Datalink (DTLK) 10-Q 10 May 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	May. 03, 2016
Document and Entity Information
Entity Registrant Name	DATALINK CORP
Entity Central Index Key	1,056,923
Document Type	10-Q
Document Period End Date	Mar. 31, 2016
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		22,579,088
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Current assets
Cash and cash equivalents	$ 30,128	$ 39,397
Short-term investments.	35,974	20,579
Accounts receivable, net	111,960	163,900
Lease receivable	3,885	3,895
Inventories, net	9,399	7,997
Current deferred customer support contract costs	123,280	124,705
Inventories shipped but not installed	16,498	16,616
Income tax receivable	691
Other current assets	3,176	3,251
Total current assets	334,991	380,340
Property and equipment, net	8,324	7,963
Goodwill	47,101	47,101
Finite-lived intangibles, net	7,851	9,256
Deferred customer support contract costs, non-current	58,533	60,240
Deferred taxes	9,177	9,177
Long-term lease receivable	6,513	7,017
Other assets	666	703
Total assets	473,156	521,797
Current liabilities
Floor plan line of credit	25,159	24,340
Accounts payable	42,312	73,959
Lease payable	3,882	3,643
Accrued commissions	1,729	3,687
Accrued sales and use taxes	2,204	3,782
Accrued expenses, other	5,961	6,998
Accrued income tax payable		4,492
Customer deposits	4,122	4,398
Current deferred revenue from customer support contracts	149,766	151,619
Other current liabilities	451	1,050
Total current liabilities	235,586	277,968
Deferred revenue from customer support contracts, non-current	70,123	72,262
Long-term lease payable	5,105	5,857
Other liabilities, non-current	1,739	942
Total liabilities	312,553	357,029
Stockholders' equity
Common stock, $.001 par value, 50,000,000 shares authorized, 22,577,888 and 22,627,322 shares issued and outstanding as of March 31, 2016 and December 31, 2015, respectively	22	23
Additional paid-in capital	114,890	114,431
Retained earnings	45,691	50,314
Total stockholders' equity	160,603	164,768
Total liabilities and stockholders' equity	$ 473,156	$ 521,797

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2016	Dec. 31, 2015
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	22,577,888	22,627,322
Common stock, shares outstanding	22,577,888	22,627,322

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Net sales:
Products	$ 90,675	$ 106,736
Services	73,957	68,616
Total net sales	164,632	175,352
Cost of sales:
Cost of products	73,099	85,782
Cost of services	60,061	54,402
Total cost of sales	133,160	140,184
Gross profit	31,472	35,168
Operating expenses:
Sales and marketing	15,635	17,422
General and administrative	6,870	6,989
Engineering	8,032	8,242
Integration and transaction costs		450
Amortization of intangibles	1,405	2,073
Total operating expenses	31,942	35,176
Loss from operations	(470)	(8)
Other income (expense):
Interest income	165	71
Interest expense	(73)	(67)
Other, net	(50)	(19)
Loss before income taxes	(428)	(23)
Income tax expense (benefit)	5	(9)
Net loss	$ (433)	$ (14)
Loss per common share:
Basic (in dollars per share)	$ (0.02)	$ 0
Diluted (in dollars per share)	$ (0.02)	$ 0
Weighted average common shares outstanding:
Basic (in shares)	21,138	21,949
Diluted (in shares)	21,138	21,949

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash flows from operating activities:
Net loss	$ (433)	$ (14)
Adjustments to reconcile net loss to net cash provided by operating activities:
Change in fair value of trading securities	37
Benefit for bad debts	(49)	(94)
Depreciation	756	843
Amortization of finite-lived intangibles	1,405	2,073
Stock-based compensation expense	1,043	1,442
Changes in operating assets and liabilities:
Accounts receivable, net and leases receivable	52,503	30,298
Inventories	(1,284)	8,687
Deferred costs/revenues/customer deposits, net	(1,136)	2,299
Accounts payable and leases payable	(32,160)	(41,917)
Accrued expenses	(4,573)	(3,316)
Income tax receivable	(691)	(284)
Income tax payable	(4,492)
Other	309	1,649
Net cash provided by operating activities	11,235	1,666
Cash flows from investing activities:
Purchases, sales and maturities of trading securities, net	(15,432)	22,994
Purchase of property and equipment	(1,117)	(1,216)
Net cash (used in) provided by investing activities	(16,549)	21,778
Cash flows from financing activities:
Net payments under floor plan line of credit	819	1,991
Repurchase of common stock	(4,191)
Excess tax (benefit) from stock compensation	(277)	179
Tax withholdings related to stock-based awards	(306)	(639)
Net cash (used in) provided by financing activities	(3,955)	1,531
Increase (decrease) in cash and cash equivalents	(9,269)	24,975
Cash and cash equivalents, beginning of period	39,397	27,725
Cash and cash equivalents, end of period	30,128	52,700
Supplementary cash flow information:
Cash paid for income taxes	5,463	97
Cash received for income tax refunds		2
Cash paid for interest expense	$ 73	$ 21

