Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Jun. 30, 2013 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'STAMPS.COM INC | ' |
Entity Central Index Key | '0001082923 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Entity Voluntary Filers | 'No | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Public Float | ' | $0 |
Entity Common Stock, Shares Outstanding | 0 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'FY | ' |
Document Type | '10-K | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Dec-13 | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $66,674 | $29,576 |
Short-term investments | 6,524 | 6,323 |
Accounts receivable, net | 17,504 | 14,432 |
Other current assets | 6,541 | 5,602 |
Total current assets | 97,243 | 55,933 |
Property and equipment, net | 29,763 | 28,631 |
Intangible assets, net | 1,047 | 1,262 |
Long-term investments | 14,012 | 10,720 |
Deferred income taxes | 40,262 | 30,549 |
Other assets | 4,791 | 3,757 |
Total assets | 187,118 | 130,852 |
Current liabilities: | ' | ' |
Accounts payable and accrued expenses | 13,928 | 16,366 |
Deferred revenue | 1,425 | 1,532 |
Total current liabilities | 15,353 | 17,898 |
Commitments and contingencies | ' | ' |
Stockholders' equity: | ' | ' |
Common stock, $.001 par value Authorized shares: 47,500 in 2013 and 2012 Issued shares: 28,518 in 2013 and 27,472 in 2012 Outstanding shares: 16,187 in 2013 and 15,319 in 2012 | 51 | 50 |
Additional paid-in capital | 668,724 | 649,694 |
Treasury stock, at cost, 12,331 shares in 2013 and 12,153 shares in 2012 | -159,522 | -155,260 |
Accumulated deficit | -337,628 | -381,781 |
Accumulated other comprehensive income | 140 | 251 |
Total stockholders' equity | 171,765 | 112,954 |
Total liabilities and stockholders' equity | $187,118 | $130,852 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, except Per Share data, unless otherwise specified | ||
Stockholders' equity: | ' | ' |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized (in shares) | 47,500 | 47,500 |
Common stock shares issued (in shares) | 28,518 | 27,472 |
Common stock shares outstanding (in shares) | 16,817 | 15,319 |
Treasury stock, at cost (in shares) | 12,331 | 12,153 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenues: | ' | ' | ' |
Service | $99,013 | $88,173 | $75,535 |
Product | 16,580 | 14,710 | 13,465 |
Insurance | 7,515 | 7,120 | 4,321 |
PhotoStamps | 4,710 | 5,651 | 8,258 |
Other | 1 | 7 | 6 |
Total revenues | 127,819 | 115,661 | 101,585 |
Cost of revenues: | ' | ' | ' |
Service | 15,422 | 15,720 | 14,720 |
Product | 5,694 | 5,435 | 4,910 |
Insurance | 2,685 | 2,334 | 1,506 |
PhotoStamps | 3,699 | 4,267 | 5,076 |
Total cost of revenues | 27,500 | 27,756 | 26,212 |
Gross profit | 100,319 | 87,905 | 75,373 |
Operating expenses: | ' | ' | ' |
Sales and marketing | 39,449 | 38,755 | 34,569 |
Research and development | 10,958 | 10,243 | 9,395 |
General and administrative | 15,794 | 14,750 | 14,181 |
Total operating expenses | 66,201 | 63,748 | 58,145 |
Income from operations | 34,118 | 24,157 | 17,228 |
Interest income and other income, net | 480 | 541 | 562 |
Income before taxes | 34,598 | 24,698 | 17,790 |
Benefit for income taxes | -9,555 | -13,859 | -8,475 |
Net income | $44,153 | $38,557 | $26,265 |
Net income per share: | ' | ' | ' |
Basic (in dollars per share) | $2.81 | $2.40 | $1.78 |
Diluted (in dollars per share) | $2.71 | $2.30 | $1.73 |
Weighted average shares outstanding : | ' | ' | ' |
Basic (in shares) | 15,691 | 16,079 | 14,767 |
Diluted (in shares) | 16,298 | 16,793 | 15,168 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | ' | ' | ' |
Net income | $44,153 | $38,557 | $26,265 |
Other comprehensive income: | ' | ' | ' |
Unrealized loss on investments | -111 | -34 | -138 |
Comprehensive income | $44,042 | $38,523 | $26,127 |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock at Cost [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive (Loss) Income [Member] | Total |
In Thousands, unless otherwise specified | ||||||
Balance at Dec. 31, 2010 | $47 | $608,522 | ($118,151) | ($446,603) | $423 | $44,238 |
Balance (in shares) at Dec. 31, 2010 | 14,490 | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' |
Net income | 0 | 0 | 0 | 26,265 | 0 | 26,265 |
Unrealized loss on investments | 0 | 0 | 0 | 0 | -138 | -138 |
Stock-based compensation expense | 0 | 3,419 | 0 | 0 | 0 | 3,419 |
Exercise of stock options | 2 | 25,036 | 0 | 0 | 0 | 25,038 |
Exercise of stock options (in shares) | 2,043 | ' | ' | ' | ' | 2,043 |
Shares issued under the ESPP | 0 | 506 | 0 | 0 | 0 | 506 |
Shares issued under the ESPP (in shares) | 56 | ' | ' | ' | ' | ' |
Stock repurchase | 0 | 0 | -5,321 | 0 | 0 | -5,321 |
Stock repurchase (in shares) | -426 | ' | ' | ' | ' | ' |
Balance at Dec. 31, 2011 | 49 | 637,483 | -123,472 | -420,338 | 285 | 94,007 |
Balance (in shares) at Dec. 31, 2011 | 16,163 | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' |
Net income | 0 | 0 | 0 | 38,557 | 0 | 38,557 |
Unrealized loss on investments | 0 | 0 | 0 | 0 | -34 | -34 |
Stock-based compensation expense | 0 | 3,991 | 0 | 0 | 0 | 3,991 |
Exercise of stock options | 1 | 7,305 | 0 | 0 | 0 | 7,306 |
Exercise of stock options (in shares) | 560 | ' | ' | ' | ' | 560 |
Shares issued under the ESPP | 0 | 915 | 0 | 0 | 0 | 915 |
Shares issued under the ESPP (in shares) | 56 | ' | ' | ' | ' | ' |
Stock repurchase | 0 | 0 | -31,788 | 0 | 0 | -31,788 |
Stock repurchase (in shares) | -1,460 | ' | ' | ' | ' | ' |
Balance at Dec. 31, 2012 | 50 | 649,694 | -155,260 | -381,781 | 251 | 112,954 |
Balance (in shares) at Dec. 31, 2012 | 15,319 | ' | ' | ' | ' | 15,319 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' |
Net income | 0 | 0 | 0 | 44,153 | 0 | 44,153 |
Unrealized loss on investments | 0 | 0 | 0 | 0 | -111 | -111 |
Stock-based compensation expense | 0 | 4,492 | 0 | 0 | 0 | 4,492 |
Exercise of stock options | 1 | 13,424 | 0 | 0 | 0 | 13,425 |
Exercise of stock options (in shares) | 991 | ' | ' | ' | ' | 991 |
Shares issued under the ESPP | 0 | 1,114 | 0 | 0 | 0 | 1,114 |
Shares issued under the ESPP (in shares) | 56 | ' | ' | ' | ' | ' |
Stock repurchase | 0 | 0 | -4,262 | 0 | 0 | -4,262 |
Stock repurchase (in shares) | -179 | ' | ' | ' | ' | ' |
Balance at Dec. 31, 2013 | $51 | $668,724 | ($159,522) | ($337,628) | $140 | $171,765 |
Balance (in shares) at Dec. 31, 2013 | 16,187 | ' | ' | ' | ' | 16,817 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Operating activities: | ' | ' | ' |
Net income | $44,153 | $38,557 | $26,265 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Depreciation and amortization | 2,538 | 1,649 | 885 |
Stock-based compensation expense | 4,492 | 3,991 | 3,419 |
Deferred income taxes | -9,713 | -14,424 | -8,475 |
Changes in operating assets and liabilities: | ' | ' | ' |
Accounts receivable | -3,072 | -3,966 | -5,598 |
Other current assets | -834 | 110 | -1,461 |
Other assets | -1,034 | -209 | -517 |
Deferred revenue | -107 | -366 | -2,295 |
Accounts payable and accrued expenses | -667 | 1,948 | 3,064 |
Net cash provided by operating activities | 35,756 | 27,290 | 15,287 |
Investing activities: | ' | ' | ' |
Sale of short-term investments | 6,159 | 1,621 | 10,831 |
Purchase of short-term investments | -6,454 | -6,473 | -8 |
Sale of long-term investments | 6,949 | 8,254 | 3,473 |
Purchase of long-term investments | -10,258 | -5,703 | -1,982 |
Release (purchase) of restricted cash | 0 | 500 | -500 |
Acquisition of property, equipment and intangibles | -5,282 | -26,481 | -1,308 |
Net cash (used in) provided by investing activities | -8,886 | -28,282 | 10,506 |
Financing activities: | ' | ' | ' |
Proceeds from exercise of stock options | 13,425 | 7,306 | 25,038 |
Issuance of common stock under ESPP | 1,114 | 915 | 506 |
Repurchase of common stock | -4,311 | -31,740 | -5,321 |
Net cash provided by (used in) financing activities | 10,228 | -23,519 | 20,223 |
Net increase (decrease) in cash and cash equivalents | 37,098 | -24,511 | 46,016 |
Cash and cash equivalents at beginning of period | 29,576 | 54,087 | 8,071 |
Cash and cash equivalents at end of period | 66,674 | 29,576 | 54,087 |
Supplemental cash flow information: | ' | ' | ' |
Income taxes paid during the period | 362 | 221 | 124 |
Capital expenditure accrued but not paid at period end | 572 | 2,294 | 0 |
Treasury stock accrued but not paid at period end | $0 | $49 | $0 |
Description_of_Business
Description of Business | 12 Months Ended | |
Dec. 31, 2013 | ||
Description of Business [Abstract] | ' | |
Description of Business | ' | |
1 | Description of Business | |
Stamps.com Inc. and Subsidiary (“the Company” or “we”) are the leading provider of Internet-based postage solutions. Our customers use our service to mail and ship a variety of mail pieces, including postcards, envelopes, flats and packages, using a wide range of United States Postal Service (the “USPS”) mail classes, including First Class Mail®, Priority Mail®, Priority Mail Express®, Media Mail®, Parcel Select®, and others. Customers using our service receive discounted postage rates compared to USPS retail rates on certain mail pieces such as First Class letters and domestic and international Priority Mail and Priority Mail Express packages. Our customers include individuals, small businesses, home offices, medium-size businesses and large enterprises, and within these segments we target both mailers and shippers. We were the first ever USPS-licensed vendor to offer PC Postage® in a software-only business model in 1999. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Summary of Significant Accounting Policies [Abstract] | ' | ||||||||||||
Summary of Significant Accounting Policies | ' | ||||||||||||
2 | Summary of Significant Accounting Policies | ||||||||||||
Principles of Consolidation | |||||||||||||
The consolidated financial statements include the accounts of Stamps.com Inc. and PhotoStamps Inc. In October 2009, we formed PhotoStamps Inc., a wholly-owned subsidiary, for the purpose of managing our retail gift card operations. Because 100% of the voting control is held by us, we have consolidated PhotoStamps Inc. in the accompanying consolidated financial statements. All significant intercompany accounts and transactions have been eliminated. | |||||||||||||
Use of Estimates and Risk Management | |||||||||||||
The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the amounts reported in the financial statements and the accompanying notes. Actual results could differ from those estimates, and such differences may be material to the financial statements. Examples include estimates of loss contingencies, promotional coupon redemptions, the number of PhotoStamps retail boxes that will not be redeemed, deferred income taxes and estimates regarding the useful lives of our building, patents and other amortizable intangible assets. | |||||||||||||
Contingencies and Litigation | |||||||||||||
We are subject to various routine litigation matters as a claimant and a defendant. We record any amounts recovered in these matters when received. We record liabilities for claims against us when the loss is probable and estimable. Amounts recorded are based on reviews by outside counsel, in-house counsel and management. Actual results could differ from estimates. | |||||||||||||
Cash Equivalents and Investments | |||||||||||||
We consider all highly liquid investments with an original or remaining maturity of three months or less at the date of purchase to be cash equivalents. | |||||||||||||
Our cash equivalents and investments consisted of money market funds, U.S. government obligations, asset-backed securities and public corporate debt securities at December 31, 2013 and 2012. All investments are classified as available for sale and are recorded at market value using the specific identification method. Realized gains and losses are reflected in interest and other income, net while unrealized gains and losses are included as a separate component of stockholders' equity. | |||||||||||||
Accounts Receivable | |||||||||||||
Our accounts receivable relate to PC Postage services, PhotoStamps sales, branded insurance provided to customers prior to billing and other receivables. Accounts receivable are recorded at the invoiced amount, net of allowances for uncollectible accounts of approximately $283,000 and $239,000 as of December 31, 2013 and 2012, respectively, and were $17.5 million and $14.4 million as of December 31, 2013 and 2012, respectively. | |||||||||||||
We evaluate the collectability of our accounts receivable based on a combination of factors. If we become aware of a customer’s inability to meet its financial obligations, an allowance is recorded to reduce the net receivable to the amount reasonably believed to be collectible from the customer. For all other customers, we recognize allowances for doubtful accounts based on the length of time the receivables are past due, the current business environment and our historical experience. If the financial condition of our customers deteriorates, resulting in their inability to make payments, additional provisions are recorded in that period. Accounts receivable are written off against the allowance for uncollectible accounts when we determine amounts are no longer collectible. | |||||||||||||
Fair Value of Financial Instruments | |||||||||||||
Carrying amounts of certain of our financial instruments, including cash, cash equivalents, restricted cash, accounts receivable and accounts payable, approximate fair value due to their short maturities. The fair values of investments are determined using quoted market prices for those securities or similar financial instruments. | |||||||||||||
Concentration of Risk | |||||||||||||
Our cash, cash equivalents and investments are subject to market risk, primarily interest rate and credit risk. Our investments are managed by a limited number of outside professional managers within investment guidelines set by us. Such guidelines include security type, credit quality and maturity and are intended to limit market risk by restricting our investments. From time to time, our investments held with financial institutions may exceed Federal Deposit Insurance Corporation insurance limits. Interest rate fluctuations and changes in credit ratings impact the carrying value of our portfolio. | |||||||||||||
During 2013, 2012 and 2011, we did not recognize revenue from any one customer that represented 10% or more of revenues. | |||||||||||||
We do not have any customers representing 10% or more of total accounts receivable as of December 31, 2013 and 2012, respectively. We have accounts receivable from one partner that represented approximately 55% and 40% of the total accounts receivable balance as of December 31, 2013 and 2012, respectively. | |||||||||||||
Inventories | |||||||||||||
Inventories consist of finished products sold through our supplies store and are accounted for using the lower of cost (first-in, first-out method) or market. Inventories reported as a component of other current assets in 2013 and 2012 were $3.2 million and $3.4 million, respectively. | |||||||||||||
Property and Equipment | |||||||||||||
We account for property and equipment at cost less accumulated depreciation and amortization. We compute depreciation using the straight-line method over the estimated useful life of the asset, generally three to five years for furniture, fixtures and equipment and ten to forty years for building and building improvements. We have a policy of capitalizing expenditures that materially increase assets’ useful lives and charging ordinary maintenance and repairs to operations as incurred. When property or equipment is disposed of, the cost and related accumulated depreciation and amortization are removed from the accounts, and any gain or loss is included in operations. | |||||||||||||
On January 23, 2012, we completed the purchase of our new corporate headquarters in El Segundo, California, for an aggregate purchase price of $13.4 million of which approximately $7.2 million was allocated to land value and $5.5 million was allocated to building value. The purchase was accounted for as a business combination. The building is being depreciated on a straight-line basis over the estimated useful life of 40 years; the land is an asset that does not get depreciated. As a result of the purchase we also acquired existing leases of building tenants, and $700,000 of the initial purchase price was allocated to lease-in-place intangible assets and is being amortized over the remaining actual lease terms which are as long as 5.5 years. | |||||||||||||
Trademarks, Patents and Intangible Assets | |||||||||||||
Acquired trademarks, patents and other intangibles are included in intangible assets, net in the accompanying consolidated balance sheets and are carried at cost less accumulated amortization. Cost associated with internally developed intangible assets is typically expensed as incurred as research and development costs. | |||||||||||||
Amortization is calculated on a straight-line basis over the estimated useful lives of the assets, ranging from approximately 5 to 17 years. During 2013, 2012 and 2011, amortization expense, including the amortization of trademarks, patents and lease-in-place intangible asset, was approximately $215,000, $269,000 and $47,000, respectively. | |||||||||||||
Impairment of Long-Lived Assets and Intangible Assets | |||||||||||||
Long-lived assets including intangible assets with definitive useful lives are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. | |||||||||||||
Intangible assets that have indefinite useful lives are not amortized but, instead, tested at least annually for impairment while intangible assets that have finite useful lives continue to be amortized over their respective useful lives. | |||||||||||||
Intangible assets are tested for impairment using a two-step process. The first step is to determine the fair value of the reporting unit, which may be calculated using a discounted cash flow methodology, and compare this value to its carrying value. If the fair value exceeds the carrying value, no further work is required, and no impairment loss would be recognized. If the fair value is less than the carrying value, the second step is performed. The second step is an allocation of the fair value of the reporting unit to all of the reporting unit's assets and liabilities under a hypothetical purchase price allocation. Based on the annual evaluations performed by us, there was no impairment of intangible assets during the years ended December 31, 2013, 2012 or 2011. | |||||||||||||
Deferred Revenue | |||||||||||||
The majority of our deferred revenue relates to PhotoStamps retail boxes. We sell our PhotoStamps retail boxes to our customers through our website and selected third parties. Proceeds from the sale of our PhotoStamps retail boxes are initially recorded as a liability when received. We record the liability for outstanding PhotoStamps retail boxes in deferred revenue. | |||||||||||||
