Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Jul. 31, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Jun-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Entity Registrant Name | 'IPASS INC | ' |
Entity Central Index Key | '0001053374 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 64,506,482 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $41,670 | $24,017 |
Accounts receivable, net of allowance for doubtful accounts of $597 and $1,010, respectively | 14,071 | 15,297 |
Prepaid expenses and other current assets | 3,181 | 4,329 |
Total current assets | 58,922 | 43,643 |
Property and equipment, net | 7,429 | 8,442 |
Other assets | 1,041 | 2,831 |
Total assets | 67,392 | 54,916 |
Current liabilities: | ' | ' |
Accounts payable | 8,484 | 9,334 |
Accrued liabilities | 10,620 | 9,100 |
Deferred revenue, short-term | 302 | 3,212 |
Total current liabilities | 19,406 | 21,646 |
Deferred revenue, long-term | 2 | 2,191 |
Vendor financed property and equipment | 1,411 | 1,586 |
Other long-term liabilities | 877 | 251 |
Total liabilities | 21,696 | 25,674 |
Stockholders’ equity: | ' | ' |
Common stock | 65 | 65 |
Additional paid-in capital | 219,229 | 218,103 |
Accumulated deficit | -173,598 | -188,926 |
Total stockholders’ equity | 45,696 | 29,242 |
Total liabilities and stockholders’ equity | $67,392 | $54,916 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Accounts receivable, allowance for doubtful accounts | $597 | $1,010 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Comprehensive Loss (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Revenue | $17,762 | $20,288 | $35,399 | $41,197 |
Cost of revenues and operating expenses: | ' | ' | ' | ' |
Network access costs | 7,671 | 7,445 | 14,878 | 14,850 |
Network operations | 3,336 | 3,075 | 7,053 | 6,117 |
Research and development | 2,877 | 3,414 | 6,261 | 7,028 |
Sales and marketing | 4,212 | 3,848 | 8,777 | 8,241 |
General and administrative | 4,230 | 4,998 | 9,001 | 10,921 |
Restructuring charges and related adjustments | 16 | 26 | 30 | 626 |
Total cost of revenue and operating expenses | 22,342 | 22,806 | 46,000 | 47,783 |
Operating loss | -4,580 | -2,518 | -10,601 | -6,586 |
Interest income (expense), net | -33 | 3 | -66 | 7 |
Foreign exchange losses | -106 | -114 | -177 | -187 |
Loss from continuing operations before income taxes | -4,719 | -2,629 | -10,844 | -6,766 |
Benefit from income taxes | 4,004 | 417 | 4,183 | 683 |
Net loss from continuing operations | -715 | -2,212 | -6,661 | -6,083 |
Net income from discontinued operations (Note 11) | 21,592 | 626 | 21,989 | 1,122 |
Total net income (loss) | 20,877 | -1,586 | 15,328 | -4,961 |
Total comprehensive net income (loss) | $20,877 | ($1,586) | $15,328 | ($4,961) |
Net income (loss) per share | ' | ' | ' | ' |
Earnings Per Share, Basic and Diluted, Continuing Operations (per share) | ($0.01) | ($0.04) | ($0.10) | ($0.10) |
Earnings Per Share, Basic and Diluted, Discontinued Operations (per share) | $0.33 | $0.01 | $0.34 | $0.02 |
Earnings Per Share, Basic and Diluted | $0.32 | ($0.03) | $0.24 | ($0.08) |
Basic and diluted (shares) | 64,389,365 | 63,381,344 | 64,405,375 | 62,639,498 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Cash flows from operating activities: | ' | ' |
Net loss | $15,328 | ($4,961) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ' | ' |
Gain on sale of discontinued operations | -25,014 | 0 |
Stock-based compensation | 978 | 1,586 |
Depreciation and amortization | 1,727 | 1,255 |
Deferred income taxes | -6 | 0 |
Loss on disposal of property and equipment | 0 | 2 |
Provision for (recovery of) doubtful accounts | -113 | 34 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | -1,249 | -835 |
Prepaid expenses and other current assets | 724 | -56 |
Other assets | 0 | 494 |
Accounts payable | -446 | 1,312 |
Accrued liabilities | -34 | 432 |
Deferred revenue | -577 | -624 |
Other liabilities | 485 | -111 |
Net cash used in operating activities | -8,197 | -1,472 |
Cash flows from investing activities: | ' | ' |
Purchases of property and equipment | -886 | -1,246 |
Proceeds from sale of discontinued operations | 26,750 | 0 |
Change in restricted cash | 100 | 0 |
Net cash provided by (used in) investing activities | 25,964 | -1,246 |
Cash flows from financing activities: | ' | ' |
Proceeds from issuance of common stock | 149 | 912 |
Principal payments for vendor financed property and equipment | -263 | 0 |
Net cash provided by (used in) financing activities | -114 | 912 |
Net increase (decrease) in cash and cash equivalents | 17,653 | -1,806 |
Cash and cash equivalents at beginning of period | 24,017 | 26,822 |
Cash and cash equivalents at end of period | 41,670 | 25,016 |
Supplemental disclosures of cash flow information: | ' | ' |
Net cash paid for taxes | 121 | 150 |
Accrued amounts for acquisition of property and equipment | 64 | 26 |
Vendor Financed Computer Software and Hardware | $501 | $0 |
Basis_of_Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation and Recent Accounting Pronouncements | |
Basis of Presentation | |
The Condensed Consolidated Financial Statements include the accounts of iPass Inc. (the “Company”) and its wholly owned subsidiaries. The Condensed Consolidated Financial Statements that accompany these notes have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) consistent in all material respects with those applied in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. The Condensed Consolidated Financial Statements as of and for December 31, 2013, were derived from audited financial statements but do not include all disclosures required by GAAP. The interim financial information is unaudited but reflects all normal adjustments that are, in the opinion of management, necessary to provide a fair presentation for the interim periods presented. This interim financial information should be read in conjunction with the Consolidated Financial Statements and the Notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. The results of operations for the three and six months ended June 30, 2014, are not necessarily indicative of the operating results for the full fiscal year or any future periods. | |
The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and judgments that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results that the Company experiences may differ materially from those estimates. Estimates are used for, but not limited to, the valuation of accounts receivables, other long-lived assets, network access costs, stock-based compensation, legal contingencies, and income taxes. | |
