Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Jul. 31, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | BSQR | |
Entity Registrant Name | BSQUARE CORP /WA | |
Entity Central Index Key | 1,054,721 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 12,605,085 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 9,468 | $ 14,312 |
Short-term investments | 17,828 | 18,888 |
Accounts receivable, net of allowance for doubtful accounts of $50 at June 30, 2017 and December 31, 2016 | 17,949 | 21,579 |
Prepaid expenses and other current assets | 1,196 | 878 |
Contract assets | 636 | |
Total current assets | 47,077 | 55,657 |
Equipment, furniture and leasehold improvements, net | 1,077 | 1,089 |
Deferred tax assets | 6 | 7 |
Intangible assets, net | 415 | 464 |
Goodwill | 3,738 | 3,738 |
Other non-current assets including contract assets | 82 | 53 |
Total assets | 52,395 | 61,008 |
Current liabilities: | ||
Third-party software fees payable | 9,083 | 14,831 |
Accounts payable | 390 | 283 |
Accrued compensation | 1,693 | 2,008 |
Other accrued expenses | 661 | 714 |
Deferred rent, current portion | 331 | 321 |
Deferred revenue | 2,287 | 2,064 |
Total current liabilities | 14,445 | 20,221 |
Deferred tax liability | 23 | |
Deferred rent | 689 | 854 |
Deferred revenue | 162 | 1,798 |
Shareholders’ equity: | ||
Preferred stock, no par value: 10,000,000 shares authorized; no shares issued and outstanding | ||
Common stock, no par value: 37,500,000 shares authorized; 12,591,488 shares issued and outstanding at June 30, 2017 and 12,532,348 shares issued and outstanding at December 31, 2016 | 136,591 | 135,660 |
Accumulated other comprehensive loss | (916) | (941) |
Accumulated deficit | (98,576) | (96,607) |
Total shareholders’ equity | 37,099 | 38,112 |
Total liabilities and shareholders’ equity | $ 52,395 | $ 61,008 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Statement Of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 50 | $ 50 |
Preferred stock, par value | ||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | ||
Common stock, shares authorized | 37,500,000 | 37,500,000 |
Common stock, shares issued | 12,591,488 | 12,532,348 |
Common stock, shares outstanding | 12,591,488 | 12,532,348 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Revenue: | ||||
Software | $ 15,986 | $ 18,735 | $ 35,437 | $ 38,902 |
Professional engineering service | 2,862 | 4,003 | 6,252 | 9,275 |
Total revenue | 18,848 | 22,738 | 41,689 | 48,177 |
Cost of revenue: | ||||
Software | 13,142 | 15,459 | 27,256 | 32,620 |
Professional engineering service | 1,833 | 3,386 | 4,307 | 7,368 |
Total cost of revenue | 14,975 | 18,845 | 31,563 | 39,988 |
Gross profit | 3,873 | 3,893 | 10,126 | 8,189 |
Operating expenses: | ||||
Selling, general and administrative | 5,046 | 3,204 | 9,911 | 6,410 |
Research and development | 1,446 | 774 | 2,793 | 1,215 |
Total operating expenses | 6,492 | 3,978 | 12,704 | 7,625 |
Income (loss) from operations | (2,619) | (85) | (2,578) | 564 |
Other income, net | 59 | 55 | 114 | 76 |
Income (loss) before income taxes | (2,560) | (30) | (2,464) | 640 |
Income tax benefit (expense) | (155) | 106 | (325) | |
Net income (loss) | $ (2,560) | $ (185) | $ (2,358) | $ 315 |
Basic income (loss) per share | $ (0.20) | $ (0.02) | $ (0.19) | $ 0.03 |
Diluted income (loss) per share | $ (0.20) | $ (0.02) | $ (0.19) | $ 0.03 |
Shares used in calculation of income (loss) per share: | ||||
Basic | 12,577 | 12,152 | 12,563 | 12,127 |
Diluted | 12,577 | 12,152 | 12,563 | 12,559 |
Comprehensive income (loss): | ||||
Net income (loss) | $ (2,560) | $ (185) | $ (2,358) | $ 315 |
Other comprehensive income (loss): | ||||
Foreign currency translation, net of tax | 14 | 13 | 22 | 34 |
Change in unrealized gains (losses) on investments, net of tax | (2) | 2 | 3 | (23) |
Total other comprehensive income (loss) | 12 | 15 | 25 | 11 |
Comprehensive income (loss) | $ (2,548) | $ (170) | $ (2,333) | $ 326 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (2,358) | $ 315 |
Adjustments to reconcile net income (loss) to net cash used for operating activities: | ||
Depreciation and amortization | 320 | 303 |
Stock-based compensation | 810 | 628 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | 2,879 | (368) |
Contract assets, current | 450 | |
Prepaid expenses and other assets | (331) | (87) |
Third-party software fees payable | (5,748) | (3,386) |
Accounts payable and accrued expenses | (261) | 281 |
Deferred revenue | (1,378) | (576) |
Deferred rent | (155) | (146) |
Net cash used for operating activities | (5,772) | (3,036) |
Cash flows from investing activities: | ||
Purchases of equipment and furniture | (264) | (105) |
Proceeds from maturities of short-term investments | 19,699 | 12,950 |
Purchases of short-term investments | (18,641) | (15,926) |
Net cash provided by (used for) investing activities | 794 | (3,081) |
Cash flows provided by financing activities: | ||
Proceeds from exercise of stock options | 118 | 333 |
Effect of exchange rates on cash | 16 | (40) |
Net decrease in cash and cash equivalents | (4,844) | (5,824) |
Cash and cash equivalents, beginning of period | 14,312 | 16,443 |
Cash and cash equivalents, end of period | $ 9,468 | $ 10,619 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 1. Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements of BSQUARE Corporation (“BSQUARE”) have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial reporting and include the accounts of BSQUARE and our wholly owned subsidiaries. Certain information and footnote disclosures normally included in the annual consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. In our opinion, the unaudited condensed consolidated financial statements include all material adjustments, all of which are of a normal and recurring nature, necessary to present fairly our financial position as of June 30, 2017, our operating results for the three and six months ended June 30, 2017 and 2016 and our cash flows for the six months ended June 30, 2017 and 2016. The accompanying financial information as of December 31, 2016 is derived from audited financial statements. Preparing financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses. Examples include provisions for bad debts and income taxes, estimates of progress on professional engineering service arrangements and bonus accruals. Actual results may differ from these estimates. Interim results are not necessarily indicative of results for a full year. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2016. All intercompany balances have been eliminated. Recently Adopted Accounting Standards In March 2016, the Financial Accounting Standards Board (“FASB”) amended the existing accounting standards for stock-based compensation by issuing Accounting Standards Update (“ASU”) 2016-09 “Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting” (“ASU 2016-09”). The changes in the new standard eliminate the requirements that excess tax benefits be recognized in additional paid-in capital and tax deficiencies be recognized either in the income tax provision or in additional paid-in capital, in addition to changing the accounting for forfeitures and presentation changes for cash flows. We adopted the amendments in the first quarter of 2017. ASU 2016-09 requires that certain amendments be applied using a modified retrospective transition method by means of a cumulative effect adjustment to retained earnings as of the beginning of 2017. As a result of this adoption, we adjusted beginning retained earnings by $3,200 at the beginning of 2017 for amendments related to an entity-wide accounting policy election to recognize share-based award forfeitures as they occur rather than at vest date. We will continue to apply an estimated forfeiture rate. There was no change to retained earnings with respect to unrecognized excess tax benefits as this was not applicable to us. We have elected to present any excess tax benefits for share-based payments in net operating cash rather than in net financing cash on the cash flow statement on a prospective transition method, and no prior periods have been adjusted. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers,” amending revenue recognition guidance and requiring more detailed disclosures to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The amended guidance, herein referred to as Topic 606, is effective for annual and interim reporting periods beginning after December 15, 2017, with early adoption permitted for public companies effective for annual and interim reporting periods beginning after December 15, 2016. We have elected to early adopt Topic 606, effective January 1, 2017, using the modified retrospective transition method. We recognized the cumulative effect of applying the new revenue standard as an adjustment to the opening balance of retained earnings at the beginning of 2017. The comparative information has not been restated and continues to be reported under the accounting standards in effect for the period presented. See Note 2 – Revenue Recognition, for additional accounting policy and transition disclosures. Recently Issued Accounting Standards In February 2016, the FASB issued ASU No. 2016-2, “Leases,” to make leasing activities more transparent and comparable, requiring most leases be recognized by lessees on their balance sheets as right-of-use assets, along with corresponding lease liabilities. ASU 2016-2 is effective for public business entities for annual periods beginning after December 31, 2018 and interim periods within that year, with early adoption permitted. We are currently evaluating the impact this ASU may have on our consolidated financial statements and related disclosures. In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments,” adding or clarifying guidance on the classification of certain cash receipts and payments in the statement of cash flows. The standard addresses eight specific cash flow issues with the objective of reducing diversity in practice. ASU 2016-15 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. Early adoption is permitted. We are currently evaluating the impact this ASU may have on our consolidated financial statements and related disclosures. In January 2017, the FASB issued ASU No. 2017-04, “Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment,” simplifying how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. ASU 2017-04 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019, with early adoption permitted on testing dates after January 1, 2017. We are currently evaluating the impact this ASU may have on our consolidated financial statements and related disclosures. Income (Loss) Per Share We compute basic income (loss) per share using the weighted average number of common shares outstanding during the period, and exclude any dilutive effects of common stock equivalent shares, such as options, restricted stock awards and restricted stock units. We consider restricted stock awards (“RSAs”) as outstanding and include them in the computation of basic income (loss) per share when underlying restrictions expire and the awards are no longer forfeitable. We consider restricted stock units (“RSUs”) as outstanding and include them in the computation of basic income (loss) per share only when vested. We compute diluted income (loss) per share using the weighted average number of common shares outstanding and common stock equivalent shares outstanding during the period using the treasury stock method. We exclude common stock equivalent shares from the computation if their effect is anti-dilutive. We excluded 1,192,369 and 1,181,218 options for the three and six months ended June 30, 2017, respectively, and 675,958 and 654,441 options for the three and six months ended June 30, 2016, respectively, from diluted income (loss) per share because their effect was anti-dilutive. For the three and six months ended June 30, 2017, this included common stock equivalent shares of 753,081 and 764,761, respectively, that would have been included in diluted income (loss) per share had we been in a net income position. For the three months ended June 30, 2016, this included common stock equivalent shares of 1,188,189 that would have been included in diluted income (loss) per share had we been in a net income position. In a period where we are in a loss position, we compute diluted loss per share using the basic share count. