Datalink (DTLK) 10-Q 7 Aug 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Aug. 04, 2015
Document and Entity Information
Entity Registrant Name	DATALINK CORP
Entity Central Index Key	1,056,923
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
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		23,328,991
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Current assets
Cash and cash equivalents	$ 43,400	$ 27,725
Short-term investments	17,475	22,994
Accounts receivable, net	133,081	171,531
Net working capital receivable from acquisition		741
Lease receivable	2,343	2,482
Inventories, net	8,564	5,447
Current deferred customer support contract costs	120,736	106,497
Inventories shipped but not installed	12,983	20,035
Income tax receivable	3,861	4,194
Other current assets	1,364	3,563
Total current assets	343,807	365,209
Property and equipment, net	7,174	7,244
Goodwill	48,016	48,016
Finite-lived intangibles, net	12,697	16,603
Deferred customer support contract costs, non-current	59,102	58,484
Deferred taxes	5,660	5,660
Long-term lease receivable	3,435	4,016
Other assets	742	759
Total assets	480,633	505,991
Current liabilities
Floor plan line of credit	24,312	27,656
Accounts payable	47,817	86,266
Lease payable	1,993	2,319
Accrued commissions	3,720	5,334
Accrued sales and use taxes	2,249	4,117
Accrued expenses, other	7,023	7,730
Deferred taxes	1,982	1,982
Customer deposits	5,069	3,325
Current deferred revenue from customer support contracts	147,478	131,061
Other current liabilities	780	746
Total current liabilities	242,423	270,536
Deferred revenue from customer support contracts, non-current	71,081	70,663
Long-term leases payable	2,616	3,278
Other liabilities, non-current	801	828
Total liabilities	316,921	345,305
Stockholders' equity
Common stock, $.001 par value, 50,000,000 shares authorized, 23,418,334 and 22,876,753 shares issued and outstanding as of June 30, 2015 and December 31, 2014, respectively	23	23
Additional paid-in capital	117,426	115,048
Retained earnings	46,263	45,615
Total stockholders' equity	163,712	160,686
Total liabilities and stockholders' equity	$ 480,633	$ 505,991

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2015	Dec. 31, 2014
Consolidated Balance Sheets
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares issued	23,418,334	22,876,753
Common stock, shares outstanding	23,418,334	22,876,753

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Net sales:
Products	$ 108,787	$ 98,252	$ 215,523	$ 181,447
Services	73,844	61,128	142,460	117,468
Total net sales	182,631	159,380	357,983	298,915
Cost of sales:
Cost of products	88,186	76,411	173,968	143,181
Cost of services	57,973	47,486	112,375	90,769
Total cost of sales	146,159	123,897	286,343	233,950
Gross profit	36,472	35,483	71,640	64,965
Operating expenses:
Sales and marketing	18,289	15,867	35,711	31,531
General and administrative	6,475	4,838	13,484	10,157
Engineering	8,626	7,446	16,868	14,960
Integration and transaction costs	70		520
Amortization of intangibles	1,833	1,359	3,906	2,775
Total operating expenses	35,293	29,510	70,489	59,423
Earnings from operations	1,179	5,973	1,151	5,542
Other income (expense):
Gain on settlement related to StraTech acquisition				876
Interest income	55	74	127	139
Interest expense	(70)	(80)	(137)	(108)
Earnings before income taxes	1,164	5,967	1,141	6,449
Income tax expense	503	2,404	494	2,585
Net earnings	$ 661	$ 3,563	$ 647	$ 3,864
Net earnings per common share:
Basic (in dollars per share)	$ 0.03	$ 0.17	$ 0.03	$ 0.18
Diluted (in dollars per share)	$ 0.03	$ 0.16	$ 0.03	$ 0.17
Weighted average common shares outstanding:
Basic (in shares)	22,004	21,519	21,977	21,528
Diluted (in shares)	22,639	22,196	22,518	22,177

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash flows from operating activities:
Net earnings	$ 647	$ 3,864
Adjustments to reconcile net earnings to net cash provided by operating activities:
Change in fair value of short-term investments	8	4
Provision (benefit) for bad debts	(160)	71
Depreciation	1,679	1,222
Amortization of finite-lived intangibles	3,906	2,775
Gain on settlement related to StraTech acquisition		(876)
Loss on disposal of assets	149	19
Deferred income taxes		316
Stock-based compensation expense	3,096	1,724
Changes in operating assets and liabilities:
Accounts receivable and leases receivable, net	40,071	26,663
Inventories	3,935	9,522
Deferred customer support contract costs/revenues/customer deposits, net	3,722	4,211
Accounts payable and leases payable	(39,437)	(25,145)
Accrued expenses	(4,189)	(4,903)
Income tax receivable	333	(1,481)
Income tax payable		(11,586)
Other	2,223	479
Net cash provided by operating activities	15,983	6,879
Cash flows from investing activities:
Purchases, sales and maturities of trading securities, net	5,511	6,173
Purchases of property and equipment	(1,758)	(1,357)
Net cash provided by investing activities	3,753	4,816
Cash flows from financing activities:
Net payments under floor plan line of credit	(3,344)	(2,986)
Excess tax from stock compensation	136	526
Proceeds from issuance of common stock from option exercise	34	88
Tax withholding payments reimbursed by restricted stock	(887)	(795)
Net cash used in financing activities	(4,061)	(3,167)
Increase in cash and cash equivalents	15,675	8,528
Cash and cash equivalents, beginning of period	27,725	24,871
Cash and cash equivalents, end of period	43,400	33,399
Supplementary cash flow information:
Cash paid for income taxes	113	$ 14,809
Cash received for income tax refunds	88
Cash paid for interest expense	$ 21