Revenue Recognition | |||||||||||||
We recognize revenue from product sales or services rendered, as well as commissions from advertising or sale of products by third party vendors to our customer base when the following four revenue recognition criteria are met: persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the selling price is fixed or determinable, and collectability is reasonably assured. | |||||||||||||
Service revenue is primarily derived from subscription, transaction and other fees that are recognized in the period that services are provided. Product sales, net of return allowances, are recorded when the products are shipped and title passes to customers. Sales of items, including PhotoStamps, sold to customers are made pursuant to a sales contract that provides for transfer of both title and risk of loss upon our delivery to the carrier. Return allowances for expected product returns, which reduce product revenue, are estimated using historical experience. Commissions from the advertising or sale of products by a third party vendor to our customer base are recognized when the revenue is earned and collection is deemed probable. | |||||||||||||
Customers typically pay face value for postage purchased for use through our PC Postage software, and the funds are transferred directly from the customers to the United States Postal Service (“USPS”). We do not recognize revenue for this postage, as it is purchased by our customers directly from the USPS. | |||||||||||||
PhotoStamps revenue, which includes the face value of postage, from the sale of PhotoStamps sheets and rolls is made pursuant to a sales contract that provides for transfer of both title and risk of loss upon our delivery to the carrier. | |||||||||||||
Sale of PhotoStamps retail boxes are initially recorded as deferred revenue. PhotoStamps revenue related to the sale of these PhotoStamps retail boxes is subsequently recognized when either: 1) the PhotoStamps retail box is redeemed, or 2) the likelihood of the PhotoStamps retail box being redeemed is deemed remote (“breakage”) and there is no legal obligation to remit the value of the unredeemed PhotoStamps retail boxes. | |||||||||||||
On a limited basis, we allow third parties to offer products and promotions to our customer base. These arrangements generally provide payment in the form of a flat fee or revenue sharing arrangements where we receive payment upon customers accessing third party products and services. Total revenue from such advertising arrangements was not significant during 2013 and 2012. | |||||||||||||
We provide our customers with the opportunity to purchase parcel insurance directly through our software. Insurance revenue represents the gross amount charged to the customer for purchasing insurance and the related cost represents the amount paid to the insurance broker, Parcel Insurance Plan. We recognize revenue on insurance purchases upon the ship date of the insured package. | |||||||||||||
PhotoStamps Retail Boxes | |||||||||||||
We sell PhotoStamps retail boxes that are redeemable for PhotoStamps on our website. The PhotoStamps retail boxes are sold through various third party retail partners. Our PhotoStamps retail boxes are not subject to administrative fees on unredeemed boxes and have no expiration date. PhotoStamps retail box sales are recorded as deferred revenue. Prior to the second quarter of 2011, revenue was recognized only on boxes that were actually redeemed on our website. | |||||||||||||
During the second quarter of 2011, we concluded that sufficient company-specific historical evidence existed to determine the period of time after which the likelihood of the PhotoStamps retail boxes being redeemed was remote. Based on our analysis of the redemption data, we estimate that period of time to be 60 months after the sale of our PhotoStamps retail boxes. | |||||||||||||
Beginning in the second quarter of 2011, we began recognizing breakage revenue related to our PhotoStamps retail boxes utilizing the redemption recognition method. Under the redemption recognition method, we recognize breakage revenue from unredeemed retail boxes in proportion to the revenue recognized from the retail boxes that have been redeemed. During the second quarter of 2011, we recognized $2.2 million, which was $0.15 on a per share basis using fully diluted shares as of June 30, 2011 (revenue divided by fully diluted shares outstanding, exclusive of any current or prior period costs related to the retail programs), of retail box breakage revenue, of which $2.1 million related to a cumulative catch-up for previously sold and unredeemed PhotoStamps retail boxes originally recorded as deferred revenue. The retail box breakage revenue recognized was recorded in PhotoStamps revenue. We continue to recognize retail box breakage revenue from PhotoStamps retail boxes using the redemption recognition method. During 2013, 2012 and 2011 PhotoStamps retail box breakage revenue was approximately $115,000, $260,000 and $2.3 million, respectively. | |||||||||||||
Cost of Service Revenue | |||||||||||||
Cost of service revenue principally consists of the cost of customer service, certain promotional expenses, system operating costs, credit card processing fees and customer misprints that do not qualify for reimbursement from the USPS. Cost of product revenue principally consists of the cost of products sold through our Mailing & Shipping Supplies Store and the related costs of shipping and handling. The cost of insurance revenue principally consists of parcel insurance offering costs. Cost of PhotoStamps revenue principally consists of the face value of postage, image review costs and printing and fulfillment costs. | |||||||||||||
Promotional Expense | |||||||||||||
New PC Postage customers are typically offered promotional items that are redeemed using coupons that are qualified for redemption after a customer is successfully billed beyond an initial trial period. We account for our promotional expense in accordance with Accounting Standard Codification (“ASC”) 605-50-25, “Recognition – Vendor’s Accounting for Consideration Given to a Customer”, by recognizing a liability for promotional expense based on estimated amounts that will be claimed by customers unless the liability for promotional expense cannot be reasonable and reliably estimated. This includes free postage and a free digital scale and is expensed in the period in which a customer qualifies using estimated redemption rates based on historical data. We periodically review our historical redemption rates and adjust, if necessary, our estimated redemption rates for future periods. Promotional expense, which is included in cost of service, is incurred as customers qualify and thereby may not correlate directly with changes in revenue, as the revenue associated with the acquired customer is earned over the customer’s lifetime. During 2013, 2012 and 2011 promotional expense was $2.4 million, $3.5 million and $3.6, respectively. | |||||||||||||
Research and Development Costs | |||||||||||||
Research and development expense principally consist of compensation for personnel involved in the development of our services, depreciation of equipment and software and expenditures for consulting services and third party software. | |||||||||||||
Sales and Marketing | |||||||||||||
Sales and marketing expense principally consists of spending to acquire new customers and compensation and related expenses for personnel engaged in sales, marketing, and business development activities. Ongoing marketing programs include the following: traditional advertising, partnerships, customer referral programs, customer re-marketing efforts, telemarketing, direct sales, direct mail, and online advertising. | |||||||||||||
Advertising Costs | |||||||||||||
We expense the costs of producing advertisements as incurred, and expense the costs of communicating and placing the advertising in the period in which the advertising space or airtime is used. For the years ended December 31, 2013, 2012 and 2011, advertising and tradeshow costs were $10.3 million, $8.7 million and $7.0 million, respectively. | |||||||||||||
Internet Advertising | |||||||||||||
We recognize Internet advertising expense based on the specifics of the individual agreements. Under partner and affiliate agreements, third parties refer prospects to our web site, and we pay the third parties when the customer completes the customer registration process, or in some cases, upon the first successful billing of a customer. We record these expenses on a monthly basis as prospects are successfully converted to customers. Under Internet search advertising, we record expenses based on actual “click activity” on our displayed advertisements following targeted key word searches. | |||||||||||||
General and Administrative | |||||||||||||
General and administrative expense principally consists of compensation and related costs for executive and administrative personnel, fees for legal and other professional services, depreciation of equipment and software used for general corporate purposes and amortization of intangible assets. | |||||||||||||
Income Taxes | |||||||||||||
We account for income taxes in accordance with ASC 740, Income Taxes (“ASC 740”), which requires that deferred tax assets and liabilities be recognized using enacted tax rates for the effect of temporary differences between the book and tax basis of recorded assets and liabilities. ASC 740 also requires that deferred tax assets be reduced by a valuation allowance if it is more likely than not that some or all of the net deferred tax assets will not be realized. We record a valuation allowance to reduce our gross deferred tax assets, which are primarily comprised of U.S. Federal and State tax loss carry-forwards, to the amount that is more likely than not (a likelihood of more than 50 percent) to be realized. In order for us to realize our deferred tax assets, we must be able to generate sufficient taxable income. We evaluate the appropriateness of our deferred tax assets and related valuation allowance in accordance with ASC 740 based on all available positive and negative evidence. | |||||||||||||
Under the guidance related to uncertain tax positions, we are required to determine whether it is more likely than not that a tax position will be sustained upon examination based on the technical merits of the position. A tax position that meets the more likely than not recognition threshold is measured to determine the amount of liability or benefit to recognize in the financial statements. | |||||||||||||
Net Income per Share | |||||||||||||
Net income per share represents net income attributable to common stockholders divided by the weighted average number of common shares outstanding during a reported period. The diluted net income per share reflects the potential dilution that could occur if securities or other contracts to issue common stock, including stock options (commonly and hereafter referred to as “common stock equivalents”), were exercised or converted into common stock. Diluted net income per share is calculated by dividing net income during a reported period by the sum of the weighted average number of common shares outstanding plus common stock equivalents for the period. | |||||||||||||
The following table reconciles share amounts utilized to calculate basic and diluted net income per share (in thousands, except per share data): | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Net income | $ | 44,153 | $ | 38,557 | $ | 26,265 | |||||||
Basic - weighted average common shares | 15,691 | 16,079 | 14,767 | ||||||||||
Dilutive effect of common stock equivalents | 607 | 714 | 401 | ||||||||||
Diluted - weighted average common shares | 16,298 | 16,793 | 15,168 | ||||||||||
Net income per share: | |||||||||||||
Basic | $ | 2.81 | $ | 2.4 | $ | 1.78 | |||||||
Diluted | $ | 2.71 | $ | 2.3 | $ | 1.73 | |||||||
The calculation of dilutive shares excludes the effect of the following options that are considered anti-dilutive (in thousands): | |||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Anti-dilutive stock option shares | 65 | 119 | 1,023 | ||||||||||
Stock-Based Compensation | |||||||||||||
We estimate the fair value of share-based payment awards on the date of grant using an option-pricing model and recognize stock-based compensation expense during each period based on the value of that portion of share-based payment awards that is ultimately expected to vest during the period, reduced for estimated forfeitures. We estimate forfeitures at the time of grant based on historical data and revise, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Compensation expense recognized for all employee stock options granted is recognized using the straight-line method over their respective vesting periods of three to five years. | |||||||||||||
The following table sets forth the stock-based compensation expense that we recognized for the periods indicated (in thousands): | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Stock-based compensation expense relating to: | |||||||||||||
Employee and director stock options | $ | 3,751 | $ | 3,438 | $ | 3,112 | |||||||
Employee stock purchases | 741 | 553 | 307 | ||||||||||
Total stock-based compensation expense | $ | 4,492 | $ | 3,991 | $ | 3,419 | |||||||
Stock-based compensation expense relating to: | |||||||||||||
Cost of revenues | $ | 406 | $ | 325 | $ | 278 | |||||||
Sales and marketing | 864 | 873 | 764 | ||||||||||
Research and development | 990 | 893 | 750 | ||||||||||
General and administrative | 2,232 | 1,900 | 1,627 | ||||||||||
Total stock-based compensation expense | $ | 4,492 | $ | 3,991 | $ | 3,419 | |||||||
We use the Black-Scholes option valuation model to estimate the fair value of share-based payment awards on the date of grant, which requires us to make a number of highly complex and subjective assumptions, including stock price volatility, expected term, risk-free interest rates and projected employee stock option exercise behaviors. In the case of options we grant, our assumption of expected volatility is based on the historical volatility of our stock price over the term equal to the expected life of the options. We base the risk-free interest rate on U.S. Treasury zero-coupon issues with a remaining term equal to the expected life of the options assumed at the date of grant. The estimated expected life represents the weighted-average period the stock options are expected to remain outstanding, determined based on an analysis of historical exercise behavior. | |||||||||||||
The following are the weighted average assumptions used in the Black-Scholes valuation model for the periods indicated: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Expected dividend yield | — | — | — | ||||||||||
Risk-free interest rate | 0.53 | % | 0.37 | % | 1.39 | % | |||||||
Expected volatility | 48 | % | 50 | % | 48 | % | |||||||
Expected life (in years) | 3.6 | 3.7 | 4.4 | ||||||||||
Expected forfeiture rate | 7 | % | 7 | % | 9 | % | |||||||
We elected to utilize the alternative transition method for calculating the tax effects of stock-based compensation. The alternative transition method includes computational guidance to establish the beginning balance of the additional paid-in capital pool (“APIC Pool”) related to the tax effects of employee stock-based compensation, and a simplified method to determine the subsequent impact on the APIC Pool for employee stock-based compensation awards that are vested and outstanding upon adoption of ASC 718. There has been no tax benefit recognized to date from the exercise of stock options. A tax benefit will be recorded in additional paid-in capital when these deductions reduce our future income taxes payable. | |||||||||||||
At December 31, 2013, we had approximately $4.1 million of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under our stock incentive plans, which is expected to be recognized over a weighted-average period of approximately 2 years. | |||||||||||||
Treasury Stock | |||||||||||||
During 2013, 2012 and 2011, we repurchased approximately 179,000 shares for $4.3 million, 1.5 million shares for $31.8 million and 426,000 shares for $5.3 million, respectively. | |||||||||||||
Segment Information | |||||||||||||
We operate in a single segment. We are a provider of Internet-based postage solutions located in a single geographic location from which substantially all of our revenue is generated. While components of revenue include both services and products associated with our postage solutions, our Chief Executive Officer, who is the chief operating decision maker, evaluates performance, makes operating decisions and allocates resources based on the financial data provided in our financial statements as a single operating segment. | |||||||||||||
Website Development Costs | |||||||||||||
We develop and maintain our website. Costs associated with the operation of our website consist primarily of software and hardware purchased from third parties and administrative cost relating to the maintenance and development of the website. Costs related to the purchase of software and hardware are capitalized based on our capitalization policy. These capitalized costs are amortized based on their estimated useful life. Administrative costs related to the maintenance and development of our website are expensed as incurred. |
Intangible_Assets
Intangible Assets | 12 Months Ended | |
Dec. 31, 2013 | ||
Intangible Assets [Abstract] | ' | |
Intangible Assets | ' | |
3 | Intangible Assets | |
We have amortizable and non-amortizable intangible assets consisting of patents, trademarks, other intellectual property and lease-in-place intangible assets with a gross carrying value of $9.4 million as of December 31, 2013 and 2012, and accumulated amortization of $8.3 million and $8.1 million as of December 30, 2013 and 2012, respectively. During 2012, we completed our purchase of our new corporate headquarters for an aggregate purchase price of $13.4 million. As a result of the purchase we also acquired existing leases of building tenants, and $700,000 of the initial purchase price was allocated to lease-in-place intangible assets and is being amortized over the remaining actual lease terms, which are as long as 5.5 years. The expected useful lives of our amortizable intangible assets range from approximately 5 to 17 years. As of December 31, 2013, the remaining weighted average amortization period for our amortizable intangible assets is approximately 4.2 years. During 2013, we assessed whether events or changes in circumstances occurred that could potentially indicate that the carrying amount of our intangible assets may not be recoverable. We concluded that there were no such events or changes in circumstances during 2013 and determined that the fair value of our intangible assets was in excess of their carrying value as of December 31, 2013. Aggregate amortization expense on patents, trademarks and lease-in-place intangible asset was approximately $215,000, $269,000 and $47,000 for the years ended December 31, 2013, 2012 and 2011, respectively. Our average expected yearly amortization expense for the next five years is approximately $107,000. |
