Ipass (IPAS) 10-Q 8 Nov 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Nov. 01, 2017
Document and Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3
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		66,742,123

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 7,057	$ 16,072
Accounts receivable, net of allowance for doubtful accounts of $113 and $142, respectively	9,576	12,361
Prepaid expenses	1,640	1,344
Other current assets	89	225
Total current assets	18,362	30,002
Property and equipment, net	1,705	2,485
Other assets	708	688
Total assets	20,775	33,175
Current liabilities:
Accounts payable	9,729	7,069
Accrued liabilities	3,512	3,874
Deferred revenue, short-term	2,714	2,412
Total current liabilities	15,955	13,355
Deferred revenue, long-term	108	67
Other long-term liabilities	1,019	1,123
Total liabilities	17,082	14,545
Stockholders’ equity:
Common stock	68	68
Additional paid-in capital	225,082	223,777
Accumulated deficit	(221,457)	(205,215)
Total stockholders’ equity	3,693	18,630
Total liabilities and stockholders’ equity	$ 20,775	$ 33,175

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 113	$ 142

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Statement of Comprehensive Income [Abstract]
Revenue	$ 13,399	$ 15,877	$ 41,159	$ 47,105
Cost of revenue and operating expenses:
Network access costs	10,312	8,452	29,469	24,360
Network operations	1,629	1,838	4,835	5,716
Research and development	1,948	1,628	6,059	5,530
Sales and marketing	2,520	2,651	7,588	8,383
General and administrative	3,427	2,555	8,746	8,310
Restructuring charges and related adjustments	0	0	0	788
Total cost of revenue and operating expenses	19,836	17,124	56,697	53,087
Operating loss	(6,437)	(1,247)	(15,538)	(5,982)
Interest income, net	8	12	36	23
Foreign exchange loss, net	(173)	(45)	(351)	(275)
Loss before provision for income taxes	(6,602)	(1,280)	(15,853)	(6,234)
Provision for income taxes	56	61	389	214
Net loss	(6,658)	(1,341)	(16,242)	(6,448)
Comprehensive loss	$ (6,658)	$ (1,341)	$ (16,242)	$ (6,448)
Net loss per share - basic and diluted
Total net income (loss) per share (USD per share)	$ (0.10)	$ (0.02)	$ (0.25)	$ (0.10)
Weighted average shares outstanding - basic and diluted	65,878,405	64,546,665	65,683,241	63,893,371

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash flows from operating activities:
Net loss	$ (16,242)	$ (6,448)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation expense	1,041	776
Depreciation and amortization	1,144	1,989
Provision for doubtful accounts	146	(13)
Changes in operating assets and liabilities:
Accounts receivable	2,639	(989)
Prepaid expenses and other current assets	(160)	1,361
Other assets	(20)	(18)
Accounts payable	3,033	(382)
Accrued liabilities	(362)	(644)
Deferred revenue	343	11
Other liabilities	(104)	62
Net cash used in operating activities	(8,542)	(4,295)
Cash flows from investing activities:
Purchases of property and equipment	(737)	(299)
Net cash used in investing activities	(737)	(299)
Cash flows from financing activities:
Net proceeds from issuance of common stock	264	2,673
Principal payments for vendor financed property and equipment	0	(854)
Stock repurchase	0	(345)
Net cash provided by financing activities	264	1,474
Net decrease in cash and cash equivalents	(9,015)	(3,120)
Cash and cash equivalents at beginning of period	16,072	20,294
Cash and cash equivalents at end of period	7,057	17,174
Supplemental disclosures of cash flow information:
Net cash paid for taxes	180	194
Accrued amounts for acquisition of property and equipment	$ 0	$ 1

