Document And Entity Information
Document And Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Mar. 09, 2016 | Jun. 30, 2015 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,015 | ||
Entity Registrant Name | EVOLVING SYSTEMS INC | ||
Trading Symbol | evol | ||
Entity Central Index Key | 1,052,054 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $ 71.1 | ||
Entity Common Stock, Shares Outstanding | 11,795,331 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 8,400 | $ 9,781 |
Contract receivables, net of allowance for doubtful accounts of $83 and $43 at December 31, 2015 and December 31, 2014, respectively | 7,727 | 9,182 |
Unbilled work-in-progress, net of allowance of $0 and $306 at December 31, 2015 and December 31, 2014, respectively | 4,158 | 4,995 |
Prepaid and other current assets | 1,459 | 1,331 |
Deferred income taxes | 80 | |
Total current assets | 21,744 | 25,369 |
Property and equipment, net | 560 | 659 |
Amortizable intangible assets, net | 4,983 | 608 |
Goodwill | 23,142 | 17,010 |
Long-term deferred income taxes | 586 | |
Total assets | 50,429 | 44,232 |
Current liabilities: | ||
Current portion of capital lease obligations | 5 | 5 |
Revolving Line of credit | 10,000 | |
Accounts payable and accrued liabilities | 4,429 | 4,460 |
Income taxes payable | 324 | 1,227 |
Unearned revenue | 3,330 | 3,883 |
Total current liabilities | 18,088 | 9,575 |
Long-term liabilities: | ||
Capital lease obligations, net of current portion | 1 | 7 |
Contingent earn-out obligation | 178 | 178 |
Unearned revenue - Long term | 420 | |
Total liabilities | $ 18,267 | $ 10,180 |
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, 2015 and December 31, 2014 | ||
Common stock, $0.001 par value; 40,000,000 shares authorized; 11,970,731 shares issued and 11,791,842 outstanding as of December 31, 2015 and 11,843,564 shares issued and 11,664,675 outstanding as of December 31, 2014 | $ 12 | $ 12 |
Additional paid-in capital | 97,418 | 96,005 |
Treasury stock 178,889 shares, at December 31, 2015 and December 31, 2014, at cost | (1,253) | (1,253) |
Accumulated other comprehensive loss | (5,999) | (4,534) |
Accumulated deficit | (58,016) | (56,178) |
Total stockholders' equity | 32,162 | 34,052 |
Total liabilities and stockholders' equity | $ 50,429 | $ 44,232 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Consolidated Balance Sheets [Abstract] | ||
Allowance for doubtful accounts receivable | $ 83 | $ 43 |
Unbilled work-in-progress, allowance | $ 0 | $ 306 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
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 | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares issued | 11,970,731 | 11,843,564 |
Common stock, shares outstanding | 11,791,842 | 11,664,675 |
Treasury Stock, Shares | 178,889 | 178,889 |
Consolidated Statements Of Inco
Consolidated Statements Of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
REVENUE | |||
License fees and services | $ 15,584 | $ 19,738 | $ 15,998 |
Customer support | 9,992 | 9,942 | 9,095 |
Total revenue | 25,576 | 29,680 | 25,093 |
COSTS OF REVENUE AND OPERATING EXPENSES | |||
Costs of license fees and services, excluding depreciation and amortization | 4,881 | 5,782 | 5,565 |
Costs of customer support, excluding depreciation and amortization | 1,568 | 1,866 | 1,599 |
Sales and marketing | 5,844 | 5,734 | 5,364 |
General and administrative | 4,003 | 3,638 | 3,644 |
Product development | 3,847 | 3,643 | 2,956 |
Depreciation | 314 | 246 | 155 |
Amortization | 266 | 95 | 211 |
Restructuring | 533 | 237 | 558 |
Total costs of revenue and operating expenses | 21,256 | 21,241 | 20,052 |
Income from operations | 4,320 | 8,439 | 5,041 |
Other income (expense) | |||
Interest income | 18 | 19 | 11 |
Interest expense | (121) | (17) | (20) |
Other (expense) income | (27) | 87 | |
Foreign currency exchange loss | (6) | (9) | (39) |
Other (expense) income, net | (109) | (34) | 39 |
Income before income taxes | 4,211 | 8,405 | 5,080 |
Income tax expense | 915 | 2,797 | 1,274 |
Net income | $ 3,296 | $ 5,608 | $ 3,806 |
Basic income per common share - net income | $ 0.28 | $ 0.48 | $ 0.33 |
Diluted income per common share - net income | 0.28 | 0.47 | 0.32 |
Cash dividend declared per common share | $ 0.44 | $ 0.42 | $ 0.36 |
Weighted average basic shares outstanding | 11,693 | 11,642 | 11,459 |
Weighted average diluted shares outstanding | 11,935 | 11,926 | 11,756 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Consolidated Statements Of Comprehensive Income [Abstract] | |||
Net income | $ 3,296 | $ 5,608 | $ 3,806 |
Other comprehensive income: | |||
Foreign currency translation (gain) loss | (1,465) | (1,518) | 281 |
Comprehensive income | $ 1,831 | $ 4,090 | $ 4,087 |
Consolidated Statements Of Chan
Consolidated Statements Of Changes In Stockholders' Equity - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-In Capital [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated (Deficit) [Member] | Total |
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 | |||||
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 | 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 | 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 issuance, net of 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 | |||||
Stock option exercises | 243 | $ 243 | ||||
Stock option exercises, shares | 99,897 | 100,000 | ||||
Common Stock issued pursuant to the Employee Stock Purchase Plan | 57 | $ 57 | ||||
Common Stock issued pursuant to the Employee Stock Purchase Plan, shares | 8,302 | |||||
Stock-based compensation | 317 | 317 | ||||
Excess tax benefits from stock-based compensation | 796 | 796 | ||||
Restricted stock issuance, net of cancellations, shares | 18,968 | |||||
Common stock cash dividends | (5,134) | (5,134) | ||||
Net income | 3,296 | 3,296 | ||||
Foreign currency translation adjustment | (1,465) | (1,465) | ||||
Balance at Dec. 31, 2015 | $ 12 | $ 97,418 | $ (1,253) | $ (5,999) | $ (58,016) | $ 32,162 |
Balance, shares at Dec. 31, 2015 | 11,791,842 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 3,296 | $ 5,608 | $ 3,806 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Depreciation | 314 | 246 | 155 |
Amortization of intangible assets | 266 | 95 | 211 |
Amortization of debt issuance costs | 14 | 15 | 18 |
Stock based compensation | 317 | 401 | 288 |
Unrealized foreign currency transaction losses, net | 6 | 9 | 39 |
Provision for doubtful accounts | 41 | ||
Provision for unbilled work-in-progress allowance | 114 | ||
Benefit from deferred income taxes | (1,123) | (282) | (257) |
Change in operating assets and liabilities: | |||
Contract receivables | 2,202 | (3,398) | (1,514) |
Unbilled work-in-progress | 721 | (2,977) | 2,444 |
Prepaid and other assets | (120) | (214) | (28) |
Accounts payable and accrued liabilities | (2,305) | 985 | (204) |
Unearned revenue | (1,404) | (888) | 3,543 |
Net cash provided by (used in) operating activities | 2,225 | (400) | 8,615 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchase of property and equipment | (198) | (588) | (270) |
Business combinations, net of cash | (9,014) | (412) | |
Restricted cash | 24 | 53 | |
Net cash used in investing activities | (9,212) | (564) | (629) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Capital lease payments | (5) | (8) | (5) |
Proceeds from the revolving line of credit | 10,000 | ||
Common stock cash dividends | (5,143) | (4,883) | (4,127) |
Excess tax benefits from stock-based compensation | 797 | 1,390 | 416 |
Proceeds from the issuance of stock | 300 | 300 | 494 |
Net cash provided by (used in) financing activities | 5,949 | (3,201) | (3,222) |
Effect of exchange rate changes on cash | (343) | 161 | 177 |
Net (decrease) increase in cash and cash equivalents | (1,381) | (4,004) | 4,941 |
Cash and cash equivalents at beginning of year | 9,781 | 13,785 | 8,844 |
Cash and cash equivalents at end of year | 8,400 | 9,781 | 13,785 |
Supplemental disclosure of cash and non-cash investing and financing transactions: | |||
Interest paid | 107 | 1 | 2 |
Income taxes paid | 2,089 | 182 | 69 |
Common stock dividends declared | 5,221 | 4,966 | 4,191 |
Property and equipment purchased and included in accounts payable | $ 1 | 191 | |
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 Sig
Organization And Summary Of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
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 and maintain software solutions that provide a variety of service activation and provisioning functions. Our service activation solution, Tertio ® (“TSA”) is used to activate bundles of voice, video and data services for wireless, wireline and cable network operators; our SIM card activation solution, Dynamic SIM Allocation TM (“DSA”) is used to dynamically allocate and assign resources to Mobile Network Operators (“MNOs”) devices that rely on SIM cards; our Mobile Data Enablement TM (“MDE”) solution provides a data consumption and policy management solution for wireless carriers and Mobile Virtual Network Operators (“MVNOs”) that monitor the usage and consumption of data services; our Total Number Management™ (“TNM”) product is a scalable and fully automated database solution that enables operators to reliably and efficiently manage their telephone numbers as well as other communication identifiers (i.e. SIMs, MSISDNs, IMSIs, ICCIDs, IPs). Our solutions can be deployed on premise or offered as a Software-as-a-Service (“SaaS”). On September 30, 2015 we announced the acquisition of privately held RateIntegration, Inc., d/b/a Sixth Sense Media (“SSM”), a provider of real time analytics and marketing solutions to wireless carriers. SSM’s software solution platform, Real-time Lifecycle Marketing ™ (“RLM”), enables carriers’ marketing departments to innovate, execute and manage highly-personalized and contextually-relevant, interactive campaigns that engage consumers in real time. We believe the addition of SSM’s RLM product to our existing service activation and data enablement products will produce a powerful platform for wireless carriers. A product suite which we refer to as our Mobile Marketing Solutions (“MMS”) will provide sophisticated, highly tailored mobile campaigns which can be executed based on critical subscriber data captured during the initial activation experience (DSA and RLM) as well as in-life subscriber usage via MDE. We see the opportunity to leverage our technology to provide MNOs with sophisticated mobile marketing campaigns that will extend beyond voice, text and data usage campaigns and provide marketing services that will assist MNOs to market services that include retail mobile marketing, gaming, streaming video as well as social media based campaigns. Business Combination - On September 30, 2015 we acquired SSM, now known as Evolving Systems NC. This business combination is reflected in these consolidated financial statements since the acquisition date. Refer to Note 2, 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. 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 Labs and Evolving Systems NC. 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. 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, 2015 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 which 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 2015 Allowance for doubtful accounts $ 43 $ 41 $ - $ (1) $ 83 2014 Allowance for doubtful accounts $ 73 $ - $ (25) $ (5) $ 43 2013 Allowance for doubtful accounts $ 70 $ - $ - $ 3 $ 73 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 2015 Allowance for unbilled work-in-progress $ 306 $ - $ (306) $ - $ - 2014 Allowance for unbilled work-in-progress $ 317 $ - $ - $ (11) $ 306 2013 Allowance for unbilled work-in-progress $ 295 $ 114 $ (114) $ 22 $ 317 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, 2015 and 2014, we had $0 and $0.4 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, 2015, no significant customer exceeded the threshold (defined as contributing at least 10% ) of revenue from continuing operations. For the year ended December 31, 2014, two significant customers 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. As of December 31, 2015, two significant customers accounted for approximately 36 % ( 25 % and 11 %) of contract receivables and unbilled work-in-progress. These customers are large telecommunications operators in Africa and Europe. 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. 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 $ 7.3 million and $9. 3 million as of December 31, 2015 and 2014, 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 $0.1 million, $ 0.2 million and $0.2 million for the years ended December 31, 2015, 2014 and 2013. 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 three years ended December 31, 2015. In addition, we did not have any capitalized internal software development costs included in our December 31, 2015 and 2014 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 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, however the FASB has deferred the effective date by one year. We do not expect the adoption of this standard to have a significant impact on the Company’s financial position and results of operations. In August 2014, the FASB issued ASU 2014-15 Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. Management of public and private companies will be required to evaluate whether there are conditions and events that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the financial statements are issued (or available to be issued when applicable) and, if so, disclose that fact. Management will be required to make this evaluation for both annual and interim reporting periods, if applicable. The standard is effective for annual and interim periods ending after December 15, 2016. Early adoption is permitted for annual or interim reporting periods for which the financial statements have not previously been issued. We do not expect the adoption of this ASU to impact the consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) , which requires lessees to put most leases on their balance sheets by recognizing a lessee’s rights and obligations, while expenses will continue to be recognized in a similar manner to today’s legacy lease accounting guidance. This ASU could also significantly affect the financial ratios used for external reporting and other purposes, such as debt covenant compliance. This ASU will be effective for us on January 1, 2019, with early adoption permitted. We are currently in the process of assessing the impact of this ASU on our consolidated financial statements. |
