Datalink (DTLK) 10-Q 9 May 14 2014 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Mar. 31, 2014	7-May-14
Document and Entity Information	'	'
Entity Registrant Name	'DATALINK CORP	'
Entity Central Index Key	'0001056923	'
Document Type	'10-Q	'
Document Period End Date	31-Mar-14	'
Amendment Flag	'false	'
Current Fiscal Year End Date	'--12-31	'
Entity Current Reporting Status	'Yes	'
Entity Filer Category	'Accelerated Filer	'
Entity Common Stock, Shares Outstanding	'	22,493,992
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q1	'

Balance_Sheets

Balance Sheets (USD $)	Mar. 31, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Current assets	'	'
Cash and cash equivalents	$35,460	$24,871
Short-term investments	36,147	51,214
Accounts receivable, net	98,047	131,246
Inventories, net	2,341	4,120
Current deferred customer support contract costs	92,075	89,304
Inventories shipped but not installed	11,647	16,000
Income tax receivable	1,608	'
Other current assets	1,784	1,279
Total current assets	279,109	318,034
Property and equipment, net	6,562	6,722
Goodwill	37,780	37,780
Finite-lived intangibles, net	12,093	13,509
Deferred customer support contract costs, non-current	49,615	49,044
Deferred tax asset	6,800	7,116
Long-term lease receivable	2,264	510
Other assets	684	393
Total assets	394,907	433,108
Current liabilities	'	'
Floor plan line of credit	14,124	19,977
Accounts payable	40,158	61,296
Accrued commissions	4,838	7,133
Accrued sales and use tax	1,547	2,067
Accrued expenses, other	4,836	8,033
Income tax payable	'	11,586
Deferred taxes	1,694	1,694
Customer deposits	4,674	4,240
Current deferred revenue from customer support contracts	113,977	110,567
Other current liabilities	603	187
Total current liabilities	186,451	226,780
Deferred revenue from customer support contracts, non-current	60,119	59,576
Long-term lease payable	1,902	'
Other liabilities non-current	608	956
Total liabilities	249,080	287,312
Stockholders' equity	'	'
Common stock, $.001 par value, 50,000,000 shares authorized, 22,490,892 and 22,785,422 shares issued and outstanding as of March 31, 2014 and December 31, 2013, respectively	22	23
Additional paid-in capital	110,970	111,239
Retained earnings	34,835	34,534
Total stockholders' equity	145,827	145,796
Total liabilities and stockholders' equity	$394,907	$433,108

Balance_Sheets_Parenthetical

Balance Sheets (Parenthetical) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Balance Sheets	'	'
Common stock, par value (in dollars per share)	$0.00	$0.00
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares issued	22,490,892	22,785,422
Common stock, shares outstanding	22,490,892	22,785,422

Statements_of_Operations

Statements of Operations (USD $)	3 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Net sales:	'	'
Products	$83,195	$84,422
Services	56,340	49,096
Total net sales	139,535	133,518
Cost of sales:	'	'
Cost of products	66,770	66,065
Cost of services	43,283	37,620
Total cost of sales	110,053	103,685
Gross profit	29,482	29,833
Operating expenses:	'	'
Sales and marketing	15,664	13,208
General and administrative	5,301	5,642
Engineering	7,514	6,987
Integration and transaction costs	'	48
Amortization of intangibles	1,416	1,982
Total operating expenses	29,895	27,867
Earnings (loss) from operations	-413	1,966
Other income (expense):	'	'
Gain on settlement related to StraTech acquisition	876	'
Interest income	48	16
Interest expense	-29	-116
Earnings before income taxes	482	1,866
Income tax expense	181	768
Net earnings	$301	$1,098
Earnings per common share:	'	'
Basic (in dollars per share)	$0.01	$0.06
Diluted (in dollars per share)	$0.01	$0.06
Weighted average common shares outstanding:	'	'
Basic (in shares)	21,537	17,532
Diluted (in shares)	22,009	17,927

Statements_of_Cash_Flows

Statements of Cash Flows (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Cash flows from operating activities:	'	'
Net earnings	$301	$1,098
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities:	'	'
Change in fair value of short-term investments	17	'
Provision (benefit) for bad debts	-23	8
Depreciation	574	487
Amortization of finite-lived intangibles	1,416	1,982
Gain on settlement related to StraTech acquisition	-876	'
Deferred income taxes	316	175
Stock-based compensation expense	984	941
Changes in operating assets and liabilities:	'	'
Accounts receivable, net and leases receivable	31,468	16,202
Inventories	6,132	-4,492
Deferred costs/revenues/customer deposits, net	1,045	2,178
Accounts payable and leases payable	-19,236	-20,495
Accrued expenses	-6,012	-3,584
Income tax receivable	-1,608	153
Income tax payable	-11,586	'
Other	-728	-549
Net cash provided by (used in) operating activities	2,184	-5,896
Cash flows from investing activities:	'	'
Purchases, sales and maturities of trading securities, net	15,050	'
Purchases of property and equipment	-414	-973
Net cash provided by (used in) investing activities	14,636	-973
Cash flows from financing activities:	'	'
Net borrowings under line of credit	'	2,000
Net payments under floor plan line of credit	-5,853	'
Excess tax from stock compensation	340	277
Proceeds from issuance of common stock from option exercise	77	176
Tax withholding payments reimbursed by restricted stock	-795	-244
Net cash provided by (used in) financing activities	-6,231	2,209
Increase (decrease) in cash and cash equivalents	10,589	-4,660
Cash and cash equivalents, beginning of period	24,871	10,315
Cash and cash equivalents, end of period	35,460	5,655
Supplementary cash flow information:	'	'
Cash paid for income taxes	12,718	175
Cash paid for interest expense	$3	$88