The Company reports comprehensive income (loss) in a single continuous financial statement within the Condensed Consolidated Statements of Comprehensive Income (Loss). The Company’s comprehensive income (loss) is equivalent to its net income (loss) because the Company does not have any transactions that are recorded through other comprehensive income (loss). | |
The Condensed Consolidated Statements of Comprehensive Income (Loss) have been reclassified for all periods presented to reflect discontinued operations treatment. (Refer to Note 11 for discussion related to Divestiture of Business Segment). | |
Recent Accounting Pronouncements | |
In July 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2013-11, Income Taxes: Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. ASU 2013-11 requires the unrecognized tax benefit to be presented as a reduction of a deferred tax asset for a net operating loss carryforward, or similar tax loss or tax credit carryforward, except that, if a net operating loss carryforward, a similar tax loss or a tax credit carryforward is not available at the reporting date to settle any additional income taxes that would result from the disallowance of a tax position, then the unrecognized tax benefit should be presented as a liability. ASU No. 2013-11 is effective prospectively for fiscal years, and interim periods within those years beginning after December 15, 2013. The adoption of ASU No. 2013-11 has not had a material impact on the Company’s financial position or results of operations. |
Fair_Value
Fair Value | 6 Months Ended | |||||||||||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||||||||||||||
Fair Value | ' | |||||||||||||||||||||||||||||||
Financial Instruments and Fair Value | ||||||||||||||||||||||||||||||||
Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction in the principal or most advantageous market between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers assumptions that market participants would use when pricing the asset or liability. | ||||||||||||||||||||||||||||||||
Fair Value Hierarchy | ||||||||||||||||||||||||||||||||
The three levels of inputs that may be used to measure fair value are as follows: | ||||||||||||||||||||||||||||||||
• | Level 1—Quoted prices in active markets for identical assets or liabilities; | |||||||||||||||||||||||||||||||
• | Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and | |||||||||||||||||||||||||||||||
• | Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. | |||||||||||||||||||||||||||||||
The recurring fair value measurements of these financial assets (excluding cash) were determined using the following inputs at June 30, 2014, and December 31, 2013, respectively: | ||||||||||||||||||||||||||||||||
As of June 30, 2014 | As of December 31, 2013 | |||||||||||||||||||||||||||||||
Fair Value | Total | Fair Value | Total | |||||||||||||||||||||||||||||
Measured Using | Balance | Measured Using | Balance | |||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Financial assets | ||||||||||||||||||||||||||||||||
Money market funds(1) | $ | 12,305 | $ | — | $ | — | $ | 12,305 | $ | 18,304 | $ | — | $ | — | $ | 18,304 | ||||||||||||||||
Total financial assets | $ | 12,305 | $ | — | $ | — | $ | 12,305 | $ | 18,304 | $ | — | $ | — | $ | 18,304 | ||||||||||||||||
-1 | Held in cash and cash equivalents on the Company’s condensed consolidated balance sheets. | |||||||||||||||||||||||||||||||
There were no transfers between Levels 1, 2, and 3 from December 31, 2013, through June 30, 2014. As of June 30, 2014, and December 31, 2013, the carrying amounts of accounts receivable, accounts payable and accrued liabilities, approximated fair value due to their short maturities. |
Property_and_Equipment_Net
Property and Equipment, Net | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property and Equipment, Net | ' | |||||||
Note 3. Property and Equipment, net | ||||||||
Property and equipment, net, consisted of the following: | ||||||||
June 30, | December 31, 2013 | |||||||
2014 | ||||||||
(In thousands) | ||||||||
Equipment | $ | 15,472 | $ | 15,134 | ||||
Furniture and fixtures | 1,923 | 2,110 | ||||||
Computer software | 10,882 | 12,279 | ||||||
Construction in progress | 112 | 749 | ||||||
Leasehold improvements | 942 | 1,252 | ||||||
29,331 | 31,524 | |||||||
Less: Accumulated depreciation and amortization | (21,902 | ) | (23,082 | ) | ||||
Property and equipment, net | $ | 7,429 | $ | 8,442 | ||||
Depreciation expense for continuing operations was approximately $0.8 million and $1.6 million for the three and six months ended June 30, 2014, respectively. Depreciation expense for discontinued operations was less than $0.1 million for each of the three and six months ended June 30, 2014. | ||||||||
Depreciation expense for continuing operations was approximately $0.6 million and $1.1 million for the three and six months ended June 30, 2013, respectively. Depreciation expense for discontinued operations was less than $0.1 million for each of the three and six months ended June 30, 2013. | ||||||||
During the three months and six months ended June 30, 2014, the Company retired approximately $0.9 million and $1.3 million, respectively, of gross property and equipment related to continuing operations, nearly all of which were fully depreciated. In connection with the sale of discontinued operations, the Company sold approximately $2.0 million of gross property and equipment related to the discontinued operations. | ||||||||
During 2013, the Company acquired approximately $2.6 million of enterprise database software and infrastructure hardware. During April 2014, the Company acquired approximately $0.5 million of additional enterprise infrastructure hardware. As of June 30, 2014, the Company held approximately $3.1 million of this enterprise database software and infrastructure hardware in computer software and equipment. |
Other_Assets
Other Assets | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | |||||||
Other Assets | ' | |||||||
Note 4. Other Assets (Non-Current) | ||||||||
Other assets consisted of the following: | ||||||||
30-Jun-14 | 31-Dec-13 | |||||||
(In thousands) | ||||||||
Deferred installation costs and other long-term assets | — | 1,677 | ||||||
Deposits | 795 | 808 | ||||||
Long-term deferred tax assets, net | 96 | 96 | ||||||
Restricted cash | 150 | 250 | ||||||
$ | 1,041 | $ | 2,831 | |||||
Accrued_Liabilities
Accrued Liabilities | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Payables and Accruals [Abstract] | ' | |||||||
Accrued Liabilities | ' | |||||||
Note 5. Accrued Liabilities | ||||||||
Accrued liabilities consisted of the following: | ||||||||
30-Jun-14 | 31-Dec-13 | |||||||
(In thousands) | ||||||||
Tax liabilities | $ | 1,500 | $ | 2,102 | ||||
Accrued restructuring liabilities – current (1) | 161 | 200 | ||||||