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jun. 30, 2015
Basis of Presentation
Basis of Presentation	1. Basis of Presentation The Company has 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”). The Company has 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 the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. The financial statements presented herein as of June 30, 2015, and for the three months and six months ended June 30, 2015 and 2014, 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 that the Company reports, and the Company’s 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 the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. Actual results could differ materially from these estimates and assumptions. Recently Issued Accounting Standards In July 2015, that FASB deferred the effective date of guidance that was originally issued in May 2014 in Accounting Standards Update 2014-09, Revenue from Contracts with Customers (“ASU No. 2014-09”) . The standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance. This ASU is intended to provide a more robust framework for addressing revenue issues; improve comparability of revenue recognition practices across entities, industries, jurisdictions and capital markets; and provide more useful information to users of financial statements through improved revenue disclosure requirements. The provisions of this ASU are now effective for interim and annual periods beginning after December 15, 2017. The Company is currently determining its implementation approach and assessing the impact on its consolidated financial statements. In January 2015, the FASB issued Accounting Standards Update 2015-01, Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items, an update to ASC Topic 225 — Income Statement (“ASU 2015-01”) , which eliminates from accounting principles generally accepted in the United States the concept of extraordinary items. Subtopic 225-20, Income Statement — Extraordinary and Unusual Items, required that an entity separately classify, present, and disclose extraordinary events and transactions. Presently, an event or transaction is presumed to be an ordinary and usual activity of the reporting entity unless evidence clearly supports its classification as an extraordinary item. ASU 2015-01 is effective for annual periods beginning after December 15, 2015. An entity has the option to adopt the changes earlier provided that the guidance is applied from the beginning of the fiscal year of adoption. The Company currently does not anticipate the adoption of this standard will have a material impact on its consolidated financial statements. In June 2014, the FASB issued Accounting Standards Update 2014-12, Compensation—Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide that a Performance Target Could be Achieved after the Requisite Service Period (“ASU 2014-12”) , which requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. Thus, the performance target should not be reflected in estimating the grant date fair value of the award. This update further clarifies that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. The provisions of this ASU are effective for interim and annual periods beginning after December 15, 2015. Entities can apply the amendment either (a) prospectively to all awards granted or modified after the effective date or (b) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. The Company currently does not anticipate the adoption of this standard will have a material impact on its consolidated financial statements.

Net Earnings per Share

Net Earnings per Share	6 Months Ended
	Jun. 30, 2015
Net Earnings per Share
Net Earnings per Share	2. Net Earnings per Share The Company computes 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 net earnings 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 Six Months Ended June 30, June 30, 2015 2014 2015 2014 (in thousands, except per share data) Net earnings $ $ $ $ Basic: Shares used in the computation of basic net earnings per share Net earnings per share — basic $ $ $ $ Diluted: Shares used in the computation of basic net earnings per share Employee and non-employee director stock options Restricted stock that has not yet vested, net Shares used in the computation of diluted net earnings per share Net earnings per share — diluted $ $ $ $ The Company excluded the following restricted stock grants that have not vested from weighted average common shares outstanding used in the computation of basic net earnings per share: Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Restricted common stock that has not yet vested The Company excluded the following restricted stock grants that have not yet vested from the computation of diluted earnings per share as their effect would have been anti-dilutive: Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Restricted common stock that has not yet vested

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jun. 30, 2015
Stock-Based Compensation
Stock-Based Compensation	3. Stock-Based Compensation Restricted Stock: Total stock-based compensation expense related to restricted stock was $1.6 million and $645,000 for the three months ended June 30, 2015 and 2014, respectively. Total stock-based compensation expense related to restricted stock was $2.9 million and $1.5 million for the six months ended June 30, 2015 and 2014, respectively. Unrecognized stock-based compensation expense related to restricted stock was $8.4 million at June 30, 2015, which the Company will amortize ratably through February 2019. The following table summarizes the Company’s restricted stock activity for the six months ended June 30, 2015: Number of Shares Weighted Average Grant-Date Fair Value Restricted stock that had not vested at January 1, 2015 $ Granted Cancelled ) Shares vested ) Restricted stock that has not vested at June 30, 2015 $ Stock Options: The Company recognized no stock-based compensation expense related to stock options for the three and six months ended June 30, 2015 or for the three and six months ended June 30, 2014. There was no unrecognized stock-based compensation expense related to stock options at June 30, 2015. The following table represents stock option activity for the six months ended June 30, 2015: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contract Life in Years Outstanding options as of January 1, 2015 $ Options granted — — Options exercised ) Options cancelled — — Outstanding options as of June 30, 2015 $ Exercisable options as of June 30, 2015 $ Other: Effective January 1, 2014 and pursuant to Deferred Stock Unit (“DSU”) Master Agreements, each member of the board of directors may elect to receive DSUs with a fair value equivalent to a percentage of each quarterly installment of the annual cash retainer for non-employee directors to which that member would otherwise be entitled for service as a Datalink director. In addition, each member of the board of directors may elect to receive a DSU award equal to a percentage of the award of shares of Restricted Stock to which that member would otherwise have been entitled as the equity component of the annual retainer. The DSUs and DSU awards vest and become non-forfeitable on each of June 30, 2015, September 30, 2015, December 31, 2015 and March 31, 2016, provided the board member remains in service with us. The Company will issue one share in payment and settlement of each vested DSU subject to the Master DSU Agreement following a termination of that board member’s service with Datalink. The Company recognized expense of $87,000 and $96,000 during each of the three-month periods ended June 30, 2015 and 2014 related to awards of 9,699 shares and 9,625 shares, respectively, of fully vested common stock to members of the Company’s Board of Directors. Of the 9,699 shares of fully vested stock awarded to members of the Company’s Board of Directors during the three months ended June 30, 2015, 5,199 shares were DSUs. Of the 9,625 shares of fully vested stock awarded to members of the Company’s Board of Directors during the three months ended June 30, 2014, 5,125 shares were DSUs. During the six months ended June 30, 2015 and 2014, the Company recognized expense of $219,000 and $228,000, respectively, related to awards of 20,718 shares and 19,074 shares, respectively, of fully vested common stock to members of the Company’s Board of Directors. Of the 20,718 shares of fully vested stock awarded to members of the Company’s Board of Directors during the six months ended June 30, 2015, 10,218 shares were DSUs. Of the 19,074 shares of fully vested stock awarded to members of the Company’s Board of Directors during the six months ended June 30, 2014, 5,574 shares were DSUs.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2015
Income Taxes
Income Taxes	4. Income Taxes The Company bases the provision for income taxes upon estimated annual effective tax rates in the tax jurisdictions in which the Company operates. For the three months ended June 30, 2015 and 2014, the Company’s effective tax rate was 43.2% and 40.3%, respectively. For the first six months of 2015 and 2014, the Company’s effective tax rate was 43.3% and 40.1%, respectively. The increase in the Company’s tax rate for the three and six months ended June 30, 2015 as compared to the same periods in 2014 is mainly due to the decrease in earnings before income taxes of $4.8 million and $5.3 million, respectively, over the same period. The Company recognized $17,000 of additional expense from discrete items during the three and six months ended June 30, 2015. The Company recognized $14,000 of benefits from discrete item adjustments during the six months ended June 30, 2014. The Company expects its annual effective tax rate for 2015 to be approximately 41.8%. As part of the process of preparing financial statements, the Company estimates federal and state income taxes. Management estimates the actual current tax exposure and assesses temporary differences resulting from different treatments for tax and accounting purposes. These differences result in deferred tax assets and liabilities, which the Company includes within its balance sheet. Management must then assess the likelihood that the Company will utilize deferred tax assets to offset future taxable income during the periods in which the Company may deduct these temporary differences. For the three and six months ended June 30, 2015, the Company recorded income tax expense of $503,000 and $494,000, respectively, with an effective tax rate of 43.2% and 43.3%, respectively. Included in the balance of unrecognized tax benefits at each of June 30, 2015 and December 31, 2014 are potential benefits of $236,000 that, if recognized, would affect the effective tax rate. There are no interest or penalties accrued for this liability, however, any future amounts accrued would be a component of income tax expense. The Company does not anticipate that the total amount of unrecognized tax benefits as of June 30, 2015 will change significantly in the next 12 months. The Company files income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. As of June 30, 2015, the Company was no longer subject to federal income tax examinations for taxable years before 2011. As a result of the acquisition of Bear Data Solutions, Inc. (“Bear Data”) in October, 2014, utilization of U.S. net operating losses and tax credits of Bear Data are subject to annual limitations under Internal Revenue Code Sections 382 and 383, respectively.

