obligations (2) | 2,802 | — | 2,802 | — | |||||||||||||
Corporate notes and obligations (2) | 1,206 | — | 1,206 | — | |||||||||||||
Total | $ | 9,079 | $ | 5,071 | $ | 4,008 | $ | — | |||||||||
_____________________________________________________________________________ | |||||||||||||||||
(1) Included in cash and cash equivalents on the condensed consolidated balance sheet. | |||||||||||||||||
(2) Included in short-term investments on the condensed consolidated balance sheet. | |||||||||||||||||
The estimated fair value of the Company’s financial assets was determined using the following inputs at December 31, 2013 (in thousands): | |||||||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||
Quoted Prices in | Significant | Significant | |||||||||||||||
Active Markets for | Other Observable | Unobservable | |||||||||||||||
Identical Assets | Inputs | Inputs | |||||||||||||||
December 31, 2013 | Total | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
Assets: | |||||||||||||||||
Money market funds (1) | $ | 6,306 | $ | 6,306 | $ | — | $ | — | |||||||||
U.S. government and agency obligations (2) | 6,115 | — | 6,115 | — | |||||||||||||
Corporate notes and obligations (2) | 1,751 | — | 1,751 | — | |||||||||||||
Total | $ | 14,172 | $ | 6,306 | $ | 7,866 | $ | — | |||||||||
_____________________________________________________________________________ | |||||||||||||||||
(1) Included in cash and cash equivalents on the consolidated balance sheet. | |||||||||||||||||
(2) Included in short-term investments on the consolidated balance sheet. | |||||||||||||||||
Valuation of Investments | |||||||||||||||||
Level 1 and Level 2 | |||||||||||||||||
The Company’s available-for-sale securities include money market funds, corporate notes and obligations, and U.S. government and agency obligations. The Company values these securities using a pricing matrix from a pricing service provider, who may use quoted prices in active markets for identical assets (Level 1 inputs) or inputs other than quoted prices that are observable either directly or indirectly (Level 2 inputs). The Company classifies all of its available-for-sale securities, except for money market funds, as having Level 2 inputs. The Company validates the estimated fair value of certain securities from a pricing service provider on a quarterly basis. The valuation techniques used to measure the fair value of the financial instruments having Level 2 inputs, all of which have counterparties with high credit ratings, were derived from the following: non-binding market consensus prices that are corroborated by observable market data, quoted market prices for similar instruments or pricing models, such as discounted cash flow techniques, with all significant inputs derived from or corroborated by observable market data. | |||||||||||||||||
Level 3 | |||||||||||||||||
As of June 30, 2014, the Company had no Level 3 instruments. The Company did not have any transfers between Level 1, Level 2 and Level 3 fair value measurements during the periods presented as there were no changes in the composition in Level 1, 2 or 3. |
Convertible_Notes
Convertible Notes | 6 Months Ended |
Jun. 30, 2014 | |
Debt Disclosure [Abstract] | ' |
Convertible Notes | ' |
Convertible Notes | |
During the three months ended June 30, 2014, an aggregate principal amount of $14.2 million of the Company's 4.75% Convertible Senior Notes (“Convertible Notes”) was converted into 1,840,770 shares of common stock. Additionally, the Company paid accrued interest of $0.3 million and reclassified $0.3 million of deferred debt issuance costs to additional paid-in capital in connection with the conversion of the Convertible Notes. As of June 30, 2014, the Company had no outstanding Convertible Notes or related deferred debt issuance costs. |
Commitments_and_Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
Commitments and Contingencies | |
Except as discussed below, there were no material changes in the Company's commitments under contractual obligations as disclosed in the Company’s audited consolidated financial statements for the year ended December 31, 2013. | |
Revolving Line of Credit | |
In May 2014, the Company entered into a credit agreement with Wells Fargo Bank, National Association ("Lender"), under which the Lender agreed to make a revolving loan ("Revolver") to the Company in an amount not to exceed $10.0 million, with an accordion feature that allows the Company to increase the maximum borrowing amount by not less than $5.0 million and not more than $10.0 million. The Revolver matures in May 2019. Outstanding borrowings under the Revolver bear interest, at the Company's option, at a base rate plus an applicable margin. The applicable margin ranges between 0.75% and 2.25% depending on the Company's leverage ratio. Interest is payable every three months. | |
As of June 30, 2014, the Company has borrowed $3.0 million under the Revolver and repaid in full the indebtedness incurred pursuant to the term note entered into in January 2014. | |
Warranties and Indemnification | |
The Company generally warrants that its software will perform in accordance with its standard documentation. Under the Company’s standard warranty, should a software product not perform as specified in the documentation within the warranty period, the Company will repair or replace the software or refund the license fee paid. To date, the Company has not incurred any incremental costs related to warranty obligations for its software. | |
The Company’s product license and on-demand agreements typically include a limited indemnification provision for claims by third parties relating to the Company’s intellectual property. To date, the Company has not incurred material costs, and has not accrued any costs related to such indemnification provisions. | |
Intellectual Property Litigation | |
Versata Software, Inc. and Versata Development Group, Inc. v. Callidus Software, Inc. - Ongoing | |
On July 19, 2012, Versata Software, Inc. and Versata Development Group, Inc. (collectively, “Versata”) filed suit against Callidus in the United States District Court for the District of Delaware (“Delaware District Court”). The suit asserts that the Company infringes U.S. Patent Nos. 7,904,326, 7,908,304 and 7,958,024. The Company believes that the claims are without merit and intends to vigorously defend against these claims. On May 30, 2013, the Company answered the complaint and filed a counterclaim against Versata in the Delaware District Court. The Company's counterclaim asserts that Versata infringes U.S. Patent Nos. 6,269,355, 6,850,924 and 6,473,748. On August 30, 2013, the Company filed petitions with the United States Patent and Trademark Office Patent Trial and Appeal Board (“PTAB”) for covered business method (“CBM”) patent review of U.S. Patent Nos. 7,904,326, 7,908,304 and 7,958,024, which Versata filed responses to on December 12, 2013. The Company also filed a motion with the Delaware District Court on August 30, 2013 to stay the litigation pending completion of the patent review proceedings with the PTAB (“Motion to Stay”). On