Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | Apr. 30, 2015 | |
Document And Entity Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | TSYS | |
Entity Registrant Name | TELECOMMUNICATION SYSTEMS INC /FA/ | |
Entity Central Index Key | 1111665 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Accelerated Filer | |
Class A Common Stock | ||
Document And Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 55,988,720 | |
Class B Common Stock | ||
Document And Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 4,801,245 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $27,759 | $26,922 |
Marketable securities | 22,812 | 23,226 |
Accounts receivable, net of allowance of $500 in 2015 and $605 in 2014 | 51,170 | 74,051 |
Unbilled receivables | 29,786 | 22,324 |
Inventory | 8,774 | 6,253 |
Deferred project costs and other current assets | 24,006 | 17,977 |
Total current assets | 164,307 | 170,753 |
Property and equipment, net of accumulated depreciation and amortization of $86,167 in 2015 and $83,645 in 2014 | 31,857 | 33,418 |
Software development costs, net of accumulated amortization of $3,459 in 2015 and $3,072 in 2014 | 4,627 | 4,608 |
Acquired intangible assets, net of accumulated amortization of $14,897 in 2015 and $13,970 in 2014 | 16,279 | 17,206 |
Goodwill | 104,241 | 104,241 |
Other assets | 3,612 | 3,855 |
Total assets | 324,923 | 334,081 |
Current liabilities: | ||
Accounts payable and accrued expenses | 40,931 | 41,599 |
Accrued payroll and related liabilities | 9,683 | 13,599 |
Deferred revenue | 21,571 | 22,000 |
Current portion of bank borrowings, notes payable, and capital lease obligations | 13,723 | 19,291 |
Total current liabilities | 85,908 | 96,489 |
Notes payable and capital lease obligations, less current portion | 119,278 | 119,850 |
Deferred tax liabilities | 3,688 | 3,556 |
Other liabilities | 2,122 | 1,340 |
Stockholders’ equity: | ||
Additional paid-in capital | 347,157 | 346,277 |
Accumulated other comprehensive loss | -216 | -114 |
Accumulated deficit | -233,622 | -233,917 |
Total stockholders’ equity | 113,927 | 112,846 |
Total liabilities and stockholders’ equity | 324,923 | 334,081 |
Class A Common Stock | ||
Stockholders’ equity: | ||
Common stock, value | 560 | 552 |
Class B Common Stock | ||
Stockholders’ equity: | ||
Common stock, value | $48 | $48 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Accounts receivable, allowance | $500 | $605 |
Property and equipment, accumulated depreciation and amortization | 86,167 | 83,645 |
Software development costs, accumulated amortization | 3,459 | 3,072 |
Acquired intangible assets, accumulated amortization | $14,897 | $13,970 |
Class A Common Stock | ||
Common Stock, par value | $0.01 | $0.01 |
Common Stock, shares authorized | 225,000,000 | 225,000,000 |
Common Stock, shares issued | 55,962,074 | 55,144,066 |
Common Stock, shares outstanding | 55,962,074 | 55,144,066 |
Class B Common Stock | ||
Common Stock, par value | $0.01 | $0.01 |
Common Stock, shares authorized | 75,000,000 | 75,000,000 |
Common Stock, shares issued | 4,801,245 | 4,801,245 |
Common Stock, shares outstanding | 4,801,245 | 4,801,245 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenue | ||
Services | $62,849 | $62,269 |
Systems | 19,018 | 22,821 |
Total revenue | 81,867 | 85,090 |
Direct costs of revenue | ||
Direct cost of services revenue | 34,722 | 33,415 |
Direct cost of systems revenue | 13,380 | 16,876 |
Total direct cost of revenue | 48,102 | 50,291 |
Services gross profit | 28,127 | 28,854 |
Systems gross profit | 5,638 | 5,945 |
Total gross profit | 33,765 | 34,799 |
Operating expenses | ||
Research and development expense | 8,447 | 10,363 |
Sales and marketing expense | 6,384 | 6,931 |
General and administrative expense | 12,619 | 11,647 |
Depreciation and amortization of property and equipment | 3,037 | 3,403 |
Amortization of acquired intangible assets | 927 | 949 |
Total operating expenses | 31,414 | 33,293 |
Income from operations | 2,351 | 1,506 |
Interest expense | -1,979 | -2,204 |
Amortization of deferred financing fees | -163 | -168 |
Other income, net | 452 | 137 |
Net income (loss) before income taxes | 661 | -729 |
Income tax (provision) benefit | -366 | 252 |
Net income (loss) | $295 | ($477) |
Net income (loss) per share-basic | $0 | ($0.01) |
Net income (loss) per share-diluted | $0 | ($0.01) |
Weighted average shares outstanding-basic | 60,342 | 59,079 |
Weighted average shares outstanding-diluted | 62,026 | 59,079 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net income (loss) | $295 | ($477) |
Other comprehensive loss: | ||
Foreign currency translation adjustments | 7 | -4 |
