Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 31, 2018 | Jun. 30, 2017 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | BSQR | ||
Entity Registrant Name | BSQUARE CORP /WA | ||
Entity Central Index Key | 1,054,721 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Common Stock, Shares Outstanding | 12,666,614 | ||
Entity Public Float | $ 56,262,281 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 12,859 | $ 14,312 |
Short-term investments | 11,895 | 18,888 |
Accounts receivable, net of allowance for doubtful accounts of $50 at December 31, 2017 and $50 at December 31, 2016 | 18,014 | 21,579 |
Prepaid expenses and other current assets | 548 | 878 |
Contract assets | 937 | |
Total current assets | 44,253 | 55,657 |
Equipment, furniture and leasehold improvements, net | 989 | 1,089 |
Deferred tax assets | 7 | |
Intangible assets, net | 365 | 464 |
Goodwill | 3,738 | 3,738 |
Other non-current assets including contract assets | 89 | 53 |
Total assets | 49,434 | 61,008 |
Current liabilities: | ||
Third-party software fees payable | 10,547 | 14,831 |
Accounts payable | 375 | 283 |
Accrued compensation | 2,266 | 2,008 |
Other accrued expenses | 681 | 714 |
Deferred rent, current portion | 339 | 321 |
Deferred revenue | 3,219 | 2,064 |
Total current liabilities | 17,427 | 20,221 |
Deferred tax liability | 23 | |
Deferred rent | 516 | 854 |
Deferred revenue | 61 | 1,798 |
Commitments and contingencies (Note 9) | ||
Shareholders' equity: | ||
Preferred stock, no par: 10,000,000 shares authorized; no shares issued and outstanding | ||
Common stock, no par: 37,500,000 shares authorized; 12,664,489 issued and outstanding at December 31, 2017 and 12,532,348 issued and outstanding at December 31, 2016 | 137,622 | 135,660 |
Accumulated other comprehensive loss | (916) | (941) |
Accumulated deficit | (105,276) | (96,607) |
Total shareholders' equity | 31,430 | 38,112 |
Total liabilities and shareholders' equity | $ 49,434 | $ 61,008 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 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 | 12,664,489 | 12,532,348 |
Common stock, shares outstanding | 12,664,489 | 12,532,348 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue: | ||
Professional engineering service | $ 10,410 | $ 15,271 |
Total revenue | 80,811 | 97,441 |
Cost of revenue: | ||
Professional engineering service | 7,365 | 13,439 |
Total cost of revenue | 62,689 | 81,621 |
Gross profit | 18,122 | 15,820 |
Operating expenses: | ||
Selling, general and administrative | 20,982 | 14,119 |
Research and development | 6,561 | 2,859 |
Total operating expenses | 27,543 | 16,978 |
Loss from operations | (9,421) | (1,158) |
Other income, net | 214 | 247 |
Loss before income taxes | (9,207) | (911) |
Income tax benefit (expense) | 149 | (141) |
Net loss | $ (9,058) | $ (1,052) |
Basic loss per share | $ (0.72) | $ (0.09) |
Diluted loss per share | $ (0.72) | $ (0.09) |
Shares used in per share calculations: | ||
Basic | 12,594 | 12,260 |
Diluted | 12,594 | 12,260 |
Comprehensive loss: | ||
Net loss | $ (9,058) | $ (1,052) |
Other comprehensive income (loss): | ||
Foreign currency translation, net of tax | 25 | (79) |
Unrealized gain on investments, net of tax | 7 | |
Total other comprehensive income (loss) | 25 | (72) |
Comprehensive loss | (9,033) | (1,124) |
Third Party Software [Member] | ||
Revenue: | ||
Software | 65,755 | 80,231 |
Cost of revenue: | ||
Software | 55,161 | 67,853 |
Proprietary Software [Member] | ||
Revenue: | ||
Software | 4,646 | 1,939 |
Cost of revenue: | ||
Software | $ 163 | $ 329 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated Deficit [Member] |
Balance at Dec. 31, 2015 | $ 36,907 | $ 133,331 | $ (869) | $ (95,555) |
Balance, Shares at Dec. 31, 2015 | 12,092,598 | |||
Net loss | 500 | |||
Balance at Mar. 31, 2016 | 37,873 | |||
Balance at Dec. 31, 2015 | 36,907 | $ 133,331 | (869) | (95,555) |
Balance, Shares at Dec. 31, 2015 | 12,092,598 | |||
Exercise of stock options | $ 1,082 | $ 1,082 | ||
Exercise of stock options, Shares | 371,845 | 371,845 | ||
Share-based compensation, including issuance of restricted stock | $ 1,247 | $ 1,247 | ||
Share-based compensation, including issuance of restricted stock, Shares | 67,905 | |||
Net loss | (1,052) | (1,052) | ||
Foreign currency translation adjustment, net of tax | (79) | (79) | ||
Unrealized gain on investments, net of tax | 7 | 7 | ||
Balance at Dec. 31, 2016 | $ 38,112 | $ 135,660 | (941) | (96,607) |
Balance, Shares at Dec. 31, 2016 | 12,532,348 | 12,532,348 | ||
Balance at Mar. 31, 2016 | $ 37,873 | |||
Net loss | (185) | |||
Balance at Jun. 30, 2016 | 38,166 | |||
Net loss | (106) | |||
Balance at Sep. 30, 2016 | 38,790 | |||
Net loss | (1,261) | |||
Balance at Dec. 31, 2016 | $ 38,112 | $ 135,660 | (941) | (96,607) |
Balance, Shares at Dec. 31, 2016 | 12,532,348 | 12,532,348 | ||
Net loss | $ 202 | |||
Balance at Mar. 31, 2017 | 39,206 | |||
Balance at Dec. 31, 2016 | $ 38,112 | $ 135,660 | (941) | (96,607) |
Balance, Shares at Dec. 31, 2016 | 12,532,348 | 12,532,348 | ||
Cumulative effect of accounting changes | $ 404 | 15 | 389 | |
Exercise of stock options | $ 174 | $ 174 | ||
Exercise of stock options, Shares | 54,692 | 54,692 | ||
Share-based compensation, including issuance of restricted stock | $ 1,757 | $ 1,757 | ||
Share-based compensation, including issuance of restricted stock, Shares | 77,449 | |||
Net loss | (9,058) | (9,058) | ||
Foreign currency translation adjustment, net of tax | 41 | $ 31 | 10 | |
Balance at Dec. 31, 2017 | $ 31,430 | $ 137,622 | (916) | (105,276) |
Balance, Shares at Dec. 31, 2017 | 12,664,489 | 12,664,489 | ||
Balance at Mar. 31, 2017 | $ 39,206 | |||
Net loss | (2,560) | |||
Balance at Jun. 30, 2017 | 37,099 | |||
Net loss | (2,468) | |||
Balance at Sep. 30, 2017 | 35,238 | |||
Net loss | (4,232) | |||
Balance at Dec. 31, 2017 | $ 31,430 | $ 137,622 | $ (916) | $ (105,276) |
Balance, Shares at Dec. 31, 2017 | 12,664,489 | 12,664,489 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | ||
Net loss | $ (9,058) | $ (1,052) |
Adjustments to reconcile net loss to net cash from operating activities: | ||
Depreciation and amortization | 634 | 598 |
Stock-based compensation | 1,757 | 1,247 |
Deferred income taxes | (16) | |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | 2,814 | (2,570) |
Prepaid expenses and other assets | 331 | (235) |
Contract assets, current | 149 | |
Third-party software fees payable | (4,284) | 3,042 |
Accounts payable and accrued expenses | 317 | (850) |
Deferred revenue | (547) | 2,727 |
Deferred rent | (320) | (300) |
Net cash provided (used) by operating activities | (8,223) | 2,607 |
Cash flows from investing activities: | ||
Purchases of equipment and furniture | (439) | (390) |
Proceeds from maturities of short-term investments | 33,532 | 24,950 |
Purchases of short-term investments | (26,544) | (30,566) |
Reduction of restricted cash equivalents | 250 | |
Net cash provided (used) by investing activities | 6,549 | (5,756) |
Cash flows from financing activities: | ||
Proceeds from exercise of stock options | 202 | 1,110 |
Effect of exchange rates on cash | 19 | (92) |
Net decrease in cash and cash equivalents | (1,453) | (2,131) |
Cash and cash equivalents, beginning of year | 14,312 | 16,443 |
Cash and cash equivalents, end of year | 12,859 | 14,312 |
Supplemental cash flow information: | ||
Cash paid for income taxes | $ 256 | $ 194 |
Description of Business and Acc
Description of Business and Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Description of Business and Accounting Policies | 1. Description of Business and Accounting Policies Description of business BSQUARE Corporation (“BSQUARE”) was incorporated in Washington State in July 1994. Since our inception, our business has largely been focused on providing software solutions (historically, including reselling software from Microsoft Corporation (“Microsoft”)) and related engineering services to businesses that develop, market and sell dedicated-purpose standalone intelligent systems. Examples of dedicated-purpose standalone intelligent systems include smart, connected computing devices such as smart phones, set-top boxes, point-of-sale terminals, kiosks, tablets and handheld data collection devices, as well as smart vending machines, ATM machines, digital signs and in-vehicle telematics and entertainment devices. Beginning in early 2014, we initiated development efforts focused on new proprietary software products addressing the Industrial Internet of Things (“IIoT”) market, by interconnecting of uniquely identifiable devices, extracting data from those devices and applying advanced analytics and machine learning to the data in order to derive meaningful and actionable insights. While IIoT is a relatively new market, we believe the work we have engaged in since our inception—namely adding intelligence and connectivity to discrete standalone devices and systems—embodies much of what is central to the core functionality of IIoT. These software development efforts have driven a new business initiative for BSQUARE, which we refer to as DataV™. Our DataV solution includes software products, applications and services that are designed to turn raw IIoT device data into meaningful and actionable data for our customers. Basis of consolidation The consolidated financial statements include the accounts of BSQUARE and our wholly owned subsidiaries. All intercompany balances and transactions 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 eliminated 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. We made an entity-wide accounting policy election to recognize share-based award forfeitures as they occur rather than at vest date, which did not have a material impact on our consolidated financial statements. 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 operating activities rather than in financing activities 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 effective for annual and interim reporting periods beginning after December 15, 2016. We elected to early adopt Topic 606, effective January 1, 2017, using the modified retrospective transition method. As a result of this adoption, we recognized a cumulative effect adjustment to 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 further discussion in Note 2 “Revenue Recognition.” Use of estimates Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Examples include provisions for bad debts and income taxes, estimates of progress on professional engineering service arrangements, bonus accruals, fair value of intangible assets and property and equipment, fair values of stock-based awards and the fair values of acquired assets and liabilities, among other estimates. Actual results may differ from these estimates. Income (loss) per share We compute basic per share amounts 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 and restricted stock units (“RSUs”). We consider RSUs as outstanding and include them in the computation of basic income or loss per share only when vested. We compute diluted per share amounts using the weighted average number of common shares outstanding plus 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. Unvested but outstanding RSUs are included in the diluted per share calculation. In a period where we are in a net loss position, the diluted loss per share is computed using the basic share count. The following table presents a reconciliation of the number of shares used in the calculation of basic and diluted per share amounts (in thousands): Year Ended December 31, 2017 2016 Weighted average common shares outstanding, basic 12,594 12,260 Dilutive potential common shares — — Weighted average common shares outstanding, diluted 12,594 12,260 Common stock equivalent shares of approximately 1,227,000 and 691,000 were excluded from the computation of diluted per share amounts for the years ended December 31, 2017 and 2016, respectively, because their effect was anti-dilutive. Cash, cash equivalents and investments We invest our excess cash primarily in highly liquid debt instruments of U.S. government agencies and municipalities, debt instruments issued by foreign governments, corporate commercial paper, money market funds, and corporate debt securities. We classify all highly liquid investments with stated maturities of three months or less from date of purchase as cash equivalents and all highly liquid investments with stated maturities of greater than three months as short-term investments. Short-term investments consist entirely of marketable securities, which are all classified as available-for-sale securities and are recorded at their estimated fair value. We determine the appropriate classification of our investments at the time of purchase and reevaluate such designation at each balance sheet date. We may or may not hold securities with stated maturities greater than 12 months until maturity. As we view these securities as available to support current operations, we classify securities with maturities less than 12 months as short-term investments. We carry these securities at fair value and report the unrealized gains and losses, net of taxes, as a component of shareholders’ equity, except for unrealized losses determined to be other than temporary, which are recorded in other expense. Restricted cash We had a restricted cash equivalents balance for funds held at a financial institution as security for an outstanding letter of credit related to our corporate headquarters lease obligation. The full balance of restricted cash equivalents was released in September 2016 when we entered into a new letter of credit agreement secured by our credit agreement with JPMorgan Chase Bank, N.A. Financial instruments and concentrations of risk Financial instruments that potentially subject us to concentrations of credit risk consist principally of cash, cash equivalents, short-term investments, and accounts receivable. Allowance for doubtful accounts We record accounts receivable at the invoiced amount net of an estimated allowance for doubtful accounts to reserve for potentially uncollectible receivables. We review customers that have past due invoices to identify specific customers with known disputes or collectability issues. In determining the amount of the allowance, we make judgments about the creditworthiness of significant customers based on ongoing credit evaluations. Equipment, furniture and leasehold improvements We account for equipment, furniture and leasehold improvements at cost less accumulated depreciation and amortization. We compute depreciation of equipment and furniture using the straight-line method over the estimated useful lives of the assets, generally three years. Leasehold improvements are amortized using the straight-line method over the shorter of the lease term or estimated useful lives, ranging from two to ten years. We expense maintenance and repair costs as incurred. When assets are retired or otherwise disposed of, gains or losses are included in the consolidated statements of operations. When facts and circumstances indicate that the value of long-lived assets may be impaired, we perform an evaluation of recoverability comparing the carrying value of the asset to projected undiscounted future cash flows. Upon indication that the carrying value of such assets may