Accrued bonus, commissions and other employee benefits | 3,262 | 2,395 | ||||||
Accrued for vendor financed property and equipment (2) | 1,159 | 746 | ||||||
Amounts due to customers | 1,189 | 1,059 | ||||||
Other accrued liabilities (3) | 3,349 | 2,598 | ||||||
$ | 10,620 | $ | 9,100 | |||||
-1 | See Note 6 "Accrued Restructuring" | |||||||
-2 | See Note 7 "Vendor Financed Property and Equipment" | |||||||
-3 | Includes approximately $2.2 million of transaction costs associated with the sale of discontinued operations (see Note 11 "Divestiture of Business Segment") |
Accrued_Restructuring
Accrued Restructuring | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||
Accrued Restructuring | ' | |||||||
Accrued Restructuring | ||||||||
During the year ended December 31, 2009, the Company announced restructuring plans (the “2009 Plans”) to reduce operating costs and focus resources on key strategic priorities, which resulted in a workforce reduction of 146 positions across all functional areas and abandonment of certain facilities and termination of a contract obligation. As of June 30, 2014, the Company had remaining lease payments of approximately $0.2 million, which were recorded at fair value at the time of restructuring plan was announced. Management made assumptions in determining the fair value of the lease liabilities. The discounted cash flow valuation technique used to determine the Level 3 fair value included inputs, such as the future rent payment schedule, the discount rate and sublease income based on the executed sublease agreement through the end of the lease terms. | ||||||||
During the first quarter of 2013, the Company announced a restructuring plan (the “Q1 2013 Plan”) to re-align its cost structure to focus investments, resources and operating expenses on the Company’s growing Open Mobile business, which resulted in a workforce reduction of 16 positions across all functional areas and termination of a lease contract. As of June 30, 2014, the Company had completed the majority of cash payments. | ||||||||
The following is a rollforward of restructuring liability for the Q1 2013 and 2009 Plans: | ||||||||
Three Months Ended June 30, | ||||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Beginning balance | $ | 250 | $ | 817 | ||||
Restructuring charges and related adjustments | 16 | 26 | ||||||
Payments and adjustments | (85 | ) | (395 | ) | ||||
Ending balance | $ | 181 | $ | 448 | ||||
Six Months Ended June 30, | ||||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Beginning balance | 317 | 483 | ||||||
Restructuring charges and related adjustments | 30 | 626 | ||||||
Payments and adjustments | (166 | ) | (661 | ) | ||||
Ending balance | 181 | 448 | ||||||
Vendor_Financed_PPE
Vendor Financed PPE | 6 Months Ended |
Jun. 30, 2014 | |
Property, Plant and Equipment [Abstract] | ' |
Vendor Financed Property and Equipment [Text Block] | ' |
Vendor Financed Property and Equipment | |
In October 2013, the Company acquired enterprise database software and infrastructure hardware. This purchase was financed through the vendor and is to be paid over three years. In April 2014, the Company acquired additional enterprise infrastructure hardware which was financed through the vendor and is to be paid over two years. The total purchases financed by the vendor were approximately $3.1 million. Since October 2013, the Company made approximately $0.5 million of principal payments, and as of June 30, 2014, approximately $1.2 million and $1.4 million were recorded to accrued liabilities and vendor financed property and equipment, respectively, based on the payment terms. The Company expects to pay principal payments of $0.6 million, $1.1 million and $0.9 million in the last six months of 2014, and in 2015, and 2016, respectively. | |
As of June 30, 2014, $1.4 million of vendor financed property and equipment is recorded at cost, which approximates a Level 3 fair value, and is included as long-term liabilities in the Company’s consolidated balance sheet. The Company made assumptions in determining the fair value of the vendor financed property and equipment long-term liability. The discounted cash flow valuation technique was used to determine the Level 3 fair value including inputs such as the future payment schedule and a market discount rate. |
Commitments_and_Contingencies
Commitments and Contingencies | 6 Months Ended | |||
Jun. 30, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||
Commitments and Contingencies | ' | |||
Commitments and Contingencies | ||||
Lease and Purchase Commitments | ||||
The Company leases facilities under operating leases that expire at various dates through June 2017. Future minimum lease payments under these operating leases, including approximately $0.2 million of future payments on leases accounted for under the Company’s restructuring plans, as of June 30, 2014, are as follows: | ||||
Year | Operating | |||
Leases | ||||
(In thousands) | ||||
Remaining 2014 | $ | 1,383 | ||
2015 | 1,160 | |||
2016 | 328 | |||
2017 | 159 | |||
$ | 3,030 | |||
The Company has contracts with certain network service providers which have minimum purchase commitments that expire on various dates through April 2017. In addition, the Company has a future minimum purchase commitment of approximately $0.7 million related to an annual support fee for acquired enterprise infrastructure hardware to be paid over the next three years. Future minimum purchase commitments as of June 30, 2014, under all agreements are as follows: | ||||
Year | Minimum | |||
Purchase | ||||
Commitments | ||||
(In thousands) | ||||
Remaining 2014 | $ | 3,439 | ||
2015 | 3,481 | |||
2016 | 477 | |||
2017 | 44 | |||
$ | 7,441 | |||
Legal Proceedings | ||||
The Company is involved in legal proceedings and claims arising in the ordinary course of business. While there can be no assurances as to the ultimate outcome of any litigation involving the Company, management does not believe any such pending legal proceeding or claim will result in a judgment or settlement that would have a material adverse effect on the Company’s financial position, results of operations or cash flows. | ||||
In the ordinary course of business, the Company may provide indemnifications of varying scope and terms to customers, business partners, and other parties with respect to certain matters, including, but not limited to, losses arising out of breach of such agreements, services to be provided by the Company, or from intellectual property infringement claims made by third-parties. Certain indemnification agreements may not be subject to maximum loss clauses. If the potential loss from any indemnification claim is considered probable and the amount or the range of the loss can be estimated, the Company accrues a liability for the estimated loss. To date, claims under such indemnification provisions have not been significant. |
