Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Mar. 12, 2015 | Jun. 30, 2014 |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2014 | ||
Entity Registrant Name | EVOLVING SYSTEMS INC | ||
Trading Symbol | evol | ||
Entity Central Index Key | 1052054 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Common Stock, Shares Outstanding | 11,666,405 | ||
Entity Public Float | $65.90 | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Well-known Seasoned Issuer | No |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $9,781 | $13,785 |
Contract receivables, net of allowance for doubtful accounts of $43 and $73 at December 31, 2014 and December 31, 2013, respectively | 9,182 | 6,420 |
Unbilled work-in-progress, net of allowance of $306 and $317 at December 31, 2014 and December 31, 2013, respectively | 4,995 | 2,423 |
Prepaid and other current assets | 1,331 | 1,173 |
Deferred income taxes | 80 | 131 |
Total current assets | 25,369 | 23,932 |
Property and equipment, net | 659 | 342 |
Amortizable intangible assets, net | 608 | 702 |
Goodwill | 17,010 | 17,936 |
Long-term restricted cash | 24 | |
Long-term deferred income taxes | 586 | 248 |
Total assets | 44,232 | 43,184 |
Current liabilities: | ||
Current portion of capital lease obligations | 5 | 8 |
Accounts payable and accrued liabilities | 4,460 | 4,479 |
Income taxes payable | 1,227 | 459 |
Unearned revenue | 3,883 | 4,287 |
Total current liabilities | 9,575 | 9,233 |
Long-term liabilities: | ||
Capital lease obligations, net of current portion | 7 | 11 |
Contingent earn-out obligation | 178 | 178 |
Unearned revenue - Long term | 420 | 1,027 |
Total liabilities | 10,180 | 10,449 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, $0.001 par value; 2,000,000 shares authorized; no shares issued and outstanding as of December 31, 2014 and December 31, 2013 | ||
Common stock, $0.001 par value; 40,000,000 shares authorized; 11,843,564 shares issued and 11,664,675 outstanding as of December 31, 2014 and 11,779,507 shares issued and 11,600,618 outstanding as of December 31, 2013 | 12 | 12 |
Additional paid-in capital | 96,005 | 93,895 |
Treasury stock 178,889 shares, at December 31, 2014 and December 31, 2013, at cost | -1,253 | -1,253 |
Accumulated other comprehensive loss | -4,534 | -3,016 |
Accumulated deficit | -56,178 | -56,903 |
Total stockholders' equity | 34,052 | 32,735 |
Total liabilities and stockholders' equity | $44,232 | $43,184 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Consolidated Balance Sheets [Abstract] | ||
Allowance for doubtful accounts receivable | $43 | $73 |
Unbilled work-in-progress, allowance | $306 | $317 |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 2,000,000 | 2,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares issued | 11,843,564 | 11,779,507 |
Common stock, shares outstanding | 11,664,675 | 11,600,618 |
Treasury Stock, Shares | 178,889 | 178,889 |
Consolidated_Statements_Of_Inc
Consolidated Statements Of Income (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
REVENUE | |||
License fees and services | $19,738 | $15,998 | $17,622 |
Customer support | 9,942 | 9,095 | 8,625 |
Total revenue | 29,680 | 25,093 | 26,247 |
COSTS OF REVENUE AND OPERATING EXPENSES | |||
Costs of license fees and services, excluding depreciation and amortization | 5,782 | 5,565 | 6,734 |
Costs of customer support, excluding depreciation and amortization | 1,866 | 1,599 | 1,502 |
Sales and marketing | 5,734 | 5,364 | 5,070 |
General and administrative | 3,638 | 3,644 | 3,613 |
Product development | 3,643 | 2,956 | 3,069 |
Depreciation | 246 | 155 | 268 |
Amortization | 95 | 211 | 400 |
Restructuring and other recovery | 237 | 558 | |
Total costs of revenue and operating expenses | 21,241 | 20,052 | 20,656 |
Income from operations | 8,439 | 5,041 | 5,591 |
Other income (expense) | |||
Interest income | 19 | 11 | 60 |
Interest income, related party | 532 | ||
Interest expense | -17 | -20 | -3 |
Other income (expense) | -27 | 87 | |
Gain on sale of investments | 891 | ||
Foreign currency exchange loss | -9 | -39 | -106 |
Other income (expense), net | -34 | 39 | 1,374 |
Income before income taxes | 8,405 | 5,080 | 6,965 |
Income tax expense | 2,797 | 1,274 | 1,401 |
Net income | $5,608 | $3,806 | $5,564 |
Basic income per common share - net income | $0.48 | $0.33 | $0.49 |
Diluted income per common share - net income | $0.47 | $0.32 | $0.48 |
Cash dividends declared per common share | $0.42 | $0.36 | $2 |
Weighted average basic shares outstanding | 11,642 | 11,459 | 11,278 |
Weighted average diluted shares outstanding | 11,926 | 11,756 | 11,529 |
Consolidated_Statements_Of_Com
Consolidated Statements Of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Consolidated Statements Of Comprehensive Income [Abstract] | |||
Net income | $5,608 | $3,806 | $5,564 |
Other comprehensive income: | |||
Foreign currency translation gain (loss) | -1,518 | 281 | 950 |
Unrealized gains on available-for-sale securities | |||
Unrealized holding gain arising during the year | 452 | ||
Other comprehensive income (loss), before tax | -1,518 | 281 | 1,402 |
Income tax expense related to components of other comprehensive income | -168 | ||
Other comprehensive income (loss), net of tax | -1,518 | 281 | 1,234 |
Comprehensive income | $4,090 | $4,087 | $6,798 |
Consolidated_Statements_Of_Cha
Consolidated Statements Of Changes In Stockholders' Equity (USD $) | Common Stock [Member] | Additional Paid-In Capital [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated (Deficit) [Member] | Total |
In Thousands, except Share data | ||||||
Balance at Dec. 31, 2011 | $11 | $90,062 | ($1,253) | ($4,531) | ($39,577) | $44,712 |
Balance, shares at Dec. 31, 2011 | 11,135,604 | |||||
Stock option exercises | 622 | 622 | ||||
Stock option exercises, shares | 238,077 | |||||
Common Stock issued pursuant to the Employee Stock Purchase Plan | 7 | 7 | ||||
Common Stock issued pursuant to the Employee Stock Purchase Plan, shares | 1,413 | |||||
Stock-based compensation expense | 264 | 264 | ||||
Excess tax benefits from stock-based compensation | 1,002 | 1,002 | ||||
Restricted stock issuance, net of cancellations, shares | 12,126 | |||||
Common stock cash dividends | -22,569 | -22,569 | ||||
Net income | 5,564 | 5,564 | ||||
Net unrealized losses on investments, related party, net of tax | 284 | 284 | ||||
Foreign currency translation adjustment | 950 | 950 | ||||
Balance at Dec. 31, 2012 | 11 | 91,957 | -1,253 | -3,297 | -56,582 | 30,836 |
Balance, shares at Dec. 31, 2012 | 11,387,220 | |||||
Stock option exercises | 1 | 487 | 488 | |||
Stock option exercises, shares | 123,179 | 123,000 | ||||
Common Stock issued pursuant to the Employee Stock Purchase Plan | 6 | 6 | ||||
Common Stock issued pursuant to the Employee Stock Purchase Plan, shares | 1,582 | |||||
Stock-based compensation expense | 288 | 288 | ||||
Issuance of common stock related to acquisition | 741 | 741 | ||||
Issuance of common stock related to acquisition, shares | 71,387 | |||||
Excess tax benefits from stock-based compensation | 416 | 416 | ||||
Restricted stock issuance, net of cancellations, shares | 17,250 | |||||
Common stock cash dividends | -4,127 | -4,127 | ||||
Net income | 3,806 | 3,806 | ||||
Foreign currency translation adjustment | 281 | 281 | ||||
Balance at Dec. 31, 2013 | 12 | 93,895 | -1,253 | -3,016 | -56,903 | 32,735 |
Balance, shares at Dec. 31, 2013 | 11,600,618 | |||||
Stock option exercises | 245 | 245 | ||||
Stock option exercises, shares | 56,186 | 82,000 | ||||
Common Stock issued pursuant to the Employee Stock Purchase Plan | 55 | 55 | ||||
Common Stock issued pursuant to the Employee Stock Purchase Plan, shares | 7,352 | |||||
Stock-based compensation expense | 401 | 401 | ||||
Issuance of common stock related to acquisition | 19 | 19 | ||||
Issuance of common stock related to acquisition, shares | 1,832 | |||||
Excess tax benefits from stock-based compensation | 1,390 | 1,390 | ||||
Restricted stock cancellations, shares | -1,313 | |||||
Common stock cash dividends | -4,883 | -4,883 | ||||
Net income | 5,608 | 5,608 | ||||
Foreign currency translation adjustment | -1,518 | -1,518 | ||||
Balance at Dec. 31, 2014 | $12 | $96,005 | ($1,253) | ($4,534) | ($56,178) | $34,052 |
Balance, shares at Dec. 31, 2014 | 11,664,675 |
Consolidated_Statements_Of_Cas
Consolidated Statements Of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $5,608 | $3,806 | $5,564 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Depreciation | 246 | 155 | 268 |
Amortization of intangible assets | 95 | 211 | 400 |
Amortization of debt issuance costs | 15 | 18 | 1 |
Stock-based compensation | 401 | 288 | 264 |
Accretion of discount on marketable securities | -6 | ||
Gain on sale of marketable securities | -891 | ||
Unrealized foreign currency transaction (gains) and losses, net | 9 | 39 | 106 |
Provision for doubtful accounts | 27 | ||
Provision for unbilled work-in-progress allowance | 114 | 288 | |
Expense from deferred income taxes | -282 | -257 | -340 |
Change in operating assets and liabilities: | |||
Contract receivables | -3,398 | -1,514 | -310 |
Unbilled work-in-progress | -2,977 | 2,444 | -3,652 |
Prepaid and other assets | -214 | -28 | 468 |
Accounts payable and accrued liabilities | 985 | -204 | -461 |
Unearned revenue | -888 | 3,543 | -1,894 |
Net cash provided by (used in) operating activities | -400 | 8,615 | -168 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchase of property and equipment | -588 | -270 | -79 |
Business combinations, net of cash | -412 | ||
Proceeds from sale of marketable securities, related party | 17,831 | ||
Restricted cash | 24 | 53 | |
Net cash provided by (used in) investing activities | -564 | -629 | 17,752 |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Capital lease payments | -8 | -5 | -12 |
Common stock cash dividends | -4,883 | -4,127 | -44,841 |
Excess tax benefits from stock-based compensation | 1,390 | 416 | 1,000 |
Proceeds from the issuance of stock | 300 | 494 | 630 |
Net cash used in financing activities | -3,201 | -3,222 | -43,223 |
Effect of exchange rate changes on cash | 161 | 177 | 193 |
Net (decrease) increase in cash and cash equivalents | -4,004 | 4,941 | -25,446 |
Cash and cash equivalents at beginning of year | 13,785 | 8,844 | 34,290 |
Cash and cash equivalents at end of year | 9,781 | 13,785 | 8,844 |
Supplemental disclosure of cash and non-cash investing and financing transactions: | |||
Interest paid | 1 | 2 | 3 |
Income taxes paid | 182 | 69 | 712 |
Common stock dividends declared | 4,966 | 4,191 | 22,569 |
Property and equipment purchased and included in accounts payable | 191 | 1 | |
Final cash payment related to acquisition | 494 | ||
Issuance of common stock related to acquisition | 19 | 761 | |
Contingent consideration related to acquisition | $178 |
Organization_And_Summary_Of_Si
Organization And Summary Of Significant Accounting Policies | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Organization And Summary Of Significant Accounting Policies [Abstract] | ||||||||||||||
Organization And Summary Of Significant Accounting Policies | NOTE 1 — ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||||||
Organization — We are a provider of software solutions and services to the wireless, wireline and cable markets. We maintain long-standing relationships with many of the largest wireless, wireline and cable companies worldwide. Our customers rely on us to develop, deploy, enhance, maintain and integrate complex, highly reliable software solutions for a range of Operations Support Systems (“OSS”). We offer software products and solutions focused on activation and provisioning: our service activation solution, TertioTM (“TSA”) used to activate complex bundles of voice, video and data services for traditional and next generation wireless and wireline networks; our SIM card activation solution, Dynamic SIM Allocation TM (“DSA”) used to dynamically allocate and assign resources to wireless devices that rely on SIM cards; our cloud-based (SaaS) service activation, self–service mobile applications and data enablement solutions to wireless carriers and Mobile Virtual Network Operators (MVNOs); our connected devices activation solution, Intelligent M2M Controller that supports the activation of M2M devices with intermittent or infrequent usage patterns; and our number inventory solution, Total Number Management™, (TNM) a scalable and fully automated solution that enables operators to reliably and efficiently manage their telephone numbers (i.e. SIMs, MSISDNs, IMSIs, ICCIDs, IPs) as well as other communication identifiers such as URLs and email addresses. | ||||||||||||||
Reclassifications - Certain reclassifications have been made to the 2013 financial statements to conform to the consolidated 2014 financial statement presentation. These reclassifications had no effect on net earnings or cash flows as previously reported. | ||||||||||||||
Business Combination — On October 24, 2013 we acquired privately held Telespree, now known as Evolving Systems Labs, for an initial payment of approximately $1.6 million comprised of approximately $0.8 million in cash and approximately $0.8 million in stock. We also agreed to make a subsequent payment of $0.5 million, subject to reduction for certain claims, which has not been paid to date. We will potentially make additional payments in cash on the achievement of certain financial targets for the period from October 25, 2013 through October 24, 2016. This business combination is reflected in these consolidated financial statements since the acquisition date. Refer to Note 3, Acquisition, for more information regarding the acquisition. | ||||||||||||||
We account for business combinations in accordance with the acquisition method. The acquisition method of accounting requires that assets acquired and liabilities assumed be recorded at their fair values on the date of a business acquisition. The excess of the purchase price over the fair value of assets acquired is recognized as goodwill. Certain adjustments to the assessed fair values of the assets and liabilities made subsequent to the acquisition date, but within the measurement period, which is up to one year, are recorded as adjustments to goodwill. Any adjustments subsequent to the measurement period are recorded in income. Our consolidated financial statements and results of operations reflect an acquired business from the completion date of an acquisition. | ||||||||||||||
The judgments that we make in determining the estimated fair value assigned to each class of assets acquired and liabilities assumed, as well as asset lives, can materially impact net income in periods following a business combination. We generally use either the income, cost or market approach to aid in our conclusions of such fair values and asset lives. The income approach presumes that the value of an asset can be estimated by the net economic benefit to be received over the life of the asset, discounted to present value. The cost approach presumes that an investor would pay no more for an asset than its replacement or reproduction cost. The market approach estimates value based on what other participants in the market have paid for reasonably similar assets. Although each valuation approach is considered in valuing the assets acquired, the approach ultimately selected is based on the characteristics of the asset and the availability of information. | ||||||||||||||
We record contingent consideration resulting from a business combination at its fair value on the acquisition date. Each reporting period thereafter, we revalue these obligations and record increases or decreases in their fair value as an adjustment to net change in contingent consideration obligation within the consolidated statement of income. Changes in the fair value of the contingent consideration obligation can result from updates in the achievement of financial targets and changes to the weighted probability of achieving those future financial targets. Significant judgment is employed in determining the appropriateness of these assumptions as of the acquisition date and for each subsequent period. Accordingly, any change in the assumptions described above, could have a material impact on the amount of the net change in contingent consideration obligation that we record in any given period. | ||||||||||||||
Principles of Consolidation — The consolidated financial statements include the accounts of Evolving Systems, Inc. and subsidiaries, all of which are wholly owned. All significant intercompany transactions and balances have been eliminated in consolidation. | ||||||||||||||
Use of Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities, at the date of the financial statements, as well as the reported amounts of revenue and expenses during the reporting period. We made estimates with respect to revenue recognition for estimated hours to complete projects accounted for using the percentage-of-completion method, allowance for doubtful accounts, income tax valuation allowance, fair values of long-lived assets, valuation of intangible assets and goodwill, useful lives for property, equipment and intangible assets, business combinations, capitalization of internal software development costs and fair value of stock-based compensation amounts. Actual results could differ from these estimates. | ||||||||||||||
Foreign Currency — Our functional currency is the U.S. dollar. The functional currency of our foreign operations, generally, is the respective local currency for each foreign subsidiary. Assets and liabilities of foreign operations denominated in local currencies are translated at the spot rate in effect at the applicable reporting date. Our consolidated balance sheets are translated at the spot rate of exchange during the applicable period. Our consolidated statements of operations are translated at the weighted average rate of exchange during the applicable period. The resulting unrealized cumulative translation adjustment is recorded as a component of accumulated other comprehensive income (loss) in stockholders’ equity. Realized and unrealized transaction gains and losses generated by transactions denominated in a currency different from the functional currency of the applicable entity are recorded in other income (loss) in the period in which they occur. | ||||||||||||||
Goodwill − Goodwill is the excess of acquisition cost of an acquired entity over the fair value of the identifiable net assets acquired. Goodwill is not amortized, but tested for impairment annually or whenever indicators of impairment exist. These indicators may include a significant change in the business climate, legal factors, operating performance indicators, competition, sale or disposition of a significant portion of the business or other factors. For purposes of the goodwill evaluation, we compare the fair value of each of our reporting units to its respective carrying amount. If the carrying value of a reporting unit were to exceed its fair value, we would then compare the fair value of the reporting unit’s goodwill to its carrying amount, and any excess of the carrying amount over the fair value would be charged to operations as an impairment loss. | ||||||||||||||
Intangible Assets − Amortizable intangible assets consist primarily of purchased software and licenses, customer contracts and relationships, trademarks and tradenames, and business partnerships acquired in conjunction with our purchase of Evolving Systems U.K. and Evolving Systems Labs. These assets are amortized using the straight-line method over their estimated lives. | ||||||||||||||
We assess the impairment of identifiable intangibles if events or changes in circumstances indicate that the carrying value of the asset may not be recoverable. | ||||||||||||||
If we determine that the carrying value of intangibles and/or long-lived assets may not be recoverable, we compare the estimated undiscounted cash flows expected to result from the use of the asset and its eventual disposition to the asset’s carrying amount. If an amortizable intangible or long-lived asset is not deemed to be recoverable, we recognize an impairment loss representing the excess of the asset’s carrying value over its estimated fair value. | ||||||||||||||
Fair Value Measurements − Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: | ||||||||||||||
Level 1 — Quoted prices in active markets for identical assets or liabilities. | ||||||||||||||
Level 2 — Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | ||||||||||||||
Level 3 — Inputs that are generally unobservable and typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability. | ||||||||||||||
The valuation techniques used to measure our marketable debt securities were derived from quoted prices in active markets for identical assets or liabilities. Refer to Note 2, Investments, for more information. | ||||||||||||||
Cash and Cash Equivalents - All highly liquid investments with maturities of three months or less at the date of purchase are classified as cash equivalents. | ||||||||||||||
Revenue Recognition − We recognize revenue when an agreement is signed, the fee is fixed or determinable and collectability is reasonably assured. We recognize revenue from two primary sources: license fees and services, and customer support. The majority of our license fees and services revenue is generated from fixed-price contracts, which provide for licenses to our software products and services to customize such software to meet our customers’ use. When the customization services are determined to be essential to the functionality of the delivered software, we recognize revenue using the percentage-of-completion method of accounting. In these types of arrangements, we do not typically have vendor specific objective evidence (“VSOE”) of fair value on the license fee/services portion (services are related to customizing the software) of the arrangement due to the large amount of customization required by our customers; however, we do have VSOE for the warranty/maintenance services based on the renewal rate of the first year of maintenance in the arrangement. The license/services portion is recognized using the percentage-of-completion method of accounting and the warranty/maintenance services are separated based on the renewal rate in the contract and recognized ratably over the warranty or maintenance period. We estimate the percentage-of-completion for each contract based on the ratio of direct labor hours incurred to total estimated direct labor hours and recognize revenue based on the percent complete multiplied by the contract amount allocated to the license fee/services. Since estimated direct labor hours, and changes thereto, can have a significant impact on revenue recognition, these estimates are critical and we review them regularly. If the arrangement includes a customer acceptance provision, the hours to complete the acceptance testing are included in the total estimated direct labor hours; therefore, the related revenue is recognized as the acceptance testing is performed. Revenue is not recognized in full until the customer has provided proof of acceptance on the arrangement. Generally, our contracts are accounted for individually. However, when certain criteria are met, it may be necessary to account for two or more contracts as one to reflect the substance of the group of contracts. We record amounts billed in advance of services being performed as unearned revenue. Unbilled work-in-progress represents revenue earned but not yet billable under the terms of the fixed-price contracts. All such amounts are expected to be billed and collected within 12 months. | ||||||||||||||