Basis_of_Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2014
Basis of Presentation	'
Basis of Presentation	'
	1.             Basis of Presentation
	We have prepared the interim financial statements included in this Form 10-Q without an audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”).  We have condensed or omitted certain information and footnote disclosures, normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States, pursuant to such rules and regulations.  You should read these financial statements in conjunction with the financial statements and related notes thereto included in our 2013 Annual Report on Form 10-K.
	The financial statements presented herein as of March 31, 2014, and for the three months ended March 31, 2014 and 2013, reflect, in the opinion of management, all adjustments (which consist only of normal, recurring adjustments) necessary for a fair presentation of the financial position and the results of operations and cash flows for the periods presented. Management makes estimates and assumptions affecting the amounts of assets, liabilities, revenues and expenses we report, and our disclosure of contingent assets and liabilities at the date of the financial statements.  The results of the interim periods are not necessarily indicative of the results for the full year.  Accordingly, you should read these condensed financial statements in conjunction with the audited financial statements and the related notes thereto included in our 2013 Annual Report on Form 10-K.  Actual results could differ materially from these estimates and assumptions.
	Recently Issued Accounting Standards
	In July 2013, the FASB issued Accounting Standards Update No. 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (‘‘ASU No. 2013-11’’). ASU No. 2013-11 provides guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. ASU No. 2013-11 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The adoption of ASU No. 2013-11 did not have a significant impact on our consolidated financial statements.

Net_Earnings_per_Share

Net Earnings per Share	3 Months Ended
	Mar. 31, 2014
Net Earnings per Share	'
Net Earnings per Share	'
	2.             Net Earnings per Share
	We compute basic net earnings per share using the weighted average number of shares outstanding.  Diluted net earnings per share include the effect of common stock equivalents, if any, for each period.  Diluted per share amounts assume the conversion, exercise or issuance of all potential common stock instruments unless their effect is anti-dilutive.  The following table computes basic and diluted net earnings per share:
		Three Months Ended
		March 31,
		2014			2013
		(in thousands, except per share data)
	Net earnings	$	301		$	1,098
	Basic:
	Weighted average common shares outstanding	22,491			18,690
	Weighted average common shares of restricted stock that has not vested	(954		)	(1,158		)
	Shares used in the computation of basic net earnings per share	21,537			17,532
	Net earnings per share — basic	$	0.01		$	0.06
	Diluted:
	Shares used in the computation of basic net earnings per share	21,537			17,532
	Employee and non-employee director stock options	6			47
	Restricted stock that has not vested	466			348
	Shares used in the computation of diluted net earnings per share	22,009			17,927
	Net earnings per share - diluted	$	0.01		$	0.06
	We excluded the following restricted stock grants that have not yet vested and options to purchase shares of common stock from the computation of diluted earnings per share as their effect would have been anti-dilutive:
		Three Months Ended
		March 31,
		2014		2013
	Restricted common stock that has not yet vested	—		142,250

StockBased_Compensation

Stock-Based Compensation	3 Months Ended
	Mar. 31, 2014
Stock-Based Compensation	'
Stock-Based Compensation	'
	3.             Stock-Based Compensation
	Restricted Stock:
	Total stock-based compensation expense related to restricted stock was $853,000 and $772,000 for the three months ended March 31, 2014 and 2013, respectively.  Unrecognized stock-based compensation expense related to restricted stock was $4.2 million at March 31, 2014, which we will amortize ratably through October 2017.
	The following table summarizes our restricted stock activity for the three months ended March 31, 2014:
		Number of Shares		Weighted Average
				Grant-Date Fair Value
	Restricted stock that had not yet vested at January 1, 2014	1,181,515		$	9.17
	Granted	—		$	—
	Cancelled	(7,800	)	$	11.1
	Shares vested	(190,650	)	$	6.4
	Restricted stock that has not yet vested at March 31, 2014	983,065		$	9.69
	Stock Options:
	We recognized no stock-based compensation expense related to stock options for the three months ended March 31, 2014. Total stock-based compensation expense related to stock options was $60,000 for the three months ended March 31, 2013. There was no unrecognized stock-based compensation expense related to stock options at March 31, 2014.
	The following table represents stock option activity for the three months ended March 31, 2014:
		Number of Shares		Weighted		Weighted Average
				Average		Remaining
				Exercise Price		Contract Life in
						Years
	Outstanding options as of January 1, 2014	485,784		$	3.54
	Options granted	—		$	—
	Options exercised	(19,784	)	$	3.94
	Options cancelled	—		$	—
	Outstanding options as of March 31, 2014	466,000		$	3.52	5.19
	Exercisable options as of March 31, 2014	466,000		$	3.52	5.19
	Other:
	During the three months ended March 31, 2014 and 2013, we recognized expense of $131,000 and $109,000, respectively, related to the issuance of 9,449 shares and 9,000 shares, respectively, of fully vested common stock to members of our Board of Directors.