Net_Loss_Per_Common_Share
Net Loss Per Common Share | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Net Loss Per Common Share | ' | |||||||||||||||
Note 9. Calculation of Net (Loss) Income Per Share | ||||||||||||||||
Basic net income (loss) per share is computed by dividing net income (loss) available to shareholders by the weighted average number of shares outstanding during the period. Diluted net income (loss) per share is computed by dividing net income (loss) available to shareholders by the weighted average number of diluted shares outstanding. Unvested participating securities that vest based on service are included in the weighted daily average number of shares outstanding used in the calculation of basic net income or loss per share. | ||||||||||||||||
When an entity has a loss from continuing operations, including potential shares in the denominator of diluted per-share computations for continuing operations will generally be antidilutive, even if the entity has net income after adjusting for discontinued operations. That is, including potential shares in the denominator of the earnings per share calculation for a loss-making entity will generally decrease the loss per share and, therefore those shares should be excluded from calculations of diluted earnings per share. Accordingly, for all periods presented, basic weighted-average shares outstanding were used in calculating the diluted net income (loss) per share. | ||||||||||||||||
The following table sets forth the computation of basic and diluted net (loss) income per share: | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(In thousands, except share and per share amounts) | (In thousands, except share and per share amounts) | |||||||||||||||
Numerator: | ||||||||||||||||
Net loss from continuing operations | $ | (715 | ) | $ | (2,212 | ) | $ | (6,661 | ) | $ | (6,083 | ) | ||||
Net income from discontinued operations | $ | 21,592 | $ | 626 | $ | 21,989 | 1,122 | |||||||||
Net income (loss) | 20,877 | (1,586 | ) | 15,328 | (4,961 | ) | ||||||||||
Denominator: | ||||||||||||||||
Weighted average shares outstanding - basic and diluted | 64,389,365 | 63,381,344 | 64,405,375 | 62,639,498 | ||||||||||||
Income (loss) per share - basic and diluted: | ||||||||||||||||
Loss from continuing operations | $ | (0.01 | ) | $ | (0.04 | ) | $ | (0.10 | ) | $ | (0.10 | ) | ||||
Income from discontinued operations | $ | 0.33 | $ | 0.01 | $ | 0.34 | $ | 0.02 | ||||||||
Net income (loss) per share | $ | 0.32 | $ | (0.03 | ) | $ | 0.24 | $ | (0.08 | ) | ||||||
The following weighted average potential shares of common stock have been excluded from the computation of diluted net (loss) income per share because the effect of including these shares would have been anti-dilutive: | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Options to purchase common stock | 5,048,438 | 3,582,062 | 4,612,331 | 3,099,021 | ||||||||||||
Restricted stock awards, including participating securities | 2,621,546 | 2,746,970 | 2,713,837 | 2,287,382 | ||||||||||||
Total | 7,669,984 | 6,329,032 | 7,326,168 | 5,386,403 | ||||||||||||
Segment_and_Geographical_Infor
Segment and Geographical Information | 6 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||
Segment and Geographical Information | ' | |||||||||||
Segment and Geographical Information | ||||||||||||
The Company had two reportable operating segments, Mobility Services and iPass Unity Network Services (“Unity”). The Mobility Services segment includes services that help enterprises manage the networks, connections and devices used by their mobile workforce. The iPass Unity segment provided customers with Wi-Fi and Wide Area Network solutions. | ||||||||||||
On June 30, 2014 the Company entered into an agreement and completed the sale of its Unity business segment, which is reported in this filing as discontinued operations. Therefore, the Company currently has a single reportable operating segment, Mobility Services, and geographical information is shown below. | ||||||||||||
The following table summarizes total Company revenue by country or by geographical region: | ||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||
United States | 34 | % | 38 | % | 35 | % | 38 | % | ||||
EMEA | 49 | % | 46 | % | 47 | % | 46 | % | ||||
Asia Pacific | 15 | % | 14 | % | 16 | % | 14 | % | ||||
Rest of the World | 2 | % | 2 | % | 2 | % | 2 | % | ||||
No individual country, except for the United States, United Kingdom, and Germany, represented 10% or more of total revenue for the three months and six months ended June 30, 2014 and 2013. | ||||||||||||
No individual customer represented 10% or more of total revenue for the three months and six months ended June 30, 2014 and 2013. | ||||||||||||
Substantially all of the Company’s long-lived assets are located in the United States. |
Discontinued_Operations_Notes
Discontinued Operations (Notes) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | |||||||||||||||
Discontinued Operations | ' | |||||||||||||||
Divestiture of Business Segment | ||||||||||||||||
On June 30, 2014 the Company entered into an agreement and completed the sale of its Unity business segment for gross cash proceeds of approximately $28.2 million, subject to a final working capital adjustment, and accrued approximately $2.2 million of transaction costs to be paid in the third quarter of 2014. The Company recorded a gain on sale of approximately $25.0 million. The gross cash proceeds included $1.4 million that was placed into an escrow account to cover any contingent claims made by the buyer against iPass through June 30, 2015 and is recorded in Prepaid Expenses and Other Current Assets on the Condensed Consolidated Balance Sheets. In accordance with ASC 205-20, the results of operations for the Unity business segment through June 30, 2014, and for all applicable prior periods, are reported as discontinued operations. The Company did not have any assets held for sale as of June 30, 2014 or December 31, 2013. | ||||||||||||||||
Concurrent with the sale of its Unity business segment, iPass and the buyer entered into a transition services agreement pursuant to which each of the parties will provide certain transitional, administrative, and support services to the other party for a period up to six months, which may be extended upon mutual agreement. Such services provided to the buyer by iPass will be recorded as contra-expense since the Company will be reimbursed for the service cost incurred. Activity associated with transitional service is not considered significant relative to the condensed consolidated financial statements of the Company. | ||||||||||||||||