We may encounter budget and schedule overruns on fixed-price contracts caused by increased labor or overhead costs. We make adjustments to cost estimates in the period in which the facts requiring such revisions become known. We record estimated losses, if any, in the period in which current estimates of total contract revenue and contract costs indicate a loss. If revisions to cost estimates are obtained after the balance sheet date but before the issuance of the interim or annual financial statements, we make adjustments to the interim or annual financial statements accordingly. | ||||||||||||||
In arrangements where the services are not essential to the functionality of the delivered software, we recognize license revenue when a license agreement has been signed, delivery and acceptance have occurred, the fee is fixed or determinable and collectability is reasonably assured. Where applicable, we unbundle and record as revenue fees from multiple element arrangements as the elements are delivered to the extent that VSOE of fair value of the undelivered elements exist. If VSOE for the undelivered elements does not exist, we defer fees from such arrangements until the earlier of the date that VSOE does exist on the undelivered elements or all of the elements have been delivered. | ||||||||||||||
We recognize revenue from fixed-price service contracts using the proportional performance method of accounting, which is similar to the percentage-of-completion method described above. We recognize revenue from professional services provided pursuant to time-and-materials based contracts and training services as the services are performed, as that is when our obligation to our customers under such arrangements is fulfilled. | ||||||||||||||
We recognize revenue from our MDE contracts based on the number of transactions per month multiplied by a factor based on a unique table for transaction volumes relating to each account. | ||||||||||||||
We recognize customer support, including maintenance revenue, ratably over the service contract period. When maintenance is bundled with the original license fee arrangement, its fair value, based upon VSOE, is deferred and recognized during the periods when services are provided. | ||||||||||||||
Stock-based Compensation − We account for stock-based compensation by applying a fair-value-based measurement method to account for share-based payment transactions with employees and directors. We record compensation costs associated with the vesting of unvested options on a straight-line basis over the vesting period. Stock-based compensation is a non-cash expense because we settle these obligations by issuing shares of our common stock instead of settling such obligations with cash payments. We use the Black-Scholes model to estimate the fair value of each option grant on the date of grant. This model requires the use of estimates for expected term of the options and expected volatility of the price of our common stock. | ||||||||||||||
Comprehensive Income - Comprehensive income consists of two components, net income and other comprehensive income. Other comprehensive income refers to revenue, expenses, gains, and losses that under GAAP are recorded as an element of shareholders’ equity but are excluded from net income. Other comprehensive income consists of foreign currency translation adjustments from those subsidiaries not using the U.S. dollar as their functional currency and unrealized gains and losses on marketable securities categorized as available-for-sale. | ||||||||||||||
Restricted Cash — As of December 31, 2014 we no longer had restricted cash. As of December 31, 2013, we had $24,000 of restricted cash related to securing a letter of credit for our San Francisco, California lease that has since expired. | ||||||||||||||
Contract Receivables, Unbilled Work-in-Progress and Allowance for Doubtful Accounts — Contract receivables are recorded at the invoiced amount and do not bear interest. Credit is extended based on the evaluation of a customer’s financial condition and collateral is not required. Unbilled work in progress is revenue which has been earned but not invoiced. An allowance is placed against accounts receivable or unbilled work in progress for our best estimate of the amount of probable credit losses. We determine the allowance based on historical write-off experience and information received during collection efforts. We review our allowances monthly and past due balances over 90 days are reviewed individually for collectability. Account balances are charged against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. We do not have any off-balance-sheet credit exposure related to our customers. | ||||||||||||||
The following table reflects the activity in the allowance for doubtful accounts: | ||||||||||||||
Balance at | Bad Debt | Write-Offs Charged | Effects of Foreign Currency | Balance at | ||||||||||
Fiscal | Beginning | Expense/ | to | Exchange | End of | |||||||||
Year | Description | of Period | (Recovery) | Allowance | Rates | Period | ||||||||
2014 | Allowance for doubtful accounts | $ 73 | $ - | $ (25) | $ (5) | $ 43 | ||||||||
2013 | Allowance for doubtful accounts | $ 70 | $ - | $ - | $ 3 | $ 73 | ||||||||
2012 | Allowance for doubtful accounts | $ 52 | $ 27 | $ - | $ (9) | $ 70 | ||||||||
The following table reflects the activity in the allowance for unbilled work-in-progress: | ||||||||||||||
Balance at | Unbilled Work-in-Progress | Write-Offs Charged | Effects of Foreign Currency | Balance at | ||||||||||
Fiscal | Beginning | Allowance/ | to | Exchange | End of | |||||||||
Year | Description | of Period | (Recovery) | Allowance | Rates | Period | ||||||||
2014 | Allowance for unbilled work-in-progress | $ 317 | $ - | $ - | $ (11) | $ 306 | ||||||||
2013 | Allowance for unbilled work-in-progress | $ 295 | $ 114 | $ (114) | $ 22 | $ 317 | ||||||||
2012 | Allowance for unbilled work-in-progress | $ - | $ 288 | $ - | $ 7 | $ 295 | ||||||||
Long Term Deferred Revenue — Long term deferred revenue are amounts which revenue will not be recognized within twelve months of the balance sheet date. As of December 31, 2014 and 2013, we had $0.4 million and $1.0 million, respectively, reported in the accompanying consolidated balance sheets. | ||||||||||||||
Concentration of Credit Risk — Financial instruments that potentially subject us to concentrations of credit risk consist primarily of contract receivables and unbilled work-in-progress. We perform on-going evaluations of customers’ financial condition and, generally, require no collateral from customers. | ||||||||||||||
A substantial portion of our revenue is from a limited number of customers, all in the telecommunications industry. | ||||||||||||||
For the year ended December 31, 2014, two significant customers (defined as contributing at least 10%) accounted for 24% (13% and 11%) of revenue from continuing operations. These customers are large telecommunications operators in Europe and Mexico. For the year ended December 31, 2013 one significant customer accounted for 12% of revenue from continuing operations. This customer is a large telecommunications operator in Europe. For the year ended December 31, 2012 three significant customers accounted for 39% (15%, 14% and 10%) of revenue from continuing operations. These customers are large telecommunications operators in Europe, the Commonwealth of Independent States and Mexico. | ||||||||||||||
As of December 31, 2014, three significant customers accounted for approximately 55% (26%, 16% and 13%) of contract receivables and unbilled work-in-progress. These customers are large telecommunications operators in Africa, Mexico and Europe. At December 31, 2013, four significant customers accounted for approximately 56% (18%, 15%, 12% and 11%) of contract receivables and unbilled work-in-progress. These customers are large telecommunications operators in Africa, Europe, Brazil and Europe. | ||||||||||||||
We are subject to concentration of credit risk with respect to our cash and cash equivalents, which we attempt to minimize by maintaining our cash and cash equivalents with institutions of sound financial quality. At times, cash balances may exceed limits federally insured by the Federal Deposit Insurance Corporation (“FDIC”). | ||||||||||||||
Our funds not under any FDIC program were $9.3 million and $13.5 million as of December 31, 2014 and December 31, 2013, respectively. | ||||||||||||||
Sales, Use and Other Value Added Tax — Revenue is recorded net of applicable state, use and other value added taxes. | ||||||||||||||
Advertising and Promotion Costs — Advertising and promotion costs are expensed as incurred. Advertising costs totaled approximately $0.2 million for the years ended December 31, 2014, 2013 and 2012. | ||||||||||||||
Capitalization of Internal Software Development Costs — We expend amounts on product development, particularly for new products and/or for enhancements of existing products. For internal development of software products that are to be licensed by us, we expense the cost of developing software prior to establishing technological feasibility and those costs are capitalized once technological feasibility has been established. Capitalization ceases upon general release of the software. The determination of whether internal software development costs are subject to capitalization is, by its nature, highly subjective and involves significant judgments. This decision could significantly affect earnings during the development period. Further, once capitalized, the software costs are generally amortized on a straight-line basis over the estimated economic life of the product. The determination of the expected useful life of a product is highly judgmental. Finally, capitalized software costs must be assessed for impairment if facts and circumstances warrant such a review. We did not capitalize any internal software development costs during the years ended December 31, 2014, 2013, or 2012. In addition, we did not have any capitalized internal software development costs included in our December 31, 2014 and 2013 Consolidated Balance Sheets. We believe that during these periods no material internal software development costs were required to be capitalized. Our conclusion is primarily based on the fact that the feature−rich, pre−integrated, and highly−scalable nature of our products requires that our development efforts include complex design, coding and testing methodologies, which include next generation software languages and development tools. Development projects of this nature carry a high degree of development risk. Substantially all of our internal software development efforts are of this nature, and therefore, we believe the period between achieving technological feasibility and the general release of the software to operations is so short that any costs incurred during this period are not material. | ||||||||||||||
Property and Equipment and Long-Lived Assets — Property and equipment are stated at cost or estimated fair value if acquired in an acquisition, less accumulated depreciation, and are depreciated over their estimated useful lives, or the lease term, if shorter, using the straight-line method. Leasehold improvements are stated at cost, less accumulated amortization, and are amortized over the shorter of the lease term or estimated useful life of the asset. Maintenance and repair costs are expensed as incurred. | ||||||||||||||
We review our long-lived assets, such as property and equipment and purchased intangible assets subject to amortization, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. We evaluate the recoverability of an asset or asset group by comparing its carrying amount to the estimated undiscounted future cash flows expected to be generated by the asset or asset group. If the carrying amount of an asset or asset group exceeds its estimated future cash flows, we recognize an impairment charge as the amount by which the carrying amount of the asset exceeds the estimated fair value of the asset. | ||||||||||||||
Income Taxes — We record deferred tax assets and liabilities for the estimated future tax effects of temporary differences between the tax bases of assets and liabilities and amounts reported in the accompanying consolidated balance sheets, as well as operating loss and tax credit carry-forwards. We measure deferred tax assets and liabilities using enacted tax rates expected to be applied to taxable income in the years in which those temporary differences are expected to be recovered or settled. We reduce deferred tax assets by a valuation allowance if, based on available evidence, it is more likely than not that these benefits will not be realized. | ||||||||||||||
We use a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. | ||||||||||||||
Recent Accounting Pronouncements — In July 2013, the FASB issued ASU 2013-11 regarding ASC Topic 740 “Income Tax.” This ASU clarifies the guidance on the presentation of an unrecognized tax benefit, or a portion of an unrecognized tax benefit, in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. This ASU became effective for our fiscal year beginning January 1, 2014. We adopted this pronouncement as of January 1, 2014. The adoption of this standard had no material effect on our financial position or results of operations. | ||||||||||||||
In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers,” Topic 606. This Update affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets, unless those contracts are within the scope of other standards. The guidance in this Update supersedes the revenue recognition requirements in Topic 605, Revenue Recognition and most industry-specific guidance. The core principle of the guidance is that an entity should recognize revenue to illustrate the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new guidance also includes a cohesive set of disclosure requirements that will provide users of financial statements with comprehensive information about the nature, amount, timing, and uncertainty of revenue and cash flows arising from a reporting organization’s contracts with customers. This ASU is effective retrospectively for fiscal years, and interim periods within those years beginning after December 15, 2016 for public companies and 2017 for non-public entities. We do not expect the adoption of this standard to have a significant impact on the Company’s financial position and results of operations. | ||||||||||||||
Investments
Investments | 12 Months Ended |
Dec. 31, 2014 | |
Investments [Abstract] | |
Investments | NOTE 2 — INVESTMENTS |
As of April 23, 2012 all investments in marketable securities were sold for approximately $17.8 million and we realized a gain on sale of approximately $0.9 million. We had no interest receivable as of December 31, 2014 and 2013. | |
Acquisition
Acquisition | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Acquisition [Abstract] | |||||||||||
Acquisition | NOTE 3 — ACQUISITION | ||||||||||
On October 24, 2013 we acquired privately held Telespree, now known as Evolving Systems Labs, Inc., for an initial payment of approximately $1.6 million, comprised of approximately $0.8 million in cash and approximately $0.8 million in stock. We also agreed to make a subsequent payment of $0.5 million, subject to reduction for certain claims which has not been made to date. We will potentially make additional payments in cash on the achievement of certain financial targets for the period from October 25, 2013 through October 24, 2016. | |||||||||||
We accounted for this business combination by applying the acquisition method, and accordingly, the purchase price was allocated to the assets and liabilities assumed based upon their fair values at the acquisition date. The excess of the purchase price over the net assets and liabilities, approximately $1.1 million, was recorded as goodwill. The results of Telespree's operations have been included in the consolidated financial statements since the acquisition date. | |||||||||||
We believe this acquisition complements our activation and SIM management products, adding technology used in the delivery and management of mobile data services to end-users. | |||||||||||
Total purchase price is summarized as follows: | |||||||||||
24-Oct-13 | |||||||||||
Cash Consideration | $ | 794 | |||||||||
Final Cash Payment | 494 | ||||||||||
Stock Consideration (73,281 shares) | 761 | ||||||||||
Estimated Contingent Consideration | 178 | ||||||||||
Total purchase price | $ | 2,227 | |||||||||
The fair value of the 73,281 common shares issued was determined based on the closing market price of our common shares on the acquisition date. | |||||||||||
The estimated contingent consideration arrangement requires us to pay $0.2 million of additional consideration to Evolving Systems Labs, Inc.’s former shareholders if we meet certain performance metrics over the three years following the acquisition date. In each of the years, the former shareholders are entitled to a deferred payment equal to 34 percent of all qualifying revenue in excess of the qualifying revenue threshold for such deferred payment period. The initial qualifying revenue threshold is $2.3 million, but shall be increased in subsequent years if the qualified revenue falls under the qualifying revenue threshold in the previous period. | |||||||||||
The contingent consideration was valued using the Income Approach-Probability Weighted Expected Payment. Multiple forecasted scenarios were evaluated which include (i) an upside case, (ii) a base case and (iii) a downside case. We determined the potential Deferred Payment cash flows of Evolving Systems Labs, Inc. based on each scenario. The cash flow payments were converted to a present value using a discount rate of 5 percent based on the cost of debt. Finally, we probability weighted each scenario. | |||||||||||
The following table summarizes the estimated fair values of the assets and liabilities assumed at the acquisition date: | |||||||||||
24-Oct-13 | |||||||||||
Cash and cash equivalents | $ | 382 | |||||||||
Contract receivables | 210 | ||||||||||
Unbilled work-in-progress | 150 | ||||||||||
Intangible assets | 718 | ||||||||||
Prepaid and other current assets | 37 | ||||||||||
Deferred tax asset | 98 | ||||||||||
Other assets, non-current | 43 | ||||||||||
Total identifiable assets acquired | $ | 1,638 | |||||||||
Accounts payable and accrued liabilities | $ | 504 | |||||||||
Assumed liabilities | 4 | ||||||||||
Total identifiable assets acquired | $ | 508 | |||||||||
Net identifiable assets acquired | 1,130 | ||||||||||
Goodwill | 1,097 | ||||||||||
Net assets acquired | $ | 2,227 | |||||||||
The $1.1 million of goodwill was assigned to the license and service segment. The goodwill recognized is attributed primarily to expected synergies and the assembled workforce of Evolving Systems Labs, Inc. As of December 31, 2014 there were no changes in the recognized amounts of goodwill resulting from the acquisition of Evolving Systems Labs, Inc. | |||||||||||
We recorded $0.7 million in intangible assets as of the acquisition date with a weighted-average amortization period of five to eight years and are amortizing the value of the trade name, technology, and customer relationships over an estimated useful life of 3.8, 4.6 and 4.6 years, respectively. Amortization expense related to the acquired intangible assets resulting from the acquisition, which is included in amortization expense, was approximately $0.1 million and $16,000 for the year ended December 31, 2014 and 2013, respectively. | |||||||||||
Intangible assets related to the Evolving Systems Labs, Inc. acquisition as of December 31, 2014 were as follows (in thousands): | |||||||||||
31-Dec-14 | |||||||||||
Gross Amount | Accumulated Amortization | Net Carrying Amount | Weighted-Average Amortization Period | ||||||||
Purchased software | $ | 439 | $ | 64 | $ | 375 | 4.6 yrs | ||||
Trademarks and tradenames | 63 | 15 | 48 | 3.8 yrs | |||||||
Customer relationships | 216 | 31 | 185 | 4.6 yrs | |||||||
$ | 718 | $ | 110 | $ | 608 | 4.54 yrs | |||||
Goodwill_And_Intangible_Assets
Goodwill And Intangible Assets | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Goodwill And Intangible Assets [Abstract] | ||||||||||||||||||||
Goodwill And Intangible Assets | NOTE 4 — GOODWILL AND INTANGIBLE ASSETS | |||||||||||||||||||
Changes in the carrying amount of goodwill by reporting unit were as follows (in thousands): | ||||||||||||||||||||
License and Services | Customer Support | Total | ||||||||||||||||||
U.S. | UK | UK | Goodwill | |||||||||||||||||
Balance as of December 31, 2012 | $ | - | $ | 7,385 | $ | 9,125 | $ | 16,510 | ||||||||||||
Goodwill acquired during the year | 1,097 | - | - | 1,097 | ||||||||||||||||
Effects of changes in foreign | ||||||||||||||||||||
currency exchange rates | - | 147 | 182 | 329 | ||||||||||||||||
Balance as of December 31, 2013 | $ | 1,097 | $ | 7,532 | $ | 9,307 | $ | 17,936 | ||||||||||||
Effects of changes in foreign | ||||||||||||||||||||
currency exchange rates | - | -414 | -512 | -926 | ||||||||||||||||
Balance as of December 31, 2014 | $ | 1,097 | $ | 7,118 | $ | 8,795 | $ | 17,010 | ||||||||||||