Acquisitions

Acquisitions	6 Months Ended
	Jun. 30, 2015
Acquisitions
Acquisitions	5. Acquisitions Bear Data Solutions, Inc. On October 18, 2014, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Bear Data. Bear Data is primarily an IT services firm, serving California-based and international customers from offices in San Francisco, San Jose, Irvine and San Diego. A significant portion of its revenues is derived from networking products including Cisco wireless, routing and core switches. The aggregate purchase price for the overall transaction was approximately $13.4 million, including a cash payment of $12.7 million, net of cash acquired, in connection with the merger (the “Preliminary Purchase Price”), which is partially offset by a net working capital receivable from the sellers of $741,000 resulting from the preliminary estimated net tangible asset adjustment as defined by the Merger Agreement. The Preliminary Purchase Price will be subject to certain adjustments to reflect the difference, if any, between the net working capital at closing and target net working capital. An aggregate amount of $2.4 million of the Preliminary Purchase Price was placed into escrow to cover any post-closing adjustment to the Preliminary Purchase Price and indemnification obligations of the securityholders. Pursuant to the Merger Agreement, the sellers of Bear Data are obligated to pay us an amount equal to the difference between the actual net tangible assets on the closing date and the sellers’ good faith estimate of net tangible assets as set forth in the Merger Agreement. The Company entered into a Common Stock Purchase Agreement (the “Common Stock Purchase Agreement”), also dated as of October 18, 2014, by and among Datalink Corporation, Merger Sub, and three executive securityholders of Bear Data. Under the Common Stock Purchase Agreement, the Company issued 156,360 shares of its common stock with a value of approximately $1.5 million, net of illiquidity adjustments, to the three Bear Data executives. The $13.4 million aggregate purchase price for the overall transaction discussed above includes the $1.5 million issuance of shares to the executive securityholders of Bear Data. For this purpose, the Company’s common stock was valued at the volume-weighted average of the per share trading prices of its common stock as reported through Bloomberg (based on all trades in the Company’s common stock and not an average of daily averages) for the 20 consecutive full trading days ending one business day prior to closing. These shares had an aggregate value of $1.7 million, offset by a $192,000 illiquidity adjustment. 75% of the shares issued under the Common Stock Purchase Agreement will not be transferable until the first anniversary of closing. Under the acquisition method of accounting, the Company estimated the fair value of the assets acquired and liabilities assumed of Bear Data primarily using a discounted cash flow approach with respect to identified intangible assets and goodwill. The Company based this approach upon its estimates of future cash flows from the acquired assets and liabilities and utilized a discount rate consistent with the inherent risk associated with the acquired assets and liabilities assumed. The $13.4 million aggregate purchase price for the overall transaction discussed above consisted of $10.2 million of goodwill, $9.5 million of finite-lived intangible assets, and $6.3 million of net tangible liabilities. The $9.5 million of finite-lived intangibles consisted of $370,000 of covenants not to compete, $890,000 of trademarks, $7,810,000 of customer relationships and $452,200 of order backlog having estimated lives of three years, three years, six years and three months, respectively. The indefinite-lived asset consisted of goodwill of approximately $10.2 million, which was not deductible for tax purposes. The Company is amortizing the covenants not to compete, trademarks, and order backlog using the straight line method. The Company is amortizing the customer relationships it acquired in the Bear Data acquisition over its useful life using an accelerated amortization method, to match the pattern in which the economic benefits of that asset are expected to be consumed. Integration costs for 2015 include salaries, benefits and retention bonuses of exiting employees, some of whom assisted with the initial integration of Bear Data. In addition, transaction costs for 2015 include legal, audit, and other outside service fees necessary to complete the Company’s acquisition of Bear Data, which were expensed. Total integration and transaction costs were $70,000 and $520,000 for the three and six months ended June 30, 2015, respectively. Strategic Technologies, Inc. On October 4, 2012, the Company 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 of StraTech”). StraTech is an IT services and solutions firm that shares the Company’s focus on optimizing enterprise data centers and IT infrastructure through a common product and services portfolio designed to help customers increase business agility. The Company 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 StraTech of approximately $3.3 million, resulting from the preliminary net tangible asset adjustment as defined by the asset purchase agreement. In addition, the Company issued 269,783 shares of its 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 of StraTech. Pursuant to the asset purchase agreement, the Sellers of StraTech were obligated to pay the Company an amount equal to the difference between the actual net tangible assets on the closing date and the Sellers’ good faith estimated net tangible assets as set forth in the asset purchase agreement. The Company initially recorded a receivable due from the Sellers of StraTech of approximately $4.2 million related to this payment at the acquisition date. The Sellers of StraTech provided us with a “Notice of Disagreement,” which stated that they disputed the amount owed to the Company in connection with this reconciliation payment. The asset purchase agreement contained an arbitration provision for disputes over the value of net tangible assets. During the measurement period (up to one year from the acquisition date), the final net tangible asset adjustment was agreed to and the net effect was a decrease in the receivable due from the Sellers of StraTech of $936,000 and an increase in the purchase price for the same amount as reflected above. In January 2014, the Company reached a settlement agreement with the former owners of StraTech regarding the disputed amount owed to the Company 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 of StraTech 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 the Company’s common stock on the date of the settlement agreement in January 2014, the Company recorded a gain before tax of approximately $876,000 during the first six months of 2014 as a result of the increase in the Company’s stock price from December 31, 2013 to the date it repossessed the shares in escrow. In connection with this acquisition, the Company allocated the total purchase consideration to the net assets acquired, including finite-lived intangible assets, based in their respective fair values at the acquisition date. The total purchase price paid for StraTech was approximately $11.9 million, of which approximately $5.3 million was allocated to goodwill, $15.9 million to identifiable intangible assets, and $9.3 million to net tangible liabilities. The finite-lived intangible, which consisted of customer relationships, has an estimated life of five years. The Company is amortizing the finite-lived intangible asset it acquired in the StraTech acquisition over its useful life using an accelerated amortization method, to match the pattern in which the economic benefits of that asset are expected to be consumed. The Company may deduct the goodwill for tax purposes over a 15-year period.

