Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Oct. 31, 2014 | |
Document Information [Line Items] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'RNWK | ' |
Entity Registrant Name | 'REALNETWORKS INC | ' |
Entity Central Index Key | '0001046327 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 36,034,025 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $114,073 | $151,235 |
Short-term investments | 63,948 | 74,920 |
Trade accounts receivable, net of allowances | 17,679 | 24,613 |
Deferred costs, current portion | 1,023 | 1,601 |
Deferred tax assets, net, current portion | 296 | 306 |
Prepaid expenses and other current assets | 8,382 | 9,124 |
Total current assets | 205,401 | 261,799 |
Equipment, software, and leasehold improvements, at cost: | ' | ' |
Equipment and software | 83,230 | 86,721 |
Leasehold improvements | 3,616 | 3,482 |
Total equipment, software, and leasehold improvements, at cost | 86,846 | 90,203 |
Less accumulated depreciation and amortization | 68,392 | 67,031 |
Net equipment, software, and leasehold improvements | 18,454 | 23,172 |
Restricted cash equivalents and investments | 3,000 | 3,000 |
Equity method investment | 10,000 | 12,473 |
Available for sale securities | 2,848 | 7,181 |
Other assets | 2,925 | 2,332 |
Deferred costs, non-current portion | 913 | 946 |
Deferred tax assets, net, non-current portion | 1,424 | 1,409 |
Other intangible assets, net | 10,954 | 12,993 |
Goodwill | 17,615 | 17,476 |
Total assets | 273,534 | 342,781 |
Current liabilities: | ' | ' |
Accounts payable | 18,155 | 19,987 |
Accrued and other current liabilities | 25,885 | 41,893 |
Deferred tax liabilities, net, current portion | 768 | 899 |
Deferred revenue, current portion | 6,908 | 7,498 |
Total current liabilities | 51,716 | 70,277 |
Deferred revenue, non-current portion | 143 | 166 |
Deferred rent | 1,293 | 1,318 |
Deferred tax liabilities, net, non-current portion | 1,805 | 1,556 |
Other long-term liabilities | 563 | 483 |
Total liabilities | 55,520 | 73,800 |
Commitments and contingencies | ' | ' |
Preferred stock, $0.001 par value, no shares issued and outstanding: | ' | ' |
Common stock, $0.001 par value authorized 250,000 shares; issued and outstanding 36,034 shares in 2014 and 35,833 shares in 2013 | 36 | 36 |
Additional paid-in capital | 616,260 | 610,167 |
Accumulated other comprehensive loss | -53,778 | -47,695 |
Retained deficit | -344,504 | -293,527 |
Total shareholders’ equity | 218,014 | 268,981 |
Total liabilities and shareholders’ equity | 273,534 | 342,781 |
Preferred stock, Series A | ' | ' |
Preferred stock, $0.001 par value, no shares issued and outstanding: | ' | ' |
Preferred stock | 0 | 0 |
Preferred stock, Undesignated series | ' | ' |
Preferred stock, $0.001 par value, no shares issued and outstanding: | ' | ' |
Preferred stock | $0 | $0 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Per Share data, unless otherwise specified | ||
Preferred stock, par value (USD per share) | $0.00 | $0.00 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (USD per share) | $0.00 | $0.00 |
Common stock, authorized | 250,000 | 250,000 |
Common stock, issued | 36,034 | 35,833 |
Common stock, outstanding | 36,034 | 35,833 |
Preferred stock, Series A | ' | ' |
Preferred stock, authorized | 200 | 200 |
Preferred stock, Undesignated series | ' | ' |
Preferred stock, authorized | 59,800 | 59,800 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Net revenue (A) | $34,157 | [1] | $48,958 | [1] | $120,706 | [1] | $155,601 | [1] |
Cost of revenue (B) | 18,928 | [2] | 18,990 | [2] | 58,500 | [2] | 59,015 | [2] |
Extinguishment of liability (See Note 10) | 0 | 0 | -10,580 | 0 | ||||
Gross profit | 15,229 | 29,968 | 72,786 | 96,586 | ||||
Operating expenses: | ' | ' | ' | ' | ||||
Research and development | 12,784 | 15,707 | 40,110 | 45,951 | ||||
Sales and marketing | 13,283 | 19,427 | 51,022 | 59,830 | ||||
General and administrative | 7,723 | 9,869 | 25,617 | 28,506 | ||||
Restructuring and other charges | 2,048 | 1,877 | 3,805 | 4,075 | ||||
Lease exit and related charges | 154 | 0 | 703 | 3,066 | ||||
Gain (Loss) Related to Litigation Settlement | 0 | 11,525 | 0 | 11,525 | ||||
Total operating expenses | 35,992 | 58,405 | 121,257 | 152,953 | ||||
Operating income (loss) | -20,763 | -28,437 | -48,471 | -56,367 | ||||
Other income (expenses): | ' | ' | ' | ' | ||||
Interest income, net | 80 | 166 | 396 | 992 | ||||
Gain (loss) on sale of available for sale securities, net | 0 | 0 | 2,371 | 0 | ||||
Equity in net loss of Rhapsody investment | -1,530 | -2,629 | -4,170 | -6,209 | ||||
Other income (expense), net | 325 | -118 | 153 | -146 | ||||
Total other income (expenses), net | -1,125 | -2,581 | -1,250 | -5,363 | ||||
Income (loss) before income taxes | -21,888 | -31,018 | -49,721 | -61,730 | ||||
Income tax expense (benefit) | 290 | 357 | 1,256 | -210 | ||||
Net income (loss) | -22,178 | -31,375 | -50,977 | -61,520 | ||||
Basic net income (loss) per share (USD per share) | ($0.62) | ($0.88) | ($1.42) | ($1.73) | ||||
Diluted net income (loss) per share (USD per share) | ($0.62) | ($0.88) | ($1.42) | ($1.73) | ||||
Shares used to compute basic net income (loss) per share (shares) | 36,003 | 35,670 | 35,912 | 35,490 | ||||
Shares used to compute diluted net income (loss) per share (shares) | 36,003 | 35,670 | 35,912 | 35,490 | ||||
Comprehensive income (loss): | ' | ' | ' | ' | ||||
Unrealized investment holding gains (losses), net of reclassification adjustments | -323 | -1,043 | -3,936 | -28 | ||||
Foreign currency translation adjustments, net of reclassification adjustments | -2,338 | 1,235 | -2,147 | -391 | ||||
Total other comprehensive income (loss) | -2,661 | 192 | -6,083 | -419 | ||||
Net income (loss) | -22,178 | -31,375 | -50,977 | -61,520 | ||||
Comprehensive income (loss) | ($24,839) | ($31,183) | ($57,060) | ($61,939) | ||||
[1] | Quarters ended September 30, 2014 quarter ended September 30, 2014Components of Revenue License Fees5,925 10,503Service Revenue28,232 38,455Net Revenue34,157 48,958 9 months ended 9 months ended September 30, 2014 September 30, 2013Components of Revenue License Fees$21,168 $33,494Service Revenue99,538 122,107Net Revenue$120,706 $155,601 | |||||||
[2] | Components of Cost of RevenueSeptember 30, 2014 September 30, 2013 License Fees2,044 2,062 Service Revenue16,884 16,928 Net Revenue Costs18,928 18,990 9 months ended 6 months ended September 30, 2014 September 30, 2013Components of Cost of Revenue License Fees$6,426 $6,377Service Revenue52,074 52,638Net Revenue Costs$58,500 $59,015 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Components of net revenue: | ' | ' | ' | ' | ||||
License fees | $5,925 | $10,503 | $21,168 | $33,494 | ||||
Service revenue | 28,232 | 38,455 | 99,538 | 122,107 | ||||
Net revenue | 34,157 | [1] | 48,958 | [1] | 120,706 | [1] | 155,601 | [1] |
Components of cost of revenue: | ' | ' | ' | ' | ||||
License fees | 2,044 | 2,062 | 6,426 | 6,377 | ||||
Service revenue | 16,884 | 16,928 | 52,074 | 52,638 | ||||
Cost of revenue | $18,928 | [2] | $18,990 | [2] | $58,500 | [2] | $59,015 | [2] |
[1] | Quarters ended September 30, 2014 quarter ended September 30, 2014Components of Revenue License Fees5,925 10,503Service Revenue28,232 38,455Net Revenue34,157 48,958 9 months ended 9 months ended September 30, 2014 September 30, 2013Components of Revenue License Fees$21,168 $33,494Service Revenue99,538 122,107Net Revenue$120,706 $155,601 | |||||||
[2] | Components of Cost of RevenueSeptember 30, 2014 September 30, 2013 License Fees2,044 2,062 Service Revenue16,884 16,928 Net Revenue Costs18,928 18,990 9 months ended 6 months ended September 30, 2014 September 30, 2013Components of Cost of Revenue License Fees$6,426 $6,377Service Revenue52,074 52,638Net Revenue Costs$58,500 $59,015 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Cash flows from operating activities: | ' | ' |
Net income (loss) | ($50,977) | ($61,520) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ' | ' |
Depreciation and amortization | 8,876 | 15,045 |
Stock-based compensation | 4,158 | 5,671 |
Equity in net loss of Rhapsody | 4,170 | 6,209 |
Deferred income taxes, net | -64 | -1,238 |
Gain on sale of available for sale securities | -2,371 | 0 |
Realized translation gain | -48 | -35 |
Extinguishment of liability | -10,580 | 0 |
Other | 0 | 51 |
Net change in certain operating assets and liabilities: | ' | ' |
Trade accounts receivable | 6,553 | 6,466 |
Prepaid expenses and other assets | 1,353 | 4,772 |
Accounts payable | -1,606 | 26 |
Accrued and other liabilities | -5,106 | -3,750 |
Net cash provided by (used in) operating activities | -45,642 | -28,303 |
Cash flows from investing activities: | ' | ' |
Purchases of equipment, software, and leasehold improvements | -2,054 | -5,798 |
Proceeds from sale of available for sale securities | 2,754 | 0 |
Purchases of short-term investments | -63,574 | -85,670 |
Proceeds from sales and maturities of short-term investments | 74,546 | 110,359 |
Decrease (increase) in restricted cash equivalents and investments, net | 0 | -5,000 |
Acquisitions of businesses, net of cash acquired | -733 | -22,480 |
Other | -467 | 0 |
Net cash provided by (used in) investing activities | 10,472 | 1,411 |
Cash flows from financing activities: | ' | ' |
Proceeds from issuance of common stock (stock options and stock purchase plan) | 641 | 408 |
Tax payments from shares withheld upon vesting of restricted stock | -403 | -911 |
Payment of contingent consideration | -696 | -828 |
Net cash provided by (used in) financing activities | -458 | -1,331 |
Effect of exchange rate changes on cash and cash equivalents | -1,534 | -96 |
Net increase (decrease) in cash and cash equivalents | -37,162 | -28,319 |
Cash and cash equivalents, beginning of period | 151,235 | 163,198 |
Cash and cash equivalents, end of period | 114,073 | 134,879 |
Supplemental disclosure of cash flow information: | ' | ' |
Cash received from income tax refunds | 292 | 8,354 |
Cash paid for income taxes | 1,457 | 2,988 |
Non-cash investing activities: | ' | ' |
Increase (decrease) in accrued purchases of equipment, software, and leasehold improvements | ($371) | $1,096 |
Description_of_Business_and_Su
Description of Business and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Description of Business and Summary of Significant Accounting Policies | ' |
Description of Business and Summary of Significant Accounting Policies | |
Description of Business. RealNetworks, Inc. and subsidiaries is a leading global provider of network-delivered digital media applications and services that make it easy to manage, play and share digital media. The Company also develops and markets software products and services that enable the creation, distribution and consumption of digital media, including audio and video. | |
Inherent in our business are various risks and uncertainties, including a limited history of certain of our product and service offerings. RealNetworks' success will depend on the acceptance of our technology, products and services and the ability to generate related revenue. | |
In this Quarterly Report on Form 10-Q (10-Q or Report), RealNetworks, Inc. and Subsidiaries is referred to as “RealNetworks”, the “Company”, “we”, “us”, or “our”. “RealPlayer”, “LISTEN” and other trademarks of ours appearing in this report are our property. | |
Basis of Presentation. The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. Intercompany balances and transactions have been eliminated in consolidation. | |