Income tax expenses was recorded in discontinued operations for the three months ended June 30, 2014 and 2013 of approximately $4.2 million and $0.4 million, respectively. Income tax expense was recorded for the six months ended June 30, 2014 and 2013, of approximately $4.5 million and $0.7 million, respectively. This primarily reflects tax expense on discontinued operations with an offsetting benefit in continuing operations of $4.1 million and $0.4 million for the three months ended June 30, 2014 and 2013, respectively and $4.4 million and $0.7 million for the six months ended June 30, 2014 and 2013, respectively. The $4.1 million and $4.4 million of tax benefits represent the Company’s ability to utilize net operating losses to offset tax associated with the gain on the sale of the unity business. | ||||||||||||||||
The following table presents the revenues and components of discontinued operations, net of tax. | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Revenue | 7,755 | 8,377 | 15,458 | 17,097 | ||||||||||||
Income from discontinued operations before income taxes | 809 | 1,002 | 1,506 | 1,791 | ||||||||||||
Gain on sale of discontinued operations before income taxes | 25,014 | — | 25,014 | — | ||||||||||||
Provision for income taxes | (4,231 | ) | (376 | ) | (4,531 | ) | (669 | ) | ||||||||
Income from discontinued operations, net of tax | $ | 21,592 | $ | 626 | $ | 21,989 | $ | 1,122 | ||||||||
The table above excludes certain shared overhead costs and transfer pricing adjustments that were previously allocated to the Unity business segment in the historical iPass consolidated financial statements that were filed with the Securities and Exchange Commission ("SEC"). The provisions for income taxes primarily reflect tax expense on discontinued operations including the gain on sale, which is mostly offset by benefit in continuing operations. |
Subsequent_Event_Notes
Subsequent Event (Notes) | 6 Months Ended |
Jun. 30, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
Subsequent Event | |
On August 11, 2014, the Company announced a plan to re-align its cost structure as a result of the divestiture of the Unity business. As a result of the sale, certain overhead and administration costs are no longer required for the continuing operations. iPass expects to reduce its current workforce by approximately 7%, eliminate recruiting for certain existing open positions, and record in the aggregate, approximately $0.9 million of restructuring charges during the third quarter of 2014, including consolidation of certain existing leased facilities. |
Fair_Value_Tables
Fair Value (Tables) | 6 Months Ended | |||||||||||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||||||||||||||
Fair Value of Financial Assets (Excluding Cash) and Financial Liabilities | ' | |||||||||||||||||||||||||||||||
The recurring fair value measurements of these financial assets (excluding cash) were determined using the following inputs at June 30, 2014, and December 31, 2013, respectively: | ||||||||||||||||||||||||||||||||
As of June 30, 2014 | As of December 31, 2013 | |||||||||||||||||||||||||||||||
Fair Value | Total | Fair Value | Total | |||||||||||||||||||||||||||||
Measured Using | Balance | Measured Using | Balance | |||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Financial assets | ||||||||||||||||||||||||||||||||
Money market funds(1) | $ | 12,305 | $ | — | $ | — | $ | 12,305 | $ | 18,304 | $ | — | $ | — | $ | 18,304 | ||||||||||||||||
Total financial assets | $ | 12,305 | $ | — | $ | — | $ | 12,305 | $ | 18,304 | $ | — | $ | — | $ | 18,304 | ||||||||||||||||
-1 | Held in cash and cash equivalents on the Company’s condensed consolidated balance sheets. |
Property_and_Equipment_Net_Tab
Property and Equipment, Net (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Components of Property and Equipment, Net | ' | |||||||
Property and equipment, net, consisted of the following: | ||||||||
June 30, | December 31, 2013 | |||||||
2014 | ||||||||
(In thousands) | ||||||||
Equipment | $ | 15,472 | $ | 15,134 | ||||
Furniture and fixtures | 1,923 | 2,110 | ||||||
Computer software | 10,882 | 12,279 | ||||||
Construction in progress | 112 | 749 | ||||||
Leasehold improvements | 942 | 1,252 | ||||||
29,331 | 31,524 | |||||||
Less: Accumulated depreciation and amortization | (21,902 | ) | (23,082 | ) | ||||
Property and equipment, net | $ | 7,429 | $ | 8,442 | ||||
Other_Assets_Tables
Other Assets (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | |||||||
Components of Other Assets | ' | |||||||
Other assets consisted of the following: | ||||||||
30-Jun-14 | 31-Dec-13 | |||||||
(In thousands) | ||||||||
Deferred installation costs and other long-term assets | — | 1,677 | ||||||
Deposits | 795 | 808 | ||||||
Long-term deferred tax assets, net | 96 | 96 | ||||||
Restricted cash | 150 | 250 | ||||||
$ | 1,041 | $ | 2,831 | |||||
Accrued_Liabilities_Tables
Accrued Liabilities (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Payables and Accruals [Abstract] | ' | |||||||
Schedule of Accrued Liabilities | ' | |||||||
Accrued liabilities consisted of the following: | ||||||||
30-Jun-14 | 31-Dec-13 | |||||||
(In thousands) | ||||||||
Tax liabilities | $ | 1,500 | $ | 2,102 | ||||
Accrued restructuring liabilities – current (1) | 161 | 200 | ||||||
Accrued bonus, commissions and other employee benefits | 3,262 | 2,395 | ||||||
Accrued for vendor financed property and equipment (2) | 1,159 | 746 | ||||||
Amounts due to customers | 1,189 | 1,059 | ||||||
Other accrued liabilities (3) | 3,349 | 2,598 | ||||||
$ | 10,620 | $ | 9,100 | |||||
-1 | See Note 6 "Accrued Restructuring" | |||||||
-2 | See Note 7 "Vendor Financed Property and Equipment" | |||||||
-3 | Includes approximately $2.2 million of transaction costs associated with the sale of discontinued operations (see Note 11 "Divestiture of Business Segment") |
Accrued_Restructuring_Tables
Accrued Restructuring (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||
Summary of Accrued Restructuring | ' | |||||||
The following is a rollforward of restructuring liability for the Q1 2013 and 2009 Plans: | ||||||||
Three Months Ended June 30, | ||||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Beginning balance | $ | 250 | $ | 817 | ||||
Restructuring charges and related adjustments | 16 | 26 | ||||||
Payments and adjustments | (85 | ) | (395 | ) | ||||
Ending balance | $ | 181 | $ | 448 | ||||
Six Months Ended June 30, | ||||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Beginning balance | 317 | 483 | ||||||
Restructuring charges and related adjustments | 30 | 626 | ||||||
Payments and adjustments | (166 | ) | (661 | ) | ||||