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2016
Basis of Presentation
Basis of Presentation	1. Basis of Presentation We have prepared the interim consolidated 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 consolidated financial statements in conjunction with the consolidated financial statements and related notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2015. The consolidated financial statements presented herein as of March 31, 2016, and for the three months ended March 31, 2016 and 2015, 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 as of the date of the consolidated 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 consolidated financial statements in conjunction with the audited consolidated financial statements and the related notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2015. Actual results could differ materially from these estimates and assumptions. Recently Issued Accounting Standards In March 2016, the FASB issued Accounting Standards Update 2016-09, Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”), which amends ASC Topic 718, Compensation — Stock Compensation. ASU 2016-09 includes provisions intended to simplify various aspects related to how share-based payments are accounted for and presented in the financial statements. ASU 2016-09 is effective for public entities for annual reporting periods beginning after December 15, 2016, and interim periods within that reporting period. Early adoption is permitted in any interim or annual period, with any adjustments reflected as of the beginning of the fiscal year of adoption. We are in the process of determining our implementation approach for this standard and assessing the impact it may have on our consolidated financial statements. In February 2016, the FASB issued Accounting Standards Update 2016-02, Leases (Topic 842) (“ASU 2016-02”), which is the final standard on the accounting for leases. ASU 2016-02 was issued in three parts: (a) Section A , “Leases: Amendments to the FASB Accounting Standards Codification ,” Section B , “Conforming Amendments Related to Leases: Amendments to the FASB Accounting Standards Codification , ” and Section C , “Background Information and Basis for Conclusions.” While both lessees and lessors are affected by the new guidance, the effects on lessees are much more significant. The most significant change for lessees is the requirement under the new guidance to recognize right-of-use assets and lease liabilities for all leases not considered short-term leases. By definition, a short-term lease is one in which: (a) the lease term is 12 months or less and (b) there is not an option to purchase the underlying asset that the lessee is reasonably certain to exercise. For short-term leases, lessees may elect an accounting policy by class of underlying asset under which right-of-use assets and lease liabilities are not recognized and lease payments are generally recognized as expense over the lease term on a straight-line basis. This change will result in lessees recognizing right-of-use assets and lease liabilities for most leases currently accounted for as operating leases under the legacy lease accounting guidance. For many entities, this could significantly affect the financial ratios they use for external reporting and other purposes, such as debt covenant compliance. ASU 2016-02 is not effective until 2019 for calendar year public business entities and 2020 for all other calendar year entities. We are in the process of determining our implementation approach for this standard and assessing the impact it may have on our consolidated financial statements. In January 2016, the FASB issued Accounting Standards Update 2016-01, Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”), which is the final standard on the recognition and measurement of financial instruments. ASU 2016-01 applies to all entities that hold financial assets or owe financial liabilities and represents the finalization of just one component of the FASB’s broader financial instruments project. The most far-reaching ramification of ASU 2016-01 is the elimination of the available-for-sale classification for equity securities and a new requirement to carry those equity securities with readily determinable fair values at fair value through net income. Other notable changes brought about by ASU 2016-01 involve: (a) applying a practicability exception from fair value accounting to equity securities that do not have a readily determinable fair value, (b) assessing the need for a valuation allowa nce for a deferred tax asset related to an available-for-sale debt security, (c) applying the fair value option to liabilities and the treatment of changes in fair value attributable to instrument-specific credit risk and (d) adding disclosures and eliminating certain disclosures. ASU 2016-01 is not effective until 2018 for calendar year public business entities, certain provisions can be early adopted by public business entities in financial statements that have not been issued, and by other entities, in financial statements that have not been made available for issuance. We are in the process of determining our implementation approach for this standard and assessing the impact it may have on our consolidated financial statements. In September 2015, the FASB issued Accounting Standards Update 2015-16, Accounting for Measurement Period Adjustments in a Business Combination (“ASU 2015-16”), which requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. ASU 2015-16 will be effective for annual and interim reporting periods beginning after December 15, 2015, although early adoption is permitted. The adoption of this standard did not have a material impact on our consolidated financial statements. In July 2015, the FASB issued Accounting Standards Update 2015-11, Simplifying the Measurement of Inventory (“ASU 2015-11”), which simplifies the subsequent measurement of inventory by replacing the lower of cost or market test with a lower of cost or net realizable value (NRV) test. NRV is calculated as the estimated selling price less reasonably predictable costs of completion, disposal and transportation. ASU 2015-11 is effective for fiscal years and for interim periods within those fiscal years beginning after December 15, 2016, and prospective adoption is required. We do not anticipate the adoption of this standard will have a material impact on our consolidated financial statements. In July 2015, the 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 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. ASU 2014-09 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 ASU 2014-09 will now be effective for interim and annual periods beginning after December 15, 2017. We are in the process of determining our implementation approach for this standard and assessing the impact it may have on our consolidated financial statements. In June 2015, the FASB issued Accounting Standards Update 2015-10, “Technical Corrections and Improvements” (“ASU 2015-10”), which makes minor amendments to the FASB Accounting Standards Codification. The technical corrections are divided into four main categories: amendments to align codification wording with that in the pre-codification standards; corrections to references and clarification of guidance to avoid misapplication and misinterpretation; minor edits to simplify the codification and thereby improve its usefulness; and minor enhancements to codification guidance that are not expected to have a significant effect on current practice. The provisions of ASU 2015-10 are effective for fiscal years beginning after December 15, 2015. The adoption of ASU 2015-10 did not have a material impact on our consolidated financial statements. In April 2015, the FASB issued Accounting Standards Update 2015-05, Customer’s Accounting for Fees in a Cloud Computing Arrangement (“ASU 2015-05”), related to cloud computing arrangements. ASU 2015-05 sets forth guidance on accounting for fees paid in a cloud computing arrangement and specifically outlines how to determine whether a cloud computing arrangement contains a software license or is solely a service contract. ASU 2015-05 was effective for annual and interim reporting periods beginning after December 15, 2015 and permitted early adoption. The adoption of this standard did not have a material impact on our 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 was effective for annual periods beginning after December 15, 2015. An entity had the option to adopt the changes earlier provided that the guidance was applied from the beginning of the fiscal year of adoption. The adoption of this standard did not have a material impact on our consolidated financial statements.