The unaudited condensed consolidated financial statements reflect all adjustments, consisting only of normal, recurring adjustments that, in the opinion of the Company’s management, are necessary for a fair presentation of the results of operations for the periods presented. Operating results for the quarter and nine months ended September 30, 2014 are not necessarily indicative of the results that may be expected for any subsequent period or for the year ending December 31, 2014. Certain information and disclosures normally included in financial statements prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). | |
These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2013 (the 10-K). | |
Use of Estimates. The preparation of financial statements in conformity with GAAP 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 financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. In addition, current economic conditions may require the use of additional estimates, and certain estimates we make are subject to a greater degree of uncertainty as a result of the current economic conditions. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2014 | |
Accounting Changes and Error Corrections [Abstract] | ' |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
In August 2014, the Financial Accounting Standards Board (FASB) issued a new standard, "Disclosure of Uncertainties About an Entity's Ability to Continue as a Going Concern". This standard provides guidance around management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosures. The new guidance is effective for all annual and interim periods ending after December 15, 2016. We do not expect the adoption of this standard to have a material effect on our consolidated financial statements. | |
In May 2014, the FASB issued new revenue recognition guidance. The guidance will require an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The new guidance will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new guidance is effective for us on January 1, 2017. Early application is not permitted. The guidance permits the use of either the retrospective or cumulative effect transition method. We are evaluating the effect that the guidance will have on our consolidated financial statements and related disclosures. We have not yet selected a transition method nor determined the effect of the standard on our ongoing financial reporting. | |
In April 2014, the FASB issued new guidance related to discontinued operations. The guidance changes the criteria for reporting discontinued operations and modifies the related disclosure requirements. Under the new guidance, a discontinued operation is defined as a disposal of a component or group of components that represents a strategic shift that has, or will have, a major effect on an entity's operations and financial results. The new guidance is effective for us on January 1, 2016. We are evaluating the impact that this guidance may have on our consolidated financial statements and related disclosures. | |
There have been no other recent accounting pronouncements or changes in accounting pronouncements to be implemented that are of significance or potential significance to RealNetworks. |
Acquisitions_Acquisitions
Acquisitions Acquisitions | 9 Months Ended |
Sep. 30, 2014 | |
Business Combinations [Abstract] | ' |
Acquisitions | ' |
Acquisitions | |
In the quarter ended June 30, 2013, we acquired 100% of the voting interests in Slingo, Inc., a social casino games company based in the U.S., for total cash consideration of $15.6 million. The tangible and intangible assets and liabilities recognized are reported within the Games segment. The identifiable intangible assets associated with the acquisition totaled $8.0 million. Of this total, $4.5 million was related to tradenames and trademarks determined to have indefinite useful lives and will be evaluated annually in our fourth quarter for impairment, or more frequently, if circumstances indicate an impairment may exist. The remaining $3.5 million includes developed game technology and existing customer relationships with finite lives, and is being amortized over their useful lives. We recorded a net deferred tax liability of $2.7 million related to the intangible assets acquired. Goodwill totaling $9.9 million was recorded, representing the excess of purchase consideration over the fair value of net acquired assets, and was primarily related to the assembled workforce and expected synergies in the rapidly growing social casino games market. The goodwill is not deductible for income tax purposes. We expect this acquisition to enhance our footprint in the social casino games arena. | |
In the quarter ended September 30, 2013, we acquired 100% of the voting interests in Muzicall Limited, a ringback tone company based in London, for total cash consideration of $6.7 million. The tangible and intangible assets and liabilities recognized are reported in the Mobile Entertainment segment. The identifiable intangible assets associated with the acquisition totaled $5.4 million, and include tradenames and trademarks, developed technology, user base and carrier relationships. All identifiable intangible assets from this acquisition have finite lives, and are being amortized over their useful lives. We recorded a net deferred tax asset of $3.4 million related to the assets acquired, and a full valuation allowance. Goodwill totaling $1.3 million was recorded, representing the excess of purchase consideration over the fair value of net acquired assets acquired, and was primarily related to the assembled workforce and expected synergies in the ringback tone industry. The goodwill is not deductible for income tax purposes. This acquisition is intended to accelerate our growth initiatives within the Mobile Entertainment segment. |
StockBased_Compensation
Stock-Based Compensation | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
Stock-Based Compensation | ' | |||||||||||||||
Stock-Based Compensation | ||||||||||||||||
Total stock-based compensation expense recognized in our consolidated statements of operations includes amounts related to stock options, restricted stock units, and employee stock purchase plans and was as follows (in thousands): | ||||||||||||||||
Quarters Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Total stock-based compensation expense | $ | 1,148 | $ | 1,613 | $ | 4,158 | $ | 5,671 | ||||||||
The fair value of options granted determined using the Black-Scholes model used the following weighted-average assumptions: | ||||||||||||||||
Quarters Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Expected dividend yield | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Risk-free interest rate | 1.3 | % | 0.96 | % | 1.2 | % | 0.82 | % | ||||||||
Expected life (years) | 4.5 | 3.8 | 3.9 | 4 | ||||||||||||
Volatility | 42 | % | 48 | % | 40 | % | 48 | % | ||||||||
The total stock-based compensation amounts for 2014 and 2013 disclosed above are recorded in their respective line items within operating expenses in the consolidated statement of operations. As of September 30, 2014, we had $12.1 million of total unrecognized compensation cost, net of estimated forfeitures, related to stock awards. The unrecognized compensation cost is expected to be recognized over a weighted-average period of approximately 3 years. |
Rhapsody_Joint_Venture
Rhapsody Joint Venture | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | ' | |||||||||||||||
Rhapsody Joint Venture | ' | |||||||||||||||
Rhapsody Joint Venture | ||||||||||||||||
As of September 30, 2014 we owned approximately 45% of the issued and outstanding stock of Rhapsody and account for our investment using the equity method of accounting. | ||||||||||||||||
Rhapsody was initially formed in 2007 as a joint venture between RealNetworks and MTV Networks, a division of Viacom International Inc. (MTVN), to own and operate a business-to-consumer digital audio music service known as Rhapsody. Prior to March 31, 2010, we held a 51% interest in Rhapsody and MTVN owned the remaining 49%. On March 31, 2010, restructuring transactions involving Rhapsody were completed, and as a result, effective March 31, 2010 RealNetworks owned approximately 47% of Rhapsody. Subsequent to the restructuring transaction, we have accounted for our investment in Rhapsody using the equity method of accounting. | ||||||||||||||||
As part of the 2010 restructuring transactions, RealNetworks contributed $18.0 million in cash, the Rhapsody brand and certain other assets, including content licenses, in exchange for shares of convertible preferred stock of Rhapsody, carrying a $10.0 million preference upon certain liquidation events. | ||||||||||||||||
Subsequent to the 2010 restructuring transactions, RealNetworks provided certain operational transition services to Rhapsody. These transition services were completed in 2013, and RealNetworks has no further obligations or liabilities pursuant to the support services agreement. | ||||||||||||||||
We recorded our share of losses of Rhapsody of $1.5 million and $4.2 million for the quarter and nine months ended September 30, 2014, respectively. Because of the $10.0 million liquidation preference on the preferred stock we hold in Rhapsody, under the equity method of accounting we do not record any share of Rhapsody losses that would reduce our carrying value of Rhapsody, which is impacted by Rhapsody equity transactions, below $10.0 million, unless Rhapsody's book value is reduced below $10.0 million. The carrying value of our Rhapsody investment was $12.5 million as of December 31, 2013 and as of September 30, 2014 was $10.0 million. | ||||||||||||||||
Our share of the losses of Rhapsody for the quarter and nine months ended September 30, 2013 were $2.6 million and $6.2 million, respectively. | ||||||||||||||||
Summarized financial information for Rhapsody, which represents 100% of their financial information (in thousands): | ||||||||||||||||
Quarters Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Net revenue | $ | 44,148 | $ | 35,190 | $ | 128,578 | $ | 103,831 | ||||||||
Gross profit | 7,739 | 7,800 | 24,730 | 24,412 | ||||||||||||
Net loss | (7,965 | ) | (5,621 | ) | (14,312 | ) | (14,812 | ) |
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||
Fair Value Measurements | ' | |||||||||||||||||||
Fair Value Measurements | ||||||||||||||||||||
Items Measured at Fair Value on a Recurring Basis | ||||||||||||||||||||
The following table presents information about our financial assets that have been measured at fair value on a recurring basis as of September 30, 2014 and December 31, 2013, and indicates the fair value hierarchy of the valuation inputs utilized to determine such fair value (in thousands). | ||||||||||||||||||||
Fair Value Measurements as of | Amortized Cost as of | |||||||||||||||||||
September 30, 2014 | 30-Sep-14 | |||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||||||
Cash | $ | 28,213 | $ | — | $ | — | $ | 28,213 | $ | 28,213 | ||||||||||
Money market funds | — | 5,092 | — | 5,092 | 5,092 | |||||||||||||||
Corporate notes and bonds | — | 80,768 | — | 80,768 | 80,768 | |||||||||||||||
Total cash and cash equivalents | 28,213 | 85,860 | — | 114,073 | 114,073 | |||||||||||||||
Short-term investments: | ||||||||||||||||||||
Corporate notes and bonds | — | 53,246 | — | 53,246 | 53,195 | |||||||||||||||