We conducted our annual goodwill impairment test as of July 31, 2014, and we determined that goodwill was not impaired as of the test date. From July 31, 2014 through December 31, 2014, we believe no events have occurred that may have impaired goodwill. | ||||||||||||||||||||
Evolving Systems Labs identifiable intangible assets are amortized on a straight-line basis over estimated lives ranging from five to eight years. As of December 31, 2014 Evolving Systems Labs’ identifiable intangibles were as follows (in thousands): | ||||||||||||||||||||
Evolving Systems Labs | 31-Dec-14 | 31-Dec-13 | ||||||||||||||||||
Gross Amount | Accumulated Amortization | Net Carrying Amount | Gross Amount | Accumulated Amortization | Net Carrying Amount | Weighted-Average Amortization Period | ||||||||||||||
Purchased software | $ | 439 | $ | 64 | $ | 375 | $ | 439 | $ | 9 | $ | 430 | 4.6 yrs | |||||||
Trademarks and tradenames | 63 | 15 | 48 | 63 | 2 | 61 | 3.8 yrs | |||||||||||||
Customer relationships | 216 | 31 | 185 | 216 | 5 | 211 | 4.6 yrs | |||||||||||||
$ | 718 | $ | 110 | $ | 608 | $ | 718 | $ | 16 | $ | 702 | 4.54 yrs | ||||||||
Amortization expense of identifiable intangible assets was $0.1 million, $0.2 million and $0.4 million for the years ended December 31, 2014, 2013 and 2012, respectively. Expected future amortization expense related to identifiable intangibles based on our carrying amount as of December 31, 2014 was as follows (in thousands): | ||||||||||||||||||||
Year ending December 31, | ||||||||||||||||||||
2015 | $ | 94 | ||||||||||||||||||
2016 | 94 | |||||||||||||||||||
2017 | 94 | |||||||||||||||||||
2018 | 94 | |||||||||||||||||||
2019 | 82 | |||||||||||||||||||
Thereafter | 150 | |||||||||||||||||||
$ | 608 | |||||||||||||||||||
Balance_Sheet_Components
Balance Sheet Components | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Balance Sheet Components [Abstract] | ||||||
Balance Sheet Components | NOTE 5 — BALANCE SHEET COMPONENTS | |||||
The components of certain balance sheet line items are as follows (in thousands): | ||||||
December 31, | ||||||
Property and equipment: | 2014 | 2013 | ||||
Computer equipment and purchased software | $ | 4,796 | $ | 4,361 | ||
Furniture, fixtures and leasehold improvements | 1,078 | 1,094 | ||||
5,874 | 5,455 | |||||
Less accumulated depreciation | -5,215 | -5,113 | ||||
$ | 659 | $ | 342 | |||
December 31, | ||||||
Assets acquired under capital lease: | 2014 | 2013 | ||||
Original book value | $ | 24 | $ | 24 | ||
Accumulated amortization | -13 | -8 | ||||
Net book value | $ | 11 | $ | 16 | ||
Depreciation expense was $0.2 million, $0.2 million and $0.3 million for each of the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||
Included in computer equipment and purchased software at December 31, 2014 and 2013 are assets under capital lease. Depreciation expense related to assets under capital leases was $5,000, $4,000 and $4,000 for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||
December 31, | ||||||
Accounts payable and accrued liabilities: | 2014 | 2013 | ||||
Accounts payable | $ | 729 | $ | 729 | ||
Accrued liabilities | 2,366 | 2,129 | ||||
Accrued compensation and related expenses | 1,365 | 1,621 | ||||
$ | 4,460 | $ | 4,479 | |||
LongTerm_Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2014 | |
Long-Term Debt [Abstract] | |
Long-Term Debt | NOTE 6 – LONG-TERM DEBT |
On October 31, 2014, we entered into an amendment to the $5.0 million Loan and Security Agreement (the “Revolving Facility”). The $5.0 million Revolving Facility bears interest at the greater of 2.75% or the U.S.A. Prime Rate minus one half of one percent (0.5%). Prime Rate was 3.25% as of December 31, 2014. The Revolving Facility is secured by all assets of Evolving Systems, including a pledge, subject to certain limitations with respect to stock of foreign subsidiaries, of the stock of the existing and future direct subsidiaries of Evolving Systems. There is no mandated borrowing required against the Revolving Facility. To take an advance under the Revolving Facility, we must have a balance of $3.0 million in cash on deposit and have quarterly net income and a specified ratio of current assets to current liabilities, as defined in the Revolving Facility. The Revolving Facility requires us to pay an annual credit facility fee of $10,000. All accrued interest on outstanding borrowings under the Revolving Facility is paid monthly, with any outstanding balance due with a final maturity of October 22, 2016. As of the date of this report, there was no borrowing outstanding under this Revolving Facility. | |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Income Taxes [Abstract] | |||||||||
Income Taxes | NOTE 7 − INCOME TAXES | ||||||||
The pre-tax income (loss) from continuing operations on which the provision for income taxes was computed is as follows (in thousands): | |||||||||
For the Years Ended December 31, | |||||||||
2014 | 2013 | 2012 | |||||||
Domestic | $ | -1,274 | $ | -1,347 | $ | 2,568 | |||
Foreign | 9,679 | 6,427 | 4,397 | ||||||
Total | $ | 8,405 | $ | 5,080 | $ | 6,965 | |||
The expense (benefit) from continuing operations for income taxes consists of the following (in thousands): | |||||||||
For the Years Ended December 31, | |||||||||
2014 | 2013 | 2012 | |||||||
Current: | |||||||||
Federal | $ | 1,468 | $ | 441 | $ | 1,061 | |||
Foreign | 1,637 | 1,015 | 541 | ||||||
State | -26 | 70 | 139 | ||||||
Total current | 3,079 | 1,526 | 1,741 | ||||||
Deferred: | |||||||||
Federal | -301 | -66 | -732 | ||||||
Foreign | 19 | -178 | 459 | ||||||
State | 0 | -8 | -67 | ||||||
Total deferred | -282 | -252 | -340 | ||||||
Total | $ | 2,797 | $ | 1,274 | $ | 1,401 | |||
As of December 31, 2014, we had federal Net Operating Loss (“NOL”) carryforwards of approximately $2.3 million related to U.S. federal and state jurisdictions. The federal net operating loss carryforwards expire at various times beginning in 2022 and ending in 2033. As of December 31, 2014 and 2013, we had state NOL’s of approximately $27.9 million and $31.3 million, respectively. The state NOL carryforwards expire at various times beginning in 2018 and ending in 2033. In addition, we have research and experimentation credit carryforwards of approximately $0.3 million which may expire in 2018. The Company uses the incremental approach to recognizing excess tax benefits associated with equity compensation. Our $2.3 million of federal NOL’s are primarily windfall excess tax benefit related to stock compensation expense, the benefit of which, if realized, will be an increase to Additional Paid-in Capital (“APIC”) as opposed to a reduction in tax expense. During the year 2014, $1.4 million of the federal NOL was realized and increased additional paid-in capital. Also in 2014, Evolving Systems was subject to alternative minimum tax in the amount of $0.1 million. A deferred tax asset in this amount has been established but has a full valuation allowance as of December 31, 2014. The Internal Revenue Code places certain limitations on the annual amount of NOL’s which can be utilized if certain changes in ownership occur. Changes in our ownership have not occurred, and our NOL’s are not limited as of December 31, 2014. | |||||||||
Excess Tax Benefits | Tax | ||||||||
if realized will be | Net Operating | ||||||||
Year | credited to APIC | Losses | |||||||
2006 | $ | 1,089 | $ | 1,089 | |||||
2007 | 1,199 | 1,199 | |||||||
$ | 2,288 | $ | 2,288 | ||||||
Unrecognized Tax Benefit on Equity Compensation | $ | -2,288 | |||||||
Reduced NOL for Financial Statement Presentation | $ | 0 | |||||||
Deferred tax assets and liabilities reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our deferred tax assets and liabilities are as follows (in thousands): | |||||||||
As of December 31, | |||||||||
2014 | 2013 | ||||||||
Deferred tax assets: | |||||||||
Net operating loss carryforwards | $ | 555 | $ | 2,565 | |||||
Research and development credits | 303 | 303 | |||||||
Equity compensation | 661 | 616 | |||||||
AMT/MAT credit | 942 | 996 | |||||||
Depreciable assets | 107 | 178 | |||||||
Intangibles | 203 | 91 | |||||||
Accrued liabilities and reserves | 607 | 180 | |||||||
Total deferred tax assets | 3,378 | 4,929 | |||||||
Deferred tax liabilities: | |||||||||
Undistributed foreign earnings | -897 | -777 | |||||||
Accrued liabilities and reserves | -16 | -42 | |||||||
Total deferred tax liability | -913 | -819 | |||||||
Net deferred tax assets, before valuation allowance | 2,465 | 4,110 | |||||||
Valuation allowance | -1,799 | -3,731 | |||||||
Net deferred tax asset | $ | 666 | $ | 379 | |||||
Financial statement classification: | |||||||||
Current deferred tax asset | $ | 80 | $ | 131 | |||||
Long-term tax asset | 586 | 248 | |||||||
$ | 666 | $ | 379 | ||||||
In conjunction with the acquisition of Evolving Systems Labs in October 2013, we recorded certain identifiable intangible assets. We established a deferred tax asset of $0.1 million at the acquisition date for the expected difference between what would be expensed for financial reporting purposes and what would be deductible for income tax purposes. As of December 31, 2014 and 2013, this deferred tax asset was $0.1 million and $0.2 million, respectively. This deferred tax asset will be recognized as the identifiable intangibles are amortized. | |||||||||
We continue to maintain a full valuation allowance on the domestic net deferred tax asset as we have determined it is more likely than not that we will not realize our domestic deferred tax assets. Such assets primarily consist of certain net state operating loss carryforwards, AMT credits and research and development credits. We assessed the realizability of our domestic deferred tax assets using all available evidence. In particular, we considered both historical results and projections of profitability for the reasonably foreseeable future periods. We are required to reassess our conclusions regarding the realization of our deferred tax assets at each financial reporting date. A future evaluation could result in a conclusion that all or a portion of the valuation allowance is no longer necessary which could have a material impact on our results of operations and financial position. | |||||||||
The benefit for income taxes differs from the amount computed by applying the U.S. federal income tax rate of 34% to income before income taxes as follows (in thousands): | |||||||||
For the Years Ended December 31, | |||||||||
2014 | 2013 | 2012 | |||||||
U.S. federal income tax expense at statutory rates | $ | 4,595 | $ | 2,143 | $ | 3,368 | |||
State income tax expense, net of federal impact | 542 | 46 | 139 | ||||||
Foreign rate differential | -1,452 | -332 | -96 | ||||||
Foreign deemed dividends | 1,783 | 871 | 452 | ||||||
Undistributed foreign earnings | - | - | 158 | ||||||
Change in valuation allowance | -1,971 | -492 | -1,986 | ||||||
Research and development expenses | -867 | -859 | -976 | ||||||
Foreign taxes | 53 | 93 | 288 | ||||||
Undistributed foreign earnings assertion | 0 | - | -856 | ||||||
Permanent differences and other, net | 114 | -196 | 910 | ||||||
Total tax expense | $ | 2,797 | $ | 1,274 | $ | 1,401 | |||
The Company recognizes the tax benefit from an uncertain tax position when it determines that it is more likely than not that the position would be sustained upon examination by taxing authorities. | |||||||||
As of December 31, 2014 and 2013, we had no liability for unrecognized tax benefits. We do not believe there will be any material changes to our unrecognized tax positions over the next twelve months. Interest and penalties related to income tax liabilities are included as a component of income tax expense (benefit) in the accompanying statements of operations. | |||||||||
Our income taxes payable have been reduced by the AMT tax benefits from employee stock plan awards. We had no net excess tax benefits from employee stock plan awards for the years ended December 31, 2014 and 2013, which was reflected as an increase to additional paid-in capital. | |||||||||
We conduct business globally and, as a result, Evolving Systems Inc. or one or more of our subsidiaries file income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. In the normal course of business, we are subject to examination by taxing authorities throughout the world, namely the United Kingdom, Germany and India. Although carryovers can always be subject to review by taxing authorities, we are no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations for years before 2011. During 2004, we formed Evolving Systems India, a wholly owned subsidiary of Evolving Systems which is used primarily for product development. | |||||||||
Management is considering applying an indirect foreign tax credit for the foreign taxes paid to the United Kingdom in the years ended December 31, 2014, December 31, 2013, and December 31, 2012. To quantify the availability of the foreign tax credit for these three years and to fully analyze the related advantages and disadvantages requires substantial quantitative and qualitative analysis that Management currently plans to perform during 2015. As such, the Company has not recorded a deferred tax asset for future foreign tax credit benefits. | |||||||||
The Company has the intent and current ability to indefinitely reinvest profits of Evolving Systems India for the year ended December 31, 2014. Undistributed foreign earnings for the year ended December 31, 2014 are approximately $0.5 million. Repatriation to the U.S. in the form of dividend distributions from the India controlled foreign subsidiary would give rise to taxation. | |||||||||
Stockholders_Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2014 | |
Stockholders' Equity [Abstract] | |
Stockholders' Equity | NOTE 8 − STOCKHOLDERS’ EQUITY |
Common Stock Dividends | |
Our Board of Directors declared a cash dividend of $0.10 per share during the first and second quarters of 2014 and a cash dividend of $0.11 per share during the third and fourth quarters of 2014. There were no accrued dividends as of December 31, 2014. | |
Any determination to declare a future quarterly dividend, as well as the amount of any cash dividend which may be declared, will be based on our financial position, earnings, earnings outlook and other relevant factors at that time, including applicable limits under our revolving credit facility or any other credit facility then in effect. | |
Treasury Stock | |
Beginning on May 20, 2011, and continuing through December 31, 2013, we had the ability through our stock purchase program to re-purchase our common stock at prevailing market prices either in the open market or through privately negotiated transactions up to $5.0 million. The size and timing of such purchases, if any, was based on market and business conditions as well as other factors. We were not obligated to purchase any shares. The re-purchase program expired on December 31, 2013. | |
From the inception of the plan through December 31, 2013, we purchased 178,889 shares of our common stock for $1.3 million or an average price of $6.97 per share. | |
Certain Anti-Takeover Provisions/Agreements with Stockholders | |
Our restated certificate of incorporation allows the board of directors to issue up to 2,000,000 shares of preferred stock and to determine the price, rights, preferences and privileges of those shares without any further vote or action by our stockholders. The rights of the holders of our common stock will be subject to, and may be adversely affected by, the rights of the holders of any preferred stock that may be issued in the future. Issuance of preferred stock, while providing desired flexibility in connection with possible acquisitions and other corporate purposes could make it more difficult for a third party to acquire a majority of our outstanding voting stock. As of December 31, 2014 and December 31, 2013, no shares of preferred stock were outstanding. | |
In addition, we are subject to the anti-takeover provisions of Section 203 of Delaware General Corporation Law which prohibit us from engaging in a “business combination” with an “interested stockholder” for a period of three years after the date of the transaction in which the person became an interested stockholder, unless the business combination is approved in the prescribed manner. The application of Section 203 may have the effect of delaying or preventing changes in control of our management, which could adversely affect the market price of our common stock by discouraging or preventing takeover attempts that might result in the payment of a premium price to our stockholders. | |
ShareBased_Compensation
Share-Based Compensation | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Share-Based Compensation [Abstract] | ||||||||||||||
Share-Based Compensation | NOTE 9 — SHARE-BASED COMPENSATION | |||||||||||||
We account for stock-based compensation by applying a fair-value-based measurement method to account for share-based payment transactions with employees and directors, and record compensation cost for all stock awards granted after January 1, 2006 and awards modified, repurchased, or cancelled after that date, using the modified prospective method. We record compensation costs associated with the vesting of unvested options on a straight-line basis over the vesting period. We recognized $0.4 million, $0.3 million and $0.3 million for the years ended December 31, 2014, 2013 and 2012, respectively, of compensation expense in the consolidated statements of operations, with respect to our stock-based compensation plans. The following table summarizes stock-based compensation expenses recorded in the statement of operations (in thousands): | ||||||||||||||
For the Years Ended December 31, | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Cost of license fees and services, excluding | ||||||||||||||
depreciation and amortization | $ | 73 | $ | 29 | $ | 18 | ||||||||
Cost of customer support, excluding | ||||||||||||||
depreciation and amortization | 8 | 4 | 4 | |||||||||||
Sales and marketing | 31 | 24 | 23 | |||||||||||
General and administrative | 181 | 207 | 200 | |||||||||||
Product development | 108 | 24 | 19 | |||||||||||
Total share based compensation | $ | 401 | $ | 288 | $ | 264 | ||||||||
Stock Option/Incentive Plans | ||||||||||||||
In January 1996, our stockholders approved an Amended and Restated Stock Option Plan (the “Option Plan”). Under the Option Plan, as amended, 4,175,000 shares were reserved for issuance. Options issued under the Option Plan were at the discretion of the Board of Directors, including the vesting provisions of each stock option granted. Options were granted with an exercise price equal to the closing price of our common stock on the date of grant, generally vest over four years and expire no more than ten years from the date of grant. The Option Plan terminated on January 18, 2006; options granted before that date were not affected by the plan termination. At December 31, 2014 and 2013, 0.1 million and 0.2 million options remained outstanding under the Option Plan, respectively. | ||||||||||||||
In June 2007, our stockholders approved the 2007 Stock Incentive Plan (the “2007 Stock Plan”) with a maximum of 1,000,000 shares reserved for issuance. In June 2010, our stockholders approved an amendment to the 2007 Stock Plan which increased the maximum shares that may be awarded under the plan to 1,250,000. In June 2013, our stockholders approved an amendment to the 2007 Stock Plan which increased the maximum shares that may be awarded under the plan to 1,502,209. Awards permitted under the 2007 Stock Plan include: Stock Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, Performance Awards and Other Stock-Based Awards. Awards issued under the 2007 Stock Plan are at the discretion of the Board of Directors. As applicable, awards are granted with an exercise price equal to the closing price of our common stock on the date of grant, generally vest over four years for employees and one year for directors and, with respect to stock option grants expire no more than ten years from the date of grant. At December 31, 2014 and 2013, there were approximately 0.1 million and 0.2 million shares, respectively, available for grant under the 2007 Stock Plan, which amounts reflect adjustments made in 2012 as a result of our special dividends (see details below). At December 31, 2014 and 2013, 0.6 million and 0.5 million options were issued and outstanding under the 2007 Stock Plan, respectively. | ||||||||||||||
During the year ended December 31, 2013 we awarded a total of 18,500 shares of restricted stock to members of our Board of Directors and senior management. No shares of restricted stock were awarded during the year ended December 31, 2014. During the years ended December 31, 2014 and 2013, approximately 8,000 and 25,000 shares of restricted stock vested, respectively. There were forfeitures of approximately 1,000 shares of restricted stock during years ended December 31, 2014 and 2013. The fair market value for stock-based compensation expense is equal to the closing price of our common stock on the date of grant. The restrictions on the stock award are released generally over four years for senior management and over one year for board members. Stock-based compensation expense includes $0.1 million, $0.2 million and $0.1 million for the years ended December 31, 2014, 2013 and 2012, respectively for restricted stock. | ||||||||||||||
As described above, on November 10, 2011, we declared a special cash dividend of $2.00 per share on all of our issued and outstanding common stock, or an aggregate of approximately $22.3 million, which was paid on January 3, 2012. In connection with the special dividend, the Compensation Committee of the Board of Directors of the Company approved anti-dilution adjustments to outstanding stock option awards pursuant to the Company’s equity-based compensation plans to take into account the payment of the special cash dividend. Outstanding stock option awards were adjusted on January 3, 2012 (the ex-dividend date), by reducing the exercise price and increasing the number of shares issuable upon the exercise of each option, in accordance with safe harbor provisions of Section 409A of the Internal Revenue Code, such that the aggregate difference between the market price and exercise price times the number of shares issuable upon exercise was substantially the same immediately before and after the payment of the special dividend. The antidilution modification made with respect to such options resulted in a decrease in the weighted average exercise price from $7.46 to $5.80 and an increase in the aggregate number of shares issuable upon exercise of such options by 45,749. Since our Stock Plan permits, but does not require, antidilution modifications, (ASC) 718, Compensation — Stock Compensation requires a comparison of the fair value of each award immediately prior to and after the date of modification, assuming the value immediately prior to modification contains no antidilution protection, and the value immediately after modification contains full antidilution protection. This comparison resulted in no aggregate difference or additional compensation expense in the twelve months ended December 31, 2012. | ||||||||||||||
