Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 29, 2016 | Jun. 30, 2015 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Support.com, Inc. | ||
Entity Central Index Key | 1,104,855 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $ 76,944,096 | ||
Entity Common Stock, Shares Outstanding | 54,875,121 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 27,598 | $ 23,354 |
Short-term investments | 38,136 | 50,439 |
Accounts receivable, less allowance of $6 and $2 at December 31, 2015 and 2014, respectively | 10,019 | 14,627 |
Prepaid expenses and other current assets | 1,474 | 1,403 |
Total current assets | 77,227 | 89,823 |
Property and equipment, net | 1,989 | 417 |
Goodwill | 0 | 14,240 |
Intangible assets, net | 1,294 | 2,363 |
Other assets | 982 | 1,144 |
Total assets | 81,492 | 107,987 |
Current liabilities: | ||
Accounts payable | 267 | 1,625 |
Accrued compensation | 2,768 | 2,792 |
Other accrued liabilities | 4,135 | 3,029 |
Short-term deferred revenue | 2,184 | 2,619 |
Total current liabilities | 9,354 | 10,065 |
Long-term deferred revenue | 102 | 72 |
Other long-term liabilities | 690 | 2,129 |
Total liabilities | $ 10,146 | $ 12,266 |
Commitments and contingencies (Note 5) | ||
Stockholders' equity: | ||
Common stock; par value $0.0001, 150,000,000 shares authorized; 56,152,317 issued and 54,860,883 outstanding at December 31, 2015; 55,457,001 issued and 54,264,483 outstanding at December 31, 2014 | $ 5 | $ 5 |
Additional paid-in capital | 265,324 | 262,253 |
Treasury Stock, at cost (1,291,434 shares at December 31, 2015 and 1,192,598 shares at December 31, 2014) | (5,167) | (5,036) |
Accumulated other comprehensive loss | (2,302) | (2,028) |
Accumulated deficit | (186,514) | (159,473) |
Total stockholders' equity | 71,346 | 95,721 |
Total liabilities and stockholders' equity | $ 81,492 | $ 107,987 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Accounts receivable, allowance for doubtful accounts | $ 6 | $ 2 |
Stockholders' equity: | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 150,000,000 | 150,000,000 |
Common stock, shares issued (in shares) | 56,152,317 | 55,457,001 |
Common stock, shares outstanding (in shares) | 54,860,883 | 54,264,483 |
Treasury stock (in shares) | 1,291,434 | 1,192,598 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenue: | |||||||||||
Services | $ 14,418 | $ 16,563 | $ 19,295 | $ 21,875 | $ 20,633 | $ 20,844 | $ 18,743 | $ 17,052 | $ 72,151 | $ 77,272 | $ 74,867 |
Software and other | 1,293 | 1,302 | 1,305 | 1,282 | 1,336 | 1,387 | 1,435 | 1,561 | 5,182 | 5,719 | 13,296 |
Total revenue | 15,711 | 17,865 | 20,600 | 23,157 | 21,969 | 22,231 | 20,178 | 18,613 | 77,333 | 82,991 | 88,163 |
Costs of revenue: | |||||||||||
Cost of services | 12,884 | 14,357 | 15,804 | 18,394 | 17,093 | 16,020 | 14,531 | 12,962 | 61,439 | 60,606 | 43,208 |
Cost of software and other | 127 | 128 | 131 | 150 | 184 | 189 | 228 | 239 | 536 | 840 | 1,172 |
Total cost of revenue | 13,011 | 14,485 | 15,935 | 18,544 | 17,277 | 16,209 | 14,759 | 13,201 | 61,975 | 61,446 | 44,380 |
Gross profit | 2,700 | 3,380 | 4,665 | 4,613 | 4,692 | 6,022 | 5,419 | 5,412 | 15,358 | 21,545 | 43,783 |
Operating expenses: | |||||||||||
Research and development | 1,713 | 1,790 | 1,930 | 1,524 | 1,464 | 1,203 | 1,057 | 1,354 | 6,957 | 5,078 | 5,735 |
Sales and marketing | 2,053 | 2,195 | 2,089 | 2,208 | 2,185 | 1,782 | 1,688 | 1,551 | 8,545 | 7,206 | 14,599 |
General and administrative | 3,828 | 3,047 | 3,076 | 3,060 | 2,869 | 2,808 | 2,980 | 2,663 | 13,011 | 11,320 | 11,376 |
Amortization of intangible assets and other | 267 | 267 | 267 | 268 | 272 | 273 | 273 | 273 | 1,069 | 1,091 | 1,321 |
Goodwill impairment | 0 | 0 | 14,240 | 0 | 14,240 | 0 | 0 | ||||
Total operating expenses | 7,861 | 7,299 | 21,602 | 7,060 | 6,790 | 6,066 | 5,998 | 5,841 | 43,822 | 24,695 | 33,031 |
Income (loss) from operations | (5,161) | (3,919) | (16,937) | (2,447) | (2,098) | (44) | (579) | (429) | (28,464) | (3,150) | 10,752 |
Interest income and other, net | 111 | 113 | 106 | 100 | 77 | 77 | 62 | 78 | 430 | 294 | 369 |
Income (loss) from continuing operations, before income taxes | (5,050) | (3,806) | (16,831) | (2,347) | (2,021) | 33 | (517) | (351) | (28,034) | (2,856) | 11,121 |
Income tax provision (benefit) | 76 | 60 | (1,227) | 126 | 355 | 128 | 132 | 125 | (965) | 740 | 772 |
Income (loss) from continuing operations, after income taxes | (5,126) | (3,866) | (15,604) | (2,473) | (2,376) | (95) | (649) | (476) | (27,069) | (3,596) | 10,349 |
Income from discontinued operations, after income taxes | (4) | (5) | (5) | 42 | 131 | (6) | (6) | (6) | 28 | 113 | 34 |
Net income (loss) | $ (5,130) | $ (3,871) | $ (15,609) | $ (2,431) | $ (2,245) | $ (101) | $ (655) | $ (482) | $ (27,041) | $ (3,483) | $ 10,383 |
Basic earnings (loss) per share: | |||||||||||
Continuing operations, after income taxes (in dollars per share) | $ (0.09) | $ (0.07) | $ (0.29) | $ (0.05) | $ (0.04) | $ 0 | $ (0.01) | $ (0.01) | $ (0.50) | $ (0.07) | $ 0.20 |
Discontinued operations, after income taxes (in dollars per share) | 0 | 0 | 0 | 0.01 | 0 | 0 | 0 | 0 | 0 | 0.01 | 0 |
Basic net earnings (loss) per share (in dollars per share) | (0.09) | (0.07) | (0.29) | (0.04) | (0.04) | 0 | (0.01) | (0.01) | (0.50) | (0.06) | 0.20 |
Diluted earnings (loss) per share: | |||||||||||
Continuing operations, after income taxes (in dollars per share) | (0.09) | (0.07) | (0.29) | (0.05) | (0.04) | 0 | (0.01) | (0.01) | (0.50) | (0.07) | 0.19 |
Discontinued operations, after income taxes (in dollars per share) | 0 | 0 | 0 | 0.01 | 0 | 0 | 0 | 0 | 0 | 0.01 | 0 |
Diluted net earnings (loss) per share (in dollars per share) | $ (0.09) | $ (0.07) | $ (0.29) | $ (0.04) | $ (0.04) | $ 0 | $ (0.01) | $ (0.01) | $ (0.50) | $ (0.06) | $ 0.19 |
Shares used in computing per share amounts: | |||||||||||
Shares used in computing basic net earnings (loss) per share (in shares) | 54,548 | 53,834 | 51,553 | ||||||||
Shares used in computing diluted net earnings (loss) per share (in shares) | 54,548 | 53,834 | 53,825 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) [Abstract] | |||
Net income (loss) | $ (27,041) | $ (3,483) | $ 10,383 |
Other comprehensive income (loss): | |||
Change in foreign currency translation adjustment | (236) | (117) | (357) |
Change in net unrealized gain (loss) on investments | (38) | (37) | (16) |
Other comprehensive income (loss) | (274) | (154) | (373) |
Comprehensive income (loss) | $ (27,315) | $ (3,637) | $ 10,010 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-In Capital [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Loss [Member] | Accumulated Deficit [Member] | Total |
Balances at Dec. 31, 2012 | $ 5 | $ 242,954 | $ (922) | $ (1,501) | $ (166,373) | $ 74,163 |
Balances (in shares) at Dec. 31, 2012 | 49,809,989 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | $ 0 | 0 | 0 | 0 | 10,383 | 10,383 |
Other comprehensive loss | 0 | 0 | (373) | 0 | (373) | |
Stock-based compensation expense | 0 | 3,481 | 0 | 0 | 0 | 3,481 |
Issuance of common stock upon exercise of stock options for cash and releases of RSUs | $ 0 | 8,435 | 0 | 0 | 0 | 8,435 |
Issuance of common stock upon exercise of stock options for cash and releases of RSUs (in shares) | 4,392,786 | |||||
Issuance of common stock under employee stock purchase plan | $ 0 | 290 | 0 | 0 | 0 | $ 290 |
Issuance of common stock under employee stock purchase plan (in shares) | 79,221 | 79,221 | ||||
Repurchase of common stock | $ 0 | 2,320 | (4,114) | 0 | 0 | $ (1,794) |
Repurchase of common stock (in shares) | (1,000,000) | |||||
Warrant-related charges | $ 0 | 777 | 0 | 0 | 0 | 777 |
Utilized excess tax benefit (charge) | 0 | 34 | 0 | 0 | 0 | 34 |
Balances at Dec. 31, 2013 | $ 5 | 258,291 | (5,036) | (1,874) | (155,990) | 95,396 |
Balances (in shares) at Dec. 31, 2013 | 53,281,996 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | $ 0 | 0 | 0 | 0 | (3,483) | (3,483) |
Other comprehensive loss | 0 | 0 | 0 | (154) | 0 | (154) |
Stock-based compensation expense | 0 | 2,874 | 0 | 0 | 0 | 2,874 |
Issuance of common stock upon exercise of stock options for cash and releases of RSUs | $ 0 | 874 | 0 | 0 | 0 | 874 |
Issuance of common stock upon exercise of stock options for cash and releases of RSUs (in shares) | 864,954 | |||||
Issuance of common stock under employee stock purchase plan | $ 0 | 222 | 0 | 0 | 0 | $ 222 |
Issuance of common stock under employee stock purchase plan (in shares) | 117,533 | 117,533 | ||||
Utilized excess tax benefit (charge) | $ 0 | (8) | 0 | 0 | 0 | $ (8) |
Balances at Dec. 31, 2014 | $ 5 | 262,253 | (5,036) | (2,028) | (159,473) | $ 95,721 |
Balances (in shares) at Dec. 31, 2014 | 54,264,483 | 54,264,483 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | $ 0 | 0 | 0 | 0 | (27,041) | $ (27,041) |
Other comprehensive loss | 0 | 0 | 0 | (274) | 0 | (274) |
Stock-based compensation expense | 0 | 2,914 | 0 | 0 | 0 | 2,914 |
Issuance of common stock upon exercise of stock options for cash and releases of RSUs | $ 0 | 0 | 0 | 0 | 0 | 0 |
Issuance of common stock upon exercise of stock options for cash and releases of RSUs (in shares) | 553,484 | |||||
Issuance of common stock under employee stock purchase plan | $ 0 | 157 | 0 | 0 | 0 | $ 157 |
Issuance of common stock under employee stock purchase plan (in shares) | 141,752 | 141,752 | ||||
Repurchase of common stock | $ 0 | 0 | (131) | 0 | 0 | $ (131) |
Repurchase of common stock (in shares) | (98,836) | |||||
Balances at Dec. 31, 2015 | $ 5 | $ 265,324 | $ (5,167) | $ (2,302) | $ (186,514) | $ 71,346 |
Balances (in shares) at Dec. 31, 2015 | 54,860,883 | 54,860,883 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating activities: | |||
Net income (loss) | $ (27,041) | $ (3,483) | $ 10,383 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Stock-based compensation expense | 2,914 | 2,874 | 3,481 |
Amortization of intangible assets and other | 1,069 | 1,091 | 1,321 |
Warrant-related charges | 0 | 0 | 777 |
Amortization of premiums and discounts on investments | 467 | 726 | 646 |
Depreciation | 324 | 275 | 351 |
Goodwill impairment | 14,240 | 0 | 0 |
Deferred income taxes | (1,167) | 326 | 419 |
Amortization of purchased technology | 0 | 0 | 62 |
Changes in assets and liabilities: | |||
Accounts receivable, net | 4,608 | (634) | (4,304) |
Prepaid expenses and other current assets | (73) | (82) | 32 |
Other assets | 141 | (80) | 76 |
Accounts payable | (1,358) | 764 | 414 |
Accrued compensation | (27) | 634 | 539 |
Other accrued liabilities | 1,101 | (331) | (623) |
Other long-term liabilities | (261) | 10 | (103) |
Deferred revenue | (405) | (632) | (3,295) |
Net cash (used in) provided by operating activities | (5,468) | 1,458 | 10,176 |
Investing activities: | |||
Purchases of property and equipment | (1,896) | (231) | (221) |
Purchases of investments | (37,695) | (63,510) | (61,779) |
Sales of investments | 0 | 0 | 104 |
Maturities of investments | 49,493 | 56,275 | 42,544 |
Net cash provided (used in) by investing activities | 9,902 | (7,466) | (19,352) |
Financing activities: | |||
Utilized excess tax benefit | 0 | (8) | 34 |
Proceeds from issuance of common stock | 157 | 1,096 | 11,045 |
Repurchase of common stock | (131) | 0 | (4,114) |
Net cash provided by financing activities | 26 | 1,088 | 6,965 |
Net (decrease) increase in cash and cash equivalents | 4,460 | (4,920) | (2,211) |
Effect of exchange rate changes on cash and cash equivalents | (216) | (116) | (251) |
Cash and cash equivalents at beginning of year | 23,354 | 28,390 | 30,852 |
Cash and cash equivalents at end of year | 27,598 | 23,354 | 28,390 |
Supplemental schedule of cash flow information: | |||
Cash paid for income taxes | $ 193 | $ 225 | $ 120 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Organization and Summary of Significant Accounting Policies [Abstract] | |
Organization and Summary of Significant Accounting Policies | Note 1. Organization and Summary of Significant Accounting Policies Nature of Operations Support.com, Inc. (“Support.com”, “the Company”, “We” or “Our”), was incorporated in the state of Delaware on December 3, 1997. Our common stock trades on the Nasdaq Global Select Market (“Nasdaq”) under the symbol “SPRT.” Support.com is a leading provider of cloud-based software and services that enable technology support for a connected world. Our technology support services programs help leading brands create new revenue streams and deepen customer relationships. We offer turnkey, outsourced support services for service providers, retailers and technology companies. Our technology support services 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, wireless network set-up, and home security and automation system support. Our Support.com Cloud offering (Nexus) is a SaaS solution for companies to optimize support interactions with their customers using their own or third party support personnel. The solution enables companies to quickly resolve complex technology issues for their customers, boosting agent productivity and dramatically improving the customer experience. Basis of Presentation The consolidated financial statements include the accounts of Support.com and its wholly owned foreign subsidiaries. All intercompany transactions and balances have been eliminated. In June 2009, we sold our legacy Enterprise software business to Consona Corporation. Therefore, our audited consolidated financial statements and accompanying notes reflect the Enterprise business as a discontinued operation for all periods presented in accordance with ASC 360, Accounting for the Impairment or Disposal of Long-Lived Assets. Foreign Currency Translation The functional currency of our foreign subsidiaries is generally the local currency. Assets and liabilities of our wholly owned foreign subsidiaries are translated from their respective functional currencies at exchange rates in effect at the balance sheet date, and revenues and expenses are translated at average exchange rates prevailing during the year. Any material resulting translation adjustments are reflected as a separate component of stockholders’ equity in accumulated other comprehensive income (loss). Realized foreign currency transaction gains (losses) were not material during the years ended December 31, 2015, 2014, and 2013. 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 consolidated financial statements and accompanying notes. The accounting estimates that require management’s most significant, difficult and subjective judgments include revenue recognition, the valuation of investments, the assessment of recoverability of intangible assets and their estimated useful lives, the assessment of recoverability of goodwill and indefinite-lived intangible assets, the valuation and recognition of stock-based compensation expense and the recognition and measurement of current and deferred income tax assets and liabilities. Actual results could differ materially from these estimates. 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 balance sheet. 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. Trade Accounts Receivable and Allowance for Doubtful Accounts Trade accounts receivable are recorded at the invoiced amount. 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. Our allowances are made based on a specific review of all significant outstanding invoices. For those invoices not specifically provided for, allowances 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. The following table summarizes the allowance for doubtful accounts as of December 31, 2015, 2014, and 2013 (in thousands): Balance at Beginning of Period Adjustments to Costs and Expenses Write- offs Balance at End of Period Allowance for doubtful accounts: Year ended December 31, 2013 $ 2 $ 1 $ (3 ) $ — Year ended December 31, 2014 $ — $ 12 $ (10 ) $ 2 Year ended December 31, 2015 $ 2 $ 29 $ (25 ) $ 6 As of December 31, 2015, Comcast and Office Depot accounted for approximately 73% and 13%, respectively, of our total accounts receivable. As of December 31, 2014, Comcast accounted for 80% of our total accounts receivable. No other customers accounted for 10% or more of our total accounts receivable as of December 31, 2015 and 2014. 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 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 consolidated balance sheets and in the consolidated statements of comprehensive income (loss). 