Income_Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2014
Income Taxes	'
Income Taxes	'
	4.             Income Taxes
	We base the provision for income taxes upon estimated annual effective tax rates in the tax jurisdictions in which we operate.  For the three months ended March 31, 2014 and 2013, our effective tax rate was 37.5% and 41.1%, respectively. The decrease in our effective tax rate for the three months ended March 31, 2014 as compared to the same period in 2013 is mainly due to the effect of federal graduated tax rates on our estimated annual taxable income. Additionally, we recognized benefits from discrete item adjustments of approximately $14,000 during the three months ended March 31, 2014. These adjustments decreased our effective tax rate to 37.5% for the three months ended March 31, 2014. We did not recognize any benefits from discrete item adjustments for the three months ended March 31, 2013. We expect our annual effective tax rate for 2014 to be 40.2%.
	As part of the process of preparing financial statements, we estimate federal and state income taxes. Management estimates the actual current tax exposure together with assessing temporary differences resulting from different treatment for tax and accounting purposes. These differences result in deferred tax assets and liabilities, which we include within our balance sheet. Management must then assess the likelihood that we will utilize deferred tax assets to offset future taxable income during the periods in which we may deduct these temporary differences.  For the three months ended March 31, 2014, we recorded income tax expense of $181,000 with an effective tax rate of 37.5%.
	We assess our uncertain tax positions for tax years that are still open for examination.  As of March 31, 2014 and 2013, we had no unrecognized tax benefits which would affect our effective tax rate if recognized.
	We classify interest and penalties arising from the underpayment of income taxes in the statement of operations under general and administrative expenses. As of March 31, 2014 and 2013, we had no accrued interest or penalties related to uncertain tax positions. The tax years 2008-2012 remain open to examination by both the U.S. Federal government and by other major income taxing jurisdictions to which we are subject.
	Our ability to utilize a portion of our net operating loss carryforwards to offset future taxable income may be subject to certain limitations under Section 382 of the Internal Revenue Code due to changes in our equity ownership.  We do not believe that an ownership change under Section 382 has occurred, and therefore, no such limitations exist.

Acquisitions

Acquisitions	3 Months Ended
	Mar. 31, 2014
Acquisitions	'
Acquisitions	'
	5.             Acquisitions
	On October 4, 2012, we purchased substantially all of the assets and liabilities of Strategic Technologies, Inc. (‘‘StraTech’’) from StraTech and Midas Medici Group Holdings, Inc. (‘‘Midas,’’ parent company of StraTech and, together with StraTech, the ‘‘Sellers’’). StraTech is an IT services and solutions firm that shares our focus on optimizing enterprise data centers and IT infrastructure through a common product and services portfolio designed to help customers increase business agility. We purchased StraTech for a purchase price of approximately $11.9 million, comprised of a cash payment of approximately $13.2 million, which was offset by a receivable due from the Sellers of approximately $3.3 million, resulting from the preliminary tangible net asset adjustment as defined by the asset purchase agreement. In addition, we issued 269,783 shares of our common stock with a value of approximately $2.0 million. Of those shares, 242,805 shares were deposited in an escrow account as security for certain indemnification obligations of the Sellers.
	Pursuant to the asset purchase agreement, the Sellers were obligated to pay us an amount equal to the difference between the actual tangible net assets on the closing date and the Sellers’ good faith estimated net tangible assets as set forth in the asset purchase agreement. We initially recorded a receivable due from the Sellers of approximately $4.2 million related to this payment at the acquisition date. The Sellers provided us with a ‘‘Notice of Disagreement,’’ which stated that they disputed the amount owed to us in connection with this reconciliation payment. The asset purchase agreement contained an arbitration provision for disputes over the value of tangible net assets. During the measurement period (up to one year from the acquisition date), the final tangible net asset adjustment was agreed to and the net effect was a decrease in the receivable due from the Sellers of $936,000 and an increase in the purchase price for the same amount as reflected above.
	In January 2014, we reached a settlement agreement with the former owners of StraTech regarding the disputed amount owed to us in connection with the reconciliation payment mentioned above. Under the terms of the agreement, the former owners of StraTech agreed to release the entire 242,805 shares of Datalink common stock that were being held in escrow in exchange for a payment of $100,000 and the release of certain other claims. As of December 31, 2013, the remaining $3.3 million receivable due from the Sellers was deemed to be uncollectible and written down to the estimated realizable value, which was determined to be the fair value of the shares in escrow on December 31, 2013. The remaining receivable of $2,647,000 was reclassified from accounts receivable to equity within the December 31, 2013 balance sheet. Based on the value of our common stock on the date of the settlement agreement in January 2014, we recorded a gain before tax of approximately $876,000 during the first quarter of 2014 as a result of the increase in our stock price from December 31, 2013 to the date we repossessed the shares in escrow.

Goodwill_and_Valuation_of_Long

Goodwill and Valuation of Long-Lived Assets	3 Months Ended
	Mar. 31, 2014
Goodwill and Valuation of Long-Lived Assets	'
Goodwill and Valuation of Long-Lived Assets	'
	6.                                      Goodwill and Valuation of Long-Lived Assets
	We assess the carrying amount of our goodwill for potential impairment annually or more frequently if events or a change in circumstances indicate that impairment may have occurred.  We perform an impairment test for finite-lived assets, such as intangible assets, and other long-lived assets, such as fixed assets, whenever events or changes in circumstances indicate that the carrying value of such assets may not be recoverable.  Circumstances that could represent triggering events and therefore require an interim impairment test of goodwill or evaluation of our finite-lived intangible assets or other long-lived assets include the following:  loss of key personnel, unanticipated competition, higher or earlier than expected customer attrition, deterioration of operating performance, significant adverse industry, economic or regulatory changes or a significant decline in market capitalization.
	We have only one operating and reporting unit that earns revenues, incurs expenses and makes available discrete financial information for review by our chief operations decision maker.  Accordingly, we complete our goodwill impairment testing on this single reporting unit.
	In conducting the annual impairment test of our goodwill, qualitative factors are first examined to determine whether the existence of events or circumstances indicate that it is more likely than not that the fair value of the reporting unit is less than its carrying amount.  If it is determined that it is more likely than not that the fair value of the reporting unit is less than its carrying amount, a two-step impairment test is applied.  The first step of the goodwill impairment test, used to identify potential impairment, compares the fair value of our market capitalization with the carrying value of our net assets. If our total market capitalization is at or below the carrying value of our net assets, we perform the second step of the goodwill impairment test to measure the amount of impairment loss we record, if any.  We consider goodwill impairment test estimates critical due to the amount of goodwill recorded on our balance sheet and the judgment required in determining fair value amounts.
	Goodwill as of March 31, 2014 and December 31, 2013 was $37.8 million.  We conducted our annual goodwill impairment test as of December 31, 2013, our last measurement date.  Based on this analysis, we determined that there was no impairment to goodwill.  We will continue to monitor conditions and changes that could indicate impairment of our recorded goodwill.
	At each of March 31, 2014 and 2013, we determined that no triggering events had occurred during the quarter and our finite-lived assets and long-lived assets were not impaired.
	Identified intangible assets are summarized as follows (in thousands):
		Amortizable		As of March 31, 2014								As of December 31, 2013
		Period		Gross			Accumulated			Net		Gross		Accumulated			Net
		(years)		Assets			Amortization			Assets		Assets		Amortization			Assets
	Customer relationships	8-May		$	29,133		$	(17,119	)	$	12,014	$	29,133	$	(15,743	)	$	13,390
	Services agreement	4		67			(67		)	—		67		(67		)	—
	Certification	2		467			(467		)	—		467		(467		)	—
	Covenant not to compete	3		478			(399		)	79		478		(359		)	119
	Trademarks	3		263			(263		)	—		263		(263		)	—
	Order backlog	3 months – 1 year		2,162			(2,162		)	—		2,162		(2,162		)	—
	Total identified intangible assets			$	32,570		$	(20,477	)	$	12,093	$	32,570	$	(19,061	)	$	13,509
	Amortization expense for identified intangible assets is summarized below (in thousands):
		Three Months Ended
		March 31,
		2014			2013			Statement of Operations Classification
	Customer relationships	$	1,376		$	1,938		Operating expenses
	Services agreement	—			4			Operating expenses
	Covenant not to compete	40			40			Operating expenses
	Total identified intangible assets	$	1,416		$	1,982
	Based on the identified intangible assets recorded at March 31, 2014, future amortization expense for the next five years is as follows:
		(in thousands)
	Remainder of 2014	$	3,877
	2015	3,963
	2016	2,937
	2017	1,316
		$	12,093

