Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Oct. 28, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | IMMR | |
Entity Registrant Name | IMMERSION CORP | |
Entity Central Index Key | 1,058,811 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 28,834,412 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 61,974 | $ 25,013 |
Short-term investments | 32,931 | 39,918 |
Accounts and other receivables (net of allowances for doubtful accounts of $0 and $15) | 3,248 | 1,213 |
Prepaid expenses and other current assets | 2,995 | 2,790 |
Total current assets | 101,148 | 68,934 |
Property and equipment, net | 4,068 | 4,589 |
Deferred income tax assets | 25,510 | 24,633 |
Prepaid income taxes | 6,502 | 6,995 |
Intangibles and other assets, net | 395 | 264 |
Total assets | 137,623 | 105,415 |
Current liabilities: | ||
Accounts payable | 2,418 | 650 |
Accrued compensation | 3,242 | 4,840 |
Other current liabilities | 4,242 | 2,999 |
Deferred revenue | 7,622 | 6,696 |
Total current liabilities | 17,524 | 15,185 |
Long-term deferred revenue | 27,489 | 2,516 |
Other long-term liabilities | 926 | 1,099 |
Total liabilities | 45,939 | 18,800 |
Contingencies (Note 13) | ||
Stockholders’ equity: | ||
Common stock and additional paid-in capital — $0.001 par value; 100,000,000 shares authorized; 35,439,389 and 34,845,310 shares issued, respectively; 28,817,745 and 28,329,416 shares outstanding, respectively | 219,114 | 212,115 |
Accumulated other comprehensive income | 118 | 86 |
Accumulated deficit | (81,181) | (79,948) |
Treasury stock at cost: 6,621,644 and 6,515,894 shares, respectively | (46,367) | (45,638) |
Total stockholders’ equity | 91,684 | 86,615 |
Total liabilities and stockholders’ equity | $ 137,623 | $ 105,415 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 0 | $ 15 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common Stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common Stock, shares issued (in shares) | 35,439,389 | 34,845,310 |
Common Stock, shares outstanding (in shares) | 28,817,745 | 28,329,416 |
Treasury Stock, shares (in shares) | 6,621,644 | 6,515,894 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Revenues: | ||||
Royalty and license | $ 26,049 | $ 13,944 | $ 47,112 | $ 45,895 |
Development, services, and other | 257 | 369 | 681 | 928 |
Total revenues | 26,306 | 14,313 | 47,793 | 46,823 |
Costs and expenses: | ||||
Cost of revenues (exclusive of amortization of intangibles shown separately below) | 51 | 117 | 133 | 347 |
Sales and marketing | 3,535 | 3,198 | 10,735 | 11,078 |
Research and development | 2,951 | 3,471 | 10,229 | 10,697 |
General and administrative | 9,654 | 6,241 | 30,745 | 21,253 |
Amortization of intangibles | 1 | 3 | 6 | 18 |
Total costs and expenses | 16,192 | 13,030 | 51,848 | 43,393 |
Operating income (loss) | 10,114 | 1,283 | (4,055) | 3,430 |
Interest and other income (expense) | 664 | (84) | 909 | (63) |
Income (loss) from continuing operations before benefit (provision) for income taxes | 10,778 | 1,199 | (3,146) | 3,367 |
Benefit (provision) for income taxes | (3,760) | (1,015) | 1,264 | (1,647) |
Income (loss) from continuing operations | 7,018 | 184 | (1,882) | 1,720 |
Income from discontinued operations | 0 | 0 | 649 | 0 |
Net income (loss) used in computing basic net income (loss) per share | $ 7,018 | $ 184 | $ (1,233) | $ 1,720 |
Basic net income (loss) per share - Continuing operations (in dollars per share) | $ 0.24 | $ 0.01 | $ (0.07) | $ 0.06 |
Basic net income (loss) per share - Discontinuing operations (in dollars per share) | 0 | 0 | 0.02 | 0 |
Basic net income (loss) per share (in dollars per share) | $ 0.24 | $ 0.01 | $ (0.05) | $ 0.06 |
Shares used in calculating basic net income (loss) per share (in shares) | 28,849 | 28,190 | 28,726 | 28,027 |
Diluted net income (loss) per share - Continuing Operations (in dollars per share | $ 0.24 | $ 0.01 | $ (0.07) | $ 0.06 |
Basic net income (loss) per share - Discontinued Operations (in dollars per share) | 0 | 0 | 0.02 | 0 |
Diluted net income (loss) per share (in dollars per share) | $ 0.24 | $ 0.01 | $ (0.05) | $ 0.06 |
Shares used in computation of diluted net income (loss) per share | 29,298 | 29,134 | 28,726 | 28,893 |
Other comprehensive income | ||||
Change in unrealized gains on short-term investments | $ (23) | $ 5 | $ 32 | $ 9 |
Total other comprehensive income | (23) | 5 | 32 | 9 |
Total comprehensive income (loss) | $ 6,995 | $ 189 | $ (1,201) | $ 1,729 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cash flows provided by operating activities: | ||
Net income (loss) | $ (1,233,000) | $ 1,720,000 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization of property and equipment | 677,000 | 772,000 |
Amortization of intangibles | 6,000 | 18,000 |
Stock-based compensation | 4,803,000 | 4,245,000 |
Allowance for doubtful accounts | 2,000 | (6,000) |
Loss on disposal of equipment | 0 | 10,000 |
Income from discontinued operations | 649,000 | 0 |
Changes in operating assets and liabilities: | ||
Accounts and other receivables | (2,037,000) | 1,524,000 |
Deferred income taxes | (1,228,000) | 10,417,000 |
Prepaid income taxes | 493,000 | (7,495,000) |
Prepaid expenses and other current assets | (205,000) | (2,177,000) |
Other operating assets | (258,000) | (24,000) |
Accounts payable | 1,768,000 | 870,000 |
Accrued compensation and other current liabilities | (342,000) | 1,169,000 |
Deferred revenue | 25,899,000 | 1,041,000 |
Other long-term liabilities | (173,000) | 240,000 |
Net cash provided by operating activities | 27,523,000 | 12,324,000 |
Cash flows provided by investing activities: | ||
Purchases of short-term investments | (25,360,000) | (28,972,000) |
Proceeds from maturities of short-term investments | 32,500,000 | 38,000,000 |
Purchases of property and equipment | (169,000) | (4,383,000) |
Proceeds from discontinued operations | 1,000,000 | 0 |
Net cash provided by investing activities | 7,971,000 | 4,645,000 |
Cash flows provided by financing activities: | ||
Issuance of common stock under employee stock purchase plan | 307,000 | 367,000 |
Exercise of stock options | 1,889,000 | 1,451,000 |
Purchase of treasury stock | (729,000) | 0 |
Net cash provided by financing activities | 1,467,000 | 1,818,000 |
Net increase in cash and cash equivalents | 36,961,000 | 18,787,000 |
Cash and cash equivalents: | ||
Beginning of period | 25,013,000 | 14,380,000 |
End of period | 61,974,000 | 33,167,000 |
Supplemental disclosure of cash flow information | ||
Cash paid (received) for taxes | (427,000) | 136,000 |
Supplemental disclosure of noncash operating, investing, and financing activities | ||
Amounts accrued for property and equipment | 5,000 | 30,000 |
Release of Restricted Stock Units and Awards under company stock plan | $ 1,945,000 | $ 2,771,000 |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | SIGNIFICANT ACCOUNTING POLICIES Description of Business Immersion Corporation (the “Company”) was incorporated in 1993 in California and reincorporated in Delaware in 1999. The Company focuses on the creation, design, development, and licensing of innovative haptic technologies that allow people to use their sense of touch more fully as they engage with cutting-edge products and experience the digital world around them. The Company has adopted a “hybrid” business model, under which it provides advanced tactile software, related tools, and technical assistance to certain customers; and offers licenses to the Company's patented intellectual property (“IP”) to other customers. Principles of Consolidation and Basis of Presentation The condensed consolidated financial statements include the accounts of Immersion Corporation and its wholly-owned subsidiaries: Immersion Canada Corporation; Immersion International, LLC; Immersion Medical, Inc.; Immersion Japan K.K.; Immersion Ltd.; Immersion Software Ireland Ltd.; Haptify, Inc.; Immersion (Shanghai) Science & Technology Company, Ltd.; and Immersion Technology International Ltd. All intercompany accounts, transactions, and balances have been eliminated in consolidation. The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions for Form 10-Q and Article 10 of Regulation S-X and, therefore, do not include all information and footnotes necessary for a complete presentation of the financial position, results of operations, and cash flows, in conformity with GAAP. These condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements included in the Company’s Annual Report on Form 10-K, for the fiscal year ended December 31, 2015 . In the opinion of management, all adjustments consisting of only normal and recurring items necessary for the fair presentation of the financial position and results of operations for the interim periods presented have been included. The results of operations for the three months and nine months ended September 30, 2016 are not necessarily indicative of the results to be expected for the full year. Segment Information The Company develops, licenses, and supports a wide range of software and IP that more fully engage users’ sense of touch when operating digital devices. The Company focuses on the following target application areas: mobility and consumer electronics, automotive, gaming, commercial and industrial, and medical. The Company’s chief operating decision maker (“CODM”) is the Chief Executive Officer. The CODM allocates resources to and assesses the performance of the Company using information about its financial results as one operating and reporting segment. Revenue Recognition The Company recognizes revenues in accordance with applicable accounting standards, including ASC 605-10-S99, “Revenue Recognition” (“ASC 605-10-S99”); ASC 605-25, “Multiple Element Arrangements” (“ASC 605-25”); and ASC 985-605, “Software-Revenue Recognition” (“ASC 985-605”). The Company derives its revenues from two principal sources: royalty and license fees, and development contract and service fees. As described below, management judgments, assumptions, and estimates must be made and used in connection with the revenue recognized in any accounting period. Material differences may result in the amount and timing of revenue for any period based on the judgments and estimates made by management. Specifically, in connection with each transaction, the Company must evaluate whether: (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred, (iii) the fee is fixed or determinable, and (iv) collectibility is probable. The Company applies these criteria as discussed below. • Persuasive evidence of an arrangement exists . For a license arrangement, the Company requires a written contract, signed by both the customer and the Company. • Delivery has occurred . The Company delivers software to customers physically and also delivers software electronically. For electronic deliveries, delivery occurs when the Company provides the customer access codes or “keys” that allow the customer to take immediate possession of the software. • The fee is fixed or determinable . The Company’s arrangement fee is based on the use of standard payment terms, which are those that are generally offered to the majority of customers. For