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 December 31, 2015, the Company evaluated its unrealized 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 December 31, 2015 and 2014, the estimated fair value of cash, cash equivalents and investments was $65.7 million and $73.8 million, respectively. The following is a summary of cash, cash equivalents and investments at December 31, 2015 and 2014 (in thousands): For the Year Ended December 31, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash $ 8,486 $ — $ — $ 8,486 Money market fund 19,112 — — 19,112 Certificates of deposit 2,980 — (1 ) 2,979 Commercial paper 996 — — 996 Corporate notes and bonds 31,255 — (83 ) 31,172 U.S. government agency securities 2,996 — (7 ) 2,989 $ 65,825 $ — $ (91 ) $ 65,734 Classified as: Cash and cash equivalents $ 27,598 $ — $ — $ 27,598 Short-term investments 38,227 — (91 ) 38,136 $ 65,825 $ — $ (91 ) $ 65,734 For the Year Ended December 31, 2014 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash $ 9,572 $ — $ — $ 9,572 Money market fund 9,859 — — 9,859 Certificates of deposit 3,600 — (5 ) 3,595 Commercial paper 2,996 — — 2,996 Corporate notes and bonds 45,819 — (48 ) 45,771 U.S. government agency securities 2,000 — — 2,000 $ 73,846 $ — $ (53 ) $ 73,793 Classified as: Cash and cash equivalents $ 23,354 $ — $ — $ 23,354 Short-term investments 50,492 — (53 ) 50,439 $ 73,846 $ — $ (53 ) $ 73,793 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): December 31, 2015 2014 Due within one year $ 23,588 $ 41,449 Due within two years 14,548 8,990 $ 38,136 $ 50,439 We determined that the gross unrealized losses on our available-for-sale investments as of December 31, 2015 are temporary in nature. The fair value of our available-for-sale securities at December 31, 2015 and 2014 reflects a net unrealized loss of $91,000 and $53,000, respectively. There were no net realized gains (losses) on available-for-sale securities in the years ended December 31, 2015 and 2014. The cost of securities sold is based on the specific identification method. The following table sets forth the unrealized losses for the Company’s available-for-sale investments as of December 31, 2015 and 2014 (in thousands): As of December 31, 2015 In Loss Position Less Than 12 Months In Loss Position More Than 12 Months Total In Loss Position Description Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Certificate of deposits $ 1,439 $ (1 ) $ 240 $ — $ 1,679 $ (1 ) Corporate notes and bonds 20,949 (24 ) 11,218 (59 ) 32,167 (83 ) U.S. government agency securities — — 2,989 (7 ) 2,989 (7 ) Total $ 22,388 $ (25 ) $ 14,447 $ (66 ) $ 36,835 $ (91 ) As of December 31, 2014 In Loss Position Less Than 12 Months In Loss Position More Than 12 Months Total In Loss Position Description Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Certificate of deposits $ 1,679 $ (1 ) $ 1,196 $ (4 ) $ 2,875 $ (5 ) Corporate notes and bonds 35,364 (29 ) 7,794 (19 ) 43,158 (48 ) Total $ 37,043 $ (30 ) $ 8,990 $ (23 ) $ 46,033 $ (53 ) Property and Equipment Property and equipment are stated at cost, less accumulated depreciation which is determined using the straight-line method over the estimated useful lives of two years for computer equipment and software, three years for furniture and fixtures, and the shorter of the estimated useful lives or the lease term for leasehold improvements. Repairs and maintenance costs are expensed as they are incurred. Goodwill We test goodwill for impairment annually on September 30 and whenever events or changes in circumstances indicate that the carrying value of the asset may not be recoverable in accordance with Accounting Standards Codification (“ASC”) 350, Intangibles - Goodwill and Other. For the quarter ended June 30, 2015, based on various quantitative and qualitative factors which included, among others, the continuing decline in the Company’s market capitalization, the Company determined that sufficient indicators existed warranting a review to determine if the fair value of its single reporting unit had been reduced to below its carrying value. As a result, the Company performed goodwill impairment testing using the required two-step process. The Company determined the fair value of its single reporting unit by using a weighted combination of income-based approach and market-based approach, as this combination was deemed the most indicative of the Company’s fair value in an orderly transaction between market participants. Under the income-based approach, the Company used a discounted cash flow methodology which recognizes that current value is premised on the expected receipt of future economic benefits. Indications of value are developed by discounting projected future net cash flows to their present value at a rate that reflects both the current return requirements of the market and the risks inherent in the specific investment. The discounted cash flow methodology requires significant judgment by management in selecting an appropriate discount rate, terminal growth rate, weighted average cost of capital, and projection of future net cash flows, which are inherently uncertain. The inputs and assumptions used in this test are classified as Level 3 inputs within the fair value hierarchy. Due to these significant judgments, the fair value of the Company’s single reporting unit determined in connection with the goodwill impairment test may not necessarily be indicative of the actual value that would be recognized in a future transaction. Under the market-based approach, the Company considered its market capitalization and estimated control premium which was based on a review of comparative market transactions. The result of the Company’s step one test indicated that the carrying value of the Company’s single reporting unit exceeded its estimated fair value. Accordingly, the Company performed the second step test and concluded that its goodwill was fully impaired and thus recorded a non-cash impairment charge of $14.2 million during the quarter ended June 30, 2015. The goodwill impairment charge was reported as a separate line item in the consolidated statements of operations. The tax benefit associated with the goodwill impairment charge was $1.3 million. The goodwill impairment charge and the associated tax benefit are non-cash in nature and do not affect the Company’s current or future liquidity. Long-Lived Assets We record purchased identifiable intangible assets at fair value. Useful life is estimated as the period over which the identifiable intangible assets are expected to contribute directly or indirectly to the future cash flows of the Company. As we do not believe that we can reliably determine a pattern by which the economic benefits of these identifiable intangible assets will be consumed, management adopted straight-line amortization in accordance with ASC 350. The original cost is amortized on a straight-line basis over the estimated useful life of each identifiable intangible asset. The Company assesses its long-lived assets, which includes property and equipment and identifiable intangible assets, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable in accordance with ASC 360, Property, Plant and Equipment - Impairment or Disposal of Long-Lived Assets. 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 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 years ended December 31, 2015, 2014 and 2013, services breakage revenue accounted for less than 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 Support.com cloud-based software (Nexus). In such arrangements, customers receive a right to use our Support.com Cloud (Nexus) in their own technology support organizations. We license our cloud-based software using a 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 our cloud-based software. Currently, revenues from implementation services are recognized ratably over the customer life which is estimated as the term of the arrangement once the Support.com Cloud (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. Research and Development Research and development expenditures are charged to operations as they are incurred. Software Development Costs Based on our product development process, technological feasibility is established on the completion of a working model. The Company determined that technological feasibility is reached shortly before the product is ready for general release and therefore development costs incurred have been insignificant. Accordingly, we have charged all such costs to research and development expense in the period in which they were incurred in the consolidated statements of operations. Purchased Technology for Internal Use We capitalize costs related to software that we license and incorporate into our product and service offerings or develop for internal use. In July 2009, we acquired purchased technology for $350,000 and recorded amortization expense related to this technology of $62,000 in 2013. This technology was fully amortized at December 31, 2013. Advertising Costs Advertising costs are recorded as sales and marketing expense in the period in which they are incurred. Advertising expense was $1.2 million, $2.2 million, and $9.2 million for the years ended December 31, 2015, 2014, and 2013, respectively. 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 restricted stock units (“RSUs”) using the treasury stock method when dilutive. We excluded outstanding weighted average stock options of 4.2 million, 4.0 million and 1.5 million for the years ended December 31, 2015, 2014 and 2013, respectively, 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 years ended December 31, 2015 and 2014, 86,000 and 150,000 outstanding options and RSUs were also excluded from the computation of diluted loss per share since their effect would have been anti-dilutive. Pursuant to approval by the Company's Compensation Committee, the Company issued 475,000 stock options to certain key executives on February 09, 2016. These stock options were not included in the computation of the basic and diluted earnings (loss) per share for the year ended December 31, 2015 because they were not outstanding during this period. The following table sets forth the computation of basic and diluted net earnings (loss) per share (in thousands, except per share amounts): Year Ended December 31, 2015 2014 2013 Net income (loss) (27,041 ) $ (3,483 ) $ 10,383 Basic: Weighted-average shares of common stock outstanding 54,548 53,834 51,553 Shares used in computing basic net earnings (loss) per share 54,548 53,834 51,553 Basic net earnings (loss) per share $ (0.50 ) $ (0.06 ) $ 0.20 Diluted: Weighted-average shares of common stock outstanding 54,548 53,834 51,553 Add: Common equivalent shares outstanding — — 2,272 Shares used in computing diluted net earnings (loss) per share 54,548 53,834 53,825 Diluted net earnings (loss) per share $ (0.50 ) $ (0.06 ) $ 0.19 Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss, which relate entirely to accumulated foreign currency translation losses associated with our foreign subsidiaries and unrealized losses on investments, consisted of the following (in thousands): Foreign Currency Translation Losses Unrealized Losses on Investments Total Balance as of December 31, 2013 (1,858 ) (16 ) (1,874 ) Current-period other comprehensive loss (117 ) (37 ) (154 ) Balance as of December 31, 2014 $ (1,975 ) $ (53 ) $ (2,028 ) Current-period other comprehensive loss (236 ) (38 ) (274 ) Balance as of December 31, 2015 $ (2,211 ) $ (91 ) $ (2,302 ) Realized gains/losses on investments reclassified from accumulated other comprehensive loss are reported as interest income and other, net in our consolidated statements of operations. The amounts noted in the consolidated statements of comprehensive loss are shown before taking into account the related income tax impact. The income tax effect allocated to each component of other comprehensive income for each of the periods presented is not significant. Stock-Based Compensation We apply the provisions of ASC 718, Compensation - Stock Compensation, Determining Fair Value of Share-Based Payments Valuation and Attribution Method: Stock-based compensation expense for service-based stock options and employee stock purchase plan (“ESPP”) is estimated at the date of grant based on the fair value of awards using the Black-Scholes-Merton Monte-Carlo Risk-free Interest Rate: We base our risk-free interest rate on the yield currently available on U.S. Treasury zero coupon issues for the expected term of the stock options. Expected Term: Our expected term represents the period that our stock options are expected to be outstanding and is determined based on historical experience of similar stock options considering the contractual terms of the stock options, vesting schedules and expectations of future employee behavior. Expected Volatility: Our expected volatility represents the amount by which the stock price is expected to fluctuate throughout the period that the stock option is outstanding. The expected volatility is based on the historical volatility of the Company’s stock. Expected Dividend: We use a dividend yield of zero, as we have never paid cash dividends and do not expect to pay dividends in the future. The fair value of our stock-based awards was estimated using the following weighted average assumptions for the years ended December 31, 2015, 2014, and 2013: Stock Option Plan Employee Stock Purchase Plan 2015 2014 2013 2015 2014 2013 Risk-free interest rate 1.2 % 1.6 % 0.9 % 0.2 % 0.1 % 0.1 % Expected term (in years) 3.8 5.1 3.7 0.5 0.5 0.5 Volatility 53.9 % 57.3 % 57.5 % 41.2 % 49.1 % 48.4 % Expected dividend 0 % 0 % 0 % 0 % 0 % 0 % Weighted average grant-date fair value $ 0.68 $ 1.17 $ 2.02 $ 0.34 $ 0.64 $ 1.24 We recorded the following stock-based compensation expense for the fiscal years ended December 31, 2015, 2014, and 2013 (in thousands): For the Year Ended December 31, 2015 2014 2013 Stock-based compensation expense related to grants of: Stock options $ 989 $ 1,110 $ 1,642 ESPP 65 110 106 RSU 1,860 1,654 1,733 $ 2,914 2,874 $ 3,481 Stock-based compensation expense recognized in: Cost of service $ 234 $ 267 $ 332 Cost of software and others 10 14 12 Research and development 589 479 766 Sales and marketing 381 413 412 General and administrative 1,700 1,701 1,959 $ 2,914 $ 2,874 $ 3,481 Cash proceeds from the issuance of common stock net of repurchase of common stock were $26,000, $1.1 million, and $6.9 million for the years ended December 31, 2015, 2014, and 2013, respectively. No income tax benefit was realized from stock option exercises during the year ended December 31, 2015. An income tax benefit (charge) of ($8,000) and $34,000 was realized from stock option exercises during the years ended December 31, 2014 and 2013, respectively. In accordance with ASC 718, we present excess tax benefits from the exercise of stock options, if any, as net cash generated in financing activities. Income Taxes Income taxes are accounted for under the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, and operating losses and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be reversed or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the consolidated statements of operations in the period that includes the enactment date. A valuation allowance is recorded to reduce the carrying amounts of deferred tax assets, if it is more likely than not, that such assets will not be realized. 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 partnerships, 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 December 31, 2015, we were not required to make any payment resulting from infringement claims asserted against our customers and have not recorded any related accruals. Fair Value Measurements ASC 820, Fair Value Measurements and Disclosures, • 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 December 31, 2015 and 2014 (in thousands): As of December 31, 2015 Level |
Warrants
Warrants | 12 Months Ended |
Dec. 31, 2015 | |
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 the final tranche expired on March 31, 2014 due to the termination of the Customer Agreement on such date. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property and Equipment [Abstract] | |
Property and Equipment | Note 3. Property and Equipment Property and equipment are stated at cost, less accumulated depreciation, and consist of the following as of December 31, 2015 and 2014 (in thousands): December 31, 2015 2014 Computer equipment and software $ 4,976 $ 4,796 Furniture and office equipment 187 180 Leasehold improvements 359 360 Construction in progress 1,710 — 7,232 5,336 Accumulated depreciation (5,243 ) (4,919 ) $ 1,989 $ 417 Depreciation expense was $324,000, $275,000, and $351,000 for the years ended December 31, 2015, 2014, and 2013, respectively. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Intangible Assets [Abstract] | |
Intangible Assets | Note 4. Intangible Assets Amortization expense related to intangible assets was $1.1 million, $1.1 million, and $1.3 million for the years ended December 31, 2015, 2014 and 2013. 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 intangible asset is tested for impairment annually or more often if events or changes in circumstances indicate that the carrying value may not be recoverable. 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 December 31, 2015 Gross carrying value $ 593 $ 145 $ 641 $ 5,330 $ 760 $ 250 $ 7,719 Accumulated amortization (555 ) (145 ) (545 ) (4,474 ) (706 ) — (6,425 ) Net carrying value $ 38 $ — $ 96 $ 856 $ 54 $ 250 1,294 As of December 31, 2014 Gross carrying value $ 593 $ 145 $ 641 $ 5,330 $ 760 $ 250 $ 7,719 Accumulated amortization (527 ) (145 ) (453 ) (3,582 ) (649 ) — (5,356 ) Net carrying value $ 66 $ — $ 188 $ 1,748 $ 111 $ 250 $ 2,363 The estimated future amortization expense of intangible assets, with the exception of the indefinite-life intangible assets as of December 31, 2015 is as follows (in thousands): Fiscal Year Amount 2016 $ 1,028 2017 16 Total $ 1,044 Weighted average remaining useful life 0.98 years |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | Note 5. Commitments and Contingencies Lease commitments Headquarters office lease. Other facility leases. Total facility rent expense pursuant to all operating lease agreements was $548,000, $550,000, and $602,000 for the years ended December 31, 2015, 2014, and 2013, respectively. As of December 31, 2015, minimum payments due under all non-cancelable lease agreements were as follows (in thousands): Years ending December 31, Operating Leases 2016 $ 588 2017 177 2018 102 2019 110 Thereafter 183 Total minimum lease and principal payments $ 1,160 Legal contingencies 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. 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 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. 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 any pending claims of any type (alone or combined) will materially affect our financial position, results of operations or cash flows. The ultimate outcome of any litigation is uncertain, however, any 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. |
Restructuring Obligations and O
Restructuring Obligations and Other Charges | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring Obligations and Other Charges [Abstract] | |
Restructuring Obligations and Other Charges | Note 6. Restructuring Obligations and Other Charges In the fourth quarter of 2013, the Company implemented a reduction in our work-from-home agent and corporate workforce to reduce our ongoing cost structure. The Company reduced its agent workforce by 210 employees, and its corporate workforce by 15 employees. The affected employees were terminated as of December 30, 2013, with certain corporate employees remaining with the Company for a limited time thereafter. As a result, we recorded a restructuring charge of $317,000 in cost of services, $11,000 in research and development expense, $45,000 in sales and marketing expense and $58,000 in general and administrative expense in the fourth quarter of 2013. The restructuring charge was comprised of employee termination costs. As of December 31, 2013, the balance on this restructuring obligation was $431,000, which we paid in cash during the first quarter of 2014. |