Net Loss per Share

Net Loss per Share	3 Months Ended
	Mar. 31, 2016
Net Loss per Share
Net Loss per Share	2. Net Loss per Share We compute basic net loss per share using the weighted average number of shares outstanding. Diluted net loss per share includes 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 loss per share: Three Months Ended March 31, 2016 2015 (in thousands, except per share data) Net loss $ ) $ ) Basic: Weighted average common shares outstanding Net loss per share — basic $ ) $ ) Diluted: Shares used in the computation of diluted net loss per share Net loss per share - diluted $ ) $ ) We exclude the following restricted stock grants that have not vested from weighted average common shares outstanding used in the computation of basic net loss per share: Three Months Ended March 31, 2016 2015 Restricted common stock that has not vested

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2016
Stockholders' Equity
Stockholders' Equity	3. Stockholders’ Equity Repurchase of stock: On September 14, 2015, our board of directors approved a new stock repurchase program authorizing the repurchase of shares of our common stock in the open market or in privately negotiated purchases, or both, at an aggregate purchase price of up to $10 million. The timing and amount of any share repurchases will be determined by our management based on market conditions and other factors. The repurchase programs are conducted pursuant to Rule 10b-18 of the Securities Exchange Act of 1934. The share repurchase program is expected to be completed by December 31, 2016. Under this program, we may from time to time purchase our outstanding common stock in the open market at management’s discretion, subject to share price, market conditions and other factors. The common stock repurchase program does not obligate us to repurchase any dollar amount or number of shares. During the three months ended March 31, 2016, we repurchased 600,000 shares of our common stock at a total purchase price of $4.2 million under this program. As of March 31, 2016, we were authorized to repurchase additional shares of our common stock at a total purchase price of upto $992,000 under the stock repurchase program. Restricted Stock: Total stock-based compensation expense related to restricted stock was $907,000 and $1.3 million for the three months ended March 31, 2016 and 2015, respectively. Unrecognized stock-based compensation expense related to restricted stock was $5.2 million at March 31, 2016, which we will amortize ratably through February 2021. The following table summarizes our restricted stock activity for the three months ended March 31, 2016: Number of Shares Weighted Average Grant-Date Fair Value Restricted stock that had not vested at January 1, 2016 $ Granted $ Cancelled ) $ Shares vested ) $ Restricted stock that had not vested at March 31, 2016 $ Stock Options: Total stock-based compensation expense related to stock options was $48,000 and $0 for the three months ended March 31, 2016 and 2015, respectively. Unrecognized stock-based compensation expense related to restricted stock was $1.4 million at March 31, 2016, which we will amortize ratably through February 2020. The following table represents stock option activity for the three months ended March 31, 2016: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contract Life in Years Aggregate Intrinsic Value Outstanding options as of January 1, 2016 $ $ Options granted $ $ Outstanding options as of March 31, 2016 $ $ Exercisable options as of March 31, 2016 $ $ On February 26, 2016 we granted 414,020 stock options to certain executives. Vesting of these options is based solely on the recipient’s continued service as follows: 50% of the shares or units vest upon the second grant anniversary date, 25% of the shares or units vest upon the third grant anniversary date, and 25% of the shares or units vest upon the fourth grant anniversary date, provided that the individual remains employed by us through such dates. We use the Black-Scholes option pricing model to estimate the fair value of stock options. The weighted-average fair value per option on the date of grant was $3.51. The fair value of stock options was estimated at the grant date using the following weighted average assumptions: 2016 Risk-free interest rate 1.4% Expected dividend yield 0 Expected volatility factor 54.1% Expected option holding period 6 years Other: Effective January 1, 2014 and pursuant to Deferred Stock Unit (“DSU”) Master Agreements, each member of our 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 our 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 vested and became non-forfeitable on each of June 30, 2014, September 30, 2014, December 31, 2014 and March 31, 2015, provided the board member remained in service with us. We will issue one share in payment and settlement of each vested DSU subject to the corresponding Master DSU Agreement following a termination of that board member’s service with Datalink. During the three months ended March 31, 2016 and 2015, we recognized expense of $89,000 and $133,000, respectively, related to awards of 9,684 shares and 11,019 shares, respectively, of fully vested common stock to members of our board of directors. Of the 9,684 shares of fully vested stock awarded to members of our board of directors during the three months ended March 31, 2016, 3,684 shares were DSUs. Of the 11,019 shares of fully vested stock awarded to members of our board of directors during the three months ended March 31, 2015, 5,019 shares were DSUs.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2016
Income Taxes
Income Taxes:	4. Income Taxes We base the provision for income taxes upon the estimated annual effective tax rates in the tax jurisdictions in which we operate. For the three months ended March 31, 2016 and 2015, the effective tax rate was 41.3% and 40.3%, respectively. The increase in the effective tax rate for the three months ended March 31, 2016 as compared to the same period in 2015 was primarily due to the larger impact of permanent items on decreased projected pretax book income. We recognized expense from discrete item adjustments of approximately $181,000 and $0 during the three months ended March 31, 2016 and 2015, respectively, which adjusted our effective tax rate to (1.1%) and 40.3% respectively. The discrete item adjustment of $181,000 was related to permanent differences and interest from the IRS audit for 2012 and 2013. We expect our annual effective tax rate for 2016 to be approximately 41.3%, without discrete items. As part of the process of preparing financial statements, we estimate federal and state income taxes. Management estimates the actual current tax and assesses temporary differences resulting from different treatments for tax and accounting purposes. These differences result in deferred tax assets and liabilities, which we include within our consolidated balance sheets. Management must then assess the likelihood that we will realize deferred tax assets, and has concluded that all deferred tax assets, with the exception of capital loss carryovers, are expected to be realized. For the three months ended March 31, 2016, we recorded income tax expense of $5,000 with an effective tax rate of (1.1%). Included in the gross balance of unrecognized tax benefits at March 31, 2016 and December 31, 2015 are potential benefits of $390,000 and $209,000, respectively, that, if recognized, would impact the effective tax rate. We anticipate the settlement of unrecognized tax benefits in the approximate amount of $181,000 in the next 12 months. We classify income tax-related interest and penalties arising as a component of income tax expense. For the three months ended March 31, 2016 and 2015, we had $150,000 and $0, respectively, of accrued interest or penalties which are included in the gross balance above. We file income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. As of March 31, 2016, we were no longer subject to federal income tax examinations for taxable years before 2012. 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. 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.

