Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Oct. 29, 2013 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'IMMR | ' |
Entity Registrant Name | 'IMMERSION CORP | ' |
Entity Central Index Key | '0001058811 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 28,598,664 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $16,664 | $4,558 |
Short-term investments | 47,990 | 38,988 |
Accounts and other receivables (net of allowances for doubtful accounts of: $139 and $134, respectively) | 294 | 1,878 |
Inventories | 0 | 141 |
Deferred income taxes | 165 | 165 |
Prepaid expenses and other current assets | 870 | 706 |
Total current assets | 65,983 | 46,436 |
Property and equipment, net | 984 | 1,281 |
Intangibles and other assets, net | 17,165 | 15,725 |
Total assets | 84,132 | 63,442 |
Current liabilities: | ' | ' |
Accounts payable | 618 | 338 |
Accrued compensation | 3,353 | 2,502 |
Other current liabilities | 1,379 | 1,022 |
Deferred revenue and customer advances | 11,186 | 3,934 |
Total current liabilities | 16,536 | 7,796 |
Long-term deferred revenue | 8,045 | 10,221 |
Deferred income tax liabilities | 165 | 165 |
Other long-term liabilities | 551 | 619 |
Total liabilities | 25,297 | 18,801 |
Contingencies (Note 13) | ' | ' |
Stockholders' equity: | ' | ' |
Common stock and additional paid-in capital - $0.001 par value; 100,000,000 shares authorized; 33,581,408 and 32,278,330 shares issued, respectively; 28,598,664 and 27,295,586 shares outstanding, respectively | 196,776 | 186,822 |
Accumulated other comprehensive income | 115 | 109 |
Accumulated deficit | -107,487 | -111,721 |
Treasury stock at cost: 4,982,744 shares | -30,569 | -30,569 |
Total stockholders' equity | 58,835 | 44,641 |
Total liabilities and stockholders' equity | $84,132 | $63,442 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Statement Of Financial Position [Abstract] | ' | ' |
Allowances for doubtful accounts | $139 | $134 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 33,581,408 | 32,278,330 |
Common stock, shares outstanding | 28,598,664 | 27,295,586 |
Treasury Stock, shares | 4,982,744 | 4,982,744 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Revenues: | ' | ' | ' | ' |
Royalty and license | $10,951 | $6,371 | $34,580 | $21,386 |
Product sales | 12 | 529 | 44 | 1,145 |
Development contracts and other | 379 | 242 | 779 | 778 |
Total revenues | 11,342 | 7,142 | 35,403 | 23,309 |
Costs and expenses: | ' | ' | ' | ' |
Cost of revenues (exclusive of amortization, abandonment, and impairment of intangibles shown separately below) | 111 | 273 | 386 | 802 |
Sales and marketing | 2,151 | 1,632 | 6,692 | 5,072 |
Research and development | 2,640 | 2,088 | 7,876 | 6,406 |
General and administrative | 4,533 | 5,750 | 14,647 | 14,882 |
Amortization, abandonment, and impairment of intangibles | 487 | 337 | 1,364 | 1,071 |
Total costs and expenses | 9,922 | 10,080 | 30,965 | 28,233 |
Operating income (loss) | 1,420 | -2,938 | 4,438 | -4,924 |
Interest and other income | 42 | 66 | 80 | 144 |
Income (loss) from continuing operations before provision for income taxes | 1,462 | -2,872 | 4,518 | -4,780 |
Provision for income taxes | -257 | -118 | -284 | -737 |
Income (loss) from continuing operations | 1,205 | -2,990 | 4,234 | -5,517 |
Discontinued operations (Note 10) : | ' | ' | ' | ' |
Gain on sales of discontinued operations net of provision for income taxes of $0, $0, $0, and $97 | 0 | 0 | 0 | 153 |
Net income (loss) | 1,205 | -2,990 | 4,234 | -5,364 |
Basic net income (loss) per share | ' | ' | ' | ' |
Continuing operations | $0.04 | ($0.11) | $0.15 | ($0.20) |
Discontinued operations | $0 | $0 | $0 | $0.01 |
Total | $0.04 | ($0.11) | $0.15 | ($0.19) |
Shares used in calculating basic net income (loss) per share | 28,558 | 27,658 | 28,047 | 27,885 |
Diluted net income (loss) per share | ' | ' | ' | ' |
Continuing operations | $0.04 | ($0.11) | $0.14 | ($0.20) |
Discontinued operations | $0 | $0 | $0 | $0.01 |
Total | $0.04 | ($0.11) | $0.14 | ($0.19) |
Shares used in calculating diluted net income (loss) per share | 29,653 | 27,658 | 29,205 | 27,885 |
Other Comprehensive Income (loss) | ' | ' | ' | ' |
Change in unrealized gains (losses) on short-term investments | 10 | 6 | 6 | -11 |
Total Other Comprehensive Income (loss) | 10 | 6 | 6 | -11 |
Total Comprehensive Income (loss) | $1,215 | ($2,984) | $4,240 | ($5,375) |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Income Statement [Abstract] | ' | ' | ' | ' |
Provision for income taxes | $0 | $0 | $0 | $97 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash flows from operating activities: | ' | ' |
Net income (loss) | $4,234 | ($5,364) |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ' | ' |
Depreciation and amortization of property and equipment | 459 | 490 |
Amortization, abandonment, and impairment of intangibles | 1,364 | 1,071 |
Stock-based compensation | 3,438 | 2,346 |
Allowance (recovery) for doubtful accounts | 7 | 113 |
Loss on disposal of equipment | 12 | 27 |
Gain on sales of discontinued operations | 0 | -153 |
Changes in operating assets and liabilities: | ' | ' |
Accounts and other receivables | 1,577 | -28 |
Inventories | 141 | 64 |
Prepaid expenses and other current assets | -164 | -294 |
Other assets | -58 | -45 |
Accounts payable | 142 | 1,214 |
Accrued compensation and other current liabilities | 1,079 | 622 |
Deferred revenue and customer advances | 5,076 | -1,699 |
Other long-term liabilities | -68 | 339 |
Net cash provided by (used in) operating activities | 17,239 | -1,297 |
Cash flows provided by (used in) used in investing activities: | ' | ' |
Purchases of available-for-sale investments | -71,955 | -29,956 |
Proceeds from maturities of available-for-sale investments | 63,000 | 45,000 |
Additions to intangibles | -2,520 | -2,323 |
Purchases of property and equipment | -174 | -931 |
Proceeds from sales of discontinued operations | 0 | 250 |
Net cash provided by (used in) investing activities | -11,649 | 12,040 |
Cash flows provided by (used in) financing activities: | ' | ' |
Issuance of common stock under employee stock purchase plan | 198 | 122 |
Exercise of stock options | 6,318 | 974 |
Purchase of treasury stock | 0 | -5,248 |
Net cash provided by (used in) financing activities | 6,516 | -4,152 |
Net increase in cash and cash equivalents | 12,106 | 6,591 |
Cash and cash equivalents: | ' | ' |
Beginning of the period | 4,558 | 7,298 |
End of the period | 16,664 | 13,889 |
Supplemental disclosure of cash flow information: | ' | ' |
Cash paid for taxes, net of refunds | 13 | 21 |
Supplemental disclosure of non-cash operating, investing, and financing activities: | ' | ' |
Amounts accrued for property and equipment, and intangibles | 709 | 647 |
Release of Restricted Stock Units and Awards under company stock plan | $3,183 | $1,298 |
Significant_Accounting_Policie
Significant Accounting Policies | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||
Significant Accounting Policies | ' | ||||||||||||
1 | SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Description of Business | |||||||||||||
Immersion Corporation (the “Company”) was incorporated in 1993 in California and reincorporated in Delaware in 1999. It is an intellectual property (“IP”) and technology licensing company that creates, designs, develops, and licenses patented haptic innovations and technologies that allow people to use their sense of touch more fully when operating a wide variety of digital devices. | |||||||||||||
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 Inc.; Immersion International, LLC; Immersion Medical, Inc.; Immersion Japan K.K.; Immersion Ltd.; Immersion Software Ireland Ltd.; and Haptify, Inc. 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, 2012. 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 interim period ended September 30, 2013 are not necessarily indicative of the results to be expected for the full year. | |||||||||||||
Revenue Recognition | |||||||||||||
The Company recognizes revenues in accordance with applicable accounting standards, including Accounting Standards Codification (“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 three principal sources: royalty and license fees, product sales, and development contracts. As described below, management judgments 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. For a stand-alone product sale, the Company requires a purchase order or other form of written agreement with the customer. | ||||||||||||
• | Delivery has occurred. The Company delivers software and product to customers physically and also delivers software electronically. For physical deliveries not related to software, the transfer terms typically include transfer of title and risk of loss at the Company’s shipping location. 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 extended 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 the arrangement fees, which is done on a customer-by-customer basis pursuant to the 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. A majority 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. The Company recognizes fixed license fee revenue for licenses to IP and software when earned under the terms of the agreements, which is generally recognized on a straight-line basis over the expected term of the license. Certain royalties are based upon customer shipments or revenues and could be subject to change and may result in out of period adjustments. | |||||||||||||
Development contracts and other revenue — Development contracts and other revenue are comprised 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 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 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. | |||||||||||||
Product sales — The Company recognizes revenue from the sale of products and the license of associated software, if any, and expenses all related costs of products sold, once delivery has occurred and customer acceptance, if required, has been achieved. The Company typically grants to customers a warranty that guarantees the products will substantially conform to the Company’s current specifications for generally three to twelve months from the delivery date pursuant to the terms of the arrangement. Historically, warranty-related costs have not been significant. | |||||||||||||
Comprehensive Loss | |||||||||||||