Other Accrued Liabilities
Other Accrued Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
Other Accrued Liabilities [Abstract] | |
Other Accrued Liabilities | Note 7. Other Accrued Liabilities Other accrued liabilities consist of the following (in thousands): As of December 31, 2015 2014 Accrued expenses $ 2,490 $ 2,502 Self-insurance accruals 953 — Customer deposits 570 352 Other accrued liabilities 122 175 Total other accrued liabilities $ 4,135 $ 3,029 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity [Abstract] | |
Stockholders' Equity | Note 8. Stockholders’ Equity Equity Compensation Plan We adopted the amended and restated 2010 Equity and Performance Incentive Plan (the “2010 Plan”), effective as of February 8, 2010. Under the 2010 Plan, the number of shares of Common Stock that may be issued will not exceed in the aggregate 5,000,000 shares of Common Stock plus the number of shares of Common Stock relating to prior awards under the 2000 Omnibus Equity Incentive Plan that expire, are forfeited or are cancelled after the adoption of the 2010 Plan, subject to adjustment as provided in the 2010 Plan. Pursuant to an approval from the Company’s shareholders, the number of shares of Common Stock that may be issued under the 2010 Plan was increased by 2,250,000 shares of Common Stock in May 2013. No grants will be made under the 2010 Plan after the tenth anniversary of its effective date. Under our 2010 Plan, as of December 31, 2015, there were approximately 2.7 million shares available for grant. We adopted the 2014 Inducement Award Plan (the “Inducement Plan”), effective as of May 13, 2014. Under the Inducement Plan, the number of shares of Common Stock that may be issued will not exceed in the aggregate 2,000,000 shares of Common Stock. Under our Inducement Plan, as of December 31, 2015, there were approximately 475,000 shares available for grant. Stock Options The following tables represent stock option activity for the years ended December 31, 2015, 2014, and 2013: Number of Shares Weighted Average Exercise Price per Share Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Outstanding options at December 31, 2012 9,529,597 $ 3.05 3.63 $ 12,595 Granted 557,750 $ 4.74 Exercised (4,266,423 ) $ 2.52 Forfeited (438,533 ) $ 4.27 Outstanding options at December 31, 2013 5,382,391 $ 3.55 3.66 $ 4,039 Granted 1,492,750 $ 2.23 Exercised (376,804 ) $ 2.32 Forfeited (2,982,300 ) $ 3.50 Outstanding options at December 31, 2014 3,516,037 $ 3.16 6.28 $ 3 Granted 892,155 $ 1.63 Exercised 0 — Forfeited (738,723 ) $ 3.40 Outstanding options at December 31, 2015 3,669,469 $ 2.74 6.66 $ 0 Options vested and expected to vest 3,534,092 $ 2.76 6.58 $ 0 Exercisable at December 31, 2015 2,019,461 $ 3.16 5.02 $ 0 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 December 31, 2015, 2014, and 2013. This amount will change based on the fair market value of our stock. The total aggregate intrinsic value of options exercised under our stock option plans was $0, $71,000, and $8.9 million for the years ended December 31, 2015, 2014, and 2013, respectively. The total fair value of options vested during 2015, 2014, and 2013 was $1.0 million, $845,000, and $1.7 million, respectively. 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. 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 his 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. At December 31, 2015, there was $1.2 million of unrecognized compensation cost related to stock options which is expected to be recognized over a weighted average period of 2.02 years. 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 a new Employee Stock Purchase Plan 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. A total of 141,752 shares, 117,533 shares, and 79,221 shares were issued under the ESPP during the years ended December 31, 2015, 2014 and 2013, respectively. As of December 31, 2015, approximately 541,561 shares remain available for grant under the ESPP. Restricted Stock Units The following table represents RSU activity for the years ended December 31, 2015 and 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 964,091 $ 2.36 Released (488,150 ) $ 4.72 Forfeited (670,953 ) $ 4.80 Outstanding RSUs at December 31, 2014 1,463,834 $ 3.51 1.56 $ 3,067 Awarded 1,121,063 $ 1.54 Released (554,484 ) $ 3.57 Forfeited (332,516 ) $ 3.23 Outstanding RSUs at December 31, 2015 1,697,897 $ 2.25 1.41 $ 1,715 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. These RSUs vest upon the first anniversary of the grant date. On August 5, 2013, pursuant to approval by the Company’s Compensation Committee, the Company issued 725,000 RSUs to its corporate employees. These RSUs vest annually in three equal tranches over three years. On May 23, 2013, the Board of Directors of the Company approved, based on recommendations of the Compensation Committee, a grant of 48,851 RSUs to non-employee directors. These RSUs vest upon the first anniversary of the grant date. During the first quarter of 2013, the Company’s Compensation Committee approved the grant of RSUs to certain key executives. The RSUs granted to these executives included (i) 249,750 time-based RSUs that vest over a required service period of three years, and (ii) 399,750 performance-based RSUs contingent upon a required service period of three years and as well as the Company’s achievement of specified annual performance targets for fiscal year 2013. We measured the grant-date fair value of the performance-based RSUs based upon the closing price of the Company’s common stock on the Nasdaq as of the grant date. We expensed the fair value of the performance-based RSUs that were probable of being earned based on our forecasted annual performance for fiscal year 2013. At December 31, 2015, there was $2.7 million of unrecognized compensation cost related to RSUs which is expected to be recognized over a weighted average period of 2.34 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 December 31, 2015, 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 pre-approval from its Board of Directors. Treasury Stock The Board of Directors has given the Company the general authorization to repurchase shares of its common stock to satisfy withholding tax obligations related to vested RSUs granted to certain key executives and non-employee directors. The Company repurchased 98,836 shares at aggregate costs of approximately $131,000 for the year ended December 31, 2015 to satisfy withholding taxes related to stock-based compensation. 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 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 consolidated balance sheets. Stockholder Rights Agreement On October 13, 2015, the Board of Directors adopted a short-term stockholder rights agreement and, pursuant thereto, authorized and declared a dividend distribution of one right for each outstanding share of our common stock, par value $0.0001 per share, of the Company to stockholders of record at the close of business on October 30, 2015. Each right, when exercisable, entitles the registered holder to purchase from the Company one one-thousandth of a share of the Company’s a newly designated Series A Junior Participating Preferred Stock, par value $0.0001 per share, having economic and voting terms similar to the Company’s common stock, in that, when issued, each such one one-thousandth of a share receives the voting rights of one share of common stock, at an exercise price of $2.25 per one right, subject to adjustment. When issued, the Series A Junior Participating Preferred Stock has certain liquidation preferences upon liquidation, dissolution or winding up of the Company compared to the Company’s common stock. Subject to certain exceptions specified in the rights agreement, the rights will separate from our common stock and become exercisable following (i) the 10th business day (or such later date as may be determined by the Board of Directors) after the public announcement that a person or a group of related persons has acquired beneficial ownership of 15% or more of our common stock, or (ii) the 10th business day (or such later date as may be determined by the Board) after a person or a group of related persons announce or commence a tender or exchange offer that would result in ownership of 15% or more of our common stock by a person or a group of related persons. In that situation, each holder of a right (other than the acquiring person or group, whose rights will become void and will not be exercisable) will have the right to purchase, upon payment of the exercise price, a number of shares of the Company’s common stock having a market value of twice such price. In addition, if the Company is acquired in a merger or other business combination by an acquiring person or one of its affiliates after such acquiring person acquires 15% or more of the Company’s common stock, each holder of the right will thereafter have the right to purchase, upon payment of the exercise price, a number of shares of common stock of the acquiring person having a market value of twice such price. The acquiring person or group will not be entitled to exercise these rights. Until the rights become exercisable, they will not be evidenced by separate certificates and will trade automatically with shares of the Company’s common stock. The rights issued pursuant to the rights agreement expire at or prior to the earlier of (i) October 10, 2016 or (ii) the redemption or exchange of the rights as described in the rights agreement. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Taxes [Abstract] | |
Income Taxes | Note 9. Income Taxes The components of our gain (loss) before income taxes are as follows (in thousands): Year Ended December 31, 2015 2014 2013 United States $ (25,754 ) $ (3,412 ) $ 10,513 Foreign (2,280 ) 556 608 Total $ (28,034 ) $ (2,856 ) $ 11,121 Gain from discontinued operations, before income taxes — — — Gain (loss) from continuing operations, before income taxes $ (28,034 ) $ (2,856 ) $ 11,121 The provision for income taxes from continuing operations consisted of the following (in thousands): Year Ended December 31, Current: 2015 2014 2013 Federal $ — $ — $ — State 23 34 132 Foreign 179 380 221 Total Current $ 202 $ 414 $ 353 Deferred Federal $ (1,119 ) $ 265 $ 265 State (84 ) 19 24 Foreign 36 42 130 Total Deferred $ (1,167 ) 326 419 Total provision for income taxes $ (965 ) $ 740 $ 772 The provision for income taxes is comprised of estimates of current taxes due in domestic and foreign jurisdictions. The reconciliation of the Federal statutory income tax rate to our effective income tax rate is as follows (in thousands): Year Ended December 31, 2015 2014 2013 Provision at Federal statutory rate $ (9,812 ) $ (1,000 ) $ 3,900 State taxes (60 ) 53 156 Permanent differences/other 1,370 633 520 Stock-based compensation 762 2,311 1,113 Federal valuation allowance (used) provided 6,775 (1,257 ) (4,917 ) Provision for income taxes $ (965 ) $ 740 $ 772 Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our deferred tax assets and liabilities are as follows (in thousands): December 31, 2015 2014 Deferred Tax Assets Fixed assets $ 163 $ 165 Deferred revenue 28 19 Accruals and reserves 428 649 Stock options 1,706 1,663 Net operating loss carryforwards 44,863 42,854 Federal and state credits 3,323 3,327 Foreign credits 152 185 Intangible assets 4,259 1,208 Research and development expense 2,539 — Gross deferred tax assets 57,461 50,070 Valuation allowance (57,245 ) (49,679 ) Total deferred tax assets 216 391 Deferred Tax Liabilities: Intangible assets 0 (1,302 ) Total deferred tax liability 0 (1,302 ) Net deferred tax asset/liabilities 216 $ (911 ) ASC 740, Income Taxes Based on management’s review of both positive and negative evidence, which includes the historical operating performance of our Canadian subsidiary, the Company has concluded that it is more likely than not that the Company will be able to realize a portion of the Company’s Canadian deferred tax assets. Therefore, the Company has a partial valuation allowance on Canadian deferred tax assets. There is no valuation allowance against the Company’s Indian deferred tax assets. The Company reassesses the need for its valuation allowance on a quarterly basis. Based on management’s review discussed above, the realization of deferred tax assets is dependent on improvements over present levels of consolidated pre-tax income. Until the Company is consistently profitable in the U.S., it will not realize its deferred tax assets. Deferred income taxes have not been provided on the cumulative undistributed earnings of foreign subsidiaries. The amount of such earnings at December 31, 2015 was $1.6 million. These earnings have been permanently reinvested and the Company does not plan to initiate any action that would precipitate the payment of income tax thereon. It is not practicable to estimate the amount of additional tax that might be payable on undistributed foreign earnings. The net valuation allowance increased by approximately $7.6 million and decreased by approximately $2.0 million during the years ended December 31, 2015 and 2014, respectively. As of December 31, 2015, $4.8 million of the valuation allowance against federal and state net operating loss carryforwards relates to the tax benefit of stock option exercises that, when realized, will be recorded as a credit to additional paid in capital rather than as a reduction of the provision for income taxes. As of December 31, 2015, the Company had Federal and state net operating loss carryforwards of approximately $126.2 million and $69.4 million, respectively. The Federal net operating loss and credit carryforwards will expire at various dates beginning in 2020 through 2035, if not utilized. The state net operating loss carryforwards will expire at various dates beginning in 2016 through 2035, if not utilized. The Company also had Federal and state research and development credit carryforwards of approximately $2.8 million and $2.4 million, respectively. The federal credits expire in varying amounts between 2020 and 2031. The state research and development credit carryforwards do not have an expiration date. Utilization of net operating loss carryforwards and credits may be subject to substantial annual limitation or could be lost due to the ownership change limitations provided by the Internal Revenue Code of 1986, as amended and similar state provisions. The annual limitation may result in the expiration of net operating losses and credits before utilization. ASC 740-10 clarifies the accounting for uncertainties in income taxes by prescribing guidance for the recognition, de-recognition and measurement in financial statements of income tax positions taken in previously filed tax returns or tax positions expected to be taken in tax returns, including a decision whether to file or not to file in a particular jurisdiction. ASC 740-10 requires the disclosure of any liability created for unrecognized tax benefits. The application of ASC 740-10 may also affect the tax bases of assets and liabilities and therefore may change or create deferred tax liabilities or assets. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): Year Ended December 31, 2015 2014 Balance at beginning of year $ 2,460 $ 2,502 Increase related to prior year tax positions — 2 Decrease related to prior year tax positions (78 ) (89 ) Increase related to current year tax positions 12 181 Settlements with tax authorities — — Decrease related to lapse of statute of limitations (26 ) (136 ) Balance at end of year $ 2,368 $ 2,460 The Company’s total amounts of unrecognized tax benefits that, if recognized, that would affect its tax rate are $0.4 million and $0.5 million as of December 31, 2015 and 2014, respectively. The Company’s policy is to include interest and penalties related to unrecognized tax benefits within its provision for (benefit from) income taxes. The Company had $32,000 accrued for payment of interest and penalties related to unrecognized tax benefits as of December 31, 2015. The Company had $176,000 and $111,000 accrued for payment of interest and penalties related to unrecognized tax benefit as of December 31, 2014 and 2013, respectively. As of December 31, 2015, the amount of recognized tax benefit where it is reasonably possible that a significant change may occur in the next 12 months is approximately $242,000. The change would result from expiration of a statute of limitations in a foreign jurisdiction. The Company files federal, state and foreign income tax returns in jurisdictions with varying statutes of limitations. Due to its net operating loss carryforwards, the Company’s income tax returns generally remain subject to examination by federal and most state authorities. In our foreign jurisdictions, the 2008 through 2014 tax years remain subject to examination by their respective tax authorities. We are required to make periodic filings in the jurisdictions where we are deemed to have a presence for tax purposes. We have undergone audits in the past and have paid assessments arising from these audits. Our India entity was issued notices of income tax assessment pertaining to the 2004-2009 fiscal years. The notices claimed that the transfer price used in our inter-company agreements resulted in understated income in our Indian entity. During the fourth quarter of 2014, the Company re-evaluated the probability of its tax position and recorded an ASC 740-10 reserve of $269,000 related to India transfer pricing. The Company’s tax position related to India has not changed in 2015 aside from an additional $3,000 increase to the reserve representing accrued interest. We may be subject to other income tax assessments in the future. We evaluate estimated expenses that could arise from those assessments in accordance with ASC 740-10 . |