Goodwill and Valuation of Long-

Goodwill and Valuation of Long-Lived Assets	3 Months Ended
	Mar. 31, 2016
Goodwill and Valuation of Long-Lived Assets
Goodwill and Valuation of Long-Lived Assets	5. 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 any 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 consolidated balance sheets and the judgment required in determining fair value amounts. Goodwill was $47.1 million as of each of March 31, 2016 and December 31, 2015. We conduct our annual goodwill impairment test as of December 31, 2015, 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, 2016 and 2015, 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, 2016 As of December 31, 2015 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 recorded in operating expenses within our consolidated statements of operation and is summarized below (in thousands): Three Months Ended March 31, 2016 2015 Customer relationships $ $ Covenant not to compete Trademarks Order backlog — Total identified intangible assets $ $ Based on the identified intangible assets recorded at March 31, 2016, scheduled future amortization expense for the next four years is as follows: (in thousands) Remainder of 2016 $ 2017 2018 2019 $

Short-Term Investments

Short-Term Investments	3 Months Ended
	Mar. 31, 2016
Short-Term Investments.
Short-Term Investments.	6. Short-Term Investments Our short-term investments consist 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 of 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, 2016 At December 31, 2015 (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Commercial paper $ $ $ $ $ $ $ $ Corporate bonds — — Total $ $ $ $ $ $ $ $ Our $36.0 million of short-term investments at March 31, 2016 is comprised of commercial paper and corporate bonds with maturities within one year and interest rates ranging from 0.4% to 1.5%.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2016
Fair Value Measurements
Fair Value Measurements	7. 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 we would transact business 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 had no nonfinancial assets or liabilities that require measurement at fair value on a recurring basis as of March 31, 2016 and December 31, 2015. 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, 2016 and December 31, 2015 according to the valuation techniques we use 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 March 31, 2016: Cash and cash equivalents $ $ $ — $ — Short-term investments — — Total assets measured at fair value $ $ $ $ — At December 31, 2015: 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	3 Months Ended
	Mar. 31, 2016
Sales-Type Lease Receivables and Sales-Leaseback Arrangements
Sales-Type Lease Receivables and Sales-Leaseback Arrangements:	8. Sales-Type Lease Receivables and Sales-Leaseback Arrangements We occasionally enter into sales-type lease agreements with our clients 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 consolidated balance sheets 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 our consolidated 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 $10.0 million and $10.4 million at March 31, 2016 and December 31, 2015, respectively, is reflected net of unearned income of $423,000 and $492,000 at March 31, 2016 and December 31, 2015, respectively. As of March 31, 2016, scheduled maturities of minimum lease payments receivable were as follows for the fiscal years ended December 31: (in thousands) Remainder of 2016 $ 2017 2018 2019 2020 Less: Current portion ) Long-term sales-type lease receivable $ 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, 2016, there were no material amounts past due related to lease receivables. Our 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, we occasionally finance the equipment associated with our 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 March 31, 2016, our scheduled contractual cash obligations for future minimum lease payments were as follows for the fiscal years ended December 31: (in thousands) Remainder of 2016 $ 2017 2018 2019 2020 Less: Current portion ) Long-term sales-type lease payable $ Of the $9.0 million of contractual cash obligations for future minimum lease payments at March 31, 2016, $416,000 represented interest.