Basis of Presentation and Recen

Basis of Presentation and Recent Accounting Pronouncements	9 Months Ended
	Sep. 30, 2017
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, 2016. The Condensed Consolidated Financial Statements as of and for the year ended December 31, 2016, 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, 2016. The results of operations for the three and nine months ended September 30, 2017 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. Going Concern The accompanying financial statements were prepared on a going concern basis in accordance with GAAP. The going concern basis of presentation assumes that the Company will continue in operation for the next twelve months from the date the financial statements are issued and will be able to realize its assets and discharge its liabilities and commitments in the normal course of business and does not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the Company’s inability to continue as a going concern. The Company’s history of losses, limited liquidity and other factors raise substantial doubt about the Company’s ability to continue as a going concern. In order for the Company to continue operations beyond the next twelve months and be able to discharge its liabilities and commitments in the normal course of business, management is considering the need for additional financing or the implementation of additional cost cutting measures. There can be no assurance that the Company will be able to achieve sustainable profitable operations or obtain additional funds when needed or that such funds, if available, will be obtainable on terms satisfactory to management. Recent Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). ASU 2014-09 requires entities to recognize revenue through the application of a five-step model, which includes identification of the contract, identification of the performance obligations, determination of the transaction price, allocation of the transaction price to the performance obligations and recognition of revenue as the entity satisfies the performance obligations. Subsequently, the FASB issued the following accounting standard updates related to Topic 606, Revenue Contracts with Customers: • ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) in March 2016. ASU 2016-08 does not change the core principle of revenue recognition in Topic 606 but clarifies the implementation guidance on principal versus agent considerations. • ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing in April 2016. ASU 2016-10 does not change the core principle of revenue recognition in Topic 606 but clarifies the implementation guidance on identifying performance obligations and the licensing. • ASUs No. 2016-12 and 2016-20, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients. These ASUs do not change the core principle of revenue recognition in Topic 606 but clarifies the implementation guidance on a few narrow areas and adds some practical expedients to the guidance. The amendments are effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. The Company created an internal implementation team and engaged a third-party advisory firm to assist in the implementation of the new standard. The Company established a two-phase plan and recently completed Phase I which involved a high-level adoption analysis and limited review of contracts with customers and commission agreements. As it begins Phase II, the Company will continue to assess the overall impact the adoption of ASU 2014-09 will have on its consolidated financial statements. At this time, the Company is still determining the best and appropriate method of adoption.

Financial Instruments and Fair

Financial Instruments and Fair Value	9 Months Ended
	Sep. 30, 2017
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 September 30, 2017 , and December 31, 2016 , respectively: As of September 30, 2017 As of December 31, 2016 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) $ 5,661 $ — $ — $ 5,661 $ 14,083 $ — $ — $ 14,083 Total financial assets $ 5,661 $ — $ — $ 5,661 $ 14,083 $ — $ — $ 14,083 (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, 2016 through September 30, 2017 . As of September 30, 2017 and December 31, 2016 , the carrying amounts of accounts receivable, accounts payable, and accrued liabilities approximated fair value due to their short maturities (refer to Note 5 and Note 6 for discussion related to Accrued Restructuring and Vendor Financed Property and Equipment).

Property and Equipment, Net

Property and Equipment, Net	9 Months Ended
	Sep. 30, 2017
Property, Plant and Equipment [Abstract]
Property and Equipment, Net	Property and Equipment, net Property and equipment, net, consisted of the following: September 30, December 31, 2016 (In thousands) Equipment $ 10,785 $ 10,492 Furniture and fixtures 378 378 Computer software 10,719 10,431 Construction in progress 36 303 Leasehold improvements 542 536 22,460 22,140 Less: Accumulated depreciation and amortization (20,755 ) (19,655 ) Property and equipment, net $ 1,705 $ 2,485 For the three months and nine months ended September 30, 2017, depreciation expense was approximately $0.3 million and $1.1 million , respectively. For the three months and nine months ended September 30, 2016, depreciation expense was approximately $0.6 million and $2.0 million , respectively. During the three and nine months ended September 30, 2017, the Company retired less than $0.1 million gross property and equipment. During the three months ended September 30, 2016, the Company did not retire any property and equipment. During the nine months ended September 30, 2016, the Company retired less than $0.1 million gross property and equipment.