Comprehensive loss includes net loss as well as other items of comprehensive income or loss. The Company’s other comprehensive loss consists of foreign currency translation adjustments and unrealized gains and losses on available-for-sale securities, net of tax. The changes in accumulated other comprehensive income (loss) are as below. | |||||||||||||
Nine Months Ended September 30, 2013 | |||||||||||||
Unrealized Gains | Foreign | Total | |||||||||||
and Losses on | Currency | ||||||||||||
Available-for Sale | Items | ||||||||||||
Securities | |||||||||||||
(In thousands) | |||||||||||||
Beginning balance | $ | 8 | $ | 101 | $ | 109 | |||||||
Other comprehensive income (loss) before reclassifications | 6 | 0 | 6 | ||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0 | ||||||||||
Net current period other comprehensive income (loss) | 6 | 0 | 6 | ||||||||||
Ending Balance | $ | 14 | $ | 101 | $ | 115 | |||||||
Recent Accounting Pronouncements | |||||||||||||
In February 2013, the Financial Accounting Standards Board (“FASB”) ratified Accounting Standards Update (“ASU”) 2013-02 “Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Comprehensive Income” (“ASU 2013-02). ASU 2013-02 requires entities to disclose additional information about items reclassified out of accumulated other comprehensive income (“AOCI”) including AOCI balances by component and significant items reclassified out of AOCI. This ASU is effective for reporting periods beginning after December 15, 2012, and is being applied prospectively. These amendments will change the manner in which the Company presents comprehensive income by reporting these additional disclosure items in the condensed consolidated statements of operations and comprehensive loss or footnotes when they occur. | |||||||||||||
In July 2013, the FASB ratified ASU 2013-11 “Presenting an Unrecognized Tax Benefit (“UTB”) When a Net Operating Loss Carryforward Exists” (“ASU 2013-11”). ASU 2013-02 provides that an UTB, or a portion thereof, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except to the extent that a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date to settle any additional income taxes that would result from disallowance of a tax position, or the tax law does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, then the unrecognized tax benefit should be presented as a liability. This ASU is effective for reporting periods beginning after December 15, 2013, and may be applied retrospectively. The Company is required to adopt ASU 2013-11 as of January 1, 2014, and is currently evaluating the potential impact, if any, of the adoption on its consolidated results of operations and financial condition. |
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||
2 | 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 most money market securities. 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 most U.S. treasury securities and most investment-grade corporate commercial paper. | |||||||||||||||||
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. | |||||||||||||||||
Financial instruments measured at fair value on a recurring basis as of September 30, 2013 and December 31, 2012 are classified based on the valuation technique in the table below: | |||||||||||||||||
September 30, 2013 | Total | ||||||||||||||||
Fair value measurements using | |||||||||||||||||
Quoted Prices in | Significant | Significant | |||||||||||||||
Active Markets | Other | Unobservable | |||||||||||||||
for Identical | Observable | Inputs | |||||||||||||||
Assets | Inputs | (Level 3) | |||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||
(In thousands) | |||||||||||||||||
Assets: | |||||||||||||||||
U.S. Treasury securities | $ | 0 | $ | 56,990 | $ | 0 | $ | 56,990 | |||||||||
Money market accounts | 3,064 | 0 | 0 | 3,064 | |||||||||||||
Total assets at fair value | $ | 3,064 | $ | 56,990 | $ | 0 | $ | 60,054 | |||||||||
The above table excludes $4.6 million of cash held in banks. | |||||||||||||||||
December 31, 2012 | Total | ||||||||||||||||
Fair value measurements using | |||||||||||||||||
Quoted Prices in | Significant | Significant | |||||||||||||||
Active Markets | Other | Unobservable | |||||||||||||||
for Identical | Observable | Inputs | |||||||||||||||
Assets (Level 1) | Inputs | (Level 3) | |||||||||||||||
(Level 2) | |||||||||||||||||
(In thousands) | |||||||||||||||||
Assets: | |||||||||||||||||
U.S. Treasury securities | $ | 0 | $ | 38,988 | $ | 0 | $ | 38,988 | |||||||||
Money market accounts | 52 | 0 | 0 | 52 | |||||||||||||
Total assets at fair value | $ | 52 | $ | 38,988 | $ | 0 | $ | 39,040 | |||||||||
The above table excludes $4.5 million of cash held in banks. | |||||||||||||||||
Short-term Investments | |||||||||||||||||
September 30, 2013 | |||||||||||||||||
Amortized | Gross | Gross | Fair | ||||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||
Holding | Holding | ||||||||||||||||
Gains | Losses | ||||||||||||||||
(In thousands) | |||||||||||||||||
U.S. Treasury securities | $ | 47,976 | $ | 14 | $ | 0 | $ | 47,990 | |||||||||
Total | $ | 47,976 | $ | 14 | $ | 0 | $ | 47,990 | |||||||||
December 31, 2012 | |||||||||||||||||
Amortized | Gross | Gross | Fair | ||||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||
Holding | Holding | ||||||||||||||||
Gains | Losses | ||||||||||||||||
(In thousands) | |||||||||||||||||
U.S. Treasury securities | $ | 38,980 | $ | 8 | $ | 0 | $ | 38,988 | |||||||||
Total | $ | 38,980 | $ | 8 | $ | 0 | $ | 38,988 | |||||||||
The contractual maturities of the Company’s available-for-sale securities on September 30, 2013 and December 31, 2012 were all due within one year. |
Accounts_and_Other_Receivables
Accounts and Other Receivables | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Receivables [Abstract] | ' | ||||||||
Accounts and Other Receivables | ' | ||||||||
3 | ACCOUNTS AND OTHER RECEIVABLES | ||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
(In thousands) | |||||||||
Trade accounts receivable | $ | 38 | $ | 1,528 | |||||
Receivables from vendors and other | 256 | 350 | |||||||
Accounts and other receivables | $ | 294 | $ | 1,878 | |||||
Inventories
Inventories | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventories | ' | ||||||||
4 | INVENTORIES | ||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
(In thousands) | |||||||||
Raw materials and subassemblies | $ | 0 | $ | 138 | |||||
Finished goods | 0 | 3 | |||||||
Inventories | $ | 0 | $ | 141 | |||||
Property_and_Equipment
Property and Equipment | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Property Plant And Equipment [Abstract] | ' | ||||||||
Property and Equipment | ' | ||||||||
5 | PROPERTY AND EQUIPMENT | ||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
(In thousands) | |||||||||
Computer equipment and purchased software | $ | 3,573 | $ | 3,748 | |||||
Machinery and equipment | 704 | 654 | |||||||
Furniture and fixtures | 578 | 546 | |||||||
Leasehold improvements | 905 | 884 | |||||||
Total | 5,760 | 5,832 | |||||||
Less accumulated depreciation | (4,776 | ) | (4,551 | ) | |||||
Property and equipment, net | $ | 984 | $ | 1,281 | |||||
Intangibles_and_Other_Assets
Intangibles and Other Assets | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Text Block [Abstract] | ' | ||||||||||||||||
Intangibles and Other Assets | ' | ||||||||||||||||
6 | INTANGIBLES AND OTHER ASSETS | ||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
(In thousands) | |||||||||||||||||
Patents and trademarks | $ | 28,357 | $ | 26,206 | |||||||||||||
Other assets | 208 | 192 | |||||||||||||||
Gross intangibles and other assets | 28,565 | 26,398 | |||||||||||||||
Accumulated amortization of patents and trademarks | (11,400 | ) | (10,673 | ) | |||||||||||||
Intangibles and other assets, net | $ | 17,165 | $ | 15,725 | |||||||||||||
The Company amortizes its intangible assets related to patents and trademarks, over their estimated useful lives, generally 10 years from the date of issuance of the patents and trademarks. Amortization of intangibles excluding abandonments or impairments was as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||
Amortization of Intangibles - excluding impairments or abandonments | $ | 318 | $ | 264 | $ | 935 | $ | 777 | |||||||||
The table below includes estimated remaining annual amortization expense for issued patents and trademarks as of September 30, 2013. | |||||||||||||||||
Estimated | |||||||||||||||||
Amortization | |||||||||||||||||
Expense | |||||||||||||||||
(In thousands) | |||||||||||||||||
Remainder of 2013 | $ | 323 | |||||||||||||||
2014 | 1,198 | ||||||||||||||||
2015 | 1,093 | ||||||||||||||||
2016 | 999 | ||||||||||||||||
2017 | 870 | ||||||||||||||||
Thereafter | 2,739 | ||||||||||||||||
Total | $ | 7,222 | |||||||||||||||
Patents in process included in patents and trademarks were as follows: | |||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
(In thousands) | |||||||||||||||||
Patents in process | $ | 9,735 | $ | 9,270 | |||||||||||||
Upon issuance, in process patents will be amortized over their estimated useful lives, generally 10 years. |
Components_of_Other_Current_Li
Components of Other Current Liabilities and Deferred Revenue and Customer Advances | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Text Block [Abstract] | ' | ||||||||
Components of Other Current Liabilities and Deferred Revenue and Customer Advances | ' | ||||||||
7 | COMPONENTS OF OTHER CURRENT LIABILITIES AND DEFERRED REVENUE AND CUSTOMER ADVANCES | ||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
(In thousands) | |||||||||
Accrued legal | $ | 723 | $ | 410 | |||||
Income taxes payable | 26 | 30 | |||||||
Other current liabilities | 630 | 582 | |||||||
Total other current liabilities | $ | 1,379 | $ | 1,022 | |||||
Deferred revenue | $ | 11,186 | $ | 3,920 | |||||
Customer advances | 0 | 14 | |||||||
Total deferred revenue and customer advances | $ | 11,186 | $ | 3,934 | |||||
LongTerm_Deferred_Revenue
Long-Term Deferred Revenue | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Deferred Revenue Disclosure [Abstract] | ' | ||||||||
Long-Term Deferred Revenue | ' | ||||||||
8 | LONG-TERM DEFERRED REVENUE | ||||||||
Long-term deferred revenue consisted of the following: | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
(In thousands) | |||||||||
Deferred revenue for Sony Computer Entertainment | $ | 7,388 | $ | 9,636 | |||||
Other deferred revenue | 657 | 585 | |||||||
Long-term deferred revenue | $ | 8,045 | $ | 10,221 | |||||
StockBased_Compensation
Stock-Based Compensation | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||||||