Line of Credit

Line of Credit	3 Months Ended
	Mar. 31, 2016
Line of Credit
Line of Credit:	9. Line of Credit On July 17, 2013, we 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, we 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 0.44% at March 31, 2016). 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, we were 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 our personal property. The Amended Agreement terminates on January 9, 2018 and we 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 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. The Amended Agreement contains certain covenants regarding our 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. As of December 31, 2015, we were in compliance with the aforementioned financial covenants as set forth in the Amended Agreement. However, subsequent to March 31, 2016, we notified CPC that we did not have free cash flow of at least $5 million at the end of the fiscal quarter ended March 31, 2016, and we requested a waiver of the relevant provision of the Amended Agreement. On April 22, 2016, we entered into the Third Amendment to Credit Agreement, which modifies the minimum quarterly free cash flow requirement such that we must have free cash flow of at least $1.00 at the end of each fiscal quarter for the trailing twelve-month period then ended, commencing December 31, 2015 and continuing at the end of each fiscal quarter thereafter. Of the $75 million maximum borrowing amount available at March 31, 2016 under the Combined Facility, we have outstanding advances of $25.2 million and $24.3 million on the Floor Plan Line of Credit at March 31, 2016 and December 31, 2015, respectively, related to the purchase of inventory from certain vendors.

Basis of Presentation (Policies

Basis of Presentation (Policies)	3 Months Ended
	Mar. 31, 2016
Basis of Presentation
Recently Issued Accounting Standards	Recently Issued Accounting Standards In March 2016, the FASB issued Accounting Standards Update 2016-09, Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”), which amends ASC Topic 718, Compensation — Stock Compensation. ASU 2016-09 includes provisions intended to simplify various aspects related to how share-based payments are accounted for and presented in the financial statements. ASU 2016-09 is effective for public entities for annual reporting periods beginning after December 15, 2016, and interim periods within that reporting period. Early adoption is permitted in any interim or annual period, with any adjustments reflected as of the beginning of the fiscal year of adoption. We are in the process of determining our implementation approach for this standard and assessing the impact it may have on our consolidated financial statements. In February 2016, the FASB issued Accounting Standards Update 2016-02, Leases (Topic 842) (“ASU 2016-02”), which is the final standard on the accounting for leases. ASU 2016-02 was issued in three parts: (a) Section A , “Leases: Amendments to the FASB Accounting Standards Codification ,” Section B , “Conforming Amendments Related to Leases: Amendments to the FASB Accounting Standards Codification , ” and Section C , “Background Information and Basis for Conclusions.” While both lessees and lessors are affected by the new guidance, the effects on lessees are much more significant. The most significant change for lessees is the requirement under the new guidance to recognize right-of-use assets and lease liabilities for all leases not considered short-term leases. By definition, a short-term lease is one in which: (a) the lease term is 12 months or less and (b) there is not an option to purchase the underlying asset that the lessee is reasonably certain to exercise. For short-term leases, lessees may elect an accounting policy by class of underlying asset under which right-of-use assets and lease liabilities are not recognized and lease payments are generally recognized as expense over the lease term on a straight-line basis. This change will result in lessees recognizing right-of-use assets and lease liabilities for most leases currently accounted for as operating leases under the legacy lease accounting guidance. For many entities, this could significantly affect the financial ratios they use for external reporting and other purposes, such as debt covenant compliance. ASU 2016-02 is not effective until 2019 for calendar year public business entities and 2020 for all other calendar year entities. We are in the process of determining our implementation approach for this standard and assessing the impact it may have on our consolidated financial statements. In January 2016, the FASB issued Accounting Standards Update 2016-01, Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”), which is the final standard on the recognition and measurement of financial instruments. ASU 2016-01 applies to all entities that hold financial assets or owe financial liabilities and represents the finalization of just one component of the FASB’s broader financial instruments project. The most far-reaching ramification of ASU 2016-01 is the elimination of the available-for-sale classification for equity securities and a new requirement to carry those equity securities with readily determinable fair values at fair value through net income. Other notable changes brought about by ASU 2016-01 involve: (a) applying a practicability exception from fair value accounting to equity securities that do not have a readily determinable fair value, (b) assessing the need for a valuation allowa nce for a deferred tax asset related to an available-for-sale debt security, (c) applying the fair value option to liabilities and the treatment of changes in fair value attributable to instrument-specific credit risk and (d) adding disclosures and eliminating certain disclosures. ASU 2016-01 is not effective until 2018 for calendar year public business entities, certain provisions can be early adopted by public business entities in financial statements that have not been issued, and by other entities, in financial statements that have not been made available for issuance. We are in the process of determining our implementation approach for this standard and assessing the impact it may have on our consolidated financial statements. In September 2015, the FASB issued Accounting Standards Update 2015-16, Accounting for Measurement Period Adjustments in a Business Combination (“ASU 2015-16”), which requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. ASU 2015-16 will be effective for annual and interim reporting periods beginning after December 15, 2015, although early adoption is permitted. The adoption of this standard did not have a material impact on our consolidated financial statements. In July 2015, the FASB issued Accounting Standards Update 2015-11, Simplifying the Measurement of Inventory (“ASU 2015-11”), which simplifies the subsequent measurement of inventory by replacing the lower of cost or market test with a lower of cost or net realizable value (NRV) test. NRV is calculated as the estimated selling price less reasonably predictable costs of completion, disposal and transportation. ASU 2015-11 is effective for fiscal years and for interim periods within those fiscal years beginning after December 15, 2016, and prospective adoption is required. We do not anticipate the adoption of this standard will have a material impact on our consolidated financial statements. In July 2015, the 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 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. ASU 2014-09 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 ASU 2014-09 will now be effective for interim and annual periods beginning after December 15, 2017. We are in the process of determining our implementation approach for this standard and assessing the impact it may have on our consolidated financial statements. In June 2015, the FASB issued Accounting Standards Update 2015-10, “Technical Corrections and Improvements” (“ASU 2015-10”), which makes minor amendments to the FASB Accounting Standards Codification. The technical corrections are divided into four main categories: amendments to align codification wording with that in the pre-codification standards; corrections to references and clarification of guidance to avoid misapplication and misinterpretation; minor edits to simplify the codification and thereby improve its usefulness; and minor enhancements to codification guidance that are not expected to have a significant effect on current practice. The provisions of ASU 2015-10 are effective for fiscal years beginning after December 15, 2015. The adoption of ASU 2015-10 did not have a material impact on our consolidated financial statements. In April 2015, the FASB issued Accounting Standards Update 2015-05, Customer’s Accounting for Fees in a Cloud Computing Arrangement (“ASU 2015-05”), related to cloud computing arrangements. ASU 2015-05 sets forth guidance on accounting for fees paid in a cloud computing arrangement and specifically outlines how to determine whether a cloud computing arrangement contains a software license or is solely a service contract. ASU 2015-05 was effective for annual and interim reporting periods beginning after December 15, 2015 and permitted early adoption. The adoption of this standard did not have a material impact on our 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 was effective for annual periods beginning after December 15, 2015. An entity had the option to adopt the changes earlier provided that the guidance was applied from the beginning of the fiscal year of adoption. The adoption of this standard did not have a material impact on our consolidated financial statements.