Accrued Liabilities

Accrued Liabilities	9 Months Ended
	Sep. 30, 2017
Payables and Accruals [Abstract]
Accrued Liabilities	Accrued Liabilities Accrued liabilities consisted of the following: September 30, December 31, 2016 (In thousands) Accrued tax liabilities $ 886 $ 927 Accrued bonus, commissions and other employee benefits 732 808 Accrued vendor financed software (1) — 373 Amounts due to customers 831 869 Other accrued liabilities 1,063 897 $ 3,512 $ 3,874 (1) See Note 6 "Vendor Financed Property and Equipment"

Accrued Restructuring

Accrued Restructuring	9 Months Ended
	Sep. 30, 2017
Restructuring and Related Activities [Abstract]
Accrued Restructuring	Accrued Restructuring 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 September 30, 2016 for employees termination costs. As of December 31, 2016, the Company had completed all of the related payments associated with Q2 2015 Plan. During the first quarter of 2016, the Company announced a restructuring plan (the "Q1 2016 Plan") with the stated purpose to achieve positive 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 reduction of personnel in the India team. The Company recorded approximately $0.8 million of restructuring charges in 2016 and as of September 30, 2016, the Company had completed all of the related payments associated with Q1 2016 Plan. The following is a rollforward of restructuring liability for the Plans: Three Months Ended September 30, 2017 2016 (In thousands) Beginning balance $ — $ 11 Restructuring charges and related adjustments — — Payments and adjustments — (10 ) Ending balance $ — $ 1 Nine Months Ended September 30, 2017 2016 (In thousands) Beginning balance $ — $ 250 Restructuring charges and related adjustments — 788 Payments and adjustments — (1,037 ) Ending balance $ — $ 1

Vendor Financed Property and Eq

Vendor Financed Property and Equipment	9 Months Ended
	Sep. 30, 2017
Property, Plant and Equipment [Abstract]
Vendor Financed Property and Equipment	Vendor Financed Property and Equipment In October 2013, the Company acquired enterprise database software (under a term unlimited license agreement) and infrastructure hardware. This purchase was financed through a vendor and was payable over three years. In April 2014, the Company acquired additional enterprise infrastructure hardware which was financed through the vendor and was payable over two years. The total purchases financed by the vendor were approximately $3.1 million . All payments were completed in fiscal year 2016. In October 2016, the Company extended the license related to the previously acquired software for approximately $0.5 million to be paid over one year. Since October 2016, the Company made approximately $0.5 million of principal payments, and as of September 30, 2017, all payments were completed.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2017
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 September 30, 2017, are as follows: Year Operating Leases (In thousands) Remainder of 2017 $ 414 2018 1,330 2019 1,184 2020 926 $ 3,854 The Company has contracts with certain network service and other infrastructure providers which have minimum purchase commitments that expire on various dates through December 2019 . Future minimum purchase commitments under these agreements as of September 30, 2017, are as follows: Year Minimum Purchase Commitments (In thousands) Remainder of 2017 $ 8,401 2018 6,926 2019 417 $ 15,744 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 Loss Per Share

Net Loss Per Share	9 Months Ended
	Sep. 30, 2017
Earnings Per Share [Abstract]
Net Loss Per 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 and nine months ended September 30, 2017 and 2016, the Company has 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 loss per share: Three Months Ended Nine Months Ended 2017 2016 2017 2016 (In thousands, except share and per share amounts) (In thousands, except share and per share amounts) Numerator: Net loss $ (6,658 ) $ (1,341 ) $ (16,242 ) $ (6,448 ) Denominator: Weighted average shares outstanding - basic and diluted 65,878,405 64,546,665 65,683,241 63,893,371 Total loss per share - basic and diluted: Total net loss per share $ (0.10 ) $ (0.02 ) $ (0.25 ) $ (0.10 ) 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 Nine Months Ended 2017 2016 2017 2016 Options to purchase common stock 9,254,623 4,736,258 6,299,980 6,447,978 Restricted stock awards, including participating securities 202,498 219,164 215,831 265,832 Total 9,457,121 4,955,422 6,515,811 6,713,810