Stock-Based Compensation | ' | ||||||||||||||||
9 | 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 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 these programs, 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 4 years and expire from 5 to 10 years from the date of grant. Restricted stock generally vests over one year. RSUs generally vest over 3 years. Awards granted other than an option or stock appreciation right shall reduce the common stock shares available for grant by 1.75 shares for every share issued. | |||||||||||||||||
September 30, | |||||||||||||||||
2013 | |||||||||||||||||
Common stock shares available for grant | 1,800,151 | ||||||||||||||||
Common stock options outstanding | 3,225,204 | ||||||||||||||||
Restricted stock awards outstanding | 44,000 | ||||||||||||||||
Restricted stock units outstanding | 710,723 | ||||||||||||||||
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 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 have been reserved for issuance under the ESPP. As of September 30, 2013, 519,440 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, 2013 are listed below. Shares purchased under the ESPP for the nine months ended September 30, 2012 are 25,628. 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, | |||||||||||||||||
2013 | |||||||||||||||||
Shares purchased under ESPP | 36,921 | ||||||||||||||||
Average price of shares purchased under ESPP | $ | 5.36 | |||||||||||||||
Intrinsic value of shares purchased under ESPP | $ | 210,984 | |||||||||||||||
Summary of Stock Options | |||||||||||||||||
The following table sets forth the summary of option activity under the Company’s stock option plans for the nine months ended September 30, 2013 and year ended December 31, 2012: | |||||||||||||||||
Nine Months | Year | ||||||||||||||||
Ended | Ended | ||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Beginning outstanding balance | 3,155,631 | 3,267,838 | |||||||||||||||
Granted | 1,036,900 | 425,150 | |||||||||||||||
Exercised | (943,609 | ) | (231,403 | ) | |||||||||||||
Forfeited and cancelled | (23,718 | ) | (305,954 | ) | |||||||||||||
Ending outstanding balance | 3,225,204 | 3,155,631 | |||||||||||||||
Aggregate intrinsic value of options exercised | $ | 5,694,000 | $ | 443,000 | |||||||||||||
Weighted average fair value of options granted | 5.61 | 3.35 | |||||||||||||||
The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the quoted price of the Company’s common stock for the options that were in-the-money. | |||||||||||||||||
Information regarding stock options outstanding at September 30, 2013 and December 31, 2012 is summarized below: | |||||||||||||||||
Number of | Weighted | Weighted | Aggregate | ||||||||||||||
Shares | Average | Average | Intrinsic | ||||||||||||||
Exercise | Remaining | Value | |||||||||||||||
Price | Contractual | (In millions) | |||||||||||||||
Life (years) | |||||||||||||||||
December 31, 2012 | |||||||||||||||||
Options outstanding | 3,155,631 | $ | 6.65 | 5.24 | $ | 3.5 | |||||||||||
Options vested and expected to vest using estimated forfeiture rates | 3,019,979 | 6.67 | 5.17 | 3.4 | |||||||||||||
Options exercisable | 2,329,987 | 6.91 | 4.69 | 2.5 | |||||||||||||
September 30, 2013 | |||||||||||||||||
Options outstanding | 3,225,204 | $ | 7.74 | 5.7 | $ | 18.2 | |||||||||||
Options vested and expected to vest using estimated forfeiture rates | 2,953,946 | 7.56 | 5.64 | 17.2 | |||||||||||||
Options exercisable | 1,692,770 | 6.7 | 5.13 | 11.4 | |||||||||||||
Summary of Restricted Stock Units | |||||||||||||||||
RSU activity for the nine months ended September 30, 2013 and year ended December 31, 2012 was as follows: | |||||||||||||||||
Nine Months | Year | ||||||||||||||||
Ended | Ended | ||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Beginning outstanding balance | 708,651 | 407,765 | |||||||||||||||
Awarded | 294,150 | 555,911 | |||||||||||||||
Released | (278,548 | ) | (203,519 | ) | |||||||||||||
Forfeited | (13,530 | ) | (51,506 | ) | |||||||||||||
Ending outstanding balance | 710,723 | 708,651 | |||||||||||||||
Weighted average grant date fair value of RSUs granted | $ | 7.12 | $ | 6.64 | |||||||||||||
Total fair value of RSUs released | 2,507,000 | 1,128,000 | |||||||||||||||
Total fair value of RSUs remaining unvested | 9,382,000 | 4,868,000 | |||||||||||||||
Information regarding RSUs outstanding at September 30, 2013 and December 31, 2012 is summarized below: | |||||||||||||||||
Number of | Weighted | Aggregate | Fair | ||||||||||||||
Shares | Average | Intrinsic | Value | ||||||||||||||
Remaining | Value | (In millions) | |||||||||||||||
Contractual | (In millions) | ||||||||||||||||
Life (years) | |||||||||||||||||
December 31, 2012 | |||||||||||||||||
RSUs outstanding | 708,651 | 1.09 | $ | 4.9 | $ | 4.9 | |||||||||||
RSUs vested and expected to vest using estimated forfeiture rates | 588,170 | 1.05 | 4 | ||||||||||||||
September 30, 2013 | |||||||||||||||||
RSUs outstanding | 710,723 | 1.12 | $ | 9.4 | $ | 9.4 | |||||||||||
RSUs vested and expected to vest using estimated forfeiture rates | 599,840 | 1.1 | 7.9 | ||||||||||||||
Summary of Restricted Stock Awards | |||||||||||||||||
Restricted stock award activity for the nine months ended September 30, 2013 and year ended December 31, 2012 was as follows: | |||||||||||||||||
Nine Months | Year | ||||||||||||||||
Ended | Ended | ||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Beginning outstanding balance | 44,000 | 18,000 | |||||||||||||||
Awarded | 44,000 | 57,750 | |||||||||||||||
Released | (44,000 | ) | (31,750 | ) | |||||||||||||
Forfeited | 0 | 0 | |||||||||||||||
Ending outstanding balance | 44,000 | 44,000 | |||||||||||||||
Weighted average grant date fair value of restricted stock awarded | $ | 14.09 | $ | 5.7 | |||||||||||||
Total fair value of restricted stock awards released | 620,000 | 171,000 | |||||||||||||||
Stock Plan Assumptions | |||||||||||||||||
The assumptions used to value option grants under the Company’s Stock Plans were as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Options | |||||||||||||||||
Expected life (in years) | 4.7 | 4.5 | 4.9 | 4.5 | |||||||||||||
Volatility | 64 | % | 68 | % | 68 | % | 70 | % | |||||||||
Interest rate | 1.3 | % | 0.6 | % | 0.8 | % | 0.7 | % | |||||||||
Dividend yield | N/A | N/A | N/A | N/A | |||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Employee Stock Purchase Plan | |||||||||||||||||
Expected life (in years) | 0.5 | 0.5 | 0.5 | 0.5 | |||||||||||||
Volatility | 69 | % | 52 | % | 67 | % | 62 | % | |||||||||
Interest rate | 0.8 | % | 0.1 | % | 0.1 | % | 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 income (loss) is as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||
Statement of Operations Classifications | |||||||||||||||||
Sales and marketing | $ | 223 | $ | 152 | $ | 496 | $ | 376 | |||||||||
Research and development | 231 | 173 | 807 | 586 | |||||||||||||
General and administrative | 795 | 483 | 2,135 | 1,384 | |||||||||||||
Total | $ | 1,249 | $ | 808 | $ | 3,438 | $ | 2,346 | |||||||||
As of September 30, 2013, there was $8.8 million related to stock options, restricted stock awards, and RSUs of unrecognized compensation cost, adjusted for estimated forfeitures, granted to the Company’s employees and directors. This cost will be recognized over an estimated weighted-average period of approximately 3.46 years for options, 1.84 years for RSUs, and 0.68 years for restricted stock awards. Total unrecognized compensation cost will be adjusted for future changes in estimated forfeitures. | |||||||||||||||||
Stock Repurchase Program | |||||||||||||||||
On November 1, 2007, the Company announced its Board of Directors authorized the repurchase of up to $50 million of the Company’s common stock. The Company may repurchase its 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, 2013 there were no stock repurchases under this program, but the program currently remains available. During the three months ended September 30, 2012, the Company repurchased 581,200 shares for $3.2 million at an average cost of $5.51, net of transaction costs through open market repurchases. During the nine months ended September 30, 2012, the Company repurchased 968,488 shares for $5.2 million at an average cost of $5.42, net of transaction costs through open market repurchases. |
Discontinued_Operations
Discontinued Operations | 9 Months Ended | |
Sep. 30, 2013 | ||
Discontinued Operations And Disposal Groups [Abstract] | ' | |
Discontinued Operations | ' | |
10 | DISCONTINUED OPERATIONS | |
During 2009, the Company sold all of 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. The consideration for the sales was $2.7 million in the form of cash of $320,000 and notes receivable of $2.4 million payable through 2013, for which the proceeds are being recognized when they are received. The Company has abandoned all other 3D operations. Accordingly, the operations of the 3D product line have been classified as discontinued operations, net of income tax, in the condensed consolidated statement of operations for all periods presented. The assets sold consisted primarily of intangible assets that had no carrying value on the Company’s books at the time of sale. In the three months and nine months ended September 30, 2013 and the three months ended September 30, 2012, the Company recorded no gains on sales of discontinued operations from payments on notes from the sale of the 3D product line. In the nine months ended September 30, 2012, the Company recorded gains on sales of discontinued operations net of tax of $153,000 from payments on notes from the sale of the 3D product line. |
Income_Taxes
Income Taxes | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||||||
Income Taxes | ' | ||||||||||||||||
11 | INCOME TAXES | ||||||||||||||||
Income tax provisions from continuing operations consisted of the following: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||
Income (loss) from continuing operations before provision for income taxes | $ | 1,462 | $ | (2,872 | ) | $ | 4,518 | $ | (4,780 | ) | |||||||
Provision for income taxes | (257 | ) | (118 | ) | (284 | ) | (737 | ) | |||||||||
Effective tax rate | 17.6 | % | (4.1 | )% | 6.3 | % | (15.4 | )% | |||||||||