Net Loss per Share (Tables)

Net Loss per Share (Tables)	3 Months Ended
	Mar. 31, 2016
Net Loss per Share
Schedule of computation of basic and diluted net loss per share	Three Months Ended March 31, 2016 2015 (in thousands, except per share data) Net loss $ ) $ ) Basic: Weighted average common shares outstanding Net loss per share — basic $ ) $ ) Diluted: Shares used in the computation of diluted net loss per share Net loss per share - diluted $ ) $ )
Schedule of restricted stock grants that have not vested and excluded from the computation of basic net loss per share	Three Months Ended March 31, 2016 2015 Restricted common stock that has not vested

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	3 Months Ended
	Mar. 31, 2016
Stockholders' Equity
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, 2016 $ Granted $ Cancelled ) $ Shares vested ) $ Restricted stock that had not vested at March 31, 2016 $
Summary of stock option activity	Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contract Life in Years Aggregate Intrinsic Value Outstanding options as of January 1, 2016 $ $ Options granted $ $ Outstanding options as of March 31, 2016 $ $ Exercisable options as of March 31, 2016 $ $
Schedule of fair value of stock options estimated at grant date using weighted average assumptions	2016 Risk-free interest rate 1.4% Expected dividend yield 0 Expected volatility factor 54.1% Expected option holding period 6 years

Goodwill and Valuation of Lon18

Goodwill and Valuation of Long-Lived Assets (Tables)	3 Months Ended
	Mar. 31, 2016
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, 2016 As of December 31, 2015 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 recorded in operating expenses within our consolidated statements of operation and is summarized below (in thousands): Three Months Ended March 31, 2016 2015 Customer relationships $ $ Covenant not to compete Trademarks Order backlog — Total identified intangible assets $ $
Schedule of future amortization expense for the next five years	Based on the identified intangible assets recorded at March 31, 2016, scheduled future amortization expense for the next four years is as follows: (in thousands) Remainder of 2016 $ 2017 2018 2019 $

Short-Term Investments (Tables)

Short-Term Investments (Tables)	3 Months Ended
	Mar. 31, 2016
Short-Term Investments.
Summary of short-term investments	At March 31, 2016 At December 31, 2015 (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Commercial paper $ $ $ $ $ $ $ $ Corporate bonds — — Total $ $ $ $ $ $ $ $

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2016
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 March 31, 2016: Cash and cash equivalents $ $ $ — $ — Short-term investments — — Total assets measured at fair value $ $ $ $ — At December 31, 2015: Cash and cash equivalents $ $ $ — $ — Short-term investments — — Total assets measured at fair value $ $ $ $ —

Sales-Type Lease Receivables 21

Sales-Type Lease Receivables and Sales-Leaseback Arrangements (Tables)	3 Months Ended
	Mar. 31, 2016
Sales-Type Lease Receivables and Sales-Leaseback Arrangements
Schedule of maturities of minimum lease payments receivable	As of March 31, 2016, scheduled maturities of minimum lease payments receivable were as follows for the fiscal years ended December 31: (in thousands) Remainder of 2016 $ 2017 2018 2019 2020 Less: Current portion ) Long-term sales-type lease receivable $
Schedule of contractual cash obligations of future minimum lease payments	As of March 31, 2016, our scheduled contractual cash obligations for future minimum lease payments were as follows for the fiscal years ended December 31: (in thousands) Remainder of 2016 $ 2017 2018 2019 2020 Less: Current portion ) Long-term sales-type lease payable $

Net Loss per Share (Details)

Net Loss per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Net loss per share
Net loss	$ (433)	$ (14)
Basic:
Weighted average common shares outstanding	21,138,000	21,949,000
Net loss per share - basic (in dollars per share)	$ (0.02)	$ 0
Diluted:
Shares used in the computation of diluted net loss per share	21,138,000	21,949,000
Net loss per share - diluted (in dollars per share)	$ (0.02)	$ 0
Restricted Stock
Diluted:
Restricted common stock that has not vested	972,441	1,455,002

