Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Oct. 31, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'Support.com, Inc. | ' |
Entity Central Index Key | '0001104855 | ' |
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 Common Stock, Shares Outstanding | ' | 54,094,101 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-14 | ' |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | |
In Thousands, unless otherwise specified | |||
Current assets: | ' | ' | |
Cash and cash equivalents | $31,812 | $28,390 | [1] |
Short-term investments | 43,498 | 43,967 | [1] |
Accounts receivable, net | 15,190 | 13,993 | [1] |
Prepaid expenses and other current assets | 1,173 | 1,322 | [1] |
Total current assets | 91,673 | 87,672 | [1] |
Property and equipment, net | 428 | 461 | [1] |
Goodwill | 14,240 | 14,240 | [1] |
Intangible assets, net | 2,636 | 3,454 | [1] |
Other assets | 1,192 | 1,072 | [1] |
Total assets | 110,169 | 106,899 | [1] |
Current liabilities: | ' | ' | |
Accounts payable | 1,477 | 860 | [1] |
Accrued compensation | 3,482 | 2,157 | [1] |
Other accrued liabilities | 3,373 | 3,359 | [1] |
Short-term deferred revenue | 2,630 | 3,323 | [1] |
Total current liabilities | 10,962 | 9,699 | [1] |
Long-term deferred revenue | 61 | 50 | [1] |
Other long-term liabilities | 1,947 | 1,754 | [1] |
Total liabilities | 12,970 | 11,503 | [1] |
Commitments and contingencies (Note 4) | ' | ' | [1] |
Stockholders' equity: | ' | ' | |
Common stock; par value $0.0001, 150,000,000 shares authorized; 55,284,532 issued and 54,091,934 outstanding at September 30, 2014; 54,474,594 issued and 53,281,996 outstanding at December 31, 2013 | 5 | 5 | [1] |
Additional paid-in capital | 261,341 | 258,291 | [1] |
Treasury stock | -5,036 | -5,036 | [1] |
Accumulated other comprehensive loss | -1,884 | -1,874 | [1] |
Accumulated deficit | -157,227 | -155,990 | [1] |
Total stockholders' equity | 97,199 | 95,396 | [1] |
Total liabilities and stockholders' equity | $110,169 | $106,899 | [1] |
[1] | Derived from the December 31, 2013 audited Consolidated Financial Statements included in our Annual Report on Form 10-K, as filed with the Securities and Exchange Commission ("SEC") on March 7, 2014. |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Stockholders' equity: | ' | ' |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized (in shares) | 150,000,000 | 150,000,000 |
Common stock, shares issued (in shares) | 55,284,532 | 54,474,594 |
Common stock, shares outstanding (in shares) | 54,091,934 | 53,281,996 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Revenue: | ' | ' | ' | ' |
Services | $20,844 | $19,585 | $56,639 | $52,609 |
Software and other | 1,387 | 3,774 | 4,382 | 11,077 |
Total revenue | 22,231 | 23,359 | 61,021 | 63,686 |
Costs of revenue: | ' | ' | ' | ' |
Cost of services | 16,020 | 11,046 | 43,513 | 29,194 |
Cost of software and other | 189 | 294 | 656 | 872 |
Total cost of revenue | 16,209 | 11,340 | 44,169 | 30,066 |
Gross profit | 6,022 | 12,019 | 16,852 | 33,620 |
Operating expenses: | ' | ' | ' | ' |
Research and development | 1,203 | 1,456 | 3,614 | 4,325 |
Sales and marketing | 1,782 | 4,120 | 5,022 | 12,431 |
General and administrative | 2,808 | 3,077 | 8,450 | 8,193 |
Amortization of intangible assets and other | 273 | 335 | 818 | 1,005 |
Total operating expenses | 6,066 | 8,988 | 17,904 | 25,954 |
Income (loss) from operations | -44 | 3,031 | -1,052 | 7,666 |
Interest income and other, net | 77 | 127 | 217 | 307 |
Income (loss) from continuing operations, before income taxes | 33 | 3,158 | -835 | 7,973 |
Income tax provision | 128 | 121 | 385 | 446 |
Income (loss) from continuing operations, after income taxes | -95 | 3,037 | -1,220 | 7,527 |
Loss from discontinued operations, after income taxes | -6 | -5 | -18 | -16 |
Net income (loss) | ($101) | $3,032 | ($1,238) | $7,511 |
Basic and diluted earnings (loss) per share: | ' | ' | ' | ' |
Continuing operations, after income taxes (in dollars per share) | $0 | $0.06 | ($0.02) | $0.15 |
Discontinued operations, after income taxes (in dollars per share) | $0 | $0 | $0 | $0 |
Basic net earnings (loss) per share (in dollars per share) | $0 | $0.06 | ($0.02) | $0.15 |
Shares used in computing per share amounts: | ' | ' | ' | ' |
Basic (in shares) | 54,028 | 52,266 | 53,716 | 51,080 |
Diluted (in shares) | 54,028 | 54,661 | 53,716 | 53,508 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) [Abstract] | ' | ' | ' | ' |
Net income (loss) | ($101) | $3,032 | ($1,238) | $7,511 |
Other comprehensive income (loss): | ' | ' | ' | ' |
Change in foreign currency translation adjustment | -86 | -149 | -2 | -375 |
Change in net unrealized gain (loss) on investments | -8 | 5 | -8 | -18 |
Other comprehensive loss | -94 | -144 | -10 | -393 |
Comprehensive income (loss) | ($195) | $2,888 | ($1,248) | $7,118 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | |
Operating Activities: | ' | ' | |
Net income (loss) | ($1,238) | $7,511 | |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ' | ' | |
Depreciation | 209 | 262 | |
Amortization of premiums and discounts on investments | 552 | 442 | |
Amortization of purchased technology | 0 | 62 | |
Amortization of intangible assets and other | 818 | 1,005 | |
Stock-based compensation | 2,057 | 2,434 | |
Warrant-related charges | 0 | 383 | |
Changes in assets and liabilities: | ' | ' | |
Accounts receivable, net | -1,197 | -3,955 | |
Prepaid expenses and other current assets | 152 | -891 | |
Other long-term assets | -88 | 97 | |
Accounts payable | 618 | 795 | |
Accrued compensation | 1,331 | 1,511 | |
Other accrued liabilities | 20 | -132 | |
Other long-term liabilities | 123 | 181 | |
Deferred revenue | -632 | -2,263 | |
Net cash provided by operating activities | 2,725 | 7,442 | |
Investing Activities: | ' | ' | |
Purchases of investments | -45,707 | -43,836 | |
Maturities of investments | 45,616 | 31,046 | |
Purchases of property and equipment | -175 | -178 | |
Net cash used in investing activities | -266 | -12,968 | |
Financing Activities: | ' | ' | |
Proceeds from issuances of common stock | 993 | 9,673 | |
Repurchase of common stock | 0 | -4,114 | |
Net cash provided by financing activities | 993 | 5,559 | |
Effect of exchange rate changes on cash and cash equivalents | -30 | -263 | |
Net increase (decrease) in cash and cash equivalents | 3,422 | -230 | |
Cash and cash equivalents at beginning of period | 28,390 | [1] | 30,852 |
Cash and cash equivalents at end of period | 31,812 | 30,622 | |
Supplemental schedule of cash flow information: | ' | ' | |
Income taxes paid | $183 | $97 | |
[1] | Derived from the December 31, 2013 audited Consolidated Financial Statements included in our Annual Report on Form 10-K, as filed with the Securities and Exchange Commission ("SEC") on March 7, 2014. |
Significant_Accounting_Policie
Significant Accounting Policies | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Significant Accounting Policies [Abstract] | ' | ||||||||||||||||
Significant Accounting Policies | ' | ||||||||||||||||
Note 1. Significant Accounting Policies | |||||||||||||||||
Basis of Presentation | |||||||||||||||||
The accompanying unaudited condensed consolidated financial statements include the accounts of Support.com, Inc. (the “Company” or “Support.com”, “We” or “Our”) and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated. The condensed consolidated balance sheet as of September 30, 2014 and the condensed consolidated statements of operations and comprehensive income (loss) for the three and nine months ended September 30, 2014 and 2013 and the condensed consolidated statements of cash flows for the nine months ended September 30, 2014 and 2013 are unaudited. In the opinion of management, these unaudited interim condensed consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments) that are necessary for a fair presentation of the results for, and as of, the periods shown. The results of operations for such periods are not necessarily indicative of the results expected for the full fiscal year or for any future period. The condensed consolidated balance sheet information as of December 31, 2013 is derived from audited consolidated financial statements as of that date. These financial statements have been prepared based upon Securities and Exchange Commission (“SEC”) rules that permit reduced disclosure for interim periods. For a more complete discussion of significant accounting policies and certain other information, these unaudited interim condensed consolidated financial statements should be read with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013, filed with the Securities and Exchange Commission on March 7, 2014. | |||||||||||||||||
Use of Estimates | |||||||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. The accounting estimates that require management’s most significant, difficult and subjective judgments include accounting for revenue recognition, the valuation and recognition of investments, the assessment of recoverability of intangible assets and their estimated useful lives, the valuations and recognition of stock based compensation and the recognition and measurement of current and deferred income tax assets and liabilities. Actual results could differ materially from these estimates. | |||||||||||||||||
Revenue Recognition | |||||||||||||||||
For all transactions, we recognize revenue only when all of the following criteria are met: | |||||||||||||||||
• Persuasive evidence of an arrangement exists; | |||||||||||||||||
• Delivery has occurred; | |||||||||||||||||
• Collection is considered probable; and | |||||||||||||||||
• The fees are fixed or determinable. | |||||||||||||||||
We consider all arrangements with payment terms longer than 90 days not to be fixed or determinable. If the fee is considered not to be fixed or determinable, revenue is recognized as payment becomes due from the customer provided all other revenue recognition criteria have been met. | |||||||||||||||||
Services Revenue | |||||||||||||||||
Services revenue is comprised primarily of fees for technology support services. Our service programs are designed for both the consumer and small and medium business (“SMB”) markets, and include computer and mobile device set-up, security and support, virus and malware removal and wireless network set-up, and automation system onboarding and support. | |||||||||||||||||
We offer technology services to consumers and SMBs, primarily through our partners (which include communications providers, retailers, technology companies and others) and to a lesser degree directly through our website at www.support.com. We transact with customers via reseller programs, referral programs and direct transactions. In reseller programs, the partner generally executes the financial transactions with the customer and pays a fee to us which we recognize as revenue when the service is delivered. In referral programs, we transact with the customer directly and pay a referral fee to the referring party. Referral fees are generally expensed in the period in which revenues are recognized. In such referral programs, since we are the primary obligor and bear substantially all risks associated with the transaction, we record the gross amount of revenue. In direct transactions, we sell directly to the customer at the retail price. | |||||||||||||||||
The technology services described above include four types of offerings: | |||||||||||||||||
· | Hourly-Based Services - In connection with the provisions of certain services programs, fees are calculated based on contracted hourly rates with partners. For these programs, we recognize revenue as services are performed, based on billable hours of work delivered by our technology specialists. These services programs also include performance standards, which may result in incentives or penalties, which are recognized as earned or incurred. | ||||||||||||||||
· | Subscriptions - Customers purchase subscriptions or “service plans” under which certain services are provided over a fixed subscription period. Revenues for subscriptions are recognized ratably over the respective subscription periods. | ||||||||||||||||
· | Incident-Based Services - Customers purchase a discrete, one-time service. Revenue recognition occurs at the time of service delivery. Fees paid for services sold but not yet delivered are recorded as deferred revenue and recognized at the time of service delivery. | ||||||||||||||||
· | Service Cards / Gift Cards - Customers purchase a service card or a gift card, which entitles the cardholder to redeem a certain service at a time of their choosing. For these sales, revenue is deferred until the card has been redeemed and the service has been provided. | ||||||||||||||||
In certain cases, we are paid for services that are sold but not yet delivered. We initially record such balances as deferred revenue, and recognize revenue when the service has been provided or, on the non-subscription portion of these balances, when the likelihood of the service being redeemed by the customer is remote (“services breakage”). Based on our historical redemption patterns for these relationships, we believe that the likelihood of a service being delivered more than 90 days after sale is remote. We therefore recognize non-subscription deferred revenue balances older than 90 days as services revenue. For the three months ended September 30, 2014 and 2013, services breakage revenue accounted for approximately 1% of our total revenue. For the nine months ended September 30, 2014 and 2013, services breakage revenue was approximately 1% of our total revenue. | |||||||||||||||||
Partners are generally invoiced monthly. Fees from customers via referral programs and direct transactions are generally paid with a credit card at the time of sale. Revenue is recognized net of any applicable sales tax. | |||||||||||||||||
We generally provide a refund period on services, during which refunds may be granted to customers under certain circumstances, including inability to resolve certain support issues. For our partnerships, the refund period varies by partner, but is generally between 5 and 14 days. For referral programs and direct transactions, the refund period is generally 5 days. For all channels, we recognize revenue net of refunds and cancellations during the period. Refunds and cancellations have not been material. | |||||||||||||||||
Services revenue also includes fees from licensing of our Nexus® cloud-based software. In such arrangements, customers receive a right to use Nexus in their own technology support organizations. We license Nexus using a software-as-a-service (“SaaS”) model under which customers cannot take possession of the technology and pay us on a per-user basis during the term of the arrangement. In addition, services revenue includes fees from implementation services of Nexus. Currently, revenues from implementation services are recognized ratably over the customer life which is estimated as the term of the arrangement once the Nexus services are made available to customers. We generally charge for these services on a time and material basis. | |||||||||||||||||