Cash_Cash_Equivalents_and_Inve
Cash, Cash Equivalents and Investments | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Cash, Cash Equivalents and Investments [Abstract] | ' | ||||||||||||||||
Cash, Cash Equivalents and Investments | ' | ||||||||||||||||
4 | Cash, Cash Equivalents and Investments | ||||||||||||||||
Our cash equivalents and investments consist of money market, U.S. government obligations, asset-backed securities and public corporate debt securities at December 31, 2013 and 2012. We consider all highly liquid investments with an original or remaining maturity of three months or less at the date of purchase to be cash equivalents. All of our investments are classified as available for sale and are recorded at market value using the specific identification method. Realized gains and losses are reflected in other income, net using the specific identification method. There was no material realized gain or loss with respect to our investments during 2013, 2012 and 2011. Unrealized gains and losses are included as a separate component of stockholders' equity. We do not intend to sell investments with an amortized cost basis exceeding fair value, and it is not likely that we will be required to sell the investments before recovery of their amortized cost bases. We have seven securities with a total fair value of $2.9 million that have unrealized losses of approximately $10,000 as of December 31, 2013. | |||||||||||||||||
On at least a quarterly basis, we evaluate our available for sale securities and record an “other-than-temporary impairment” (“OTTI”) if we believe their fair value is less than historical cost and it is probable that we will not collect all contractual cash flows. We did not record any OTTI during 2013, 2012 and 2011 after evaluating a number of factors including, but not limited to: | |||||||||||||||||
· | How much fair value has declined below amortized cost | ||||||||||||||||
· | The financial condition of the issuers | ||||||||||||||||
· | Significant rating agency changes on the issuers | ||||||||||||||||
· | Our intent and ability to hold the security for a period of time sufficient to allow for any anticipated recovery in fair value | ||||||||||||||||
The following table summarizes our cash, cash equivalents, and investments as of December 31, 2013 and 2012 (in thousands): | |||||||||||||||||
31-Dec-13 | |||||||||||||||||
Cost or | Gross | Gross | |||||||||||||||
Amortized | Unrealized | Unrealized | Estimated | ||||||||||||||
Cost | Gains | Losses | Fair Value | ||||||||||||||
Cash and cash equivalents: | |||||||||||||||||
Cash | $ | 46,792 | — | — | $ | 46,792 | |||||||||||
Money market | 19,882 | — | — | 19,882 | |||||||||||||
Cash and cash equivalents | 66,674 | — | — | 66,674 | |||||||||||||
Short-term investments: | |||||||||||||||||
Corporate bonds and asset backed securities | 6,479 | 45 | — | 6,524 | |||||||||||||
Short-term investments | 6,479 | 45 | — | 6,524 | |||||||||||||
Long-term investments: | |||||||||||||||||
Corporate bonds and asset backed securities | 13,917 | 106 | (11 | ) | 14,012 | ||||||||||||
Long-term investments | 13,917 | 106 | (11 | ) | 14,012 | ||||||||||||
Cash and cash equivalents and investments | $ | 87,070 | 151 | (11 | ) | $ | 87,210 | ||||||||||
31-Dec-12 | |||||||||||||||||
Cost or | Gross | Gross | |||||||||||||||
Amortized | Unrealized | Unrealized | Estimated | ||||||||||||||
Cost | Gains | Losses | Fair Value | ||||||||||||||
Cash and cash equivalents: | |||||||||||||||||
Cash | $ | 7,043 | — | — | $ | 7,043 | |||||||||||
Money market | 22,533 | — | — | 22,533 | |||||||||||||
Cash and cash equivalents | 29,576 | — | — | 29,576 | |||||||||||||
Short-term investments: | |||||||||||||||||
Corporate notes and bonds | 5,248 | 66 | — | 5,314 | |||||||||||||
U.S. government and agency securities | 1,005 | 4 | — | 1,009 | |||||||||||||
Short-term investments | 6,253 | 70 | — | 6,323 | |||||||||||||
Long-term investments: | |||||||||||||||||
Corporate bonds and asset backed securities | 10,539 | 190 | (9 | ) | 10,720 | ||||||||||||
Long-term investments | 10,539 | 190 | (9 | ) | 10,720 | ||||||||||||
Cash and equivalents and investments | $ | 46,368 | 260 | (9 | ) | $ | 46,619 | ||||||||||
The following table summarizes contractual maturities of our marketable fixed-income securities as of December 31, 2013(in thousands): | |||||||||||||||||
Amortized | Estimated | ||||||||||||||||
Cost | Fair Value | ||||||||||||||||
Due within one year | $ | 6,479 | $ | 6,524 | |||||||||||||
Due after one year through five years | 13,917 | 14,012 | |||||||||||||||
Due after five years through ten years | — | — | |||||||||||||||
Total | $ | 20,396 | $ | 20,536 | |||||||||||||
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Fair Value Measurements [Abstract] | ' | ||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||
5 | Fair Value Measurements | ||||||||||||||||
Financial assets measured at fair value on a recurring basis are classified in one of the three following categories, which are described below: | |||||||||||||||||
Level 1 - Valuations based on unadjusted quoted prices for identical assets in an active market. | |||||||||||||||||
Level 2 - Valuations based on quoted prices in markets where trading occurs infrequently or whose values are based on quoted prices of instruments with similar attributes in active markets. | |||||||||||||||||
Level 3 - Valuations based on inputs that are unobservable and involve management judgment and our own assumptions about market participants and pricing. | |||||||||||||||||
The following table summarizes our financial assets measured at fair value on a recurring basis as of December 31, 2013 and 2012 (in thousands): | |||||||||||||||||
Fair Value Measurement at Reporting Date Using | |||||||||||||||||
31-Dec-13 | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | ||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||
Description | |||||||||||||||||
Cash and cash equivalents | $ | 66,674 | $ | 66,674 | $ | — | $ | — | |||||||||
Available-for-sale debt securities | 20,536 | — | 20,536 | — | |||||||||||||
Total | $ | 87,210 | $ | 66,674 | $ | 20,536 | $ | — | |||||||||
Fair Value Measurement at Reporting Date Using | |||||||||||||||||
Description | 31-Dec-12 | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||
Cash and cash equivalents | $ | 29,576 | $ | 29,576 | $ | — | $ | — | |||||||||
Available-for-sale debt securities | 17,043 | — | 17,043 | — | |||||||||||||
Total | $ | 46,619 | $ | 29,576 | $ | 17,043 | $ | — | |||||||||
The fair value of our available-for-sale debt securities included in the Level 2 category is based on the market values obtained from an independent pricing service that were evaluated using pricing models that vary by asset class and may incorporate available trade, bid and other market information and price quotes from well established independent pricing vendors and broker-dealers. | |||||||||||||||||
There were no non-financial assets or liabilities that were required to be measured at fair value as of December 31, 2013 and 2012. |
Accounts_Payable_and_Accrued_E
Accounts Payable and Accrued Expenses | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Accounts Payable and Accrued Expenses [Abstract] | ' | ||||||||
Accounts Payable and Accrued Expenses | ' | ||||||||
6 | Accounts Payable and Accrued Expenses | ||||||||
The following table summarizes our accounts payable and accrued expenses as of December 31, 2013 and 2012 (in thousands): | |||||||||
2013 | 2012 | ||||||||
Payroll and related accrual | $ | 4,575 | $ | 3,783 | |||||
Cost of sale, inventory and materials accrual | 2,035 | 2,366 | |||||||
Construction and related fixed asset accrual | 401 | 2,216 | |||||||
Professional fees accrual | 688 | 690 | |||||||
Sales and marketing related accrual | 2,457 | 2,832 | |||||||
Operating expenses related accrual | 1,975 | 1,651 | |||||||
Other accruals | 1,797 | 2,828 | |||||||
Accounts payable and accrued expenses | $ | 13,928 | $ | 16,366 | |||||
Allowance_for_Doubtful_Account
Allowance for Doubtful Accounts | 12 Months Ended | |
Dec. 31, 2013 | ||
Allowance for Doubtful Accounts [Abstract] | ' | |
Allowance for Doubtful Accounts | ' | |
7 | Allowance for Doubtful Accounts | |
As of December 31, 2013 and 2012, our allowance for doubtful accounts totaled approximately $283,000 and $239,000, respectively. Increases in our allowance for doubtful accounts totaled approximately $44,000 and $122,000 for 2013 and 2012, respectively. There were no material write-offs against the allowance for doubtful accounts during 2013 or 2012. |
Property_and_Equipment
Property and Equipment | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property and Equipment [Abstract] | ' | ||||||||
Property and Equipment | ' | ||||||||
8 | Property and Equipment | ||||||||
Property and equipment is summarized as follows (in thousands): | |||||||||
2013 | 2012 | ||||||||
Land | $ | 7,156 | $ | 7,156 | |||||
Building | 4,886 | 4,886 | |||||||
Building improvements | 13,483 | 13,569 | |||||||
Furniture and equipment | 987 | 1,362 | |||||||
Computers and software | 12,228 | 8,311 | |||||||
38,740 | 35,284 | ||||||||
Less accumulated depreciation and amortization | (8,977 | ) | (6,653 | ) | |||||
Property and equipment, net | $ | 29,763 | $ | 28,631 | |||||
During 2013, 2012 and 2011, depreciation expense was approximately $2.4 million, $1.4 million and $838,000, respectively. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Taxes [Abstract] | ' | ||||||||||||
Income Taxes | ' | ||||||||||||
9 | Income Taxes | ||||||||||||
During 2013, our net income tax benefit consisted of federal and state alternative minimum taxes and a reduction of a portion of our valuation allowance on our deferred tax asset (as described below). Our effective income tax rate differs from the statutory income tax rate primarily as a result of the reduction of a portion of our valuation allowance. We evaluated the appropriateness of our deferred tax assets and related valuation allowance in accordance with ASC 740 based on all available positive and negative evidence. A valuation allowance is recorded against a portion of our gross deferred tax assets as we have determined the realization of these assets does not meet the more likely than not criteria. | |||||||||||||
On March 6, 2012, we entered into a binding agreement with PSI Systems, Inc. (PSI) to resolve all outstanding patent litigation among the parties. Because the PSI litigation settlement occurred during the first quarter of 2012, we eliminated what had previously been negative evidence at that time. The litigation settlement then became positive evidence because (1) it eliminated the hard-to-predict fluctuations in litigation expenditures, which we expected to be material in future forecasts, (2) it eliminated the potential for a material negative financial judgment against us and (3) it eliminated the possibility of an injunction against us. We believe the other positive and negative evidence we evaluated is consistent (e.g., no material change has occurred) relative to our evaluation of this evidence in prior periods. Based on this discrete event, we extended our forecast of projected taxable income from two years to three years for the portion of our deferred tax asset for which it was more likely than not that a tax benefit would be realized under ASC 740 as of March 31, 2012. As a result, we released a portion of our valuation allowance totaling $11.9 million during the first quarter of 2012. | |||||||||||||
During the fourth quarter of 2012, we re-evaluated positive and negative evidence relating to our gross deferred tax assets and valuation allowance noting that there was no additional discrete event subsequent to the first quarter of 2012. During the fourth quarter of 2012, we updated our three year forecast of projected taxable income. Based on the updated forecast and a change in the California state tax laws, we recorded another release of a portion of our valuation allowance in the fourth quarter of 2012 totaling approximately $2.5 million. | |||||||||||||
During the fourth quarter of 2013, we re-evaluated positive and negative evidence relating to our gross deferred tax assets and valuation allowance noting that there was no discrete event. During the fourth quarter of 2012, we updated our three year forecast of projected taxable income. Based on the updated forecast, we recorded another release of a portion of our valuation allowance in the fourth quarter of 2013 totaling approximately $9.7 million. | |||||||||||||
As of December 31, 2013, we recorded approximately $40 million of net deferred tax assets, and we continued to maintain a valuation allowance for the remainder of our gross deferred tax assets. | |||||||||||||
In making these determinations, we considered the available positive and negative evidence, including our recent earnings trend, expected future taxable income and the federal and state effective tax rates related to the future taxable income. As of December 31, 2013, we continued to maintain a valuation allowance for the remainder of our gross deferred tax assets. | |||||||||||||
In September 2008, the State of California passed legislation temporarily suspending the use of NOLs to offset current state income tax expense for the tax years 2008 and 2009. In October 2010, the State of California passed legislation extending this suspension for tax years 2010 and 2011. During 2011 we were in a taxable loss position for tax reporting purposes. We recorded a current tax provision for corporate alternative minimum federal taxes and state taxes of approximately $158,000, $565,000 and $0 during the years ended December 31, 2013, 2012 and 2011, respectively. Total tax benefit recorded was approximately $9.6 million, $13.9 million and $8.5 million during the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||
Under the guidance related to uncertain tax positions, we are required to determine whether it is more likely than not that a tax position will be sustained upon examination based on the technical merits of the position. A tax position that meets the more likely than not recognition threshold is measured to determine the amount of liability or benefit to recognize in the financial statements. | |||||||||||||
In accordance with the guidance we have evaluated our research and development tax credits for uncertain tax positions. As of December 31, 2013 we have research and development tax credits totaling $5.8 million for Federal and California purposes. | |||||||||||||
The following is a tabular reconciliation of the total amounts of unrecognized tax benefits for the years ended December 31, 2013, 2012 and 2011 (in thousands): | |||||||||||||
Unrecognized Tax Benefits | |||||||||||||
Balance at December 31, 2010 | $ | (1,733 | ) | ||||||||||
Reduction for tax positions of prior years | 71 | ||||||||||||
Addition for tax position of the current year | (83 | ) | |||||||||||
Settlement | — | ||||||||||||
Balance at December 31, 2011 | $ | (1,745 | ) | ||||||||||
Reductionfor tax positions of prior years | — | ||||||||||||
Addition for tax position of the current year | (160 | ) | |||||||||||
Settlement | — | ||||||||||||
Balance at December 31, 2012 | $ | (1,905 | ) | ||||||||||
Reductions for tax positions of prior years | — | ||||||||||||
Additions for tax position of the current year | (409 | ) | |||||||||||
Settlement | — | ||||||||||||
Balance at December 31, 2013 | $ | (2,314 | ) | ||||||||||
Our policy is to recognize interest and penalties expense, if any, related to unrecognized tax benefits as a component of income tax expense. As of December 31, 2013, we have not recorded any interest and penalty expense. | |||||||||||||
We remain subject to examination by the relevant tax authorities. These include the 2010 through 2012 tax years for federal purposes and the 2009 through 2012 tax years for California purposes. | |||||||||||||
Our effective tax rate differs from the statutory federal income tax rate primarily as a result of the establishment of a valuation allowance for the future benefits to be received from the deferred tax assets including net operating loss carryforwards and tax credit carryforwards. The tax effect of temporary differences that give rise to a significant portion of the deferred tax assets and liabilities at December 31, 2013 and 2012 are presented below (in thousands): | |||||||||||||
2013 | 2012 | ||||||||||||
Deferred tax assets (liabilities): | |||||||||||||
Net operating loss carryforward | $ | 57,277 | $ | 63,830 | |||||||||
Tax credits | 7,555 | 5,467 | |||||||||||
Depreciation | (775 | ) | (139 | ) | |||||||||
Amortization | 322 | 494 | |||||||||||
Accruals | 3,157 | 2,214 | |||||||||||
Total deferred tax assets | 67,536 | 71,866 | |||||||||||
Valuation allowance | (27,274 | ) | (41,317 | ) | |||||||||
Net deferred tax assets | $ | 40,262 | $ | 30,549 | |||||||||
We have NOL carryforwards of approximately $200 million and $95 million for federal and state income tax purposes, respectively, at December 31, 2013 which can be carried forward to offset future taxable income. We have available tax credit carryforwards of approximately $4.0 million and $3.5 million for federal and state income tax purposes, respectively at December 31, 2013, which can be carried forward to offset future taxable liabilities. Our federal NOLs will begin to expire in 2020, and our state NOLs have begun to expire. The federal tax credits begin to expire in 2018. Under California law, California tax credits do not have an expiration date. | |||||||||||||
We recognize excess tax benefits associated with the exercise of stock options directly to stockholders’ equity only when realized. Accordingly, deferred tax assets are not recognized for NOL carryforwards resulting from excess tax benefits. As of December 31, 2013, deferred tax assets do not include approximately $18.2 million of these tax effected excess tax benefits from employee stock option exercises that are a component of our NOL carryforwards. Accordingly, additional paid-in capital will increase up to an additional $18.2 million if and when such excess tax benefits are realized. | |||||||||||||
The Federal Tax Reform Act of 1986 and similar state tax laws contain provisions that may limit the NOL carryforwards to be used in any given year upon the occurrence of certain events, including a significant change in ownership interests. | |||||||||||||