Ending balance | 181 | 448 | ||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 6 Months Ended | |||
Jun. 30, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||
Schedule of Future Minimum Lease Payments | ' | |||
The Company leases facilities under operating leases that expire at various dates through June 2017. Future minimum lease payments under these operating leases, including approximately $0.2 million of future payments on leases accounted for under the Company’s restructuring plans, as of June 30, 2014, are as follows: | ||||
Year | Operating | |||
Leases | ||||
(In thousands) | ||||
Remaining 2014 | $ | 1,383 | ||
2015 | 1,160 | |||
2016 | 328 | |||
2017 | 159 | |||
$ | 3,030 | |||
Schedule of Future Minimum Purchase Commitments | ' | |||
The Company has contracts with certain network service providers which have minimum purchase commitments that expire on various dates through April 2017. In addition, the Company has a future minimum purchase commitment of approximately $0.7 million related to an annual support fee for acquired enterprise infrastructure hardware to be paid over the next three years. Future minimum purchase commitments as of June 30, 2014, under all agreements are as follows: | ||||
Year | Minimum | |||
Purchase | ||||
Commitments | ||||
(In thousands) | ||||
Remaining 2014 | $ | 3,439 | ||
2015 | 3,481 | |||
2016 | 477 | |||
2017 | 44 | |||
$ | 7,441 | |||
Net_Loss_Per_Common_Share_Tabl
Net Loss Per Common Share (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Schedule of Computation of Basic and Diluted Net Loss Per Share | ' | |||||||||||||||
The following table sets forth the computation of basic and diluted net (loss) income per share: | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(In thousands, except share and per share amounts) | (In thousands, except share and per share amounts) | |||||||||||||||
Numerator: | ||||||||||||||||
Net loss from continuing operations | $ | (715 | ) | $ | (2,212 | ) | $ | (6,661 | ) | $ | (6,083 | ) | ||||
Net income from discontinued operations | $ | 21,592 | $ | 626 | $ | 21,989 | 1,122 | |||||||||
Net income (loss) | 20,877 | (1,586 | ) | 15,328 | (4,961 | ) | ||||||||||
Denominator: | ||||||||||||||||
Weighted average shares outstanding - basic and diluted | 64,389,365 | 63,381,344 | 64,405,375 | 62,639,498 | ||||||||||||
Income (loss) per share - basic and diluted: | ||||||||||||||||
Loss from continuing operations | $ | (0.01 | ) | $ | (0.04 | ) | $ | (0.10 | ) | $ | (0.10 | ) | ||||
Income from discontinued operations | $ | 0.33 | $ | 0.01 | $ | 0.34 | $ | 0.02 | ||||||||
Net income (loss) per share | $ | 0.32 | $ | (0.03 | ) | $ | 0.24 | $ | (0.08 | ) | ||||||
Schedule of Anti-dilutive Shares Excluded from Computation of Diluted Net Loss Per Share | ' | |||||||||||||||
The following weighted average potential shares of common stock have been excluded from the computation of diluted net (loss) income per share because the effect of including these shares would have been anti-dilutive: | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Options to purchase common stock | 5,048,438 | 3,582,062 | 4,612,331 | 3,099,021 | ||||||||||||
Restricted stock awards, including participating securities | 2,621,546 | 2,746,970 | 2,713,837 | 2,287,382 | ||||||||||||
Total | 7,669,984 | 6,329,032 | 7,326,168 | 5,386,403 | ||||||||||||
Segment_and_Geographical_Infor1
Segment and Geographical Information (Tables) | 6 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||
Summary of Revenue by Geographical Region | ' | |||||||||||
The following table summarizes total Company revenue by country or by geographical region: | ||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||
United States | 34 | % | 38 | % | 35 | % | 38 | % | ||||
EMEA | 49 | % | 46 | % | 47 | % | 46 | % | ||||
Asia Pacific | 15 | % | 14 | % | 16 | % | 14 | % | ||||
Rest of the World | 2 | % | 2 | % | 2 | % | 2 | % | ||||
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | |||||||||||||||
Schedule of Discontinued Operations, Income Statement | ' | |||||||||||||||
The following table presents the revenues and components of discontinued operations, net of tax. | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Revenue | 7,755 | 8,377 | 15,458 | 17,097 | ||||||||||||
Income from discontinued operations before income taxes | 809 | 1,002 | 1,506 | 1,791 | ||||||||||||
Gain on sale of discontinued operations before income taxes | 25,014 | — | 25,014 | — | ||||||||||||
Provision for income taxes | (4,231 | ) | (376 | ) | (4,531 | ) | (669 | ) | ||||||||
Income from discontinued operations, net of tax | $ | 21,592 | $ | 626 | $ | 21,989 | $ | 1,122 | ||||||||
The table above excludes certain shared overhead costs and transfer pricing adjustments that were previously allocated to the Unity business segment in the historical iPass consolidated financial statements that were filed with the Securities and Exchange Commission ("SEC"). |
Fair_Value_Fair_Value_of_Finan
Fair Value - Fair Value of Financial Assets (Excluding Cash) and Financial Liabilities (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total financial assets | $12,305 | $18,304 | ||
Money market funds | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total financial assets | 12,305 | [1] | 18,304 | [1] |
Fair Value Measurements Recurring | Level 1 | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total financial assets | 12,305 | 18,304 | ||
Fair Value Measurements Recurring | Level 1 | Money market funds | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total financial assets | 12,305 | [1] | 18,304 | [1] |
Fair Value Measurements Recurring | Level 2 | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total financial assets | 0 | 0 | ||
Fair Value Measurements Recurring | Level 2 | Money market funds | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total financial assets | 0 | [1] | 0 | [1] |
Fair Value Measurements Recurring | Level 3 | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total financial assets | 0 | 0 | ||
Fair Value Measurements Recurring | Level 3 | Money market funds | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total financial assets | $0 | [1] | $0 | [1] |
[1] | Held in cash and cash equivalents on the Company’s condensed consolidated balance sheets. |
Fair_Value_Narrative_Detail
Fair Value - Narrative (Detail) (USD $) | 6 Months Ended |
Jun. 30, 2014 | |
Fair Value Disclosures [Abstract] | ' |
Transfers between Levels 1, 2, and 3 | $0 |
Components_of_Property_and_Equ
- Components of Property and Equipment, Net (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Abstract] | ' | ' |
Equipment | $15,472 | $15,134 |
Furniture and fixtures | 1,923 | 2,110 |