On May 8, 2012, we declared a special cash dividend of $1.70 per share on all of the issued and outstanding common stock, or an aggregate of approximately $19.5 million, which was paid on May 29, 2012. In connection with the special dividend, the Compensation Committee of the Board of Directors of the Company approved anti-dilution adjustments to outstanding stock option awards pursuant to the Company’s equity-based compensation plans to take into account the payment of the special cash dividend. Outstanding stock option awards were adjusted on May 18, 2012 (the ex-dividend date), by reducing the exercise price and increasing the number of shares issuable upon the exercise of each option, in accordance with safe harbor provisions of Section 409A of the Internal Revenue Code, such that the aggregate difference between the market price and exercise price times the number of shares issuable upon exercise was substantially the same immediately before and after the payment of the special dividend. The antidilution modification made with respect to such options resulted in a decrease in the weighted average exercise price from $5.80 to $4.53 and an increase in the aggregate number of shares issuable upon exercise of such options by 64,069. Since our Stock Plan permits, but does not require, antidilution modifications, (ASC) 718, Compensation — Stock Compensation requires a comparison of the fair value of each award immediately prior to and after the date of modification, assuming the value immediately prior to modification contains no antidilution protection, and the value immediately after modification contains full antidilution protection. This comparison resulted in no aggregate difference or additional compensation expense in the twelve months ended December 31, 2012. The fair value of each option grant is estimated on the date of grant using the Black-Scholes model. The Black-Scholes model uses four assumptions to calculate the fair value of each option grant. The expected term of share options granted is derived using the simplified method, which we adopted in January 2008. The risk-free interest rate is based upon the rate currently available on zero-coupon U.S. Treasury instruments with a remaining term equal to the expected term of the stock options. The expected volatility is based upon historical volatility of our common stock over a period equal to the expected term of the stock options. The expected dividend yield is based upon historical and anticipated payment of dividends. The weighted-average assumptions used in the fair value calculations are as follows: | ||||||||||||||
For the Years Ended December 31, | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Expected term (years) | 5.9 | 6.1 | 5.7 | |||||||||||
Risk-free interest rate | 1.69 | % | 1.31 | % | 0.84 | % | ||||||||
Expected volatility | 55.88 | % | 59.17 | % | 65.23 | % | ||||||||
Expected dividend yield | 4.0 | % | 4.1 | % | 3.5 | % | ||||||||
The following is a summary of stock option activity under the stock option plans for the years ended December 31, 2014 and 2013: | ||||||||||||||
Weighted- | ||||||||||||||
Average | ||||||||||||||
[1] | Weighted- | Remaining | Aggregate | |||||||||||
Number of | Average | Contractual | Intrinsic | |||||||||||
Shares | Exercise | Term | Value | |||||||||||
(in thousands) | Price | (Years) | (in thousands) | |||||||||||
Options outstanding at December 31, 2012 | 704 | $ 4.86 | 4.60 | $ 1,757 | ||||||||||
Options granted | 123 | $ 8.21 | ||||||||||||
Less options forfeited | -28 | $ 17.30 | ||||||||||||
Less options exercised | -123 | $ 3.99 | ||||||||||||
Options outstanding at December 31, 2013 | 676 | $ 5.11 | 4.76 | $ 3,491 | ||||||||||
Options granted | 168 | $ 10.15 | ||||||||||||
Less options forfeited | -132 | $ 12.20 | ||||||||||||
Less options exercised | -82 | $ 5.31 | ||||||||||||
Options outstanding at December 31, 2014 | 630 | $ 4.94 | 5.69 | $ 2,959 | ||||||||||
Options exercisable at December 31, 2014 | 461 | $ 3.33 | 4.53 | $ 2,833 | ||||||||||
__________________________ | ||||||||||||||
[1] In 2012, the balance of options outstanding was increased by 109,818 options due to the aforementioned anti-dilution adjustments to outstanding stock option awards. | ||||||||||||||
The following is a summary of stock options outstanding under the plans as of December 31, 2014: | ||||||||||||||
Stock Options | ||||||||||||||
Stock Options Outstanding | Exercisable | |||||||||||||
Weighted Avg. | ||||||||||||||
Number of | Remaining | Weighted Avg. | Number of | Weighted Avg. | ||||||||||
Range of | Shares | Contractual Life | Exercise | Shares | Exercise | |||||||||
Exercise Prices | (in thousands) | (years) | Price | (in thousands) | Price | |||||||||
$ | 0.01 | - | $ | 3.42 | 269 | 2.87 | $ 1.52 | 269 | $ 1.52 | |||||
$ | 3.43 | - | $ | 6.85 | 169 | 6.33 | $ 4.58 | 142 | $ 4.36 | |||||
$ | 6.86 | - | $ | 10.28 | 81 | 9.11 | $ 8.90 | 18 | $ 8.66 | |||||
$ | 10.29 | - | $ | 13.70 | 111 | 9.05 | $ 10.89 | 32 | $ 10.89 | |||||
630 | 5.69 | $ 4.94 | 461 | $ 3.33 | ||||||||||
The weighted-average grant-date fair value of stock options granted during the years ended December 31, 2014, 2013 and 2012 was $3.80, $3.16 and $2.45 respectively. | ||||||||||||||
As of December 31, 2014, there were approximately $0.5 million of total unrecognized compensation costs related to unvested stock options and restricted stock. These costs are expected to be recognized over a weighted average period of 2.7 years. | ||||||||||||||
The total intrinsic value of stock option exercises for the years ended December 31, 2014, 2013 and 2012 was $0.4 million, $0.6 million and $0.8 million, respectively. The total fair value of stock awards vested during the years ended December 31, 2014, 2013 and 2012 was $0.3 million, $0.1 million and $0.2 million, respectively. | ||||||||||||||
The deferred income tax benefits from stock options expense related to Evolving Systems U.K. totaled approximately $15,000, $15,000 and $14,000 for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||||
Cash received from stock option exercises was $0.2 million, $0.5 million and $0.6 million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||||
During the year ended December 31, 2014, we had net settlement exercises of stock options, whereby the optionee did not pay cash for the options but instead received the number of shares equal to the difference between the exercise price and the market price on the date of exercise. Net settlement exercises during the year ended December 31, 2014, resulted in approximately 7,094 shares issued and 26,376 options cancelled in settlement of shares issued. There were no net settlement exercises during the years ended December 31, 2013 or 2012. | ||||||||||||||
Employee Stock Purchase Plan | ||||||||||||||
Under the Employee Stock Purchase Plan (“ESPP”), we are authorized to issue up to 550,000 shares of our common stock to full-time employees, nearly all of whom are eligible to participate. Under the terms of the ESPP, employees may elect to have up to 15% of their gross compensation withheld through payroll deduction to purchase our common stock, capped at $25,000 annually and no more than 10,000 shares per offering period. The purchase price of the stock is 85% of the lower of the market price at the beginning or end of each three-month participation period. As of December 31, 2014, there were approximately 61,000 shares available for purchase. For the years ended December 31, 2014, 2013 and 2012, we recorded compensation expense of $17,000, $2,000 and $2,000, respectively, associated with grants under the ESPP which includes the fair value of the look-back feature of each grant as well as the 15% discount on the purchase price. This expense fluctuates each period primarily based on the level of employee participation. | ||||||||||||||
For the Years Ended December 31, | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Expected term (years) | 0.25 | 0.25 | 0.25 | |||||||||||
Risk-free interest rate | 0.03 | % | 0.05 | % | 0.08 | % | ||||||||
Expected volatility | 40.92 | % | 44.36 | % | 49.54 | % | ||||||||
Expected dividend yield | 4.5 | % | 4.0 | % | 3.4 | % | ||||||||
Cash received from employee stock plan purchases was approximately $68,000, $8,000 and $7,000 for the years ended December 31, 2014, 2013 and 2012, respectively. We issued shares related to the ESPP of approximately 9,000, 1,000 and 2,000 for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||||
Benefit_Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2014 | |
Benefit Plans [Abstract] | |
Benefit Plans | NOTE 10 — BENEFIT PLANS |
We have established a defined contribution retirement plan for our employees under section 401(k) of the Internal Revenue Code (the “401(k) Plan”) that is available to all U.S. employees 21 years of age or older with a month of service. Beginning in 2012, we adopted a Safe Harbor 401(k) requiring us to contribute 3% of the employee's compensation for each eligible employee, regardless of whether the employee chooses to participate in the plan. All employee contributions are fully vested immediately and employer contributions vest over a period of three years. Evolving Systems U.K. has established a defined contribution pension scheme that is available to all employees in their first full month of employment. Employees may contribute a percentage of their earnings, the amount of which is dependent upon the age of the employee, not to exceed the maximum statutory contribution amount. We match 5% of employee contributions. All contributions are immediately vested in their entirety. | |
During 2014, 2013 and 2012, we recorded a consolidated expense of $0.4 million, $0.3 million and $0.3 million, under the aforementioned plans, respectively. | |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Earnings Per Share | NOTE 11 — EARNINGS PER SHARE | ||||||||
Basic earnings per share (“EPS”) is computed by dividing net income or loss available to common stockholders by the weighted average number of shares of common stock outstanding during the period. Diluted EPS is computed using the weighted average number of shares of common stock outstanding, plus all potentially dilutive common stock equivalents using the treasury stock method. Common stock equivalents consist of stock options. The following is the reconciliation of the numerators and denominators of the basic and diluted EPS computations (in thousands except per share data): | |||||||||
For the Years Ended December, 31 | |||||||||
2014 | 2013 | 2012 | |||||||
Basic income (loss) per share: | |||||||||
Net income | $ | 5,608 | $ | 3,806 | $ | 5,564 | |||
Basic weighted average shares outstanding | 11,642 | 11,459 | 11,278 | ||||||
Basic income (loss) per share: | |||||||||
Net Income | $ | 0.48 | $ | 0.33 | $ | 0.49 | |||
Diluted income (loss) per share: | |||||||||
Net income | $ | 5,608 | $ | 3,806 | $ | 5,564 | |||
Weighted average shares outstanding | 11,642 | 11,459 | 11,278 | ||||||
Effect of dilutive securities - options | 284 | 297 | 251 | ||||||
Diluted weighted average shares outstanding | 11,926 | 11,756 | 11,529 | ||||||
Diluted income (loss) per share: | |||||||||
Net Income | $ | 0.47 | $ | 0.32 | $ | 0.48 | |||
Weighted average options to purchase approximately 0.1 million, 0.1 million and 0.2 million shares of common stock equivalents were excluded from the computation of diluted weighted average shares outstanding for the years ended December 31, 2014, 2013 and 2012, respectively, because the effect would have been anti-dilutive since their exercise prices were greater than the average market value of our common stock for the period. | |||||||||
Commitments_And_Contingencies
Commitments And Contingencies | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Commitments And Contingencies [Abstract] | ||||
Commitments And Contingencies | NOTE 12 — COMMITMENTS AND CONTINGENCIES | |||
(a)Lease Commitments | ||||
We lease office and operating facilities and equipment under non-cancelable operating leases. Current facility leases include our headquarters in Englewood, Colorado, London and Bath, England, Bangalore, India, and Kuala Lumpur, Malaysia. Rent expense was $0.6 million, $0.4 million and $0.5 million for the years ended December 31, 2014, 2013 and 2012, respectively. Rent expense is net of sublease rental income totaling $0.3 million for the year ended December 31, 2012. There were was no sublease rental income for the years ended December 31, 2014 and 2013. | ||||
We amended our headquarters facility lease and extended the term three years. The lease contains a clause that adjusts the lease rate every year. The lease rate increases annually as of December 1. Our Bath, England facility contains a clause that adjusted the lease rate one time over the five year term on September 27, 2012. We account for the effect of such escalating lease payments as if the lease rate were consistent over the lease term. Future minimum commitments under non-cancelable operating leases and capital leases gross of sublease payments as of December 31, 2014 are as follows (in thousands): | ||||
Operating Leases | Capital Leases | |||
2015 | $ 327 | $ 6 | ||
2016 | 106 | 6 | ||
2017 | 99 | 1 | ||
2018 | - | - | ||
Total minimum lease payments | $ 532 | 13 | ||
Less: Amount representing interest | -1 | |||
Principal balance of capital lease obligations | 12 | |||
Less: Current portion of capital lease obligations | -5 | |||
Long-term portion of capital lease obligations | $ 7 | |||
(b)Other Commitments | ||||
As permitted under Delaware law, we have agreements with officers and directors under which we agree to indemnify them for certain events or occurrences while the officer or director is, or was, serving at our request in this capacity. The term of the indemnification period is indefinite. There is no limit on the amount of future payments we could be required to make under these indemnification agreements; however, we maintain Director and Officer insurance policies, as well as an Employment Practices Liability Insurance Policy, that may enable us to recover a portion of any amounts paid. Accordingly, we did not record any liabilities for these agreements as of December 31, 2014 and 2013. | ||||
We enter into standard indemnification terms with customers and suppliers, as discussed below, in the ordinary course of business. As we may subcontract the development of deliverables under customer contracts, we could be required to indemnify customers for work performed by subcontractors. Depending upon the nature of the customer indemnification, the potential amount of future payments we could be required to make under these indemnification agreements may be unlimited. We may be able to recover damages from a subcontractor if the indemnification to customers results from the subcontractor’s failure to perform. To the extent we are unable to recover damages from a subcontractor, we could be required to reimburse the indemnified party for the full amount. We have never incurred costs to defend lawsuits or settle claims relating to indemnification arising out of subcontractors’ failure to perform. We did not record any liabilities for these agreements as of December 31, 2014 and 2013. | ||||
Our standard license agreements contain product warranties that the software will be free of material defects and will operate in accordance with the stated requirements for a limited period of time. The product warranty provisions require us to cure any defects through any reasonable means. We believe the estimated fair value of the product warranty provisions in the license agreements in place with our customers is minimal. Accordingly, we did not record any liabilities for these product warranty provisions as of December 31, 2014 and 2013. | ||||
Our software arrangements generally include a product indemnification provision whereby we will indemnify and defend a customer in actions brought against the customer for claims that our products infringe upon a copyright, trade secret, or valid patent. We have not historically incurred any significant costs related to product indemnification claims. Accordingly, we did not record any liabilities for these indemnification provisions as of December 31, 2014 and 2013. | ||||
In connection with our acquisition of Telespree on October 24, 2013, we agreed to make a cash payment of $0.5 million on the one year anniversary of the closing. This payment was subject to reduction for certain claims which has not been paid to date. | ||||
(c)Litigation | ||||
From time to time, we are involved in various legal matters arising in the normal course of business. We do not expect the outcome of such proceedings, either individually or in the aggregate, to have a material effect on our financial position, cash flows or results of operations. | ||||
Segment_Information
Segment Information | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Segment Information [Abstract] | |||||||||
Segment Information | NOTE 13 — SEGMENT INFORMATION | ||||||||
We define operating segments as components of our enterprise for which separate financial information is reviewed regularly by the chief operating decision-makers to evaluate performance and to make operating decisions. We have identified our Chief Executive Officer and Vice President of Finance as our chief operating decision-makers (“CODM”). These chief operating decision makers review revenue by segment and review overall results of operations. | |||||||||
We currently operate our business as two operating segments based on revenue type: license fees and services revenue and customer support revenue (as shown on the consolidated statements of operations). License fees and services (“L&S”) revenue represents the fees received from the license of software products and those services directly related to the delivery of the licensed products, such as fees for custom development, integration services and SaaS service. Customer support (“CS”) revenue includes annual support fees, recurring maintenance fees, fees for maintenance upgrades and warranty services. Warranty services that are similar to software maintenance services are typically bundled with a license sale. Total assets by segment have not been disclosed as the information is not available to the chief operating decision-makers. | |||||||||
Revenue information by segments was as follows (in thousands): | |||||||||
For the Years Ended December 31, | |||||||||
2014 | 2013 | 2012 | |||||||
Revenue | |||||||||
License fees and services | $ | 19,738 | $ | 15,998 | $ | 17,622 | |||
Customer support | 9,942 | 9,095 | 8,625 | ||||||
Total revenue | 29,680 | 25,093 | 26,247 | ||||||
Revenue less costs of revenue, excluding | |||||||||
depreciation and amortization | |||||||||
License fees and services | 13,956 | 10,433 | 10,888 | ||||||
Customer support | 8,076 | 7,496 | 7,123 | ||||||
22,032 | 17,929 | 18,011 | |||||||
Unallocated Costs | |||||||||
Other operating expenses | 13,015 | 11,964 | 11,752 | ||||||
Depreciation and amortization | 341 | 366 | 668 | ||||||
Restructuring and other recovery | 237 | 558 | - | ||||||
Interest income | -19 | -11 | -60 | ||||||
Interest income, related party | - | - | -532 | ||||||
Interest expense | 17 | 20 | 3 | ||||||
Other income (expense) | 27 | -87 | - | ||||||
Gain on sale of investments | - | - | -891 | ||||||
Foreign currency exchange (gain) loss | 9 | 39 | 106 | ||||||
Income from operations before income taxes | $ | 8,405 | $ | 5,080 | $ | 6,965 | |||
Geographic Regions | |||||||||
We are headquartered in Englewood, a suburb of Denver, Colorado. We use customer locations as the basis for attributing revenue to individual countries. We provide products and services on a global basis through our office in Colorado and U.K.-based Evolving Systems U.K. subsidiary. Additionally, personnel in Bangalore, India, provide software development services to our global operations. Financial information relating to operations by geographic region is as follows (in thousands): | |||||||||
For the Year Ended December 31, 2014 | |||||||||
Revenue | L&S | CS | Total | ||||||
United Kingdom | $ | 3,551 | $ | 2,017 | $ | 5,568 | |||
Nigeria | 2,954 | 473 | 3,427 | ||||||
Mexico | 2,478 | 722 | 3,200 | ||||||
Other | 10,755 | 6,730 | 17,485 | ||||||
Total revenues | $ | 19,738 | $ | 9,942 | $ | 29,680 | |||
For the Year Ended December 31, 2013 | |||||||||
Revenue | L&S | CS | Total | ||||||
United Kingdom | $ | 3,018 | $ | 1,903 | $ | 4,921 | |||
Other | 12,980 | 7,192 | 20,172 | ||||||
Total revenues | $ | 15,998 | $ | 9,095 | $ | 25,093 | |||
For the Year Ended December 31, 2012 | |||||||||
Revenue | L&S | CS | Total | ||||||
United Kingdom | $ | 3,938 | $ | 1,999 | $ | 5,937 | |||
Commonwealth of Independent States | 3,548 | - | 3,548 | ||||||
Mexico | 2,187 | 340 | 2,527 | ||||||
Other | 7,949 | 6,286 | 14,235 | ||||||
Total revenues | $ | 17,622 | $ | 8,625 | $ | 26,247 | |||
December 31, | December 31, | ||||||||
Long-lived assets, net | 2014 | 2013 | |||||||
United States | $ | 1,998 | $ | 1,840 | |||||
United Kingdom | 16,091 | 16,985 | |||||||
Other | 188 | 155 | |||||||
$ | 18,277 | $ | 18,980 | ||||||
Restructuring
Restructuring | 12 Months Ended |
Dec. 31, 2014 | |
Restructuring [Abstract] | |
Restructuring | NOTE 14 — RESTRUCTURING |
During the first quarter of 2014, we undertook a reduction in workforce involving the termination of employees resulting in an expense of $0.2 million primarily related to severance for the affected employees. The reduction in workforce was related to the consolidation of duplicative functions and alignment of staff with ongoing business activity as a result of the acquisition of Evolving Systems Labs, Inc. in the fourth quarter of 2013. Subsequently, an additional expense of $26,000 was incurred in the second quarter relating to the first quarter 2014 reduction in force. Restructuring expense of $0.6 million was recorded for the year ending December 31, 2013 primarily related to severance for a reduction in workforce. The reduction in workforce was related to the acquisition of Evolving Systems Labs, Inc. | |