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2017 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | 2. Revenue Recognition On January 1, 2017, we adopted Topic 606 applying the modified retrospective method to all contracts that were not completed as of January 1, 2017. Results for reporting periods beginning after January 1, 2017 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported under the accounting standards in effect for the prior period. We recorded a net reduction to opening equity of $404,000 as of January 1, 2017 due to the cumulative impact of adopting Topic 606. The impacts to revenue for the three and six months ended June 30, 2017 were a decrease of $0.4 million and an increase of $2.4 million, respectively, as a result of adopting Topic 606. The adoption of Topic 606 did not have a significant impact on our third-party software or professional engineering services revenue; however, it did have a significant impact on our proprietary DataV software products. We executed our first two DataV contracts in the fourth quarter of 2016. Our current DataV contracts include customization, software license and support and maintenance performance obligations. Under the accounting standards in effect in the prior period, revenues from our DataV software contracts were recognized under a zero profit model whereby revenue was recognized up to the amount of costs incurred. The profit margin was deferred and recognized ratably over the service and maintenance period after delivery and acceptance of the software product. Under Topic 606, revenue is recognized on our DataV contracts when the customization services essential to provide the derived benefit of the software to the customer are completed and control of the product is transferred to the customer as evidenced by customer acceptance. During first quarter of 2017, we received customer acceptance on a DataV software license, resulting in the recognition of $2.8 million in revenue for the software license and customization services. We did not receive any such acceptances in the second quarter of 2017. Changes in accounting policies as a result of adopting Topic 606 and nature of goods The following is a description of principal activities from which we generate revenue. Revenues are recognized when control of the promised goods or services are transferred to our customers, in an amount that reflects the consideration that we expect to receive in exchange for those goods or services. We generate all of our revenue from contracts with customers. Third-Party Software: We sell third-party software licenses based upon a customer purchase order, shipping a certificate of authenticity (“COA”) to satisfy this single performance obligation. These shipments are also subject to limited return rights; historically, returns have averaged less than one-quarter of one percent. In accordance with Topic 606, we will continue to recognize revenue from third-party products at the time of shipment when the customer accepts control of the COA. Proprietary Software: We sell our proprietary software products to customers under a contract or by purchase order. Our DataV software contracts generally include professional services, a perpetual or term license and support and maintenance. In contracts with multiple performance obligations, we identify each performance obligation and evaluate whether the performance obligations are distinct within the context of the contract at contract inception. Performance obligations that are not distinct at contract inception are combined. Contracts that include software customization may result in the combination of the customization services with the software license as one distinct performance obligation. The transaction price is generally in the form of a fixed fee at contract inception. Certain DataV contracts also include variable consideration in the form of royalties earned when customers meet contractual volume thresholds. We allocate the transaction price to each distinct performance obligation based on the estimated standalone selling price for each performance obligation. We then look to how control transfers to the customer in order to determine the timing of revenue recognition. In contracts that include customer acceptance, we recognize revenue when we have delivered the software and received customer acceptance. We recognize revenues from support and maintenance performance obligations over the service delivery period. We recognize revenues from royalties in the period of usage. Our non-DataV software products generally do not include customization or modification services and are sold in the form of term licenses. These software licenses represent one performance obligation. Revenue is recognized when the software is delivered to the customer. There are two items involving revenue recognition on DataV software contracts that require us to make more difficult and subjective judgments: the determination of which performance obligations are distinct within the context of the overall contract and the estimated standalone selling price of each performance obligation. In instances where our DataV contracts include significant customization or modification services, the customization and modification services are generally combined with the software license and recorded as one distinct performance obligation. We estimate the standalone selling price of each performance obligation based on either a cost plus margin approach or an adjusted market assessment approach. In instances where we have observable selling prices for professional services and support and maintenance, we may apply the residual approach to estimate the standalone selling price of software licenses. Professional Engineering Services We enter into contracts for professional engineering services that include software development and customization. We identify each performance obligation in our professional engineering services contracts at contract inception. The contracts generally include project deliverables specified by each customer. The performance obligations in the agreements are generally combined into one deliverable. The contract pricing is either at stated billing rates per service hour and material costs or at a fixed amount. Services provided under professional engineering agreements generally result in the transfer of control over time. The underlying deliverable is owned and controlled by the customer and does not create an asset with an alternative use to us. We recognize revenue on service contracts based on time and materials as we have the right to invoice. We recognize revenue on fixed fee contracts on the proportion of labor hours expended to the total hours expected to complete the contract performance obligation. Certain professional engineering contracts include substantive customer acceptance provisions. In contracts that include substantive customer acceptance provisions, we recognize revenue upon customer acceptance. The determination of the total labor hours expected to complete the performance obligations involves significant judgment. In certain situations, when it is impractical for us to reasonably measure the outcome of a performance obligation, and where we anticipate that we will not incur a loss, an adjusted cost based input method is used for revenue recognition. Equal amounts of revenue and cost are recognized during the contract period, and profit is recognized when the project is completed and accepted. Disaggregation of revenue: The following table provides information about disaggregated revenue by primary geographical market, major product line and timing of revenue recognition, and includes a reconciliation of the disaggregated revenue with reportable segments (in thousands): Three Months Ended June 30, 2017 Six Months Ended June, 2017 Third Party Software Proprietary Software Total Software Professional Engineering Services Total Third Party Software Proprietary Software Total Software Professional Engineering Services Total Primary geographical markets North America $ 14,956 $ 473 $ 15,429 $ 2,299 $ 17,728 $ 31,252 $ 3,118 $ 34,370 $ 5,128 $ 39,498 Europe 435 — 435 379 814 859 — 859 777 1,636 Asia 114 8 122 184 306 191 17 208 347 555 Total $ 15,505 $ 481 $ 15,986 $ 2,862 $ 18,848 $ 32,302 $ 3,135 $ 35,437 $ 6,252 $ 41,689 Major products/services lines Third-party software $ 15,505 $ — $ 15,505 $ — $ 15,505 $ 32,302 $ — $ 32,302 $ — $ 32,302 Proprietary software — 481 481 — 481 — 3,135 3,135 — 3,135 Professional engineering services — — — 2,862 2,862 — — — 6,252 6,252 Total $ 15,505 $ 481 $ 15,986 $ 2,862 $ 18,848 $ 32,302 $ 3,135 $ 35,437 $ 6,252 $ 41,689 Timing of revenue recognition Products transferred at a point in time $ 15,505 $ 481 $ 15,986 $ 91 $ 16,077 $ 32,302 $ 3,135 $ 35,437 $ 681 $ 36,118 Products and services transferred over time — — — 2,771 2,771 — — — 5,571 5,571 Total $ 15,505 $ 481 $ 15,986 $ 2,862 $ 18,848 $ 32,302 $ 3,135 $ 35,437 $ 6,252 $ 41,689 Contract balances: The following table provides information about receivables, contract assets and contract liabilities from contracts with customers (in thousands): As of June 30, 2017 Receivables $ 17,949 Short-term contract assets 636 Long-term contract assets 27 Short-term contract liabilities (deferred revenue) 2,287 Long-term contract liabilities (deferred revenue) 162 We receive payments from customers based upon contractual billing schedules; accounts receivable are recorded when the right to consideration becomes unconditional. Contract assets includes amounts related to our contractual right to consideration for completed performance objectives not yet invoiced and deferred contract acquisition costs, which are amortized along with the associated revenue. Contract liabilities include payments received in advance of performance under the contract, and are realized with the associated revenue recognized under the contract. We had no asset impairment charges related to contract assets in the period. Significant changes in the contract assets and the contract liabilities balances during the periods are as follows (in thousands): Three Months Ended June 30, 2017 Six Months Ended June 30, 2017 Contract Assets Contract Liabilities* Contract Assets Contract Liabilities* Revenue recognized that was included in the contract liability (def. revenue) balance at Jan. 1, 2017 $ — $ 83 $ — $ 2,710 Increases due to cash received, excluding amounts recognized as revenue during the period — 46 — 975 Transferred to receivables from contract assets recognized at January 1, 2017 29 — 780 — Performance obligations satisfied in