ShortTerm_Investments

Short-Term Investments	3 Months Ended
	Mar. 31, 2014
Short-Term Investments	'
Short-Term Investments	'
	7.                                      Short-Term Investments
	Our short-term investments consist principally of commercial paper and corporate bonds. We categorize these investments as trading securities and record them at fair value. We classify investments with maturities of 90 days or less from the date of purchase as cash equivalents; investments with maturities of greater than 90 days from the date or purchase but less than one year generally as short-term investments; and investments with maturities of greater than one year from the date of purchase generally as long-term investments. The following table summarizes our short-term investments:
		At March 31, 2014								At December 31, 2013
	(In thousands)	Amortized		Gross		Gross		Fair		Amortized		Gross		Gross		Fair Value
		Cost		Unrealized		Unrealized		Value		Cost		Unrealized		Unrealized
				Gains		Losses						Gains		Losses
	Commercial paper	$	23,984	$	11	$	—	$	23,995	$	35,979	$	5	$	9	$	35,975
	Corporate bonds	12,367		—		215		12,152		15,422		—		183		15,239
	Total	$	36,351	$	11	$	215	$	36,147	$	51,401	$	5	$	192	$	51,214
	Our $36.1 million of short-term investments are comprised of commercial paper and corporate bonds with maturities within one year and interest rates ranging from 0.8% to 5.3%.

Fair_Value_Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2014
Fair Value Measurements	'
Fair Value Measurements	'
	8.                                      Fair Value Measurements
	Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.  In determining fair value for assets and liabilities required or permitted to be recorded at fair value, we consider the principal or most advantageous market in which it would transact and the assumptions that market participants would use when pricing the asset or liability.  We apply fair value measurements for both financial and nonfinancial assets and liabilities.  We have no nonfinancial assets or liabilities that require measurement at fair value on a recurring basis as of March 31, 2013.
	The fair value of our financial instruments, including cash and cash equivalents, short-term investments, accounts receivable, accounts payable, line of credit and accrued expenses, approximate cost because of their short maturities.
	We use the three-level fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair values.  The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).  The three levels of the fair value hierarchy are described below:
	·                  Level 1 — Unadjusted quoted prices available in active markets for the identical assets or liabilities at the measurement date.
	·                  Level 2 — Significant other observable inputs available at the measurement date, other than quoted prices included in Level 1, either directly or indirectly.
	·                  Level 3 — Significant unobservable inputs that we cannot corroborate by observable market data and thus reflect the use of significant management judgment.  We generally determine these values using pricing models based on assumptions our management believes other market participants would make.
	The fair value hierarchy requires the use of observable market data when available.  In instances in which the inputs used to measure fair value fall into different levels of the fair value hierarchy, we determine the fair value measurement based on the lowest level input that is significant to the fair value measurement in its entirety.  Our assessment of the significance of a particular item to the fair value measurement in its entirety requires judgment, including the consideration of inputs specific to the asset or liability.  The following table sets forth, by level within the fair value hierarchy, the accounting of our financial assets and/or liabilities at fair value on a recurring basis as of March 31, 2014 and December 31, 2013 according to the valuation techniques we used to determine their fair value(s).
		Fair Value Measurements
		(in thousands)
				Quoted Prices in		Significant Other		Significant
				Active Markets for		Observable Inputs		Unobservable
				Identical Assets		(Level 2)		Inputs
				(Level 1)				(Level 3)
	At March 31, 2014:
	Cash and cash equivalents	$	35,460	$	35,460	$	—	$	—
	Short-term investments	36,147		12,152		23,995
	Total assets measured at fair value	$	71,607	$	47,612	$	23,995	$	—
	At December 31, 2013:
	Cash and cash equivalents	$	24,871	$	24,871	$	—	$	—
	Short-term investments	51,214		15,239		35,975
	Total assets measured at fair value	$	76,085	$	40,110	$	35,975	$	—