Goodwill and Finite-Lived Intan

Goodwill and Finite-Lived Intangible Assets	6 Months Ended
	Jun. 30, 2015
Goodwill and Finite-Lived Intangible Assets
Goodwill and Finite-Lived Intangible Assets	6. Goodwill and Finite-Lived Intangible Assets The Company assesses the carrying amount of its goodwill for potential impairment annually or more frequently if events or a change in circumstances indicate that impairment may have occurred. The Company performs 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 the Company’s 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. The Company has only one operating and reporting unit that earns revenues, incurs expenses and makes available discrete financial information for review by its chief operations decision maker. Accordingly, the Company completes its goodwill impairment testing on this single reporting unit. In conducting the annual impairment test of the Company’s 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 the Company’s market capitalization with the carrying value of its net assets. If the Company’s total market capitalization is at or below the carrying value of its net assets, the Company performs the second step of the goodwill impairment test to measure the amount of impairment loss it records, if any. The Company considers goodwill impairment test estimates critical due to the amount of goodwill recorded on its balance sheet and the judgment required in determining fair value amounts. Goodwill was $48.0 million as of each of June 30, 2015 and December 31, 2014. The Company conducted its annual goodwill impairment test as of December 31, 2014, its last measurement date. Based on this analysis, the Company determined that there was no impairment to goodwill. The Company will continue to monitor conditions and changes that could indicate impairment of its recorded goodwill. At each of June 30, 2015 and December 31, 2014, the Company determined that no triggering events had occurred and its finite-lived assets and long-lived assets were not impaired. Identified intangible assets are summarized as follows (in thousands): Amortizable As of June 30, 2015 As of December 31, 2014 Period (years) Gross Assets Accumulated Amortization Net Assets Gross Assets Accumulated Amortization Net Assets Customer relationships 5-8 $ $ ) $ $ $ ) $ Services agreement 4 ) — ) — Certification 2 ) — ) — Covenant not to compete 3 ) ) Trademarks 3 ) ) Order backlog 3 months - 1 year ) — ) Total identified intangible assets $ $ ) $ $ $ ) $ Amortization expense for identified intangible assets is summarized below (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Statement of Operations Classification Customer relationships $ $ $ $ Operating expenses Covenant not to compete Operating expenses Trademarks — — Operating expenses Order backlog — — Operating expenses Total identified intangible assets $ $ $ $ Based on the identified intangible assets recorded at June 30, 2015, scheduled future amortization expense for the next five years is as follows: (in thousands) Remainder of 2015 $ 2016 2017 2018 2019 $

Short-Term Investments

Short-Term Investments	6 Months Ended
	Jun. 30, 2015
Short-Term Investments..
Short-Term Investments	7. Short-Term Investments Our short-term investments consist of commercial paper and interest-bearing CDs. 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 June 30, 2015 At December 31, 2014 (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Commercial paper $ $ — $ $ $ $ $ — $ Interest-bearing CD — — — — — Total $ $ — $ $ $ $ $ $ Our $17.5 million of short-term investments are comprised of commercial paper with maturities within one year and interest rates ranging from 0.2% to 0.6%.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2015
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, the Company considers 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. The Company applies fair value measurements for both financial and nonfinancial assets and liabilities. The Company has no nonfinancial assets or liabilities that require measurement at fair value on a recurring basis as of June 30, 2015. The fair value of the Company’s 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. The Company uses 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 the Company cannot corroborate by observable market data and thus reflect the use of significant management judgment. The Company generally determines these values using pricing models based on assumptions its 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, the Company determines the fair value measurement based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s 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 the Company’s financial assets and/or liabilities at fair value on a recurring basis as of June 30, 2015 and December 31, 2014 according to the valuation techniques the Company used to determine their fair value(s). Fair Value Measurements (in thousands) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) At June 30, 2015: Cash and cash equivalents $ $ $ — $ — Short-term investments — — Total assets measured at fair value $ $ $ $ — At December 31, 2014: Cash and cash equivalents $ $ $ — $ — Short-term investments — Total assets measured at fair value $ $ $ $ —