Quarterly Financial Information
Quarterly Financial Information (Unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information (Unaudited) [Abstract] | |
Quarterly Financial Information (Unaudited) | Note 10. Quarterly Financial Information (Unaudited) Selected quarterly financial information for 2015 and 2014 is as follows: Fiscal Year 2015 Quarter Ended Mar. 31, 2015 Jun. 30, 2015 Sept. 30, 2015 Dec. 31, 2015 (in thousands, except per share data) Statements of Operations Data: Revenue: Services 21,875 19,295 16,563 14,418 Software and other 1,282 1,305 1,302 1,293 Total revenue 23,157 20,600 17,865 15,711 Cost of revenue: Cost of services 18,394 15,804 14,357 12,884 Cost of software and other 150 131 128 127 Total cost of revenue 18,544 15,935 14,485 13,011 Gross profit 4,613 4,665 3,380 2,700 Operating expenses: Research and development 1,524 1,930 1,790 1,713 Sales and marketing 2,208 2,089 2,195 2,053 General and administrative 3,060 3,076 3,047 3,828 Amortization of intangible assets and other 268 267 267 267 Goodwill impairment — 14,240 — — Total operating expenses 7,060 21,602 7,299 7,861 Loss from operations (2,447 ) (16,937 ) (3,919 ) (5,161 ) Interest income and other, net 100 106 113 111 Income (loss) from continuing operations, before income taxes (2,347 ) (16,831 ) (3,806 ) (5,050 ) Income tax provision 126 (1,227 ) 60 76 Loss from continuing operations, after income taxes (2,473 ) (15,604 ) (3,866 ) (5,126 ) Income (loss) from discontinued operations, after income taxes 42 (5 ) (5 ) (4 ) Net loss (2,431 ) (15,609 ) (3,871 ) (5,130 ) Basic earnings (loss) per share: Loss from continuing operations, after income taxes (0.05 ) (0.29 ) (0.07 ) (0.09 ) Income (loss) from discontinued operations, after income taxes .01 (0.00 ) (0.00 ) (0.00 ) Basic net loss per share (0.04 ) (0.29 ) (0.07 ) (0.09 ) Diluted earnings (loss) per share: Loss from continuing operations, after income taxes (0.05 ) (0.29 ) (0.07 ) (0.09 ) Income (loss) from discontinued operations, after income taxes .01 (0.00 ) (0.00 ) (0.00 ) Diluted net loss per share (0.04 ) (0.29 ) (0.07 ) (0.09 ) Fiscal Year 2014 Quarter Ended Mar. 31, 2014 Jun. 30, 2014 Sept. 30, 2014 Dec. 31, 2014 (in thousands, except per share data) Statements of Operations Data: Revenue: Services $ 17,052 $ 18,743 $ 20,844 $ 20,633 Software and other 1,561 1,435 1,387 1,336 Total revenue 18,613 20,178 22,231 21,969 Cost of revenue: Cost of services 12,962 14,531 16,020 17,093 Cost of software and other 239 228 189 184 Total cost of revenue 13,201 14,759 16,209 17,277 Gross profit 5,412 5,419 6,022 4,692 Operating expenses: Research and development 1,354 1,057 1,203 1,464 Sales and marketing 1,551 1,688 1,782 2,185 General and administrative 2,663 2,980 2,808 2,869 Amortization of intangible assets and other 273 273 273 272 Total operating expenses 5,841 5,998 6,066 6,790 Loss from operations (429 ) (579 ) (44 ) (2,098 ) Interest income and other, net 78 62 77 77 Income (loss) from continuing operations, before income taxes (351 ) (517 ) 33 (2,021 ) Income tax provision 125 132 128 355 Loss from continuing operations, after income taxes (476 ) (649 ) (95 ) (2,376 ) Income (loss) from discontinued operations, after income taxes (6 ) (6 ) (6 ) 131 Net loss $ (482 ) $ (655 ) $ (101 ) $ (2,245 ) Basic earnings (loss) per share: Loss from continuing operations, after income taxes $ (0.01 ) $ (0.01 ) $ (0.00 ) $ (0.04 ) Income (loss) from discontinued operations, after income taxes (0.00 ) (0.00 ) (0.00 ) 0.00 Basic net loss per share $ (0.01 ) $ (0.01 ) $ (0.00 ) $ (0.04 ) Diluted earnings (loss) per share: Loss from continuing operations, after income taxes $ (0.01 ) $ (0.01 ) $ (0.00 ) $ (0.04 ) Income (loss) from discontinued operations, after income taxes (0.00 ) (0.00 ) (0.00 ) 0.00 Diluted net loss per share $ (0.01 ) $ (0.01 ) $ (0.00 ) $ (0.04 ) |
Organization and Summary of S18
Organization and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Organization and Summary of Significant Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements include the accounts of Support.com and its wholly owned foreign subsidiaries. All intercompany transactions and balances have been eliminated. In June 2009, we sold our legacy Enterprise software business to Consona Corporation. Therefore, our audited consolidated financial statements and accompanying notes reflect the Enterprise business as a discontinued operation for all periods presented in accordance with ASC 360, Accounting for the Impairment or Disposal of Long-Lived Assets. |
Foreign Currency Translation | Foreign Currency Translation The functional currency of our foreign subsidiaries is generally the local currency. Assets and liabilities of our wholly owned foreign subsidiaries are translated from their respective functional currencies at exchange rates in effect at the balance sheet date, and revenues and expenses are translated at average exchange rates prevailing during the year. Any material resulting translation adjustments are reflected as a separate component of stockholders’ equity in accumulated other comprehensive income (loss). Realized foreign currency transaction gains (losses) were not material during the years ended December 31, 2015, 2014, and 2013. |
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 consolidated financial statements and accompanying notes. The accounting estimates that require management’s most significant, difficult and subjective judgments include revenue recognition, the valuation of investments, the assessment of recoverability of intangible assets and their estimated useful lives, the assessment of recoverability of goodwill and indefinite-lived intangible assets, the valuation and recognition of stock-based compensation expense and the recognition and measurement of current and deferred income tax assets and liabilities. Actual results could differ materially from these estimates. |
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 balance sheet. 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. |
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. 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. Our allowances are made based on a specific review of all significant outstanding invoices. For those invoices not specifically provided for, allowances 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. The following table summarizes the allowance for doubtful accounts as of December 31, 2015, 2014, and 2013 (in thousands): Balance at Beginning of Period Adjustments to Costs and Expenses Write- offs Balance at End of Period Allowance for doubtful accounts: Year ended December 31, 2013 $ 2 $ 1 $ (3 ) $ — Year ended December 31, 2014 $ — $ 12 $ (10 ) $ 2 Year ended December 31, 2015 $ 2 $ 29 $ (25 ) $ 6 As of December 31, 2015, Comcast and Office Depot accounted for approximately 73% and 13%, respectively, of our total accounts receivable. As of December 31, 2014, Comcast accounted for 80% of our total accounts receivable. No other customers accounted for 10% or more of our total accounts receivable as of December 31, 2015 and 2014. |
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 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 consolidated balance sheets and in the consolidated statements of comprehensive income (loss). 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 December 31, 2015, the Company evaluated its unrealized 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 December 31, 2015 and 2014, the estimated fair value of cash, cash equivalents and investments was $65.7 million and $73.8 million, respectively. The following is a summary of cash, cash equivalents and investments at December 31, 2015 and 2014 (in thousands): For the Year Ended December 31, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash $ 8,486 $ — $ — $ 8,486 Money market fund 19,112 — — 19,112 Certificates of deposit 2,980 — (1 ) 2,979 Commercial paper 996 — — 996 Corporate notes and bonds 31,255 — (83 ) 31,172 U.S. government agency securities 2,996 — (7 ) 2,989 $ 65,825 $ — $ (91 ) $ 65,734 Classified as: Cash and cash equivalents $ 27,598 $ — $ — $ 27,598 Short-term investments 38,227 — (91 ) 38,136 $ 65,825 $ — $ (91 ) $ 65,734 For the Year Ended December 31, 2014 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash $ 9,572 $ — $ — $ 9,572 Money market fund 9,859 — — 9,859 Certificates of deposit 3,600 — (5 ) 3,595 Commercial paper 2,996 — — 2,996 Corporate notes and bonds 45,819 — (48 ) 45,771 U.S. government agency securities 2,000 — — 2,000 $ 73,846 $ — $ (53 ) $ 73,793 Classified as: Cash and cash equivalents $ 23,354 $ — $ — $ 23,354 Short-term investments 50,492 — (53 ) 50,439 $ 73,846 $ — $ (53 ) $ 73,793 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): December 31, 2015 2014 Due within one year $ 23,588 $ 41,449 Due within two years 14,548 8,990 $ 38,136 $ 50,439 We determined that the gross unrealized losses on our available-for-sale investments as of December 31, 2015 are temporary in nature. The fair value of our available-for-sale securities at December 31, 2015 and 2014 reflects a net unrealized loss of $91,000 and $53,000, respectively. There were no net realized gains (losses) on available-for-sale securities in the years ended December 31, 2015 and 2014. The cost of securities sold is based on the specific identification method. The following table sets forth the unrealized losses for the Company’s available-for-sale investments as of December 31, 2015 and 2014 (in thousands): As of December 31, 2015 In Loss Position Less Than 12 Months In Loss Position More Than 12 Months Total In Loss Position Description Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Certificate of deposits $ 1,439 $ (1 ) $ 240 $ — $ 1,679 $ (1 ) Corporate notes and bonds 20,949 (24 ) 11,218 (59 ) 32,167 (83 ) U.S. government agency securities — — 2,989 (7 ) 2,989 (7 ) Total $ 22,388 $ (25 ) $ 14,447 $ (66 ) $ 36,835 $ (91 ) As of December 31, 2014 In Loss Position Less Than 12 Months In Loss Position More Than 12 Months Total In Loss Position Description Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Certificate of deposits $ 1,679 $ (1 ) $ 1,196 $ (4 ) $ 2,875 $ (5 ) Corporate notes and bonds 35,364 (29 ) 7,794 (19 ) 43,158 (48 ) Total $ 37,043 $ (30 ) $ 8,990 $ (23 ) $ 46,033 $ (53 ) |
Property and Equipment | Property and Equipment Property and equipment are stated at cost, less accumulated depreciation which is determined using the straight-line method over the estimated useful lives of two years for computer equipment and software, three years for furniture and fixtures, and the shorter of the estimated useful lives or the lease term for leasehold improvements. Repairs and maintenance costs are expensed as they are incurred. |
Goodwill | Goodwill We test goodwill for impairment annually on September 30 and whenever events or changes in circumstances indicate that the carrying value of the asset may not be recoverable in accordance with Accounting Standards Codification (“ASC”) 350, Intangibles - Goodwill and Other. For the quarter ended June 30, 2015, based on various quantitative and qualitative factors which included, among others, the continuing decline in the Company’s market capitalization, the Company determined that sufficient indicators existed warranting a review to determine if the fair value of its single reporting unit had been reduced to below its carrying value. As a result, the Company performed goodwill impairment testing using the required two-step process. The Company determined the fair value of its single reporting unit by using a weighted combination of income-based approach and market-based approach, as this combination was deemed the most indicative of the Company’s fair value in an orderly transaction between market participants. Under the income-based approach, the Company used a discounted cash flow methodology which recognizes that current value is premised on the expected receipt of future economic benefits. Indications of value are developed by discounting projected future net cash flows to their present value at a rate that reflects both the current return requirements of the market and the risks inherent in the specific investment. The discounted cash flow methodology requires significant judgment by management in selecting an appropriate discount rate, terminal growth rate, weighted average cost of capital, and projection of future net cash flows, which are inherently uncertain. The inputs and assumptions used in this test are classified as Level 3 inputs within the fair value hierarchy. Due to these significant judgments, the fair value of the Company’s single reporting unit determined in connection with the goodwill impairment test may not necessarily be indicative of the actual value that would be recognized in a future transaction. Under the market-based approach, the Company considered its market capitalization and estimated control premium which was based on a review of comparative market transactions. The result of the Company’s step one test indicated that the carrying value of the Company’s single reporting unit exceeded its estimated fair value. Accordingly, the Company performed the second step test and concluded that its goodwill was fully impaired and thus recorded a non-cash impairment charge of $14.2 million during the quarter ended June 30, 2015. The goodwill impairment charge was reported as a separate line item in the consolidated statements of operations. The tax benefit associated with the goodwill impairment charge was $1.3 million. The goodwill impairment charge and the associated tax benefit are non-cash in nature and do not affect the Company’s current or future liquidity. |
Long-Lived Assets | Long-Lived Assets We record purchased identifiable intangible assets at fair value. Useful life is estimated as the period over which the identifiable intangible assets are expected to contribute directly or indirectly to the future cash flows of the Company. As we do not believe that we can reliably determine a pattern by which the economic benefits of these identifiable intangible assets will be consumed, management adopted straight-line amortization in accordance with ASC 350. The original cost is amortized on a straight-line basis over the estimated useful life of each identifiable intangible asset. The Company assesses its long-lived assets, which includes property and equipment and identifiable intangible assets, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable in accordance with ASC 360, Property, Plant and Equipment - Impairment or Disposal of Long-Lived Assets. |
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 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 years ended December 31, 2015, 2014 and 2013, services breakage revenue accounted for less than 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 Support.com cloud-based software (Nexus). In such arrangements, customers receive a right to use our Support.com Cloud (Nexus) in their own technology support organizations. We license our cloud-based software using a 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 our cloud-based software. Currently, revenues from implementation services are recognized ratably over the customer life which is estimated as the term of the arrangement once the Support.com Cloud (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. |
Research and Development | Research and Development Research and development expenditures are charged to operations as they are incurred. |
Software Development Costs | Software Development Costs Based on our product development process, technological feasibility is established on the completion of a working model. The Company determined that technological feasibility is reached shortly before the product is ready for general release and therefore development costs incurred have been insignificant. Accordingly, we have charged all such costs to research and development expense in the period in which they were incurred in the consolidated statements of operations. |
Purchased Technology for Internal Use | Purchased Technology for Internal Use We capitalize costs related to software that we license and incorporate into our product and service offerings or develop for internal use. In July 2009, we acquired purchased technology for $350,000 and recorded amortization expense related to this technology of $62,000 in 2013. This technology was fully amortized at December 31, 2013. |
Advertising Costs | Advertising Costs Advertising costs are recorded as sales and marketing expense in the period in which they are incurred. Advertising expense was $1.2 million, $2.2 million, and $9.2 million for the years ended December 31, 2015, 2014, and 2013, respectively. |