transactions involving extended payment terms, the Company deems these fees not to be fixed or determinable for revenue recognition purposes and revenue is deferred until the fees become due and payable. • Collectibility is probable. To recognize revenue, the Company must judge collectibility of fees, which is done on a customer-by-customer basis pursuant to the Company’s credit review policy. The Company typically sells to customers with whom there is a history of successful collection. For new customers, the Company evaluates the customer’s financial condition and ability to pay. If it is determined that collectibility is not probable based upon the credit review process or the customer’s payment history, revenue is recognized when payment is received. Royalty and license revenue — The Company licenses its patents and software to customers in a variety of industries such as mobility, gaming, automotive, and medical devices. Certain of these are variable fee arrangements where the royalties earned by the Company are based on unit or sales volumes of the respective licensees. The Company also enters into fixed license fee arrangements. The terms of the royalty agreements generally require licensees to give notification of royalties due to the Company within 30 – 45 days of the end of the quarter during which their related sales occur. As the Company is unable to reliably estimate the licensees’ sales in any given quarter to determine the royalties due to it, the Company recognizes royalty revenues based on royalties reported by licensees and when all revenue recognition criteria are met. Certain royalties are based upon customer shipments or revenues and could be subject to change and may result in out of period adjustments. The Company recognizes fixed license fee revenue for licenses when earned under the terms of the agreements, which is generally recognized on a straight-line basis over the expected term of the license. Development, services, and other revenue — Development, services, and other revenue are composed of engineering services (engineering services and/or development contracts), and in limited cases, post contract customer support (“PCS”). Engineering services revenues are recognized under the proportional performance accounting method based on physical completion of the work to be performed or completed performance method. A provision for losses on contracts is made, if necessary, in the period in which the loss becomes probable and can be reasonably estimated. Revisions in estimates are reflected in the period in which the conditions become known. To date, such losses have not been significant. Revenue from PCS is typically recognized over the period of the ongoing obligation, which is generally consistent with the contractual term. Multiple element arrangements — The Company enters into multiple element arrangements in which customers purchase time-based non-exclusive licenses that cannot be resold to others, which include a combination of software and/or IP licenses, engineering services, and in limited cases PCS. For arrangements that are software based and include software and engineering services, the services are generally not essential to the functionality of the software, and customers may purchase engineering services to facilitate the adoption of the Company’s technology, but they may also decide to use their own resources or appoint other engineering service organizations to perform these services. For arrangements that are in substance subscription arrangements, the entire arrangement fee is recognized ratably over the contract term, subject to any limitations related to extended payment terms. For arrangements involving upfront fees for services and royalties earned by the Company based on unit or sales volumes of the respective licensees, and the services are performed ratably over the arrangement or are front-end loaded, the upfront fees are recognized ratably over the contract term and royalties based on unit or sales volume are recognized when they become fixed and determinable. As the Company is unable to reliably estimate the licensees’ sales in any given quarter to determine the royalties due to it, the Company recognizes per unit or sales volume driven royalty revenues based on royalties reported by licensees and when all revenue recognition criteria are met. Recent Accounting Pronouncements In March 2016, the FASB issued ASU 2016-09 “Compensation - Stock Compensation: Topic 718” (“ASU 2016-09”) which simplifies several aspects of the accounting for share-based payment transactions, including income tax consequences, classification of awards as either equity or liabilities, and classification in the statement of cash flows. The standard is effective for periods beginning after December 15, 2016, with early adoption permitted. The Company is currently in the process of evaluating the effect of this standard on its consolidated financial statements, but does not believe that it will have a significant impact. In February 2016, the FASB issued ASU 2016-02 “Leases: Topic 842” (“ASU 2016-02”), which supersedes the existing guidance for lease accounting in Topic 840, Leases. The FASB issued the ASU to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. ASU 2016-02 requires lessees to recognize a lease liability and a right-of-use asset for all leases. Lessor accounting remains largely unchanged. This ASU is effective for periods beginning after December 15, 2018, with early adoption permitted. An entity will be required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The Company is currently in the process of evaluating the impact of this standard on its consolidated financial statements. In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09 “Revenue from Contracts with Customers: Topic 606” (“ASU 2014-09”) which will supersede the current revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Further, the guidance requires improved disclosures to help users of financial statements better understand the nature, amount, timing, and uncertainty of revenue that is recognized. In August 2015, the FASB issued ASU No. 2015-14 “Revenue from Contracts with Customers: Deferral of the Effective Date”, which deferred the effective date of ASU 2014-09 for periods beginning after December 15, 2016 to December 15, 2017, with early adoption permitted but not earlier than the original effective date. In March 2016, the FASB issued ASU 2016-08 "Revenue from Contracts with Customers (Topic 606), Principal versus Agent Considerations" ("ASU 2016-08") which further provides updates to revenue recognition guidance relating to considerations for reporting revenue gross versus net. In April 2016, the FASB issued ASU 2016-10 "Revenue from Contracts with Customers (Topic 606), Identifying Performance Obligations and Licensing" ("ASU 2016-10"), which further provides additional updates to revenue recognition guidance relating to performance obligations and accounting for licensing revenue. In May 2016, the FASB issued ASU 2016-12 "Revenue from Contracts with Customers (Topic 606), Narrow-Scope Improvements and Practical Expedients" ("ASU 2016-12") which further provides updates to revenue recognition guidance relating to scope and practical expedients for revenue recognition. Accordingly, ASU 2014-09, ASU 2016-08, ASU 2016-10, and ASU 2016-12 are effective for the Company and are expected to be adopted in the first quarter of fiscal 2018. These standards permit companies to either apply the requirements retrospectively to all prior periods presented, or apply the requirements in the year of adoption through a cumulative adjustment. The Company is in the process of determining the method of adoption and evaluating the impact on its consolidated financial statements. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Cash Equivalents and Short-term Investments The financial instruments of the Company measured at fair value on a recurring basis are cash equivalents and short-term investments. The Company’s fixed income available-for-sale securities consist of high quality, investment grade securities. The Company values these securities based on pricing from pricing vendors, who may use quoted prices in active markets for identical assets (Level 1) or inputs other than quoted prices that are observable either directly or indirectly (Level 2) in determining fair value. The types of instruments valued based on quoted market prices in active markets include money market accounts. Such instruments are generally classified within Level 1 of the fair value hierarchy. The types of instruments valued based on quoted prices in markets that are less active, broker or dealer quotations, or alternative pricing sources with reasonable levels of price transparency are generally classified within Level 2 of the fair value hierarchy and include U.S. treasury securities. The types of instruments valued based on unobservable inputs which reflect the reporting entity’s own assumptions or data that market participants would use in valuing an instrument are generally classified within Level 3 of the fair value hierarchy. The Company had no Level 3 instruments as of September 30, 2016 and December 31, 2015 . Financial instruments measured at fair value on a recurring basis as of September 30, 2016 and December 31, 2015 are classified based on the valuation technique in the table below: September 30, 2016 Fair value measurements using Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total (In thousands) Assets: U.S. Treasury securities $ — $ 32,931 $ — $ 32,931 Money market accounts 34,009 — — 34,009 Total assets at fair value $ 34,009 $ 32,931 $ — $ 66,940 The above table excludes $28.0 million of cash held in banks. December 31, 2015 Fair value measurements using Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total (In thousands) Assets: U.S. Treasury securities $ — $ 39,918 $ 39,918 Money market accounts 14,032 — — 14,032 Total assets at fair value $ 14,032 $ 39,918 $ — $ 53,950 The above table excludes $11.0 million of cash held in banks. U.S. Treasury securities are classified as short-term investments, and money market accounts are classified as cash equivalents on the Company’s condensed consolidated balance sheets. Short-term Investments September 30, 2016 Amortized Cost Gross Unrealized Holding Gains Gross Unrealized Holding Losses Fair Value (In thousands) U.S. Treasury securities $ 32,914 $ 17 $ — $ 32,931 Total $ 32,914 $ 17 $ — $ 32,931 December 31, 2015 Amortized Cost Gross Unrealized Holding Gains Gross Unrealized Holding Losses Fair Value (In thousands) U.S. Treasury securities $ 39,933 $ — $ (15 ) $ 39,918 Total $ 39,933 $ — $ (15 ) $ 39,918 The contractual maturities of the short-term investments (classified as available-for-sale securities) on September 30, 2016 and December 31, 2015 were all due within one year. There were no transfers of instruments between Level 1 and 2 during the three months and nine months ended September 30, 2016 and the year ended December 31, 2015 . |
ACCOUNTS AND OTHER RECEIVABLES
ACCOUNTS AND OTHER RECEIVABLES | 9 Months Ended |
Sep. 30, 2016 | |