We maintain a study to understand the status of net operating losses. Based on that study, we believe that we have not undergone an Internal Revenue Code (IRC) Section 382 change of ownership that would trigger an impairment of the use of our NOLs since our secondary offering in December 1999. Under IRC Section 382 rules, a change in ownership can occur whenever there is a shift in ownership by more than 50 percentage points by one or more “5% shareholders” within a three-year period. When a change of ownership is triggered, the NOLs may be impaired. We estimate that, as of December 31, 2013 we were at approximately 19% level compared with the 50% level that would trigger impairment of our NOLs. | |||||||||||||
The income tax expense (benefit) consists of (in thousands): | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Current: | |||||||||||||
Federal | $ | 226 | $ | 411 | $ | — | |||||||
State | (68 | ) | 154 | — | |||||||||
158 | 565 | — | |||||||||||
Deferred: | |||||||||||||
Federal | (7,842 | ) | (15,958 | ) | (7,245 | ) | |||||||
State | (1,871 | ) | 1,534 | (1,230 | ) | ||||||||
(9,713 | ) | (14,424 | ) | (8,475 | ) | ||||||||
Benefit for income taxes | $ | (9,555 | ) | $ | (13,859 | ) | $ | (8,475 | ) | ||||
Differences between the benefit for income taxes and income taxes at the statutory federal income tax rate are as follows (in thousands): | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Income tax at statutory federal rate | $ | 11,764 | $ | 8,823 | $ | 6,057 | |||||||
State income taxes, net of federal benefit | 652 | 1,516 | 1,044 | ||||||||||
Effect of permanent differences | 199 | 12 | 12 | ||||||||||
Change in valuation allowance - discrete release | (9,713 | ) | (14,424 | ) | (8,475 | ) | |||||||
Other changes in valuation allowance, net | (10,364 | ) | (13,431 | ) | (7,225 | ) | |||||||
Change in state rate | (789 | ) | 4,186 | — | |||||||||
Other | (1,304 | ) | (541 | ) | 112 | ||||||||
$ | (9,555 | ) | $ | (13,859 | ) | $ | (8,475 | ) | |||||
Employee_Stock_Plans
Employee Stock Plans | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||
Employee Stock Plans [Abstract] | ' | ||||||||||||||||||||||
Employee Stock Plans | ' | ||||||||||||||||||||||
10 | Employee Stock Plans | ||||||||||||||||||||||
Stock Incentive Plans | |||||||||||||||||||||||
Our 1999 Stock Incentive Plan (the “1999 Plan”), which became effective in June 1999, was the successor to the 1998 Stock Plan (the “1998 Plan”). Upon approval of the 1999 Plan, all outstanding options under the 1998 Plan were transferred to the 1999 Plan, and no further option grants were made under the 1998 Plan. All outstanding options under the 1998 Plan continue to be governed by the terms and conditions of the existing option agreements for those grants, unless our compensation committee decides to extend one or more features of the 1999 Plan to those options. In June 2009, our 1999 Plan expired and no further options grants were made under the 1999 Plan. Our 2010 Equity Incentive Plan (the “2010 Plan”) was approved by our stockholders in June 2010. Under the 2010 Plan, we are authorized to issue 3,500,000 shares of common stock and stock units, although “full value” awards (such as restricted stock and restricted stock units) will be counted against the 2010 Plan’s overall limits as two shares (rather than one), while options and stock appreciation rights will be counted as one share. A summary of stock option activity is as follows (in thousands, except per share amounts): | |||||||||||||||||||||||
Options Outstanding | |||||||||||||||||||||||
Number of Options | Weighted Average Exercise Price | ||||||||||||||||||||||
Balance at December 31, 2010 | 2,778 | $ | 12.58 | ||||||||||||||||||||
Granted | 1,718 | 13.2 | |||||||||||||||||||||
Forfeited | (136 | ) | 12.01 | ||||||||||||||||||||
Exercised | (2,043 | ) | 12.25 | ||||||||||||||||||||
Balance at December 31, 2011 | 2,317 | $ | 13.36 | ||||||||||||||||||||
Granted | 192 | 25.5 | |||||||||||||||||||||
Forfeited | (88 | ) | 21.44 | ||||||||||||||||||||
Exercised | (560 | ) | 13.04 | ||||||||||||||||||||
Balance at December 31, 2012 | 1,861 | $ | 14.33 | ||||||||||||||||||||
Granted | 164 | 34.29 | |||||||||||||||||||||
Forfeited | (38 | ) | 21.57 | ||||||||||||||||||||
Exercised | (991 | ) | 13.55 | ||||||||||||||||||||
Balance at December 31, 2013 | 996 | $ | 18.12 | ||||||||||||||||||||
The weighted-average fair value of stock grants for 2013, 2012 and 2011 using the Black-Scholes valuation method are as follows: | |||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||
Weighted-average fair value of stock options with an exercise price equal to the market price on the grant date | $ | 5.1 | $ | 5.04 | $ | 5.05 | |||||||||||||||||
Weighted-average fair value of stock options with an exercise price greater than the market price on the grant date | — | — | — | ||||||||||||||||||||
Total | $ | 5.1 | $ | 5.04 | $ | 5.05 | |||||||||||||||||
Weighted average exercise prices for stock options exercised in 2013 are as follows: | |||||||||||||||||||||||
2013 | |||||||||||||||||||||||
Weighted-average exercise price of stock options with an exercise price equal to the market price on the grant date | $ | 13.56 | |||||||||||||||||||||
Weighted-average exercise price of stock options with an exercise price greater than the market price on the grant date | 13.4 | ||||||||||||||||||||||
Total weighted-average exercise price | $ | 13.55 | |||||||||||||||||||||
The following tables summarize information concerning outstanding and exercisable options at December 31, 2013 (in thousands, except number of years and per share amounts): | |||||||||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||||||||
Range of Exercise Prices | Number Outstanding | Weighted Average Remaining Contractual Life (in Years) | Weighted Average Exercise Price per Share | Number Exercisable | Weighted Average Exercise Price per Share | ||||||||||||||||||
$ | 0.00 - $9.99 | 40 | 6.5 | $ | 6.61 | 28 | $ | 9.15 | |||||||||||||||
$ | 10.00 - $19.99 | 649 | 6.3 | 12.76 | 408 | 12.81 | |||||||||||||||||
$ | 20.00 - $29.99 | 191 | 8.1 | 25.12 | 55 | 24.23 | |||||||||||||||||
$ | 30.00 - $39.99 | 48 | 8.6 | 36.21 | 20 | 35.79 | |||||||||||||||||
$ | 40.00 - $49.99 | 68 | 9.7 | 43.55 | 1 | 44.03 | |||||||||||||||||
$ | 0.00 - $49.99 | 996 | 7 | $ | 18.12 | 512 | $ | 14.75 | |||||||||||||||
The following table summarizes stock option activity for 2013: | |||||||||||||||||||||||
Number of Stock Options (in thousands) | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life | Aggregate Intrinsic Value | ||||||||||||||||||||
(in years) | (in thousands) | ||||||||||||||||||||||
Outstanding at December 31, 2012 | 1,861 | $ | 14.33 | ||||||||||||||||||||
Granted | 164 | 34.29 | |||||||||||||||||||||
Exercised | (991 | ) | 13.55 | ||||||||||||||||||||
Forfeited or expired | (38 | ) | 21.57 | ||||||||||||||||||||
Balance at December 31, 2012 | 996 | $ | 18.12 | 7 | $ | 23,991 | |||||||||||||||||
Exercisable at December 31, 2012 | 512 | $ | 14.75 | 5.8 | $ | 13,991 | |||||||||||||||||
The aggregate intrinsic value in the table above represents the total pretax intrinsic value, based on our closing stock price of $42.10 at December 31, 2013, the last trading day of 2013, which would have been received by award holders had all award holders exercised their awards that were in-the-money as of that date. | |||||||||||||||||||||||
The weighted average grant date fair value of options granted during 2013, 2012 and 2011 was $13.48, $9.41 and $5.05, respectively. The weighted average grant date fair value of options vested during 2013, 2012 and 2011 was $5.47, $5.03 and $4.78, respectively. The total intrinsic value of options exercised during 2013, 2012 and 2011 was approximately $24.0 million, $8.4 million and $25.1 million, respectively. | |||||||||||||||||||||||
The following table summarizes the status of our non-vested stock options as of December 31, 2013: | |||||||||||||||||||||||
Non-vested | Weighted Average Grant Date Fair Value | ||||||||||||||||||||||
Number of Stock Options (in thousands) | |||||||||||||||||||||||
Non-vested at December 31, 2012 | 996 | $ | 5.67 | ||||||||||||||||||||
Granted | 164 | 13.48 | |||||||||||||||||||||
Vested | (641 | ) | 8.26 | ||||||||||||||||||||
Forfeited / Cancelled | (35 | ) | 5.47 | ||||||||||||||||||||
Non-vested at December 31, 2013 | 484 | $ | 8.48 | ||||||||||||||||||||
As of December 31, 2013, there was $4.1 million of total unrecognized compensation cost related to non-vested share-based compensation arrangements, which is expected to be recognized over a weighted-average period of approximately 2 years. | |||||||||||||||||||||||
Employee Stock Purchase Plan | |||||||||||||||||||||||
In June 1999, our Board of Directors adopted an Employee Stock Purchase Plan (ESPP), which allows our eligible employees to purchase shares of common stock, at semi-annual intervals, with their accumulated payroll deductions. | |||||||||||||||||||||||
Eligible participants may contribute up to 15% of cash earnings through payroll deductions, and the accumulated deductions will be applied to the purchase of shares on each semi-annual purchase date. The purchase price per share is equal to 85% of the fair market value per share on the participant’s entry date into the offering period or, if lower, 85% of the fair market value per share on the semi-annual purchase date. | |||||||||||||||||||||||
Upon adoption of the plan, 150,000 shares of common stock were reserved for issuance. This reserve automatically increases on the first trading day in January each year, by an amount equal to 1% of the total number of outstanding shares of our common stock on the last trading day in December in the prior year. In no event will any annual increase exceed 260,786 shares. | |||||||||||||||||||||||
In July 2009, our Board of Directors amended our ESPP to extend it for a period of ten years beyond its original expiration date of July 31, 2009. Under this amendment, the total shares available for issuance may not increase. As of December 31, 2013 and 2012, we had approximately 1.7 million shares available for issuance under our ESPP. Total shares of common stock issued pursuant to the ESPP during 2013, 2012 and 2011 were approximately 56,000 each year. | |||||||||||||||||||||||
Savings Plan | |||||||||||||||||||||||
During 1999, we implemented a savings plan for all eligible employees, which qualifies under Section 401(k) of the Internal Revenue Code. Participating employees may contribute any percentage of their pretax salary, but not more than statutory dollar limits. We match 50% of the first 4% a participant contributes. We expensed approximately $326,000, $303,000 and $276,000 in 2013, 2012 and 2011, respectively, related to this plan. |
Legal_Proceedings
Legal Proceedings | 12 Months Ended | |
Dec. 31, 2013 | ||
Legal Proceedings [Abstract] | ' | |
Legal Proceedings | ' | |
11 | Legal Proceedings | |
We are subject to various routine legal proceedings and claims incidental to our business, and we do not believe that these proceedings and claims would reasonably be expected to have a material adverse effect on our financial position, results of operations or cash flows. |
Subsequent_Events
Subsequent Events | 12 Months Ended | |
Dec. 31, 2013 | ||
Subsequent Events [Abstract] | ' | |
Subsequent Events | ' | |
12 | Subsequent Events | |
We are not aware of any material subsequent events or transactions that have occurred that would require recognition in the financial statements or disclosure in the notes to the financial statements. |
Quarterly_Information_Unaudite
Quarterly Information (Unaudited) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Quarterly Information (Unaudited) [Abstract] | ' | ||||||||||||||||
Quarterly Information (Unaudited) | ' | ||||||||||||||||
13 | Quarterly Information (Unaudited) | ||||||||||||||||
Quarter Ended | |||||||||||||||||
March | June | September | December | ||||||||||||||
(in thousands except per share data) | |||||||||||||||||
Fiscal Year 2013: | |||||||||||||||||
Revenues | $ | 32,101 | $ | 32,109 | $ | 31,245 | $ | 32,364 | |||||||||
Gross profit | 24,449 | 25,021 | 24,661 | 26,188 | |||||||||||||
Income from operations | 7,815 | 8,545 | 8,761 | 8,997 | |||||||||||||
Net income | 7,906 | 8,613 | 8,763 | 18,871 | (1) | ||||||||||||
Net income per share: | |||||||||||||||||
Basic | $ | 0.52 | $ | 0.56 | $ | 0.55 | $ | 1.17 | |||||||||
Diluted | $ | 0.49 | $ | 0.53 | $ | 0.53 | $ | 1.13 | |||||||||
Weighted average shares outstanding: | |||||||||||||||||
Basic | 15,328 | 15,486 | 15,816 | 16,124 | |||||||||||||
Diluted | 16,000 | 16,163 | 16,389 | 16,640 | |||||||||||||
Fiscal Year 2012: | |||||||||||||||||
Revenues | $ | 28,293 | $ | 28,227 | $ | 29,071 | $ | 30,070 | |||||||||
Gross profit | 21,030 | 21,589 | 22,578 | 22,708 | |||||||||||||
Income from operations | 4,421 | 5,824 | 7,085 | 6,827 | |||||||||||||
Net income | 16,360 | (2) | 5,923 | 6,977 | 9,297 | (2) | |||||||||||
Net income per share: | |||||||||||||||||
Basic | $ | 1.01 | $ | 0.36 | $ | 0.43 | $ | 0.6 | |||||||||
Diluted | $ | 0.95 | $ | 0.34 | $ | 0.42 | $ | 0.58 | |||||||||
Weighted average shares outstanding: | |||||||||||||||||
Basic | 16,250 | 16,468 | 16,103 | 15,502 | |||||||||||||
Diluted | 17,173 | 17,196 | 16,675 | 16,129 | |||||||||||||
Quarterly and year-to-date computations of per share amounts are made independently. Therefore, the sum of per share amounts for the quarters may not agree with per share amounts for the year shown elsewhere in our Annual Report on Form 10-K. | |||||||||||||||||
(1) During the fourth quarter of 2013 we released a portion of our valuation allowance totaling approximately $9.7 million. (See Income Taxes- Notes to Consolidated Financial Statements). | |||||||||||||||||
(2) During the first quarter of 2012 we released a portion of our valuation allowance totaling approximately $11.9 million. During the fourth quarter of 2012 we released another portion of our valuation allowance totaling approximately $2.5 million (See Income Taxes- Notes to Consolidated Financial Statements). |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Summary of Significant Accounting Policies [Abstract] | ' | ||||||||||||
Principles of Consolidation | ' | ||||||||||||
Principles of Consolidation | |||||||||||||
The consolidated financial statements include the accounts of Stamps.com Inc. and PhotoStamps Inc. In October 2009, we formed PhotoStamps Inc., a wholly-owned subsidiary, for the purpose of managing our retail gift card operations. Because 100% of the voting control is held by us, we have consolidated PhotoStamps Inc. in the accompanying consolidated financial statements. All significant intercompany accounts and transactions have been eliminated. | |||||||||||||
Use of Estimates and Risk Management | ' | ||||||||||||
Use of Estimates and Risk Management | |||||||||||||
The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the amounts reported in the financial statements and the accompanying notes. Actual results could differ from those estimates, and such differences may be material to the financial statements. Examples include estimates of loss contingencies, promotional coupon redemptions, the number of PhotoStamps retail boxes that will not be redeemed, deferred income taxes and estimates regarding the useful lives of our building, patents and other amortizable intangible assets. | |||||||||||||
Contingencies and Litigation | ' | ||||||||||||
Contingencies and Litigation | |||||||||||||
We are subject to various routine litigation matters as a claimant and a defendant. We record any amounts recovered in these matters when received. We record liabilities for claims against us when the loss is probable and estimable. Amounts recorded are based on reviews by outside counsel, in-house counsel and management. Actual results could differ from estimates. | |||||||||||||
Cash Equivalents and Investments | ' | ||||||||||||
Cash Equivalents and Investments | |||||||||||||
We consider all highly liquid investments with an original or remaining maturity of three months or less at the date of purchase to be cash equivalents. | |||||||||||||
Our cash equivalents and investments consisted of money market funds, U.S. government obligations, asset-backed securities and public corporate debt securities at December 31, 2013 and 2012. All investments are classified as available for sale and are recorded at market value using the specific identification method. Realized gains and losses are reflected in interest and other income, net while unrealized gains and losses are included as a separate component of stockholders' equity. | |||||||||||||
Accounts Receivable | ' | ||||||||||||
Accounts Receivable | |||||||||||||
Our accounts receivable relate to PC Postage services, PhotoStamps sales, branded insurance provided to customers prior to billing and other receivables. Accounts receivable are recorded at the invoiced amount, net of allowances for uncollectible accounts of approximately $283,000 and $239,000 as of December 31, 2013 and 2012, respectively, and were $17.5 million and $14.4 million as of December 31, 2013 and 2012, respectively. | |||||||||||||
We evaluate the collectability of our accounts receivable based on a combination of factors. If we become aware of a customer’s inability to meet its financial obligations, an allowance is recorded to reduce the net receivable to the amount reasonably believed to be collectible from the customer. For all other customers, we recognize allowances for doubtful accounts based on the length of time the receivables are past due, the current business environment and our historical experience. If the financial condition of our customers deteriorates, resulting in their inability to make payments, additional provisions are recorded in that period. Accounts receivable are written off against the allowance for uncollectible accounts when we determine amounts are no longer collectible. | |||||||||||||
Fair Value of Financial Instruments | ' | ||||||||||||
Fair Value of Financial Instruments | |||||||||||||
Carrying amounts of certain of our financial instruments, including cash, cash equivalents, restricted cash, accounts receivable and accounts payable, approximate fair value due to their short maturities. The fair values of investments are determined using quoted market prices for those securities or similar financial instruments. | |||||||||||||
Concentration of Risk | ' | ||||||||||||
Concentration of Risk | |||||||||||||
Our cash, cash equivalents and investments are subject to market risk, primarily interest rate and credit risk. Our investments are managed by a limited number of outside professional managers within investment guidelines set by us. Such guidelines include security type, credit quality and maturity and are intended to limit market risk by restricting our investments. From time to time, our investments held with financial institutions may exceed Federal Deposit Insurance Corporation insurance limits. Interest rate fluctuations and changes in credit ratings impact the carrying value of our portfolio. | |||||||||||||