Acquisition
Acquisition | 12 Months Ended |
Dec. 31, 2015 | |
Acquisition [Abstract] | |
Acquisition | NOTE 2 — ACQUISITION On September 30, 2015 we acquired privately held RateIntegration, Inc. d/b/a Sixth Sense Media (“SSM”), now known as Evolving Systems NC for an initial payment of approximately $9.75 million and a $0.5 million working capital adjustment. We also agreed to make a payment on the one year anniversary of the transaction of $250,000, with such payment being available to secure SSM’s representations and warranties in the agreement. 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 $6.9 million, was recorded as goodwill. The Company is in the process of finalizing the purchase allocation, thus the provisional measures of deferred income taxes, intangibles and goodwill are subject to change. The Company expects the purchase price allocation will be finalized in 2016. The results of SSM’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. Combining SSM’s real-time analytics and campaign capabilities with our DSA and MDE solutions will allow the company to offer global wireless carriers solutions that utilize the highly valuable contextual data captured from the subscribers’ initial welcome experience via DSA, their network usage via RLM and their on-device app usage via MDE. The combined solutions will create a highly personalized experience that engages subscribers in real time from the first time subscribers power on their new devices right through their day-to-day usage. Our strategic focus is primarily on the wireless markets in the areas of subscriber activation, SIM card management and activation, self—service mobile applications, data enablement solutions, connected device activation, mobile marketing campaigns, advertising and analytics and management of services. Total purchase price is summarized as follows (in thousands): September 30, 2015 Cash Consideration Initial Cash Purchase Price $ 9,750 Cash/Working Capital Adjustment 535 Total Cash Consideration $ 10,285 Assumed Liabilities 250 Total purchase price $ 10,535 The following table summarizes the estimated fair values of the assets and liabilities assumed at the acquisition date (in thousands): September 30, 2015 Cash and cash equivalents $ 1,521 Contract receivables 1,057 Unbilled work-in-progress 89 Intangible assets 4,642 Prepaid and other current assets 68 Deferred tax asset - Other assets, non-current 32 Total identifiable assets acquired $ 7,409 Accounts payable and accrued liabilities $ 1,506 Deferred tax liability 1,760 Deferred revenue 557 Total identifiable liabilities acquired $ 3,823 Net identifiable assets acquired 3,586 Goodwill 6,949 Net assets acquired $ 10,535 We recorded $4.6 million in intangible assets as of the acquisition date with a weighted-average amortization period of approximately seven years and are amortizing the value of the trade name, technology, non-competition and customer relationships over an estimated useful life of 2, 8, 2 and 7 years, respectively. We recorded $0.2 million of amortization expense related to the acquired intangible assets was recorded during the period ended December 31, 2015. The $5.4 million of goodwill was assigned to the license and service segment and $1.5 million was assigned to the customer support segment. The goodwill recognized is attributed primarily to expected synergies and the assembled workforce of SSM. As of the date of this report there were no changes in the recognized amounts of goodwill resulting from the acquisition of SSM. Intangible assets related to the Evolving Systems NC’s acquisition as of December 31, 2015 were as follows (in thousands): December 31, 2015 Gross Amount Accumulated Amortization Net Carrying Amount Weighted-Average Amortization Period Purchased software $ 1,679 $ 53 $ 1,626 8 yrs Trademarks and tradenames 122 15 107 2 yrs Non-competition 33 4 29 2 yrs Customer relationships 2,808 100 2,708 7 yrs $ 4,642 $ 172 $ 4,470 7.19 yrs Evolving Systems NC’s contributed revenue and earnings for the period of October 1, 2015 to December 31, 2015 as follows (in thousands): Revenue and earnings included in the Consolidated Statement of Operations from October 1, 2015 through December 31, 2015 Revenue $ 1,367 Net Income 306 Pro Forma The following unaudited pro forma financial information reflects the consolidated results of operations of as if the acquisition of SSM had taken place on January 1, 2015 and 2014. The pro forma information includes adjustments for the amortization of intangible assets. The following unaudited pro forma financial information is not necessarily indicative of the results of operations as they would have been had the transaction been effected on the assumed date (in thousands). Year Ended December 31, 2015 2014 (unaudited) (unaudited) Revenue $ 30,190 $ 35,782 Earnings 3,645 5,718 SSM did not have any material, nonrecurring pro forma adjustments directly attributable to the business combination included in the reported pro forma revenue and earnings. |
Goodwill And Intangible Assets
Goodwill And Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill And Intangible Assets [Abstract] | |
Goodwill And Intangible Assets | NOTE 3 — 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. India UK U.S. UK Goodwill Balance as of December 31, 2013 $ 1,097 $ - $ 7,532 $ - $ 9,307 $ 17,936 Effects of changes in foreign currency exchange rates (1) - - (414) - (512) (926) Balance as of December 31, 2014 $ 1,097 $ - $ 7,118 $ - $ 8,795 $ 17,010 Goodwill acquired during the year 5,209 184 1,556 6,949 Acquired goodwill adjusted during the year (25) (7) (32) Effects of changes in foreign currency exchange rates (1) - (0) (351) - (434) (785) Balance as of December 31, 2015 $ 6,281 $ 184 $ 6,767 $ 1,549 $ 8,361 $ 23,142 (1) Represents the impact of foreign currency translation for instances when goodwill is recorded in foreign entities whose functional currency is also their local currency. Goodwill balances are translated into U.S. dollars using exchange rates in effect at period end. Adjustments related to foreign currency translation are included in other comprehensive income. We performed our annual goodwill impairment test as of July 31, 2015, which we had $17.0 million of goodwill included the following reporting units, License and Services (“L&S”) — US, Evolving Systems Labs of $1.1 million and Evolving Systems U.K. of $7.2 million and Customer Support (“CS”) — UK of $8.7 million. The fair value of each reporting unit was estimated using both market and income based approaches. Specifically, we incorporated observed market multiple data from selected guideline public companies and values arrived at through the application of discounted cash flow analyses which in turn were based upon our financial projections as of the valuation date. In our analysis, we weighted the application of discounted cash flow analysis at 70% and observed market multiple data from selected guideline public companies at 30% . This analysis requires significant judgments, including estimation of future cash flows, which is dependent on internal forecasts, estimation of the long-term rate of growth for our business, estimation of the useful life over which cash flows will occur, and determination of our weighted average cost of capital. Changes in these estimates and assumptions could materially affect the determination of fair value and goodwill impairment for each reporting unit. If the carrying value of a reporting unit were to exceed its fair value, we would then be required to perform a second step of the impairment analysis which could lead to goodwill impairment should the carrying amount exceed the fair value. The excess of carrying amount over fair value would be charged to operations as an impairment loss. If the projected future performance of either of our segments as estimated in the income valuation approach is adjusted downward or is lower than expected in the future, we could be required to record a goodwill impairment charge. As a result of the first step of the 2015 goodwill impairment analysis, the fair value of each reporting unit exceeded its carrying value. Therefore the second step was not necessary. However, a hypothetical decrease of approximately 20% due to lower than estimated future cash flows in the estimated fair value of our L&S-U.S. Evolving Systems Labs, Inc. reporting unit would result in its carrying value exceeding its estimated fair value and therefore require the second step, which could result in impairment for that reporting unit. From July 31, 2015 through the date of this report, no events have occurred that we believe may have impaired goodwill. As a result of the acquisition of SSM, $6.9 million of goodwill was acquired during the period, of which $5.4 million was assigned to the license and service segment and $1.5 million was assigned to the customer support segment. We amortized identifiable intangible assets for Evolving Systems Labs and Evolving Systems NC on a straight-line basis over their estimated lives ranging from one to eight years. As of December 31, 2015 and December 31, 2014, identifiable intangibles were as follows (in thousands): December 31, 2015 December 31, 2014 (2) Gross Amount Accumulated Amortization Net Carrying Amount Gross Amount Accumulated Amortization Net Carrying Amount Weighted-Average Amortization Period Purchased software $ 2,118 $ 171 $ 1,947 $ 439 $ 64 $ 375 7.3 yrs Trademarks and tradenames 185 43 142 63 15 48 2.6 yrs Non-competition 33 4 29 - - - 2.0 yrs Customer relationships 3,024 159 2,865 216 31 185 6.8 yrs $ 5,360 $ 377 $ 4,983 $ 718 $ 110 $ 608 6.8 yrs (2) Changes in intangible values as of December 31, 2015 compared to December 31, 2014 are the direct result of the acquisition of Evolving Systems NC in the third quarter of 2015. Amortization expense of identifiable intangible assets was $0.3 million, $0.1 million and $0.2 million for the years ended December 31, 2015, 2014 and 2013, respectively. Expected future amortization expense related to identifiable intangibles based on our carrying amount as of December 31, 2015 was as follows (in thousands): Year ending December 31, 2016 $ 783 2017 764 2018 703 2019 693 2020 693 Thereafter 1,347 $ 4,983 |
Balance Sheet Components
Balance Sheet Components | 12 Months Ended |
Dec. 31, 2015 | |
Balance Sheet Components [Abstract] | |
Balance Sheet Components | NOTE 4 — BALANCE SHEET COMPONENTS The components of certain balance sheet line items are as follows (in thousands): December 31, Property and equipment: 2015 2014 Computer equipment and purchased software $ 4,814 $ 4,796 Furniture, fixtures and leasehold improvements 1,155 1,078 5,969 5,874 Less accumulated depreciation (5,409) (5,215) $ 560 $ 659 December 31, Assets acquired under capital lease: 2015 2014 Original book value $ 24 $ 24 Accumulated amortization (18) (13) Net book value $ 6 $ 11 Depreciation expense was $0.3 million, $0.2 million and $ 0 .2 million for each of the years ended December 31, 2015, 2014 and 2013, respectively. Included in computer equipment and purchased software at December 31, 2015 and 2014 are assets under capital lease. Depreciation expense related to assets under capital leases was $ 5,000 , $ 5,000 and $ 4,000 for the years ended December 31, 2015, 2014 and 2013, respectively. December 31, Accounts payable and accrued liabilities: 2015 2014 Accounts payable $ 716 $ 729 Accrued liabilities 2,520 2,366 Accrued compensation and related expenses 1,193 1,365 $ 4,429 $ 4,460 |
Revolving Line Of Credit
Revolving Line Of Credit | 12 Months Ended |
Dec. 31, 2015 | |
Revolving Line Of Credit [Abstract] | |
Revolving Line Of Credit | NOTE 5 – REVOLVING LINE OF CREDIT On September 28, 2015 , we entered into the Third Amendment to the Loan and Security Agreement with East West Bank to increase the current revolving credit facility from $5.0 million to $10.0 million (the “Revolving Facility”). The additional $5.0 million (“Revolving Line II”) will bear interest at a floating rate equal to the U.S. Prime Rate plus 2.25% ; the existing $5.0 million credit facility (“Revolving Line”) will continue to bear interest at the greater of 2.75% or the U.S. Prime Rate minus one half of one percent ( 0.50% ). The Revolving Facility is secured by substantially all of the 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, the Company must have a balance of $4.0 million in cash on deposit with East West Bank, a minimum current ratio and a specified ratio of Total Liabilities to Tangible Net Worth, which are both as defined in the Revolving Facility. The Revolving Facility requires the Company to pay a one-time credit facility fee of $10,000 for extension of Revolving Line II, an annual credit facility fee of $10,000 and monthly payments of interest, with the unpaid balance due on October 22, 2016 . The Revolving Facility includes negative covenants that place restrictions on the Company’s ability to, among other things: restrict distributions to its shareholders in the aggregate amount not to exceed $1.8 million in any fiscal quarter, incur additional indebtedness; create liens or other encumbrances on assets; make loans, enter into letters of credit, guarantees, investments and acquisitions; sell or otherwise dispose of assets; cause or permit a change of control; merge or consolidate with another entity; make negative pledges; enter into affiliate transactions; and change the nature of its business materially. Outstanding amounts under the Revolving Facility may be accelerated by notice from East West Bank upon the occurrence and continuance of certain events of default, including without limitation: payment defaults, breach of covenants beyond applicable grace periods, breach of representations and warranties, bankruptcy and insolvency defaults, and the occurrence of a material adverse effect (as defined). Acceleration is automatic upon the occurrence of certain bankruptcy and insolvency defaults. As of December 31, 2015, we are in compliance with the covenants and have borrowed $10.0 million against the Revolving Facility. The proceeds from the borrowings against the facilities were used for the initial payment for the SSM acquisition agreement on September 30, 2015. Refer to Note 15, Subsequent Events, of our Consolidated Financial Statements included elsewhere in this Annual Report on Form 10-K for information regarding the Fifth Amendment to the Loan and Security Agreement with East West Bank. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Taxes [Abstract] | |