Software and Other Revenue | |||||||||||||||||
Software and other revenue is comprised primarily of fees for end-user software products provided through direct customer downloads and through the sale of these end-user software products via partners. Our software is sold to customers as a perpetual license or as a fixed period subscription. We act as the primary obligor and generally control fulfillment, pricing, product requirements, and collection risk and therefore we record the gross amount of revenue. We provide a 30-day money back guarantee for the majority of our end-user software products. | |||||||||||||||||
For certain end-user software products, we sell perpetual licenses. We provide a limited amount of free technical support to customers. Since the cost of providing this free technical support is insignificant and free product enhancements are minimal and infrequent, we do not defer the recognition of revenue associated with sales of these products. | |||||||||||||||||
For certain of our end-user software products (principally SUPERAntiSpyware), we sell licenses for a fixed subscription period. We provide regular, significant updates over the subscription period and therefore recognize revenue for these products ratably over the subscription period. | |||||||||||||||||
Other revenue consists primarily of revenue generated through partners advertising to our customer base in various forms, including toolbar advertising, email marketing, and free trial offers. We recognize other revenue in the period in which our partners notify us that the revenue has been earned. | |||||||||||||||||
Cash, Cash Equivalents and Investments | |||||||||||||||||
All liquid instruments with an original maturity at the date of purchase of 90 days or less are classified as cash equivalents. Cash equivalents and short-term investments consist primarily of money market funds, certificates of deposit, commercial paper, corporate and municipal bonds. Our interest income on cash, cash equivalents and investments is recorded monthly and reported as interest income and other in our condensed consolidated statements of operations. | |||||||||||||||||
Our cash equivalents and short-term investments are classified as available-for-sale, and are reported at fair value with unrealized gains/losses included in accumulated other comprehensive loss within stockholders’ equity on the condensed consolidated balance sheets. We view our available-for-sale portfolio as available for use in our current operations, and therefore we present our marketable securities as short-term assets. | |||||||||||||||||
We monitor our investments for impairment on a quarterly basis and determine whether a decline in fair value is other-than-temporary by considering factors such as current economic and market conditions, the credit rating of the security’s issuer, the length of time an investment’s fair value has been below our carrying value, the Company’s intent to sell the security and the Company’s belief that it will not be required to sell the security before the recovery of its amortized cost. If an investment’s decline in fair value is deemed to be other-than-temporary, we reduce its carrying value to its estimated fair value, as determined based on quoted market prices or liquidation values. Declines in value judged to be other-than temporary, if any, are recorded in operations as incurred. At September 30, 2014, we evaluated our unrealized gains/losses on available-for-sale securities and determined them to be temporary. We currently do not intend to sell securities with unrealized losses and we concluded that we will not be required to sell these securities before the recovery of their amortized cost basis. At September 30, 2014 and December 31, 2013, the fair value of cash, cash equivalents and investments was $75.3 million and $72.4 million, respectively. | |||||||||||||||||
The following is a summary of cash, cash equivalents and investments at September 30, 2014 and December 31, 2013 (in thousands): | |||||||||||||||||
As of September 30, 2014 | Gross | Gross | |||||||||||||||
Amortized | Unrealized | Unrealized | |||||||||||||||
Cost | Gains | Losses | Fair Value | ||||||||||||||
Cash | $ | 17,145 | $ | — | $ | — | $ | 17,145 | |||||||||
Money market funds | 14,667 | — | — | 14,667 | |||||||||||||
Certificates of deposits | 1,200 | — | — | 1,200 | |||||||||||||
Commercial paper | 1,200 | — | — | 1,200 | |||||||||||||
Corporate notes and bonds | 39,122 | 1 | (26 | ) | 39,097 | ||||||||||||
U.S. government agency securities | 2,000 | 1 | — | 2,001 | |||||||||||||
$ | 75,334 | $ | 2 | $ | (26 | ) | $ | 75,310 | |||||||||
Classified as: | |||||||||||||||||
Cash and cash equivalents | $ | 31,812 | $ | — | $ | — | $ | 31,812 | |||||||||
Short-term investments | 43,522 | 2 | (26 | ) | 43,498 | ||||||||||||
$ | 75,334 | $ | 2 | $ | (26 | ) | $ | 75,310 | |||||||||
Gross | Gross | ||||||||||||||||
Amortized | Unrealized | Unrealized | |||||||||||||||
Cost | Gains | Losses | Fair Value | ||||||||||||||
As of December 31, 2013 | |||||||||||||||||
Cash | $ | 15,660 | $ | — | $ | — | $ | 15,660 | |||||||||
Money market funds | 11,771 | — | — | 11,771 | |||||||||||||
Certificates of deposits | 4,258 | — | (2 | ) | 4,256 | ||||||||||||
Commercial paper | 7,298 | — | — | 7,298 | |||||||||||||
Corporate notes and bonds | 33,386 | 8 | (22 | ) | 33,372 | ||||||||||||
$ | 72,373 | $ | 8 | $ | (24 | ) | $ | 72,357 | |||||||||
Classified as: | |||||||||||||||||
Cash and cash equivalents | $ | 28,390 | $ | — | $ | — | $ | 28,390 | |||||||||
Short-term investments | 43,983 | 8 | (24 | ) | 43,967 | ||||||||||||
$ | 72,373 | $ | 8 | $ | (24 | ) | $ | 72,357 | |||||||||
The following table summarizes the estimated fair value of our available-for-sale securities classified by the stated maturity date of the security (in thousands): | |||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Due within one year | $ | 39,618 | $ | 34,916 | |||||||||||||
Due within two years | 3,880 | 9,051 | |||||||||||||||
$ | 43,498 | $ | 43,967 | ||||||||||||||
Fair Value Measurements | |||||||||||||||||
Accounting Standard Codification (“ASC”) 820, Fair Value Measurements and Disclosures, defines fair value, establishes a framework for measuring fair value under generally accepted accounting principles and enhances disclosures about fair value measurements. Fair value is defined under ASC 820 as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value ASC 820 must maximize the use of observable inputs and minimize the use of unobservable inputs. The standard describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value, which are the following: | |||||||||||||||||
• | Level 1 - Quoted prices in active markets for identical assets or liabilities. | ||||||||||||||||
• | Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | ||||||||||||||||
• | Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. | ||||||||||||||||
In accordance with ASC 820, the following table represents our fair value hierarchy for our financial assets (cash equivalents and investments) measured at fair value on a recurring basis as of September 30, 2014 and December 31, 2013 (in thousands): | |||||||||||||||||
As of September 30, 2014 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Money market funds | $ | 14,667 | $ | — | $ | — | $ | 14,667 | |||||||||
Certificates of deposits | — | 1,200 | — | 1,200 | |||||||||||||
Commercial paper | — | 1,200 | — | 1,200 | |||||||||||||
Corporate notes and bonds | — | 39,097 | — | 39,097 | |||||||||||||
U.S. government agency securities | — | 2,001 | — | 2,001 | |||||||||||||
Total | $ | 14,667 | $ | 43,498 | $ | — | $ | 58,165 | |||||||||
As of December 31, 2013 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Money market funds | $ | 11,771 | $ | — | $ | — | $ | 11,771 | |||||||||
Certificates of deposits | 4,256 | — | — | 4,256 | |||||||||||||
Commercial paper | — | 7,298 | — | 7,298 | |||||||||||||
Corporate notes and bonds | — | 33,372 | — | 33,372 | |||||||||||||
Total | $ | 16,027 | $ | 40,670 | $ | — | $ | 56,697 | |||||||||
For marketable securities, measured at fair value using Level 2 inputs, we review trading activity and pricing for these investments as of the measurement date. When sufficient quoted pricing for identical securities is not available, we use market pricing and other observable market inputs for similar securities obtained from various third party data providers. These inputs either represent quoted prices for similar assets in active markets or have been derived from observable market data. We transferred our investments in certificates of deposits from Level 1 to Level 2 during the three months ended March 31, 2014 as a result of a decrease in availability and reliability of the observable inputs utilized in the respective instruments’ fair value measurement. Our policy is that the end of our quarterly reporting period determines when transfers of financial instruments between levels are recognized. | |||||||||||||||||
Concentrations of Credit Risk | |||||||||||||||||
Financial instruments that potentially subject us to concentrations of credit risk consist principally of cash equivalents, investments and trade accounts receivable. Our investment portfolio consists of investment grade securities. Except for obligations of the United States government and securities issued by agencies of the United States government, we diversify our investments by limiting our holdings with any individual issuer. We are exposed to credit risks in the event of default by the issuers to the extent of the amount recorded on the condensed consolidated balance sheets. The credit risk in our trade accounts receivable is substantially mitigated by our evaluation of the customers’ financial conditions at the time we enter into business and reasonably short payment terms. | |||||||||||||||||
For the three months ended September 30, 2014, Comcast (68%) and the combined Office Depot and OfficeMax organization (14%) accounted for 10% or more of our total revenue. For the three months ended September 30, 2013, Comcast (55%) accounted for 10% or more of our total revenue. For the nine months ended September 30, 2014, Comcast (62%) and the combined Office Depot and OfficeMax organization (16%) accounted for 10% or more of our total revenue. For the nine months ended September 30, 2013, Comcast (48%) and OfficeMax (10%) accounted for 10% or more of our total revenue. There were no other customers that accounted for 10% or more of total revenue for the three and nine months ended September 30, 2014 and 2013. | |||||||||||||||||
The credit risk in our trade accounts receivable is substantially mitigated by our evaluation of the customers’ financial conditions at the time we enter into business and reasonably short payment terms. As of September 30, 2014, Comcast (78%) and the combined Office Depot and OfficeMax organization (12%) accounted for 10% or more of our total accounts receivable. As of December 31, 2013, Comcast (73%) accounted for 10% or more of our total accounts receivable. There were no other customers that accounted for 10% or more of our total accounts receivable as of September 30, 2014 and December 31, 2013. | |||||||||||||||||
Trade Accounts Receivable and Allowance for Doubtful Accounts | |||||||||||||||||
Trade accounts receivable are recorded at the invoiced amount. Trade accounts receivable also include unbilled amounts for programs for which the billing periods are different than the Company’s calendar reporting periods. Unbilled amounts as of September 30, 2014 and December 31, 2013 were $1.4 million and $853,000, respectively. We perform evaluations of our customers’ financial condition and generally do not require collateral. We make judgments as to our ability to collect outstanding receivables and provide allowances for a portion of receivables when collection becomes doubtful. Reserves are made based on a specific review of all significant outstanding invoices. For those invoices not specifically provided for, reserves are recorded at differing rates, based on the age of the receivable. In determining these rates, we analyze our historical collection experience and current payment trends. The determination of past-due accounts is based on contractual terms. At September 30, 2014 and December 31, 2013, we had an allowance for doubtful accounts of approximately $1,000 and zero, respectively. | |||||||||||||||||
Accumulated Other Comprehensive Loss | |||||||||||||||||
The components of accumulated other comprehensive loss relate entirely to accumulated foreign currency translation losses associated with our foreign subsidiaries and unrealized gains (losses) on investments. Accumulated currency translation losses were $1.9 million as of September 30, 2014 and December 31, 2013, and accumulated unrealized losses on investments were $24,000 and $16,000 as of September 30, 2014 and December 31, 2013, respectively. | |||||||||||||||||
The amounts noted in the condensed consolidated statements of comprehensive income (loss) are shown before taking into account the related income tax impact. The income tax effect allocated to each component of other comprehensive loss for each of the periods presented is not significant. | |||||||||||||||||
Stock-Based Compensation | |||||||||||||||||
We apply the provisions of ASC 718, Compensation-Stock Compensation, which requires the measurement and recognition of compensation expense for all stock-based payment awards, including grants of stock, restricted stock awards and options to purchase stock, made to employees and directors based on estimated fair values. | |||||||||||||||||
The fair value of our stock-based awards was estimated using the following weighted average assumptions for the three and nine months ended September 30, 2014 and 2013: | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Stock Option Plan: | |||||||||||||||||
Risk-free interest rate | 1.4 | % | 1.2 | % | 1.6 | % | 0.7 | % | |||||||||
Expected term | 3.8 years | 3.6 years | 5.2 years | 3.7 years | |||||||||||||
Volatility | 57.9 | % | 57.1 | % | 57.3 | % | 56.7 | % | |||||||||
Expected dividend | 0 | % | 0 | % | 0 | % | 0 | % | |||||||||
Weighted average fair value (per share) | $ | 1.07 | $ | 2.42 | $ | 1.19 | $ | 1.84 | |||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Employee Stock Purchase Plan: | |||||||||||||||||
Risk-free interest rate | 0.05 | % | 0.09 | % | 0.05 | % | 0.09 | % | |||||||||
Expected term | 0.5 years | 0.5 years | 0.5 years | 0.5 years | |||||||||||||
Volatility | 61.07 | % | 42.8 | % | 61.07 | % | 42.8 | % | |||||||||
Expected dividend | 0 | % | 0 | % | 0 | % | 0 | % | |||||||||
Weighted average fair value (per share) | $ | 0.72 | $ | 1.18 | $ | 0.72 | $ | 1.18 | |||||||||
We recorded the following stock-based compensation expense for the three and nine months ended September 30, 2014 and 2013 (in thousands): | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Stock-based compensation expense related to grants of: | |||||||||||||||||