not be recoverable, we recognize an impairment loss as a charge against current operations based on the difference between the carrying value of the asset and its fair value. Intangible assets Intangible assets were recorded in connection with business acquisitions and are stated at estimated fair value at the time of acquisition less accumulated amortization. We amortize our acquired intangible assets using the straight-line method using lives ranging from one to ten years. We review intangible assets for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. We measure recoverability of these assets by comparing the carrying amounts to the future undiscounted cash flows the assets are expected to generate. If intangible assets are considered impaired, the impairment to be recognized equals the amount by which the carrying value of the asset exceeds its fair market value. Goodwill We evaluate goodwill for impairment in the fourth quarter annually or more frequently when an event occurs or circumstances change that indicate that the carrying value may not be recoverable. We test goodwill for impairment by performing a qualitative assessment to determine whether the fair value of the reporting unit is more likely than not less than the carrying amount. If we determine that the fair value of the reporting unit is more likely greater than its carrying amount, we do not conduct further impairment testing. If we determine that the fair value of the reporting unit is not more likely greater than the carrying amount, we perform a quantitative two-step impairment test. The first step compares the fair value of the reporting unit with its carrying amount, including goodwill. If the carrying amount exceeds fair value, we then perform the second step of the impairment test to measure the amount of any impairment loss. Third-party software fees payable We record all fees payable and accrued liabilities related to the sale of third-party software, such as Microsoft Windows Embedded and Windows Mobile operating systems, as third-party software fees payable. Research and development Costs incurred internally in researching and developing a computer software product are charged to expense until technological feasibility has been established for the product. Once technological feasibility is established, all software costs would be capitalized until the product is available for general release to customers. Judgment is required in determining when technological feasibility of a product is established. Generally, this would be reached after all high-risk development issues have been resolved through coding and testing and would occur shortly before the product is released. Amortization of costs incurred after this point would be included in cost of revenue over the estimated life of the products. As of December 31, 2017 and 2016, we had not recorded any such capitalized costs. Advertising costs All costs of advertising, including cooperative marketing arrangements, are expensed as incurred. Advertising expense was $388,000 and $45,000 in 2017 and 2016, respectively. Stock-based compensation The estimated fair value of stock-based awards is recognized as compensation expense over the requisite service period, net of estimated forfeitures. We estimate forfeitures of stock-based awards based on historical experience and expected future activity. The fair value of 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 options are 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. Comprehensive loss Comprehensive loss refers to net loss and other revenue, expenses, gains and losses that, under generally accepted accounting principles, are recorded as an element of shareholders’ equity but are excluded from the calculation of net loss. Income taxes We are subject to income taxes in the U.S. and certain foreign jurisdictions. Significant judgment is required in determining our provision for income taxes. We compute income taxes using the asset and liability method, under which deferred income taxes are provided for on the temporary differences between the financial reporting basis and the tax basis of our assets and liabilities. Our deferred tax amounts are measured using currently enacted tax rates that are expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. We apply judgment as to the appropriate weighting of all available evidence when assessing the need for the establishment or the release of valuation allowances. As part of this analysis, we examine all available evidence on a jurisdiction-by-jurisdiction basis and weigh the positive and negative information when determining the need for full or partial valuation allowances. The evidence considered for each jurisdiction includes, among other items, (i) the historical levels of income or loss over a range of time periods that extends beyond the two years presented, (ii) the historical sources of income and losses, (iii) the expectations and risk associated with underlying estimates of future taxable income, (iv) the expectations and risk associated with new product offerings and uncertainties with the timing of future taxable income, and (v) prudent and feasible tax planning strategies. Based on the analysis conducted as of December 31, 2017, we determined that we would not release, in full or in part, the valuation allowance against our U.S. gross deferred tax assets. We recognize tax benefits from an uncertain position only if it is “more likely than not” that the position is sustainable, based on its technical merits. The tax benefit of a qualifying position is the largest amount of tax benefit that is greater than fifty percent likely of being realized upon ultimate settlement with a taxing authority having full knowledge of all relevant information. Interest and penalties related to uncertain tax positions are classified in the consolidated financial statements as income tax expense. Foreign currency The functional currency of foreign subsidiaries is their local currency. Accordingly, assets and liabilities are translated into U.S. dollars at exchange rates in effect at the balance sheet date. Resulting translation adjustments are included in other comprehensive loss and accumulated other comprehensive loss, a separate component of shareholders’ equity. The net gains and losses resulting from foreign currency transactions are recorded in the period incurred and were not significant for any of the periods presented. Revenue recognition The following is a description of principal activities from which we generate revenue. Revenue is recognized when control of the promised goods or services is 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 revenue from support and maintenance performance obligations over the service delivery period. We recognize revenue 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 only one distinct 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 DataV software pilot services, software implementation and customization. We have certain legacy contracts to deliver other engineering services to customers that we will continue to serve as long as they are profitable; some of our legacy services customers may become DataV customers. To date, the majority of our DataV services contracts are fixed fee pilot programs. We identify each performance obligation in our professional engineering services contracts at contract inception. The contracts generally include project deliverables specified by each customer; for DataV services contracts, the goal of the contract is to assess customer data and demonstrate how DataV applications solve the customer’s business use case, with success resulting in a DataV software license. The performance obligations for both DataV and other service contracts 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 the majority of our legacy non-DataV professional engineering contracts generally result in the transfer of control of the applicable deliverable over time. For most legacy service contracts, 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 (under ASC 606, the ‘input method’) to the total hours expected to complete the contract performance obligation. Certain professional engineering contracts include substantive customer acceptance provisions, in which case we recognize revenue upon customer acceptance. For most DataV pilot service contracts we recognize revenue upon completion of the pilot. For contracts that require the input method for revenue recognition, the determination of the total labor hours expected to complete the performance obligations on fixed fee contracts involves significant judgment. We incorporate revisions to hour and cost estimates when the causal facts become known. 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. Recently issued accounting pronouncements In February 2016, the FASB issued ASU No. 2016-02, “Leases,” to make leasing activities more transparent and comparable, requiring most leases to be recognized by lessees on their balance sheets as right-of-use assets, along with corresponding lease liabilities. ASU 2016-02 is effective 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 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 two from the goodwill impairment test described above. 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. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 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 that date. Results for reporting periods beginning after January 1, 2017 are presented under Topic 606, while prior period results are not adjusted and continue to be reported under the accounting standards in effect for the prior period. We recorded an increase to opening equity of $404,000 as of January 1, 2017 due to the cumulative impact of adopting Topic 606. The impact to revenue for the year ended December 31, 2017 was an increase of $1.9 million 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 service revenue; however, it did have a significant impact on our proprietary DataV software products and services revenue. 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, revenue from our DataV software contracts was 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. 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): Year Ended December 31, 2017 Third-Party Software Proprietary Software Total Software Professional Engineering Service Total Primary geographical markets: North America $ 63,430 $ 3,950 $ 67,380 $ 8,682 $ 76,062 Europe 1,914 - 1,914 1,191 3,105 Asia 411 696 1,107 537 1,644 Total $ 65,755 $ 4,646 $ 70,401 $ 10,410 $ 80,811 Major products/services lines: Third-party software $ 65,755 $ - $ 65,755 $ - $ 65,755 Proprietary software - 4,646 4,646 - 4,646 Professional engineering services - - - 10,410 10,410 Total $ 65,755 $ 4,646 $ 70,401 $ 10,410 $ 80,811 Timing of revenue recognition: Transferred at a point in time $ 65,608 $ 3,696 $ 69,304 $ 861 $ 70,165 Transferred over time 147 950 1,097 9,549 10,646 Total $ 65,755 $ 4,646 $ 70,401 $ 10,410 $ 80,811 Contract Balances The following table provides information about receivables, contract assets and contract liabilities from contracts with customers (in thousands): December 31, 2017 Receivables $ 18,014 Short-term contract assets 937 Long-term contract assets 30 Short-term contract liabilities (deferred revenue) 3,219 Long-term contract liabilities (deferred revenue) 61 We receive payments from customers based upon contractual billing schedules. Accounts receivable are recorded when the right to consideration becomes unconditional. Contract assets include 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 contract assets and liabilities balances were as follows (in thousands): December 31, 2017 Contract Assets Contract Liabilities (1) Revenue recognized that was included in the contract liability at beginning of the period $ - $ 3,068 Transferred to receivables from contract assets recognized at beginning of the period $ 780 $ - (1) 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 lives exceeding one year, as is more common with our DataV software bookings, we record these costs in proportion to each completed contract performance obligation. During the year ended December 31, 2017, the amount of amortization was $168,000, and there was no impairment loss in relation to costs capitalized. During the year ended December 31, 2017, an additional $87,000 in contract acquisition costs were capitalized. Performance obligations We did not recognize any revenue from performance obligations satisfied in previous periods. 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, in thousands. The estimated revenue does not include contracts with original durations of one year or less, amounts of variable consideration attributable to royalties, or contract renewals that are unexercised as of December 31, 2017. 2018 2019 2020 2021 Third-party software $ 110 $ 36 $ - $ - Proprietary software 2,655 1,133 820 114 Professional engineering services 760 - - - 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 consolidated statements of operations was as follows (in thousands, except per share amounts): Year Ended December 31, 2017 As reported Balances without adoption of Topic 606 Effect of change - higher (lower) Revenue: Third-party software $ 65,755 $ 65,755 $ — Proprietary software 4,646 2,964 1,682 Professional engineering service 10,410 10,198 212 Total revenue 80,811 78,917 1,894 Cost of revenue: Third-party software 55,161 55,161 — Proprietary software 163 163 — Professional engineering service 7,365 7,277 88 Total cost of revenue 62,689 62,601 88 Gross profit 18,122 16,316 1,806 Operating expenses: Selling, general and administrative 20,982 20,909 73 Research and development 6,561 6,561 — Total operating expenses 27,543 27,470 73 Loss from operations (9,421 ) (11,154 ) 1,733 Other income, net 214 214 — Loss before income taxes (9,207 ) (10,940 ) 1,733 Income tax benefit 149 149 — Net loss $ (9,058 ) $ (10,791 ) $ 1,733 Basic loss per share $ (0.72 ) $ (0.86 ) $ 0.14 Diluted loss per share $ (0.72 ) $ (0.86 ) $ 0.14 In accordance with Topic 606, the disclosure of the impact of adoption to our consolidated balance sheet was as follows (in thousands): December 31, 2017 As reported Balances without adoption of Topic 606 Effect of change - higher (lower) Assets: Contract assets $ 937 $ 753 $ 184 Other noncurrent assets 89 59 30 Liabilities: Deferred revenue - current 3,219 4,243 (1,024 ) Deferred revenue - noncurrent 61 556 (495 ) Shareholders' Equity: Accumulated deficit (105,276 ) (107,009 ) 1,733 |
Cash and Investments
Cash and Investments | 12 Months Ended |
Dec. 31, 2017 | |
Cash And Cash Equivalents [Abstract] | |