Income Taxes | NOTE 6 − INCOME TAXES The pre-tax income from continuing operations on which the provision for income taxes was computed is as follows (in thousands): For the Years Ended December 31, 2015 2014 2013 Domestic $ (2,948) $ (1,274) $ (1,347) Foreign 7,159 9,679 6,427 Total $ 4,211 $ 8,405 $ 5,080 The expense (benefit) from continuing operations for income taxes consists of the following (in thousands): For the Years Ended December 31, 2015 2014 2013 Current: Federal $ 789 $ 1,468 $ 441 Foreign 1,174 1,637 1,015 State 76 (26) 70 Total current 2,039 3,079 1,526 Deferred: Federal (1,023) (301) (66) Foreign 16 19 (178) State (117) 0 (8) Total deferred (1,124) (282) (252) Total $ 915 $ 2,797 $ 1,274 As of December 31, 2014, we had federal Net Operating Loss (“NOL”) carryforwards of approximately $2.3 million. As of December 31, 2015 we had no NOL carryforwards remaining. As of December 31, 2015 and 2014, we had state NOL’s of approximately $17.4 million and $ 17.1 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 a nd Alternative Minimum Tax (“AMT”) credits of $0.8 million which may expire at various times beginning in 2028 and ending in 2034 . In our U.S. Federal income tax returns we historically deducted income taxes paid to various countries. In our 2014 U.S. Federal income tax return we had $2.3 million of NOL carryforwards. Our income tax calculations have historically been under the regular and AMT regimes found in U.S. tax laws. The U.S. tax system contains rules to alleviate the burden of double taxation on income generated in foreign countries and subject to tax in such countries. The U.S. allows for either a deduction or credit of such foreign taxes against U.S. taxable income. An election to either claim a deduction or credit on such foreign income taxes can be made each tax year, independent from elections made in other years. A credit reduces a company’s actual U.S. income tax on a dollar-for-dollar basis, while a deduction reduces only the company’s income subject to tax. We made a comparison of our foreign dividends paid by our foreign subsidiary for which we deducted foreign taxes claimed versus claiming a Foreign Tax Credit (“FTC”) on the dividend paid by the foreign subsidiary. The dividends received were grossed-up with its corresponding foreign taxes. The U.S. law requires the offset of taxable income with NOL prior to applying the FTC rules. We determined it was beneficial for the company to gross-up the foreign dividends paid by the foreign subsidiary for the years 2012 through 2014 and make the election to claim a FTC. By doing so we fully utilized our December 31, 2014, $2.3 million balance of the federal NOL. As a result, the company has approximately $2.8 million of FTC’s to carryforward into 2015 and subsequent years as a deferred tax asset. In 2015, our deferred tax asset balance was increased by approximately $0.9 million of FTC’s. 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. Due to the aforementioned election to claim a FTC, during the year 2015 $ 0.8 million of the federal NOL was realized , with a corresponding increase in additional paid-in capital. 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, 2015 2014 Deferred tax assets: Foreign tax credits carryforwards $ 3,667 $ - Net operating loss carryforwards - State 540 555 Research and development credits 303 303 Equity compensation 686 661 AMT credit 770 942 Depreciable assets 110 107 Intangibles - 203 Accrued liabilities and reserves 340 607 Total deferred tax assets 6,416 3,378 Deferred tax liabilities: Intangibles (1,512) - Undistributed foreign earnings (666) (897) Accrued liabilities and reserves (23) (16) Total deferred tax liability (2,201) (913) Net deferred tax assets, before valuation allowance 4,215 2,465 Valuation allowance (4,215) (1,799) Net deferred tax asset $ - $ 666 Financial statement classification: Current deferred tax asset $ - $ 80 Long-term tax (liability) asset - 586 $ - $ 666 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. In September 2015, we established a deferred tax liability of $1.8 million as a result of the acquisition of Evolving Systems NC. As of December 31, 2015 and 2014, there was a net deferred tax liability of ($ 1.5) million and a net deferred tax asset of $ 0.2 million, respectively. This net deferred tax liability will be recognized as the identifiable intangibles are amortized. We continue to maintain a full valuation allowance on the domestic net deferred tax asset, with the exception of our FTC which has a partial valuation allowance, 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, 2015 2014 2013 U.S. federal income tax expense at statutory rates $ 2,392 $ 4,595 $ 2,143 State income tax expense, net of federal impact - 542 46 Foreign Tax Credit (3,667) - - Foreign rate differential (449) (1,452) (332) Foreign deemed dividends 939 1,783 871 Undistributed foreign earnings (221) - - Change in valuation allowance 2,415 (1,971) (492) Research and development expenses (1,096) (867) (859) Foreign taxes 314 53 93 Section 78 Gross-UP 371 - - Permanent differences and other, net (83) 114 (196) Total tax expense $ 915 $ 2,797 $ 1,274 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, 2015 and 2014, 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 may be 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, 2015 and 2014, which would be 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 2012. During 2004, we formed Evolving Systems India, a wholly owned subsidiary of Evolving Systems which is used primarily for product development and customer service and support . The Company has the intent and current ability to indefinitely reinvest profits of Evolving Systems India for the year ended December 31, 2015. Undistributed foreign earnings for the year ended December 31, 2015 are approximately $ 1.0 million. Repatriation to the U.S. in the form of dividend distributions from the India controlled foreign subsidiary would give rise to taxation. Section 382 of the Internal Revenue Code imposes an annual limitation on the amount of certain tax attributes, including NOL and tax credit carryovers, available to be utilized following an "Ownership Change" triggered by a shift of greater than 50% in stock ownership over a three year testing period. We believe that SSM may have had one or more such Ownership Changes prior to its acquisition by Evolving Systems, Inc. However, the amount of the applicable limitation is not known, and has not been estimated at this time. Accordingly, because of this uncertainty, the Company has not recorded as part of its initial purchase accounting a deferred tax asset associated with the NOL carryforward of SSM. We intend to review the ownership history of SSM to determine the utilizable portion of its tax attributes as soon as practicable, and if appropriate, adjust the deferred tax assets and purchase accounting upon the conclusion of its assessment. Two Indian subsidiaries of SSM, were acquired pursuant to the terms of the Agreement and Plan of Merger dated September 30, 2015. We have reason to believe there is uncertainty related to the lack of historical US International reporting for these two foreign subsidiaries, and are in the process of determining whether either or both of these subsidiaries are controlled foreign corporations (“CFCs”) within the meaning of the Internal Revenue Code and related Regulations, or if a “check-the-box” election has taken place to effectively treat one or both of these subsidiaries as disregarded entities for US federal tax reporting purposes. The Company is in the process of obtaining pertinent information to assess the degree of uncertainty and to quantify related costs or liabilities. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity [Abstract] | |
Stockholders' Equity | NOTE 7 − STOCKHOLDERS’ EQUITY Common Stock Dividends Our Board of Directors declared a cash dividend of $0.11 per share for each of the four quarters of 2015. There were no accrued dividends as of December 31, 2015. 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, 2015 and December 31, 2014, 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. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2015 | |
Share-Based Compensation [Abstract] | |
Share-Based Compensation | NOTE 8 — 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 $0.3 million, $0.4 million and $0.3 million for the years ended December 31, 2015, 2014 and 2013, 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, 2015 2014 2013 Cost of license fees and services, excluding depreciation and amortization $ 72 $ 73 $ 29 Cost of customer support, excluding depreciation and amortization 10 8 4 Sales and marketing 36 31 24 General and administrative 112 181 207 Product development 87 108 24 Total share based compensation $ 317 $ 401 $ 288 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, 2015 and 2014, no options remained and 0.1 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 . In June 2015, our stockholders approved an amendment to the 2007 Stock Plan which increased the maximum shares that may be awarded under the plan to 2,002,209. 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, 2015 and 2014, there were approximately 0.3 million and 0.1 million shares, respectively, available for grant under the 2007 Stock Plan. Of the shares available as of December 31, 2015, 0.2 million shares were reserved for acquisitions. At December 31, 2015 and 2014, 0.8 million and 0.6 million options were issued and outstanding under the 2007 Stock Plan, respectively. During the year ended December 31, 2015 we awarded a total of 20,000 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, 2015 and 2014, approximately 94 and 8,000 shares of restricted stock vested, respectively. There were forfeitures of approximately 1,000 shares of restricted stock during years ended December 31, 2015 and 2014. 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 $8,000 , $ 0.1 million and $ 0.2 million for the years ended December 31, 2015, 2014 and 2013, respectively for restricted stock. The weighted-average assumptions used in the fair value calculations are as follows: For the Years Ended December 31, 2015 2014 2013 Expected term (years) 6.0 5.9 6.1 Risk-free interest rate 1.37 % 1.69 % 1.31 % Expected volatility 42.01 % 55.88 % 59.17 % Expected dividend yield 6.4 % 4.0 % 4.1 % The following is a summary of stock option activity under the stock option plans for the years ended December 31, 2015 and 2014: Weighted- Average Weighted- Remaining Aggregate Number of Average Contractual Intrinsic Shares Exercise Term Value (in thousands) Price (Years) (in thousands) 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 granted 331 $ 7.13 Less options forfeited (27) $ 9.39 Less options exercised (100) $ 2.43 Options outstanding at December 31, 2015 834 $ 5.97 6.94 $ 957 Options exercisable at December 31, 2015 463 $ 4.74 5.11 $ 954 The following is a summary of stock options outstanding under the plans as of December 31, 2015: 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 - $ 1.34 145 2.41 $ 0.80 145 $ 0.80 $ 2.80 - $ 2.86 30 3.19 $ 2.84 30 $ 2.84 $ 3.20 - $ 3.72 86 4.02 $ 3.69 86 $ 3.70 $ 4.09 - $ 5.45 37 6.12 $ 4.44 35 $ 4.45 $ 6.00 - $ 6.63 247 9.31 $ 6.09 32 $ 6.52 $ 7.70 - $ 10.90 289 8.55 $ 9.65 135 $ 9.73 834 6.94 $ 5.97 463 $ 4.74 The weighted-average grant-date fair value of stock options granted during the years ended December 31, 2015, 2014 and 2013 was $ 1.60 , $ 3.80 and $ 3.16 respectively. As of December 31, 2015, there were approximately $ 0.8 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 2.9 years. The total intrinsic value of stock option exercises for the years ended December 31, 2015, 2014 and 2013 was $ 0.3 million, $ 0.4 million and $ 0.6 million, respectively. The total fair value of stock awards vested during the years ended December 31, 2015, 2014 and 2013 was $ 0.3 million, $ 0.3 million and $ 0.1 million, respectively. The deferred income tax benefits from stock options expense related to Evolving Systems U.K. totaled approximately $ 19,000 , $ 15,000 and $ 15,000 for the years ended December 31, 2015, 2014 and 2013, respectively. Cash received from stock option exercises was $ 0.2 million, $ 0.2 million and $ 0.5 million for the years ended December 31, 2015, 2014 and 2013, 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, 2015 or 2013. 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, 2015, there were approximately 53,000 shares available for purchase. For the years ended December 31, 2015, 2014 and 2013, we recorded compensation expense of $ 13,000 , $ 17,000 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, 2015 2014 2013 Expected term (years) 0.25 0.25 0.25 Risk-free interest rate 0.07 % 0.03 % 0.05 % Expected volatility 39.58 % 40.92 % 44.36 % Expected dividend yield 6.3 % 4.5 % 4.0 % Cash received from employee stock plan purchases was approximately $ 53,000 , $ 68,000 and $ 8,000 for the years ended December 31, 2015, 2014 and 2013, respectively. We issued shares related to the ESPP of approximately 9,000 , 9,000 and 1,000 for the years ended December 31, 2015, 2014 and 2013, respectively. |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2015 | |
Benefit Plans [Abstract] | |
Benefit Plans | NOTE 9 — 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 2015, 2014 and 2013, we recorded a consolidated expense of $ 0.4 million, $ 0.4 million and $ 0.3 million, under the aforementioned plans, respectively. |
Earnings Per Common Share
Earnings Per Common Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Common Share [Abstract] | |