During 2013, 2012 and 2011, we did not recognize revenue from any one customer that represented 10% or more of revenues. | |||||||||||||
We do not have any customers representing 10% or more of total accounts receivable as of December 31, 2013 and 2012, respectively. We have accounts receivable from one partner that represented approximately 55% and 40% of the total accounts receivable balance as of December 31, 2013 and 2012, respectively. | |||||||||||||
Inventories | ' | ||||||||||||
Inventories | |||||||||||||
Inventories consist of finished products sold through our supplies store and are accounted for using the lower of cost (first-in, first-out method) or market. Inventories reported as a component of other current assets in 2013 and 2012 were $3.2 million and $3.4 million, respectively. | |||||||||||||
Property and Equipment | ' | ||||||||||||
Property and Equipment | |||||||||||||
We account for property and equipment at cost less accumulated depreciation and amortization. We compute depreciation using the straight-line method over the estimated useful life of the asset, generally three to five years for furniture, fixtures and equipment and ten to forty years for building and building improvements. We have a policy of capitalizing expenditures that materially increase assets’ useful lives and charging ordinary maintenance and repairs to operations as incurred. When property or equipment is disposed of, the cost and related accumulated depreciation and amortization are removed from the accounts, and any gain or loss is included in operations. | |||||||||||||
On January 23, 2012, we completed the purchase of our new corporate headquarters in El Segundo, California, for an aggregate purchase price of $13.4 million of which approximately $7.2 million was allocated to land value and $5.5 million was allocated to building value. The purchase was accounted for as a business combination. The building is being depreciated on a straight-line basis over the estimated useful life of 40 years; the land is an asset that does not get depreciated. As a result of the purchase we also acquired existing leases of building tenants, and $700,000 of the initial purchase price was allocated to lease-in-place intangible assets and is being amortized over the remaining actual lease terms which are as long as 5.5 years. | |||||||||||||
Trademarks, Patents and Intangible Assets | ' | ||||||||||||
Trademarks, Patents and Intangible Assets | |||||||||||||
Acquired trademarks, patents and other intangibles are included in intangible assets, net in the accompanying consolidated balance sheets and are carried at cost less accumulated amortization. Cost associated with internally developed intangible assets is typically expensed as incurred as research and development costs. | |||||||||||||
Amortization is calculated on a straight-line basis over the estimated useful lives of the assets, ranging from approximately 5 to 17 years. During 2013, 2012 and 2011, amortization expense, including the amortization of trademarks, patents and lease-in-place intangible asset, was approximately $215,000, $269,000 and $47,000, respectively. | |||||||||||||
Impairment of Long-Lived Assets and Intangible Assets | ' | ||||||||||||
Impairment of Long-Lived Assets and Intangible Assets | |||||||||||||
Long-lived assets including intangible assets with definitive useful lives are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. | |||||||||||||
Intangible assets that have indefinite useful lives are not amortized but, instead, tested at least annually for impairment while intangible assets that have finite useful lives continue to be amortized over their respective useful lives. | |||||||||||||
Intangible assets are tested for impairment using a two-step process. The first step is to determine the fair value of the reporting unit, which may be calculated using a discounted cash flow methodology, and compare this value to its carrying value. If the fair value exceeds the carrying value, no further work is required, and no impairment loss would be recognized. If the fair value is less than the carrying value, the second step is performed. The second step is an allocation of the fair value of the reporting unit to all of the reporting unit's assets and liabilities under a hypothetical purchase price allocation. Based on the annual evaluations performed by us, there was no impairment of intangible assets during the years ended December 31, 2013, 2012 or 2011. | |||||||||||||
Deferred Revenue | ' | ||||||||||||
Deferred Revenue | |||||||||||||
The majority of our deferred revenue relates to PhotoStamps retail boxes. We sell our PhotoStamps retail boxes to our customers through our website and selected third parties. Proceeds from the sale of our PhotoStamps retail boxes are initially recorded as a liability when received. We record the liability for outstanding PhotoStamps retail boxes in deferred revenue. | |||||||||||||
Revenue Recognition | ' | ||||||||||||
Revenue Recognition | |||||||||||||
We recognize revenue from product sales or services rendered, as well as commissions from advertising or sale of products by third party vendors to our customer base when the following four revenue recognition criteria are met: persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the selling price is fixed or determinable, and collectability is reasonably assured. | |||||||||||||
Service revenue is primarily derived from subscription, transaction and other fees that are recognized in the period that services are provided. Product sales, net of return allowances, are recorded when the products are shipped and title passes to customers. Sales of items, including PhotoStamps, sold to customers are made pursuant to a sales contract that provides for transfer of both title and risk of loss upon our delivery to the carrier. Return allowances for expected product returns, which reduce product revenue, are estimated using historical experience. Commissions from the advertising or sale of products by a third party vendor to our customer base are recognized when the revenue is earned and collection is deemed probable. | |||||||||||||
Customers typically pay face value for postage purchased for use through our PC Postage software, and the funds are transferred directly from the customers to the United States Postal Service (“USPS”). We do not recognize revenue for this postage, as it is purchased by our customers directly from the USPS. | |||||||||||||
PhotoStamps revenue, which includes the face value of postage, from the sale of PhotoStamps sheets and rolls is made pursuant to a sales contract that provides for transfer of both title and risk of loss upon our delivery to the carrier. | |||||||||||||
Sale of PhotoStamps retail boxes are initially recorded as deferred revenue. PhotoStamps revenue related to the sale of these PhotoStamps retail boxes is subsequently recognized when either: 1) the PhotoStamps retail box is redeemed, or 2) the likelihood of the PhotoStamps retail box being redeemed is deemed remote (“breakage”) and there is no legal obligation to remit the value of the unredeemed PhotoStamps retail boxes. | |||||||||||||
On a limited basis, we allow third parties to offer products and promotions to our customer base. These arrangements generally provide payment in the form of a flat fee or revenue sharing arrangements where we receive payment upon customers accessing third party products and services. Total revenue from such advertising arrangements was not significant during 2013 and 2012. | |||||||||||||
We provide our customers with the opportunity to purchase parcel insurance directly through our software. Insurance revenue represents the gross amount charged to the customer for purchasing insurance and the related cost represents the amount paid to the insurance broker, Parcel Insurance Plan. We recognize revenue on insurance purchases upon the ship date of the insured package. | |||||||||||||
PhotoStamps Retail Boxes | ' | ||||||||||||
PhotoStamps Retail Boxes | |||||||||||||
We sell PhotoStamps retail boxes that are redeemable for PhotoStamps on our website. The PhotoStamps retail boxes are sold through various third party retail partners. Our PhotoStamps retail boxes are not subject to administrative fees on unredeemed boxes and have no expiration date. PhotoStamps retail box sales are recorded as deferred revenue. Prior to the second quarter of 2011, revenue was recognized only on boxes that were actually redeemed on our website. | |||||||||||||
During the second quarter of 2011, we concluded that sufficient company-specific historical evidence existed to determine the period of time after which the likelihood of the PhotoStamps retail boxes being redeemed was remote. Based on our analysis of the redemption data, we estimate that period of time to be 60 months after the sale of our PhotoStamps retail boxes. | |||||||||||||
Beginning in the second quarter of 2011, we began recognizing breakage revenue related to our PhotoStamps retail boxes utilizing the redemption recognition method. Under the redemption recognition method, we recognize breakage revenue from unredeemed retail boxes in proportion to the revenue recognized from the retail boxes that have been redeemed. During the second quarter of 2011, we recognized $2.2 million, which was $0.15 on a per share basis using fully diluted shares as of June 30, 2011 (revenue divided by fully diluted shares outstanding, exclusive of any current or prior period costs related to the retail programs), of retail box breakage revenue, of which $2.1 million related to a cumulative catch-up for previously sold and unredeemed PhotoStamps retail boxes originally recorded as deferred revenue. The retail box breakage revenue recognized was recorded in PhotoStamps revenue. We continue to recognize retail box breakage revenue from PhotoStamps retail boxes using the redemption recognition method. During 2013, 2012 and 2011 PhotoStamps retail box breakage revenue was approximately $115,000, $260,000 and $2.3 million, respectively. | |||||||||||||
Cost of Service Revenue | ' | ||||||||||||
Cost of Service Revenue | |||||||||||||
Cost of service revenue principally consists of the cost of customer service, certain promotional expenses, system operating costs, credit card processing fees and customer misprints that do not qualify for reimbursement from the USPS. Cost of product revenue principally consists of the cost of products sold through our Mailing & Shipping Supplies Store and the related costs of shipping and handling. The cost of insurance revenue principally consists of parcel insurance offering costs. Cost of PhotoStamps revenue principally consists of the face value of postage, image review costs and printing and fulfillment costs. | |||||||||||||
Promotional Expense | ' | ||||||||||||
Promotional Expense | |||||||||||||
New PC Postage customers are typically offered promotional items that are redeemed using coupons that are qualified for redemption after a customer is successfully billed beyond an initial trial period. We account for our promotional expense in accordance with Accounting Standard Codification (“ASC”) 605-50-25, “Recognition – Vendor’s Accounting for Consideration Given to a Customer”, by recognizing a liability for promotional expense based on estimated amounts that will be claimed by customers unless the liability for promotional expense cannot be reasonable and reliably estimated. This includes free postage and a free digital scale and is expensed in the period in which a customer qualifies using estimated redemption rates based on historical data. We periodically review our historical redemption rates and adjust, if necessary, our estimated redemption rates for future periods. Promotional expense, which is included in cost of service, is incurred as customers qualify and thereby may not correlate directly with changes in revenue, as the revenue associated with the acquired customer is earned over the customer’s lifetime. During 2013, 2012 and 2011 promotional expense was $2.4 million, $3.5 million and $3.6, respectively. | |||||||||||||
Research and Development Costs | ' | ||||||||||||
Research and Development Costs | |||||||||||||
Research and development expense principally consist of compensation for personnel involved in the development of our services, depreciation of equipment and software and expenditures for consulting services and third party software. | |||||||||||||
Sales and Marketing | ' | ||||||||||||
Sales and Marketing | |||||||||||||
Sales and marketing expense principally consists of spending to acquire new customers and compensation and related expenses for personnel engaged in sales, marketing, and business development activities. Ongoing marketing programs include the following: traditional advertising, partnerships, customer referral programs, customer re-marketing efforts, telemarketing, direct sales, direct mail, and online advertising. | |||||||||||||
Advertising Costs | ' | ||||||||||||
Advertising Costs | |||||||||||||
We expense the costs of producing advertisements as incurred, and expense the costs of communicating and placing the advertising in the period in which the advertising space or airtime is used. For the years ended December 31, 2013, 2012 and 2011, advertising and tradeshow costs were $10.3 million, $8.7 million and $7.0 million, respectively. | |||||||||||||
Internet Advertising | |||||||||||||
We recognize Internet advertising expense based on the specifics of the individual agreements. Under partner and affiliate agreements, third parties refer prospects to our web site, and we pay the third parties when the customer completes the customer registration process, or in some cases, upon the first successful billing of a customer. We record these expenses on a monthly basis as prospects are successfully converted to customers. Under Internet search advertising, we record expenses based on actual “click activity” on our displayed advertisements following targeted key word searches. | |||||||||||||
General and Administrative | ' | ||||||||||||
General and Administrative | |||||||||||||
General and administrative expense principally consists of compensation and related costs for executive and administrative personnel, fees for legal and other professional services, depreciation of equipment and software used for general corporate purposes and amortization of intangible assets. | |||||||||||||
Income Taxes | ' | ||||||||||||
Income Taxes | |||||||||||||
We account for income taxes in accordance with ASC 740, Income Taxes (“ASC 740”), which requires that deferred tax assets and liabilities be recognized using enacted tax rates for the effect of temporary differences between the book and tax basis of recorded assets and liabilities. ASC 740 also requires that deferred tax assets be reduced by a valuation allowance if it is more likely than not that some or all of the net deferred tax assets will not be realized. We record a valuation allowance to reduce our gross deferred tax assets, which are primarily comprised of U.S. Federal and State tax loss carry-forwards, to the amount that is more likely than not (a likelihood of more than 50 percent) to be realized. In order for us to realize our deferred tax assets, we must be able to generate sufficient taxable income. We evaluate the appropriateness of our deferred tax assets and related valuation allowance in accordance with ASC 740 based on all available positive and negative evidence. | |||||||||||||
Under the guidance related to uncertain tax positions, we are required to determine whether it is more likely than not that a tax position will be sustained upon examination based on the technical merits of the position. A tax position that meets the more likely than not recognition threshold is measured to determine the amount of liability or benefit to recognize in the financial statements. | |||||||||||||
Net Income per Share | ' | ||||||||||||
Net Income per Share | |||||||||||||
Net income per share represents net income attributable to common stockholders divided by the weighted average number of common shares outstanding during a reported period. The diluted net income per share reflects the potential dilution that could occur if securities or other contracts to issue common stock, including stock options (commonly and hereafter referred to as “common stock equivalents”), were exercised or converted into common stock. Diluted net income per share is calculated by dividing net income during a reported period by the sum of the weighted average number of common shares outstanding plus common stock equivalents for the period. | |||||||||||||
The following table reconciles share amounts utilized to calculate basic and diluted net income per share (in thousands, except per share data): | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Net income | $ | 44,153 | $ | 38,557 | $ | 26,265 | |||||||
Basic - weighted average common shares | 15,691 | 16,079 | 14,767 | ||||||||||
Dilutive effect of common stock equivalents | 607 | 714 | 401 | ||||||||||
Diluted - weighted average common shares | 16,298 | 16,793 | 15,168 | ||||||||||
Net income per share: | |||||||||||||
Basic | $ | 2.81 | $ | 2.4 | $ | 1.78 | |||||||
Diluted | $ | 2.71 | $ | 2.3 | $ | 1.73 | |||||||
The calculation of dilutive shares excludes the effect of the following options that are considered anti-dilutive (in thousands): | |||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Anti-dilutive stock option shares | 65 | 119 | 1,023 | ||||||||||
Stock-Based Compensation | ' | ||||||||||||
Stock-Based Compensation | |||||||||||||
We estimate the fair value of share-based payment awards on the date of grant using an option-pricing model and recognize stock-based compensation expense during each period based on the value of that portion of share-based payment awards that is ultimately expected to vest during the period, reduced for estimated forfeitures. We estimate forfeitures at the time of grant based on historical data and revise, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Compensation expense recognized for all employee stock options granted is recognized using the straight-line method over their respective vesting periods of three to five years. | |||||||||||||
The following table sets forth the stock-based compensation expense that we recognized for the periods indicated (in thousands): | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Stock-based compensation expense relating to: | |||||||||||||
Employee and director stock options | $ | 3,751 | $ | 3,438 | $ | 3,112 | |||||||
Employee stock purchases | 741 | 553 | 307 | ||||||||||
Total stock-based compensation expense | $ | 4,492 | $ | 3,991 | $ | 3,419 | |||||||
Stock-based compensation expense relating to: | |||||||||||||
Cost of revenues | $ | 406 | $ | 325 | $ | 278 | |||||||
Sales and marketing | 864 | 873 | 764 | ||||||||||
Research and development | 990 | 893 | 750 | ||||||||||
General and administrative | 2,232 | 1,900 | 1,627 | ||||||||||