As of December 31, 2014, $0.6 million has been paid. The restructuring liability was $0 and $0.4 million as of December 31, 2014 and 2013, respectively. | |
There was no restructuring expense during the year ended December 31, 2012. | |
Quarterly_Financial_Informatio
Quarterly Financial Information | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Quarterly Financial Information [Abstract] | |||||||||||||
Quarterly Financial Information | NOTE 15 — QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | ||||||||||||
Quarterly financial information is as follows (in thousands, except per share data): | |||||||||||||
First | Second | Third | Fourth | ||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||
Year Ended December 31, 2014 | |||||||||||||
Total revenue | $ | 6,582 | $ | 7,939 | $ | 7,560 | $ | 7,599 | |||||
Less: cost of revenue and operating expenses | 5,555 | 5,322 | 5,241 | 5,123 | |||||||||
Income from operations | 1,027 | 2,617 | 2,319 | 2,476 | |||||||||
Income before income taxes | 929 | 2,514 | 2,506 | 2,456 | |||||||||
Net income | $ | 651 | $ | 1,676 | $ | 1,679 | $ | 1,602 | |||||
Net income per common share: | |||||||||||||
Basic income per common share - net income | $ | 0.06 | $ | 0.14 | $ | 0.14 | $ | 0.14 | |||||
Diluted income per common share - net income | $ | 0.05 | $ | 0.14 | $ | 0.14 | $ | 0.13 | |||||
Year Ended December 31, 2013 | |||||||||||||
Total revenue | $ | 6,669 | $ | 5,785 | $ | 6,069 | $ | 6,570 | |||||
Less: cost of revenue and operating expenses | 4,888 | 4,533 | 4,604 | 6,027 | |||||||||
Income from operations | 1,781 | 1,252 | 1,465 | 543 | |||||||||
Income before income taxes | 1,735 | 1,438 | 1,356 | 551 | |||||||||
Net income | $ | 1,173 | $ | 909 | $ | 920 | $ | 804 | |||||
Net income per common share: | |||||||||||||
Basic income per common share - net income | $ | 0.10 | $ | 0.08 | $ | 0.08 | $ | 0.07 | |||||
Diluted income per common share - net income | $ | 0.10 | $ | 0.08 | $ | 0.08 | $ | 0.07 | |||||
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2014 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 16 — RELATED PARTY TRANSACTIONS |
During the year ended December 31, 2011, we purchased $16.9 million of Primus Telecommunications Group, Inc. (“PTGI”) senior secured notes, net of purchase discounts, on the open market through a registered broker dealer. The Singer Family Trust, our largest shareholder, owned approximately 22% of our outstanding common shares and approximately 14% of the outstanding shares of PTGI. Richard Ramlall, then Senior Vice President of Corporate Development and Chief Communications Officer of PTGI, serves on our board of directors but is not on our Investment Committee of the Board and as such is not involved in any of our investment decisions nor is Mr. Ramlall involved with any oversight of the financial operations of PTGI. Mr. Ramlall’s employment with PTGI ended in September 2013. | |
During the years ended December 31, 2012 we recorded interest income of $0.5 million in our Consolidated Statements of Operations related to the PTGI senior secured notes. As of April 23, 2012 the investments were sold for approximately $17.8 million and we realized a gain on sale of approximately $0.9 million. | |
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 17 — SUBSEQUENT EVENTS |
On March 17, 2015, our Board of Directors declared a first quarter cash dividend of $0.11 per share, payable March 31, 2015, to stockholders of record on March 24, 2015. | |
We entered into a new facility lease for our London, England office. It has a three month rent free period at the beginning of its lease starting March 3, 2015 and is a ten year term with a break clause after five years. | |
Organization_And_Summary_Of_Si1
Organization And Summary Of Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2014 | |
Organization And Summary Of Significant Accounting Policies [Abstract] | |
Organization | Organization — We are a provider of software solutions and services to the wireless, wireline and cable markets. We maintain long-standing relationships with many of the largest wireless, wireline and cable companies worldwide. Our customers rely on us to develop, deploy, enhance, maintain and integrate complex, highly reliable software solutions for a range of Operations Support Systems (“OSS”). We offer software products and solutions focused on activation and provisioning: our service activation solution, TertioTM (“TSA”) used to activate complex bundles of voice, video and data services for traditional and next generation wireless and wireline networks; our SIM card activation solution, Dynamic SIM Allocation TM (“DSA”) used to dynamically allocate and assign resources to wireless devices that rely on SIM cards; our cloud-based (SaaS) service activation, self–service mobile applications and data enablement solutions to wireless carriers and Mobile Virtual Network Operators (MVNOs); our connected devices activation solution, Intelligent M2M Controller that supports the activation of M2M devices with intermittent or infrequent usage patterns; and our number inventory solution, Total Number Management™, (TNM) a scalable and fully automated solution that enables operators to reliably and efficiently manage their telephone numbers (i.e. SIMs, MSISDNs, IMSIs, ICCIDs, IPs) as well as other communication identifiers such as URLs and email addresses. |
Reclassifications | Reclassifications - Certain reclassifications have been made to the 2013 financial statements to conform to the consolidated 2014 financial statement presentation. These reclassifications had no effect on net earnings or cash flows as previously reported. |
Business Combination | Business Combination — On October 24, 2013 we acquired privately held Telespree, now known as Evolving Systems Labs, for an initial payment of approximately $1.6 million comprised of approximately $0.8 million in cash and approximately $0.8 million in stock. We also agreed to make a subsequent payment of $0.5 million, subject to reduction for certain claims, which has not been paid to date. We will potentially make additional payments in cash on the achievement of certain financial targets for the period from October 25, 2013 through October 24, 2016. This business combination is reflected in these consolidated financial statements since the acquisition date. Refer to Note 3, Acquisition, for more information regarding the acquisition. |
We account for business combinations in accordance with the acquisition method. The acquisition method of accounting requires that assets acquired and liabilities assumed be recorded at their fair values on the date of a business acquisition. The excess of the purchase price over the fair value of assets acquired is recognized as goodwill. Certain adjustments to the assessed fair values of the assets and liabilities made subsequent to the acquisition date, but within the measurement period, which is up to one year, are recorded as adjustments to goodwill. Any adjustments subsequent to the measurement period are recorded in income. Our consolidated financial statements and results of operations reflect an acquired business from the completion date of an acquisition. | |
The judgments that we make in determining the estimated fair value assigned to each class of assets acquired and liabilities assumed, as well as asset lives, can materially impact net income in periods following a business combination. We generally use either the income, cost or market approach to aid in our conclusions of such fair values and asset lives. The income approach presumes that the value of an asset can be estimated by the net economic benefit to be received over the life of the asset, discounted to present value. The cost approach presumes that an investor would pay no more for an asset than its replacement or reproduction cost. The market approach estimates value based on what other participants in the market have paid for reasonably similar assets. Although each valuation approach is considered in valuing the assets acquired, the approach ultimately selected is based on the characteristics of the asset and the availability of information. | |
We record contingent consideration resulting from a business combination at its fair value on the acquisition date. Each reporting period thereafter, we revalue these obligations and record increases or decreases in their fair value as an adjustment to net change in contingent consideration obligation within the consolidated statement of income. Changes in the fair value of the contingent consideration obligation can result from updates in the achievement of financial targets and changes to the weighted probability of achieving those future financial targets. Significant judgment is employed in determining the appropriateness of these assumptions as of the acquisition date and for each subsequent period. Accordingly, any change in the assumptions described above, could have a material impact on the amount of the net change in contingent consideration obligation that we record in any given period. | |
Principles Of Consolidation | Principles of Consolidation — The consolidated financial statements include the accounts of Evolving Systems, Inc. and subsidiaries, all of which are wholly owned. All significant intercompany transactions and balances have been eliminated in consolidation. |
Use Of Estimates | Use of Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities, at the date of the financial statements, as well as the reported amounts of revenue and expenses during the reporting period. We made estimates with respect to revenue recognition for estimated hours to complete projects accounted for using the percentage-of-completion method, allowance for doubtful accounts, income tax valuation allowance, fair values of long-lived assets, valuation of intangible assets and goodwill, useful lives for property, equipment and intangible assets, business combinations, capitalization of internal software development costs and fair value of stock-based compensation amounts. Actual results could differ from these estimates. |
Foreign Currency | Foreign Currency — Our functional currency is the U.S. dollar. The functional currency of our foreign operations, generally, is the respective local currency for each foreign subsidiary. Assets and liabilities of foreign operations denominated in local currencies are translated at the spot rate in effect at the applicable reporting date. Our consolidated balance sheets are translated at the spot rate of exchange during the applicable period. Our consolidated statements of operations are translated at the weighted average rate of exchange during the applicable period. The resulting unrealized cumulative translation adjustment is recorded as a component of accumulated other comprehensive income (loss) in stockholders’ equity. Realized and unrealized transaction gains and losses generated by transactions denominated in a currency different from the functional currency of the applicable entity are recorded in other income (loss) in the period in which they occur. |
Goodwill | Goodwill − Goodwill is the excess of acquisition cost of an acquired entity over the fair value of the identifiable net assets acquired. Goodwill is not amortized, but tested for impairment annually or whenever indicators of impairment exist. These indicators may include a significant change in the business climate, legal factors, operating performance indicators, competition, sale or disposition of a significant portion of the business or other factors. For purposes of the goodwill evaluation, we compare the fair value of each of our reporting units to its respective carrying amount. If the carrying value of a reporting unit were to exceed its fair value, we would then compare the fair value of the reporting unit’s goodwill to its carrying amount, and any excess of the carrying amount over the fair value would be charged to operations as an impairment loss. |
Intangible Assets | Intangible Assets − Amortizable intangible assets consist primarily of purchased software and licenses, customer contracts and relationships, trademarks and tradenames, and business partnerships acquired in conjunction with our purchase of Evolving Systems U.K. and Evolving Systems Labs. These assets are amortized using the straight-line method over their estimated lives. |
We assess the impairment of identifiable intangibles if events or changes in circumstances indicate that the carrying value of the asset may not be recoverable. | |
If we determine that the carrying value of intangibles and/or long-lived assets may not be recoverable, we compare the estimated undiscounted cash flows expected to result from the use of the asset and its eventual disposition to the asset’s carrying amount. If an amortizable intangible or long-lived asset is not deemed to be recoverable, we recognize an impairment loss representing the excess of the asset’s carrying value over its estimated fair value. | |
Fair Value Measurements | Fair Value Measurements − Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: |
Level 1 — Quoted prices in active markets for identical assets or liabilities. | |
Level 2 — Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | |
Level 3 — Inputs that are generally unobservable and typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability. | |
The valuation techniques used to measure our marketable debt securities were derived from quoted prices in active markets for identical assets or liabilities. Refer to Note 2, Investments, for more information. | |
Cash, Cash Equivalents And Marketable Securities | Cash and Cash Equivalents - All highly liquid investments with maturities of three months or less at the date of purchase are classified as cash equivalents. |
Revenue Recognition | |
Revenue Recognition − We recognize revenue when an agreement is signed, the fee is fixed or determinable and collectability is reasonably assured. We recognize revenue from two primary sources: license fees and services, and customer support. The majority of our license fees and services revenue is generated from fixed-price contracts, which provide for licenses to our software products and services to customize such software to meet our customers’ use. When the customization services are determined to be essential to the functionality of the delivered software, we recognize revenue using the percentage-of-completion method of accounting. In these types of arrangements, we do not typically have vendor specific objective evidence (“VSOE”) of fair value on the license fee/services portion (services are related to customizing the software) of the arrangement due to the large amount of customization required by our customers; however, we do have VSOE for the warranty/maintenance services based on the renewal rate of the first year of maintenance in the arrangement. The license/services portion is recognized using the percentage-of-completion method of accounting and the warranty/maintenance services are separated based on the renewal rate in the contract and recognized ratably over the warranty or maintenance period. We estimate the percentage-of-completion for each contract based on the ratio of direct labor hours incurred to total estimated direct labor hours and recognize revenue based on the percent complete multiplied by the contract amount allocated to the license fee/services. Since estimated direct labor hours, and changes thereto, can have a significant impact on revenue recognition, these estimates are critical and we review them regularly. If the arrangement includes a customer acceptance provision, the hours to complete the acceptance testing are included in the total estimated direct labor hours; therefore, the related revenue is recognized as the acceptance testing is performed. Revenue is not recognized in full until the customer has provided proof of acceptance on the arrangement. Generally, our contracts are accounted for individually. However, when certain criteria are met, it may be necessary to account for two or more contracts as one to reflect the substance of the group of contracts. We record amounts billed in advance of services being performed as unearned revenue. Unbilled work-in-progress represents revenue earned but not yet billable under the terms of the fixed-price contracts. All such amounts are expected to be billed and collected within 12 months. | |
We may encounter budget and schedule overruns on fixed-price contracts caused by increased labor or overhead costs. We make adjustments to cost estimates in the period in which the facts requiring such revisions become known. We record estimated losses, if any, in the period in which current estimates of total contract revenue and contract costs indicate a loss. If revisions to cost estimates are obtained after the balance sheet date but before the issuance of the interim or annual financial statements, we make adjustments to the interim or annual financial statements accordingly. | |
In arrangements where the services are not essential to the functionality of the delivered software, we recognize license revenue when a license agreement has been signed, delivery and acceptance have occurred, the fee is fixed or determinable and collectability is reasonably assured. Where applicable, we unbundle and record as revenue fees from multiple element arrangements as the elements are delivered to the extent that VSOE of fair value of the undelivered elements exist. If VSOE for the undelivered elements does not exist, we defer fees from such arrangements until the earlier of the date that VSOE does exist on the undelivered elements or all of the elements have been delivered. | |
We recognize revenue from fixed-price service contracts using the proportional performance method of accounting, which is similar to the percentage-of-completion method described above. We recognize revenue from professional services provided pursuant to time-and-materials based contracts and training services as the services are performed, as that is when our obligation to our customers under such arrangements is fulfilled. | |
We recognize revenue from our MDE contracts based on the number of transactions per month multiplied by a factor based on a unique table for transaction volumes relating to each account. | |
We recognize customer support, including maintenance revenue, ratably over the service contract period. When maintenance is bundled with the original license fee arrangement, its fair value, based upon VSOE, is deferred and recognized during the periods when services are provided. | |
Stock-Based Compensation | Stock-based Compensation − We account for stock-based compensation by applying a fair-value-based measurement method to account for share-based payment transactions with employees and directors. We record compensation costs associated with the vesting of unvested options on a straight-line basis over the vesting period. Stock-based compensation is a non-cash expense because we settle these obligations by issuing shares of our common stock instead of settling such obligations with cash payments. We use the Black-Scholes model to estimate the fair value of each option grant on the date of grant. This model requires the use of estimates for expected term of the options and expected volatility of the price of our common stock. |
Comprehensive Income | Comprehensive Income - Comprehensive income consists of two components, net income and other comprehensive income. Other comprehensive income refers to revenue, expenses, gains, and losses that under GAAP are recorded as an element of shareholders’ equity but are excluded from net income. Other comprehensive income consists of foreign currency translation adjustments from those subsidiaries not using the U.S. dollar as their functional currency and unrealized gains and losses on marketable securities categorized as available-for-sale. |
Restricted Cash | Restricted Cash — As of December 31, 2014 we no longer had restricted cash. As of December 31, 2013, we had $24,000 of restricted cash related to securing a letter of credit for our San Francisco, California lease that has since expired. |
Contract Receivables, Unbilled Work-in-Progress And Allowance For Doubtful Accounts | Contract Receivables, Unbilled Work-in-Progress and Allowance for Doubtful Accounts — Contract receivables are recorded at the invoiced amount and do not bear interest. Credit is extended based on the evaluation of a customer’s financial condition and collateral is not required. Unbilled work in progress is revenue which has been earned but not invoiced. An allowance is placed against accounts receivable or unbilled work in progress for our best estimate of the amount of probable credit losses. We determine the allowance based on historical write-off experience and information received during collection efforts. We review our allowances monthly and past due balances over 90 days are reviewed individually for collectability. Account balances are charged against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. We do not have any off-balance-sheet credit exposure related to our customers. |
Long Term Deferred Revenue | Long Term Deferred Revenue — Long term deferred revenue are amounts which revenue will not be recognized within twelve months of the balance sheet date. As of December 31, 2014 and 2013, we had $0.4 million and $1.0 million, respectively, reported in the accompanying consolidated balance sheets. |
Concentration Of Credit Risk | |
Concentration of Credit Risk — Financial instruments that potentially subject us to concentrations of credit risk consist primarily of contract receivables and unbilled work-in-progress. We perform on-going evaluations of customers’ financial condition and, generally, require no collateral from customers. | |
A substantial portion of our revenue is from a limited number of customers, all in the telecommunications industry. | |