Earnings Per Common Share | NOTE 10 — 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 2015 2014 2013 Basic income per share: Net income $ 3,296 $ 5,608 $ 3,806 Basic weighted average shares outstanding 11,693 11,642 11,459 Basic income per share: Net Income $ 0.28 $ 0.48 $ 0.33 Diluted income per share: Net income $ 3,296 $ 5,608 $ 3,806 Weighted average shares outstanding 11,693 11,642 11,459 Effect of dilutive securities - options 242 284 297 Diluted weighted average shares outstanding 11,935 11,926 11,756 Diluted income per share: Net Income $ 0.28 $ 0.47 $ 0.32 Weighted average options to purchase approximately 0.3 million, 0.1 million and 0.1 million shares of common stock equivalents were excluded from the computation of diluted weighted average shares outstanding for the years ended December 31, 2015, 2014 and 2013, 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, 2015 | |
Commitments And Contingencies [Abstract] | |
Commitments And Contingencies | NOTE 11 — 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, Durham, North Carolina, London and Bath, England, Bangalore and Kolkata, India, Kuala Lumpur, Malaysia and Bucharest, Romania. Rent expense was $ 0.6 million, $ 0.6 million and $ 0.4 million for the years ended December 31, 2015, 2014 and 2013, respectively. Rent expense is net of sublease rental income. There were was no sublease rental income for the years ended December 31, 2015, 2014 and 2013. Our headquarters facility lease extends for the term through November 30, 2017. The lease contains a clause that adjusts the lease rate every year. The lease rate increases annually as of December 1. Our London, England facility contains a clause which gives us six months free rent over the five year term. 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, 2015 are as follows (in thousands): Operating Leases Capital Leases 2016 $ 656 $ 6 2017 626 1 2018 438 - 2019 243 - 2020 56 - Total minimum lease payments $ 2,019 7 Less: Amount representing interest (1) Principal balance of capital lease obligations 6 Less: Current portion of capital lease obligations (5) Long-term portion of capital lease obligations $ 1 (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, 2015 and 2014. 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, 2015 and 2014. 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, 2015 and 2014. 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, 2015 and 2014. 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 and has not been paid to date. We have made claims against this payment which are currently under dispute. Once settled the final payment will be released. (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, 2015 | |
Segment Information [Abstract] | |
Segment Information | NOTE 12 — 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 Chief Financial Officer 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, 2015 2014 2013 Revenue License fees and services $ 15,584 $ 19,738 $ 15,998 Customer support 9,992 9,942 9,095 Total revenue 25,576 29,680 25,093 Revenue less costs of revenue, excluding depreciation and amortization License fees and services 10,703 13,956 10,433 Customer support 8,424 8,076 7,496 19,127 22,032 17,929 Unallocated Costs Other operating expenses 13,694 13,015 11,964 Depreciation and amortization 580 341 366 Restructuring 533 237 558 Interest income (18) (19) (11) Interest expense 121 17 20 Other (expense) income - 27 (87) Foreign currency exchange (gain) loss 6 9 39 Income from operations before income taxes $ 4,211 $ 8,405 $ 5,080 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, North Carolina and U.K.-based Evolving Systems U.K. subsidiary. Additionally, personnel in Bangalore and Kolkata, 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, 2015 Revenue L&S CS Total United Kingdom $ 2,191 $ 1,765 $ 3,956 Other 13,393 8,227 21,620 Total revenues $ 15,584 $ 9,992 $ 25,576 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 December 31, December 31, Long-lived assets, net 2015 2014 United States $ 13,026 $ 1,998 United Kingdom 15,318 16,091 Other 341 188 $ 28,685 $ 18,277 |
Restructuring
Restructuring | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring [Abstract] | |
Restructuring | NOTE 13 — RESTRUCTURING During the fourth quarter of 2015, we undertook a reduction in workforce involving the termination of employees resulting in an expense of $0.5 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 NC in the third quarter of 2015. Restructuring expense of $0.2 million and $0.6 million was recorded for the years ending December 31, 2014 and 2013, respectively, due to severance for a reduction in workforce. The reduction in workforce was related to the acquisition of Evolving Systems Labs in the fourth quarter of 2013. As of December 31, 2015, $0.5 million has been paid. The restructuring liability was $25,000 and $0 as of December 31, 2015 and 2014, respectively. |
Quarterly Financial Information
Quarterly Financial Information (Unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information (Unaudited) [Abstract] | |
Quarterly Financial Information (Unaudited) | NOTE 14 — 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, 2015 Total revenue $ 6,660 $ 6,071 $ 5,773 $ 7,072 Less: cost of revenue and operating expenses 5,238 5,130 4,819 6,069 Income from operations 1,422 941 954 1,003 Income before income taxes 1,299 1,093 712 1,107 Net income $ 860 $ 780 $ 570 $ 1,086 Net income per common share: Basic income per common share - net income $ 0.07 $ 0.07 $ 0.05 $ 0.09 Diluted income per common share - net income $ 0.07 $ 0.07 $ 0.05 $ 0.09 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 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 15 — SUBSEQUENT EVENTS On March 15, 2016 , our Board of Directors declared a first quarter cash dividend of $ 0.11 per share, payable April 1, 2016 , to stockholders of record on March 28, 2016 . On January 1, 2016, our Board of Directors adopted a resolution promoting Thomas Thekkethala from President of the Company, to the position of Chief Executive Officer. Mr. Thekkethala joined the Company on September 30, 2015 in connection with the Company’s acquisition of SSM and serves on the Company’s Board. Thaddeus Dupper, who has served as the CEO of the Company since 2007, stepped down as the CEO effective January 1, 2016, and will continue to serve as the Company’s non-executive Chairman of the Board. The Company entered into a Consulting Agreement with Mr. Dupper to provide consulting services to the Company on an as-needed basis. Mr. Dupper will be paid severance in accordance with his employment agreement. The Board also promoted Daniel J. Moorhead, Vice President of Finance & Administration to Chief Financial Officer and entered into an employment agreement with Mr. Moorhead. In February 2016, we undertook a reduction in workforce involving the termination of employees resulting in an expense of approximately $0.6 million primarily related to severance for the affected employees. The reduction in workforce was related to the consolidations of duplicative functions and alignment of staff with ongoing business activity as a result of the acquisition of Evolving Systems NC, Inc. in the third quarter of 2015. On February 29, 2016, we entered into the Fifth Amendment to the Loan and Security Agreement with East West Bank to enter into a Term Loan (the “Term Loan”) for $6.0 million. The $6.0 million will bear interest at a floating rate equal to the U.S.A. Prime Rate plus 1.0% . The Term Loan is secured by substantially all of the 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. Interest shall accrue from the date the Term Loan is made at the aforementioned rate and shall be payable monthly. The Term Loan shall be repaid in 36 equal monthly installments of principal, plus accrued but unpaid interest, commencing on January 1, 2017 and continuing on the first day of each month thereafter through and including January 1, 2020. On the Term Loan maturity date, the outstanding principal amount of the Term Loan and all accrued and unpaid interest thereon shall be immediately due and payable. The Term Loan, once repaid, may not be reborrowed. We must maintain a minimum current ratio, a specified ratio of Total Liabilities to EBITDA and a minimum fixed charge coverage ratio which are as defined in the Term Loan. The Term Loan requires us to pay two annual credit facility fees of $18,750 and legal fee equal to $1,000 . The Term Loan agreement required us to use the term loans proceeds and $4.0 million from our cash balances to pay off the two existing Revolving Facilities totaling $10.0 million. The Term Loan matures on January 1, 2020 . Refer to Note 5, Revolving Line of Credit, of our Consolidated Financial Statements included elsewhere in this Annual Report on Form 10-K for more information regarding the Loan and Security Agreement. On March 1, 2016, John Spirtos provided notice to Evolving Systems that he is resigning from the board of directors effective March 4, 2016 and will not stand for election at Evolving Systems’ next annual shareholders’ meeting. Mr. Spirtos had served on the Company’s Board of Directors since December 2009 and was the Chairman of the Investment and Nominating & Governance Committees and a member of the Audit Committee. There are no disagreements with the Company. |
Organization And Summary Of S23
Organization And Summary Of Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2015 | |
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 and maintain software solutions that provide a variety of service activation and provisioning functions. Our service activation solution, Tertio ® (“TSA”) is used to activate bundles of voice, video and data services for wireless, wireline and cable network operators; our SIM card activation solution, Dynamic SIM Allocation TM (“DSA”) is used to dynamically allocate and assign resources to Mobile Network Operators (“MNOs”) devices that rely on SIM cards; our Mobile Data Enablement TM (“MDE”) solution provides a data consumption and policy management solution for wireless carriers and Mobile Virtual Network Operators (“MVNOs”) that monitor the usage and consumption of data services; our Total Number Management™ (“TNM”) product is a scalable and fully automated database solution that enables operators to reliably and efficiently manage their telephone numbers as well as other communication identifiers (i.e. SIMs, MSISDNs, IMSIs, ICCIDs, IPs). Our solutions can be deployed on premise or offered as a Software-as-a-Service (“SaaS”). On September 30, 2015 we announced the acquisition of privately held RateIntegration, Inc., d/b/a Sixth Sense Media (“SSM”), a provider of real time analytics and marketing solutions to wireless carriers. SSM’s software solution platform, Real-time Lifecycle Marketing ™ (“RLM”), enables carriers’ marketing departments to innovate, execute and manage highly-personalized and contextually-relevant, interactive campaigns that engage consumers in real time. We believe the addition of SSM’s RLM product to our existing service activation and data enablement products will produce a powerful platform for wireless carriers. A product suite which we refer to as our Mobile Marketing Solutions (“MMS”) will provide sophisticated, highly tailored mobile campaigns which can be executed based on critical subscriber data captured during the initial activation experience (DSA and RLM) as well as in-life subscriber usage via MDE. We see the opportunity to leverage our technology to provide MNOs with sophisticated mobile marketing campaigns that will extend beyond voice, text and data usage campaigns and provide marketing services that will assist MNOs to market services that include retail mobile marketing, gaming, streaming video as well as social media based campaigns. |
Business Combination | Business Combination - On September 30, 2015 we acquired SSM, now known as Evolving Systems NC. This business combination is reflected in these consolidated financial statements since the acquisition date. Refer to Note 2, 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. |
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 Labs and Evolving Systems NC. 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. |
Cash And Cash Equivalents | 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, 2015 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 which 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. 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 2015 Allowance for doubtful accounts $ 43 $ 41 $ - $ (1) $ 83 2014 Allowance for doubtful accounts $ 73 $ - $ (25) $ (5) $ 43 2013 Allowance for doubtful accounts $ 70 $ - $ - $ 3 $ 73 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 2015 Allowance for unbilled work-in-progress $ 306 $ - $ (306) $ - $ - 2014 Allowance for unbilled work-in-progress $ 317 $ - $ - $ (11) $ 306 2013 Allowance for unbilled work-in-progress $ 295 $ 114 $ (114) $ 22 $ 317 |
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, 2015 and 2014, we had $0 and $0.4 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, 2015, no significant customer exceeded the threshold (defined as contributing at least 10% ) of revenue from continuing operations. For the year ended December 31, 2014, two significant customers 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. As of December 31, 2015, two significant customers accounted for approximately 36 % ( 25 % and 11 %) of contract receivables and unbilled work-in-progress. These customers are large telecommunications operators in Africa and Europe. 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. 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 $ 7.3 million and $9. 3 million as of December 31, 2015 and 2014, 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 $0.1 million, $ 0.2 million and $0.2 million for the years ended December 31, 2015, 2014 and 2013. |