Sales-Type Lease Receivables an

Sales-Type Lease Receivables and Sales-Leaseback Arrangements	6 Months Ended
	Jun. 30, 2015
Sales-Type Lease Receivables and Sales-Leaseback Arrangements
Sales-Type Lease Receivables and Sales-Leaseback Arrangements	9. Sales-Type Lease Receivables and Sales-Leaseback Arrangements The Company occasionally enters into sales-type lease agreements with its customers resulting from the sale of certain products. The Company’s lease receivables are recorded at cost within the accounts receivable and long-term lease receivables balances on its 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 $5.5 million and $6.1 million at June 30, 2015 and December 31, 2014, respectively, is reflected net of unearned income of $318,000 and $435,000 at June 30, 2015 and December 31, 2014, respectively. As of June 30, 2015, scheduled maturities of minimum lease payments receivable were as follows for the fiscal years ended December 31: (in thousands) Remainder of 2015 $ 2016 2017 2018 2019 Less: Current portion ) Long-term sales-type lease receivable $ Lease receivables are individually evaluated for impairment. In the event the Company determines that a lease receivable may not be paid, it includes in its allowance an amount for the outstanding balance related to the lease receivable. At June 30, 2015, there were no material amounts past due related to lease receivables. The Company’s lease receivables typically generate monthly cash inflows with average lease durations of 24 to 36 months. To better match cash outflows related to these receivables, the Company occasionally finances the equipment associated with its leases receivable through sales-leaseback arrangements over a period commensurate with the receivable. Gains associated with these sales are deferred in accordance with the accounting for sales-leaseback transactions and are amortized over the lives of the related lease agreements. As of June 30, 2015, the Company’s scheduled contractual cash obligations for future minimum lease payments were as follows for the fiscal years ended December 31: (in thousands) Remainder of 2015 $ 2016 2017 2018 2019 Less: Current portion ) Long-term sales-type lease receivable $ Of the $4.6 million of contractual cash obligations for future minimum lease payments at June 30, 2015, $306,000 represented interest.

Line of Credit

Line of Credit	6 Months Ended
	Jun. 30, 2015
Line of Credit
Line of Credit	10. Line of Credit On July 17, 2013, the Company entered into a Credit Agreement (“Credit Agreement”) with Castle Pines Capital LLC (“CPC”), an affiliate of Wells Fargo Bank, National Association (“Wells Fargo”). The Credit Agreement provided for a channel finance facility (“Floor Plan Line of Credit”) and a revolving facility (“Revolving Facility” and, together with the Floor Plan Line of Credit, “Combined Facility”) in a maximum combined aggregate amount of $40 million. On May 21, 2015, the Company entered into the Second Amendment to Credit Agreement (the “Amended Agreement”), which provides an increase to the Combined Facility for a maximum combined aggregate borrowing amount of $75 million. Under the Amended Agreement, borrowing under the Revolving Facility cannot exceed the lesser of (i) $75 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 will finance certain purchases of inventory by us from vendors approved by CPC and the Revolving Facility may be used for working capital purposes and permitted acquisitions. The amounts outstanding under the Revolving Facility bear interest at a per annum rate of 2.0% above Wells Fargo’s one-month LIBOR rate (approximately 0.19% at June 30, 2015). 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%. Under the Credit Agreement, the Company was 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 Amended Agreement eliminates the unused commitment fee. The Combined Facility and certain bank product obligations owed to Wells Fargo or its affiliates are secured by substantially all of the Company’s personal property. The Amended Agreement terminates on January 9, 2018 and the Company will be obligated to pay certain prepayment fees if the Credit Agreement is terminated prior to that date. The Amended Agreement contains customary representations, warranties, covenants and events of default, including but not limited to, covenants restricting the Company’s ability to (i) grant liens on its assets, (ii) make certain fundamental changes, including merging or consolidating with another entity or making any material change in the nature of its 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. The Amended Agreement contains certain covenants regarding the Company’s financial performance, including (i) a minimum tangible net worth of at least $30 million, and (ii) a minimum quarterly free cash flow requirement, which requires us to have free cash flow of at least $5 million at the end of each fiscal quarter for the trailing twelve-month period then ended, commencing December 31, 2014 and continuing at the end of each fiscal quarter thereafter. Of the $75 million maximum borrowing amount available at June 30, 2015 under the Combined Facility, the Company had outstanding advances of $24.3 million and $27.7 million on the Floor Plan Line of Credit at June 30, 2015 and December 31, 2014, respectively, related to the purchase of inventory from certain vendors.

Basis of Presentation (Policies

Basis of Presentation (Policies)	6 Months Ended
	Jun. 30, 2015
Basis of Presentation
Recently Issued Accounting Standards	Recently Issued Accounting Standards In July 2015, that FASB deferred the effective date of guidance that was originally issued in May 2014 in Accounting Standards Update 2014-09, Revenue from Contracts with Customers (“ASU No. 2014-09”) . The standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance. This ASU is intended to provide a more robust framework for addressing revenue issues; improve comparability of revenue recognition practices across entities, industries, jurisdictions and capital markets; and provide more useful information to users of financial statements through improved revenue disclosure requirements. The provisions of this ASU are now effective for interim and annual periods beginning after December 15, 2017. The Company is currently determining its implementation approach and assessing the impact on its consolidated financial statements. In January 2015, the FASB issued Accounting Standards Update 2015-01, Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items, an update to ASC Topic 225 — Income Statement (“ASU 2015-01”) , which eliminates from accounting principles generally accepted in the United States the concept of extraordinary items. Subtopic 225-20, Income Statement — Extraordinary and Unusual Items, required that an entity separately classify, present, and disclose extraordinary events and transactions. Presently, an event or transaction is presumed to be an ordinary and usual activity of the reporting entity unless evidence clearly supports its classification as an extraordinary item. ASU 2015-01 is effective for annual periods beginning after December 15, 2015. An entity has the option to adopt the changes earlier provided that the guidance is applied from the beginning of the fiscal year of adoption. The Company currently does not anticipate the adoption of this standard will have a material impact on its consolidated financial statements. In June 2014, the FASB issued Accounting Standards Update 2014-12, Compensation—Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide that a Performance Target Could be Achieved after the Requisite Service Period (“ASU 2014-12”) , which requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. Thus, the performance target should not be reflected in estimating the grant date fair value of the award. This update further clarifies that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. The provisions of this ASU are effective for interim and annual periods beginning after December 15, 2015. Entities can apply the amendment either (a) prospectively to all awards granted or modified after the effective date or (b) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. The Company currently does not anticipate the adoption of this standard will have a material impact on its consolidated financial statements.