Unrealized loss on interest rate hedge | -197 | |
Unrealized gain (loss) on securities: | ||
Arising during the period | 92 | -1 |
Reclassification to net income (loss) | -4 | -2 |
Net unrealized gain (loss) | 88 | -3 |
Other comprehensive loss | -102 | -7 |
Comprehensive income (loss) | $193 | ($484) |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Operating activities: | ||
Net income (loss) | $295 | ($477) |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization of property and equipment | 3,037 | 3,403 |
Stock-based compensation expense | 1,318 | 1,821 |
Amortization of acquired intangible assets | 927 | 949 |
Deferred tax expense | 132 | |
Amortization of capitalized software development costs | 387 | 298 |
Amortization of deferred financing fees | 163 | 168 |
Amortization of investment premiums and accretion of discounts, net | 82 | 76 |
Other non-cash adjustments | 141 | 1,079 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | 23,265 | 1,342 |
Unbilled receivables | -7,462 | -1,063 |
Inventory | -2,521 | 705 |
Deferred project costs and other current assets | -6,029 | 223 |
Other assets | 80 | -193 |
Accounts payable and accrued expenses | -1,603 | 1,897 |
Accrued payroll and related liabilities | -3,916 | -5,553 |
Deferred revenue | 585 | -107 |
Other liabilities | -429 | 3,161 |
Subtotal - Changes in operating assets and liabilities | 1,970 | 412 |
Net cash provided by operating activities | 8,452 | 7,729 |
Investing activities: | ||
Proceeds from sale of property and equipment | 1,550 | |
Purchases of property and equipment | -1,697 | -1,038 |
Capitalized software development costs | -401 | -504 |
Purchases of marketable securities | -1,623 | -2,807 |
Proceeds from sale and maturity of marketable securities | 2,043 | 2,525 |
Net cash used in investing activities | -128 | -1,824 |
Financing activities: | ||
Payments on bank borrowings, notes payable, and capital lease obligations | -13,057 | -1,926 |
Proceeds from bank and other borrowings | 6,000 | |
Payments of tax withholdings on restricted stock | -1,048 | -602 |
Earn-out payment related to 2012 acquisition | -268 | |
Proceeds from exercise of employee stock options and sale of stock | 618 | 69 |
Net cash used in financing activities | -7,487 | -2,727 |
Net increase in cash | 837 | 3,178 |
Cash and cash equivalents at the beginning of the period | 26,922 | 41,904 |
Cash and cash equivalents at the end of the period | $27,759 | $45,082 |
Basis_of_Presentation_and_Summ
Basis of Presentation and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | 1. Basis of Presentation and Summary of Significant Accounting Policies |
Basis of Presentation. The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. There were no significant changes to our accounting policies as described in Note 1 of our consolidated financial statements included in Item 15(a)(1) of our 2014 Annual Report on Form 10-K. These unaudited consolidated financial statements should be read in conjunction with our audited financial statements and related notes included in our 2014 Annual Report on Form 10-K. The terms “TCS,” “Company,” “we,” “us,” and “our” as used in this Form 10-Q refer to TeleCommunication Systems, Inc. and its subsidiaries as a combined entity, except where it is made clear that such terms mean only TeleCommunication Systems, Inc. | |
Use of Estimates. The preparation of these financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the reported amounts and related disclosures. Significant estimates and assumptions in these consolidated financial statements include estimates used in revenue recognition, fair value of business combinations, fair value associated with goodwill, intangible assets and long-lived asset impairment tests, estimated values of software development costs, income taxes and deferred valuation allowances, the fair value of marketable securities and stock-based compensation, and legal and contingency fees. Actual results could differ from those estimates. | |
Recent Accounting Pronouncements. In April 2015, the Financial Accounting Standards Board ("FASB") issued new guidance to simplify the presentation of debt issuance costs by requiring debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying value of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the update. The guidance is effective for annual periods beginning after December 15, 2015, including interim periods within those periods. Early adoption is permitted. The amended guidance is not expected to have a material impact on our consolidated financial statements. | |