previous periods — — — — * Comprised of Deferred Revenue Contract acquisition costs: In connection with the adoption of Topic 606, we are required to capitalize certain contract acquisition costs consisting primarily of commissions paid when contracts are signed. As of January 1, 2017, the date we adopted Topic 606, we capitalized $292,000 in contract acquisition costs related to contracts that were not completed. For contracts that have a duration of less than one year, we follow a Topic 606 practical expedient and expense these costs when incurred; for contracts with life exceeding one year, as is more common with our DataV software bookings, we record these costs in proportion to each completed contract performance obligation. In the three and six months ended June 30, 2017, the amount of amortization was $7,000 and $148,000, respectively, and there was no impairment loss in relation to costs capitalized. No additional contract acquisition costs were capitalized in the three and six month periods ended June 30, 2017. Transaction price allocated to the remaining performance obligations The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied or partially unsatisfied at the end of the reporting period. The estimated revenues do not include amounts of variable consideration attributable to royalties or unexercised contract renewals (in thousands): Remainder of 2017 2018 2019 Third-party software $ 72 $ 110 $ 36 Proprietary software 1,630 540 196 Professional engineering services 217 — — Practical Expedients and Exemptions We generally expense sales commissions when incurred because the amortization period would have been less than one year. We record these costs within selling, general and administrative expenses. In accordance with Topic 606, the disclosure of the impact of adoption to our condensed consolidated statements of operations was as follows: Three months ended June 30, 2017 Six months ended June, 2017 (in thousands, except per share amounts) As Reported Balances without adoption of Topic 606 Effect of Change Higher/(Lower) As Reported Balances without adoption of Topic 606 Effect of Change Higher/(Lower) Revenue: Software $ 15,986 $ 16,257 $ (271 ) $ 35,437 $ 33,353 $ 2,084 Professional engineering service 2,862 2,985 (123 ) 6,252 5,929 323 Total revenue 18,848 19,242 (394 ) 41,689 39,282 2,407 Cost of revenue: Software 13,142 13,142 — 27,256 27,256 — Professional engineering service 1,833 1,956 (123 ) 4,307 4,106 201 Total cost of revenue 14,975 15,098 (123 ) 31,563 31,362 201 Gross profit 3,873 4,144 (271 ) 10,126 7,920 2,206 Operating expenses: Selling, general and administrative 5,046 5,040 6 9,911 9,764 147 Research and development 1,446 1,446 — 2,793 2,793 — Total operating expenses 6,492 6,486 6 12,704 12,557 147 Loss from operations (2,619 ) (2,342 ) (277 ) (2,578 ) (4,637 ) 2,059 Net loss $ (2,560 ) $ (2,283 ) $ (277 ) $ (2,358 ) $ (4,417 ) $ 2,059 Basic and diluted loss per share $ (0.20 ) $ (0.18 ) $ (0.02 ) $ (0.19 ) $ (0.35 ) $ 0.16 In accordance with Topic 606, the disclosure of the impact of adoption to our condensed consolidated balance sheet was as follows: As of June 30, 2017 (in thousands) As Reported Balances without adoption of Topic 606 Effect of Change Higher/(Lower) Assets: Contract Assets $ 636 $ 540 $ 96 Liabilities: Deferred revenue - current 2,287 3,293 (1,006 ) Deferred revenue - noncurrent 162 1,120 (958 ) Shareholders' Equity: Accumulated deficit (98,576 ) (100,635 ) 2,059 |
Cash, Cash Equivalents and Inve
Cash, Cash Equivalents and Investments | 6 Months Ended |
Jun. 30, 2017 | |
Cash And Cash Equivalents [Abstract] | |
Cash, Cash Equivalents and Investments | 3. Cash, Cash Equivalents and Investments Cash, cash equivalents and short-term investments consisted of the following (in thousands): June 30, 2017 December 31, 2016 Cash $ 5,039 $ 11,016 Cash equivalents: Money market funds 181 2,796 Corporate commercial paper 3,498 500 Corporate debt securities 750 - Total cash equivalents 4,429 3,296 Total cash and cash equivalents 9,468 14,312 Short-term investments: Corporate commercial paper 10,895 11,465 Corporate debt securities 6,933 7,423 Total short-term investments 17,828 18,888 Total cash, cash equivalents and short-term investments $ 27,296 $ 33,200 Gross unrealized gains and losses on our short-term investments were not material as of June 30, 2017 and December 31, 2016. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 4. Fair Value Measurements We measure our cash equivalents and short-term investments at fair value. Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. A three-tier fair value hierarchy is established as a basis for considering such assumptions and for inputs used in the valuation methodologies in measuring fair value: Level 1: Quoted prices in active markets for identical assets or liabilities. Level 2: Directly or indirectly observable market-based inputs or unobservable inputs used in models or other valuation methodologies. Level 3: Unobservable inputs that are not corroborated by market data. The inputs require significant management judgment or estimation. We classify our cash equivalents and short-term investments within Level 1 or Level 2 because our cash equivalents and short-term investments are valued using quoted market prices or alternative pricing sources and models utilizing market observable inputs. Assets and liabilities measured at fair value on a recurring basis as of June 30, 2017 and December 31, 2016 are summarized below (in thousands): June 30, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Direct or Indirect Observable Inputs (Level 2) Total Assets Cash equivalents: Money market funds $ 181 $ — $ 181 Corporate commercial paper — 3,498 3,498 Corporate debt securities — 750 750 Total cash equivalents 181 4,248 4,429 Short-term investments: Corporate commercial paper — 10,895 10,895 Corporate debt securities — 6,933 6,933 Total short-term investments — 17,828 17,828 Total assets measured at fair value $ 181 $ 22,076 $ 22,257 December 31, 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Direct or Indirect Observable Inputs (Level 2) Total Assets Cash equivalents: Money market funds $ 2,796 $ — $ 2,796 Corporate commercial paper — 500 500 Total cash equivalents 2,796 500 3,296 Short-term investments: Corporate commercial paper — 11,465 11,465 Corporate debt securities — 7,423 7,423 Total short-term investments — 18,888 18,888 Total assets measured at fair value $ 2,796 $ 19,388 $ 22,184 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Jun. 30, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 5. Goodwill and Intangible Assets Goodwill was originally recorded in connection with the September 2011 acquisition of MPC Data, Ltd. (renamed BSQUARE EMEA, Ltd. in 2015), a United Kingdom based provider of software engineering services. The excess of the acquisition consideration over the fair value of net assets acquired was recorded as goodwill and is included within the professional engineering services reporting unit. There were no changes in the carrying amount of goodwill during the three and six months ended June 30, 2017. Intangible assets relate to customer relationships that we acquired from TestQuest, Inc. in November 2008 and from the acquisition of BSQUARE EMEA, Ltd. in September 2011. Information regarding our intangible assets is as follows (in thousands): June 30, 2017 Gross Carrying Amount Accumulated Amortization Net Carrying Value Customer relationships $ 1,275 $ (860 ) $ 415 December 31, 2016 Gross Carrying Amount Accumulated Amortization Net Carrying Value Customer relationships $ 1,275 $ (811 ) $ 464 Amortization expense was $24,000 and $49,000 for the three and six months ended June 30, 2017, respectively, and $34,000 and $68,000 for the three and six months ended June 30, 2016, respectively. Amortization in future periods is expected to be as follows (in thousands): Remainder of 2017 $ 50 2018 98 2019 98 2020 98 2021 71 Total $ 415 |
Credit Agreement
Credit Agreement | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Credit Agreement | 6. Credit Agreement Line of Credit On September 22, 2015, we entered into a two-year unsecured line of credit agreement (the “Credit Agreement”) with JPMorgan Chase Bank, N.A. (the “Bank”) in the principal amount of up to $12 million. On September 29, 2016, the Credit Agreement was modified to extend the final due date an additional year to September 22, 2018. At our election, advances under the Credit Agreement shall bear interest at either (1) a rate per annum equal to 1.5% below the bank’s applicable prime rate or (2) 1.5% above the Bank’s applicable LIBOR rate, in each case as defined in the Credit Agreement. The Credit Agreement contains customary affirmative and negative covenants, including compliance with financial ratios and metrics, as well as limitations on our ability to pay distributions or dividends while there is an ongoing event of default or to the extent such distribution causes an event of default. We are required to maintain certain minimum interest coverage ratios, liquidity levels and asset coverage ratios as defined in the Credit Agreement. We were in compliance with all such covenants as of June 30, 2017. There were no amounts outstanding under the Credit Agreement as of June 30, 2017 or December 31, 2016. In September 2016, we entered into a new letter of credit agreement for $250,000 secured by the Credit Agreement in connection with the lease of our corporate headquarters. Accordingly, the principal amount available under the Credit Agreement has been reduced from $12 million to $11.75 million. |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Jun. 30, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Shareholders' Equity | 7. Shareholders’ Equity Equity Compensation Plans We have a stock plan (the “Stock Plan”) and an inducement stock plan for newly hired employees (the “Inducement Plan”) (collectively, the “Plans”). Under the Plans, stock options to purchase shares of our common stock may be granted with a fixed exercise price that is equal to the fair market value of our common stock on the date of grant. These options have a term of up to 10 years and vest over a predetermined period, generally four years. Incentive stock options granted under the Stock Plan may only be granted to our employees. The Plans also allow for awards of non-qualified stock options, stock appreciation rights, RSAs and unrestricted stock awards, and RSUs. Expense is recorded for performance options over the requisite service periods when achievement of related performance targets are considered to be probable. Stock-Based Compensation The estimated fair value of stock-based awards is recognized as compensation expense over the vesting period of the award, net of estimated forfeitures. We estimate forfeitures based on historical experience and expected future activity. The fair value of RSAs and RSUs is determined based on the number of shares granted and the quoted price of our common stock on the date of grant. The fair value of stock option awards is estimated at the grant date based on the fair value of each vesting tranche as calculated by the Black-Scholes-Merton (“BSM”) option-pricing model. The BSM model requires various highly judgmental assumptions including expected volatility and option life. If any of the assumptions used in the BSM model change significantly, stock-based compensation expense may differ materially in the future from that recorded in the current period. The fair values