Document and Entity Information
Document and Entity Information | 6 Months Ended |
Jun. 30, 2016shares | |
Document and Entity Information [Abstract] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | Jun. 30, 2016 |
Document Fiscal Year Focus | 2,016 |
Document Fiscal Period Focus | Q2 |
Entity Registrant Name | IPASS INC |
Entity Central Index Key | 1,053,374 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Accelerated Filer |
Entity Common Stock, Shares Outstanding | 65,613,025 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 16,138 | $ 20,294 |
Accounts receivable, net of allowance for doubtful accounts of $304 and $241, respectively | 11,446 | 9,746 |
Prepaid expenses | 1,585 | 2,762 |
Other current assets | 255 | 342 |
Total current assets | 29,424 | 33,144 |
Property and equipment, net | 2,771 | 4,009 |
Other assets | 708 | 690 |
Total assets | 32,903 | 37,843 |
Current liabilities: | ||
Accounts payable | 6,824 | 6,291 |
Accrued liabilities | 4,015 | 5,356 |
Deferred revenue, short-term | 2,114 | 2,321 |
Total current liabilities | 12,953 | 13,968 |
Deferred revenue, long-term | 186 | 231 |
Vendor financed property and equipment | 0 | 0 |
Other long-term liabilities | 1,088 | 1,043 |
Total liabilities | 14,227 | 15,242 |
Stockholders’ equity: | ||
Common stock | 65 | 65 |
Additional paid-in capital | 221,163 | 219,981 |
Accumulated deficit | (202,552) | (197,445) |
Total stockholders’ equity | 18,676 | 22,601 |
Total liabilities and stockholders’ equity | $ 32,903 | $ 37,843 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 81 | $ 172 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Revenue | $ 16,497 | $ 15,595 | $ 31,228 | $ 32,153 |
Cost of revenue and operating expenses: | ||||
Network access costs | 8,466 | 7,038 | 15,908 | 13,713 |
Network operations | 1,780 | 2,510 | 3,878 | 5,460 |
Research and development | 1,762 | 2,494 | 3,902 | 5,492 |
Sales and marketing | 2,895 | 2,384 | 5,732 | 5,566 |
General and administrative | 2,765 | 3,971 | 5,755 | 8,207 |
Restructuring charges and related adjustments | 30 | 3,242 | 788 | 3,263 |
Total cost of revenue and operating expenses | 17,698 | 21,639 | 35,963 | 41,701 |
Operating loss | (1,201) | (6,044) | (4,735) | (9,548) |
Interest income (expense), net | 6 | (17) | 11 | (38) |
Foreign exchange gain (loss), net | (120) | (118) | (230) | 71 |
Other loss, net | 0 | (129) | 0 | (133) |
Loss from continuing operations before income taxes | (1,315) | (6,308) | (4,954) | (9,648) |
Provision for income taxes | 62 | 67 | 153 | 167 |
Total net loss | (1,377) | (6,375) | (5,107) | (9,815) |
Total comprehensive net loss | $ (1,377) | $ (6,375) | $ (5,107) | $ (9,815) |
Total net loss per share - basic and diluted | ||||
Total net income (loss) per share (USD per share) | $ (0.02) | $ (0.10) | $ (0.08) | $ (0.16) |
Weighted average shares outstanding - basic and diluted | 63,452,673 | 62,894,746 | 63,430,412 | 62,885,169 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Cash flows from operating activities: | ||
Net loss | $ (5,107) | $ (9,815) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Stock-based compensation (benefit) expense | 492 | (633) |
Depreciation and amortization | 1,371 | 1,477 |
Loss on disposal of property and equipment | 0 | 4 |
Provision for (Recovery of) doubtful accounts | 36 | (92) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (1,736) | (273) |
Prepaid expenses and other current assets | 1,264 | 291 |
Other assets | (18) | 221 |
Accounts payable | 531 | (1,154) |
Accrued liabilities | (774) | 1,133 |
Deferred revenue | (252) | 1,557 |
Other liabilities | 45 | (31) |
Net cash used in operating activities | (4,148) | (7,315) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (131) | (467) |
Increase (Decrease) of Restricted Investments | 1,400 | |
Net cash used in investing activities | (131) | 933 |
Cash flows from financing activities: | ||
Net proceeds from issuance of common stock | 1,035 | 66 |
Principal payments for vendor financed property and equipment | (567) | (552) |
Stock Issued During Period, Shares, Employee Stock Purchase Plans | ||
Stock Repurchase | (345) | 0 |
Net cash used in financing activities | 123 | (486) |
Net decrease in cash and cash equivalents | (4,156) | (6,868) |
Cash and cash equivalents at beginning of period | 20,294 | |
Cash and cash equivalents at end of period | 16,138 | |
Supplemental disclosures of cash flow information: | ||
Net cash paid for taxes | 108 | 42 |
Accrued amounts for acquisition of property and equipment | $ 11 | $ 99 |
Basis of Presentation and Recen