January 8, 2014, the Company was granted leave by the Delaware District Court to add Versata Inc. as a counterclaim defendant. On March 4, 2014, the PTAB instituted covered business method patent review of each of Versata’s patents, namely, U.S. Patent Nos. 7,904,326, 7,908,304 and 7,958,024, finding that it is more likely than not that the Company will prevail in establishing that the challenged claims are not patentable. After requesting that the PTAB reconsider its decision to institute, which was denied, Versata filed a petition for writ of mandamus with the Court of Appeals for the Federal Circuit (“CAFC”) on April 11, 2014 asking that Court to deny institution of CBM patent review by the PTAB. The CAFC denied Versata’s petition for writ of mandamus on May 5, 2014. On April 17, 2014, the Company filed additional petitions with the PTAB for CBM patent review to address all of the remaining claims not previously covered in the prior petitions with respect to U.S Patent Nos. 7,908,304 and 7,958,024. On May 8, 2014, the Delaware District Court: (i) granted the Company’s Motion to Stay in part with respect to U.S. Patent No. 7,904,326, and (ii) denied the Company’s Motion to Stay in part with respect to U.S. Patent Nos. 7,908,304 and 7,958,024. On May 8, 2014, the Company appealed to the CAFC the Delaware District Court’s denial of the Motion to Stay with respect to U.S. Patent Nos. 7,908,304 and 7,958,024. At this stage in the case, the Company is not in a position to assess whether any loss or adverse effect on the Company's financial condition is probable, or to estimate the range of potential loss, if any. | |
Other Matters | |
In addition to the above litigation matter, the Company is from time to time a party to other various litigation and customer disputes incidental to the conduct of its business. At the present time, the Company believes that none of these matters are likely to have a material adverse effect on the Company’s future financial results. | |
The Company records a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. The Company reviews the need for any such liability on a quarterly basis and records any necessary adjustments to reflect the effect of ongoing negotiations, contract disputes, settlements, rulings, advice of legal counsel, and other information and events pertaining to a particular case in the period they become known. At June 30, 2014, the Company had not recorded any such liabilities in accordance with accounting for contingencies. However, litigation and other disputes are subject to inherent uncertainties and the Company's view on these matters may change in the future. |
Net_Loss_Per_Share
Net Loss Per Share | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Net Loss Per Share | ' | |||||||||||||||
Net Income (Loss) Per Share | ||||||||||||||||
Basic net income (loss) per share is calculated by dividing net income (loss) for the period by the weighted average common shares outstanding during the period. Diluted net income (loss) per share is calculated by dividing the net income (loss) for the period by the weighted average common shares outstanding, adjusted for all dilutive potential common shares, which includes shares issuable for the period of time the Convertible Notes were outstanding, the exercise of outstanding common stock options, the release of restricted stock units, and purchases of shares pursuant to our employee stock purchase plan ("ESPP"), to the extent these shares are dilutive. | ||||||||||||||||
The following table presents the calculation of basic and diluted net income per share (in thousands, except per share data): | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Numerator: | ||||||||||||||||
Net income (loss) | 250 | (6,415 | ) | (2,217 | ) | (13,018 | ) | |||||||||
Denominator: | ||||||||||||||||
Weighted-average shares used in computing net income (loss) per share: | ||||||||||||||||
Basic | 46,648 | 37,813 | 46,298 | 37,478 | ||||||||||||
Weighted-average effect of potentially dilutive shares: | ||||||||||||||||
Restricted Stock Units | 689 | — | — | — | ||||||||||||
Stock Options | 690 | — | — | — | ||||||||||||
ESPP Shares | 34 | — | — | — | ||||||||||||
Convertible Notes | — | — | — | — | ||||||||||||
Diluted | 48,061 | 37,813 | 46,298 | 37,478 | ||||||||||||
Net income (loss) per share | ||||||||||||||||
Basic | $ | — | $ | (0.17 | ) | $ | (0.05 | ) | $ | (0.35 | ) | |||||
Diluted | $ | — | $ | (0.17 | ) | $ | (0.05 | ) | $ | (0.35 | ) | |||||
The following table summarizes the weighted-average potential shares that were excluded from the diluted per share calculation because to include them would have been anti-dilutive for the period (in thousands): | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Restricted Stock Units | 1,395 | 2,008 | 2,245 | 2,122 | ||||||||||||
Stock Options | 236 | 2,513 | 1,841 | 2,655 | ||||||||||||
ESPP Shares | 31 | 155 | 65 | 115 | ||||||||||||
Convertible Notes | 1,507 | 7,680 | 1,674 | 7,680 | ||||||||||||
Total | 3,169 | 12,356 | 5,825 | 12,572 | ||||||||||||
The weighted average exercise price of stock options excluded for the three and six months ended June 30, 2014 were $7.96 and $5.34, respectively. The weighted average exercise price of stock options excluded for the three and six months ended June 30, 2013 were $4.04 and $4.02, respectively. |
Stockbased_Compensation
Stock-based Compensation | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
Stock-based Compensation | ' | |||||||||||||||
Stock-based Compensation | ||||||||||||||||
Expense Summary | ||||||||||||||||
The table below sets forth a summary of stock-based compensation expense for the three and six months ended June 30, 2014 and 2013 (in thousands): | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Stock Options | $ | 210 | $ | 382 | $ | 413 | $ | 461 | ||||||||
Restricted Stock Units | ||||||||||||||||
Performance Awards | 435 | 394 | 827 | 521 | ||||||||||||
Service-based Awards | 1,798 | 2,294 | 3,290 | 4,513 | ||||||||||||
ESPP Shares | 189 | 140 | 394 | 306 | ||||||||||||
Total Stock-based Compensation | $ | 2,632 | $ | 3,210 | $ | 4,924 | $ | 5,801 | ||||||||
As of June 30, 2014, there were $2.2 million, $3.9 million, $11.9 million and $0.2 million of total unrecognized compensation expense related to stock options, performance awards, service-based awards and ESPP shares, respectively. The expenses related to stock options, performance awards, service-based awards and ESPP shares are expected to be recognized over a weighted average period of 2.9 years, 2.3 years, 1.8 years and 0.5 years, respectively. | ||||||||||||||||
The table below sets forth the functional classification of stock-based compensation expense for the three and six months ended June 30, 2014 and 2013 (in thousands): | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Cost of recurring revenue | $ | 192 | $ | 204 | $ | 374 | $ | 378 | ||||||||
Cost of services and other revenue | 256 | 236 | 470 | 642 | ||||||||||||
Sales and marketing | 810 | 582 | 1,402 | 1,155 | ||||||||||||
Research and development | 474 | 467 | 912 | 933 | ||||||||||||