of our stock option grants were estimated with the following weighted average assumptions: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Dividend yield 0 % 0 % 0 % 0 % Expected life 3.3 years 3.4 years 3.3 years 3.4 years Expected volatility 52 % 55 % 53 % 55 % Risk-free interest rate 1.6 % 1.1 % 1.7 % 1.1 % The impact on our results of operations from stock-based compensation expense was as follows (in thousands, except per share amounts): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Cost of revenue — service $ 20 $ 36 $ 85 $ 173 Selling, general and administrative 320 150 604 357 Research and development 71 29 121 98 Total stock-based compensation expense $ 411 $ 215 $ 810 $ 628 Per diluted share $ 0.03 $ 0.02 $ 0.06 $ 0.05 Stock Option Activity The following table summarizes stock option activity under the Plans for the six months ended June 30, 2017: Stock Options Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (in years) Aggregate Intrinsic Value Balance at January 1, 2017 1,846,768 $ 4.84 8.19 $ 2,138,361 Granted 89,125 5.33 Exercised (30,079 ) 3.82 Forfeited (48,550 ) 5.24 Expired (25,445 ) 5.56 Balance at June 30, 2017 1,831,819 $ 4.86 7.96 $ 1,755,761 Vested and expected to vest at June 30, 2017 1,694,577 $ 4.82 7.86 $ 1,700,861 Exercisable at June 30, 2017 838,272 $ 4.25 6.65 $ 1,334,204 At June 30, 2017, total compensation cost related to stock options granted but not yet recognized was $1,284,933, net of estimated forfeitures. This cost will be amortized on the straight-line method over a weighted-average period of approximately 1.47 years. The following table summarizes certain information about stock options: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Weighted-average grant-date fair value of option grants for the period $ 2.64 $ 2.87 $ 2.80 $ 3.05 Options in-the-money at period end 1,755,762 948,745 1,755,762 948,745 Aggregate intrinsic value of options exercised $ 17,412 $ 310,756 $ 57,833 $ 360,086 The aggregate intrinsic value represents the difference between the exercise price of the underlying options and the quoted price of our common stock for the number of options that were in-the-money at period end or that were exercised during the period. We issue new shares of common stock upon exercise of stock options. Restricted Stock Unit Activity The following table summarizes RSU activity for the six months ended June 30, 2017: Number of Shares Weighted Average Grant Date Fair Value Unvested at January 1, 2017 119,606 $ 5.60 Granted 61,409 4.89 Vested (30,635 ) 5.76 Forfeited — — Unvested at June 30, 2017 150,380 $ 5.28 Expected to vest after June 30, 2017 134,077 $ 5.28 At June 30, 2017, total compensation cost related to RSUs granted but not yet recognized was $465,966, net of estimated forfeitures. This cost will be amortized on the straight-line method over a period of approximately 1.13 years. Common Stock Reserved for Future Issuance The following table summarizes our shares of common stock reserved for future issuance under the Plans as of June 30, 2017: Stock options outstanding 1,831,819 RSUs outstanding 150,380 Stock awards available for future grant 1,312,621 Common stock reserved for future issuance 3,294,820 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 8. Commitments and Contingencies Lease and rent obligations Our commitments include obligations outstanding under operating leases, which expire through 2020. We have lease commitments for office space in Bellevue, Washington; Boston, Massachusetts; Taipei, Taiwan; Tokyo, Japan; and Trowbridge, UK. We also lease office space on a month-to-month basis in Akron, Ohio. In August 2013, we amended the lease agreement for our Bellevue, Washington headquarters, and extended the term of the original lease that was scheduled to expire in August 2014 to May 2020. Rent expense was $273,000 and $533,000 for the three and six months ended June 30, 2017, respectively, and $259,000 and $519,000 for the three and six months ended June 30, 2016, respectively. Future operating lease commitments are as follows by calendar year (in thousands): Remainder of 2017 $ 672 2018 1,168 2019 1,038 2020 437 Total commitments $ 3,315 Loss Contingencies From time to time, we are subject to legal proceedings, claims, and litigation arising in the ordinary course of business including tax assessments. We defend ourselves vigorously against any such claims. When (i) it is probable that an asset has been impaired or a liability has been incurred and (ii) the amount of the loss can be reasonably estimated, we record the estimated loss. We provide disclosure in the notes to the consolidated financial statements for loss contingencies that do not meet both of these conditions if there is a reasonable possibility that a loss may have been incurred that would be material to the financial statements. Significant judgment is required to determine the probability that a liability has been incurred and whether such liability is reasonably estimable. We base accruals made on the best information available at the time, which can be highly subjective. The final outcome of these matters could vary significantly from the amounts included in the accompanying consolidated financial statements. |
Information about Geographic Ar
Information about Geographic Areas and Operating Segments | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Information about Geographic Areas and Operating Segments | 9. Information about Geographic Areas and Operating Segments Our chief operating decision-makers (i.e., our Chief Executive Officer and certain direct reports) review financial information presented on a consolidated basis, accompanied by disaggregated information for purposes of allocating resources and evaluating financial performance. There are no segment managers who are held accountable by our chief operating decision-makers, or anyone else, for operations, operating results, or planning for levels or components below the consolidated unit level. We operate within a single industry segment of computer software and services. We have two major product lines, software and professional engineering services, each of which we consider to be an operating and reportable segment. Software includes third-party software and proprietary software sales, and professional engineering services includes consulting, programming and software customization and implementation revenue. We do not allocate costs other than direct cost of goods sold to the segments or produce segment income statements. We do not produce asset information by reportable segment and it is not presented here. The following table sets forth profit and loss information about our segments (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Software Revenue $ 15,986 $ 18,735 $ 35,437 $ 38,902 Cost of revenue 13,142 15,459 27,256 32,620 Gross profit 2,844 3,276 8,181 6,282 Professional Engineering Services Revenue 2,862 4,003 6,252 9,275 Cost of revenue 1,833 3,386 4,307 7,368 Gross profit 1,029 617 1,945 1,907 Total gross profit 3,873 3,893 10,126 8,189 Operating expenses 6,492 3,978 12,704 7,625 Other income, net 59 55 114 76 Income tax benefit (expense) - (155 ) 106 (325 ) Net income (loss) $ (2,560 ) $ (185 ) $ (2,358 ) $ 315 Revenue by geography is based on the sales region of the customer. The following tables set forth revenue and long-lived assets by geographic area (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Total revenue: North America $ 17,728 $ 21,291 $ 39,498 $ 45,359 Asia 306 554 556 828 Europe 814 893 1,635 1,990 Total revenue $ 18,848 $ 22,738 $ 41,689 $ 48,177 June 30, 2017 December 31, 2016 Long-lived assets: North America $ 1,064 $ 1,025 Asia 83 90 Europe 4,171 4,236 Total long-lived assets $ 5,318 $ 5,351 |
Significant Risk Concentrations
Significant Risk Concentrations | 6 Months Ended |
Jun. 30, 2017 | |
Risks And Uncertainties [Abstract] | |
Significant Risk Concentrations | 10. Significant Risk Concentrations Significant Customer Honeywell International, Inc. and affiliated entities (“Honeywell”) accounted for $3.0 million, or 16% of total revenue, for the three months ended June 30, 2017 and for $3.5 million, or 16% of total revenue, for the three months ended June 30, 2016. Honeywell accounted for $6.3 million, or 15% of total revenue, for the six months ended June 30, 2017 and for $7.7 million, or 16% of total revenue, for the six months ended June 30, 2016. No other customers accounted for 10% or more of our total revenue for the periods noted above. At June 30, 2017, Honeywell had a total accounts receivable balance of $9.6 million, or approximately 53% of total accounts receivable, and had a total accounts receivable balance of $7.1 million, or approximately 33% of total accounts receivable, at December 31, 2016. No other customer accounted for 10% or more of the total accounts receivable at June 30, 2017 or December 31, 2016. Significant Supplier We have two OEM Distribution Agreements (“ODAs”) with Microsoft Corporation (“Microsoft”) which enable us to sell Microsoft Windows Embedded operating systems on a non-exclusive basis to our customers in the United States, Canada, Argentina, Brazil, Chile, Columbia, Mexico, Peru, Puerto Rico, the Caribbean (excluding Cuba), the European Union, the European Free Trade Association, Turkey and Africa, which expire on June 30, 2018. We also have four ODAs with Microsoft, which allow us to sell Microsoft Windows Mobile operating systems in the Americas (excluding Cuba), Japan, Taiwan, Europe, the Middle East, and Africa, which also expire on June 30, 2018. Software sales under these agreements constitute a significant portion of our software revenue and total revenue. These agreements are typically renewed bi-annually, annually or semi-annually; however, there is no automatic renewal provision in any of these agreements. Further, these agreements can be terminated unilaterally by Microsoft at any time. Microsoft currently offers a rebate program to sell Microsoft Windows Embedded operating systems pursuant to which we earn money for achieving certain predefined objectives. In accordance with Microsoft rebate program rules, we allocate 30% of rebate values to reduce cost of sales, with the remaining 70% to offset qualified marketing expenses in the period the expenditures are incurred. Under this rebate program, we recognized $87,000 and $197,000 of rebate credits during the three and six months ended June 30, 2017, respectively, compared to $123,000 and $209,000 during the three and six months ended June 30, 2016, respectively, which were accounted for as reductions in cost of sales. Additionally, during the three and six months ended June 30, 2017, we received $219,000 and $374,000 in rebates, respectively, compared to $288,000 and $489,000 during the three and six months ended June 30, 2016, respectively, which were accounted for as reductions in marketing expenses. There was a balance of approximately $203,000 in outstanding rebate credits for which we qualified at June 30, 2017, which will be accounted for as reductions in marketing expense in the period in which qualified program expenditures are made. Microsoft implemented significant pricing changes for its embedded products effective January 1, 2016, including ending its design registration pricing discounts, terminating its OEM Volume Royalty Programs (“OVRP”) and changing the aggregate volume price structure and product royalties for existing embedded Windows products. In December 2015, Microsoft granted extensions for certain of the OVRPs through December 31, 2016, at which time the program ended. |