U.S. government agency securities | 10,702 | — | — | 10,702 | 10,701 | |||||||||||||||
Total short-term investments | 10,702 | 53,246 | — | 63,948 | 63,896 | |||||||||||||||
Restricted cash equivalents and investments | — | 3,000 | — | 3,000 | 3,000 | |||||||||||||||
Equity investment in publicly traded securities | 2,848 | — | — | 2,848 | 428 | |||||||||||||||
Total | $ | 41,763 | $ | 142,106 | $ | — | $ | 183,869 | $ | 181,397 | ||||||||||
Fair Value Measurements as of | Amortized Cost as of | |||||||||||||||||||
December 31, 2013 | 31-Dec-13 | |||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||||||
Cash | $ | 46,978 | $ | — | $ | — | $ | 46,978 | $ | 46,978 | ||||||||||
Money market funds | 1 | 26,913 | — | 26,914 | 26,914 | |||||||||||||||
Corporate notes and bonds | — | 77,043 | — | 77,043 | 77,044 | |||||||||||||||
U.S. government agency securities | — | 300 | — | 300 | 300 | |||||||||||||||
Total cash and cash equivalents | 46,979 | 104,256 | — | 151,235 | 151,236 | |||||||||||||||
Short-term investments: | ||||||||||||||||||||
Corporate notes and bonds | — | 59,766 | — | 59,766 | 59,713 | |||||||||||||||
U.S. government agency securities | 14,077 | 1,077 | — | 15,154 | 15,159 | |||||||||||||||
Total short-term investments | 14,077 | 60,843 | — | 74,920 | 74,872 | |||||||||||||||
Restricted cash equivalents and investments | — | 3,000 | — | 3,000 | 3,000 | |||||||||||||||
Equity investment in publicly traded securities | 7,181 | — | — | 7,181 | 842 | |||||||||||||||
Total | $ | 68,237 | $ | 168,099 | $ | — | $ | 236,336 | $ | 229,950 | ||||||||||
Restricted cash equivalents and investments amounts as of September 30, 2014, and December 31, 2013 relate to cash pledged as collateral against a letter of credit in connection with a lease agreement. | ||||||||||||||||||||
Realized gains or losses on sales of short-term investment securities for the quarters and nine months ended September 30, 2014 and 2013 were not significant. Gross unrealized gains and gross unrealized losses on short-term investment securities as of September 30, 2014 and December 31, 2013 were not significant. | ||||||||||||||||||||
Investments with remaining contractual maturities of five years or less are classified as short-term because the investments are marketable and highly liquid, and we have the ability to utilize them for current operations. Contractual maturities of short-term investments as of September 30, 2014 (in thousands): | ||||||||||||||||||||
Estimated | ||||||||||||||||||||
Fair Value | ||||||||||||||||||||
Within one year | $ | 47,671 | ||||||||||||||||||
Between one year and five years | 16,277 | |||||||||||||||||||
Total short-term investments | $ | 63,948 | ||||||||||||||||||
Our equity investment in a publicly traded company as of September 30, 2014 and December 31, 2013 consisted of J-Stream Inc., a Japanese media services company. This equity investment is accounted for as available for sale. In March 2014 we sold a portion of the J-Stream shares we held, resulting in cash proceeds of $2.8 million and a pre-tax gain of $2.4 million. | ||||||||||||||||||||
Items Measured at Fair Value on a Non-recurring Basis | ||||||||||||||||||||
Certain of our assets and liabilities are measured at estimated fair value on a non-recurring basis, using Level 3 inputs. These instruments are subject to fair value adjustments only in certain circumstances (for example, when there is evidence of impairment). During the nine months ended September 30, 2014 and 2013, we did not record any impairments on those assets required to be measured at fair value on a non-recurring basis. |
Allowance_for_Doubtful_Account
Allowance for Doubtful Accounts Receivable and Sales Returns | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Receivables [Abstract] | ' | |||||||
Allowance for Doubtful Accounts Receivable and Sales Returns | ' | |||||||
Allowance for Doubtful Accounts Receivable and Sales Returns | ||||||||
Activity in the allowance for doubtful accounts receivable and sales returns (in thousands): | ||||||||
Allowance For | ||||||||
Doubtful | Sales | |||||||
Accounts | Returns | |||||||
Receivable | ||||||||
Balances, December 31, 2013 | $ | 966 | $ | 569 | ||||
Addition (reduction) to allowance | 403 | (185 | ) | |||||
Amounts written off | — | (5 | ) | |||||
Foreign currency translation | (54 | ) | (1 | ) | ||||
Balances, September 30, 2014 | $ | 1,315 | $ | 378 | ||||
One customer accounted for 17% of trade accounts receivable and one other customer accounted for 14% of trade accounts receivable, as of September 30, 2014. One customer accounted for 17% of trade accounts receivable as of December 31, 2013. | ||||||||
One customer accounted for 24% and 20% of consolidated revenue, or $8.2 million and $24.6 million, during the quarter and nine months ended September 30, 2014, and is reflected in our Mobile Entertainment segment. One customer accounted for approximately 12% and 14% of consolidated revenue, or $6.0 million and $21.1 million, during the quarter and nine months ended September 30, 2013, and is reflected in our RealPlayer Group and Games segments. One additional customer accounted for approximately 14%, or $6.8 million, and 11% or $17.3 million, of consolidated revenue during the quarter and nine months ended September 30, 2013, respectively, and is reflected in our Mobile Entertainment segment. |
Other_Intangible_Assets
Other Intangible Assets | 9 Months Ended | |||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||||||||
Other Intangible Assets | ' | |||||||||||||||||||||||||
Other Intangible Assets | ||||||||||||||||||||||||||
Other intangible assets (in thousands): | ||||||||||||||||||||||||||
30-Sep-14 | 31-Dec-13 | |||||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||||||||||
Amount | Amortization | Amount | Amortization | |||||||||||||||||||||||
Amortizing intangible assets: | ||||||||||||||||||||||||||
Customer relationships | $ | 34,876 | $ | 32,372 | $ | 2,504 | $ | 35,156 | $ | 31,262 | $ | 3,894 | ||||||||||||||
Developed technology | 28,871 | 25,922 | 2,949 | 29,097 | 25,039 | 4,058 | ||||||||||||||||||||
Patents, trademarks and tradenames | 3,945 | 3,624 | 321 | 4,021 | 3,627 | 394 | ||||||||||||||||||||
Service contracts | 6,426 | 5,746 | 680 | 5,679 | 5,532 | 147 | ||||||||||||||||||||
74,118 | 67,664 | 6,454 | 73,953 | 65,460 | 8,493 | |||||||||||||||||||||
Non-amortizing intangible assets: | ||||||||||||||||||||||||||
Trademarks and tradenames | 4,500 | — | 4,500 | 4,500 | — | 4,500 | ||||||||||||||||||||
Total | $ | 78,618 | $ | 67,664 | $ | 10,954 | $ | 78,453 | $ | 65,460 | $ | 12,993 | ||||||||||||||
In the second quarter of 2014 a small acquisition of a business related to our RealPlayer Group resulted in an intangible asset of $0.8 million being recorded. | ||||||||||||||||||||||||||
No impairments of other intangible assets were recognized in either of the nine months ended September 30, 2014 or 2013. |
Goodwill
Goodwill | 9 Months Ended | |||
Sep. 30, 2014 | ||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||
Goodwill | ' | |||
Goodwill | ||||
Changes in goodwill (in thousands): | ||||
Balance, December 31, 2013 | $ | 17,476 | ||
Increases due to current year acquisitions | 460 | |||
Effects of foreign currency translation | (321 | ) | ||
Balance, September 30, 2014 | $ | 17,615 | ||
Goodwill by segment (in thousands): | ||||
September 30, | ||||
2014 | ||||
RealPlayer Group | $ | 1,003 | ||
Mobile Entertainment | 2,073 | |||
Games | 14,539 | |||
Total goodwill | $ | 17,615 | ||
In the second quarter of 2014 a small acquisition of a business related to our RealPlayer Group resulted in goodwill of $0.5 million being recorded. | ||||
No impairment of goodwill was recognized in either of the nine months ended September 30, 2014 or 2013. |
Accrued_and_Other_Liabilities
Accrued and Other Liabilities | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Payables and Accruals [Abstract] | ' | |||||||
Accrued and Other Liabilities | ' | |||||||
Accrued and Other Current Liabilities | ||||||||
Accrued and other current liabilities (in thousands): | ||||||||
30-Sep-14 | 31-Dec-13 | |||||||
Royalties and other fulfillment costs | $ | 4,537 | $ | 16,467 | ||||
Employee compensation, commissions and benefits | 8,086 | 10,060 | ||||||
Sales, VAT and other taxes payable | 6,644 | 7,237 | ||||||
Other | 6,618 | 8,129 | ||||||
Total accrued and other current liabilities | $ | 25,885 | $ | 41,893 | ||||
During the quarter ended March 31, 2014, certain accrued royalty liabilities of $10.6 million associated with our historical music business, which had originally been recorded based on statutory rates, were extinguished. |
Restructuring_Charges
Restructuring Charges | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Restructuring and Related Activities [Abstract] | ' | ||||||||
Restructuring Charges | ' | ||||||||
Restructuring Charges | |||||||||
Restructuring and other charges in 2014 and 2013 consist of costs associated with the ongoing reorganization of our business operations and our ongoing expense alignment efforts. The expense amounts in both years relate primarily to severance costs due to workforce reductions. | |||||||||
In the latter half of 2012, we announced the elimination of approximately 160 positions worldwide, which was concluded as of the second quarter of 2013. During 2013 and 2014, we have incurred restructuring charges consisting of costs associated with the reorganization of our business operations and our ongoing expense alignment efforts. These costs are reflected in the table below. | |||||||||
Restructuring charges by type of cost (in thousands): | |||||||||
Employee Separation Costs | Asset Related and Other Costs | Total | |||||||
Costs incurred and charged to expense for the nine months ended September 30, 2014 | $ | 3,805 | — | $ | 3,805 | ||||
Costs incurred and charged to expense for the nine months ended September 30, 2013 | $ | 2,891 | 1,184 | $ | 4,075 | ||||
Changes to the accrued restructuring cost liability (in thousands): | |||||||||
Employee Separation Costs | |||||||||
Accrued liability as of December 31, 2013 | $ | 756 | |||||||
Costs incurred and charged to expense for the nine months ended September 30, 2014 | 3,805 | ||||||||
Cash payments | (3,626 | ) | |||||||
Accrued liability at September 30, 2014 (included in Accrued and other current liabilities) | $ | 935 | |||||||
Lease_Exit_and_Related_Charges
Lease Exit and Related Charges | 9 Months Ended | |||
Sep. 30, 2014 | ||||
Disclosure Changes To Accrued Loss On Excess Office Facilities [Abstract] | ' | |||
Lease Exit and Related Charges | ' | |||
Lease Exit and Related Charges | ||||
As a result of the reduction in use of RealNetworks' office space, losses have been recognized representing rent and contractual operating expenses over the remaining life of the leases. | ||||
Changes to accrued lease exit and related charges (in thousands): | ||||
Accrued loss as of December 31, 2013 | $ | 254 | ||
Additions and adjustments to the lease exit charges accrual, including sublease income estimate revision | 480 | |||
Less amounts paid, net of sublease amounts | (611 | ) | ||
Accrued loss as of September 30, 2014 (included in Accrued and other current liabilities) | $ | 123 | ||
Shareholders_Equity
Shareholders’ Equity | 9 Months Ended | |||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||||
Shareholders’ Equity | ' | |||||||||||||||||