Cash and Investments | 3. Cash and Investments Cash, cash equivalents and short-term investments consisted of the following (in thousands): December 31, 2017 2016 Cash $ 6,340 $ 11,016 Cash equivalents (see detail in Note 4) 6,519 3,296 Total cash and cash equivalents 12,859 14,312 Short-term investments (see detail in Note 4) 11,895 18,888 Total cash, cash equivalents, and short-term investments $ 24,754 $ 33,200 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 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. We review the pricing techniques and methodologies of the independent pricing service for Level 2 investments and believe that the policies adequately consider market activity, either based on specific transactions for the security valued or based on modeling of securities with similar credit quality, duration, yield and structure that were recently traded. Assets and liabilities measured at fair value on a recurring basis were as follows (in thousands): December 31, 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 $ 2,274 $ - $ 2,274 Corporate commercial paper - 3,245 3,245 Corporate debt - 1,000 1,000 Total cash equivalents 2,274 4,245 6,519 Short-term investments: Corporate commercial paper - 5,480 5,480 Corporate debt - 6,415 6,415 Total short-term investments - 11,895 11,895 Total assets measured at fair value $ 2,274 $ 16,140 $ 18,414 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 Corporate debt - - - Total cash equivalents 2,796 500 3,296 Short-term investments: Corporate commercial paper - 11,465 11,465 Corporate debt - 7,423 7,423 Total short-term investments - 18,888 18,888 Total assets measured at fair value $ 2,796 $ 19,388 $ 22,184 |
Equipment, Furniture and Leaseh
Equipment, Furniture and Leasehold Improvements | 12 Months Ended |
Dec. 31, 2017 | |
Property Plant And Equipment [Abstract] | |
Equipment, Furniture and Leasehold Improvements | 5. Equipment, Furniture and Leasehold Improvements Equipment, furniture, and leasehold improvements consisted of the following (in thousands): December 31, 2017 2016 Computer equipment and software $ 1,819 $ 2,929 Office furniture and equipment 321 357 Leasehold improvements 1,189 1,192 Total 3,329 4,478 Less: accumulated depreciation and amortization (2,340 ) (3,389 ) Equipment, furniture and leasehold improvements, net $ 989 $ 1,089 Depreciation and amortization expense related to these assets was $536,000 and $468,000 in 2017 and 2016, respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 6 . Goodwill and Intangible Assets Goodwill was 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 service reporting unit. There were no changes in the carrying amount of goodwill in 2017 and 2016. 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 and were as follows (in thousands): Gross Carrying Accumulated Net Carrying Amount Amortization Value Customer relationships: Balance as of December 31, 2017 $ 1,275 $ (910 ) $ 365 Balance as of December 31, 2016 $ 1,275 $ (811 ) $ 464 Amortization expense was $98,000 and $130,000 for 2017 and 2016, respectively. Amortization expense in future periods is expected to be as follows (in thousands): 2018 $ 98 2019 98 2020 98 2021 71 Total $ 365 |
Other Income and Loss
Other Income and Loss | 12 Months Ended |
Dec. 31, 2017 | |
Other Income And Loss [Abstract] | |
Other Income and Loss | 7. Other Income and Loss Other income and loss consisted of the following (in thousands): Year Ended December 31, 2017 2016 Interest income $ 238 $ 137 Other income (loss) (24 ) 110 Total $ 214 $ 247 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8. Income Taxes Pre-tax loss consisted of the following (in thousands): Year Ended December 31, 2017 2016 U.S. $ (8,885 ) $ (580 ) Foreign (322 ) (331 ) Total $ (9,207 ) $ (911 ) Income tax benefit (expense) consisted of the following (in thousands): Year Ended December 31, 2017 2016 Current taxes: Federal $ (79 ) $ (24 ) State and local (1 ) 38 Foreign (42 ) 41 Current taxes (122 ) 55 Deferred taxes: Federal - - State and local - - Foreign (27 ) 86 Deferred taxes (27 ) 86 Total $ (149 ) $ 141 Net deferred tax assets and liabilities consisted of the following (in thousands): December 31, 2017 2016 Depreciation and amortization $ 238 $ 365 Accrued expenses and reserves 148 345 Deferred revenue 508 66 Net operating loss carryforwards 14,561 20,448 Research and development credit carryforwards 3,037 2,740 Stock-based compensation 940 840 Other 10 91 Gross deferred tax assets 19,442 24,895 Less: valuation allowance (19,442 ) (24,911 ) Net deferred tax assets (liability) $ - $ (16 ) Net deferred tax assets and liabilities were recorded as follows (in thousands): December 31, 2017 2016 Deferred tax assets, non-current $ - $ 7 Deferred tax liability, non-current - (23 ) Net deferred tax assets (liability) $ - $ (16 ) The Tax Cuts and Jobs Act was enacted on December 22, 2017 (the “Tax Act”) and introduces significant changes to U.S. income tax law. Our accounting for the elements of the Tax Act that were effective for 2017 is complete and its impact is reflected in our 2017 consolidated financial statements. The Tax Act reduces the US federal corporate tax rate from 35% in 2017 to 21% beginning in 2018. The anticipated impact of the Tax Act for us is an $8.9 million reduction in our net deferred tax assets to reflect the new statutory rate. The rate adjustment to the deferred tax assets, a discrete item for the quarter, was fully offset by a decrease in the valuation allowance so there is no rate impact to us. Effective in 2018, companies may be subject to global intangible low tax income (“GILTI”) which is a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. GILTI will be effectively taxed at a tax rate of 10.5%. Due to the complexity of the GILTI tax rules, companies are allowed to make an accounting policy choice of either (1) treating taxes due on future U.S. inclusions in taxable income related to GILTI as a current-period expense when incurred or (2) factoring such amounts into a company’s measurement of its deferred taxes. We are electing to treat taxes due on future U.S. inclusions in taxable income related to GILTI as a current-period expense when incurred, and therefore there was no impact to our deferred tax rate in 2017. As of December 31, 2017, our deferred tax assets were primarily the result of U.S. net operating loss, research and development credit carryforwards and stock-based compensation expense. We have applied a full valuation allowance against the U.S. deferred tax assets in the U.S. and foreign jurisdictions. We use judgment as to the appropriate weighting of all available evidence when assessing the need for the establishment or the release of valuation allowances. As part of this analysis, we examine all available evidence on a jurisdiction-by-jurisdiction basis and weigh the positive and negative information when determining the need for full or partial valuation allowances. The evidence considered for each jurisdiction includes, among other items, (i) the historical levels of income or loss over a range of time periods that extends beyond the two years presented, (ii) the historical sources of income and losses, (iii) the expectations and risk associated with underlying estimates of future taxable income, (iv) the expectations and risk associated with new product offerings and uncertainties with the timing of future taxable income, and (v) prudent and feasible tax planning strategies. Based on the analysis conducted as of December 31, 2017, we determined that we would not release, in full or in part, the valuation allowance against our U.S. gross deferred tax assets. The provision for income taxes differed from the amount of expected income tax expense determined by applying the applicable U.S. statutory federal income tax rate to pre-tax loss as follows (in thousands, except percentages): Year Ended December 31, 2017 2016 U.S. Federal tax benefit at statutory rates $ (3,130 ) 34.0 % $ (310 ) 34.0 % Impact of: Tax credits (376 ) 4.1 % (170 ) 18.6 % State income tax (1 ) 0.0 % 25 (2.7 )% International operations 168 (1.8 )% 183 (20.1 )% Stock-based compensation (130 ) 1.4 % (23 ) 2.6 % Valuation allowance (5,688 ) 61.8 % 311 (34.2 )% Expiration of state net operating loss carryforwards - (— )% 77 (8.5 )% Impact of tax reform 8,929 (97.0 )% Other, net 79 (0.9 )% 48 (5.4 )% Tax expense (benefit) and effective tax rate $ (149 ) 1.6 % $ 141 (15.7 )% At December 31, 2017, we had approximately $61.6 million of federal and $4.4 million of state net operating loss carryforwards, which have begun to expire, including approximately $1.2 million of state losses which will expire in 2026. Of the federal net operating loss carryforwards, approximately $36.3 million will expire in 2022 and 2023. We also have approximately $3.0 million of tax credit carryforwards, which begin to expire in 2018. Use of these carryforwards may subject us to an annual limitation due to Section 382 of the U.S. Internal Revenue Code that restricts the ability of a corporation that undergoes an ownership change to use its carryforwards. Under the applicable tax rules, an ownership change occurs if holders of more than five percent of an issuer’s outstanding common stock, collectively, increase their ownership percentage by more than 50 percentage points over a rolling three-year period. We have performed analyses of possible ownership changes in the past, which included consideration of third-party studies, and do not believe that an ownership change of more than 50 percentage points has occurred. We have evaluated all the material income tax positions taken on our income tax filings to various tax authorities, and we determined that we did not have unrealized tax benefits related to uncertain tax positions recorded at December 31, 2017 or 2016. Because of net operating loss and tax credit carryforwards, substantially all of our tax years remain open and subject to examination. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 9. Commitments and Contingencies Contractual commitments Our commitments include obligations under operating leases, which expire through 2020. We have lease commitments for office space in Bellevue, Washington; Taipei, Taiwan; Trowbridge, UK; and Tokyo, Japan. We also lease office space on a month-to-month basis in Akron, Ohio, and on an annual basis in Boston, Massachusetts. Rent expense was approximately $1.0 million in each of 2017 and 2016. We had $250,000 pledged as collateral for a bank letter of credit under the terms of our headquarters facility lease. The pledged cash supporting the outstanding letter of credit was recorded as restricted cash equivalents. In September 2016, this letter of credit agreement was replaced by a letter of credit secured by our credit agreement and the corresponding restricted cash equivalents were returned to us. Operating lease commitments are as follows (in thousands): 2018 $ 1,173 2019 1,038 2020 437 Total $ 2,648 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. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Shareholders' Equity | 10. 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 may be granted with a fixed exercise price that is equivalent 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, restricted and unrestricted stock awards, and RSUs. 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 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 options 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: Year Ended December 31, 2017 2016 Dividend yield 0 % 0 % Expected life 6.5 years 6.5 years Expected volatility 52 % 55 % Risk-free interest rate 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): Year Ended December 31, 2017 2016 Cost of revenue— professional engineering service $ 107 $ 220 Selling, general and administrative 1,414 868 Research and development 236 159 Total stock-based compensation expense $ 1,757 $ 1,247 Per basic share $ 0.14 $ 0.10 Per diluted share $ 0.14 $ 0.10 Stock option activity The following table summarizes stock option activity: Weighted Average Remaining Weighted Average Contractual Life Aggregate Number of Shares Exercise Price (in years) Intrinsic Value Balance at December 31, 2015 1,778,697 $ 4.43 7.83 Granted 903,248 $ 5.24 Exercised (371,845 ) $ 3.17 Forfeited (396,161 ) $ 5.32 Expired (67,171 ) $ 5.91 Balance at December 31, 2016 1,846,768 $ 4.84 8.19 Granted 248,100 $ 5.18 Exercised (54,692 ) $ 3.66 Forfeited (91,411 ) $ 5.31 Expired (36,604 ) $ 5.83 Balance at December 31, 2017 1,912,161 $ 4.88 7.61 $ 781,735 Vested and expected to vest at December 31, 2017 1,792,667 $ 4.85 7.52 $ 781,025 Exercisable at December 31, 2017 1,065,767 $ 4.48 6.63 $ 775,767 At December 31, 2017, total compensation cost related to stock options granted but not yet recognized was approximately $1,016,877, net of estimated forfeitures. This cost will be amortized on the straight-line method over a weighted-average period of approximately 1.50 years. The following table summarizes certain additional information about stock options: Year Ended December 31, 2017 2016 Weighted average grant-date fair value for options granted during the year $ 2.62 $ 2.63 Vested options in-the-money 603,925 605,017 Aggregate intrinsic value of options exercised during the year $ 104,512 $ 773,327 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 exercised during the periods indicated. We issue new shares of common stock upon exercise of stock options. Restricted stock unit activity The following table summarizes RSU activity : Number of Weighted Average Shares Award Price Unvested at December 31, 2015 104,463 $ 5.97 Granted 107,370 $ 5.41 Vested (76,258 ) $ 5.81 Forfeited (15,969 ) $ 5.77 Unvested at December 31, 2016 119,606 $ 5.60 Granted 79,819 $ 4.98 Vested (82,457 ) $ 5.39 Forfeited — $ — Unvested at December 31, 2017 116,968 $ 5.33 Expected to vest after December 31, 2017 102,796 $ 5.33 At December 31, 2017, total compensation cost related to RSUs granted but not recognized was approximately $237,386, net of estimated forfeitures. This cost will be amortized on the straight-line method over a weighted-average period of approximately 1.12 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 December 31, 2017: Stock options outstanding 1,912,161 Restricted stock units outstanding 116,968 Stock options available for future grant 1,189,256 Common stock reserved for future issuance 3,218,385 |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2017 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plan | 11. Employee Benefit Plan We have a Profit Sharing and Deferred Compensation Plan, The BSQUARE Corporation 401(k) Plan and Trust (the “Profit Sharing Plan”) under Section 401(k) of the Internal Revenue Code of 1986, as amended. Substantially all full-time employees are eligible to participate in the Profit Sharing Plan. We typically elect to match the participants’ contributions to the Profit Sharing Plan up to a certain amount subject to vesting. Participants will receive their share of the value of their investments, and any applicable vested match, upon retirement or termination. We made matching contributions of $410,000 and $321,000 in 2017 and 2016, respectively. |
Significant Concentrations
Significant Concentrations | 12 Months Ended |
Dec. 31, 2017 | |
Risks And Uncertainties [Abstract] | |