Total stock-based compensation expense | $ | 4,492 | $ | 3,991 | $ | 3,419 | |||||||
We use the Black-Scholes option valuation model to estimate the fair value of share-based payment awards on the date of grant, which requires us to make a number of highly complex and subjective assumptions, including stock price volatility, expected term, risk-free interest rates and projected employee stock option exercise behaviors. In the case of options we grant, our assumption of expected volatility is based on the historical volatility of our stock price over the term equal to the expected life of the options. We base the risk-free interest rate on U.S. Treasury zero-coupon issues with a remaining term equal to the expected life of the options assumed at the date of grant. The estimated expected life represents the weighted-average period the stock options are expected to remain outstanding, determined based on an analysis of historical exercise behavior. | |||||||||||||
The following are the weighted average assumptions used in the Black-Scholes valuation model for the periods indicated: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Expected dividend yield | — | — | — | ||||||||||
Risk-free interest rate | 0.53 | % | 0.37 | % | 1.39 | % | |||||||
Expected volatility | 48 | % | 50 | % | 48 | % | |||||||
Expected life (in years) | 3.6 | 3.7 | 4.4 | ||||||||||
Expected forfeiture rate | 7 | % | 7 | % | 9 | % | |||||||
We elected to utilize the alternative transition method for calculating the tax effects of stock-based compensation. The alternative transition method includes computational guidance to establish the beginning balance of the additional paid-in capital pool (“APIC Pool”) related to the tax effects of employee stock-based compensation, and a simplified method to determine the subsequent impact on the APIC Pool for employee stock-based compensation awards that are vested and outstanding upon adoption of ASC 718. There has been no tax benefit recognized to date from the exercise of stock options. A tax benefit will be recorded in additional paid-in capital when these deductions reduce our future income taxes payable. | |||||||||||||
At December 31, 2013, we had approximately $4.1 million of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under our stock incentive plans, which is expected to be recognized over a weighted-average period of approximately 2 years. | |||||||||||||
Treasury Stock | ' | ||||||||||||
Treasury Stock | |||||||||||||
During 2013, 2012 and 2011, we repurchased approximately 179,000 shares for $4.3 million, 1.5 million shares for $31.8 million and 426,000 shares for $5.3 million, respectively. | |||||||||||||
Segment Information | ' | ||||||||||||
Segment Information | |||||||||||||
We operate in a single segment. We are a provider of Internet-based postage solutions located in a single geographic location from which substantially all of our revenue is generated. While components of revenue include both services and products associated with our postage solutions, our Chief Executive Officer, who is the chief operating decision maker, evaluates performance, makes operating decisions and allocates resources based on the financial data provided in our financial statements as a single operating segment. | |||||||||||||
Website Development Costs | ' | ||||||||||||
Website Development Costs | |||||||||||||
We develop and maintain our website. Costs associated with the operation of our website consist primarily of software and hardware purchased from third parties and administrative cost relating to the maintenance and development of the website. Costs related to the purchase of software and hardware are capitalized based on our capitalization policy. These capitalized costs are amortized based on their estimated useful life. Administrative costs related to the maintenance and development of our website are expensed as incurred. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Summary of Significant Accounting Policies [Abstract] | ' | ||||||||||||
Calculation of basic and diluted net income per share | ' | ||||||||||||
The following table reconciles share amounts utilized to calculate basic and diluted net income per share (in thousands, except per share data): | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Net income | $ | 44,153 | $ | 38,557 | $ | 26,265 | |||||||
Basic - weighted average common shares | 15,691 | 16,079 | 14,767 | ||||||||||
Dilutive effect of common stock equivalents | 607 | 714 | 401 | ||||||||||
Diluted - weighted average common shares | 16,298 | 16,793 | 15,168 | ||||||||||
Net income per share: | |||||||||||||
Basic | $ | 2.81 | $ | 2.4 | $ | 1.78 | |||||||
Diluted | $ | 2.71 | $ | 2.3 | $ | 1.73 | |||||||
Anti-dilutive securities excluded from computation of earnings per share | ' | ||||||||||||
The calculation of dilutive shares excludes the effect of the following options that are considered anti-dilutive (in thousands): | |||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Anti-dilutive stock option shares | 65 | 119 | 1,023 | ||||||||||
Stock-based compensation expense | ' | ||||||||||||
The following table sets forth the stock-based compensation expense that we recognized for the periods indicated (in thousands): | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Stock-based compensation expense relating to: | |||||||||||||
Employee and director stock options | $ | 3,751 | $ | 3,438 | $ | 3,112 | |||||||
Employee stock purchases | 741 | 553 | 307 | ||||||||||
Total stock-based compensation expense | $ | 4,492 | $ | 3,991 | $ | 3,419 | |||||||
Stock-based compensation expense relating to: | |||||||||||||
Cost of revenues | $ | 406 | $ | 325 | $ | 278 | |||||||
Sales and marketing | 864 | 873 | 764 | ||||||||||
Research and development | 990 | 893 | 750 | ||||||||||
General and administrative | 2,232 | 1,900 | 1,627 | ||||||||||
Total stock-based compensation expense | $ | 4,492 | $ | 3,991 | $ | 3,419 | |||||||
Weighted average assumptions used in Black-Scholes valuation model | ' | ||||||||||||
The following are the weighted average assumptions used in the Black-Scholes valuation model for the periods indicated: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Expected dividend yield | — | — | — | ||||||||||
Risk-free interest rate | 0.53 | % | 0.37 | % | 1.39 | % | |||||||
Expected volatility | 48 | % | 50 | % | 48 | % | |||||||
Expected life (in years) | 3.6 | 3.7 | 4.4 | ||||||||||
Expected forfeiture rate | 7 | % | 7 | % | 9 | % | |||||||
Cash_Cash_Equivalents_and_Inve1
Cash, Cash Equivalents and Investments (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Cash, Cash Equivalents and Investments [Abstract] | ' | ||||||||||||||||
Cash, cash equivalents, restricted cash and investments | ' | ||||||||||||||||
The following table summarizes our cash, cash equivalents, and investments as of December 31, 2013 and 2012 (in thousands): | |||||||||||||||||
31-Dec-13 | |||||||||||||||||
Cost or | Gross | Gross | |||||||||||||||
Amortized | Unrealized | Unrealized | Estimated | ||||||||||||||
Cost | Gains | Losses | Fair Value | ||||||||||||||
Cash and cash equivalents: | |||||||||||||||||
Cash | $ | 46,792 | — | — | $ | 46,792 | |||||||||||
Money market | 19,882 | — | — | 19,882 | |||||||||||||
Cash and cash equivalents | 66,674 | — | — | 66,674 | |||||||||||||
Short-term investments: | |||||||||||||||||
Corporate bonds and asset backed securities | 6,479 | 45 | — | 6,524 | |||||||||||||
Short-term investments | 6,479 | 45 | — | 6,524 | |||||||||||||
Long-term investments: | |||||||||||||||||
Corporate bonds and asset backed securities | 13,917 | 106 | (11 | ) | 14,012 | ||||||||||||
Long-term investments | 13,917 | 106 | (11 | ) | 14,012 | ||||||||||||
Cash and cash equivalents and investments | $ | 87,070 | 151 | (11 | ) | $ | 87,210 | ||||||||||
31-Dec-12 | |||||||||||||||||
Cost or | Gross | Gross | |||||||||||||||
Amortized | Unrealized | Unrealized | Estimated | ||||||||||||||
Cost | Gains | Losses | Fair Value | ||||||||||||||
Cash and cash equivalents: | |||||||||||||||||
Cash | $ | 7,043 | — | — | $ | 7,043 | |||||||||||
Money market | 22,533 | — | — | 22,533 | |||||||||||||
Cash and cash equivalents | 29,576 | — | — | 29,576 | |||||||||||||
Short-term investments: | |||||||||||||||||
Corporate notes and bonds | 5,248 | 66 | — | 5,314 | |||||||||||||
U.S. government and agency securities | 1,005 | 4 | — | 1,009 | |||||||||||||
Short-term investments | 6,253 | 70 | — | 6,323 | |||||||||||||
Long-term investments: | |||||||||||||||||
Corporate bonds and asset backed securities | 10,539 | 190 | (9 | ) | 10,720 | ||||||||||||
Long-term investments | 10,539 | 190 | (9 | ) | 10,720 | ||||||||||||
Cash and equivalents and investments | $ | 46,368 | 260 | (9 | ) | $ | 46,619 | ||||||||||
Contractual maturities of marketable fixed-income securities | ' | ||||||||||||||||
The following table summarizes contractual maturities of our marketable fixed-income securities as of December 31, 2013(in thousands): | |||||||||||||||||
Amortized | Estimated | ||||||||||||||||
Cost | Fair Value | ||||||||||||||||
Due within one year | $ | 6,479 | $ | 6,524 | |||||||||||||
Due after one year through five years | 13,917 | 14,012 | |||||||||||||||
Due after five years through ten years | — | — | |||||||||||||||
Total | $ | 20,396 | $ | 20,536 | |||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Fair Value Measurements [Abstract] | ' | ||||||||||||||||
Financial assets measured at fair value on a recurring basis | ' | ||||||||||||||||
The following table summarizes our financial assets measured at fair value on a recurring basis as of December 31, 2013 and 2012 (in thousands): | |||||||||||||||||
Fair Value Measurement at Reporting Date Using | |||||||||||||||||
31-Dec-13 | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | ||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||
Description | |||||||||||||||||
Cash and cash equivalents | $ | 66,674 | $ | 66,674 | $ | — | $ | — | |||||||||
Available-for-sale debt securities | 20,536 | — | 20,536 | — | |||||||||||||
Total | $ | 87,210 | $ | 66,674 | $ | 20,536 | $ | — | |||||||||
Fair Value Measurement at Reporting Date Using | |||||||||||||||||
Description | 31-Dec-12 | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||
Cash and cash equivalents | $ | 29,576 | $ | 29,576 | $ | — | $ | — | |||||||||
Available-for-sale debt securities | 17,043 | — | 17,043 | — | |||||||||||||
Total | $ | 46,619 | $ | 29,576 | $ | 17,043 | $ | — | |||||||||
Accounts_Payable_and_Accrued_E1
Accounts Payable and Accrued Expenses (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Accounts Payable and Accrued Expenses [Abstract] | ' | ||||||||
Accounts payable and accrued expenses | ' | ||||||||
The following table summarizes our accounts payable and accrued expenses as of December 31, 2013 and 2012 (in thousands): | |||||||||
2013 | 2012 | ||||||||
Payroll and related accrual | $ | 4,575 | $ | 3,783 | |||||
Cost of sale, inventory and materials accrual | 2,035 | 2,366 | |||||||
Construction and related fixed asset accrual | 401 | 2,216 | |||||||
Professional fees accrual | 688 | 690 | |||||||
Sales and marketing related accrual | 2,457 | 2,832 | |||||||
Operating expenses related accrual | 1,975 | 1,651 | |||||||
Other accruals | 1,797 | 2,828 | |||||||
Accounts payable and accrued expenses | $ | 13,928 | $ | 16,366 | |||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property and Equipment [Abstract] | ' | ||||||||
Property and equipment | ' | ||||||||
Property and equipment is summarized as follows (in thousands): | |||||||||
2013 | 2012 | ||||||||
Land | $ | 7,156 | $ | 7,156 | |||||
Building | 4,886 | 4,886 | |||||||
Building improvements | 13,483 | 13,569 | |||||||
Furniture and equipment | 987 | 1,362 | |||||||
Computers and software | 12,228 | 8,311 | |||||||
38,740 | 35,284 | ||||||||
Less accumulated depreciation and amortization | (8,977 | ) | (6,653 | ) | |||||
Property and equipment, net | $ | 29,763 | $ | 28,631 | |||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Taxes [Abstract] | ' | ||||||||||||
Reconciliation of total amounts of unrecognized tax benefits | ' | ||||||||||||
The following is a tabular reconciliation of the total amounts of unrecognized tax benefits for the years ended December 31, 2013, 2012 and 2011 (in thousands): | |||||||||||||
Unrecognized Tax Benefits | |||||||||||||
Balance at December 31, 2010 | $ | (1,733 | ) | ||||||||||
Reduction for tax positions of prior years | 71 | ||||||||||||
Addition for tax position of the current year | (83 | ) | |||||||||||
Settlement | — | ||||||||||||
Balance at December 31, 2011 | $ | (1,745 | ) | ||||||||||
Reductionfor tax positions of prior years | — | ||||||||||||
Addition for tax position of the current year | (160 | ) | |||||||||||
Settlement | — | ||||||||||||
Balance at December 31, 2012 | $ | (1,905 | ) | ||||||||||
Reductions for tax positions of prior years | — | ||||||||||||
Additions for tax position of the current year | (409 | ) | |||||||||||
Settlement | — | ||||||||||||
Balance at December 31, 2013 | $ | (2,314 | ) | ||||||||||
Deferred tax assets and liabilities | ' | ||||||||||||
The tax effect of temporary differences that give rise to a significant portion of the deferred tax assets and liabilities at December 31, 2013 and 2012 are presented below (in thousands): | |||||||||||||
2013 | 2012 | ||||||||||||
Deferred tax assets (liabilities): | |||||||||||||
Net operating loss carryforward | $ | 57,277 | $ | 63,830 | |||||||||
Tax credits | 7,555 | 5,467 | |||||||||||
Depreciation | (775 | ) | (139 | ) | |||||||||
Amortization | 322 | 494 | |||||||||||
Accruals | 3,157 | 2,214 | |||||||||||
Total deferred tax assets | 67,536 | 71,866 | |||||||||||
Valuation allowance | (27,274 | ) | (41,317 | ) | |||||||||
Net deferred tax assets | $ | 40,262 | $ | 30,549 | |||||||||
Provision for income taxes | ' | ||||||||||||
The income tax expense (benefit) consists of (in thousands): | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Current: | |||||||||||||
Federal | $ | 226 | $ | 411 | $ | — | |||||||
State | (68 | ) | 154 | — | |||||||||
158 | 565 | — | |||||||||||
Deferred: | |||||||||||||
Federal | (7,842 | ) | (15,958 | ) | (7,245 | ) | |||||||
State | (1,871 | ) | 1,534 | (1,230 | ) | ||||||||
(9,713 | ) | (14,424 | ) | (8,475 | ) | ||||||||
Benefit for income taxes | $ | (9,555 | ) | $ | (13,859 | ) | $ | (8,475 | ) | ||||
Differences between provision for income taxes and income taxes at statutory federal income tax rate | ' | ||||||||||||
Differences between the benefit for income taxes and income taxes at the statutory federal income tax rate are as follows (in thousands): | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Income tax at statutory federal rate | $ | 11,764 | $ | 8,823 | $ | 6,057 | |||||||
State income taxes, net of federal benefit | 652 | 1,516 | 1,044 | ||||||||||
Effect of permanent differences | 199 | 12 | 12 | ||||||||||
Change in valuation allowance - discrete release | (9,713 | ) | (14,424 | ) | (8,475 | ) | |||||||
Other changes in valuation allowance, net | (10,364 | ) | (13,431 | ) | (7,225 | ) | |||||||
Change in state rate | (789 | ) | 4,186 | — | |||||||||
Other | (1,304 | ) | (541 | ) | 112 | ||||||||
$ | (9,555 | ) | $ | (13,859 | ) | $ | (8,475 | ) | |||||
Employee_Stock_Plans_Tables
Employee Stock Plans (Tables) | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||
Employee Stock Plans [Abstract] | ' | ||||||||||||||||||||||
Stock option activity | ' | ||||||||||||||||||||||
A summary of stock option activity is as follows (in thousands, except per share amounts): | |||||||||||||||||||||||
Options Outstanding | |||||||||||||||||||||||
Number of Options | Weighted Average Exercise Price | ||||||||||||||||||||||
Balance at December 31, 2010 | 2,778 | $ | 12.58 | ||||||||||||||||||||
Granted | 1,718 | 13.2 | |||||||||||||||||||||
Forfeited | (136 | ) | 12.01 | ||||||||||||||||||||
Exercised | (2,043 | ) | 12.25 | ||||||||||||||||||||
Balance at December 31, 2011 | 2,317 | $ | 13.36 | ||||||||||||||||||||
Granted | 192 | 25.5 | |||||||||||||||||||||
Forfeited | (88 | ) | 21.44 | ||||||||||||||||||||
Exercised | (560 | ) | 13.04 | ||||||||||||||||||||
Balance at December 31, 2012 | 1,861 | $ | 14.33 | ||||||||||||||||||||
Granted | 164 | 34.29 | |||||||||||||||||||||
Forfeited | (38 | ) | 21.57 | ||||||||||||||||||||
Exercised | (991 | ) | 13.55 | ||||||||||||||||||||
Balance at December 31, 2013 | 996 | $ | 18.12 | ||||||||||||||||||||
The following table summarizes stock option activity for 2013: | |||||||||||||||||||||||
Number of Stock Options (in thousands) | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life | Aggregate Intrinsic Value | ||||||||||||||||||||
(in years) | (in thousands) | ||||||||||||||||||||||
Outstanding at December 31, 2012 | 1,861 | $ | 14.33 | ||||||||||||||||||||
Granted | 164 | 34.29 | |||||||||||||||||||||
Exercised | (991 | ) | 13.55 | ||||||||||||||||||||
Forfeited or expired | (38 | ) | 21.57 | ||||||||||||||||||||
Balance at December 31, 2012 | 996 | $ | 18.12 | 7 | $ | 23,991 | |||||||||||||||||
Exercisable at December 31, 2012 | 512 | $ | 14.75 | 5.8 | $ | 13,991 | |||||||||||||||||
Weighted-average fair value of stock grants | ' | ||||||||||||||||||||||
The weighted-average fair value of stock grants for 2013, 2012 and 2011 using the Black-Scholes valuation method are as follows: | |||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||
Weighted-average fair value of stock options with an exercise price equal to the market price on the grant date | $ | 5.1 | $ | 5.04 | $ | 5.05 | |||||||||||||||||
Weighted-average fair value of stock options with an exercise price greater than the market price on the grant date | — | — | — | ||||||||||||||||||||
Total | $ | 5.1 | $ | 5.04 | $ | 5.05 | |||||||||||||||||
Weighted average exercise prices for stock options exercised | ' | ||||||||||||||||||||||
Weighted average exercise prices for stock options exercised in 2013 are as follows: | |||||||||||||||||||||||
2013 | |||||||||||||||||||||||
Weighted-average exercise price of stock options with an exercise price equal to the market price on the grant date | $ | 13.56 | |||||||||||||||||||||
Weighted-average exercise price of stock options with an exercise price greater than the market price on the grant date | 13.4 | ||||||||||||||||||||||
Total weighted-average exercise price | $ | 13.55 | |||||||||||||||||||||
Outstanding and exercisable options | ' | ||||||||||||||||||||||
The following tables summarize information concerning outstanding and exercisable options at December 31, 2013 (in thousands, except number of years and per share amounts): | |||||||||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||||||||
Range of Exercise Prices | Number Outstanding | Weighted Average Remaining Contractual Life (in Years) | Weighted Average Exercise Price per Share | Number Exercisable | Weighted Average Exercise Price per Share | ||||||||||||||||||