Basis of Presentation and Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Recent Accounting Pronouncements | Basis of Presentation and Recent Accounting Pronouncements Basis of Presentation The Condensed Consolidated Financial Statements include the accounts of iPass Inc. and its wholly owned subsidiaries ("iPass" and the “Company”). The Condensed Consolidated Financial Statements that accompany these notes have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) consistent in all material respects with those applied in the Company’s Annual Report on Form 10-K as of and for the year ended December 31, 2015. The Condensed Consolidated Financial Statements as of and for December 31, 2015, were derived from audited financial statements but do not include all disclosures required by GAAP. The interim financial information is unaudited but reflects all normal adjustments that are, in the opinion of management, necessary to provide a fair presentation for the interim periods presented. This interim financial information should be read in conjunction with the Consolidated Financial Statements and the Notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. The results of operations for the three and six months ended June 30, 2016 are not necessarily indicative of the operating results for the full fiscal year or any future periods. The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and judgments that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results that the Company experiences may differ materially from those estimates. Estimates are used for, but not limited to, the valuation of accounts receivables, other long-lived assets, recognition of deferred revenue, network access costs, stock-based compensation, legal contingencies, and income taxes. The Company reports total comprehensive net loss in a single continuous financial statement within its Condensed Consolidated Statements of Operations and Comprehensive Loss. The Company’s comprehensive net loss is equivalent to its total net loss because the Company does not have any transactions that are recorded through other comprehensive loss. Recent Accounting Pronouncements In May 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-12, “Revenue from Contracts with Customers - Narrow-Scope Improvements and Practical Expedients.” This Update provides clarifying guidance regarding the application of ASU No. 2014-09 - Revenue From Contracts with Customers on assessing the collectability criterion, presentation of sales taxes, measurement date for non-cash consideration and completed contracts at transition. The Update is effective, along with ASU 2014-09, for annual and interim periods beginning after December 15, 2017. The Company is currently evaluating the potential impact of adopting this guidance on its financial statements. |
Financial Instruments and Fair
Financial Instruments and Fair Value | 6 Months Ended |
Jun. 30, 2016 | |
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 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and • Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The recurring fair value measurements of these financial assets (excluding cash) were determined using the following inputs at June 30, 2016 , and December 31, 2015 , respectively: As of June 30, 2016 As of December 31, 2015 Fair Value Measured Using Total Balance Fair Value Measured Using Total Balance Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 (In thousands) Financial assets Money market funds (1) $ 14,048 $ — $ — $ 14,048 $ 18,021 $ — $ — $ 18,021 Total financial assets $ 14,048 $ — $ — $ 14,048 $ 18,021 $ — $ — $ 18,021 (1) Held in cash and cash equivalents on the Company’s condensed consolidated balance sheets. There were no transfers between Levels 1, 2, and 3 from December 31, 2015 through June 30, 2016 . As of June 30, 2016 and December 31, 2015 , the carrying amounts of accounts receivable, accounts payable, and accrued liabilities approximated fair value due to their short maturities (refer to Note 6 and 7 for discussion related to Accrued Restructuring and Vendor Financed Property and Equipment). |
Property and Equipment, Net
Property and Equipment, Net | 6 Months Ended |
Jun. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and Equipment, net Property and equipment, net, consisted of the following: June 30, December 31, 2015 (In thousands) Equipment $ 10,473 $ 10,431 Furniture and fixtures 378 378 Computer software 9,900 9,894 Construction in progress 55 10 Leasehold improvements 536 526 21,342 21,239 Less: Accumulated depreciation and amortization (18,571 ) (17,230 ) Property and equipment, net $ 2,771 $ 4,009 For the three and six months ended June 30, 2016, depreciation expense was approximately $0.7 million and $1.4 million , respectively. For the three and six months ended June 30, 2015, depreciation expense was approximately $0.7 million and $1.5 million , respectively. During the three and six months ended June 30, 2016, the Company retired less than $0.1 million of gross property and equipment, respectively. During the three and six months ended June 30, 2015, the Company retired approximately $1.7 million and $2.2 million of gross property equipment, respectively, all of which were nearly fully depreciated. |