Lease_Receivables

Lease Receivables	3 Months Ended
	Mar. 31, 2014
Lease Receivables	'
Lease Receivables	'
	9.                                      Lease Receivables
	We occasionally enter into sales-type lease agreements with our customers resulting from the sale of certain products. Our lease receivables are recorded at cost within the accounts receivable and long-term lease receivables balances on our balance sheet and are due in installments over the lives of the leases. Cash received and applied against the receivable balance is recorded within changes in operating assets and liabilities in the net cash provided by operating activities section of the statement of cash flows.  Finance income is derived over the term of the sales-type lease arrangement as the unearned income on financed sales-type leases is earned. Unearned income is amortized over the life of the lease using the interest method.  The present value of net investment in sales-type lease receivables of $3.1 million and $1.3 million at March 31, 2014 and December 31, 2013, respectively, is reflected net of unearned income of $359,000 and $57,000 at March 31, 2014 and December 31, 2013, respectively. As of March 31, 2014, scheduled maturities of minimum lease payments receivable were as follows for the fiscal years ended December 31:
		(in thousands)
	Remainder of 2014	$	1,060
	2015	885
	2016	521
	2017	441
	2018	441
	Thereafter	110
		3,458
	Less: Current portion	(1,194		)
	Long-term sales-type lease receivable	$	2,264
	Lease receivables are individually evaluated for impairment. In the event we determine that a lease receivable may not be paid, we include in our allowance an amount for the outstanding balance related to the lease receivable. At March 31, 2014, there were no amounts past due related to lease receivables.

Line_of_Credit

Line of Credit	3 Months Ended
	Mar. 31, 2014
Line of Credit	'
Line of Credit	'
	10.                               Line of Credit
	On July 17, 2013, we entered into a credit agreement with Castle Pines Capital LLC (‘‘CPC’’), an affiliate of Wells Fargo Bank, National Association. The credit agreement provides for a floor plan line of credit and a revolving facility in a maximum combined aggregate amount of $40 million. Borrowing under the revolving facility cannot exceed the lesser of (i) $40 million minus the amount outstanding under the floor plan line of credit or (ii) a borrowing base consisting of 85% of certain eligible accounts and 100% of channel financed inventory, subject to CPC’s ability to impose reserves in the future. The floor plan line of credit finances certain purchases of inventory by us from vendors approved by CPC and the revolving facility is used for working capital purposes and permitted acquisitions.
	The amounts outstanding under the revolving facility will bear interest at a per annum rate of 2.0% above Wells Fargo’s one-month LIBOR rate (approximately 0.15% at March 31, 2014). Advances under the floor plan line of credit will not bear interest so long as they are paid by the applicable payment due date and advances that remain outstanding after the applicable payment due date will bear interest at a per annum rate of LIBOR plus 4%. We are obligated to pay quarterly to CPC an unused commitment fee equal to 0.50% per annum on the average daily unused amount of the combined facility, with usage including the sum of any advances under either the floor plan line of credit or the revolving facility. The combined facility and certain bank product obligations owed to Wells Fargo and CPC or its affiliates are secured by substantially all of our assets. The credit agreement terminates on July 17, 2016 and we will be obligated to pay certain prepayment fees if the credit agreement is terminated prior to that date.
	The credit agreement contains customary representations, warranties, covenants and events of default, including but not limited to, covenants restricting our ability to (i) grant liens on our assets, (ii) make certain fundamental changes, including merging or consolidating with another entity or making any material change in the nature of our business, (iii) make certain dividends or distributions, (iv) make certain loans or investments, (v) guarantee or become liable in any way on certain liabilities or obligations of any other person or entity, or (vi) incur certain indebtedness. Our prior credit agreement (as discussed below) included similar restrictions.
	The credit agreement contains certain covenants regarding our financial performance, including (i) a minimum tangible net worth of at least $20 million, (ii) a maximum funded debt to EBITDA of no more than 3.00 to 1.00, and (iii) a minimum quarterly net income of at least $250,000.
	Of the $40 million maximum borrowing amount available under the combined floor plan line of credit and revolving facility, we had outstanding advances of $14.1 million and $20.0 million on the floor plan line of credit at March 31, 2014 and December 31, 2013, respectively, related to the purchase of inventory from a vendor.

Basis_of_Presentation_Policies

Basis of Presentation (Policies)	3 Months Ended
	Mar. 31, 2014
Basis of Presentation	'
Recently Issued Accounting Standards	'
	Recently Issued Accounting Standards
	In July 2013, the FASB issued Accounting Standards Update No. 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (‘‘ASU No. 2013-11’’). ASU No. 2013-11 provides guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. ASU No. 2013-11 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The adoption of ASU No. 2013-11 did not have a significant impact on our consolidated financial statements.

Net_Earnings_per_Share_Tables

Net Earnings per Share (Tables)	3 Months Ended
	Mar. 31, 2014
Net Earnings per Share	'
Schedule of computation of basic and diluted net earnings per share	'
		Three Months Ended
		March 31,
		2014			2013
		(in thousands, except per share data)
	Net earnings	$	301		$	1,098
	Basic:
	Weighted average common shares outstanding	22,491			18,690
	Weighted average common shares of restricted stock that has not vested	(954		)	(1,158		)
	Shares used in the computation of basic net earnings per share	21,537			17,532
	Net earnings per share — basic	$	0.01		$	0.06
	Diluted:
	Shares used in the computation of basic net earnings per share	21,537			17,532
	Employee and non-employee director stock options	6			47
	Restricted stock that has not vested	466			348
	Shares used in the computation of diluted net earnings per share	22,009			17,927
	Net earnings per share - diluted	$	0.01		$	0.06
Schedule of restricted stock grants that have not yet vested and options to purchase shares of common stock excluded from computation of diluted earnings per share	'
		Three Months Ended
		March 31,
		2014		2013
	Restricted common stock that has not yet vested	—		142,250