$ | 0.00 - $9.99 | 40 | 6.5 | $ | 6.61 | 28 | $ | 9.15 | |||||||||||||||
$ | 10.00 - $19.99 | 649 | 6.3 | 12.76 | 408 | 12.81 | |||||||||||||||||
$ | 20.00 - $29.99 | 191 | 8.1 | 25.12 | 55 | 24.23 | |||||||||||||||||
$ | 30.00 - $39.99 | 48 | 8.6 | 36.21 | 20 | 35.79 | |||||||||||||||||
$ | 40.00 - $49.99 | 68 | 9.7 | 43.55 | 1 | 44.03 | |||||||||||||||||
$ | 0.00 - $49.99 | 996 | 7 | $ | 18.12 | 512 | $ | 14.75 | |||||||||||||||
Non-vested stock options | ' | ||||||||||||||||||||||
The following table summarizes the status of our non-vested stock options as of December 31, 2013: | |||||||||||||||||||||||
Non-vested | Weighted Average Grant Date Fair Value | ||||||||||||||||||||||
Number of Stock Options (in thousands) | |||||||||||||||||||||||
Non-vested at December 31, 2012 | 996 | $ | 5.67 | ||||||||||||||||||||
Granted | 164 | 13.48 | |||||||||||||||||||||
Vested | (641 | ) | 8.26 | ||||||||||||||||||||
Forfeited / Cancelled | (35 | ) | 5.47 | ||||||||||||||||||||
Non-vested at December 31, 2013 | 484 | $ | 8.48 |
Quarterly_Information_Unaudite1
Quarterly Information (Unaudited) (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Quarterly Information (Unaudited) [Abstract] | ' | ||||||||||||||||
Quarterly Information | ' | ||||||||||||||||
Quarterly Information (Unaudited) | |||||||||||||||||
Quarter Ended | |||||||||||||||||
March | June | September | December | ||||||||||||||
(in thousands except per share data) | |||||||||||||||||
Fiscal Year 2013: | |||||||||||||||||
Revenues | $ | 32,101 | $ | 32,109 | $ | 31,245 | $ | 32,364 | |||||||||
Gross profit | 24,449 | 25,021 | 24,661 | 26,188 | |||||||||||||
Income from operations | 7,815 | 8,545 | 8,761 | 8,997 | |||||||||||||
Net income | 7,906 | 8,613 | 8,763 | 18,871 | (1) | ||||||||||||
Net income per share: | |||||||||||||||||
Basic | $ | 0.52 | $ | 0.56 | $ | 0.55 | $ | 1.17 | |||||||||
Diluted | $ | 0.49 | $ | 0.53 | $ | 0.53 | $ | 1.13 | |||||||||
Weighted average shares outstanding: | |||||||||||||||||
Basic | 15,328 | 15,486 | 15,816 | 16,124 | |||||||||||||
Diluted | 16,000 | 16,163 | 16,389 | 16,640 | |||||||||||||
Fiscal Year 2012: | |||||||||||||||||
Revenues | $ | 28,293 | $ | 28,227 | $ | 29,071 | $ | 30,070 | |||||||||
Gross profit | 21,030 | 21,589 | 22,578 | 22,708 | |||||||||||||
Income from operations | 4,421 | 5,824 | 7,085 | 6,827 | |||||||||||||
Net income | 16,360 | (2) | 5,923 | 6,977 | 9,297 | (2) | |||||||||||
Net income per share: | |||||||||||||||||
Basic | $ | 1.01 | $ | 0.36 | $ | 0.43 | $ | 0.6 | |||||||||
Diluted | $ | 0.95 | $ | 0.34 | $ | 0.42 | $ | 0.58 | |||||||||
Weighted average shares outstanding: | |||||||||||||||||
Basic | 16,250 | 16,468 | 16,103 | 15,502 | |||||||||||||
Diluted | 17,173 | 17,196 | 16,675 | 16,129 | |||||||||||||
Quarterly and year-to-date computations of per share amounts are made independently. Therefore, the sum of per share amounts for the quarters may not agree with per share amounts for the year shown elsewhere in our Annual Report on Form 10-K. | |||||||||||||||||
(1) During the fourth quarter of 2013 we released a portion of our valuation allowance totaling approximately $9.7 million. (See Income Taxes- Notes to Consolidated Financial Statements). | |||||||||||||||||
(2) During the first quarter of 2012 we released a portion of our valuation allowance totaling approximately $11.9 million. During the fourth quarter of 2012 we released another portion of our valuation allowance totaling approximately $2.5 million (See Income Taxes- Notes to Consolidated Financial Statements). |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Principles of Consolidation [Abstract] | ' | ' | ' |
Percentage of voting control in PhotoStamps Inc. (in hundredths) | 100.00% | ' | ' |
Accounts Receivable [Abstract] | ' | ' | ' |
Allowances for uncollectible accounts | $283,000 | $239,000 | ' |
Accounts receivable | 17,500,000 | 14,400,000 | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Concentration risk minimum percentage (in hundredths) | 10.00% | 10.00% | 10.00% |
Inventories | 3,200,000 | 3,400,000 | ' |
Property and Equipment [Abstract] | ' | ' | ' |
Aggregate purchase price | ' | 13,400,000 | ' |
Land [Member] | ' | ' | ' |
Property and Equipment [Abstract] | ' | ' | ' |
Aggregate purchase price | ' | 7,200,000 | ' |
Building [Member] | ' | ' | ' |
Property and Equipment [Abstract] | ' | ' | ' |
Estimated useful life | ' | '40 years | ' |
Aggregate purchase price | ' | 5,500,000 | ' |
Leases-in-Place [Member] | ' | ' | ' |
Property and Equipment [Abstract] | ' | ' | ' |
Intangible assets purchased | $700,000 | $700,000 | ' |
Expected useful lives of amortizable intangible assets | '5 years 6 months | '5 years 6 months | ' |
Minimum [Member] | ' | ' | ' |
Property and Equipment [Abstract] | ' | ' | ' |
Expected useful lives of amortizable intangible assets | '5 years | ' | ' |
Minimum [Member] | Furniture, Fixtures and Equipment [Member] | ' | ' | ' |
Property and Equipment [Abstract] | ' | ' | ' |
Estimated useful life | '3 years | ' | ' |
Minimum [Member] | Building and Building Improvements [Member] | ' | ' | ' |
Property and Equipment [Abstract] | ' | ' | ' |
Estimated useful life | '10 years | ' | ' |
Maximum [Member] | ' | ' | ' |
Property and Equipment [Abstract] | ' | ' | ' |
Expected useful lives of amortizable intangible assets | '17 years | ' | ' |
Maximum [Member] | Furniture, Fixtures and Equipment [Member] | ' | ' | ' |
Property and Equipment [Abstract] | ' | ' | ' |
Estimated useful life | '5 years | ' | ' |
Maximum [Member] | Building and Building Improvements [Member] | ' | ' | ' |
Property and Equipment [Abstract] | ' | ' | ' |
Estimated useful life | '40 years | ' | ' |
Accounts Receivable [Member] | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Concentration risk, percentage (in hundredths) | 55.00% | 40.00% | ' |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies, Part II (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Jun. 30, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||
Criteria | Criteria | ||||||||||||||
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Amortization of intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | $215,000 | $269,000 | $47,000 | |||
Impairment of intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | |||
Revenue Recognition [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Number of criteria to be met for recognition of revenue | 4 | ' | ' | ' | ' | ' | ' | ' | ' | 4 | ' | ' | |||
PhotoStamps Retail Boxes [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Period of redemption of PhotoStamps retail boxes | ' | ' | ' | ' | ' | ' | ' | ' | ' | '60 months | ' | ' | |||
Recognition of deferred revenue | ' | ' | ' | ' | ' | ' | ' | ' | 2,200,000 | ' | ' | ' | |||
Diluted earnings per share related to breakage revenue (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | $0.15 | ' | ' | ' | |||
Deferred revenue recognized related to unredeemed PhotoStamps retail boxes, cumulative catch-up | ' | ' | ' | ' | ' | ' | ' | ' | 2,100,000 | ' | ' | ' | |||
Retail box breakage revenue | ' | ' | ' | ' | ' | ' | ' | ' | ' | 115,000 | 260,000 | 2,300,000 | |||
Promotional and Advertising Costs [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Promotional expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,400,000 | 3,500,000 | 3,600,000 | |||
Advertising and tradeshow costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,300,000 | 8,700,000 | 7,000,000 | |||
Income Taxes [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Percentage of realization of deferred tax assets, minimum (in hundredths) | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | |||
Net Income per Share [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net income | 18,871,000 | [1] | 8,763,000 | 8,613,000 | 7,906,000 | 9,297,000 | [2] | 6,977,000 | 5,923,000 | 16,360,000 | [2] | ' | 44,153,000 | 38,557,000 | 26,265,000 |
Basic - weighted average common shares (in shares) | 16,124,000 | 15,816,000 | 15,486,000 | 15,328,000 | 15,502,000 | 16,103,000 | 16,468,000 | 16,250,000 | ' | 15,691,000 | 16,079,000 | 14,767,000 | |||
Dilutive effect of common stock equivalents (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 607,000 | 714,000 | 401,000 | |||
Diluted - weighted average common shares (in shares) | 16,640,000 | 16,389,000 | 16,163,000 | 16,000,000 | 16,129,000 | 16,675,000 | 17,196,000 | 17,173,000 | ' | 16,298,000 | 16,793,000 | 15,168,000 | |||
Net income per share [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Basic (in dollars per share) | $1.17 | $0.55 | $0.56 | $0.52 | $0.60 | $0.43 | $0.36 | $1.01 | ' | $2.81 | $2.40 | $1.78 | |||
Diluted (in dollars per share) | $1.13 | $0.53 | $0.53 | $0.49 | $0.58 | $0.42 | $0.34 | $0.95 | ' | $2.71 | $2.30 | $1.73 | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Total stock-based compensation expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,492,000 | 3,991,000 | 3,419,000 | |||
Weighted average assumptions used in Black-Scholes valuation model [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Expected dividend yield (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.00% | 0.00% | 0.00% | |||
Risk-free interest rate (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.53% | 0.37% | 1.39% | |||
Expected volatility (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 48.00% | 50.00% | 48.00% | |||
Expected life | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years 7 months 6 days | '3 years 8 months 12 days | '4 years 4 months 24 days | |||
Expected forfeiture rate (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7.00% | 7.00% | 9.00% | |||
Total unrecognized compensation cost | 4,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | 4,100,000 | ' | ' | |||
Total unrecognized compensation cost, period for recognition | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | ' | ' | |||
Treasury Stock [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Stock repurchased during period, shares (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 179,000 | 1,500,000 | 426,000 | |||
Stock repurchased during period, amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,262,000 | 31,788,000 | 5,321,000 | |||
Employee and director stock options [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Total stock-based compensation expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,751,000 | 3,438,000 | 3,112,000 | |||
Employee Stock Purchases [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Total stock-based compensation expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | 741,000 | 553,000 | 307,000 | |||
Cost of revenues [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Total stock-based compensation expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | 406,000 | 325,000 | 278,000 | |||
Sales and marketing [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Total stock-based compensation expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | 864,000 | 873,000 | 764,000 | |||
Research and development [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Total stock-based compensation expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | 990,000 | 893,000 | 750,000 | |||
General and administrative [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Total stock-based compensation expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2,232,000 | $1,900,000 | $1,627,000 | |||
Stock Options [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Anti-dilutive shares excluded from computation of diluted shares [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Anti-dilutive stock option shares (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 65,000 | 119,000 | 1,023,000 | |||
Minimum [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Amortization period of intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Vesting period | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | |||
Maximum [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Amortization period of intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | '17 years | ' | ' | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Vesting period | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | |||
Leases-in-Place [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Amortization period of intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years 6 months | '5 years 6 months | ' | |||
[1] | During the fourth quarter of 2013 we released a portion of our valuation allowance totaling approximately $9.7 million. (See Income Taxes- Notes to Consolidated Financial Statements). | ||||||||||||||
[2] | During the first quarter of 2012 we released a portion of our valuation allowance totaling approximately $11.9 million. During the fourth quarter of 2012 we released another portion of our valuation allowance totaling approximately $2.5 million (See Income Taxes- Notes to Consolidated Financial Statements). |
Intangible_Assets_Details
Intangible Assets (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Intangible Assets [Abstract] | ' | ' | ' |
Gross carrying value of amortizable and non-amortizable intangible assets | $9,400,000 | $9,400,000 | ' |
Accumulated amortization | 8,300,000 | 8,100,000 | ' |
Purchase of corporate headquarters | ' | 13,400,000 | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Weighted average amortization period of intangible assets | '4 years 2 months 12 days | ' | ' |
Aggregate amortization expense on patents and trademarks | 215,000 | 269,000 | 47,000 |
Expected yearly amortization expense [Abstract] | ' | ' | ' |
Amortization expense, 2014 | 107,000 | ' | ' |
Amortization expense, 2015 | 107,000 | ' | ' |
Amortization expense, 2016 | 107,000 | ' | ' |
Amortization expense, 2017 | 107,000 | ' | ' |
Amortization expense, 2018 | 107,000 | ' | ' |
Minimum [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Expected useful lives of amortizable intangible assets | '5 years | ' | ' |
Maximum [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Expected useful lives of amortizable intangible assets | '17 years | ' | ' |
Leases-in-Place [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Intangible assets purchased | $700,000 | $700,000 | ' |
Expected useful lives of amortizable intangible assets | '5 years 6 months | '5 years 6 months | ' |
Cash_Cash_Equivalents_and_Inve2
Cash, Cash Equivalents and Investments (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Security | ||||
Cash, Cash Equivalents and Investments [Abstract] | ' | ' | ' | ' |
Number of securities held | 7 | ' | ' | ' |
Fair value of securities | $2,900,000 | ' | ' | ' |
Cash and cash equivalents [Abstract] | ' | ' | ' | ' |
Cost or Amortized Cost | 66,674,000 | 29,576,000 | 54,087,000 | 8,071,000 |
Contractual maturities of marketable fixed-income securities [Abstract] | ' | ' | ' | ' |
Due within one year, Amortized Cost | 6,479,000 | ' | ' | ' |
Due after one year through five years, Amortized Cost | 13,917,000 | ' | ' | ' |
Due after five years through ten years, Amortized Cost | 0 | ' | ' | ' |
Total, Amortized Cost | 20,396,000 | ' | ' | ' |
Due within one year, Estimated Fair Value | 6,524,000 | ' | ' | ' |
Due after one year through five years, Estimated Fair Value | 14,012,000 | ' | ' | ' |
Due after five years through ten years, Estimated Fair Value | 0 | ' | ' | ' |
Total, Estimated Fair Value | 20,536,000 | ' | ' | ' |
Cash and cash equivalents [Member] | ' | ' | ' | ' |
Cash and cash equivalents [Abstract] | ' | ' | ' | ' |
Cost or Amortized Cost | 66,674,000 | 29,576,000 | ' | ' |
Gross Unrealized Gains | 0 | 0 | ' | ' |
Gross Unrealized Losses | 0 | 0 | ' | ' |
Estimated Fair Value | 66,674,000 | 29,576,000 | ' | ' |
Short-term investments [Member] | ' | ' | ' | ' |
Cash and cash equivalents [Abstract] | ' | ' | ' | ' |
Cost or Amortized Cost | 6,479,000 | 6,253,000 | ' | ' |
Gross Unrealized Gains | 45,000 | 70,000 | ' | ' |
Gross Unrealized Losses | 0 | 0 | ' | ' |
Estimated Fair Value | 6,524,000 | 6,323,000 | ' | ' |
Long-term investments [Member] | ' | ' | ' | ' |
Cash and cash equivalents [Abstract] | ' | ' | ' | ' |
Cost or Amortized Cost | 13,917,000 | 10,539,000 | ' | ' |
Gross Unrealized Gains | 106,000 | 190,000 | ' | ' |
Gross Unrealized Losses | -11,000 | -9,000 | ' | ' |
Estimated Fair Value | 14,012,000 | 10,720,000 | ' | ' |
Cash, cash equivalents and investments [Member] | ' | ' | ' | ' |
Cash and cash equivalents [Abstract] | ' | ' | ' | ' |
Cost or Amortized Cost | 87,070,000 | 46,368,000 | ' | ' |
Gross Unrealized Gains | 151,000 | 260,000 | ' | ' |
Gross Unrealized Losses | -11,000 | -9,000 | ' | ' |
Estimated Fair Value | 87,210,000 | 46,619,000 | ' | ' |
Cash [Member] | Cash and cash equivalents [Member] | ' | ' | ' | ' |
Cash and cash equivalents [Abstract] | ' | ' | ' | ' |
Cost or Amortized Cost | 46,792,000 | 7,043,000 | ' | ' |
Gross Unrealized Gains | 0 | 0 | ' | ' |
Gross Unrealized Losses | 0 | 0 | ' | ' |
Estimated Fair Value | 46,792,000 | 7,043,000 | ' | ' |
Money market [Member] | Cash and cash equivalents [Member] | ' | ' | ' | ' |
Cash and cash equivalents [Abstract] | ' | ' | ' | ' |
Cost or Amortized Cost | 19,882,000 | 22,533,000 | ' | ' |
Gross Unrealized Gains | 0 | 0 | ' | ' |
Gross Unrealized Losses | 0 | 0 | ' | ' |
Estimated Fair Value | 19,882,000 | 22,533,000 | ' | ' |
Corporate notes and bonds [Member] | Short-term investments [Member] | ' | ' | ' | ' |
Cash and cash equivalents [Abstract] | ' | ' | ' | ' |
Cost or Amortized Cost | ' | 5,248,000 | ' | ' |
Gross Unrealized Gains | ' | 66,000 | ' | ' |
Gross Unrealized Losses | ' | 0 | ' | ' |
Estimated Fair Value | ' | 5,314,000 | ' | ' |
Corporate bonds and asset backed securities [Member] | Short-term investments [Member] | ' | ' | ' | ' |
Cash and cash equivalents [Abstract] | ' | ' | ' | ' |
Cost or Amortized Cost | 6,479,000 | ' | ' | ' |
Gross Unrealized Gains | 45,000 | ' | ' | ' |
Gross Unrealized Losses | 0 | ' | ' | ' |
Estimated Fair Value | 6,524,000 | ' | ' | ' |
Corporate bonds and asset backed securities [Member] | Long-term investments [Member] | ' | ' | ' | ' |
Cash and cash equivalents [Abstract] | ' | ' | ' | ' |
Cost or Amortized Cost | 13,917,000 | 10,539,000 | ' | ' |
Gross Unrealized Gains | 106,000 | 190,000 | ' | ' |
Gross Unrealized Losses | -11,000 | -9,000 | ' | ' |
Estimated Fair Value | 14,012,000 | 10,720,000 | ' | ' |
U.S. government and agency securities [Member] | Short-term investments [Member] | ' | ' | ' | ' |
Cash and cash equivalents [Abstract] | ' | ' | ' | ' |
Cost or Amortized Cost | ' | 1,005,000 | ' | ' |
Gross Unrealized Gains | ' | 4,000 | ' | ' |
Gross Unrealized Losses | ' | 0 | ' | ' |
Estimated Fair Value | ' | $1,009,000 | ' | ' |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Financial assets measured at fair value on a recurring basis [Abstract] | ' | ' |
Available-for-sale debt securities | $20,536 | ' |
Recurring [Member] | ' | ' |