Note 13. | Shareholders’ Equity | |||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||
Changes in components of accumulated other comprehensive income (in thousands): | ||||||||||||||||||
Quarters Ended | Nine Months Ended | |||||||||||||||||
September 30, | September 30, | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
Investments | ||||||||||||||||||
Accumulated other comprehensive income (loss), beginning of period | $ | 2,784 | $ | 27,700 | $ | 6,397 | 26,685 | |||||||||||
Unrealized gains (losses), net of tax effects of $0, $587, $0 and $(129) | (323 | ) | (1,043 | ) | (1,565 | ) | (28 | ) | ||||||||||
Reclassification adjustments for losses (gains) included in other income (expense), net of tax effects of $0, $0, $(4) and $0 | — | — | (2,371 | ) | — | |||||||||||||
Net current period other comprehensive income | (323 | ) | (1,043 | ) | (3,936 | ) | (28 | ) | ||||||||||
Accumulated other comprehensive income (loss) balance, end of period | $ | 2,461 | $ | 26,657 | $ | 2,461 | $ | 26,657 | ||||||||||
Foreign currency translation | ||||||||||||||||||
Accumulated other comprehensive income (loss), beginning of period | $ | (53,901 | ) | $ | (54,851 | ) | $ | (54,092 | ) | $ | (53,225 | ) | ||||||
Translation adjustments | (2,338 | ) | 1,235 | (2,099 | ) | (356 | ) | |||||||||||
Reclassification adjustments for losses (gains) included in other income (expense) | — | — | (48 | ) | (35 | ) | ||||||||||||
Net current period other comprehensive income | (2,338 | ) | 1,235 | (2,147 | ) | (391 | ) | |||||||||||
Accumulated other comprehensive income (loss) balance, end of period | $ | (56,239 | ) | $ | (53,616 | ) | $ | (56,239 | ) | $ | (53,616 | ) | ||||||
Total accumulated other comprehensive income (loss), end of period | $ | (53,778 | ) | $ | (26,959 | ) | $ | (53,778 | ) | $ | (26,959 | ) | ||||||
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
Income Taxes | |
As of September 30, 2014, there have been no material changes to RealNetworks’ uncertain tax positions disclosures as provided in Note 14 of the 2013 10-K. We currently anticipate the expiration of the statute of limitations within the next twelve months that may decrease the Company's total unrecognized tax benefit by an amount up to $0.9 million of which $0.4 million could potentially impact tax expense. | |
We file numerous consolidated and separate income tax returns in the U.S including federal, state and local, as well as foreign jurisdictions. With few exceptions, we are no longer subject to U.S federal income tax examinations for tax years before 2008 or state, local, or foreign income tax examinations for years before 1993. We are currently under audit by various states and foreign jurisdictions for certain tax years subsequent to 1993. We are currently under United States federal audit for the consolidated group (RealNetworks, Inc. and Subsidiaries) for the year ended December 31, 2012. |
Earnings_Per_Share
Earnings Per Share | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Earnings Per Share | ' | |||||||||||||||
Earnings (Loss) Per Share | ||||||||||||||||
Basic net income (loss) per share (EPS) is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted EPS is computed by dividing net income (loss) by the weighted average number of common and dilutive potential common shares outstanding during the period. Basic and diluted EPS (in thousands, except per share amounts): | ||||||||||||||||
Quarters Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Net income (loss) | $ | (22,178 | ) | $ | (31,375 | ) | $ | (50,977 | ) | $ | (61,520 | ) | ||||
Weighted average common shares outstanding used to compute basic EPS | 36,003 | 35,670 | 35,912 | 35,490 | ||||||||||||
Dilutive effect of stock based awards | — | — | — | — | ||||||||||||
Weighted average common shares outstanding used to compute diluted EPS | 36,003 | 35,670 | 35,912 | 35,490 | ||||||||||||
Basic EPS | $ | (0.62 | ) | $ | (0.88 | ) | $ | (1.42 | ) | $ | (1.73 | ) | ||||
Diluted EPS | $ | (0.62 | ) | $ | (0.88 | ) | $ | (1.42 | ) | $ | (1.73 | ) | ||||
During the quarter and nine months ended September 30, 2014, 6.3 million and 6.2 million shares of common stock, respectively, of potentially issuable shares from stock awards were excluded from the calculation of diluted EPS because of their antidilutive effect. | ||||||||||||||||
During the quarter and nine months ended September 30, 2013, 4.6 million and 4.4 million shares of common stock, respectively, of potentially issuable shares from stock awards were excluded from the calculation of diluted EPS because of their antidilutive effect. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
Commitments and Contingencies | |
We may become subject to legal proceedings, governmental investigations and claims in the ordinary course of business, including employment claims, contract-related claims, and claims of alleged infringement of third-party patents, trademarks and other intellectual property rights. Such claims, even if not meritorious, could force us to expend significant financial and managerial resources. In addition, given the broad distribution of some of our consumer products, any individual claim related to those products could give rise to liabilities that may be material to us. In the event of a determination adverse to us, we may incur substantial monetary liability, and/or be required to change our business practices. Either of these could have a material adverse effect on our consolidated financial statements. |
Guarantees
Guarantees | 9 Months Ended |
Sep. 30, 2014 | |
Guarantees [Abstract] | ' |
Guarantees | ' |
Guarantees | |
In the ordinary course of business, RealNetworks is subject to potential obligations for standard warranty and indemnification provisions that are contained within many of our customer license and service agreements. Our warranty provisions are consistent with those prevalent in our industry, and we do not have a history of incurring losses on warranties; therefore, we do not maintain accruals for warranty-related obligations. With regard to indemnification provisions, nearly all of our carrier contracts obligate us to indemnify our carrier customers for certain liabilities that may be incurred by them. We have received in the past, and may receive in the future, claims for indemnification from carrier customers. | |
In relation to the patents and other technology assets we sold to Intel in the second quarter of 2012, we have specific obligations to indemnify Intel for breaches of the representations and warranties that we made and covenants that we agreed to in the asset purchase agreement for certain potential future intellectual property infringement claims brought by third parties against Intel. The amount of any potential liabilities related to our indemnification obligations to Intel will not be determined until a claim has been made, but we are obligated to indemnify Intel up to the amount of the gross purchase price that we received in the sale. |
Segment_Information
Segment Information | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Segment Information | ' | |||||||||||||||
Segment Information | ||||||||||||||||
We have three reportable segments: (1) RealPlayer Group, which includes sales of our RealPlayer media player software and related products, such as the distribution of third party software products, advertising on RealPlayer websites, and sales of RealPlayer Plus software licenses to consumers, sales of intellectual property licenses, and consumer subscriptions such as SuperPass and our RealPlayer Cloud service; (2) Mobile Entertainment, which includes our SaaS services, our LISTEN product, and sales of technology licenses of our software products such as Helix; and (3) Games, which includes all our games-related businesses, including sales of games licenses, online games subscription services, advertising on games sites and social network sites, microtransactions from online and social games, and sales of mobile games. | ||||||||||||||||
We allocate certain corporate expenses which are directly attributable to supporting the business to our reportable segments. These corporate expenses include but are not limited to a portion of finance, legal, human resources and headquarters facilities. Remaining expenses, which are not directly attributable to supporting the business, are reported as corporate items. All restructuring, lease exit and related charges, and loss on litigation settlements are included in the corporate segment. | ||||||||||||||||
RealNetworks reports three reportable segments based on factors such as how we manage our operations and how our Chief Operating Decision Maker reviews results. Our Chief Operating Decision Maker is considered to be the CEO Staff (CEOS), which includes the Chief Executive Officer, Chief Financial Officer, our Presidents, and General Counsel. The CEOS reviews financial information presented on both a consolidated basis and on a business segment basis. The accounting policies used to derive segment results are the same as those described in Note 1, Description of Business and Summary of Significant Accounting Policies, in the 10-K. | ||||||||||||||||
Segment results for the quarters and nine months ended September 30, 2014 and 2013 (in thousands): | ||||||||||||||||
RealPlayer Group | ||||||||||||||||
Quarters Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Revenue | $ | 6,565 | $ | 17,641 | $ | 30,336 | $ | 58,407 | ||||||||
Cost of revenue | 3,566 | 3,264 | 10,704 | 12,984 | ||||||||||||
Gross profit | 2,999 | 14,377 | 19,632 | 45,423 | ||||||||||||
Operating expenses | 12,392 | 14,449 | 42,668 | 44,656 | ||||||||||||
Operating income (loss) | $ | (9,393 | ) | $ | (72 | ) | $ | (23,036 | ) | $ | 767 | |||||
Mobile Entertainment | ||||||||||||||||
Quarters Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Revenue | $ | 19,190 | $ | 19,948 | $ | 62,285 | $ | 59,035 | ||||||||
Cost of revenue | 12,626 | 11,972 | 38,874 | 33,974 | ||||||||||||
Gross profit | 6,564 | 7,976 | 23,411 | 25,061 | ||||||||||||
Operating expenses | 7,086 | 9,453 | 26,126 | 26,976 | ||||||||||||
Operating income (loss) | $ | (522 | ) | $ | (1,477 | ) | $ | (2,715 | ) | $ | (1,915 | ) | ||||
Games | ||||||||||||||||
Quarters Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Revenue | $ | 8,402 | $ | 11,369 | $ | 28,085 | $ | 38,159 | ||||||||
Cost of revenue | 2,573 | 3,216 | 8,419 | 10,397 | ||||||||||||
Gross profit | 5,829 | 8,153 | 19,666 | 27,762 | ||||||||||||
Operating expenses | 8,658 | 11,513 | 27,193 | 35,120 | ||||||||||||
Operating income (loss) | $ | (2,829 | ) | $ | (3,360 | ) | $ | (7,527 | ) | $ | (7,358 | ) | ||||
Corporate | ||||||||||||||||
Quarters Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Cost of revenue | $ | 163 | $ | 538 | $ | 503 | $ | 1,660 | ||||||||
Extinguishment of liability | — | — | (10,580 | ) | — | |||||||||||
Operating expenses | 7,856 | 22,990 | 25,270 | 46,201 | ||||||||||||
Operating income (loss) | $ | (8,019 | ) | $ | (23,528 | ) | $ | (15,193 | ) | $ | (47,861 | ) | ||||
Our customers consist primarily of consumers and corporations located in the U.S., Europe, Republic of Korea and various foreign countries (Rest of the world). Revenue by geographic region (in thousands): | ||||||||||||||||
Quarters Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
United States | $ | 12,280 | $ | 21,039 | $ | 47,800 | $ | 70,525 | ||||||||
Europe | 5,749 | 8,750 | 21,129 | 29,278 | ||||||||||||