Stock options | $ | 278 | $ | 246 | $ | 1,131 | $ | 1,375 | |||||||||
Employee Stock Purchase Plan (“ESPP”) | 20 | 24 | 90 | 72 | |||||||||||||
Restricted Stock Units (“RSU”) | 505 | 600 | 836 | 987 | |||||||||||||
$ | 803 | $ | 870 | $ | 2,057 | $ | 2,434 | ||||||||||
Stock-based compensation expense recognized in: | |||||||||||||||||
Cost of services | $ | 75 | $ | 84 | $ | 207 | $ | 241 | |||||||||
Cost of software and other | 4 | 3 | 10 | 8 | |||||||||||||
Research and development | 145 | 192 | 308 | 530 | |||||||||||||
Sales and marketing | 122 | 103 | 293 | 285 | |||||||||||||
General and administrative | 457 | 488 | 1,239 | 1,370 | |||||||||||||
$ | 803 | $ | 870 | $ | 2,057 | $ | 2,434 | ||||||||||
Earnings (Loss) Per Share | |||||||||||||||||
Basic earnings (loss) per share is computed using our net income (loss) and the weighted average number of common shares outstanding during the reporting period. Diluted earnings (loss) per share is computed using our net income (loss) and the weighted average number of common shares outstanding, including the effect of the potential issuance of common stock such as stock issuable pursuant to the exercise of stock options and vesting of RSUs using the treasury stock method when dilutive. We excluded outstanding weighted average stock options of 4.3 million and 3.9 million for the three and nine months ended September 30, 2014 and 999,000 and 1.2 million for the three and nine months ended September 30, 2013 from the calculation of diluted earnings per common share because the exercise prices of these stock options were greater than or equal to the average market value of the common stock. These stock options could be included in the calculation in the future if the average market value of the common stock increases and is greater than the exercise price of these stock options. Since we reported a net loss for the three and nine months ended September 30, 2014, 130,000 and 221,000 outstanding options and RSUs were also excluded from the computation of diluted loss per share since their effect would have been anti-dilutive. | |||||||||||||||||
The following table sets forth the computation of basic and diluted earnings (loss) per share (in thousands, except per share amounts): | |||||||||||||||||
Three Months | Nine Months | ||||||||||||||||
Ended | Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Net income (loss) | $ | (101 | ) | $ | 3,032 | $ | (1,238 | ) | $ | 7,511 | |||||||
Basic: | |||||||||||||||||
Weighted-average shares of common stock outstanding | 54,028 | 52,266 | 53,716 | 51,080 | |||||||||||||
Shares used in computing basic earnings (loss) per share | 54,028 | 52,266 | 53,716 | 51,080 | |||||||||||||
Basic earnings (loss) per share | $ | (0.00 | ) | $ | 0.06 | $ | (0.02 | ) | $ | 0.15 | |||||||
Diluted: | |||||||||||||||||
Weighted-average shares of common stock outstanding | 54,028 | 52,266 | 53,716 | 51,080 | |||||||||||||
Add: Common equivalent shares outstanding | - | 2,395 | - | 2,428 | |||||||||||||
Shares used in computing diluted earnings (loss) per share | 54,028 | 54,661 | 53,716 | 53,508 | |||||||||||||
Diluted earnings (loss) per share | $ | (0.00 | ) | $ | 0.06 | $ | (0.02 | ) | $ | 0.14 | |||||||
Warranties and Indemnifications | |||||||||||||||||
We generally provide a refund period on sales, during which refunds may be granted to consumers under certain circumstances, including our inability to resolve certain support issues. For our patnerships, the refund period varies by partner, but is generally between 5-14 days. For referral programs and direct transactions, the refund period is generally 5 days. For the majority of our end-user software products, we provide a 30-day money back guarantee. For all channels, we recognize revenue net of refunds and cancellations during the period. Refunds and cancellations have not been material to date. | |||||||||||||||||
We generally agree to indemnify our customers against legal claims that our end-user software products infringe certain third-party intellectual property rights. As of September 30, 2014, we were not required to make any payment resulting from infringement claims asserted against our customers and have not recorded any related accruals. | |||||||||||||||||
Recent Accounting Pronouncements | |||||||||||||||||
In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which supersedes nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing U.S. GAAP. The standard is effective for annual periods beginning after December 15, 2016, and interim periods therein, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). The Company is currently evaluating the impact of its pending adoption of ASU 2014-09 on its consolidated financial statements and has not yet determined the method by which it will adopt the standard in 2017. | |||||||||||||||||
Financial Statement Reclassification | |||||||||||||||||
Certain amounts in the prior year condensed consolidated financial statements, as well as in prior quarters in fiscal year 2014, have been reclassified to conform to the current period’s presentation. Prior to July 1, 2014, fees from Nexus software-as-a-service offering were included in software and other revenue. During the quarter ended September 30, 2014, the Company classified these fees as services revenue. In addition, the Company concluded that cost associated with the Nexus software-as-a-service solution was immaterial and therefore did not reclassify this cost from cost of software and other to cost of services. These reclassifications had no impact on previously reported total revenue, net income (loss), and cash flows. |
Warrants
Warrants | 9 Months Ended |
Sep. 30, 2014 | |
Warrants [Abstract] | ' |
Warrants | ' |
Note 2. Warrants | |
On October 25, 2010, we entered into a Support Services Agreement (the “Customer Agreement”) with Comcast Cable Communications Management, LLC (“Comcast”) under which Support.com provides technology support services to customers of Comcast in exchange for fees. In connection with the Customer Agreement, Support.com and Comcast entered into a Warrant Agreement, under which Support.com agreed to issue to Comcast warrants to purchase up to 975,000 shares of Support.com common stock in the future in the event that Comcast meets specified sales milestones under the Customer Agreement. Each warrant, if issued, will have an exercise price per share of $4.9498 and a term of three years from issuance. On September 27, 2011, the Company and Comcast amended the Warrant Agreement to extend the expiration date for the performance milestones while maintaining the previously agreed revenue thresholds. The warrants were valued as they were earned, and the resulting value was recorded as a charge against revenue in the period in which the performance milestone was met and the warrant was earned. During the third and fourth quarters of 2013, the performance milestones for the first and second tranche of warrants were met, respectively. Therefore, we issued to Comcast warrants to purchase a total of 490,000 shares of our common stock (warrants to purchase 166,000 shares were issued on September 30, 2013 and warrants to purchase 324,000 shares were issued on December 31, 2013) and recorded warrant-related charges of $777,000 against revenue for the year ended December 31, 2013. The value of the first and second tranche of warrants was estimated using the following weighted-average assumptions: risk-free interest rate of 0.74%, expected term of 3 years, volatility of 59.12% and expected dividend of 0%. The right to receive this final tranche expired on March 31, 2014 due to the termination of the Customer Agreement on such date. |
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2014 | |
Income Taxes [Abstract] | ' |
Income Taxes | ' |
Note 3. Income Taxes | |
We recorded an income tax provision of $128,000 and $385,000 for the three and nine months ended September 30, 2014, respectively, and $121,000 and $446,000 for the three and nine months ended September 30, 2013, respectively. The provision for income taxes is comprised of estimates of current taxes due in domestic and foreign jurisdictions. This provision reflects tax expense associated with state income tax, foreign taxes, and tax expense related to the recording of a deferred tax liability that results from the amortization for income tax purposes of acquisition-related goodwill. | |
When goodwill is amortizable for tax purposes, a deferred tax liability is recorded as the tax deduction is realized, which will not be reversed unless and until the goodwill is disposed of or impaired. We will continue to record an income tax expense related to the amortization of goodwill as part of the annual effective tax rate each quarter unless and until such disposition or impairment occurs. | |
As of September 30, 2014, our deferred tax assets are fully offset by a valuation allowance except in those jurisdictions where it is determined that a valuation allowance is not required. ASC 740, Income Taxes, provides for the recognition of deferred tax assets if realization of such assets is more likely than not. Based upon the weight of available evidence, which includes historical operating performance, reported cumulative net losses since inception and difficulty in accurately forecasting our future results, we provided a full valuation allowance against our net U.S. deferred tax assets and a partial valuation allowance against our foreign deferred tax assets. We reassess the need for our valuation allowance on a quarterly basis. If it is later determined that a portion or all of the valuation allowance is not required, it generally will be a benefit to the income tax provision in the period such determination is made. | |
The Company does not anticipate a material change in the total amount or composition of its unrecognized tax benefits within 12 months of September 30, 2014. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2014 | |
Commitments and Contingencies [Abstract] | ' |
Commitments and Contingencies | ' |
Note 4. Commitments and Contingencies | |
Legal contingencies | |
On February 7, 2012, a lawsuit seeking class-action certification was filed against the Company in the United States District Court for the Northern District of California, No. 12-CV-00609, alleging that the design of one the Company’s software products and the method of promotion to consumers constitute fraudulent inducement, breach of contract, breach of express and implied warranties, and unjust enrichment. On the same day the same plaintiffs’ law firm filed another action in the United States District Court for the Southern District of New York, No. 12-CV-0963, involving similar allegations against a subsidiary of the Company and one of the Company’s partners who distributes our software products, and that partner has requested indemnification under contract terms with the Company. The law firm representing the plaintiffs in both cases has filed unrelated class actions in the past against a number of major software providers with similar allegations about those providers’ products. On May 30, 2013, the Company received final court approval relating to the terms of a settlement of these actions. Under the terms of the settlement, the Company offered a one-time cash payment, covered by the Company’s insurance provider, to qualified class-action members; the deadline to submit a claim form concluded on February 28, 2013. In addition, the Company offered a limited free subscription to one of its software products; the deadline for redemptions concluded on August 31, 2013. Therefore, the Company reversed a previous accrual of $57,000 associated with these actions and recorded a benefit in the same amount within interest income and other, net in the condensed consolidated statements of operations for the year ended December 31, 2013. The Company denies any wrongdoing or liability and entered into the settlement to minimize the costs of defense. | |
On April 3, 2014, LT Tech LLC filed a complaint against the Company in U.S. District Court for the Eastern District of Texas alleging infringement of United States Patent No. 6,177,932. LT Tech LLC is believed to be a non-practicing entity (“NPE”) and has filed several patent infringement lawsuits against other companies in U.S. District Court for the Eastern District of Texas and elsewhere. On June 30, 2014, the Company and LT Tech LLC executed a Settlement and License Agreement according to which the Company paid LT Tech LLC a total amount of $150,000 which was recorded as a charge against earnings in cost of services in the second quarter of 2014. On July 8, 2014, the Company obtained a dismissal for the complaint filed by LT Tech LLC. The Company denies any wrongdoing or liability and entered into the settlement to minimize the costs of defense. | |
We are also subject to other routine legal proceedings, as well as demands, claims and threatened litigation, that arise in the normal course of our business, potentially including assertions that we may be infringing patents or other intellectual property rights of others. We currently do not believe that the ultimate amount of liability, if any, for such routine legal proceedings (alone or combined) will materially affect our financial position, results of operations or cash flows. The ultimate outcome of any litigation is uncertain, however, and unfavorable outcomes could have a material negative impact on our financial condition and operating results. Regardless of outcome, litigation can have an adverse impact on us because of defense costs, negative publicity, diversion of management resources and other factors. | |
Guarantees | |
We have identified guarantees in accordance with ASC 450, Contingencies. This guidance stipulates that an entity must recognize an initial liability for the fair value of the obligation it assumes under the guarantee at the time it issues such a guarantee, and must disclose that information in its interim and annual financial statements. We have entered into various service level agreements with our partners, in which we may guarantee the maintenance of certain service level thresholds. Under some circumstances, if we do not meet these thresholds, we may be liable for certain financial costs. We evaluate costs for such guarantees under the provisions of ASC 450. We consider such factors as the degree of probability that we would be required to satisfy the liability associated with the guarantee and the ability to make a reasonable estimate of the resulting cost. We incurred zero and immaterial costs as a result of such obligations during the three and nine months ended September 30, 2013, respectively. No costs were incurred during the three and nine months ended September 30, 2014. We have not accrued any liabilities related to such obligations in the condensed consolidated financial statements as of September 30, 2014 and December 31, 2013. |
Intangible_Assets
Intangible Assets | 9 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||||