In August 2014, the FASB issued new guidance for presentation of financial statements for going-concern, which addresses when and how to disclose going-concern uncertainties in the financial statements. The new standard requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year after the date the financial statements are issued. An entity must provide certain disclosures if conditions or events raise substantial doubt about the entity’s ability to continue as a going concern. The new guidance applies to all entities and is effective for annual periods ending after December 15, 2016, and interim periods thereafter, with early adoption permitted. The amended guidance is not expected to have a material impact on our consolidated financial statements. | |
In May 2014, the FASB issued new guidance for revenue recognition. The new guidance provides a five-step revenue recognition model which replaces the prior revenue recognition guidance in its entirety. The core principle of the new standard is that an entity will recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects what it expects in exchange for the goods or services. The standard also requires more detailed disclosures to enable users of the financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The guidance provides alternative methods of initial adoption; retrospectively applied to each prior reporting period or a modified retrospective approach, in which the cumulative effect of initially applying this new guidance is recognized at the date of initial application with additional disclosures. The guidance is effective for annual periods beginning after December 15, 2016 including interim periods within those annual periods. Early adoption is not permitted. We are currently evaluating the alternative transition methods and the impact that this standard will have on our consolidated financial statements. | |
Earnings_per_share
Earnings per share | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Earnings Per Share | 2. Earnings per share | |||||||
Basic net income (loss) per common share is based upon the average number of shares of common stock outstanding during the period. Stock options and restricted stock of 9,500 shares were excluded from the computation of diluted net income per share because their inclusion would have been anti-dilutive for the three months ended March 31, 2015. | ||||||||
For the three months ended March 31, 2015 and 2014, 4,832 shares issuable upon conversion of our 7.75% Convertible Notes were excluded from the computation of diluted net income (loss) per share because their inclusion would have been anti-dilutive. | ||||||||
For the three months ended March 31, 2014, shares issuable upon conversion of our 4.5% Convertible Senior Notes were excluded from the computation of diluted net loss per share because their inclusion would have been anti-dilutive. | ||||||||
Concurrent with the issuance of the 4.5% Convertible Notes, we entered into convertible note hedge and warrant transactions. Because the Company would have exercised a call option if the market price of our stock exceeded the warrant exercise price of $12.74 per share, the effect of the convertible note hedge, which expired pro rata as the 2014 Notes were repurchased, was excluded from the calculation of diluted earnings per share for the three months ended March 31, 2014, as the impact was always considered anti-dilutive. The warrants expire in 2015, are considered to have no value, and were excluded from the calculation of diluted earnings per share for the three months ended March 31, 2015 and 2014. | ||||||||
The following table summarizes the computations of basic and diluted earnings per share: | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Numerator: | ||||||||
Net income (loss), basic and diluted | $ | 295 | $ | (477 | ) | |||
Denominator: | ||||||||
Total basic weighted-average common shares outstanding | 60,342 | 59,079 | ||||||
Effect of dilutive stock options and restricted stock based on treasury stock method | 1,684 | — | ||||||
Weighted average diluted shares | 62,026 | 59,079 | ||||||
Basic earnings per common share: | ||||||||
Net income (loss) per share-basic | $ | 0 | $ | (0.01 | ) | |||
Diluted earnings per common share: | ||||||||
Net income (loss) per share-diluted | $ | 0 | $ | (0.01 | ) | |||
Our two classes of common stock (Class A and B) share equally in dividends declared or accumulated and have equal participation rights in undistributed earnings. In addition, our unvested restricted stock does not contain non-forfeitable rights to dividends and dividend equivalents. As such, unvested shares of restricted stock are not participating securities and our basic and diluted earnings per share are not impacted by the two-class method of computing earnings per share. |