For the year ended December 31, 2014, two significant customers (defined as contributing at least 10%) accounted for 24% (13% and 11%) of revenue from continuing operations. These customers are large telecommunications operators in Europe and Mexico. For the year ended December 31, 2013 one significant customer accounted for 12% of revenue from continuing operations. This customer is a large telecommunications operator in Europe. For the year ended December 31, 2012 three significant customers accounted for 39% (15%, 14% and 10%) of revenue from continuing operations. These customers are large telecommunications operators in Europe, the Commonwealth of Independent States and Mexico. | |
As of December 31, 2014, three significant customers accounted for approximately 55% (26%, 16% and 13%) of contract receivables and unbilled work-in-progress. These customers are large telecommunications operators in Africa, Mexico and Europe. At December 31, 2013, four significant customers accounted for approximately 56% (18%, 15%, 12% and 11%) of contract receivables and unbilled work-in-progress. These customers are large telecommunications operators in Africa, Europe, Brazil and Europe. | |
We are subject to concentration of credit risk with respect to our cash and cash equivalents, which we attempt to minimize by maintaining our cash and cash equivalents with institutions of sound financial quality. At times, cash balances may exceed limits federally insured by the Federal Deposit Insurance Corporation (“FDIC”). | |
Our funds not under any FDIC program were $9.3 million and $13.5 million as of December 31, 2014 and December 31, 2013, respectively. | |
Sales, Use And Other Value Added Tax | Sales, Use and Other Value Added Tax — Revenue is recorded net of applicable state, use and other value added taxes. |
Advertising And Promotion Costs | Advertising and Promotion Costs — Advertising and promotion costs are expensed as incurred. Advertising costs totaled approximately $0.2 million for the years ended December 31, 2014, 2013 and 2012. |
Capitalization Of Internal Software Development Costs | Capitalization of Internal Software Development Costs — We expend amounts on product development, particularly for new products and/or for enhancements of existing products. For internal development of software products that are to be licensed by us, we expense the cost of developing software prior to establishing technological feasibility and those costs are capitalized once technological feasibility has been established. Capitalization ceases upon general release of the software. The determination of whether internal software development costs are subject to capitalization is, by its nature, highly subjective and involves significant judgments. This decision could significantly affect earnings during the development period. Further, once capitalized, the software costs are generally amortized on a straight-line basis over the estimated economic life of the product. The determination of the expected useful life of a product is highly judgmental. Finally, capitalized software costs must be assessed for impairment if facts and circumstances warrant such a review. We did not capitalize any internal software development costs during the years ended December 31, 2014, 2013, or 2012. In addition, we did not have any capitalized internal software development costs included in our December 31, 2014 and 2013 Consolidated Balance Sheets. We believe that during these periods no material internal software development costs were required to be capitalized. Our conclusion is primarily based on the fact that the feature−rich, pre−integrated, and highly−scalable nature of our products requires that our development efforts include complex design, coding and testing methodologies, which include next generation software languages and development tools. Development projects of this nature carry a high degree of development risk. Substantially all of our internal software development efforts are of this nature, and therefore, we believe the period between achieving technological feasibility and the general release of the software to operations is so short that any costs incurred during this period are not material. |
Property And Equipment And Long-Lived Assets | Property and Equipment and Long-Lived Assets — Property and equipment are stated at cost or estimated fair value if acquired in an acquisition, less accumulated depreciation, and are depreciated over their estimated useful lives, or the lease term, if shorter, using the straight-line method. Leasehold improvements are stated at cost, less accumulated amortization, and are amortized over the shorter of the lease term or estimated useful life of the asset. Maintenance and repair costs are expensed as incurred. |
We review our long-lived assets, such as property and equipment and purchased intangible assets subject to amortization, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. We evaluate the recoverability of an asset or asset group by comparing its carrying amount to the estimated undiscounted future cash flows expected to be generated by the asset or asset group. If the carrying amount of an asset or asset group exceeds its estimated future cash flows, we recognize an impairment charge as the amount by which the carrying amount of the asset exceeds the estimated fair value of the asset. | |
Income Taxes | Income Taxes — We record deferred tax assets and liabilities for the estimated future tax effects of temporary differences between the tax bases of assets and liabilities and amounts reported in the accompanying consolidated balance sheets, as well as operating loss and tax credit carry-forwards. We measure deferred tax assets and liabilities using enacted tax rates expected to be applied to taxable income in the years in which those temporary differences are expected to be recovered or settled. We reduce deferred tax assets by a valuation allowance if, based on available evidence, it is more likely than not that these benefits will not be realized. |
We use a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements — In July 2013, the FASB issued ASU 2013-11 regarding ASC Topic 740 “Income Tax.” This ASU clarifies the guidance on the presentation of an unrecognized tax benefit, or a portion of an unrecognized tax benefit, in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. This ASU became effective for our fiscal year beginning January 1, 2014. We adopted this pronouncement as of January 1, 2014. The adoption of this standard had no material effect on our financial position or results of operations. |
In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers,” Topic 606. This Update affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets, unless those contracts are within the scope of other standards. The guidance in this Update supersedes the revenue recognition requirements in Topic 605, Revenue Recognition and most industry-specific guidance. The core principle of the guidance is that an entity should recognize revenue to illustrate the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new guidance also includes a cohesive set of disclosure requirements that will provide users of financial statements with comprehensive information about the nature, amount, timing, and uncertainty of revenue and cash flows arising from a reporting organization’s contracts with customers. This ASU is effective retrospectively for fiscal years, and interim periods within those years beginning after December 15, 2016 for public companies and 2017 for non-public entities. We do not expect the adoption of this standard to have a significant impact on the Company’s financial position and results of operations. | |
Organization_And_Summary_Of_Si2
Organization And Summary Of Significant Accounting Policies (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Organization And Summary Of Significant Accounting Policies [Abstract] | ||||||||||||||
Activity In Allowance For Doubtful Accounts | ||||||||||||||
Balance at | Bad Debt | Write-Offs Charged | Effects of Foreign Currency | Balance at | ||||||||||
Fiscal | Beginning | Expense/ | to | Exchange | End of | |||||||||
Year | Description | of Period | (Recovery) | Allowance | Rates | Period | ||||||||
2014 | Allowance for doubtful accounts | $ 73 | $ - | $ (25) | $ (5) | $ 43 | ||||||||
2013 | Allowance for doubtful accounts | $ 70 | $ - | $ - | $ 3 | $ 73 | ||||||||
2012 | Allowance for doubtful accounts | $ 52 | $ 27 | $ - | $ (9) | $ 70 | ||||||||
Activity In Allowance For Unbilled Work-In-Progress | ||||||||||||||
Balance at | Unbilled Work-in-Progress | Write-Offs Charged | Effects of Foreign Currency | Balance at | ||||||||||
Fiscal | Beginning | Allowance/ | to | Exchange | End of | |||||||||
Year | Description | of Period | (Recovery) | Allowance | Rates | Period | ||||||||
2014 | Allowance for unbilled work-in-progress | $ 317 | $ - | $ - | $ (11) | $ 306 | ||||||||
2013 | Allowance for unbilled work-in-progress | $ 295 | $ 114 | $ (114) | $ 22 | $ 317 | ||||||||
2012 | Allowance for unbilled work-in-progress | $ - | $ 288 | $ - | $ 7 | $ 295 | ||||||||
Acquisition_Tables
Acquisition (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Acquisition [Abstract] | |||||||||||
Summary Of Total Purchase Price | |||||||||||
24-Oct-13 | |||||||||||
Cash Consideration | $ | 794 | |||||||||
Final Cash Payment | 494 | ||||||||||
Stock Consideration (73,281 shares) | 761 | ||||||||||
Estimated Contingent Consideration | 178 | ||||||||||
Total purchase price | $ | 2,227 | |||||||||
Schedule Of Assets Acquired and Liabilities Assumed At Acquisition Date | |||||||||||
24-Oct-13 | |||||||||||
Cash and cash equivalents | $ | 382 | |||||||||
Contract receivables | 210 | ||||||||||
Unbilled work-in-progress | 150 | ||||||||||
Intangible assets | 718 | ||||||||||
Prepaid and other current assets | 37 | ||||||||||
Deferred tax asset | 98 | ||||||||||
Other assets, non-current | 43 | ||||||||||
Total identifiable assets acquired | $ | 1,638 | |||||||||
Accounts payable and accrued liabilities | $ | 504 | |||||||||
Assumed liabilities | 4 | ||||||||||
Total identifiable assets acquired | $ | 508 | |||||||||
Net identifiable assets acquired | 1,130 | ||||||||||
Goodwill | 1,097 | ||||||||||
Net assets acquired | $ | 2,227 | |||||||||
Intangible Assets Related To Acquisition | |||||||||||
31-Dec-14 | |||||||||||
Gross Amount | Accumulated Amortization | Net Carrying Amount | Weighted-Average Amortization Period | ||||||||
Purchased software | $ | 439 | $ | 64 | $ | 375 | 4.6 yrs | ||||
Trademarks and tradenames | 63 | 15 | 48 | 3.8 yrs | |||||||
Customer relationships | 216 | 31 | 185 | 4.6 yrs | |||||||
$ | 718 | $ | 110 | $ | 608 | 4.54 yrs | |||||
Goodwill_And_Intangible_Assets1
Goodwill And Intangible Assets (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Goodwill And Intangible Assets [Abstract] | ||||||||||||||||||||
Summary Of Changes In Carrying Amount Of Goodwill | ||||||||||||||||||||
License and Services | Customer Support | Total | ||||||||||||||||||
U.S. | UK | UK | Goodwill | |||||||||||||||||
Balance as of December 31, 2012 | $ | - | $ | 7,385 | $ | 9,125 | $ | 16,510 | ||||||||||||
Goodwill acquired during the year | 1,097 | - | - | 1,097 | ||||||||||||||||
Effects of changes in foreign | ||||||||||||||||||||
currency exchange rates | - | 147 | 182 | 329 | ||||||||||||||||
Balance as of December 31, 2013 | $ | 1,097 | $ | 7,532 | $ | 9,307 | $ | 17,936 | ||||||||||||
Effects of changes in foreign | ||||||||||||||||||||
currency exchange rates | - | -414 | -512 | -926 | ||||||||||||||||
Balance as of December 31, 2014 | $ | 1,097 | $ | 7,118 | $ | 8,795 | $ | 17,010 | ||||||||||||
Summary Of Identifiable Intangible Assets | ||||||||||||||||||||
Evolving Systems Labs | 31-Dec-14 | 31-Dec-13 | ||||||||||||||||||
Gross Amount | Accumulated Amortization | Net Carrying Amount | Gross Amount | Accumulated Amortization | Net Carrying Amount | Weighted-Average Amortization Period | ||||||||||||||
Purchased software | $ | 439 | $ | 64 | $ | 375 | $ | 439 | $ | 9 | $ | 430 | 4.6 yrs | |||||||
Trademarks and tradenames | 63 | 15 | 48 | 63 | 2 | 61 | 3.8 yrs | |||||||||||||
Customer relationships | 216 | 31 | 185 | 216 | 5 | 211 | 4.6 yrs | |||||||||||||
$ | 718 | $ | 110 | $ | 608 | $ | 718 | $ | 16 | $ | 702 | 4.54 yrs | ||||||||
Summary Of Expected Future Amortization Expense Related To Identifiable Intangibles | ||||||||||||||||||||
Year ending December 31, | ||||||||||||||||||||
2015 | $ | 94 | ||||||||||||||||||
2016 | 94 | |||||||||||||||||||
2017 | 94 | |||||||||||||||||||
2018 | 94 | |||||||||||||||||||
2019 | 82 | |||||||||||||||||||
Thereafter | 150 | |||||||||||||||||||
$ | 608 | |||||||||||||||||||
Balance_Sheet_Components_Table
Balance Sheet Components (Tables) | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Balance Sheet Components [Abstract] | ||||||
Property And Equipment | ||||||
December 31, | ||||||
Property and equipment: | 2014 | 2013 | ||||
Computer equipment and purchased software | $ | 4,796 | $ | 4,361 | ||
Furniture, fixtures and leasehold improvements | 1,078 | 1,094 | ||||
5,874 | 5,455 | |||||
Less accumulated depreciation | -5,215 | -5,113 | ||||
$ | 659 | $ | 342 | |||
Assets Acquired Under Capital Lease | ||||||
December 31, | ||||||
Assets acquired under capital lease: | 2014 | 2013 | ||||
Original book value | $ | 24 | $ | 24 | ||
Accumulated amortization | -13 | -8 | ||||
Net book value | $ | 11 | $ | 16 | ||
Accounts Payable And Accrued Liabilities | ||||||
December 31, | ||||||
Accounts payable and accrued liabilities: | 2014 | 2013 | ||||
Accounts payable | $ | 729 | $ | 729 | ||
Accrued liabilities | 2,366 | 2,129 | ||||
Accrued compensation and related expenses | 1,365 | 1,621 | ||||
$ | 4,460 | $ | 4,479 | |||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Income Taxes [Abstract] | |||||||||
Pre-tax Income (Loss) From Continuing Operations | |||||||||
For the Years Ended December 31, | |||||||||
2014 | 2013 | 2012 | |||||||
Domestic | $ | -1,274 | $ | -1,347 | $ | 2,568 | |||
Foreign | 9,679 | 6,427 | 4,397 | ||||||
Total | $ | 8,405 | $ | 5,080 | $ | 6,965 | |||
Expense (Benefit) From Continuing operations For Income Taxes | |||||||||
For the Years Ended December 31, | |||||||||
2014 | 2013 | 2012 | |||||||
Current: | |||||||||
Federal | $ | 1,468 | $ | 441 | $ | 1,061 | |||
Foreign | 1,637 | 1,015 | 541 | ||||||
State | -26 | 70 | 139 | ||||||
Total current | 3,079 | 1,526 | 1,741 | ||||||
Deferred: | |||||||||
Federal | -301 | -66 | -732 | ||||||
Foreign | 19 | -178 | 459 | ||||||
State | 0 | -8 | -67 | ||||||
Total deferred | -282 | -252 | -340 | ||||||
Total | $ | 2,797 | $ | 1,274 | $ | 1,401 | |||
Tax Net Operating Losses | |||||||||
Excess Tax Benefits | Tax | ||||||||
if realized will be | Net Operating | ||||||||
Year | credited to APIC | Losses | |||||||
2006 | $ | 1,089 | $ | 1,089 | |||||
2007 | 1,199 | 1,199 | |||||||
$ | 2,288 | $ | 2,288 | ||||||
Unrecognized Tax Benefit on Equity Compensation | $ | -2,288 | |||||||
Reduced NOL for Financial Statement Presentation | $ | 0 | |||||||
Components Of Deferred Tax Assets And Liabilities | |||||||||
As of December 31, | |||||||||
2014 | 2013 | ||||||||
Deferred tax assets: | |||||||||
Net operating loss carryforwards | $ | 555 | $ | 2,565 | |||||
Research and development credits | 303 | 303 | |||||||
Equity compensation | 661 | 616 | |||||||
AMT/MAT credit | 942 | 996 | |||||||
Depreciable assets | 107 | 178 | |||||||
Intangibles | 203 | 91 | |||||||
Accrued liabilities and reserves | 607 | 180 | |||||||
Total deferred tax assets | 3,378 | 4,929 | |||||||
Deferred tax liabilities: | |||||||||
Undistributed foreign earnings | -897 | -777 | |||||||
Accrued liabilities and reserves | -16 | -42 | |||||||
Total deferred tax liability | -913 | -819 | |||||||
Net deferred tax assets, before valuation allowance | 2,465 | 4,110 | |||||||
Valuation allowance | -1,799 | -3,731 | |||||||
Net deferred tax asset | $ | 666 | $ | 379 | |||||
Financial statement classification: | |||||||||
Current deferred tax asset | $ | 80 | $ | 131 | |||||
Long-term tax asset | 586 | 248 | |||||||
$ | 666 | $ | 379 | ||||||
Income Tax Expense Reconciliation | |||||||||
For the Years Ended December 31, | |||||||||
2014 | 2013 | 2012 | |||||||
U.S. federal income tax expense at statutory rates | $ | 4,595 | $ | 2,143 | $ | 3,368 | |||
State income tax expense, net of federal impact | 542 | 46 | 139 | ||||||
Foreign rate differential | -1,452 | -332 | -96 | ||||||
Foreign deemed dividends | 1,783 | 871 | 452 | ||||||
Undistributed foreign earnings | - | - | 158 | ||||||
Change in valuation allowance | -1,971 | -492 | -1,986 | ||||||
Research and development expenses | -867 | -859 | -976 | ||||||
Foreign taxes | 53 | 93 | 288 | ||||||
Undistributed foreign earnings assertion | 0 | - | -856 | ||||||
Permanent differences and other, net | 114 | -196 | 910 | ||||||
Total tax expense | $ | 2,797 | $ | 1,274 | $ | 1,401 | |||
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Summary Of Stock-Based Compensation Expenses | ||||||||||||||
For the Years Ended December 31, | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Cost of license fees and services, excluding | ||||||||||||||
depreciation and amortization | $ | 73 | $ | 29 | $ | 18 | ||||||||
Cost of customer support, excluding | ||||||||||||||
depreciation and amortization | 8 | 4 | 4 | |||||||||||
Sales and marketing | 31 | 24 | 23 | |||||||||||
General and administrative | 181 | 207 | 200 | |||||||||||
Product development | 108 | 24 | 19 | |||||||||||
Total share based compensation | $ | 401 | $ | 288 | $ | 264 | ||||||||
Summary Of Stock Option Activity | ||||||||||||||
Weighted- | ||||||||||||||
Average | ||||||||||||||
[1] | Weighted- | Remaining | Aggregate | |||||||||||
Number of | Average | Contractual | Intrinsic | |||||||||||
Shares | Exercise | Term | Value | |||||||||||
(in thousands) | Price | (Years) | (in thousands) | |||||||||||
Options outstanding at December 31, 2012 | 704 | $ 4.86 | 4.60 | $ 1,757 | ||||||||||
Options granted | 123 | $ 8.21 | ||||||||||||
Less options forfeited | -28 | $ 17.30 | ||||||||||||
Less options exercised | -123 | $ 3.99 | ||||||||||||
Options outstanding at December 31, 2013 | 676 | $ 5.11 | 4.76 | $ 3,491 | ||||||||||
Options granted | 168 | $ 10.15 | ||||||||||||
Less options forfeited | -132 | $ 12.20 | ||||||||||||
Less options exercised | -82 | $ 5.31 | ||||||||||||
Options outstanding at December 31, 2014 | 630 | $ 4.94 | 5.69 | $ 2,959 | ||||||||||
Options exercisable at December 31, 2014 | 461 | $ 3.33 | 4.53 | $ 2,833 | ||||||||||
__________________________ | ||||||||||||||
[1] In 2012, the balance of options outstanding was increased by 109,818 options due to the aforementioned anti-dilution adjustments to outstanding stock option awards. | ||||||||||||||
Summary Of Stock Option Outstanding By Exercise Price Ranges | ||||||||||||||
Stock Options | ||||||||||||||
Stock Options Outstanding | Exercisable | |||||||||||||
Weighted Avg. | ||||||||||||||
Number of | Remaining | Weighted Avg. | Number of | Weighted Avg. | ||||||||||
Range of | Shares | Contractual Life | Exercise | Shares | Exercise | |||||||||
Exercise Prices | (in thousands) | (years) | Price | (in thousands) | Price | |||||||||
$ | 0.01 | - | $ | 3.42 | 269 | 2.87 | $ 1.52 | 269 | $ 1.52 | |||||
$ | 3.43 | - | $ | 6.85 | 169 | 6.33 | $ 4.58 | 142 | $ 4.36 | |||||
$ | 6.86 | - | $ | 10.28 | 81 | 9.11 | $ 8.90 | 18 | $ 8.66 | |||||
$ | 10.29 | - | $ | 13.70 | 111 | 9.05 | $ 10.89 | 32 | $ 10.89 | |||||
630 | 5.69 | $ 4.94 | 461 | $ 3.33 | ||||||||||
Stock Incentive Plans [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Assumptions For Weighted Average Fair Value Of Stock Options | ||||||||||||||
For the Years Ended December 31, | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Expected term (years) | 5.9 | 6.1 | 5.7 | |||||||||||
Risk-free interest rate | 1.69 | % | 1.31 | % | 0.84 | % | ||||||||
Expected volatility | 55.88 | % | 59.17 | % | 65.23 | % | ||||||||
Expected dividend yield | 4.0 | % | 4.1 | % | 3.5 | % | ||||||||
Employee Stock Purchase Plan [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Assumptions For Weighted Average Fair Value Of Stock Options | ||||||||||||||
For the Years Ended December 31, | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Expected term (years) | 0.25 | 0.25 | 0.25 | |||||||||||
Risk-free interest rate | 0.03 | % | 0.05 | % | 0.08 | % | ||||||||
Expected volatility | 40.92 | % | 44.36 | % | 49.54 | % | ||||||||
Expected dividend yield | 4.5 | % | 4.0 | % | 3.4 | % | ||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Summary Of Basic And Diluted Earnings Per Share | |||||||||
For the Years Ended December, 31 | |||||||||
2014 | 2013 | 2012 | |||||||
Basic income (loss) per share: | |||||||||
Net income | $ | 5,608 | $ | 3,806 | $ | 5,564 | |||
Basic weighted average shares outstanding | 11,642 | 11,459 | 11,278 | ||||||
Basic income (loss) per share: | |||||||||
Net Income | $ | 0.48 | $ | 0.33 | $ | 0.49 | |||
Diluted income (loss) per share: | |||||||||
Net income | $ | 5,608 | $ | 3,806 | $ | 5,564 | |||
Weighted average shares outstanding | 11,642 | 11,459 | 11,278 | ||||||
Effect of dilutive securities - options | 284 | 297 | 251 | ||||||
Diluted weighted average shares outstanding | 11,926 | 11,756 | 11,529 | ||||||
Diluted income (loss) per share: | |||||||||
Net Income | $ | 0.47 | $ | 0.32 | $ | 0.48 | |||
Commitments_And_Contingencies_
Commitments And Contingencies (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Commitments And Contingencies [Abstract] | ||||
Future minimum commitments | ||||
Operating Leases | Capital Leases | |||
2015 | $ 327 | $ 6 | ||
2016 | 106 | 6 | ||
2017 | 99 | 1 | ||
2018 | - | - | ||
Total minimum lease payments | $ 532 | 13 | ||
Less: Amount representing interest | -1 | |||
Principal balance of capital lease obligations | 12 | |||
Less: Current portion of capital lease obligations | -5 | |||
Long-term portion of capital lease obligations | $ 7 | |||
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Segment Information [Abstract] | |||||||||
Segment Information | |||||||||
For the Years Ended December 31, | |||||||||
2014 | 2013 | 2012 | |||||||
Revenue | |||||||||
License fees and services | $ | 19,738 | $ | 15,998 | $ | 17,622 | |||
Customer support | 9,942 | 9,095 | 8,625 | ||||||
Total revenue | 29,680 | 25,093 | 26,247 | ||||||
Revenue less costs of revenue, excluding | |||||||||
depreciation and amortization | |||||||||
License fees and services | 13,956 | 10,433 | 10,888 | ||||||
Customer support | 8,076 | 7,496 | 7,123 | ||||||
22,032 | 17,929 | 18,011 | |||||||
Unallocated Costs | |||||||||