The effective tax rates differ from the statutory rate primarily due to the valuation allowance, foreign withholding taxes, and unrecognized tax benefits. The income tax provisions for the three months and nine months ended September 30, 2013 are primarily as a result of estimated state taxes and foreign withholding tax expense. The income tax provisions for the three months and nine months ended September 30, 2012 are primarily as a result of foreign withholding tax expense. | |||||||||||||||||
As of September 30, 2013, the Company had unrecognized tax benefits under ASC 740 “Income Taxes” of approximately $689,000, including interest of $62,000. The total amount of unrecognized tax benefits that would affect the Company’s effective tax rate, if recognized, was $261,000. There were no material changes in the amount of unrecognized tax benefits during the nine months ended September 30, 2013. The Company expects to release reserves and record a tax benefit due to the expiration of the statute of limitations during the next three months. The Company’s policy is to account for interest and penalties related to uncertain tax positions as a component of income tax provision. | |||||||||||||||||
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 for all its deferred tax assets at September 30, 2013 as a result of uncertainties regarding the realization of the asset balance due to historical losses, the variability of operating results, and uncertainty regarding near term projected results. As of the quarter ended September 30, 2013, the Company remained in a three-year cumulative pre-tax loss position. Based on current projections, and barring any one-time adjustments, the Company expects to be in a three-year cumulative pre-tax income position by December 31, 2013. The Company expects to complete a full evaluation of the realizability of its deferred tax assets by the end of the current fiscal year. In the event that the Company determines the deferred tax assets are realizable based on its assessment of relevant factors, an adjustment to the valuation allowance may increase income in the period such determination is made. The valuation allowance does not impact the Company’s ability to utilize the underlying net operating loss carryforwards. |
Net_Income_Loss_Per_Share
Net Income (Loss) Per Share | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Net Income (Loss) Per Share | ' | ||||||||||||||||
12 | NET INCOME (LOSS) PER SHARE | ||||||||||||||||
Basic 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. Diluted net income (loss) per share is based upon the weighted average common shares outstanding for the period plus dilutive potential shares including unvested restricted stock, RSUs, and stock options using the treasury stock method. The following is a reconciliation of the numerators and denominators used in computing basic and diluted net income (loss) per share: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(in thousands except per share amounts) | |||||||||||||||||
Numerator: | |||||||||||||||||
Income (loss) from continuing operations | $ | 1,205 | $ | (2,990 | ) | $ | 4,234 | $ | (5,517 | ) | |||||||
Gain from discontinued operations, net of tax | 0 | 0 | 0 | 153 | |||||||||||||
Net income (loss) used in computing basic and diluted net income (loss) per share | $ | 1,205 | $ | (2,990 | ) | $ | 4,234 | $ | (5,364 | ) | |||||||
Denominator: | |||||||||||||||||
Shares used in computation of basic net income (loss) per share (weighted average common shares outstanding) | 28,558 | 27,658 | 28,047 | 27,885 | |||||||||||||
Dilutive potential common shares: | |||||||||||||||||
Restricted Stock and RSUs | 302 | 0 | 333 | 0 | |||||||||||||
Stock options | 793 | 0 | 825 | 0 | |||||||||||||
Shares used in computation of diluted net income (loss) per share | 29,653 | 27,658 | 29,205 | 27,885 | |||||||||||||
Basic net income (loss) per share from: | |||||||||||||||||
Continuing operations | $ | 0.04 | $ | (0.11 | ) | $ | 0.15 | $ | (0.20 | ) | |||||||
Discontinued operations | 0 | 0 | 0 | 0.01 | |||||||||||||
Total | $ | 0.04 | $ | (0.11 | ) | $ | 0.15 | $ | (0.19 | ) | |||||||
Diluted net income (loss) per share: | |||||||||||||||||
Continuing operations | $ | 0.04 | $ | (0.11 | ) | $ | 0.14 | $ | (0.20 | ) | |||||||
Discontinued operations | 0 | 0 | 0 | 0.01 | |||||||||||||
Total | $ | 0.04 | $ | (0.11 | ) | $ | 0.14 | $ | (0.19 | ) | |||||||
For the three months and nine months ended September 30, 2013, options to purchase approximately 1.2 million and 902,000 shares of common stock, respectively, with exercise prices greater than the average fair market value of the Company’s stock of $13.72 and $11.53 per share, respectively, were not included in the calculation because the effect would have been anti-dilutive. | |||||||||||||||||
As of September 30, 2012, 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 three and nine months ended September 30, 2012, since their effect would have been anti-dilutive. These outstanding securities consisted of the following: | |||||||||||||||||
September 30, | |||||||||||||||||
2012 | |||||||||||||||||
Outstanding stock options | 3,099,155 | ||||||||||||||||
Unvested restricted stock awards | 44,000 | ||||||||||||||||
Unvested RSUs | 676,755 |
Contingencies
Contingencies | 9 Months Ended | |
Sep. 30, 2013 | ||
Commitments And Contingencies Disclosure [Abstract] | ' | |
Contingencies | ' | |
13 | CONTINGENCIES | |
In re Immersion Corporation Securities Litigation | ||
In September and October 2009, various putative shareholder class action and derivative complaints were filed in federal and state court against the Company and certain current and former Immersion directors and officers. | ||
On September 2, 2009, a securities class action complaint was filed in the United States District Court for the Northern District of California against the Company and certain of its current and former directors and officers. Over the following five weeks, four additional class action complaints were filed. (One of these four actions was later voluntarily dismissed.) The securities class action complaints name the Company and certain current and former Immersion directors and officers as defendants and allege violations of federal securities laws based on the Company’s issuance of allegedly misleading financial statements. The various complaints assert claims covering the period from May 2007 through July 2009 and seek compensatory damages allegedly sustained by the purported class members. | ||
On December 21, 2009, these class actions were consolidated by the court as In Re Immersion Corporation Securities Litigation. On the same day, the court appointed a lead plaintiff and lead plaintiff’s counsel. Following the Company’s restatement of its financial statements, lead plaintiff filed a consolidated complaint on April 9, 2010. Defendants moved to dismiss the action on June 15, 2010 and that motion was granted with leave to amend on March 11, 2011. Lead plaintiff filed an amended complaint on April 29, 2011. Defendants moved to dismiss the amended complaint on July 1, 2011. On December 16, 2011, the motion to dismiss was granted with prejudice and on December 19, 2011, judgment was entered in favor of defendants. On January 13, 2012, the plaintiffs filed a notice of appeal to the Ninth Circuit Court of Appeals. In May 2012, plaintiff filed his opening appeals brief. On July 13, 2012, the Company filed its response brief. On September 4, 2012, plaintiff filed his reply. | ||
Other 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 indemnifications 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_Policie1
Significant Accounting Policies (Policies) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||
Description of Business | ' | ||||||||||||
Description of Business | |||||||||||||
Immersion Corporation (the “Company”) was incorporated in 1993 in California and reincorporated in Delaware in 1999. It is an intellectual property (“IP”) and technology licensing company that creates, designs, develops, and licenses patented haptic innovations and technologies that allow people to use their sense of touch more fully when operating a wide variety of digital devices. | |||||||||||||
Principles of Consolidation and Basis of Presentation | ' | ||||||||||||
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 Inc.; Immersion International, LLC; Immersion Medical, Inc.; Immersion Japan K.K.; Immersion Ltd.; Immersion Software Ireland Ltd.; and Haptify, Inc. 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, 2012. 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 interim period ended September 30, 2013 are not necessarily indicative of the results to be expected for the full year. | |||||||||||||
Revenue Recognition | ' | ||||||||||||
Revenue Recognition | |||||||||||||
The Company recognizes revenues in accordance with applicable accounting standards, including Accounting Standards Codification (“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 three principal sources: royalty and license fees, product sales, and development contracts. As described below, management judgments 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. For a stand-alone product sale, the Company requires a purchase order or other form of written agreement with the customer. | ||||||||||||
• | Delivery has occurred. The Company delivers software and product to customers physically and also delivers software electronically. For physical deliveries not related to software, the transfer terms typically include transfer of title and risk of loss at the Company’s shipping location. 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 extended 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 the arrangement fees, which is done on a customer-by-customer basis pursuant to the 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. A majority 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. The Company recognizes fixed license fee revenue for licenses to IP and software when earned under the terms of the agreements, which is generally recognized on a straight-line basis over the expected term of the license. Certain royalties are based upon customer shipments or revenues and could be subject to change and may result in out of period adjustments. | |||||||||||||
Development contracts and other revenue — Development contracts and other revenue are comprised 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 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 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. | |||||||||||||