StockBased_Compensation_Tables

Stock-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2014
Stock-Based Compensation	'
Summary of the entity's restricted stock activity	'
		Number of Shares		Weighted Average
				Grant-Date Fair Value
	Restricted stock that had not yet vested at January 1, 2014	1,181,515		$	9.17
	Granted	—		$	—
	Cancelled	(7,800	)	$	11.1
	Shares vested	(190,650	)	$	6.4
	Restricted stock that has not yet vested at March 31, 2014	983,065		$	9.69
Summary of stock option activity	'
		Number of Shares		Weighted		Weighted Average
				Average		Remaining
				Exercise Price		Contract Life in
						Years
	Outstanding options as of January 1, 2014	485,784		$	3.54
	Options granted	—		$	—
	Options exercised	(19,784	)	$	3.94
	Options cancelled	—		$	—
	Outstanding options as of March 31, 2014	466,000		$	3.52	5.19
	Exercisable options as of March 31, 2014	466,000		$	3.52	5.19

Goodwill_and_Valuation_of_Long1

Goodwill and Valuation of Long-Lived Assets (Tables)	3 Months Ended
	Mar. 31, 2014
Goodwill and Valuation of Long-Lived Assets	'
Summary of identified intangible assets	'
	Identified intangible assets are summarized as follows (in thousands):
		Amortizable		As of March 31, 2014								As of December 31, 2013
		Period		Gross			Accumulated			Net		Gross		Accumulated			Net
		(years)		Assets			Amortization			Assets		Assets		Amortization			Assets
	Customer relationships	8-May		$	29,133		$	(17,119	)	$	12,014	$	29,133	$	(15,743	)	$	13,390
	Services agreement	4		67			(67		)	—		67		(67		)	—
	Certification	2		467			(467		)	—		467		(467		)	—
	Covenant not to compete	3		478			(399		)	79		478		(359		)	119
	Trademarks	3		263			(263		)	—		263		(263		)	—
	Order backlog	3 months – 1 year		2,162			(2,162		)	—		2,162		(2,162		)	—
	Total identified intangible assets			$	32,570		$	(20,477	)	$	12,093	$	32,570	$	(19,061	)	$	13,509
Summary of amortization expense for identified intangible assets	'
	Amortization expense for identified intangible assets is summarized below (in thousands):
		Three Months Ended
		March 31,
		2014			2013			Statement of Operations Classification
	Customer relationships	$	1,376		$	1,938		Operating expenses
	Services agreement	—			4			Operating expenses
	Covenant not to compete	40			40			Operating expenses
	Total identified intangible assets	$	1,416		$	1,982
Schedule of future amortization expense for the next five years	'
		(in thousands)
	Remainder of 2014	$	3,877
	2015	3,963
	2016	2,937
	2017	1,316
		$	12,093

ShortTerm_Investments_Tables

Short-Term Investments (Tables)	3 Months Ended
	Mar. 31, 2014
Short-Term Investments	'
Summary of short term investments	'
		At March 31, 2014								At December 31, 2013
	(In thousands)	Amortized		Gross		Gross		Fair		Amortized		Gross		Gross		Fair Value
		Cost		Unrealized		Unrealized		Value		Cost		Unrealized		Unrealized
				Gains		Losses						Gains		Losses
	Commercial paper	$	23,984	$	11	$	—	$	23,995	$	35,979	$	5	$	9	$	35,975
	Corporate bonds	12,367		—		215		12,152		15,422		—		183		15,239
	Total	$	36,351	$	11	$	215	$	36,147	$	51,401	$	5	$	192	$	51,214

Fair_Value_Measurements_Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2014
Fair Value Measurements	'
Schedule of financial assets and/or liabilities at fair value on a recurring basis	'
		Fair Value Measurements
		(in thousands)
				Quoted Prices in		Significant Other		Significant
				Active Markets for		Observable Inputs		Unobservable
				Identical Assets		(Level 2)		Inputs
				(Level 1)				(Level 3)
	At March 31, 2014:
	Cash and cash equivalents	$	35,460	$	35,460	$	—	$	—
	Short-term investments	36,147		12,152		23,995
	Total assets measured at fair value	$	71,607	$	47,612	$	23,995	$	—
	At December 31, 2013:
	Cash and cash equivalents	$	24,871	$	24,871	$	—	$	—
	Short-term investments	51,214		15,239		35,975
	Total assets measured at fair value	$	76,085	$	40,110	$	35,975	$	—

Lease_Receivables_Tables

Lease Receivables (Tables)	3 Months Ended
	Mar. 31, 2014
Lease Receivables	'
Schedule of maturities of minimum lease payments receivable	'
		(in thousands)
	Remainder of 2014	$	1,060
	2015	885
	2016	521
	2017	441
	2018	441
	Thereafter	110
		3,458
	Less: Current portion	(1,194		)
	Long-term sales-type lease receivable	$	2,264

Net_Earnings_per_Share_Details

Net Earnings per Share (Details) (USD $)	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Net Earnings per Share	'	'
Net earnings	$301	$1,098
Basic:	'	'
Weighted average common shares outstanding	22,491,000	18,690,000
Weighted average common shares of restricted stock that has not vested	-954,000	-1,158,000
Shares used in the computation of basic net earnings per share	21,537,000	17,532,000
Net earnings per share - basic (in dollars per share)	$0.01	$0.06
Diluted:	'	'
Shares used in the computation of basic net earnings per share	21,537,000	17,532,000
Employee and non-employee director stock options (in shares)	6,000	47,000
Restricted stock that has not vested (in shares)	466,000	348,000
Shares used in the computation of diluted net earnings per share	22,009,000	17,927,000
Net earnings per share - diluted (in dollars per share)	$0.01	$0.06
Restricted common stock that has not yet vested	'	'
Anti-dilutive shares	'	'
Shares of common stock excluded from the computation of diluted earnings per share	'	142,250