Segment and Geographical Inform

Segment and Geographical Information	9 Months Ended
	Sep. 30, 2017
Segment Reporting [Abstract]
Segment and Geographical Information	Segment and Geographical Information The following table presents total Company revenue by country or by geographical region: Three Months Ended September 30, Nine Months Ended 2017 2016 2017 2016 United States 48 % 43 % 46 % 43 % Europe, Middle East and Africa 44 % 44 % 44 % 44 % Asia Pacific 4 % 11 % 6 % 12 % Rest of the World 4 % 2 % 4 % 1 % For the three months and nine months ended September 30, 2017, the United States represented 48% and 46% of revenue, respectively, and Germany represented 16% and 15% respectively. One customer, a channel reseller, represented 10% of total revenues for the nine months ended September 30, 2017. For the three months and nine months ended September 30, 2016, the United States represented 43% of revenue for both periods, and Germany represented 13% and 14% respectively. One customer, a channel reseller, represented 10% of total revenues for the nine months ended September 30, 2016. Substantially all of the Company’s long-lived assets are located in the United States.

Stock Repurchase Program

Stock Repurchase Program	9 Months Ended
	Sep. 30, 2017
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 was 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 ran through December 31, 2016. The number of shares repurchased and the timing of purchases were based on general business and market conditions, and other factors, including legal requirements

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2017
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events Management has evaluated events subsequent to September 30, 2017, 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 Rec17

Basis of Presentation and Recent Accounting Pronouncements (Policies)	9 Months Ended
	Sep. 30, 2017
Accounting Policies [Abstract]
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). ASU 2014-09 requires entities to recognize revenue through the application of a five-step model, which includes identification of the contract, identification of the performance obligations, determination of the transaction price, allocation of the transaction price to the performance obligations and recognition of revenue as the entity satisfies the performance obligations. Subsequently, the FASB issued the following accounting standard updates related to Topic 606, Revenue Contracts with Customers: • ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) in March 2016. ASU 2016-08 does not change the core principle of revenue recognition in Topic 606 but clarifies the implementation guidance on principal versus agent considerations. • ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing in April 2016. ASU 2016-10 does not change the core principle of revenue recognition in Topic 606 but clarifies the implementation guidance on identifying performance obligations and the licensing. • ASUs No. 2016-12 and 2016-20, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients. These ASUs do not change the core principle of revenue recognition in Topic 606 but clarifies the implementation guidance on a few narrow areas and adds some practical expedients to the guidance. The amendments are effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. The Company created an internal implementation team and engaged a third-party advisory firm to assist in the implementation of the new standard. The Company established a two-phase plan and recently completed Phase I which involved a high-level adoption analysis and limited review of contracts with customers and commission agreements. As it begins Phase II, the Company will continue to assess the overall impact the adoption of ASU 2014-09 will have on its consolidated financial statements. At this time, the Company is still determining the best and appropriate method of adoption.