Stockholders' Equity (Details)

Stockholders' Equity (Details) - USD ($)	Feb. 26, 2016	Mar. 31, 2016	Mar. 31, 2015	Sep. 14, 2015
Stock-Based Compensation
Authorized repurchase program amount				$ 10,000,000
Repurchased shares of common stock		600,000
Repurchased shares of common stock purchase price		$ 4,200,000
Additional authorized repurchase amount under stock repurchase program		992,000
Board of directors
Other
Expense for common stock awards		$ 89,000	$ 133,000
Awards of fully vested shares		9,684	11,019
Restricted Stock
Stock-Based Compensation
Stock-based compensation expense		$ 907,000	$ 1,300,000
Unrecognized stock-based compensation expense related to restricted stock		$ 5,200,000
Number of Shares
Restricted stock that had not vested at the beginning of the period (in shares)		985,078
Granted (in shares)		262,620
Cancelled (in shares)		(30,126)
Shares vested (in shares)		(137,956)
Restricted stock that had not vested at the end of the period (in shares)		1,079,616
Weighted Average Grant-Date Fair Value
Non-vested restricted stock at the beginning of the period (in dollars per share)		$ 11.19
Granted (in dollars per share)		6.85
Cancelled (in dollars per share)		11.54
Shares vested (in dollars per share)		11.75
Non-vested restricted stock at the end of the period (in dollars per share)		$ 10.05
Stock Options
Stock-Based Compensation
Stock-based compensation expense		$ 48,000	$ 0
Unrecognized stock-based compensation expense related to stock options		$ 1,400,000
Number of Shares
Outstanding options at the beginning of the period (in shares)		454,700
Options granted (in shares)		414,020
Outstanding options at the end of the period (in shares)		868,720
Exercisable options at the end of the period (in shares)		454,700
Weighted Average Exercise Price
Outstanding options at the beginning of the period (in dollars per share)		$ 3.51
Options granted (in dollars per share)		6.83
Outstanding options at the end of the period (in dollars per share)		5.09
Exercisable options at the end of the period (in dollars per share)		$ 3.51
Weighted Average Remaining Contract Life (in Years)
Outstanding options at the end of the period		6 years 5 months 9 days
Exercisable options at the end of the period		3 years 3 months 11 days
Aggregate Intrinsic Value
Outstanding options at the beginning of the period		$ 1,497,023
Options granted		956,386
Outstanding options at the end of the period		3,517,407
Exercisable options at the end of the period		$ 2,561,021
Weighted-average fair value per option (in dollars per share)		$ 3.51
Fair value of stock options estimated at grant date using weighted average assumptions:
Risk-free interest rate (as a percent)		1.40%
Expected dividend yield (as a percent)		0.00%
Expected volatility factor (as a percent)		54.10%
Expected option holding period (in years)		6 years
Stock Options | Executives
Number of Shares
Options granted (in shares)	414,020
Aggregate Intrinsic Value
Vesting percentage on the second anniversary of the grant date	50.00%
Vesting percentage on the third anniversary of the grant date	25.00%
Vesting percentage on the fourth anniversary of the grant date	25.00%
DSU | Board of directors
Other
Awards of fully vested shares		3,684	5,019
Number of shares awarded in payment and settlement of each vested Deferred Stock Unit.		1

Income Taxes (Details)

Income Taxes (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2017	Dec. 31, 2015
Effective tax rate excluding discrete items (as a percent)	41.30%	40.30%
Effective tax rate (as a percent)	(1.10%)	40.30%
Recognized expense from discrete item adjustments	$ 181,000	$ 0
Expected annual effective tax rate (as a percent)	41.30%
Income tax expense (benefit)	$ 5,000	(9,000)
Amount of unrecognized tax benefits which would affect our effective tax rate if recognized	390,000			$ 209,000
Accrued interest and penalties related to uncertain tax positions	$ 150,000	$ 0
Forecast
Settlement of unrecognized tax benefits			$ 181,000

Goodwill and Valuation of Lon25

Goodwill and Valuation of Long-Lived Assets (Details)	3 Months Ended	12 Months Ended
	Mar. 31, 2016USD ($)item	Dec. 31, 2015USD ($)item
Goodwill and Valuation of Long-Lived Assets
Number of operating units	1
Number of reporting units	1
Goodwill | $	$ 47,101,000	$ 47,101,000
Impairment of goodwill | $		$ 0
Number of triggering events that occurred	0	0