StockBased_Compensation_Detail

Stock-Based Compensation (Details) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Board of Directors	'	'
Other	'	'
Stock-based compensation expense	$131,000	$109,000
Issuance of fully vested shares	9,449	9,000
Restricted Stock	'	'
Stock-Based Compensation	'	'
Stock-based compensation expense	853,000	772,000
Unrecognized stock-based compensation expense related to restricted stock	4,200,000	'
Number of Shares	'	'
Restricted stock that had not yet vested at the beginning of the period (in shares)	1,181,515	'
Cancelled (in shares)	-7,800	'
Shares vested (in shares)	-190,650	'
Restricted stock that had not yet vested at the end of the period (in shares)	983,065	'
Weighted Average Grant-Date Fair Value	'	'
Non-vested restricted stock at the beginning of the period (in dollars per share)	$9.17	'
Cancelled (in dollars per share)	$11.10	'
Shares vested (in dollars per share)	$6.40	'
Non-vested restricted stock at the end of the period (in dollars per share)	$9.69	'
Stock Options	'	'
Stock-Based Compensation	'	'
Stock-based compensation expense	0	60,000
Weighted Average Grant-Date Fair Value	'	'
Unrecognized stock-based compensation expense related to stock options	$0	'
Stock option activity, Number of Shares	'	'
Outstanding options at the beginning of the period (in shares)	485,784	'
Options exercised (in shares)	-197,840	'
Outstanding options at the end of the period (in shares)	466,000	'
Exercisable options at the end of the period (in shares)	466,000	'
Stock option activity, Weighted Average Exercise Price	'	'
Outstanding options at the beginning of the period (in dollars per share)	$3.54	'
Options exercised (in dollars per share)	$3.94	'
Outstanding options at the end of the period (in dollars per share)	$3.52	'
Exercisable options at the end of the period (in dollars per share)	$3.52	'
Weighted Average Remaining Contract Life	'	'
Outstanding options at the end of the period	'5 years 2 months 8 days	'
Exercisable options at the end of the period	'5 years 2 months 8 days	'

Income_Taxes_Details

Income Taxes (Details) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Income Taxes	'	'
Effective tax rate (as a percent)	37.50%	41.10%
Recognized benefit of discrete item adjustments	$14,000	'
Expected annual effective tax rate (as a percent)	40.20%	'
Income tax expense	181,000	768,000
Amount of unrecognized tax benefits which would affect our effective tax rate if recognized	0	0
Accrued interest related to uncertain tax positions	0	0
Accrued penalties related to uncertain tax positions	$0	$0

Acquisitions_Details

Acquisitions (Details) (StraTech, USD $)	0 Months Ended	1 Months Ended	3 Months Ended	12 Months Ended
	Oct. 04, 2012	Jan. 31, 2014	Mar. 31, 2014	Dec. 31, 2013
Acquisitions	'	'	'	'
Purchase price	$11,900,000	'	'	'
Purchase price, cash payment	13,200,000	'	'	'
Decrease in receivable due from Sellers	3,300,000	'	936,000	'
Purchase price, shares of common stock issued	269,783	'	'	'
Purchase price, value of shares of common stock issued	200,000	'	'	'
Shares of common stock deposited in escrow account	242,805	'	'	'
Initial amount of receivable due from Sellers	4,200,000	'	'	'
Increase in purchase price	'	'	936,000	'
Shares of common stock deposited in escrow account released	'	242,805	'	'
Payment for shares of common stock released from escrow account	'	100,000	'	'
Uncollectible portion of receivable due from the Sellers	'	'	'	3,300,000
Receivable reclassified from accounts receivable to equity	'	'	'	2,647,000
Pre tax gain due to increase in stock price	'	'	$876,000	'
Maximum	'	'	'	'
Acquisitions	'	'	'	'
Measurement period	'	'	'1 year	'

Goodwill_and_Valuation_of_Long2

Goodwill and Valuation of Long-Lived Assets (Details) (USD $)	3 Months Ended		12 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013
	item		item
	unit
Goodwill and Valuation of Long-Lived Assets	'	'	'
Number of operating units	1	'	'
Number of reporting units	1	'	'
Goodwill	$37,780	'	$37,780
Impairment of goodwill	'	'	0
Number of triggering events that occurred	0	'	0
Identified intangible assets	'	'	'
Gross Assets	32,570	'	32,570
Accumulated Amortization	-20,477	'	-19,061
Net Assets	12,093	'	13,509
Amortization expenses	1,416	1,982	'
Future amortization expenses for the next five years	'	'	'
Remainder of 2014	3,877	'	'
2015	3,963	'	'
2016	2,937	'	'
2017	1,316	'	'
Net Assets	12,093	'	13,509
Customer relationships	'	'	'
Identified intangible assets	'	'	'
Gross Assets	29,133	'	29,133
Accumulated Amortization	-17,119	'	-15,743
Net Assets	12,014	'	13,390
Amortization expenses	1,376	1,938	'
Future amortization expenses for the next five years	'	'	'
Net Assets	12,014	'	13,390
Customer relationships | Minimum	'	'	'
Identified intangible assets	'	'	'
Amortizable Period	'5 years	'	'
Customer relationships | Maximum	'	'	'
Identified intangible assets	'	'	'
Amortizable Period	'8 years	'	'
Services agreement	'	'	'
Identified intangible assets	'	'	'
Amortizable Period	'4 years	'	'
Gross Assets	67	'	67
Accumulated Amortization	-67	'	-67
Amortization expenses	'	4	'
Certification	'	'	'
Identified intangible assets	'	'	'
Amortizable Period	'2 years	'	'
Gross Assets	467	'	467
Accumulated Amortization	-467	'	-467
Covenant not to compete	'	'	'
Identified intangible assets	'	'	'
Amortizable Period	'3 years	'	'
Gross Assets	478	'	478
Accumulated Amortization	-399	'	-359
Net Assets	79	'	119
Amortization expenses	40	40	'
Future amortization expenses for the next five years	'	'	'
Net Assets	79	'	119
Trademarks	'	'	'
Identified intangible assets	'	'	'
Amortizable Period	'3 years	'	'
Gross Assets	263	'	263
Accumulated Amortization	-263	'	-263
Order backlog	'	'	'
Identified intangible assets	'	'	'
Gross Assets	2,162	'	2,162
Accumulated Amortization	($2,162)	'	($2,162)
Order backlog | Minimum	'	'	'
Identified intangible assets	'	'	'
Amortizable Period	'3 months	'	'
Order backlog | Maximum	'	'	'
Identified intangible assets	'	'	'
Amortizable Period	'1 year	'	'