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 restricted stock units (“RSUs”) using the treasury stock method when dilutive. We excluded outstanding weighted average stock options of 4.2 million, 4.0 million and 1.5 million for the years ended December 31, 2015, 2014 and 2013, respectively, 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 years ended December 31, 2015 and 2014, 86,000 and 150,000 outstanding options and RSUs were also excluded from the computation of diluted loss per share since their effect would have been anti-dilutive. Pursuant to approval by the Company's Compensation Committee, the Company issued 475,000 stock options to certain key executives on February 09, 2016. These stock options were not included in the computation of the basic and diluted earnings (loss) per share for the year ended December 31, 2015 because they were not outstanding during this period. The following table sets forth the computation of basic and diluted net earnings (loss) per share (in thousands, except per share amounts): Year Ended December 31, 2015 2014 2013 Net income (loss) (27,041 ) $ (3,483 ) $ 10,383 Basic: Weighted-average shares of common stock outstanding 54,548 53,834 51,553 Shares used in computing basic net earnings (loss) per share 54,548 53,834 51,553 Basic net earnings (loss) per share $ (0.50 ) $ (0.06 ) $ 0.20 Diluted: Weighted-average shares of common stock outstanding 54,548 53,834 51,553 Add: Common equivalent shares outstanding — — 2,272 Shares used in computing diluted net earnings (loss) per share 54,548 53,834 53,825 Diluted net earnings (loss) per share $ (0.50 ) $ (0.06 ) $ 0.19 |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss, which relate entirely to accumulated foreign currency translation losses associated with our foreign subsidiaries and unrealized losses on investments, consisted of the following (in thousands): Foreign Currency Translation Losses Unrealized Losses on Investments Total Balance as of December 31, 2013 (1,858 ) (16 ) (1,874 ) Current-period other comprehensive loss (117 ) (37 ) (154 ) Balance as of December 31, 2014 $ (1,975 ) $ (53 ) $ (2,028 ) Current-period other comprehensive loss (236 ) (38 ) (274 ) Balance as of December 31, 2015 $ (2,211 ) $ (91 ) $ (2,302 ) Realized gains/losses on investments reclassified from accumulated other comprehensive loss are reported as interest income and other, net in our consolidated statements of operations. The amounts noted in the consolidated statements of comprehensive loss are shown before taking into account the related income tax impact. The income tax effect allocated to each component of other comprehensive income 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, Determining Fair Value of Share-Based Payments Valuation and Attribution Method: Stock-based compensation expense for service-based stock options and employee stock purchase plan (“ESPP”) is estimated at the date of grant based on the fair value of awards using the Black-Scholes-Merton Monte-Carlo Risk-free Interest Rate: We base our risk-free interest rate on the yield currently available on U.S. Treasury zero coupon issues for the expected term of the stock options. Expected Term: Our expected term represents the period that our stock options are expected to be outstanding and is determined based on historical experience of similar stock options considering the contractual terms of the stock options, vesting schedules and expectations of future employee behavior. Expected Volatility: Our expected volatility represents the amount by which the stock price is expected to fluctuate throughout the period that the stock option is outstanding. The expected volatility is based on the historical volatility of the Company’s stock. Expected Dividend: We use a dividend yield of zero, as we have never paid cash dividends and do not expect to pay dividends in the future. The fair value of our stock-based awards was estimated using the following weighted average assumptions for the years ended December 31, 2015, 2014, and 2013: Stock Option Plan Employee Stock Purchase Plan 2015 2014 2013 2015 2014 2013 Risk-free interest rate 1.2 % 1.6 % 0.9 % 0.2 % 0.1 % 0.1 % Expected term (in years) 3.8 5.1 3.7 0.5 0.5 0.5 Volatility 53.9 % 57.3 % 57.5 % 41.2 % 49.1 % 48.4 % Expected dividend 0 % 0 % 0 % 0 % 0 % 0 % Weighted average grant-date fair value $ 0.68 $ 1.17 $ 2.02 $ 0.34 $ 0.64 $ 1.24 We recorded the following stock-based compensation expense for the fiscal years ended December 31, 2015, 2014, and 2013 (in thousands): For the Year Ended December 31, 2015 2014 2013 Stock-based compensation expense related to grants of: Stock options $ 989 $ 1,110 $ 1,642 ESPP 65 110 106 RSU 1,860 1,654 1,733 $ 2,914 2,874 $ 3,481 Stock-based compensation expense recognized in: Cost of service $ 234 $ 267 $ 332 Cost of software and others 10 14 12 Research and development 589 479 766 Sales and marketing 381 413 412 General and administrative 1,700 1,701 1,959 $ 2,914 $ 2,874 $ 3,481 Cash proceeds from the issuance of common stock net of repurchase of common stock were $26,000, $1.1 million, and $6.9 million for the years ended December 31, 2015, 2014, and 2013, respectively. No income tax benefit was realized from stock option exercises during the year ended December 31, 2015. An income tax benefit (charge) of ($8,000) and $34,000 was realized from stock option exercises during the years ended December 31, 2014 and 2013, respectively. In accordance with ASC 718, we present excess tax benefits from the exercise of stock options, if any, as net cash generated in financing activities. |
Income Taxes | Income Taxes Income taxes are accounted for under the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, and operating losses and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be reversed or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the consolidated statements of operations in the period that includes the enactment date. A valuation allowance is recorded to reduce the carrying amounts of deferred tax assets, if it is more likely than not, that such assets will not be realized. |
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 partnerships, 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 December 31, 2015, we were not required to make any payment resulting from infringement claims asserted against our customers and have not recorded any related accruals. |
Fair Value Measurements | Fair Value Measurements ASC 820, Fair Value Measurements and Disclosures, • 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 December 31, 2015 and 2014 (in thousands): As of December 31, 2015 Level 1 Level 2 Level 3 Total Money market funds $ 19,112 $ — $ — $ 19,112 Certificates of deposits — 2,979 — 2,979 Commercial paper — 996 — 996 Corporate notes and bonds — 31,172 — 31,172 U.S. government agency securities — 2,989 — 2,989 Total $ 19,112 $ 38,136 $ — $ 57,248 As of December 31, 2014 Level 1 Level 2 Level 3 Total Money market funds $ 9,859 $ — $ — $ 9,859 Certificates of deposits — 3,595 — 3,595 Commercial paper — 2,996 — 2,996 Corporate notes and bonds — 45,771 — 45,771 U.S. government agency securities — 2,000 — 2,000 Total $ 9,859 $ 54,362 $ — $ 64,221 For short-term investments, 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. |
Segment Information | Segment Information In accordance with ASC 280, Segment Reporting Revenue from customers located outside the United States was less than 1% of total for the years ended December 31, 2015, 2014, and 2013. For the year ended December 31, 2015, Comcast and Office Depot accounted for approximately 68% and 15%, respectively, of our total revenue. For the year ended December 31, 2014, Comcast and Office Depot accounted for 64% and 16%, respectively, of our total revenue. For the year ended December 31, 2013, Comcast accounted for 53% of our total revenue. Had the Office Depot and OfficeMax merger been effective throughout the year ended December 31, 2013, the combined entity would have accounted for 18% of our total revenue. There were no other customers that accounted for 10% or more of our total revenue in any of the periods presented. Long-lived assets are attributed to the geographic location in which they are located. We include in long-lived assets all tangible assets. Long-lived assets by geographic areas are as follows (in thousands): December 31, 2015 2014 United States $ 1,956 $ 376 India 33 41 Total $ 1,989 $ 417 |
Financial Statement Reclassification | Financial Statement Reclassification Certain amounts in the consolidated financial statements for the year ended December 31, 2013, as well as in the condensed consolidated financial statements for the first and second quarters of 2014, have been reclassified to conform to the current period’s presentation. Prior to July 1, 2014, fees from our Support.com Cloud offering (Nexus) 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 Support.com Cloud (Nexus) 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. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In August 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-15, Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) Revenue Recognition In April 2015, the FASB issued ASU 2015-05, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement. In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes (Topic 740), In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), |
Organization and Summary of S19
Organization and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Organization and Summary of Significant Accounting Policies [Abstract] | |
Summary of Allowance for Doubtful Accounts | The following table summarizes the allowance for doubtful accounts as of December 31, 2015, 2014, and 2013 (in thousands): Balance at Beginning of Period Adjustments to Costs and Expenses Write- offs Balance at End of Period Allowance for doubtful accounts: Year ended December 31, 2013 $ 2 $ 1 $ (3 ) $ — Year ended December 31, 2014 $ — $ 12 $ (10 ) $ 2 Year ended December 31, 2015 $ 2 $ 29 $ (25 ) $ 6 |
Summary of Cash, Cash Equivalents and Investments | The following is a summary of cash, cash equivalents and investments at December 31, 2015 and 2014 (in thousands): For the Year Ended December 31, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash $ 8,486 $ — $ — $ 8,486 Money market fund 19,112 — — 19,112 Certificates of deposit 2,980 — (1 ) 2,979 Commercial paper 996 — — 996 Corporate notes and bonds 31,255 — (83 ) 31,172 U.S. government agency securities 2,996 — (7 ) 2,989 $ 65,825 $ — $ (91 ) $ 65,734 Classified as: Cash and cash equivalents $ 27,598 $ — $ — $ 27,598 Short-term investments 38,227 — (91 ) 38,136 $ 65,825 $ — $ (91 ) $ 65,734 For the Year Ended December 31, 2014 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash $ 9,572 $ — $ — $ 9,572 Money market fund 9,859 — — 9,859 Certificates of deposit 3,600 — (5 ) 3,595 Commercial paper 2,996 — — 2,996 Corporate notes and bonds 45,819 — (48 ) 45,771 U.S. government agency securities 2,000 — — 2,000 $ 73,846 $ — $ (53 ) $ 73,793 Classified as: Cash and cash equivalents $ 23,354 $ — $ — $ 23,354 Short-term investments 50,492 — (53 ) 50,439 $ 73,846 $ — $ (53 ) $ 73,793 |
Summary of Estimated Fair Value of Available-For-Sale Securities Classified by 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): December 31, 2015 2014 Due within one year $ 23,588 $ 41,449 Due within two years 14,548 8,990 $ 38,136 $ 50,439 |
Summary of Unrealized Losses for Available-For-Sale Investments | The following table sets forth the unrealized losses for the Company’s available-for-sale investments as of December 31, 2015 and 2014 (in thousands): As of December 31, 2015 In Loss Position Less Than 12 Months In Loss Position More Than 12 Months Total In Loss Position Description Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Certificate of deposits $ 1,439 $ (1 ) $ 240 $ — $ 1,679 $ (1 ) Corporate notes and bonds 20,949 (24 ) 11,218 (59 ) 32,167 (83 ) U.S. government agency securities — — 2,989 (7 ) 2,989 (7 ) Total $ 22,388 $ (25 ) $ 14,447 $ (66 ) $ 36,835 $ (91 ) As of December 31, 2014 In Loss Position Less Than 12 Months In Loss Position More Than 12 Months Total In Loss Position Description Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Certificate of deposits $ 1,679 $ (1 ) $ 1,196 $ (4 ) $ 2,875 $ (5 ) Corporate notes and bonds 35,364 (29 ) 7,794 (19 ) 43,158 (48 ) Total $ 37,043 $ (30 ) $ 8,990 $ (23 ) $ 46,033 $ (53 ) |
Computation of Basic and Diluted Net (Earnings) Loss per Share | The following table sets forth the computation of basic and diluted net earnings (loss) per share (in thousands, except per share amounts): Year Ended December 31, 2015 2014 2013 Net income (loss) (27,041 ) $ (3,483 ) $ 10,383 Basic: Weighted-average shares of common stock outstanding 54,548 53,834 51,553 Shares used in computing basic net earnings (loss) per share 54,548 53,834 51,553 Basic net earnings (loss) per share $ (0.50 ) $ (0.06 ) $ 0.20 Diluted: Weighted-average shares of common stock outstanding 54,548 53,834 51,553 Add: Common equivalent shares outstanding — — 2,272 Shares used in computing diluted net earnings (loss) per share 54,548 53,834 53,825 Diluted net earnings (loss) per share $ (0.50 ) $ (0.06 ) $ 0.19 |
Components of Accumulated Other Comprehensive Loss | The components of accumulated other comprehensive loss, which relate entirely to accumulated foreign currency translation losses associated with our foreign subsidiaries and unrealized losses on investments, consisted of the following (in thousands): Foreign Currency Translation Losses Unrealized Losses on Investments Total Balance as of December 31, 2013 (1,858 ) (16 ) (1,874 ) Current-period other comprehensive loss (117 ) (37 ) (154 ) Balance as of December 31, 2014 $ (1,975 ) $ (53 ) $ (2,028 ) Current-period other comprehensive loss (236 ) (38 ) (274 ) Balance as of December 31, 2015 $ (2,211 ) $ (91 ) $ (2,302 ) |
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 years ended December 31, 2015, 2014, and 2013: Stock Option Plan Employee Stock Purchase Plan 2015 2014 2013 2015 2014 2013 Risk-free interest rate 1.2 % 1.6 % 0.9 % 0.2 % 0.1 % 0.1 % Expected term (in years) 3.8 5.1 3.7 0.5 0.5 0.5 Volatility 53.9 % 57.3 % 57.5 % 41.2 % 49.1 % 48.4 % Expected dividend 0 % 0 % 0 % 0 % 0 % 0 % Weighted average grant-date fair value $ 0.68 $ 1.17 $ 2.02 $ 0.34 $ 0.64 $ 1.24 |
Stock-Based Compensation Expense | We recorded the following stock-based compensation expense for the fiscal years ended December 31, 2015, 2014, and 2013 (in thousands): For the Year Ended December 31, 2015 2014 2013 Stock-based compensation expense related to grants of: Stock options $ 989 $ 1,110 $ 1,642 ESPP 65 110 106 RSU 1,860 1,654 1,733 $ 2,914 2,874 $ 3,481 Stock-based compensation expense recognized in: Cost of service $ 234 $ 267 $ 332 Cost of software and others 10 14 12 Research and development 589 479 766 Sales and marketing 381 413 412 General and administrative 1,700 1,701 1,959 $ 2,914 $ 2,874 $ 3,481 |
Fair Value Hierarchy for Financial Assets 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 December 31, 2015 and 2014 (in thousands): As of December 31, 2015 Level 1 Level 2 Level 3 Total Money market funds $ 19,112 $ — $ — $ 19,112 Certificates of deposits — 2,979 — 2,979 Commercial paper — 996 — 996 Corporate notes and bonds — 31,172 — 31,172 U.S. government agency securities — 2,989 — 2,989 Total $ 19,112 $ 38,136 $ — $ 57,248 As of December 31, 2014 Level 1 Level 2 Level 3 Total Money market funds $ 9,859 $ — $ — $ 9,859 Certificates of deposits — 3,595 — 3,595 Commercial paper — 2,996 — 2,996 Corporate notes and bonds — 45,771 — 45,771 U.S. government agency securities — 2,000 — 2,000 Total $ 9,859 $ 54,362 $ — $ 64,221 |
Summary of Long-Lived Assets by Geographic Areas | We include in long-lived assets all tangible assets. Long-lived assets by geographic areas are as follows (in thousands): December 31, 2015 2014 United States $ 1,956 $ 376 India 33 41 Total $ 1,989 $ 417 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property and Equipment [Abstract] | |
Property, Plant and Equipment | Property and equipment are stated at cost, less accumulated depreciation, and consist of the following as of December 31, 2015 and 2014 (in thousands): December 31, 2015 2014 Computer equipment and software $ 4,976 $ 4,796 Furniture and office equipment 187 180 Leasehold improvements 359 360 Construction in progress 1,710 — 7,232 5,336 Accumulated depreciation (5,243 ) (4,919 ) $ 1,989 $ 417 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Intangible Assets [Abstract] | |
Summary of 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 December 31, 2015 Gross carrying value $ 593 $ 145 $ 641 $ 5,330 $ 760 $ 250 $ 7,719 Accumulated amortization (555 ) (145 ) (545 ) (4,474 ) (706 ) — (6,425 ) Net carrying value $ 38 $ — $ 96 $ 856 $ 54 $ 250 1,294 As of December 31, 2014 Gross carrying value $ 593 $ 145 $ 641 $ 5,330 $ 760 $ 250 $ 7,719 Accumulated amortization (527 ) (145 ) (453 ) (3,582 ) (649 ) — (5,356 ) Net carrying value $ 66 $ — $ 188 $ 1,748 $ 111 $ 250 $ 2,363 |
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 December 31, 2015 is as follows (in thousands): Fiscal Year Amount 2016 $ 1,028 2017 16 Total $ 1,044 Weighted average remaining useful life 0.98 years |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies [Abstract] | |
Future Minimum Lease Payments | As of December 31, 2015, minimum payments due under all non-cancelable lease agreements were as follows (in thousands): Years ending December 31, Operating Leases 2016 $ 588 2017 177 2018 102 2019 110 Thereafter 183 Total minimum lease and principal payments $ 1,160 |
Other Accrued Liabilities (Tabl
Other Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Accrued Liabilities [Abstract] | |
Other Accrued Liabilities | Other accrued liabilities consist of the following (in thousands): As of December 31, 2015 2014 Accrued expenses $ 2,490 $ 2,502 Self-insurance accruals 953 — Customer deposits 570 352 Other accrued liabilities 122 175 Total other accrued liabilities $ 4,135 $ 3,029 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity [Abstract] | |
Summary of Stock Option Activity | The following tables represent stock option activity for the years ended December 31, 2015, 2014, and 2013: Number of Shares Weighted Average Exercise Price per Share Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Outstanding options at December 31, 2012 9,529,597 $ 3.05 3.63 $ 12,595 Granted 557,750 $ 4.74 Exercised (4,266,423 ) $ 2.52 Forfeited (438,533 ) $ 4.27 Outstanding options at December 31, 2013 5,382,391 $ 3.55 3.66 $ 4,039 Granted 1,492,750 $ 2.23 Exercised (376,804 ) $ 2.32 Forfeited (2,982,300 ) $ 3.50 Outstanding options at December 31, 2014 3,516,037 $ 3.16 6.28 $ 3 Granted 892,155 $ 1.63 Exercised 0 — Forfeited (738,723 ) $ 3.40 Outstanding options at December 31, 2015 3,669,469 $ 2.74 6.66 $ 0 Options vested and expected to vest 3,534,092 $ 2.76 6.58 $ 0 Exercisable at December 31, 2015 2,019,461 $ 3.16 5.02 $ 0 |
Summary of Restricted Stock Units Activity | The following table represents RSU activity for the years ended December 31, 2015 and 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 964,091 $ 2.36 Released (488,150 ) $ 4.72 Forfeited (670,953 ) $ 4.80 Outstanding RSUs at December 31, 2014 1,463,834 $ 3.51 1.56 $ 3,067 Awarded 1,121,063 $ 1.54 Released (554,484 ) $ 3.57 Forfeited (332,516 ) $ 3.23 Outstanding RSUs at December 31, 2015 1,697,897 $ 2.25 1.41 $ 1,715 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Taxes [Abstract] | |