Financial assets measured at fair value on a recurring basis [Abstract] | ' | ' |
Cash and cash equivalents | 66,674 | 29,576 |
Available-for-sale debt securities | 20,536 | 17,043 |
Total | 87,210 | 46,619 |
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' |
Financial assets measured at fair value on a recurring basis [Abstract] | ' | ' |
Cash and cash equivalents | 66,674 | 29,576 |
Available-for-sale debt securities | 0 | 0 |
Total | 66,674 | 29,576 |
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Financial assets measured at fair value on a recurring basis [Abstract] | ' | ' |
Cash and cash equivalents | 0 | 0 |
Available-for-sale debt securities | 20,536 | 17,043 |
Total | 20,536 | 17,043 |
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Financial assets measured at fair value on a recurring basis [Abstract] | ' | ' |
Cash and cash equivalents | 0 | 0 |
Available-for-sale debt securities | 0 | 0 |
Total | $0 | $0 |
Accounts_Payable_and_Accrued_E2
Accounts Payable and Accrued Expenses (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Accounts Payable and Accrued Expenses [Abstract] | ' | ' |
Payroll and related accrual | $4,575 | $3,783 |
Cost of sale, inventory and materials accrual | 2,035 | 2,366 |
Construction and related fixed asset accrual | 401 | 2,216 |
Professional fees accrual | 688 | 690 |
Sales and marketing related accrual | 2,457 | 2,832 |
Operating expenses related accrual | 1,975 | 1,651 |
Other accruals | 1,797 | 2,828 |
Accounts payable and accrued expenses | $13,928 | $16,366 |
Allowance_for_Doubtful_Account1
Allowance for Doubtful Accounts (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Allowance for Doubtful Accounts [Abstract] | ' | ' |
Total allowance for doubtful accounts | $283,000 | $239,000 |
Increases in allowance for doubtful accounts | 44,000 | 122,000 |
Write-offs against allowance for doubtful accounts | $0 | $0 |
Property_and_Equipment_Details
Property and Equipment (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment, gross | $38,740,000 | $35,284,000 | ' |
Less accumulated depreciation and amortization | -8,977,000 | -6,653,000 | ' |
Property and equipment, net | 29,763,000 | 28,631,000 | ' |
Depreciation expense | 2,400,000 | 1,400,000 | 838,000 |
Land [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment, gross | 7,156,000 | 7,156,000 | ' |
Building [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment, gross | 4,886,000 | 4,886,000 | ' |
Building Improvements [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment, gross | 13,483,000 | 13,569,000 | ' |
Furniture and equipment [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment, gross | 987,000 | 1,362,000 | ' |
Computers and software [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment, gross | $12,228,000 | $8,311,000 | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Trigger | ||||||
Valuation Allowance [Line Items] | ' | ' | ' | ' | ' | ' |
Period of forecast for projected taxable income | '3 years | '3 years | ' | ' | ' | ' |
Income tax benefit due to release of valuation allowance | $9,700,000 | $2,500,000 | $11,900,000 | ' | ' | ' |
Research and development tax credits | 5,800,000 | ' | ' | 5,800,000 | ' | ' |
Reconciliation of unrecognized tax benefits [Roll Forward] | ' | ' | ' | ' | ' | ' |
Balance | ' | ' | -1,745,000 | -1,905,000 | -1,745,000 | -1,733,000 |
Reduction for tax positions of prior years | ' | ' | ' | 0 | 0 | 71,000 |
Addition for tax position of the current year | ' | ' | ' | -409,000 | -160,000 | -83,000 |
Settlement | ' | ' | ' | 0 | 0 | 0 |
Balance | -2,314,000 | -1,905,000 | ' | -2,314,000 | -1,905,000 | -1,745,000 |
Interest and penalty expense | ' | ' | ' | 0 | ' | ' |
Deferred tax assets (liabilities) [Abstract] | ' | ' | ' | ' | ' | ' |
Net operating loss carryforward | 57,277,000 | 63,830,000 | ' | 57,277,000 | 63,830,000 | ' |
Tax credits | 7,555,000 | 5,467,000 | ' | 7,555,000 | 5,467,000 | ' |
Depreciation | -775,000 | -139,000 | ' | -775,000 | -139,000 | ' |
Amortization | 322,000 | 494,000 | ' | 322,000 | 494,000 | ' |
Accruals | 3,157,000 | 2,214,000 | ' | 3,157,000 | 2,214,000 | ' |
Total deferred tax assets | 67,536,000 | 71,866,000 | ' | 67,536,000 | 71,866,000 | ' |
Valuation allowance | -27,274,000 | -41,317,000 | ' | -27,274,000 | -41,317,000 | ' |
Net deferred tax assets | 40,262,000 | 30,549,000 | ' | 40,262,000 | 30,549,000 | ' |
NOL carryforward for federal income tax purpose | 200,000,000 | ' | ' | 200,000,000 | ' | ' |
NOL carryforward for state income tax purpose | 95,000,000 | ' | ' | 95,000,000 | ' | ' |
Tax Credit Carryforward [Line Items] | ' | ' | ' | ' | ' | ' |
NOL carryforwards attributable to employee stock option exercises | 18,200,000 | ' | ' | 18,200,000 | ' | ' |
Increase in additional paid in capital due to excess tax benefits realized | ' | ' | ' | 18,200,000 | ' | ' |
Percentage ownership required to trigger impairment of NOLs (in hundredths) | ' | ' | ' | 50.00% | ' | ' |
Number of five percent shareholders to trigger change in ownership, minimum | ' | ' | ' | 1 | ' | ' |
Percentage of shares held by single shareholder to trigger change in ownership (in hundredths) | ' | ' | ' | 5.00% | ' | ' |
Period to trigger change in ownership, maximum | ' | ' | ' | '3 years | ' | ' |
Percentage achieved compared with percentage set to trigger change in ownership (in hundredths) | ' | ' | ' | 19.00% | ' | ' |
Current [Abstract] | ' | ' | ' | ' | ' | ' |
Federal | ' | ' | ' | 226,000 | 411,000 | 0 |
State | ' | ' | ' | -68,000 | 154,000 | 0 |
Total | ' | ' | ' | 158,000 | 565,000 | 0 |
Deferred [Abstract] | ' | ' | ' | ' | ' | ' |
Federal | ' | ' | ' | -7,842,000 | -15,958,000 | -7,245,000 |
State | ' | ' | ' | -1,871,000 | 1,534,000 | -1,230,000 |
Total | ' | ' | ' | -9,713,000 | -14,424,000 | -8,475,000 |
Benefit for income taxes | ' | ' | ' | -9,555,000 | -13,859,000 | -8,475,000 |
Differences between provision for income taxes and income taxes at statutory federal income tax rate [Abstract] | ' | ' | ' | ' | ' | ' |
Income tax at statutory federal rate | ' | ' | ' | 11,764,000 | 8,823,000 | 6,057,000 |
State income taxes, net of federal benefit | ' | ' | ' | 652,000 | 1,516,000 | 1,044,000 |
Effect of permanent differences | ' | ' | ' | 199,000 | 12,000 | 12,000 |
Change in valuation allowance - discrete release | ' | ' | ' | -9,713,000 | -14,424,000 | -8,475,000 |
Other changes in valuation allowance, net | ' | ' | ' | -10,364,000 | -13,431,000 | -7,225,000 |
Change in state rate | ' | ' | ' | -789,000 | 4,186,000 | 0 |
Other | ' | ' | ' | -1,304,000 | -541,000 | 112,000 |
Benefit for income taxes | ' | ' | ' | -9,555,000 | -13,859,000 | -8,475,000 |
Federal [Member] | ' | ' | ' | ' | ' | ' |
Tax Credit Carryforward [Line Items] | ' | ' | ' | ' | ' | ' |
Tax credit carryforward | 4,000,000 | ' | ' | 4,000,000 | ' | ' |
State [Member] | ' | ' | ' | ' | ' | ' |
Tax Credit Carryforward [Line Items] | ' | ' | ' | ' | ' | ' |
Tax credit carryforward | $3,500,000 | ' | ' | $3,500,000 | ' | ' |
Minimum [Member] | ' | ' | ' | ' | ' | ' |
Valuation Allowance [Line Items] | ' | ' | ' | ' | ' | ' |
Period of forecast for projected taxable income | ' | ' | ' | '2 years | ' | ' |
Maximum [Member] | ' | ' | ' | ' | ' | ' |
Valuation Allowance [Line Items] | ' | ' | ' | ' | ' | ' |
Period of forecast for projected taxable income | ' | ' | ' | '3 years | ' | ' |
Employee_Stock_Plans_Details
Employee Stock Plans (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Options Outstanding, Number of Options [Roll Forward] | ' | ' | ' |
Balance (in shares) | 1,861,000 | 2,317,000 | 2,778,000 |
Granted (in shares) | 164,000 | 192,000 | 1,718,000 |
Forfeited (in shares) | -38,000 | -88,000 | -136,000 |
Exercised (in shares) | -991,000 | -560,000 | -2,043,000 |
Balance (in shares) | 996,000 | 1,861,000 | 2,317,000 |
Exercisable (in shares) | 512,000 | ' | ' |
Weighted Average Exercise Price [Roll Forward] | ' | ' | ' |
Balance (in dollars per share) | $14.33 | $13.36 | $12.58 |
Granted (in dollars per share) | $34.29 | $25.50 | $13.20 |
Forfeited (in dollars per share) | $21.57 | $21.44 | $12.01 |
Exercised (in dollars per share) | $13.55 | $13.04 | $12.25 |
Balance (in dollars per share) | $18.12 | $14.33 | $13.36 |
Exercisable (in dollars per share) | $14.75 | ' | ' |
Weighted Average Remaining Contractual Life (in Years) [Abstract] | ' | ' | ' |
Balance at December 31, 2012 | '7 years | ' | ' |
Exercisable at December 31, 2012 | '5 years 9 months 18 days | ' | ' |
Aggregate Intrinsic Value [Abstract] | ' | ' | ' |
Balance at December, 31, 2012 | $23,991,000 | ' | ' |
Exercisable at December, 31, 2012 | 13,991,000 | ' | ' |
Weighted-average fair value of stock grants using Black-Scholes valuation model [Abstract] | ' | ' | ' |
Weighted-average fair value of stock options with an exercise price equal to the market price on the grant date (in dollars per share) | $5.10 | $5.04 | $5.05 |
Weighted-average fair value of stock options with an exercise price greater than the market price on the grant date (in dollars per share) | $0 | $0 | $0 |
Total (in dollars per share) | $5.10 | $5.04 | $5.05 |
Weighted average exercise prices for stock options exercised [Abstract] | ' | ' | ' |
Weighted-average exercise price of stock options with an exercise price equal to the market price on the grant date (in dollars per share) | $13.56 | ' | ' |
Weighted-average exercise price of stock options with an exercise price greater than the market price on the grant date (in dollars per share) | $13.40 | ' | ' |
Total weighted-average exercise price (in dollars per share) | $13.55 | $13.04 | $12.25 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' |
Range of Exercise Prices, lower (in dollars per share) | $0 | ' | ' |
Range of Exercise Prices, upper (in dollars per share) | $49.99 | ' | ' |
Options Outstanding, Number Outstanding (in shares) | 996,000 | ' | ' |
Options Outstanding, Weighted Average Remaining Contractual Life (in Years) | '7 years | ' | ' |
Options Outstanding, Weighted Average Exercise Price per Share (in dollars per share) | $18.12 | ' | ' |
Options Exercisable, Number Exercisable (in shares) | 512,000 | ' | ' |
Options Exercisable, Weighted Average Exercise Price per Share (in dollars per share) | $14.75 | ' | ' |
Closing stock price (in dollars per share) | $42.10 | ' | ' |
Weighted average grant date fair value of options vested (in dollars per share) | $5.47 | $5.03 | $4.78 |
Total intrinsic value of options exercised | 24,000,000 | 8,400,000 | 25,100,000 |
Non-vested Number of Stock Options [Roll Forward] | ' | ' | ' |
Nonvested, Beginning Balance (in shares) | 996,000 | ' | ' |
Granted (in shares) | 164,000 | ' | ' |
Vested (in shares) | -641,000 | ' | ' |
Forfeited / Cancelled (in shares) | -35,000 | ' | ' |
Nonvested, Ending Balance (in shares) | 484,000 | 996,000 | ' |
Weighted Average Grant Date Fair Value [Roll Forward] | ' | ' | ' |
Nonvested, Beginning Balance (in dollars per share) | $5.67 | ' | ' |
Granted (in dollars per share) | $13.48 | $9.41 | $5.05 |
Vested (in dollars per share) | $8.26 | ' | ' |
Forfeited / Cancelled (in dollars per share) | $5.47 | ' | ' |
Nonvested, Ending Balance (in dollars per share) | $8.48 | $5.67 | ' |
Total unrecognized compensation cost related to non-vested share-based compensation arrangements | 4,100,000 | ' | ' |
Weighted-average period for recognition of unrecognized non-vested share-based compensation | '2 years | ' | ' |
Stock Incentive Plans [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Aggregate number of common shares reserved for future issuance upon adoption (in shares) | 3,500,000 | ' | ' |
Stock Incentive Plans [Member] | Restricted stock and restricted stock units [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Full value awards counted against Plan's overall limits (in shares) | 2 | ' | ' |
Earlier Full value awards counted against Plan's overall limits (in shares) | 1 | ' | ' |
Stock Incentive Plans [Member] | Stock appreciation rights [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Full value awards counted against Plan's overall limits (in shares) | 1 | ' | ' |
Employee Stock Purchase Plan [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Contribution by participants of cash earnings through payroll deductions, maximum (in hundredths) | 15.00% | ' | ' |
Purchase price per share of fair market value on participant's entry date into offering period (in hundredths) | 85.00% | ' | ' |
Aggregate number of common shares reserved for future issuance upon adoption (in shares) | 150,000 | ' | ' |
Increase in percentage of total number of outstanding shares of our common stock (in hundredths) | 1.00% | ' | ' |
Extension of period beyond expiration date | '10 years | ' | ' |
Shares held in ESPP (in shares) | 1,700,000 | 1,700,000 | ' |
Total shares of common stock issued (in shares) | 56,000 | 56,000 | 56,000 |
Employee Stock Purchase Plan [Member] | Maximum [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Common stock were reserved for annual issuance, maximum (in shares) | 260,786 | ' | ' |
Savings Plan [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Percent matched of first 4% a participant contributes (in hundredths) | 50.00% | ' | ' |
Percentage of participant contribution that is matched (in hundredths) | 4.00% | ' | ' |
Compensation expense | $326,000 | $303,000 | $276,000 |
$0.00 - $9.99 [Member] | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' |
Range of Exercise Prices, lower (in dollars per share) | $0 | ' | ' |
Range of Exercise Prices, upper (in dollars per share) | $9.99 | ' | ' |
Options Outstanding, Number Outstanding (in shares) | 40,000 | ' | ' |
Options Outstanding, Weighted Average Remaining Contractual Life (in Years) | '6 years 6 months | ' | ' |
Options Outstanding, Weighted Average Exercise Price per Share (in dollars per share) | $6.61 | ' | ' |
Options Exercisable, Number Exercisable (in shares) | 28,000 | ' | ' |
Options Exercisable, Weighted Average Exercise Price per Share (in dollars per share) | $9.15 | ' | ' |
$10.00 - $19.99 [Member] | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' |
Range of Exercise Prices, lower (in dollars per share) | $10 | ' | ' |
Range of Exercise Prices, upper (in dollars per share) | $19.99 | ' | ' |
Options Outstanding, Number Outstanding (in shares) | 649,000 | ' | ' |
Options Outstanding, Weighted Average Remaining Contractual Life (in Years) | '6 years 3 months 18 days | ' | ' |
Options Outstanding, Weighted Average Exercise Price per Share (in dollars per share) | $12.76 | ' | ' |
Options Exercisable, Number Exercisable (in shares) | 408,000 | ' | ' |
Options Exercisable, Weighted Average Exercise Price per Share (in dollars per share) | $12.81 | ' | ' |
$20.00 - $29.99 [Member] | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' |
Range of Exercise Prices, lower (in dollars per share) | $20 | ' | ' |
Range of Exercise Prices, upper (in dollars per share) | $29.99 | ' | ' |
Options Outstanding, Number Outstanding (in shares) | 191,000 | ' | ' |
Options Outstanding, Weighted Average Remaining Contractual Life (in Years) | '8 years 1 month 6 days | ' | ' |
Options Outstanding, Weighted Average Exercise Price per Share (in dollars per share) | $25.12 | ' | ' |
Options Exercisable, Number Exercisable (in shares) | 55,000 | ' | ' |
Options Exercisable, Weighted Average Exercise Price per Share (in dollars per share) | $24.23 | ' | ' |
$30.00 - $39.99 [Member] | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' |
Range of Exercise Prices, lower (in dollars per share) | $30 | ' | ' |
Range of Exercise Prices, upper (in dollars per share) | $39.99 | ' | ' |
Options Outstanding, Number Outstanding (in shares) | 48,000 | ' | ' |
Options Outstanding, Weighted Average Remaining Contractual Life (in Years) | '8 years 7 months 6 days | ' | ' |
Options Outstanding, Weighted Average Exercise Price per Share (in dollars per share) | $36.21 | ' | ' |
Options Exercisable, Number Exercisable (in shares) | 20,000 | ' | ' |
Options Exercisable, Weighted Average Exercise Price per Share (in dollars per share) | $35.79 | ' | ' |
$40.00 - $49.99 [Member] | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' |
Range of Exercise Prices, lower (in dollars per share) | $40 | ' | ' |
Range of Exercise Prices, upper (in dollars per share) | $49.99 | ' | ' |
Options Outstanding, Number Outstanding (in shares) | 68,000 | ' | ' |
Options Outstanding, Weighted Average Remaining Contractual Life (in Years) | '9 years 8 months 12 days | ' | ' |
Options Outstanding, Weighted Average Exercise Price per Share (in dollars per share) | $43.55 | ' | ' |
Options Exercisable, Number Exercisable (in shares) | 1,000 | ' | ' |
Options Exercisable, Weighted Average Exercise Price per Share (in dollars per share) | $44.03 | ' | ' |
Quarterly_Information_Unaudite2
Quarterly Information (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
Share data in Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Quarterly Information (Unaudited) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Revenues | $32,364,000 | $31,245,000 | $32,109,000 | $32,101,000 | $30,070,000 | $29,071,000 | $28,227,000 | $28,293,000 | $127,819,000 | $115,661,000 | $101,585,000 | |||
Gross profit | 26,188,000 | 24,661,000 | 25,021,000 | 24,449,000 | 22,708,000 | 22,578,000 | 21,589,000 | 21,030,000 | 100,319,000 | 87,905,000 | 75,373,000 | |||
Income from operations | 8,997,000 | 8,761,000 | 8,545,000 | 7,815,000 | 6,827,000 | 7,085,000 | 5,824,000 | 4,421,000 | 34,118,000 | 24,157,000 | 17,228,000 | |||
Net income | 18,871,000 | [1] | 8,763,000 | 8,613,000 | 7,906,000 | 9,297,000 | [2] | 6,977,000 | 5,923,000 | 16,360,000 | [2] | 44,153,000 | 38,557,000 | 26,265,000 |
Net income per share [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Basic (in dollars per share) | $1.17 | $0.55 | $0.56 | $0.52 | $0.60 | $0.43 | $0.36 | $1.01 | $2.81 | $2.40 | $1.78 | |||
Diluted (in dollars per share) | $1.13 | $0.53 | $0.53 | $0.49 | $0.58 | $0.42 | $0.34 | $0.95 | $2.71 | $2.30 | $1.73 | |||
Weighted average shares outstanding [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Basic (in shares) | 16,124 | 15,816 | 15,486 | 15,328 | 15,502 | 16,103 | 16,468 | 16,250 | 15,691 | 16,079 | 14,767 | |||
Diluted (in shares) | 16,640 | 16,389 | 16,163 | 16,000 | 16,129 | 16,675 | 17,196 | 17,173 | 16,298 | 16,793 | 15,168 | |||
Change in valuation allowance discrete release | $9,700,000 | ' | ' | ' | $2,500,000 | ' | ' | $11,900,000 | ' | ' | ' | |||
[1] | During the fourth quarter of 2013 we released a portion of our valuation allowance totaling approximately $9.7 million. (See Income Taxes- Notes to Consolidated Financial Statements). | |||||||||||||
[2] | During the first quarter of 2012 we released a portion of our valuation allowance totaling approximately $11.9 million. During the fourth quarter of 2012 we released another portion of our valuation allowance totaling approximately $2.5 million (See Income Taxes- Notes to Consolidated Financial Statements). |