Significant Concentrations | 12. Significant Concentrations Significant customer Honeywell International, Inc. and affiliated entities (“Honeywell”) had revenue and accounts receivable as follows (in thousands, except percentages): Year Ended December 31, 2017 2016 Honeywell revenue $ 12,278 $ 13,696 As a percentage of total revenue 15 % 14 % December 31, 2017 2016 Honeywell accounts receivable $ 8,659 $ 7,075 As a percentage of total accounts receivable 48 % 33 % No other customer accounted for 10% or more of total revenue in 2017 or 2016 or 10% or more of total accounts receivable at December 31, 2017 or 2016. Significant supplier We have ODAs with 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 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 rebates 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 recorded rebate credits as follows (in thousands): Year Ended December 31, 2017 2016 Reductions to cost of revenue $ 499 $ 345 Reductions to marketing expense $ 658 $ 1,085 There was a balance of approximately $411,000 in outstanding rebate credits for which we qualified as of December 31, 2017. If qualified program expenditures are made, these will be accounted for as reductions in marketing expense in the period in which such 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 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. |
Credit Agreement
Credit Agreement | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Credit Agreement | 13. Credit Agreement Line of credit In September 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 $12.0 million. In September 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 December 31, 2017. At December 31, 2017, the required interest coverage ratio would not permit us to borrow under the Credit Agreement. There were no amounts outstanding under the Credit Agreement as of December 31, 2017 or 2016. In September 2016, we entered into a letter of credit agreement for $250,000 secured by the Credit Agreement in connection with the lease of our corporate headquarters. Accordingly, the maximum principal amount available if we were eligible to borrow under the Credit Agreement has been reduced to $11.75 million. |
Restructuring
Restructuring | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring And Related Activities [Abstract] | |
Restructuring | 14. Restructuring During the third quarter of 2016, our board of directors approved a restructuring plan that included a workforce reduction in our professional engineering service group. The workforce reduction impacted 33 personnel, comprised of both employees and consultants and representing approximately 17% of our pre-reduction headcount, and was intended to reduce expenses and to better align our organizational structure with our increasing strategic focus on our DataV software and service. We incurred the following restructuring charges in 2016, which represented one-time cash employee termination benefit (mostly related to severance and accrued paid-time-of) and were included in the results of operations as follows (in thousands): Year Ended December 31, 2016 Cost of revenue $ 968 Selling, general and administrative 17 Total $ 985 The staff reductions were completed, and related amounts were fully paid out, in the fourth quarter of 2016. |
Information about Operating Seg
Information about Operating Segments and Geographic Areas | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Information about Operating Segments and Geographic Areas | 15. Information about Operating Segments and Geographic Areas 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 three major product lines—third-party software, proprietary software and professional engineering service--each of which we consider to be operating and reportable segments. 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): Year Ended December 31, 2017 2016 Third-party software: Revenue $ 65,755 $ 80,231 Cost of revenue 55,161 67,853 Gross profit 10,594 12,378 Proprietary software: Revenue 4,646 1,939 Cost of revenue 163 329 Gross profit 4,483 1,610 Professional Engineering Service: Revenue 10,410 15,271 Cost of revenue 7,365 13,439 Gross profit 3,045 1,832 Total gross profit 18,122 15,820 Operating expenses 27,543 16,978 Other income, net 214 247 Income tax benefit (expense) 149 (141 ) Net loss $ (9,058 ) $ (1,052 ) 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): Year Ended December 31, 2017 2016 Total revenue: North America $ 76,062 $ 92,299 Asia 1,644 2,024 Europe 3,105 3,118 Total revenue $ 80,811 $ 97,441 December 31, 2017 2016 Long-lived assets: North America $ 991 $ 1,025 Asia 76 90 Europe 4,114 4,236 Total long-lived assets $ 5,181 $ 5,351 |
Quarterly Financial Information
Quarterly Financial Information (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (Unaudited) | 16. Quarterly Financial Information (Unaudited) Condensed Consolidated Statements of Operations 2017 Q1 Q2 Q3 Q4 (in thousands, except per share data) Revenue $ 22,841 $ 18,848 $ 19,653 $ 19,469 Gross profit $ 6,253 $ 3,873 $ 4,380 $ 3,616 Income (loss) from operations $ 41 $ (2,619 ) $ (2,546 ) $ (4,297 ) Net income (loss) $ 202 $ (2,560 ) $ (2,468 ) $ (4,232 ) Basic income (loss) per share $ 0.02 $ (0.20 ) $ (0.20 ) $ (0.33 ) Diluted income (loss) per share $ 0.02 $ (0.20 ) $ (0.20 ) $ (0.33 ) Shares used in per share calculations: Basic 12,550 12,577 12,607 12,640 Diluted 12,848 12,577 12,607 12,640 2016 Q1 Q2 Q3 Q4 (in thousands, except per share data) Revenue $ 25,439 $ 22,738 $ 22,467 $ 26,797 Gross profit $ 4,296 $ 3,893 $ 3,677 $ 3,954 Income (loss) from operations $ 649 $ (85 ) $ (415 ) $ (1,307 ) Net income (loss) $ 500 $ (185 ) $ (106 ) $ (1,261 ) Basic income (loss) per share $ 0.04 $ (0.02 ) $ (0.01 ) $ (0.10 ) Diluted income (loss) per share $ 0.04 $ (0.02 ) $ (0.01 ) $ (0.10 ) Shares used in per share calculations: Basic 12,102 12,152 12,310 12,473 Diluted 12,531 12,152 12,310 12,473 Condensed Consolidated Balance Sheets 2017 March 31 June 30 September 30 December 31 (in thousands) Cash, cash equivalents and short-term investments $ 30,984 $ 27,296 $ 26,758 $ 24,754 Total current assets $ 49,092 $ 47,077 $ 45,021 $ 44,253 Total assets $ 54,403 $ 52,395 $ 50,247 $ 49,434 Total current liabilities $ 14,310 $ 14,445 $ 14,351 $ 17,427 Total shareholders' equity $ 39,206 $ 37,099 $ 35,238 $ 31,430 2016 March 31 June 30 September 30 December 31 (in thousands) Cash, cash equivalents and short-term investments $ 27,626 $ 26,898 $ 31,577 $ 33,200 Total current assets $ 49,683 $ 47,059 $ 51,844 $ 55,657 Total assets $ 55,389 $ 52,680 $ 57,355 $ 61,008 Total current liabilities $ 16,322 $ 13,407 $ 15,502 $ 20,221 Total shareholders' equity $ 37,873 $ 38,166 $ 38,790 $ 38,112 |
Description of Business and A23
Description of Business and Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Description of business | Description of business BSQUARE Corporation (“BSQUARE”) was incorporated in Washington State in July 1994. Since our inception, our business has largely been focused on providing software solutions (historically, including reselling software from Microsoft Corporation (“Microsoft”)) and related engineering services to businesses that develop, market and sell dedicated-purpose standalone intelligent systems. Examples of dedicated-purpose standalone intelligent systems include smart, connected computing devices such as smart phones, set-top boxes, point-of-sale terminals, kiosks, tablets and handheld data collection devices, as well as smart vending machines, ATM machines, digital signs and in-vehicle telematics and entertainment devices. Beginning in early 2014, we initiated development efforts focused on new proprietary software products addressing the Industrial Internet of Things (“IIoT”) market, by interconnecting of uniquely identifiable devices, extracting data from those devices and applying advanced analytics and machine learning to the data in order to derive meaningful and actionable insights. While IIoT is a relatively new market, we believe the work we have engaged in since our inception—namely adding intelligence and connectivity to discrete standalone devices and systems—embodies much of what is central to the core functionality of IIoT. These software development efforts have driven a new business initiative for BSQUARE, which we refer to as DataV™. Our DataV solution includes software products, applications and services that are designed to turn raw IIoT device data into meaningful and actionable data for our customers. |
Basis of consolidation | Basis of consolidation The consolidated financial statements include the accounts of BSQUARE and our wholly owned subsidiaries. All intercompany balances and transactions 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 eliminated 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. We made an entity-wide accounting policy election to recognize share-based award forfeitures as they occur rather than at vest date, which did not have a material impact on our consolidated financial statements. 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 operating activities rather than in financing activities 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 effective for annual and interim reporting periods beginning after December 15, 2016. We elected to early adopt Topic 606, effective January 1, 2017, using the modified retrospective transition method. As a result of this adoption, we recognized a cumulative effect adjustment to 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 further discussion in Note 2 “Revenue Recognition.” |
Use of estimates | Use of estimates Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Examples include provisions for bad debts and income taxes, estimates of progress on professional engineering service arrangements, bonus accruals, fair value of intangible assets and property and equipment, fair values of stock-based awards and the fair values of acquired assets and liabilities, among other estimates. Actual results may differ from these estimates. |
Income (loss) per share | Income (loss) per share We compute basic per share amounts 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 and restricted stock units (“RSUs”). We consider RSUs as outstanding and include them in the computation of basic income or loss per share only when vested. We compute diluted per share amounts using the weighted average number of common shares outstanding plus 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. Unvested but outstanding RSUs are included in the diluted per share calculation. In a period where we are in a net loss position, the diluted loss per share is computed using the basic share count. The following table presents a reconciliation of the number of shares used in the calculation of basic and diluted per share amounts (in thousands): Year Ended December 31, 2017 2016 Weighted average common shares outstanding, basic 12,594 12,260 Dilutive potential common shares — — Weighted average common shares outstanding, diluted 12,594 12,260 Common stock equivalent shares of approximately 1,227,000 and 691,000 were excluded from the computation of diluted per share amounts for the years ended December 31, 2017 and 2016, respectively, because their effect was anti-dilutive. |
Cash, cash equivalents and investments | Cash, cash equivalents and investments We invest our excess cash primarily in highly liquid debt instruments of U.S. government agencies and municipalities, debt instruments issued by foreign governments, corporate commercial paper, money market funds, and corporate debt securities. We classify all highly liquid investments with stated maturities of three months or less from date of purchase as cash equivalents and all highly liquid investments with stated maturities of greater than three months as short-term investments. Short-term investments consist entirely of marketable securities, which are all classified as available-for-sale securities and are recorded at their estimated fair value. We determine the appropriate classification of our investments at the time of purchase and reevaluate such designation at each balance sheet date. We may or may not hold securities with stated maturities greater than 12 months until maturity. As we view these securities as available to support current operations, we classify securities with maturities less than 12 months as short-term investments. We carry these securities at fair value and report the unrealized gains and losses, net of taxes, as a component of shareholders’ equity, except for unrealized losses determined to be other than temporary, which are recorded in other expense. |
Restricted cash | Restricted cash We had a restricted cash equivalents balance for funds held at a financial institution as security for an outstanding letter of credit related to our corporate headquarters lease obligation. The full balance of restricted cash equivalents was released in September 2016 when we entered into a new letter of credit agreement secured by our credit agreement with JPMorgan Chase Bank, N.A. |
Financial instruments and concentrations of risk | Financial instruments and concentrations of risk Financial instruments that potentially subject us to concentrations of credit risk consist principally of cash, cash equivalents, short-term investments, and accounts receivable. |
Allowance for doubtful accounts | Allowance for doubtful accounts We record accounts receivable at the invoiced amount net of an estimated allowance for doubtful accounts to reserve for potentially uncollectible receivables. We review customers that have past due invoices to identify specific customers with known disputes or collectability issues. In determining the amount of the allowance, we make judgments about the creditworthiness of significant customers based on ongoing credit evaluations. |
Equipment, furniture and leasehold improvements | Equipment, furniture and leasehold improvements We account for equipment, furniture and leasehold improvements at cost less accumulated depreciation and amortization. We compute depreciation of equipment and furniture using the straight-line method over the estimated useful lives of the assets, generally three years. Leasehold improvements are amortized using the straight-line method over the shorter of the lease term or estimated useful lives, ranging from two to ten years. We expense maintenance and repair costs as incurred. When assets are retired or otherwise disposed of, gains or losses are included in the consolidated statements of operations. When facts and circumstances indicate that the value of long-lived assets may be impaired, we perform an evaluation of recoverability comparing the carrying value of the asset to projected undiscounted future cash flows. Upon indication that the carrying value of such assets may not be recoverable, we recognize an impairment loss as a charge against current operations based on the difference between the carrying value of the asset and its fair value. |
Intangible assets | Intangible assets Intangible assets were recorded in connection with business acquisitions and are stated at estimated fair value at the time of acquisition less accumulated amortization. We amortize our acquired intangible assets using the straight-line method using lives ranging from one to ten years. We review intangible assets for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. We measure recoverability of these assets by comparing the carrying amounts to the future undiscounted cash flows the assets are expected to generate. If intangible assets are considered impaired, the impairment to be recognized equals the amount by which the carrying value of the asset exceeds its fair market value. |