Financial Instruments and Fai18

Financial Instruments and Fair Value (Tables)	9 Months Ended
	Sep. 30, 2017
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 September 30, 2017 , and December 31, 2016 , respectively: As of September 30, 2017 As of December 31, 2016 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) $ 5,661 $ — $ — $ 5,661 $ 14,083 $ — $ — $ 14,083 Total financial assets $ 5,661 $ — $ — $ 5,661 $ 14,083 $ — $ — $ 14,083 (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)	9 Months Ended
	Sep. 30, 2017
Property, Plant and Equipment [Abstract]
Components of Property and Equipment, Net	Property and equipment, net, consisted of the following: September 30, December 31, 2016 (In thousands) Equipment $ 10,785 $ 10,492 Furniture and fixtures 378 378 Computer software 10,719 10,431 Construction in progress 36 303 Leasehold improvements 542 536 22,460 22,140 Less: Accumulated depreciation and amortization (20,755 ) (19,655 ) Property and equipment, net $ 1,705 $ 2,485

Accrued Liabilities (Tables)

Accrued Liabilities (Tables)	9 Months Ended
	Sep. 30, 2017
Payables and Accruals [Abstract]
Schedule of Accrued Liabilities	Accrued liabilities consisted of the following: September 30, December 31, 2016 (In thousands) Accrued tax liabilities $ 886 $ 927 Accrued bonus, commissions and other employee benefits 732 808 Accrued vendor financed software (1) — 373 Amounts due to customers 831 869 Other accrued liabilities 1,063 897 $ 3,512 $ 3,874 (1) See Note 6 "Vendor Financed Property and Equipment"

Accrued Restructuring (Tables)

Accrued Restructuring (Tables)	9 Months Ended
	Sep. 30, 2017
Restructuring and Related Activities [Abstract]
Summary of Accrued Restructuring	The following is a rollforward of restructuring liability for the Plans: Three Months Ended September 30, 2017 2016 (In thousands) Beginning balance $ — $ 11 Restructuring charges and related adjustments — — Payments and adjustments — (10 ) Ending balance $ — $ 1 Nine Months Ended September 30, 2017 2016 (In thousands) Beginning balance $ — $ 250 Restructuring charges and related adjustments — 788 Payments and adjustments — (1,037 ) Ending balance $ — $ 1

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2017
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 September 30, 2017, are as follows: Year Operating Leases (In thousands) Remainder of 2017 $ 414 2018 1,330 2019 1,184 2020 926 $ 3,854
Schedule of Future Minimum Purchase Commitments	Future minimum purchase commitments under these agreements as of September 30, 2017, are as follows: Year Minimum Purchase Commitments (In thousands) Remainder of 2017 $ 8,401 2018 6,926 2019 417 $ 15,744

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	9 Months Ended
	Sep. 30, 2017
Earnings Per Share [Abstract]
Schedule of Computation of Basic and Diluted Net Loss Per Share	The following table sets forth the computation of basic and diluted net loss per share: Three Months Ended Nine Months Ended 2017 2016 2017 2016 (In thousands, except share and per share amounts) (In thousands, except share and per share amounts) Numerator: Net loss $ (6,658 ) $ (1,341 ) $ (16,242 ) $ (6,448 ) Denominator: Weighted average shares outstanding - basic and diluted 65,878,405 64,546,665 65,683,241 63,893,371 Total loss per share - basic and diluted: Total net loss per share $ (0.10 ) $ (0.02 ) $ (0.25 ) $ (0.10 )
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 Nine Months Ended 2017 2016 2017 2016 Options to purchase common stock 9,254,623 4,736,258 6,299,980 6,447,978 Restricted stock awards, including participating securities 202,498 219,164 215,831 265,832 Total 9,457,121 4,955,422 6,515,811 6,713,810

Segment and Geographical Info24

Segment and Geographical Information (Tables)	9 Months Ended
	Sep. 30, 2017
Segment Reporting [Abstract]
Summary of Revenue by Geographical Region	Three Months Ended September 30, Nine Months Ended 2017 2016 2017 2016 United States 48 % 43 % 46 % 43 % Europe, Middle East and Africa 44 % 44 % 44 % 44 % Asia Pacific 4 % 11 % 6 % 12 % Rest of the World 4 % 2 % 4 % 1 %