Republic of Korea | 9,728 | 11,839 | 31,114 | 32,062 | ||||||||||||
Rest of the world | 6,400 | 7,330 | 20,663 | 23,736 | ||||||||||||
Total net revenue | $ | 34,157 | $ | 48,958 | $ | 120,706 | $ | 155,601 | ||||||||
Long-lived assets (consists of equipment, software, leasehold improvements, other intangible assets, and goodwill) by geographic region (in thousands): | ||||||||||||||||
September 30, | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
United States | $ | 35,375 | $ | 40,347 | ||||||||||||
Europe | 7,352 | 8,280 | ||||||||||||||
Republic of Korea | 655 | 936 | ||||||||||||||
Rest of the world | 3,641 | 4,078 | ||||||||||||||
Total long-lived assets | $ | 47,023 | $ | 53,641 | ||||||||||||
Related_Party_Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2014 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions | ' |
Related Party Transactions | |
Transactions with Rhapsody. See Note 5, Rhapsody Joint Venture, for details on the 2010 restructuring transaction involving Rhapsody. Subsequent to the restructuring transaction, we were obligated to provide Rhapsody with certain support services. These support services, which included information technology and limited operational support provided directly to Rhapsody, were completed in 2013. RealNetworks has no further obligations or liabilities pursuant to the support services agreement. |
Description_of_Business_and_Su1
Description of Business and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Description of Business | ' |
Description of Business. RealNetworks, Inc. and subsidiaries is a leading global provider of network-delivered digital media applications and services that make it easy to manage, play and share digital media. The Company also develops and markets software products and services that enable the creation, distribution and consumption of digital media, including audio and video. | |
Inherent in our business are various risks and uncertainties, including a limited history of certain of our product and service offerings. RealNetworks' success will depend on the acceptance of our technology, products and services and the ability to generate related revenue. | |
In this Quarterly Report on Form 10-Q (10-Q or Report), RealNetworks, Inc. and Subsidiaries is referred to as “RealNetworks”, the “Company”, “we”, “us”, or “our”. “RealPlayer”, “LISTEN” and other trademarks of ours appearing in this report are our property. | |
Basis of Presentation | ' |
Basis of Presentation. The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. Intercompany balances and transactions have been eliminated in consolidation. | |
The unaudited condensed consolidated financial statements reflect all adjustments, consisting only of normal, recurring adjustments that, in the opinion of the Company’s management, are necessary for a fair presentation of the results of operations for the periods presented. Operating results for the quarter and nine months ended September 30, 2014 are not necessarily indicative of the results that may be expected for any subsequent period or for the year ending December 31, 2014. Certain information and disclosures normally included in financial statements prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). | |
These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2013 (the 10-K). | |
Use of Estimates | ' |
Use of Estimates. The preparation of financial statements in conformity with GAAP 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 financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. In addition, current economic conditions may require the use of additional estimates, and certain estimates we make are subject to a greater degree of uncertainty as a result of the current economic conditions. |
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
Stock-Based Compensation Expense | ' | |||||||||||||||
Total stock-based compensation expense recognized in our consolidated statements of operations includes amounts related to stock options, restricted stock units, and employee stock purchase plans and was as follows (in thousands): | ||||||||||||||||
Quarters Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Total stock-based compensation expense | $ | 1,148 | $ | 1,613 | $ | 4,158 | $ | 5,671 | ||||||||
Weighted-Average Assumptions Used to Determine Fair Value of Options Granted | ' | |||||||||||||||
The fair value of options granted determined using the Black-Scholes model used the following weighted-average assumptions: | ||||||||||||||||
Quarters Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Expected dividend yield | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Risk-free interest rate | 1.3 | % | 0.96 | % | 1.2 | % | 0.82 | % | ||||||||
Expected life (years) | 4.5 | 3.8 | 3.9 | 4 | ||||||||||||
Volatility | 42 | % | 48 | % | 40 | % | 48 | % |
Rhapsody_Joint_Venture_Tables
Rhapsody Joint Venture (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | ' | |||||||||||||||
Summarized Financial Operating Information for Rhapsody | ' | |||||||||||||||
Summarized financial information for Rhapsody, which represents 100% of their financial information (in thousands): | ||||||||||||||||
Quarters Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Net revenue | $ | 44,148 | $ | 35,190 | $ | 128,578 | $ | 103,831 | ||||||||
Gross profit | 7,739 | 7,800 | 24,730 | 24,412 | ||||||||||||
Net loss | (7,965 | ) | (5,621 | ) | (14,312 | ) | (14,812 | ) |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||
Financial Assets Measured at Fair Value on a Recurring Basis | ' | |||||||||||||||||||
The following table presents information about our financial assets that have been measured at fair value on a recurring basis as of September 30, 2014 and December 31, 2013, and indicates the fair value hierarchy of the valuation inputs utilized to determine such fair value (in thousands). | ||||||||||||||||||||
Fair Value Measurements as of | Amortized Cost as of | |||||||||||||||||||
September 30, 2014 | 30-Sep-14 | |||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||||||
Cash | $ | 28,213 | $ | — | $ | — | $ | 28,213 | $ | 28,213 | ||||||||||
Money market funds | — | 5,092 | — | 5,092 | 5,092 | |||||||||||||||
Corporate notes and bonds | — | 80,768 | — | 80,768 | 80,768 | |||||||||||||||
Total cash and cash equivalents | 28,213 | 85,860 | — | 114,073 | 114,073 | |||||||||||||||
Short-term investments: | ||||||||||||||||||||
Corporate notes and bonds | — | 53,246 | — | 53,246 | 53,195 | |||||||||||||||
U.S. government agency securities | 10,702 | — | — | 10,702 | 10,701 | |||||||||||||||
Total short-term investments | 10,702 | 53,246 | — | 63,948 | 63,896 | |||||||||||||||
Restricted cash equivalents and investments | — | 3,000 | — | 3,000 | 3,000 | |||||||||||||||
Equity investment in publicly traded securities | 2,848 | — | — | 2,848 | 428 | |||||||||||||||
Total | $ | 41,763 | $ | 142,106 | $ | — | $ | 183,869 | $ | 181,397 | ||||||||||
Fair Value Measurements as of | Amortized Cost as of | |||||||||||||||||||
December 31, 2013 | 31-Dec-13 | |||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||||||
Cash | $ | 46,978 | $ | — | $ | — | $ | 46,978 | $ | 46,978 | ||||||||||
Money market funds | 1 | 26,913 | — | 26,914 | 26,914 | |||||||||||||||
Corporate notes and bonds | — | 77,043 | — | 77,043 | 77,044 | |||||||||||||||
U.S. government agency securities | — | 300 | — | 300 | 300 | |||||||||||||||
Total cash and cash equivalents | 46,979 | 104,256 | — | 151,235 | 151,236 | |||||||||||||||
Short-term investments: | ||||||||||||||||||||
Corporate notes and bonds | — | 59,766 | — | 59,766 | 59,713 | |||||||||||||||
U.S. government agency securities | 14,077 | 1,077 | — | 15,154 | 15,159 | |||||||||||||||
Total short-term investments | 14,077 | 60,843 | — | 74,920 | 74,872 | |||||||||||||||
Restricted cash equivalents and investments | — | 3,000 | — | 3,000 | 3,000 | |||||||||||||||
Equity investment in publicly traded securities | 7,181 | — | — | 7,181 | 842 | |||||||||||||||
Total | $ | 68,237 | $ | 168,099 | $ | — | $ | 236,336 | $ | 229,950 | ||||||||||
Schedule of Contractual Maturity Date | ' | |||||||||||||||||||
Contractual maturities of short-term investments as of September 30, 2014 (in thousands): | ||||||||||||||||||||
Estimated | ||||||||||||||||||||
Fair Value | ||||||||||||||||||||
Within one year | $ | 47,671 | ||||||||||||||||||
Between one year and five years | 16,277 | |||||||||||||||||||
Total short-term investments | $ | 63,948 | ||||||||||||||||||
Allowance_for_Doubtful_Account1
Allowance for Doubtful Accounts Receivable and Sales Returns (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Receivables [Abstract] | ' | |||||||
Activity in Allowance for Doubtful Accounts Receivable and Sales Returns | ' | |||||||
Activity in the allowance for doubtful accounts receivable and sales returns (in thousands): | ||||||||
Allowance For | ||||||||
Doubtful | Sales | |||||||
Accounts | Returns | |||||||
Receivable | ||||||||
Balances, December 31, 2013 | $ | 966 | $ | 569 | ||||
Addition (reduction) to allowance | 403 | (185 | ) | |||||
Amounts written off | — | (5 | ) | |||||
Foreign currency translation | (54 | ) | (1 | ) | ||||
Balances, September 30, 2014 | $ | 1,315 | $ | 378 | ||||
Other_Intangible_Assets_Tables
Other Intangible Assets (Tables) | 9 Months Ended | |||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||||||||
Other Intangible Assets | ' | |||||||||||||||||||||||||
Other intangible assets (in thousands): | ||||||||||||||||||||||||||
30-Sep-14 | 31-Dec-13 | |||||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||||||||||
Amount | Amortization | Amount | Amortization | |||||||||||||||||||||||
Amortizing intangible assets: | ||||||||||||||||||||||||||
Customer relationships | $ | 34,876 | $ | 32,372 | $ | 2,504 | $ | 35,156 | $ | 31,262 | $ | 3,894 | ||||||||||||||
Developed technology | 28,871 | 25,922 | 2,949 | 29,097 | 25,039 | 4,058 | ||||||||||||||||||||
Patents, trademarks and tradenames | 3,945 | 3,624 | 321 | 4,021 | 3,627 | 394 | ||||||||||||||||||||
Service contracts | 6,426 | 5,746 | 680 | 5,679 | 5,532 | 147 | ||||||||||||||||||||
74,118 | 67,664 | 6,454 | 73,953 | 65,460 | 8,493 | |||||||||||||||||||||
Non-amortizing intangible assets: | ||||||||||||||||||||||||||
Trademarks and tradenames | 4,500 | — | 4,500 | 4,500 | — | 4,500 | ||||||||||||||||||||
Total | $ | 78,618 | $ | 67,664 | $ | 10,954 | $ | 78,453 | $ | 65,460 | $ | 12,993 | ||||||||||||||
Goodwill_Tables
Goodwill (Tables) | 9 Months Ended | |||
Sep. 30, 2014 | ||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||
Changes in Goodwill | ' | |||
Changes in goodwill (in thousands): | ||||
Balance, December 31, 2013 | $ | 17,476 | ||
Increases due to current year acquisitions | 460 | |||
Effects of foreign currency translation | (321 | ) | ||
Balance, September 30, 2014 | $ | 17,615 | ||
Goodwill Assigned by Segments | ' | |||
Goodwill by segment (in thousands): | ||||
September 30, | ||||
2014 | ||||
RealPlayer Group | $ | 1,003 | ||
Mobile Entertainment | 2,073 | |||
Games | 14,539 | |||
Total goodwill | $ | 17,615 | ||
Accrued_and_Other_Liabilities_
Accrued and Other Liabilities (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Payables and Accruals [Abstract] | ' | |||||||
Accrued and Other Liabilities | ' | |||||||
Accrued and other current liabilities (in thousands): | ||||||||
30-Sep-14 | 31-Dec-13 | |||||||
Royalties and other fulfillment costs | $ | 4,537 | $ | 16,467 | ||||