Intangible Assets [Abstract] | ' | ||||||||||||||||||||||||||||
Intangible Assets | ' | ||||||||||||||||||||||||||||
Note 5. Intangible Assets | |||||||||||||||||||||||||||||
Amortization expense and other related to intangible assets for the three and nine months ended September 30, 2014 was $273,000 and $818,000, respectively. Amortization expense and other related to intangible assets for the three and nine months ended September 30, 2013 was $335,000 and $1.0 million, respectively. | |||||||||||||||||||||||||||||
The following table summarizes the components of intangible assets (in thousands): | |||||||||||||||||||||||||||||
Non-compete | Partner Relationships | Customer Base | Technology Rights | Tradenames | Indefinite Life Intangibles | Total | |||||||||||||||||||||||
As of September 30, 2014 | |||||||||||||||||||||||||||||
Gross carrying value | $ | 593 | $ | 145 | $ | 641 | $ | 5,330 | $ | 760 | $ | 250 | $ | 7,719 | |||||||||||||||
Accumulated amortization | (514 | ) | (145 | ) | (430 | ) | (3,359 | ) | (635 | ) | — | (5,083 | ) | ||||||||||||||||
Net carrying value | $ | 79 | $ | — | $ | 211 | $ | 1,971 | $ | 125 | $ | 250 | $ | 2,636 | |||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||||||
Gross carrying value | $ | 593 | $ | 145 | $ | 641 | $ | 5,330 | $ | 760 | $ | 250 | $ | 7,719 | |||||||||||||||
Accumulated amortization | (477 | ) | (145 | ) | (361 | ) | (2,689 | ) | (593 | ) | — | (4,265 | ) | ||||||||||||||||
Net carrying value | $ | 116 | $ | — | $ | 280 | $ | 2,641 | $ | 167 | $ | 250 | $ | 3,454 | |||||||||||||||
In December 2006, we acquired the use of a toll-free telephone number for cash consideration of $250,000. This asset has an indefinite useful life. | |||||||||||||||||||||||||||||
The estimated future amortization expense of intangible assets, with the exception of the indefinite-life intangible assets as of September 30, 2014 is as follows (in thousands): | |||||||||||||||||||||||||||||
Fiscal Year | Amount | ||||||||||||||||||||||||||||
2014(October-December) | 273 | ||||||||||||||||||||||||||||
2015 | 1,069 | ||||||||||||||||||||||||||||
2016 | 1,028 | ||||||||||||||||||||||||||||
2017 | 16 | ||||||||||||||||||||||||||||
Total | $ | 2,386 | |||||||||||||||||||||||||||
Weighted average remaining useful life | 2.2 years |
Other_Accrued_Liabilities
Other Accrued Liabilities | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Other Accrued Liabilities [Abstract] | ' | ||||||||
Other Accrued Liabilities | ' | ||||||||
Note 6. Other Accrued Liabilities | |||||||||
Other accrued liabilities consist of the following (in thousands): | |||||||||
As of September 30, | As of December 31, | ||||||||
2014 | 2013 | ||||||||
Accrued expenses | $ | 2,849 | $ | 2,135 | |||||
Customer deposits | 354 | 481 | |||||||
Restructuring expenses | - | 431 | |||||||
Other accrued liabilities | 170 | 312 | |||||||
Total other accrued liabilities | $ | 3,373 | $ | 3,359 |
Stockholders_Equity
Stockholders' Equity | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Stockholders' Equity [Abstract] | ' | ||||||||||||||||
Stockholders' Equity | ' | ||||||||||||||||
Note 7. Stockholder’s Equity | |||||||||||||||||
Stock Options | |||||||||||||||||
The following table represents the stock option activity for the nine months ended September 30, 2014: | |||||||||||||||||
Number of Shares | Weighted Average Exercise Price per Share | Weighted Average Remaining Contractual Term | Aggregate Intrinsic Value | ||||||||||||||
(in thousands) | |||||||||||||||||
Outstanding options at December 31, 2013 | 5,382,391 | $ | 3.55 | 3.66 | $ | 4,039 | |||||||||||
Granted | 1,392,750 | $ | 2.24 | ||||||||||||||
Exercised | (376,804 | ) | $ | 2.32 | |||||||||||||
Forfeited | (952,406 | ) | $ | 4.06 | |||||||||||||
Outstanding options at September 30, 2014 | 5,445,931 | $ | 3.21 | 4.22 | $ | — | |||||||||||
Options vested and expected to vest | 5,248,265 | $ | 3.23 | 4.03 | $ | — | |||||||||||
Exercisable at September 30, 2014 | 3,484,759 | $ | 3.37 | 1.66 | $ | — | |||||||||||
The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value that would have been received by the option holders had they all exercised their options on September 30, 2014. This amount changes based on the fair market value of our stock. The aggregate intrinsic value of options exercised under our stock option plans was $18,000 and $ 71,000 during the three and nine months ended September 30, 2014, respectively, and $3.5 million and $8.1 million during the three and nine months ended September 30, 2013, respectively. Total fair value of options vested was $209,000 and $542,000 during the three and nine months ended September 30, 2014, respectively, and $398,000 and $1.6 million during the three and nine months ended September 30, 2013, respectively. | |||||||||||||||||
At September 30, 2014, there was $2.1 million of unrecognized compensation cost related to existing stock options outstanding which is expected to be recognized over a weighted average period of 2.19 years. | |||||||||||||||||
On February 11, 2014, Joshua Pickus, the Company’s former President and Chief Executive Officer submitted his written resignation effective April 1, 2014. Also effective April 1, 2014, Mr. Pickus resigned as a member of the Company’s Board of Directors. In connection with Mr. Pickus’ resignation the Compensation Committee of the Board of Directors, considering all relevant factors and the best interest of the Company's stockholders, approved the extension of the post-termination exercise period for the vested portions of each of Mr. Pickus’ outstanding stock option grants from 90 days following termination to December 31, 2014, in order to permit the orderly exercise and disposition of shares under his vested grants prior to their expiration. No other terms of the stock options were modified. As part of the modification of the stock options, the Company recorded an incremental stock-based compensation expense of approximately $193,000 in the three months ended March 31, 2014. | |||||||||||||||||
During the second quarter of 2014, the Company’s Compensation Committee approved the grant of (i) 750,000 market-based stock options to the Company’s new President and Chief Executive Officer, and (ii) 112,500 market-based stock options to certain key executives. The market-based stock options shall only be exercisable, to the extent vested, upon the Company’s achievement of specified stock price thresholds. In accordance with ASC 718, the Company estimated the grant-date fair values of its market-based stock options as $1.27 - $1.33 per share with derived service periods of 1.87 - 4.52 years using a Monte-Carlo simulation model. | |||||||||||||||||
Employee Stock Purchase Plan | |||||||||||||||||
In the second quarter of 2011, to advance the interests of the Company and its stockholders by providing an incentive to attract, retain and reward eligible employees and by motivating such persons to contribute to the growth and profitability of the Company, the Company’s Board of Directors and stockholders approved an ESPP and reserved 1,000,000 shares of our common stock for issuance effective as of May 15, 2011. The ESPP continues in effect for ten (10) years from its effective date unless terminated earlier by the Company. The ESPP consists of six-month offering periods during which employees may enroll in the plan. The purchase price on each purchase date shall not be less than eighty‑five percent (85%) of the lesser of (a) the fair market value of a share of stock on the offering date of the offering period or (b) the fair market value of a share of stock on the purchase date. During the nine months ended September 30, 2014, 61,575 shares were granted under ESPP. | |||||||||||||||||
Restricted Stock Units | |||||||||||||||||
The following table represents RSU activity for the nine months ended September 30, 2014: | |||||||||||||||||
Number of Shares | Weighted Average Grant-Date Fair Value per Share | Weighted Average Remaining Contractual Term | |||||||||||||||
(in years) | |||||||||||||||||
Aggregate Intrinsic Value | |||||||||||||||||
(in thousands) | |||||||||||||||||
Outstanding RSUs at December 31, 2013 | 1,658,846 | $ | 5.09 | 1.57 | $ | 6,287 | |||||||||||
Awarded | 776,341 | 2.37 | |||||||||||||||
Released | (371,559 | ) | 4.74 | ||||||||||||||
Forfeited | (641,905 | ) | 4.85 | ||||||||||||||
Outstanding RSUs at September 30, 2014 | 1,421,723 | $ | 3.82 | 1.58 | $ | 3,071 | |||||||||||
On May 16, 2014, pursuant to the employment offer letter as approved by the Company's Compensation Committee, and in addition to the market-based stock options, the Company issued 218,752 RSUs to the Company’s new President and Chief Executive Officer. These RSUs vest over four years from the grant date in equal annual vesting tranches with 25% becoming vested on each of the first four anniversaries of the grant date subject to continuous service. | |||||||||||||||||
On June 4, 2014, the Board of Directors of the Company approved, based on recommendations of the Compensation Committee, a grant of 108,225 RSUs to non-employee directors based on a fair market value of $2.31 per share which represents the closing price of the Company’s common stock on the Nasdaq Global Select Market (“Nasdaq”) on June 4, 2014. These RSUs vest upon the first anniversary of the grant date. | |||||||||||||||||
At September 30, 2014, there was $3.9 million of unrecognized compensation cost related to RSUs which is expected to be recognized over a weighted average period of 2.64 years. | |||||||||||||||||
Stock Repurchase Program | |||||||||||||||||
On April 27, 2005, our Board of Directors authorized the repurchase of up to 2,000,000 outstanding shares of our common stock. As of September 30, 2014 the maximum number of shares remaining that can be repurchased under this program was 1,807,402. The Company does not intend to repurchase shares without a further approval from its Board of Directors. | |||||||||||||||||
Repurchase of Shares | |||||||||||||||||
On February 19, 2013, the Company entered into an agreement with Joshua Pickus, the Company’s former President and Chief Executive Officer, pursuant to which Mr. Pickus sold directly to the Company on that day an aggregate 1,000,000 shares of its common stock acquired by him in a same-day exercise of fully vested options which were due to expire at the end of their seven-year term on April 6, 2013. Under the agreement, the purchase price per share was established as an amount equal to the lesser of (a) the closing price of the Company’s common stock in regular trading hours on the day of the sale as reported by Nasdaq less 5%, or (b) the thirty-day simple moving average price of the Company’s common stock on the day of the sale. This formula produced a purchase price per share of $4.114, less the aggregate strike price due on exercise of the options underlying the repurchased shares of $2.32 per share, which then resulted in a net cash outlay by the Company to acquire the shares of approximately $1.8 million (or $1.794 per share). The agreement was approved by the independent members of the Company’s Board of Directors. The share repurchase amounted to $4.1 million and is classified under treasury stock within stockholders’ equity of the condensed consolidated balance sheets. |
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Significant Accounting Policies [Abstract] | ' | ||||||||||||||||
Basis of Presentation | ' | ||||||||||||||||
Basis of Presentation | |||||||||||||||||
The accompanying unaudited condensed consolidated financial statements include the accounts of Support.com, Inc. (the “Company” or “Support.com”, “We” or “Our”) and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated. The condensed consolidated balance sheet as of September 30, 2014 and the condensed consolidated statements of operations and comprehensive income (loss) for the three and nine months ended September 30, 2014 and 2013 and the condensed consolidated statements of cash flows for the nine months ended September 30, 2014 and 2013 are unaudited. In the opinion of management, these unaudited interim condensed consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments) that are necessary for a fair presentation of the results for, and as of, the periods shown. The results of operations for such periods are not necessarily indicative of the results expected for the full fiscal year or for any future period. The condensed consolidated balance sheet information as of December 31, 2013 is derived from audited consolidated financial statements as of that date. These financial statements have been prepared based upon Securities and Exchange Commission (“SEC”) rules that permit reduced disclosure for interim periods. For a more complete discussion of significant accounting policies and certain other information, these unaudited interim condensed consolidated financial statements should be read with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013, filed with the Securities and Exchange Commission on March 7, 2014. | |||||||||||||||||
Use of Estimates | ' | ||||||||||||||||
Use of Estimates | |||||||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. The accounting estimates that require management’s most significant, difficult and subjective judgments include accounting for revenue recognition, the valuation and recognition of investments, the assessment of recoverability of intangible assets and their estimated useful lives, the valuations and recognition of stock based compensation and the recognition and measurement of current and deferred income tax assets and liabilities. Actual results could differ materially from these estimates. | |||||||||||||||||
Revenue Recognition | ' | ||||||||||||||||
Revenue Recognition | |||||||||||||||||
For all transactions, we recognize revenue only when all of the following criteria are met: | |||||||||||||||||
• Persuasive evidence of an arrangement exists; | |||||||||||||||||
• Delivery has occurred; | |||||||||||||||||
• Collection is considered probable; and | |||||||||||||||||
• The fees are fixed or determinable. | |||||||||||||||||
We consider all arrangements with payment terms longer than 90 days not to be fixed or determinable. If the fee is considered not to be fixed or determinable, revenue is recognized as payment becomes due from the customer provided all other revenue recognition criteria have been met. | |||||||||||||||||
Services Revenue | |||||||||||||||||
Services revenue is comprised primarily of fees for technology support services. Our service programs are designed for both the consumer and small and medium business (“SMB”) markets, and include computer and mobile device set-up, security and support, virus and malware removal and wireless network set-up, and automation system onboarding and support. | |||||||||||||||||