Other Assets
Other Assets | 6 Months Ended |
Jun. 30, 2016 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | Other Assets Other assets (non-current) consisted of the following: June 30, 2016 December 31, 2015 (In thousands) Deposits $ 489 $ 470 Long-term deferred tax assets, net 219 220 $ 708 $ 690 |
Accrued Liabilities
Accrued Liabilities | 6 Months Ended |
Jun. 30, 2016 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued Liabilities Accrued liabilities consisted of the following: June 30, December 31, 2015 (In thousands) Accrued tax liabilities $ 929 $ 1,065 Accrued restructuring liabilities (1) 11 250 Accrued bonus, commissions and other employee benefits 1,260 1,168 Accrued vendor financed property and equipment (2) — 572 Amounts due to customers 668 728 Other accrued liabilities 1,147 1,573 $ 4,015 $ 5,356 (1) See Note 6 "Accrued Restructuring" (2) See Note 7 "Vendor Financed Property and Equipment" |
Accrued Restructuring
Accrued Restructuring | 6 Months Ended |
Jun. 30, 2016 | |
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 September 30, 2015, the Company completed all of the related payments associated with the 2009 Plans. 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 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 in the third quarter of 2014, and as of September 30, 2015 the Company has completed all of the related payments associated with the Q3 2014 Plan. During the second quarter of 2015, the Company announced a restructuring plan (the "Q2 2015 Plan") intended to flatten the organization, create a more nimble sales and delivery infrastructure to support a SaaS go to market strategy, and accelerate the cash flow break-even point for the Company. The Q2 2015 Plan reduced headcount globally by approximately 14% and the Company recorded approximately $4.2 million of restructuring charges in 2015 and had less than $0.1 million of payments remaining as of June 30, 2016 for employee termination costs. During the first quarter of 2016, the Company announced a restructuring plan (the "Q1 2016 Plan") with the stated purpose to achieve Adjusted EBITDA profitability in 2016. The Q1 2016 Plan reduced headcount globally by 57 employees, or 30% of the workforce, and primarily eliminated positions in engineering and network operations groups, including a significant rightsizing of the India team. Both teams have and will continue to automate infrastructure, quality assurance, and agile processes, which should minimize the impact of this event. This resulted in a charge of approximately $0.8 million in 2016, and had less than $0.1 million of payments remaining as of June 30, 2016 for employee termination costs. The following is a rollforward of restructuring liability for the Plans: Three Months Ended June 30, 2016 2015 (In thousands) Beginning balance $ 379 $ 75 Restructuring charges and related adjustments 30 3,242 Payments and adjustments (398 ) (1,484 ) Ending balance $ 11 $ 1,833 Six Months Ended June 30, 2016 2015 (In thousands) Beginning balance $ 249 $ 160 Restructuring charges and related adjustments 788 3,263 Payments and adjustments (1,026 ) (1,590 ) Ending balance $ 11 $ 1,833 As of June 30, 2016, the balance primarily represents remaining employee termination obligations, the majority of which are expected to be paid in the third quarter of 2016. There is no long-term restructuring liability as of June 30, 2016. |
Vendor Financed Property and Eq
Vendor Financed Property and Equipment | 6 Months Ended |
Jun. 30, 2016 | |
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 payable over three years. In April 2014, the Company acquired additional enterprise infrastructure hardware which was financed through the vendor and is payable over two years. The total purchases financed by the vendor were approximately $3.1 million . Since October 2013, the Company made approximately $2.8 million of principal payments, and as of June 30, 2016, approximately $0.3 million were recorded to accounts payable. The Company expects to make principal payments of $0.3 million in the remainder of fiscal year 2016. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Lease and Purchase Commitments The Company leases facilities under operating leases that expire at various dates through October 2020. Future minimum lease payments under these operating leases as of June 30, 2016, are as follows: Year Operating Leases (In thousands) Remainder of 2016 $ 849 2017 1,486 2018 1,096 2019 1,082 2020 926 $ 5,439 The Company has contracts with certain network service providers which have minimum purchase commitments that expire on various dates through August 2018 . Future minimum purchase commitments as of June 30, 2016, under all agreements are as follows: Year Minimum Purchase Commitments (In thousands) Remainder of 2016 $ 5,166 2017 8,170 2018 1,848 $ 15,184 During the three months ended June 30, 2016, the Company engaged in two new contracts from network service providers totaling an increase of $7.5 million in minimum commitments. Unclaimed Property Compliance The Company has received notices from several states stating that they have appointed an agent to conduct an examination of the books and records of the Company to determine whether it has complied with state unclaimed property laws. In addition to seeking the turnover of unclaimed property subject to escheat laws, the states may seek interest, penalties, costs of examinations, and other relief. If the potential loss from any payment 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, the Company is not able to estimate the possible payment, if any, due to the early stages of this matter. Legal Proceedings The Company is involved in legal proceedings and claims arising in the ordinary course of business. While there can be no assurances as to the ultimate outcome of any litigation involving the Company, management does not believe any such pending legal proceeding or claim will result in a judgment or settlement that would have a material adverse effect on the Company’s financial position, results of operations or cash flows. In the ordinary course of business, the Company may provide indemnifications of varying scope and terms to customers, business partners, and other parties with respect to certain matters, including, but not limited to, losses arising out of breach of such agreements, services to be provided by the Company, or from intellectual property infringement claims made by third-parties. Certain indemnification agreements may not be subject to maximum loss clauses. If the potential loss from any indemnification claim is considered probable and the amount or the range of the loss can be estimated, the Company accrues a liability for the estimated loss. To date, claims under such indemnification provisions have not been significant. |
Net Income (Loss) Per Common Sh
Net Income (Loss) Per Common Share | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Common Share | Net Loss Per Share Basic net loss per common share is computed by dividing net loss available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted net loss per common share is computed by dividing net loss available to common shareholders by the weighted average number of common shares outstanding plus dilutive potential common shares as determined using the treasury stock method for outstanding stock options, restricted stock-based awards and shares issuable under the employee stock purchase plan, unless the result of adding such shares would be anti-dilutive. Unvested participating securities are included in the weighted daily average number of shares outstanding used in the calculation of diluted net income per common share, but are excluded from the calculation of diluted net loss per share. In a net loss position, basic and diluted net loss per common share are equal, since the weighted average number of shares used to compute diluted net loss per common share excludes anti-dilutive securities, including participating securities. As a result of the Company’s net loss for the three months ended June 30, 2016 and 2015, we have excluded all potential shares of common stock from the diluted net loss per share calculation as their inclusion would have had an anti-dilutive effect. The following table sets forth the computation of basic and diluted net income (loss) per share: Three Months Ended Six Months Ended 2016 2015 2016 2015 (In thousands, except share and per share amounts) Numerator: Net loss $ (1,377 ) $ (6,375 ) $ (5,107 ) $ (9,815 ) Denominator: Weighted average shares outstanding - basic and diluted 63,452,673 62,894,746 63,430,412 62,885,169 Total loss per share - basic and diluted: Total net loss per share $ (0.02 ) $ (0.10 ) $ (0.08 ) $ (0.16 ) The following weighted average potential shares of common stock have been excluded from the computation of diluted net loss per share because the effect of including these shares would have been anti-dilutive: Three Months Ended Six Months Ended 2016 2015 2016 2015 Options to purchase common stock 9,211,366 7,108,287 8,772,610 6,400,939 Restricted stock awards, including participating securities 245,832 2,642,500 265,832 1,907,500 Total 9,457,198 9,750,787 9,038,442 8,308,439 |
Segment and Geographical Inform