Employee compensation, commissions and benefits | 8,086 | 10,060 | ||||||
Sales, VAT and other taxes payable | 6,644 | 7,237 | ||||||
Other | 6,618 | 8,129 | ||||||
Total accrued and other current liabilities | $ | 25,885 | $ | 41,893 | ||||
Restructuring_Charges_Tables
Restructuring Charges (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Restructuring and Related Activities [Abstract] | ' | ||||||||
Schedule of Restructuring Charges by Type of Cost | ' | ||||||||
Restructuring charges by type of cost (in thousands): | |||||||||
Employee Separation Costs | Asset Related and Other Costs | Total | |||||||
Costs incurred and charged to expense for the nine months ended September 30, 2014 | $ | 3,805 | — | $ | 3,805 | ||||
Costs incurred and charged to expense for the nine months ended September 30, 2013 | $ | 2,891 | 1,184 | $ | 4,075 | ||||
Changes to the accrued restructuring cost liability (in thousands): | |||||||||
Employee Separation Costs | |||||||||
Accrued liability as of December 31, 2013 | $ | 756 | |||||||
Costs incurred and charged to expense for the nine months ended September 30, 2014 | 3,805 | ||||||||
Cash payments | (3,626 | ) | |||||||
Accrued liability at September 30, 2014 (included in Accrued and other current liabilities) | $ | 935 | |||||||
Lease_Exit_and_Related_Charges1
Lease Exit and Related Charges (Tables) | 9 Months Ended | |||
Sep. 30, 2014 | ||||
Disclosure Changes To Accrued Loss On Excess Office Facilities [Abstract] | ' | |||
Changes to Accrued Loss on Excess Office Facilities | ' | |||
Changes to accrued lease exit and related charges (in thousands): | ||||
Accrued loss as of December 31, 2013 | $ | 254 | ||
Additions and adjustments to the lease exit charges accrual, including sublease income estimate revision | 480 | |||
Less amounts paid, net of sublease amounts | (611 | ) | ||
Accrued loss as of September 30, 2014 (included in Accrued and other current liabilities) | $ | 123 | ||
Shareholders_Equity_Tables
Shareholders’ Equity (Tables) | 9 Months Ended | |||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | ' | |||||||||||||||||
Changes in components of accumulated other comprehensive income (in thousands): | ||||||||||||||||||
Quarters Ended | Nine Months Ended | |||||||||||||||||
September 30, | September 30, | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
Investments | ||||||||||||||||||
Accumulated other comprehensive income (loss), beginning of period | $ | 2,784 | $ | 27,700 | $ | 6,397 | 26,685 | |||||||||||
Unrealized gains (losses), net of tax effects of $0, $587, $0 and $(129) | (323 | ) | (1,043 | ) | (1,565 | ) | (28 | ) | ||||||||||
Reclassification adjustments for losses (gains) included in other income (expense), net of tax effects of $0, $0, $(4) and $0 | — | — | (2,371 | ) | — | |||||||||||||
Net current period other comprehensive income | (323 | ) | (1,043 | ) | (3,936 | ) | (28 | ) | ||||||||||
Accumulated other comprehensive income (loss) balance, end of period | $ | 2,461 | $ | 26,657 | $ | 2,461 | $ | 26,657 | ||||||||||
Foreign currency translation | ||||||||||||||||||
Accumulated other comprehensive income (loss), beginning of period | $ | (53,901 | ) | $ | (54,851 | ) | $ | (54,092 | ) | $ | (53,225 | ) | ||||||
Translation adjustments | (2,338 | ) | 1,235 | (2,099 | ) | (356 | ) | |||||||||||
Reclassification adjustments for losses (gains) included in other income (expense) | — | — | (48 | ) | (35 | ) | ||||||||||||
Net current period other comprehensive income | (2,338 | ) | 1,235 | (2,147 | ) | (391 | ) | |||||||||||
Accumulated other comprehensive income (loss) balance, end of period | $ | (56,239 | ) | $ | (53,616 | ) | $ | (56,239 | ) | $ | (53,616 | ) | ||||||
Total accumulated other comprehensive income (loss), end of period | $ | (53,778 | ) | $ | (26,959 | ) | $ | (53,778 | ) | $ | (26,959 | ) | ||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Calculation of Basic and Diluted Earnings Per Share | ' | |||||||||||||||
Basic and diluted EPS (in thousands, except per share amounts): | ||||||||||||||||
Quarters Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Net income (loss) | $ | (22,178 | ) | $ | (31,375 | ) | $ | (50,977 | ) | $ | (61,520 | ) | ||||
Weighted average common shares outstanding used to compute basic EPS | 36,003 | 35,670 | 35,912 | 35,490 | ||||||||||||
Dilutive effect of stock based awards | — | — | — | — | ||||||||||||
Weighted average common shares outstanding used to compute diluted EPS | 36,003 | 35,670 | 35,912 | 35,490 | ||||||||||||
Basic EPS | $ | (0.62 | ) | $ | (0.88 | ) | $ | (1.42 | ) | $ | (1.73 | ) | ||||
Diluted EPS | $ | (0.62 | ) | $ | (0.88 | ) | $ | (1.42 | ) | $ | (1.73 | ) |
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Segment Results | ' | |||||||||||||||
Segment results for the quarters and nine months ended September 30, 2014 and 2013 (in thousands): | ||||||||||||||||
RealPlayer Group | ||||||||||||||||
Quarters Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Revenue | $ | 6,565 | $ | 17,641 | $ | 30,336 | $ | 58,407 | ||||||||
Cost of revenue | 3,566 | 3,264 | 10,704 | 12,984 | ||||||||||||
Gross profit | 2,999 | 14,377 | 19,632 | 45,423 | ||||||||||||
Operating expenses | 12,392 | 14,449 | 42,668 | 44,656 | ||||||||||||
Operating income (loss) | $ | (9,393 | ) | $ | (72 | ) | $ | (23,036 | ) | $ | 767 | |||||
Mobile Entertainment | ||||||||||||||||
Quarters Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Revenue | $ | 19,190 | $ | 19,948 | $ | 62,285 | $ | 59,035 | ||||||||
Cost of revenue | 12,626 | 11,972 | 38,874 | 33,974 | ||||||||||||
Gross profit | 6,564 | 7,976 | 23,411 | 25,061 | ||||||||||||
Operating expenses | 7,086 | 9,453 | 26,126 | 26,976 | ||||||||||||
Operating income (loss) | $ | (522 | ) | $ | (1,477 | ) | $ | (2,715 | ) | $ | (1,915 | ) | ||||
Games | ||||||||||||||||
Quarters Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Revenue | $ | 8,402 | $ | 11,369 | $ | 28,085 | $ | 38,159 | ||||||||
Cost of revenue | 2,573 | 3,216 | 8,419 | 10,397 | ||||||||||||
Gross profit | 5,829 | 8,153 | 19,666 | 27,762 | ||||||||||||
Operating expenses | 8,658 | 11,513 | 27,193 | 35,120 | ||||||||||||
Operating income (loss) | $ | (2,829 | ) | $ | (3,360 | ) | $ | (7,527 | ) | $ | (7,358 | ) | ||||
Corporate | ||||||||||||||||
Quarters Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Cost of revenue | $ | 163 | $ | 538 | $ | 503 | $ | 1,660 | ||||||||
Extinguishment of liability | — | — | (10,580 | ) | — | |||||||||||
Operating expenses | 7,856 | 22,990 | 25,270 | 46,201 | ||||||||||||
Operating income (loss) | $ | (8,019 | ) | $ | (23,528 | ) | $ | (15,193 | ) | $ | (47,861 | ) | ||||
Revenue by Geographic Region | ' | |||||||||||||||
Our customers consist primarily of consumers and corporations located in the U.S., Europe, Republic of Korea and various foreign countries (Rest of the world). Revenue by geographic region (in thousands): | ||||||||||||||||
Quarters Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
United States | $ | 12,280 | $ | 21,039 | $ | 47,800 | $ | 70,525 | ||||||||
Europe | 5,749 | 8,750 | 21,129 | 29,278 | ||||||||||||
Republic of Korea | 9,728 | 11,839 | 31,114 | 32,062 | ||||||||||||
Rest of the world | 6,400 | 7,330 | 20,663 | 23,736 | ||||||||||||
Total net revenue | $ | 34,157 | $ | 48,958 | $ | 120,706 | $ | 155,601 | ||||||||
Long-Lived Assets by Geographic Region | ' | |||||||||||||||
Long-lived assets (consists of equipment, software, leasehold improvements, other intangible assets, and goodwill) by geographic region (in thousands): | ||||||||||||||||
September 30, | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
United States | $ | 35,375 | $ | 40,347 | ||||||||||||
Europe | 7,352 | 8,280 | ||||||||||||||
Republic of Korea | 655 | 936 | ||||||||||||||
Rest of the world | 3,641 | 4,078 | ||||||||||||||
Total long-lived assets | $ | 47,023 | $ | 53,641 | ||||||||||||
Acquisitions_Details
Acquisitions (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Sep. 30, 2013 | Jun. 30, 2013 |
Slingo, Inc | Muzicall Ltd | Tradenames and Trademarks | Tradenames and Trademarks | Tradenames and Trademarks | Developed Technology, tradenames and trademarks and customer relationships [Member] | Developed Technology and Customer Relationships | |||
Slingo, Inc | Muzicall Ltd | Slingo, Inc | |||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of voting interests acquired | ' | ' | 100.00% | 100.00% | ' | ' | ' | ' | ' |
Payments to acquire businesses | ' | ' | $15,600,000 | $6,700,000 | ' | ' | ' | ' | ' |
Intangible assets acquired | ' | ' | 8,000,000 | ' | ' | ' | ' | ' | ' |
Indefinite-Lived Intangible Assets (Excluding Goodwill) | ' | ' | ' | ' | 4,500,000 | 4,500,000 | 4,500,000 | ' | ' |
Finite-lived intangibles acquired | ' | ' | ' | ' | ' | ' | ' | 5,400,000 | 3,500,000 |
Deferred tax assets acquired | ' | ' | ' | 3,400,000 | ' | ' | ' | ' | ' |
Deferred tax liability | ' | ' | 2,700,000 | ' | ' | ' | ' | ' | ' |
Goodwill | $17,615,000 | $17,476,000 | $9,900,000 | $1,300,000 | ' | ' | ' | ' | ' |
StockBased_Compensation_Recogn
Stock-Based Compensation (Recognized Stock-Based Compensation Expense) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' | ' | ' |
Total stock-based compensation expense | $1,148 | $1,613 | $4,158 | $5,671 |
StockBased_Compensation_Weight
Stock-Based Compensation (Weighted-Average Assumptions Used to Determine Fair Value of Options Granted) (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' | ' | ' |
Expected dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Risk-free interest rate | 1.30% | 0.96% | 1.20% | 0.82% |
Expected life (years) | '4 years 6 months | '3 years 9 months | '3 years 11 months | '4 years 0 months |
Volatility | 42.00% | 48.00% | 40.00% | 48.00% |
StockBased_Compensation_Additi
Stock-Based Compensation (Additional Information) (Detail) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2014 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' |
Total unrecognized compensation cost | $12.10 |
Total unrecognized compensation cost, expected recognition period (in years) | '3 years |
Rhapsody_Joint_Venture_Additio
Rhapsody Joint Venture (Additional Information) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2014 | Sep. 30, 2013 | Mar. 31, 2010 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ' | ' |
Losses recorded in the operations of Rhapsody | $1,530,000 | $2,629,000 | ' | $4,170,000 | $6,209,000 | ' |
Carrying value of Rhapsody investment | 10,000,000 | ' | ' | 10,000,000 | ' | 12,473,000 |
Rhapsody America LLC | ' | ' | ' | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ' | ' |
Percentage of ownership interest in Rhapsody | 45.00% | ' | 47.00% | 45.00% | ' | ' |
Payments for Restructuring | ' | ' | 18,000,000 | ' | ' | ' |
Equity Method Investment, Preferred Stock, Liquidation Preference, Value | 10,000,000 | ' | ' | 10,000,000 | ' | ' |
Losses recorded in the operations of Rhapsody | 1,500,000 | 2,600,000 | ' | 4,200,000 | 6,200,000 | ' |
Carrying value of Rhapsody investment | $10,000,000 | ' | ' | $10,000,000 | ' | $12,500,000 |
Before Capital Restructuring | Rhapsody America LLC | ' | ' | ' | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ' | ' |
Percentage of ownership interest in Rhapsody | ' | ' | 51.00% | ' | ' | ' |
MTV Networks | Before Capital Restructuring | Rhapsody America LLC | ' | ' | ' | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ' | ' |