Other operating expenses | 13,015 | 11,964 | 11,752 | ||||||
Depreciation and amortization | 341 | 366 | 668 | ||||||
Restructuring and other recovery | 237 | 558 | - | ||||||
Interest income | -19 | -11 | -60 | ||||||
Interest income, related party | - | - | -532 | ||||||
Interest expense | 17 | 20 | 3 | ||||||
Other income (expense) | 27 | -87 | - | ||||||
Gain on sale of investments | - | - | -891 | ||||||
Foreign currency exchange (gain) loss | 9 | 39 | 106 | ||||||
Income from operations before income taxes | $ | 8,405 | $ | 5,080 | $ | 6,965 | |||
Financial Information Relating To Operations By Geographic Region | |||||||||
For the Year Ended December 31, 2014 | |||||||||
Revenue | L&S | CS | Total | ||||||
United Kingdom | $ | 3,551 | $ | 2,017 | $ | 5,568 | |||
Nigeria | 2,954 | 473 | 3,427 | ||||||
Mexico | 2,478 | 722 | 3,200 | ||||||
Other | 10,755 | 6,730 | 17,485 | ||||||
Total revenues | $ | 19,738 | $ | 9,942 | $ | 29,680 | |||
For the Year Ended December 31, 2013 | |||||||||
Revenue | L&S | CS | Total | ||||||
United Kingdom | $ | 3,018 | $ | 1,903 | $ | 4,921 | |||
Other | 12,980 | 7,192 | 20,172 | ||||||
Total revenues | $ | 15,998 | $ | 9,095 | $ | 25,093 | |||
For the Year Ended December 31, 2012 | |||||||||
Revenue | L&S | CS | Total | ||||||
United Kingdom | $ | 3,938 | $ | 1,999 | $ | 5,937 | |||
Commonwealth of Independent States | 3,548 | - | 3,548 | ||||||
Mexico | 2,187 | 340 | 2,527 | ||||||
Other | 7,949 | 6,286 | 14,235 | ||||||
Total revenues | $ | 17,622 | $ | 8,625 | $ | 26,247 | |||
Summary Of Long-lived Assets, Net | |||||||||
December 31, | December 31, | ||||||||
Long-lived assets, net | 2014 | 2013 | |||||||
United States | $ | 1,998 | $ | 1,840 | |||||
United Kingdom | 16,091 | 16,985 | |||||||
Other | 188 | 155 | |||||||
$ | 18,277 | $ | 18,980 | ||||||
Quarterly_Financial_Informatio1
Quarterly Financial Information (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Quarterly Financial Information [Abstract] | |||||||||||||
Schedule Of Quarterly Financial Information | |||||||||||||
First | Second | Third | Fourth | ||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||
Year Ended December 31, 2014 | |||||||||||||
Total revenue | $ | 6,582 | $ | 7,939 | $ | 7,560 | $ | 7,599 | |||||
Less: cost of revenue and operating expenses | 5,555 | 5,322 | 5,241 | 5,123 | |||||||||
Income from operations | 1,027 | 2,617 | 2,319 | 2,476 | |||||||||
Income before income taxes | 929 | 2,514 | 2,506 | 2,456 | |||||||||
Net income | $ | 651 | $ | 1,676 | $ | 1,679 | $ | 1,602 | |||||
Net income per common share: | |||||||||||||
Basic income per common share - net income | $ | 0.06 | $ | 0.14 | $ | 0.14 | $ | 0.14 | |||||
Diluted income per common share - net income | $ | 0.05 | $ | 0.14 | $ | 0.14 | $ | 0.13 | |||||
Year Ended December 31, 2013 | |||||||||||||
Total revenue | $ | 6,669 | $ | 5,785 | $ | 6,069 | $ | 6,570 | |||||
Less: cost of revenue and operating expenses | 4,888 | 4,533 | 4,604 | 6,027 | |||||||||
Income from operations | 1,781 | 1,252 | 1,465 | 543 | |||||||||
Income before income taxes | 1,735 | 1,438 | 1,356 | 551 | |||||||||
Net income | $ | 1,173 | $ | 909 | $ | 920 | $ | 804 | |||||
Net income per common share: | |||||||||||||
Basic income per common share - net income | $ | 0.10 | $ | 0.08 | $ | 0.08 | $ | 0.07 | |||||
Diluted income per common share - net income | $ | 0.10 | $ | 0.08 | $ | 0.08 | $ | 0.07 | |||||
Organization_And_Summary_Of_Si3
Organization And Summary Of Significant Accounting Policies (Narrative) (Details) (USD $) | 12 Months Ended | 0 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 24, 2013 | |
item | ||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||
Issuance of common stock related to acquisition | $19,000 | $761,000 | ||
Final Cash Payment | 494,000 | |||
Number of recognized sources for revenue | 2 | |||
Unbilled work in progress billing period | 12 months | |||
Restricted cash | 0 | |||
Number of days for individual review of past due balances | 90 years | |||
Unearned revenue - Long term | 420,000 | 1,027,000 | ||
Funds not under any FDIC program | 9,300,000 | 13,500,000 | ||
Advertising costs | 200,000 | 200,000 | 200,000 | |
Capitalized internal software development costs | 0 | 0 | 0 | |
Headquarters Lease [Member] | ||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||
Restricted cash | 24,000 | |||
Customer Concentration Risk [Member] | Revenue From Continuing Operations [Member] | ||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||
Number of customers | 2 | 1 | 3 | |
Concentration risk, percentage | 24.00% | 12.00% | 39.00% | |
Customer Concentration Risk [Member] | Contract Receivables And Unbilled Worl-In-Progress [Member] | ||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||
Number of customers | 3 | 4 | ||
Concentration risk, percentage | 55.00% | 56.00% | ||
Significant Customer One [Member] | Revenue From Continuing Operations [Member] | ||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration risk, percentage | 13.00% | 15.00% | ||
Significant Customer One [Member] | Contract Receivables And Unbilled Worl-In-Progress [Member] | ||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration risk, percentage | 26.00% | 18.00% | ||
Significant Customer Two [Member] | Revenue From Continuing Operations [Member] | ||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration risk, percentage | 11.00% | 14.00% | ||
Significant Customer Two [Member] | Contract Receivables And Unbilled Worl-In-Progress [Member] | ||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration risk, percentage | 16.00% | 15.00% | ||
Significant Customer Three [Member] | Revenue From Continuing Operations [Member] | ||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration risk, percentage | 10.00% | |||
Significant Customer Three [Member] | Contract Receivables And Unbilled Worl-In-Progress [Member] | ||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration risk, percentage | 13.00% | 12.00% | ||
Significant Customer Four [Member] | Contract Receivables And Unbilled Worl-In-Progress [Member] | ||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration risk, percentage | 11.00% | |||
Evolving Systems Labs [Member] | ||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||
Business combination payment | 1,600,000 | |||
Cash payment in business acquisition | 794,000 | |||
Issuance of common stock related to acquisition | 761,000 | |||
Final Cash Payment | $494,000 |
Organization_And_Summary_Of_Si4
Organization And Summary Of Significant Accounting Policies (Activity In Allowance For Doubtful Accounts) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Organization And Summary Of Significant Accounting Policies [Abstract] | |||
Balance at Beginning of Period | $73 | $70 | $52 |
Bad Debt Expense/(Recovery) | 27 | ||
Write-Off Charged to Allowance | -25 | ||
Effects Of Foreign Currency Exchange Rates | -5 | 3 | -9 |
Balance at End of Period | $43 | $73 | $70 |
Organization_And_Summary_Of_Si5
Organization And Summary Of Significant Accounting Policies (Activity In Allowance For Unbilled Work-In-Progress) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Organization And Summary Of Significant Accounting Policies [Abstract] | |||
Unbilled Work-in-Progress, Beginning Balance | $317 | $295 | |
Unbilled Work-in-Progress Allowance/(Recovery) | 114 | 288 | |
Unbilled Work-in-Progress, Write-Off's Charged to Allowance | -114 | ||
Allowance for unbilled work-in-progress, Effects of Foreign Currency Exchange Rates | -11 | 22 | 7 |
Unbilled Work-in-Progress, Ending Balance | $306 | $317 | $295 |
Investments_Narrative_Details
Investments (Narrative) (Details) (USD $) | 0 Months Ended | 12 Months Ended | ||
Apr. 23, 2012 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | |
Investments [Abstract] | ||||
Investments sold | $17,800,000 | |||
Gain on sale of investments | 891,000 | |||
Interest receivable | $0 | $0 |
Acquisition_Narrative_Details
Acquisition (Narrative) (Details) (USD $) | 12 Months Ended | 0 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 24, 2013 | |
Issuance of common stock related to acquisition | $19,000 | $761,000 | ||
Final Cash Payment | 494,000 | |||
Goodwill | 17,010,000 | 17,936,000 | 16,510,000 | |
Percentage of qualifying revenue in excess of qualifying revenue threshold | 34.00% | |||
Initial qualifying revenue threshold | 2,300,000 | |||
Discount rate | 5.00% | |||
Contingent consideration related to acquisition | 178,000 | |||
Amortization of intangible assets | 95,000 | 211,000 | 400,000 | |
Evolving Systems Labs [Member] | ||||
Business combination payment | 1,600,000 | |||
Cash payment in business acquisition | 794,000 | |||
Issuance of common stock related to acquisition | 761,000 | |||
Final Cash Payment | 494,000 | |||
Goodwill | 1,097,000 | |||
Stock consideration, shares | 73,281 | |||
Contingent consideration related to acquisition | 178,000 | |||
Intangible assets | 718,000 | |||
Weighted average amortization period | 4 years 6 months 15 days | |||
Amortization of intangible assets | 100,000 | 16,000 | ||
Change in goodwill from acquisition | $0 | |||
Maximum [Member] | ||||
Weighted average amortization period | 8 years | |||
Minimum [Member] | ||||
Weighted average amortization period | 5 years | |||
Trademarks And Tradenames [Member] | Evolving Systems Labs [Member] | ||||
Weighted average amortization period | 3 years 9 months 18 days | |||
Estimated useful life of intangible asset | 3 years 9 months 18 days | |||
Purchased Software [Member] | Evolving Systems Labs [Member] | ||||
Weighted average amortization period | 4 years 7 months 6 days | |||
Estimated useful life of intangible asset | 4 years 7 months 6 days | |||
Customer Relationships [Member] | Evolving Systems Labs [Member] | ||||
Weighted average amortization period | 4 years 7 months 6 days | |||
Estimated useful life of intangible asset | 4 years 7 months 6 days |
Acquisition_Summary_Of_Total_P
Acquisition (Summary Of Total Purchase Price) (Details) (USD $) | 12 Months Ended | 0 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Oct. 24, 2013 |
Final Cash Payment | $494 | ||
Stock Consideration (73,281 shares) | 19 | 761 | |
Estimated Contingent Consideration | 178 | ||
Evolving Systems Labs [Member] | |||
Cash Consideration | 794 | ||
Final Cash Payment | 494 | ||
Stock Consideration (73,281 shares) | 761 | ||
Estimated Contingent Consideration | 178 | ||
Total purchase price | $2,227 | ||
Stock consideration, shares | 73,281 |
Acquisition_Schedule_Of_Assets
Acquisition (Schedule Of Assets Acquired and Liabilities Assumed At Acquisition Date) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 24, 2013 |
In Thousands, unless otherwise specified | ||||
Goodwill | $17,010 | $17,936 | $16,510 | |
Evolving Systems Labs [Member] | ||||
Cash and cash equivalents | 382 | |||
Contract receivables | 210 | |||
Unbilled work-in-progress | 150 | |||
Intangible assets | 718 | |||
Prepaid and other current assets | 37 | |||
Deferred tax asset | 98 | |||
Other assets, non-current | 43 | |||
Total identifiable assets acquired | 1,638 | |||
Accounts payable and accrued liabilities | 504 | |||
Assumed liabilities | 4 | |||
Total identifiable assets acquired | 508 | |||
Net identifiable assets acquired | 1,130 | |||
Goodwill | 1,097 | |||
Net assets acquired | $2,227 |
Acquisition_Intangible_Assets_
Acquisition (Intangible Assets Related To Acquisition) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Net Carrying Amount | $608 | $702 |
Evolving Systems Labs [Member] | ||
Gross Amount | 718 | |
Accumulated Amortization | 110 | |
Net Carrying Amount | 608 | |
Weighted average amortization period | 4 years 6 months 15 days | |
Evolving Systems Labs [Member] | Purchased Software [Member] | ||
Gross Amount | 439 | |
Accumulated Amortization | 64 | |
Net Carrying Amount | 375 | |
Weighted average amortization period | 4 years 7 months 6 days | |
Evolving Systems Labs [Member] | Trademarks And Tradenames [Member] | ||
Gross Amount | 63 | |
Accumulated Amortization | 15 | |
Net Carrying Amount | 48 | |
Weighted average amortization period | 3 years 9 months 18 days | |
Evolving Systems Labs [Member] | Customer Relationships [Member] | ||
Gross Amount | 216 | |
Accumulated Amortization | 31 | |
Net Carrying Amount | $185 | |
Weighted average amortization period | 4 years 7 months 6 days |
Goodwill_And_Intangible_Assets2
Goodwill And Intangible Assets (Narrative) (Details) (USD $) | 1 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jul. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Goodwill And Intangible Assets [Line Items] | ||||
Goodwill impairment | $0 | |||
Amortization of intangible assets | $95 | $211 | $400 | |
Minimum [Member] | Evolving Systems Labs [Member] | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Estimated useful life of intangible asset | 5 years | |||
Maximum [Member] | Evolving Systems Labs [Member] | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Estimated useful life of intangible asset | 8 years |
Goodwill_And_Intangible_Assets3
Goodwill And Intangible Assets (Summary Of Changes In Carrying Amount Of Goodwill) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Goodwill And Intangible Assets [Line Items] | ||
Beginning Balance | $17,936 | $16,510 |
Goodwill acquired during the year | 1,097 | |
Effects of changes in foreign currency exchange rates | -926 | 329 |
Ending Balance | 17,010 | 17,936 |
United States [Member] | License Fees And Services [Member] | ||
Goodwill And Intangible Assets [Line Items] | ||
Goodwill acquired during the year | 1,097 | |
Ending Balance | 1,097 | 1,097 |
United Kingdom [Member] | License Fees And Services [Member] | ||
Goodwill And Intangible Assets [Line Items] | ||
Beginning Balance | 7,532 | 7,385 |
Effects of changes in foreign currency exchange rates | -414 | 147 |
Ending Balance | 7,118 | 7,532 |
United Kingdom [Member] | Customer Support [Member] | ||
Goodwill And Intangible Assets [Line Items] | ||
Beginning Balance | 9,307 | 9,125 |
Effects of changes in foreign currency exchange rates | -512 | 182 |
Ending Balance | $8,795 | $9,307 |
Goodwill_And_Intangible_Assets4
Goodwill And Intangible Assets (Summary Of Identifiable Intangible Assets) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Finite-Lived Intangible Assets [Line Items] | ||
Net Carrying Amount | $608 | $702 |
Evolving Systems Labs [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 718 | 718 |
Accumulated Amortization | 110 | 16 |
Net Carrying Amount | 608 | 702 |
Weighted-Average Amortization Period | 4 years 6 months 15 days | 4 years 6 months 15 days |
Evolving Systems Labs [Member] | Purchased Software [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 439 | 439 |
Accumulated Amortization | 64 | 9 |
Net Carrying Amount | 375 | 430 |
Weighted-Average Amortization Period | 4 years 7 months 6 days | 4 years 7 months 6 days |
Evolving Systems Labs [Member] | Trademarks And Tradenames [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 63 | 63 |
Accumulated Amortization | 15 | 2 |
Net Carrying Amount | 48 | 61 |
Weighted-Average Amortization Period | 3 years 9 months 18 days | 3 years 9 months 18 days |
Evolving Systems Labs [Member] | Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 216 | 216 |
Accumulated Amortization | 31 | 5 |
Net Carrying Amount | $185 | $211 |
Weighted-Average Amortization Period | 4 years 7 months 6 days | 4 years 7 months 6 days |
Goodwill_And_Intangible_Assets5
Goodwill And Intangible Assets (Summary Of Expected Future Amortization Expense Related To Identifiable Intangibles) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Goodwill And Intangible Assets [Abstract] | ||
2015 | $94 | |
2016 | 94 | |
2017 | 94 | |
2018 | 94 | |
2019 | 82 | |
Thereafter | 150 | |
Net Carrying Amount | $608 | $702 |
Balance_Sheet_Components_Narra
Balance Sheet Components (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Balance Sheet Components [Line Items] | |||
Depreciation | $246,000 | $155,000 | $268,000 |
Assets Held under Capital Leases [Member] | |||
Balance Sheet Components [Line Items] | |||
Depreciation | $5,000 | $4,000 | $4,000 |
Balance_Sheet_Components_Prope
Balance Sheet Components (Property And Equipment) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | $5,874 | $5,455 |
Less accumulated depreciation | -5,215 | -5,113 |
Property and equipment, Total | 659 | 342 |
Computer Equipment And Purchased Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 4,796 | 4,361 |
Furniture, Fixtures And Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | $1,078 | $1,094 |
Balance_Sheet_Components_Asset
Balance Sheet Components (Assets Acquired Under Capital Lease) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Balance Sheet Components [Abstract] | ||
Original book value | $24 | $24 |
Accumulated amortization | -13 | -8 |
Net book value | $11 | $16 |
Balance_Sheet_Components_Accou
Balance Sheet Components (Accounts Payable And Accrued Liabilities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Balance Sheet Components [Abstract] | ||
Accounts payable | $729 | $729 |
Accrued liabilities | 2,366 | 2,129 |
Accrued compensation and related expenses | 1,365 | 1,621 |
Accounts payable and accrued liabilities | $4,460 | $4,479 |
LongTerm_Debt_Narrative_Detail
Long-Term Debt (Narrative) (Details) (Revolving Facility [Member], USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Revolving Facility [Member] | |
Line of credit initiation date | 31-Oct-14 |
Line of credit facility, borrowing capacity, maximum | $5,000,000 |
Line of credit facility, interest rate | 2.75% |
Discount on prime rate, percentage | 0.50% |
Line of credit facility, interest rate terms, description | The $5.0 million Revolving Facility bears interest at the greater of 2.75% or the U.S.A. Prime Rate minus one half of one percent (0.5%). |
Line of credit facility, prime rate | 3.25% |
Line of credit facility, borrowing terms | To take an advance under the Revolving Facility, we must have a balance of $3.0 million in cash on deposit and have quarterly net income and a specified ratio of current assets to current liabilities, as defined in the Revolving Facility. |
Line of credit facility, cash deposit requirements for advance | 3,000,000 |
Line of credit facility, annual fee | $10,000 |
Line of credit facility, interest payment frequency | monthly |
Line of credit facility, maturity date | 22-Oct-16 |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Income Taxes [Line Items] | ||
Federal net operating loss carryforwards | $2.30 | |
State net operating loss carryforwards | 27.9 | 31.3 |
Research and experimentation credit carryforwards | 0.3 | |
Alternative minimum tax | 0.1 | |
U.S. federal income tax rate | 34.00% | |
Excess tax benefit from employee stock plan awards | 0 | 0 |
Federal net operating loss, realized | 1.4 | |
Undistributed foreign earnings | 0.5 | |
Evolving Systems Labs [Member] | ||
Income Taxes [Line Items] | ||
Deferred tax liability | 0.1 | |
Evolving Systems U.K. [Member] | ||
Income Taxes [Line Items] | ||
Deferred tax liability | $0.10 | $0.20 |
Research And Experimentation [Member] | ||
Income Taxes [Line Items] | ||
Research and experimentation credit carryforwards expiration year | 2018 | |
Maximum [Member] | Federal [Member] | ||
Income Taxes [Line Items] | ||
Operating loss carryforwards expiration year | 2033 | |
Maximum [Member] | State [Member] | ||
Income Taxes [Line Items] | ||
Operating loss carryforwards expiration year | 2033 | |
Minimum [Member] | Federal [Member] | ||
Income Taxes [Line Items] | ||
Operating loss carryforwards expiration year | 2022 | |
Minimum [Member] | State [Member] | ||
Income Taxes [Line Items] | ||
Operating loss carryforwards expiration year | 2018 |
Income_Taxes_PreTax_Income_Los
Income Taxes (Pre-Tax Income (Loss) From Continuing Operations) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Taxes [Abstract] | |||
Domestic | ($1,274) | ($1,347) | $2,568 |
Foreign | 9,679 | 6,427 | 4,397 |
Total | $8,405 | $5,080 | $6,965 |
Income_Taxes_Expense_Benefit_F
Income Taxes (Expense (Benefit) From Continuing Operations For Income Taxes) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Taxes [Abstract] | |||
Current: Federal | $1,468 | $441 | $1,061 |
Current: Foreign | 1,637 | 1,015 | 541 |
Current: State | -26 | 70 | 139 |
Total current | 3,079 | 1,526 | 1,741 |
Deferred: Federal | -301 | -66 | -732 |
Deferred: Foreign | 19 | -178 | 459 |
Deferred: State | 0 | -8 | -67 |
Total deferred | -282 | -252 | -340 |
Income Tax Expense (benefit) | $2,797 | $1,274 | $1,401 |
Income_Taxes_Tax_Net_Operating
Income Taxes (Tax Net Operating Losses) (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Operating Loss Carryforwards [Line Items] | |
Excess Tax Benefit if realized will be credited to APIC | $2,288 |
Operating Losses | 2,288 |
Unrecognized tax benefit on equity | -2,288 |
Reduced operating loss on financial statements | 0 |
Tax Year 2006 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Excess Tax Benefit if realized will be credited to APIC | 1,089 |
Operating Losses | 1,089 |
Tax Year 2007 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Excess Tax Benefit if realized will be credited to APIC | 1,199 |
Operating Losses | $1,199 |
Income_Taxes_Components_Of_Def
Income Taxes (Components Of Deferred Tax Assets And Liabilities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Income Taxes [Abstract] | ||
Net operating loss carryforwards | $555 | $2,565 |
Research & development credits | 303 | 303 |
Equity compensation | 661 | 616 |
AMT/MAT credit | 942 | 996 |
Depreciable assets | 107 | 178 |
Intangibles | 203 | 91 |
Accrued liabilities and reserves | 607 | 180 |
Total deferred tax assets | 3,378 | 4,929 |
Undistributed foreign earnings | -897 | -777 |
Accrued liabilities and reserves | -16 | -42 |
Total deferred tax liability | 913 | 819 |
Net deferred tax assets, before valuation allowance | 2,465 | 4,110 |
Valuation allowance | -1,799 | -3,731 |
Net deferred tax asset | 666 | 379 |
Current deferred tax asset | 80 | 131 |
Long-term tax asset | $586 | $248 |
Income_Taxes_Income_Tax_Expens
Income Taxes (Income Tax Expense Reconciliation) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Taxes [Abstract] | |||
U.S. federal income tax rate | 34.00% | ||
U.S. federal income tax expense (benefit) at statutory rates | $4,595 | $2,143 | $3,368 |
State income tax, net of federal impact | 542 | 46 | 139 |
Foreign rate differential | -1,452 | -332 | -96 |
Foreign deemed dividends | 1,783 | 871 | 452 |