Financial Instruments and Fai25

Financial Instruments and Fair Value - Fair Value of Financial Assets (Excluding Cash) and Financial Liabilities (Detail) - USD ($) $ in Thousands		Sep. 30, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets		$ 5,661	$ 14,083
Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	[1]	5,661	14,083
Fair Value Measurements Recurring | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets		5,661	14,083
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]	5,661	14,083
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 Fai26

Financial Instruments and Fair Value - Narrative (Detail)	9 Months Ended
	Sep. 30, 2017USD ($)
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	Sep. 30, 2017	Dec. 31, 2016
Property, Plant and Equipment [Abstract]
Equipment	$ 10,785	$ 10,492
Furniture and fixtures	378	378
Computer software	10,719	10,431
Construction in progress	36	303
Leasehold improvements	542	536
Property plant and equipment, gross	22,460	22,140
Less: Accumulated depreciation and amortization	(20,755)	(19,655)
Property and equipment, net	$ 1,705	$ 2,485

Property and Equipment, Net - N

Property and Equipment, Net - Narrative (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Property, Plant and Equipment [Line Items]
Property and equipment, wrote-off (less than 0.1 million)	$ 0.1		$ 0.1	$ 0.1
Continuing Operations
Property, Plant and Equipment [Line Items]
Depreciation expense	$ 0.3	$ 0.6	$ 1.1	$ 2

Accrued Liabilities - Schedule

Accrued Liabilities - Schedule of Accrued Liabilities (Detail) - USD ($) $ in Thousands		Sep. 30, 2017	Dec. 31, 2016
Payables and Accruals [Abstract]
Accrued tax liabilities		$ 886	$ 927
Accrued bonus, commissions and other employee benefits		732	808
Accrued vendor financed property and equipment	[1]	0	373
Amounts due to customers		831	869
Other accrued liabilities		1,063	897
Accrued liabilities		$ 3,512	$ 3,874
[1]	See Note 6 "Vendor Financed Property and Equipment"

Accrued Restructuring - Narrati

Accrued Restructuring - Narrative (Detail) $ in Thousands	3 Months Ended			9 Months Ended		12 Months Ended
	Sep. 30, 2017USD ($)	Sep. 30, 2016USD ($)	Jun. 30, 2015	Sep. 30, 2017USD ($)	Sep. 30, 2016USD ($)Employee	Dec. 31, 2015USD ($)	Jun. 30, 2017USD ($)	Dec. 31, 2016USD ($)	Jun. 30, 2016USD ($)	Mar. 31, 2016USD ($)
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 0	$ 0		$ 0	$ 788
Remaining restructuring charges (less than 0.1 million)	$ 0	$ 1		$ 0	$ 1	$ 250	$ 0	$ 0	$ 11
Q2 2015 Plan
Restructuring Cost and Reserve [Line Items]
Reduction in headcount, percent			14.00%
Restructuring charges						$ 4,200
Remaining restructuring charges (less than 0.1 million)										$ 100
Two Thousand Sixteen Q1 Restructuring Plan [Member] [Member]
Restructuring Cost and Reserve [Line Items]
Reduction in headcount, percent		30.00%
Restructuring charges		$ 800
Restructuring plan, number of positions | Employee					57

Accrued Restructuring - Summary

Accrued Restructuring - Summary of Accrued Restructuring (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Restructuring Reserve [Roll Forward]
Beginning balance	$ 0	$ 11	$ 0	$ 250
Restructuring charges and related adjustments	0	0	0	788
Payments	0	(10)	0	(1,037)
Ending balance	$ 0	$ 1	$ 0	$ 1

Vendor Financed Property and 32

Vendor Financed Property and Equipment - Narrative (Details) - USD ($) $ in Millions	1 Months Ended			9 Months Ended
	Oct. 31, 2016	Apr. 30, 2014	Oct. 31, 2013	Sep. 30, 2017
Property, Plant and Equipment [Line Items]
Vendor financed property and equipment repayment period	1 year	2 years	3 years
Computer Equipment
Property, Plant and Equipment [Line Items]
Vendor financed computer software and hardware	$ 0.5		$ 3.1
Repayments of vendor financed equipment obligations				$ 0.5