General and administrative | 900 | 1,721 | 1,766 | 2,693 | ||||||||||||
Total stock-based compensation | $ | 2,632 | $ | 3,210 | $ | 4,924 | $ | 5,801 | ||||||||
Performance Awards | ||||||||||||||||
In 2014, the Company granted performance awards with vesting contingent on absolute SaaS revenue growth over the three year period from 2014 through 2016, and the Company’s relative total stockholder return over the three year period from 2014 through 2016 versus an index of 17 SaaS companies. | ||||||||||||||||
In 2013, the Company granted performance awards with vesting contingent on successful attainment of pre-set SaaS revenue growth and recurring revenue gross profit targets. | ||||||||||||||||
Determination of Fair Value | ||||||||||||||||
The fair value of service-based awards is estimated based on the market value of the Company’s stock on the date of grant. A portion of the performance awards granted during 2014 are based on relative stockholder return and therefore, are subject to a market condition. As a result, the fair value of performance awards is calculated using a Monte Carlo simulation model that estimates the distribution of the potential outcomes of the grants of performance awards based on simulated future index of the peer companies. | ||||||||||||||||
The fair value of each stock option is estimated on the date of grant using the Black-Scholes valuation model and the assumptions noted in the following table. No stock options were granted during the three and six months ended June 30, 2014. | ||||||||||||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Stock Option Plans | ||||||||||||||||
Expected life (in years) | — | 5.0 to 6.0 | — | 5.0 to 6.0 | ||||||||||||
Risk-free interest rate | — | % | 1.41% to 1.69% | — | % | 1.41% to 1.69% | ||||||||||
Volatility | — | % | 61% to 63% | — | % | 61% to 63% | ||||||||||
Dividend Yield | — | None | — | None | ||||||||||||
The fair value of each ESPP share is estimated on the enrollment date of the offering period using the Black-Scholes valuation model and the assumptions noted in the following table. | ||||||||||||||||
Six Months Ended June 30, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Employee Stock Purchase Plan | ||||||||||||||||
Expected life (in years) | 0.49 to 1.00 | 0.50 to 1.00 | ||||||||||||||
Risk-free interest rate | 0.08% to 0.12% | 0.13% to 0.17% | ||||||||||||||
Volatility | 47% to 50% | 52% to 62% | ||||||||||||||
Dividend yield | None | None | ||||||||||||||
Income_Taxes_Notes
Income Taxes (Notes) | 6 Months Ended |
Jun. 30, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Tax Disclosure [Text Block] | ' |
Income Taxes | |
Income tax expense for the three and six months ended June 30, 2014 was $0.5 million and $0.7 million, compared to income tax expense of $1.1 million and $1.2 million for the same periods of 2013. The decrease in the tax expense for the three and six month periods was primarily due to withholding taxes in foreign jurisdictions, partially offset by the release in Q1 2014 of a portion of the valuation allowance associated with the acquisition of LeadRocket. |
Segment_Geographic_and_Custome
Segment, Geographic and Customer Information | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Segment, Geographic and Customer Information | ' | |||||||||||||||
Segment, Geographic and Customer Information | ||||||||||||||||
The accounting principles guiding disclosures about segments of an enterprise and related information establishes standards for the reporting by business enterprises of information about operating segments, products and services, geographic areas, and major customers. The method of determining which information is reported is based on the way that management organizes the operating segments within the Company for making operational decisions and assessments of financial performance. The Company’s chief operating decision maker is considered to be the Company’s chief executive officer ("CEO"). The CEO reviews financial information presented on a consolidated basis for purposes of making operating decisions and assessing financial performance. By this definition, the Company operates in one business segment, which is the development, marketing and sale of sales and marketing effectiveness cloud software and related services. | ||||||||||||||||
The following table summarizes revenue for the three and six months ended June 30, 2014 and 2013 by geographic areas (in thousands): | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
United States | $ | 25,178 | $ | 20,489 | $ | 50,493 | $ | 40,564 | ||||||||
EMEA | 3,785 | 2,984 | 6,747 | 6,177 | ||||||||||||
Asia Pacific | 1,916 | 1,451 | 3,242 | 2,510 | ||||||||||||
Other | 1,636 | 1,006 | 3,010 | 2,221 | ||||||||||||
$ | 32,515 | $ | 25,930 | $ | 63,492 | $ | 51,472 | |||||||||
Substantially all of the Company’s long-lived assets are located in the United States. Long-lived assets located outside the United States are not significant. | ||||||||||||||||
During the three and six months ended June 30, 2014 and 2013, no customer accounted for more than 10% of total revenue. |
Related_Party_Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2014 | |
Related Party Transactions [Abstract] | ' |
Related-Party Transactions | ' |
Related-Party Transactions | |
In June 2014, in the normal course of business, the Company entered into agreements with Lithium Technologies, Inc. (“Lithium”), whose Chief Financial Officer is a member of the Company's Board of Directors. The Company purchased an annual subscription for Lithium's social media management solutions in the amount of $120,000. | |
In June 2013, Lithium entered into a two-year hosting agreement with the Company for an annual amount of $113,000. During the three and six months ended June 30, 2014, the Company recognized approximately $25,000 and $51,000, respectively, in revenue under the $113,000 annual hosting agreement. | |
During 2013 and 2014, the Company entered into agreements with Lithium to provide services in an aggregate amount of $173,550, of which the Company recognized approximately $3,000 and $40,000 for the three and six months ended June 30, 2014, respectively. | |
Webcom, Inc., a wholly-owned subsidiary of the Company, engages the services of a third-party vendor to perform product modeling and maintenance of certain equipment. The third-party vendor is owned by a relative of Webcom’s senior management. For the three and six months ended June 30, 2014, the Company paid approximately $25,000 and $76,000, respectively, to this vendor. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Basis of Presentation and Summary of Accounting Policies | ' |
Basis of Presentation and Summary of Accounting Policies | |
All amounts included herein related to the condensed consolidated financial statements as of June 30, 2014 and the three and six months ended June 30, 2014 and 2013 are unaudited and should be read in conjunction with the audited consolidated financial statements and the notes thereto included in Callidus Software Inc.'s ("the Company") Annual Report on Form 10-K for the year ended December 31, 2013. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") have been condensed or omitted pursuant to the Securities and Exchange Commission ("SEC") rules and regulations regarding interim financial statements. | |