Components of Gain (Loss) before Income Taxes | The components of our gain (loss) before income taxes are as follows (in thousands): Year Ended December 31, 2015 2014 2013 United States $ (25,754 ) $ (3,412 ) $ 10,513 Foreign (2,280 ) 556 608 Total $ (28,034 ) $ (2,856 ) $ 11,121 Gain from discontinued operations, before income taxes — — — Gain (loss) from continuing operations, before income taxes $ (28,034 ) $ (2,856 ) $ 11,121 |
Provision for Income Taxes from Continuing Operations | The provision for income taxes from continuing operations consisted of the following (in thousands): Year Ended December 31, Current: 2015 2014 2013 Federal $ — $ — $ — State 23 34 132 Foreign 179 380 221 Total Current $ 202 $ 414 $ 353 Deferred Federal $ (1,119 ) $ 265 $ 265 State (84 ) 19 24 Foreign 36 42 130 Total Deferred $ (1,167 ) 326 419 Total provision for income taxes $ (965 ) $ 740 $ 772 |
Reconciliation of Federal Statutory Income Tax Rate to Effective Income Tax Rate | The reconciliation of the Federal statutory income tax rate to our effective income tax rate is as follows (in thousands): Year Ended December 31, 2015 2014 2013 Provision at Federal statutory rate $ (9,812 ) $ (1,000 ) $ 3,900 State taxes (60 ) 53 156 Permanent differences/other 1,370 633 520 Stock-based compensation 762 2,311 1,113 Federal valuation allowance (used) provided 6,775 (1,257 ) (4,917 ) Provision for income taxes $ (965 ) $ 740 $ 772 |
Components of Deferred Tax Assets and Liabilities | Significant components of our deferred tax assets and liabilities are as follows (in thousands): December 31, 2015 2014 Deferred Tax Assets Fixed assets $ 163 $ 165 Deferred revenue 28 19 Accruals and reserves 428 649 Stock options 1,706 1,663 Net operating loss carryforwards 44,863 42,854 Federal and state credits 3,323 3,327 Foreign credits 152 185 Intangible assets 4,259 1,208 Research and development expense 2,539 — Gross deferred tax assets 57,461 50,070 Valuation allowance (57,245 ) (49,679 ) Total deferred tax assets 216 391 Deferred Tax Liabilities: Intangible assets 0 (1,302 ) Total deferred tax liability 0 (1,302 ) Net deferred tax asset/liabilities 216 $ (911 ) |
Reconciliation of Beginning and Ending Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): Year Ended December 31, 2015 2014 Balance at beginning of year $ 2,460 $ 2,502 Increase related to prior year tax positions — 2 Decrease related to prior year tax positions (78 ) (89 ) Increase related to current year tax positions 12 181 Settlements with tax authorities — — Decrease related to lapse of statute of limitations (26 ) (136 ) Balance at end of year $ 2,368 $ 2,460 |
Quarterly Financial Informati26
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information (Unaudited) [Abstract] | |
Quarterly Financial Information | Selected quarterly financial information for 2015 and 2014 is as follows: Fiscal Year 2015 Quarter Ended Mar. 31, 2015 Jun. 30, 2015 Sept. 30, 2015 Dec. 31, 2015 (in thousands, except per share data) Statements of Operations Data: Revenue: Services 21,875 19,295 16,563 14,418 Software and other 1,282 1,305 1,302 1,293 Total revenue 23,157 20,600 17,865 15,711 Cost of revenue: Cost of services 18,394 15,804 14,357 12,884 Cost of software and other 150 131 128 127 Total cost of revenue 18,544 15,935 14,485 13,011 Gross profit 4,613 4,665 3,380 2,700 Operating expenses: Research and development 1,524 1,930 1,790 1,713 Sales and marketing 2,208 2,089 2,195 2,053 General and administrative 3,060 3,076 3,047 3,828 Amortization of intangible assets and other 268 267 267 267 Goodwill impairment — 14,240 — — Total operating expenses 7,060 21,602 7,299 7,861 Loss from operations (2,447 ) (16,937 ) (3,919 ) (5,161 ) Interest income and other, net 100 106 113 111 Income (loss) from continuing operations, before income taxes (2,347 ) (16,831 ) (3,806 ) (5,050 ) Income tax provision 126 (1,227 ) 60 76 Loss from continuing operations, after income taxes (2,473 ) (15,604 ) (3,866 ) (5,126 ) Income (loss) from discontinued operations, after income taxes 42 (5 ) (5 ) (4 ) Net loss (2,431 ) (15,609 ) (3,871 ) (5,130 ) Basic earnings (loss) per share: Loss from continuing operations, after income taxes (0.05 ) (0.29 ) (0.07 ) (0.09 ) Income (loss) from discontinued operations, after income taxes .01 (0.00 ) (0.00 ) (0.00 ) Basic net loss per share (0.04 ) (0.29 ) (0.07 ) (0.09 ) Diluted earnings (loss) per share: Loss from continuing operations, after income taxes (0.05 ) (0.29 ) (0.07 ) (0.09 ) Income (loss) from discontinued operations, after income taxes .01 (0.00 ) (0.00 ) (0.00 ) Diluted net loss per share (0.04 ) (0.29 ) (0.07 ) (0.09 ) Fiscal Year 2014 Quarter Ended Mar. 31, 2014 Jun. 30, 2014 Sept. 30, 2014 Dec. 31, 2014 (in thousands, except per share data) Statements of Operations Data: Revenue: Services $ 17,052 $ 18,743 $ 20,844 $ 20,633 Software and other 1,561 1,435 1,387 1,336 Total revenue 18,613 20,178 22,231 21,969 Cost of revenue: Cost of services 12,962 14,531 16,020 17,093 Cost of software and other 239 228 189 184 Total cost of revenue 13,201 14,759 16,209 17,277 Gross profit 5,412 5,419 6,022 4,692 Operating expenses: Research and development 1,354 1,057 1,203 1,464 Sales and marketing 1,551 1,688 1,782 2,185 General and administrative 2,663 2,980 2,808 2,869 Amortization of intangible assets and other 273 273 273 272 Total operating expenses 5,841 5,998 6,066 6,790 Loss from operations (429 ) (579 ) (44 ) (2,098 ) Interest income and other, net 78 62 77 77 Income (loss) from continuing operations, before income taxes (351 ) (517 ) 33 (2,021 ) Income tax provision 125 132 128 355 Loss from continuing operations, after income taxes (476 ) (649 ) (95 ) (2,376 ) Income (loss) from discontinued operations, after income taxes (6 ) (6 ) (6 ) 131 Net loss $ (482 ) $ (655 ) $ (101 ) $ (2,245 ) Basic earnings (loss) per share: Loss from continuing operations, after income taxes $ (0.01 ) $ (0.01 ) $ (0.00 ) $ (0.04 ) Income (loss) from discontinued operations, after income taxes (0.00 ) (0.00 ) (0.00 ) 0.00 Basic net loss per share $ (0.01 ) $ (0.01 ) $ (0.00 ) $ (0.04 ) Diluted earnings (loss) per share: Loss from continuing operations, after income taxes $ (0.01 ) $ (0.01 ) $ (0.00 ) $ (0.04 ) Income (loss) from discontinued operations, after income taxes (0.00 ) (0.00 ) (0.00 ) 0.00 Diluted net loss per share $ (0.01 ) $ (0.01 ) $ (0.00 ) $ (0.04 ) |
Organization and Summary of S27
Organization and Summary of Significant Accounting Policies, Trade Accounts Receivable and Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Allowance for Doubtful Accounts [Member] | |||
Summary of allowance for doubtful accounts [Roll Forward] | |||
Balance at beginning of period | $ 2 | $ 0 | $ 2 |
Adjustments to costs and expenses-offs | 29 | 12 | 1 |
Write-offs | (25) | (10) | (3) |
Balance at end of period | $ 6 | $ 2 | $ 0 |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Comcast [Member] | |||
Concentration Risk [Line Items] | |||
Customer concentration risk | 73.00% | 80.00% | |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Office Depot [Member] | |||
Concentration Risk [Line Items] | |||
Customer concentration risk | 13.00% |
Organization and Summary of S28
Organization and Summary of Significant Accounting Policies, Cash, Cash Equivalents and Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract] | ||
Amortized Cost | $ 65,825 | $ 73,846 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (91) | (53) |
Fair Value | 65,734 | 73,793 |
Commercial Paper [Member] | ||
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract] | ||
Amortized Cost | 996 | 2,996 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 996 | 2,996 |
Corporate Notes and Bonds [Member] | ||
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract] | ||
Amortized Cost | 31,255 | 45,819 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (83) | (48) |
Fair Value | 31,172 | 45,771 |
US Government Agency Securities [Member] | ||
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract] | ||
Amortized Cost | 2,996 | 2,000 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (7) | 0 |
Fair Value | 2,989 | 2,000 |
Cash and Cash Equivalents [Member] | ||
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract] | ||
Amortized Cost | 27,598 | 23,354 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 27,598 | 23,354 |
Short-Term Investments [Member] | ||
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract] | ||
Amortized Cost | 38,227 | 50,492 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (91) | (53) |
Fair Value | 38,136 | 50,439 |
Cash [Member] | ||
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract] | ||
Amortized Cost | 8,486 | 9,572 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 8,486 | 9,572 |
Money Market Fund [Member] | ||
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract] | ||
Amortized Cost | 19,112 | 9,859 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 19,112 | 9,859 |
Certificates of Deposit [Member] | ||
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract] | ||
Amortized Cost | 2,980 | 3,600 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (1) | (5) |
Fair Value | $ 2,979 | $ 3,595 |
Organization and Summary of S29
Organization and Summary of Significant Accounting Policies, Investment Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Summary of estimated fair value of available-for-sale securities classified by the stated maturity date [Abstract] | ||
Due within one year | $ 23,588 | $ 41,449 |
Due within two years | 14,548 | 8,990 |
Total fair value | $ 38,136 | $ 50,439 |
Organization and Summary of S30
Organization and Summary of Significant Accounting Policies, Unrealized Loss Position (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Net realized gains (losses) related to available-for-sale securities | $ 0 | $ 0 |
Continuous unrealized loss position, fair value [Abstract] | ||
In loss position less than 12 months | 22,388 | 37,043 |
In loss position more than 12 months | 14,447 | 8,990 |
Total in loss position | 36,835 | 46,033 |
Continuous unrealized loss position, unrealized losses [Abstract] | ||
In loss position less than 12 months | (25) | (30) |
In loss position more than 12 months | (66) | (23) |
Total in loss position | (91) | (53) |
Certificates of Deposits [Member] | ||
Continuous unrealized loss position, fair value [Abstract] | ||
In loss position less than 12 months | 1,439 | 1,679 |
In loss position more than 12 months | 240 | 1,196 |
Total in loss position | 1,679 | 2,875 |
Continuous unrealized loss position, unrealized losses [Abstract] | ||
In loss position less than 12 months | (1) | (1) |
In loss position more than 12 months | 0 | (4) |
Total in loss position | (1) | (5) |
Corporate Notes and Bonds [Member] | ||
Continuous unrealized loss position, fair value [Abstract] | ||
In loss position less than 12 months | 20,949 | 35,364 |
In loss position more than 12 months | 11,218 | 7,794 |
Total in loss position | 32,167 | 43,158 |
Continuous unrealized loss position, unrealized losses [Abstract] | ||
In loss position less than 12 months | (24) | (29) |
In loss position more than 12 months | (59) | (19) |
Total in loss position | (83) | $ (48) |
US Government Agency Securities [Member] | ||
Continuous unrealized loss position, fair value [Abstract] | ||
In loss position less than 12 months | 0 | |
In loss position more than 12 months | 2,989 | |
Total in loss position | 2,989 | |
Continuous unrealized loss position, unrealized losses [Abstract] | ||
In loss position less than 12 months | 0 | |
In loss position more than 12 months | (7) | |
Total in loss position | $ (7) |
Organization and Summary of S31
Organization and Summary of Significant Accounting Policies, Property and Equipment (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Computer Equipment and Software [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 2 years |
Furniture and Fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 3 years |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | Shorter of the estimated useful lives or the lease term for leasehold improvements. |
Organization and Summary of S32
Organization and Summary of Significant Accounting Policies, Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Goodwill [Abstract] | |||||||
Non-cash impairment charge | $ 0 | $ 0 | $ 14,240 | $ 0 | $ 14,240 | $ 0 | $ 0 |
Tax benefit associated with goodwill impairment charge | $ (1,300) |
Organization and Summary of S33
Organization and Summary of Significant Accounting Policies, Revenue Recognition (Details) - Type | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Deferred Revenue Arrangement [Line Items] | |||
Number of types of offerings | 4 | ||
Payment terms, maximum | 90 days | ||
Maximum [Member] | |||
Deferred Revenue Arrangement [Line Items] | |||
Services breakage revenue | 1.00% | 1.00% | 1.00% |
End-User Software Products [Member] | |||
Deferred Revenue Arrangement [Line Items] | |||
Refund period | 30 days | ||
Partnerships [Member] | Minimum [Member] | |||
Deferred Revenue Arrangement [Line Items] | |||
Refund period | 5 days | ||
Partnerships [Member] | Maximum [Member] | |||
Deferred Revenue Arrangement [Line Items] | |||
Refund period | 14 days | ||
Referral Programs and Direct Transactions [Member] | |||
Deferred Revenue Arrangement [Line Items] | |||
Refund period | 5 days |
Organization and Summary of S34
Organization and Summary of Significant Accounting Policies, Intangible Assets (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2009 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||||||
Amortization of intangible assets | $ 267,000 | $ 267,000 | $ 267,000 | $ 268,000 | $ 272,000 | $ 273,000 | $ 273,000 | $ 273,000 | $ 1,069,000 | $ 1,091,000 | $ 1,321,000 | |
Purchased Technology [Member] | ||||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||||||
Finite-lived intangible assets acquired | $ 350,000 | |||||||||||
Amortization of intangible assets | $ 62,000 |
Organization and Summary of S35
Organization and Summary of Significant Accounting Policies, Advertising Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Advertising Expense [Abstract] | |||
Advertising expense | $ 1.2 | $ 2.2 | $ 9.2 |
Organization and Summary of S36
Organization and Summary of Significant Accounting Policies, Earnings (Loss) per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | Feb. 09, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Earnings (loss) per share [Abstract] | ||||||||||||
Net income (loss) | $ (5,130) | $ (3,871) | $ (15,609) | $ (2,431) | $ (2,245) | $ (101) | $ (655) | $ (482) | $ (27,041) | $ (3,483) | $ 10,383 | |
Basic [Abstract] | ||||||||||||
Weighted-average shares of common stock outstanding (in shares) | 54,548,000 | 53,834,000 | 51,553,000 | |||||||||
Shares used in computing basic net earnings (loss) per share (in shares) | 54,548,000 | 53,834,000 | 51,553,000 | |||||||||
Basic net earnings (loss) per share (in dollars per share) | $ (0.09) | $ (0.07) | $ (0.29) | $ (0.04) | $ (0.04) | $ 0 | $ (0.01) | $ (0.01) | $ (0.50) | $ (0.06) | $ 0.20 | |
Diluted [Abstract] | ||||||||||||
Weighted-average shares of common stock outstanding (in shares) | 54,548,000 | 53,834,000 | 51,553,000 | |||||||||
Add: Common equivalent shares outstanding (in shares) | 0 | 0 | 2,272,000 | |||||||||
Shares used in computing diluted net earnings (loss) per share (in shares) | 54,548,000 | 53,834,000 | 53,825,000 | |||||||||
Diluted net earnings (loss) per share (in dollars per share) | $ (0.09) | $ (0.07) | $ (0.29) | $ (0.04) | $ (0.04) | $ 0 | $ (0.01) | $ (0.01) | $ (0.50) | $ (0.06) | $ 0.19 | |
Stock Option [Member] | ||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||||||
Weighted average shares excluded from computation of diluted earnings (loss) per share due to exercise prices above average market value (in shares) | 4,200,000 | 4,000,000 | 1,500,000 | |||||||||
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) | 86,000 | 150,000 | ||||||||||
Subsequent Event [Member] | Stock Option [Member] | Key Executives [Member] | ||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||||||
Shares issued (in shares) | 475,000 |
Organization and Summary of S37
Organization and Summary of Significant Accounting Policies, Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balances | $ 95,721 | $ 95,396 | $ 74,163 |
Current-period other comprehensive loss | (274) | (154) | (373) |
Balances | 71,346 | 95,721 | 95,396 |
Accumulated Other Comprehensive Loss [Member] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balances | (2,028) | (1,874) | (1,501) |
Current-period other comprehensive loss | (274) | (154) | (373) |
Balances | (2,302) | (2,028) | (1,874) |
Foreign Currency Translation Losses [Member] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balances | (1,975) | (1,858) | |
Current-period other comprehensive loss | (236) | (117) | |
Balances | (2,211) | (1,975) | (1,858) |
Unrealized Losses on Investments [Member] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balances | (53) | (16) | |
Current-period other comprehensive loss | (38) | (37) | |
Balances | $ (91) | $ (53) | $ (16) |
Organization and Summary of S38
Organization and Summary of Significant Accounting Policies, Stock-Based Compensation (Details) - $ / shares | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Employee Stock Purchase Plan ("ESPP") [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Requisite service period | 6 months | |||
Weighted average assumptions used to estimate fair value of our stock-based awards [Abstract] | ||||
Risk-free interest rate | 0.20% | 0.10% | 0.10% | |
Expected term | 6 months | 6 months | 6 months | |
Volatility | 41.20% | 49.10% | 48.40% | |
Expected dividend | 0.00% | 0.00% | 0.00% | |
Weighted average grant-date fair value (in dollars per share) | $ 0.34 | $ 0.64 | $ 1.24 | |
Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Requisite service period | 4 years | |||