Product sales — The Company recognizes revenue from the sale of products and the license of associated software, if any, and expenses all related costs of products sold, once delivery has occurred and customer acceptance, if required, has been achieved. The Company typically grants to customers a warranty that guarantees the products will substantially conform to the Company’s current specifications for generally three to twelve months from the delivery date pursuant to the terms of the arrangement. Historically, warranty-related costs have not been significant. | |||||||||||||
Comprehensive Loss | ' | ||||||||||||
Comprehensive Loss | |||||||||||||
Comprehensive loss includes net loss as well as other items of comprehensive income or loss. The Company’s other comprehensive loss consists of foreign currency translation adjustments and unrealized gains and losses on available-for-sale securities, net of tax. The changes in accumulated other comprehensive income (loss) are as below. | |||||||||||||
Nine Months Ended September 30, 2013 | |||||||||||||
Unrealized Gains | Foreign | Total | |||||||||||
and Losses on | Currency | ||||||||||||
Available-for Sale | Items | ||||||||||||
Securities | |||||||||||||
(In thousands) | |||||||||||||
Beginning balance | $ | 8 | $ | 101 | $ | 109 | |||||||
Other comprehensive income (loss) before reclassifications | 6 | 0 | 6 | ||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0 | ||||||||||
Net current period other comprehensive income (loss) | 6 | 0 | 6 | ||||||||||
Ending Balance | $ | 14 | $ | 101 | $ | 115 | |||||||
Recent Accounting Pronouncements | ' | ||||||||||||
Recent Accounting Pronouncements | |||||||||||||
In February 2013, the Financial Accounting Standards Board (“FASB”) ratified Accounting Standards Update (“ASU”) 2013-02 “Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Comprehensive Income” (“ASU 2013-02). ASU 2013-02 requires entities to disclose additional information about items reclassified out of accumulated other comprehensive income (“AOCI”) including AOCI balances by component and significant items reclassified out of AOCI. This ASU is effective for reporting periods beginning after December 15, 2012, and is being applied prospectively. These amendments will change the manner in which the Company presents comprehensive income by reporting these additional disclosure items in the condensed consolidated statements of operations and comprehensive loss or footnotes when they occur. | |||||||||||||
In July 2013, the FASB ratified ASU 2013-11 “Presenting an Unrecognized Tax Benefit (“UTB”) When a Net Operating Loss Carryforward Exists” (“ASU 2013-11”). ASU 2013-02 provides that an UTB, or a portion thereof, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except to the extent that a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date to settle any additional income taxes that would result from disallowance of a tax position, or the tax law does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, then the unrecognized tax benefit should be presented as a liability. This ASU is effective for reporting periods beginning after December 15, 2013, and may be applied retrospectively. The Company is required to adopt ASU 2013-11 as of January 1, 2014, and is currently evaluating the potential impact, if any, of the adoption on its consolidated results of operations and financial condition. |
Significant_Accounting_Policie2
Significant Accounting Policies (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||
Changes in Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||||
The changes in accumulated other comprehensive income (loss) are as below. | |||||||||||||
Nine Months Ended September 30, 2013 | |||||||||||||
Unrealized Gains | Foreign | Total | |||||||||||
and Losses on | Currency | ||||||||||||
Available-for Sale | Items | ||||||||||||
Securities | |||||||||||||
(In thousands) | |||||||||||||
Beginning balance | $ | 8 | $ | 101 | $ | 109 | |||||||
Other comprehensive income (loss) before reclassifications | 6 | 0 | 6 | ||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0 | ||||||||||
Net current period other comprehensive income (loss) | 6 | 0 | 6 | ||||||||||
Ending Balance | $ | 14 | $ | 101 | $ | 115 |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
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, 2013 and December 31, 2012 are classified based on the valuation technique in the table below: | |||||||||||||||||
September 30, 2013 | Total | ||||||||||||||||
Fair value measurements using | |||||||||||||||||
Quoted Prices in | Significant | Significant | |||||||||||||||
Active Markets | Other | Unobservable | |||||||||||||||
for Identical | Observable | Inputs | |||||||||||||||
Assets | Inputs | (Level 3) | |||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||
(In thousands) | |||||||||||||||||
Assets: | |||||||||||||||||
U.S. Treasury securities | $ | 0 | $ | 56,990 | $ | 0 | $ | 56,990 | |||||||||
Money market accounts | 3,064 | 0 | 0 | 3,064 | |||||||||||||
Total assets at fair value | $ | 3,064 | $ | 56,990 | $ | 0 | $ | 60,054 | |||||||||
The above table excludes $4.6 million of cash held in banks. | |||||||||||||||||
December 31, 2012 | Total | ||||||||||||||||
Fair value measurements using | |||||||||||||||||
Quoted Prices in | Significant | Significant | |||||||||||||||
Active Markets | Other | Unobservable | |||||||||||||||
for Identical | Observable | Inputs | |||||||||||||||
Assets (Level 1) | Inputs | (Level 3) | |||||||||||||||
(Level 2) | |||||||||||||||||
(In thousands) | |||||||||||||||||
Assets: | |||||||||||||||||
U.S. Treasury securities | $ | 0 | $ | 38,988 | $ | 0 | $ | 38,988 | |||||||||
Money market accounts | 52 | 0 | 0 | 52 | |||||||||||||
Total assets at fair value | $ | 52 | $ | 38,988 | $ | 0 | $ | 39,040 | |||||||||
The above table excludes $4.5 million of cash held in banks. | |||||||||||||||||
Schedule of Short-Term Investments | ' | ||||||||||||||||
Short-term Investments | |||||||||||||||||
September 30, 2013 | |||||||||||||||||
Amortized | Gross | Gross | Fair Value | ||||||||||||||
Cost | Unrealized | Unrealized | |||||||||||||||
Holding | Holding | ||||||||||||||||
Gains | Losses | ||||||||||||||||
(In thousands) | |||||||||||||||||
U.S. Treasury securities | $ | 47,976 | $ | 14 | $ | 0 | $ | 47,990 | |||||||||
Total | $ | 47,976 | $ | 14 | $ | 0 | $ | 47,990 | |||||||||
December 31, 2012 | |||||||||||||||||
Amortized | Gross | Gross | Fair Value | ||||||||||||||
Cost | Unrealized | Unrealized | |||||||||||||||
Holding | Holding | ||||||||||||||||
Gains | Losses | ||||||||||||||||
(In thousands) | |||||||||||||||||
U.S. Treasury securities | $ | 38,980 | $ | 8 | $ | 0 | $ | 38,988 | |||||||||
Total | $ | 38,980 | $ | 8 | $ | 0 | $ | 38,988 | |||||||||
Accounts_and_Other_Receivables1
Accounts and Other Receivables (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Receivables [Abstract] | ' | ||||||||
Schedule of Accounts and Other Receivables | ' | ||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
(In thousands) | |||||||||
Trade accounts receivable | $ | 38 | $ | 1,528 | |||||
Receivables from vendors and other | 256 | 350 | |||||||
Accounts and other receivables | $ | 294 | $ | 1,878 | |||||
Inventories_Tables
Inventories (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Schedule of Inventories | ' | ||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
(In thousands) | |||||||||
Raw materials and subassemblies | $ | 0 | $ | 138 | |||||
Finished goods | 0 | 3 | |||||||
Inventories | $ | 0 | $ | 141 | |||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Property Plant And Equipment [Abstract] | ' | ||||||||
Schedule of Property and Equipment | ' | ||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
(In thousands) | |||||||||
Computer equipment and purchased software | $ | 3,573 | $ | 3,748 | |||||
Machinery and equipment | 704 | 654 | |||||||
Furniture and fixtures | 578 | 546 | |||||||
Leasehold improvements | 905 | 884 | |||||||
Total | 5,760 | 5,832 | |||||||
Less accumulated depreciation | (4,776 | ) | (4,551 | ) | |||||
Property and equipment, net | $ | 984 | $ | 1,281 | |||||
Intangibles_and_Other_Assets_T
Intangibles and Other Assets (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Text Block [Abstract] | ' | ||||||||||||||||
Schedule of Intangibles and Other Assets | ' | ||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
(In thousands) | |||||||||||||||||
Patents and trademarks | $ | 28,357 | $ | 26,206 | |||||||||||||
Other assets | 208 | 192 | |||||||||||||||
Gross intangibles and other assets | 28,565 | 26,398 | |||||||||||||||
Accumulated amortization of patents and trademarks | (11,400 | ) | (10,673 | ) | |||||||||||||
Intangibles and other assets, net | $ | 17,165 | $ | 15,725 | |||||||||||||
Schedule of Amortization of Intangibles Excluding Impairments or Abandonments | ' | ||||||||||||||||
Amortization of intangibles excluding abandonments or impairments was as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||
Amortization of Intangibles - excluding impairments or abandonments | $ | 318 | $ | 264 | $ | 935 | $ | 777 | |||||||||
Schedule of Estimated Remaining Annual Amortization Expense for Issued Patents and Trademarks | ' | ||||||||||||||||
The table below includes estimated remaining annual amortization expense for issued patents and trademarks as of September 30, 2013. | |||||||||||||||||
Estimated | |||||||||||||||||
Amortization | |||||||||||||||||
Expense | |||||||||||||||||
(In thousands) | |||||||||||||||||
Remainder of 2013 | $ | 323 | |||||||||||||||
2014 | 1,198 | ||||||||||||||||
2015 | 1,093 | ||||||||||||||||
2016 | 999 | ||||||||||||||||
2017 | 870 | ||||||||||||||||
Thereafter | 2,739 | ||||||||||||||||
Total | $ | 7,222 | |||||||||||||||
Schedule of Patents in Process | ' | ||||||||||||||||
Patents in process included in patents and trademarks were as follows: | |||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
(In thousands) | |||||||||||||||||
Patents in process | $ | 9,735 | $ | 9,270 | |||||||||||||
Components_of_Other_Current_Li1
Components of Other Current Liabilities and Deferred Revenue and Customer Advances (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Text Block [Abstract] | ' | ||||||||
Schedule of Other Current Liabilities and Deferred Revenue and Customer Advances | ' | ||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
(In thousands) | |||||||||
Accrued legal | $ | 723 | $ | 410 | |||||
Income taxes payable | 26 | 30 | |||||||
Other current liabilities | 630 | 582 | |||||||
Total other current liabilities | $ | 1,379 | $ | 1,022 | |||||