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 three years ended December 31, 2015. In addition, we did not have any capitalized internal software development costs included in our December 31, 2015 and 2014 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 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, however the FASB has deferred the effective date by one year. We do not expect the adoption of this standard to have a significant impact on the Company’s financial position and results of operations. In August 2014, the FASB issued ASU 2014-15 Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. Management of public and private companies will be required to evaluate whether there are conditions and events that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the financial statements are issued (or available to be issued when applicable) and, if so, disclose that fact. Management will be required to make this evaluation for both annual and interim reporting periods, if applicable. The standard is effective for annual and interim periods ending after December 15, 2016. Early adoption is permitted for annual or interim reporting periods for which the financial statements have not previously been issued. We do not expect the adoption of this ASU to impact the consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) , which requires lessees to put most leases on their balance sheets by recognizing a lessee’s rights and obligations, while expenses will continue to be recognized in a similar manner to today’s legacy lease accounting guidance. This ASU could also significantly affect the financial ratios used for external reporting and other purposes, such as debt covenant compliance. This ASU will be effective for us on January 1, 2019, with early adoption permitted. We are currently in the process of assessing the impact of this ASU on our consolidated financial statements. |
Organization And Summary Of S24
Organization And Summary Of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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 2015 Allowance for doubtful accounts $ 43 $ 41 $ - $ (1) $ 83 2014 Allowance for doubtful accounts $ 73 $ - $ (25) $ (5) $ 43 2013 Allowance for doubtful accounts $ 70 $ - $ - $ 3 $ 73 |
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 2015 Allowance for unbilled work-in-progress $ 306 $ - $ (306) $ - $ - 2014 Allowance for unbilled work-in-progress $ 317 $ - $ - $ (11) $ 306 2013 Allowance for unbilled work-in-progress $ 295 $ 114 $ (114) $ 22 $ 317 |
Acquisition (Tables)
Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Acquisition [Abstract] | |
Summary Of Total Purchase Price | September 30, 2015 Cash Consideration Initial Cash Purchase Price $ 9,750 Cash/Working Capital Adjustment 535 Total Cash Consideration $ 10,285 Assumed Liabilities 250 Total purchase price $ 10,535 |
Schedule Of Assets Acquired and Liabilities Assumed At Acquisition Date | September 30, 2015 Cash and cash equivalents $ 1,521 Contract receivables 1,057 Unbilled work-in-progress 89 Intangible assets 4,642 Prepaid and other current assets 68 Deferred tax asset - Other assets, non-current 32 Total identifiable assets acquired $ 7,409 Accounts payable and accrued liabilities $ 1,506 Deferred tax liability 1,760 Deferred revenue 557 Total identifiable liabilities acquired $ 3,823 Net identifiable assets acquired 3,586 Goodwill 6,949 Net assets acquired $ 10,535 |
Intangible Assets Related To Acquisition | December 31, 2015 Gross Amount Accumulated Amortization Net Carrying Amount Weighted-Average Amortization Period Purchased software $ 1,679 $ 53 $ 1,626 8 yrs Trademarks and tradenames 122 15 107 2 yrs Non-competition 33 4 29 2 yrs Customer relationships 2,808 100 2,708 7 yrs $ 4,642 $ 172 $ 4,470 7.19 yrs |
Schedule Of Revenue And Earnings From October 1 Through December 31, 2015 | Revenue and earnings included in the Consolidated Statement of Operations from October 1, 2015 through December 31, 2015 Revenue $ 1,367 Net Income 306 |
Schedule Of Pro Forma Information | Year Ended December 31, 2015 2014 (unaudited) (unaudited) Revenue $ 30,190 $ 35,782 Earnings 3,645 5,718 |
Goodwill And Intangible Assets
Goodwill And Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill And Intangible Assets [Abstract] | |
Summary Of Changes In Carrying Amount Of Goodwill | License and Services Customer Support Total U.S. India UK U.S. UK Goodwill Balance as of December 31, 2013 $ 1,097 $ - $ 7,532 $ - $ 9,307 $ 17,936 Effects of changes in foreign currency exchange rates (1) - - (414) - (512) (926) Balance as of December 31, 2014 $ 1,097 $ - $ 7,118 $ - $ 8,795 $ 17,010 Goodwill acquired during the year 5,209 184 1,556 6,949 Acquired goodwill adjusted during the year (25) (7) (32) Effects of changes in foreign currency exchange rates (1) - (0) (351) - (434) (785) Balance as of December 31, 2015 $ 6,281 $ 184 $ 6,767 $ 1,549 $ 8,361 $ 23,142 |
Summary Of Identifiable Intangible Assets | December 31, 2015 December 31, 2014 (2) Gross Amount Accumulated Amortization Net Carrying Amount Gross Amount Accumulated Amortization Net Carrying Amount Weighted-Average Amortization Period Purchased software $ 2,118 $ 171 $ 1,947 $ 439 $ 64 $ 375 7.3 yrs Trademarks and tradenames 185 43 142 63 15 48 2.6 yrs Non-competition 33 4 29 - - - 2.0 yrs Customer relationships 3,024 159 2,865 216 31 185 6.8 yrs $ 5,360 $ 377 $ 4,983 $ 718 $ 110 $ 608 6.8 yrs |
Summary Of Expected Future Amortization Expense Related To Identifiable Intangibles | Year ending December 31, 2016 $ 783 2017 764 2018 703 2019 693 2020 693 Thereafter 1,347 $ 4,983 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Balance Sheet Components [Abstract] | |
Property And Equipment | December 31, Property and equipment: 2015 2014 Computer equipment and purchased software $ 4,814 $ 4,796 Furniture, fixtures and leasehold improvements 1,155 1,078 5,969 5,874 Less accumulated depreciation (5,409) (5,215) $ 560 $ 659 |
Assets Acquired Under Capital Lease | December 31, Assets acquired under capital lease: 2015 2014 Original book value $ 24 $ 24 Accumulated amortization (18) (13) Net book value $ 6 $ 11 |
Accounts Payable And Accrued Liabilities | December 31, Accounts payable and accrued liabilities: 2015 2014 Accounts payable $ 716 $ 729 Accrued liabilities 2,520 2,366 Accrued compensation and related expenses 1,193 1,365 $ 4,429 $ 4,460 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Taxes [Abstract] | |
Pre-tax Income From Continuing Operations | For the Years Ended December 31, 2015 2014 2013 Domestic $ (2,948) $ (1,274) $ (1,347) Foreign 7,159 9,679 6,427 Total $ 4,211 $ 8,405 $ 5,080 |
Expense (Benefit) From Continuing operations For Income Taxes | For the Years Ended December 31, 2015 2014 2013 Current: Federal $ 789 $ 1,468 $ 441 Foreign 1,174 1,637 1,015 State 76 (26) 70 Total current 2,039 3,079 1,526 Deferred: Federal (1,023) (301) (66) Foreign 16 19 (178) State (117) 0 (8) Total deferred (1,124) (282) (252) Total $ 915 $ 2,797 $ 1,274 |
Components Of Deferred Tax Assets And Liabilities | As of December 31, 2015 2014 Deferred tax assets: Foreign tax credits carryforwards $ 3,667 $ - Net operating loss carryforwards - State 540 555 Research and development credits 303 303 Equity compensation 686 661 AMT credit 770 942 Depreciable assets 110 107 Intangibles - 203 Accrued liabilities and reserves 340 607 Total deferred tax assets 6,416 3,378 Deferred tax liabilities: Intangibles (1,512) - Undistributed foreign earnings (666) (897) Accrued liabilities and reserves (23) (16) Total deferred tax liability (2,201) (913) Net deferred tax assets, before valuation allowance 4,215 2,465 Valuation allowance (4,215) (1,799) Net deferred tax asset $ - $ 666 Financial statement classification: Current deferred tax asset $ - $ 80 Long-term tax (liability) asset - 586 $ - $ 666 |
Income Tax Expense Reconciliation | For the Years Ended December 31, 2015 2014 2013 U.S. federal income tax expense at statutory rates $ 2,392 $ 4,595 $ 2,143 State income tax expense, net of federal impact - 542 46 Foreign Tax Credit (3,667) - - Foreign rate differential (449) (1,452) (332) Foreign deemed dividends 939 1,783 871 Undistributed foreign earnings (221) - - Change in valuation allowance 2,415 (1,971) (492) Research and development expenses (1,096) (867) (859) Foreign taxes 314 53 93 Section 78 Gross-UP 371 - - Permanent differences and other, net (83) 114 (196) Total tax expense $ 915 $ 2,797 $ 1,274 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary Of Stock-Based Compensation Expenses | For the Years Ended December 31, 2015 2014 2013 Cost of license fees and services, excluding depreciation and amortization $ 72 $ 73 $ 29 Cost of customer support, excluding depreciation and amortization 10 8 4 Sales and marketing 36 31 24 General and administrative 112 181 207 Product development 87 108 24 Total share based compensation $ 317 $ 401 $ 288 |
Summary Of Stock Option Activity | Weighted- Average Weighted- Remaining Aggregate Number of Average Contractual Intrinsic Shares Exercise Term Value (in thousands) Price (Years) (in thousands) 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 granted 331 $ 7.13 Less options forfeited (27) $ 9.39 Less options exercised (100) $ 2.43 Options outstanding at December 31, 2015 834 $ 5.97 6.94 $ 957 Options exercisable at December 31, 2015 463 $ 4.74 5.11 $ 954 |
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 - $ 1.34 145 2.41 $ 0.80 145 $ 0.80 $ 2.80 - $ 2.86 30 3.19 $ 2.84 30 $ 2.84 $ 3.20 - $ 3.72 86 4.02 $ 3.69 86 $ 3.70 $ 4.09 - $ 5.45 37 6.12 $ 4.44 35 $ 4.45 $ 6.00 - $ 6.63 247 9.31 $ 6.09 32 $ 6.52 $ 7.70 - $ 10.90 289 8.55 $ 9.65 135 $ 9.73 834 6.94 $ 5.97 463 $ 4.74 |
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, 2015 2014 2013 Expected term (years) 6.0 5.9 6.1 Risk-free interest rate 1.37 % 1.69 % 1.31 % Expected volatility 42.01 % 55.88 % 59.17 % Expected dividend yield 6.4 % 4.0 % 4.1 % |
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, 2015 2014 2013 Expected term (years) 0.25 0.25 0.25 Risk-free interest rate 0.07 % 0.03 % 0.05 % Expected volatility 39.58 % 40.92 % 44.36 % Expected dividend yield 6.3 % 4.5 % 4.0 % |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Common Share [Abstract] | |
Summary Of Basic And Diluted Earnings Per Share | For the Years Ended December, 31 2015 2014 2013 Basic income per share: Net income $ 3,296 $ 5,608 $ 3,806 Basic weighted average shares outstanding 11,693 11,642 11,459 Basic income per share: Net Income $ 0.28 $ 0.48 $ 0.33 Diluted income per share: Net income $ 3,296 $ 5,608 $ 3,806 Weighted average shares outstanding 11,693 11,642 11,459 Effect of dilutive securities - options 242 284 297 Diluted weighted average shares outstanding 11,935 11,926 11,756 Diluted income per share: Net Income $ 0.28 $ 0.47 $ 0.32 |
Commitments And Contingencies (
Commitments And Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments And Contingencies [Abstract] | |
Future minimum commitments | Operating Leases Capital Leases 2016 $ 656 $ 6 2017 626 1 2018 438 - 2019 243 - 2020 56 - Total minimum lease payments $ 2,019 7 Less: Amount representing interest (1) Principal balance of capital lease obligations 6 Less: Current portion of capital lease obligations (5) Long-term portion of capital lease obligations $ 1 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Information [Abstract] | |
Segment Information | For the Years Ended December 31, 2015 2014 2013 Revenue License fees and services $ 15,584 $ 19,738 $ 15,998 Customer support 9,992 9,942 9,095 Total revenue 25,576 29,680 25,093 Revenue less costs of revenue, excluding depreciation and amortization License fees and services 10,703 13,956 10,433 Customer support 8,424 8,076 7,496 19,127 22,032 17,929 Unallocated Costs Other operating expenses 13,694 13,015 11,964 Depreciation and amortization 580 341 366 Restructuring 533 237 558 Interest income (18) (19) (11) Interest expense 121 17 20 Other (expense) income - 27 (87) Foreign currency exchange (gain) loss 6 9 39 Income from operations before income taxes $ 4,211 $ 8,405 $ 5,080 |
Financial Information Relating To Operations By Geographic Region | For the Year Ended December 31, 2015 Revenue L&S CS Total United Kingdom $ 2,191 $ 1,765 $ 3,956 Other 13,393 8,227 21,620 Total revenues $ 15,584 $ 9,992 $ 25,576 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 |
Summary Of Long-lived Assets, Net | December 31, December 31, Long-lived assets, net 2015 2014 United States $ 13,026 $ 1,998 United Kingdom 15,318 16,091 Other 341 188 $ 28,685 $ 18,277 |
Quarterly Financial Informati33
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information (Unaudited) [Abstract] | |
Schedule Of Quarterly Financial Information | First Second Third Fourth Quarter Quarter Quarter Quarter Year Ended December 31, 2015 Total revenue $ 6,660 $ 6,071 $ 5,773 $ 7,072 Less: cost of revenue and operating expenses 5,238 5,130 4,819 6,069 Income from operations 1,422 941 954 1,003 Income before income taxes 1,299 1,093 712 1,107 Net income $ 860 $ 780 $ 570 $ 1,086 Net income per common share: Basic income per common share - net income $ 0.07 $ 0.07 $ 0.05 $ 0.09 Diluted income per common share - net income $ 0.07 $ 0.07 $ 0.05 $ 0.09 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 |
Organization And Summary Of S34
Organization And Summary Of Significant Accounting Policies (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2015USD ($)itemcustomer | Dec. 31, 2014USD ($)customer | Dec. 31, 2013USD ($)customer | |
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Number of recognized sources for revenue | item | 2 | ||
Unbilled work in progress billing period | 12 months | ||
Restricted cash | $ 0 | ||
Number of days for individual review of past due balances | 90 days | ||
Long-term deferred revenue | $ 420,000 | ||
Funds not under any FDIC program | $ 7,300,000 | 9,300,000 | |
Advertising costs | 100,000 | $ 200,000 | $ 200,000 |
Capitalized internal software development costs | $ 0 | ||
California 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 contributing to revenue from continuing operations | customer | 0 | 2 | |
Concentration risk, percentage | 10.00% | 24.00% | |
Customer Concentration Risk [Member] | Contract Receivables And Unbilled Worl-In-Progress [Member] | |||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Number of customers accounting for contract receivables and unbilled work-in-progress | customer | 2 | 3 | |
Concentration risk, percentage | 36.00% | 55.00% | |
Customer Concentration Risk [Member] | Europe [Member] | Revenue From Continuing Operations [Member] | |||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Number of customers contributing to revenue from continuing operations | customer | 1 | ||
