Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Feb. 27, 2015 | Jun. 28, 2013 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | IPASS INC | ||
Entity Central Index Key | 1053374 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | FALSE | ||
Entity Common Stock, Shares Outstanding | 65,958,694 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $66,416,138 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $33,814 | $24,017 |
Accounts receivable, net of allowance for doubtful accounts of $172 and $1,010, respectively | 10,063 | 15,297 |
Prepaid expenses and other current assets | 4,318 | 4,329 |
Total current assets | 48,195 | 43,643 |
Property and equipment, net | 6,213 | 8,442 |
Other assets | 847 | 2,831 |
Total assets | 55,255 | 54,916 |
Current liabilities: | ||
Accounts payable | 7,301 | 9,334 |
Accrued liabilities | 7,188 | 9,100 |
Deferred revenue, short-term | 437 | 3,212 |
Total current liabilities | 14,926 | 21,646 |
Deferred revenue, long-term | 115 | 2,191 |
Vendor financed property and equipment | 854 | 1,586 |
Other long-term liabilities | 879 | 251 |
Total liabilities | 16,774 | 25,674 |
Commitments and contingencies (Note 11) | ||
Stockholders' equity: | ||
Common stock, $0.001 par value (250,000,000 shares authorized; 64,753,694 and 64,451,031 shares issued and outstanding, respectively) | 65 | 65 |
Additional paid-in capital | 220,368 | 218,103 |
Accumulated deficit | -181,952 | -188,926 |
Total stockholders’ equity | 38,481 | 29,242 |
Total liabilities and stockholders’ equity | $55,255 | $54,916 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $172 | $1,010 |
Common stock, par value | $0.00 | $0.00 |
Common stock shares authorized | 250,000,000 | 250,000,000 |
Common stock shares issued | 64,753,694 | 64,451,031 |
Common stock shares outstanding | 64,753,694 | 64,451,031 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations and Comprehensive Loss (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Revenues | $69,804 | $77,729 | $92,530 |
Cost of revenues and operating expenses: | |||
Network access costs | 29,608 | 29,253 | 32,766 |
Network operations | 13,159 | 12,701 | 13,525 |
Research and development | 11,921 | 13,317 | 13,733 |
Sales and marketing | 15,759 | 16,396 | 17,872 |
General and administrative | 18,073 | 20,353 | 20,442 |
Restructuring charges and related adjustments | 733 | 653 | 26 |
Amortization of intangible assets | 0 | 0 | 169 |
Total cost of revenues and operating expenses | 89,253 | 92,673 | 98,533 |
Operating loss | -19,449 | -14,944 | -6,003 |
Interest (expense) income, net | -119 | -18 | 19 |
Foreign exchange losses | -67 | -507 | -288 |
Other income (expenses), net | 329 | -18 | 12 |
Loss from continuing operations before income taxes | -19,306 | -15,487 | -6,260 |
Benefit from income taxes | 7,101 | 782 | 269 |
Net loss from continuing operations | -12,205 | -14,705 | -5,991 |
Net income from discontinued operations | 19,179 | 2,393 | 1,613 |
Total net income (loss) | 6,974 | -12,312 | -4,378 |
Total comprehensive net income (loss) | $6,974 | ($12,312) | ($4,378) |
Loss from continuing operations | ($0.19) | ($0.23) | ($0.10) |
Income from discontinued operations | $0.30 | $0.04 | $0.03 |
Total net income (loss) per share | $0.11 | ($0.19) | ($0.07) |
Weighted average shares outstanding - basic and diluted | 62,613,671 | 63,411,162 | 60,711,317 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total | Common Stock | Additional Paid-In Capital | Accumulated Comprehensive Income (Loss) | Accumulated Deficit |
In Thousands, except Share data | |||||
Beginning Balance at Dec. 31, 2011 | $37,447 | $59 | $209,624 | $0 | ($172,236) |
Beginning Balance, Shares at Dec. 31, 2011 | 59,139,000 | ||||
Exercise of stock options-common stock issued, Shares | 1,247,776 | 1,248,000 | |||
Exercise of stock options-common stock issued | 1,369 | 2 | 1,367 | ||
Restricted stock granted, Shares | 1,048,000 | ||||
Employee stock purchase plan-common stock issued, Shares | 186,275 | 186,000 | |||
Employee stock purchase plan-common stock issued | 203 | 203 | |||
Repurchased common stock, Shares | -85,000 | ||||
Repurchased common stock | -158 | -158 | |||
Stock-based compensation | 2,418 | 2,418 | |||
Net income (loss) | -4,378 | 0 | -4,378 | ||
Ending Balance at Dec. 31, 2012 | 36,901 | 61 | 213,454 | 0 | -176,614 |
Ending Balance, shares at Dec. 31, 2012 | 61,536,000 | ||||
Exercise of stock options-common stock issued, Shares | 1,138,718 | 1,139,000 | |||
Exercise of stock options-common stock issued | 4 | 1,270 | |||
Restricted stock granted, Shares | 1,985,000 | ||||
Restricted stock cancelled, Shares | -346,000 | ||||
Employee stock purchase plan-common stock issued, Shares | 137,091 | 137,000 | |||
Employee stock purchase plan-common stock issued | 216 | 216 | |||
Stock-based compensation | 3,163 | 3,163 | |||
Net income (loss) | -12,312 | -12,312 | |||
Ending Balance at Dec. 31, 2013 | 29,242 | 65 | 218,103 | 0 | -188,926 |
Ending Balance, shares at Dec. 31, 2013 | 64,451,031 | 64,451,000 | |||
Exercise of stock options-common stock issued, Shares | 135,499 | 135,000 | |||
Exercise of stock options-common stock issued | 139 | 0 | 139 | ||
Restricted stock granted, Shares | 480,000 | ||||
Restricted stock cancelled, Shares | -390,000 | ||||
Employee stock purchase plan-common stock issued, Shares | 118,501 | 119,000 | |||
Employee stock purchase plan-common stock issued | 158 | 158 | |||
Repurchased common stock, Shares | -41,000 | ||||
Repurchased common stock | -49 | ||||
Stock-based compensation | 2,017 | 2,017 | |||
Net income (loss) | 6,974 | 6,974 | |||
Ending Balance at Dec. 31, 2014 | $38,481 | $65 | $220,368 | $0 | ($181,952) |
Ending Balance, shares at Dec. 31, 2014 | 64,753,694 | 64,754,000 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | |||
Net income (loss) | $6,974 | ($12,312) | ($4,378) |
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities: | |||
Gain on sale of discontinued operations | -25,014 | 0 | 0 |
Stock-based compensation | 2,017 | 3,163 | 2,418 |
Amortization of intangible assets | 0 | 0 | 169 |
Depreciation, amortization and accretion | 3,330 | 2,776 | 2,110 |
Loss on disposal of property and equipment | 54 | 22 | 3 |
Deferred income taxes | -53 | 203 | 117 |
(Recovery of) provision for doubtful accounts | -169 | 134 | -66 |
Changes in operating assets and liabilities: | |||
Accounts receivable | 2,816 | 1,828 | 4,113 |
Prepaid expenses and other current assets | -404 | 625 | 878 |
Other assets | 232 | 785 | 718 |
Accounts payable | -1,637 | 2,063 | -1,138 |
Accrued liabilities | -3,406 | -277 | -821 |
Deferred revenue | -329 | -1,218 | -365 |
Other liabilities | 753 | -224 | -295 |
Net cash (used in) provided by operating activities | -14,836 | -2,432 | 3,463 |
Cash flows from investing activities: | |||
Purchases of property and equipment | -1,318 | -2,318 | -4,465 |
Proceeds from sale of discontinued operations | 26,750 | 0 | 0 |
Change in restricted cash | 100 | 720 | 971 |
Net cash provided by (used in) investing activities | 25,532 | -1,598 | -3,494 |
Cash flows from financing activities: | |||
Net proceeds from issuance of common stock | 248 | 1,490 | 1,414 |
Principal payments for vendor financed property and equipment | -1,147 | -265 | 0 |
Net cash (used in) provided by financing activities | -899 | 1,225 | 1,414 |
Net increase (decrease) in cash and cash equivalents | 9,797 | -2,805 | 1,383 |
Cash and cash equivalents at beginning of year | 24,017 | 26,822 | 25,439 |
Cash and cash equivalents at end of year | 33,814 | 24,017 | 26,822 |
Supplemental disclosures of cash flow information: | |||
Net cash paid for taxes | 259 | 261 | 375 |
Accrued amounts for acquisition of property and equipment | 73 | 98 | 321 |
Vendor financing of property and equipment | $501 | $2,597 | $0 |
Basis_of_Presentation
Basis of Presentation | 12 Months Ended |
Dec. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation |
The Company's consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). The consolidated financial statements include the accounts of iPass Inc. (the “Company”) and its wholly owned subsidiaries. All intercompany transactions and accounts have been eliminated. | |
The Company reports comprehensive income (loss) in a single continuous financial statement within the 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 Consolidated Statements of Comprehensive Income (Loss) have been reclassified for all periods presented to reflect discontinued operations treatment. (Refer to Note 15 for discussion related to Divestiture of Business Segment). |
Significant_Accounting_Policie
Significant Accounting Policies (Notes) | 12 Months Ended | |
Dec. 31, 2014 | ||
Accounting Policies [Abstract] | ||
Significant Accounting Policies | Significant Accounting Policies | |
Use of Estimates | ||
The preparation of the consolidated financial statements and related disclosures in conformity with GAAP and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) requires management to make estimates and judgments that affect the amounts reported in the Consolidated Financial Statements and accompanying notes. Estimates are used for, but not limited to the valuation of accounts receivables, other long-lived assets, stock-based compensation, legal contingencies, network access costs, income taxes, and sales tax liabilities. These estimates and assumptions are based on management’s best estimates and judgment. Actual results could differ from the estimates made by management with respect to these and other items. | ||
Foreign Currency Accounting | ||
The U.S. Dollar is the functional currency for the Company and all of its subsidiaries; therefore, the Company does not have a translation adjustment recorded through accumulated other comprehensive income (loss). While the Company’s revenue contracts are denominated in United States (“U.S.”) dollars, the Company has foreign operations that incur expenses in various foreign currencies. Monetary assets and liabilities are remeasured using the current exchange rate at the balance sheet date. Non-monetary assets and liabilities and capital accounts are remeasured using historical exchange rates. Foreign currency expenses are remeasured using the average exchange rates in effect during the year. Foreign currency exchange gains and losses are presented separately in the Consolidated Statements of Comprehensive Loss. | ||
Cash Equivalents | ||
The Company considers all highly-liquid investments with a remaining maturity of three months or less at the time of purchase to be cash equivalents. Cash equivalents consist primarily of investments in institutional money market funds. | ||
Restricted Cash | ||
The Company’s restricted cash consists of cash deposited with a national financial institution in connection with irrevocable letters of credit issued to a network service provider. The total amount of restricted cash included in other assets (non-current) on the Consolidated Balance Sheets was $0.2 million and $0.3 million at December 31, 2014 and 2013, respectively. In addition $1.4 million of restricted cash was included in other current assets in the Consolidated Balance Sheet as of December 31, 2014, which was placed into an escrow account associated with the sale of its Unity business segment. | ||
Concentrations of Risk | ||
Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash, cash equivalents and accounts receivable. Substantially all of the Company’s cash and cash equivalents are held by two financial institutions. The Company is exposed to risk in the event of default by these financial institutions or the issuers of these securities to the extent the balances are in excess of amounts that are insured by the FDIC. | ||
The Company’s receivables are derived from revenue earned from customers located primarily in the United States and Europe. The Company provides credit to its customers in the normal course of business and requires no collateral to secure accounts receivable. The Company maintains an allowance for potentially uncollectible accounts receivable based on its assessment of the collectability of accounts receivable. The allowance for doubtful accounts is based on customer-specific identification, which encompasses various factors, including; the Company’s review of credit profiles of its customers, age of the accounts receivable balances, contractual terms and conditions, current economic conditions that may affect a customer’s ability to pay and historical payment experience. As of December 31, 2014, accounts receivables from European customers represented 51% of total accounts receivable of which 82% were due within the Company’s standard credit term of 30 days and 97% were aged less than 90 days past due. | ||
As of December 31, 2014, one individual customer accounted for 12% of total accounts receivable. As of December 31, 2013, no individual customer represented 10% or more of total accounts receivable. For the years ended December 31, 2014, 2013, and 2012, no individual customer represented more than 10% of total revenues. | ||
For the year ended December 31, 2014, two suppliers represented 14% and 13% of total network access costs, respectively. For the year ended December 31, 2013, one individual supplier represented 13% of total network access costs. For the year ended December 31, 2012 two suppliers accounted for 16% and 14% of total network access costs, respectively. No other individual supplier represented more than 10% of total network access costs in 2014, 2013 and 2012. | ||
Property and Equipment, Net | ||
Property and equipment, net are stated at cost, less accumulated depreciation or amortization. Depreciation of property and equipment and amortization of leasehold improvements are computed using the straight-line method over the estimated useful lives of the respective assets as follows: | ||
• | Equipment: 3 to 5 years | |
• | Furniture and fixtures: 5 years | |
• | Computer software: 3 to 5 years | |
• | Leasehold improvements: the shorter of the useful life of the leasehold improvements or the term of the underlying lease | |
• | Construction in progress: various depending on the underlying asset being developed | |
Upon retirement or sale, the cost of assets disposed of and the related accumulated depreciation are removed from the accounts and any resulting gain or loss is credited or charged to the statement of comprehensive loss. Expenditures for maintenance and repairs are charged to expense as incurred. | ||
Construction in progress is related to the construction or development of property and equipment that has not yet been placed in service. Depreciation for equipment and computer software begins once it is placed in service and depreciation for leasehold improvements commences once they are ready for intended use. | ||
Income Taxes | ||
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the expected future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, along with net operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized as income in the period that includes the enactment date. The Company records net deferred tax assets to the extent management believe these assets would more likely than not be realized. In making such determination, management considers all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies and recent financial operations. In the event management was to determine that the Company would be able to realize the deferred income tax assets in the future in excess of their net recorded amount, the Company would make an adjustment to the valuation allowance which would reduce the provision for income taxes. | ||
The Company’s policy with respect to its undistributed foreign subsidiaries’ earnings is to consider those earnings to be indefinitely reinvested and, accordingly, no related provision for U.S. federal, state or foreign income taxes has been provided. As of December 31 2014, approximately $8.9 million of foreign earnings have been deemed repatriated under the US tax law. Only the US federal and state income tax consequences have been provided on those earnings, however, they will not be deemed to be repatriated under foreign laws. The major foreign jurisdictions where the Company has operations includes India and the U.K. Upon distribution of earnings from India and the U.K. in the form of dividends or otherwise, the Company may be subject to both U.S. income taxes (subject to an adjustment for foreign tax credits) and withholding taxes in the various foreign countries. At December 31, 2014 and 2013, the cumulative undistributed earnings of the Company’s foreign subsidiaries approximated $12.9 million and $11.5 million, respectively. The amount of cash and cash equivalents held by the Company’s foreign subsidiaries as of December 31, 2014 and 2013 was $0.9 million and $0.9 million, respectively. The Company currently does not intend to distribute any of its remaining unrepatriated earnings by its foreign subsidiaries to the parent company in the U.S. If the income is to be distributed, the net of $4.0 million will be subject to US tax. | ||