Deferred revenue | $ | 11,186 | $ | 3,920 | |||||
Customer advances | 0 | 14 | |||||||
Total deferred revenue and customer advances | $ | 11,186 | $ | 3,934 | |||||
LongTerm_Deferred_Revenue_Tabl
Long-Term Deferred Revenue (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Deferred Revenue Disclosure [Abstract] | ' | ||||||||
Schedule of Long-Term Deferred Revenue | ' | ||||||||
Long-term deferred revenue consisted of the following: | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
(In thousands) | |||||||||
Deferred revenue for Sony Computer Entertainment | $ | 7,388 | $ | 9,636 | |||||
Other deferred revenue | 657 | 585 | |||||||
Long-term deferred revenue | $ | 8,045 | $ | 10,221 | |||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||||||
Schedule of Stock Options and Awards | ' | ||||||||||||||||
September 30, | |||||||||||||||||
2013 | |||||||||||||||||
Common stock shares available for grant | 1,800,151 | ||||||||||||||||
Common stock options outstanding | 3,225,204 | ||||||||||||||||
Restricted stock awards outstanding | 44,000 | ||||||||||||||||
Restricted stock units outstanding | 710,723 | ||||||||||||||||
Schedule of Employee Stock Purchase Plan | ' | ||||||||||||||||
Nine Months | |||||||||||||||||
Ended | |||||||||||||||||
September 30, | |||||||||||||||||
2013 | |||||||||||||||||
Shares purchased under ESPP | 36,921 | ||||||||||||||||
Average price of shares purchased under ESPP | $ | 5.36 | |||||||||||||||
Intrinsic value of shares purchased under ESPP | $ | 210,984 | |||||||||||||||
Schedule of Stock Options Activity | ' | ||||||||||||||||
The following table sets forth the summary of option activity under the Company’s stock option plans for the nine months ended September 30, 2013 and year ended December 31, 2012: | |||||||||||||||||
Nine Months | Year | ||||||||||||||||
Ended | Ended | ||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Beginning outstanding balance | 3,155,631 | 3,267,838 | |||||||||||||||
Granted | 1,036,900 | 425,150 | |||||||||||||||
Exercised | (943,609 | ) | (231,403 | ) | |||||||||||||
Forfeited and cancelled | (23,718 | ) | (305,954 | ) | |||||||||||||
Ending outstanding balance | 3,225,204 | 3,155,631 | |||||||||||||||
Aggregate intrinsic value of options exercised | $ | 5,694,000 | $ | 443,000 | |||||||||||||
Weighted average fair value of options granted | 5.61 | 3.35 | |||||||||||||||
Schedule of Information Regarding Stock Options Outstanding | ' | ||||||||||||||||
Information regarding stock options outstanding at September 30, 2013 and December 31, 2012 is summarized below: | |||||||||||||||||
Number of | Weighted | Weighted | Aggregate | ||||||||||||||
Shares | Average | Average | Intrinsic | ||||||||||||||
Exercise | Remaining | Value | |||||||||||||||
Price | Contractual | (In millions) | |||||||||||||||
Life (years) | |||||||||||||||||
December 31, 2012 | |||||||||||||||||
Options outstanding | 3,155,631 | $ | 6.65 | 5.24 | $ | 3.5 | |||||||||||
Options vested and expected to vest using estimated forfeiture rates | 3,019,979 | 6.67 | 5.17 | 3.4 | |||||||||||||
Options exercisable | 2,329,987 | 6.91 | 4.69 | 2.5 | |||||||||||||
September 30, 2013 | |||||||||||||||||
Options outstanding | 3,225,204 | $ | 7.74 | 5.7 | $ | 18.2 | |||||||||||
Options vested and expected to vest using estimated forfeiture rates | 2,953,946 | 7.56 | 5.64 | 17.2 | |||||||||||||
Options exercisable | 1,692,770 | 6.7 | 5.13 | 11.4 | |||||||||||||
Schedule of Restricted Stock Units Activity | ' | ||||||||||||||||
RSU activity for the nine months ended September 30, 2013 and year ended December 31, 2012 was as follows: | |||||||||||||||||
Nine Months | Year | ||||||||||||||||
Ended | Ended | ||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Beginning outstanding balance | 708,651 | 407,765 | |||||||||||||||
Awarded | 294,150 | 555,911 | |||||||||||||||
Released | (278,548 | ) | (203,519 | ) | |||||||||||||
Forfeited | (13,530 | ) | (51,506 | ) | |||||||||||||
Ending outstanding balance | 710,723 | 708,651 | |||||||||||||||
Weighted average grant date fair value of RSUs granted | $ | 7.12 | $ | 6.64 | |||||||||||||
Total fair value of RSUs released | 2,507,000 | 1,128,000 | |||||||||||||||
Total fair value of RSUs remaining unvested | 9,382,000 | 4,868,000 | |||||||||||||||
Schedule of Information Regarding Restricted Stock Unit Outstanding | ' | ||||||||||||||||
Information regarding RSUs outstanding at September 30, 2013 and December 31, 2012 is summarized below: | |||||||||||||||||
Number of | Weighted | Aggregate | Fair | ||||||||||||||
Shares | Average | Intrinsic | Value | ||||||||||||||
Remaining | Value | (In millions) | |||||||||||||||
Contractual | (In millions) | ||||||||||||||||
Life (years) | |||||||||||||||||
December 31, 2012 | |||||||||||||||||
RSUs outstanding | 708,651 | 1.09 | $ | 4.9 | $ | 4.9 | |||||||||||
RSUs vested and expected to vest using estimated forfeiture rates | 588,170 | 1.05 | 4 | ||||||||||||||
September 30, 2013 | |||||||||||||||||
RSUs outstanding | 710,723 | 1.12 | $ | 9.4 | $ | 9.4 | |||||||||||
RSUs vested and expected to vest using estimated forfeiture rates | 599,840 | 1.1 | 7.9 | ||||||||||||||
Schedule of Restricted Stock Awards Activity | ' | ||||||||||||||||
Restricted stock award activity for the nine months ended September 30, 2013 and year ended December 31, 2012 was as follows: | |||||||||||||||||
Nine Months | Year | ||||||||||||||||
Ended | Ended | ||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Beginning outstanding balance | 44,000 | 18,000 | |||||||||||||||
Awarded | 44,000 | 57,750 | |||||||||||||||
Released | (44,000 | ) | (31,750 | ) | |||||||||||||
Forfeited | 0 | 0 | |||||||||||||||
Ending outstanding balance | 44,000 | 44,000 | |||||||||||||||
Weighted average grant date fair value of restricted stock awarded | $ | 14.09 | $ | 5.7 | |||||||||||||
Total fair value of restricted stock awards released | 620,000 | 171,000 | |||||||||||||||
Schedule of Stock Option 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 | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Options | |||||||||||||||||
Expected life (in years) | 4.7 | 4.5 | 4.9 | 4.5 | |||||||||||||
Volatility | 64 | % | 68 | % | 68 | % | 70 | % | |||||||||
Interest rate | 1.3 | % | 0.6 | % | 0.8 | % | 0.7 | % | |||||||||
Dividend yield | N/A | N/A | N/A | N/A | |||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Employee Stock Purchase Plan | |||||||||||||||||
Expected life (in years) | 0.5 | 0.5 | 0.5 | 0.5 | |||||||||||||
Volatility | 69 | % | 52 | % | 67 | % | 62 | % | |||||||||
Interest rate | 0.8 | % | 0.1 | % | 0.1 | % | 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 income (loss) is as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||
Statement of Operations Classifications | |||||||||||||||||
Sales and marketing | $ | 223 | $ | 152 | $ | 496 | $ | 376 | |||||||||
Research and development | 231 | 173 | 807 | 586 | |||||||||||||
General and administrative | 795 | 483 | 2,135 | 1,384 | |||||||||||||
Total | $ | 1,249 | $ | 808 | $ | 3,438 | $ | 2,346 | |||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||||||
Schedule of Income Tax Provisions from Continuing Operations | ' | ||||||||||||||||
Income tax provisions from continuing operations consisted of the following: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||
Income (loss) from continuing operations before provision for income taxes | $ | 1,462 | $ | (2,872 | ) | $ | 4,518 | $ | (4,780 | ) | |||||||
Provision for income taxes | (257 | ) | (118 | ) | (284 | ) | (737 | ) | |||||||||
Effective tax rate | 17.6 | % | (4.1 | )% | 6.3 | % | (15.4 | )% |
Net_Income_Loss_Per_Share_Tabl
Net Income (Loss) Per Share (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Reconciliation of Earnings Per Share | ' | ||||||||||||||||
The following is a reconciliation of the numerators and denominators used in computing basic and diluted net income (loss) per share: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(in thousands except per share amounts) | |||||||||||||||||
Numerator: | |||||||||||||||||
Income (loss) from continuing operations | $ | 1,205 | $ | (2,990 | ) | $ | 4,234 | $ | (5,517 | ) | |||||||
Gain from discontinued operations, net of tax | 0 | 0 | 0 | 153 | |||||||||||||
Net income (loss) used in computing basic and diluted net income (loss) per share | $ | 1,205 | $ | (2,990 | ) | $ | 4,234 | $ | (5,364 | ) | |||||||
Denominator: | |||||||||||||||||
Shares used in computation of basic net income (loss) per share (weighted average common shares outstanding) | 28,558 | 27,658 | 28,047 | 27,885 | |||||||||||||
Dilutive potential common shares: | |||||||||||||||||
Restricted Stock and RSUs | 302 | 0 | 333 | 0 | |||||||||||||
Stock options | 793 | 0 | 825 | 0 | |||||||||||||
Shares used in computation of diluted net income (loss) per share | 29,653 | 27,658 | 29,205 | 27,885 | |||||||||||||
Basic net income (loss) per share from: | |||||||||||||||||
Continuing operations | $ | 0.04 | $ | (0.11 | ) | $ | 0.15 | $ | (0.20 | ) | |||||||
Discontinued operations | 0 | 0 | 0 | 0.01 | |||||||||||||
Total | $ | 0.04 | $ | (0.11 | ) | $ | 0.15 | $ | (0.19 | ) | |||||||
Diluted net income (loss) per share: | |||||||||||||||||
Continuing operations | $ | 0.04 | $ | (0.11 | ) | $ | 0.14 | $ | (0.20 | ) | |||||||
Discontinued operations | 0 | 0 | 0 | 0.01 | |||||||||||||
Total | $ | 0.04 | $ | (0.11 | ) | $ | 0.14 | $ | (0.19 | ) | |||||||
Schedule of Outstanding Securities | ' | ||||||||||||||||
These outstanding securities consisted of the following: | |||||||||||||||||
September 30, | |||||||||||||||||
2012 | |||||||||||||||||
Outstanding stock options | 3,099,155 | ||||||||||||||||
Unvested restricted stock awards | 44,000 | ||||||||||||||||
Unvested RSUs | 676,755 |
Significant_Accounting_Policie3
Significant Accounting Policies - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2013 | |
Significant Accounting Policies [Line Items] | ' |
Product warranty grants description | 'Company typically grants to customers a warranty which guarantees that products will substantially conform to the Companybs current specifications for generally three to twelve months from the delivery date pursuant to the terms of the arrangement. |
Maximum [Member] | ' |
Significant Accounting Policies [Line Items] | ' |
Period of royalties notification | '45 days |
Product warranty period | '12 months |
Minimum [Member] | ' |
Significant Accounting Policies [Line Items] | ' |
Period of royalties notification | '30 days |