Summary of Significant Accoun16
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements of BSQUARE Corporation (“BSQUARE”) have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial reporting and include the accounts of BSQUARE and our wholly owned subsidiaries. Certain information and footnote disclosures normally included in the annual consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. In our opinion, the unaudited condensed consolidated financial statements include all material adjustments, all of which are of a normal and recurring nature, necessary to present fairly our financial position as of June 30, 2017, our operating results for the three and six months ended June 30, 2017 and 2016 and our cash flows for the six months ended June 30, 2017 and 2016. The accompanying financial information as of December 31, 2016 is derived from audited financial statements. Preparing financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses. Examples include provisions for bad debts and income taxes, estimates of progress on professional engineering service arrangements and bonus accruals. Actual results may differ from these estimates. Interim results are not necessarily indicative of results for a full year. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2016. All intercompany balances have been eliminated. |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards In March 2016, the Financial Accounting Standards Board (“FASB”) amended the existing accounting standards for stock-based compensation by issuing Accounting Standards Update (“ASU”) 2016-09 “Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting” (“ASU 2016-09”). The changes in the new standard eliminate the requirements that excess tax benefits be recognized in additional paid-in capital and tax deficiencies be recognized either in the income tax provision or in additional paid-in capital, in addition to changing the accounting for forfeitures and presentation changes for cash flows. We adopted the amendments in the first quarter of 2017. ASU 2016-09 requires that certain amendments be applied using a modified retrospective transition method by means of a cumulative effect adjustment to retained earnings as of the beginning of 2017. As a result of this adoption, we adjusted beginning retained earnings by $3,200 at the beginning of 2017 for amendments related to an entity-wide accounting policy election to recognize share-based award forfeitures as they occur rather than at vest date. We will continue to apply an estimated forfeiture rate. There was no change to retained earnings with respect to unrecognized excess tax benefits as this was not applicable to us. We have elected to present any excess tax benefits for share-based payments in net operating cash rather than in net financing cash on the cash flow statement on a prospective transition method, and no prior periods have been adjusted. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers,” amending revenue recognition guidance and requiring more detailed disclosures to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The amended guidance, herein referred to as Topic 606, is effective for annual and interim reporting periods beginning after December 15, 2017, with early adoption permitted for public companies effective for annual and interim reporting periods beginning after December 15, 2016. We have elected to early adopt Topic 606, effective January 1, 2017, using the modified retrospective transition method. We recognized the cumulative effect of applying the new revenue standard as an adjustment to the opening balance of retained earnings at the beginning of 2017. The comparative information has not been restated and continues to be reported under the accounting standards in effect for the period presented. See Note 2 – Revenue Recognition, for additional accounting policy and transition disclosures. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In February 2016, the FASB issued ASU No. 2016-2, “Leases,” to make leasing activities more transparent and comparable, requiring most leases be recognized by lessees on their balance sheets as right-of-use assets, along with corresponding lease liabilities. ASU 2016-2 is effective for public business entities for annual periods beginning after December 31, 2018 and interim periods within that year, with early adoption permitted. We are currently evaluating the impact this ASU may have on our consolidated financial statements and related disclosures. In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments,” adding or clarifying guidance on the classification of certain cash receipts and payments in the statement of cash flows. The standard addresses eight specific cash flow issues with the objective of reducing diversity in practice. ASU 2016-15 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. Early adoption is permitted. We are currently evaluating the impact this ASU may have on our consolidated financial statements and related disclosures. In January 2017, the FASB issued ASU No. 2017-04, “Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment,” simplifying how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. ASU 2017-04 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019, with early adoption permitted on testing dates after January 1, 2017. We are currently evaluating the impact this ASU may have on our consolidated financial statements and related disclosures. |
Income (Loss) Per Share | Income (Loss) Per Share We compute basic income (loss) per share using the weighted average number of common shares outstanding during the period, and exclude any dilutive effects of common stock equivalent shares, such as options, restricted stock awards and restricted stock units. We consider restricted stock awards (“RSAs”) as outstanding and include them in the computation of basic income (loss) per share when underlying restrictions expire and the awards are no longer forfeitable. We consider restricted stock units (“RSUs”) as outstanding and include them in the computation of basic income (loss) per share only when vested. We compute diluted income (loss) per share using the weighted average number of common shares outstanding and common stock equivalent shares outstanding during the period using the treasury stock method. We exclude common stock equivalent shares from the computation if their effect is anti-dilutive. We excluded 1,192,369 and 1,181,218 options for the three and six months ended June 30, 2017, respectively, and 675,958 and 654,441 options for the three and six months ended June 30, 2016, respectively, from diluted income (loss) per share because their effect was anti-dilutive. For the three and six months ended June 30, 2017, this included common stock equivalent shares of 753,081 and 764,761, respectively, that would have been included in diluted income (loss) per share had we been in a net income position. For the three months ended June 30, 2016, this included common stock equivalent shares of 1,188,189 that would have been included in diluted income (loss) per share had we been in a net income position. In a period where we are in a loss position, we compute diluted loss per share using the basic share count. |
Revenue Recognition(Tables)
Revenue Recognition(Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Revenue From Contract With Customer [Abstract] | |
Disaggregated Revenue | The following table provides information about disaggregated revenue by primary geographical market, major product line and timing of revenue recognition, and includes a reconciliation of the disaggregated revenue with reportable segments (in thousands): Three Months Ended June 30, 2017 Six Months Ended June, 2017 Third Party Software Proprietary Software Total Software Professional Engineering Services Total Third Party Software Proprietary Software Total Software Professional Engineering Services Total Primary geographical markets North America $ 14,956 $ 473 $ 15,429 $ 2,299 $ 17,728 $ 31,252 $ 3,118 $ 34,370 $ 5,128 $ 39,498 Europe 435 — 435 379 814 859 — 859 777 1,636 Asia 114 8 122 184 306 191 17 208 347 555 Total $ 15,505 $ 481 $ 15,986 $ 2,862 $ 18,848 $ 32,302 $ 3,135 $ 35,437 $ 6,252 $ 41,689 Major products/services lines Third-party software $ 15,505 $ — $ 15,505 $ — $ 15,505 $ 32,302 $ — $ 32,302 $ — $ 32,302 Proprietary software — 481 481 — 481 — 3,135 3,135 — 3,135 Professional engineering services — — — 2,862 2,862 — — — 6,252 6,252 Total $ 15,505 $ 481 $ 15,986 $ 2,862 $ 18,848 $ 32,302 $ 3,135 $ 35,437 $ 6,252 $ 41,689 Timing of revenue recognition Products transferred at a point in time $ 15,505 $ 481 $ 15,986 $ 91 $ 16,077 $ 32,302 $ 3,135 $ 35,437 $ 681 $ 36,118 Products and services transferred over time — — — 2,771 2,771 — — — 5,571 5,571 Total $ 15,505 $ 481 $ 15,986 $ 2,862 $ 18,848 $ 32,302 $ 3,135 $ 35,437 $ 6,252 $ 41,689 |
Schedule of Contract Balances and Changes in Contract Balances | The following table provides information about receivables, contract assets and contract liabilities from contracts with customers (in thousands): As of June 30, 2017 Receivables $ 17,949 Short-term contract assets 636 Long-term contract assets 27 Short-term contract liabilities (deferred revenue) 2,287 Long-term contract liabilities (deferred revenue) 162 Significant changes in the contract assets and the contract liabilities balances during the periods are as follows (in thousands): Three Months Ended June 30, 2017 Six Months Ended June 30, 2017 Contract Assets Contract Liabilities* Contract Assets Contract Liabilities* Revenue recognized that was included in the contract liability (def. revenue) balance at Jan. 1, 2017 $ — $ 83 $ — $ 2,710 Increases due to cash received, excluding amounts recognized as revenue during the period — 46 — 975 Transferred to receivables from contract assets recognized at January 1, 2017 29 — 780 — Performance obligations satisfied in previous periods — — — — * Comprised of Deferred Revenue |
Estimated Revenue Expected to be Recognized in Future Related to Performance Obligations | The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied or partially unsatisfied at the end of the reporting period. The estimated revenues do not include amounts of variable consideration attributable to royalties or unexercised contract renewals (in thousands): Remainder of 2017 2018 2019 Third-party software $ 72 $ 110 $ 36 Proprietary software 1,630 540 196 Professional engineering services 217 — — |
Summary of Impact of Adoption of Accounting Standards | In accordance with Topic 606, the disclosure of the impact of adoption to our condensed consolidated statements of operations was as follows: Three months ended June 30, 2017 Six months ended June, 2017 (in thousands, except per share amounts) As Reported Balances without adoption of Topic 606 Effect of Change Higher/(Lower) As Reported Balances without adoption of Topic 606 Effect of Change Higher/(Lower) Revenue: Software $ 15,986 $ 16,257 $ (271 ) $ 35,437 $ 33,353 $ 2,084 Professional engineering service 2,862 2,985 (123 ) 6,252 5,929 323 Total revenue 18,848 19,242 (394 ) 41,689 39,282 2,407 Cost of revenue: Software 13,142 13,142 — 27,256 27,256 — Professional engineering service 1,833 1,956 (123 ) 4,307 4,106 201 Total cost of revenue 14,975 15,098 (123 ) 31,563 31,362 201 Gross profit 3,873 4,144 (271 ) 10,126 7,920 2,206 Operating expenses: Selling, general and administrative 5,046 5,040 6 9,911 9,764 147 Research and development 1,446 1,446 — 2,793 2,793 — Total operating expenses 6,492 6,486 6 12,704 12,557 147 Loss from operations (2,619 ) (2,342 ) (277 ) (2,578 ) (4,637 ) 2,059 Net loss $ (2,560 ) $ (2,283 ) $ (277 ) $ (2,358 ) $ (4,417 ) $ 2,059 Basic and diluted loss per share $ (0.20 ) $ (0.18 ) $ (0.02 ) $ (0.19 ) $ (0.35 ) $ 0.16 In accordance with Topic 606, the disclosure of the impact of adoption to our condensed consolidated balance sheet was as follows: As of June 30, 2017 (in thousands) As Reported Balances without adoption of Topic 606 Effect of Change Higher/(Lower) Assets: Contract Assets $ 636 $ 540 $ 96 Liabilities: Deferred revenue - current 2,287 3,293 (1,006 ) Deferred revenue - noncurrent 162 1,120 (958 ) Shareholders' Equity: Accumulated deficit (98,576 ) (100,635 ) 2,059 |