The Company accounts for uncertainty in income taxes using a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. The Company classifies the liability for unrecognized tax benefits as current to the extent that the Company anticipates payment (or receipt) of cash within one year. Actual results could differ materially from these estimates and could significantly affect the effective tax rate and cash flows in future years. | ||
The Company recognizes estimated interest and penalties relating to income tax uncertainties as a component of the provision for income taxes. | ||
Stock-Based Compensation | ||
Stock-based compensation expense is estimated at the grant date based on the award’s fair value and is recognized as expense over the award’s requisite service period. Awards that vest based on service criteria are expensed on a straight-line basis. Awards having accelerated vesting based on achieving certain performance criteria are expensed on graded vesting basis over the vesting period, after assessing the probability of achieving the requisite performance criteria. The Company’s stock-based payment awards to employees and directors include stock options, restricted stock units and awards, and employee purchase rights granted in connection with the Employee Stock Purchase Plan. Certain restricted stock awards have performance-based goals based on the achievement of targeted quarterly revenue of Open Mobile, targeted EBITA or targeted number of active Open Mobile monetized users, which require an assessment of the probability and timing of vesting. The Company estimates the fair value of restricted stock based on the day prior to the date of grant. The Company estimates the fair value of stock options and employee purchase rights on the date of grant using the Black-Scholes option-pricing model that requires the use of assumptions such as expected stock price volatility over the term of the awards, actual and projected employee stock option exercise behaviors, risk-free interest rates and expected dividends. The expected stock price volatility is based on historical volatility and the expected term is based on the historical average expected term. Because stock-based compensation expense is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures. The expected forfeiture rate is based upon the historical experience of employee turnover and certain other factors. To the extent the actual forfeiture rate is different from the expected rate, stock-based compensation expense is adjusted accordingly. | ||
Revenue Recognition | ||
Revenue is recognized when all four revenue recognition criteria have been met; persuasive evidence of an arrangement exists, service has been provided to the customer, the fee is fixed or determinable, and collection is reasonably assured. When the above criteria are not met, revenue is deferred and recognized upon cash collection, upon acceptance of a completion certificate from the customer or when the product is shipped, depending on the type of fee or service arrangement. | ||
Network Fees | ||
The Company recognizes network fees during the period the services are rendered to the end-users based on usage or a flat fee. The Company has two types of flat fee arrangements for its network services. The first is a recurring flat fee that is billed at the same dollar amount each month. The second is a recurring fee calculated based on a flat fee per user per month, of which the dollar amount billed would differ month-to-month depending on the number of users using the Company’s services during a given month. The Company frequently requires customers to commit to minimum network fees associated with monthly, quarterly or annual minimum network usage or over the term of the arrangement. For customers that have agreed to a Minimum Monthly Commitment (MMC), the customer’s monthly invoice reflects the greater of the customer’s actual usage for the month or the MMC for that month. If the MMC exceeds actual usage (a “Shortfall”), the Company determines whether the Shortfall is fixed or determinable. If the Company concludes that the Shortfall is fixed or determinable, based upon customer specific billing history, and other revenue recognition criteria have been met, the Company recognizes as revenue the amount of Shortfall which is invoiced. If the Company concludes that the Shortfall is not fixed or determinable, the Company recognizes revenue when the Shortfall amount is collected. The Company also bills certain network fees upfront and recognizes such fees ratably over the term as services are provided. | ||
Platform Services and Other Fees | ||
Platform services are any services that allow a user to connect to a network using the iPass application. Fees for this service are typically based upon a monthly rate, and revenue is recognized during the month the services are provided. Revenue related to iPassConnect (“iPC”) fees, including extended support fees as the iPC product reached end-of-life in 2012, and Open Mobile Platform fees are typically based upon a monthly rate (per user rate or a flat fee) and are recognized during the month the services are provided. Start-up support service fees representing charges to new customers, customization services and standard training may be billed up-front in advance and recognized as revenue over the term of the contract or service delivery. | ||
Deferred Revenue | ||
The Company defers revenue for services that are billed in advance or prepaid as required per customer agreements. Revenue is recognized as the services are being delivered, or ratably over the contract term, depending on the nature of the service. Amounts expected to be recognized as revenue within one year are classified as short-term. | ||
Network Access Costs | ||
Network access costs represent the amounts paid to network access providers monthly for the usage of their networks. The Company has minimum purchase commitments with some network service providers for access that it expects to utilize during the term of the contracts. Costs of minimum purchase contracts are recognized as network access costs at the greater of the minimum commitment or actual usage. | ||
Advertising Expenses | ||
Advertising costs are expensed as incurred. Advertising expenses for the years ended December 31, 2014, 2013, and 2012 were approximately $0.1 million each year. | ||
Internal Use Software Development Costs | ||
The Company follows the guidance set forth in ASC 350-40, Internal Use Software, (“ASC 350-40”), in accounting for the development of its application service and other internal use applications. ASC 350-40 requires companies to capitalize qualifying computer software costs, which are incurred during the application development stage. Costs related to preliminary project activities and post-implementation activities are expensed as incurred. The Company capitalized $0.3 million, $0.3 million, and $2.6 million in 2014, 2013, and 2012 respectively. $2.6 million of capitalized software cost in 2012 related to the development of a replacement enterprise resource planning (ERP) system. | ||
Depreciation expense related to the purchase of the ERP system was approximately $0.7 million, and $0.7 million in 2014 and 2013, respectively. $0.2 million of amortization expense was recorded in 2014, 2013, and 2012 related to internal use software capitalized in 2011. Management evaluates the useful lives of the Company’s assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. There were no impairments to long lived assets during the years ended December 31, 2014, 2013 and 2012. |
Financial_Instruments_and_Fair
Financial Instruments and Fair Value | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||
Financial Instruments and 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 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 values of these financial assets (excluding cash) were determined using the following inputs at December 31, 2014 and December 31, 2013, respectively: | ||||||||||||||||||||||||||||||||
As of December 31, 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) | $ | 29,306 | $ | — | $ | — | $ | 29,306 | $ | 18,304 | $ | — | $ | — | $ | 18,304 | ||||||||||||||||
Total financial assets | $ | 29,306 | $ | — | $ | — | $ | 29,306 | $ | 18,304 | $ | — | $ | — | $ | 18,304 | ||||||||||||||||
-1 | Held in cash and cash equivalents on the Company’s consolidated balance sheets. | |||||||||||||||||||||||||||||||
There were no transfers between Level 1, 2, and 3 between December 31, 2014, and December 31, 2013. As of December 31, 2014, and December 31, 2013, the carrying amount of accounts receivable, accounts payable, and accrued liabilities, approximates fair value due to their short maturities. (Refer to Note 7 and 8 for discussion related to Accrued Restructuring and Vendor Financed Property and Equipment). |
Property_and_Equipment
Property and Equipment | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Property and Equipment | Property and Equipment | |||||||
Property and equipment, net consisted of the following: | ||||||||
Year Ended | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Equipment | $ | 10,242 | $ | 15,134 | ||||
Furniture and fixtures | 1,923 | 2,110 | ||||||
Computer software | 9,356 | 12,279 | ||||||
Construction in progress | 306 | 749 | ||||||
Leasehold improvements | 912 | 1,252 | ||||||
22,739 | 31,524 | |||||||
Less: Accumulated depreciation and amortization | (16,526 | ) | (23,082 | ) | ||||
Property and equipment, net | $ | 6,213 | $ | 8,442 | ||||
Depreciation expense for continuing operations was approximately $3.2 million, $2.4 million, and $2.0 million for the years ended December 31, 2014, 2013, and 2012, respectively. Depreciation expense for discontinued operations was approximately $0.2 million, $0.4 million, and $0.1 million for the same periods. | ||||||||
During the year ended December 31, 2014, the Company retired approximately $8.5 million of gross property and equipment related to continuing operations, and recorded a loss on disposal of approximately $0.1 million. As part of completing the sale of its Unity business segment on June 30, 2014, the Company included approximately $2.0 million of gross property and equipment related to the discontinued operations in the gain on sale calculation. | ||||||||
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 December 31, 2014, the Company held approximately $2.0 million of this enterprise database software and infrastructure hardware in computer software and equipment. |
Other_Assets
Other Assets | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Other Assets [Abstract] | ||||||||
Other Assets | Other Assets | |||||||
Other assets (non-current) consisted of the following: | ||||||||
Year Ended | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Deferred installation costs and other long-term assets | $ | — | $ | 1,677 | ||||
Deposits | 563 | 808 | ||||||
Long-term deferred tax asset, net | 134 | 96 | ||||||
Restricted cash | 150 | 250 | ||||||
$ | 847 | $ | 2,831 | |||||
Accrued_Liabilities
Accrued Liabilities | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Accrued Liabilities, Current [Abstract] | ||||||||
Accrued Liabilities | Accrued Liabilities | |||||||
Accrued liabilities consisted of the following: | ||||||||
Year Ended | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Tax liabilities | $ | 1,300 | $ | 1,044 | ||||
Accrued restructuring liabilities—current(1) | 160 | 200 | ||||||
Accrued bonus, commissions and other employee benefits | 2,043 | 2,395 | ||||||
Accrued for vendor financed property and equipment | 832 | 746 | ||||||
Amounts due to customers | 1,016 | 1,059 | ||||||
Other accrued liabilities | 1,837 | 3,656 | ||||||
$ | 7,188 | $ | 9,100 | |||||
-1 | See Note 7. Accrued Restructuring |
Accrued_Restructuring_Notes
Accrued Restructuring (Notes) | 12 Months Ended | |||||||||||
Dec. 31, 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 December 31, 2014, the Company had remaining lease payments of approximately $0.1 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 December 31, 2014, the Company completed all of the related payments associated with this restructuring plan. | ||||||||||||
During the third quarter of 2014, the Company announced a restructuring plan (the "Q3 2014 Plan") to re-align its cost structure as a result of the divestiture of its Unity business, which resulted in a workforce reduction of approximately 20 employees worldwide and the termination of lease contracts for certain leased facilities. The Company recorded approximately $0.7 million of restructuring charges during the current fiscal year, and had less than $0.1 million of payments remaining as of December 31, 2014. | ||||||||||||
The following is a rollforward of restructuring liability for the Q3 2014, Q1 2013, and 2009 Plans: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In thousands) | ||||||||||||
Beginning balance | $ | 317 | $ | 483 | $ | 736 | ||||||
Restructuring charges and related adjustments | 733 | 653 | 26 | |||||||||
Payments and adjustments | (890 | ) | (819 | ) | (279 | ) | ||||||
Ending balance | $ | 160 | $ | 317 | $ | 483 | ||||||
As of December 31, 2014, less than $0.1 million of the balance represents employee termination costs and remaining $0.1 million mainly relates to exit cost of certain leased facilities. | ||||||||||||
As of December 31, 2014 and 2013, approximately $0.2 million and $0.2 million of the restructuring liability are included in accrued liabilities, respectively. The remaining restructuring liability of approximately $0.1 million is included in long-term liabilities at December 31, 2013. |
Vendor_Financed_Property_and_E
Vendor Financed Property and Equipment (Notes) | 12 Months Ended |
Dec. 31, 2014 | |
Property, Plant and Equipment [Abstract] | |
Vendor Financed Property and Equipment | Vendor Financed Property and Equipment |
In October, 2013, the Company acquired enterprise database software and infrastructure hardware. This purchase was financed through a 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 purchase financed by a vendor was approximately $3.1 million. Since October 2013, the Company made approximately $1.4 million of principal payments, and as of December 31, 2014, approximately $0.8 million and $0.9 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 $0.8 million and $0.9 million in fiscal year 2015 and fiscal year 2016, respectively. | |
As of December 31, 2014, $0.9 million of vendor financed property and equipment is recorded at cost, which approximates a Level 3 fair value liability. The discounted cash flow valuation technique used to determine the Level 3 fair value, included inputs such as the future payment schedule based on the executed purchase agreement and a discount rate. |
Income_Taxes_Notes
Income Taxes (Notes) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Income Taxes | Income Taxes | |||||||||||
The provision for income taxes is based on continuing operations income (loss) for 2014, 2013 and 2012 before taxes as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In thousands) | ||||||||||||
U.S Source | $ | (20,306 | ) | $ | (16,819 | ) | $ | (6,894 | ) | |||
Non-U.S. Source | 1,000 | 1,332 | 634 | |||||||||
Loss before income taxes | $ | (19,306 | ) | $ | (15,487 | ) | $ | (6,260 | ) | |||
The provision for income taxes for continuing operations consisted of the following: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In thousands) | ||||||||||||
Current: | ||||||||||||
U.S. federal | $ | — | $ | — | $ | — | ||||||
State | (3 | ) | 32 | 30 | ||||||||
Foreign | 278 | 334 | 495 | |||||||||
$ | 275 | $ | 366 | $ | 525 | |||||||
Deferred: | ||||||||||||
U.S. federal | $ | (7,107 | ) | $ | (1,351 | ) | $ | (911 | ) | |||
State | (219 | ) | — | — | ||||||||
Foreign | (50 | ) | 203 | 117 | ||||||||
$ | (7,376 | ) | $ | (1,148 | ) | $ | (794 | ) | ||||
Benefit from income taxes | $ | (7,101 | ) | $ | (782 | ) | $ | (269 | ) | |||
Income tax expenses were recorded in discontinued operations for the year ended December 31, 2014, 2013, and 2012 of approximately $7.3 million, $1.4 million, and $0.9 million, respectively. This primarily reflects tax expense on discontinued operations offsetting benefit in continuing operations of $7.1 million, $0.8 million, and $0.3 million for the years ended December 31, 2014, 2013, and 2012 respectively. The offsetting tax benefits in 2014 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 offsetting tax benefits in 2012 and 2013 represent the Company’s ability to utilize net operating losses to offset tax associated with the discontinued operation’s income. | ||||||||||||
Deferred income taxes reflect the net tax effects of temporary differences between carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes as well as net operating loss and tax credit carry forwards. As of December 31, 2014 and 2013, the Company provided a full valuation allowance on its net deferred tax assets in the United States, Israel, Australia and Japan. The components of deferred tax assets consisted of the following: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | |||||||||||
(In thousands) | ||||||||||||
Deferred tax assets: | ||||||||||||
Net operating loss carry forwards | $ | 23,526 | $ | 46,364 | ||||||||
Reserves and accruals | 1,517 | 2,728 | ||||||||||