Receivables [Abstract] | |
ACCOUNTS AND OTHER RECEIVABLES | ACCOUNTS AND OTHER RECEIVABLES September 30, 2016 December 31, 2015 (In thousands) Trade accounts receivable $ 2,871 $ 935 Receivables from vendors and other 377 278 Accounts and other receivables $ 3,248 $ 1,213 |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 9 Months Ended |
Sep. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT September 30, 2016 December 31, 2015 (In thousands) Computer equipment and purchased software $ 3,513 $ 3,564 Machinery and equipment 886 923 Furniture and fixtures 1,340 1,361 Leasehold improvements 3,853 3,838 Total 9,592 9,686 Less accumulated depreciation (5,524 ) (5,097 ) Property and equipment, net $ 4,068 $ 4,589 |
INTANGIBLES AND OTHER ASSETS
INTANGIBLES AND OTHER ASSETS | 9 Months Ended |
Sep. 30, 2016 | |
Intangibles And Other Assets [Abstract] | |
INTANGIBLES AND OTHER ASSETS | INTANGIBLES AND OTHER ASSETS September 30, 2016 December 31, 2015 (In thousands) Purchased patents and other purchased intangible assets $ 4,605 $ 4,605 Less: Accumulated amortization of purchased patents and other purchased intangibles (4,605 ) (4,599 ) Purchased patents and other purchased intangible assets, net — 6 Other assets 395 258 Intangibles and other assets, net $ 395 $ 264 The Company amortizes its intangible assets related to purchased patents over their estimated useful lives, generally 10 years from the purchase date. The Company recorded $1,000 and $6,000 in amortization of purchased patents in the three months and nine months ended September 30, 2016 , respectively. The Company recorded $3,000 and $18,000 in amortization of purchased patents in the three months and nine months ended September 30, 2015 , respectively. |
OTHER CURRENT LIABILITIES
OTHER CURRENT LIABILITIES | 9 Months Ended |
Sep. 30, 2016 | |
Other Liabilities, Current [Abstract] | |
OTHER CURRENT LIABILITIES | OTHER CURRENT LIABILITIES September 30, 2016 December 31, 2015 (In thousands) Accrued legal $ 3,154 $ 1,458 Accrued services 341 849 Income taxes payable 135 129 Other current liabilities 612 563 Total other current liabilities $ 4,242 $ 2,999 |
LONG-TERM DEFERRED REVENUE
LONG-TERM DEFERRED REVENUE | 9 Months Ended |
Sep. 30, 2016 | |
Deferred Revenue Disclosure [Abstract] | |
LONG-TERM DEFERRED REVENUE | LONG-TERM DEFERRED REVENUE Long-term deferred revenue consisted of the following: September 30, 2016 December 31, 2015 (In thousands) Deferred revenue for Sony Computer Entertainment $ — $ 1,263 Other deferred revenue 27,489 1,253 Long-term deferred revenue $ 27,489 $ 2,516 Long-term deferred revenue primarily represents billings for license and other fees that have been deferred and are being recognized over the expected term of the licenses. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION Stock Options and Awards The Company’s equity incentive program is a long-term retention program that is intended to attract, retain, and provide incentives for talented employees, consultants, officers, and directors and to align stockholder and employee interests. The Company may grant time based options, market condition based options, stock appreciation rights, restricted stock, restricted stock units (“RSUs”), performance shares, performance units, and other stock-based or cash-based awards to employees, officers, directors, and consultants. Under this program, stock options may be granted at prices not less than the fair market value on the date of grant for stock options. These options generally vest over four years and expire from seven to ten years from the date of grant. In addition to time based vesting, market condition based options are subject to a market condition: the closing price of the Company stock must exceed a certain level for a number of trading days within a specified timeframe or the options will be cancelled before the expiration of the options. Restricted stock generally vests over one year. RSUs generally vest over three years. Awards granted other than an option or stock appreciation right reduce the common stock shares available for grant under the program by 1.75 shares for each share issued. September 30, 2016 Common stock shares available for grant 451,337 Standard and market condition stock options outstanding 3,661,163 Restricted stock awards outstanding 77,540 RSU's outstanding 527,410 Employee Stock Purchase Plan The Company has an Employee Stock Purchase Plan (“ESPP”). Under the ESPP, eligible employees may purchase common stock through payroll deductions at a purchase price of 85% of the lower of the fair market value of the Company’s common stock at the beginning of the offering period or the purchase date. Participants may not purchase more than 2,000 shares in a six -month offering period or purchase stock having a value greater than $25,000 in any calendar year as measured at the beginning of the offering period. A total of 1,000,000 shares of common stock has been reserved for issuance under the ESPP. As of September 30, 2016 , 649,383 shares had been purchased since the inception of the ESPP in 1999. Under ASC 718-10, the ESPP is considered a compensatory plan and the Company is required to recognize compensation cost related to the fair value of the award purchased under the ESPP. Shares purchased under the ESPP for the nine months ended September 30, 2016 are listed below. Shares purchased under the ESPP for the nine months ended September 30, 2015 are 45,820 . The intrinsic value listed below is calculated as the difference between the market value on the date of purchase and the purchase price of the shares. Nine Months Ended September 30, 2016 Shares purchased under ESPP 45,825 Average price of shares purchased under ESPP $ 6.70 Intrinsic value of shares purchased under ESPP $ 54,000 Summary of Standard Stock Options The following table sets forth the summary of activity with respect to standard stock options granted under the Company’s stock option plans for the nine months ended September 30, 2016 : Nine Months Ended September 30, 2016 Beginning outstanding balance 3,596,533 Granted 638,469 Exercised (312,676 ) Forfeited (239,826 ) Expired (246,337 ) Ending outstanding balance 3,436,163 Aggregate intrinsic value of options exercised $ 732,000 Weighted average fair value of options granted 3.60 The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the exercise price of the Company’s common stock for the options that were in-the-money. Information regarding these standard stock options outstanding at September 30, 2016 is summarized below: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (years) Aggregate Intrinsic Value (in millions) September 30, 2016 Options outstanding 3,436,163 $ 8.43 4.10 $ 3.5 Options vested and expected to vest using estimated forfeiture rates 3,220,554 8.42 3.98 3.4 Options exercisable 2,131,951 8.17 3.26 3.1 Summary of Market Condition Based Stock Options The following table sets forth activity with respect to market condition based stock options granted under the Company’s stock option plans for the nine months ended September 30, 2016 : Nine Months Ended September 30, 2016 Beginning outstanding balance 200,000 Granted 75,000 Exercised — Canceled (50,000 ) Ending outstanding balance 225,000 Aggregate intrinsic value of options exercised $ — Weighted average fair value of options granted 3.68 Information regarding these market condition based stock options outstanding at September 30, 2016 is summarized below: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (years) Aggregate Intrinsic Value (in millions) September 30, 2016 Options outstanding 225,000 $ 8.39 5.75 $ — Options vested and expected to vest using estimated forfeiture rates 205,625 8.38 5.74 — Options exercisable 56,250 8.09 5.42 — Summary of Restricted Stock Units RSU activity for the nine months ended September 30, 2016 was as follows: Nine Months Ended September 30, 2016 Beginning outstanding balance 487,117 Awarded 320,880 Released (214,222 ) Forfeited (66,365 ) Ending outstanding balance 527,410 Weighted average grant date fair value of RSUs granted $ 8.04 Total fair value of RSUs released 1,806,000 Information regarding RSUs outstanding at September 30, 2016 is summarized below: Number of Shares Weighted Average Remaining Contractual Life (years) Aggregate Intrinsic Value (in millions) September 30, 2016 RSUs outstanding 527,410 1.15 $ 4.3 RSUs vested and expected to vest using estimated forfeiture rates 420,790 1.03 3.4 Summary of Restricted Stock Awards Restricted stock award activity for the nine months ended September 30, 2016 was as follows: Nine Months Ended September 30, 2016 Beginning outstanding balance 21,356 Awarded 77,540 Released (21,356 ) Forfeited — Ending outstanding balance 77,540 Weighted average grant date fair value of restricted stock awarded $ 6.52 Total fair value of restricted stock awards released 139,000 Stock Plan Assumptions The assumptions used to value option grants under the Company’s stock plans were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Standard Stock Options Expected life (in years) 4.5 4.6 4.5 4.7 Volatility 55 % 56 % 55 % 56 % Interest rate 0.8 % 1.5 % 1.1 % 1.4 % Dividend yield N/A N/A N/A N/A Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Market Condition Based Stock Options Expected life (in years) N/A N/A 7.0 7.0 Volatility N/A N/A 59 % 65 % Interest rate N/A N/A 1.6 % 1.9 % Dividend yield N/A N/A N/A N/A Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Employee Stock Purchase Plan Expected life (in years) 0.5 0.5 0.5 0.5 Volatility 53 % 53 % 53 % 48 % Interest rate 0.4 % 0.2 % 0.4 % 0.1 % Dividend yield N/A N/A N/A N/A Compensation Costs Total stock-based compensation recognized in the condensed consolidated statements of operations and comprehensive loss is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 (In thousands) Statement of Operations Classifications Sales and marketing $ 335 $ 302 $ 895 $ 853 Research and development 257 276 1,041 1,036 General and administrative 622 698 2,867 2,356 Total $ 1,214 $ 1,276 $ 4,803 $ 4,245 As of September 30, 2016 , there was $7.4 million of unrecognized compensation cost, adjusted for estimated forfeitures, related to non-vested stock options, restricted stock awards and RSUs granted to the Company’s employees and directors. This cost will be recognized over an estimated weighted-average period of approximately 2.60 years for standard options, 2.75 years for market condition based options, 1.90 years for RSUs, and 0.67 years for restricted stock awards. Total unrecognized compensation cost will be adjusted for future changes in estimated forfeitures. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 9 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS’ EQUITY Accumulated Other Comprehensive Income The changes in accumulated other comprehensive income are included in the table below. Nine Months Ended September 30, 2016 Unrealized Gains and Losses on Available-for Sale Securities Foreign Currency Items Total (In thousands) Beginning balance $ (15 ) $ 101 $ 86 Other comprehensive income before reclassifications 32 — 32 Amounts reclassified from accumulated other comprehensive income — — — Net current period other comprehensive income 32 — 32 Ending Balance $ 17 $ 101 $ 118 Stock Repurchase Program On November 1, 2007, the Company announced its Board of Directors (the "Board")’ authorized the repurchase of up to $50.0 million of the Company’s common stock (“Stock Repurchase Program”). In addition, on October 22, 2014, the Board authorized another $30.0 million under the share repurchase program. The Company may repurchase its common stock for cash in the open market in accordance with applicable securities laws. The timing of and amount of any stock repurchase will depend on share price, corporate and regulatory requirements, economic and market conditions, and other factors. The stock repurchase authorization has no expiration date, does not require the Company to repurchase a specific number of shares, and may be modified, suspended, or discontinued at any time. During the three months and nine months ended September 30, 2016 , the Company repurchased 105,750 shares for $729,000 at an average cost of $6.90 per share, net of transaction costs through open market repurchases. There were no stock repurchases during the three months and nine months ended September 30, 2015 . These amounts repurchased are classified as treasury stock on the Company’s condensed consolidated balance sheet. As of September 30, 2016 , the Stock Repurchase Program remains available with approximately $33.7 million that may yet be purchased under the program. |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 9 Months Ended |