Cash, Cash Equivalents and In18
Cash, Cash Equivalents and Investments (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Cash And Cash Equivalents [Abstract] | |
Cash, Cash Equivalents and Short-Term Investments | Cash, cash equivalents and short-term investments consisted of the following (in thousands): June 30, 2017 December 31, 2016 Cash $ 5,039 $ 11,016 Cash equivalents: Money market funds 181 2,796 Corporate commercial paper 3,498 500 Corporate debt securities 750 - Total cash equivalents 4,429 3,296 Total cash and cash equivalents 9,468 14,312 Short-term investments: Corporate commercial paper 10,895 11,465 Corporate debt securities 6,933 7,423 Total short-term investments 17,828 18,888 Total cash, cash equivalents and short-term investments $ 27,296 $ 33,200 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis as of June 30, 2017 and December 31, 2016 are summarized below (in thousands): June 30, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Direct or Indirect Observable Inputs (Level 2) Total Assets Cash equivalents: Money market funds $ 181 $ — $ 181 Corporate commercial paper — 3,498 3,498 Corporate debt securities — 750 750 Total cash equivalents 181 4,248 4,429 Short-term investments: Corporate commercial paper — 10,895 10,895 Corporate debt securities — 6,933 6,933 Total short-term investments — 17,828 17,828 Total assets measured at fair value $ 181 $ 22,076 $ 22,257 December 31, 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Direct or Indirect Observable Inputs (Level 2) Total Assets Cash equivalents: Money market funds $ 2,796 $ — $ 2,796 Corporate commercial paper — 500 500 Total cash equivalents 2,796 500 3,296 Short-term investments: Corporate commercial paper — 11,465 11,465 Corporate debt securities — 7,423 7,423 Total short-term investments — 18,888 18,888 Total assets measured at fair value $ 2,796 $ 19,388 $ 22,184 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Information Regarding Intangible Assets | Information regarding our intangible assets is as follows (in thousands): June 30, 2017 Gross Carrying Amount Accumulated Amortization Net Carrying Value Customer relationships $ 1,275 $ (860 ) $ 415 December 31, 2016 Gross Carrying Amount Accumulated Amortization Net Carrying Value Customer relationships $ 1,275 $ (811 ) $ 464 |
Expected Amortization Expense for Future Period | Amortization in future periods is expected to be as follows (in thousands): Remainder of 2017 $ 50 2018 98 2019 98 2020 98 2021 71 Total $ 415 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Fair Values of Stock Option Grants Estimated with Weighted Average Assumptions | The fair values of our stock option grants were estimated with the following weighted average assumptions: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Dividend yield 0 % 0 % 0 % 0 % Expected life 3.3 years 3.4 years 3.3 years 3.4 years Expected volatility 52 % 55 % 53 % 55 % Risk-free interest rate 1.6 % 1.1 % 1.7 % 1.1 % |
Stock-Based Compensation Expense | The impact on our results of operations from stock-based compensation expense was as follows (in thousands, except per share amounts): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Cost of revenue — service $ 20 $ 36 $ 85 $ 173 Selling, general and administrative 320 150 604 357 Research and development 71 29 121 98 Total stock-based compensation expense $ 411 $ 215 $ 810 $ 628 Per diluted share $ 0.03 $ 0.02 $ 0.06 $ 0.05 |
Summary of Stock Option Activity | The following table summarizes stock option activity under the Plans for the six months ended June 30, 2017: Stock Options Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (in years) Aggregate Intrinsic Value Balance at January 1, 2017 1,846,768 $ 4.84 8.19 $ 2,138,361 Granted 89,125 5.33 Exercised (30,079 ) 3.82 Forfeited (48,550 ) 5.24 Expired (25,445 ) 5.56 Balance at June 30, 2017 1,831,819 $ 4.86 7.96 $ 1,755,761 Vested and expected to vest at June 30, 2017 1,694,577 $ 4.82 7.86 $ 1,700,861 Exercisable at June 30, 2017 838,272 $ 4.25 6.65 $ 1,334,204 |
Summary of Certain Information about Stock Options | The following table summarizes certain information about stock options: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Weighted-average grant-date fair value of option grants for the period $ 2.64 $ 2.87 $ 2.80 $ 3.05 Options in-the-money at period end 1,755,762 948,745 1,755,762 948,745 Aggregate intrinsic value of options exercised $ 17,412 $ 310,756 $ 57,833 $ 360,086 |
Summary of Restricted Stock Unit Activity | The following table summarizes RSU activity for the six months ended June 30, 2017: Number of Shares Weighted Average Grant Date Fair Value Unvested at January 1, 2017 119,606 $ 5.60 Granted 61,409 4.89 Vested (30,635 ) 5.76 Forfeited — — Unvested at June 30, 2017 150,380 $ 5.28 Expected to vest after June 30, 2017 134,077 $ 5.28 |
Summary of Shares of Common Stock Reserved for Future Issuance under Plans | The following table summarizes our shares of common stock reserved for future issuance under the Plans as of June 30, 2017: Stock options outstanding 1,831,819 RSUs outstanding 150,380 Stock awards available for future grant 1,312,621 Common stock reserved for future issuance 3,294,820 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Future Operating Lease Commitments | Future operating lease commitments are as follows by calendar year (in thousands): Remainder of 2017 $ 672 2018 1,168 2019 1,038 2020 437 Total commitments $ 3,315 |
Information about Geographic 23
Information about Geographic Areas and Operating Segments (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Profit and Loss Information of Segments | The following table sets forth profit and loss information about our segments (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Software Revenue $ 15,986 $ 18,735 $ 35,437 $ 38,902 Cost of revenue 13,142 15,459 27,256 32,620 Gross profit 2,844 3,276 8,181 6,282 Professional Engineering Services Revenue 2,862 4,003 6,252 9,275 Cost of revenue 1,833 3,386 4,307 7,368 Gross profit 1,029 617 1,945 1,907 Total gross profit 3,873 3,893 10,126 8,189 Operating expenses 6,492 3,978 12,704 7,625 Other income, net 59 55 114 76 Income tax benefit (expense) - (155 ) 106 (325 ) Net income (loss) $ (2,560 ) $ (185 ) $ (2,358 ) $ 315 |
Revenue and Long-Lived Assets by Geographic Area | Revenue by geography is based on the sales region of the customer. The following tables set forth revenue and long-lived assets by geographic area (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Total revenue: North America $ 17,728 $ 21,291 $ 39,498 $ 45,359 Asia 306 554 556 828 Europe 814 893 1,635 1,990 Total revenue $ 18,848 $ 22,738 $ 41,689 $ 48,177 June 30, 2017 December 31, 2016 Long-lived assets: North America $ 1,064 $ 1,025 Asia 83 90 Europe 4,171 4,236 Total long-lived assets $ 5,318 $ 5,351 |
Summary of Significant Accoun24
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Jan. 01, 2017 | |
Options [Member] | |||||
Summary Of Accounting Policies [Line Items] | |||||
Shares excluded from computations of diluted loss per share | 1,192,369 | 675,958 | 1,181,218 | 654,441 | |
Dilutive effect of common stock equivalent shares | 753,081 | 1,188,189 | 764,761 | ||
ASU 2016-09 [Member] | |||||
Summary Of Accounting Policies [Line Items] | |||||
Cumulative-effect adjustment to retained earnings | $ 3,200 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Jan. 01, 2017 | |
Summary Of Accounting Policies [Line Items] | ||||||
Revenue | $ 18,848,000 | $ 22,738,000 | $ 41,689,000 | $ 48,177,000 | ||
Topic 606 [Member] | ||||||
Summary Of Accounting Policies [Line Items] | ||||||
Cumulative-effect adjustment to retained earnings | $ 404,000 | |||||
Asset impairment charges related to contract assets | 0 | |||||
Capitalized contract acquisition costs | 292,000 | 292,000 | ||||
Capitalized contract cost, amortization | 7,000 | 148,000 | ||||
Impairment loss in relation to costs capitalized | 0 | 0 | ||||
Additional capitalized contract costs | 0 | 0 | ||||
Topic 606 [Member] | Impact of changes in accounting policies, Effect of Change Higher/(Lower) [Member] | ||||||
Summary Of Accounting Policies [Line Items] | ||||||
Revenue | $ (394,000) | $ 2,800,000 | $ 2,407,000 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregated Revenue (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2017 | Jun. 30, 2017 | |
Disaggregation Of Revenue [Line Items] | ||
Disaggregated revenue | $ 18,848 | $ 41,689 |
Software [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregated revenue | 15,986 | 35,437 |
Software [Member] | Third Party Software [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregated revenue | 15,505 | 32,302 |
Software [Member] | Proprietary Software [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregated revenue | 481 | 3,135 |
Professional Engineering Services [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregated revenue | 2,862 | 6,252 |
North America [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregated revenue | 17,728 | 39,498 |
North America [Member] | Software [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregated revenue | 15,429 | 34,370 |
North America [Member] | Software [Member] | Third Party Software [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregated revenue | 14,956 | 31,252 |
North America [Member] | Software [Member] | Proprietary Software [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregated revenue | 473 | 3,118 |
North America [Member] | Professional Engineering Services [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregated revenue | 2,299 | 5,128 |
Europe [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregated revenue | 814 | 1,636 |
Europe [Member] | Software [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregated revenue | 435 | 859 |
Europe [Member] | Software [Member] | Third Party Software [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregated revenue | 435 | 859 |
Europe [Member] | Professional Engineering Services [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregated revenue | 379 | 777 |
Asia [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregated revenue | 306 | 555 |
Asia [Member] | Software [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregated revenue | 122 | 208 |
Asia [Member] | Software [Member] | Third Party Software [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregated revenue | 114 | 191 |
Asia [Member] | Software [Member] | Proprietary Software [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregated revenue | 8 | 17 |
Asia [Member] | Professional Engineering Services [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregated revenue | 184 | 347 |