Research and other tax credits | 5,880 | 6,328 | ||||||||||
Share based compensation | 3,133 | 3,780 | ||||||||||
Property and equipment | 3,224 | 43 | ||||||||||
Total deferred tax assets | $ | 37,280 | $ | 59,243 | ||||||||
Valuation allowance | (35,348 | ) | (58,218 | ) | ||||||||
Net deferred tax assets | $ | 1,932 | $ | 1,025 | ||||||||
Deferred tax liabilities: | ||||||||||||
Property and equipment | (1,606 | ) | (751 | ) | ||||||||
Total net deferred tax assets | $ | 326 | $ | 274 | ||||||||
The provision for income taxes for continuing operations differed from the amounts computed by applying the U.S. federal income tax rate to pretax loss before income taxes as a result of the following: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Federal statutory rate | (35 | )% | (35 | )% | (35 | )% | ||||||
State taxes, net of federal benefit | (1 | ) | (7 | ) | (4 | ) | ||||||
Foreign tax rate differential | (1 | ) | 1 | 6 | ||||||||
Amortization of stock-based compensation | 2 | 1 | 1 | |||||||||
Research and development benefit | (2 | ) | (9 | ) | (2 | ) | ||||||
Deemed repatriated foreign earnings | 2 | 2 | 61 | |||||||||
Other | — | — | 1 | |||||||||
Valuation Allowance | (1 | ) | 42 | (32 | ) | |||||||
Provision for income taxes | (36 | )% | (5 | )% | (4 | )% | ||||||
As of December 31, 2014, the Company had gross cumulative net operating loss carry forwards for federal and state tax reporting purposes of approximately $67.2 million and $48.1 million, respectively, which expire in various periods between 2015 and 2034. In addition, $7.6 million and $3.9 million for federal and state respectively, are related to stock compensation deductions in excess of book deductions, the tax effect of which would be to credit accumulated paid-in capital if realized. Utilization of the net operating loss and tax credit carryforwards are subject to annual limitations due to certain ownership change rules provided by the Internal Revenue Service Code of 1986, as amended and similar state provisions. Also included in the valuation allowance as of December 31, 2014 is approximately $2.2 million related to net operating loss carry forwards in Israel. | ||||||||||||
As of December 31, 2014, the Company also has research and development tax credit carry forwards of approximately $4.4 million and $6.7 million for federal and state income tax purposes, respectively. If not utilized, the federal carry forwards will expire in various amounts through 2034. | ||||||||||||
The following table presents a reconciliation of the beginning and ending amounts of unrecognized tax benefits (in thousands): | ||||||||||||
Balance at January 1, 2013 | $ | 5,773 | ||||||||||
Increases for positions taken in prior years | 282 | |||||||||||
Increases for positions related to the current year | 832 | |||||||||||
Settlements with taxing authorities | (320 | ) | ||||||||||
Balance at December 31, 2013 | $ | 6,567 | ||||||||||
Increases for positions taken in prior years | 5 | |||||||||||
Increases for positions related to the current year | 186 | |||||||||||
Decreases for positions taken in prior years | (18 | ) | ||||||||||
Decreases for statutes lapsing | (66 | ) | ||||||||||
Settlements with taxing authorities | — | |||||||||||
Balance at December 31, 2014 | $ | 6,674 | ||||||||||
The increase in unrecognized tax benefits primarily relates to certain research and development tax credits and the establishment of reserve on transfer pricing. | ||||||||||||
As of December 31, 2014 and 2013 , the company had $0.8 million and $0.8 million, respectively, of unrecognized tax benefits that if recognized will have an impact on the company's effective tax rate. | ||||||||||||
It is reasonably possible that the total amount of unrecognized tax benefits will change in 2015. Decreases in the unrecognized tax benefits will result from the lapsing of statutes of limitations and the possible completion of tax audits in various jurisdictions. Increases will primarily result from tax positions expected to be taken on tax returns for 2015. | ||||||||||||
In accordance with its accounting policy, the Company recognizes interest and penalties related to income tax matters in the provision for income taxes; which were not considered material during 2014, 2013 and 2012. | ||||||||||||
Given the uncertainty as to settlement terms, the timing of payments and the impact of such settlements on other uncertain tax positions, the range of estimated potential changes in underlying uncertain tax positions is between a decrease of $0.8 million and an increase of $0.3 million. | ||||||||||||
The Company’s major taxing jurisdictions are U.S. Federal, California, the U.K. and India. In the normal course of the Company’s business, the Company is subject to income tax audits in various jurisdictions. Years 2007 to 2014 remain open to examination by certain of these major taxing jurisdictions. | ||||||||||||
The Company currently has income tax audits in progress in India and has accrued approximately $0.8 million in connection with these audits. |
Stockholders_Equity_Notes
Stockholders' Equity (Notes) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||||||
Stockholders' Equity | Stockholders’ Equity | ||||||||||||||||||||
Equity Incentive Plans | |||||||||||||||||||||
The Company has two stock plans that permit it to grant stock options, restricted stock awards and restricted stock units to employees (“Employee Plan”) and to directors (“Director Plan”). Stock options granted to employees generally vest 25% on the first anniversary of the grant date with the remainder vesting ratably over the following 36 months; stock options generally expire 10 years after the date of grant. Restricted stock awards give the recipient the right to receive shares upon the lapse of the instruments’ time and/or performance based restrictions. The restricted stock awards with time-based restrictions are considered outstanding at the time of grant, as the holders are entitled to dividends and voting rights. Employees may surrender a portion of their award shares to satisfy minimum statutory tax withholding obligations with respect to the vesting of restricted stock awards. Restricted stock awards with only performance-based restrictions are not considered outstanding until the performance criteria have been met and therefore are not entitled to dividends or voting rights at the time of grant. The performance-based restricted stock awards vest upon the achievement of pre-defined performance goals, including targeted earnings before interest, taxes and amortization (“EBITA”), targeted number of Open Mobile platform active users, and targeted quarterly revenue of Open Mobile. | |||||||||||||||||||||
During 2014 and 2013, the Company had granted a total of 420,000 and 1,935,000 shares of performance-based restricted stock awards, respectively, that vest based on targeted quarterly revenue of Open Mobile which carry a service-condition to vest in full if performance has not been met at December 31, 2017, however, vesting will be accelerated upon the achievement of performance goals; none of which had vested at December 31, 2014 as the performance goals had not been met. | |||||||||||||||||||||
The Company has a total of 753,925 outstanding shares of performance-based restricted stock awards related to targeted EBITA, none of which had vested as of December 31, 2014. No performance-based restricted stock awards were granted during the year ended December 31, 2012. During 2011, the Company had granted a total of 280,000 shares of performance-based restricted stock awards related to targeted number of Open Mobile platform active users which carry a service condition to vest four years from the grant date, however, vesting will be accelerated upon the achievement of performance goals; all of which had vested at December 31, 2014 based on achievement of the targeted number of Open Mobile platform active users. Vesting of all performance-based restricted stock awards is considered probable. | |||||||||||||||||||||
The number of shares authorized for issuance is automatically increased by 5% annually under the Employee Plan. Upon exercise, new shares are issued. As of December 31, 2014, 25,526,755 shares were available for grant under all plans. | |||||||||||||||||||||
The following table summarizes the stock option and restricted stock activity under the Plans for the indicated periods: | |||||||||||||||||||||
Shares | Number of | Weighted | Weighted | Number of | Weighted | ||||||||||||||||
Available for | Options | Average | Average | Restricted | Average | ||||||||||||||||
Future Grant | Outstanding | Exercise | Grant | Stock | Grant | ||||||||||||||||
Price | Date Fair | Awards and | Date Fair | ||||||||||||||||||
per Share | Value per | Units | Value per | ||||||||||||||||||
Share | Outstanding | Share | |||||||||||||||||||
Balance at December 31, 2011 | 18,011,756 | 9,535,000 | $ | 1.82 | 1,051,090 | $ | 1.52 | ||||||||||||||
Authorized | 3,206,969 | ||||||||||||||||||||
Granted(1) | (1,993,000 | ) | 945,500 | $ | 2.31 | $ | 0.81 | 1,047,500 | $ | 2.16 | |||||||||||
Options Exercised | (1,247,776 | ) | $ | 1.1 | |||||||||||||||||
Restricted Stock Vested(1) | (178,116 | ) | $ | 1.77 | |||||||||||||||||
Terminated/cancelled/forfeited | 995,912 | (944,196 | ) | $ | 3.04 | (51,716 | ) | $ | 1.8 | ||||||||||||
Balance at December 31, 2012 | 20,221,637 | 8,288,528 | $ | 1.85 | 1,868,758 | $ | 1.85 | ||||||||||||||
Authorized | 3,326,811 | ||||||||||||||||||||
Granted(2) | (3,070,000 | ) | 1,085,000 | $ | 1.81 | $ | 0.7 | 1,985,000 | $ | 1.86 | |||||||||||
Options Exercised | (1,138,718 | ) | $ | 1.12 | |||||||||||||||||
Restricted Stock Vested(2) | (558,083 | ) | $ | 2.06 | |||||||||||||||||
Terminated/cancelled/forfeited | 974,230 | (628,230 | ) | $ | 2.7 | (346,000 | ) | $ | 1.88 | ||||||||||||
Balance at December 31, 2013 | 21,452,678 | 7,606,580 | $ | 1.89 | 2,949,675 | $ | 1.81 | ||||||||||||||
Authorized | 3,472,551 | ||||||||||||||||||||
Granted(3) | (1,505,000 | ) | 1,025,000 | $ | 1.56 | $ | 0.6 | 480,000 | $ | 1.18 | |||||||||||
Options Exercised | — | (135,499 | ) | $ | 1.03 | ||||||||||||||||
Restricted Stock Vested(3) | — | (336,913 | ) | $ | 2.01 | ||||||||||||||||
Terminated/cancelled/forfeited | 2,106,526 | (1,675,189 | ) | $ | 2.76 | (431,337 | ) | $ | 1.98 | ||||||||||||
Balance at December 31, 2014 | 25,526,755 | 6,820,892 | $ | 1.64 | 2,661,425 | $ | 1.65 | ||||||||||||||
-1 | Restricted stock granted during 2012 represent awards with time-based vesting criteria which have been included as shares outstanding on the consolidated statement of stockholders’ equity. Restricted stock vested during 2012 represent 229,832 restricted stock awards released (net of 51,716 shares withheld for taxes). | ||||||||||||||||||||
-2 | Restricted stock granted during 2013 represent awards with time-based vesting criteria which have been included as shares outstanding on the consolidated statement of stockholders’ equity. Restricted stock vested during 2013 represent 558,083 restricted stock awards released. | ||||||||||||||||||||
-3 | Restricted stock granted during 2014 represent awards with time-based vesting criteria which have been included as shares outstanding on the consolidated statement of stockholders’ equity. Restricted stock vested during 2014 represent 378,250 restricted stock awards released (net of 41,337 shares withheld for taxes). | ||||||||||||||||||||
The aggregate intrinsic value of options exercised was less than $0.1 million, $1.0 million, and $1.1 million for the years ended December 31, 2014, 2013, and 2012, respectively. | |||||||||||||||||||||
The following table summarizes the stock options outstanding and exercisable by range of exercise prices as of December 31, 2014: | |||||||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||||||
Range of Exercise Prices | Number | Weighted- | Weighted- | Number | Weighted-Average | ||||||||||||||||
Outstanding | Average | Average | Exercisable | Exercise Price per | |||||||||||||||||
Remaining | Exercise Price per | Share | |||||||||||||||||||
Contractual Life | Share | ||||||||||||||||||||
(in Years) | |||||||||||||||||||||
$0.71— 1.05 | 1,674,308 | 4.68 | $ | 0.96 | 1,674,308 | $ | 0.96 | ||||||||||||||
1.06 — 1.48 | 1,472,255 | 4.32 | 1.26 | 1,372,255 | 1.26 | ||||||||||||||||
1.49 — 1.62 | 1,442,113 | 7.7 | 1.58 | 716,927 | 1.55 | ||||||||||||||||
1.63 — 2.32 | 1,595,000 | 7.99 | 1.93 | 713,011 | 1.98 | ||||||||||||||||
2.33 —5.74 | 637,216 | 2.36 | 3.73 | 634,049 | 3.73 | ||||||||||||||||
Total | 6,820,892 | 5.8 | 1.64 | 5,110,550 | 1.61 | ||||||||||||||||
Shares | Weighted | Weighted | Aggregate | ||||||||||||||||||
Average | Average | Intrinsic | |||||||||||||||||||
Exercise | Remaining | Value | |||||||||||||||||||
Price per | Contractual | ||||||||||||||||||||
Share | Term | ||||||||||||||||||||
(Years) | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Options outstanding at December 31, 2014 | 6,820,892 | $ | 1.64 | 5.8 | $ | 869 | |||||||||||||||
Options vested and expected to vest at December 31, 2014 | 6,518,107 | $ | 1.64 | 5.65 | $ | 869 | |||||||||||||||
Options exercisable at December 31, 2014 | 5,110,550 | $ | 1.61 | 4.81 | $ | 857 | |||||||||||||||
Stock-Based Compensation | |||||||||||||||||||||
The following table sets forth the total stock-based compensation expense from continuing operations included in the Company’s Consolidated Statements of Comprehensive Loss: | |||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Network operations | $ | 202 | $ | 332 | $ | 200 | |||||||||||||||
Research and development | 266 | 350 | 257 | ||||||||||||||||||
Sales and marketing | 452 | 677 | 441 | ||||||||||||||||||
General and administrative | 1,076 | 1,702 | 1,448 | ||||||||||||||||||
Total | $ | 1,996 | $ | 3,061 | $ | 2,346 | |||||||||||||||
The following table sets forth the total stock-based compensation expense by award-type: | |||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Stock options | $ | 815 | $ | 838 | $ | 1,122 | |||||||||||||||
Restricted stock | 1,105 | 2,157 | 1,128 | ||||||||||||||||||
Employee stock purchase plan | 76 | 66 | 96 | ||||||||||||||||||
Total | $ | 1,996 | $ | 3,061 | $ | 2,346 | |||||||||||||||
Above tables are different from the stock-based compensation expenses disclosed in the consolidated statements of cash flows, which includes stock-based compensation expenses related to discontinued operations. | |||||||||||||||||||||
As of December 31, 2014, there was $0.8 million of total unrecognized stock-based compensation expense related to stock options, net of expected forfeitures that will be recognized over the weighted average period of 2.5 years. As of December 31, 2014, there was $1.3 million of total unrecognized compensation cost related to the unvested restricted stock awards granted, net of expected forfeitures which is expected to be recognized over the remaining weighted average vesting period of 2.4 years. | |||||||||||||||||||||
Valuation Assumptions | |||||||||||||||||||||
The weighted average estimated fair value of stock options granted during the years ended December 31, 2014, 2013, and 2012 were calculated under the Black-Scholes option-pricing model, using the following weighted-average assumptions: | |||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Risk-free rate | 1.07 | % | 0.89 | % | 0.35 | % | |||||||||||||||
Expected dividend yield | — | % | — | % | — | % | |||||||||||||||
Expected volatility | 53 | % | 50 | % | 52 | % | |||||||||||||||
Expected term | 3.5 years | 3.8 years | 3.1 years | ||||||||||||||||||
Expected volatility is based on the historical volatility of the Company’s common stock. The expected term of stock options granted is based on the historical average expected term. The risk-free rate for periods within the expected term of the stock option is based on the U.S. Treasury yield curve in effect at the time of grant. During the year ended December 31, 2014, 2013 and 2012, the Company did not pay any cash dividends on its common stock and does not expect to pay cash dividends in the future. | |||||||||||||||||||||
The total grant date fair value of the restricted awards stock granted during the years ended December 31, 2014, 2013, and 2012 was approximately $0.6 million, $3.7 million, and $2.3 million, respectively, which will be recognized over the requisite service periods. | |||||||||||||||||||||
Employee Stock Purchase Plan | |||||||||||||||||||||
Under the Company’s Employee Stock Purchase Plan (“ESPP”), the Company can grant stock purchase rights to all eligible employees during a one-year offering period with purchase dates at the end of each six-month purchase period (each April and October). As of December 31, 2014, the Company reserved 7.5 million shares of common stock for issuance under the ESPP plan and approximately 4.7 million shares remain available for future issuance. The ESPP plan permits employees to purchase common stock through payroll deductions of up to 15% on an employee’s compensation, including commissions, overtime, bonuses and other incentive compensation. The purchase price per share is equal to the lower of 85% of the fair market value per share at the beginning of the offering period, or 85% of the fair market value per share on the semi-annual purchase date. No participant may purchase more than 2,500 shares per offering or $25,000 worth of common stock in any one calendar year. During the years ended December 31, 2014, 2013 and 2012, 118,501, 137,091, and 186,275 shares were purchased at average per share prices of $1.27, $1.60, and $1.09, respectively. | |||||||||||||||||||||