Commitments and Contingencies -

Commitments and Contingencies - Narrative (Detail)	3 Months Ended
	Sep. 30, 2017
Commitment And Contingencies [Line Items]
Purchase commitments expiration period	expire on various dates through December 2019

Commitments and Contingencies34

Commitments and Contingencies - Schedule of Future Minimum Lease Payments (Detail) $ in Thousands	Sep. 30, 2017USD ($)
Commitments and Contingencies Disclosure [Abstract]
Remainder of 2017	$ 414
2,018	1,330
2,019	1,184
2,020	926
Operating leases, future minimum payments	$ 3,854

Commitments and Contingencies35

Commitments and Contingencies - Schedule of Future Minimum Purchase Commitments (Detail) $ in Thousands	Sep. 30, 2017USD ($)
Commitments and Contingencies Disclosure [Abstract]
Remainder of 2017	$ 8,401
2,018	6,926
2,019	417
Future minimum purchase commitments	$ 15,744

Net Loss Per Share - Schedule o

Net Loss Per Share - Schedule of Computation of Basic and Diluted Net Loss Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Numerator:
Net loss	$ (6,658)	$ (1,341)	$ (16,242)	$ (6,448)
Denominator:
Weighted average shares outstanding - basic and diluted	65,878,405	64,546,665	65,683,241	63,893,371
Total loss per share - basic and diluted:
Continuing operations (USD per share)	$ (0.10)	$ (0.02)	$ (0.25)	$ (0.10)

Net Loss Per Share - Schedule37

Net Loss Per Share - Schedule of Anti-Dilutive Shares Excluded from Computation of Diluted Net Loss Per Share (Detail) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	9,457,121	4,955,422	6,515,811	6,713,810
Options to Purchase Common Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	9,254,623	4,736,258	6,299,980	6,447,978
Restricted Stock Awards, Including Participating Securities
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	202,498	219,164	215,831	265,832

Segment and Geographical Info38

Segment and Geographical Information - Narrative (Detail)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017Customer	Sep. 30, 2016CustomerSegment
Revenues from External Customers and Long-Lived Assets [Line Items]
Number of reportable segments | Segment				1
United States | Revenue | Geographic Concentration Risk
Revenues from External Customers and Long-Lived Assets [Line Items]
Concentration risk, percentage	48.00%	43.00%	46.00%	43.00%
Germany | Revenue | Geographic Concentration Risk
Revenues from External Customers and Long-Lived Assets [Line Items]
Concentration risk, percentage	16.00%	13.00%	15.00%	14.00%
Customer A | Revenue | Customer Concentration Risk
Revenues from External Customers and Long-Lived Assets [Line Items]
Number of individual customer | Customer			1	1

Segment and Geographical Info39

Segment and Geographical Information - Summary of Revenue by Geographical Region (Detail) - Revenue - Geographic Concentration Risk	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Percentage of revenue by geographical region	48.00%	43.00%	46.00%	43.00%
EMEA
Revenues from External Customers and Long-Lived Assets [Line Items]
Percentage of revenue by geographical region	44.00%	44.00%	44.00%	44.00%
Asia Pacific
Revenues from External Customers and Long-Lived Assets [Line Items]
Percentage of revenue by geographical region	4.00%	11.00%	6.00%	12.00%
Rest of the World
Revenues from External Customers and Long-Lived Assets [Line Items]
Percentage of revenue by geographical region	4.00%	2.00%	4.00%	1.00%

Stock Repurchase Program (Detai

Stock Repurchase Program (Details) - November 2015 Share Repurchase Program [Member] - USD ($)	9 Months Ended
	Sep. 30, 2017	Sep. 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		339,228
Treasury stock acquired, value		$ 345,296
Treasury stock acquired, average price per share	$ 1.02