In the opinion of management, the accompanying condensed consolidated financial statements include all necessary adjustments for the fair presentation of the Company’s financial position, results of operations and cash flows. The results of operations for the interim periods presented are not necessarily indicative of the operating results to be expected for any subsequent interim period or for the full fiscal year ending December 31, 2014. | |
The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, which include wholly-owned subsidiaries in Australia, Canada, Germany, Hong Kong, India, Japan, Malaysia, Mexico, New Zealand, Netherlands, Serbia, Singapore, and the United Kingdom. All intercompany transactions and balances have been eliminated upon consolidation. | |
Use of Estimates | ' |
Use of Estimates | |
Preparation of the condensed consolidated financial statements in conformity with GAAP and the rules and regulations of the SEC requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, the reported amounts of revenue and expenses during the reporting period and the accompanying notes. Estimates are used for, but not limited to, uncertain tax liabilities, allowances for doubtful accounts, the useful lives of fixed assets and intangible assets, goodwill and intangible asset impairments, stock-based compensation forfeiture rates, accrued liabilities, the allocation of the value of purchase consideration for business acquisitions, and other contingencies. These estimates and assumptions are based on management’s best estimates and judgment. Management evaluates such estimates and assumptions on an ongoing basis for continued reasonableness, using historical experience and other factors, including the current economic environment. Appropriate adjustments, if any, to the estimates used are made prospectively based upon such evaluation. Illiquid credit markets, volatile equity and foreign currency markets and declines in information technology spending by prospective customers have combined to increase the uncertainty inherent in such estimates and assumptions. As future events and their effects cannot be determined with precision, actual results could differ materially from those estimates. Changes in those estimates, if any, resulting from continuing changes in the economic environment, will be reflected in the condensed consolidated financial statements in future periods. | |
Recently Adopted Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
In May 2014, the FASB issued an accounting standard update “Revenue from Contracts with Customers” that replaces existing revenue recognition guidance and convergences with the international accounting standards. The accounting standard update removes the current inconsistencies and weaknesses with existing revenue recognition guidance, provides a more robust framework to address revenue recognition issues, communicates more useful information through improved disclosure requirements, and simplifies financial statement preparation by reducing the number of revenue recognition requirements. This accounting standard update will be effective for the Company beginning in the first quarter of fiscal 2017. The Company is currently evaluating the impact of this accounting standard update on its Consolidated Financial Statements. |
Restructuring_Tables
Restructuring (Tables) | 6 Months Ended | |||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||||||||||
Summary of accrued restructuring expenses | ' | |||||||||||||||||||
The following table sets forth a summary of accrued restructuring expenses for the six months ended June 30, 2014 and 2013, respectively (in thousands): | ||||||||||||||||||||
31-Dec-13 | Cash | Additions | Adjustments | June 30, 2014 | ||||||||||||||||
Payments | ||||||||||||||||||||
Severance and termination-related costs | $ | 141 | $ | (203 | ) | $ | 70 | $ | — | $ | 8 | |||||||||
Facilities-related costs | 234 | (79 | ) | 162 | — | 317 | ||||||||||||||
Total accrued restructuring expenses | $ | 375 | $ | (282 | ) | $ | 232 | $ | — | $ | 325 | |||||||||
During the three months ended June 30, 2014, the Company has also incurred $0.2 million of non-cash expense primarily related to incremental depreciation expense as a result of the change in the estimated useful life of assets to be abandoned. | ||||||||||||||||||||
December 31, | Cash | Additions | Adjustments | 30-Jun-13 | ||||||||||||||||
2012 | Payments | |||||||||||||||||||
Severance and termination-related costs | $ | 589 | $ | (2,115 | ) | $ | 1,566 | $ | (8 | ) | $ | 32 | ||||||||
Facilities related costs | 289 | (20 | ) | — | — | 269 | ||||||||||||||
Total accrued restructuring expenses | $ | 878 | $ | (2,135 | ) | $ | 1,566 | $ | (8 | ) | $ | 301 | ||||||||
Acquisitions_Acquisitions_Tabl
Acquisitions Acquisitions (Tables) | 6 Months Ended | |||||
Jun. 30, 2014 | ||||||
Business Acquisition [Line Items] | ' | |||||
Schedule of Goodwill | ' | |||||
As of June 30, 2014 and December 31, 2013, goodwill consisted of the following (in thousands): | ||||||
Balance as of December 31, 2013 | $ | 31,207 | ||||
LeadRocket | 1,584 | |||||
Balance as of June 30, 2014 | $ | 32,791 | ||||
LeadRocket | ' | |||||
Business Acquisition [Line Items] | ' | |||||
Schedule of Purchase Price Allocation | ' | |||||
The preliminary purchase price allocation for LeadRocket is summarized as follows (in thousands): | ||||||
Fair Value | ||||||
Net liabilities assumed | $ | (1,075 | ) | |||
Intangible assets | 2,640 | |||||
Goodwill | 1,584 | |||||
Deferred tax liabilities | (149 | ) | ||||
Total purchase price | $ | 3,000 | ||||
Schedule of Intangible Assets | ' | |||||
The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the date of the LeadRocket acquisition (in thousands): | ||||||
Fair Value | Useful Life | |||||
Developed technology | $ | 570 | 2-4 years | |||
Patents | 1,060 | 10 years | ||||
Domain names and trademarks | 850 | 5 years | ||||
Customer relationships | 160 | 3 years | ||||
Total intangible assets subject to amortization | $ | 2,640 | ||||
Financial_Instruments_Tables
Financial Instruments (Tables) | 6 Months Ended | ||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||
Financial Instruments | ' | ||||||||||||||||||||
Summary of cash, cash equivalents and investments classified as available-for-sale | ' | ||||||||||||||||||||
The components of the Company’s cash, cash equivalents, and investments classified as available-for-sale were as follows at June 30, 2014 and December 31, 2013 (in thousands): | |||||||||||||||||||||
30-Jun-14 | Amortized | Gross | Gross | Other Than | Estimated | ||||||||||||||||
Cost | Unrealized | Unrealized | Temporary | Fair value | |||||||||||||||||
Gains | Losses | Impairment | |||||||||||||||||||
Cash | $ | 32,843 | $ | — | $ | — | $ | — | $ | 32,843 | |||||||||||
Cash equivalents: | |||||||||||||||||||||
Money market funds | 5,071 | — | — | — | 5,071 | ||||||||||||||||