Compensation cost related to the Company’s employee stock purchase plan is calculated using the fair value of the employees’ purchase rights granted. The estimated fair value of employee purchase rights granted during the years ended December 31, 2014, 2013, and 2012 was calculated using the Black-Scholes option-pricing model with the following weighted-average assumptions: | |||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Risk-free rate | 0.1 | % | 0.09 | % | 0.09 | % | |||||||||||||||
Expected dividend yield | — | % | — | % | — | % | |||||||||||||||
Expected volatility | 63 | % | 51 | % | 55 | % | |||||||||||||||
Expected term | 0.5 to 1 year | 0.5 to 1 year | 0.5 to 1 year | ||||||||||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Commitments and Contingencies | Note 11. Commitments and Contingencies | |||
Leases and Purchase Commitments | ||||
The Company leases facilities under operating leases that expire at various dates through October 2020. Certain leases are cancellable prior to lease expiration dates. The terms of certain operating leases provide for rental payments on a graduated scale. The Company recognizes rent expense on a straight-line basis over the respective lease periods and has accrued for rent expense incurred but not paid. Future minimum lease payments under these operating leases, including approximately $0.1 million of future payments on leases accounted for under the Company’s restructuring plans, as of December 31, 2014, are as follows: | ||||
Operating | ||||
Leases | ||||
(In thousands) | ||||
Year ending December 31: | ||||
2015 | $ | 1,806 | ||
2016 | 1,310 | |||
2017 | 1,171 | |||
2018 | 1,050 | |||
2019 and thereafter | $ | 2,099 | ||
$ | 7,436 | |||
Rent expense for operating leases, excluding leases accounted for under the Company’s restructuring plan for the years ended December 31, 2014, 2013, and 2012 was $2.3 million, $2.3 million, and $2.4 million, respectively. | ||||
The Company has contracts with certain network service providers which have minimum purchase commitments that expire on various dates through 2017. Future minimum purchase commitments under all agreements are as follows: | ||||
Year ending December 31: | Minimum | |||
Purchase | ||||
Commitments | ||||
(In thousands) | ||||
2015 | $ | 5,946 | ||
2016 | 659 | |||
2017 | $ | 44 | ||
$ | 6,649 | |||
Included above, the Company has a future minimum purchase commitment of approximately $0.4 million related to an annual support fee for acquired enterprise infrastructure hardware to be paid in the next two years. In addition, the Company expects to pay principal payments related to vendor financed property and equipment of $0.8 million, and $0.9 million in fiscal year 2015 and fiscal year 2016, respectively. | ||||
Sales Tax Liabilities | ||||
The Company’s sales and use tax filings are subject to customary audits by authorities in the jurisdictions where it conducts business in the United States, which may result in assessments of additional taxes. During fiscal year 2009, the Company determined that additional sales taxes were probable of being assessed for multiple states as a result of the preliminary findings specific to a sales and use tax audit that had been initiated in the same year. As a result, in the third quarter of 2009, the Company estimated an incremental sales tax liability of approximately $5.0 million, including interest and penalties of approximately $1.5 million. During subsequent years, this liability was reduced through sales tax payments, settlements with certain state tax authorities and revised estimates of the sales tax liability to $0.9 million in 2014, $0.8 million in 2013 and $0.8 million in 2012, which is included in other long-term liabilities. | ||||
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 the Company’s 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. |
Employee_401_Plan_Notes
Employee 401 Plan (Notes) | 12 Months Ended |
Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee 401(k) Plan | Employee 401(k) Plan |
The Company sponsors a 401(k) plan covering all employees. Matching contributions to the plan are at the discretion of the Company. During the years ended December 31, 2014, 2013 and 2012, there have been no employer contributions under this plan. |
Net_Loss_Per_Common_Share
Net Loss Per Common Share | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
Net Loss Per Common Share | Note 13. Net Loss Per Common 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 per share and excluded in the calculation of basic net 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 income (loss) per share: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In thousands, except per share amounts) | ||||||||||||
Numerator: | ||||||||||||
Net loss from continuing operations | $ | (12,205 | ) | $ | (14,705 | ) | $ | (5,991 | ) | |||
Net income from discontinued operations | 19,179 | 2,393 | 1,613 | |||||||||
Net income (loss) | 6,974 | (12,312 | ) | (4,378 | ) | |||||||
Denominator: | ||||||||||||
Weighted average shares outstanding - basic and diluted | 62,613,671 | 63,411,162 | 60,711,317 | |||||||||
Total income (loss) per share - basic and diluted: | ||||||||||||
Loss from continuing operations | $ | (0.19 | ) | $ | (0.23 | ) | $ | (0.10 | ) | |||
Income from discontinued operations | $ | 0.3 | $ | 0.04 | $ | 0.03 | ||||||
Total net income (loss) per share | $ | 0.11 | $ | (0.19 | ) | $ | (0.07 | ) | ||||
The following weighted average potential shares of common stock have been excluded from the computation of diluted net income (loss) per share because the effect of including these shares would have been anti-dilutive: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Options to purchase common stock | 4,703,978 | 3,329,281 | 2,473,024 | |||||||||
Restricted stock awards, including participating securities | 2,195,750 | 2,615,705 | 1,819,261 | |||||||||
Total | 6,899,728 | 5,944,986 | 4,292,285 | |||||||||
The weighted-average exercise price of options to purchase common stock excluded from the computation was $2.20, $2.84, and $3.59, for the years ended December 31, 2014, 2013, and 2012, respectively. |
Segment_and_Geographical_Infor
Segment and Geographical Information | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Segment Reporting [Abstract] | |||||||||
Segment and Geographical Information | Note 14. Segment and Geographic Information | ||||||||
Prior to 2014, 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. | |||||||||
The following table summarizes total Company revenue from continuing operations by country or by geographical region: | |||||||||
For the Year Ended December 31, | |||||||||
2014 | 2013 | 2012 | |||||||
United States | 35 | % | 37 | % | 41 | % | |||
EMEA | 48 | % | 49 | % | 44 | % | |||
Asia Pacific | 15 | % | 13 | % | 14 | % | |||
Rest of the world | 2 | % | 1 | % | 1 | % | |||
No individual country, except for the United States, Germany, and the United Kingdom, accounted for 10% or more of total revenues for the years ended December 31, 2014, 2013, and 2012. Revenues in Germany accounted for 15%, 11%, and 9% of total revenues in 2014, 2013, and 2012, respectively. Revenues in the United Kingdom accounted for 11%, 13%, and 12% of total revenues in 2014, 2013, and 2012, respectively. One customer accounted for 10% of total revenues for the years ended December 31, 2014. No individual customer accounted for 10% or more of total revenues for the years ended December 31, 2013, and 2012. International revenues are determined by the location of the customer’s headquarters. |
Divestiture_of_Business_Segmen
Divestiture of Business Segment (Notes) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ||||||||||||
Divestiture of Business Segment | 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 $28.1 million, and accrued approximately $2.2 million of transaction costs which were fully paid as of December 31, 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 Consolidated Balance Sheets. As of December 31, 2014, no claims have been made against the escrow account. In accordance with ASC 205-20, the results of operations for the Unity business segment are reported as discontinued operations. The Company did not have any assets held for sale as of December 31, 2013 or prior to the sale in the second quarter of 2014. | ||||||||||||
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 were recorded as contra-expense since the Company was reimbursed for the service cost incurred. Activity associated with transitional service is not considered significant relative to the consolidated financial statements of the Company and substantially concluded as of December 31, 2014. | ||||||||||||
Income tax expense was recorded in discontinued operations for the year ended December 31, 2014, 2013, and 2012 of approximately $7.3 million, $1.4 million, and $0.9 million, respectively. This primarily reflects tax expense on income or gains from discontinued operations with an offsetting benefit in continuing operations of $7.1 million, $0.8 million, and $0.3 million for the year ended December 31, 2014, 2013, and 2012 respectively. The offsetting tax benefits in 2014 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. | ||||||||||||
Six Months | Year Ended | |||||||||||
ended June 30, | December 31, | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Revenue | 15,458 | 33,386 | 33,548 | |||||||||
Income from discontinued operations before income taxes | 1,506 | 3,744 | 2,524 | |||||||||
Gain on sale of discontinued operations before income taxes | 25,014 | — | — | |||||||||
Provision for income taxes | (7,341 | ) | (1,351 | ) | (911 | ) | ||||||
Income from discontinued operations, net of tax | $ | 19,179 | $ | 2,393 | $ | 1,613 | ||||||
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") as ASC 205-20 prohibits the allocation of general overhead costs to the discontinued operation. 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
Subsequent Event | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event |
On February 16, 2015, it was determined that Evan Kaplan, Chief Executive Officer and President of iPass Inc., would cease to be an officer and employee of iPass effective at a date in early March 2015, immediately following the filing of the iPass Annual Report on Form 10-K for the fiscal year ended December 31, 2014. | |
On February 16, 2015, the Board of Directors of iPass appointed Gary Griffiths as Chief Executive Officer and President of iPass Inc., effective at such time as Mr. Kaplan ceases to operate in that role. | |
On February 22, 2015, the Board of Directors appointed Michael Chang as a director of iPass, to serve in such capacity until the next annual meeting or until his earlier death, resignation or removal. In connection with his appointment, Mr. Chang was appointed to the Audit Committee and the Compensation Committee of the Board of Directors, replacing Gary Griffiths on those committees. | |
On February 18, 2015, the Company announced it had concluded the strategic alternatives review process that was initiated in September of 2014. |
Schedule_II_Valuation_and_Qual
Schedule II - Valuation and Qualifying Accounts Receivable | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | ||||||||||||||||
VALUATION AND QUALIFYING ACCOUNTS RECEIVABLE | SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS RECEIVABLE | |||||||||||||||
Classification | Balance at | Additions | Deductions | Balance at | ||||||||||||
Beginning | Charged | End of | ||||||||||||||
of Year | to | Year | ||||||||||||||
(recovered | ||||||||||||||||
from) | ||||||||||||||||
Costs | ||||||||||||||||
and | ||||||||||||||||
Expenses | ||||||||||||||||
(In thousands) | ||||||||||||||||
Allowance for doubtful accounts: | ||||||||||||||||
Year ended December 31 | ||||||||||||||||
2014 | $ | 1,010 | $ | (169 | ) | $ | 669 | $ | 172 | |||||||
2013 | 1,173 | 134 | 297 | 1,010 | ||||||||||||
2012 | 1,605 | (66 | ) | 366 | 1,173 | |||||||||||
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 12 Months Ended | |
Dec. 31, 2014 | ||
Accounting Policies [Abstract] | ||
Use of Estimates | Use of Estimates | |
The preparation of the consolidated financial statements and related disclosures in conformity with GAAP and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) requires management to make estimates and judgments that affect the amounts reported in the Consolidated Financial Statements and accompanying notes. Estimates are used for, but not limited to the valuation of accounts receivables, other long-lived assets, stock-based compensation, legal contingencies, network access costs, income taxes, and sales tax liabilities. These estimates and assumptions are based on management’s best estimates and judgment. Actual results could differ from the estimates made by management with respect to these and other items. | ||
Foreign Currency Accounting | Foreign Currency Accounting | |
The U.S. Dollar is the functional currency for the Company and all of its subsidiaries; therefore, the Company does not have a translation adjustment recorded through accumulated other comprehensive income (loss). While the Company’s revenue contracts are denominated in United States (“U.S.”) dollars, the Company has foreign operations that incur expenses in various foreign currencies. Monetary assets and liabilities are remeasured using the current exchange rate at the balance sheet date. Non-monetary assets and liabilities and capital accounts are remeasured using historical exchange rates. Foreign currency expenses are remeasured using the average exchange rates in effect during the year. Foreign currency exchange gains and losses are presented separately in the Consolidated Statements of Comprehensive Loss. | ||
Cash Equivalents | Cash Equivalents | |
The Company considers all highly-liquid investments with a remaining maturity of three months or less at the time of purchase to be cash equivalents. Cash equivalents consist primarily of investments in institutional money market funds. | ||
Restricted Cash | Restricted Cash | |
The Company’s restricted cash consists of cash deposited with a national financial institution in connection with irrevocable letters of credit issued to a network service provider. The total amount of restricted cash included in other assets (non-current) on the Consolidated Balance Sheets was $0.2 million and $0.3 million at December 31, 2014 and 2013, respectively. | ||
Concentrations of Risk | Concentrations of Risk | |
Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash, cash equivalents and accounts receivable. Substantially all of the Company’s cash and cash equivalents are held by two financial institutions. The Company is exposed to risk in the event of default by these financial institutions or the issuers of these securities to the extent the balances are in excess of amounts that are insured by the FDIC. | ||
The Company’s receivables are derived from revenue earned from customers located primarily in the United States and Europe. The Company provides credit to its customers in the normal course of business and requires no collateral to secure accounts receivable. The Company maintains an allowance for potentially uncollectible accounts receivable based on its assessment of the collectability of accounts receivable. The allowance for doubtful accounts is based on customer-specific identification, which encompasses various factors, including; the Company’s review of credit profiles of its customers, age of the accounts receivable balances, contractual terms and conditions, current economic conditions that may affect a customer’s ability to pay and historical payment experience. As of December 31, 2014, accounts receivables from European customers represented 51% of total accounts receivable of which 82% were due within the Company’s standard credit term of 30 days and 97% were aged less than 90 days past due. | ||
As of December 31, 2014, one individual customer accounted for 12% of total accounts receivable. As of December 31, 2013, no individual customer represented 10% or more of total accounts receivable. For the years ended December 31, 2014, 2013, and 2012, no individual customer represented more than 10% of total revenues. | ||
For the year ended December 31, 2014, two suppliers represented 14% and 13% of total network access costs, respectively. For the year ended December 31, 2013, one individual supplier represented 13% of total network access costs. For the year ended December 31, 2012 two suppliers accounted for 16% and 14% of total network access costs, respectively. No other individual supplier represented more than 10% of total network access costs in 2014, 2013 and 2012. | ||
Property and Equipment, Net | Property and Equipment, Net | |