Segment and Geographical Information | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment and Geographical Information | Segment and Geographical Information The following table presents comparative percent of Company revenue by country or by geographic region. Mobility Services Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 United States 44 % 40 % 43 % 39 % EMEA 43 % 52 % 44 % 51 % Asia Pacific 12 % 7 % 12 % 9 % Rest of the World 1 % 1 % 1 % 1 % For the three and six months ended June 30, 2016, the countries that accounted for 10% of more of our total revenues on a geographical basis were the United States and Germany. Revenues in Germany represented 14% for both of the three and six months period ended June 30, 2016 and the US represented 44% and 43% , respectively. One customer, a channel reseller, represented 11% of total revenues for the three and six months ended June 30, 2016. For the three months ended June 30, 2015, the United States, Germany and the United Kingdom represented 40% , 15% and 10% of total revenue, respectively. For the six months ended June 30, 2015, the United States, Germany and the United Kingdom represented 39% , 15% and 10% of total revenue, respectively. One customer, a channel reseller, represented 10% for the three months ended June 30, 2015. Substantially all of the Company’s long-lived assets are located in the United States. |
Stock Repurchase Program
Stock Repurchase Program | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Stock Repurchase Program | Stock Repurchase Program On November 3, 2015, the Company’s Board of Directors authorized a share repurchase program of up to $3.0 million of the Company’s common stock beginning in the fourth quarter of 2015. Under the repurchase program, the Company is authorized to repurchase shares through open market purchases, in accordance with applicable federal securities laws, including through trading plans under Rule 10b5-1 of the Securities and Exchange Act of 1934. The repurchase program shall run through December 31, 2016, unless earlier completed or terminated by the Board of Directors. The number of shares to be purchased and the timing of purchases are based on general business and market conditions, and other factors, including legal requirements. No shares had been repurchased under the repurchase program during the fourth quarter of 2015. On February 25, 2016, the Company established a 10b5-1 plan for repurchases under the repurchase program and started acquiring stock under this plan. During the six months ending June 30, 2016, the Company repurchased 339,228 shares for $345,296 under the repurchase program, for an average price of $1.02 per share. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Management has evaluated events subsequent to June 30, 2016 through the date the accompanying consolidated financial statements were filed with the Securities and Exchange Commission for transactions and other events that may require adjustment of and/or disclosure in such financial statements, and noted no additional significant subsequent event that needs to be disclosed. |
Basis of Presentation and Rec18
Basis of Presentation and Recent Accounting Pronouncements (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-12, “Revenue from Contracts with Customers - Narrow-Scope Improvements and Practical Expedients.” This Update provides clarifying guidance regarding the application of ASU No. 2014-09 - Revenue From Contracts with Customers on assessing the collectability criterion, presentation of sales taxes, measurement date for non-cash consideration and completed contracts at transition. The Update is effective, along with ASU 2014-09, for annual and interim periods beginning after December 15, 2017. The Company is currently evaluating the potential impact of adopting this guidance on its financial statements. |
Financial Instruments and Fai19
Financial Instruments and Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Assets (Excluding Cash) and Financial Liabilities | The recurring fair value measurements of these financial assets (excluding cash) were determined using the following inputs at June 30, 2016 , and December 31, 2015 , respectively: As of June 30, 2016 As of December 31, 2015 Fair Value Measured Using Total Balance Fair Value Measured Using Total Balance Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 (In thousands) Financial assets Money market funds (1) $ 14,048 $ — $ — $ 14,048 $ 18,021 $ — $ — $ 18,021 Total financial assets $ 14,048 $ — $ — $ 14,048 $ 18,021 $ — $ — $ 18,021 (1) Held in cash and cash equivalents on the Company’s condensed consolidated balance sheets. |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Components of Property and Equipment, Net | Property and equipment, net, consisted of the following: June 30, December 31, 2015 (In thousands) Equipment $ 10,473 $ 10,431 Furniture and fixtures 378 378 Computer software 9,900 9,894 Construction in progress 55 10 Leasehold improvements 536 526 21,342 21,239 Less: Accumulated depreciation and amortization (18,571 ) (17,230 ) Property and equipment, net $ 2,771 $ 4,009 |
Other Assets (Tables)