Sep. 30, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISCONTINUED OPERATIONS | DISCONTINUED OPERATIONS During the year ended December 31, 2009, the Company sold its 3D product line including inventory, fixed assets, and intangibles and recorded gains on the sale of discontinued operations of $187,000 at the time of the sales. Total initially negotiated consideration for the sales was $2.7 million which comprised of $320,000 in cash paid in the year ended December 31, 2009 and notes receivable of $2.4 million which were payable through the year ended December 31, 2013. Given the inherent uncertainty relative to the credit worthiness of the buyers, the Company concluded that they would recognize income from the notes receivable as proceeds were received. The operations of the 3D product line were classified as discontinued operations in the period of the initial sales transactions. In the second fiscal quarter of 2016 , a final settlement payment of $1.0 million was received relative to these sales, resulting in income of $649,000 from discontinued operations, net of tax of $351,000 . There were no discontinued operations during the three months ended September 30, 2016 . |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income tax provisions consisted of the following: Three Months Ended September 30, 2016 Nine Months Ended September 30, 2016 2016 2015 2016 2015 (In thousands) Income (loss) from continuing operations before benefit (provision) for income taxes $ 10,778 $ 1,199 $ (3,146 ) $ 3,367 Benefit (provision) for income taxes (3,760 ) (1,015 ) 1,264 (1,647 ) Effective tax rate 34.9 % 84.7 % 40.2 % 48.9 % The benefit (provision) for income tax for the three months ended September 30, 2016 and 2015 resulted primarily from the Company’s federal and foreign tax recognized at statutory rates, adjusted for the tax impact of nondeductible permanent items including stock-based compensation and foreign withholding taxes. It also includes non-cash tax expense on intercompany profit that resulted from the sale of certain IP rights to one of the Company's foreign subsidiaries as part of the Company's reorganization of its international operations during the second half of 2015. Discrete items recognized for the nine months ended September 30, 2016 include a tax refund related to the settlement with a taxing authority and the release of certain reserves and related accrued interest. On July 27, 2015, a U.S. Tax Court opinion ( Altera Corporation et. al v. Commissioner ) concerning the treatment of stock-based compensation expense in an intercompany cost sharing arrangement was issued. In its opinion, the U.S. Tax Court accepted Altera's position of excluding stock-based compensation from its intercompany cost sharing arrangement. On February 19, 2016, the IRS appealed the ruling to the U.S. Court of Appeals for the Ninth Circuit. Although the IRS has appealed the decision, based on the findings of the U.S. Tax Court, the Company has concluded that it is more likely than not that the decision will be upheld and accordingly has excluded stock-based compensation from intercompany charges during the period. The Company will continue to monitor ongoing developments and potential impacts to its condensed consolidated financial statements. As of September 30, 2016 , the Company had unrecognized tax benefits under ASC 740 “Income Taxes” of approximately $6.2 million and there was no applicable interest. The total amount of unrecognized tax benefits that would affect the Company’s effective tax rate, if recognized, was $2.3 million . The Company released reserves totaling $310,000 including interest and recorded a tax benefit due to the receipt of a tax refund related to the settlement with a taxing authority as noted above. The Company’s policy is to account for interest and penalties related to uncertain tax positions as a component of income tax provision. We do not expect to have any significant changes to unrecognized tax benefits during the next twelve months. Net deferred income taxes were $25.5 million as of September 30, 2016 , consisting primarily of federal net operating loss carryforwards and timing differences between book and tax. Because the Company had net operating loss and credit carryforwards, there are open statutes of limitations in which federal, state, and foreign taxing authorities may examine the Company’s tax returns for all years from 1998 through the current period. The Company maintains a valuation allowance of $8.2 million against certain of its deferred tax assets, including federal, state, and certain foreign deferred tax assets. The Company has determined there is not sufficient evidence to support the release of the valuation allowance against these federal, state and foreign deferred tax assets. |
NET INCOME (LOSS) PER SHARE
NET INCOME (LOSS) PER SHARE | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
NET INCOME (LOSS) PER SHARE | NET INCOME (LOSS) PER SHARE Basic and diluted net income (loss) per share is computed using the weighted average number of common shares outstanding for the period, excluding unvested restricted stock and RSUs. The following is a reconciliation of the numerators and denominators used in computing basic and diluted net loss per share for both continuing and discontinued operations: Three months ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 (in thousands, except per share amounts) Numerator: Income (loss) from continuing operations $ 7,018 $ 184 $ (1,882 ) $ 1,720 Income from discontinued operations, net of tax — — 649 — Net income (loss) used in computing basic net income (loss) per share $ 7,018 $ 184 $ (1,233 ) $ 1,720 Denominator: Shares used in computation of basic and diluted net income (loss) per share (weighted average common shares outstanding) 28,849 28,190 28,726 28,027 Dilutive potential common shares: Stock options, ESPP, restricted Stock and RSUs 449 944 — 866 Shares used in computation of diluted net income (loss) per share 29,298 29,134 28,726 28,893 Basic net income (loss) per share: Continuing operations $ 0.24 $ 0.01 $ (0.07 ) $ 0.06 Discontinued operations 0.00 0.00 0.02 0.00 Total $ 0.24 $ 0.01 $ (0.05 ) $ 0.06 Diluted net income (loss) per share: Continuing operations $ 0.24 $ 0.01 $ (0.07 ) $ 0.06 Discontinued operations 0.00 0.00 0.02 0.00 Total $ 0.24 $ 0.01 $ (0.05 ) $ 0.06 The Company includes the underlying market condition stock options in the calculation of diluted earnings per share if the performance condition has been satisfied as of the end of the reporting period and excludes such options if the performance condition has not been met. For the three months ended September 30, 2016 , standard stock options to purchase approximately 2.7 million shares of common stock, respectively, with exercise prices greater than the average fair market value of the Company’s stock of $7.41 per share, respectively, were not included in the calculation because the effect would have been anti-dilutive. For the three months and nine months ended September 30, 2015 , standard stock options to purchase approximately 917,000 and 1.8 million shares of common stock, respectively, with exercise prices greater than the average fair market value of the Company’s stock of $12.13 and $10.78 per share, respectively, were not included in the calculation because the effect would have been anti-dilutive. As of September 30, 2016 , the Company had securities outstanding that could potentially dilute basic earnings per share in the future, but these were excluded from the computation of diluted net loss per share for the nine months ended September 30, 2016 , since their effect would have been anti-dilutive. These outstanding securities consisted of the following: September 30, 2016 Standard and market condition stock options outstanding 3,661,163 Restricted stock awards outstanding 77,540 RSUs outstanding 527,410 ESPP 11,441 |
CONTINGENCIES
CONTINGENCIES | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES | CONTINGENCIES From time to time, the Company receives claims from third parties asserting that the Company’s technologies, or those of its licensees, infringe on the other parties’ IP rights. Management believes that these claims are without merit. Additionally, periodically, the Company is involved in routine legal matters and contractual disputes incidental to its normal operations. In management’s opinion, the resolution of such matters will not have a material adverse effect on the Company’s condensed consolidated financial condition, results of operations, or liquidity. In the normal course of business, the Company provides indemnification of varying scope to customers against claims of IP infringement made by third parties arising from the use of the Company’s IP, technology, or products. Historically, costs related to these guarantees have not been significant, and the Company is unable to estimate the maximum potential impact of these guarantees on its future results of operations. |
SIGNIFICANT ACCOUNTING POLICI19
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Description of Business | Immersion Corporation (the “Company”) was incorporated in 1993 in California and reincorporated in Delaware in 1999. The Company focuses on the creation, design, development, and licensing of innovative haptic technologies that allow people to use their sense of touch more fully as they engage with cutting-edge products and experience the digital world around them. The Company has adopted a “hybrid” business model, under which it provides advanced tactile software, related tools, and technical assistance to certain customers; and offers licenses to the Company's patented intellectual property (“IP”) to other customers. |