Property and equipment, net are stated at cost, less accumulated depreciation or amortization. Depreciation of property and equipment and amortization of leasehold improvements are computed using the straight-line method over the estimated useful lives of the respective assets as follows: | ||
• | Equipment: 3 to 5 years | |
• | Furniture and fixtures: 5 years | |
• | Computer software: 3 to 5 years | |
• | Leasehold improvements: the shorter of the useful life of the leasehold improvements or the term of the underlying lease | |
• | Construction in progress: various depending on the underlying asset being developed | |
Upon retirement or sale, the cost of assets disposed of and the related accumulated depreciation are removed from the accounts and any resulting gain or loss is credited or charged to the statement of comprehensive loss. Expenditures for maintenance and repairs are charged to expense as incurred. | ||
Construction in progress is related to the construction or development of property and equipment that has not yet been placed in service. Depreciation for equipment and computer software begins once it is placed in service and depreciation for leasehold improvements commences once they are ready for intended use. | ||
Income Taxes | Income Taxes | |
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the expected future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, along with net operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized as income in the period that includes the enactment date. The Company records net deferred tax assets to the extent management believe these assets would more likely than not be realized. In making such determination, management considers all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies and recent financial operations. In the event management was to determine that the Company would be able to realize the deferred income tax assets in the future in excess of their net recorded amount, the Company would make an adjustment to the valuation allowance which would reduce the provision for income taxes. | ||
The Company’s policy with respect to its undistributed foreign subsidiaries’ earnings is to consider those earnings to be indefinitely reinvested and, accordingly, no related provision for U.S. federal, state or foreign income taxes has been provided. As of December 31 2014, approximately $8.9 million of foreign earnings have been deemed repatriated under the US tax law. Only the US federal and state income tax consequences have been provided on those earnings, however, they will not be deemed to be repatriated under foreign laws. The major foreign jurisdictions where the Company has operations includes India and the U.K. Upon distribution of earnings from India and the U.K. in the form of dividends or otherwise, the Company may be subject to both U.S. income taxes (subject to an adjustment for foreign tax credits) and withholding taxes in the various foreign countries. At December 31, 2014 and 2013, the cumulative undistributed earnings of the Company’s foreign subsidiaries approximated $12.9 million and $11.5 million, respectively. The amount of cash and cash equivalents held by the Company’s foreign subsidiaries as of December 31, 2014 and 2013 was $0.9 million and $0.9 million, respectively. The Company currently does not intend to distribute any of its remaining unrepatriated earnings by its foreign subsidiaries to the parent company in the U.S. If the income is to be distributed, the net of $4.0 million will be subject to US tax. | ||
The Company accounts for uncertainty in income taxes using a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. The Company classifies the liability for unrecognized tax benefits as current to the extent that the Company anticipates payment (or receipt) of cash within one year. Actual results could differ materially from these estimates and could significantly affect the effective tax rate and cash flows in future years. | ||
Stock-Based Compensation | Stock-Based Compensation | |
Stock-based compensation expense is estimated at the grant date based on the award’s fair value and is recognized as expense over the award’s requisite service period. Awards that vest based on service criteria are expensed on a straight-line basis. Awards having accelerated vesting based on achieving certain performance criteria are expensed on graded vesting basis over the vesting period, after assessing the probability of achieving the requisite performance criteria. The Company’s stock-based payment awards to employees and directors include stock options, restricted stock units and awards, and employee purchase rights granted in connection with the Employee Stock Purchase Plan. Certain restricted stock awards have performance-based goals based on the achievement of targeted quarterly revenue of Open Mobile, targeted EBITA or targeted number of active Open Mobile monetized users, which require an assessment of the probability and timing of vesting. The Company estimates the fair value of restricted stock based on the day prior to the date of grant. The Company estimates the fair value of stock options and employee purchase rights on the date of grant using the Black-Scholes option-pricing model that requires the use of assumptions such as expected stock price volatility over the term of the awards, actual and projected employee stock option exercise behaviors, risk-free interest rates and expected dividends. The expected stock price volatility is based on historical volatility and the expected term is based on the historical average expected term. Because stock-based compensation expense is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures. The expected forfeiture rate is based upon the historical experience of employee turnover and certain other factors. To the extent the actual forfeiture rate is different from the expected rate, stock-based compensation expense is adjusted accordingly. | ||
Revenue Recognition | Revenue Recognition | |
Revenue is recognized when all four revenue recognition criteria have been met; persuasive evidence of an arrangement exists, service has been provided to the customer, the fee is fixed or determinable, and collection is reasonably assured. When the above criteria are not met, revenue is deferred and recognized upon cash collection, upon acceptance of a completion certificate from the customer or when the product is shipped, depending on the type of fee or service arrangement. | ||
Network Fees | ||
The Company recognizes network fees during the period the services are rendered to the end-users based on usage or a flat fee. The Company has two types of flat fee arrangements for its network services. The first is a recurring flat fee that is billed at the same dollar amount each month. The second is a recurring fee calculated based on a flat fee per user per month, of which the dollar amount billed would differ month-to-month depending on the number of users using the Company’s services during a given month. The Company frequently requires customers to commit to minimum network fees associated with monthly, quarterly or annual minimum network usage or over the term of the arrangement. For customers that have agreed to a Minimum Monthly Commitment (MMC), the customer’s monthly invoice reflects the greater of the customer’s actual usage for the month or the MMC for that month. If the MMC exceeds actual usage (a “Shortfall”), the Company determines whether the Shortfall is fixed or determinable. If the Company concludes that the Shortfall is fixed or determinable, based upon customer specific billing history, and other revenue recognition criteria have been met, the Company recognizes as revenue the amount of Shortfall which is invoiced. If the Company concludes that the Shortfall is not fixed or determinable, the Company recognizes revenue when the Shortfall amount is collected. The Company also bills certain network fees upfront and recognizes such fees ratably over the term as services are provided. | ||
Platform Services and Other Fees | ||
Platform services are any services that allow a user to connect to a network using the iPass application. Fees for this service are typically based upon a monthly rate, and revenue is recognized during the month the services are provided. Revenue related to iPassConnect (“iPC”) fees, including extended support fees as the iPC product reached end-of-life in 2012, and Open Mobile Platform fees are typically based upon a monthly rate (per user rate or a flat fee) and are recognized during the month the services are provided. Start-up support service fees representing charges to new customers, customization services and standard training may be billed up-front in advance and recognized as revenue over the term of the contract or service delivery. | ||
Deferred Revenue | ||
The Company defers revenue for services that are billed in advance or prepaid as required per customer agreements. Revenue is recognized as the services are being delivered, or ratably over the contract term, depending on the nature of the service. Amounts expected to be recognized as revenue within one year are classified as short-term. | ||
Network Access Costs | Network Access Costs | |
Network access costs represent the amounts paid to network access providers monthly for the usage of their networks. The Company has minimum purchase commitments with some network service providers for access that it expects to utilize during the term of the contracts. Costs of minimum purchase contracts are recognized as network access costs at the greater of the minimum commitment or actual usage. | ||
Advertising Expenses | Advertising Expenses | |
Advertising costs are expensed as incurred. Advertising expenses for the years ended December 31, 2014, 2013, and 2012 were approximately $0.1 million each year. | ||
Software Development Costs | Software Development Costs | |
The Company follows the guidance set forth in ASC 350-40, Internal Use Software, (“ASC 350-40”), in accounting for the development of its application service and other internal use applications. ASC 350-40 requires companies to capitalize qualifying computer software costs, which are incurred during the application development stage. Costs related to preliminary project activities and post-implementation activities are expensed as incurred. The Company capitalized $0.3 million, $0.3 million, and $2.6 million in 2014, 2013, and 2012 respectively. $2.6 million of capitalized software cost in 2012 related to the development of a replacement enterprise resource planning (ERP) system. | ||
Depreciation expense related to the purchase of the ERP system was approximately $0.7 million, and $0.7 million in 2014 and 2013, respectively. $0.2 million of amortization expense was recorded in 2014, 2013, and 2012 related to internal use software capitalized in 2011. Management evaluates the useful lives of the Company’s assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. There were no impairments to long lived assets during the years ended December 31, 2014, 2013 and 2012. |
Financial_Instruments_and_Fair1
Financial Instruments and Fair Value (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||
Fair values of assets (excluding cash) and financial liabilities | The recurring fair values of these financial assets (excluding cash) were determined using the following inputs at December 31, 2014 and December 31, 2013, respectively: | |||||||||||||||||||||||||||||||
As of December 31, 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) | $ | 29,306 | $ | — | $ | — | $ | 29,306 | $ | 18,304 | $ | — | $ | — | $ | 18,304 | ||||||||||||||||
Total financial assets | $ | 29,306 | $ | — | $ | — | $ | 29,306 | $ | 18,304 | $ | — | $ | — | $ | 18,304 | ||||||||||||||||
-1 | Held in cash and cash equivalents on the Company’s consolidated balance sheets. |
Property_and_Equipment_Tables
Property and Equipment (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Components of property and equipment, net | Property and equipment, net consisted of the following: | |||||||
Year Ended | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Equipment | $ | 10,242 | $ | 15,134 | ||||
Furniture and fixtures | 1,923 | 2,110 | ||||||
Computer software | 9,356 | 12,279 | ||||||
Construction in progress | 306 | 749 | ||||||
Leasehold improvements | 912 | 1,252 | ||||||
22,739 | 31,524 | |||||||
Less: Accumulated depreciation and amortization | (16,526 | ) | (23,082 | ) | ||||
Property and equipment, net | $ | 6,213 | $ | 8,442 | ||||
Other_Assets_Tables
Other Assets (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Other Assets [Abstract] | ||||||||
Components of other assets | Other assets (non-current) consisted of the following: | |||||||
Year Ended | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Deferred installation costs and other long-term assets | $ | — | $ | 1,677 | ||||
Deposits | 563 | 808 | ||||||
Long-term deferred tax asset, net | 134 | 96 | ||||||
Restricted cash | 150 | 250 | ||||||
$ | 847 | $ | 2,831 | |||||
Accrued_Liabilities_Tables
Accrued Liabilities (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Accrued Liabilities, Current [Abstract] | ||||||||
Schedule of accrued liabilities | Accrued liabilities consisted of the following: | |||||||
Year Ended | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Tax liabilities | $ | 1,300 | $ | 1,044 | ||||
Accrued restructuring liabilities—current(1) | 160 | 200 | ||||||
Accrued bonus, commissions and other employee benefits | 2,043 | 2,395 | ||||||
Accrued for vendor financed property and equipment | 832 | 746 | ||||||
Amounts due to customers | 1,016 | 1,059 | ||||||
Other accrued liabilities | 1,837 | 3,656 | ||||||
$ | 7,188 | $ | 9,100 | |||||
-1 | See Note 7. Accrued Restructuring |
Accrued_Restructuring_Tables
Accrued Restructuring (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||
Schedule of accrued restructuring | The following is a rollforward of restructuring liability for the Q3 2014, Q1 2013, and 2009 Plans: | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In thousands) | ||||||||||||
Beginning balance | $ | 317 | $ | 483 | $ | 736 | ||||||
Restructuring charges and related adjustments | 733 | 653 | 26 | |||||||||
Payments and adjustments | (890 | ) | (819 | ) | (279 | ) | ||||||
Ending balance | $ | 160 | $ | 317 | $ | 483 | ||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In thousands) | ||||||||||||
U.S Source | $ | (20,306 | ) | $ | (16,819 | ) | $ | (6,894 | ) | |||
Non-U.S. Source | 1,000 | 1,332 | 634 | |||||||||
Loss before income taxes | $ | (19,306 | ) | $ | (15,487 | ) | $ | (6,260 | ) | |||
Provision for (benefit from) income taxes | The provision for income taxes for continuing operations consisted of the following: | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In thousands) | ||||||||||||
Current: | ||||||||||||
U.S. federal | $ | — | $ | — | $ | — | ||||||
State | (3 | ) | 32 | 30 | ||||||||
Foreign | 278 | 334 | 495 | |||||||||
$ | 275 | $ | 366 | $ | 525 | |||||||
Deferred: | ||||||||||||
U.S. federal | $ | (7,107 | ) | $ | (1,351 | ) | $ | (911 | ) | |||
State | (219 | ) | — | — | ||||||||
Foreign | (50 | ) | 203 | 117 | ||||||||
$ | (7,376 | ) | $ | (1,148 | ) | $ | (794 | ) | ||||
Benefit from income taxes | $ | (7,101 | ) | $ | (782 | ) | $ | (269 | ) | |||
Components of deferred tax assets (liabilities) | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | |||||||||||
(In thousands) | ||||||||||||
Deferred tax assets: | ||||||||||||
Net operating loss carry forwards | $ | 23,526 | $ | 46,364 | ||||||||
Reserves and accruals | 1,517 | 2,728 | ||||||||||
Research and other tax credits | 5,880 | 6,328 | ||||||||||
Share based compensation | 3,133 | 3,780 | ||||||||||
Property and equipment | 3,224 | 43 | ||||||||||
Total deferred tax assets | $ | 37,280 | $ | 59,243 | ||||||||
Valuation allowance | (35,348 | ) | (58,218 | ) | ||||||||
Net deferred tax assets | $ | 1,932 | $ | 1,025 | ||||||||
Deferred tax liabilities: | ||||||||||||
Property and equipment | (1,606 | ) | (751 | ) | ||||||||
Total net deferred tax assets | $ | 326 | $ | 274 | ||||||||
Provision for (benefit from) income taxes differed from the amounts computed by applying the U.S. federal income tax rate to pretax loss before income taxes | The provision for income taxes for continuing operations differed from the amounts computed by applying the U.S. federal income tax rate to pretax loss before income taxes as a result of the following: | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Federal statutory rate | (35 | )% | (35 | )% | (35 | )% | ||||||
State taxes, net of federal benefit | (1 | ) | (7 | ) | (4 | ) | ||||||
Foreign tax rate differential | (1 | ) | 1 | 6 | ||||||||
Amortization of stock-based compensation | 2 | 1 | 1 | |||||||||
Research and development benefit | (2 | ) | (9 | ) | (2 | ) | ||||||
Deemed repatriated foreign earnings | 2 | 2 | 61 | |||||||||
Other | — | — | 1 | |||||||||
Valuation Allowance | (1 | ) | 42 | (32 | ) | |||||||
Provision for income taxes | (36 | )% | (5 | )% | (4 | )% | ||||||
Reconciliation of the beginning and ending amounts of unrecognized tax benefits | The following table presents a reconciliation of the beginning and ending amounts of unrecognized tax benefits (in thousands): | |||||||||||