Total cash equivalents | 5,071 | — | — | — | 5,071 | ||||||||||||||||
Total cash and cash equivalents | $ | 37,914 | $ | — | $ | — | $ | — | $ | 37,914 | |||||||||||
Short-term investments: | |||||||||||||||||||||
U.S. government and agency obligations | 2,802 | — | — | — | 2,802 | ||||||||||||||||
Corporate notes and obligations | 1,207 | — | (1 | ) | — | 1,206 | |||||||||||||||
Total short-term investments | $ | 4,009 | $ | — | $ | (1 | ) | $ | — | $ | 4,008 | ||||||||||
December 31, 2013 | Amortized | Gross | Gross | Other Than | Estimated | ||||||||||||||||
Cost | Unrealized | Unrealized | Temporary | Fair value | |||||||||||||||||
Gains | Losses | Impairment | |||||||||||||||||||
Cash | $ | 21,989 | $ | — | $ | — | $ | — | $ | 21,989 | |||||||||||
Cash equivalents: | |||||||||||||||||||||
Money market funds | 6,306 | — | — | — | 6,306 | ||||||||||||||||
Total cash equivalents | 6,306 | — | — | — | 6,306 | ||||||||||||||||
Total cash and cash equivalents | $ | 28,295 | $ | — | $ | — | $ | — | $ | 28,295 | |||||||||||
Short-term investments: | |||||||||||||||||||||
U.S. government and agency obligations | 6,115 | — | — | — | 6,115 | ||||||||||||||||
Corporate notes and obligations | 1,751 | — | — | — | 1,751 | ||||||||||||||||
Total short-term investments | $ | 7,866 | $ | — | $ | — | $ | — | $ | 7,866 | |||||||||||
Schedule of contractual maturities of available-for-sale debt securities | ' | ||||||||||||||||||||
The market value and the amortized cost of available-for-sale debt securities by contractual maturities as of June 30, 2014 were as follows (in thousands): | |||||||||||||||||||||
Contractual maturity | Amortized | Estimated | |||||||||||||||||||
Cost | Fair value | ||||||||||||||||||||
Less than 1 year | $ | 2,802 | $ | 2,802 | |||||||||||||||||
Between 1 and 2 years | 1,207 | 1,206 | |||||||||||||||||||
Total | $ | 4,009 | $ | 4,008 | |||||||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | ' | ||||||||||||||||
The estimated fair value of the Company’s financial assets was determined using the following inputs at December 31, 2013 (in thousands): | |||||||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||
Quoted Prices in | Significant | Significant | |||||||||||||||
Active Markets for | Other Observable | Unobservable | |||||||||||||||
Identical Assets | Inputs | Inputs | |||||||||||||||
December 31, 2013 | Total | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
Assets: | |||||||||||||||||
Money market funds (1) | $ | 6,306 | $ | 6,306 | $ | — | $ | — | |||||||||
U.S. government and agency obligations (2) | 6,115 | — | 6,115 | — | |||||||||||||
Corporate notes and obligations (2) | 1,751 | — | 1,751 | — | |||||||||||||
Total | $ | 14,172 | $ | 6,306 | $ | 7,866 | $ | — | |||||||||
_____________________________________________________________________________ | |||||||||||||||||
(1) Included in cash and cash equivalents on the consolidated balance sheet. | |||||||||||||||||
(2) Included in short-term investments on the consolidated balance sheet. | |||||||||||||||||
The estimated fair value of the Company’s financial assets was determined using the following inputs at June 30, 2014 (in thousands): | |||||||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||
Quoted Prices in | Significant | Significant | |||||||||||||||
Active Markets for | Other Observable | Unobservable | |||||||||||||||
Identical Assets | Inputs | Inputs | |||||||||||||||
30-Jun-14 | Total | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
Assets: | |||||||||||||||||
Money market funds (1) | $ | 5,071 | $ | 5,071 | $ | — | $ | — | |||||||||
U.S. government and agency obligations (2) | 2,802 | — | 2,802 | — | |||||||||||||
Corporate notes and obligations (2) | 1,206 | — | 1,206 | — | |||||||||||||
Total | $ | 9,079 | $ | 5,071 | $ | 4,008 | $ | — | |||||||||
_____________________________________________________________________________ | |||||||||||||||||
(1) Included in cash and cash equivalents on the condensed consolidated balance sheet. | |||||||||||||||||
(2) Included in short-term investments on the condensed consolidated balance sheet. |
Net_Loss_Per_Share_Tables
Net Loss Per Share (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Schedule of Calculation of Numerator and Denominator in Earnings Per Share [Table Text Block] | ' | |||||||||||||||
The following table presents the calculation of basic and diluted net income per share (in thousands, except per share data): | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Numerator: | ||||||||||||||||
Net income (loss) | 250 | (6,415 | ) | (2,217 | ) | (13,018 | ) | |||||||||
Denominator: | ||||||||||||||||
Weighted-average shares used in computing net income (loss) per share: | ||||||||||||||||
Basic | 46,648 | 37,813 | 46,298 | 37,478 | ||||||||||||
Weighted-average effect of potentially dilutive shares: | ||||||||||||||||
Restricted Stock Units | 689 | — | — | — | ||||||||||||
Stock Options | 690 | — | — | — | ||||||||||||
ESPP Shares | 34 | — | — | — | ||||||||||||
Convertible Notes | — | — | — | — | ||||||||||||
Diluted | 48,061 | 37,813 | 46,298 | 37,478 | ||||||||||||
Net income (loss) per share | ||||||||||||||||
Basic | $ | — | $ | (0.17 | ) | $ | (0.05 | ) | $ | (0.35 | ) | |||||
Diluted | $ | — | $ | (0.17 | ) | $ | (0.05 | ) | $ | (0.35 | ) | |||||
Schedule of potential weighted average common shares excluded from computation of diluted net loss per share | ' | |||||||||||||||
The following table summarizes the weighted-average potential shares that were excluded from the diluted per share calculation because to include them would have been anti-dilutive for the period (in thousands): | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Restricted Stock Units | 1,395 | 2,008 | 2,245 | 2,122 | ||||||||||||
Stock Options | 236 | 2,513 | 1,841 | 2,655 | ||||||||||||
ESPP Shares | 31 | 155 | 65 | 115 | ||||||||||||
Convertible Notes | 1,507 | 7,680 | 1,674 | 7,680 | ||||||||||||
Total | 3,169 | 12,356 | 5,825 | 12,572 | ||||||||||||
Stockbased_Compensation_Tables
Stock-based Compensation (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
Summary of stock-based compensation expenses | ' | |||||||||||||||
The table below sets forth a summary of stock-based compensation expense for the three and six months ended June 30, 2014 and 2013 (in thousands): | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Stock Options | $ | 210 | $ | 382 | $ | 413 | $ | 461 | ||||||||
Restricted Stock Units | ||||||||||||||||
Performance Awards | 435 | 394 | 827 | 521 | ||||||||||||
Service-based Awards | 1,798 | 2,294 | 3,290 | 4,513 | ||||||||||||
ESPP Shares | 189 | 140 | 394 | 306 | ||||||||||||
Total Stock-based Compensation | $ | 2,632 | $ | 3,210 | $ | 4,924 | $ | 5,801 | ||||||||
Schedule of functional classification of stock-based compensation expense | ' | |||||||||||||||
The table below sets forth the functional classification of stock-based compensation expense for the three and six months ended June 30, 2014 and 2013 (in thousands): | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Cost of recurring revenue | $ | 192 | $ | 204 | $ | 374 | $ | 378 | ||||||||