We offer technology services to consumers and SMBs, primarily through our partners (which include communications providers, retailers, technology companies and others) and to a lesser degree directly through our website at www.support.com. We transact with customers via reseller programs, referral programs and direct transactions. In reseller programs, the partner generally executes the financial transactions with the customer and pays a fee to us which we recognize as revenue when the service is delivered. In referral programs, we transact with the customer directly and pay a referral fee to the referring party. Referral fees are generally expensed in the period in which revenues are recognized. In such referral programs, since we are the primary obligor and bear substantially all risks associated with the transaction, we record the gross amount of revenue. In direct transactions, we sell directly to the customer at the retail price. | |||||||||||||||||
The technology services described above include four types of offerings: | |||||||||||||||||
· | Hourly-Based Services - In connection with the provisions of certain services programs, fees are calculated based on contracted hourly rates with partners. For these programs, we recognize revenue as services are performed, based on billable hours of work delivered by our technology specialists. These services programs also include performance standards, which may result in incentives or penalties, which are recognized as earned or incurred. | ||||||||||||||||
· | Subscriptions - Customers purchase subscriptions or “service plans” under which certain services are provided over a fixed subscription period. Revenues for subscriptions are recognized ratably over the respective subscription periods. | ||||||||||||||||
· | Incident-Based Services - Customers purchase a discrete, one-time service. Revenue recognition occurs at the time of service delivery. Fees paid for services sold but not yet delivered are recorded as deferred revenue and recognized at the time of service delivery. | ||||||||||||||||
· | Service Cards / Gift Cards - Customers purchase a service card or a gift card, which entitles the cardholder to redeem a certain service at a time of their choosing. For these sales, revenue is deferred until the card has been redeemed and the service has been provided. | ||||||||||||||||
In certain cases, we are paid for services that are sold but not yet delivered. We initially record such balances as deferred revenue, and recognize revenue when the service has been provided or, on the non-subscription portion of these balances, when the likelihood of the service being redeemed by the customer is remote (“services breakage”). Based on our historical redemption patterns for these relationships, we believe that the likelihood of a service being delivered more than 90 days after sale is remote. We therefore recognize non-subscription deferred revenue balances older than 90 days as services revenue. For the three months ended September 30, 2014 and 2013, services breakage revenue accounted for approximately 1% of our total revenue. For the nine months ended September 30, 2014 and 2013, services breakage revenue was approximately 1% of our total revenue. | |||||||||||||||||
Partners are generally invoiced monthly. Fees from customers via referral programs and direct transactions are generally paid with a credit card at the time of sale. Revenue is recognized net of any applicable sales tax. | |||||||||||||||||
We generally provide a refund period on services, during which refunds may be granted to customers under certain circumstances, including inability to resolve certain support issues. For our partnerships, the refund period varies by partner, but is generally between 5 and 14 days. For referral programs and direct transactions, the refund period is generally 5 days. For all channels, we recognize revenue net of refunds and cancellations during the period. Refunds and cancellations have not been material. | |||||||||||||||||
Services revenue also includes fees from licensing of our Nexus® cloud-based software. In such arrangements, customers receive a right to use Nexus in their own technology support organizations. We license Nexus using a software-as-a-service (“SaaS”) model under which customers cannot take possession of the technology and pay us on a per-user basis during the term of the arrangement. In addition, services revenue includes fees from implementation services of Nexus. Currently, revenues from implementation services are recognized ratably over the customer life which is estimated as the term of the arrangement once the Nexus services are made available to customers. We generally charge for these services on a time and material basis. | |||||||||||||||||
Software and Other Revenue | |||||||||||||||||
Software and other revenue is comprised primarily of fees for end-user software products provided through direct customer downloads and through the sale of these end-user software products via partners. Our software is sold to customers as a perpetual license or as a fixed period subscription. We act as the primary obligor and generally control fulfillment, pricing, product requirements, and collection risk and therefore we record the gross amount of revenue. We provide a 30-day money back guarantee for the majority of our end-user software products. | |||||||||||||||||
For certain end-user software products, we sell perpetual licenses. We provide a limited amount of free technical support to customers. Since the cost of providing this free technical support is insignificant and free product enhancements are minimal and infrequent, we do not defer the recognition of revenue associated with sales of these products. | |||||||||||||||||
For certain of our end-user software products (principally SUPERAntiSpyware), we sell licenses for a fixed subscription period. We provide regular, significant updates over the subscription period and therefore recognize revenue for these products ratably over the subscription period. | |||||||||||||||||
Other revenue consists primarily of revenue generated through partners advertising to our customer base in various forms, including toolbar advertising, email marketing, and free trial offers. We recognize other revenue in the period in which our partners notify us that the revenue has been earned. | |||||||||||||||||
Cash, Cash Equivalents and Investments | ' | ||||||||||||||||
Cash, Cash Equivalents and Investments | |||||||||||||||||
All liquid instruments with an original maturity at the date of purchase of 90 days or less are classified as cash equivalents. Cash equivalents and short-term investments consist primarily of money market funds, certificates of deposit, commercial paper, corporate and municipal bonds. Our interest income on cash, cash equivalents and investments is recorded monthly and reported as interest income and other in our condensed consolidated statements of operations. | |||||||||||||||||
Our cash equivalents and short-term investments are classified as available-for-sale, and are reported at fair value with unrealized gains/losses included in accumulated other comprehensive loss within stockholders’ equity on the condensed consolidated balance sheets. We view our available-for-sale portfolio as available for use in our current operations, and therefore we present our marketable securities as short-term assets. | |||||||||||||||||
We monitor our investments for impairment on a quarterly basis and determine whether a decline in fair value is other-than-temporary by considering factors such as current economic and market conditions, the credit rating of the security’s issuer, the length of time an investment’s fair value has been below our carrying value, the Company’s intent to sell the security and the Company’s belief that it will not be required to sell the security before the recovery of its amortized cost. If an investment’s decline in fair value is deemed to be other-than-temporary, we reduce its carrying value to its estimated fair value, as determined based on quoted market prices or liquidation values. Declines in value judged to be other-than temporary, if any, are recorded in operations as incurred. At September 30, 2014, we evaluated our unrealized gains/losses on available-for-sale securities and determined them to be temporary. We currently do not intend to sell securities with unrealized losses and we concluded that we will not be required to sell these securities before the recovery of their amortized cost basis. At September 30, 2014 and December 31, 2013, the fair value of cash, cash equivalents and investments was $75.3 million and $72.4 million, respectively. | |||||||||||||||||
The following is a summary of cash, cash equivalents and investments at September 30, 2014 and December 31, 2013 (in thousands): | |||||||||||||||||
As of September 30, 2014 | Gross | Gross | |||||||||||||||
Amortized | Unrealized | Unrealized | |||||||||||||||
Cost | Gains | Losses | Fair Value | ||||||||||||||
Cash | $ | 17,145 | $ | — | $ | — | $ | 17,145 | |||||||||
Money market funds | 14,667 | — | — | 14,667 | |||||||||||||
Certificates of deposits | 1,200 | — | — | 1,200 | |||||||||||||
Commercial paper | 1,200 | — | — | 1,200 | |||||||||||||
Corporate notes and bonds | 39,122 | 1 | (26 | ) | 39,097 | ||||||||||||
U.S. government agency securities | 2,000 | 1 | — | 2,001 | |||||||||||||
$ | 75,334 | $ | 2 | $ | (26 | ) | $ | 75,310 | |||||||||
Classified as: | |||||||||||||||||
Cash and cash equivalents | $ | 31,812 | $ | — | $ | — | $ | 31,812 | |||||||||
Short-term investments | 43,522 | 2 | (26 | ) | 43,498 | ||||||||||||
$ | 75,334 | $ | 2 | $ | (26 | ) | $ | 75,310 | |||||||||
Gross | Gross | ||||||||||||||||
Amortized | Unrealized | Unrealized | |||||||||||||||
Cost | Gains | Losses | Fair Value | ||||||||||||||
As of December 31, 2013 | |||||||||||||||||
Cash | $ | 15,660 | $ | — | $ | — | $ | 15,660 | |||||||||
Money market funds | 11,771 | — | — | 11,771 | |||||||||||||
Certificates of deposits | 4,258 | — | (2 | ) | 4,256 | ||||||||||||
Commercial paper | 7,298 | — | — | 7,298 | |||||||||||||
Corporate notes and bonds | 33,386 | 8 | (22 | ) | 33,372 | ||||||||||||
$ | 72,373 | $ | 8 | $ | (24 | ) | $ | 72,357 | |||||||||
Classified as: | |||||||||||||||||
Cash and cash equivalents | $ | 28,390 | $ | — | $ | — | $ | 28,390 | |||||||||
Short-term investments | 43,983 | 8 | (24 | ) | 43,967 | ||||||||||||
$ | 72,373 | $ | 8 | $ | (24 | ) | $ | 72,357 | |||||||||
The following table summarizes the estimated fair value of our available-for-sale securities classified by the stated maturity date of the security (in thousands): | |||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Due within one year | $ | 39,618 | $ | 34,916 | |||||||||||||
Due within two years | 3,880 | 9,051 | |||||||||||||||
$ | 43,498 | $ | 43,967 | ||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||
Fair Value Measurements | |||||||||||||||||
Accounting Standard Codification (“ASC”) 820, Fair Value Measurements and Disclosures, defines fair value, establishes a framework for measuring fair value under generally accepted accounting principles and enhances disclosures about fair value measurements. Fair value is defined under ASC 820 as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value ASC 820 must maximize the use of observable inputs and minimize the use of unobservable inputs. The standard describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value, which are the following: | |||||||||||||||||
• | Level 1 - Quoted prices in active markets for identical assets or liabilities. | ||||||||||||||||
• | Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | ||||||||||||||||
• | Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. | ||||||||||||||||
In accordance with ASC 820, the following table represents our fair value hierarchy for our financial assets (cash equivalents and investments) measured at fair value on a recurring basis as of September 30, 2014 and December 31, 2013 (in thousands): | |||||||||||||||||
As of September 30, 2014 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Money market funds | $ | 14,667 | $ | — | $ | — | $ | 14,667 | |||||||||
Certificates of deposits | — | 1,200 | — | 1,200 | |||||||||||||
Commercial paper | — | 1,200 | — | 1,200 | |||||||||||||
Corporate notes and bonds | — | 39,097 | — | 39,097 | |||||||||||||
U.S. government agency securities | — | 2,001 | — | 2,001 | |||||||||||||
Total | $ | 14,667 | $ | 43,498 | $ | — | $ | 58,165 | |||||||||
As of December 31, 2013 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Money market funds | $ | 11,771 | $ | — | $ | — | $ | 11,771 | |||||||||
Certificates of deposits | 4,256 | — | — | 4,256 | |||||||||||||
Commercial paper | — | 7,298 | — | 7,298 | |||||||||||||
Corporate notes and bonds | — | 33,372 | — | 33,372 | |||||||||||||
Total | $ | 16,027 | $ | 40,670 | $ | — | $ | 56,697 | |||||||||
For marketable securities, measured at fair value using Level 2 inputs, we review trading activity and pricing for these investments as of the measurement date. When sufficient quoted pricing for identical securities is not available, we use market pricing and other observable market inputs for similar securities obtained from various third party data providers. These inputs either represent quoted prices for similar assets in active markets or have been derived from observable market data. We transferred our investments in certificates of deposits from Level 1 to Level 2 during the three months ended March 31, 2014 as a result of a decrease in availability and reliability of the observable inputs utilized in the respective instruments’ fair value measurement. Our policy is that the end of our quarterly reporting period determines when transfers of financial instruments between levels are recognized. | |||||||||||||||||
Concentrations of Credit Risk | ' | ||||||||||||||||
Concentrations of Credit Risk | |||||||||||||||||
Financial instruments that potentially subject us to concentrations of credit risk consist principally of cash equivalents, investments and trade accounts receivable. Our investment portfolio consists of investment grade securities. Except for obligations of the United States government and securities issued by agencies of the United States government, we diversify our investments by limiting our holdings with any individual issuer. We are exposed to credit risks in the event of default by the issuers to the extent of the amount recorded on the condensed consolidated balance sheets. The credit risk in our trade accounts receivable is substantially mitigated by our evaluation of the customers’ financial conditions at the time we enter into business and reasonably short payment terms. | |||||||||||||||||
For the three months ended September 30, 2014, Comcast (68%) and the combined Office Depot and OfficeMax organization (14%) accounted for 10% or more of our total revenue. For the three months ended September 30, 2013, Comcast (55%) accounted for 10% or more of our total revenue. For the nine months ended September 30, 2014, Comcast (62%) and the combined Office Depot and OfficeMax organization (16%) accounted for 10% or more of our total revenue. For the nine months ended September 30, 2013, Comcast (48%) and OfficeMax (10%) accounted for 10% or more of our total revenue. There were no other customers that accounted for 10% or more of total revenue for the three and nine months ended September 30, 2014 and 2013. | |||||||||||||||||