Balance at January 1, 2013 | $ | 5,773 | ||||||||||
Increases for positions taken in prior years | 282 | |||||||||||
Increases for positions related to the current year | 832 | |||||||||||
Settlements with taxing authorities | (320 | ) | ||||||||||
Balance at December 31, 2013 | $ | 6,567 | ||||||||||
Increases for positions taken in prior years | 5 | |||||||||||
Increases for positions related to the current year | 186 | |||||||||||
Decreases for positions taken in prior years | (18 | ) | ||||||||||
Decreases for statutes lapsing | (66 | ) | ||||||||||
Settlements with taxing authorities | — | |||||||||||
Balance at December 31, 2014 | $ | 6,674 | ||||||||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||||||
Summary of the stock option and restricted stock activity | The following table summarizes the stock option and restricted stock activity under the Plans for the indicated periods: | ||||||||||||||||||||
Shares | Number of | Weighted | Weighted | Number of | Weighted | ||||||||||||||||
Available for | Options | Average | Average | Restricted | Average | ||||||||||||||||
Future Grant | Outstanding | Exercise | Grant | Stock | Grant | ||||||||||||||||
Price | Date Fair | Awards and | Date Fair | ||||||||||||||||||
per Share | Value per | Units | Value per | ||||||||||||||||||
Share | Outstanding | Share | |||||||||||||||||||
Balance at December 31, 2011 | 18,011,756 | 9,535,000 | $ | 1.82 | 1,051,090 | $ | 1.52 | ||||||||||||||
Authorized | 3,206,969 | ||||||||||||||||||||
Granted(1) | (1,993,000 | ) | 945,500 | $ | 2.31 | $ | 0.81 | 1,047,500 | $ | 2.16 | |||||||||||
Options Exercised | (1,247,776 | ) | $ | 1.1 | |||||||||||||||||
Restricted Stock Vested(1) | (178,116 | ) | $ | 1.77 | |||||||||||||||||
Terminated/cancelled/forfeited | 995,912 | (944,196 | ) | $ | 3.04 | (51,716 | ) | $ | 1.8 | ||||||||||||
Balance at December 31, 2012 | 20,221,637 | 8,288,528 | $ | 1.85 | 1,868,758 | $ | 1.85 | ||||||||||||||
Authorized | 3,326,811 | ||||||||||||||||||||
Granted(2) | (3,070,000 | ) | 1,085,000 | $ | 1.81 | $ | 0.7 | 1,985,000 | $ | 1.86 | |||||||||||
Options Exercised | (1,138,718 | ) | $ | 1.12 | |||||||||||||||||
Restricted Stock Vested(2) | (558,083 | ) | $ | 2.06 | |||||||||||||||||
Terminated/cancelled/forfeited | 974,230 | (628,230 | ) | $ | 2.7 | (346,000 | ) | $ | 1.88 | ||||||||||||
Balance at December 31, 2013 | 21,452,678 | 7,606,580 | $ | 1.89 | 2,949,675 | $ | 1.81 | ||||||||||||||
Authorized | 3,472,551 | ||||||||||||||||||||
Granted(3) | (1,505,000 | ) | 1,025,000 | $ | 1.56 | $ | 0.6 | 480,000 | $ | 1.18 | |||||||||||
Options Exercised | — | (135,499 | ) | $ | 1.03 | ||||||||||||||||
Restricted Stock Vested(3) | — | (336,913 | ) | $ | 2.01 | ||||||||||||||||
Terminated/cancelled/forfeited | 2,106,526 | (1,675,189 | ) | $ | 2.76 | (431,337 | ) | $ | 1.98 | ||||||||||||
Balance at December 31, 2014 | 25,526,755 | 6,820,892 | $ | 1.64 | 2,661,425 | $ | 1.65 | ||||||||||||||
-1 | Restricted stock granted during 2012 represent awards with time-based vesting criteria which have been included as shares outstanding on the consolidated statement of stockholders’ equity. Restricted stock vested during 2012 represent 229,832 restricted stock awards released (net of 51,716 shares withheld for taxes). | ||||||||||||||||||||
-2 | Restricted stock granted during 2013 represent awards with time-based vesting criteria which have been included as shares outstanding on the consolidated statement of stockholders’ equity. Restricted stock vested during 2013 represent 558,083 restricted stock awards released. | ||||||||||||||||||||
-3 | Restricted stock granted during 2014 represent awards with time-based vesting criteria which have been included as shares outstanding on the consolidated statement of stockholders’ equity. Restricted stock vested during 2014 represent 378,250 restricted stock awards released (net of 41,337 shares withheld for taxes). | ||||||||||||||||||||
Summary of stock options outstanding and exercisable by range of exercise prices | The following table summarizes the stock options outstanding and exercisable by range of exercise prices as of December 31, 2014: | ||||||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||||||
Range of Exercise Prices | Number | Weighted- | Weighted- | Number | Weighted-Average | ||||||||||||||||
Outstanding | Average | Average | Exercisable | Exercise Price per | |||||||||||||||||
Remaining | Exercise Price per | Share | |||||||||||||||||||
Contractual Life | Share | ||||||||||||||||||||
(in Years) | |||||||||||||||||||||
$0.71— 1.05 | 1,674,308 | 4.68 | $ | 0.96 | 1,674,308 | $ | 0.96 | ||||||||||||||
1.06 — 1.48 | 1,472,255 | 4.32 | 1.26 | 1,372,255 | 1.26 | ||||||||||||||||
1.49 — 1.62 | 1,442,113 | 7.7 | 1.58 | 716,927 | 1.55 | ||||||||||||||||
1.63 — 2.32 | 1,595,000 | 7.99 | 1.93 | 713,011 | 1.98 | ||||||||||||||||
2.33 —5.74 | 637,216 | 2.36 | 3.73 | 634,049 | 3.73 | ||||||||||||||||
Total | 6,820,892 | 5.8 | 1.64 | 5,110,550 | 1.61 | ||||||||||||||||
Shares | Weighted | Weighted | Aggregate | ||||||||||||||||||
Average | Average | Intrinsic | |||||||||||||||||||
Exercise | Remaining | Value | |||||||||||||||||||
Price per | Contractual | ||||||||||||||||||||
Share | Term | ||||||||||||||||||||
(Years) | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Options outstanding at December 31, 2014 | 6,820,892 | $ | 1.64 | 5.8 | $ | 869 | |||||||||||||||
Options vested and expected to vest at December 31, 2014 | 6,518,107 | $ | 1.64 | 5.65 | $ | 869 | |||||||||||||||
Options exercisable at December 31, 2014 | 5,110,550 | $ | 1.61 | 4.81 | $ | 857 | |||||||||||||||
Summary of company's stock option activity | The following table sets forth the total stock-based compensation expense from continuing operations included in the Company’s Consolidated Statements of Comprehensive Loss: | ||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Network operations | $ | 202 | $ | 332 | $ | 200 | |||||||||||||||
Research and development | 266 | 350 | 257 | ||||||||||||||||||
Sales and marketing | 452 | 677 | 441 | ||||||||||||||||||
General and administrative | 1,076 | 1,702 | 1,448 | ||||||||||||||||||
Total | $ | 1,996 | $ | 3,061 | $ | 2,346 | |||||||||||||||
Stock-based compensation expense in consolidated statements of operations | The following table sets forth the total stock-based compensation expense by award-type: | ||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Stock options | $ | 815 | $ | 838 | $ | 1,122 | |||||||||||||||
Restricted stock | 1,105 | 2,157 | 1,128 | ||||||||||||||||||
Employee stock purchase plan | 76 | 66 | 96 | ||||||||||||||||||
Total | $ | 1,996 | $ | 3,061 | $ | 2,346 | |||||||||||||||
Stock-based compensation expense by award-type | The weighted average estimated fair value of stock options granted during the years ended December 31, 2014, 2013, and 2012 were calculated under the Black-Scholes option-pricing model, using the following weighted-average assumptions: | ||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Risk-free rate | 1.07 | % | 0.89 | % | 0.35 | % | |||||||||||||||
Expected dividend yield | — | % | — | % | — | % | |||||||||||||||
Expected volatility | 53 | % | 50 | % | 52 | % | |||||||||||||||
Expected term | 3.5 years | 3.8 years | 3.1 years | ||||||||||||||||||
Weighted-average assumptions used in calculating fair value | Compensation cost related to the Company’s employee stock purchase plan is calculated using the fair value of the employees’ purchase rights granted. The estimated fair value of employee purchase rights granted during the years ended December 31, 2014, 2013, and 2012 was calculated using the Black-Scholes option-pricing model with the following weighted-average assumptions: | ||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Risk-free rate | 0.1 | % | 0.09 | % | 0.09 | % | |||||||||||||||
Expected dividend yield | — | % | — | % | — | % | |||||||||||||||
Expected volatility | 63 | % | 51 | % | 55 | % | |||||||||||||||
Expected term | 0.5 to 1 year | 0.5 to 1 year | 0.5 to 1 year | ||||||||||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Schedule of future minimum lease payments | Future minimum lease payments under these operating leases, including approximately $0.1 million of future payments on leases accounted for under the Company’s restructuring plans, as of December 31, 2014, are as follows: | |||
Operating | ||||
Leases | ||||
(In thousands) | ||||
Year ending December 31: | ||||
2015 | $ | 1,806 | ||
2016 | 1,310 | |||
2017 | 1,171 | |||
2018 | 1,050 | |||
2019 and thereafter | $ | 2,099 | ||
$ | 7,436 | |||
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 2017. Future minimum purchase commitments under all agreements are as follows: | |||
Year ending December 31: | Minimum | |||
Purchase | ||||
Commitments | ||||
(In thousands) | ||||
2015 | $ | 5,946 | ||
2016 | 659 | |||
2017 | $ | 44 | ||
$ | 6,649 | |||
Net_Loss_Per_Common_Share_Tabl
Net Loss Per Common Share (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 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 income (loss) per share: | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In thousands, except per share amounts) | ||||||||||||
Numerator: | ||||||||||||
Net loss from continuing operations | $ | (12,205 | ) | $ | (14,705 | ) | $ | (5,991 | ) | |||
Net income from discontinued operations | 19,179 | 2,393 | 1,613 | |||||||||
Net income (loss) | 6,974 | (12,312 | ) | (4,378 | ) | |||||||
Denominator: | ||||||||||||
Weighted average shares outstanding - basic and diluted | 62,613,671 | 63,411,162 | 60,711,317 | |||||||||
Total income (loss) per share - basic and diluted: | ||||||||||||
Loss from continuing operations | $ | (0.19 | ) | $ | (0.23 | ) | $ | (0.10 | ) | |||
Income from discontinued operations | $ | 0.3 | $ | 0.04 | $ | 0.03 | ||||||
Total net income (loss) per share | $ | 0.11 | $ | (0.19 | ) | $ | (0.07 | ) | ||||
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 income (loss) per share because the effect of including these shares would have been anti-dilutive: | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Options to purchase common stock | 4,703,978 | 3,329,281 | 2,473,024 | |||||||||
Restricted stock awards, including participating securities | 2,195,750 | 2,615,705 | 1,819,261 | |||||||||
Total | 6,899,728 | 5,944,986 | 4,292,285 | |||||||||
Segment_and_Geographical_Infor1
Segment and Geographical Information (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Segment Reporting [Abstract] | |||||||||
Summary of revenue by geographical region | he following table summarizes total Company revenue from continuing operations by country or by geographical region: | ||||||||
For the Year Ended December 31, | |||||||||
2014 | 2013 | 2012 | |||||||
United States | 35 | % | 37 | % | 41 | % | |||
EMEA | 48 | % | 49 | % | 44 | % | |||
Asia Pacific | 15 | % | 13 | % | 14 | % | |||
Rest of the world | 2 | % | 1 | % | 1 | % |
Divestiture_of_Business_Segmen1
Divestiture of Business Segment (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 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. | |||||||||||
Six Months | Year Ended | |||||||||||
ended June 30, | December 31, | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Revenue | 15,458 | 33,386 | 33,548 | |||||||||
Income from discontinued operations before income taxes | 1,506 | 3,744 | 2,524 | |||||||||
Gain on sale of discontinued operations before income taxes | 25,014 | — | — | |||||||||
Provision for income taxes | (7,341 | ) | (1,351 | ) | (911 | ) | ||||||
Income from discontinued operations, net of tax | $ | 19,179 | $ | 2,393 | $ | 1,613 | ||||||
Significant_Accounting_Policie2
Significant Accounting Policies (Details Textual) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Supplier | Supplier | Supplier | ||
Arrangement | Customer | Customer | ||
Financial_Institution | ||||
Customer | ||||
Significant Accounting Policies (Textual) [Abstract] | ||||
Maturity period of highly liquid investment | 3 months | |||
Cash And Cash equivalents held by companies foreign subsidiary | $33,814,000 | $24,017,000 | $26,822,000 | $25,439,000 |
Undistributed Earnings of Foreign Subsidiaries, Net of Earnings Repatriated | 4,000,000 | |||
Significant Accounting Policies (Additional Textual) [Abstract] | ||||
Number of financial institutions | 2 | |||
Percentage of accounts receivable from European customers | 51.00% | |||
Standard credit terms for accounts receivable under condition one | 30 days | |||
Percentage of accounts receivable aged within company under condition one | 82.00% | |||
Standard credit terms for accounts receivable under condition two | 90 days | |||
Percentage of accounts receivable aged within company under condition two | 97.00% | |||
Entity wide revenue major customer percentage | 10.00% | 10.00% | 10.00% | |
Number of customer represent 10% or more of accounts receivable | 1 | 0 | ||
Number of customer represent 10% or more of total revenues | 0 | 0 | 0 | |
Number of supplier accounted for a specific percentage of total network access costs | 1 | 2 | ||
Number of Individual supplier represented more than 10% of total network access costs | 0 | 0 | 0 | |
Cumulative undistributed earnings of the company's foreign subsidiary | 12,900,000 | 11,500,000 | ||
Types of flat fee arrangements for network services | 2 | |||
Advertising expenses | 100,000 | 100,000 | 100,000 | |
Amortization expense | 700,000 | 700,000 | 200,000 | |
Impairment to internal use of software | 0 | 0 | ||
Federal | ||||
Significant Accounting Policies (Textual) [Abstract] | ||||
Deemed repatriated foreign earnings amount | 8,900,000 | |||
Foreign Subsidiaries | ||||
Significant Accounting Policies (Textual) [Abstract] | ||||
Cash And Cash equivalents held by companies foreign subsidiary | 900,000 | 900,000 | ||
Minimum | ||||
Significant Accounting Policies (Textual) [Abstract] | ||||
Percentage of tax benefit likely of being realized upon settlement | 50.00% | |||
Computer software | ||||
Significant Accounting Policies (Textual) [Abstract] | ||||
Estimated useful lives of the Assets | 5 years | |||
Computer software | Maximum | ||||
Significant Accounting Policies (Textual) [Abstract] | ||||
Estimated useful lives of the Assets | 5 years | |||
Computer software | Minimum | ||||
Significant Accounting Policies (Textual) [Abstract] | ||||
Estimated useful lives of the Assets | 3 years | |||
Equipment | Maximum | ||||
Significant Accounting Policies (Textual) [Abstract] | ||||
Estimated useful lives of the Assets | 5 years | |||
Equipment | Minimum | ||||
Significant Accounting Policies (Textual) [Abstract] | ||||
Estimated useful lives of the Assets | 3 years | |||
Furniture and fixtures | ||||
Significant Accounting Policies (Textual) [Abstract] | ||||
Estimated useful lives of the Assets | 5 years | |||
ERP System | ||||
Significant Accounting Policies (Textual) [Abstract] | ||||
Software Development Costs | 300,000 | 300,000 | 2,600,000 | |
Accounts Receivable | ||||
Significant Accounting Policies (Additional Textual) [Abstract] | ||||
Entity wide revenue major customer percentage | 12.00% | 10.00% | ||
Sales | ||||
Significant Accounting Policies (Additional Textual) [Abstract] | ||||
Entity wide revenue major customer percentage | 10.00% | 10.00% | 10.00% | |
Cost of Sales | ||||
Significant Accounting Policies (Additional Textual) [Abstract] | ||||
Entity wide revenue major customer percentage | 10.00% | 10.00% | 10.00% | |
Supplier Concentration Risk | ||||
Significant Accounting Policies (Additional Textual) [Abstract] | ||||
Entity wide revenue major customer percentage | 13.00% | |||
Number of Individual supplier represented more than 10% of total network access costs | 2 | |||
Other Noncurrent Assets [Member] | ||||
Significant Accounting Policies (Additional Textual) [Abstract] | ||||
Total Amount of restricted cash | 200,000 | 300,000 | ||
Other Current Assets [Member] | ||||
Significant Accounting Policies (Additional Textual) [Abstract] | ||||
Total Amount of restricted cash | $1,400,000 | |||
Supplier One [Member] | Supplier Concentration Risk | ||||
Significant Accounting Policies (Additional Textual) [Abstract] | ||||
Entity wide revenue major customer percentage | 14.00% | 16.00% | ||
Supplier Two [Member] | Supplier Concentration Risk | ||||
Significant Accounting Policies (Additional Textual) [Abstract] | ||||
Entity wide revenue major customer percentage | 13.00% | 14.00% |
Financial_Instruments_and_Fair2
Financial Instruments and Fair Value (Details Table) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and Cash Equivalents, Fair Value Disclosure | $29,306 | $18,304 | ||
Fair Value Measured Using Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and Cash Equivalents, Fair Value Disclosure | 29,306 | 18,304 | ||
Fair Value Measured Using Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | 0 | ||
Fair Value Measured Using Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | 0 | ||
Money Market Funds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and Cash Equivalents, Fair Value Disclosure | 29,306 | [1] | 18,304 | [1] |