Percentage of ownership interest in Rhapsody | ' | ' | 49.00% | ' | ' | ' |
Rhapsody_Joint_Venture_Summari
Rhapsody Joint Venture (Summarized Financial Operating Information for Rhapsody) (Detail) (Rhapsody America LLC, USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Rhapsody America LLC | ' | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' |
Net revenue | $44,148 | $35,190 | $128,578 | $103,831 |
Gross profit | 7,739 | 7,800 | 24,730 | 24,412 |
Net loss | ($7,965) | ($5,621) | ($14,312) | ($14,812) |
Fair_Value_Measurements_Financ
Fair Value Measurements (Financial Assets Measured at Fair Value on a Recurring Basis) (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Financial assets fair value | $183,869 | $236,336 |
Amortized Cost | 181,397 | 229,950 |
Cash and Cash Equivalents | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Financial assets fair value | 114,073 | 151,235 |
Amortized Cost | 114,073 | 151,236 |
Cash and Cash Equivalents | Cash | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Financial assets fair value | 28,213 | 46,978 |
Amortized Cost | 28,213 | 46,978 |
Cash and Cash Equivalents | Money market funds | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Financial assets fair value | 5,092 | 26,914 |
Amortized Cost | 5,092 | 26,914 |
Cash and Cash Equivalents | Corporate notes and bonds | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Financial assets fair value | 80,768 | 77,043 |
Amortized Cost | 80,768 | 77,044 |
Cash and Cash Equivalents | U.S. government agency securities | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Financial assets fair value | ' | 300 |
Amortized Cost | ' | 300 |
Short-term Investments | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Financial assets fair value | 63,948 | 74,920 |
Amortized Cost | 63,896 | 74,872 |
Short-term Investments | Corporate notes and bonds | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Financial assets fair value | 53,246 | 59,766 |
Amortized Cost | 53,195 | 59,713 |
Short-term Investments | U.S. government agency securities | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Financial assets fair value | 10,702 | 15,154 |
Amortized Cost | 10,701 | 15,159 |
Restricted cash equivalents and investments | Restricted cash equivalents and investments | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Financial assets fair value | 3,000 | 3,000 |
Amortized Cost | 3,000 | 3,000 |
Equity Investment in Publicly Traded Securities | Publicly Traded Investments | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Financial assets fair value | 2,848 | 7,181 |
Amortized Cost | 428 | 842 |
Level 1 | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Financial assets fair value | 41,763 | 68,237 |
Level 1 | Cash and Cash Equivalents | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Financial assets fair value | 28,213 | 46,979 |
Level 1 | Cash and Cash Equivalents | Cash | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Financial assets fair value | 28,213 | 46,978 |
Level 1 | Cash and Cash Equivalents | Money market funds | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Financial assets fair value | 0 | 1 |
Level 1 | Cash and Cash Equivalents | Corporate notes and bonds | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Financial assets fair value | 0 | 0 |
Level 1 | Cash and Cash Equivalents | U.S. government agency securities | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Financial assets fair value | ' | 0 |
Level 1 | Short-term Investments | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Financial assets fair value | 10,702 | 14,077 |
Level 1 | Short-term Investments | Corporate notes and bonds | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Financial assets fair value | 0 | 0 |
Level 1 | Short-term Investments | U.S. government agency securities | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Financial assets fair value | 10,702 | 14,077 |
Level 1 | Restricted cash equivalents and investments | Restricted cash equivalents and investments | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Financial assets fair value | 0 | 0 |
Level 1 | Equity Investment in Publicly Traded Securities | Publicly Traded Investments | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Financial assets fair value | 2,848 | 7,181 |
Level 2 | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Financial assets fair value | 142,106 | 168,099 |
Level 2 | Cash and Cash Equivalents | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Financial assets fair value | 85,860 | 104,256 |
Level 2 | Cash and Cash Equivalents | Cash | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Financial assets fair value | 0 | 0 |
Level 2 | Cash and Cash Equivalents | Money market funds | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Financial assets fair value | 5,092 | 26,913 |
Level 2 | Cash and Cash Equivalents | Corporate notes and bonds | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Financial assets fair value | 80,768 | 77,043 |
Level 2 | Cash and Cash Equivalents | U.S. government agency securities | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Financial assets fair value | ' | 300 |
Level 2 | Short-term Investments | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Financial assets fair value | 53,246 | 60,843 |
Level 2 | Short-term Investments | Corporate notes and bonds | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Financial assets fair value | 53,246 | 59,766 |
Level 2 | Short-term Investments | U.S. government agency securities | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Financial assets fair value | 0 | 1,077 |
Level 2 | Restricted cash equivalents and investments | Restricted cash equivalents and investments | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Financial assets fair value | 3,000 | 3,000 |
Level 2 | Equity Investment in Publicly Traded Securities | Publicly Traded Investments | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Financial assets fair value | 0 | 0 |
Level 3 | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Financial assets fair value | 0 | 0 |
Level 3 | Cash and Cash Equivalents | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Financial assets fair value | 0 | 0 |
Level 3 | Cash and Cash Equivalents | Cash | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Financial assets fair value | 0 | 0 |
Level 3 | Cash and Cash Equivalents | Money market funds | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Financial assets fair value | 0 | 0 |
Level 3 | Cash and Cash Equivalents | Corporate notes and bonds | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Financial assets fair value | 0 | 0 |
Level 3 | Cash and Cash Equivalents | U.S. government agency securities | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Financial assets fair value | ' | 0 |
Level 3 | Short-term Investments | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Financial assets fair value | 0 | 0 |
Level 3 | Short-term Investments | Corporate notes and bonds | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Financial assets fair value | 0 | 0 |
Level 3 | Short-term Investments | U.S. government agency securities | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Financial assets fair value | 0 | 0 |
Level 3 | Restricted cash equivalents and investments | Restricted cash equivalents and investments | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Financial assets fair value | 0 | 0 |
Level 3 | Equity Investment in Publicly Traded Securities | Publicly Traded Investments | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Financial assets fair value | $0 | $0 |
Fair_Value_Measurements_Shortt
Fair Value Measurements (Short-term Investments) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Financial assets fair value | $183,869 | $236,336 |
Short-term Investments | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Financial assets fair value | 63,948 | 74,920 |
Short-term Investments | Estimate of Fair Value Measurement | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Financial assets fair value | 63,948 | ' |
Short-term Investments | Within one year | Estimate of Fair Value Measurement | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Financial assets fair value | 47,671 | ' |
Short-term Investments | Between one year and five years | Estimate of Fair Value Measurement | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Financial assets fair value | $16,277 | ' |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ' | ' |
Proceeds from sale of investment | ' | ' | ' | ($2,754) | $0 |
Gain (loss) on sale of investment | 2,400 | 0 | 0 | 2,371 | 0 |
J-Stream [Member] | ' | ' | ' | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ' | ' |
Proceeds from sale of investment | ($2,800) | ' | ' | ' | ' |
Allowance_for_Doubtful_Account2
Allowance for Doubtful Accounts Receivable and Sales Returns (Activity in Allowance for Doubtful Accounts Receivable and Sales Returns) (Detail) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 |
Allowance for Doubtful Accounts Receivable | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' |
Beginning Balance | $966 |
Addition (reduction) to allowance | 403 |
Amounts written off | 0 |
Foreign currency translation | -54 |
Ending Balance | 1,315 |
Allowance for Sales Returns | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' |
Beginning Balance | 569 |
Addition (reduction) to allowance | -185 |
Amounts written off | -5 |
Foreign currency translation | -1 |
Ending Balance | $378 |
Allowance_for_Doubtful_Account3
Allowance for Doubtful Accounts Receivable and Sales Returns (Additional Information) (Detail) (USD $) | 12 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Accounts Receivable | Accounts Receivable | Accounts Receivable | RealPlayer Group | RealPlayer Group | RealPlayer Group | RealPlayer Group | Mobile Entertainment | Mobile Entertainment | Mobile Entertainment | Mobile Entertainment | Mobile Entertainment | Mobile Entertainment | Mobile Entertainment | Mobile Entertainment | |
Customer | Company A | Company B | Revenue by Segment | Revenue by Segment | Revenue by Segment | Revenue by Segment | Revenue by Segment | Revenue by Segment | |||||||
Customer | Customer | Customer | |||||||||||||
Concentration Risk [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of major customers | 1 | 1 | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' |
Percentage by major customer | 17.00% | 17.00% | 14.00% | ' | ' | 12.00% | 14.00% | ' | ' | ' | ' | 24.00% | 14.00% | 20.00% | 11.00% |
Significant customer revenue | ' | ' | ' | $6 | $21.10 | ' | ' | $8.20 | $6.80 | $24.60 | $17.30 | ' | ' | ' | ' |
Other_Intangible_Assets_Detail
Other Intangible Assets (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Finite-Lived Intangible Assets, Net [Abstract] | ' | ' |
Gross Amount | $74,118,000 | $73,953,000 |
Accumulated Amortization | 67,664,000 | 65,460,000 |
Net | 6,454,000 | 8,493,000 |
Indefinite-Lived Intangible Assets (Excluding Goodwill) [Abstract] | ' | ' |
Intangible Assets, Gross | 78,618,000 | 78,453,000 |
Intangible assets, net | 10,954,000 | 12,993,000 |
Tradenames and Trademarks | ' | ' |
Indefinite-Lived Intangible Assets (Excluding Goodwill) [Abstract] | ' | ' |
Indefinite-Lived Intangible Assets (Excluding Goodwill) | 4,500,000 | 4,500,000 |
Customer relationships | ' | ' |
Finite-Lived Intangible Assets, Net [Abstract] | ' | ' |