Undistributed foreign earnings | 158 | ||
Change in valuation allowance | -1,971 | -492 | -1,986 |
Research and development expenses | -867 | -859 | -976 |
Foreign taxes | 53 | 93 | 288 |
Undistributed foreign earnings assertion | 0 | -856 | |
Permanent differences and other, net | 114 | -196 | 910 |
Income Tax Expense (benefit) | $2,797 | $1,274 | $1,401 |
Stockholders_Equity_Details
Stockholders' Equity (Details) (USD $) | 3 Months Ended | 12 Months Ended | 31 Months Ended | |||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | |
Stockholders' Equity [Abstract] | ||||||||
Cash dividend declared per common share | $0.11 | $0.11 | $0.10 | $0.10 | $0.42 | $0.36 | $2 | |
Dividends payable | $0 | $0 | ||||||
Authorized amount of stock repurchase | 5,000,000 | 5,000,000 | ||||||
Number of shares repurchased during period | 178,889 | |||||||
Value of purchased shares | $1,300,000 | |||||||
Average price per share of purchased common stock | $6.97 | |||||||
Preferred stock, shares authorized | 2,000,000 | 2,000,000 | 2,000,000 | 2,000,000 | ||||
Preferred stock, shares outstanding | 0 | 0 | 0 | 0 | ||||
Anti-takeover provisions period | 3 years |
ShareBased_Compensation_Narrat
Share-Based Compensation (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | ||||||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Nov. 10, 2011 | Jan. 03, 2012 | 8-May-12 | 18-May-12 | Dec. 31, 2010 | Dec. 31, 2007 | Jan. 02, 2012 | 17-May-12 | |
Share Based Compensation [Line Items] | |||||||||||||||
Recognized compensation expense | $401,000 | $288,000 | $264,000 | ||||||||||||
Cash dividend declared per common share | $0.11 | $0.11 | $0.10 | $0.10 | $0.42 | $0.36 | $2 | ||||||||
Aggregate value of cash dividend on common stock | 4,883,000 | 4,127,000 | 22,569,000 | ||||||||||||
Weighted-average exercise price | $4.94 | $4.94 | $5.11 | $4.86 | |||||||||||
Weighted-average grant-date fair value of stock options granted | $3.80 | $3.16 | $2.45 | ||||||||||||
Total unrecognized compensation costs related to unvested stock options | 500,000 | 500,000 | |||||||||||||
Weighted average recognition period | 2 years 8 months 12 days | ||||||||||||||
Intrinsic value of stock option exercises, total | 400,000 | 600,000 | 800,000 | ||||||||||||
Fair value of stock options vested | 300,000 | 100,000 | 200,000 | ||||||||||||
Cash received from stock option exercises | 0 | ||||||||||||||
Net settlement exercises shares issued | 7,094 | 0 | 0 | ||||||||||||
Net settlement exercises shares cancelled | 26,376 | ||||||||||||||
Cash received from exercise of stock options | 200,000 | 500,000 | 600,000 | ||||||||||||
Restricted Stock [Member] | |||||||||||||||
Share Based Compensation [Line Items] | |||||||||||||||
Stock option awarded | 0 | ||||||||||||||
Option Plan [Member] | |||||||||||||||
Share Based Compensation [Line Items] | |||||||||||||||
Amended and restated stock option plan, reserved for issuance | 4,175,000 | 4,175,000 | |||||||||||||
Vesting period | 4 years | ||||||||||||||
Option expiration period | 10 years | ||||||||||||||
Option plan termination date | 18-Jan-06 | ||||||||||||||
Stock options issued and outstanding | 100,000 | 100,000 | 200,000 | ||||||||||||
Employee Stock Purchase Plan [Member] | |||||||||||||||
Share Based Compensation [Line Items] | |||||||||||||||
Recognized compensation expense | 17,000 | 2,000 | 2,000 | ||||||||||||
Number of shares authorized | 550,000 | 550,000 | |||||||||||||
Maximum employee subscription rate | 15.00% | 15.00% | |||||||||||||
Maximum value of shares per employee | 25,000 | ||||||||||||||
Maximum number of shares per employee | 10,000 | ||||||||||||||
Purchase price of stock | 85.00% | ||||||||||||||
Shares available for purchase under ESPP | 61,000 | 61,000 | |||||||||||||
Discount on the purchase price of stock option | 15.00% | ||||||||||||||
Cash received from exercise of stock options | 68,000 | 8,000 | 7,000 | ||||||||||||
Issued shares related to the ESPP | 9,000 | 1,000 | 2,000 | ||||||||||||
2007 Stock Plan [Member] | |||||||||||||||
Share Based Compensation [Line Items] | |||||||||||||||
Option expiration period | 10 years | ||||||||||||||
Stock options issued and outstanding | 600,000 | 600,000 | 500,000 | ||||||||||||
Number of shares authorized | 1,502,209 | 1,250,000 | 1,000,000 | ||||||||||||
Shares available for grant | 100,000 | 100,000 | 200,000 | ||||||||||||
Employees [Member] | 2007 Stock Plan [Member] | |||||||||||||||
Share Based Compensation [Line Items] | |||||||||||||||
Vesting period | 4 years | ||||||||||||||
Directors [Member] | 2007 Stock Plan [Member] | |||||||||||||||
Share Based Compensation [Line Items] | |||||||||||||||
Vesting period | 1 year | ||||||||||||||
Senior Management [Member] | Restricted Stock [Member] | |||||||||||||||
Share Based Compensation [Line Items] | |||||||||||||||
Release period for restricted stock options | 4 years | ||||||||||||||
Board Members [Member] | Restricted Stock [Member] | |||||||||||||||
Share Based Compensation [Line Items] | |||||||||||||||
Stock option awarded | 18,500 | ||||||||||||||
Stock option shares of restricted stock vested | 8,000 | 25,000 | |||||||||||||
Forfeited restricted stock | 1,000 | 1,000 | |||||||||||||
Release period for restricted stock options | 1 year | ||||||||||||||
Board Members And Senior Management [Member] | Restricted Stock [Member] | |||||||||||||||
Share Based Compensation [Line Items] | |||||||||||||||
Recognized compensation expense | 100,000 | 200,000 | 100,000 | ||||||||||||
Evolving Systems U.K. [Member] | |||||||||||||||
Share Based Compensation [Line Items] | |||||||||||||||
Deferred income tax benefits from stock option expense | 15,000 | 15,000 | 14,000 | ||||||||||||
Special Cash Dividend $2.00 Per Share [Member] | |||||||||||||||
Share Based Compensation [Line Items] | |||||||||||||||
Dividend declared date | 10-Nov-11 | ||||||||||||||
Dividends payable, payable date | 3-Jan-12 | ||||||||||||||
Cash dividend declared per common share | $2 | ||||||||||||||
Aggregate value of cash dividend on common stock | 22,300,000 | ||||||||||||||
Special Cash Dividend $2.00 Per Share [Member] | Antidilution Modification [Member] | |||||||||||||||
Share Based Compensation [Line Items] | |||||||||||||||
Increase in aggregate number of shares issuable upon option exercise | 45,749 | ||||||||||||||
Weighted-average exercise price | $5.80 | $7.46 | |||||||||||||
Special Cash Dividend $1.70 Per Share [Member] | |||||||||||||||
Share Based Compensation [Line Items] | |||||||||||||||
Dividend declared date | 8-May-12 | ||||||||||||||
Dividends payable, payable date | 29-May-12 | ||||||||||||||
Cash dividend declared per common share | $1.70 | ||||||||||||||
Aggregate value of cash dividend on common stock | $19,500,000 | ||||||||||||||
Special Cash Dividend $1.70 Per Share [Member] | Antidilution Modification [Member] | |||||||||||||||
Share Based Compensation [Line Items] | |||||||||||||||
Increase in aggregate number of shares issuable upon option exercise | 64,069 | ||||||||||||||
Weighted-average exercise price | $4.53 | $5.80 |
ShareBased_Compensation_Summar
Share-Based Compensation (Summary Of Stock-Based Compensation Expenses) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total share based compensation | $401,000 | $288,000 | $264,000 |
Cost Of License Fees And Services, Excluding Depreciation And Amortization [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total share based compensation | 73,000 | 29,000 | 18,000 |
Cost Of Customer Support, Excluding Depreciation And Amortization [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total share based compensation | 8,000 | 4,000 | 4,000 |
Sales And Marketing [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total share based compensation | 31,000 | 24,000 | 23,000 |
General And Administrative [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total share based compensation | 181,000 | 207,000 | 200,000 |
Product Development [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total share based compensation | $108,000 | $24,000 | $19,000 |
ShareBased_Compensation_Assump
Share-Based Compensation (Assumptions For Weighted Average Fair Value Of Stock Options) (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Stock Incentive Plans [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (years) | 5 years 10 months 24 days | 6 years 1 month 6 days | 5 years 8 months 12 days |
Risk-free interest rate | 1.69% | 1.31% | 0.84% |
Expected volatility | 55.88% | 59.17% | 65.23% |
Expected dividend yield | 4.00% | 4.10% | 3.50% |
Employee Stock Purchase Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (years) | 3 months | 3 months | 3 months |
Risk-free interest rate | 0.03% | 0.05% | 0.08% |
Expected volatility | 40.92% | 44.36% | 49.54% |
Expected dividend yield | 4.50% | 4.00% | 3.40% |
ShareBased_Compensation_Summar1
Share-Based Compensation (Summary Of Stock Option Activity) (Details) (USD $) | 12 Months Ended | |||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | ||
Share-Based Compensation [Abstract] | ||||||
Number of Shares, Options outstanding, Beginning Balance | 676,000 | 704,000 | [1] | |||
Weighted-Average Exercise Price, Options outstanding | $5.11 | $4.86 | ||||
Weighted-Average Remaining Contractual Term, Options outstanding | 5 years 8 months 9 days | 4 years 9 months 4 days | 4 years 7 months 6 days | |||
Aggregate Intrinsic Value, Option Outstanding | $3,491 | $1,757 | $2,959 | |||
Number of Shares, Options granted | 168,000 | 123,000 | ||||
Weighted-Average Exercise Price, Options granted | $10.15 | $8.21 | ||||
Number of Shares, Less options forfeited | -132,000 | -28,000 | ||||
Weighted Average Exercise Price, Less options forfeited | $12.20 | $17.30 | ||||
Number of Shares, Less options exercised | -82,000 | -123,000 | ||||
Weighted-Average Exercise Price, Less options exercised | $5.31 | $3.99 | ||||
Number of Shares, Options outstanding, Ending balance | 630,000 | 676,000 | 704,000 | [1] | ||
Weighted-Average Exercise Price, Options outstanding, Ending Balance | $4.94 | $5.11 | $4.86 | |||
Number of Shares, Option exercisable at December 31, 2014 | 461,000 | |||||
Weighted-Average Exercise Price Options exercisable, Options exercisable at December 31, 2014 | $3.33 | |||||
Weighted-Average Remaining Contractual Term, Option exercisable at December 31, 2014 | 4 years 6 months 11 days | |||||
Aggregate Intrinsic Value, Option exercisable at December 31, 2014 | $2,833 | |||||
Options outstanding, anti-dilution adjustment | 109,818 | |||||
[1] | In 2012, the balance of options outstanding was increased by 109,818 options due to the aforementioned anti-dilution adjustments to outstanding stock option awards. |
ShareBased_Compensation_Summar2
Share-Based Compensation (Summary Of Stock Option Outstanding By Exercise Price Ranges) (Details) (USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Stock Options Outstanding, Number of Shares | 630 |
Stock Options Outstanding, Weighted Ave. Remaining Contractual Life (years) | 5 years 8 months 9 days |
Stock Options Outstanding, Weighted Ave. Exercise Price | $4.94 |
Stock Options Exercisable, Number of Shares | 461 |
Stock Options Exerciable, Weighted Ave. Exercise Price | $3.33 |
$ 0.01 - $3.42 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, Lower Range | $0.01 |
Range of Exercise Prices, Upper Range | $3.42 |
Stock Options Outstanding, Number of Shares | 269 |
Stock Options Outstanding, Weighted Ave. Remaining Contractual Life (years) | 2 years 10 months 13 days |
Stock Options Outstanding, Weighted Ave. Exercise Price | $1.52 |
Stock Options Exercisable, Number of Shares | 269 |
Stock Options Exerciable, Weighted Ave. Exercise Price | $1.52 |
$ 3.43 - $6.85 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, Lower Range | $3.43 |
Range of Exercise Prices, Upper Range | $6.85 |
Stock Options Outstanding, Number of Shares | 169 |
Stock Options Outstanding, Weighted Ave. Remaining Contractual Life (years) | 6 years 3 months 29 days |
Stock Options Outstanding, Weighted Ave. Exercise Price | $4.58 |
Stock Options Exercisable, Number of Shares | 142 |
Stock Options Exerciable, Weighted Ave. Exercise Price | $4.36 |
$ 6.86 - $10.28 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, Lower Range | $6.86 |
Range of Exercise Prices, Upper Range | $10.28 |
Stock Options Outstanding, Number of Shares | 81 |
Stock Options Outstanding, Weighted Ave. Remaining Contractual Life (years) | 9 years 1 month 10 days |
Stock Options Outstanding, Weighted Ave. Exercise Price | $8.90 |
Stock Options Exercisable, Number of Shares | 18 |
Stock Options Exerciable, Weighted Ave. Exercise Price | $8.66 |
$ 10.29 - $13.70 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, Lower Range | $10.29 |
Range of Exercise Prices, Upper Range | $13.70 |
Stock Options Outstanding, Number of Shares | 111 |
Stock Options Outstanding, Weighted Ave. Remaining Contractual Life (years) | 9 years 18 days |
Stock Options Outstanding, Weighted Ave. Exercise Price | $10.89 |
Stock Options Exercisable, Number of Shares | 32 |
Stock Options Exerciable, Weighted Ave. Exercise Price | $10.89 |
Benefit_Plans_Details
Benefit Plans (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Benefit Plans [Abstract] | |||
Employer contribution requirement, percentage | 3.00% | ||
Employer matching contribution, percent | 5.00% | ||
Employer contribution vesting period | 3 years | ||
Benefit Plan recorded expense | $0.40 | $0.30 | $0.30 |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings Per Share [Abstract] | |||||||||||
Income (loss) from continuing operations | $5,608 | $3,806 | $5,564 | ||||||||
Net income | $1,602 | $1,679 | $1,676 | $651 | $804 | $920 | $909 | $1,173 | $5,608 | $3,806 | $5,564 |
Weighted average basic shares outstanding | 11,642 | 11,459 | 11,278 | ||||||||
Basic income per common share - net income | $0.14 | $0.14 | $0.14 | $0.06 | $0.07 | $0.08 | $0.08 | $0.10 | $0.48 | $0.33 | $0.49 |
Diluted weighted average shares outstanding | 11,926 | 11,756 | 11,529 | ||||||||
Effect of dilutive securities - options | 284 | 297 | 251 | ||||||||
Weighted average number of shares outstanding, diluted, total | 11,926 | 11,756 | 11,529 | ||||||||
Diluted income per common share - net income | $0.13 | $0.14 | $0.14 | $0.05 | $0.07 | $0.08 | $0.08 | $0.10 | $0.47 | $0.32 | $0.48 |
Common stock excluded from dilutive stock calculation | 100,000 | 100,000 | 200,000 |
Commitments_And_Contingencies_1
Commitments And Contingencies (Narrative) (Details) (USD $) | 12 Months Ended | 0 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 24, 2013 | |
Other Commitments [Line Items] | ||||
Rent expense | $600,000 | $400,000 | $500,000 | |
Sublease rental income | 0 | 0 | 300,000 | |
Rent term, in years | 3 years | |||
Final cash payment related to acquisition | 494,000 | |||
Bath, England [Member] | ||||
Other Commitments [Line Items] | ||||
Rent term, in years | 5 years | |||
Evolving Systems Labs [Member] | ||||
Other Commitments [Line Items] | ||||
Final cash payment related to acquisition | $494,000 |
Commitments_And_Contingencies_2
Commitments And Contingencies (Future Minimum Commitments) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Commitments And Contingencies [Abstract] | ||
Operating Leases, 2015 | $327 | |
Operating Leases, 2016 | 106 | |
Operating Leases, 2017 | 99 | |
Operating Lease, Total minimum lease payments | 532 | |
Capital Leases, 2015 | 6 | |
Capital Leases, 2016 | 6 | |
Capital Leases, 2017 | 1 | |
Capital Leases, Total minimum lease payments | 13 | |
Less: Amount representing interest | -1 | |
Principal balance of capital lease obligations | 12 | |
Less: Current portion of capital lease obligations | -5 | -8 |
Long-term portion of capital lease obligations | $7 | $11 |
Segment_Information_Segment_In
Segment Information (Segment Information) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | $7,599 | $7,560 | $7,939 | $6,582 | $6,570 | $6,069 | $5,785 | $6,669 | $29,680 | $25,093 | $26,247 |
Revenue less costs of revenue, excluding depreciation and amortization | 22,032 | 17,929 | 18,011 | ||||||||
Other operating expenses | 13,015 | 11,964 | 11,752 | ||||||||
Depreciation and amortization | 341 | 366 | 668 | ||||||||
Restructuring and other recovery | 237 | 558 | |||||||||
Interest income | -19 | -11 | -60 | ||||||||
Interest income, related party | -532 | ||||||||||
Interest expense | 17 | 20 | 3 | ||||||||
Other income (expense) | 27 | -87 | |||||||||
Gain on sale of investments | -891 | ||||||||||
Foreign currency exchange (gain) loss | 9 | 39 | 106 | ||||||||
Income before income taxes | 2,456 | 2,506 | 2,514 | 929 | 551 | 1,356 | 1,438 | 1,735 | 8,405 | 5,080 | 6,965 |
License Fees And Services [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 19,738 | 15,998 | 17,622 | ||||||||
Revenue less costs of revenue, excluding depreciation and amortization | 13,956 | 10,433 | 10,888 | ||||||||
Customer Support [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 9,942 | 9,095 | 8,625 | ||||||||
Revenue less costs of revenue, excluding depreciation and amortization | $8,076 | $7,496 | $7,123 |
Segment_Information_Financial_
Segment Information (Financial Information Relating To Operations By Geographic Region) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | $7,599 | $7,560 | $7,939 | $6,582 | $6,570 | $6,069 | $5,785 | $6,669 | $29,680 | $25,093 | $26,247 |
United Kingdom [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 5,568 | 4,921 | 5,937 | ||||||||
Nigeria [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 3,427 | ||||||||||
Commonwealth Of Independent States [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 3,548 | ||||||||||
Mexico [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 3,200 | 2,527 | |||||||||
Other [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 17,485 | 20,172 | 14,235 | ||||||||
License Fees And Services [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 19,738 | 15,998 | 17,622 | ||||||||
License Fees And Services [Member] | United Kingdom [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 3,551 | 3,018 | 3,938 | ||||||||
License Fees And Services [Member] | Nigeria [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 2,954 | ||||||||||
License Fees And Services [Member] | Commonwealth Of Independent States [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 3,548 | ||||||||||
License Fees And Services [Member] | Mexico [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 2,478 | 2,187 | |||||||||
License Fees And Services [Member] | Other [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 10,755 | 12,980 | 7,949 | ||||||||
Customer Support [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 9,942 | 9,095 | 8,625 | ||||||||
Customer Support [Member] | United Kingdom [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 2,017 | 1,903 | 1,999 | ||||||||
Customer Support [Member] | Nigeria [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 473 | ||||||||||
Customer Support [Member] | Mexico [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 722 | 340 | |||||||||
Customer Support [Member] | Other [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | $6,730 | $7,192 | $6,286 |
Segment_Information_Summary_Of
Segment Information (Summary Of Long-lived Assets, Net) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets, net | $18,277 | $18,980 |
United States [Member] | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets, net | 1,998 | 1,840 |
United Kingdom [Member] | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets, net | 16,091 | 16,985 |
Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets, net | $188 | $155 |
Restructuring_Details
Restructuring (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Restructuring [Abstract] | |||||
Expense of termination employees | $26,000 | $200,000 | $600,000 | ||
Restructuring costs paid | 600,000 | 0 | |||
Restructuring liability | $0 | $400,000 |
Quarterly_Financial_Infomation
Quarterly Financial Infomation (Schedule Of Quarterly Financial Information) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Financial Information [Abstract] | |||||||||||
Total revenue | $7,599 | $7,560 | $7,939 | $6,582 | $6,570 | $6,069 | $5,785 | $6,669 | $29,680 | $25,093 | $26,247 |
Less: cost of revenue and operating expenses | 5,123 | 5,241 | 5,322 | 5,555 | 6,027 | 4,604 | 4,533 | 4,888 | 21,241 | 20,052 | 20,656 |
Income from operations | 2,476 | 2,319 | 2,617 | 1,027 | 543 | 1,465 | 1,252 | 1,781 | 8,439 | 5,041 | 5,591 |
Income before income taxes | 2,456 | 2,506 | 2,514 | 929 | 551 | 1,356 | 1,438 | 1,735 | 8,405 | 5,080 | 6,965 |
Net income | $1,602 | $1,679 | $1,676 | $651 | $804 | $920 | $909 | $1,173 | $5,608 | $3,806 | $5,564 |
Basic income per common share - net income | $0.14 | $0.14 | $0.14 | $0.06 | $0.07 | $0.08 | $0.08 | $0.10 | $0.48 | $0.33 | $0.49 |
Diluted income per common share - net income | $0.13 | $0.14 | $0.14 | $0.05 | $0.07 | $0.08 | $0.08 | $0.10 | $0.47 | $0.32 | $0.48 |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 0 Months Ended | 12 Months Ended | ||
Apr. 23, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2014 | |
Related Party [Line Items] | ||||
Interest income, related party | $532,000 | |||
Proceeds from sale of marketable securities, related party | 17,800,000 | |||
Gain on sale of investments | 891,000 | |||
Primus Telecommunications Group Inc Senior Secured Notes [Member] | ||||
Related Party [Line Items] | ||||
Purchase amount of Primus Telecommunications Group, Inc. | $16,900,000 | |||
Percentage of common shares owned by Singer Family Trust | 14.00% | |||
Singer Family Trust [Member] | ||||
Related Party [Line Items] | ||||
Percentage of common shares owned by Singer Family Trust | 22.00% |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | |||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 17, 2015 | |
Subsequent Event [Line Items] | ||||||||
Cash dividend declared per common share | $0.11 | $0.11 | $0.10 | $0.10 | $0.42 | $0.36 | $2 | |
Rent term, in years | 3 years | |||||||
Subsequent Event [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Dividend declared date | 17-Mar-15 | |||||||
Cash dividend declared per common share | $0.11 | |||||||
Dividends payable, payable date | 31-Mar-15 | |||||||
Dividends payable, record date | 24-Mar-15 | |||||||
Subsequent Event [Member] | London, England [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Rent free period, in months | 3 months | |||||||
Rent term, in years | 10 years | |||||||
Rent term, break clause period, in years | 5 years |