Money Market Funds | Fair Value Measured Using Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and Cash Equivalents, Fair Value Disclosure | 29,306 | [1] | 18,304 | [1] |
Money Market Funds | Fair Value Measured Using Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | [1] | 0 | [1] |
Money Market Funds | Fair Value Measured Using Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and Cash Equivalents, Fair Value Disclosure | $0 | [1] | $0 | [1] |
[1] | Held in cash and cash equivalents on the Company’s consolidated balance sheets. |
Financial_Instruments_and_Fair3
Financial Instruments and Fair Value (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Financial Instruments and Fair Value (Textual) [Abstract] | ||
Transfers between Levels 1, 2, and 3 | $0 | $0 |
Property_and_Equipment_Compone
Property and Equipment - Components of Property and Equipment, Net (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Components of property and equipment, net | ||
Equipment | $10,242 | $15,134 |
Furniture and fixtures | 1,923 | 2,110 |
Computer software | 9,356 | 12,279 |
Construction in progress | 306 | 749 |
Leasehold improvements | 912 | 1,252 |
Property plant and equipment, gross | 22,739 | 31,524 |
Less: Accumulated depreciation and amortization | -16,526 | -23,082 |
Property and equipment, net | $6,213 | $8,442 |
Property_and_Equipment_Details
Property and Equipment (Details Textual) (USD $) | 12 Months Ended | 1 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Apr. 30, 2014 | Oct. 31, 2013 | |
Property, Plant and Equipment [Line Items] | |||||
Depreciation expense | $3,200,000 | $2,400,000 | $2,000,000 | ||
Disposal Group, Including Discontinued Operation, Depreciation and Amortization | 200,000 | 400,000 | 100,000 | ||
Property and equipment, wrote-off | 8,500,000 | ||||
Gain (Loss) on Sale of Properties | 100,000 | ||||
Disposal Group, Including Discontinued Operation, Property, Plant and Equipment | 2,000,000 | ||||
Capitalized Computer Software, Additions | 501,000 | 2,597,000 | 0 | ||
Capitalized Computer Software, Gross | 9,356,000 | 12,279,000 | |||
Construction in Progress, Gross | 306,000 | 749,000 | |||
ERP System | |||||
Property, Plant and Equipment [Line Items] | |||||
Capitalized Computer Software, Additions | 300,000 | 300,000 | 2,600,000 | ||
Computer Equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Capitalized Computer Software, Additions | 3,100,000 | 500,000 | 2,600,000 | ||
Capitalized Computer Software, Gross | $2,000,000 |
Other_Assets_Details
Other Assets (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Components of other assets | ||
Deferred installation costs and other long-term assets | $0 | $1,677 |
Deposits | 563 | 808 |
Long-term deferred tax assets, net | 134 | 96 |
Restricted cash | 150 | 250 |
Other Assets | $847 | $2,831 |
Accrued_Liabilities_Details
Accrued Liabilities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2009 | ||
In Thousands, unless otherwise specified | |||||
Schedule of accrued liabilities | |||||
Tax liabilities | $1,300 | $1,044 | $5,000 | ||
Accrued restructuring liabilities—current(1) | 160 | [1] | 200 | [1] | |
Accrued bonus, commissions and other employee benefits | 2,043 | 2,395 | |||
Accrued for vendor financed property and equipment | 832 | 746 | |||
Amounts due to customers | 1,016 | 1,059 | |||
Other accrued liabilities | 1,837 | 3,656 | |||
Accrued liabilities | $7,188 | $9,100 | |||
[1] | See Note 7. Accrued Restructuring |
Accrued_Restructuring_Schedule
Accrued Restructuring - Schedule of Accrued Restructuring (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Summary of accrued restructuring | |||
Beginning balance | $317 | $483 | $736 |
Restructuring charges and related adjustments | 733 | 653 | 26 |
Payments | -890 | -819 | -279 |
Ending Balance | $160 | $317 | $483 |
Accrued_Restructuring_Details_
Accrued Restructuring (Details Textual) (USD $) | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Dec. 31, 2009 | Mar. 31, 2013 | Dec. 31, 2011 | |||
Employees | Employees | Employees | |||||||
Accrued Restructuring (Textual) [Abstract] | |||||||||
Accrued restructuring liabilities- current | $160,000 | [1] | $200,000 | [1] | |||||
Restructuring Charges | 733,000 | 653,000 | 26,000 | ||||||
Accrued Restructuring (Additional Textual) [Abstract] | |||||||||
Restructuring Reserve | 160,000 | 317,000 | 483,000 | 736,000 | |||||
Employee Severance [Member] | |||||||||
Accrued Restructuring (Additional Textual) [Abstract] | |||||||||
Restructuring Reserve | 100,000 | ||||||||
Facility Closing [Member] | |||||||||
Accrued Restructuring (Additional Textual) [Abstract] | |||||||||
Restructuring Reserve | 100,000 | ||||||||
Two Thousand Fourteen Q3 Restructuring Plan [Member] | |||||||||
Accrued Restructuring (Textual) [Abstract] | |||||||||
Restructuring Charges | 100,000 | 700,000 | |||||||
Accrued Restructuring (Additional Textual) [Abstract] | |||||||||
Restructuring plan, number of positions | 20 | ||||||||
Two Thousand Nine Plan [Member] | |||||||||
Accrued Restructuring (Additional Textual) [Abstract] | |||||||||
Restructuring plan, number of positions | 146 | ||||||||
Restructuring Reserve | 100,000 | ||||||||
Two Thousand Thirteen Plan [Member] | |||||||||
Accrued Restructuring (Additional Textual) [Abstract] | |||||||||
Restructuring plan, number of positions | 16 | ||||||||
Accrued Liabilities [Member] | |||||||||
Accrued Restructuring (Textual) [Abstract] | |||||||||
Accrued restructuring liabilities- current | 200,000 | 200,000 | |||||||
Noncurrent Liability [Member] | |||||||||
Accrued Restructuring (Textual) [Abstract] | |||||||||
Restructuring liability expected to be paid for the abandoned facilities, Noncurrent | $100,000 | ||||||||
[1] | See Note 7. Accrued Restructuring |
Vendor_Financed_Property_and_E1
Vendor Financed Property and Equipment - Additional Information (Details) (USD $) | 12 Months Ended | 1 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Apr. 30, 2014 | Oct. 31, 2013 | |
Property, Plant and Equipment [Line Items] | |||||
Vendor Financed Property and Equipment Repayment Period | 2 years | ||||
Capitalized Computer Software, Additions | $501,000 | $2,597,000 | $0 | ||
Accrued for vendor financed property and equipment | 832,000 | 746,000 | |||
Accrued Vendor Payable, Noncurrent | 854,000 | 1,586,000 | |||
Computer Equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Capitalized Computer Software, Additions | 3,100,000 | 500,000 | 2,600,000 | ||
Repayments of Long-term Loans from Vendors | 1,400,000 | ||||
Accrued for vendor financed property and equipment | 800,000 | ||||
Accrued Vendor Payable, Due Year Two | 800,000 | ||||
Accrued Vendor Payable, Noncurrent | 900,000 | ||||
Accrued Vendor Payable, Due Year Three | 900,000 | ||||
Accrued Vendor Payable, Noncurrent, Fair Value | $900,000 |
Income_Taxes_Schedule_of_Incom
Income Taxes - Schedule of Income Before Income Taxes (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
U.S Source | ($20,306) | ($16,819) | ($6,894) |
Non-U.S. Source | 1,000 | 1,332 | 634 |
Loss from continuing operations before income taxes | ($19,306) | ($15,487) | ($6,260) |
Income_Taxes_Income_Tax_Provis
Income Taxes - Income Tax Provision (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current: | |||
U.S. federal | $0 | $0 | |
State | -3 | 32 | |
Foreign | 278 | 334 | |
Total | 275 | 366 | |
Deferred: | |||
U.S. federal | -7,107 | -1,351 | |
State | -219 | 0 | |
Foreign | -50 | 203 | |
Total | -7,376 | -1,148 | |
Provision for (benefit from) income taxes | -7,101 | -782 | -269 |
Scenario, Previously Reported | |||
Current: | |||
U.S. federal | 0 | ||
State | 30 | ||
Foreign | 495 | ||
Total | 525 | ||
Deferred: | |||
U.S. federal | -911 | ||
State | 0 | ||
Foreign | 117 | ||
Total | -794 | ||
Provision for (benefit from) income taxes | ($269) |
Income_Taxes_Deferred_Income_T
Income Taxes - Deferred Income Taxes Assets and Liabilities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ||
Net operating loss carry forwards | $23,526 | $46,364 |
Reserves and accruals | 1,517 | 2,728 |
Research and other tax credits | 5,880 | 6,328 |
Share based compensation | 3,133 | 3,780 |
Property and equipment | 3,224 | 43 |
Total deferred tax assets | 37,280 | 59,243 |
Valuation allowance | -35,348 | -58,218 |
Net deferred tax assets | 1,932 | 1,025 |
Deferred tax liabilities: | ||
Property and equipment | -1,606 | -751 |
Total net deferred tax assets | $326 | $274 |
Income_Taxes_Reconciliation_to
Income Taxes - Reconciliation to Effective Income Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Provision for (benefit from) income taxes differed from the amounts computed by applying the U.S. federal income tax rate to pretax loss before income taxes | |||
Federal statutory rate | -35.00% | -35.00% | -35.00% |
State taxes, net of federal benefit | -1.00% | -7.00% | -4.00% |
Foreign taxes | -1.00% | 1.00% | 6.00% |
Amortization of stock-based compensation | 2.00% | 1.00% | 1.00% |
Research and development benefit | -2.00% | -9.00% | -2.00% |
Deemed repatriated foreign earnings | 2.00% | 2.00% | 61.00% |
Other | 0.00% | 0.00% | 1.00% |
Valuation Allowance | -1.00% | 42.00% | -32.00% |
Provision for (benefit from) income taxes | -36.00% | -5.00% | -4.00% |
Income_Taxes_Summary_of_Change
Income Taxes - Summary of Changes to Unrecognized Tax Benefits (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Reconciliation of the beginning and ending amounts of unrecognized tax benefits | ||
Unrecognized Tax Benefits, Beginning Balance | $6,567 | $5,773 |
Increases for positions taken in prior years | 5 | 282 |
Increases for positions related to the current year | 186 | 832 |
Decreases for positions taken in prior years | -18 | |
Decreases for statutes lapsing | -66 | |
Settlements with taxing authorities | 0 | -320 |
Unrecognized Tax Benefits, Ending Balance | $6,674 | $6,567 |
Income_Taxes_Details_Textual
Income Taxes (Details Textual) (USD $) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Operating Loss Carryforwards [Line Items] | ||||
Recognizable tax benefits | $800,000 | $800,000 | ||
Unrecognized tax benefits, decreases resulting from settlements with taxing authorities | 0 | 320,000 | ||
Amount accrued in connection with income tax audit | 800,000 | |||
Maximum | ||||
Operating Loss Carryforwards [Line Items] | ||||
Unrecognized tax benefits, decreases resulting from settlements with taxing authorities | 800,000 | |||
Unrecognized tax benefits, increase resulting from settlements with taxing authorities | 300,000 | |||
Years remain open to examination | 2014 | |||
Minimum | ||||
Operating Loss Carryforwards [Line Items] | ||||
Years remain open to examination | 2007 | |||
Federal | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating Loss Carryforwards | 67,200,000 | |||
Federal | Research | ||||
Operating Loss Carryforwards [Line Items] | ||||
Research and development tax credit carry forwards | 4,400,000 | |||
State | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating Loss Carryforwards | 48,100,000 | |||
State | Research | ||||
Operating Loss Carryforwards [Line Items] | ||||
Research and development tax credit carry forwards | 6,700,000 | |||
ISRAEL | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carry forwards valuation allowance | 2,200,000 | |||
Stock Based Compensation | Federal | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating Loss Carryforwards | 7,600,000 | 3,900,000 | ||
iPass Unity | ||||
Operating Loss Carryforwards [Line Items] | ||||
Discontinued Operation, Tax Effect of Income (Loss) from Disposal of Discontinued Operation | 7,341,000 | 7,300,000 | 1,351,000 | 911,000 |
Discontinued Operation, Tax Effect of Recognition of Operating Loss Carryforward from Disposal of Discontinued Operation | $7,100,000 | $800,000 | $300,000 |
Stockholders_Equity_Summary_of
Stockholders' Equity - Summary of Stock Option and Restricted Stock Activity (Details) (USD $) | 12 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share based compensation arrangement by share based payment award restricted stock units included as shares outstanding | 378,250 | 558,083 | 229,832 | |||
Shares available for future grant | ||||||
Shares available for future grant beginning balance | 21,452,678 | 20,221,637 | 18,011,756 | |||
Shares available for future grant Authorized | 3,472,551 | 3,326,811 | 3,206,969 | |||
Shares available for future grant | -1,505,000 | [1] | -3,070,000 | [2] | -1,993,000 | [3] |
Shares available for future grant Terminated/cancelled/forfeited | 2,106,526 | 974,230 | 995,912 | |||
Shares available for future grant ending balance | 25,526,755 | 21,452,678 | 20,221,637 | |||
Number of options Outstanding | ||||||
Stock Number of Outstanding Options, Beginning Balance | 7,606,580 | 8,288,528 | 9,535,000 | |||
Number of Options Granted | -1,025,000 | [1] | -1,085,000 | [2] | -945,500 | [3] |
Number of options Outstanding exercised | -135,499 | -1,138,718 | -1,247,776 | |||
Number of options Outstanding terminated/cancelled/forfeited | -1,675,189 | -628,230 | -944,196 | |||
Stock Number of Outstanding Options, Ending Balance | 6,820,892 | 7,606,580 | 8,288,528 | |||
Weighted Average Exercise Price Per share, options | ||||||
Weighted Average Exercise Price Per share, Beginning Balance | $1.89 | $1.85 | $1.82 | |||
Weighted Average Exercise Price Per share, Granted | $1.56 | [1] | $1.81 | [2] | $2.31 | [3] |
Weighted Average Exercise Price Per share, Exercised | ($1.03) | ($1.12) | ($1.10) | |||
Weighted Average Exercise Price Per share, Terminated/cancelled/forfeited | $2.76 | $2.70 | $3.04 | |||
Weighted Average Grant Date Fair Value, Options | $0.60 | [1] | $0.70 | [2] | $0.81 | [3] |
Weighted Average Exercise Price Per share, Ending Balance | $1.64 | $1.89 | $1.85 | |||
Weighted Average Grant Date Fair Value Per Share, Restricted Stock Awards and Units | ||||||
Share Based Compensation Arrangement by Share Based Payment Award Shares with Held to Satisfy Tax with Holding Obligations | 41,337 | 51,716 | ||||
Restricted stock | ||||||
Number of Restricted Stock Awards and Units Outstanding | ||||||
Number of Restricted Stock Awards and Units Outstanding, Beginning Balance | 2,949,675 | 1,868,758 | 1,051,090 | |||
Number of Restricted Stock Awards and Units Outstanding, Granted | 480,000 | [1] | 1,985,000 | [2] | 1,047,500 | [3] |
Number of Restricted Stock Awards and Units Outstanding, Vested | -336,913 | [1] | -558,083 | [2] | -178,116 | [3] |
Number of Restricted Stock Awards and Units Outstanding, Terminated/cancelled/forfeited | -431,337 | -346,000 | -51,716 | |||
Number of Restricted Stock Awards and Units Outstanding, Ending Balance | 2,661,425 | 2,949,675 | 1,868,758 | |||
Weighted Average Grant Date Fair Value Per Share, Restricted Stock Awards and Units | ||||||
Weighted Average Grant Date Fair Value, Beginning Balance | $1.81 | $1.85 | $1.52 | |||
Weighted Average Grant Date Fair Value, Granted | $1.18 | [1] | $1.86 | [2] | $2.16 | [3] |
Weighted Average Grant Date Fair Value, Vested | $2.01 | [1] | $2.06 | [2] | $1.77 | [3] |
Weighted Average Grant Date Fair Value, Terminated/cancelled/forfeited | $1.98 | $1.88 | $1.80 | |||
Weighted Average Grant Date Fair Value, Ending Balance | $1.65 | $1.81 | $1.85 | |||
[1] | Restricted stock granted during 2014 represent awards with time-based vesting criteria which have been included as shares outstanding on the consolidated statement of stockholders’ equity. Restricted stock vested during 2014 represent 378,250 restricted stock awards released (net of 41,337 shares withheld for taxes). | |||||
[2] | Restricted stock granted during 2013 represent awards with time-based vesting criteria which have been included as shares outstanding on the consolidated statement of stockholders’ equity. Restricted stock vested during 2013 represent 558,083 restricted stock awards released. | |||||
[3] | Restricted stock granted during 2012 represent awards with time-based vesting criteria which have been included as shares outstanding on the consolidated statement of stockholders’ equity. Restricted stock vested during 2012 represent 229,832 restricted stock awards released (net of 51,716 shares withheld for taxes). |
Stockholders_Equity_Stock_Opti
Stockholders' Equity - Stock Options Outstanding by Exercise Price (Details) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Summary of stock options outstanding and exercisable by range of exercise prices | |
Number Outstanding | 6,820,892 |
Weighted-Average Remaining Contractual Life (in Years) | 5 years 9 months 18 days |
Weighted-Average Exercise Price per Share | $1.64 |
Number Exercisable | 5,110,550 |
Weighted-Average Exercise Price per Share | $1.61 |
Range One | |
Summary of stock options outstanding and exercisable by range of exercise prices | |
Range of Exercise Prices, Lower Limit | $0.71 |
Range of Exercise Prices, Upper Limit | $1.02 |
Number Outstanding | 1,674,308 |
Weighted-Average Remaining Contractual Life (in Years) | 4 years 8 months 5 days |
Weighted-Average Exercise Price per Share | $0.96 |
Number Exercisable | 1,674,308 |
Weighted-Average Exercise Price per Share | $0.96 |
Range Two | |
Summary of stock options outstanding and exercisable by range of exercise prices | |
Range of Exercise Prices, Lower Limit | $1.02 |