Goodwill | Goodwill We evaluate goodwill for impairment in the fourth quarter annually or more frequently when an event occurs or circumstances change that indicate that the carrying value may not be recoverable. We test goodwill for impairment by performing a qualitative assessment to determine whether the fair value of the reporting unit is more likely than not less than the carrying amount. If we determine that the fair value of the reporting unit is more likely greater than its carrying amount, we do not conduct further impairment testing. If we determine that the fair value of the reporting unit is not more likely greater than the carrying amount, we perform a quantitative two-step impairment test. The first step compares the fair value of the reporting unit with its carrying amount, including goodwill. If the carrying amount exceeds fair value, we then perform the second step of the impairment test to measure the amount of any impairment loss. |
Third-party software fees payable | Third-party software fees payable We record all fees payable and accrued liabilities related to the sale of third-party software, such as Microsoft Windows Embedded and Windows Mobile operating systems, as third-party software fees payable. |
Research and development | Research and development Costs incurred internally in researching and developing a computer software product are charged to expense until technological feasibility has been established for the product. Once technological feasibility is established, all software costs would be capitalized until the product is available for general release to customers. Judgment is required in determining when technological feasibility of a product is established. Generally, this would be reached after all high-risk development issues have been resolved through coding and testing and would occur shortly before the product is released. Amortization of costs incurred after this point would be included in cost of revenue over the estimated life of the products. As of December 31, 2017 and 2016, we had not recorded any such capitalized costs. |
Advertising costs | Advertising costs All costs of advertising, including cooperative marketing arrangements, are expensed as incurred. Advertising expense was $388,000 and $45,000 in 2017 and 2016, respectively. |
Stock-based compensation | Stock-based compensation The estimated fair value of stock-based awards is recognized as compensation expense over the requisite service period, net of estimated forfeitures. We estimate forfeitures of stock-based awards based on historical experience and expected future activity. The fair value of 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 options are 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. |
Comprehensive ;loss | Comprehensive loss Comprehensive loss refers to net loss and other revenue, expenses, gains and losses that, under generally accepted accounting principles, are recorded as an element of shareholders’ equity but are excluded from the calculation of net loss. |
Income taxes | Income taxes We are subject to income taxes in the U.S. and certain foreign jurisdictions. Significant judgment is required in determining our provision for income taxes. We compute income taxes using the asset and liability method, under which deferred income taxes are provided for on the temporary differences between the financial reporting basis and the tax basis of our assets and liabilities. Our deferred tax amounts are measured using currently enacted tax rates that are expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. We apply judgment as to the appropriate weighting of all available evidence when assessing the need for the establishment or the release of valuation allowances. As part of this analysis, we examine all available evidence on a jurisdiction-by-jurisdiction basis and weigh the positive and negative information when determining the need for full or partial valuation allowances. The evidence considered for each jurisdiction includes, among other items, (i) the historical levels of income or loss over a range of time periods that extends beyond the two years presented, (ii) the historical sources of income and losses, (iii) the expectations and risk associated with underlying estimates of future taxable income, (iv) the expectations and risk associated with new product offerings and uncertainties with the timing of future taxable income, and (v) prudent and feasible tax planning strategies. Based on the analysis conducted as of December 31, 2017, we determined that we would not release, in full or in part, the valuation allowance against our U.S. gross deferred tax assets. We recognize tax benefits from an uncertain position only if it is “more likely than not” that the position is sustainable, based on its technical merits. The tax benefit of a qualifying position is the largest amount of tax benefit that is greater than fifty percent likely of being realized upon ultimate settlement with a taxing authority having full knowledge of all relevant information. Interest and penalties related to uncertain tax positions are classified in the consolidated financial statements as income tax expense. |
Foreign currency | Foreign currency The functional currency of foreign subsidiaries is their local currency. Accordingly, assets and liabilities are translated into U.S. dollars at exchange rates in effect at the balance sheet date. Resulting translation adjustments are included in other comprehensive loss and accumulated other comprehensive loss, a separate component of shareholders’ equity. The net gains and losses resulting from foreign currency transactions are recorded in the period incurred and were not significant for any of the periods presented. |
Revenue recognition | Revenue recognition The following is a description of principal activities from which we generate revenue. Revenue is recognized when control of the promised goods or services is 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 revenue from support and maintenance performance obligations over the service delivery period. We recognize revenue 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 only one distinct 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 DataV software pilot services, software implementation and customization. We have certain legacy contracts to deliver other engineering services to customers that we will continue to serve as long as they are profitable; some of our legacy services customers may become DataV customers. To date, the majority of our DataV services contracts are fixed fee pilot programs. We identify each performance obligation in our professional engineering services contracts at contract inception. The contracts generally include project deliverables specified by each customer; for DataV services contracts, the goal of the contract is to assess customer data and demonstrate how DataV applications solve the customer’s business use case, with success resulting in a DataV software license. The performance obligations for both DataV and other service contracts 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 the majority of our legacy non-DataV professional engineering contracts generally result in the transfer of control of the applicable deliverable over time. For most legacy service contracts, 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 (under ASC 606, the ‘input method’) to the total hours expected to complete the contract performance obligation. Certain professional engineering contracts include substantive customer acceptance provisions, in which case we recognize revenue upon customer acceptance. For most DataV pilot service contracts we recognize revenue upon completion of the pilot. For contracts that require the input method for revenue recognition, the determination of the total labor hours expected to complete the performance obligations on fixed fee contracts involves significant judgment. We incorporate revisions to hour and cost estimates when the causal facts become known. 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. |
Recently issued accounting pronouncements | Recently issued accounting pronouncements In February 2016, the FASB issued ASU No. 2016-02, “Leases,” to make leasing activities more transparent and comparable, requiring most leases to be recognized by lessees on their balance sheets as right-of-use assets, along with corresponding lease liabilities. ASU 2016-02 is effective 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 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 two from the goodwill impairment test described above. 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. |
Description of Business and A24
Description of Business and Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Reconciliation of Number of Shares Used in Calculation of Basic and Diluted Per Share Amounts | The following table presents a reconciliation of the number of shares used in the calculation of basic and diluted per share amounts (in thousands): Year Ended December 31, 2017 2016 Weighted average common shares outstanding, basic 12,594 12,260 Dilutive potential common shares — — Weighted average common shares outstanding, diluted 12,594 12,260 |
Revenue Recognition(Tables)
Revenue Recognition(Tables) | 12 Months Ended |
Dec. 31, 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): Year Ended December 31, 2017 Third-Party Software Proprietary Software Total Software Professional Engineering Service Total Primary geographical markets: North America $ 63,430 $ 3,950 $ 67,380 $ 8,682 $ 76,062 Europe 1,914 - 1,914 1,191 3,105 Asia 411 696 1,107 537 1,644 Total $ 65,755 $ 4,646 $ 70,401 $ 10,410 $ 80,811 Major products/services lines: Third-party software $ 65,755 $ - $ 65,755 $ - $ 65,755 Proprietary software - 4,646 4,646 - 4,646 Professional engineering services - - - 10,410 10,410 Total $ 65,755 $ 4,646 $ 70,401 $ 10,410 $ 80,811 Timing of revenue recognition: Transferred at a point in time $ 65,608 $ 3,696 $ 69,304 $ 861 $ 70,165 Transferred over time 147 950 1,097 9,549 10,646 Total $ 65,755 $ 4,646 $ 70,401 $ 10,410 $ 80,811 |
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): December 31, 2017 Receivables $ 18,014 Short-term contract assets 937 Long-term contract assets 30 Short-term contract liabilities (deferred revenue) 3,219 Long-term contract liabilities (deferred revenue) 61 Significant changes in contract assets and liabilities balances were as follows (in thousands): December 31, 2017 Contract Assets Contract Liabilities (1) Revenue recognized that was included in the contract liability at beginning of the period $ - $ 3,068 Transferred to receivables from contract assets recognized at beginning of the period $ 780 $ - (1) 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, in thousands. The estimated revenue does not include contracts with original durations of one year or less, amounts of variable consideration attributable to royalties, or contract renewals that are unexercised as of December 31, 2017. 2018 2019 2020 2021 Third-party software $ 110 $ 36 $ - $ - Proprietary software 2,655 1,133 820 114 Professional engineering services 760 - - - |
Summary of Impact of Adoption of Accounting Standards | In accordance with Topic 606, the disclosure of the impact of adoption to our consolidated statements of operations was as follows (in thousands, except per share amounts): Year Ended December 31, 2017 As reported Balances without adoption of Topic 606 Effect of change - higher (lower) Revenue: Third-party software $ 65,755 $ 65,755 $ — Proprietary software 4,646 2,964 1,682 Professional engineering service 10,410 10,198 212 Total revenue 80,811 78,917 1,894 Cost of revenue: Third-party software 55,161 55,161 — Proprietary software 163 163 — Professional engineering service 7,365 7,277 88 Total cost of revenue 62,689 62,601 88 Gross profit 18,122 16,316 1,806 Operating expenses: Selling, general and administrative 20,982 20,909 73 Research and development 6,561 6,561 — Total operating expenses 27,543 27,470 73 Loss from operations (9,421 ) (11,154 ) 1,733 Other income, net 214 214 — Loss before income taxes (9,207 ) (10,940 ) 1,733 Income tax benefit 149 149 — Net loss $ (9,058 ) $ (10,791 ) $ 1,733 Basic loss per share $ (0.72 ) $ (0.86 ) $ 0.14 Diluted loss per share $ (0.72 ) $ (0.86 ) $ 0.14 In accordance with Topic 606, the disclosure of the impact of adoption to our consolidated balance sheet was as follows (in thousands): December 31, 2017 As reported Balances without adoption of Topic 606 Effect of change - higher (lower) Assets: Contract assets $ 937 $ 753 $ 184 Other noncurrent assets 89 59 30 Liabilities: Deferred revenue - current 3,219 4,243 (1,024 ) Deferred revenue - noncurrent 61 556 (495 ) Shareholders' Equity: Accumulated deficit (105,276 ) (107,009 ) 1,733 |
Cash and Investments (Tables)
Cash and Investments (Tables) | 12 Months Ended |
Dec. 31, 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): December 31, 2017 2016 Cash $ 6,340 $ 11,016 Cash equivalents (see detail in Note 4) 6,519 3,296 Total cash and cash equivalents 12,859 14,312 Short-term investments (see detail in Note 4) 11,895 18,888 Total cash, cash equivalents, and short-term investments $ 24,754 $ 33,200 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 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 were as follows (in thousands): December 31, 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 $ 2,274 $ - $ 2,274 Corporate commercial paper - 3,245 3,245 Corporate debt - 1,000 1,000 Total cash equivalents 2,274 4,245 6,519 Short-term investments: Corporate commercial paper - 5,480 5,480 Corporate debt - 6,415 6,415 Total short-term investments - 11,895 11,895 Total assets measured at fair value $ 2,274 $ 16,140 $ 18,414 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 Corporate debt - - - Total cash equivalents 2,796 500 3,296 Short-term investments: Corporate commercial paper - 11,465 11,465 Corporate debt - 7,423 7,423 Total short-term investments - 18,888 18,888 Total assets measured at fair value $ 2,796 $ 19,388 $ 22,184 |
Equipment, Furniture and Leas28
Equipment, Furniture and Leasehold Improvements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property Plant And Equipment [Abstract] | |
Equipment, Furniture and Leasehold Improvements | Equipment, furniture, and leasehold improvements consisted of the following (in thousands): December 31, 2017 2016 Computer equipment and software $ 1,819 $ 2,929 Office furniture and equipment 321 357 Leasehold improvements 1,189 1,192 Total 3,329 4,478 Less: accumulated depreciation and amortization (2,340 ) (3,389 ) Equipment, furniture and leasehold improvements, net $ 989 $ 1,089 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets Relate to Customer Relationships | 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 and were as follows (in thousands): Gross Carrying Accumulated Net Carrying Amount Amortization Value Customer relationships: Balance as of December 31, 2017 $ 1,275 $ (910 ) $ 365 Balance as of December 31, 2016 $ 1,275 $ (811 ) $ 464 |
Expected Amortization Expense for Future Period | Amortization expense in future periods is expected to be as follows (in thousands): 2018 $ 98 2019 98 2020 98 2021 71 Total $ 365 |
Other Income and Loss (Tables)
Other Income and Loss (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Income And Loss [Abstract] | |