Concentration risk, percentage | 12.00% | ||
Significant Customer One [Member] | Africa [Member] | Contract Receivables And Unbilled Worl-In-Progress [Member] | |||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Concentration risk, percentage | 25.00% | 26.00% | |
Significant Customer One [Member] | Europe [Member] | Revenue From Continuing Operations [Member] | |||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Concentration risk, percentage | 13.00% | ||
Significant Customer Two [Member] | Mexico [Member] | Revenue From Continuing Operations [Member] | |||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Concentration risk, percentage | 11.00% | ||
Significant Customer Two [Member] | Mexico [Member] | Contract Receivables And Unbilled Worl-In-Progress [Member] | |||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Concentration risk, percentage | 16.00% | ||
Significant Customer Two [Member] | Europe [Member] | Contract Receivables And Unbilled Worl-In-Progress [Member] | |||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Concentration risk, percentage | 11.00% | ||
Significant Customer Three [Member] | Europe [Member] | Contract Receivables And Unbilled Worl-In-Progress [Member] | |||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Concentration risk, percentage | 13.00% |
Organization And Summary Of S35
Organization And Summary Of Significant Accounting Policies (Activity In Allowance For Doubtful Accounts) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Organization And Summary Of Significant Accounting Policies [Abstract] | |||
Allowance for doubtful account, Balance at Beginning of Period | $ 43 | $ 73 | $ 70 |
Allowance for doubtful account, Bad Debt Expense/(Recovery) | 41 | ||
Allowance for doubtful account, Write-Offs Charged to Allowance | (25) | ||
Allowance for doubtful account, Effects Of Foreign Currency Exchange Rates | (1) | (5) | 3 |
Allowance for doubtful account, Balance at End of Period | $ 83 | $ 43 | $ 73 |
Organization And Summary Of S36
Organization And Summary Of Significant Accounting Policies (Activity In Allowance For Unbilled Work-In-Progress) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Organization And Summary Of Significant Accounting Policies [Abstract] | |||
Allowance for unbilled work-in-progress, Balance at Beginning of Period | $ 306 | $ 317 | $ 295 |
Allowance for unbilled work-in-progress, Unbilled Work-in-Progress Allowance/(Recovery) | 114 | ||
Allowance for unbilled work-in-progress, Write-Offs Charged to Allowance | (306) | (114) | |
Allowance for unbilled work-in-progress, Effects of Foreign Currency Exchange Rates | (11) | 22 | |
Allowance for unbilled work-in-progress, Balance at End of Period | $ 0 | $ 306 | $ 317 |
Acquisition (Narrative) (Detail
Acquisition (Narrative) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 23,142 | $ 17,010 | $ 17,936 | |
Contingent consideration related to acquisition | 178 | |||
Amortization expense | $ 266 | $ 95 | $ 211 | |
Evolving Systems NC, Inc [Member] | ||||
Business Acquisition [Line Items] | ||||
Initial payment | $ 9,750 | |||
Working capital adjustment | 535 | |||
Cash payment on anniversary of the transaction | 250 | |||
Goodwill | 6,949 | |||
Intangible assets | 4,642 | |||
Weighted average amortization period | 7 years 2 months 9 days | |||
License And Services [Member] | Evolving Systems NC, Inc [Member] | ||||
Business Acquisition [Line Items] | ||||
Goodwill | 5,400 | |||
Customer Support [Member] | Evolving Systems NC, Inc [Member] | ||||
Business Acquisition [Line Items] | ||||
Goodwill | $ 1,500 | |||
Trademarks And Tradenames [Member] | Evolving Systems NC, Inc [Member] | ||||
Business Acquisition [Line Items] | ||||
Weighted average amortization period | 2 years | |||
Purchased Software [Member] | Evolving Systems NC, Inc [Member] | ||||
Business Acquisition [Line Items] | ||||
Weighted average amortization period | 8 years | |||
Non-competition [Member] | Evolving Systems NC, Inc [Member] | ||||
Business Acquisition [Line Items] | ||||
Weighted average amortization period | 2 years | |||
Customer Relationships [Member] | Evolving Systems NC, Inc [Member] | ||||
Business Acquisition [Line Items] | ||||
Weighted average amortization period | 7 years |
Acquisition (Summary Of Total P
Acquisition (Summary Of Total Purchase Price) (Details) - Evolving Systems NC, Inc [Member] $ in Thousands | Sep. 30, 2015USD ($) |
Business Acquisition [Line Items] | |
Initial Cash Purchase Price | $ 9,750 |
Cash/Working Capital Adjustment | 535 |
Total Cash Consideration | 10,285 |
Assumed Liabilities | 250 |
Total purchase price | $ 10,535 |
Acquisition (Schedule Of Assets
Acquisition (Schedule Of Assets Acquired and Liabilities Assumed At Acquisition Date) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 23,142 | $ 17,010 | $ 17,936 | |
Evolving Systems NC, Inc [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | $ 1,521 | |||
Contract receivables | 1,057 | |||
Unbilled work-in-progress | 89 | |||
Intangible assets | 4,642 | |||
Prepaid and other current assets | 68 | |||
Other assets, non-current | 32 | |||
Total identifiable assets acquired | 7,409 | |||
Accounts payable and accrued liabilities | 1,506 | |||
Deferred tax liability | 1,760 | |||
Deferred revenue | 557 | |||
Total identifiable liabilities acquired | 3,823 | |||
Net identifiable assets acquired | 3,586 | |||
Goodwill | 6,949 | |||
Net assets acquired | $ 10,535 |
Acquisition (Intangible Assets
Acquisition (Intangible Assets Related To Acquisition) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Net Carrying Amount | $ 4,983 | $ 608 |
Evolving Systems NC, Inc [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 4,642 | |
Accumulated Amortization | 172 | |
Net Carrying Amount | $ 4,470 | |
Weighted average amortization period | 7 years 2 months 9 days | |
Evolving Systems NC, Inc [Member] | Purchased Software [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | $ 1,679 | |
Accumulated Amortization | 53 | |
Net Carrying Amount | $ 1,626 | |
Weighted average amortization period | 8 years | |
Evolving Systems NC, Inc [Member] | Trademarks And Tradenames [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | $ 122 | |
Accumulated Amortization | 15 | |
Net Carrying Amount | $ 107 | |
Weighted average amortization period | 2 years | |
Evolving Systems NC, Inc [Member] | Non-competition [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | $ 33 | |
Accumulated Amortization | 4 | |
Net Carrying Amount | $ 29 | |
Weighted average amortization period | 2 years | |
Evolving Systems NC, Inc [Member] | Customer Relationships [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | $ 2,808 | |
Accumulated Amortization | 100 | |
Net Carrying Amount | $ 2,708 | |
Weighted average amortization period | 7 years |
Acquisition (Schedule Of Revenu
Acquisition (Schedule Of Revenue And Earnings From October 1 Through December 31, 2015) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues | $ 7,072 | $ 5,773 | $ 6,071 | $ 6,660 | $ 7,599 | $ 7,560 | $ 7,939 | $ 6,582 | $ 25,576 | $ 29,680 | $ 25,093 |
Net income | 1,086 | $ 570 | $ 780 | $ 860 | $ 1,602 | $ 1,679 | $ 1,676 | $ 651 | $ 3,296 | $ 5,608 | $ 3,806 |
Evolving Systems NC, Inc [Member] | |||||||||||
Revenues | 1,367 | ||||||||||
Net income | $ 306 |
Acquisition (Schedule Of Pro Fo
Acquisition (Schedule Of Pro Forma Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Acquisition [Abstract] | ||
Revenue | $ 30,190 | $ 35,782 |
Earnings | $ 3,645 | $ 5,718 |
Goodwill And Intangible Asset43
Goodwill And Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Jul. 31, 2015 | |
Goodwill And Intangible Assets [Line Items] | ||||
Goodwill | $ 23,142 | $ 17,010 | $ 17,936 | |
Goodwill aquired during the period | 6,949 | |||
Amortization of intangible assets | $ 266 | 95 | 211 | |
Annual Goodwill Impairment Test [Member] | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Goodwill | $ 17,000 | |||
Income Approach Valuation Technique [Member] | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Fair value inputs, comparability adjustments | 70.00% | |||
Market Approach Valuation Technique [Member] | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Fair value inputs, comparability adjustments | 30.00% | |||
License And Services [Member] | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Goodwill aquired during the period | $ 5,400 | |||
License And Services [Member] | United States [Member] | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Goodwill | 6,281 | 1,097 | 1,097 | |
Goodwill aquired during the period | 5,209 | |||
License And Services [Member] | United Kingdom [Member] | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Goodwill | 6,767 | $ 7,118 | $ 7,532 | |
Customer Support [Member] | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Goodwill aquired during the period | 1,500 | |||
Customer Support [Member] | United States [Member] | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Goodwill | 1,549 | |||
Goodwill aquired during the period | 1,556 | |||
Customer Support [Member] | United Kingdom [Member] | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Goodwill | $ 8,361 | $ 8,795 | $ 9,307 | |
Customer Support [Member] | United Kingdom [Member] | Annual Goodwill Impairment Test [Member] | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Goodwill | 8,700 | |||
Evolving Systems U.K. [Member] | License And Services [Member] | United Kingdom [Member] | Annual Goodwill Impairment Test [Member] | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Goodwill | 7,200 | |||
Evolving Systems Labs [Member] | License And Services [Member] | United States [Member] | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Percentage of hypothetical decrease in estimated fair value | 20.00% | |||
Evolving Systems Labs [Member] | License And Services [Member] | United States [Member] | Annual Goodwill Impairment Test [Member] | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Goodwill | $ 1,100 |
Goodwill And Intangible Asset44
Goodwill And Intangible Assets (Summary Of Changes In Carrying Amount Of Goodwill) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Goodwill And Intangible Assets [Line Items] | |||
Beginning Balance | $ 17,010 | $ 17,936 | |
Goodwill aquired during the year | 6,949 | ||
Acquired goodwill adjusted during the year | (32) | ||
Effects of changes in foreign currency exchange rates | [1] | (785) | (926) |
Ending Balance | 23,142 | 17,010 | |
License And Services [Member] | |||
Goodwill And Intangible Assets [Line Items] | |||
Goodwill aquired during the year | 5,400 | ||
Customer Support [Member] | |||
Goodwill And Intangible Assets [Line Items] | |||
Goodwill aquired during the year | 1,500 | ||
United States [Member] | License And Services [Member] | |||
Goodwill And Intangible Assets [Line Items] | |||
Beginning Balance | 1,097 | $ 1,097 | |
Goodwill aquired during the year | 5,209 | ||
Acquired goodwill adjusted during the year | $ (25) | ||
Effects of changes in foreign currency exchange rates | [1] | ||
Ending Balance | $ 6,281 | $ 1,097 | |
United States [Member] | Customer Support [Member] | |||
Goodwill And Intangible Assets [Line Items] | |||
Beginning Balance | |||
Goodwill aquired during the year | $ 1,556 | ||
Acquired goodwill adjusted during the year | $ (7) | ||
Effects of changes in foreign currency exchange rates | [1] | ||
Ending Balance | $ 1,549 | ||
United Kingdom [Member] | License And Services [Member] | |||
Goodwill And Intangible Assets [Line Items] | |||
Beginning Balance | 7,118 | $ 7,532 | |
Effects of changes in foreign currency exchange rates | [1] | (351) | (414) |
Ending Balance | 6,767 | 7,118 | |
United Kingdom [Member] | Customer Support [Member] | |||
Goodwill And Intangible Assets [Line Items] | |||
Beginning Balance | 8,795 | 9,307 | |
Effects of changes in foreign currency exchange rates | [1] | (434) | (512) |
Ending Balance | $ 8,361 | $ 8,795 | |
India [Member] | License And Services [Member] | |||
Goodwill And Intangible Assets [Line Items] | |||
Beginning Balance | |||
Goodwill aquired during the year | $ 184 | ||
Acquired goodwill adjusted during the year | |||
Effects of changes in foreign currency exchange rates | [1] | ||
Ending Balance | $ 184 | ||
[1] | Represents the impact of foreign currency translation for instances when goodwill is recorded in foreign entities whose functional currency is also their local currency. Goodwill balances are translated into U.S. dollars using exchange rates in effect at period end. Adjustments related to foreign currency translation are included in other comprehensive income. |
Goodwill And Intangible Asset45
Goodwill And Intangible Assets (Summary Of Identifiable Intangible Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | |||
Finite-Lived Intangible Assets [Line Items] | ||||
Net Carrying Amount | $ 4,983 | $ 608 | ||
Evolving Systems Labs [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross Amount | 5,360 | [1] | 718 | |
Accumulated Amortization | 377 | 110 | ||
Net Carrying Amount | $ 4,983 | 608 | ||
Weighted-Average Amortization Period | 6 years 9 months 18 days | |||
Evolving Systems Labs [Member] | Purchased Software [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross Amount | $ 2,118 | [1] | 439 | |
Accumulated Amortization | 171 | 64 | ||
Net Carrying Amount | $ 1,947 | 375 | ||
Weighted-Average Amortization Period | 7 years 3 months 18 days | |||
Evolving Systems Labs [Member] | Trademarks And Tradenames [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross Amount | $ 185 | [1] | 63 | |
Accumulated Amortization | 43 | 15 | ||
Net Carrying Amount | $ 142 | 48 | ||
Weighted-Average Amortization Period | 2 years 7 months 6 days | |||
Evolving Systems Labs [Member] | Non-competition [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross Amount | [1] | $ 33 | ||
Accumulated Amortization | 4 | |||
Net Carrying Amount | $ 29 | |||
Weighted-Average Amortization Period | 2 years | |||
Evolving Systems Labs [Member] | Customer Relationships [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross Amount | $ 3,024 | [1] | 216 | |
Accumulated Amortization | 159 | 31 | ||
Net Carrying Amount | $ 2,865 | $ 185 | ||
Weighted-Average Amortization Period | 6 years 9 months 18 days | |||