Other Assets (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Components of Other Assets | Other assets (non-current) consisted of the following: June 30, 2016 December 31, 2015 (In thousands) Deposits $ 489 $ 470 Long-term deferred tax assets, net 219 220 $ 708 $ 690 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consisted of the following: June 30, December 31, 2015 (In thousands) Accrued tax liabilities $ 929 $ 1,065 Accrued restructuring liabilities (1) 11 250 Accrued bonus, commissions and other employee benefits 1,260 1,168 Accrued vendor financed property and equipment (2) — 572 Amounts due to customers 668 728 Other accrued liabilities 1,147 1,573 $ 4,015 $ 5,356 (1) See Note 6 "Accrued Restructuring" (2) See Note 7 "Vendor Financed Property and Equipment" |
Accrued Restructuring (Tables)
Accrued Restructuring (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Restructuring and Related Activities [Abstract] | |
Summary of Accrued Restructuring | The following is a rollforward of restructuring liability for the Plans: Three Months Ended June 30, 2016 2015 (In thousands) Beginning balance $ 379 $ 75 Restructuring charges and related adjustments 30 3,242 Payments and adjustments (398 ) (1,484 ) Ending balance $ 11 $ 1,833 Six Months Ended June 30, 2016 2015 (In thousands) Beginning balance $ 249 $ 160 Restructuring charges and related adjustments 788 3,263 Payments and adjustments (1,026 ) (1,590 ) Ending balance $ 11 $ 1,833 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Lease Payments | The Company leases facilities under operating leases that expire at various dates through October 2020. Future minimum lease payments under these operating leases as of June 30, 2016, are as follows: Year Operating Leases (In thousands) Remainder of 2016 $ 849 2017 1,486 2018 1,096 2019 1,082 2020 926 $ 5,439 |
Schedule of Future Minimum Purchase Commitments | Future minimum purchase commitments as of June 30, 2016, under all agreements are as follows: Year Minimum Purchase Commitments (In thousands) Remainder of 2016 $ 5,166 2017 8,170 2018 1,848 $ 15,184 |
Net Income (Loss) Per Common 25
Net Income (Loss) Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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: Three Months Ended Six Months Ended 2016 2015 2016 2015 (In thousands, except share and per share amounts) Numerator: Net loss $ (1,377 ) $ (6,375 ) $ (5,107 ) $ (9,815 ) Denominator: Weighted average shares outstanding - basic and diluted 63,452,673 62,894,746 63,430,412 62,885,169 Total loss per share - basic and diluted: Total net loss per share $ (0.02 ) $ (0.10 ) $ (0.08 ) $ (0.16 ) |
Schedule of Anti-dilutive Shares Excluded from Computation of Diluted Net Loss Per Share | The following weighted average potential shares of common stock have been excluded from the computation of diluted net loss per share because the effect of including these shares would have been anti-dilutive: Three Months Ended Six Months Ended 2016 2015 2016 2015 Options to purchase common stock 9,211,366 7,108,287 8,772,610 6,400,939 Restricted stock awards, including participating securities 245,832 2,642,500 265,832 1,907,500 Total 9,457,198 9,750,787 9,038,442 8,308,439 |
Segment and Geographical Info26
Segment and Geographical Information (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Summary of Revenue by Geographical Region | Mobility Services Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 United States 44 % 40 % 43 % 39 % EMEA 43 % 52 % 44 % 51 % Asia Pacific 12 % 7 % 12 % 9 % Rest of the World 1 % 1 % 1 % 1 % |
Financial Instruments and Fai27
Financial Instruments and Fair Value - Fair Value of Financial Assets (Excluding Cash) and Financial Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial assets | $ 14,048 | $ 18,021 | |
Money market funds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial assets | [1] | 14,048 | 18,021 |
Fair Value Measurements Recurring | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial assets | 14,048 | 18,021 | |
Fair Value Measurements Recurring | Level 1 | Money market funds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial assets | [1] | 14,048 | 18,021 |
Fair Value Measurements Recurring | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial assets | 0 | 0 | |
Fair Value Measurements Recurring | Level 2 | Money market funds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial assets | [1] | 0 | 0 |
Fair Value Measurements Recurring | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial assets | 0 | 0 | |
Fair Value Measurements Recurring | Level 3 | Money market funds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial assets | [1] | $ 0 | $ 0 |
[1] | Held in cash and cash equivalents on the Company’s condensed consolidated balance sheets. |
Financial Instruments and Fai28