Components of Other Income and Loss | Other income and loss consisted of the following (in thousands): Year Ended December 31, 2017 2016 Interest income $ 238 $ 137 Other income (loss) (24 ) 110 Total $ 214 $ 247 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Pre-Tax Loss | Pre-tax loss consisted of the following (in thousands): Year Ended December 31, 2017 2016 U.S. $ (8,885 ) $ (580 ) Foreign (322 ) (331 ) Total $ (9,207 ) $ (911 ) |
Income Tax Benefit (Expense) | Income tax benefit (expense) consisted of the following (in thousands): Year Ended December 31, 2017 2016 Current taxes: Federal $ (79 ) $ (24 ) State and local (1 ) 38 Foreign (42 ) 41 Current taxes (122 ) 55 Deferred taxes: Federal - - State and local - - Foreign (27 ) 86 Deferred taxes (27 ) 86 Total $ (149 ) $ 141 |
Components of Net Deferred Tax Assets and Liabilities | Net deferred tax assets and liabilities consisted of the following (in thousands): December 31, 2017 2016 Depreciation and amortization $ 238 $ 365 Accrued expenses and reserves 148 345 Deferred revenue 508 66 Net operating loss carryforwards 14,561 20,448 Research and development credit carryforwards 3,037 2,740 Stock-based compensation 940 840 Other 10 91 Gross deferred tax assets 19,442 24,895 Less: valuation allowance (19,442 ) (24,911 ) Net deferred tax assets (liability) $ - $ (16 ) |
Net Deferred Tax Assets and Liabilities | Net deferred tax assets and liabilities were recorded as follows (in thousands): December 31, 2017 2016 Deferred tax assets, non-current $ - $ 7 Deferred tax liability, non-current - (23 ) Net deferred tax assets (liability) $ - $ (16 ) |
Schedule of Provision for Income Taxes | The provision for income taxes differed from the amount of expected income tax expense determined by applying the applicable U.S. statutory federal income tax rate to pre-tax loss as follows (in thousands, except percentages): Year Ended December 31, 2017 2016 U.S. Federal tax benefit at statutory rates $ (3,130 ) 34.0 % $ (310 ) 34.0 % Impact of: Tax credits (376 ) 4.1 % (170 ) 18.6 % State income tax (1 ) 0.0 % 25 (2.7 )% International operations 168 (1.8 )% 183 (20.1 )% Stock-based compensation (130 ) 1.4 % (23 ) 2.6 % Valuation allowance (5,688 ) 61.8 % 311 (34.2 )% Expiration of state net operating loss carryforwards - (— )% 77 (8.5 )% Impact of tax reform 8,929 (97.0 )% Other, net 79 (0.9 )% 48 (5.4 )% Tax expense (benefit) and effective tax rate $ (149 ) 1.6 % $ 141 (15.7 )% |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Operating Lease Commitments | Operating lease commitments are as follows (in thousands): 2018 $ 1,173 2019 1,038 2020 437 Total $ 2,648 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 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: Year Ended December 31, 2017 2016 Dividend yield 0 % 0 % Expected life 6.5 years 6.5 years Expected volatility 52 % 55 % Risk-free interest rate 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): Year Ended December 31, 2017 2016 Cost of revenue— professional engineering service $ 107 $ 220 Selling, general and administrative 1,414 868 Research and development 236 159 Total stock-based compensation expense $ 1,757 $ 1,247 Per basic share $ 0.14 $ 0.10 Per diluted share $ 0.14 $ 0.10 |
Summary of Stock Option Activity | The following table summarizes stock option activity: Weighted Average Remaining Weighted Average Contractual Life Aggregate Number of Shares Exercise Price (in years) Intrinsic Value Balance at December 31, 2015 1,778,697 $ 4.43 7.83 Granted 903,248 $ 5.24 Exercised (371,845 ) $ 3.17 Forfeited (396,161 ) $ 5.32 Expired (67,171 ) $ 5.91 Balance at December 31, 2016 1,846,768 $ 4.84 8.19 Granted 248,100 $ 5.18 Exercised (54,692 ) $ 3.66 Forfeited (91,411 ) $ 5.31 Expired (36,604 ) $ 5.83 Balance at December 31, 2017 1,912,161 $ 4.88 7.61 $ 781,735 Vested and expected to vest at December 31, 2017 1,792,667 $ 4.85 7.52 $ 781,025 Exercisable at December 31, 2017 1,065,767 $ 4.48 6.63 $ 775,767 |
Summary of Certain Additional Information about Stock Options | The following table summarizes certain additional information about stock options: Year Ended December 31, 2017 2016 Weighted average grant-date fair value for options granted during the year $ 2.62 $ 2.63 Vested options in-the-money 603,925 605,017 Aggregate intrinsic value of options exercised during the year $ 104,512 $ 773,327 |
Summary of Restricted Stock Unit Activity | The following table summarizes RSU activity : Number of Weighted Average Shares Award Price Unvested at December 31, 2015 104,463 $ 5.97 Granted 107,370 $ 5.41 Vested (76,258 ) $ 5.81 Forfeited (15,969 ) $ 5.77 Unvested at December 31, 2016 119,606 $ 5.60 Granted 79,819 $ 4.98 Vested (82,457 ) $ 5.39 Forfeited — $ — Unvested at December 31, 2017 116,968 $ 5.33 Expected to vest after December 31, 2017 102,796 $ 5.33 |
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 December 31, 2017: Stock options outstanding 1,912,161 Restricted stock units outstanding 116,968 Stock options available for future grant 1,189,256 Common stock reserved for future issuance 3,218,385 |
Significant Concentrations (Tab
Significant Concentrations (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Risks And Uncertainties [Abstract] | |
Summary of Revenue and Accounts Receivable | Honeywell International, Inc. and affiliated entities (“Honeywell”) had revenue and accounts receivable as follows (in thousands, except percentages): Year Ended December 31, 2017 2016 Honeywell revenue $ 12,278 $ 13,696 As a percentage of total revenue 15 % 14 % December 31, 2017 2016 Honeywell accounts receivable $ 8,659 $ 7,075 As a percentage of total accounts receivable 48 % 33 % |
Summary of Rebate Program Recorded Under Rebate Credits | Under this rebate program, we recorded rebate credits as follows (in thousands): Year Ended December 31, 2017 2016 Reductions to cost of revenue $ 499 $ 345 Reductions to marketing expense $ 658 $ 1,085 |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring And Related Activities [Abstract] | |
Schedule of Restructuring Charges Included in Operations | We incurred the following restructuring charges in 2016, which represented one-time cash employee termination benefit (mostly related to severance and accrued paid-time-of) and were included in the results of operations as follows (in thousands): Year Ended December 31, 2016 Cost of revenue $ 968 Selling, general and administrative 17 Total $ 985 |
Information about Operating S36
Information about Operating Segments and Geographic Areas (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Profit and Loss Information of Segments | The following table sets forth profit and loss information about our segments (in thousands): Year Ended December 31, 2017 2016 Third-party software: Revenue $ 65,755 $ 80,231 Cost of revenue 55,161 67,853 Gross profit 10,594 12,378 Proprietary software: Revenue 4,646 1,939 Cost of revenue 163 329 Gross profit 4,483 1,610 Professional Engineering Service: Revenue 10,410 15,271 Cost of revenue 7,365 13,439 Gross profit 3,045 1,832 Total gross profit 18,122 15,820 Operating expenses 27,543 16,978 Other income, net 214 247 Income tax benefit (expense) 149 (141 ) Net loss $ (9,058 ) $ (1,052 ) |
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): Year Ended December 31, 2017 2016 Total revenue: North America $ 76,062 $ 92,299 Asia 1,644 2,024 Europe 3,105 3,118 Total revenue $ 80,811 $ 97,441 December 31, 2017 2016 Long-lived assets: North America $ 991 $ 1,025 Asia 76 90 Europe 4,114 4,236 Total long-lived assets $ 5,181 $ 5,351 |
Quarterly Financial Informati37
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Condensed Consolidated Statements of Operations | Condensed Consolidated Statements of Operations 2017 Q1 Q2 Q3 Q4 (in thousands, except per share data) Revenue $ 22,841 $ 18,848 $ 19,653 $ 19,469 Gross profit $ 6,253 $ 3,873 $ 4,380 $ 3,616 Income (loss) from operations $ 41 $ (2,619 ) $ (2,546 ) $ (4,297 ) Net income (loss) $ 202 $ (2,560 ) $ (2,468 ) $ (4,232 ) Basic income (loss) per share $ 0.02 $ (0.20 ) $ (0.20 ) $ (0.33 ) Diluted income (loss) per share $ 0.02 $ (0.20 ) $ (0.20 ) $ (0.33 ) Shares used in per share calculations: Basic 12,550 12,577 12,607 12,640 Diluted 12,848 12,577 12,607 12,640 2016 Q1 Q2 Q3 Q4 (in thousands, except per share data) Revenue $ 25,439 $ 22,738 $ 22,467 $ 26,797 Gross profit $ 4,296 $ 3,893 $ 3,677 $ 3,954 Income (loss) from operations $ 649 $ (85 ) $ (415 ) $ (1,307 ) Net income (loss) $ 500 $ (185 ) $ (106 ) $ (1,261 ) Basic income (loss) per share $ 0.04 $ (0.02 ) $ (0.01 ) $ (0.10 ) Diluted income (loss) per share $ 0.04 $ (0.02 ) $ (0.01 ) $ (0.10 ) Shares used in per share calculations: Basic 12,102 12,152 12,310 12,473 Diluted 12,531 12,152 12,310 12,473 |
Summary of Condensed Consolidated Balance Sheets | Condensed Consolidated Balance Sheets 2017 March 31 June 30 September 30 December 31 (in thousands) Cash, cash equivalents and short-term investments $ 30,984 $ 27,296 $ 26,758 $ 24,754 Total current assets $ 49,092 $ 47,077 $ 45,021 $ 44,253 Total assets $ 54,403 $ 52,395 $ 50,247 $ 49,434 Total current liabilities $ 14,310 $ 14,445 $ 14,351 $ 17,427 Total shareholders' equity $ 39,206 $ 37,099 $ 35,238 $ 31,430 2016 March 31 June 30 September 30 December 31 (in thousands) Cash, cash equivalents and short-term investments $ 27,626 $ 26,898 $ 31,577 $ 33,200 Total current assets $ 49,683 $ 47,059 $ 51,844 $ 55,657 Total assets $ 55,389 $ 52,680 $ 57,355 $ 61,008 Total current liabilities $ 16,322 $ 13,407 $ 15,502 $ 20,221 Total shareholders' equity $ 37,873 $ 38,166 $ 38,790 $ 38,112 |
Description of Business and A38
Description of Business and Accounting Policies - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Summary Of Business And Accounting Policies [Line Items] | ||
Entity incorporation date | 1994-07 | |
Common stock equivalent shares excluded from computation of diluted per share amounts | 1,227,000 | 691,000 |
Capitalized software development costs | $ 0 | $ 0 |
Advertising expense | $ 388,000 | $ 45,000 |
Office furniture and equipment [Member] | ||
Summary Of Business And Accounting Policies [Line Items] | ||
Leasehold improvements estimated useful life | 3 years | |
Minimum [Member] | ||
Summary Of Business And Accounting Policies [Line Items] | ||
Intangible assets useful life range | 1 year | |
Minimum [Member] | Leasehold improvements [Member] | ||
Summary Of Business And Accounting Policies [Line Items] | ||
Leasehold improvements estimated useful life | 2 years | |
Maximum [Member] | ||
Summary Of Business And Accounting Policies [Line Items] | ||
Intangible assets useful life range | 10 years | |
Maximum [Member] | Leasehold improvements [Member] | ||
Summary Of Business And Accounting Policies [Line Items] | ||
Leasehold improvements estimated useful life | 10 years |
Description of Business and A39
Description of Business and Accounting Policies - Reconciliation of Number of Shares Used in Calculation of Basic and Diluted Per Share Amounts (Detail) - shares shares in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | ||||||||||
Weighted average common shares outstanding, basic | 12,640 | 12,607 | 12,577 | 12,550 | 12,473 | 12,310 | 12,152 | 12,102 | 12,594 | 12,260 |
Weighted average common shares outstanding, diluted | 12,640 | 12,607 | 12,577 | 12,848 | 12,473 | 12,310 | 12,152 | 12,531 | 12,594 | 12,260 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2017 | |
Summary Of Accounting Policies [Line Items] | |||||||||||
Revenue | $ 19,469,000 | $ 19,653,000 | $ 18,848,000 | $ 22,841,000 | $ 26,797,000 | $ 22,467,000 | $ 22,738,000 | $ 25,439,000 | $ 80,811,000 | $ 97,441,000 | |
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 | $ 87,000 | 87,000 | $ 292,000 | ||||||||
Capitalized contract cost, amortization | 168,000 | ||||||||||
Impairment loss in relation to costs capitalized | 0 | ||||||||||
Topic 606 [Member] | Impact of changes in accounting policies, Effect of Change Higher/(Lower) [Member] | |||||||||||
Summary Of Accounting Policies [Line Items] | |||||||||||
Revenue | $ 1,894,000 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregated Revenue (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Disaggregation Of Revenue [Line Items] | |
Disaggregated revenue | $ 80,811 |
Software [Member] | |
Disaggregation Of Revenue [Line Items] | |
Disaggregated revenue | 70,401 |
Software [Member] | Third Party Software [Member] | |
Disaggregation Of Revenue [Line Items] | |
Disaggregated revenue | 65,755 |
Software [Member] | Proprietary Software [Member] | |
Disaggregation Of Revenue [Line Items] | |
Disaggregated revenue | 4,646 |
Professional Engineering Service [Member] | |
Disaggregation Of Revenue [Line Items] | |
Disaggregated revenue | 10,410 |
North America [Member] | |
Disaggregation Of Revenue [Line Items] | |
Disaggregated revenue | 76,062 |
North America [Member] | Software [Member] | |
Disaggregation Of Revenue [Line Items] | |
Disaggregated revenue | 67,380 |
North America [Member] | Software [Member] | Third Party Software [Member] | |
Disaggregation Of Revenue [Line Items] | |
Disaggregated revenue | 63,430 |
North America [Member] | Software [Member] | Proprietary Software [Member] | |
Disaggregation Of Revenue [Line Items] | |
Disaggregated revenue | 3,950 |
North America [Member] | Professional Engineering Service [Member] | |
Disaggregation Of Revenue [Line Items] | |
Disaggregated revenue | 8,682 |
Europe [Member] | |
Disaggregation Of Revenue [Line Items] | |
Disaggregated revenue | 3,105 |
Europe [Member] | Software [Member] | |
Disaggregation Of Revenue [Line Items] | |
Disaggregated revenue | 1,914 |
Europe [Member] | Software [Member] | Third Party Software [Member] | |
Disaggregation Of Revenue [Line Items] | |
Disaggregated revenue | 1,914 |
Europe [Member] | Professional Engineering Service [Member] | |
Disaggregation Of Revenue [Line Items] | |
Disaggregated revenue | 1,191 |
Asia [Member] | |
Disaggregation Of Revenue [Line Items] | |
Disaggregated revenue | 1,644 |
Asia [Member] | Software [Member] | |
Disaggregation Of Revenue [Line Items] | |
Disaggregated revenue | 1,107 |
Asia [Member] | Software [Member] | Third Party Software [Member] | |
Disaggregation Of Revenue [Line Items] | |
Disaggregated revenue | 411 |
Asia [Member] | Software [Member] | Proprietary Software [Member] | |
Disaggregation Of Revenue [Line Items] | |
Disaggregated revenue | 696 |
Asia [Member] | Professional Engineering Service [Member] | |
Disaggregation Of Revenue [Line Items] | |
Disaggregated revenue | 537 |
Transferred at a point in time [Member] | |
Disaggregation Of Revenue [Line Items] | |
Disaggregated revenue | 70,165 |
Transferred at a point in time [Member] | Software [Member] | |
Disaggregation Of Revenue [Line Items] | |
Disaggregated revenue | 69,304 |
Transferred at a point in time [Member] | Software [Member] | Third Party Software [Member] | |
Disaggregation Of Revenue [Line Items] | |
Disaggregated revenue | 65,608 |
Transferred at a point in time [Member] | Software [Member] | Proprietary Software [Member] | |
Disaggregation Of Revenue [Line Items] | |
Disaggregated revenue | 3,696 |
Transferred at a point in time [Member] | Professional Engineering Service [Member] | |
Disaggregation Of Revenue [Line Items] | |
Disaggregated revenue | 861 |
Transferred over time [Member] | |