Principles of Consolidation and Basis of Presentation | The condensed consolidated financial statements include the accounts of Immersion Corporation and its wholly-owned subsidiaries: Immersion Canada Corporation; Immersion International, LLC; Immersion Medical, Inc.; Immersion Japan K.K.; Immersion Ltd.; Immersion Software Ireland Ltd.; Haptify, Inc.; Immersion (Shanghai) Science & Technology Company, Ltd.; and Immersion Technology International Ltd. All intercompany accounts, transactions, and balances have been eliminated in consolidation. The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions for Form 10-Q and Article 10 of Regulation S-X and, therefore, do not include all information and footnotes necessary for a complete presentation of the financial position, results of operations, and cash flows, in conformity with GAAP. These condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements included in the Company’s Annual Report on Form 10-K, for the fiscal year ended December 31, 2015 . In the opinion of management, all adjustments consisting of only normal and recurring items necessary for the fair presentation of the financial position and results of operations for the interim periods presented have been included. The results of operations for the three months and nine months ended September 30, 2016 are not necessarily indicative of the results to be expected for the full year. |
Segment Information | The Company develops, licenses, and supports a wide range of software and IP that more fully engage users’ sense of touch when operating digital devices. The Company focuses on the following target application areas: mobility and consumer electronics, automotive, gaming, commercial and industrial, and medical. The Company’s chief operating decision maker (“CODM”) is the Chief Executive Officer. The CODM allocates resources to and assesses the performance of the Company using information about its financial results as one operating and reporting segment. |
Revenue Recognition | The Company recognizes revenues in accordance with applicable accounting standards, including ASC 605-10-S99, “Revenue Recognition” (“ASC 605-10-S99”); ASC 605-25, “Multiple Element Arrangements” (“ASC 605-25”); and ASC 985-605, “Software-Revenue Recognition” (“ASC 985-605”). The Company derives its revenues from two principal sources: royalty and license fees, and development contract and service fees. As described below, management judgments, assumptions, and estimates must be made and used in connection with the revenue recognized in any accounting period. Material differences may result in the amount and timing of revenue for any period based on the judgments and estimates made by management. Specifically, in connection with each transaction, the Company must evaluate whether: (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred, (iii) the fee is fixed or determinable, and (iv) collectibility is probable. The Company applies these criteria as discussed below. • Persuasive evidence of an arrangement exists . For a license arrangement, the Company requires a written contract, signed by both the customer and the Company. • Delivery has occurred . The Company delivers software to customers physically and also delivers software electronically. For electronic deliveries, delivery occurs when the Company provides the customer access codes or “keys” that allow the customer to take immediate possession of the software. • The fee is fixed or determinable . The Company’s arrangement fee is based on the use of standard payment terms, which are those that are generally offered to the majority of customers. For transactions involving extended payment terms, the Company deems these fees not to be fixed or determinable for revenue recognition purposes and revenue is deferred until the fees become due and payable. • Collectibility is probable. To recognize revenue, the Company must judge collectibility of fees, which is done on a customer-by-customer basis pursuant to the Company’s credit review policy. The Company typically sells to customers with whom there is a history of successful collection. For new customers, the Company evaluates the customer’s financial condition and ability to pay. If it is determined that collectibility is not probable based upon the credit review process or the customer’s payment history, revenue is recognized when payment is received. Royalty and license revenue — The Company licenses its patents and software to customers in a variety of industries such as mobility, gaming, automotive, and medical devices. Certain of these are variable fee arrangements where the royalties earned by the Company are based on unit or sales volumes of the respective licensees. The Company also enters into fixed license fee arrangements. The terms of the royalty agreements generally require licensees to give notification of royalties due to the Company within 30 – 45 days of the end of the quarter during which their related sales occur. As the Company is unable to reliably estimate the licensees’ sales in any given quarter to determine the royalties due to it, the Company recognizes royalty revenues based on royalties reported by licensees and when all revenue recognition criteria are met. Certain royalties are based upon customer shipments or revenues and could be subject to change and may result in out of period adjustments. The Company recognizes fixed license fee revenue for licenses when earned under the terms of the agreements, which is generally recognized on a straight-line basis over the expected term of the license. Development, services, and other revenue — Development, services, and other revenue are composed of engineering services (engineering services and/or development contracts), and in limited cases, post contract customer support (“PCS”). Engineering services revenues are recognized under the proportional performance accounting method based on physical completion of the work to be performed or completed performance method. A provision for losses on contracts is made, if necessary, in the period in which the loss becomes probable and can be reasonably estimated. Revisions in estimates are reflected in the period in which the conditions become known. To date, such losses have not been significant. Revenue from PCS is typically recognized over the period of the ongoing obligation, which is generally consistent with the contractual term. Multiple element arrangements — The Company enters into multiple element arrangements in which customers purchase time-based non-exclusive licenses that cannot be resold to others, which include a combination of software and/or IP licenses, engineering services, and in limited cases PCS. For arrangements that are software based and include software and engineering services, the services are generally not essential to the functionality of the software, and customers may purchase engineering services to facilitate the adoption of the Company’s technology, but they may also decide to use their own resources or appoint other engineering service organizations to perform these services. For arrangements that are in substance subscription arrangements, the entire arrangement fee is recognized ratably over the contract term, subject to any limitations related to extended payment terms. For arrangements involving upfront fees for services and royalties earned by the Company based on unit or sales volumes of the respective licensees, and the services are performed ratably over the arrangement or are front-end loaded, the upfront fees are recognized ratably over the contract term and royalties based on unit or sales volume are recognized when they become fixed and determinable. As the Company is unable to reliably estimate the licensees’ sales in any given quarter to determine the royalties due to it, the Company recognizes per unit or sales volume driven royalty revenues based on royalties reported by licensees and when all revenue recognition criteria are met. |
Recent Accounting Pronouncements | In March 2016, the FASB issued ASU 2016-09 “Compensation - Stock Compensation: Topic 718” (“ASU 2016-09”) which simplifies several aspects of the accounting for share-based payment transactions, including income tax consequences, classification of awards as either equity or liabilities, and classification in the statement of cash flows. The standard is effective for periods beginning after December 15, 2016, with early adoption permitted. The Company is currently in the process of evaluating the effect of this standard on its consolidated financial statements, but does not believe that it will have a significant impact. In February 2016, the FASB issued ASU 2016-02 “Leases: Topic 842” (“ASU 2016-02”), which supersedes the existing guidance for lease accounting in Topic 840, Leases. The FASB issued the ASU to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. ASU 2016-02 requires lessees to recognize a lease liability and a right-of-use asset for all leases. Lessor accounting remains largely unchanged. This ASU is effective for periods beginning after December 15, 2018, with early adoption permitted. An entity will be required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The Company is currently in the process of evaluating the impact of this standard on its consolidated financial statements. In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09 “Revenue from Contracts with Customers: Topic 606” (“ASU 2014-09”) which will supersede the current revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Further, the guidance requires improved disclosures to help users of financial statements better understand the nature, amount, timing, and uncertainty of revenue that is recognized. In August 2015, the FASB issued ASU No. 2015-14 “Revenue from Contracts with Customers: Deferral of the Effective Date”, which deferred the effective date of ASU 2014-09 for periods beginning after December 15, 2016 to December 15, 2017, with early adoption permitted but not earlier than the original effective date. In March 2016, the FASB issued ASU 2016-08 "Revenue from Contracts with Customers (Topic 606), Principal versus Agent Considerations" ("ASU 2016-08") which further provides updates to revenue recognition guidance relating to considerations for reporting revenue gross versus net. In April 2016, the FASB issued ASU 2016-10 "Revenue from Contracts with Customers (Topic 606), Identifying Performance Obligations and Licensing" ("ASU 2016-10"), which further provides additional updates to revenue recognition guidance relating to performance obligations and accounting for licensing revenue. In May 2016, the FASB issued ASU 2016-12 "Revenue from Contracts with Customers (Topic 606), Narrow-Scope Improvements and Practical Expedients" ("ASU 2016-12") which further provides updates to revenue recognition guidance relating to scope and practical expedients for revenue recognition. Accordingly, ASU 2014-09, ASU 2016-08, ASU 2016-10, and ASU 2016-12 are effective for the Company and are expected to be adopted in the first quarter of fiscal 2018. These standards permit companies to either apply the requirements retrospectively to all prior periods presented, or apply the requirements in the year of adoption through a cumulative adjustment. The Company is in the process of determining the method of adoption and evaluating the impact on its consolidated financial statements. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of financial instruments measured at fair value on recurring basis | Financial instruments measured at fair value on a recurring basis as of September 30, 2016 and December 31, 2015 are classified based on the valuation technique in the table below: September 30, 2016 Fair value measurements using Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total (In thousands) Assets: U.S. Treasury securities $ — $ 32,931 $ — $ 32,931 Money market accounts 34,009 — — 34,009 Total assets at fair value $ 34,009 $ 32,931 $ — $ 66,940 December 31, 2015 Fair value measurements using Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total (In thousands) Assets: U.S. Treasury securities $ — $ 39,918 $ 39,918 Money market accounts 14,032 — — 14,032 Total assets at fair value $ 14,032 $ 39,918 $ — $ 53,950 |