Financial Instruments and Fair Value - Narrative (Detail) | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Fair Value Disclosures [Abstract] | |
Transfers between Levels 1, 2, and 3 | $ 0 |
Property and Equipment, Net - C
Property and Equipment, Net - Components of Property and Equipment, Net (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Abstract] | ||
Equipment | $ 10,473 | $ 10,431 |
Furniture and fixtures | 378 | 378 |
Computer software | 9,900 | 9,894 |
Construction in progress | 55 | 10 |
Leasehold improvements | 536 | 526 |
Property plant and equipment, gross | 21,342 | 21,239 |
Less: Accumulated depreciation and amortization | (18,571) | (17,230) |
Property and equipment, net | $ 2,771 | $ 4,009 |
Property and Equipment, Net - N
Property and Equipment, Net - Narrative (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, wrote-off | $ 0.1 | $ 1.7 | $ 2.2 | |
Continuing Operations | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciation expense | $ 0.7 | $ 0.7 | $ 1.4 | 1.5 |
Discontinued Operations | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciation expense | $ 0.1 |
Other Assets - Components of Ot
Other Assets - Components of Other Assets (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Other Assets [Abstract] | ||
Deposits | $ 489 | $ 470 |
Long-term deferred tax assets, net | 219 | 220 |
Other Assets | $ 708 | $ 690 |
Accrued Liabilities - Schedule
Accrued Liabilities - Schedule of Accrued Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |||
Accrued tax liabilities | $ 929 | $ 1,065 | |
Accrued restructuring liabilities | [1] | 11 | 250 |
Accrued bonus, commissions and other employee benefits | 1,260 | 1,168 | |
Accrued vendor financed property and equipment | [2] | 0 | 572 |
Amounts due to customers | 668 | 728 | |
Other accrued liabilities | 1,147 | 1,573 | |
Accrued liabilities | $ 4,015 | $ 5,356 | |
[1] | See Note 6 "Accrued Restructuring" | ||
[2] | See Note 7 "Vendor Financed Property and Equipment" |
Accrued Restructuring - Narrati
Accrued Restructuring - Narrative (Detail) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||
Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)Employee | Jun. 30, 2015USD ($)Employee | Dec. 31, 2015USD ($) | Dec. 31, 2009Employee | Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) | ||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Accrued Liabilities, Current | $ 4,015,000 | $ 4,015,000 | $ 5,356,000 | |||||||
Restructuring charges | 30,000 | $ 3,242,000 | 788,000 | $ 3,263,000 | ||||||
Restructuring Reserve, Current | [1] | 11,000 | 11,000 | 250,000 | ||||||
Remaining restructuring charges | 11,000 | 1,833,000 | 11,000 | 1,833,000 | 249,000 | $ 379,000 | $ 75,000 | $ 160,000 | ||
Payments for Restructuring | (398,000) | $ (1,484,000) | (1,026,000) | $ (1,590,000) | ||||||
2009 Plans | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring plan, number of positions | Employee | 146 | |||||||||
Q3 2014 Plan | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring plan, number of positions | Employee | 20 | |||||||||
Restructuring charges | $ 700,000 | |||||||||
Q2 2015 Plan | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring charges | $ 4,200,000 | |||||||||
Restructuring Reserve, Current | $ 0.1 | $ 0.1 | ||||||||
Reduction in headcount, percent | 14.00% | |||||||||
Two Thousand Sixteen Q1 Restructuring Plan [Member] [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring plan, number of positions | Employee | 57 | |||||||||
Restructuring charges | $ 0 | |||||||||
Restructuring Reserve, Current | $ 0.1 | $ 0.1 | ||||||||
Reduction in headcount, percent | 30.00% | |||||||||
[1] | See Note 6 "Accrued Restructuring" |
Accrued Restructuring - Summary
Accrued Restructuring - Summary of Accrued Restructuring (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Restructuring and Related Activities [Abstract] | |||||
Beginning balance | $ 379 | $ 75 | $ 249 | $ 160 | $ 160 |
Restructuring charges and related adjustments | 30 | 3,242 | 788 | 3,263 | |
Payments | (398) | (1,484) | (1,026) | (1,590) | |
Ending balance | $ 11 | $ 1,833 | $ 11 | $ 1,833 | $ 249 |
Vendor Financed Property and 35
Vendor Financed Property and Equipment - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | |||
Apr. 30, 2014 | Oct. 31, 2013 | Jun. 30, 2016 | Dec. 31, 2015 | ||
Property, Plant and Equipment [Line Items] | |||||
Vendor financed property and equipment repayment period | 2 years | 3 years | |||
Accounts Payable, Current | $ 6,824 | $ 6,291 | |||
Accrued vendor financed property and equipment (2) | [1] | 0 | 572 | ||
Vendor financed property and equipment | 0 | $ 0 | |||
Computer Equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Vendor financed computer software and hardware | $ 3,100 | ||||
Repayments of vendor financed equipment obligations | 2,800 | ||||
Accrued vendor financed property and equipment (2) | 0 | ||||
Accrued vendor payable, due 2016 | $ 300 | ||||