Gross Amount | 34,876,000 | 35,156,000 |
Accumulated Amortization | 32,372,000 | 31,262,000 |
Net | 2,504,000 | 3,894,000 |
Developed technology | ' | ' |
Finite-Lived Intangible Assets, Net [Abstract] | ' | ' |
Gross Amount | 28,871,000 | 29,097,000 |
Accumulated Amortization | 25,922,000 | 25,039,000 |
Net | 2,949,000 | 4,058,000 |
Patents, trademarks and tradenames | ' | ' |
Finite-Lived Intangible Assets, Net [Abstract] | ' | ' |
Gross Amount | 3,945,000 | 4,021,000 |
Accumulated Amortization | 3,624,000 | 3,627,000 |
Net | 321,000 | 394,000 |
Servicing contracts and other | ' | ' |
Finite-Lived Intangible Assets, Net [Abstract] | ' | ' |
Gross Amount | 6,426,000 | 5,679,000 |
Accumulated Amortization | 5,746,000 | 5,532,000 |
Net | 680,000 | 147,000 |
RealPlayer Group | ' | ' |
Indefinite-Lived Intangible Assets (Excluding Goodwill) [Abstract] | ' | ' |
Intangible assets acquired | $800,000 | ' |
Goodwill_Changes_in_Goodwill_D
Goodwill (Changes in Goodwill) (Detail) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 |
Goodwill and Intangible Assets Disclosure [Abstract] | ' |
Beginning Balance | $17,476 |
Increases due to current year acquisitions | 460 |
Effects of foreign currency translation | -321 |
Ending Balance | $17,615 |
Goodwill_Goodwill_by_Segments_
Goodwill (Goodwill by Segments) (Detail) (USD $) | 9 Months Ended | 3 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Jun. 30, 2014 |
RealPlayer Group | Mobile Entertainment | Games | RealPlayer Group | |||
Goodwill [Line Items] | ' | ' | ' | ' | ' | ' |
Goodwill | $17,615 | $17,476 | $1,003 | $2,073 | $14,539 | ' |
Goodwill acquired during period | $460 | ' | ' | ' | ' | $500 |
Accrued_and_Other_Liabilities_1
Accrued and Other Liabilities (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Payables and Accruals [Abstract] | ' | ' | ' | ' | ' | ' |
Royalties and other fulfillment costs | $4,537 | ' | ' | $4,537 | ' | $16,467 |
Employee compensation, commissions and benefits | 8,086 | ' | ' | 8,086 | ' | 10,060 |
Sales, VAT and other taxes payable | 6,644 | ' | ' | 6,644 | ' | 7,237 |
Other | 6,618 | ' | ' | 6,618 | ' | 8,129 |
Total accrued and other liabilities | 25,885 | ' | ' | 25,885 | ' | 41,893 |
Extinguishment of liability | $0 | $10,600 | $0 | $10,580 | $0 | ' |
Restructuring_Charges_Restruct
Restructuring Charges Restructuring Charges (Details) (USD $) | 3 Months Ended | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2012 | Sep. 30, 2014 | Sep. 30, 2013 |
position | |||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Number of positions eliminated | 160 | ' | ' |
Costs incurred and charged to expense | ' | $3,805 | $4,075 |
Asset Related and Other Costs | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Costs incurred and charged to expense | ' | 0 | 1,184 |
Employee Separation Costs | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Costs incurred and charged to expense | ' | 3,805 | 2,891 |
Restructuring Reserve [Roll Forward] | ' | ' | ' |
Accrued liability beginning balance | ' | 756 | ' |
Costs incurred and charged to expense, excluding non-cash charges | ' | 3,805 | ' |
Cash payments | ' | -3,626 | ' |
Accrued liability ending balance | ' | $935 | ' |
Lease_Exit_and_Related_Charges2
Lease Exit and Related Charges (Changes to Accrued Loss on Excess Office Facilities) (Detail) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 |
Disclosure Changes To Accrued Loss On Excess Office Facilities [Abstract] | ' |
Accrued loss as of December 31, 2013 | $254 |
Additions and adjustments to the lease exit charges accrual, including sublease income estimate revision | 480 |
Less amounts paid, net of sublease amounts | -611 |
Accrued loss as of September 30, 2014 (included in Accrued and other current liabilities) | $123 |
Shareholders_Equity_Accumulate
Shareholders’ Equity (Accumulated Other Comprehensive Income (Loss)) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | ' | ' | ' |
Accumulated other comprehensive income (loss), beginning of period | ' | ' | ($47,695) | ' |
Unrealized gains (losses), net of tax effects of $0, $587, $0 and $(129) | -323 | -1,043 | -3,936 | -28 |
Net current period other comprehensive income | -2,661 | 192 | -6,083 | -419 |
Accumulated other comprehensive income (loss) balance, end of period | -53,778 | -26,959 | -53,778 | -26,959 |
Accumulated Other Comprehensive Income (Loss), Tax [Abstract] | ' | ' | ' | ' |
Unrealized gains (losses), tax effects | 0 | 587 | 0 | -129 |
Reclassification adjustments for losses (gains) included in other income (expense), tax effects | 0 | 0 | -4 | 0 |
Investments | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | ' | ' | ' |
Accumulated other comprehensive income (loss), beginning of period | 2,784 | 27,700 | 6,397 | 26,685 |
Unrealized gains (losses), net of tax effects of $0, $587, $0 and $(129) | -323 | -1,043 | -1,565 | -28 |
Reclassification adjustments for losses (gains) included in other income (expense) | 0 | 0 | -2,371 | 0 |
Net current period other comprehensive income | -323 | -1,043 | -3,936 | -28 |
Accumulated other comprehensive income (loss) balance, end of period | 2,461 | 26,657 | 2,461 | 26,657 |
Foreign currency translation | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | ' | ' | ' |
Accumulated other comprehensive income (loss), beginning of period | -53,901 | -54,851 | -54,092 | -53,225 |
Translation adjustments | -2,338 | 1,235 | -2,099 | -356 |
Reclassification adjustments for losses (gains) included in other income (expense) | 0 | 0 | -48 | -35 |
Net current period other comprehensive income | -2,338 | 1,235 | -2,147 | -391 |
Accumulated other comprehensive income (loss) balance, end of period | ($56,239) | ($53,616) | ($56,239) | ($53,616) |
Income_Taxes_Details
Income Taxes (Details) (Forecast, USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2015 |
Forecast | ' |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ' |
Potential decrease in unrecognized tax benefits | $0.90 |
Potential decrease in unrecognized tax benefits, impact on tax expense | $0.40 |
Earnings_Per_Share_Calculation
Earnings Per Share (Calculation of Basic and Diluted Earnings Per Share) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Net income (loss) available to common shareholders | ($22,178) | ($31,375) | ($50,977) | ($61,520) |
Weighted average common shares outstanding used to compute basic EPS | 36,003 | 35,670 | 35,912 | 35,490 |
Dilutive effect of stock based awards | 0 | 0 | 0 | 0 |
Weighted average common shares outstanding used to compute diluted EPS | 36,003 | 35,670 | 35,912 | 35,490 |
Basic EPS (USD per share) | ($0.62) | ($0.88) | ($1.42) | ($1.73) |
Diluted EPS (USD per share) | ($0.62) | ($0.88) | ($1.42) | ($1.73) |
Earnings_Per_Share_Additional_
Earnings Per Share - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Shares of common stock excluded from the calculation of diluted net income per share because of antidilutive effect | 6.3 | 4.6 | 6.2 | 4.4 |
Segment_Information_Additional
Segment Information (Additional Information) (Detail) | 3 Months Ended |
Sep. 30, 2014 | |
Segment | |
Segment Reporting [Abstract] | ' |
Number of reporting segments | 3 |
Segment_Information_Segment_Re
Segment Information (Segment Results) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
RealPlayer Group | RealPlayer Group | RealPlayer Group | RealPlayer Group | Mobile Entertainment | Mobile Entertainment | Mobile Entertainment | Mobile Entertainment | Games | Games | Games | Games | Corporate | Corporate | Corporate | Corporate | ||||||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Revenue | $34,157 | [1] | ' | $48,958 | [1] | $120,706 | [1] | $155,601 | [1] | $6,565 | $17,641 | $30,336 | $58,407 | $19,190 | $19,948 | $62,285 | $59,035 | $8,402 | $11,369 | $28,085 | $38,159 | ' | ' | ' | ' |
Cost of revenue | 18,928 | [2] | ' | 18,990 | [2] | 58,500 | [2] | 59,015 | [2] | 3,566 | 3,264 | 10,704 | 12,984 | 12,626 | 11,972 | 38,874 | 33,974 | 2,573 | 3,216 | 8,419 | 10,397 | 163 | 538 | 503 | 1,660 |
Extinguishment of liability | 0 | -10,600 | 0 | -10,580 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ' | ' | ||||
Gross profit | 15,229 | ' | 29,968 | 72,786 | 96,586 | 2,999 | 14,377 | 19,632 | 45,423 | 6,564 | 7,976 | 23,411 | 25,061 | 5,829 | 8,153 | 19,666 | 27,762 | ' | ' | ' | ' | ||||
Operating expenses | 35,992 | ' | 58,405 | 121,257 | 152,953 | 12,392 | 14,449 | 42,668 | 44,656 | 7,086 | 9,453 | 26,126 | 26,976 | 8,658 | 11,513 | 27,193 | 35,120 | 7,856 | 22,990 | 25,270 | 46,201 | ||||
Operating income (loss) | ($20,763) | ' | ($28,437) | ($48,471) | ($56,367) | ($9,393) | ($72) | ($23,036) | $767 | ($522) | ($1,477) | ($2,715) | ($1,915) | ($2,829) | ($3,360) | ($7,527) | ($7,358) | ($8,019) | ($23,528) | ($15,193) | ($47,861) | ||||
[1] | Quarters ended September 30, 2014 quarter ended September 30, 2014Components of Revenue License Fees5,925 10,503Service Revenue28,232 38,455Net Revenue34,157 48,958 9 months ended 9 months ended September 30, 2014 September 30, 2013Components of Revenue License Fees$21,168 $33,494Service Revenue99,538 122,107Net Revenue$120,706 $155,601 | ||||||||||||||||||||||||
[2] | Components of Cost of RevenueSeptember 30, 2014 September 30, 2013 License Fees2,044 2,062 Service Revenue16,884 16,928 Net Revenue Costs18,928 18,990 9 months ended 6 months ended September 30, 2014 September 30, 2013Components of Cost of Revenue License Fees$6,426 $6,377Service Revenue52,074 52,638Net Revenue Costs$58,500 $59,015 |
Segment_Information_Revenue_by
Segment Information (Revenue by Geographic Region) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Geographic Reporting Disclosure [Line Items] | ' | ' | ' | ' | ||||
Revenue | $34,157 | [1] | $48,958 | [1] | $120,706 | [1] | $155,601 | [1] |
United States | ' | ' | ' | ' | ||||
Geographic Reporting Disclosure [Line Items] | ' | ' | ' | ' | ||||
Revenue | 12,280 | 21,039 | 47,800 | 70,525 | ||||
Europe | ' | ' | ' | ' | ||||
Geographic Reporting Disclosure [Line Items] | ' | ' | ' | ' | ||||
Revenue | 5,749 | 8,750 | 21,129 | 29,278 | ||||
KOREA, REPUBLIC OF | ' | ' | ' | ' | ||||
Geographic Reporting Disclosure [Line Items] | ' | ' | ' | ' | ||||
Revenue | 9,728 | 11,839 | 31,114 | 32,062 | ||||
Rest of World | ' | ' | ' | ' | ||||
Geographic Reporting Disclosure [Line Items] | ' | ' | ' | ' | ||||
Revenue | $6,400 | $7,330 | $20,663 | $23,736 | ||||
[1] | Quarters ended September 30, 2014 quarter ended September 30, 2014Components of Revenue License Fees5,925 10,503Service Revenue28,232 38,455Net Revenue34,157 48,958 9 months ended 9 months ended September 30, 2014 September 30, 2013Components of Revenue License Fees$21,168 $33,494Service Revenue99,538 122,107Net Revenue$120,706 $155,601 |
Segment_Information_LongLived_
Segment Information (Long-Lived Assets by Geographic Region) (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Long-Lived Assets by Geographical Areas [Line Items] | ' | ' |
Long-lived assets | $47,023 | $53,641 |
United States | ' | ' |
Long-Lived Assets by Geographical Areas [Line Items] | ' | ' |
Long-lived assets | 35,375 | 40,347 |
Europe | ' | ' |
Long-Lived Assets by Geographical Areas [Line Items] | ' | ' |
Long-lived assets | 7,352 | 8,280 |
KOREA, REPUBLIC OF | ' | ' |
Long-Lived Assets by Geographical Areas [Line Items] | ' | ' |
Long-lived assets | 655 | 936 |
Rest of World | ' | ' |
Long-Lived Assets by Geographical Areas [Line Items] | ' | ' |
Long-lived assets | $3,641 | $4,078 |