Schedule of short-term investments | Short-term Investments September 30, 2016 Amortized Cost Gross Unrealized Holding Gains Gross Unrealized Holding Losses Fair Value (In thousands) U.S. Treasury securities $ 32,914 $ 17 $ — $ 32,931 Total $ 32,914 $ 17 $ — $ 32,931 December 31, 2015 Amortized Cost Gross Unrealized Holding Gains Gross Unrealized Holding Losses Fair Value (In thousands) U.S. Treasury securities $ 39,933 $ — $ (15 ) $ 39,918 Total $ 39,933 $ — $ (15 ) $ 39,918 |
ACCOUNTS AND OTHER RECEIVABLES
ACCOUNTS AND OTHER RECEIVABLES (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Receivables [Abstract] | |
Schedule of accounts and other receivables | September 30, 2016 December 31, 2015 (In thousands) Trade accounts receivable $ 2,871 $ 935 Receivables from vendors and other 377 278 Accounts and other receivables $ 3,248 $ 1,213 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | September 30, 2016 December 31, 2015 (In thousands) Computer equipment and purchased software $ 3,513 $ 3,564 Machinery and equipment 886 923 Furniture and fixtures 1,340 1,361 Leasehold improvements 3,853 3,838 Total 9,592 9,686 Less accumulated depreciation (5,524 ) (5,097 ) Property and equipment, net $ 4,068 $ 4,589 |
INTANGIBLES AND OTHER ASSETS (T
INTANGIBLES AND OTHER ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Intangibles And Other Assets [Abstract] | |
Schedule of intangibles and other assets | September 30, 2016 December 31, 2015 (In thousands) Purchased patents and other purchased intangible assets $ 4,605 $ 4,605 Less: Accumulated amortization of purchased patents and other purchased intangibles (4,605 ) (4,599 ) Purchased patents and other purchased intangible assets, net — 6 Other assets 395 258 Intangibles and other assets, net $ 395 $ 264 |
OTHER CURRENT LIABILITIES (Tabl
OTHER CURRENT LIABILITIES (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Other Liabilities, Current [Abstract] | |
Components of other current liabilities | September 30, 2016 December 31, 2015 (In thousands) Accrued legal $ 3,154 $ 1,458 Accrued services 341 849 Income taxes payable 135 129 Other current liabilities 612 563 Total other current liabilities $ 4,242 $ 2,999 |
LONG-TERM DEFERRED REVENUE (Tab
LONG-TERM DEFERRED REVENUE (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Deferred Revenue Disclosure [Abstract] | |
Schedule of long-term deferred revenue | Long-term deferred revenue consisted of the following: September 30, 2016 December 31, 2015 (In thousands) Deferred revenue for Sony Computer Entertainment $ — $ 1,263 Other deferred revenue 27,489 1,253 Long-term deferred revenue $ 27,489 $ 2,516 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of stock options and awards | September 30, 2016 Common stock shares available for grant 451,337 Standard and market condition stock options outstanding 3,661,163 Restricted stock awards outstanding 77,540 RSU's outstanding 527,410 |
Schedule of employee stock purchase plan | The intrinsic value listed below is calculated as the difference between the market value on the date of purchase and the purchase price of the shares. Nine Months Ended September 30, 2016 Shares purchased under ESPP 45,825 Average price of shares purchased under ESPP $ 6.70 Intrinsic value of shares purchased under ESPP $ 54,000 |
Schedule of standard and market-based stock options activity | The following table sets forth the summary of activity with respect to standard stock options granted under the Company’s stock option plans for the nine months ended September 30, 2016 : Nine Months Ended September 30, 2016 Beginning outstanding balance 3,596,533 Granted 638,469 Exercised (312,676 ) Forfeited (239,826 ) Expired (246,337 ) Ending outstanding balance 3,436,163 Aggregate intrinsic value of options exercised $ 732,000 Weighted average fair value of options granted 3.60 The following table sets forth activity with respect to market condition based stock options granted under the Company’s stock option plans for the nine months ended September 30, 2016 : Nine Months Ended September 30, 2016 Beginning outstanding balance 200,000 Granted 75,000 Exercised — Canceled (50,000 ) Ending outstanding balance 225,000 Aggregate intrinsic value of options exercised $ — Weighted average fair value of options granted 3.68 |
Schedule of information regarding standard and market condition based stock options outstanding | Information regarding these market condition based stock options outstanding at September 30, 2016 is summarized below: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (years) Aggregate Intrinsic Value (in millions) September 30, 2016 Options outstanding 225,000 $ 8.39 5.75 $ — Options vested and expected to vest using estimated forfeiture rates 205,625 8.38 5.74 — Options exercisable 56,250 8.09 5.42 — Information regarding these standard stock options outstanding at September 30, 2016 is summarized below: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (years) Aggregate Intrinsic Value (in millions) September 30, 2016 Options outstanding 3,436,163 $ 8.43 4.10 $ 3.5 Options vested and expected to vest using estimated forfeiture rates 3,220,554 8.42 3.98 3.4 Options exercisable 2,131,951 8.17 3.26 3.1 |
Schedule of restricted stock units activity | RSU activity for the nine months ended September 30, 2016 was as follows: Nine Months Ended September 30, 2016 Beginning outstanding balance 487,117 Awarded 320,880 Released (214,222 ) Forfeited (66,365 ) Ending outstanding balance 527,410 Weighted average grant date fair value of RSUs granted $ 8.04 Total fair value of RSUs released 1,806,000 |
Schedule of information regarding restricted stock units outstanding | Information regarding RSUs outstanding at September 30, 2016 is summarized below: Number of Shares Weighted Average Remaining Contractual Life (years) Aggregate Intrinsic Value (in millions) September 30, 2016 RSUs outstanding 527,410 1.15 $ 4.3 RSUs vested and expected to vest using estimated forfeiture rates 420,790 1.03 3.4 |
Schedule of restricted stock awards activity | Restricted stock award activity for the nine months ended September 30, 2016 was as follows: Nine Months Ended September 30, 2016 Beginning outstanding balance 21,356 Awarded 77,540 Released (21,356 ) Forfeited — Ending outstanding balance 77,540 Weighted average grant date fair value of restricted stock awarded $ 6.52 Total fair value of restricted stock awards released 139,000 |
Schedule of stock options, market condition based stock options and employee stock purchase plan, valuation assumptions | The assumptions used to value option grants under the Company’s stock plans were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Standard Stock Options Expected life (in years) 4.5 4.6 4.5 4.7 Volatility 55 % 56 % 55 % 56 % Interest rate 0.8 % 1.5 % 1.1 % 1.4 % Dividend yield N/A N/A N/A N/A Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Market Condition Based Stock Options Expected life (in years) N/A N/A 7.0 7.0 Volatility N/A N/A 59 % 65 % Interest rate N/A N/A 1.6 % 1.9 % Dividend yield N/A N/A N/A N/A Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Employee Stock Purchase Plan Expected life (in years) 0.5 0.5 0.5 0.5 Volatility 53 % 53 % 53 % 48 % Interest rate 0.4 % 0.2 % 0.4 % 0.1 % Dividend yield N/A N/A N/A N/A |
Schedule of stock-based compensation | Total stock-based compensation recognized in the condensed consolidated statements of operations and comprehensive loss is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 (In thousands) Statement of Operations Classifications Sales and marketing $ 335 $ 302 $ 895 $ 853 Research and development 257 276 1,041 1,036 General and administrative 622 698 2,867 2,356 Total $ 1,214 $ 1,276 $ 4,803 $ 4,245 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Changes in accumulated other comprehensive income | The changes in accumulated other comprehensive income are included in the table below. Nine Months Ended September 30, 2016 Unrealized Gains and Losses on Available-for Sale Securities Foreign Currency Items Total (In thousands) Beginning balance $ (15 ) $ 101 $ 86 Other comprehensive income before reclassifications 32 — 32 Amounts reclassified from accumulated other comprehensive income — — — Net current period other comprehensive income 32 — 32 Ending Balance $ 17 $ 101 $ 118 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of income tax provisions | Income tax provisions consisted of the following: Three Months Ended September 30, 2016 Nine Months Ended September 30, 2016 2016 2015 2016 2015 (In thousands) Income (loss) from continuing operations before benefit (provision) for income taxes $ 10,778 $ 1,199 $ (3,146 ) $ 3,367 Benefit (provision) for income taxes (3,760 ) (1,015 ) 1,264 (1,647 ) Effective tax rate 34.9 % 84.7 % 40.2 % 48.9 % |
NET INCOME (LOSS) PER SHARE (Ta
NET INCOME (LOSS) PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Reconciliation used in Computing Basic and Diluted Net Income (Loss) per Share | The following is a reconciliation of the numerators and denominators used in computing basic and diluted net loss per share for both continuing and discontinued operations: Three months ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 (in thousands, except per share amounts) Numerator: Income (loss) from continuing operations $ 7,018 $ 184 $ (1,882 ) $ 1,720 Income from discontinued operations, net of tax — — 649 — Net income (loss) used in computing basic net income (loss) per share $ 7,018 $ 184 $ (1,233 ) $ 1,720 Denominator: Shares used in computation of basic and diluted net income (loss) per share (weighted average common shares outstanding) 28,849 28,190 28,726 28,027 Dilutive potential common shares: Stock options, ESPP, restricted Stock and RSUs 449 944 — 866 Shares used in computation of diluted net income (loss) per share 29,298 29,134 28,726 28,893 Basic net income (loss) per share: Continuing operations $ 0.24 $ 0.01 $ (0.07 ) $ 0.06 Discontinued operations 0.00 0.00 0.02 0.00 Total $ 0.24 $ 0.01 $ (0.05 ) $ 0.06 Diluted net income (loss) per share: Continuing operations $ 0.24 $ 0.01 $ (0.07 ) $ 0.06 Discontinued operations 0.00 0.00 0.02 0.00 Total $ 0.24 $ 0.01 $ (0.05 ) $ 0.06 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | As of September 30, 2016 , the Company had securities outstanding that could potentially dilute basic earnings per share in the future, but these were excluded from the computation of diluted net loss per share for the nine months ended September 30, 2016 , since their effect would have been anti-dilutive. These outstanding securities consisted of the following: September 30, 2016 Standard and market condition stock options outstanding 3,661,163 Restricted stock awards outstanding 77,540 RSUs outstanding 527,410 ESPP 11,441 |