[1] | See Note 7 "Vendor Financed Property and Equipment" |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Commitment And Contingencies [Line Items] | |
Purchase commitments expiration period | expire on various dates through August 2018 |
Purchase obligation | $ 15,184 |
Purchase Obligation, Due in Second and Third Year | 0 |
Computer Equipment | |
Commitment And Contingencies [Line Items] | |
Accrued vendor payable, due 2016 | $ 300 |
Commitments and Contingencies37
Commitments and Contingencies - Schedule of Future Minimum Lease Payments (Detail) $ in Thousands | Jun. 30, 2016USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Remainder of 2016 | $ 849 |
2,017 | 1,486 |
2,018 | 1,096 |
2,019 | 1,082 |
2,020 | 926 |
Operating leases, future minimum payments | $ 5,439 |
Commitments and Contingencies38
Commitments and Contingencies - Schedule of Future Minimum Purchase Commitments (Detail) $ in Thousands | Jun. 30, 2016USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Remainder of 2016 | $ 5,166 |
2,017 | 8,170 |
2,018 | 1,848 |
Future minimum purchase commitments | $ 15,184 |
Net Income (Loss) Per Common 39
Net Income (Loss) Per Common Share - Schedule of Computation of Basic and Diluted Net Loss Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Numerator: | ||||
Net loss from continuing operations | $ (1,377) | $ (6,375) | $ (5,107) | $ (9,815) |
Net loss | $ (1,377) | $ (6,375) | $ (5,107) | $ (9,815) |
Denominator: | ||||
Weighted average shares outstanding - basic and diluted | 63,452,673 | 62,894,746 | 63,430,412 | 62,885,169 |
Total loss per share - basic and diluted: | ||||
Continuing operations (USD per share) | $ (0.02) | $ (0.10) | $ (0.08) | $ (0.16) |
Net loss per share (USD per share) | $ (0.02) | $ (0.10) | $ (0.08) | $ (0.16) |
Net Income (Loss) Per Common 40
Net Income (Loss) Per Common Share - Schedule of Anti-Dilutive Shares Excluded from Computation of Diluted Net Loss Per Share (Detail) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total | 9,457,198 | 9,750,787 | 9,038,442 | 8,308,439 |
Options to Purchase Common Stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total | 9,211,366 | 7,108,287 | 8,772,610 | 6,400,939 |
Restricted Stock Awards, Including Participating Securities | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total | 245,832 | 2,642,500 | 265,832 | 1,907,500 |
Segment and Geographical Info41
Segment and Geographical Information - Narrative (Detail) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016Customer | Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2016CustomerSegment | Jun. 30, 2015 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Number of reportable segments | Segment | 1 | ||||
Revenue | Customer Concentration Risk | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Number of individual customer | 1 | ||||
United States | Revenue | Geographic Concentration Risk | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Concentration risk, percentage | 44.00% | 40.00% | 43.00% | 39.00% | |
Germany | Revenue | Geographic Concentration Risk | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Concentration risk, percentage | 43.00% | 14.00% | 15.00% | ||
United Kingdom | Revenue | Geographic Concentration Risk | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Concentration risk, percentage | 10.00% | 10.00% | |||
Customer A | Revenue | Customer Concentration Risk | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Concentration risk, percentage | 11.00% | 10.00% | |||
Number of individual customer | 1 |
Segment and Geographical Info42
Segment and Geographical Information - Summary of Revenue by Geographical Region (Detail) - Revenue - Geographic Concentration Risk | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
United States | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Percentage of revenue by geographical region | 44.00% | 40.00% | 43.00% | 39.00% |
EMEA | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Percentage of revenue by geographical region | 43.00% | 52.00% | 44.00% | 51.00% |
Asia Pacific | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Percentage of revenue by geographical region | 12.00% | 7.00% | 12.00% | 9.00% |
Rest of the World | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Percentage of revenue by geographical region | 1.00% | 1.00% | 1.00% | 1.00% |
Stock Repurchase Program (Detai
Stock Repurchase Program (Details) - November 2015 Share Repurchase Program [Member] - USD ($) | 3 Months Ended | 6 Months Ended | |
Dec. 31, 2015 | Jun. 30, 2016 | Nov. 03, 2015 | |
Equity, Class of Treasury Stock [Line Items] | |||
Authorized amount under Share Repurchase Program | $ 3,000,000 | ||
Treasury stock acquired, shares | 0 | 339,228 | |
Treasury stock acquired, value | $ 345,296 | ||
Treasury stock acquired, average price per share | $ 1.02 |