The credit risk in our trade accounts receivable is substantially mitigated by our evaluation of the customers’ financial conditions at the time we enter into business and reasonably short payment terms. As of September 30, 2014, Comcast (78%) and the combined Office Depot and OfficeMax organization (12%) accounted for 10% or more of our total accounts receivable. As of December 31, 2013, Comcast (73%) accounted for 10% or more of our total accounts receivable. There were no other customers that accounted for 10% or more of our total accounts receivable as of September 30, 2014 and December 31, 2013. | |||||||||||||||||
Trade Accounts Receivable and Allowance for Doubtful Accounts | ' | ||||||||||||||||
Trade Accounts Receivable and Allowance for Doubtful Accounts | |||||||||||||||||
Trade accounts receivable are recorded at the invoiced amount. Trade accounts receivable also include unbilled amounts for programs for which the billing periods are different than the Company’s calendar reporting periods. Unbilled amounts as of September 30, 2014 and December 31, 2013 were $1.4 million and $853,000, respectively. We perform evaluations of our customers’ financial condition and generally do not require collateral. We make judgments as to our ability to collect outstanding receivables and provide allowances for a portion of receivables when collection becomes doubtful. Reserves are made based on a specific review of all significant outstanding invoices. For those invoices not specifically provided for, reserves are recorded at differing rates, based on the age of the receivable. In determining these rates, we analyze our historical collection experience and current payment trends. The determination of past-due accounts is based on contractual terms. At September 30, 2014 and December 31, 2013, we had an allowance for doubtful accounts of approximately $1,000 and zero, respectively. | |||||||||||||||||
Accumulated Other Comprehensive Loss | ' | ||||||||||||||||
Accumulated Other Comprehensive Loss | |||||||||||||||||
The components of accumulated other comprehensive loss relate entirely to accumulated foreign currency translation losses associated with our foreign subsidiaries and unrealized gains (losses) on investments. Accumulated currency translation losses were $1.9 million as of September 30, 2014 and December 31, 2013, and accumulated unrealized losses on investments were $24,000 and $16,000 as of September 30, 2014 and December 31, 2013, respectively. | |||||||||||||||||
The amounts noted in the condensed consolidated statements of comprehensive income (loss) are shown before taking into account the related income tax impact. The income tax effect allocated to each component of other comprehensive loss for each of the periods presented is not significant. | |||||||||||||||||
Stock-Based Compensation | ' | ||||||||||||||||
Stock-Based Compensation | |||||||||||||||||
We apply the provisions of ASC 718, Compensation-Stock Compensation, which requires the measurement and recognition of compensation expense for all stock-based payment awards, including grants of stock, restricted stock awards and options to purchase stock, made to employees and directors based on estimated fair values. | |||||||||||||||||
The fair value of our stock-based awards was estimated using the following weighted average assumptions for the three and nine months ended September 30, 2014 and 2013: | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Stock Option Plan: | |||||||||||||||||
Risk-free interest rate | 1.4 | % | 1.2 | % | 1.6 | % | 0.7 | % | |||||||||
Expected term | 3.8 years | 3.6 years | 5.2 years | 3.7 years | |||||||||||||
Volatility | 57.9 | % | 57.1 | % | 57.3 | % | 56.7 | % | |||||||||
Expected dividend | 0 | % | 0 | % | 0 | % | 0 | % | |||||||||
Weighted average fair value (per share) | $ | 1.07 | $ | 2.42 | $ | 1.19 | $ | 1.84 | |||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Employee Stock Purchase Plan: | |||||||||||||||||
Risk-free interest rate | 0.05 | % | 0.09 | % | 0.05 | % | 0.09 | % | |||||||||
Expected term | 0.5 years | 0.5 years | 0.5 years | 0.5 years | |||||||||||||
Volatility | 61.07 | % | 42.8 | % | 61.07 | % | 42.8 | % | |||||||||
Expected dividend | 0 | % | 0 | % | 0 | % | 0 | % | |||||||||
Weighted average fair value (per share) | $ | 0.72 | $ | 1.18 | $ | 0.72 | $ | 1.18 | |||||||||
We recorded the following stock-based compensation expense for the three and nine months ended September 30, 2014 and 2013 (in thousands): | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Stock-based compensation expense related to grants of: | |||||||||||||||||
Stock options | $ | 278 | $ | 246 | $ | 1,131 | $ | 1,375 | |||||||||
Employee Stock Purchase Plan (“ESPP”) | 20 | 24 | 90 | 72 | |||||||||||||
Restricted Stock Units (“RSU”) | 505 | 600 | 836 | 987 | |||||||||||||
$ | 803 | $ | 870 | $ | 2,057 | $ | 2,434 | ||||||||||
Stock-based compensation expense recognized in: | |||||||||||||||||
Cost of services | $ | 75 | $ | 84 | $ | 207 | $ | 241 | |||||||||
Cost of software and other | 4 | 3 | 10 | 8 | |||||||||||||
Research and development | 145 | 192 | 308 | 530 | |||||||||||||
Sales and marketing | 122 | 103 | 293 | 285 | |||||||||||||
General and administrative | 457 | 488 | 1,239 | 1,370 | |||||||||||||
$ | 803 | $ | 870 | $ | 2,057 | $ | 2,434 | ||||||||||
Earnings (Loss) Per Share | ' | ||||||||||||||||
Earnings (Loss) Per Share | |||||||||||||||||
Basic earnings (loss) per share is computed using our net income (loss) and the weighted average number of common shares outstanding during the reporting period. Diluted earnings (loss) per share is computed using our net income (loss) and the weighted average number of common shares outstanding, including the effect of the potential issuance of common stock such as stock issuable pursuant to the exercise of stock options and vesting of RSUs using the treasury stock method when dilutive. We excluded outstanding weighted average stock options of 4.3 million and 3.9 million for the three and nine months ended September 30, 2014 and 999,000 and 1.2 million for the three and nine months ended September 30, 2013 from the calculation of diluted earnings per common share because the exercise prices of these stock options were greater than or equal to the average market value of the common stock. These stock options could be included in the calculation in the future if the average market value of the common stock increases and is greater than the exercise price of these stock options. Since we reported a net loss for the three and nine months ended September 30, 2014, 130,000 and 221,000 outstanding options and RSUs were also excluded from the computation of diluted loss per share since their effect would have been anti-dilutive. | |||||||||||||||||
The following table sets forth the computation of basic and diluted earnings (loss) per share (in thousands, except per share amounts): | |||||||||||||||||
Three Months | Nine Months | ||||||||||||||||
Ended | Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Net income (loss) | $ | (101 | ) | $ | 3,032 | $ | (1,238 | ) | $ | 7,511 | |||||||
Basic: | |||||||||||||||||
Weighted-average shares of common stock outstanding | 54,028 | 52,266 | 53,716 | 51,080 | |||||||||||||
Shares used in computing basic earnings (loss) per share | 54,028 | 52,266 | 53,716 | 51,080 | |||||||||||||
Basic earnings (loss) per share | $ | (0.00 | ) | $ | 0.06 | $ | (0.02 | ) | $ | 0.15 | |||||||
Diluted: | |||||||||||||||||
Weighted-average shares of common stock outstanding | 54,028 | 52,266 | 53,716 | 51,080 | |||||||||||||
Add: Common equivalent shares outstanding | - | 2,395 | - | 2,428 | |||||||||||||
Shares used in computing diluted earnings (loss) per share | 54,028 | 54,661 | 53,716 | 53,508 | |||||||||||||
Diluted earnings (loss) per share | $ | (0.00 | ) | $ | 0.06 | $ | (0.02 | ) | $ | 0.14 | |||||||
Warranties and Indemnifications | ' | ||||||||||||||||
Warranties and Indemnifications | |||||||||||||||||
We generally provide a refund period on sales, during which refunds may be granted to consumers under certain circumstances, including our inability to resolve certain support issues. For our patnerships, the refund period varies by partner, but is generally between 5-14 days. For referral programs and direct transactions, the refund period is generally 5 days. For the majority of our end-user software products, we provide a 30-day money back guarantee. For all channels, we recognize revenue net of refunds and cancellations during the period. Refunds and cancellations have not been material to date. | |||||||||||||||||
We generally agree to indemnify our customers against legal claims that our end-user software products infringe certain third-party intellectual property rights. As of September 30, 2014, we were not required to make any payment resulting from infringement claims asserted against our customers and have not recorded any related accruals. | |||||||||||||||||
Recent Accounting Pronouncements | ' | ||||||||||||||||
Recent Accounting Pronouncements | |||||||||||||||||
In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which supersedes nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing U.S. GAAP. The standard is effective for annual periods beginning after December 15, 2016, and interim periods therein, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). The Company is currently evaluating the impact of its pending adoption of ASU 2014-09 on its consolidated financial statements and has not yet determined the method by which it will adopt the standard in 2017. | |||||||||||||||||
Financial Statement Reclassification | ' | ||||||||||||||||
Financial Statement Reclassification | |||||||||||||||||
Certain amounts in the prior year condensed consolidated financial statements, as well as in prior quarters in fiscal year 2014, have been reclassified to conform to the current period’s presentation. Prior to July 1, 2014, fees from Nexus software-as-a-service offering were included in software and other revenue. During the quarter ended September 30, 2014, the Company classified these fees as services revenue. In addition, the Company concluded that cost associated with the Nexus software-as-a-service solution was immaterial and therefore did not reclassify this cost from cost of software and other to cost of services. These reclassifications had no impact on previously reported total revenue, net income (loss), and cash flows. |
Significant_Accounting_Policie2
Significant Accounting Policies (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Significant Accounting Policies [Abstract] | ' | ||||||||||||||||
Summary of cash, cash equivalents and investments | ' | ||||||||||||||||
The following is a summary of cash, cash equivalents and investments at September 30, 2014 and December 31, 2013 (in thousands): | |||||||||||||||||
As of September 30, 2014 | Gross | Gross | |||||||||||||||
Amortized | Unrealized | Unrealized | |||||||||||||||
Cost | Gains | Losses | Fair Value | ||||||||||||||
Cash | $ | 17,145 | $ | — | $ | — | $ | 17,145 | |||||||||
Money market funds | 14,667 | — | — | 14,667 | |||||||||||||
Certificates of deposits | 1,200 | — | — | 1,200 | |||||||||||||
Commercial paper | 1,200 | — | — | 1,200 | |||||||||||||
Corporate notes and bonds | 39,122 | 1 | (26 | ) | 39,097 | ||||||||||||
U.S. government agency securities | 2,000 | 1 | — | 2,001 | |||||||||||||
$ | 75,334 | $ | 2 | $ | (26 | ) | $ | 75,310 | |||||||||
Classified as: | |||||||||||||||||
Cash and cash equivalents | $ | 31,812 | $ | — | $ | — | $ | 31,812 | |||||||||
Short-term investments | 43,522 | 2 | (26 | ) | 43,498 | ||||||||||||
$ | 75,334 | $ | 2 | $ | (26 | ) | $ | 75,310 | |||||||||
Gross | Gross | ||||||||||||||||
Amortized | Unrealized | Unrealized | |||||||||||||||
Cost | Gains | Losses | Fair Value | ||||||||||||||
As of December 31, 2013 | |||||||||||||||||
Cash | $ | 15,660 | $ | — | $ | — | $ | 15,660 | |||||||||
Money market funds | 11,771 | — | — | 11,771 | |||||||||||||
Certificates of deposits | 4,258 | — | (2 | ) | 4,256 | ||||||||||||
Commercial paper | 7,298 | — | — | 7,298 | |||||||||||||
Corporate notes and bonds | 33,386 | 8 | (22 | ) | 33,372 | ||||||||||||
$ | 72,373 | $ | 8 | $ | (24 | ) | $ | 72,357 | |||||||||
Classified as: | |||||||||||||||||
Cash and cash equivalents | $ | 28,390 | $ | — | $ | — | $ | 28,390 | |||||||||
Short-term investments | 43,983 | 8 | (24 | ) | 43,967 | ||||||||||||
$ | 72,373 | $ | 8 | $ | (24 | ) | $ | 72,357 | |||||||||
Summary of estimated fair value of available-for-sale securities classified by the stated maturity date | ' | ||||||||||||||||
The following table summarizes the estimated fair value of our available-for-sale securities classified by the stated maturity date of the security (in thousands): | |||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Due within one year | $ | 39,618 | $ | 34,916 | |||||||||||||
Due within two years | 3,880 | 9,051 | |||||||||||||||
$ | 43,498 | $ | 43,967 | ||||||||||||||
Financial assets (cash equivalents and investments) measured at fair value on recurring basis | ' | ||||||||||||||||
In accordance with ASC 820, the following table represents our fair value hierarchy for our financial assets (cash equivalents and investments) measured at fair value on a recurring basis as of September 30, 2014 and December 31, 2013 (in thousands): | |||||||||||||||||
As of September 30, 2014 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Money market funds | $ | 14,667 | $ | — | $ | — | $ | 14,667 | |||||||||
Certificates of deposits | — | 1,200 | — | 1,200 | |||||||||||||
Commercial paper | — | 1,200 | — | 1,200 | |||||||||||||
Corporate notes and bonds | — | 39,097 | — | 39,097 | |||||||||||||
U.S. government agency securities | — | 2,001 | — | 2,001 | |||||||||||||
Total | $ | 14,667 | $ | 43,498 | $ | — | $ | 58,165 | |||||||||
As of December 31, 2013 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Money market funds | $ | 11,771 | $ | — | $ | — | $ | 11,771 | |||||||||
Certificates of deposits | 4,256 | — | — | 4,256 | |||||||||||||
Commercial paper | — | 7,298 | — | 7,298 | |||||||||||||
Corporate notes and bonds | — | 33,372 | — | 33,372 | |||||||||||||
Total | $ | 16,027 | $ | 40,670 | $ | — | $ | 56,697 | |||||||||
Fair value of stock-based awards valuation assumptions | ' | ||||||||||||||||
The fair value of our stock-based awards was estimated using the following weighted average assumptions for the three and nine months ended September 30, 2014 and 2013: | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Stock Option Plan: | |||||||||||||||||
Risk-free interest rate | 1.4 | % | 1.2 | % | 1.6 | % | 0.7 | % | |||||||||
Expected term | 3.8 years | 3.6 years | 5.2 years | 3.7 years | |||||||||||||
Volatility | 57.9 | % | 57.1 | % | 57.3 | % | 56.7 | % | |||||||||