Cost of services and other revenue | 256 | 236 | 470 | 642 | ||||||||||||
Sales and marketing | 810 | 582 | 1,402 | 1,155 | ||||||||||||
Research and development | 474 | 467 | 912 | 933 | ||||||||||||
General and administrative | 900 | 1,721 | 1,766 | 2,693 | ||||||||||||
Total stock-based compensation | $ | 2,632 | $ | 3,210 | $ | 4,924 | $ | 5,801 | ||||||||
Schedule of valuation assumptions for determining the fair value of stock options and employee stock purchase plans | ' | |||||||||||||||
The fair value of each stock option is estimated on the date of grant using the Black-Scholes valuation model and the assumptions noted in the following table. No stock options were granted during the three and six months ended June 30, 2014. | ||||||||||||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Stock Option Plans | ||||||||||||||||
Expected life (in years) | — | 5.0 to 6.0 | — | 5.0 to 6.0 | ||||||||||||
Risk-free interest rate | — | % | 1.41% to 1.69% | — | % | 1.41% to 1.69% | ||||||||||
Volatility | — | % | 61% to 63% | — | % | 61% to 63% | ||||||||||
Dividend Yield | — | None | — | None | ||||||||||||
The fair value of each ESPP share is estimated on the enrollment date of the offering period using the Black-Scholes valuation model and the assumptions noted in the following table. | ||||||||||||||||
Six Months Ended June 30, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Employee Stock Purchase Plan | ||||||||||||||||
Expected life (in years) | 0.49 to 1.00 | 0.50 to 1.00 | ||||||||||||||
Risk-free interest rate | 0.08% to 0.12% | 0.13% to 0.17% | ||||||||||||||
Volatility | 47% to 50% | 52% to 62% | ||||||||||||||
Dividend yield | None | None | ||||||||||||||
Segment_Geographic_and_Custome1
Segment, Geographic and Customer Information (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Summary of revenues by geographic areas | ' | |||||||||||||||
The following table summarizes revenue for the three and six months ended June 30, 2014 and 2013 by geographic areas (in thousands): | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
United States | $ | 25,178 | $ | 20,489 | $ | 50,493 | $ | 40,564 | ||||||||
EMEA | 3,785 | 2,984 | 6,747 | 6,177 | ||||||||||||
Asia Pacific | 1,916 | 1,451 | 3,242 | 2,510 | ||||||||||||
Other | 1,636 | 1,006 | 3,010 | 2,221 | ||||||||||||
$ | 32,515 | $ | 25,930 | $ | 63,492 | $ | 51,472 | |||||||||
Restructuring_Details
Restructuring (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Restructuring and Related Activities [Abstract] | ' | ' | ' | ' |
Restructuring expenses | $404,000 | $315,000 | $404,000 | $1,558,000 |
Restructuring | ' | ' | ' | ' |
Other Noncash Income (Expense) | ' | ' | 200,000 | ' |
Changes in restructuring reserve | ' | ' | ' | ' |
Balance at the beginning of the period | ' | ' | 375,000 | 878,000 |
Cash Payments | ' | ' | -282,000 | -2,135,000 |
Additions | ' | ' | 232,000 | 1,566,000 |
Adjustments | ' | ' | ' | 8,000 |
Balance at the end of the period | 325,000 | 301,000 | 325,000 | 301,000 |
Severance and termination-related costs | ' | ' | ' | ' |
Changes in restructuring reserve | ' | ' | ' | ' |
Balance at the beginning of the period | ' | ' | 141,000 | 589,000 |
Cash Payments | ' | ' | -203,000 | -2,115,000 |
Additions | ' | ' | 70,000 | 1,566,000 |
Adjustments | ' | ' | ' | 8,000 |
Balance at the end of the period | 8,000 | 32,000 | 8,000 | 32,000 |
Facilities related costs | ' | ' | ' | ' |
Changes in restructuring reserve | ' | ' | ' | ' |
Balance at the beginning of the period | ' | ' | 234,000 | 289,000 |
Cash Payments | ' | ' | -79,000 | -20,000 |
Additions | ' | ' | 162,000 | 0 |
Adjustments | ' | ' | ' | 0 |
Balance at the end of the period | $317,000 | $269,000 | $317,000 | $269,000 |
Acquisitions_Details
Acquisitions (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Feb. 04, 2014 | Feb. 04, 2014 | Jun. 30, 2013 | Feb. 04, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Feb. 04, 2014 | Jun. 30, 2014 | Feb. 04, 2014 | Jun. 30, 2014 | Feb. 04, 2014 |
LeadRocket, Inc. | LeadRocket, Inc. | LeadRocket, Inc. | Developed technology | Developed technology | Developed technology | Patents | Patents | Domain names and trademarks | Domain names and trademarks | Customer relationships | Customer relationships | |||
LeadRocket, Inc. | Minimum | Maximum | LeadRocket, Inc. | LeadRocket, Inc. | LeadRocket, Inc. | LeadRocket, Inc. | LeadRocket, Inc. | LeadRocket, Inc. | ||||||
LeadRocket, Inc. | LeadRocket, Inc. | |||||||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash paid for the acquisition | ' | ' | $3,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments to Acquire Businesses, Gross | ' | ' | 2,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Indemnity holdback | ' | ' | ' | 500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Indemnity holdback accrued | ' | ' | ' | ' | 400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net liabilities assumed | ' | ' | ' | -1,075,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intangible assets | ' | ' | ' | 2,640,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill | 32,791,000 | 31,207,000 | ' | 1,584,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred tax liabilities | ' | ' | ' | -149,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intangible assets | ' | ' | ' | $2,640,000 | ' | $570,000 | ' | ' | ' | $1,060,000 | ' | $850,000 | ' | $160,000 |
Estimated useful life | ' | ' | ' | ' | ' | ' | '2 years | '4 years | '10 years | ' | '5 years | ' | '3 years | ' |
Financial_Instruments_Details
Financial Instruments (Details) (USD $) | 6 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | |
Cash | Cash | Cash equivalents | Cash equivalents | Money market funds | Money market funds | Cash and cash equivalents | Cash and cash equivalents | Short-term investments | Short-term investments | U.S. government and agency obligations | U.S. government and agency obligations | Corporate notes and obligations | Corporate notes and obligations | |||||
Financial instruments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Material unrealized loss | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | ' | ' | ' | ' | ' |
Proceeds from Sale and Maturity of Available-for-sale Securities | 3,800,000 | 3,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents | 37,914,000 | 18,299,000 | 28,295,000 | 16,400,000 | 32,843,000 | 21,989,000 | 5,071,000 | 6,306,000 | 5,071,000 | 6,306,000 | 37,914,000 | 28,295,000 | ' | ' | ' | ' | ' | ' |
Amortized Cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,009,000 | 7,866,000 | 2,802,000 | 6,115,000 | 1,207,000 | 1,751,000 |
Gross Unrealized Gains | ' | ' | ' | ' | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Gross Unrealized Losses | ' | ' | ' | ' | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -1,000 | 0 | 0 | 0 | -1,000 | 0 |
Other Than Temporary Impairment | ' | ' | ' | ' | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Estimated Fair Value, Cash and Cash Equivalents | ' | ' | ' | ' | 32,843,000 | 21,989,000 | 5,071,000 | 6,306,000 | 5,071,000 | 6,306,000 | 37,914,000 | 28,295,000 | ' | ' | ' | ' | ' | ' |