[1] | Changes in intangible values as of December 31, 2015 compared to December 31, 2014 are the direct result of the acquisition of Evolving Systems NC in the third quarter of 2015. |
Goodwill And Intangible Asset46
Goodwill And Intangible Assets (Summary Of Expected Future Amortization Expense Related To Identifiable Intangibles) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Goodwill And Intangible Assets [Abstract] | ||
2,016 | $ 783 | |
2,017 | 764 | |
2,018 | 703 | |
2,019 | 693 | |
2,020 | 693 | |
Thereafter | 1,347 | |
Net Carrying Amount | $ 4,983 | $ 608 |
Balance Sheet Components (Narra
Balance Sheet Components (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Balance Sheet Components [Line Items] | |||
Depreciation | $ 314,000 | $ 246,000 | $ 155,000 |
Assets Held under Capital Leases [Member] | |||
Balance Sheet Components [Line Items] | |||
Depreciation | $ 5,000 | $ 5,000 | $ 4,000 |
Balance Sheet Components (Prope
Balance Sheet Components (Property And Equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | $ 5,969 | $ 5,874 |
Less accumulated depreciation | (5,409) | (5,215) |
Property and equipment, Total | 560 | 659 |
Computer Equipment And Purchased Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 4,814 | 4,796 |
Furniture, Fixtures And Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | $ 1,155 | $ 1,078 |
Balance Sheet Components (Asset
Balance Sheet Components (Assets Acquired Under Capital Lease) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Balance Sheet Components [Abstract] | ||
Original book value | $ 24 | $ 24 |
Accumulated amortization | (18) | (13) |
Net book value | $ 6 | $ 11 |
Balance Sheet Components (Accou
Balance Sheet Components (Accounts Payable And Accrued Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Balance Sheet Components [Abstract] | ||
Accounts payable | $ 716 | $ 729 |
Accrued liabilities | 2,520 | 2,366 |
Accrued compensation and related expenses | 1,193 | 1,365 |
Accounts payable and accrued liabilities | $ 4,429 | $ 4,460 |
Revolving Line Of Credit (Detai
Revolving Line Of Credit (Details) | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Revolving Facility [Member] | |
Debt Instrument [Line Items] | |
Line of credit initiation date | Sep. 28, 2015 |
Line of credit facility, interest rate terms, description | The additional $5.0 million ("Revolving Line II") will bear interest at a floating rate equal to the U.S. Prime Rate plus 2.25%; the existing $5.0 million credit facility ("Revolving Line") will continue to bear interest at the greater of 2.75% or the U.S. Prime Rate minus one half of one percent (0.50%). |
Line of credit facility, covenant terms | To take an advance under the Revolving Facility, the Company must have a balance of $4.0 million in cash on deposit with East West Bank, a minimum current ratio and a specified ratio of Total Liabilities to Tangible Net Worth, which are both as defined in the Revolving Facility. The Revolving Facility requires the Company to pay a one-time credit facility fee of $10,000 for extension of Revolving Line II, an annual credit facility fee of $10,000 and monthly payments of interest, with the unpaid balance due on October 22, 2016. |
Line of credit facility, cash deposit requirements for advance | $ 4,000,000 |
Line of credit facility, one-time commitment fee | 10,000 |
Line of credit facility, annual commitment fee | $ 10,000 |
Line of credit facility, interest payment frequency | monthly |
Line of credit facility, maturity date | Oct. 22, 2016 |
Line of credit facility, amount outstanding | $ 10,000,000 |
Revolving Line II [Member] | East West Bank [Member] | |
Debt Instrument [Line Items] | |
Line of credit facility, current borrowing capacity | $ 5,000,000 |
Line of credit facility, interest rate | 2.25% |
Revolving Line [Member] | East West Bank [Member] | |
Debt Instrument [Line Items] | |
Line of credit facility, current borrowing capacity | $ 5,000,000 |
Line of credit facility, interest rate | 2.75% |
Discount on prime rate, percentage | 0.50% |
Minimum [Member] | East West Bank [Member] | |
Debt Instrument [Line Items] | |
Line of credit facility, current borrowing capacity | $ 5,000,000 |
Maximum [Member] | East West Bank [Member] | |
Debt Instrument [Line Items] | |
Line of credit facility, current borrowing capacity | 10,000,000 |
Maximum [Member] | Revolving Facility [Member] | |
Debt Instrument [Line Items] | |
Restrict distributions to shareholders | $ 1,800,000 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2015USD ($)entity | |
Income Taxes [Line Items] | |||
Deferred tax assets | $ 666 | $ 100 | |
Federal net operating loss carryforwards | $ 0 | 2,300 | |
State net operating loss carryforwards | 17,400 | 17,100 | |
Research and experimentation credit carryforwards | 303 | 303 | |
Alternative minimum tax credits | $ 770 | 942 | |
U.S. federal income tax rate | 34.00% | ||
Excess tax benefit from employee stock plan awards | $ 0 | 0 | |
Federal net operating loss, realized | 800 | ||
Foreign tax credit carryforwards as a deferred tax asset | 900 | 2,800 | |
Deferred tax liability, intangibles | 1,512 | ||
Deferred tax asset, intangibles | 203 | ||
Unrecognized tax benefits | 0 | 0 | |
Undistributed foreign earnings | $ 666 | $ 897 | |
Stock ownership testing period | 3 years | ||
Number of Indian subsidiaries acquired pursuant to the merger terms | entity | 2 | ||
Research And Experimentation [Member] | |||
Income Taxes [Line Items] | |||
Research and experimentation credit carryforwards expiration year | 2,018 | ||
Minimum [Member] | |||
Income Taxes [Line Items] | |||
Alternative minimum tax expiration year | 2,028 | ||
Percentage of tax utliziation under ownership change | 50.00% | ||
Minimum [Member] | State [Member] | |||
Income Taxes [Line Items] | |||
Operating loss carryforwards expiration year | 2,018 | ||
Maximum [Member] | |||
Income Taxes [Line Items] | |||
Alternative minimum tax expiration year | 2,034 | ||
Maximum [Member] | State [Member] | |||
Income Taxes [Line Items] | |||
Operating loss carryforwards expiration year | 2,033 |
Income Taxes (Pre-Tax Income Fr
Income Taxes (Pre-Tax Income From Continuing Operations) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Taxes [Abstract] | |||
Domestic | $ (2,948) | $ (1,274) | $ (1,347) |
Foreign | 7,159 | 9,679 | 6,427 |
Total | $ 4,211 | $ 8,405 | $ 5,080 |
Income Taxes (Expense (Benefit)
Income Taxes (Expense (Benefit) From Continuing Operations For Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Taxes [Abstract] | |||
Current: Federal | $ 789 | $ 1,468 | $ 441 |
Current: Foreign | 1,174 | 1,637 | 1,015 |
Current: State | 76 | (26) | 70 |
Total current | 2,039 | 3,079 | 1,526 |
Deferred: Federal | (1,023) | (301) | (66) |
Deferred: Foreign | 16 | 19 | (178) |
Deferred: State | (117) | 0 | (8) |
Total deferred | (1,124) | (282) | (252) |
Total tax expense | $ 915 | $ 2,797 | $ 1,274 |
Income Taxes (Components Of Def
Income Taxes (Components Of Deferred Tax Assets And Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2014 |
Deferred tax assets: | |||
Foreign tax credits carryforwards | $ 3,667 | ||
Net operating loss carryforwards - State | 540 | $ 555 | |
Research and development credits | 303 | 303 | |
Equity compensation | 686 | 661 | |
AMT credit | 770 | 942 | |
Depreciable assets | 110 | 107 | |
Intangibles | 203 | ||
Accrued liabilities and reserves | 340 | 607 | |
Total deferred tax assets | 6,416 | 3,378 | |
Deferred tax liabilities: | |||
Intangibles | (1,512) | ||
Undistributed foreign earnings | (666) | (897) | |
Accrued liabilities and reserves | (23) | (16) | |
Total deferred tax liability | (2,201) | (913) | |
Net deferred tax assets, before valuation allowance | 4,215 | 2,465 | |
Valuation allowance | $ (4,215) | (1,799) | |
Net deferred tax asset | $ 100 | 666 | |
Current deferred tax asset | 80 | ||
Long-term tax (liability) asset | $ 586 |
Income Taxes (Income Tax Expens
Income Taxes (Income Tax Expense Reconciliation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Taxes [Abstract] | |||
U.S. federal income tax rate | 34.00% | ||
U.S. federal income tax expense at statutory rates | $ 2,392 | $ 4,595 | $ 2,143 |
State income tax expense, net of federal impact | 542 | 46 | |
Foreign Tax Credit | (3,667) | ||
Foreign rate differential | (449) | (1,452) | (332) |
Foreign deemed dividends | 939 | 1,783 | 871 |
Undistributed foreign earnings | (221) | ||
Change in valuation allowance | 2,415 | (1,971) | (492) |
Research and development expenses | (1,096) | (867) | (859) |
Foreign taxes | 314 | 53 | 93 |
Section 78 Gross-UP | 371 | ||
Permanent differences and other, net | (83) | 114 | (196) |
Total tax expense | $ 915 | $ 2,797 | $ 1,274 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) | 3 Months Ended | 12 Months Ended | 31 Months Ended | |||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | |
Stockholders' Equity [Abstract] | ||||||||
Cash dividend declared per common share | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.44 | $ 0.42 | $ 0.36 | |
Dividends payable | $ 0 | $ 0 | ||||||
Authorized amount of stock repurchase | $ 5,000,000 | $ 5,000,000 | ||||||
Number of shares repurchased during preiod | 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 | |||||
Preferred stock, shares outstanding | 0 | 0 | 0 | |||||
Anti-takeover provisions period | 3 years |
Share-Based Compensation (Narra
Share-Based Compensation (Narrative) (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2010 | Jun. 30, 2007 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Recognized compensation expense | $ 317,000 | $ 401,000 | $ 288,000 | ||
Options remained outstanding under option plan | 834,000 | 630,000 | 676,000 | ||
Weighted-average grant-date fair value of stock options granted | $ 1.60 | $ 3.80 | $ 3.16 | ||
Total unrecognized compensation costs related to unvested stock options | $ 800,000 | ||||
Weighted average recognition period | 2 years 10 months 24 days | ||||
Intrinsic value of stock option exercises, total | $ 300,000 | $ 400,000 | $ 600,000 | ||
Fair value of stock options vested | 300,000 | 300,000 | 100,000 | ||
Cash received from exercise of stock options | $ 200,000 | $ 200,000 | $ 500,000 | ||
Net settlement exercises shares issued | 0 | 7,094 | 0 | ||
Net settlement exercises shares cancelled | 26,376 | ||||
2007 Stock Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares authorized | 1,502,209 | 1,250,000 | 1,000,000 | ||
Shares available for grant | 300,000 | 100,000 | |||
Shares reserved for acquisitions | 200,000 | ||||
Options issued and outstanding | 800,000 | 600,000 | |||
Employee Stock Purchase Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares authorized | 550,000 | ||||
Cash received from exercise of stock options | $ 53,000 | $ 68,000 | $ 8,000 | ||
Maximum employee subscription rate | 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 | 53,000 | ||||
Discount on the purchase price of stock option | 15.00% | ||||
Issued shares related to the ESPP | 9,000 | 9,000 | 1,000 | ||
Employee stock purchase plan compensation expense | $ 13,000 | $ 17,000 | $ 2,000 | ||
Option Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares reserved for issuance | 4,175,000 | ||||
Vesting period | 4 years | ||||
Option plan termination date | Jan. 18, 2006 | ||||
Options remained outstanding under option plan | 0 | 100,000 | |||
Maximum [Member] | 2007 Stock Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Option expiration period | 10 years | ||||
Maximum [Member] | Option Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Option expiration period | 10 years | ||||
Employees [Member] | 2007 Stock Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 4 years | ||||
Directors [Member] | 2007 Stock Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 1 year | ||||
Senior Management [Member] | Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Release period for restricted stock options | 4 years | ||||
Board Members [Member] | Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock option shares of restricted stock vested | 94 | 8,000 | |||
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 Arrangement by Share-based Payment Award [Line Items] | |||||
Stock option awarded | 20,000 | 0 | |||
Restricted stock-based compensation expense | $ 8,000 | $ 100,000 | 200,000 | ||
Evolving Systems U.K. [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Deferred income tax benefits from stock option expense | $ 19,000 | $ 15,000 | $ 15,000 |
Share-Based Compensation (Summa
Share-Based Compensation (Summary Of Stock-Based Compensation Expenses) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total share based compensation | $ 317 | $ 401 | $ 288 |
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 | 72 | 73 | 29 |
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 | 10 | 8 | 4 |
Sales And Marketing [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total share based compensation | 36 | 31 | 24 |
General And Administrative [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total share based compensation | 112 | 181 | 207 |
Product Development [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total share based compensation | $ 87 | $ 108 | $ 24 |
Share-Based Compensation (Assum
Share-Based Compensation (Assumptions For Weighted Average Fair Value Of Stock Options) (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Stock Incentive Plans [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (years) | 6 years | 5 years 10 months 24 days | 6 years 1 month 6 days |
Risk-free interest rate | 1.37% | 1.69% | 1.31% |
Expected volatility | 42.01% | 55.88% | 59.17% |
Expected dividend yield | 6.40% | 4.00% | 4.10% |
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 | 0.07% | 0.03% | 0.05% |
Expected volatility | 39.58% | 40.92% | 44.36% |
Expected dividend yield | 6.30% | 4.50% | 4.00% |
Share-Based Compensation (Sum61
Share-Based Compensation (Summary Of Stock Option Activity) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-Based Compensation [Abstract] | |||
Number of Shares, Options outstanding at beginning | 630 | 676 | |
Number of Shares, Options granted | 331 | 168 | |
Number of Shares, Less options forfeited | (27) | (132) | |
Number of Shares, Less options exercised | (100) | (82) | |