Computer software | 10,882 | 12,279 |
Construction in progress | 112 | 749 |
Leasehold improvements | 942 | 1,252 |
Property plant and equipment, gross | 29,331 | 31,524 |
Less: Accumulated depreciation and amortization | -21,902 | -23,082 |
Property and equipment, net | $7,429 | $8,442 |
Property_and_Equipment_Net_Nar
Property and Equipment, Net - Narrative (Detail) (USD $) | 3 Months Ended | 6 Months Ended | 1 Months Ended | 12 Months Ended | |||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Apr. 30, 2014 | Oct. 31, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | |
Computer Equipment | Computer Equipment | Computer Equipment | Computer Equipment | ||||||
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vendor Financed Computer Software and Hardware | ' | ' | $501,000 | $0 | ' | $500,000 | $3,100,000 | $2,600,000 | ' |
Computer software | 10,882,000 | ' | 10,882,000 | ' | 12,279,000 | ' | ' | ' | 3,100,000 |
Construction in progress | 112,000 | ' | 112,000 | ' | 749,000 | ' | ' | ' | ' |
Depreciation expense | 800,000 | 600,000 | 1,600,000 | 1,100,000 | ' | ' | ' | ' | ' |
Discontinued Operation Depreciation | 100,000 | 100,000 | 100,000 | 100,000 | ' | ' | ' | ' | ' |
Property and equipment, wrote-off | ' | ' | 900,000 | 1,300,000 | ' | ' | ' | ' | ' |
Property, Plant and Equipment Sold, Gross | 2,000,000 | ' | 2,000,000 | ' | ' | ' | ' | ' | ' |
Impairment of Long-Lived Assets to be Disposed of | $2,300,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Other_Assets_Components_of_Oth
Other Assets - Components of Other Assets (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Other Assets [Abstract] | ' | ' |
Deferred installation costs and other long-term assets | $0 | $1,677 |
Deposits | 795 | 808 |
Long-term deferred tax assets, net | 96 | 96 |
Restricted cash | 150 | 250 |
Other Assets | $1,041 | $2,831 |
Accrued_Liabilities_Schedule_o
Accrued Liabilities - Schedule of Accrued Liabilities (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | ||
Payables and Accruals [Abstract] | ' | ' | ||
Tax liabilities | $1,500,000 | $2,102,000 | ||
Accrued restructuring liabilities - current | 161,000 | [1] | 200,000 | [1] |
Accrued bonus, commissions and other employee benefits | 3,262,000 | 2,395,000 | ||
Accrued for vendor financed property and equipment (2) | 1,159,000 | [2] | 746,000 | [2] |
Amounts due to customers | 1,189,000 | 1,059,000 | ||
Other accrued liabilities (3) | 3,349,000 | [3] | 2,598,000 | |
Accrued liabilities | 10,620,000 | 9,100,000 | ||
Accrued Transaction Costs for Disposition of Business | $2,200,000 | ' | ||
[1] | See Note 6 "Accrued Restructuring" | |||
[2] | See Note 7 "Vendor Financed Property and Equipment | |||
[3] | Includes approximately $2.2 million of transaction costs associated with the sale of discontinued operations (see Note 11 "Divestiture of Business Segment") |
Accrued_Restructuring_Narrativ
Accrued Restructuring - Narrative (Detail) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 3 Months Ended | ||||||||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2009 | Jun. 30, 2014 | Mar. 31, 2013 | |||
2009 Plans | 2009 Plans | Q1 2013 Plan | ||||||||||||
Employees | Employees | |||||||||||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Restructuring plan, number of positions | ' | ' | ' | ' | ' | ' | ' | ' | 146 | ' | 16 | |||
Remaining restructuring charges | $181 | $448 | $181 | $448 | $250 | $317 | $817 | $483 | ' | $200 | ' | |||
Restructuring charges | 16 | 26 | 30 | 626 | ' | ' | ' | ' | ' | ' | ' | |||
Accrued restructuring liabilities - current | $161 | [1] | ' | $161 | [1] | ' | ' | $200 | [1] | ' | ' | ' | ' | ' |
[1] | See Note 6 "Accrued Restructuring" |
Accrued_Restructuring_Summary_
Accrued Restructuring - Summary of Accrued Restructuring (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Restructuring and Related Activities [Abstract] | ' | ' | ' | ' |
Beginning balance | $250 | $817 | $317 | $483 |
Restructuring charges and related adjustments | 16 | 26 | 30 | 626 |
Payments | -85 | -395 | -166 | -661 |
Ending balance | $181 | $448 | $181 | $448 |
Vendor_Financed_PPE_Narrative_
Vendor Financed PPE - Narrative (Details) (USD $) | 1 Months Ended | 6 Months Ended | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Apr. 30, 2014 | Oct. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Apr. 30, 2014 | Oct. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | |||
Computer Equipment | Computer Equipment | Computer Equipment | Computer Equipment | ||||||||
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Vendor Financed Property and Equipment Repayment Period | '2 years | '3 years | ' | ' | ' | ' | ' | ' | ' | ||
Vendor Financed Computer Software and Hardware | ' | ' | $501,000 | $0 | ' | $500,000 | $3,100,000 | ' | $2,600,000 | ||
Repayments of Vendor Financed Equipment Obligations | ' | ' | ' | ' | ' | ' | ' | 500,000 | ' | ||
Accrued for vendor financed property and equipment (2) | ' | ' | 1,159,000 | [1] | ' | 746,000 | [1] | ' | ' | 1,200,000 | ' |
Vendor financed property and equipment | ' | ' | 1,411,000 | ' | 1,586,000 | ' | ' | 1,400,000 | ' | ||
Accrued Vendor Payable, Due Remainder of Year | ' | ' | ' | ' | ' | ' | ' | 600,000 | ' | ||
Accrued Vendor Payable, Due Year Two | ' | ' | ' | ' | ' | ' | ' | 1,100,000 | ' | ||
Accrued Vendor Payable, Due Year Three | ' | ' | ' | ' | ' | ' | ' | 900,000 | ' | ||
Accrued Vendor Payable, Noncurrent, Fair Value | ' | ' | ' | ' | ' | ' | ' | $1,400,000 | ' | ||
[1] | See Note 7 "Vendor Financed Property and Equipment |
Commitments_and_Contingencies_1
Commitments and Contingencies - Narrative (Detail) (USD $) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2014 | Jun. 30, 2014 | |
Computer Equipment | ||
Commitment And Contingencies [Line Items] | ' | ' |
Lease expiration date | 30-Jun-17 | ' |
Facility lease obligations | $200,000 | ' |
Purchase commitments expiration period | 'expire on various dates through April 2017 | ' |
Purchase Obligation | $7,441,000 | $700,000 |
Annual support fees, period | ' | '3 years |
Commitments_and_Contingencies_2
Commitments and Contingencies - Schedule of Future Minimum Lease Payments (Detail) (USD $) | Jun. 30, 2014 |
In Thousands, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Remaining 2014 | $1,383 |
2015 | 1,160 |
2016 | 328 |
2017 | 159 |
Operating leases, future minimum payments | $3,030 |
Commitments_and_Contingencies_3
Commitments and Contingencies - Schedule of Future Minimum Purchase Commitments (Detail) (USD $) | Jun. 30, 2014 |
In Thousands, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Remaining 2014 | $3,439 |
2015 | 3,481 |
2016 | 477 |
2017 | 44 |
Future minimum purchase commitments | $7,441 |
Net_Loss_Per_Common_Share_Sche