StockBased_Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 3. Stock-Based Compensation |
Restricted Stock | |
We had 1,613 and 2,180 restricted stock units outstanding at a weighted-average grant date fair value per share of $2.73 and $2.39 as of March 31, 2015 and 2014, respectively. Total unrecognized share-based compensation expense is approximately $3,800 and $4,000 as of March 31, 2015 and 2014, respectively, which is expected to be recognized over a weighted-average period of approximately two years. | |
Stock Options | |
We had 16,975 and 16,272 stock options outstanding as of March 31, 2015 and 2014, respectively, of which 11,853 were “in-the-money” at March 31 2015. During the first three months of 2015, we granted 2,071 options and 209 shares were exercised. Total unrecognized share-based compensation expense was approximately $5,700 and $5,000 as of March 31, 2015 and 2014, respectively, which is expected to be recognized over a weighted-average period of approximately four and three years, respectively. | |
Total Stock-Based Compensation | |
We recognized total share-based compensation expense of $1,318 and $1,821 in the first quarters of 2015 and 2014, respectively. |
Supplemental_Disclosure_of_Cas
Supplemental Disclosure of Cash Flow Information | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Supplemental Cash Flow Elements [Abstract] | ||||||||
Supplemental Disclosure of Cash Flow Information | 4. Supplemental Disclosure of Cash Flow Information | |||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Property and equipment acquired under capital lease | $ | 917 | $ | 344 | ||||
Interest paid | $ | 1,015 | $ | 868 | ||||
Income taxes paid (refunded) | $ | 235 | $ | (32 | ) | |||
Marketable_Securities
Marketable Securities | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Investments Debt And Equity Securities [Abstract] | ||||||||||||||||
Marketable Securities | 5. Marketable Securities | |||||||||||||||
Available-for-sale marketable securities at March 31, 2015: | ||||||||||||||||
Amortized | Gross | Gross | Estimated | |||||||||||||
Cost | Unrealized | Unrealized | Fair | |||||||||||||
Basis | Gains | Losses | Value | |||||||||||||
Corporate bonds | $ | 21,503 | $ | 60 | $ | (17 | ) | $ | 21,546 | |||||||
Mortgage-backed and asset-backed securities | 968 | — | (2 | ) | 966 | |||||||||||
Agency bonds | 300 | — | — | 300 | ||||||||||||
Total marketable securities | $ | 22,771 | $ | 60 | $ | (19 | ) | $ | 22,812 | |||||||
The following table summarizes the estimated fair value of available-for-sale marketable securities by contractual maturity at March 31, 2015: | ||||||||||||||||
Fair | ||||||||||||||||
Value | ||||||||||||||||
Due within 1 year or less | $ | 10,331 | ||||||||||||||
Due after 1 through 5 years | 11,515 | |||||||||||||||
Mortgage-backed securities not due in a single maturity date | 966 | |||||||||||||||
$ | 22,812 | |||||||||||||||
Available-for-sale marketable securities at December 31, 2014: | ||||||||||||||||
Amortized | Gross | Gross | Estimated | |||||||||||||
Cost | Unrealized | Unrealized | Fair | |||||||||||||
Basis | Gains | Losses | Value | |||||||||||||
Corporate bonds | $ | 21,748 | $ | 6 | $ | (50 | ) | $ | 21,704 | |||||||
Mortgage-backed and asset-backed securities | 1,226 | — | (3 | ) | 1,223 | |||||||||||
Agency bonds | 300 | — | (1 | ) | 299 | |||||||||||
Total marketable securities | $ | 23,274 | $ | 6 | $ | (54 | ) | $ | 23,226 | |||||||
The following table summarizes the estimated fair value of available-for-sale marketable securities by contractual maturity at December 31, 2014: | ||||||||||||||||
Fair | ||||||||||||||||
Value | ||||||||||||||||
Due within 1 year or less | $ | 7,483 | ||||||||||||||
Due after 1 through 5 years | 14,520 | |||||||||||||||
Mortgage-backed securities not due in a single maturity date | 1,223 | |||||||||||||||
$ | 23,226 | |||||||||||||||
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
Fair Value Measurements | 6. Fair Value Measurements | |||||||||||||||
Our assets and liabilities subject to fair value measurements on a recurring basis and the required disclosures: | ||||||||||||||||
Fair | Fair Value Measurements | |||||||||||||||
Value | Using Fair Value Hierarchy | |||||||||||||||
As of March 31, 2015 | Total | Level 1 | Level 2 | Level 3 | ||||||||||||
Assets: | ||||||||||||||||
Cash and cash equivalents | $ | 27,759 | $ | 27,759 | $ | — | $ | — | ||||||||
Corporate bonds | 21,546 | 21,546 | — | — | ||||||||||||
Mortgage-backed and asset-backed securities | 966 | 966 | — | — | ||||||||||||
Agency bonds | 300 | 300 | — | — | ||||||||||||