SIGNIFICANT ACCOUNTING POLICI30
SIGNIFICANT ACCOUNTING POLICIES - ADDITIONAL INFORMATION (Detail) | 9 Months Ended |
Sep. 30, 2016Segment | |
Accounting Policies [Abstract] | |
Number of reporting segments | 1 |
Number of operating segments | 1 |
Period of royalties notification, minimum | 30 days |
Period of royalties notification, maximum | 45 days |
FAIR VALUE MEASUREMENTS - SCHED
FAIR VALUE MEASUREMENTS - SCHEDULE OF FINANCIAL INSTRUMENTS MEASURED AT FAIR VALUE ON RECURRING BASIS (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | $ 66,940 | $ 53,950 |
Short-term investments | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 32,931 | 39,918 |
Cash and cash equivalents | Money market accounts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 34,009 | 14,032 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 34,009 | 14,032 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Short-term investments | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Cash and cash equivalents | Money market accounts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 34,009 | 14,032 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 32,931 | 39,918 |
Significant Other Observable Inputs (Level 2) | Short-term investments | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 32,931 | 39,918 |
Significant Other Observable Inputs (Level 2) | Cash and cash equivalents | Money market accounts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Short-term investments | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 0 | |
Significant Unobservable Inputs (Level 3) | Cash and cash equivalents | Money market accounts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - SCH32
FAIR VALUE MEASUREMENTS - SCHEDULE OF SHORT-TERM INVESTMENTS (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Short-term investments, amortized cost | $ 32,914 | $ 39,933 |
Short-term investments, gross unrealized holding gains | 17 | 0 |
Short-term investments, gross unrealized holding losses | 0 | (15) |
Short-term investments, fair value | 32,931 | 39,918 |
U.S. Treasury securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Short-term investments, amortized cost | 32,914 | 39,933 |
Short-term investments, gross unrealized holding gains | 17 | 0 |
Short-term investments, gross unrealized holding losses | 0 | (15) |
Short-term investments, fair value | $ 32,931 | $ 39,918 |
FAIR VALUE MEASUREMENTS - ADDIT
FAIR VALUE MEASUREMENTS - ADDITIONAL INFORMATION (Detail) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | ||
Cash held in banks | $ 28,000,000 | $ 11,000,000 |
Period for contractual maturities of the Company's available-for-sale securities | 1 year | 1 year |
Fair value assets, Level 1 to Level 2 | $ 0 | $ 0 |
Fair value assets, Level 2 to Level 1 | 0 | 0 |
Fair value liabilities, Level 1 to Level 2 | 0 | 0 |
Fair value liabilities, Level 2 to Level 1 | $ 0 | $ 0 |
ACCOUNTS AND OTHER RECEIVABLE34
ACCOUNTS AND OTHER RECEIVABLES - SCHEDULE OF ACCOUNTS AND OTHER RECEIVABLES (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Receivables [Abstract] | ||
Trade accounts receivable | $ 2,871 | $ 935 |
Receivables from vendors and other | 377 | 278 |
Accounts and other receivables | $ 3,248 | $ 1,213 |
PROPERTY AND EQUIPMENT - SCHEDU
PROPERTY AND EQUIPMENT - SCHEDULE OF PROPERTY AND EQUIPMENT (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, total | $ 9,592 | $ 9,686 |
Less accumulated depreciation | (5,524) | (5,097) |
Property and equipment, net | 4,068 | 4,589 |
Computer equipment and purchased software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, total | 3,513 | 3,564 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, total | 886 | 923 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, total | 1,340 | 1,361 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, total | $ 3,853 | $ 3,838 |
INTANGIBLES AND OTHER ASSETS -
INTANGIBLES AND OTHER ASSETS - SCHEDULE OF INTANGIBLES AND OTHER ASSETS (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Other assets | $ 395 | $ 395 | $ 258 | ||
Intangibles and other assets, net | 395 | $ 395 | 264 | ||
Intangible asset - useful life | 10 years | ||||
Amortization of intangibles | 1 | $ 3 | $ 6 | $ 18 | |
Purchased patents and other purchased intangibles | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Purchased patents and other purchased intangible assets | 4,605 | 4,605 | 4,605 | ||
Less: Accumulated amortization of purchased patents and other purchased intangibles | (4,605) | (4,605) | (4,599) | ||
Purchased patents and other purchased intangible assets, net | $ 0 | $ 0 | $ 6 |
OTHER CURRENT LIABILITIES (Deta
OTHER CURRENT LIABILITIES (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Other Liabilities, Current [Abstract] | ||
Accrued legal | $ 3,154 | $ 1,458 |
Accrued services | 341 | 849 |
Income taxes payable | 135 | 129 |
Other current liabilities | 612 | 563 |
Total other current liabilities | $ 4,242 | $ 2,999 |
LONG-TERM DEFERRED REVENUE - SC
LONG-TERM DEFERRED REVENUE - SCHEDULE OF LONG-TERM DEFERRED REVENUE (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Deferred Revenue Disclosure [Abstract] | ||
Deferred revenue for Sony Computer Entertainment | $ 0 | $ 1,263 |
Other deferred revenue | 27,489 | 1,253 |
Long-term deferred revenue | $ 27,489 | $ 2,516 |
STOCK-BASED COMPENSATION - SCHE
STOCK-BASED COMPENSATION - SCHEDULE OF STOCK OPTIONS AND AWARDS (Detail) - shares | Sep. 30, 2016 | Dec. 31, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock shares available for grant | 451,337 | |
Standard and market condition stock options outstanding | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Standard and market condition stock options outstanding (in shares) | 3,661,163 | |
Restricted stock awards outstanding | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock outstanding (in shares) | 77,540 | 21,356 |
RSUs outstanding | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock outstanding (in shares) | 527,410 | 487,117 |
STOCK-BASED COMPENSATION - SC40
STOCK-BASED COMPENSATION - SCHEDULE OF EMPLOYEE STOCK PURCHASE PLAN (Detail) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Shares purchased under ESPP (in shares) | 45,825 | 45,820 |
Average price of shares purchased under ESPP (in dollars per share) | $ 6.70 | |
Intrinsic value of shares purchased under ESPP | $ 54 |
STOCK-BASED COMPENSATION - SC41
STOCK-BASED COMPENSATION - SCHEDULE OF STANDARD AND MARKET-BASED STOCK OPTIONS ACTIVITY (Detail) | 9 Months Ended |
Sep. 30, 2016USD ($)$ / sharesshares | |
Standard Stock Options | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares [Roll Forward] | |
Beginning outstanding balance (in shares) | 3,596,533 |
Granted (in shares) | 638,469 |
Exercised (in shares) | (312,676) |
Forfeited (in shares) | (239,826) |
Expired (in shares) | (246,337) |
Ending outstanding balance (in shares) | 3,436,163 |
Aggregate intrinsic value of options exercised (in dollars) | $ | $ 700,000 |
Weighted average fair value of options granted (in dollars per share) | $ / shares | $ 3.60 |
Market Condition Based Stock Options | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares [Roll Forward] | |
Beginning outstanding balance (in shares) | 200,000 |
Granted (in shares) | 75,000 |
Exercised (in shares) | 0 |
Canceled (in shares) | (50,000) |
Ending outstanding balance (in shares) | 225,000 |
Aggregate intrinsic value of options exercised (in dollars) | $ | $ 0 |
Weighted average fair value of options granted (in dollars per share) | $ / shares | $ 3.68 |
STOCK-BASED COMPENSATION - SC42
STOCK-BASED COMPENSATION - SCHEDULE OF INFORMATION REGARDING STANDARD AND MARKET CONDITION BASED STOCK OPTIONS OUTSTANDING (Detail) - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | |
Standard Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock options outstanding (in shares) | 3,436,163 | 3,596,533 |
Options vested and expected to vest using estimated forfeiture rates, number (in shares) | 3,220,554 | |
Options exercisable, number (in shares) | 2,131,951 | |
Options outstanding, Weighted Average Exercise Price (in dollars per share) | $ 8.43 | |
Options vested and expected to vest using estimated forfeiture rates, Weighted Average Exercise Price (in dollars per share) | 8.42 | |
Options exercisable, Weighted Average Exercise Price (in dollars per share) | $ 8.17 | |
Options outstanding, Weighted Average Remaining Contractual Life (years) | 4 years 1 month 6 days | |
Options vested and expected to vest using estimated forfeiture rates, Weighted Average Remaining Contractual Life (years) | 3 years 11 months 23 days | |
Options exercisable, weighted average remaining contractual (years) | 3 years 3 months 3 days | |
Options outstanding, aggregate intrinsic value (in dollars) | $ 3.5 | |
Options vested and expected to vest using estimated forfeiture rates, Aggregate Intrinsic Value (in dollars) | 3.4 | |
Options exercisable, aggregate intrinsic value (in dollars) | $ 3.1 | |
Market Condition Based Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock options outstanding (in shares) | 225,000 | 200,000 |
Options vested and expected to vest using estimated forfeiture rates, number (in shares) | 205,625.31 | |
Options exercisable, number (in shares) | 56,250,000 | |
Options outstanding, Weighted Average Exercise Price (in dollars per share) | $ 8.39 | |
Options vested and expected to vest using estimated forfeiture rates, Weighted Average Exercise Price (in dollars per share) | 8.38 | |
Options exercisable, Weighted Average Exercise Price (in dollars per share) | $ 8.09 | |
Options outstanding, Weighted Average Remaining Contractual Life (years) | 5 years 9 months | |
Options vested and expected to vest using estimated forfeiture rates, Weighted Average Remaining Contractual Life (years) | 5 years 8 months 26 days | |
Options exercisable, weighted average remaining contractual (years) | 5 years 5 months 1 day | |
Options outstanding, aggregate intrinsic value (in dollars) | $ 0 | |
Options vested and expected to vest using estimated forfeiture rates, Aggregate Intrinsic Value (in dollars) | 0 | |
Options exercisable, aggregate intrinsic value (in dollars) | $ 0 |
STOCK-BASED COMPENSATION - SC43