Net Earnings per Share (Tables)

Net Earnings per Share (Tables)	6 Months Ended
	Jun. 30, 2015
Net Earnings per Share
Schedule of computation of basic and diluted net earnings per share	Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 (in thousands, except per share data) Net earnings $ $ $ $ Basic: Shares used in the computation of basic net earnings per share Net earnings per share — basic $ $ $ $ Diluted: Shares used in the computation of basic net earnings per share Employee and non-employee director stock options Restricted stock that has not yet vested, net Shares used in the computation of diluted net earnings per share Net earnings per share — diluted $ $ $ $
Schedule of restricted stock grants that have not yet vested and excluded from the computation of basic earnings per share	Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Restricted common stock that has not yet vested
Schedule of restricted stock grants that have not yet vested and excluded from computation of diluted earnings per share	Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Restricted common stock that has not yet vested

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2015
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 vested at January 1, 2015 $ Granted Cancelled ) Shares vested ) Restricted stock that has not vested at June 30, 2015 $
Summary of stock option activity	Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contract Life in Years Outstanding options as of January 1, 2015 $ Options granted — — Options exercised ) Options cancelled — — Outstanding options as of June 30, 2015 $ Exercisable options as of June 30, 2015 $

Goodwill and Finite-Lived Int19

Goodwill and Finite-Lived Intangible Assets (Tables)	6 Months Ended
	Jun. 30, 2015
Goodwill and Finite-Lived Intangible Assets
Summary of identified intangible assets	Identified intangible assets are summarized as follows (in thousands): Amortizable As of June 30, 2015 As of December 31, 2014 Period (years) Gross Assets Accumulated Amortization Net Assets Gross Assets Accumulated Amortization Net Assets Customer relationships 5-8 $ $ ) $ $ $ ) $ Services agreement 4 ) — ) — Certification 2 ) — ) — Covenant not to compete 3 ) ) Trademarks 3 ) ) Order backlog 3 months - 1 year ) — ) Total identified intangible assets $ $ ) $ $ $ ) $
Summary of amortization expense for identified intangible assets	Amortization expense for identified intangible assets is summarized below (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Statement of Operations Classification Customer relationships $ $ $ $ Operating expenses Covenant not to compete Operating expenses Trademarks — — Operating expenses Order backlog — — Operating expenses Total identified intangible assets $ $ $ $
Schedule of future amortization expense for the next five years	Based on the identified intangible assets recorded at June 30, 2015, scheduled future amortization expense for the next five years is as follows: (in thousands) Remainder of 2015 $ 2016 2017 2018 2019 $

Short-Term Investments (Tables)

Short-Term Investments (Tables)	6 Months Ended
	Jun. 30, 2015
Short-Term Investments..
Summary of short-term investments	At June 30, 2015 At December 31, 2014 (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Commercial paper $ $ — $ $ $ $ $ — $ Interest-bearing CD — — — — — Total $ $ — $ $ $ $ $ $

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2015
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 Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) At June 30, 2015: Cash and cash equivalents $ $ $ — $ — Short-term investments — — Total assets measured at fair value $ $ $ $ — At December 31, 2014: Cash and cash equivalents $ $ $ — $ — Short-term investments — Total assets measured at fair value $ $ $ $ —

Sales-Type Lease Receivables 22

Sales-Type Lease Receivables and Sales-Leaseback Arrangements (Tables)	6 Months Ended
	Jun. 30, 2015
Sales-Type Lease Receivables and Sales-Leaseback Arrangements
Schedule of maturities of minimum lease payments receivable	As of June 30, 2015, scheduled maturities of minimum lease payments receivable were as follows for the fiscal years ended December 31: (in thousands) Remainder of 2015 $ 2016 2017 2018 2019 Less: Current portion ) Long-term sales-type lease receivable $
Schedule of contractual cash obligations of future minimum lease payments	As of June 30, 2015, the Company’s scheduled contractual cash obligations for future minimum lease payments were as follows for the fiscal years ended December 31: (in thousands) Remainder of 2015 $ 2016 2017 2018 2019 Less: Current portion ) Long-term sales-type lease receivable $

Net Earnings per Share (Details

Net Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Net Earnings per Share
Net earnings	$ 661	$ 3,563	$ 647	$ 3,864
Basic:
Shares used in the computation of basic net earnings per share	22,004,000	21,519,000	21,977,000	21,528,000
Net earnings per share - basic (in dollars per share)	$ 0.03	$ 0.17	$ 0.03	$ 0.18
Diluted:
Shares used in the computation of basic net earnings per share	22,004,000	21,519,000	21,977,000	21,528,000
Employee and non-employee director stock options (in shares)	151,000	160,000	159,000	172,000
Restricted stock that has not yet vested, net (in shares)	484,000	517,000	382,000	477,000
Shares used in the computation of diluted net earnings per share	22,639,000	22,196,000	22,518,000	22,177,000
Net earnings per share - diluted (in dollars per share)	$ 0.03	$ 0.16	$ 0.03	$ 0.17
Restricted Stock
Anti-dilutive shares
Stock that has not yet vested and excluded from computation of basic earnings per share	1,403,349	969,508	1,430,826	960,638
Stock that has not yet vested and excluded from the computation of diluted earnings per share	38,427	27,000	38,427	27,000

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Board of Directors
Other
Expense for common stock awards	$ 87,000	$ 96,000	$ 219,000	$ 228,000
Awards of fully vested shares	9,699	9,625	20,718	19,074
Restricted Stock
Stock-Based Compensation
Stock-based compensation expense	$ 1,600,000	$ 645,000	$ 2,900,000	$ 1,500,000
Unrecognized stock-based compensation expense related to restricted stock	$ 8,400,000		$ 8,400,000
Number of Shares
Restricted stock that had not vested at the beginning of the period (in shares)			1,003,841
Granted (in shares)			602,810
Cancelled (in shares)			(41,250)
Shares vested (in shares)			(234,197)
Restricted stock that has not vested at the end of the period (in shares)	1,331,204		1,331,204
Weighted Average Grant-Date Fair Value
Non-vested restricted stock at the beginning of the period (in dollars per share)			$ 10.55
Granted (in dollars per share)			11.88
Cancelled (in dollars per share)			11.19
Shares vested (in dollars per share)			9.99
Non-vested restricted stock at the end of the period (in dollars per share)	$ 11.23		$ 11.23
Stock Options
Stock-Based Compensation
Stock-based compensation expense	$ 0	$ 0	$ 0	$ 0
Unrecognized stock-based compensation expense related to stock options	$ 0		$ 0
Stock option activity, Number of Shares
Outstanding options at the beginning of the period (in shares)			462,900
Options exercised (in shares)			(8,200)
Outstanding options at the end of the period (in shares)	454,700		454,700
Exercisable options at the end of the period (in shares)	454,700		454,700
Stock option activity, Weighted Average Exercise Price
Outstanding options at the beginning of the period (in dollars per share)			$ 3.52
Options exercised (in dollars per share)			4.15
Outstanding options at the end of the period (in dollars per share)	$ 3.51		3.51
Exercisable options at the end of the period (in dollars per share)	$ 3.51		$ 3.51
Weighted Average Remaining Contract Life
Outstanding options at the end of the period			4 years 15 days
Exercisable options at the end of the period			4 years 15 days
DSU | Board of Directors
Other
Awards of fully vested shares	5,199	5,125	10,218	5,574
Number of shares awarded in payment and settlement of each vested Deferred Stock Unit.	1		1