Range of Exercise Prices, Upper Limit | $1.05 |
Number Outstanding | 1,472,255 |
Weighted-Average Remaining Contractual Life (in Years) | 4 years 3 months 26 days |
Weighted-Average Exercise Price per Share | $1.26 |
Number Exercisable | 1,372,255 |
Weighted-Average Exercise Price per Share | $1.26 |
Range Three | |
Summary of stock options outstanding and exercisable by range of exercise prices | |
Range of Exercise Prices, Lower Limit | $1.05 |
Range of Exercise Prices, Upper Limit | $1.27 |
Number Outstanding | 1,442,113 |
Weighted-Average Remaining Contractual Life (in Years) | 7 years 8 months 12 days |
Weighted-Average Exercise Price per Share | $1.58 |
Number Exercisable | 716,927 |
Weighted-Average Exercise Price per Share | $1.55 |
Range Four | |
Summary of stock options outstanding and exercisable by range of exercise prices | |
Range of Exercise Prices, Lower Limit | $1.27 |
Range of Exercise Prices, Upper Limit | $1.72 |
Number Outstanding | 1,595,000 |
Weighted-Average Remaining Contractual Life (in Years) | 7 years 11 months 27 days |
Weighted-Average Exercise Price per Share | $1.93 |
Number Exercisable | 713,011 |
Weighted-Average Exercise Price per Share | $1.98 |
Range Five | |
Summary of stock options outstanding and exercisable by range of exercise prices | |
Range of Exercise Prices, Lower Limit | $1.72 |
Range of Exercise Prices, Upper Limit | $17.56 |
Number Outstanding | 637,216 |
Weighted-Average Remaining Contractual Life (in Years) | 2 years 4 months 10 days |
Weighted-Average Exercise Price per Share | $3.73 |
Number Exercisable | 634,049 |
Weighted-Average Exercise Price per Share | $3.73 |
Stockholders_Equity_Stock_Opti1
Stockholders' Equity - Stock Options Outstanding, Vested, and Exercisable (Details) (USD $) | 12 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Summary of company's stock option activity | ||||
Options outstanding, Shares | 6,820,892 | 7,606,580 | 8,288,528 | 9,535,000 |
Weighted-average exercise price of options | $1.64 | $1.89 | $1.85 | $1.82 |
Weighted-Average Remaining Contractual Life (in Years), option outstanding | 5 years 9 months 18 days | |||
Aggregate Intrinsic Value, Option Outstanding | $869 | |||
Options vested and expected to vest, Shares | 6,518,107 | |||
Weighted Average Exercise Price Per share, options vested and expected to vest | $1.64 | |||
Weighted-Average Remaining Contractual Life (in Years), Options vested and expected to vest | 5 years 7 months 24 days | |||
Aggregate Intrinsic Value, Options vested and expected to vest | 869 | |||
Options exercisable, Shares | 5,110,550 | |||
Weighted Average Exercise Price Per share, Options exercisable | $1.61 | |||
Weighted-Average Remaining Contractual Life (in Years), Options Exercisable | 4 years 9 months 22 days | |||
Aggregate Intrinsic Value, Options exercisable | $857 |
Stockholders_Equity_Total_Stoc
Stockholders' Equity - Total Stock Based Compensation (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Stock-based compensation expense in consolidated statements of operations | |||
Total | $1,996 | $3,061 | $2,346 |
Network Operations | |||
Stock-based compensation expense in consolidated statements of operations | |||
Total | 202 | 332 | 200 |
Research and development | |||
Stock-based compensation expense in consolidated statements of operations | |||
Total | 266 | 350 | 257 |
Sales and marketing | |||
Stock-based compensation expense in consolidated statements of operations | |||
Total | 452 | 677 | 441 |
General and administrative | |||
Stock-based compensation expense in consolidated statements of operations | |||
Total | $1,076 | $1,702 | $1,448 |
Stockholders_Equity_Stock_Base
Stockholders' Equity - Stock Based Compensation by Award Type (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Stock-based compensation expense by award-type | |||
Total | $1,996 | $3,061 | $2,346 |
Employee Stock Purchase Plans | |||
Stock-based compensation expense by award-type | |||
Total | 76 | 66 | 96 |
Stock options | |||
Stock-based compensation expense by award-type | |||
Total | 815 | 838 | 1,122 |
Restricted stock | |||
Stock-based compensation expense by award-type | |||
Total | $1,105 | $2,157 | $1,128 |
Stockholders_Equity_Stock_Base1
Stockholders' Equity - Stock Base Compensation Assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Stock options | |||
Weighted-average assumptions used in calculating fair value | |||
Risk-free rate | 1.07% | 0.89% | 0.35% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Expected volatility | 53.00% | 50.00% | 52.00% |
Expected term | 3 years 6 months | 3 years 9 months 18 days | 3 years 1 month 6 days |
Stock options | |||
Weighted-average assumptions used in calculating fair value | |||
Risk-free rate | 0.10% | 0.09% | 0.09% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Expected volatility | 63.00% | 51.00% | 55.00% |
Stock options | Minimum | |||
Weighted-average assumptions used in calculating fair value | |||
Expected term | 6 months | 6 months | 6 months |
Stock options | Maximum | |||
Weighted-average assumptions used in calculating fair value | |||
Expected term | 1 year | 1 year | 1 year |
Stockholders_Equity_Details_Te
Stockholders' Equity (Details Textual) (USD $) | 12 Months Ended | ||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||
Stockholders' Equity (Textual) [Abstract] | |||||||
Period over which remaining stock options are vested | 36 months | ||||||
Weighted average vesting period over which the compensation cost is expected to be recognized | 2 years 6 months 4 days | ||||||
Shares of common stock reserved for issuance under the ESPP | 25,526,755 | 21,452,678 | 20,221,637 | 18,011,756 | |||
Stockholders' Equity (Additional Textual) [Abstract] | |||||||
Number of stock plans that permit to grant stock options | 2 | ||||||
Percentage of stock options granted to employees generally vest on first anniversary of grant date | 25.00% | ||||||
Share based compensation arrangement by share based payment award expiration period | 10 years | ||||||
Percentage increase in number of shares authorized for issuance under employee plan | 5.00% | ||||||
Share based compensation arrangement by share based payment award restricted stock with time based vesting criteria | 229,832 | ||||||
Share based compensation arrangement by share based payment award restricted stock units included as shares outstanding | 378,250 | 558,083 | 229,832 | ||||
Shares withheld for taxes | 41,337 | 51,716 | |||||
Aggregate intrinsic value of options exercised | 100,000 | 1,000,000 | 1,100,000 | ||||
Unrecognized stock-based compensation expense related to stock options | 800,000 | ||||||
Percentage of employee's compensation up to which employees permit to purchase common stock through payroll deductions | 15.00% | ||||||
Purchase price per share as a percentage of fair market value | 85.00% | ||||||
Maximum number of shares that can be purchased by participant per offering | 2,500 | ||||||
Share based compensation arrangement by share based payment award maximum amount per employee | 25,000 | ||||||
Shares purchased | 118,501 | 137,091 | 186,275 | ||||
Weighted average per share prices | 1.27 | 1.6 | 1.09 | ||||
Employee Stock Purchase Plans | |||||||
Stockholders' Equity (Textual) [Abstract] | |||||||
Shares of common stock reserved for issuance under the ESPP | 7,500,000 | ||||||
Shares under common stock available for issuance | 4,700,000 | ||||||
Performance Based Restricted Stock Awards, Revenue Benchmark | |||||||
Stockholders' Equity (Textual) [Abstract] | |||||||
Number of Restricted Stock Outstanding, Granted | 420,000 | 1,935,000 | 0 | 280,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 0 | ||||||
Performance Based Restricted Stock Awards, EBITDA Benchmark | |||||||
Stockholders' Equity (Textual) [Abstract] | |||||||
Number of Restricted Stock Outstanding, Granted | 753,925 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 0 | ||||||
Restricted stock | |||||||
Stockholders' Equity (Textual) [Abstract] | |||||||
Number of Restricted Stock Outstanding, Granted | 480,000 | [1] | 1,985,000 | [2] | 1,047,500 | [3] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 336,913 | [1] | 558,083 | [2] | 178,116 | [3] | |
Weighted average vesting period over which the compensation cost is expected to be recognized | 2 years 4 months 24 days | ||||||
Grant date fair value of the restricted awards granted | 600,000 | 3,700,000 | 2,300,000 | ||||
Stockholders' Equity (Additional Textual) [Abstract] | |||||||
Unrecognized compensation cost related to the unvested restricted stock awards granted | 1,300,000 | ||||||
[1] | Restricted stock granted during 2014 represent awards with time-based vesting criteria which have been included as shares outstanding on the consolidated statement of stockholders’ equity. Restricted stock vested during 2014 represent 378,250 restricted stock awards released (net of 41,337 shares withheld for taxes). | ||||||
[2] | Restricted stock granted during 2013 represent awards with time-based vesting criteria which have been included as shares outstanding on the consolidated statement of stockholders’ equity. Restricted stock vested during 2013 represent 558,083 restricted stock awards released. | ||||||
[3] | Restricted stock granted during 2012 represent awards with time-based vesting criteria which have been included as shares outstanding on the consolidated statement of stockholders’ equity. Restricted stock vested during 2012 represent 229,832 restricted stock awards released (net of 51,716 shares withheld for taxes). |
Commitments_and_Contingencies_1
Commitments and Contingencies - Future Minimum Lease Payments (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Schedule of future minimum lease payments | |
2015 | $1,806 |
2016 | 1,310 |
2017 | 1,171 |
2018 | 1,050 |
2019 and thereafter | 2,099 |
Operating leases, future minimum payments | $7,436 |
Commitments_and_Contingencies_2
Commitments and Contingencies - Purchase Commitments (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Schedule of future minimum purchase commitments | |
2015 | $5,946 |
2016 | 659 |
2017 | 44 |
Future minimum purchase commitments | $6,649 |
Commitments_and_Contingencies_3
Commitments and Contingencies (Details Textual) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2009 | |
Other Commitments [Line Items] | ||||
Hardware Purchase Obligation | $6,649,000 | |||
Annual Service Fee, 2015 | 700,000 | |||
Annual Service Fee, 2016 | 700,000 | |||
Commitments and Contingencies (Textual) [Abstract] | ||||
Lease expiration date | 30-Jun-17 | |||
Facility lease obligations | 100,000 | |||
Rent expenses for operating leases excluding leases accounted for under the company 's restructuring plan | 2,300,000 | 2,300,000 | 2,400,000 | |
Incremental sales tax liability | 1,300,000 | 1,044,000 | 5,000,000 | |
Interest and penalties | 1,500,000 | |||
Liability for Uncertain Tax Positions, Current | 900,000 | 800,000 | 800,000 | |
Computer Equipment | ||||
Other Commitments [Line Items] | ||||
Accrued Vendor Payable, Due Year Two | 800,000 | |||
Accrued Vendor Payable, Due Year Three | 900,000 | |||
Hardware Purchase Obligation | $400,000 |
Employee_401_Plan_Details
Employee 401 Plan (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Employee 401(k) Plan (Textual) [Abstract] | |||
Employer contributions under 401(k) plan | $0 | $0 | $0 |
Net_Loss_Per_Common_Share_Basi
Net Loss Per Common Share - Basic and Diltuted Net Loss Per Common Share (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Numerator: | |||
Net loss from continuing operations | ($12,205) | ($14,705) | ($5,991) |
Net income from discontinued operations | 19,179 | 2,393 | 1,613 |
Total net income (loss) | $6,974 | ($12,312) | ($4,378) |
Denominator: | |||
Denominator for basic and diluted net loss per common share - weighted average shares outstanding | 62,613,671 | 63,411,162 | 60,711,317 |
Loss from continuing operations | ($0.19) | ($0.23) | ($0.10) |
Income from discontinued operations | $0.30 | $0.04 | $0.03 |
Total net income (loss) per share | $0.11 | ($0.19) | ($0.07) |
Net_Loss_Per_Common_Share_Aver
Net Loss Per Common Share - Average Weighted Shares (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Schedule of anti-dilutive shares excluded from computation of diluted net loss per share | |||
Total | 6,899,728 | 5,944,986 | 4,292,285 |
Options to purchase common stock | |||
Schedule of anti-dilutive shares excluded from computation of diluted net loss per share | |||
Total | 4,703,978 | 3,329,281 | 2,473,024 |
Restricted stock awards, considered participating securities [Member] | |||
Schedule of anti-dilutive shares excluded from computation of diluted net loss per share | |||
Total | 2,195,750 | 2,615,705 | 1,819,261 |
Net_Loss_Per_Common_Share_Deta
Net Loss Per Common Share (Details Textual) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net Loss Per Common Share (Textual) [Abstract] | ||||
Weighted-average exercise price of options | $1.64 | $1.89 | $1.85 | $1.82 |
Options to purchase common stock | ||||
Net Loss Per Common Share (Textual) [Abstract] | ||||
Weighted-average exercise price of options | $2.20 | $2.84 | $3.59 |
Segment_and_Geographical_Infor2
Segment and Geographical Information - Summary of Revenue by Geographical Region (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
United States | |||
Summary of revenue by geographical region | |||
Percentage of revenue by geographical region | 35.00% | 37.00% | 41.00% |
EMEA | |||
Summary of revenue by geographical region | |||
Percentage of revenue by geographical region | 48.00% | 49.00% | 44.00% |
Asia Pacific | |||
Summary of revenue by geographical region | |||
Percentage of revenue by geographical region | 15.00% | 13.00% | 14.00% |
Rest of the world | |||
Summary of revenue by geographical region | |||
Percentage of revenue by geographical region | 2.00% | 1.00% | 1.00% |
Segment_and_Geographical_Infor3
Segment and Geographical Information - Additional Information (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Segment | Customer | Segment | |
Customer | Country | Country | |
Country | Segment | Customer | |
Segment and Geographical Information (Textual) [Abstract] | |||
Percentage of total revenue by individual customer | 10.00% | 10.00% | 10.00% |
Segment and Geographical Information (Additional Textual) [Abstract] | |||
Number of reportable operating Segments | 2 | 2 | 2 |
Number of individual customer | 0 | 0 | 0 |
Number of individual country customer | 0 | 0 | 0 |
Inter-Segment sale or transfer | $0 | $0 | |
United States | |||
Segment and Geographical Information (Textual) [Abstract] | |||
Percentage of total revenue by individual customer | 10.00% | 10.00% | 10.00% |
United Kingdom | |||
Segment and Geographical Information (Textual) [Abstract] | |||
Percentage of total revenue by individual customer | 9.00% | 9.00% | |
Revenue | GERMANY | |||
Segment and Geographical Information (Textual) [Abstract] | |||
Percentage of total revenue by individual customer | 15.00% | 11.00% | 9.00% |
Revenue | United Kingdom | |||
Segment and Geographical Information (Textual) [Abstract] | |||
Percentage of total revenue by individual customer | 11.00% | 13.00% | 12.00% |
Divestiture_of_Business_Segmen2
Divestiture of Business Segment - Schedule of Discontinued Income (Details) (iPass Unity, USD $) | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
iPass Unity | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Revenue | $15,458 | $33,386 | $33,548 | ||
Income (loss) from discontinued operations before income taxes | 1,506 | 3,744 | 2,524 | ||
Gain on sale of discontinued operations before income taxes | 25,000 | 25,014 | 0 | 0 | |
Provision for income taxes | -7,341 | -7,300 | -1,351 | -911 | |
Income from discontinued operations, net of tax | $19,179 | $2,393 | $1,613 |
Divestiture_of_Business_Segmen3
Divestiture of Business Segment - Narrative (Details) (iPass Unity, USD $) | 1 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | |
iPass Unity | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Consideration for sale of business | $28,100,000 | |||||
Accrued Transaction Costs for Disposition of Business | 2,200,000 | |||||
Gain on sale of business | 25,000,000 | 25,014,000 | 0 | 0 | ||
Contingent liability on sale of business | 1,400,000 | |||||
Discontinued Operation, Tax Effect of Income (Loss) from Disposal of Discontinued Operation | 7,341,000 | 7,300,000 | 1,351,000 | 911,000 | ||
Discontinued Operation, Tax Effect of Recognition of Operating Loss Carryforward from Disposal of Discontinued Operation | $7,100,000 | $800,000 | $300,000 |
Schedule_II_Valuation_and_Qual1
Schedule II - Valuation and Qualifying Accounts Receivable (Details) (Allowance for doubtful accounts, USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Allowance for doubtful accounts | |||
VALUATION AND QUALIFYING ACCOUNTS RECEIVABLE | |||
Balance at Beginning of Year | $1,010 | $1,173 | $1,605 |
Additions Charged to (recovered from) Costs and Expenses | -169 | 134 | -66 |
Deductions | 669 | 297 | 366 |
Balance at End of Year | $172 | $1,010 | $1,173 |
Uncategorized_Items
Uncategorized Items | 1/1/2013 - 3/31/2013 |
USD ($) | |
[us-gaap_StockIssuedDuringPeriodValueStockOptionsExercised] | 1,274,000 |