STOCK-BASED COMPENSATION - SCHEDULE OF RESTRICTED STOCK UNITS ACTIVITY (Detail) - RSUs outstanding - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Restricted stock outstanding (in shares) | 527,410 | 487,117 |
Awarded (in shares) | 320,880 | |
Released (in shares) | (214,222) | |
Forfeited (in shares) | (66,365) | |
Ending outstanding balance (in shares) | 527,410 | |
Weighted average grant date fair value of RSUs granted (in dollars per share) | $ 8.04 | |
Total fair value of RSUs released (in dollars) | $ 1,806 |
STOCK-BASED COMPENSATION - SC44
STOCK-BASED COMPENSATION - SCHEDULE OF INFORMATION REGARDING RESTRICTED STOCK UNITS OUTSTANDING (Detail) - RSUs outstanding - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
RSUs outstanding, number (in shares) | 527,410 | 487,117 |
RSUs vested and expected to vest using estimated forfeiture rates, number (in shares) | 420,790 | |
RSUs outstanding, Weighted Average Remaining Contractual Life (years) | 1 year 1 month 24 days | |
RSUs vested and expected to vest using estimated forfeiture rates, Weighted Average Remaining Contractual Life (years) | 1 year 10 days | |
RSUs outstanding, aggregate intrinsic value (in dollars) | $ 4.3 | |
RSUs vested and expected to vest using estimated forfeiture rates, aggregate intrinsic value (in dollars) | $ 3.4 |
STOCK-BASED COMPENSATION - SC45
STOCK-BASED COMPENSATION - SCHEDULE OF RESTRICTED STOCK AWARDS ACTIVITY (Detail) - Restricted stock awards outstanding $ / shares in Units, $ in Thousands | 9 Months Ended |
Sep. 30, 2016USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Restricted stock outstanding (in shares) | 21,356 |
Awarded (in shares) | 77,540 |
Released (in shares) | (21,356) |
Forfeited (in shares) | 0 |
Ending outstanding balance (in shares) | 77,540 |
Weighted average grant date fair value of restricted stock awarded (in dollars per share) | $ / shares | $ 6.52 |
Total fair value of restricted stock awards released (in dollars) | $ | $ 139 |
STOCK-BASED COMPENSATION - SC46
STOCK-BASED COMPENSATION - SCHEDULE OF STOCK OPTIONS, MARKET CONDITION BASED STOCK OPTIONS AND EMPLOYEE STOCK PURCHASE PLAN VALUATION ASSUMPTIONS (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Employee Stock Purchase Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected life (in years) | 6 months | 6 months | 6 months | 6 months |
Volatility | 53.00% | 53.00% | 53.00% | 48.00% |
Interest rate | 0.40% | 0.20% | 0.40% | 0.10% |
Standard Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected life (in years) | 4 years 6 months | 4 years 7 months 6 days | 4 years 6 months | 4 years 8 months 12 days |
Volatility | 55.00% | 56.00% | 55.00% | 56.00% |
Interest rate | 0.80% | 1.50% | 1.10% | 1.40% |
Market Condition Based Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected life (in years) | 7 years | 7 years | ||
Volatility | 59.00% | 65.00% | ||
Interest rate | 1.60% | 1.90% |
STOCK-BASED COMPENSATION - SC47
STOCK-BASED COMPENSATION - SCHEDULE OF STOCK-BASED COMPENSATION (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based compensation, total | $ 1,214 | $ 1,276 | $ 4,803 | $ 4,245 |
Sales and marketing | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based compensation, total | 335 | 302 | 895 | 853 |
Research and development | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based compensation, total | 257 | 276 | 1,041 | 1,036 |
General and administrative | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based compensation, total | $ 622 | $ 698 | $ 2,867 | $ 2,356 |
STOCK-BASED COMPENSATION - ADDI
STOCK-BASED COMPENSATION - ADDITIONAL INFORMATION (Detail) - USD ($) | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of options for every share issued (in shares) | 1.75 | |
Percentage of fair market value on the purchase date | 85.00% | |
Maximum number of shares per employee (in shares) | 2,000 | |
Employee stock purchase plan offering period | 6 months | |
Maximum value of shares per employee | $ 25,000 | |
Common stock reserved for issuance (in shares) | 1,000,000 | |
Shares purchased by employee since inception of ESPP (in shares) | 649,383 | |
Shares purchased under ESPP (in shares) | 45,825 | 45,820 |
Unrecognized compensation cost | $ 7,400,000 | |
Standard and market condition stock options outstanding | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based payment award vesting period (years) | 4 years | |
Standard and market condition stock options outstanding | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based payment award expiration period (years) | 7 years | |
Standard and market condition stock options outstanding | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based payment award expiration period (years) | 10 years | |
Restricted stock awards outstanding | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based payment award vesting period (years) | 1 year | |
Unrecognized compensation cost, recognized over an estimated weighted-average period (years) | 8 months 1 day | |
RSUs outstanding | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based payment award vesting period (years) | 3 years | |
Unrecognized compensation cost, recognized over an estimated weighted-average period (years) | 1 year 10 months 24 days | |
Standard Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation cost, recognized over an estimated weighted-average period (years) | 2 years 7 months 6 days | |
Market Condition Based Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation cost, recognized over an estimated weighted-average period (years) | 2 years 9 months |
STOCKHOLDERS' EQUITY - CHANGES
STOCKHOLDERS' EQUITY - CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | |
Beginning balance | $ 86 |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Other comprehensive income before reclassifications | 32 |
Amounts reclassified from accumulated other comprehensive income | 0 |
Net current period other comprehensive income | 32 |
Ending balance | 118 |
Unrealized gains and losses on available-for sale securities | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | |
Beginning balance | (15) |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Other comprehensive income before reclassifications | 32 |
Amounts reclassified from accumulated other comprehensive income | 0 |
Net current period other comprehensive income | 32 |
Ending balance | 17 |
Foreign currency items | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | |
Beginning balance | 101 |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Other comprehensive income before reclassifications | 0 |
Amounts reclassified from accumulated other comprehensive income | 0 |
Net current period other comprehensive income | 0 |
Ending balance | $ 101 |
STOCKHOLDERS' EQUITY - ADDITION
STOCKHOLDERS' EQUITY - ADDITIONAL INFORMATION (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Oct. 22, 2014 | Nov. 01, 2007 | |
Equity [Abstract] | ||||||
Stock repurchase program, additional authorized amount | $ 30,000,000 | $ 50,000,000 | ||||
Repurchased shares | 105,750 | 0 | 105,750 | 0 | ||
Treasury stock, value, acquired, par value method | $ 700,000 | $ 700,000 | ||||
Treasury stock acquired, average cost per share | $ 6.90 | $ 6.90 | ||||
Stock repurchase program, remaining available repurchase amount | $ 33,700,000 | $ 33,700,000 |
DISCONTINUED OPERATIONS DISCONT
DISCONTINUED OPERATIONS DISCONTINUED OPERATIONS (Details) - USD ($) | Dec. 31, 2009 | Sep. 30, 2016 | Jun. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 |
Discontinued Operations and Disposal Groups [Abstract] | ||||||
Income from discontinued operations | $ 187,000 | |||||
Disposal group, including discontinued operation, consideration | 2,700,000 | |||||
Disposal group, including discontinued operation, cash and cash equivalents | 320,000 | |||||
Disposal group, including discontinued operation, accounts, notes and loans receivable, net | $ 2,400,000 | |||||
Proceeds from discontinued operations | $ 0 | $ 1,000,000 | $ 1,000,000 | $ 0 | ||
Income from discontinued operations | $ 0 | $ 0 | $ 649,000 | $ 0 | ||
Discontinued operation, tax effect of discontinued operation | $ 351,000 |
INCOME TAXES - SCHEDULE OF INCO
INCOME TAXES - SCHEDULE OF INCOME TAX PROVISIONS (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | ||||
Income (loss) from continuing operations before benefit (provision) for income taxes | $ 10,778 | $ 1,199 | $ (3,146) | $ 3,367 |
Benefit (provision) for income taxes | $ (3,760) | $ (1,015) | $ 1,264 | $ (1,647) |
Effective tax rate | 34.90% | 84.70% | 40.20% | 48.90% |
INCOME TAXES - ADDITIONAL INFOR
INCOME TAXES - ADDITIONAL INFORMATION (Detail) | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Income Tax Disclosure [Abstract] | |
Unrecognized tax benefits | $ 6,200,000 |
Unrecognized tax benefits, interest | 0 |
Unrecognized tax benefits that would affect the Company's effective tax rate | 2,300,000 |
Unrecognized tax benefits released | 310,000 |
Net deferred income taxes | 25,500,000 |
Valuation allowance of deferred tax assets | $ 8,200,000 |
NET INCOME (LOSS) PER SHARE - A
NET INCOME (LOSS) PER SHARE - ADDITIONAL INFORMATION (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Income (loss) from continuing operations | $ 7,018 | $ 184 | $ (1,882) | $ 1,720 |
Income from discontinued operations, net of tax | 0 | 0 | 649 | 0 |
Net income (loss) used in computing basic net income (loss) per share | $ 7,018 | $ 184 | $ (1,233) | $ 1,720 |
Shares used in computation of basic and diluted net income (loss) per share (weighted average common shares outstanding) | 28,849,000 | 28,190,000 | 28,726,000 | 28,027,000 |
Stock options, ESPP, restricted Stock and RSUs | 449,000 | 944,000 | 0 | 866,000 |
Shares used in computation of diluted net income (loss) per share | 29,298,000 | 29,134,000 | 28,726,000 | 28,893,000 |
Basic net income (loss) per share - Continuing operations (in dollars per share) | $ 0.24 | $ 0.01 | $ (0.07) | $ 0.06 |
Basic net income (loss) per share - Discontinued operations (in dollars per share) | 0 | 0 | 0.02 | 0 |
Basic net income (loss) per share (in dollars per share) | 0.24 | 0.01 | (0.05) | 0.06 |
Diluted net income (loss) per share - Continuing Operations (in dollars per share | 0.24 | 0.01 | (0.07) | 0.06 |
Diluted net income (loss) per share - Discontinued operations (in dollars per share) | 0 | 0 | 0.02 | 0 |
Diluted net income (loss) per share (in dollars per share) | $ 0.24 | $ 0.01 | $ (0.05) | $ 0.06 |
Options to purchase shares of common stock (in shares) | 2,700,000 | 917,000 | 1,800,000 | |
Average fair market value of stock (in dollars per share) | $ 7.41 | $ 12.13 | $ 10.78 | |
Standard and market condition stock options outstanding | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Options to purchase shares of common stock (in shares) | 3,661,163 | |||
Restricted stock awards outstanding | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Options to purchase shares of common stock (in shares) | 77,540 | |||
RSUs outstanding | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Options to purchase shares of common stock (in shares) | 527,410 | |||
ESPP | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Options to purchase shares of common stock (in shares) | 11,441 |