Marketable securities | 22,812 | 22,812 | — | — | ||||||||||||
Deferred compensation plan investments | 973 | 973 | — | — | ||||||||||||
Assets at fair value | $ | 51,544 | $ | 51,544 | $ | — | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Interest rate swap | $ | 437 | $ | — | $ | 437 | $ | — | ||||||||
Deferred compensation | 913 | 913 | — | — | ||||||||||||
Liabilities at fair value | $ | 1,350 | $ | 913 | $ | 437 | $ | — | ||||||||
Fair | Fair Value Measurements | |||||||||||||||
Value | Using Fair Value Hierarchy | |||||||||||||||
As of December 31, 2014 | Total | Level 1 | Level 2 | Level 3 | ||||||||||||
Assets: | ||||||||||||||||
Cash and cash equivalents | $ | 26,922 | $ | 26,922 | $ | — | $ | — | ||||||||
Corporate bonds | 21,704 | 21,704 | — | — | ||||||||||||
Mortgage-backed and asset-backed securities | 1,223 | 1,223 | — | — | ||||||||||||
Agency bonds | 299 | 299 | — | — | ||||||||||||
Marketable securities | 23,226 | 23,226 | — | — | ||||||||||||
Deferred compensation plan investments | 1,282 | 1,282 | — | — | ||||||||||||
Assets at fair value | $ | 51,430 | $ | 51,430 | $ | — | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Interest rate swap | $ | 240 | $ | — | $ | 240 | $ | — | ||||||||
Deferred compensation | 873 | 873 | — | — | ||||||||||||
Liabilities at fair value | $ | 1,113 | $ | 873 | $ | 240 | $ | — | ||||||||
The carrying values of financial instruments, including accounts receivable, unbilled receivables, and accounts payable approximate their fair values due to their short-term maturities. | ||||||||||||||||
We hold marketable securities that are investment grade and are classified as available-for-sale. The securities include corporate bonds, agency bonds, and mortgage and asset-backed securities that are carried at fair market value based on quoted market prices. | ||||||||||||||||
We hold trading securities as part of a rabbi trust to fund supplemental executive retirement plans and deferred income plans. The funds held are all managed by a third party and include fixed income funds, equity securities, and money market accounts, or other investments for which there is an active quoted market. The related deferred compensation liabilities are valued based on the underlying investment selections in each participant’s account. | ||||||||||||||||
The interest rate swap was valued based on forward curves observable in the market, using Level 2 inputs; see Note 12. The effectiveness of the interest rate swap is computed by comparing the present value of the cumulative change in the expected future cash flows of the variable leg of the swap and the present value of the cumulative change in the expected future variable interest payments designated in the hedging relationship. | ||||||||||||||||
Assets and liabilities that are measured at fair value on a non-recurring basis include long-lived assets, intangible assets, and goodwill. These items are recognized at fair value when they are considered to be other than temporarily impaired using significant unobservable inputs and are classified as Level 3. | ||||||||||||||||
The long-term debt, excluding leases, is reported at the borrowed amounts outstanding. The estimated fair value is based on a market approach using quoted market prices or current market rates for similar debt with approximately the same remaining maturities, where possible, and are classified as Level 2. | ||||||||||||||||
Our long-term debt, excluding leases, consisted of borrowings under our Senior Credit Facilities and 7.75% convertible senior notes; see Note 12. At March 31, 2015, the estimated fair value of our long-term debt, excluding leases, was approximately $116,000 versus a carrying value of $117,670. At December 31, 2014, the estimated fair value of the long-term debt, excluding leases, was approximately $123,000 versus a carrying value of $124,567. | ||||||||||||||||
There were no transfers in or out of Level 1, 2, or 3 during the three months ended March 31, 2015. | ||||||||||||||||
Segment_Information
Segment Information | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||
Segment Information | 7. Segment Information | |||||||||||||||||||||||
We report operating results in two business segments: | ||||||||||||||||||||||||
Commercial Segment: We are one of two leading companies that enable 9-1-1 call delivery via cellular, VoIP, and next generation technology. Other TCS hosted and managed services include cellular network and device platforms and applications for text messaging and location-based services. We are also engaged in patent monetization activity which is included in this segment. Commercial Segment customers include wireless network operators, VoIP service providers, wireless device manufacturers, automotive industry suppliers, and state and local governments. | ||||||||||||||||||||||||