Weighted average assumptions used to estimate fair value of our stock-based awards [Abstract] | ||||
Risk-free interest rate | 1.20% | 1.60% | 0.90% | |
Expected term | 3 years 9 months 18 days | 5 years 1 month 6 days | 3 years 8 months 12 days | |
Volatility | 53.90% | 57.30% | 57.50% | |
Expected dividend | 0.00% | 0.00% | 0.00% | |
Weighted average grant-date fair value (in dollars per share) | $ 0.68 | $ 1.17 | $ 2.02 | |
Stock Options [Member] | Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Requisite service period | 1 year 10 months 13 days | |||
Stock Options [Member] | Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Requisite service period | 4 years 6 months 7 days | |||
Restricted Stock Units ("RSUs") [Member] | Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Requisite service period | 3 years | |||
Restricted Stock Units ("RSUs") [Member] | Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Requisite service period | 4 years |
Organization and Summary of S39
Organization and Summary of Significant Accounting Policies, Allocation of Stock-Based Compensation Expense (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 2,914,000 | $ 2,874,000 | $ 3,481,000 |
Cost of Services [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 234,000 | 267,000 | 332,000 |
Cost of Software and Others [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 10,000 | 14,000 | 12,000 |
Research and Development [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 589,000 | 479,000 | 766,000 |
Sales and Marketing [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 381,000 | 413,000 | 412,000 |
General and Administrative [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 1,700,000 | 1,701,000 | 1,959,000 |
Employee Stock Purchase Plan ("ESPP") [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 65,000 | 110,000 | 106,000 |
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 989,000 | 1,110,000 | 1,642,000 |
Cash received from exercise of stock options | 26,000 | 1,100,000 | 6,900,000 |
Income tax benefit (charge) from stock options exercised | 0 | (8,000) | 34,000 |
Restricted Stock Units ("RSUs") [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 1,860,000 | $ 1,654,000 | $ 1,733,000 |
Organization and Summary of S40
Organization and Summary of Significant Accounting Policies, Warranties and Indemnifications (Details) | 12 Months Ended |
Dec. 31, 2015 | |
End-User Software Products [Member] | |
Product Warranty Liability [Line Items] | |
Refund period | 30 days |
Partnerships [Member] | Minimum [Member] | |
Product Warranty Liability [Line Items] | |
Refund period | 5 days |
Partnerships [Member] | Maximum [Member] | |
Product Warranty Liability [Line Items] | |
Refund period | 14 days |
Referral Programs and Direct Transactions [Member] | |
Product Warranty Liability [Line Items] | |
Refund period | 5 days |
Organization and Summary of S41
Organization and Summary of Significant Accounting Policies, Fair Value Disclosures (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair value hierarchy for financial assets measured at fair value [Abstract] | ||
Fair value for financial assets | $ 65,734 | $ 73,793 |
Recurring [Member] | Cash Equivalents and Short-Term Investments [Member] | ||
Fair value hierarchy for financial assets measured at fair value [Abstract] | ||
Fair value for financial assets | 57,248 | 64,221 |
Recurring [Member] | Cash Equivalents and Short-Term Investments [Member] | Level 1 [Member] | ||
Fair value hierarchy for financial assets measured at fair value [Abstract] | ||
Fair value for financial assets | 19,112 | 9,859 |
Recurring [Member] | Cash Equivalents and Short-Term Investments [Member] | Level 2 [Member] | ||
Fair value hierarchy for financial assets measured at fair value [Abstract] | ||
Fair value for financial assets | 38,136 | 54,362 |
Recurring [Member] | Cash Equivalents and Short-Term Investments [Member] | Level 3 [Member] | ||
Fair value hierarchy for financial assets measured at fair value [Abstract] | ||
Fair value for financial assets | 0 | 0 |
Recurring [Member] | Cash Equivalents and Short-Term Investments [Member] | Money Market Funds [Member] | ||
Fair value hierarchy for financial assets measured at fair value [Abstract] | ||
Fair value for financial assets | 19,112 | 9,859 |
Recurring [Member] | Cash Equivalents and Short-Term Investments [Member] | Money Market Funds [Member] | Level 1 [Member] | ||
Fair value hierarchy for financial assets measured at fair value [Abstract] | ||
Fair value for financial assets | 19,112 | 9,859 |
Recurring [Member] | Cash Equivalents and Short-Term Investments [Member] | Money Market Funds [Member] | Level 2 [Member] | ||
Fair value hierarchy for financial assets measured at fair value [Abstract] | ||
Fair value for financial assets | 0 | 0 |
Recurring [Member] | Cash Equivalents and Short-Term Investments [Member] | Money Market Funds [Member] | Level 3 [Member] | ||
Fair value hierarchy for financial assets measured at fair value [Abstract] | ||
Fair value for financial assets | 0 | 0 |
Recurring [Member] | Cash Equivalents and Short-Term Investments [Member] | Certificates of Deposits [Member] | ||
Fair value hierarchy for financial assets measured at fair value [Abstract] | ||
Fair value for financial assets | 2,979 | 3,595 |
Recurring [Member] | Cash Equivalents and Short-Term Investments [Member] | Certificates of Deposits [Member] | Level 1 [Member] | ||
Fair value hierarchy for financial assets measured at fair value [Abstract] | ||
Fair value for financial assets | 0 | 0 |
Recurring [Member] | Cash Equivalents and Short-Term Investments [Member] | Certificates of Deposits [Member] | Level 2 [Member] | ||
Fair value hierarchy for financial assets measured at fair value [Abstract] | ||
Fair value for financial assets | 2,979 | 3,595 |
Recurring [Member] | Cash Equivalents and Short-Term Investments [Member] | Certificates of Deposits [Member] | Level 3 [Member] | ||
Fair value hierarchy for financial assets measured at fair value [Abstract] | ||
Fair value for financial assets | 0 | 0 |
Recurring [Member] | Cash Equivalents and Short-Term Investments [Member] | Commercial Paper [Member] | ||
Fair value hierarchy for financial assets measured at fair value [Abstract] | ||
Fair value for financial assets | 996 | 2,996 |
Recurring [Member] | Cash Equivalents and Short-Term Investments [Member] | Commercial Paper [Member] | Level 1 [Member] | ||
Fair value hierarchy for financial assets measured at fair value [Abstract] | ||
Fair value for financial assets | 0 | 0 |
Recurring [Member] | Cash Equivalents and Short-Term Investments [Member] | Commercial Paper [Member] | Level 2 [Member] | ||
Fair value hierarchy for financial assets measured at fair value [Abstract] | ||
Fair value for financial assets | 996 | 2,996 |
Recurring [Member] | Cash Equivalents and Short-Term Investments [Member] | Commercial Paper [Member] | Level 3 [Member] | ||
Fair value hierarchy for financial assets measured at fair value [Abstract] | ||
Fair value for financial assets | 0 | 0 |
Recurring [Member] | Cash Equivalents and Short-Term Investments [Member] | Corporate Notes and Bonds [Member] | ||
Fair value hierarchy for financial assets measured at fair value [Abstract] | ||
Fair value for financial assets | 31,172 | 45,771 |
Recurring [Member] | Cash Equivalents and Short-Term Investments [Member] | Corporate Notes and Bonds [Member] | Level 1 [Member] | ||
Fair value hierarchy for financial assets measured at fair value [Abstract] | ||
Fair value for financial assets | 0 | 0 |
Recurring [Member] | Cash Equivalents and Short-Term Investments [Member] | Corporate Notes and Bonds [Member] | Level 2 [Member] | ||
Fair value hierarchy for financial assets measured at fair value [Abstract] | ||
Fair value for financial assets | 31,172 | 45,771 |
Recurring [Member] | Cash Equivalents and Short-Term Investments [Member] | Corporate Notes and Bonds [Member] | Level 3 [Member] | ||
Fair value hierarchy for financial assets measured at fair value [Abstract] | ||
Fair value for financial assets | 0 | 0 |
Recurring [Member] | Cash Equivalents and Short-Term Investments [Member] | US Government Agency Securities [Member] | ||
Fair value hierarchy for financial assets measured at fair value [Abstract] | ||
Fair value for financial assets | 2,989 | 2,000 |
Recurring [Member] | Cash Equivalents and Short-Term Investments [Member] | US Government Agency Securities [Member] | Level 1 [Member] | ||
Fair value hierarchy for financial assets measured at fair value [Abstract] | ||
Fair value for financial assets | 0 | 0 |
Recurring [Member] | Cash Equivalents and Short-Term Investments [Member] | US Government Agency Securities [Member] | Level 2 [Member] | ||
Fair value hierarchy for financial assets measured at fair value [Abstract] | ||
Fair value for financial assets | 2,989 | 2,000 |
Recurring [Member] | Cash Equivalents and Short-Term Investments [Member] | US Government Agency Securities [Member] | Level 3 [Member] | ||
Fair value hierarchy for financial assets measured at fair value [Abstract] | ||
Fair value for financial assets | $ 0 | $ 0 |
Organization and Summary of S42
Organization and Summary of Significant Accounting Policies, Segment Information, Revenue by Customer (Details) - Segment | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Organization and Summary of Significant Accounting Policies [Abstract] | |||
Number of operating segments | 1 | ||
Customers Outside United States [Member] | Maximum [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues from external customers | 1.00% | 1.00% | 1.00% |
Revenue [Member] | Customer Concentration Risk [Member] | Comcast [Member] | |||
Concentration Risk [Line Items] | |||
Customer concentration risk | 68.00% | 64.00% | 53.00% |
Revenue [Member] | Customer Concentration Risk [Member] | Office Depot [Member] | |||
Concentration Risk [Line Items] | |||
Customer concentration risk | 15.00% | 16.00% | |
Revenue [Member] | Customer Concentration Risk [Member] | Office Depot and OfficeMax [Member] | |||
Concentration Risk [Line Items] | |||
Customer concentration risk | 18.00% |
Organization and Summary of S43
Organization and Summary of Significant Accounting Policies, Long-Lived Assets by Geographic Location (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 1,989 | $ 417 |
United States [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 1,956 | 376 |
India [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 33 | $ 41 |
Warrants (Details)
Warrants (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Class of Warrant or Right [Line Items] | |||||
Warrant-related charges | $ 0 | $ 0 | $ 777 | ||
Comcast [Member] | |||||
Class of Warrant or Right [Line Items] | |||||
Warrants issuable, maximum (in shares) | 975,000 | ||||
Warrants exercise price (in dollars per share) | $ 4.9498 | ||||
Investment warrants expiration period from issuance date | 3 years | ||||
Comcast [Member] | First Tranche [Member] | |||||
Fair value assumptions for warrants issued [Abstract] | |||||
Risk-free interest rate | 0.74% | ||||
Expected term | 3 years | ||||
Volatility | 59.12% | ||||
Expected dividend | 0.00% | ||||
Comcast [Member] | Second Tranche [Member] | |||||
Fair value assumptions for warrants issued [Abstract] | |||||
Risk-free interest rate | 0.74% | ||||
Expected term | 3 years | ||||
Volatility | 59.12% | ||||
Expected dividend | 0.00% | ||||
Comcast [Member] | First Tranche and Second Tranche [Member] | |||||
Class of Warrant or Right [Line Items] | |||||
Common stock issued (in shares) | 490,000 | ||||
Warrants issued (in shares) | 324,000 | 166,000 | |||
Warrant-related charges | $ 777 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property and Equipment, Net, by Type [Abstract] | |||
Property and equipment, gross | $ 7,232 | $ 5,336 | |
Accumulated depreciation | (5,243) | (4,919) | |
Property and equipment, net | 1,989 | 417 | |
Depreciation | 324 | 275 | $ 351 |
Computer Equipment and Software [Member] | |||
Property and Equipment, Net, by Type [Abstract] | |||
Property and equipment, gross | 4,976 | 4,796 | |
Furniture and Office Equipment [Member] | |||
Property and Equipment, Net, by Type [Abstract] | |||
Property and equipment, gross | 187 | 180 | |
Leasehold Improvements [Member] | |||
Property and Equipment, Net, by Type [Abstract] | |||
Property and equipment, gross | 359 | 360 | |
Construction in Progress [Member] | |||
Property and Equipment, Net, by Type [Abstract] | |||
Property and equipment, gross | $ 1,710 | $ 0 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2006 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Intangible Assets [Abstract] | ||||||||||||
Amortization of intangible assets | $ 267,000 | $ 267,000 | $ 267,000 | $ 268,000 | $ 272,000 | $ 273,000 | $ 273,000 | $ 273,000 | $ 1,069,000 | $ 1,091,000 | $ 1,321,000 | |
Indefinite life intangibles acquired | $ 250,000 | |||||||||||
Finite-lived intangible assets [Abstract] | ||||||||||||
Accumulated amortization | (6,425,000) | (5,356,000) | (6,425,000) | (5,356,000) | ||||||||
Net carrying value | 1,044,000 | 1,044,000 | ||||||||||
Indefinite life intangible assets [Abstract] | ||||||||||||
Gross carrying value | 250,000 | 250,000 | 250,000 | 250,000 | ||||||||
Net carrying value | 250,000 | 250,000 | 250,000 | 250,000 | ||||||||
Intangible assets, total [Abstract] | ||||||||||||
Gross carrying value | 7,719,000 | 7,719,000 | 7,719,000 | 7,719,000 | ||||||||
Net carrying value | 1,294,000 | 2,363,000 | 1,294,000 | 2,363,000 | ||||||||
Non-compete [Member] | ||||||||||||
Finite-lived intangible assets [Abstract] | ||||||||||||
Gross carrying value | 593,000 | 593,000 | 593,000 | 593,000 | ||||||||
Accumulated amortization | (555,000) | (527,000) | (555,000) | (527,000) | ||||||||
Net carrying value | 38,000 | 66,000 | 38,000 | 66,000 | ||||||||
Partner Relationships [Member] | ||||||||||||
Finite-lived intangible assets [Abstract] | ||||||||||||
Gross carrying value | 145,000 | 145,000 | 145,000 | 145,000 | ||||||||
Accumulated amortization | (145,000) | (145,000) | (145,000) | (145,000) | ||||||||
Net carrying value | 0 | 0 | 0 | 0 | ||||||||
Customer Base [Member] | ||||||||||||
Finite-lived intangible assets [Abstract] | ||||||||||||
Gross carrying value | 641,000 | 641,000 | 641,000 | 641,000 | ||||||||
Accumulated amortization | (545,000) | (453,000) | (545,000) | (453,000) | ||||||||
Net carrying value | 96,000 | 188,000 | 96,000 | 188,000 | ||||||||
Technology Rights [Member] | ||||||||||||
Finite-lived intangible assets [Abstract] | ||||||||||||
Gross carrying value | 5,330,000 | 5,330,000 | 5,330,000 | 5,330,000 | ||||||||
Accumulated amortization | (4,474,000) | (3,582,000) | (4,474,000) | (3,582,000) | ||||||||
Net carrying value | 856,000 | 1,748,000 | 856,000 | 1,748,000 | ||||||||
Tradenames [Member] | ||||||||||||
Finite-lived intangible assets [Abstract] | ||||||||||||
Gross carrying value | 760,000 | 760,000 | 760,000 | 760,000 | ||||||||
Accumulated amortization | (706,000) | (649,000) | (706,000) | (649,000) | ||||||||
Net carrying value | $ 54,000 | $ 111,000 | $ 54,000 | $ 111,000 |
Intangible Assets, Maturity Sch
Intangible Assets, Maturity Schedule (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Estimated future amortization expense of intangible assets [Abstract] | |
2,016 | $ 1,028 |
2,017 | 16 |
Net carrying value | $ 1,044 |
Weighted average remaining useful life | 11 months 23 days |
Commitments and Contingencies,
Commitments and Contingencies, Operating Lease (Details) | 12 Months Ended | ||
Dec. 31, 2015USD ($)ft² | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Operating Leased Assets [Line Items] | |||
Rent expense | $ 548,000 | $ 550,000 | $ 602,000 |
Minimum payments due under all non-cancelable lease agreements [Abstract] | |||
2,016 | 588,000 | ||
2,017 | 177,000 | ||
2,018 | 102,000 | ||
2,019 | 110,000 | ||
Thereafter | 183,000 | ||
Total minimum lease and principal payments | $ 1,160,000 | ||
Headquarters Office lease [Member] | |||
Operating Leased Assets [Line Items] | |||
Area of lease property | ft² | 21,620 | ||
Lease expiration date | Feb. 18, 2017 |
Commitments and Contingencies49
Commitments and Contingencies, Loss Contingency (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Jun. 30, 2014 | Dec. 31, 2013 | |
Loss Contingencies [Line Items] | ||
Settlement amount | $ (150,000) | |
Pending Litigation [Member] | ||
Loss Contingencies [Line Items] | ||
Interest income and other, net | $ 57,000 |
Restructuring Obligations and50
Restructuring Obligations and Other Charges (Details) | 3 Months Ended | |
Mar. 31, 2014USD ($) | Dec. 31, 2013USD ($)Employee | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring obligation | $ 431,000 | |
Restructuring obligation paid in cash | $ 431,000 | |
Agent Workforce [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Reduction in number of employees | Employee | 210 | |
Corporate Workforce [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Reduction in number of employees | Employee | 15 | |
Cost of Services [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Total restructuring charge | $ 317,000 | |
Research and Development [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Total restructuring charge | 11,000 | |
Sales and Marketing Expense [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Total restructuring charge | 45,000 | |
General and Administrative Expense [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Total restructuring charge | $ 58,000 |
Other Accrued Liabilities (Deta
Other Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Other Accrued Liabilities [Abstract] | ||
Accrued expenses | $ 2,490 | $ 2,502 |
Self-insurance accruals | 953 | 0 |
Customer deposits | 570 | 352 |
Other accrued liabilities | 122 | 175 |
Total other accrued liabilities | $ 4,135 | $ 3,029 |
Stockholders' Equity, Stock Pla
Stockholders' Equity, Stock Plan (Details) - shares | May. 31, 2013 | Dec. 31, 2015 | May. 13, 2014 | Feb. 28, 2010 |
2010 Equity Performance Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares authorized (in shares) | 5,000,000 | |||
Maximum number of additional shares authorized each year (in shares) | 2,250,000 | |||