Expected dividend | 0 | % | 0 | % | 0 | % | 0 | % | |||||||||
Weighted average fair value (per share) | $ | 1.07 | $ | 2.42 | $ | 1.19 | $ | 1.84 | |||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Employee Stock Purchase Plan: | |||||||||||||||||
Risk-free interest rate | 0.05 | % | 0.09 | % | 0.05 | % | 0.09 | % | |||||||||
Expected term | 0.5 years | 0.5 years | 0.5 years | 0.5 years | |||||||||||||
Volatility | 61.07 | % | 42.8 | % | 61.07 | % | 42.8 | % | |||||||||
Expected dividend | 0 | % | 0 | % | 0 | % | 0 | % | |||||||||
Weighted average fair value (per share) | $ | 0.72 | $ | 1.18 | $ | 0.72 | $ | 1.18 | |||||||||
Stock-based compensation expense | ' | ||||||||||||||||
We recorded the following stock-based compensation expense for the three and nine months ended September 30, 2014 and 2013 (in thousands): | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Stock-based compensation expense related to grants of: | |||||||||||||||||
Stock options | $ | 278 | $ | 246 | $ | 1,131 | $ | 1,375 | |||||||||
Employee Stock Purchase Plan (“ESPP”) | 20 | 24 | 90 | 72 | |||||||||||||
Restricted Stock Units (“RSU”) | 505 | 600 | 836 | 987 | |||||||||||||
$ | 803 | $ | 870 | $ | 2,057 | $ | 2,434 | ||||||||||
Stock-based compensation expense recognized in: | |||||||||||||||||
Cost of services | $ | 75 | $ | 84 | $ | 207 | $ | 241 | |||||||||
Cost of software and other | 4 | 3 | 10 | 8 | |||||||||||||
Research and development | 145 | 192 | 308 | 530 | |||||||||||||
Sales and marketing | 122 | 103 | 293 | 285 | |||||||||||||
General and administrative | 457 | 488 | 1,239 | 1,370 | |||||||||||||
$ | 803 | $ | 870 | $ | 2,057 | $ | 2,434 | ||||||||||
Computation of basic and diluted earnings (loss) per share | ' | ||||||||||||||||
The following table sets forth the computation of basic and diluted earnings (loss) per share (in thousands, except per share amounts): | |||||||||||||||||
Three Months | Nine Months | ||||||||||||||||
Ended | Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Net income (loss) | $ | (101 | ) | $ | 3,032 | $ | (1,238 | ) | $ | 7,511 | |||||||
Basic: | |||||||||||||||||
Weighted-average shares of common stock outstanding | 54,028 | 52,266 | 53,716 | 51,080 | |||||||||||||
Shares used in computing basic earnings (loss) per share | 54,028 | 52,266 | 53,716 | 51,080 | |||||||||||||
Basic earnings (loss) per share | $ | (0.00 | ) | $ | 0.06 | $ | (0.02 | ) | $ | 0.15 | |||||||
Diluted: | |||||||||||||||||
Weighted-average shares of common stock outstanding | 54,028 | 52,266 | 53,716 | 51,080 | |||||||||||||
Add: Common equivalent shares outstanding | - | 2,395 | - | 2,428 | |||||||||||||
Shares used in computing diluted earnings (loss) per share | 54,028 | 54,661 | 53,716 | 53,508 | |||||||||||||
Diluted earnings (loss) per share | $ | (0.00 | ) | $ | 0.06 | $ | (0.02 | ) | $ | 0.14 |
Intangible_Assets_Tables
Intangible Assets (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||||
Intangible Assets [Abstract] | ' | ||||||||||||||||||||||||||||
Components of intangible assets | ' | ||||||||||||||||||||||||||||
The following table summarizes the components of intangible assets (in thousands): | |||||||||||||||||||||||||||||
Non-compete | Partner Relationships | Customer Base | Technology Rights | Tradenames | Indefinite Life Intangibles | Total | |||||||||||||||||||||||
As of September 30, 2014 | |||||||||||||||||||||||||||||
Gross carrying value | $ | 593 | $ | 145 | $ | 641 | $ | 5,330 | $ | 760 | $ | 250 | $ | 7,719 | |||||||||||||||
Accumulated amortization | (514 | ) | (145 | ) | (430 | ) | (3,359 | ) | (635 | ) | — | (5,083 | ) | ||||||||||||||||
Net carrying value | $ | 79 | $ | — | $ | 211 | $ | 1,971 | $ | 125 | $ | 250 | $ | 2,636 | |||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||||||
Gross carrying value | $ | 593 | $ | 145 | $ | 641 | $ | 5,330 | $ | 760 | $ | 250 | $ | 7,719 | |||||||||||||||
Accumulated amortization | (477 | ) | (145 | ) | (361 | ) | (2,689 | ) | (593 | ) | — | (4,265 | ) | ||||||||||||||||
Net carrying value | $ | 116 | $ | — | $ | 280 | $ | 2,641 | $ | 167 | $ | 250 | $ | 3,454 | |||||||||||||||
Estimated future amortization expense of intangible assets | ' | ||||||||||||||||||||||||||||
The estimated future amortization expense of intangible assets, with the exception of the indefinite-life intangible assets as of September 30, 2014 is as follows (in thousands): | |||||||||||||||||||||||||||||
Fiscal Year | Amount | ||||||||||||||||||||||||||||
2014(October-December) | 273 | ||||||||||||||||||||||||||||
2015 | 1,069 | ||||||||||||||||||||||||||||
2016 | 1,028 | ||||||||||||||||||||||||||||
2017 | 16 | ||||||||||||||||||||||||||||
Total | $ | 2,386 | |||||||||||||||||||||||||||
Weighted average remaining useful life | 2.2 years |
Other_Accrued_Liabilities_Tabl
Other Accrued Liabilities (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Other Accrued Liabilities [Abstract] | ' | ||||||||
Other accrued liabilities | ' | ||||||||
Other accrued liabilities consist of the following (in thousands): | |||||||||
As of September 30, | As of December 31, | ||||||||
2014 | 2013 | ||||||||
Accrued expenses | $ | 2,849 | $ | 2,135 | |||||
Customer deposits | 354 | 481 | |||||||
Restructuring expenses | - | 431 | |||||||
Other accrued liabilities | 170 | 312 | |||||||
Total other accrued liabilities | $ | 3,373 | $ | 3,359 |
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Stockholders' Equity [Abstract] | ' | ||||||||||||||||
Summary of stock option activity | ' | ||||||||||||||||
The following table represents the stock option activity for the nine months ended September 30, 2014: | |||||||||||||||||
Number of Shares | Weighted Average Exercise Price per Share | Weighted Average Remaining Contractual Term | Aggregate Intrinsic Value | ||||||||||||||
(in thousands) | |||||||||||||||||
Outstanding options at December 31, 2013 | 5,382,391 | $ | 3.55 | 3.66 | $ | 4,039 | |||||||||||
Granted | 1,392,750 | $ | 2.24 | ||||||||||||||
Exercised | (376,804 | ) | $ | 2.32 | |||||||||||||
Forfeited | (952,406 | ) | $ | 4.06 | |||||||||||||
Outstanding options at September 30, 2014 | 5,445,931 | $ | 3.21 | 4.22 | $ | — | |||||||||||
Options vested and expected to vest | 5,248,265 | $ | 3.23 | 4.03 | $ | — | |||||||||||
Exercisable at September 30, 2014 | 3,484,759 | $ | 3.37 | 1.66 | $ | — | |||||||||||
Summary of restricted stock units activity | ' | ||||||||||||||||
The following table represents RSU activity for the nine months ended September 30, 2014: | |||||||||||||||||
Number of Shares | Weighted Average Grant-Date Fair Value per Share | Weighted Average Remaining Contractual Term | |||||||||||||||
(in years) | |||||||||||||||||
Aggregate Intrinsic Value | |||||||||||||||||
(in thousands) | |||||||||||||||||
Outstanding RSUs at December 31, 2013 | 1,658,846 | $ | 5.09 | 1.57 | $ | 6,287 | |||||||||||
Awarded | 776,341 | 2.37 | |||||||||||||||
Released | (371,559 | ) | 4.74 | ||||||||||||||
Forfeited | (641,905 | ) | 4.85 | ||||||||||||||
Outstanding RSUs at September 30, 2014 | 1,421,723 | $ | 3.82 | 1.58 | $ | 3,071 |
Significant_Accounting_Policie3
Significant Accounting Policies, Revenue Recognition (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Revenue by Type [Line Items] | ' | ' | ' | ' |
Payment terms, Maximum | ' | ' | '90 days | ' |
Services breakage revenue (in hundredths) | 1.00% | 1.00% | 1.00% | 1.00% |
Channel Sales [Member] | Minimum [Member] | ' | ' | ' | ' |
Revenue by Type [Line Items] | ' | ' | ' | ' |
Refund period | ' | ' | '5 days | ' |
Channel Sales [Member] | Maximum [Member] | ' | ' | ' | ' |
Revenue by Type [Line Items] | ' | ' | ' | ' |
Refund period | ' | ' | '14 days | ' |
Referral Fees and Direct Transactions [Member] | ' | ' | ' | ' |
Revenue by Type [Line Items] | ' | ' | ' | ' |
Refund period | ' | ' | '5 days | ' |
End User Software Products [Member] | ' | ' | ' | ' |
Revenue by Type [Line Items] | ' | ' | ' | ' |
Refund period | ' | ' | '30 days | ' |
Significant_Accounting_Policie4
Significant Accounting Policies, Cash, Cash Equivalents and Investments (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Cash and Cash Equivalents and Investments [Line Items] | ' | ' |
Amortized Cost | $75,334 | $72,373 |
Gross Unrealized Gains | 2 | 8 |
Gross Unrealized Losses | -26 | -24 |
Fair Value | 75,310 | 72,357 |
Cash [Member] | ' | ' |
Cash and Cash Equivalents and Investments [Line Items] | ' | ' |
Amortized Cost | 17,145 | 15,660 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 17,145 | 15,660 |
Money Market Funds [Member] | ' | ' |
Cash and Cash Equivalents and Investments [Line Items] | ' | ' |
Amortized Cost | 14,667 | 11,771 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 14,667 | 11,771 |
Certificates of Deposits [Member] | ' | ' |
Cash and Cash Equivalents and Investments [Line Items] | ' | ' |
Amortized Cost | 1,200 | 4,258 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | -2 |
Fair Value | 1,200 | 4,256 |
Commercial Paper [Member] | ' | ' |
Cash and Cash Equivalents and Investments [Line Items] | ' | ' |
Amortized Cost | 1,200 | 7,298 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 1,200 | 7,298 |
Corporate Notes and Bonds [Member] | ' | ' |
Cash and Cash Equivalents and Investments [Line Items] | ' | ' |
Amortized Cost | 39,122 | 33,386 |
Gross Unrealized Gains | 1 | 8 |
Gross Unrealized Losses | -26 | -22 |
Fair Value | 39,097 | 33,372 |
US Government Agencies Securities [Member] | ' | ' |
Cash and Cash Equivalents and Investments [Line Items] | ' | ' |
Amortized Cost | 2,000 | ' |
Gross Unrealized Gains | 1 | ' |
Gross Unrealized Losses | 0 | ' |
Fair Value | 2,001 | ' |
Cash and Cash Equivalents [Member] | ' | ' |
Cash and Cash Equivalents and Investments [Line Items] | ' | ' |
Amortized Cost | 31,812 | 28,390 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 31,812 | 28,390 |
Short-term Investments [Member] | ' | ' |
Cash and Cash Equivalents and Investments [Line Items] | ' | ' |
Amortized Cost | 43,522 | 43,983 |
Gross Unrealized Gains | 2 | 8 |
Gross Unrealized Losses | -26 | -24 |
Fair Value | $43,498 | $43,967 |
Significant_Accounting_Policie5
Significant Accounting Policies, Investment Maturity (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | ' | ' |
Due within one year | $39,618 | $34,916 |
Due within two years | 3,880 | 9,051 |
Total fair value | $43,498 | $43,967 |
Significant_Accounting_Policie6
Significant Accounting Policies, Fair Value Disclosures (Details) (Recurring [Member], USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value Hierarchy [Roll Forward] | ' | ' |
Money market funds | $14,667 | $11,771 |
Certificates of deposits | 1,200 | 4,256 |
Commercial paper | 1,200 | 7,298 |
Corporate notes and bonds | 39,097 | 33,372 |
U.S. government agency securities | 2,001 | ' |
Total | 58,165 | 56,697 |
Level 1 [Member] | ' | ' |
Fair Value Hierarchy [Roll Forward] | ' | ' |
Money market funds | 14,667 | 11,771 |
Certificates of deposits | 0 | 4,256 |
Commercial paper | 0 | 0 |
Corporate notes and bonds | 0 | 0 |
U.S. government agency securities | 0 | ' |
Total | 14,667 | 16,027 |
Level 2 [Member] | ' | ' |
Fair Value Hierarchy [Roll Forward] | ' | ' |
Money market funds | 0 | 0 |
Certificates of deposits | 1,200 | 0 |
Commercial paper | 1,200 | 7,298 |
Corporate notes and bonds | 39,097 | 33,372 |
U.S. government agency securities | 2,001 | ' |
Total | 43,498 | 40,670 |
Level 3 [Member] | ' | ' |
Fair Value Hierarchy [Roll Forward] | ' | ' |
Money market funds | 0 | 0 |
Certificates of deposits | 0 | 0 |
Commercial paper | 0 | 0 |
Corporate notes and bonds | 0 | 0 |
U.S. government agency securities | 0 | ' |
Total | $0 | $0 |
Significant_Accounting_Policie7
Significant Accounting Policies, Concentrations of Credit Risk (Details) (Sales Revenue, Services, Net [Member]) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Concentration Risk [Line Items] | ' | ' | ' | ' |
Minimum threshold for reporting concentration risk (in hundredths) | 10.00% | 10.00% | 10.00% | 10.00% |
Comcast [Member] | ' | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' | ' |
Customer concentration risk (in hundredths) | 68.00% | 55.00% | 62.00% | 48.00% |
Office Max [Member] | ' | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' | ' |
Customer concentration risk (in hundredths) | ' | ' | ' | 10.00% |
Office Depot and OfficeMax [Member] | ' | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' | ' |
Customer concentration risk (in hundredths) | 14.00% | ' | 16.00% | ' |
Significant_Accounting_Policie8
Significant Accounting Policies, Concentrations of Credit Risk, Accounts Receivable (Details) (Accounts Receivable [Member]) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2014 | Dec. 31, 2013 | |
Concentration Risk [Line Items] | ' | ' |
Minimum threshold for reporting concentration risk (in hundredths) | 10.00% | 10.00% |
Comcast [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Customer concentration risk (in hundredths) | 78.00% | 73.00% |
Office Depot and OfficeMax [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Customer concentration risk (in hundredths) | 12.00% | ' |
Significant_Accounting_Policie9
Significant Accounting Policies, Trade Accounts Receivable and Allowance for Doubtful Accounts (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | |
Receivables [Abstract] | ' | ' | |
Accounts receivable, net | $15,190,000 | $13,993,000 | [1] |
Allowance for doubtful accounts | 1,000 | 0 | |
Unbilled Revenues [Member] | ' | ' | |
Receivables [Abstract] | ' | ' | |
Accounts receivable, net | $1,400,000 | $853,000 | |
[1] | Derived from the December 31, 2013 audited Consolidated Financial Statements included in our Annual Report on Form 10-K, as filed with the Securities and Exchange Commission ("SEC") on March 7, 2014. |
Recovered_Sheet1
Significant Accounting Policies, Accumulated Other Comprehensive Loss (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Significant Accounting Policies [Abstract] | ' | ' |
Accumulated currency translation loss | ($1,900,000) | ($1,900,000) |
Accumulated unrealized losses on investments | ($24,000) | ($16,000) |
Recovered_Sheet2
Significant Accounting Policies, Stock-Based Compensation (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Fair value assumptions for stock options granted [Abstract] | ' | ' | ' | ' |
Stock-based compensation expense | $803 | $870 | $2,057 | $2,434 |
Employee Stock Purchase Plan ("ESPP") [Member] | ' | ' | ' | ' |
Fair value assumptions for stock options granted [Abstract] | ' | ' | ' | ' |
Risk free interest rate (in hundredths) | 0.05% | 0.09% | 0.05% | 0.09% |
Expected term | '0 years 6 months | '0 years 6 months | '0 years 6 months | '0 years 6 months |
Volatility (in hundredths) | 61.07% | 42.80% | 61.07% | 42.80% |
Expected dividend (in hundredths) | 0.00% | 0.00% | 0.00% | 0.00% |
Weighted average fair value (in dollars per share) | $0.72 | $1.18 | $0.72 | $1.18 |
Stock-based compensation expense | 20 | 24 | 90 | 72 |
Cost of Services [Member] | ' | ' | ' | ' |
Fair value assumptions for stock options granted [Abstract] | ' | ' | ' | ' |
Stock-based compensation expense | 75 | 84 | 207 | 241 |