Products transferred at a point in time [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregated revenue | 16,077 | 36,118 |
Products transferred at a point in time [Member] | Software [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregated revenue | 15,986 | 35,437 |
Products transferred at a point in time [Member] | Software [Member] | Third Party Software [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregated revenue | 15,505 | 32,302 |
Products transferred at a point in time [Member] | Software [Member] | Proprietary Software [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregated revenue | 481 | 3,135 |
Products transferred at a point in time [Member] | Professional Engineering Services [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregated revenue | 91 | 681 |
Products and services transferred over time [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregated revenue | 2,771 | 5,571 |
Products and services transferred over time [Member] | Professional Engineering Services [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregated revenue | $ 2,771 | $ 5,571 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Information about Receivables, Contract Assets and Contract Liabilities from Contracts with Customers (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Revenue From Contract With Customer [Abstract] | ||
Receivables | $ 17,949 | $ 21,579 |
Short-term contract assets | 636 | |
Long-term contract assets | 27 | |
Short-term contract liabilities (deferred revenue) | 2,287 | 2,064 |
Long-term contract liabilities (deferred revenue) | $ 162 | $ 1,798 |
Revenue Recognition - Schedul28
Revenue Recognition - Schedule of Significant Changes in Contract Assets and Contract Liabilities (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2017 | Jun. 30, 2017 | |
Changes in the Contract Assets | ||
Transferred to receivables from contract assets recognized at January 1, 2017 | $ 29 | $ 780 |
Changes in the Contract Liabilities | ||
Revenue recognized that was included in the contract liability (def. revenue) balance at Jan. 1, 2017 | 83 | 2,710 |
Increases due to cash received, excluding amounts recognized as revenue during the period | $ 46 | $ 975 |
Revenue Recognition - Estimated
Revenue Recognition - Estimated Revenue Expected to be Recognized in Future Related to Performance Obligations (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Remainder of 2017 [Member] | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Estimated revenue, expected recognition period | 6 months |
Remainder of 2017 [Member] | Software [Member] | Third-Party Software [Member] | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Estimated revenue expected to be recognized in future | $ 72 |
Remainder of 2017 [Member] | Software [Member] | Proprietary Software [Member] | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Estimated revenue expected to be recognized in future | 1,630 |
Remainder of 2017 [Member] | Professional Engineering Services [Member] | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Estimated revenue expected to be recognized in future | $ 217 |
2,018 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Estimated revenue, expected recognition period | 1 year |
2018 | Software [Member] | Third-Party Software [Member] | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Estimated revenue expected to be recognized in future | $ 110 |
2018 | Software [Member] | Proprietary Software [Member] | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Estimated revenue expected to be recognized in future | $ 540 |
2,019 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Estimated revenue, expected recognition period | 1 year |
2019 | Software [Member] | Third-Party Software [Member] | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Estimated revenue expected to be recognized in future | $ 36 |
2019 | Software [Member] | Proprietary Software [Member] | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Estimated revenue expected to be recognized in future | $ 196 |
Revenue Recognition - Summary o
Revenue Recognition - Summary of Impact of Adoption of Accounting Standards (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Revenue: | ||||||
Software | $ 15,986 | $ 18,735 | $ 35,437 | $ 38,902 | ||
Professional engineering service | 2,862 | 4,003 | 6,252 | 9,275 | ||
Total revenue | 18,848 | 22,738 | 41,689 | 48,177 | ||
Cost of revenue: | ||||||
Software | 13,142 | 15,459 | 27,256 | 32,620 | ||
Professional engineering service | 1,833 | 3,386 | 4,307 | 7,368 | ||
Total cost of revenue | 14,975 | 18,845 | 31,563 | 39,988 | ||
Gross profit | 3,873 | 3,893 | 10,126 | 8,189 | ||
Operating expenses: | ||||||
Selling, general and administrative | 5,046 | 3,204 | 9,911 | 6,410 | ||
Research and development | 1,446 | 774 | 2,793 | 1,215 | ||
Total operating expenses | 6,492 | 3,978 | 12,704 | 7,625 | ||
Income (loss) from operations | (2,619) | (85) | (2,578) | 564 | ||
Net income (loss) | $ (2,560) | $ (185) | $ (2,358) | $ 315 | ||
Basic and diluted loss per share | $ (0.20) | $ (0.19) | ||||
Assets: | ||||||
Contract Assets | $ 636 | $ 636 | ||||
Liabilities: | ||||||
Deferred revenue - current | 2,287 | 2,287 | $ 2,064 | |||
Deferred revenue - noncurrent | 162 | 162 | 1,798 | |||
Shareholders' Equity: | ||||||
Accumulated deficit | (98,576) | (98,576) | $ (96,607) | |||
Topic 606 [Member] | Balances without adoption of Topic 606 [Member] | ||||||
Revenue: | ||||||
Software | 16,257 | 33,353 | ||||
Professional engineering service | 2,985 | 5,929 | ||||
Total revenue | 19,242 | 39,282 | ||||
Cost of revenue: | ||||||
Software | 13,142 | 27,256 | ||||
Professional engineering service | 1,956 | 4,106 | ||||
Total cost of revenue | 15,098 | 31,362 | ||||
Gross profit | 4,144 | 7,920 | ||||
Operating expenses: | ||||||
Selling, general and administrative | 5,040 | 9,764 | ||||
Research and development | 1,446 | 2,793 | ||||
Total operating expenses | 6,486 | 12,557 | ||||
Income (loss) from operations | (2,342) | (4,637) | ||||
Net income (loss) | $ (2,283) | $ (4,417) | ||||
Basic and diluted loss per share | $ (0.18) | $ (0.35) | ||||
Assets: | ||||||
Contract Assets | $ 540 | $ 540 | ||||
Liabilities: | ||||||
Deferred revenue - current | 3,293 | 3,293 | ||||
Deferred revenue - noncurrent | 1,120 | 1,120 | ||||
Shareholders' Equity: | ||||||
Accumulated deficit | (100,635) | (100,635) | ||||
Topic 606 [Member] | Effect of Change Higher/(Lower) [Member] | ||||||
Revenue: | ||||||
Software | (271) | 2,084 | ||||
Professional engineering service | (123) | 323 | ||||
Total revenue | (394) | $ 2,800 | 2,407 | |||
Cost of revenue: | ||||||
Professional engineering service | (123) | 201 | ||||
Total cost of revenue | (123) | 201 | ||||
Gross profit | (271) | 2,206 | ||||
Operating expenses: | ||||||
Selling, general and administrative | 6 | 147 | ||||
Total operating expenses | 6 | 147 | ||||
Income (loss) from operations | (277) | 2,059 | ||||
Net income (loss) | $ (277) | $ 2,059 | ||||
Basic and diluted loss per share | $ (0.02) | $ 0.16 | ||||
Assets: | ||||||
Contract Assets | $ 96 | $ 96 | ||||
Liabilities: | ||||||
Deferred revenue - current | (1,006) | (1,006) | ||||
Deferred revenue - noncurrent | (958) | (958) | ||||
Shareholders' Equity: | ||||||
Accumulated deficit | $ 2,059 | $ 2,059 |
Cash, Cash Equivalents and In31
Cash, Cash Equivalents and Investments - Cash, Cash Equivalents and Short-Term Investments (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Dec. 31, 2015 |
Investment Holdings [Line Items] | ||||
Cash | $ 5,039 | $ 11,016 | ||
Cash equivalents: | ||||
Total cash equivalents | 4,429 | 3,296 | ||
Total cash and cash equivalents | 9,468 | 14,312 | $ 10,619 | $ 16,443 |
Short-term investments: | ||||
Total short-term investments | 17,828 | 18,888 | ||
Total cash, cash equivalents and short-term investments | 27,296 | 33,200 | ||
Corporate commercial paper [Member] | ||||
Cash equivalents: | ||||
Total cash equivalents | 3,498 | 500 | ||
Short-term investments: | ||||
Total short-term investments | 10,895 | 11,465 | ||
Corporate debt securities [Member] | ||||
Cash equivalents: | ||||
Total cash equivalents | 750 | |||
Short-term investments: | ||||
Total short-term investments | 6,933 | 7,423 | ||
Money market funds [Member] | ||||
Cash equivalents: | ||||
Total cash equivalents | $ 181 | $ 2,796 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Short-term investments: | ||
Total short-term investments | $ 17,828 | $ 18,888 |
Recurring basis [Member] | ||
Cash equivalents: | ||
Total cash equivalents | 4,429 | 3,296 |
Short-term investments: | ||
Total short-term investments | 17,828 | 18,888 |
Total assets measured at fair value | 22,257 | 22,184 |
Corporate commercial paper [Member] | ||
Short-term investments: | ||
Total short-term investments | 10,895 | 11,465 |
Corporate commercial paper [Member] | Recurring basis [Member] | ||
Cash equivalents: | ||
Total cash equivalents | 3,498 | 500 |
Short-term investments: | ||
Total short-term investments | 10,895 | 11,465 |
Corporate debt securities [Member] | ||
Short-term investments: | ||
Total short-term investments | 6,933 | 7,423 |
Corporate debt securities [Member] | Recurring basis [Member] | ||
Cash equivalents: | ||
Total cash equivalents | 750 | |
Short-term investments: | ||
Total short-term investments | 6,933 | 7,423 |
Money market funds [Member] | Recurring basis [Member] | ||
Cash equivalents: | ||
Total cash equivalents | 181 | 2,796 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Recurring basis [Member] | ||
Cash equivalents: | ||
Total cash equivalents | 181 | 2,796 |
Short-term investments: | ||
Total assets measured at fair value | 181 | 2,796 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Money market funds [Member] | Recurring basis [Member] | ||
Cash equivalents: | ||
Total cash equivalents | 181 | 2,796 |
Direct or Indirect Observable Inputs (Level 2) [Member] | Recurring basis [Member] | ||
Cash equivalents: | ||
Total cash equivalents | 4,248 | 500 |
Short-term investments: | ||
Total short-term investments | 17,828 | 18,888 |
Total assets measured at fair value | 22,076 | 19,388 |
Direct or Indirect Observable Inputs (Level 2) [Member] | Corporate commercial paper [Member] | Recurring basis [Member] | ||
Cash equivalents: | ||
Total cash equivalents | 3,498 | 500 |
Short-term investments: | ||
Total short-term investments | 10,895 | 11,465 |
Direct or Indirect Observable Inputs (Level 2) [Member] | Corporate debt securities [Member] | Recurring basis [Member] | ||
Cash equivalents: | ||
Total cash equivalents | 750 | |
Short-term investments: | ||
Total short-term investments | $ 6,933 | $ 7,423 |
Goodwill and Intangible Asset33
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||||
Change in carrying amount of goodwill | $ 0 | $ 0 | ||
Amortization expense | $ 24,000 | $ 34,000 | $ 49,000 | $ 68,000 |
Goodwill and Intangible Asset34
Goodwill and Intangible Assets - Information Regarding Intangible Assets (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Net Carrying Value | $ 415 | $ 464 |
Customer relationships [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,275 | 1,275 |
Accumulated Amortization | (860) | (811) |
Net Carrying Value | $ 415 | $ 464 |
Goodwill and Intangible Asset35
Goodwill and Intangible Assets - Expected Amortization Expense for Future Period (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Remainder of 2017 | $ 50 | |
2,018 | 98 | |
2,019 | 98 | |
2,020 | 98 | |
2,021 | 71 | |