Income Taxes (Details)

Income Taxes (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Income Taxes
Effective tax rate (as a percent)	43.20%	40.30%	43.30%	40.10%
Decrease in earnings before income taxes	$ 4,800,000		$ 5,300,000
Recognized benefit (expense) due to discrete item adjustments	$ (17,000)		$ (17,000)	$ 14,000
Expected annual effective tax rate (as a percent)	41.80%		41.80%
Income tax expense	$ 503,000	$ 2,404,000	$ 494,000	$ 2,585,000
Amount of unrecognized tax benefits which would affect our effective tax rate if recognized	236,000		236,000		$ 236,000
Accrued interest and penalties related to uncertain tax positions	$ 0		$ 0		$ 0

Acquisitions_ (Details)

Acquisitions: (Details) - Range [Domain]	Oct. 18, 2014USD ($)itemshares	Oct. 18, 2014USD ($)itemshares	Jun. 30, 2015USD ($)shares	Jun. 30, 2015USD ($)shares	Dec. 31, 2014USD ($)shares
Acquisitions
Total integration and transaction costs			$ 70,000	$ 520,000
Net working capital receivable from acquisition					$ 741,000
Shares issued | shares			23,418,334	23,418,334	22,876,753
Assets acquired at their fair value:
Goodwill			$ 48,016,000	$ 48,016,000	$ 48,016,000
Bear Data
Acquisitions
Total integration and transaction costs			$ 70,000	$ 520,000
Purchase price	$ 13,400,000
Cash payment, net of cash acquired	12,700,000
Net working capital receivable from acquisition	741,000	$ 741,000
Portion of consideration transferred and deposited in an escrow account to fund post-closing adjustments to the purchase price and other indemnification obligations	2,400,000
Assets acquired at their fair value:
Finite-lived intangibles	9,500,000	9,500,000
Goodwill	$ 10,200,000	10,200,000
Liabilities assumed at their fair value:
Net tangible liabilities		$ 6,300,000
Bear Data | Common Stock Purchase Agreement
Acquisitions
Shares issued | shares	156,360	156,360
Value of shares issued	$ 1,700,000	$ 1,700,000
Illiquidity adjustments	192,000
Purchase price, value of shares of common stock issued	1,500,000	1,500,000
Acquisitions, separately recognized transaction
Purchase price, value of shares of common stock issued	$ 1,500,000	$ 1,500,000
Number of executive security holders | item	3	3
Consecutive trading days used in calculating weighted average price per share	20 days
Number of trading days prior to closing	1 day
Percent of shares transferable after the first anniversary of closing	75.00%
Reconciliation of the net purchase price as compared to the cash payment for purchase
Plus value of shares issued	$ 1,500,000	$ 1,500,000
Bear Data | Covenant not to compete
Liabilities assumed at their fair value:
Fair value of finite lived intangible assets	$ 370,000
Finite lived intangible assets, estimated lives	3 years
Bear Data | Trademarks
Liabilities assumed at their fair value:
Fair value of finite lived intangible assets	$ 890,000
Finite lived intangible assets, estimated lives	3 years
Bear Data | Customer relationships
Liabilities assumed at their fair value:
Fair value of finite lived intangible assets	$ 7,810,000
Finite lived intangible assets, estimated lives	6 years
Bear Data | Order backlog
Liabilities assumed at their fair value:
Fair value of finite lived intangible assets	$ 452,200
Finite lived intangible assets, estimated lives	3 months

Acquisitions_ (Details 2)

Acquisitions: (Details 2) - USD ($)	Oct. 04, 2012	Oct. 04, 2012	Jan. 31, 2014	Jun. 30, 2015	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2013	Dec. 31, 2014
Assets acquired at their fair value:
Goodwill				$ 48,016,000	$ 48,016,000			$ 48,016,000
Reconciliation of the net purchase price as compared to the cash payment for purchase
Total integration and transaction costs				$ 70,000	520,000
Charge for write-down of account receivable due from the Sellers						$ 876,000
StraTech
Acquisitions
Purchase price		$ 11,900,000
Purchase price, cash payment		$ 13,200,000
Purchase price, shares of common stock issued		269,783
Purchase price, value of shares of common stock issued	$ 2,000,000	$ 2,000,000
Shares of common stock deposited in escrow account		242,805
Initial amount of receivable due from Sellers	4,200,000	$ 4,200,000
Receivable due from sellers	3,300,000	3,300,000
Decrease in receivable due from sellers					936,000
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
Assets acquired at their fair value:
Finite-lived intangibles	15,900,000	15,900,000
Goodwill deductible for tax purposes	5,300,000	$ 5,300,000
Period over which goodwill is deductible for tax purposes		15 years
Net tangible liabilities	9,300,000
Reconciliation of the net purchase price as compared to the cash payment for purchase
Payment in cash for purchase		$ 13,200,000
Less receivable due from seller	(3,300,000)	(3,300,000)
Plus value of shares issued	$ 2,000,000	$ 2,000,000
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
StraTech | Customer relationships
Assets acquired at their fair value:
Finite lived intangible assets, estimated lives		5 years
StraTech | Maximum
Acquisitions
Measurement period		1 year