Cost of Software and Other [Member] | ' | ' | ' | ' |
Fair value assumptions for stock options granted [Abstract] | ' | ' | ' | ' |
Stock-based compensation expense | 4 | 3 | 10 | 8 |
Research and Development [Member] | ' | ' | ' | ' |
Fair value assumptions for stock options granted [Abstract] | ' | ' | ' | ' |
Stock-based compensation expense | 145 | 192 | 308 | 530 |
Sales and Marketing [Member] | ' | ' | ' | ' |
Fair value assumptions for stock options granted [Abstract] | ' | ' | ' | ' |
Stock-based compensation expense | 122 | 103 | 293 | 285 |
General and Administrative [Member] | ' | ' | ' | ' |
Fair value assumptions for stock options granted [Abstract] | ' | ' | ' | ' |
Stock-based compensation expense | 457 | 488 | 1,239 | 1,370 |
Stock Options [Member] | ' | ' | ' | ' |
Fair value assumptions for stock options granted [Abstract] | ' | ' | ' | ' |
Risk free interest rate (in hundredths) | 1.40% | 1.20% | 1.60% | 0.70% |
Expected term | '3 years 9 months 18 days | '3 years 7 months 6 days | '5 years 2 months 12 days | '3 years 8 months 12 days |
Volatility (in hundredths) | 57.90% | 57.10% | 57.30% | 56.70% |
Expected dividend (in hundredths) | 0.00% | 0.00% | 0.00% | 0.00% |
Weighted average fair value (in dollars per share) | $1.07 | $2.42 | $1.19 | $1.84 |
Stock-based compensation expense | 278 | 246 | 1,131 | 1,375 |
Restricted Stock Units ("RSUs") [Member] | ' | ' | ' | ' |
Fair value assumptions for stock options granted [Abstract] | ' | ' | ' | ' |
Stock-based compensation expense | $505 | $600 | $836 | $987 |
Recovered_Sheet3
Significant Accounting Policies, Earnings Per Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Earnings (loss) per share [Abstract] | ' | ' | ' | ' |
Net income (loss) | ($101) | $3,032 | ($1,238) | $7,511 |
Basic [Abstract] | ' | ' | ' | ' |
Weighted-average shares of common stock outstanding (in shares) | 54,028,000 | 52,266,000 | 53,716,000 | 51,080,000 |
Shares used in computing basic earnings (loss) per share (in shares) | 54,028,000 | 52,266,000 | 53,716,000 | 51,080,000 |
Basic earnings (loss) per share (in dollars per share) | $0 | $0.06 | ($0.02) | $0.15 |
Diluted [Abstract] | ' | ' | ' | ' |
Weighted-average shares of common stock outstanding (in shares) | 54,028,000 | 52,266,000 | 53,716,000 | 51,080,000 |
Add: Common equivalent shares outstanding (in shares) | 0 | 2,395,000 | 0 | 2,428,000 |
Shares used in computing diluted earnings (loss) per share (in shares) | 54,028,000 | 54,661,000 | 53,716,000 | 53,508,000 |
Diluted earnings (loss) per share (in dollars per share) | $0 | $0.06 | ($0.02) | $0.14 |
Stock Option [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Weighted average stock options excluded from computation of diluted earnings (loss) per share (in shares) | 4,300,000 | 999,000 | 3,900,000 | 1,200,000 |
Options and Restricted Stock Units [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Shares excluded from the computation of diluted earnings (loss) per share (in shares) | 130,000 | ' | 221,000 | ' |
Recovered_Sheet4
Significant Accounting Policies, Warranties and Indemnifications (Details) | 9 Months Ended |
Sep. 30, 2014 | |
Product Warranties Disclosures [Abstract] | ' |
Refund period for channel partners, minimum | '5 days |
Refund period for channel partners, maximum | '14 days |
Money back guarantee period for software products | '30 days |
Refund period for guarantee | '5 days |
Warrants_Details
Warrants (Details) (USD $) | 9 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
Comcast [Member] | Comcast [Member] | Comcast [Member] | Comcast [Member] | Comcast [Member] | Comcast [Member] | |||
First Tranche [Member] | Second Tranche [Member] | |||||||
Revenue, Major Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants issuable, maximum (in shares) | ' | ' | ' | ' | 975,000 | ' | ' | ' |
Warrants, exercise price (in dollars per share) | ' | ' | ' | ' | $4.95 | ' | ' | ' |
Investment warrants expiration period from issuance date | ' | ' | ' | ' | ' | '3 years | ' | ' |
Common stock issued (in shares) | ' | ' | ' | ' | ' | 490,000 | ' | ' |
Warrants issued (in shares) | ' | ' | 324,000 | 166,000 | ' | ' | ' | ' |
Warrant-related charges | $0 | $383,000 | ' | ' | ' | $777,000 | ' | ' |
Fair value assumptions for warrants issued [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' |
Risk free interest rate (in hundredths) | ' | ' | ' | ' | ' | ' | 0.74% | 0.74% |
Expected term | ' | ' | ' | ' | ' | ' | '3 years | '3 years |
Volatility (in hundredths) | ' | ' | ' | ' | ' | ' | 59.12% | 59.12% |
Expected dividend (in hundredths) | ' | ' | ' | ' | ' | ' | 0.00% | 0.00% |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Income Taxes [Abstract] | ' | ' | ' | ' |
Income tax provision | $128 | $121 | $385 | $446 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | 3 Months Ended | 12 Months Ended |
Jun. 30, 2014 | Dec. 31, 2013 | |
Pending Litigation [Member] | ||
Loss Contingencies [Line Items] | ' | ' |
Interest income and other, net | ' | $57,000 |
Settlement amount | ($150,000) | ' |
Intangible_Assets_Details
Intangible Assets (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | |
In Thousands, unless otherwise specified | |||
Finite-lived intangible assets [Abstract] | ' | ' | |
Net carrying value | $2,386 | ' | |
Indefinite life intangible assets [Abstract] | ' | ' | |
Gross carrying value | 250 | 250 | |
Net carrying value | 250 | 250 | |
Intangible assets, total [Abstract] | ' | ' | |
Gross carrying value | 7,719 | 7,719 | |
Accumulated amortization | -5,083 | -4,265 | |
Net carrying value | 2,636 | 3,454 | [1] |
Noncompete [Member] | ' | ' | |
Finite-lived intangible assets [Abstract] | ' | ' | |
Gross carrying value | 593 | 593 | |
Accumulated amortization | -514 | -477 | |
Net carrying value | 79 | 116 | |
Partner Relationships [Member] | ' | ' | |
Finite-lived intangible assets [Abstract] | ' | ' | |
Gross carrying value | 145 | 145 | |
Accumulated amortization | -145 | -145 | |
Net carrying value | 0 | 0 | |
Customer Base [Member] | ' | ' | |
Finite-lived intangible assets [Abstract] | ' | ' | |
Gross carrying value | 641 | 641 | |
Accumulated amortization | -430 | -361 | |
Net carrying value | 211 | 280 | |
Technology Rights [Member] | ' | ' | |
Finite-lived intangible assets [Abstract] | ' | ' | |
Gross carrying value | 5,330 | 5,330 | |
Accumulated amortization | -3,359 | -2,689 | |
Net carrying value | 1,971 | 2,641 | |
Tradenames [Member] | ' | ' | |
Finite-lived intangible assets [Abstract] | ' | ' | |
Gross carrying value | 760 | 760 | |
Accumulated amortization | -635 | -593 | |
Net carrying value | $125 | $167 | |
[1] | Derived from the December 31, 2013 audited Consolidated Financial Statements included in our Annual Report on Form 10-K, as filed with the Securities and Exchange Commission ("SEC") on March 7, 2014. |
Intangible_Assets_Additional_I
Intangible Assets, Additional Information (Details) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2006 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Intangible Assets [Abstract] | ' | ' | ' | ' | ' |
Amortization of intangible assets and other | ' | $273,000 | $335,000 | $818,000 | $1,005,000 |
Indefinite life intangibles acquired | $250,000 | ' | ' | ' | ' |
Intangible_Assets_Maturity_Sch
Intangible Assets, Maturity Schedule (Details) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 |
Estimated future amortization expense of intangible assets [Abstract] | ' |
2014 (October-December) | $273 |
2015 | 1,069 |
2016 | 1,028 |
2017 | 16 |
Total | $2,386 |
Weighted average remaining useful life | '2 years 2 months 12 days |
Other_Accrued_Liabilities_Deta
Other Accrued Liabilities (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Other Accrued Liabilities [Abstract] | ' | ' |
Accrued expenses | $2,849 | $2,135 |
Customer deposits | 354 | 481 |
Restructuring expenses | 0 | 431 |
Other accrued liabilities | 170 | 312 |
Total other accrued liabilities | $3,373 | $3,359 |
Stockholders_Equity_Stock_Opti
Stockholders' Equity, Stock Option (Details) (Stock Options [Member], USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Stock Options [Member] | ' | ' |
Stock option activity [Roll Forward] | ' | ' |
Outstanding options, beginning balance (in shares) | 5,382,391 | ' |
Granted (in shares) | 1,392,750 | ' |
Exercised (in shares) | -376,804 | ' |
Forfeited (in shares) | -952,406 | ' |
Outstanding options, ending balance (in shares) | 5,445,931 | 5,382,391 |
Options vested and expected to vest (in shares) | 5,248,265 | ' |
Exercisable (in shares) | 3,484,759 | ' |
Weighted average exercise price per share [Roll Forward] | ' | ' |
Outstanding options, beginning balance (in dollars per share) | $3.55 | ' |
Granted (in dollars per share) | $2.24 | ' |
Exercised (in dollars per share) | $2.32 | ' |
Forfeited (in dollars per share) | $4.06 | ' |
Outstanding options, ending balance (in dollars per share) | $3.21 | $3.55 |
Options vested and expected to vest (in dollars per share) | $3.23 | ' |
Exercisable (in dollars per share) | $3.37 | ' |
Additional Disclosures [Abstract] | ' | ' |
Options outstanding, weighted average remaining contractual term | '4 years 2 months 19 days | '3 years 7 months 28 days |
Options vested and expected to vest, weighted average remaining contractual term | '4 years 0 months 11 days | ' |
Options exercisable, weighted average remaining contractual term | '1 year 7 months 28 days | ' |
Options outstanding, aggregate intrinsic value | $0 | $4,039 |
Options vested and expected to vest, aggregate intrinsic value | 0 | ' |
Options exercisable, aggregate intrinsic value | $0 | ' |
Stockholders_Equity_Stock_Opti1
Stockholders' Equity, Stock Option 2 (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | |||||||
Sep. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | |
Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | |||
Minimum [Member] | Maximum [Member] | President and Chief Executive Officer [Member] | Key executives [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options exercised in period, total intrinsic value | ' | ' | $18,000 | $3,500,000 | $71,000 | $8,100,000 | ' | ' | ' | ' |
Fair value of options vested | ' | ' | 209,000 | 398,000 | 542,000 | 1,600,000 | ' | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation cost related to stock options | ' | ' | 2,100,000 | ' | 2,100,000 | ' | ' | ' | ' | ' |
Nonvested awards, unrecognized cost, period for recognition | ' | ' | ' | ' | '2 years 2 months 8 days | ' | ' | ' | ' | ' |
Stock options granted (in shares) | ' | ' | ' | ' | 1,392,750 | ' | ' | ' | 750,000 | 112,500 |
Estimated grant-date fair value (in dollars per share) | ' | ' | ' | ' | ' | ' | $1.27 | $1.33 | ' | ' |
Fair value assumptions, estimated service period | ' | ' | ' | ' | ' | ' | '1 year 10 months 13 days | '4 years 6 months 7 days | ' | ' |
Extension of the post-termination exercise period for outstanding stock option grants | '90 days | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation expense | ' | $193,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Stockholders_Equity_Employee_S
Stockholders' Equity, Employee Stock Purchase Plan (Details) | 3 Months Ended | 9 Months Ended |
Jun. 30, 2011 | Sep. 30, 2014 | |
Employee Stock Purchase Plan [Abstract] | ' | ' |
Number of shares reserved for issuance (in shares) | 1,000,000 | ' |
Term for Employee Stock Purchase Plan | ' | '10 years |
Offering period of Employee Stock Purchase Plan | ' | '6 months |
Minimum percentage of fair market value of the specified conditions used to determine purchase price of ESPP (in hundredths) | 85.00% | ' |
Employee Stock Purchase Plan ("ESPP") [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Employee Stock Purchase Plan, shares purchased (in shares) | ' | 61,575 |
Stockholders_Equity_Restricted
Stockholders' Equity, Restricted Stock Units (Details) (Restricted Stock Units ("RSUs") [Member], USD $) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2014 | Dec. 31, 2013 | |
Restricted stock units, number of shares [Roll Forward] | ' | ' |
Outstanding RSUs, beginning balance (in shares) | 1,658,846 | ' |
Awarded (in shares) | 776,341 | ' |
Released (in shares) | -371,559 | ' |
Forfeited (in shares) | -641,905 | ' |
Outstanding RSUs, ending balance (in shares) | 1,421,723 | 1,658,846 |
Restricted stock units, weighted average grant-date fair value [Roll forward] | ' | ' |
Outstanding RSUs, beginning balance (in dollars per share) | $5.09 | ' |
Awarded (in dollars per share) | $2.37 | ' |
Released (in dollars per share) | $4.74 | ' |
Forfeited (in dollars per share) | $4.85 | ' |
Outstanding RSUs, ending balance (in dollars per share) | $3.82 | $5.09 |
Restricted stock units, additional disclosures [Abstract] | ' | ' |
Weighted average remaining contractual term | '1 year 6 months 29 days | '1 year 6 months 25 days |
Aggregate intrinsic value | $3,071,000 | $6,287,000 |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized [Abstract] | ' | ' |
Unrecognized compensation cost related to restricted stock units | $3,900,000 | ' |
Nonvested awards, unrecognized cost, period for recognition | '2 years 7 months 20 days | ' |
President and Chief Executive Officer [Member] | ' | ' |
Restricted stock units, number of shares [Roll Forward] | ' | ' |
Awarded (in shares) | 218,752 | ' |
Restricted stock units, additional disclosures [Abstract] | ' | ' |
Vesting period | '4 years | ' |
Percentage of the awards annual vesting tranches (in hundredths) | 25.00% | ' |
Non-employee directors [Member] | ' | ' |
Restricted stock units, number of shares [Roll Forward] | ' | ' |
Awarded (in shares) | 108,225 | ' |
Restricted stock units, weighted average grant-date fair value [Roll forward] | ' | ' |
Awarded (in dollars per share) | $2.31 | ' |
Restricted stock units, additional disclosures [Abstract] | ' | ' |
Vesting period | '1 year | ' |
Stockholders_Equity_Stock_Repu
Stockholders' Equity, Stock Repurchase Program (Details) | Sep. 30, 2014 | Apr. 27, 2005 |
Stock Repurchase Program [Abstract] | ' | ' |
Stock repurchase program, number of shares authorized to be repurchased (in shares) | ' | 2,000,000 |
Stock repurchase program, remaining number of shares authorized to be repurchased (in shares) | 1,807,402 | ' |
Stockholders_Equity_Repurchase
Stockholders' Equity, Repurchase of Shares (Details) (USD $) | 0 Months Ended | 9 Months Ended | |
Feb. 19, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Stockholders' Equity [Abstract] | ' | ' | ' |
Common stock acquired (in shares) | 1,000,000 | ' | ' |
Expiration period of stock options | ' | '7 years | ' |
Percentage of price reduced from closing price of shares reported by NASDAQ (in hundredths) | 5.00% | ' | ' |
Number of days taken as base for simple moving average | ' | '30 days | ' |
Formula produced price (in dollars per share) | $4.11 | ' | ' |
Exercise price of options (in dollars per share) | $2.32 | ' | ' |
Payments to purchase treasury stock | $1,800,000 | ' | ' |
Price of treasury stock acquired (in dollars per share) | $1.79 | ' | ' |
Share repurchase amount | $4,100,000 | $0 | $4,114,000 |