Disaggregation Of Revenue [Line Items] | |
Disaggregated revenue | 10,646 |
Transferred over time [Member] | Software [Member] | |
Disaggregation Of Revenue [Line Items] | |
Disaggregated revenue | 1,097 |
Transferred over time [Member] | Software [Member] | Third Party Software [Member] | |
Disaggregation Of Revenue [Line Items] | |
Disaggregated revenue | 147 |
Transferred over time [Member] | Software [Member] | Proprietary Software [Member] | |
Disaggregation Of Revenue [Line Items] | |
Disaggregated revenue | 950 |
Transferred over time [Member] | Professional Engineering Service [Member] | |
Disaggregation Of Revenue [Line Items] | |
Disaggregated revenue | $ 9,549 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Information about Receivables, Contract Assets and Contract Liabilities from Contracts with Customers (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Revenue From Contract With Customer [Abstract] | ||
Receivables | $ 18,014 | $ 21,579 |
Short-term contract assets | 937 | |
Long-term contract assets | 30 | |
Short-term contract liabilities (deferred revenue) | 3,219 | 2,064 |
Long-term contract liabilities (deferred revenue) | $ 61 | $ 1,798 |
Revenue Recognition - Schedul43
Revenue Recognition - Schedule of Significant Changes in Contract Assets and Liabilities (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Changes in the Contract Assets | |
Transferred to receivables from contract assets recognized at beginning of the period | $ 780 |
Changes in the Contract Liabilities | |
Revenue recognized that was included in the contract liability at beginning of the period | $ 3,068 |
Revenue Recognition - Estimated
Revenue Recognition - Estimated Revenue Expected to be Recognized in Future Related to Performance Obligations (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
2,018 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Estimated revenue, expected recognition period | 1 year |
2,019 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Estimated revenue, expected recognition period | 1 year |
2,020 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Estimated revenue, expected recognition period | 1 year |
2,021 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Estimated revenue, expected recognition period | 1 year |
Software [Member] | 2018 | Third-Party Software [Member] | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Estimated revenue expected to be recognized in future | $ 110 |
Software [Member] | 2018 | Proprietary Software [Member] | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Estimated revenue expected to be recognized in future | 2,655 |
Software [Member] | 2019 | Third-Party Software [Member] | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Estimated revenue expected to be recognized in future | 36 |
Software [Member] | 2019 | Proprietary Software [Member] | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Estimated revenue expected to be recognized in future | 1,133 |
Software [Member] | 2020 | Proprietary Software [Member] | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Estimated revenue expected to be recognized in future | 820 |
Software [Member] | 2021 | Proprietary Software [Member] | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Estimated revenue expected to be recognized in future | 114 |
Professional Engineering Services [Member] | 2018 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Estimated revenue expected to be recognized in future | $ 760 |
Revenue Recognition - Summary o
Revenue Recognition - Summary of Impact of Adoption of Accounting Standards (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue: | ||||||||||
Professional engineering service | $ 10,410 | $ 15,271 | ||||||||
Total revenue | $ 19,469 | $ 19,653 | $ 18,848 | $ 22,841 | $ 26,797 | $ 22,467 | $ 22,738 | $ 25,439 | 80,811 | 97,441 |
Cost of revenue: | ||||||||||
Professional engineering service | 7,365 | 13,439 | ||||||||
Total cost of revenue | 62,689 | 81,621 | ||||||||
Gross profit | 3,616 | 4,380 | 3,873 | 6,253 | 3,954 | 3,677 | 3,893 | 4,296 | 18,122 | 15,820 |
Operating expenses: | ||||||||||
Selling, general and administrative | 20,982 | 14,119 | ||||||||
Research and development | 6,561 | 2,859 | ||||||||
Total operating expenses | 27,543 | 16,978 | ||||||||
Loss from operations | (4,297) | (2,546) | (2,619) | 41 | (1,307) | (415) | (85) | 649 | (9,421) | (1,158) |
Other income, net | 214 | 247 | ||||||||
Loss before income taxes | (9,207) | (911) | ||||||||
Income tax benefit | 149 | (141) | ||||||||
Net loss | $ (4,232) | $ (2,468) | $ (2,560) | $ 202 | $ (1,261) | $ (106) | $ (185) | $ 500 | $ (9,058) | $ (1,052) |
Basic loss per share | $ (0.33) | $ (0.20) | $ (0.20) | $ 0.02 | $ (0.10) | $ (0.01) | $ (0.02) | $ 0.04 | $ (0.72) | $ (0.09) |
Diluted loss per share | $ (0.33) | $ (0.20) | $ (0.20) | $ 0.02 | $ (0.10) | $ (0.01) | $ (0.02) | $ 0.04 | $ (0.72) | $ (0.09) |
ASSETS | ||||||||||
Contract assets | $ 937 | $ 937 | ||||||||
Other noncurrent assets | 89 | $ 53 | 89 | $ 53 | ||||||
Liabilities: | ||||||||||
Deferred revenue - current | 3,219 | 2,064 | 3,219 | 2,064 | ||||||
Deferred revenue - noncurrent | 61 | 1,798 | 61 | 1,798 | ||||||
Shareholders' Equity: | ||||||||||
Accumulated deficit | (105,276) | $ (96,607) | (105,276) | (96,607) | ||||||
Third Party Software [Member] | ||||||||||
Revenue: | ||||||||||
Software | 65,755 | 80,231 | ||||||||
Cost of revenue: | ||||||||||
Software | 55,161 | 67,853 | ||||||||
Proprietary Software [Member] | ||||||||||
Revenue: | ||||||||||
Software | 4,646 | 1,939 | ||||||||
Cost of revenue: | ||||||||||
Software | 163 | $ 329 | ||||||||
Topic 606 [Member] | Balances without adoption of Topic 606 [Member] | ||||||||||
Revenue: | ||||||||||
Professional engineering service | 10,198 | |||||||||
Total revenue | 78,917 | |||||||||
Cost of revenue: | ||||||||||
Professional engineering service | 7,277 | |||||||||
Total cost of revenue | 62,601 | |||||||||
Gross profit | 16,316 | |||||||||
Operating expenses: | ||||||||||
Selling, general and administrative | 20,909 | |||||||||
Research and development | 6,561 | |||||||||
Total operating expenses | 27,470 | |||||||||
Loss from operations | (11,154) | |||||||||
Other income, net | 214 | |||||||||
Loss before income taxes | (10,940) | |||||||||
Income tax benefit | 149 | |||||||||
Net loss | $ (10,791) | |||||||||
Basic loss per share | $ (0.86) | |||||||||
Diluted loss per share | $ (0.86) | |||||||||
ASSETS | ||||||||||
Contract assets | 753 | $ 753 | ||||||||
Other noncurrent assets | 59 | 59 | ||||||||
Liabilities: | ||||||||||
Deferred revenue - current | 4,243 | 4,243 | ||||||||
Deferred revenue - noncurrent | 556 | 556 | ||||||||
Shareholders' Equity: | ||||||||||
Accumulated deficit | (107,009) | (107,009) | ||||||||
Topic 606 [Member] | Effect of change - higher (lower) [Member] | ||||||||||
Revenue: | ||||||||||
Professional engineering service | 212 | |||||||||
Total revenue | 1,894 | |||||||||
Cost of revenue: | ||||||||||
Professional engineering service | 88 | |||||||||
Total cost of revenue | 88 | |||||||||
Gross profit | 1,806 | |||||||||
Operating expenses: | ||||||||||
Selling, general and administrative | 73 | |||||||||
Total operating expenses | 73 | |||||||||
Loss from operations | 1,733 | |||||||||
Loss before income taxes | 1,733 | |||||||||
Net loss | $ 1,733 | |||||||||
Basic loss per share | $ 0.14 | |||||||||
Diluted loss per share | $ 0.14 | |||||||||
ASSETS | ||||||||||
Contract assets | 184 | $ 184 | ||||||||
Other noncurrent assets | 30 | 30 | ||||||||
Liabilities: | ||||||||||
Deferred revenue - current | (1,024) | (1,024) | ||||||||
Deferred revenue - noncurrent | (495) | (495) | ||||||||
Shareholders' Equity: | ||||||||||
Accumulated deficit | $ 1,733 | 1,733 | ||||||||
Topic 606 [Member] | Third Party Software [Member] | Balances without adoption of Topic 606 [Member] | ||||||||||
Revenue: | ||||||||||
Software | 65,755 | |||||||||
Cost of revenue: | ||||||||||
Software | 55,161 | |||||||||
Topic 606 [Member] | Proprietary Software [Member] | Balances without adoption of Topic 606 [Member] | ||||||||||
Revenue: | ||||||||||
Software | 2,964 | |||||||||
Cost of revenue: | ||||||||||
Software | 163 | |||||||||
Topic 606 [Member] | Proprietary Software [Member] | Effect of change - higher (lower) [Member] | ||||||||||
Revenue: | ||||||||||
Software | $ 1,682 |
Cash and Investments - Cash, Ca
Cash and Investments - Cash, Cash Equivalents and Short-Term Investments (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Cash And Cash Equivalents [Abstract] | |||
Cash | $ 6,340 | $ 11,016 | |
Cash equivalents | 6,519 | 3,296 | |
Total cash and cash equivalents | 12,859 | 14,312 | $ 16,443 |
Short-term investments | 11,895 | 18,888 | |
Total cash, cash equivalents, and short-term investments | $ 24,754 | $ 33,200 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Short-term investments: | ||
Total short-term investments | $ 11,895 | $ 18,888 |
Recurring basis [Member] | ||
Cash equivalents: | ||
Total cash equivalents | 6,519 | 3,296 |
Short-term investments: | ||
Total short-term investments | 11,895 | 18,888 |
Total assets measured at fair value | 18,414 | 22,184 |
Recurring basis [Member] | Corporate commercial paper [Member] | ||
Cash equivalents: | ||
Total cash equivalents | 3,245 | 500 |
Short-term investments: | ||
Total short-term investments | 5,480 | 11,465 |
Recurring basis [Member] | Corporate debt [Member] | ||
Cash equivalents: | ||
Total cash equivalents | 1,000 | |
Short-term investments: | ||
Total short-term investments | 6,415 | 7,423 |
Recurring basis [Member] | Money market funds [Member] | ||
Cash equivalents: | ||
Total cash equivalents | 2,274 | 2,796 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Recurring basis [Member] | ||
Cash equivalents: | ||
Total cash equivalents | 2,274 | 2,796 |
Short-term investments: | ||
Total assets measured at fair value | 2,274 | 2,796 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Recurring basis [Member] | Money market funds [Member] | ||
Cash equivalents: | ||
Total cash equivalents | 2,274 | 2,796 |
Direct or Indirect Observable Inputs (Level 2) [Member] | Recurring basis [Member] | ||
Cash equivalents: | ||
Total cash equivalents | 4,245 | 500 |
Short-term investments: | ||
Total short-term investments | 11,895 | 18,888 |
Total assets measured at fair value | 16,140 | 19,388 |
Direct or Indirect Observable Inputs (Level 2) [Member] | Recurring basis [Member] | Corporate commercial paper [Member] | ||
Cash equivalents: | ||
Total cash equivalents | 3,245 | 500 |
Short-term investments: | ||
Total short-term investments | 5,480 | 11,465 |
Direct or Indirect Observable Inputs (Level 2) [Member] | Recurring basis [Member] | Corporate debt [Member] | ||
Cash equivalents: | ||
Total cash equivalents | 1,000 | |
Short-term investments: | ||
Total short-term investments | $ 6,415 | $ 7,423 |
Equipment, Furniture and Leas48
Equipment, Furniture and Leasehold Improvements - Equipment, Furniture and Leasehold Improvements (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Total | $ 3,329 | $ 4,478 |
Less: accumulated depreciation and amortization | (2,340) | (3,389) |
Equipment, furniture and leasehold improvements, net | 989 | 1,089 |
Computer equipment and software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 1,819 | 2,929 |
Office furniture and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 321 | 357 |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 1,189 | $ 1,192 |
Equipment, Furniture and Leas49
Equipment, Furniture and Leasehold Improvements - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Property Plant And Equipment [Abstract] | ||
Depreciation and amortization expense | $ 536,000 | $ 468,000 |
Goodwill and Intangible Asset50
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Change in carrying amount of goodwill | $ 0 | $ 0 |
Amortization expense | $ 98,000 | $ 130,000 |
Goodwill and Intangible Asset51
Goodwill and Intangible Assets - Intangible Assets Relate to Customer Relationships (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Net Carrying Value | $ 365 | $ 464 |
Customer relationships [Member] | TestQuest, Inc and BSQUARE EMEA, Ltd [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,275 | 1,275 |
Accumulated Amortization | (910) | (811) |
Net Carrying Value | $ 365 | $ 464 |
Goodwill and Intangible Asset52
Goodwill and Intangible Assets - Expected Amortization Expense for Future Period (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
2,018 | $ 98 | |
2,019 | 98 | |
2,020 | 98 | |
2,021 | 71 | |
Net Carrying Value | $ 365 | $ 464 |
Other Income and Loss - Compone
Other Income and Loss - Components of Other Income and Loss (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Other Income And Loss [Abstract] | ||
Interest income | $ 238 | $ 137 |
Other income (loss) | (24) | 110 |
Total | $ 214 | $ 247 |
Income Taxes - Schedule of Pre-
Income Taxes - Schedule of Pre-Tax Loss (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||
U.S. | $ (8,885) | $ (580) |
Foreign | (322) | (331) |
Loss before income taxes | $ (9,207) | $ (911) |
Income Taxes - Income Tax Benef
Income Taxes - Income Tax Benefit (Expense) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Current taxes: | ||
Federal current taxes | $ (79) | $ (24) |
State and local current taxes | (1) | 38 |
Foreign current taxes | (42) | 41 |
Total current taxes | (122) | 55 |
Deferred taxes: | ||
Foreign deferred taxes | (27) | 86 |
Total deferred taxes | (27) | 86 |
Total Income tax expense (benefit) | $ (149) | $ 141 |
Income Taxes - Components of Ne
Income Taxes - Components of Net Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Net deferred income tax assets (liability): | ||
Depreciation and amortization | $ 238 | $ 365 |
Accrued expenses and reserves | 148 | 345 |
Deferred revenue | 508 | 66 |
Net operating loss carryforwards | 14,561 | 20,448 |
Research and development credit carryforwards | 3,037 | 2,740 |
Stock-based compensation | 940 | 840 |
Other | 10 | 91 |
Gross deferred tax assets | 19,442 | 24,895 |
Less: valuation allowance | $ (19,442) | (24,911) |
Net deferred tax liability | $ (16) |
Income Taxes - Net Deferred Tax
Income Taxes - Net Deferred Tax Assets and Liabilities (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Net deferred tax assets (liability): | |
Deferred tax assets, non-current | $ 7 |
Deferred tax liability, non-current | (23) |
Net deferred tax liability | $ (16) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating Loss Carryforwards [Line Items] | |||
Reduction in net deferred tax assets to reflect new statutory rate | $ 8,900,000 | ||
Tax credit carryforwards | $ 3,000,000 | ||
Tax credit carryforwards expiration period | 2,018 | ||
Period of increase in ownership | 3 years | ||
Unrealized tax benefits | $ 0 | $ 0 | |
Domestic Tax Authority [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforward | 61,600,000 | ||
Domestic Tax Authority [Member] | Expire in 2022 and 2023 [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforward | $ 36,300,000 | ||
Domestic Tax Authority [Member] | Minimum [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards expiration period | 2,022 | ||
Domestic Tax Authority [Member] | Maximum [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards expiration period | 2,023 | ||