Goodwill and Finite-Lived Int28

Goodwill and Finite-Lived Intangible Assets (Details) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2015USD ($)	Jun. 30, 2014USD ($)	Jun. 30, 2015USD ($)item	Jun. 30, 2014USD ($)	Dec. 31, 2014USD ($)item
Goodwill and Finite-Lived Intangible Assets
Number of operating units | item			1
Number of reporting units | item			1
Goodwill	$ 48,016		$ 48,016		$ 48,016
Impairment of goodwill					$ 0
Number of triggering events that occurred | item			0		0
Identified intangible assets
Gross Assets	42,092		$ 42,092		$ 42,092
Accumulated Amortization	(29,395)		(29,395)		(25,489)
Net Assets	12,697		12,697		16,603
Amortization of intangibles	1,833	$ 1,359	3,906	$ 2,775
Future amortization expenses for the next five years
Remainder of 2015	3,441		3,441
2,016	5,157		5,157
2,017	2,649		2,649
2,018	900		900
2,019	550		550
Net Assets	12,697		12,697		16,603
Customer relationships
Identified intangible assets
Gross Assets	36,943		36,943		36,943
Accumulated Amortization	(25,208)		(25,208)		(21,776)
Net Assets	11,735		11,735		15,167
Amortization of intangibles	1,691	1,320	3,432	2,696
Future amortization expenses for the next five years
Net Assets	11,735		$ 11,735		15,167
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		67
Accumulated Amortization	(67)		$ (67)		(67)
Certification
Identified intangible assets
Amortizable Period			2 years
Gross Assets	467		$ 467		467
Accumulated Amortization	(467)		$ (467)		(467)
Covenant not to compete
Identified intangible assets
Amortizable Period			3 years
Gross Assets	848		$ 848		848
Accumulated Amortization	(566)		(566)		(504)
Net Assets	282		282		344
Amortization of intangibles	30	$ 39	62	$ 79
Future amortization expenses for the next five years
Net Assets	282		$ 282		344
Trademarks
Identified intangible assets
Amortizable Period			3 years
Gross Assets	1,153		$ 1,153		1,153
Accumulated Amortization	(473)		(473)		(325)
Net Assets	680		680		828
Amortization of intangibles	74		148
Future amortization expenses for the next five years
Net Assets	680		680		828
Order backlog
Identified intangible assets
Gross Assets	2,614		2,614		2,614
Accumulated Amortization	(2,614)		(2,614)		(2,350)
Net Assets					264
Amortization of intangibles	$ 38		$ 264
Future amortization expenses for the next five years
Net Assets					$ 264
Order backlog | Minimum
Identified intangible assets
Amortizable Period			3 months
Order backlog | Maximum
Identified intangible assets
Amortizable Period			1 year

Short-Term Investments_ (Detail

Short-Term Investments: (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Short-term investments.
Amortized Cost	$ 17,484	$ 22,993
Gross Unrealized Gains		6
Gross Unrealized Losses	9	5
Fair Value	17,475	22,994
Short-term investments	$ 17,475	22,994
Maturity period	1 year
Minimum
Short-term investments.
Interest rate on investment (as a percent)	20.00%
Maximum
Short-term investments.
Interest rate on investment (as a percent)	60.00%
Commercial paper
Short-term investments.
Amortized Cost	$ 17,484	19,988
Gross Unrealized Gains		6
Gross Unrealized Losses	9
Fair Value	17,475	19,994
Short-term investments	$ 17,500
Certificates of Deposit
Short-term investments.
Amortized Cost		3,005
Gross Unrealized Losses		5
Fair Value		$ 3,000

Fair Value Measurements (Detail

Fair Value Measurements (Details) - Fair value on a recurring basis - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Fair Value Measurements
Non-financial assets	$ 0
Non-financial liabilities	0
Fair value
Fair Value Measurements
Total assets measured at fair value	60,875	$ 50,719
Fair value | Cash and cash equivalents
Fair Value Measurements
Total assets measured at fair value	43,400	27,725
Fair value | Short-term investments
Fair Value Measurements
Total assets measured at fair value	17,475	22,994
Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value Measurements
Total assets measured at fair value	43,400	30,725
Quoted Prices in Active Markets for Identical Assets (Level 1) | Cash and cash equivalents
Fair Value Measurements
Total assets measured at fair value	43,400	27,725
Quoted Prices in Active Markets for Identical Assets (Level 1) | Short-term investments
Fair Value Measurements
Total assets measured at fair value		3,000
Significant Other Observable Inputs (Level 2)
Fair Value Measurements
Total assets measured at fair value	17,475	19,994
Significant Other Observable Inputs (Level 2) | Short-term investments
Fair Value Measurements
Total assets measured at fair value	$ 17,475	$ 19,994

Sales-Type Lease Receivables 31

Sales-Type Lease Receivables and Sales-Leaseback Arrangements (Details) - USD ($)	3 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Net investment in sales-type lease receivables	$ 5,500,000	$ 6,100,000
Unearned income	318,000	435,000
Lease receivables past due	0
Scheduled maturities of minimum lease payments receivable
Remainder of 2015	2,114,000
2,016	1,943,000
2,017	1,127,000
2,018	513,000
2,019	81,000
Future minimum payments receivable	5,778,000
Less: Current portion	(2,343,000)	(2,482,000)
Long-term lease receivable	3,435,000	4,016,000
Contractual cash obligations of future minimum lease payments by period
Remainder of 2015	1,113,000
2,016	1,889,000
2,017	1,017,000
2,018	492,000
2,019	98,000
Future minimum payments payable	4,609,000
Less: Current portion	(1,993,000)	(2,319,000)
Long-term leases payable	2,616,000	$ 3,278,000
Interest included in contractual cash obligations	$ 306,000
Minimum
Term of lease receivables	24 months
Maximum
Term of lease receivables	36 months

Line of Credit_ (Details)

Line of Credit: (Details) - USD ($) $ in Millions	May. 21, 2015	Jul. 17, 2013	Dec. 31, 2014	Jun. 30, 2015
Combined facility
Line of Credit
Number of trailing months for calculating free cash flow			12 months
Combined facility | Minimum
Line of Credit
Tangible net worth		$ 30
Free cash flow	$ 5
Combined facility | CPC
Line of Credit
Maximum borrowing amount	$ 75	$ 40		$ 75
Unused 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)				0.19%
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			$ 27.7	$ 24.3