Estimated FV, Available for Sale Securities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $4,008,000 | $7,866,000 | $2,802,000 | $6,115,000 | $1,206,000 | $1,751,000 |
Financial_Instruments_Details_
Financial Instruments (Details 2) (USD $) | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
investment | ||
Contractual maturity, Amortized Cost | ' | ' |
Less than 1 year | $2,802,000 | ' |
Between 1 and 2 years | 1,207,000 | ' |
Total | 4,009,000 | ' |
Contractual maturity, Estimated Fair value | ' | ' |
Less than 1 year | 2,802,000 | ' |
Between 1 and 2 years | 1,206,000 | ' |
Total | 4,008,000 | ' |
Other disclosures pertaining to available-for-sale securities | ' | ' |
Short-term investments in a material unrealized loss position with maturities of greater than 12 months | 0 | ' |
Realized gains or losses on sales of investments | 0 | ' |
Proceeds from Sale and Maturity of Available-for-sale Securities | $3,800,000 | $3,800,000 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (Ongoing basis, USD $) | Jun. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Total | ' | ' | ||
Assets: | ' | ' | ||
Assets, Fair Value Disclosure | $9,079 | $14,172 | ||
Total | Money market funds | ' | ' | ||
Assets: | ' | ' | ||
Assets, Fair Value Disclosure | 5,071 | [1] | 6,306 | [2] |
Total | U.S. government and agency obligations | ' | ' | ||
Assets: | ' | ' | ||
Assets, Fair Value Disclosure | 2,802 | [3] | 6,115 | [4] |
Total | Corporate notes and obligations | ' | ' | ||
Assets: | ' | ' | ||
Assets, Fair Value Disclosure | 1,206 | [3] | 1,751 | [4] |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' | ||
Assets: | ' | ' | ||
Assets, Fair Value Disclosure | 5,071 | 6,306 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Money market funds | ' | ' | ||
Assets: | ' | ' | ||
Assets, Fair Value Disclosure | 5,071 | [1] | 6,306 | [2] |
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. government and agency obligations | ' | ' | ||
Assets: | ' | ' | ||
Assets, Fair Value Disclosure | 0 | [3] | 0 | [4] |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate notes and obligations | ' | ' | ||
Assets: | ' | ' | ||
Assets, Fair Value Disclosure | 0 | [3] | 0 | [4] |
Significant Other Observable Inputs (Level 2) | ' | ' | ||
Assets: | ' | ' | ||
Assets, Fair Value Disclosure | 4,008 | 7,866 | ||
Significant Other Observable Inputs (Level 2) | Money market funds | ' | ' | ||
Assets: | ' | ' | ||
Assets, Fair Value Disclosure | 0 | [1] | 0 | [2] |
Significant Other Observable Inputs (Level 2) | U.S. government and agency obligations | ' | ' | ||
Assets: | ' | ' | ||
Assets, Fair Value Disclosure | 2,802 | [3] | 6,115 | [4] |
Significant Other Observable Inputs (Level 2) | Corporate notes and obligations | ' | ' | ||
Assets: | ' | ' | ||
Assets, Fair Value Disclosure | 1,206 | [3] | 1,751 | [4] |
Significant Unobservable Inputs (Level 3) | ' | ' | ||
Assets: | ' | ' | ||
Assets, Fair Value Disclosure | 0 | 0 | ||
Significant Unobservable Inputs (Level 3) | Money market funds | ' | ' | ||
Assets: | ' | ' | ||
Assets, Fair Value Disclosure | 0 | [1] | 0 | [2] |
Significant Unobservable Inputs (Level 3) | U.S. government and agency obligations | ' | ' | ||
Assets: | ' | ' | ||
Assets, Fair Value Disclosure | 0 | [3] | 0 | [4] |
Significant Unobservable Inputs (Level 3) | Corporate notes and obligations | ' | ' | ||
Assets: | ' | ' | ||
Assets, Fair Value Disclosure | $0 | [3] | $0 | [4] |
[1] | Included in cash and cash equivalents on the condensed consolidated balance sheet. | |||
[2] | Included in cash and cash equivalents on the consolidated balance sheet. | |||
[3] | Included in short-term investments on the condensed consolidated balance sheet | |||
[4] | Included in short-term investments on the consolidated balance sheet. |
Convertible_Notes_Details
Convertible Notes (Details) (USD $) | 6 Months Ended | 3 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | |
Convertible Notes Payable [Member] | ||||
Convertible Notes | ' | ' | ' | ' |
Aggregate principal amount of debt outstanding | $0 | ' | $14,197,000 | ' |
Conversion of convertible debt to equity | 14,197,000 | 0 | ' | 14,200,000 |
Debt Conversion, Converted Instrument, Shares Issued | ' | ' | ' | 1,840,770 |
Accrued interest paid upon debt conversion | ' | ' | ' | 300,000 |
Reclassification of unamortized debt issuance cost to additional paid-in capital as a result of debt conversion | $253,000 | $0 | ' | $300,000 |
Convertible Senior Notes due 2016, interest rate (as a percent) | ' | ' | ' | 4.75% |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | 6 Months Ended | |
Jun. 30, 2014 | Dec. 31, 2013 | |
Contractual cash obligations | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity | $10,000,000 | ' |
Proceeds from line of credit | 2,982,000 | ' |
Long-term Line of Credit, Noncurrent | 2,982,000 | 0 |
Minimum | ' | ' |
Contractual cash obligations | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity | 5,000,000 | ' |
Maximum | ' | ' |
Contractual cash obligations | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity | $10,000,000 | ' |
Net_Loss_Per_Share_Details
Net Loss Per Share (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Antidilutive securities excluded from computation of earnings per share | ' | ' | ' | ' |
Anti-dilutive securities excluded from computation of diluted net loss per share (in shares) | 3,169 | 12,356 | 5,825 | 12,572 |
Restricted Stock Units | ' | ' | ' | ' |
Antidilutive securities excluded from computation of earnings per share | ' | ' | ' | ' |
Anti-dilutive securities excluded from computation of diluted net loss per share (in shares) | 1,395 | 2,008 | 2,245 | 2,122 |
Stock Options | ' | ' | ' | ' |
Antidilutive securities excluded from computation of earnings per share | ' | ' | ' | ' |
Anti-dilutive securities excluded from computation of diluted net loss per share (in shares) | 236 | 2,513 | 1,841 | 2,655 |
Weighted average exercise price (in dollars per share) | 7.96 | 4.04 | 5.34 | 4.02 |
ESPP Shares | ' | ' | ' | ' |
Antidilutive securities excluded from computation of earnings per share | ' | ' | ' | ' |
Anti-dilutive securities excluded from computation of diluted net loss per share (in shares) | 31 | 155 | 65 | 115 |
Convertible Notes | ' | ' | ' | ' |
Antidilutive securities excluded from computation of earnings per share | ' | ' | ' | ' |
Anti-dilutive securities excluded from computation of diluted net loss per share (in shares) | 1,507 | 7,680 | 1,674 | 7,680 |
Net_Loss_Per_Share_Net_Income_
Net Loss Per Share Net Income (Loss) Per Share (Calculation of basic and diluted net income (loss) per share) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Earnings Per Share, Diluted | ' | ' | ' | ' |
Net loss | $250 | ($6,415) | ($2,217) | ($13,018) |
Weighted Average Number of Shares Outstanding, Basic | 46,648 | 37,813 | 46,298 | 37,478 |
Weighted Average Number Diluted Shares Outstanding Adjustment | 48,061 | 37,813 | 46,298 | 37,478 |
Earnings Per Share, Basic | $0 | ($0.17) | ($0.05) | ($0.35) |
Earnings Per Share, Diluted | $0 | ($0.17) | ($0.05) | ($0.35) |