Number of Shares, Options outstanding at ending | 834 | 630 | 676 |
Number of Shares, Option exercisable at December 31, 2015 | 463 | ||
Weighted-Average Exercise Price, Options outstanding at beginning | $ 4.94 | $ 5.11 | |
Weighted-Average Exercise Price, Options granted | 7.13 | 10.15 | |
Weighted Average Exercise Price, Less options forfeited | 9.39 | 12.20 | |
Weighted-Average Exercise Price, Less options exercised | 2.43 | 5.31 | |
Weighted-Average Exercise Price, Options outstanding at ending | 5.97 | $ 4.94 | $ 5.11 |
Weighted-Average Exercise Price, Options exercisable at December 31, 2015 | $ 4.74 | ||
Weighted-Average Remaining Contractual Term (Years), Options outstanding | 6 years 11 months 9 days | 5 years 8 months 9 days | 4 years 9 months 4 days |
Weighted-Average Remaining Contractual Term (Years), Option exercisable at December 31, 2015 | 5 years 1 month 10 days | ||
Aggregate Intrinsic Value, Options outstanding at beginning | $ 2,959 | $ 3,491 | |
Aggregate Intrinsic Value, Options outstanding at ending | 957 | $ 2,959 | $ 3,491 |
Aggregate Intrinsic Value, Options exercisable at December 31, 2015 | $ 954 |
Share-Based Compensation (Sum62
Share-Based Compensation (Summary Of Stock Option Outstanding By Exercise Price Ranges) (Details) shares in Thousands | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Stock Options Outstanding, Number of Shares | shares | 834 |
Stock Options Outstanding, Weighted Ave. Remaining Contractual Life (years) | 6 years 11 months 9 days |
Stock Options Outstanding, Weighted Ave. Exercise Price | $ 5.97 |
Stock Options Exercisable, Number of Shares | shares | 463 |
Stock Options Exerciable, Weighted Ave. Exercise Price | $ 4.74 |
$ 0.01 - $1.34 [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 | $ 1.34 |
Stock Options Outstanding, Number of Shares | shares | 145 |
Stock Options Outstanding, Weighted Ave. Remaining Contractual Life (years) | 2 years 4 months 28 days |
Stock Options Outstanding, Weighted Ave. Exercise Price | $ 0.80 |
Stock Options Exercisable, Number of Shares | shares | 145 |
Stock Options Exerciable, Weighted Ave. Exercise Price | $ 0.80 |
$ 2.80 - $2.86 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, Lower Range | 2.80 |
Range of Exercise Prices, Upper Range | $ 2.86 |
Stock Options Outstanding, Number of Shares | shares | 30 |
Stock Options Outstanding, Weighted Ave. Remaining Contractual Life (years) | 3 years 2 months 9 days |
Stock Options Outstanding, Weighted Ave. Exercise Price | $ 2.84 |
Stock Options Exercisable, Number of Shares | shares | 30 |
Stock Options Exerciable, Weighted Ave. Exercise Price | $ 2.84 |
$ 3.20 - $3.72 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, Lower Range | 3.20 |
Range of Exercise Prices, Upper Range | $ 3.72 |
Stock Options Outstanding, Number of Shares | shares | 86 |
Stock Options Outstanding, Weighted Ave. Remaining Contractual Life (years) | 4 years 7 days |
Stock Options Outstanding, Weighted Ave. Exercise Price | $ 3.69 |
Stock Options Exercisable, Number of Shares | shares | 86 |
Stock Options Exerciable, Weighted Ave. Exercise Price | $ 3.70 |
$ 4.09 - $5.45 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, Lower Range | 4.09 |
Range of Exercise Prices, Upper Range | $ 5.45 |
Stock Options Outstanding, Number of Shares | shares | 37 |
Stock Options Outstanding, Weighted Ave. Remaining Contractual Life (years) | 6 years 1 month 13 days |
Stock Options Outstanding, Weighted Ave. Exercise Price | $ 4.44 |
Stock Options Exercisable, Number of Shares | shares | 35 |
Stock Options Exerciable, Weighted Ave. Exercise Price | $ 4.45 |
$ 6.00 - $6.63 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, Lower Range | 6 |
Range of Exercise Prices, Upper Range | $ 6.63 |
Stock Options Outstanding, Number of Shares | shares | 247 |
Stock Options Outstanding, Weighted Ave. Remaining Contractual Life (years) | 9 years 3 months 22 days |
Stock Options Outstanding, Weighted Ave. Exercise Price | $ 6.09 |
Stock Options Exercisable, Number of Shares | shares | 32 |
Stock Options Exerciable, Weighted Ave. Exercise Price | $ 6.52 |
$ 7.70 - $10.90 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, Lower Range | 7.70 |
Range of Exercise Prices, Upper Range | $ 10.90 |
Stock Options Outstanding, Number of Shares | shares | 289 |
Stock Options Outstanding, Weighted Ave. Remaining Contractual Life (years) | 8 years 6 months 18 days |
Stock Options Outstanding, Weighted Ave. Exercise Price | $ 9.65 |
Stock Options Exercisable, Number of Shares | shares | 135 |
Stock Options Exerciable, Weighted Ave. Exercise Price | $ 9.73 |
Benefit Plans (Details)
Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Benefit Plans [Abstract] | |||
Employer contribution requirement, percentage | 3.00% | ||
Employer contribution vesting period | 3 years | ||
Employer matching contribution, percent | 5.00% | ||
Benefit plans recorded expense | $ 0.4 | $ 0.4 | $ 0.3 |
Earnings Per Common Share (Summ
Earnings Per Common Share (Summary Of Basic And Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Basic income per share: | |||||||||||
Net income | $ 1,086 | $ 570 | $ 780 | $ 860 | $ 1,602 | $ 1,679 | $ 1,676 | $ 651 | $ 3,296 | $ 5,608 | $ 3,806 |
Basic weighted average shares outstanding | 11,693 | 11,642 | 11,459 | ||||||||
Basic income per share | $ 0.09 | $ 0.05 | $ 0.07 | $ 0.07 | $ 0.14 | $ 0.14 | $ 0.14 | $ 0.06 | $ 0.28 | $ 0.48 | $ 0.33 |
Diluted income per share: | |||||||||||
Net income | $ 1,086 | $ 570 | $ 780 | $ 860 | $ 1,602 | $ 1,679 | $ 1,676 | $ 651 | $ 3,296 | $ 5,608 | $ 3,806 |
Weighted average shares outstanding | 11,693 | 11,642 | 11,459 | ||||||||
Effect of dilutive securities - options | 242 | 284 | 297 | ||||||||
Diluted weighted average shares outstanding | 11,935 | 11,926 | 11,756 | ||||||||
Diluted income per share | $ 0.09 | $ 0.05 | $ 0.07 | $ 0.07 | $ 0.13 | $ 0.14 | $ 0.14 | $ 0.05 | $ 0.28 | $ 0.47 | $ 0.32 |
Common stock excluded from dilutive stock calculation | 300,000 | 100,000 | 100,000 |
Commitments And Contingencies65
Commitments And Contingencies (Narrative) (Details) - USD ($) $ in Millions | Oct. 24, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Other Commitments [Line Items] | ||||
Rent expense | $ 0.6 | $ 0.6 | $ 0.4 | |
Sublease rental income | $ 0 | $ 0 | $ 0 | |
Telespree [Member] | ||||
Other Commitments [Line Items] | ||||
Initial payment | $ 0.5 |
Commitments And Contingencies66
Commitments And Contingencies (Future Minimum Commitments) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Commitments And Contingencies [Abstract] | ||
Operating Leases, 2016 | $ 656 | |
Operating Leases, 2017 | 626 | |
Operating Leases, 2018 | 438 | |
Operating Leases, 2019 | 243 | |
Operating Leases, 2020 | 56 | |
Operating Lease, Total minimum lease payments | 2,019 | |
Capital Leases, 2016 | 6 | |
Capital Leases, 2017 | $ 1 | |
Capital Leases, 2018 | ||
Capital Leases, 2019 | ||
Capital Leases, 2020 | ||
Capital Leases, Total minimum lease payments | $ 7 | |
Less: Amount representing interest | (1) | |
Principal balance of capital lease obligations | 6 | |
Less: Current portion of capital lease obligations | (5) | $ (5) |
Long-term portion of capital lease obligations | $ 1 | $ 7 |
Segment Information (Segment In
Segment Information (Segment Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenue | |||||||||||
Total revenue | $ 7,072 | $ 5,773 | $ 6,071 | $ 6,660 | $ 7,599 | $ 7,560 | $ 7,939 | $ 6,582 | $ 25,576 | $ 29,680 | $ 25,093 |
Revenue less costs of revenue, excluding depreciation and amortization | |||||||||||
Revenue less costs of revenue, excluding depreciation and amortization | 19,127 | 22,032 | 17,929 | ||||||||
Unallocated Costs | |||||||||||
Other operating expenses | 13,694 | 13,015 | 11,964 | ||||||||
Depreciation and amortization | 580 | 341 | 366 | ||||||||
Restructuring | 533 | 237 | 558 | ||||||||
Interest income | (18) | (19) | (11) | ||||||||
Interest expense | 121 | 17 | 20 | ||||||||
Other (expense) income | 27 | (87) | |||||||||
Foreign currency exchange (gain) loss | 6 | 9 | 39 | ||||||||
Income before income taxes | $ 1,107 | $ 712 | $ 1,093 | $ 1,299 | $ 2,456 | $ 2,506 | $ 2,514 | $ 929 | 4,211 | 8,405 | 5,080 |
License And Services [Member] | |||||||||||
Revenue | |||||||||||
Total revenue | 15,584 | 19,738 | 15,998 | ||||||||
Revenue less costs of revenue, excluding depreciation and amortization | |||||||||||
Revenue less costs of revenue, excluding depreciation and amortization | 10,703 | 13,956 | 10,433 | ||||||||
Customer Support [Member] | |||||||||||
Revenue | |||||||||||
Total revenue | 9,992 | 9,942 | 9,095 | ||||||||
Revenue less costs of revenue, excluding depreciation and amortization | |||||||||||
Revenue less costs of revenue, excluding depreciation and amortization | $ 8,424 | $ 8,076 | $ 7,496 |
Segment Information (Financial
Segment Information (Financial Information Relating To Operations By Geographic Region) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | $ 7,072 | $ 5,773 | $ 6,071 | $ 6,660 | $ 7,599 | $ 7,560 | $ 7,939 | $ 6,582 | $ 25,576 | $ 29,680 | $ 25,093 |
United Kingdom [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 3,956 | 5,568 | 4,921 | ||||||||
Nigeria [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 3,427 | ||||||||||
Mexico [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 3,200 | ||||||||||
Other [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 21,620 | 17,485 | 20,172 | ||||||||
License And Services [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 15,584 | 19,738 | 15,998 | ||||||||
License And Services [Member] | United Kingdom [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 2,191 | 3,551 | 3,018 | ||||||||
License And Services [Member] | Nigeria [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 2,954 | ||||||||||
License And Services [Member] | Mexico [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 2,478 | ||||||||||
License And Services [Member] | Other [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 13,393 | 10,755 | 12,980 | ||||||||
Customer Support [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 9,992 | 9,942 | 9,095 | ||||||||
Customer Support [Member] | United Kingdom [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 1,765 | 2,017 | 1,903 | ||||||||
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 | ||||||||||
Customer Support [Member] | Other [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | $ 8,227 | $ 6,730 | $ 7,192 |
Segment Information (Summary Of
Segment Information (Summary Of Long-lived Assets, Net) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Segment Reporting Information [Line Items] | ||
Long-lived assets, net | $ 28,685 | $ 18,277 |
United States [Member] | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets, net | 13,026 | 1,998 |
United Kingdom [Member] | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets, net | 15,318 | 16,091 |
Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets, net | $ 341 | $ 188 |
Restructuring (Details)
Restructuring (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Restructuring costs paid | $ 500,000 | |||
Restructuring liability | $ 25,000 | $ 25,000 | $ 0 | |
Evolving Systems Labs [Member] | ||||
Restructuring expense | $ 200,000 | $ 600,000 | ||
Evolving Systems NC, Inc [Member] | ||||
Expense of termination employees | $ 500,000 |
Quarterly Financial Infomation
Quarterly Financial Infomation (Unaudited) (Schedule Of Quarterly Financial Information) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Financial Information (Unaudited) [Abstract] | |||||||||||
Total revenue | $ 7,072 | $ 5,773 | $ 6,071 | $ 6,660 | $ 7,599 | $ 7,560 | $ 7,939 | $ 6,582 | $ 25,576 | $ 29,680 | $ 25,093 |
Less: cost of revenue and operating expenses | 6,069 | 4,819 | 5,130 | 5,238 | 5,123 | 5,241 | 5,322 | 5,555 | 21,256 | 21,241 | 20,052 |
Income from operations | 1,003 | 954 | 941 | 1,422 | 2,476 | 2,319 | 2,617 | 1,027 | 4,320 | 8,439 | 5,041 |
Income before income taxes | 1,107 | 712 | 1,093 | 1,299 | 2,456 | 2,506 | 2,514 | 929 | 4,211 | 8,405 | 5,080 |
Net income | $ 1,086 | $ 570 | $ 780 | $ 860 | $ 1,602 | $ 1,679 | $ 1,676 | $ 651 | $ 3,296 | $ 5,608 | $ 3,806 |
Basic income per common share - net income | $ 0.09 | $ 0.05 | $ 0.07 | $ 0.07 | $ 0.14 | $ 0.14 | $ 0.14 | $ 0.06 | $ 0.28 | $ 0.48 | $ 0.33 |
Diluted income per common share - net income | $ 0.09 | $ 0.05 | $ 0.07 | $ 0.07 | $ 0.13 | $ 0.14 | $ 0.14 | $ 0.05 | $ 0.28 | $ 0.47 | $ 0.32 |
Subsequent Events (Details)
Subsequent Events (Details) | Mar. 15, 2016$ / shares | Feb. 29, 2016USD ($)item | Feb. 29, 2016USD ($)item | Dec. 31, 2015$ / shares | Sep. 30, 2015$ / shares | Jun. 30, 2015$ / shares | Mar. 31, 2015$ / shares | Dec. 31, 2015$ / shares | Dec. 31, 2014$ / shares | Dec. 31, 2013$ / shares |
Subsequent Event [Line Items] | ||||||||||
Cash dividend declared per common share | $ / shares | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.44 | $ 0.42 | $ 0.36 | |||
Subsequent Event [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Dividend declared date | Mar. 15, 2016 | |||||||||
Cash dividend declared per common share | $ / shares | $ 0.11 | |||||||||
Dividends payable, payable date | Apr. 1, 2016 | |||||||||
Dividends payable, record date | Mar. 28, 2016 | |||||||||
Annual credit facility fees | $ 18,750 | |||||||||
Legal fee | 1,000 | $ 1,000 | ||||||||
Cash balances to pay off revolving facilities | $ 4,000,000 | |||||||||
Subsequent Event [Member] | Term Loan [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Maturity date | Jan. 1, 2020 | |||||||||
Evolving Systems NC, Inc [Member] | Subsequent Event [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Expense of termination employees | 600,000 | |||||||||
East West Bank [Member] | Subsequent Event [Member] | Term Loan [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Loan amount | $ 6,000,000 | $ 6,000,000 | ||||||||
Number of monthly installments of principal | item | 36 | 36 | ||||||||
East West Bank [Member] | Subsequent Event [Member] | Prime Rate [Member] | Term Loan [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Interest rate | 1.00% | |||||||||
Revolving Facility [Member] | Subsequent Event [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Two revolving facilities amount | $ 10,000,000 | $ 10,000,000 |