Goodwill and Valuation of Lon26

Goodwill and Valuation of Long-Lived Assets - Identified Intangibles (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Finite-Lived Intangible Assets
Gross Assets	$ 42,092		$ 42,092
Accumulated Amortization	(34,241)		(32,836)
Net Assets	7,851		9,256
Amortization of intangibles	1,405	$ 2,073
Future amortization expenses for the next five years
Remainder of 2016	3,752
2,017	2,649
2,018	900
2,019	550
Net Assets	7,851		9,256
Customer relationships
Finite-Lived Intangible Assets
Gross Assets	36,943		36,943
Accumulated Amortization	(29,739)		(28,440)
Net Assets	7,204		8,503
Amortization of intangibles	1,299	1,742
Future amortization expenses for the next five years
Net Assets	$ 7,204		8,503
Customer relationships | Minimum
Finite-Lived Intangible Assets
Amortizable Period	5 years
Customer relationships | Maximum
Finite-Lived Intangible Assets
Amortizable Period	8 years
Services agreement
Finite-Lived Intangible Assets
Amortizable Period	4 years
Gross Assets	$ 67		67
Accumulated Amortization	$ (67)		(67)
Certification
Finite-Lived Intangible Assets
Amortizable Period	2 years
Gross Assets	$ 467		467
Accumulated Amortization	$ (467)		(467)
Covenant not to compete
Finite-Lived Intangible Assets
Amortizable Period	3 years
Gross Assets	$ 848		848
Accumulated Amortization	(658)		(627)
Net Assets	190		221
Amortization of intangibles	31	31
Future amortization expenses for the next five years
Net Assets	$ 190		221
Trademarks
Finite-Lived Intangible Assets
Amortizable Period	3 years
Gross Assets	$ 1,153		1,153
Accumulated Amortization	(696)		(621)
Net Assets	457		532
Amortization of intangibles	75	74
Future amortization expenses for the next five years
Net Assets	457		532
Order backlog
Finite-Lived Intangible Assets
Gross Assets	2,614		2,614
Accumulated Amortization	$ (2,614)		$ (2,614)
Amortization of intangibles		$ 226
Order backlog | Minimum
Finite-Lived Intangible Assets
Amortizable Period	3 months
Order backlog | Maximum
Finite-Lived Intangible Assets
Amortizable Period	1 year

Short-Term Investments (Details

Short-Term Investments (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Short-term investments.
Amortized Cost	$ 36,114	$ 20,682
Gross Unrealized Gains	7	9
Gross Unrealized Losses	147	112
Fair Value	$ 35,974	20,579
Maturity period (in years)	1 year
Minimum
Short-term investments.
Interest rate on investment (as a percent)	0.40%
Maximum
Short-term investments.
Interest rate on investment (as a percent)	1.50%
Commercial paper
Short-term investments.
Amortized Cost	$ 29,953	11,981
Gross Unrealized Gains	7	9
Gross Unrealized Losses	10	2
Fair Value	29,950	11,988
Corporate bonds
Short-term investments.
Amortized Cost	6,161	8,701
Gross Unrealized Losses	137	110
Fair Value	$ 6,024	$ 8,591

Fair Value Measurements (Detail

Fair Value Measurements (Details) - Fair value on a recurring basis - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Fair Value Measurements
Non-financial assets	$ 0	$ 0
Non-financial liabilities	0	0
Total assets measured at fair value	66,102	59,976
Cash and cash equivalents
Fair Value Measurements
Total assets measured at fair value	30,128	39,397
Short-term investments..
Fair Value Measurements
Total assets measured at fair value	35,974	20,579
Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value Measurements
Total assets measured at fair value	30,128	39,397
Quoted Prices in Active Markets for Identical Assets (Level 1) | Cash and cash equivalents
Fair Value Measurements
Total assets measured at fair value	30,128	39,397
Significant Other Observable Inputs (Level 2)
Fair Value Measurements
Total assets measured at fair value	35,974	20,579
Significant Other Observable Inputs (Level 2) | Short-term investments..
Fair Value Measurements
Total assets measured at fair value	$ 35,974	$ 20,579

Sales-Type Lease Receivables 29

Sales-Type Lease Receivables and Sales-Leaseback Arrangements (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Net investment in sales-type lease receivables	$ 10,000,000	$ 10,400,000
Unearned interest income	423,000	492,000
Lease receivables past due	0
Scheduled maturities of minimum lease payments receivable
Remainder of 2016	3,014,000
2,017	3,486,000
2,018	2,873,000
2,019	803,000
2,020	222,000
Future minimum payments receivable	10,398,000
Less: Current portion	(3,885,000)	(3,895,000)
Long-term lease receivable	6,513,000	7,017,000
Contractual cash obligations of future minimum lease payments by period
Remainder of 2016	2,695,000
2,017	3,323,000
2,018	2,495,000
2,019	333,000
2,020	141,000
Future minimum payments payable	8,987,000
Less: Current portion	(3,882,000)	(3,643,000)
Long-term lease payable	5,105,000	$ 5,857,000
Interest included in contractual cash obligations	$ 416,000
Minimum
Term of lease receivables	24 months
Maximum
Term of lease receivables	36 months

Line of Credit (Details)

Line of Credit (Details) - USD ($)	Apr. 22, 2016	May. 21, 2015	Jul. 17, 2013	Mar. 31, 2016	Dec. 31, 2015
Combined facility | Subsequent event
Line of Credit
Number of trailing months for calculating free cash flow	12 months
Combined facility | Minimum
Line of Credit
Tangible net worth			$ 30,000,000
Combined facility | Minimum | Subsequent event
Line of Credit
Free cash flow	$ 1
Combined facility | CPC
Line of Credit
Maximum borrowing amount		$ 75,000,000	$ 40,000,000	$ 75,000,000
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)				0.44%
Floor plan line of credit
Line of Credit
Outstanding advances on the lines of credit				$ 25,200,000	$ 24,300,000
Floor plan line of credit | LIBOR
Line of Credit
Margin added to the variable interest rate (as a percent)			4.00%
Amended Agreement
Line of Credit
Free cash flow		$ 5,000,000
Number of trailing months for calculating free cash flow		12 months