Restricted Stock Units | ' | ' | ' | ' |
Earnings Per Share, Diluted | ' | ' | ' | ' |
Weighted Average Number Diluted Shares Outstanding Adjustment | 689 | 0 | 0 | 0 |
Stock Options | ' | ' | ' | ' |
Earnings Per Share, Diluted | ' | ' | ' | ' |
Weighted Average Number Diluted Shares Outstanding Adjustment | 690 | 0 | 0 | 0 |
ESPP Shares | ' | ' | ' | ' |
Earnings Per Share, Diluted | ' | ' | ' | ' |
Weighted Average Number Diluted Shares Outstanding Adjustment | 34 | 0 | 0 | 0 |
Convertible Notes | ' | ' | ' | ' |
Earnings Per Share, Diluted | ' | ' | ' | ' |
Weighted Average Number Diluted Shares Outstanding Adjustment | 0 | 0 | 0 | 0 |
Stockbased_Compensation_Detail
Stock-based Compensation (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Stock-based compensation | ' | ' | ' | ' |
Stock-based compensation expense | $2,632,000 | $3,210,000 | $4,924,000 | $5,801,000 |
Stock Options | ' | ' | ' | ' |
Stock-based compensation | ' | ' | ' | ' |
Stock-based compensation expense | 210,000 | 382,000 | 413,000 | 461,000 |
Unrecognized compensation expense, stock options | 2,200,000 | ' | 2,200,000 | ' |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | ' | ' | '2 years 11 months 8 days | ' |
Performance Awards | ' | ' | ' | ' |
Stock-based compensation | ' | ' | ' | ' |
Stock-based compensation expense | 435,000 | 394,000 | 827,000 | 521,000 |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Share-based Awards Other than Options | 3,900,000 | ' | 3,900,000 | ' |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | ' | ' | '2 years 3 months 14 days | ' |
Service-based Awards | ' | ' | ' | ' |
Stock-based compensation | ' | ' | ' | ' |
Stock-based compensation expense | 1,798,000 | 2,294,000 | 3,290,000 | 4,513,000 |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Share-based Awards Other than Options | 11,900,000 | ' | 11,900,000 | ' |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | ' | ' | '1 year 10 months 2 days | ' |
ESPP Shares | ' | ' | ' | ' |
Stock-based compensation | ' | ' | ' | ' |
Stock-based compensation expense | 189,000 | 140,000 | 394,000 | 306,000 |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Share-based Awards Other than Options | $200,000 | ' | $200,000 | ' |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | ' | ' | '6 months | ' |
Stockbased_Compensation_Detail1
Stock-based Compensation (Details 2) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Classification of stock-based compensation expense | ' | ' | ' | ' |
Stock-based compensation expense | $2,632,000 | $3,210,000 | $4,924,000 | $5,801,000 |
Cost of recurring revenues | ' | ' | ' | ' |
Classification of stock-based compensation expense | ' | ' | ' | ' |
Stock-based compensation expense | 192,000 | 204,000 | 374,000 | 378,000 |
Cost of services and other revenues | ' | ' | ' | ' |
Classification of stock-based compensation expense | ' | ' | ' | ' |
Stock-based compensation expense | 256,000 | 236,000 | 470,000 | 642,000 |
Sales and marketing | ' | ' | ' | ' |
Classification of stock-based compensation expense | ' | ' | ' | ' |
Stock-based compensation expense | 810,000 | 582,000 | 1,402,000 | 1,155,000 |
Research and development | ' | ' | ' | ' |
Classification of stock-based compensation expense | ' | ' | ' | ' |
Stock-based compensation expense | 474,000 | 467,000 | 912,000 | 933,000 |
General and administrative | ' | ' | ' | ' |
Classification of stock-based compensation expense | ' | ' | ' | ' |
Stock-based compensation expense | 900,000 | 1,721,000 | 1,766,000 | 2,693,000 |
Performance Awards | ' | ' | ' | ' |
Classification of stock-based compensation expense | ' | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Share-based Awards Other than Options | 3,900,000 | ' | 3,900,000 | ' |
Stock-based compensation expense | $435,000 | $394,000 | $827,000 | $521,000 |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | ' | ' | '2 years 3 months 14 days | ' |
Stockbased_Compensation_Detail2
Stock-based Compensation (Details 3) | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2014 | Jun. 30, 2013 | Jun. 30, 2013 | |
ESPP Shares | ESPP Shares | ESPP Shares | ESPP Shares | ESPP Shares | ESPP Shares | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | |
Minimum | Minimum | Maximum | Maximum | Minimum | Minimum | Maximum | Maximum | Maximum | |||||
Fair value assumptions using the Black-Scholes-Merton valuation model | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected life (in years) | ' | ' | '5 months 26 days | '6 months | '1 year | '1 year | ' | ' | '5 years | '5 years | ' | '6 years | '6 years |
Risk-free interest rate, minimum (as a percent) | ' | ' | 0.08% | 0.13% | ' | ' | ' | ' | 1.41% | 1.41% | ' | ' | ' |
Risk-free interest rate, maximum (as a percent) | ' | ' | ' | ' | 0.12% | 0.17% | ' | ' | ' | ' | ' | 1.69% | 1.69% |
Volatility, minimum (as a percent) | ' | ' | 47.00% | 52.00% | ' | ' | ' | ' | 61.00% | 61.00% | ' | ' | ' |
Volatility, maximum (as a percent) | ' | ' | ' | ' | 50.00% | 62.00% | ' | ' | ' | ' | 0.00% | 63.00% | 63.00% |
Dividend Yield (as a percent) | 0.00% | 0.00% | ' | ' | ' | ' | 0.00% | 0.00% | ' | ' | ' | ' | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
Provision for income taxes | $530 | $1,119 | $680 | $1,243 |
Segment_Geographic_and_Custome2
Segment, Geographic and Customer Information (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
customer | customer | customer | customer | |
segment | ||||
Segment Reporting [Abstract] | ' | ' | ' | ' |
Number of operating segments | ' | ' | 1 | ' |
Revenues by geographic area | ' | ' | ' | ' |
Revenues | $32,515 | $25,930 | $63,492 | $51,472 |
Number of customers accounted for more than 10% of total revenues | 0 | 0 | 0 | 0 |
United States | ' | ' | ' | ' |
Revenues by geographic area | ' | ' | ' | ' |
Revenues | 25,178 | 20,489 | 50,493 | 40,564 |
EMEA | ' | ' | ' | ' |
Revenues by geographic area | ' | ' | ' | ' |
Revenues | 3,785 | 2,984 | 6,747 | 6,177 |
Asia Pacific | ' | ' | ' | ' |
Revenues by geographic area | ' | ' | ' | ' |
Revenues | 1,916 | 1,451 | 3,242 | 2,510 |
Other | ' | ' | ' | ' |
Revenues by geographic area | ' | ' | ' | ' |
Revenues | $1,636 | $1,006 | $3,010 | $2,221 |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 1 Months Ended | 3 Months Ended | 6 Months Ended |
Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | |
Webcom | ' | ' | ' |
Related party transactions | ' | ' | ' |
Product modeling and maintenance of certain equipment | ' | $25,000 | $76,000 |
Subscription Arrangement [Member] | Lithium [Member] | ' | ' | ' |
Related party transactions | ' | ' | ' |
Amount under related party transaction agreement | ' | 120,000 | ' |
Hosting Agreement [Member] | Lithium [Member] | ' | ' | ' |
Related party transactions | ' | ' | ' |
Related party transaction amount | 113,000 | ' | ' |
Revenue recongnized in related party transaction | ' | 25,000 | 51,000 |
Service Agreements [Member] | Lithium [Member] | ' | ' | ' |
Related party transactions | ' | ' | ' |
Related party transaction amount | ' | ' | 173,550 |
Revenue recongnized in related party transaction | ' | $3,000 | $40,000 |