Product warranty period | '3 months |
Significant_Accounting_Policie4
Significant Accounting Policies - Changes in Accumulated Other Comprehensive Income (Loss) (Detail) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' |
Beginning balance | $109 |
Other comprehensive income (loss) before reclassifications | 6 |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 |
Net current period other comprehensive income (loss) | 6 |
Ending Balance | 115 |
Unrealized Gains and Losses on Available-for Sale Securities [Member] | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' |
Beginning balance | 8 |
Other comprehensive income (loss) before reclassifications | 6 |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 |
Net current period other comprehensive income (loss) | 6 |
Ending Balance | 14 |
Foreign Currency Items [Member] | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' |
Beginning balance | 101 |
Other comprehensive income (loss) before reclassifications | 0 |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 |
Net current period other comprehensive income (loss) | 0 |
Ending Balance | $101 |
Fair_Value_Measurements_Schedu
Fair Value Measurements - Schedule of Financial Instruments Measured at Fair Value on Recurring Basis (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ' | ' |
Total assets at fair value | $60,054 | $39,040 |
U.S. Treasury Securities [Member] | ' | ' |
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ' | ' |
Total assets at fair value | 56,990 | 38,988 |
Money Market Accounts [Member] | ' | ' |
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ' | ' |
Total assets at fair value | 3,064 | 52 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' |
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ' | ' |
Total assets at fair value | 3,064 | 52 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | U.S. Treasury Securities [Member] | ' | ' |
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ' | ' |
Total assets at fair value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Money Market Accounts [Member] | ' | ' |
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ' | ' |
Total assets at fair value | 3,064 | 52 |
Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ' | ' |
Total assets at fair value | 56,990 | 38,988 |
Significant Other Observable Inputs (Level 2) [Member] | U.S. Treasury Securities [Member] | ' | ' |
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ' | ' |
Total assets at fair value | 56,990 | 38,988 |
Significant Other Observable Inputs (Level 2) [Member] | Money Market Accounts [Member] | ' | ' |
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ' | ' |
Total assets at fair value | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ' | ' |
Total assets at fair value | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | U.S. Treasury Securities [Member] | ' | ' |
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ' | ' |
Total assets at fair value | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Money Market Accounts [Member] | ' | ' |
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ' | ' |
Total assets at fair value | $0 | $0 |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) (USD $) | 9 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Fair Value Disclosures [Abstract] | ' | ' |
Cash held in banks | $4.60 | $4.50 |
Period for contractual maturities of the Company's available-for-sale securities | '1 Year | '1 Year |
Fair_Value_Measurements_ShortT
Fair Value Measurements - Short-Term Investments (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Short-term Investments, Amortized Cost | $47,976 | $38,980 |
Short-term Investments, Gross Unrealized Holding Gains | 14 | 8 |
Short-term Investments, Gross Unrealized Holding Losses | 0 | 0 |
Short-term Investments, Fair Value | 47,990 | 38,988 |
U.S. Treasury Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Short-term Investments, Amortized Cost | 47,976 | 38,980 |
Short-term Investments, Gross Unrealized Holding Gains | 14 | 8 |
Short-term Investments, Gross Unrealized Holding Losses | 0 | 0 |
Short-term Investments, Fair Value | $47,990 | $38,988 |
Accounts_and_Other_Receivables2
Accounts and Other Receivables - Schedule of Accounts and Other Receivables (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Receivables [Abstract] | ' | ' |
Trade accounts receivable | $38 | $1,528 |
Receivables from vendors and other | 256 | 350 |
Accounts and other receivables | $294 | $1,878 |
Inventories_Schedule_of_Invent
Inventories - Schedule of Inventories (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Raw materials and subassemblies | $0 | $138 |
Finished goods | 0 | 3 |
Inventories | $0 | $141 |
Property_and_Equipment_Schedul
Property and Equipment - Schedule of Property and Equipment (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Property Plant And Equipment [Abstract] | ' | ' |
Computer equipment and purchased software | $3,573 | $3,748 |
Machinery and equipment | 704 | 654 |
Furniture and fixtures | 578 | 546 |
Leasehold improvements | 905 | 884 |
Total | 5,760 | 5,832 |
Less accumulated depreciation | -4,776 | -4,551 |
Property and equipment, net | $984 | $1,281 |
Intangibles_and_Other_Assets_S
Intangibles and Other Assets - Schedule of Intangibles and Other Assets (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Intangibles And Other Assets [Abstract] | ' | ' |
Patents and trademarks | $28,357 | $26,206 |
Other assets | 208 | 192 |
Gross intangibles and other assets | 28,565 | 26,398 |
Accumulated amortization of patents and trademarks | -11,400 | -10,673 |
Intangibles and other assets, net | $17,165 | $15,725 |
Intangibles_and_Other_Assets_A
Intangibles and Other Assets - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2013 | |
Intangibles And Other Assets [Abstract] | ' |
Patents and trademarks, estimated useful lives | '10 years |
Patents in process, estimated useful life | '10 years |
Intangibles_and_Other_Assets_S1
Intangibles and Other Assets - Schedule of Amortization of Intangibles Excluding Impairments or Abandonments (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Intangibles And Other Assets [Abstract] | ' | ' | ' | ' |
Amortization of Intangibles - excluding impairments or abandonments | $318 | $264 | $935 | $777 |
Intangibles_and_Other_Assets_S2
Intangibles and Other Assets - Schedule of Estimated Remaining Annual Amortization Expense for Issued Patents and Trademarks (Detail) (USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
Intangibles And Other Assets [Abstract] | ' |
Remainder of 2013 | $323 |
2014 | 1,198 |
2015 | 1,093 |
2016 | 999 |
2017 | 870 |
Thereafter | 2,739 |
Total | $7,222 |
Intangibles_and_Other_Assets_S3
Intangibles and Other Assets - Schedule of Patents in Process (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Intangibles And Other Assets [Abstract] | ' | ' |
Patents in process | $9,735 | $9,270 |
Components_of_Other_Current_Li2
Components of Other Current Liabilities and Deferred Revenue and Customer Advances - Schedule of Other Current Liabilities and Deferred Revenue and Customer Advances (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Components Of Other Current Liabilities And Deferred Revenue And Customer Advances [Abstract] | ' | ' |
Accrued legal | $723 | $410 |
Income taxes payable | 26 | 30 |
Other current liabilities | 630 | 582 |
Total other current liabilities | 1,379 | 1,022 |
Deferred revenue | 11,186 | 3,920 |
Customer advances | 0 | 14 |
Total deferred revenue and customer advances | $11,186 | $3,934 |
LongTerm_Deferred_Revenue_Sche
Long-Term Deferred Revenue - Schedule of Long-Term Deferred Revenue (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred Revenue Disclosure [Abstract] | ' | ' |
Deferred revenue for Sony Computer Entertainment | $7,388 | $9,636 |
Other deferred revenue | 657 | 585 |
Long-term deferred revenue | $8,045 | $10,221 |
StockBased_Compensation_Additi
Stock-Based Compensation - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Number of options for every share issued | 1.75 | ' | 1.75 | ' |
Discount from fair market value on purchase date | ' | ' | 85.00% | ' |
Maximum number of shares per employee | ' | ' | 2,000 | ' |
Employee stock purchase plan offering period | ' | ' | '6 months | ' |
Maximum value of shares per employee | ' | ' | $25,000 | ' |
Common stock reserved for issuance | 1,000,000 | ' | 1,000,000 | ' |
Shares purchased by employee since inception of ESPP | 519,440 | ' | 519,440 | ' |
Shares purchased under ESPP | ' | ' | 36,921 | 25,628 |
Unrecognized compensation cost | 8,800,000 | ' | 8,800,000 | ' |
Stock repurchase program, authorized amount | ' | ' | 50,000,000 | ' |
Repurchased shares | 0 | 581,200 | 0 | 968,488 |
Repurchased shares, value | ' | $3,200,000 | ' | $5,200,000 |
Stock repurchase program, average cost | ' | $5.51 | ' | $5.42 |
Stock Options [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Stock-based payment award vesting period (years) | ' | ' | '4 years | ' |
Unrecognized compensation cost, recognized over an estimated weighted-average period (years) | ' | ' | '3 years 5 months 16 days | ' |
Stock Options [Member] | Maximum [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Stock-based payment award expiration period (years) | ' | ' | '10 years | ' |
Stock Options [Member] | Minimum [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Stock-based payment award expiration period (years) | ' | ' | '5 years | ' |
Restricted Stock Awards [Member] | ' | ' | ' | ' |
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 5 days | ' |
Restricted Stock Units [Member] | ' | ' | ' | ' |
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 2 days | ' |
StockBased_Compensation_Schedu
Stock-Based Compensation - Schedule of Stock Options and Awards (Detail) | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Common stock shares available for grant | 1,800,151 | ' | ' |
Common stock options outstanding | 3,225,204 | 3,155,631 | 3,267,838 |
Stock Options [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Common stock options outstanding | 3,225,204 | ' | ' |
Restricted Stock Awards [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Restricted stock awards and units outstanding | 44,000 | 44,000 | 18,000 |
Restricted Stock Units [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Restricted stock awards and units outstanding | 710,723 | 708,651 | 407,765 |
StockBased_Compensation_Schedu1