State and Local Jurisdiction [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforward | $ 4,400,000 | ||
Expired state net operating losses | $ 1,200,000 | ||
Operating loss carryforwards expiration period | 2,026 | ||
US [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
US federal corporate tax rate | 35.00% | ||
Scenario, Forecast [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Global intangible low tax income, effective tax rate | 10.50% | ||
Scenario, Forecast [Member] | US [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
US federal corporate tax rate | 21.00% |
Income Taxes - Schedule of Prov
Income Taxes - Schedule of Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||
U.S. Federal tax benefit at statutory rates | $ (3,130) | $ (310) |
Impact of: | ||
Tax credits | (376) | (170) |
State income tax | (1) | 25 |
International operations | 168 | 183 |
Stock-based compensation | (130) | (23) |
Valuation allowance | (5,688) | 311 |
Expiration of state net operating loss carryforwards | 77 | |
Impact of tax reform | 8,929 | |
Other, net | 79 | 48 |
Total Income tax expense (benefit) | $ (149) | $ 141 |
U.S. Federal tax benefit at statutory rates | 34.00% | 34.00% |
Impact of: | ||
Tax credits | 4.10% | 18.60% |
State income tax | 0.00% | (2.70%) |
International operations | (1.80%) | (20.10%) |
Stock-based compensation | 1.40% | 2.60% |
Valuation allowance | 61.80% | (34.20%) |
Expiration of state net operating loss carryforwards | (8.50%) | |
Impact of tax reform | (97.00%) | |
Other, net | (0.90%) | (5.40%) |
Tax expense (benefit) and effective tax rate | 1.60% | (15.70%) |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | ||
Operating leases, expiration year | 2,020 | |
Rent expense | $ 1,000,000 | $ 1,000,000 |
Restricted cash equivalents | $ 250,000 |
Commitments and Contingencies61
Commitments and Contingencies - Operating Lease Commitments (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Operating Leases Future Minimum Payments Due [Abstract] | |
2,018 | $ 1,173 |
2,019 | 1,038 |
2,020 | 437 |
Total | $ 2,648 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 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 | $ 1,016,877 |
Amortization cost, weighted-average period | 1 year 6 months |
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 13 days |
Compensation cost related to restricted stock units granted but not recognized, net of estimated forfeitures | $ 237,386 |
Shareholders' Equity - Fair Val
Shareholders' Equity - Fair Values of Stock Option Grants Estimated with Weighted Average Assumptions (Detail) - Employee Stock Option [Member] | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Dividend yield | 0.00% | 0.00% |
Expected life | 6 years 6 months | 6 years 6 months |
Expected volatility | 52.00% | 55.00% |
Risk-free interest rate | 1.70% | 1.10% |
Shareholders' Equity - Stock-Ba
Shareholders' Equity - Stock-Based Compensation Expense (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | $ 1,757 | $ 1,247 |
Per basic share | $ 0.14 | $ 0.10 |
Per diluted share | $ 0.14 | $ 0.10 |
Cost of revenue- professional engineering service [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | $ 107 | $ 220 |
Selling, general and administrative [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | 1,414 | 868 |
Research and development [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | $ 236 | $ 159 |
Shareholders' Equity - Summary
Shareholders' Equity - Summary of Stock Option Activity (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Roll Forward | |||
Number of Shares, Beginning Balance | 1,846,768 | 1,778,697 | |
Granted, Number of Shares | 248,100 | 903,248 | |
Exercised, Number of Shares | (54,692) | (371,845) | |
Forfeited, Number of Shares | (91,411) | (396,161) | |
Expired, Number of Shares | (36,604) | (67,171) | |
Number of Shares, Ending Balance | 1,912,161 | 1,846,768 | 1,778,697 |
Vested and expected to vest, Number of Shares, Ending Balance | 1,792,667 | ||
Exercisable, Number of Shares, Ending Balance | 1,065,767 | ||
Weighted Average Exercise Price, Beginning Balance | $ 4.84 | $ 4.43 | |
Granted, Weighted Average Exercise Price | 5.18 | 5.24 | |
Exercised, Weighted Average Exercise Price | 3.66 | 3.17 | |
Forfeited, Weighted Average Exercise Price | 5.31 | 5.32 | |
Expired, Weighted Average Exercise Price | 5.83 | 5.91 | |
Weighted Average Exercise Price, Ending Balance | 4.88 | $ 4.84 | $ 4.43 |
Vested and expected to vest, Weighted Average Exercise Price, Ending Balance | 4.85 | ||
Exercisable, Weighted Average Exercise Price, Ending Balance | $ 4.48 | ||
Balance outstanding, Weighted Average Remaining Contractual Life (in years) | 7 years 7 months 9 days | 8 years 2 months 8 days | 7 years 9 months 29 days |
Vested and expected to vest, Weighted Average Remaining Contractual Life (in years) | 7 years 6 months 7 days | ||
Exercisable, Weighted Average Remaining Contractual Life (in years) | 6 years 7 months 17 days | ||
Balance outstanding, Aggregate Intrinsic Value | $ 781,735 | ||
Vested and expected to vest, Aggregate Intrinsic Value | 781,025 | ||
Exercisable, Aggregate Intrinsic Value | $ 775,767 |
Shareholders' Equity - Summar66
Shareholders' Equity - Summary of Certain Additional Information about Stock Options (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Weighted average grant-date fair value for options granted during the year | $ 2.62 | $ 2.63 |
Vested options in-the-money | 603,925 | 605,017 |
Aggregate intrinsic value of options exercised during the year | $ 104,512 | $ 773,327 |
Shareholders' Equity - Summar67
Shareholders' Equity - Summary of Restricted Stock Unit Activity (Detail) - $ / shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unvested, Number of Shares, Ending Balance | 116,968 | |
Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unvested, Number of Shares, Beginning Balance | 119,606 | 104,463 |
Granted, Number of Shares | 79,819 | 107,370 |
Vested, Number of Shares | (82,457) | (76,258) |
Forfeited, Number of Shares | (15,969) | |
Unvested, Number of Shares, Ending Balance | 116,968 | 119,606 |
Expected to vest, Number of Shares, Ending Balance | 102,796 | |
Unvested, Weighted Average Award Price, Beginning Balance | $ 5.60 | $ 5.97 |
Granted, Weighted Average Award Price | 4.98 | 5.41 |
Vested, Weighted Average Award Price | 5.39 | 5.81 |
Forfeited, Weighted Average Award Price | 5.77 | |
Unvested, Weighted Average Award Price, Ending Balance | 5.33 | $ 5.60 |
Expected to vest, Weighted Average Grant Date Fair Value, Ending Balance | $ 5.33 |
Shareholders' Equity - Summar68
Shareholders' Equity - Summary of Shares of Common Stock Reserved for Future Issuance under Plans (Detail) - shares | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Common Stock Number Of Shares Par Value And Other Disclosures [Abstract] | |||
Stock options outstanding | 1,912,161 | 1,846,768 | 1,778,697 |
Restricted stock units outstanding | 116,968 | ||
Stock options available for future grant | 1,189,256 | ||
Common stock reserved for future issuance | 3,218,385 |
Employee Benefit Plan - Additio
Employee Benefit Plan - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
General Discussion Of Pension And Other Postretirement Benefits [Abstract] | ||
Profit Sharing and Deferred Compensation Plan | $ 410,000 | $ 321,000 |
Significant Concentrations - Su
Significant Concentrations - Summary of Revenue and Accounts Receivable (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Concentration Risk [Line Items] | ||||||||||
Revenue | $ 19,469 | $ 19,653 | $ 18,848 | $ 22,841 | $ 26,797 | $ 22,467 | $ 22,738 | $ 25,439 | $ 80,811 | $ 97,441 |
Accounts receivable | 18,014 | 21,579 | 18,014 | 21,579 | ||||||
Honeywell International Inc and affiliated entities [Member] | Customer Concentration Risk [Member] | ||||||||||
Concentration Risk [Line Items] | ||||||||||
Revenue | 12,278 | 13,696 | ||||||||
Honeywell International Inc and affiliated entities [Member] | Credit Concentration Risk [Member] | ||||||||||
Concentration Risk [Line Items] | ||||||||||
Accounts receivable | $ 8,659 | $ 7,075 | $ 8,659 | $ 7,075 | ||||||
Honeywell International Inc and affiliated entities [Member] | Revenue [Member] | Customer Concentration Risk [Member] | ||||||||||
Concentration Risk [Line Items] | ||||||||||
Concentration risk, percentage | 15.00% | 14.00% | ||||||||
Honeywell International Inc and affiliated entities [Member] | Accounts receivable [Member] | Credit Concentration Risk [Member] | ||||||||||
Concentration Risk [Line Items] | ||||||||||
Concentration risk, percentage | 48.00% | 33.00% |
Significant Concentrations - Ad
Significant Concentrations - Additional Information (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Concentration Risk [Line Items] | |
Expiration date one of OEM Distribution agreements for embedded operating systems | Jun. 30, 2018 |
Expiration date of OEM Distribution agreements for mobile operating systems, non-EMEA | Jun. 30, 2018 |
Rebate credits outstanding | $ 411,000 |
Cost of revenue [Member] | |
Concentration Risk [Line Items] | |
Allocation of rebate values, percentage | 30.00% |
Reduction in marketing expense [Member] | |
Concentration Risk [Line Items] | |
Allocation of rebate values, percentage | 70.00% |
Significant Concentrations - 72
Significant Concentrations - Summary of Rebate Program Recorded Under Rebate Credits (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Cost of revenue [Member] | ||
Concentration Risk [Line Items] | ||
Earnings under the rebate program | $ 499 | $ 345 |
Reductions to marketing expense [Member] | ||
Concentration Risk [Line Items] | ||
Earnings under the rebate program | $ 658 | $ 1,085 |
Credit Agreement - Additional I
Credit Agreement - Additional Information (Detail) - Credit Agreement [Member] - USD ($) | 1 Months Ended | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2017 | Dec. 31, 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 | $ 11,750,000 | $ 12,000,000 |
Restructuring - Additional Info
Restructuring - Additional Information (Detail) | 3 Months Ended |
Sep. 30, 2016Employee | |
Restructuring And Related Activities [Abstract] | |
Number of employees impacted by workforce reduction | 33 |
Percentage of pre-reduction headcount impacted by workforce reduction | 17.00% |
Restructuring - Schedule of Res
Restructuring - Schedule of Restructuring Charges Included in Operations (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Restructuring costs and Reserve [Line Items] | |
Total restructuring charges | $ 985 |
Cost of revenue [Member] | |
Restructuring costs and Reserve [Line Items] | |
Total restructuring charges | 968 |
Selling, general and administrative [Member] | |
Restructuring costs and Reserve [Line Items] | |
Total restructuring charges | $ 17 |
Information about Operating S76
Information about Operating Segments and Geographic Areas - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2017Segment | |
Segment Reporting [Abstract] | |
Number of reportable segment | 3 |
Number of operating segment | 3 |
Information about Operating S77
Information about Operating Segments and Geographic Areas - Profit and Loss Information of Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | ||||||||||
Revenue | $ 19,469 | $ 19,653 | $ 18,848 | $ 22,841 | $ 26,797 | $ 22,467 | $ 22,738 | $ 25,439 | $ 80,811 | $ 97,441 |
Cost of revenue | 62,689 | 81,621 | ||||||||
Gross profit | 3,616 | 4,380 | 3,873 | 6,253 | 3,954 | 3,677 | 3,893 | 4,296 | 18,122 | 15,820 |
Operating expenses | 27,543 | 16,978 | ||||||||
Other income, net | 214 | 247 | ||||||||
Income tax benefit (expense) | 149 | (141) | ||||||||
Net loss | $ (4,232) | $ (2,468) | $ (2,560) | $ 202 | $ (1,261) | $ (106) | $ (185) | $ 500 | (9,058) | (1,052) |
Third Party Software [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Revenue | 65,755 | 80,231 | ||||||||
Cost of revenue | 55,161 | 67,853 | ||||||||
Gross profit | 10,594 | 12,378 | ||||||||
Proprietary Software [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Revenue | 4,646 | 1,939 | ||||||||
Cost of revenue | 163 | 329 | ||||||||
Gross profit | 4,483 | 1,610 | ||||||||
Professional Engineering Services [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Revenue | 10,410 | 15,271 | ||||||||
Cost of revenue | 7,365 | 13,439 | ||||||||
Gross profit | $ 3,045 | $ 1,832 |
Information about Operating S78
Information about Operating Segments and Geographic Areas - Revenue and Long-Lived Assets by Geographic Area (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Total revenue: | ||||||||||
Total revenue | $ 19,469 | $ 19,653 | $ 18,848 | $ 22,841 | $ 26,797 | $ 22,467 | $ 22,738 | $ 25,439 | $ 80,811 | $ 97,441 |
Long-lived assets: | ||||||||||
Total long-lived assets | 5,181 | 5,351 | 5,181 | 5,351 | ||||||
North America [Member] | ||||||||||
Total revenue: | ||||||||||
Total revenue | 76,062 | 92,299 | ||||||||
Long-lived assets: | ||||||||||
Total long-lived assets | 991 | 1,025 | 991 | 1,025 | ||||||
Asia [Member] | ||||||||||
Total revenue: | ||||||||||
Total revenue | 1,644 | 2,024 | ||||||||
Long-lived assets: | ||||||||||
Total long-lived assets | 76 | 90 | 76 | 90 | ||||||
Europe [Member] | ||||||||||
Total revenue: | ||||||||||
Total revenue | 3,105 | 3,118 | ||||||||
Long-lived assets: | ||||||||||
Total long-lived assets | $ 4,114 | $ 4,236 | $ 4,114 | $ 4,236 |
Quarterly Financial Informati79
Quarterly Financial Information (Unaudited) - Summary of Condensed Consolidated Statements of Operations (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | ||||||||||
Revenue | $ 19,469 | $ 19,653 | $ 18,848 | $ 22,841 | $ 26,797 | $ 22,467 | $ 22,738 | $ 25,439 | $ 80,811 | $ 97,441 |
Gross profit | 3,616 | 4,380 | 3,873 | 6,253 | 3,954 | 3,677 | 3,893 | 4,296 | 18,122 | 15,820 |
Income (loss) from operations | (4,297) | (2,546) | (2,619) | 41 | (1,307) | (415) | (85) | 649 | (9,421) | (1,158) |
Net income (loss) | $ (4,232) | $ (2,468) | $ (2,560) | $ 202 | $ (1,261) | $ (106) | $ (185) | $ 500 | $ (9,058) | $ (1,052) |
Basic income (loss) per share | $ (0.33) | $ (0.20) | $ (0.20) | $ 0.02 | $ (0.10) | $ (0.01) | $ (0.02) | $ 0.04 | $ (0.72) | $ (0.09) |
Diluted income (loss) per share | $ (0.33) | $ (0.20) | $ (0.20) | $ 0.02 | $ (0.10) | $ (0.01) | $ (0.02) | $ 0.04 | $ (0.72) | $ (0.09) |
Shares used in per share calculations: | ||||||||||
Basic | 12,640 | 12,607 | 12,577 | 12,550 | 12,473 | 12,310 | 12,152 | 12,102 | 12,594 | 12,260 |
Diluted | 12,640 | 12,607 | 12,577 | 12,848 | 12,473 | 12,310 | 12,152 | 12,531 | 12,594 | 12,260 |
Quarterly Financial Informati80
Quarterly Financial Information (Unaudited) - Summary of Condensed Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
Statement Of Financial Position [Abstract] | |||||||||
Cash, cash equivalents and short-term investments | $ 24,754 | $ 26,758 | $ 27,296 | $ 30,984 | $ 33,200 | $ 31,577 | $ 26,898 | $ 27,626 | |
Total current assets | 44,253 | 45,021 | 47,077 | 49,092 | 55,657 | 51,844 | 47,059 | 49,683 | |
Total assets | 49,434 | 50,247 | 52,395 | 54,403 | 61,008 | 57,355 | 52,680 | 55,389 | |
Total current liabilities | 17,427 | 14,351 | 14,445 | 14,310 | 20,221 | 15,502 | 13,407 | 16,322 | |
Total shareholders' equity | $ 31,430 | $ 35,238 | $ 37,099 | $ 39,206 | $ 38,112 | $ 38,790 | $ 38,166 | $ 37,873 | $ 36,907 |