Net Carrying Value | $ 415 | $ 464 |
Credit Agreement - Additional I
Credit Agreement - Additional Information (Detail) - Credit Agreement [Member] - USD ($) | Sep. 29, 2016 | Sep. 22, 2015 | Jun. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 |
Line Of Credit Facility [Line Items] | |||||
Letter of credit, agreement amount | $ 250,000 | ||||
Unsecured Line of Credit Agreement [Member] | |||||
Line Of Credit Facility [Line Items] | |||||
Line of credit, interest rate description | The Credit Agreement shall bear interest at either (1) a rate per annum equal to 1.5% below the bank’s applicable prime rate or (2) 1.5% above the Bank’s applicable LIBOR rate, in each case as defined in the Credit Agreement. | ||||
Line of credit, final due date | Sep. 22, 2018 | ||||
Line of credit, amount outstanding | $ 0 | $ 0 | |||
Unsecured Line of Credit Agreement [Member] | Prime Rate [Member] | Minimum [Member] | |||||
Line Of Credit Facility [Line Items] | |||||
Line of credit, interest rate, basis spread on variable rate | 1.50% | ||||
Unsecured Line of Credit Agreement [Member] | LIBOR Rate [Member] | Maximum [Member] | |||||
Line Of Credit Facility [Line Items] | |||||
Line of credit, interest rate, basis spread on variable rate | 1.50% | ||||
Unsecured Line of Credit Agreement [Member] | JPMorgan Chase Bank, N.A. [Member] | |||||
Line Of Credit Facility [Line Items] | |||||
Line of credit, term | 2 years | ||||
Line of credit, maximum borrowing capacity | $ 12,000,000 | $ 11,750,000 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Compensation cost related to stock options granted but not yet recognized, net of estimated forfeitures | $ 1,284,933 |
Amortization cost, weighted-average period | 1 year 5 months 20 days |
Employee Stock Option [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Term of stock options granted | 10 years |
Vesting of options granted | 4 years |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Amortization cost, weighted-average period | 1 year 1 month 16 days |
Compensation cost related to restricted stock units granted but not yet recognized, net of estimated forfeitures | $ 465,966 |
Shareholders' Equity - Fair Val
Shareholders' Equity - Fair Values of Stock Option Grants Estimated with Weighted Average Assumptions (Detail) - Employee Stock Option [Member] | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Expected life | 3 years 3 months 18 days | 3 years 4 months 24 days | 3 years 3 months 18 days | 3 years 4 months 24 days |
Expected volatility | 52.00% | 55.00% | 53.00% | 55.00% |
Risk-free interest rate | 1.60% | 1.10% | 1.70% | 1.10% |
Shareholders' Equity - Stock-Ba
Shareholders' Equity - Stock-Based Compensation Expense (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | $ 411 | $ 215 | $ 810 | $ 628 |
Per diluted share | $ 0.03 | $ 0.02 | $ 0.06 | $ 0.05 |
Cost of revenue-service [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | $ 20 | $ 36 | $ 85 | $ 173 |
Selling, general and administrative [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 320 | 150 | 604 | 357 |
Research and development [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | $ 71 | $ 29 | $ 121 | $ 98 |
Shareholders' Equity - Summary
Shareholders' Equity - Summary of Stock Option Activity (Detail) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Roll Forward | ||
Number of Shares, Beginning Balance | 1,846,768 | |
Granted, Number of Shares | 89,125 | |
Exercised, Number of Shares | (30,079) | |
Forfeited, Number of Shares | (48,550) | |
Expired, Number of Shares | (25,445) | |
Number of Shares, Ending Balance | 1,831,819 | 1,846,768 |
Vested and expected to vest, Number of Shares, Ending Balance | 1,694,577 | |
Exercisable, Number of Shares, Ending Balance | 838,272 | |
Weighted Average Exercise Price, Beginning Balance | $ 4.84 | |
Granted, Weighted Average Exercise Price | 5.33 | |
Exercised, Weighted Average Exercise Price | 3.82 | |
Forfeited, Weighted Average Exercise Price | 5.24 | |
Expired, Weighted Average Exercise Price | 5.56 | |
Weighted Average Exercise Price, Ending Balance | 4.86 | $ 4.84 |
Vested and expected to vest, Weighted Average Exercise Price, Ending Balance | 4.82 | |
Exercisable, Weighted Average Exercise Price, Ending Balance | $ 4.25 | |
Weighted Average Remaining Contractual Life (in years) | 7 years 11 months 15 days | 8 years 2 months 9 days |
Vested and expected to vest, Weighted Average Remaining Contractual Life (in years) | 7 years 10 months 10 days | |
Exercisable, Weighted Average Remaining Contractual Life (in years) | 6 years 7 months 24 days | |
Aggregate Intrinsic Value | $ 1,755,761 | $ 2,138,361 |
Vested and expected to vest, Aggregate Intrinsic Value | 1,700,861 | |
Exercisable, Aggregate Intrinsic Value | $ 1,334,204 |
Shareholders' Equity - Summar41
Shareholders' Equity - Summary of Certain Information about Stock Options (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||
Weighted-average grant-date fair value of option grants for the period | $ 2.64 | $ 2.87 | $ 2.80 | $ 3.05 |
Options in-the-money at period end | 1,755,762 | 948,745 | 1,755,762 | 948,745 |
Aggregate intrinsic value of options exercised | $ 17,412 | $ 310,756 | $ 57,833 | $ 360,086 |
Shareholders' Equity - Summar42
Shareholders' Equity - Summary of Restricted Stock Unit Activity (Detail) | 6 Months Ended |
Jun. 30, 2017$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested, Number of Shares, Ending Balance | 150,380 |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested, Number of Shares, Beginning Balance | 119,606 |
Granted, Number of Shares | 61,409 |
Vested, Number of Shares | (30,635) |
Unvested, Number of Shares, Ending Balance | 150,380 |
Expected to vest, Number of Shares, Ending Balance | 134,077 |
Unvested, Weighted Average Grant Date Fair Value, Beginning Balance | $ / shares | $ 5.60 |
Granted, Weighted Average Grant Date Fair Value | $ / shares | 4.89 |
Vested, Weighted Average Grant Date Fair Value | $ / shares | 5.76 |
Unvested, Weighted Average Grant Date Fair Value, Ending Balance | $ / shares | 5.28 |
Expected to vest, Weighted Average Grant Date Fair Value, Ending Balance | $ / shares | $ 5.28 |
Shareholders' Equity - Summar43
Shareholders' Equity - Summary of Shares of Common Stock Reserved for Future Issuance under Plans (Detail) - shares | Jun. 30, 2017 | Dec. 31, 2016 |
Common Stock Number Of Shares Par Value And Other Disclosures [Abstract] | ||
Stock options outstanding | 1,831,819 | 1,846,768 |
RSUs outstanding | 150,380 | |
Stock awards available for future grant | 1,312,621 | |
Common stock reserved for future issuance | 3,294,820 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2013 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Other Commitments [Line Items] | |||||
Operating leases, expiration year | 2,020 | ||||
Rent expense | $ 273,000 | $ 259,000 | $ 533,000 | $ 519,000 | |
Bellevue [Member] | Washington [Member] | |||||
Other Commitments [Line Items] | |||||
Expiration date of operating lease | 2014-08 | ||||
Extended expiration date of operating lease | 2020-05 |
Commitments and Contingencies45
Commitments and Contingencies - Future Operating Lease Commitments (Detail) $ in Thousands | Jun. 30, 2017USD ($) |
Operating Leases Future Minimum Payments Due [Abstract] | |
Remainder of 2017 | $ 672 |
2,018 | 1,168 |
2,019 | 1,038 |
2,020 | 437 |
Total commitments | $ 3,315 |
Information about Geographic 46
Information about Geographic Areas and Operating Segments - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2017Segment | |
Segment Reporting [Abstract] | |
Number of reportable segment | 2 |
Number of operating segment | 2 |
Information about Geographic 47
Information about Geographic Areas and Operating Segments - Profit and Loss Information of Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 18,848 | $ 22,738 | $ 41,689 | $ 48,177 |
Cost of revenue | 14,975 | 18,845 | 31,563 | 39,988 |
Gross profit | 3,873 | 3,893 | 10,126 | 8,189 |
Operating expenses | 6,492 | 3,978 | 12,704 | 7,625 |
Other income, net | 59 | 55 | 114 | 76 |
Income tax benefit (expense) | (155) | 106 | (325) | |
Net income (loss) | (2,560) | (185) | (2,358) | 315 |
Software [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 15,986 | 18,735 | 35,437 | 38,902 |
Cost of revenue | 13,142 | 15,459 | 27,256 | 32,620 |
Gross profit | 2,844 | 3,276 | 8,181 | 6,282 |
Professional Engineering Services [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 2,862 | 4,003 | 6,252 | 9,275 |
Cost of revenue | 1,833 | 3,386 | 4,307 | 7,368 |
Gross profit | $ 1,029 | $ 617 | $ 1,945 | $ 1,907 |
Information about Geographic 48
Information about Geographic Areas and Operating Segments - Revenue and Long-Lived Assets by Geographic Area (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Total revenue: | |||||
Total revenue | $ 18,848 | $ 22,738 | $ 41,689 | $ 48,177 | |
Long-lived assets: | |||||
Total long-lived assets | 5,318 | 5,318 | $ 5,351 | ||
North America [Member] | |||||
Total revenue: | |||||
Total revenue | 17,728 | 21,291 | 39,498 | 45,359 | |
Long-lived assets: | |||||
Total long-lived assets | 1,064 | 1,064 | 1,025 | ||
Asia [Member] | |||||
Total revenue: | |||||
Total revenue | 306 | 554 | 556 | 828 | |
Long-lived assets: | |||||
Total long-lived assets | 83 | 83 | 90 | ||
Europe [Member] | |||||
Total revenue: | |||||
Total revenue | 814 | $ 893 | 1,635 | $ 1,990 | |
Long-lived assets: | |||||
Total long-lived assets | $ 4,171 | $ 4,171 | $ 4,236 |
Significant Risk Concentratio49
Significant Risk Concentrations - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)Agreement | Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($) | |
Concentration Risk [Line Items] | |||||
Total revenue | $ 18,848,000 | $ 22,738,000 | $ 41,689,000 | $ 48,177,000 | |
Receivables | 17,949,000 | $ 17,949,000 | $ 21,579,000 | ||
Expiration date one of OEM Distribution agreements for embedded operating systems | Jun. 30, 2018 | ||||
Number of OEM Distribution agreements for embedded operating systems | Agreement | 2 | ||||
Expiration date of OEM Distribution agreements for mobile operating systems, non-EMEA | Jun. 30, 2018 | ||||
Number of OEM Distribution agreements for mobile operating systems | Agreement | 4 | ||||
Rebate credits outstanding | 203,000 | $ 203,000 | |||
Cost of revenue [Member] | |||||
Concentration Risk [Line Items] | |||||
Allocation of rebate values, percentage | 30.00% | ||||
Earnings under the rebate program | 87,000 | 123,000 | $ 197,000 | 209,000 | |
Reduction in marketing expense [Member] | |||||
Concentration Risk [Line Items] | |||||
Allocation of rebate values, percentage | 70.00% | ||||
Earnings under the rebate program | 219,000 | 288,000 | $ 374,000 | 489,000 | |
Honeywell International Inc and affiliated entities [Member] | Customer Concentration Risk [Member] | |||||
Concentration Risk [Line Items] | |||||
Total revenue | 3,000,000 | $ 3,500,000 | 6,300,000 | $ 7,700,000 | |
Honeywell International Inc and affiliated entities [Member] | Credit Concentration Risk [Member] | |||||
Concentration Risk [Line Items] | |||||
Receivables | $ 9,600,000 | $ 9,600,000 | $ 7,100,000 | ||
Honeywell International Inc and affiliated entities [Member] | Revenue [Member] | Customer Concentration Risk [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 16.00% | 16.00% | 15.00% | 16.00% | |
Honeywell International Inc and affiliated entities [Member] | Accounts receivable [Member] | Credit Concentration Risk [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 53.00% | 33.00% |