Stock-Based Compensation - Schedule of Employee Stock Purchase Plan (Detail) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ' |
Shares purchased under ESPP | 36,921 | 25,628 |
Average price of shares purchased under ESPP | $5.36 | ' |
Intrinsic value of shares purchased under ESPP | $210,984 | ' |
StockBased_Compensation_Schedu2
Stock-Based Compensation - Schedule of Stock Options Activity (Detail) (USD $) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2013 | Dec. 31, 2012 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ' |
Beginning outstanding balance | 3,155,631 | 3,267,838 |
Granted | 1,036,900 | 425,150 |
Exercised | -943,609 | -231,403 |
Forfeited and cancelled | -23,718 | -305,954 |
Ending outstanding balance | 3,225,204 | 3,155,631 |
Aggregate intrinsic value of options exercised | $5,694,000 | $443,000 |
Weighted average fair value of options granted | $5.61 | $3.35 |
StockBased_Compensation_Schedu3
Stock-Based Compensation - Schedule of Information Regarding Stock Options Outstanding (Detail) (USD $) | 9 Months Ended | 12 Months Ended | |
In Millions, except Share data, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ' | ' |
Options outstanding, Number of Shares | 3,225,204 | 3,155,631 | 3,267,838 |
Options vested and expected to vest using estimated forfeiture rates, Number of Shares | 2,953,946 | 3,019,979 | ' |
Options exercisable, Number of Shares | 1,692,770 | 2,329,987 | ' |
Options outstanding, Weighted Average Exercise Price | $7.74 | $6.65 | ' |
Options vested and expected to vest using estimated forfeiture rates, Weighted Average Exercise Price | $7.56 | $6.67 | ' |
Options exercisable, Weighted Average Exercise Price | $6.70 | $6.91 | ' |
Options outstanding, Weighted Average Remaining Contractual Life (years) | '5 years 8 months 12 days | '5 years 2 months 27 days | ' |
Options vested and expected to vest using estimated forfeiture rates, Weighted Average Remaining Contractual Life (years) | '5 years 7 months 21 days | '5 years 2 months 1 day | ' |
Options exercisable, Weighted Average Remaining Contractual Life (years) | '5 years 1 month 17 days | '4 years 8 months 9 days | ' |
Options outstanding, Aggregate Intrinsic Value | $18.20 | $3.50 | ' |
Options vested and expected to vest using estimated forfeiture rates, Aggregate Intrinsic Value | 17.2 | 3.4 | ' |
Options exercisable, Aggregate Intrinsic Value | $11.40 | $2.50 | ' |
StockBased_Compensation_Schedu4
Stock-Based Compensation - Schedule of Restricted Stock Units Activity (Detail) (Restricted Stock Units [Member], USD $) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2013 | Dec. 31, 2012 | |
Restricted Stock Units [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Beginning outstanding balance | 708,651 | 407,765 |
Awarded | 294,150 | 555,911 |
Released | -278,548 | -203,519 |
Forfeited | -13,530 | -51,506 |
Ending outstanding balance | 710,723 | 708,651 |
Weighted average grant date fair value of RSUs granted | $7.12 | $6.64 |
Total fair value of RSUs released | $2,507,000 | $1,128,000 |
Total fair value of RSUs remaining unvested | $9,382,000 | $4,868,000 |
StockBased_Compensation_Schedu5
Stock-Based Compensation - Schedule of Information Regarding Restricted Stock Unit Outstanding (Detail) (Restricted Stock Units [Member], USD $) | 9 Months Ended | 12 Months Ended | |
In Millions, except Share data, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Restricted Stock Units [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
RSUs outstanding, Number of Shares | 710,723 | 708,651 | 407,765 |
RSUs vested and expected to vest using estimated forfeiture rates, Number of Shares | 599,840 | 588,170 | ' |
RSUs outstanding, Weighted Average Remaining Contractual Life (years) | '1 year 1 month 13 days | '1 year 1 month 2 days | ' |
RSUs vested and expected to vest using estimated forfeiture rates, Weighted Average Remaining Contractual Life (years) | '1 year 1 month 6 days | '1 year 18 days | ' |
RSUs outstanding, Aggregate Intrinsic Value | $9.40 | $4.90 | ' |
RSUs vested and expected to vest using estimated forfeiture rates, Aggregate Intrinsic Value | 7.9 | 4 | ' |
RSUs outstanding, Fair Value | $9.40 | $4.90 | ' |
StockBased_Compensation_Schedu6
Stock-Based Compensation - Schedule of Restricted Stock Awards Activity (Detail) (Restricted Stock Awards [Member], USD $) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2013 | Dec. 31, 2012 | |
Restricted Stock Awards [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Beginning outstanding balance | 44,000 | 18,000 |
Awarded | 44,000 | 57,750 |
Released | -44,000 | -31,750 |
Forfeited | 0 | 0 |
Ending outstanding balance | 44,000 | 44,000 |
Weighted average grant date fair value of restricted stock awarded | $14.09 | $5.70 |
Total fair value of restricted stock awards released | $620,000 | $171,000 |
StockBased_Compensation_Schedu7
Stock-Based Compensation - Schedule of Stock Option and Employee Stock Purchase Plan, Valuation Assumptions (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Stock Options [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Expected life (in years) | '4 years 8 months 12 days | '4 years 6 months | '4 years 10 months 24 days | '4 years 6 months |
Volatility | 64.00% | 68.00% | 68.00% | 70.00% |
Interest rate | 1.30% | 0.60% | 0.80% | 0.70% |
Dividend yield | ' | ' | ' | ' |
Employee Stock [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Expected life (in years) | '6 months | '6 months | '6 months | '6 months |
Volatility | 69.00% | 52.00% | 67.00% | 62.00% |
Interest rate | 0.80% | 0.10% | 0.10% | 0.10% |
Dividend yield | ' | ' | ' | ' |
StockBased_Compensation_Schedu8
Stock-Based Compensation - Schedule of Stock-Based Compensation (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total | $1,249 | $808 | $3,438 | $2,346 |
Sales and Marketing [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total | 223 | 152 | 496 | 376 |
Research and Development [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total | 231 | 173 | 807 | 586 |
General and Administrative [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total | $795 | $483 | $2,135 | $1,384 |
Discontinued_Operations_Additi
Discontinued Operations - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2009 | |
Discontinued Operations And Disposal Groups [Abstract] | ' | ' | ' | ' | ' |
Gain from discontinued operations, net of tax | $0 | $0 | $0 | $153,000 | $187,000 |
Negotiated consideration for 3D product line sales | ' | ' | 2,700,000 | ' | ' |
Negotiated consideration for the sales of discontinued operation in the form of cash | ' | ' | 320,000 | ' | ' |
Negotiated consideration for the sales of discontinued operation in the form of notes receivable | ' | ' | $2,400,000 | ' | ' |
Income_Taxes_Schedule_of_Incom
Income Taxes - Schedule of Income Tax Provisions from Continuing Operations (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
Income (loss) from continuing operations before provision for income taxes | $1,462 | ($2,872) | $4,518 | ($4,780) |
Provision for income taxes | ($257) | ($118) | ($284) | ($737) |
Effective tax rate | 17.60% | -4.10% | 6.30% | -15.40% |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Income Tax Benefit [Line Items] | ' |
Unrecognized tax benefits | $689,000 |
Unrecognized tax benefits, interest | 62,000 |
Unrecognized tax benefits that would affect the Company's effective tax rate | 261,000 |
Changes in the amount of unrecognized tax benefits | $0 |
Cumulative pre-tax loss position | '3 years |
Scenario Forecast, December 31, 2013 [Member] | ' |
Income Tax Benefit [Line Items] | ' |
Cumulative pre-tax income position | '3 years |
Net_Income_Loss_Per_Share_Reco
Net Income (Loss) Per Share - Reconciliation of Earnings Per Share (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2009 |
Numerator: | ' | ' | ' | ' | ' |
Income (loss) from continuing operations | $1,205 | ($2,990) | $4,234 | ($5,517) | ' |
Gain from discontinued operations, net of tax | 0 | 0 | 0 | 153 | 187 |
Net income (loss) used in computing basic and diluted net income (loss) per share | $1,205 | ($2,990) | $4,234 | ($5,364) | ' |
Denominator: | ' | ' | ' | ' | ' |
Shares used in computation of basic net income (loss) per share (weighted average common shares outstanding) | 28,558 | 27,658 | 28,047 | 27,885 | ' |
Dilutive potential common shares: | ' | ' | ' | ' | ' |
Shares used in computation of diluted net income (loss) per share | 29,653 | 27,658 | 29,205 | 27,885 | ' |
Basic net income (loss) per share from: | ' | ' | ' | ' | ' |
Continuing operations | $0.04 | ($0.11) | $0.15 | ($0.20) | ' |
Discontinued operations | $0 | $0 | $0 | $0.01 | ' |
Total | $0.04 | ($0.11) | $0.15 | ($0.19) | ' |
Diluted net income (loss) per share: | ' | ' | ' | ' | ' |
Continuing operations | $0.04 | ($0.11) | $0.14 | ($0.20) | ' |
Discontinued operations | $0 | $0 | $0 | $0.01 | ' |
Total | $0.04 | ($0.11) | $0.14 | ($0.19) | ' |
Restricted Stock and RSUs [Member] | ' | ' | ' | ' | ' |
Dilutive potential common shares: | ' | ' | ' | ' | ' |
Dilutive potential common shares | 302 | 0 | 333 | 0 | ' |
Stock Options [Member] | ' | ' | ' | ' | ' |
Dilutive potential common shares: | ' | ' | ' | ' | ' |
Dilutive potential common shares | 793 | 0 | 825 | 0 | ' |
Net_Income_Loss_Per_Share_Addi
Net Income (Loss) Per Share - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2013 | Sep. 30, 2013 | |
Earnings Per Share [Abstract] | ' | ' |
Options to purchase shares of common stock | 1,200,000 | 902,000 |
Exercise prices greater than the average fair market value of stock | $13.72 | $11.53 |
Net_Income_Loss_Per_Share_Sche
Net Income (Loss) Per Share - Schedule of Outstanding Securities (Detail) | 9 Months Ended |
Sep. 30, 2012 | |
Outstanding Stock Options [Member] | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' |
Outstanding securities having potential to dilute basic EPS | 3,099,155 |
Unvested Restricted Stock Awards [Member] | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' |
Outstanding securities having potential to dilute basic EPS | 44,000 |
Unvested RSUs [Member] | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' |
Outstanding securities having potential to dilute basic EPS | 676,755 |
Contingencies_Additional_Infor
Contingencies - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2013 | |
Additional_Class_Action | |
Commitments And Contingencies Disclosure [Abstract] | ' |
Number of additional class action complaints filed | 4 |
Number of additional class action complaints voluntarily dismissed | 1 |