Net Loss Per Common Share - Schedule of Computation of Basic and Diluted Net Loss Per Share (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Net loss from continuing operations | ($715) | ($2,212) | ($6,661) | ($6,083) |
Net income from discontinued operations (Note 11) | 21,592 | 626 | 21,989 | 1,122 |
Net loss | $20,877 | ($1,586) | $15,328 | ($4,961) |
Numerator: | ' | ' | ' | ' |
Earnings Per Share, Basic and Diluted, Continuing Operations (per share) | ($0.01) | ($0.04) | ($0.10) | ($0.10) |
Earnings Per Share, Basic, Discontinued Operations (per share) | $0.33 | $0.01 | $0.34 | $0.02 |
Earnings Per Share, Diluted, Discontinued Operations (per share) | $0.32 | ($0.03) | $0.24 | ($0.08) |
Denominator: | ' | ' | ' | ' |
Basic and diluted (shares) | 64,389,365 | 63,381,344 | 64,405,375 | 62,639,498 |
Net_Loss_Per_Common_Share_Sche1
Net Loss Per Common Share - Schedule of Anti-Dilutive Shares Excluded from Computation of Diluted Net Loss Per Share (Detail) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Total | 7,669,984 | 6,329,032 | 7,326,168 | 5,386,403 |
Options to Purchase Common Stock | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Total | 5,048,438 | 3,582,062 | 4,612,331 | 3,099,021 |
Restricted Stock Awards, Including Participating Securities | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Total | 2,621,546 | 2,746,970 | 2,713,837 | 2,287,382 |
Segment_and_Geographical_Infor2
Segment and Geographical Information - Narrative (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Segment | Country | Customer | ||
Customer | Country | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Number of reportable operating segments | 2 | ' | ' | ' |
Inter-segment sale or transfer | $17,762,000 | $20,288,000 | $35,399,000 | $41,197,000 |
Number of individual country customer | ' | 0 | 0 | ' |
Number of individual customer | ' | 0 | 0 | ' |
Revenue | Geographic Concentration Risk | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Concentration risk, percentage | ' | ' | 10.00% | ' |
Revenue | Customer Concentration Risk [Member] | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Concentration risk, percentage | ' | ' | 10.00% | 10.00% |
Asia Pacific | Revenue | Geographic Concentration Risk | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Concentration risk, percentage | 15.00% | 14.00% | 16.00% | 14.00% |
United States | Revenue | Geographic Concentration Risk | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Concentration risk, percentage | 34.00% | 38.00% | 35.00% | 38.00% |
Intersegment Eliminations | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Inter-segment sale or transfer | ' | $0 | ' | ' |
Segment_and_Geographical_Infor3
Segment and Geographical Information - Revenue and Operating Loss for Each Reportable Segment (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Revenue from External Customer [Line Items] | ' | ' | ' | ' |
Net Revenue | $17,762 | $20,288 | $35,399 | $41,197 |
Total Segment Operating Income (Loss) | ($4,580) | ($2,518) | ($10,601) | ($6,586) |
Segment_and_Geographical_Infor4
Segment and Geographical Information - Reconciliations of Total Segment Operating Loss (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Segment Reporting [Abstract] | ' | ' | ' | ' |
Restructuring charges and related adjustments | ($16) | ($26) | ($30) | ($626) |
Total operating loss | -4,580 | -2,518 | -10,601 | -6,586 |
Interest income (expense), net | -33 | 3 | -66 | 7 |
Foreign exchange losses | -106 | -114 | -177 | -187 |
Loss before income taxes | ($4,719) | ($2,629) | ($10,844) | ($6,766) |
Segment_and_Geographical_Infor5
Segment and Geographical Information - Summary of Revenue by Geographical Region (Detail) (Revenue, Geographic Concentration Risk) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Percentage of revenue by geographical region | ' | ' | 10.00% | ' |
United States | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Percentage of revenue by geographical region | 34.00% | 38.00% | 35.00% | 38.00% |
EMEA | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Percentage of revenue by geographical region | 49.00% | 46.00% | 47.00% | 46.00% |
Asia Pacific | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Percentage of revenue by geographical region | 15.00% | 14.00% | 16.00% | 14.00% |
Rest of the World | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Percentage of revenue by geographical region | 2.00% | 2.00% | 2.00% | 2.00% |
Discontinued_Operations_Detail
Discontinued Operations (Details) (iPass Unity, USD $) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | ||||
iPass Unity | ' | ' | ' | ' | ' | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ||||
Revenue | ' | $7,755 | $8,377 | $15,458 | $17,097 | ||||
Income (loss) from discontinued operations before income taxes | ' | 809 | [1] | 1,002 | [1] | 1,506 | [1] | 1,791 | [1] |
Gain on sale of discontinued operations before income taxes | 25,000 | 25,014 | 0 | 25,014 | 0 | ||||
Provision for income taxes | ' | -4,231 | -376 | -4,531 | -669 | ||||
Income from discontinued operations, net of tax | ' | $21,592 | $626 | $21,989 | $1,122 | ||||
[1] | xcludes certain shared overhead costs and transfer pricing adjustments that were previously allocated to the Unity business segment in the historical iPass consolidated financial statements that were filed with the Securities and Exchange Commission ("SEC"). |
Discontinued_Operations_Narrat
Discontinued Operations - Narrative (Details) (USD $) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' |
Accrued Transaction Costs for Disposition of Business | $2,200,000 | $2,200,000 | ' | $2,200,000 | ' |
Income Tax Expense (Benefit) | ' | -4,004,000 | -417,000 | -4,183,000 | -683,000 |
Discontinued Operation, Tax Effect of Recognition of Operating Loss Carryforward from Disposal of Discontinued Operation | ' | 4,100,000 | 400,000 | 4,400,000 | 700,000 |
iPass Unity | ' | ' | ' | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' |
Consideration for sale of business | 28,200,000 | 28,200,000 | ' | 28,200,000 | ' |
Gain on sale of business | 25,000,000 | 25,014,000 | 0 | 25,014,000 | 0 |
Contingent liability on sale of business | 1,400,000 | 1,400,000 | ' | 1,400,000 | ' |
Discontinued Operation, Tax Effect of Income (Loss) from Disposal of Discontinued Operation | ' | $4,231,000 | $376,000 | $4,531,000 | $669,000 |
Subsequent_Event_Details
Subsequent Event (Details) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Sep. 30, 2014 | Aug. 11, 2014 |
Subsequent Event | Subsequent Event | |||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' |
Expected Number of Positions Eliminated, Percent | ' | ' | ' | ' | ' | 7.00% |
Restructuring charges | $16 | $26 | $30 | $626 | $900 | ' |