Shares available for grant (in shares) | 2,700,000 | |||
2010 Equity Performance Incentive Plan [Member] | Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Term of incentive plan | 10 years | |||
2014 Inducement Award Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares authorized (in shares) | 2,000,000 | |||
Shares available for grant (in shares) | 475,000 |
Stockholders' Equity, Stock Opt
Stockholders' Equity, Stock Option (Details) - Stock Options [Member] - USD ($) | 3 Months Ended | 12 Months Ended | |||||
Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2012 | |
Outstanding options, number of shares [Roll Forward] | |||||||
Outstanding options, beginning of period (in shares) | 5,382,391 | 3,516,037 | 5,382,391 | 9,529,597 | |||
Granted (in shares) | 892,155 | 1,492,750 | 557,750 | ||||
Exercised (in shares) | 0 | (376,804) | (4,266,423) | ||||
Forfeited (in shares) | (738,723) | (2,982,300) | (438,533) | ||||
Outstanding options, end of period (in shares) | 3,669,469 | 3,516,037 | 5,382,391 | ||||
Options vested and expected to vest (in shares) | 3,534,092 | ||||||
Exercisable (in shares) | 2,019,461 | ||||||
Outstanding options, weighted average exercise price per share [Roll Forward] | |||||||
Outstanding options, beginning of period (in dollars per share) | $ 3.55 | $ 3.16 | $ 3.55 | $ 3.05 | |||
Granted (in dollars per share) | 1.63 | 2.23 | 4.74 | ||||
Exercised (in dollars per share) | 0 | 2.32 | 2.52 | ||||
Forfeited (in dollars per share) | 3.40 | 3.50 | 4.27 | ||||
Outstanding options, end of period (in dollars per share) | 2.74 | $ 3.16 | $ 3.55 | ||||
Options vested and expected to vest (in dollars per share) | 2.76 | ||||||
Exercisable (in dollars per share) | $ 3.16 | ||||||
Outstanding options, additional disclosures [Abstract] | |||||||
Outstanding options, weighted average remaining contractual term | 6 years 7 months 28 days | 6 years 3 months 11 days | 3 years 7 months 28 days | 3 years 7 months 17 days | |||
Options vested and expected to vest, weighted average remaining contractual term | 6 years 6 months 29 days | ||||||
Exercisable, weighted average remaining contractual term | 5 years 7 days | ||||||
Outstanding options, aggregate intrinsic value | $ 0 | $ 3,000 | $ 4,039,000 | $ 12,595,000 | |||
Options vested and expected to vest, aggregate intrinsic value | 0 | ||||||
Exercisable, aggregate intrinsic value | 0 | ||||||
Options exercised in period, total intrinsic value | 0 | 71,000 | 8,900,000 | ||||
Fair value of options vested | $ 1,000,000 | $ 845,000 | $ 1,700,000 | ||||
Stock options granted (in shares) | 892,155 | 1,492,750 | 557,750 | ||||
Derived service period | 4 years | ||||||
Extension of the post-termination exercise period for outstanding stock option grants | 90 days | ||||||
Compensation cost not yet recognized [Abstract] | |||||||
Unrecognized compensation cost related to stock options | $ 1,200,000 | ||||||
Weighted average period of recognition for unrecognized compensation cost | 2 years 7 days | ||||||
Minimum [Member] | |||||||
Outstanding options, additional disclosures [Abstract] | |||||||
Estimated grant-date fair value (in dollars per share) | $ 1.27 | ||||||
Derived service period | 1 year 10 months 13 days | ||||||
Maximum [Member] | |||||||
Outstanding options, additional disclosures [Abstract] | |||||||
Estimated grant-date fair value (in dollars per share) | $ 1.33 | ||||||
Derived service period | 4 years 6 months 7 days | ||||||
President and Chief Executive Officer [Member] | |||||||
Outstanding options, number of shares [Roll Forward] | |||||||
Granted (in shares) | 750,000 | ||||||
Outstanding options, additional disclosures [Abstract] | |||||||
Stock options granted (in shares) | 750,000 | ||||||
Stock-based compensation expense | $ 193,000 | ||||||
Key Executives [Member] | |||||||
Outstanding options, number of shares [Roll Forward] | |||||||
Granted (in shares) | 112,500 | ||||||
Outstanding options, additional disclosures [Abstract] | |||||||
Stock options granted (in shares) | 112,500 |
Stockholders' Equity, Employee
Stockholders' Equity, Employee Stock Purchase Plan (Details) - shares | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2011 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
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 | 85.00% | |||
Employee Stock Purchase Plan, shares issued (in shares) | 141,752 | 117,533 | 79,221 | |
Employee Stock Purchase Plan ("ESPP") [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Employee Stock Purchase Plan, available for grant (in shares) | 541,561 |
Stockholders' Equity, Restricte
Stockholders' Equity, Restricted Stock Units (Details) $ / shares in Units, $ in Thousands | Jun. 04, 2014shares | May. 16, 2014shares | Aug. 05, 2013shares | May. 23, 2013shares | Mar. 31, 2013shares | Dec. 31, 2015USD ($)Tranche$ / sharesshares | Dec. 31, 2014USD ($)$ / sharesshares | Dec. 31, 2013USD ($)$ / sharesshares |
Restricted Stock Units ("RSUs") [Member] | ||||||||
Restricted stock units, number of shares [Roll Forward] | ||||||||
Outstanding RSUs, beginning of period (in shares) | 1,463,834 | 1,658,846 | ||||||
Awarded (in shares) | 1,121,063 | 964,091 | ||||||
Released (in shares) | (554,484) | (488,150) | ||||||
Forfeited (in shares) | (332,516) | (670,953) | ||||||
Outstanding RSUs, end of period (in shares) | 1,697,897 | 1,463,834 | 1,658,846 | |||||
Restricted stock units, weighted average fair value [Abstract] | ||||||||
Outstanding RSUs, beginning of period (in dollars per share) | $ / shares | $ 3.51 | $ 5.09 | ||||||
Awarded (in dollars per share) | $ / shares | 1.54 | 2.36 | ||||||
Released (in dollars per share) | $ / shares | 3.57 | 4.72 | ||||||
Forfeited (in dollars per share) | $ / shares | 3.23 | 4.80 | ||||||
Outstanding RSUs, end of period (in dollars per share) | $ / shares | $ 2.25 | $ 3.51 | $ 5.09 | |||||
Restricted stock units, additional disclosures [Abstract] | ||||||||
Outstanding RSUs, weighted average remaining contractual term | 1 year 4 months 28 days | 1 year 6 months 22 days | 1 year 6 months 25 days | |||||
Outstanding RSUs, aggregate intrinsic value | $ | $ 1,715 | $ 3,067 | $ 6,287 | |||||
Number of tranches | Tranche | 3 | |||||||
Compensation cost not yet recognized [Abstract] | ||||||||
Unrecognized compensation cost related to restricted stock units | $ | $ 2,700 | |||||||
Weighted average period of recognition for unrecognized compensation cost | 2 years 4 months 2 days | |||||||
Restricted Stock Units ("RSUs") [Member] | 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 | 25.00% | |||||||
Restricted Stock Units ("RSUs") [Member] | Corporate Employee [Member] | ||||||||
Restricted stock units, number of shares [Roll Forward] | ||||||||
Awarded (in shares) | 725,000 | |||||||
Restricted stock units, additional disclosures [Abstract] | ||||||||
Vesting period | 3 years | |||||||
Restricted Stock Units ("RSUs") [Member] | Non-employee Directors [Member] | ||||||||
Restricted stock units, number of shares [Roll Forward] | ||||||||
Awarded (in shares) | 108,225 | 48,851 | ||||||
Restricted stock units, additional disclosures [Abstract] | ||||||||
Vesting period | 1 year | 1 year | ||||||
Time-based RSUs [Member] | Key Executives [Member] | ||||||||
Restricted stock units, number of shares [Roll Forward] | ||||||||
Awarded (in shares) | 249,750 | |||||||
Restricted stock units, additional disclosures [Abstract] | ||||||||
Vesting period | 3 years | |||||||
Performance-based RSUs [Member] | Key Executives [Member] | ||||||||
Restricted stock units, number of shares [Roll Forward] | ||||||||
Awarded (in shares) | 399,750 | |||||||
Restricted stock units, additional disclosures [Abstract] | ||||||||
Vesting period | 3 years |
Stockholders' Equity, Stock Rep
Stockholders' Equity, Stock Repurchase Program and Treasury Stock (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | 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 | |
Treasury Stock [Abstract] | ||
Shares repurchased to satisfy withholding taxes related to stock-based compensation (in shares) | 98,836 | |
Aggregate costs of shares repurchased to satisfy withholding taxes related to stock-based compensation (in shares) | $ 131,000 |
Stockholders' Equity, Repurchas
Stockholders' Equity, Repurchase of Shares (Details) - USD ($) $ / shares in Units, $ in Thousands | Feb. 19, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 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 | 5.00% | |||
Number of days taken as base for simple moving average | 30 days | |||
Formula produced price per share (in dollars per share) | $ 4.114 | |||
Exercise price of options (in dollars per share) | $ 2.32 | |||
Payments to purchase treasury stock | $ 1,800 | |||
Price per share of treasury stock acquired (in dollars per share) | $ 1.794 | |||
Share repurchase amount | $ 4,100 | $ 131 | $ 0 | $ 4,114 |
Stockholders' Equity, Stockhold
Stockholders' Equity, Stockholder Rights Agreement (Details) | Oct. 13, 2015Right$ / sharesshares | Dec. 31, 2015$ / shares | Dec. 31, 2014$ / shares |
Class of Warrant or Right [Line Items] | |||
Dividend distribution, date declared | Oct. 13, 2015 | ||
Number of rights distributed for each outstanding share of common stock | Right | 1 | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 |
Dividend distribution, date of record | Oct. 30, 2015 | ||
Number of shares of preferred stock called upon by each right (in shares) | shares | 0.001 | ||
Preferred stock, par value (in dollars per share) | $ 0.0001 | ||
Minimum [Member] | |||
Class of Warrant or Right [Line Items] | |||
Percentage of beneficial ownership of common stock acquired after 10th business day | 15.00% | ||
Percentage of ownership of common stock resulting from tender or exchange offer after 10th business day | 15.00% | ||
Series A Junior Participating Preferred Stock [Member] | |||
Class of Warrant or Right [Line Items] | |||
Exercise price (in dollars per share) | $ 2.25 |
Income Taxes, Components of Gai
Income Taxes, Components of Gain (Loss) before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Components of gain (loss) before income taxes [Abstract] | |||
United States | $ (25,754) | $ (3,412) | $ 10,513 |
Foreign | (2,280) | 556 | 608 |
Total | (28,034) | (2,856) | 11,121 |
Gain from discontinued operations, before income taxes | 0 | 0 | 0 |
Gain (loss) from continuing operations, before income taxes | $ (28,034) | $ (2,856) | $ 11,121 |
Income Taxes, Provision for Inc
Income Taxes, Provision for Income Taxes from Continuing Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current [Abstract] | |||||||||||
Federal | $ 0 | $ 0 | $ 0 | ||||||||
State | 23 | 34 | 132 | ||||||||
Foreign | 179 | 380 | 221 | ||||||||
Total current | 202 | 414 | 353 | ||||||||
Deferred [Abstract] | |||||||||||
Federal | (1,119) | 265 | 265 | ||||||||
State | (84) | 19 | 24 | ||||||||
Foreign | 36 | 42 | 130 | ||||||||
Total Deferred | (1,167) | 326 | 419 | ||||||||
Total provision for income tax | $ 76 | $ 60 | $ (1,227) | $ 126 | $ 355 | $ 128 | $ 132 | $ 125 | $ (965) | $ 740 | $ 772 |
Income Taxes, Reconciliation of
Income Taxes, Reconciliation of Federal Statutory Income Tax Rate to Effective Income Tax Rate (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reconciliation of federal statutory income tax rate to effective income tax rate [Abstract] | |||||||||||
Provision at Federal statutory rate | $ (9,812) | $ (1,000) | $ 3,900 | ||||||||
State taxes | (60) | 53 | 156 | ||||||||
Permanent differences/other | 1,370 | 633 | 520 | ||||||||
Stock-based compensation | 762 | 2,311 | 1,113 | ||||||||
Federal valuation allowance (used) provided | 6,775 | (1,257) | (4,917) | ||||||||
Total provision for income tax | $ 76 | $ 60 | $ (1,227) | $ 126 | $ 355 | $ 128 | $ 132 | $ 125 | $ (965) | $ 740 | $ 772 |
Income Taxes, Significant Compo
Income Taxes, Significant Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax Assets [Abstract] | ||
Fixed assets | $ 163 | $ 165 |
Deferred revenue | 28 | 19 |
Accruals and reserves | 428 | 649 |
Stock options | 1,706 | 1,663 |
Net operating loss carryforwards | 44,863 | 42,854 |
Federal and state credits | 3,323 | 3,327 |
Foreign credits | 152 | 185 |
Intangible assets | 4,259 | 1,208 |
Research and development expense | 2,539 | 0 |
Gross deferred tax assets | 57,461 | 50,070 |
Valuation allowance | (57,245) | (49,679) |
Total deferred tax assets | 216 | 391 |
Deferred tax liabilities [Abstract] | ||
Intangible assets | 0 | (1,302) |
Total deferred tax liabilities | 0 | (1,302) |
Net deferred tax asset | 216 | |
Net deferred tax liabilities | $ (911) | |
Cumulative undistributed earnings of foreign subsidiaries | $ 1,600 |
Income Taxes, Valuation Allowan
Income Taxes, Valuation Allowance, Operating Loss Carryforwards and Tax Credit Carryforwards (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Valuation Allowance [Abstract] | ||
Increase (decrease) in net valuation allowance | $ 7.6 | $ (2) |
Valuation allowance on stock option exercises | 4.8 | |
Federal [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 126.2 | |
Federal [Member] | Research and Development [Member] | ||
Tax Credit Carryforward [Line Items] | ||
Tax credit carryforward | 2.8 | |
State [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 69.4 | |
State [Member] | Research and Development [Member] | ||
Tax Credit Carryforward [Line Items] | ||
Tax credit carryforward | $ 2.4 |
Income Taxes, Uncertainties in
Income Taxes, Uncertainties in Income Taxes (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | ||||
Balance at beginning of year | $ 2,460,000 | $ 2,502,000 | ||
Increase related to prior year tax positions | 0 | 2,000 | ||
Decrease related to prior year tax positions | (78,000) | (89,000) | ||
Increase related to current year tax positions | 12,000 | 181,000 | ||
Settlements with tax authorities | 0 | 0 | ||
Decrease related to lapse of statute of limitations | (26,000) | (136,000) | ||
Balance at end of year | $ 2,460,000 | 2,368,000 | 2,460,000 | |
Unrecognized tax benefits that would impact effective tax rate | 500,000 | 400,000 | 500,000 | |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued [Abstract] | ||||
Income tax penalties and interest accrued | 176,000 | 32,000 | $ 176,000 | $ 111,000 |
Recognized tax benefits where significant change is reasonably possible in next 12 months | 242,000 | |||
Reserve related to India transfer pricing | $ 269,000 | |||
Additional increase to reserve representing accrued interest | $ 3,000 |
Quarterly Financial Informati65
Quarterly Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenue [Abstract] | |||||||||||
Services | $ 14,418 | $ 16,563 | $ 19,295 | $ 21,875 | $ 20,633 | $ 20,844 | $ 18,743 | $ 17,052 | $ 72,151 | $ 77,272 | $ 74,867 |
Software and other | 1,293 | 1,302 | 1,305 | 1,282 | 1,336 | 1,387 | 1,435 | 1,561 | 5,182 | 5,719 | 13,296 |
Total revenue | 15,711 | 17,865 | 20,600 | 23,157 | 21,969 | 22,231 | 20,178 | 18,613 | 77,333 | 82,991 | 88,163 |
Costs of revenue [Abstract] | |||||||||||
Cost of services | 12,884 | 14,357 | 15,804 | 18,394 | 17,093 | 16,020 | 14,531 | 12,962 | 61,439 | 60,606 | 43,208 |
Cost of software and other | 127 | 128 | 131 | 150 | 184 | 189 | 228 | 239 | 536 | 840 | 1,172 |
Total cost of revenue | 13,011 | 14,485 | 15,935 | 18,544 | 17,277 | 16,209 | 14,759 | 13,201 | 61,975 | 61,446 | 44,380 |
Gross profit | 2,700 | 3,380 | 4,665 | 4,613 | 4,692 | 6,022 | 5,419 | 5,412 | 15,358 | 21,545 | 43,783 |
Operating expenses [Abstract] | |||||||||||
Research and development | 1,713 | 1,790 | 1,930 | 1,524 | 1,464 | 1,203 | 1,057 | 1,354 | 6,957 | 5,078 | 5,735 |
Sales and marketing | 2,053 | 2,195 | 2,089 | 2,208 | 2,185 | 1,782 | 1,688 | 1,551 | 8,545 | 7,206 | 14,599 |
General and administrative | 3,828 | 3,047 | 3,076 | 3,060 | 2,869 | 2,808 | 2,980 | 2,663 | 13,011 | 11,320 | 11,376 |
Amortization of intangible assets and other | 267 | 267 | 267 | 268 | 272 | 273 | 273 | 273 | 1,069 | 1,091 | 1,321 |
Goodwill impairment | 0 | 0 | 14,240 | 0 | 14,240 | 0 | 0 | ||||
Total operating expenses | 7,861 | 7,299 | 21,602 | 7,060 | 6,790 | 6,066 | 5,998 | 5,841 | 43,822 | 24,695 | 33,031 |
Income (loss) from operations | (5,161) | (3,919) | (16,937) | (2,447) | (2,098) | (44) | (579) | (429) | (28,464) | (3,150) | 10,752 |
Interest income and other, net | 111 | 113 | 106 | 100 | 77 | 77 | 62 | 78 | 430 | 294 | 369 |
Income (loss) from continuing operations, before income taxes | (5,050) | (3,806) | (16,831) | (2,347) | (2,021) | 33 | (517) | (351) | (28,034) | (2,856) | 11,121 |
Income tax provision | 76 | 60 | (1,227) | 126 | 355 | 128 | 132 | 125 | (965) | 740 | 772 |
Income (loss) from continuing operations, after income taxes | (5,126) | (3,866) | (15,604) | (2,473) | (2,376) | (95) | (649) | (476) | (27,069) | (3,596) | 10,349 |
Income (loss) from discontinued operations, after income taxes | (4) | (5) | (5) | 42 | 131 | (6) | (6) | (6) | 28 | 113 | 34 |
Net income (loss) | $ (5,130) | $ (3,871) | $ (15,609) | $ (2,431) | $ (2,245) | $ (101) | $ (655) | $ (482) | $ (27,041) | $ (3,483) | $ 10,383 |
Basic earnings (loss) per share [Abstract] | |||||||||||
Loss from continuing operations, after income taxes (in dollars per share) | $ (0.09) | $ (0.07) | $ (0.29) | $ (0.05) | $ (0.04) | $ 0 | $ (0.01) | $ (0.01) | $ (0.50) | $ (0.07) | $ 0.20 |
Income (loss) from discontinued operations, after income taxes (in dollars per share) | 0 | 0 | 0 | 0.01 | 0 | 0 | 0 | 0 | 0 | 0.01 | 0 |
Basic net earnings (loss) per share (in dollars per share) | (0.09) | (0.07) | (0.29) | (0.04) | (0.04) | 0 | (0.01) | (0.01) | (0.50) | (0.06) | 0.20 |
Diluted earnings (loss) per share [Abstract] | |||||||||||
Loss from continuing operations, after income taxes (in dollars per share) | (0.09) | (0.07) | (0.29) | (0.05) | (0.04) | 0 | (0.01) | (0.01) | (0.50) | (0.07) | 0.19 |
Income (loss) from discontinued operations, after income taxes (in dollars per share) | 0 | 0 | 0 | 0.01 | 0 | 0 | 0 | 0 | 0 | 0.01 | 0 |
Diluted net earnings (loss) per share (in dollars per share) | $ (0.09) | $ (0.07) | $ (0.29) | $ (0.04) | $ (0.04) | $ 0 | $ (0.01) | $ (0.01) | $ (0.50) | $ (0.06) | $ 0.19 |