ShortTerm_Investments_Details

Short-Term Investments (Details) (USD $)	3 Months Ended	12 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Short-term investments	'	'
Amortized Cost	$36,351	$51,401
Gross Unrealized Gains	11	5
Gross Unrealized Losses	215	192
Fair Value	36,147	51,214
Short-term investments	36,147	51,214
Maturity period	'1 year	'
Minimum	'	'
Short-term investments	'	'
Interest rate on investment (as a percent)	0.80%	'
Maximum	'	'
Short-term investments	'	'
Interest rate on investment (as a percent)	5.30%	'
Commercial paper	'	'
Short-term investments	'	'
Amortized Cost	23,984	35,979
Gross Unrealized Gains	11	5
Gross Unrealized Losses	'	9
Fair Value	23,995	35,975
Corporate bonds	'	'
Short-term investments	'	'
Amortized Cost	12,367	15,422
Gross Unrealized Losses	215	183
Fair Value	$12,152	$15,239

Fair_Value_Measurements_Detail

Fair Value Measurements (Details) (Fair value on a recurring basis, USD $)

Mar. 31, 2013

Mar. 31, 2014

Dec. 31, 2013

Mar. 31, 2014

Dec. 31, 2013

Mar. 31, 2014

Dec. 31, 2013

Mar. 31, 2014

Dec. 31, 2013

Mar. 31, 2014

Dec. 31, 2013

Mar. 31, 2014

Dec. 31, 2013

Mar. 31, 2014

Dec. 31, 2013

Mar. 31, 2014

Dec. 31, 2013

In Thousands, unless otherwise specified

Fair value

Fair value

Fair value

Fair value

Fair value

Fair value

Quoted Prices in Active Markets for Identical Assets (Level 1)

Quoted Prices in Active Markets for Identical Assets (Level 1)

Quoted Prices in Active Markets for Identical Assets (Level 1)

Quoted Prices in Active Markets for Identical Assets (Level 1)

Quoted Prices in Active Markets for Identical Assets (Level 1)

Quoted Prices in Active Markets for Identical Assets (Level 1)

Significant Other Observable Inputs (Level 2)

Significant Other Observable Inputs (Level 2)

Significant Other Observable Inputs (Level 2)

Significant Other Observable Inputs (Level 2)

Cash and cash equivalents

Cash and cash equivalents

Short-term investments

Short-term investments

Cash and cash equivalents

Cash and cash equivalents

Short-term investments

Short-term investments

Short-term investments

Short-term investments

Fair Value Measurements

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Non-financial assets

$0

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Non-financial liabilities

0

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Total assets measured at fair value

'

$71,607

$76,085

$35,460

$24,871

$36,147

$51,214

$47,612

$40,110

$35,460

$24,871

$12,152

$15,239

$23,995

$35,975

$23,995

$35,975

Lease_Receivables_Details

Lease Receivables (Details) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Lease Receivables	'	'
Unearned income	$359,000	$57,000
Remainder of 2014	1,060,000	'
2015	885,000	'
2016	521,000	'
2017	441,000	'
2018	441,000	'
Thereafter	110,000	'
Net investment in sales-type lease receivables	3,458,000	1,300,000
Less: Current portion	-1,194,000	'
Long-term sales-type lease receivable	2,264,000	510,000
Lease receivables past due	$0	'

Line_of_Credit_Details

Line of Credit (Details) (USD $)	0 Months Ended
	Jul. 17, 2013	Mar. 31, 2014	Dec. 31, 2013
Combined facility | Minimum	'	'	'
Line of Credit	'	'	'
Tangible net worth	20,000,000	'	'
Quarterly net income	250,000	'	'
Combined facility | Maximum	'	'	'
Line of Credit	'	'	'
Funded debt to EBITDA ratio	3	'	'
Combined facility | CPC	'	'	'
Line of Credit	'	'	'
Maximum borrowing amount	40,000,000	'	'
Commitment fee (as a percent)	0.50%	'	'
Revolving facility | CPC	'	'	'
Line of Credit	'	'	'
Borrowing base as a percentage of certain eligible accounts	85.00%	'	'
Borrowing base as a percentage of channel financed inventory	100.00%	'	'
Revolving facility | Wells Fargo Bank, N.A.	'	'	'
Line of Credit	'	'	'
Margin added to the variable interest rate (as a percent)	2.00%	'	'
Variable interest rate (as a percent)	'one-month LIBOR	'	'
Interest rate at the end of the period (as a percent)	'	0.15%	'
Floor plan line of credit	'	'	'
Line of Credit	'	'	'
Margin added to the variable interest rate (as a percent)	4.00%	'	'
Variable interest rate (as a percent)	'LIBOR	'	'
Outstanding advances on the lines of credit	'	14,100,000	20,000,000
Prior credit agreement | Wells Fargo Bank, N.A.	'	'	'
Line of Credit	'	'	'
Maximum borrowing amount	'	'	$20,000,000