Government Segment: For our core segment customers, U.S. Department of Defense agencies, we provide cybersecurity services, support, and training and “C4ISR” (command, control, communications, computers, intelligence surveillance and reconnaissance) resources, wireless ground terminals and related support, management and resale of satellite bandwidth, and information technology outsource services. TCS engineers furnishes and supports ground terminals used for secure satellite-based and other line-of-sight and beyond-line-of-sight communications, as well as related components incorporating government-approved cryptologic devices and other hardened components for aerospace and defense. | ||||||||||||||||||||||||
Management evaluates segment performance based on gross profit and all revenues reported below are from external customers. We do not maintain information regarding segment assets. Accordingly, asset information by reportable segment is not presented. | ||||||||||||||||||||||||
The following tables set forth the results of our reportable segments and a reconciliation of segment gross profit to net income (loss): | ||||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
Comm. | Gvmt | Total | Comm. | Gvmt | Total | |||||||||||||||||||
Revenue | ||||||||||||||||||||||||
Services | $ | 38,308 | $ | 24,541 | $ | 62,849 | $ | 34,641 | $ | 27,628 | $ | 62,269 | ||||||||||||
Systems | 6,898 | 12,120 | 19,018 | 5,388 | 17,433 | 22,821 | ||||||||||||||||||
Total revenue | 45,206 | 36,661 | 81,867 | 40,029 | 45,061 | 85,090 | ||||||||||||||||||
Direct costs of revenue | ||||||||||||||||||||||||
Direct cost of services | 15,112 | 19,610 | 34,722 | 13,744 | 19,671 | 33,415 | ||||||||||||||||||
Direct cost of systems | 4,490 | 8,890 | 13,380 | 2,655 | 14,221 | 16,876 | ||||||||||||||||||
Total direct cost of revenue | 19,602 | 28,500 | 48,102 | 16,399 | 33,892 | 50,291 | ||||||||||||||||||
Gross profit | ||||||||||||||||||||||||
Services gross profit | 23,196 | 4,931 | 28,127 | 20,897 | 7,957 | 28,854 | ||||||||||||||||||
Systems gross profit | 2,408 | 3,230 | 5,638 | 2,733 | 3,212 | 5,945 | ||||||||||||||||||
Total gross profit | $ | 25,604 | $ | 8,161 | $ | 33,765 | $ | 23,630 | $ | 11,169 | $ | 34,799 | ||||||||||||
Three Months Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
Total segment gross profit | $ | 33,765 | $ | 34,799 | ||||||||||||||||||||
Research and development expense | (8,447 | ) | (10,363 | ) | ||||||||||||||||||||
Sales and marketing expense | (6,384 | ) | (6,931 | ) | ||||||||||||||||||||
General and administrative expense | (12,619 | ) | (11,647 | ) | ||||||||||||||||||||
Depreciation and amortization of property and equipment | (3,037 | ) | (3,403 | ) | ||||||||||||||||||||
Amortization of acquired intangible assets | (927 | ) | (949 | ) | ||||||||||||||||||||
Interest expense | (1,979 | ) | (2,204 | ) | ||||||||||||||||||||
Amortization of deferred finance fees | (163 | ) | (168 | ) | ||||||||||||||||||||
Other income, net | 452 | 137 | ||||||||||||||||||||||
Net income (loss) before income taxes | 661 | (729 | ) | |||||||||||||||||||||
Income tax (expense) benefit | (366 | ) | 252 | |||||||||||||||||||||
Net income (loss) | $ | 295 | $ | (477 | ) | |||||||||||||||||||
Inventory
Inventory | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Inventory | 8. Inventory | |||||||
Inventory consisted of the following: | ||||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
Component parts | $ | 7,052 | $ | 4,848 | ||||
Finished goods | 1,722 | 1,405 | ||||||
Total inventory | $ | 8,774 | $ | 6,253 | ||||
Acquired_Intangible_Assets_Cap
Acquired Intangible Assets, Capitalized Software Development Costs, and Goodwill | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||
Acquired Intangible Assets, Capitalized Software Development Costs, and Goodwill | 9. Acquired Intangible Assets, Capitalized Software Development Costs, and Goodwill | |||||||||||||||||||||||
Our acquired intangible assets and capitalized software development costs consisted of the following: | ||||||||||||||||||||||||
31-Mar-15 | 31-Dec-14 | |||||||||||||||||||||||
Gross | Gross | |||||||||||||||||||||||
Carrying | Accumulated | Carrying | Accumulated | |||||||||||||||||||||
Amount | Amortization | Net | Amount | Amortization | Net | |||||||||||||||||||
Acquired intangible assets and capitalized software development costs: | ||||||||||||||||||||||||
Acquired intangible assets, including customer lists | $ | 31,176 | $ | 14,897 | $ | 16,279 | $ | 31,176 | $ | 13,970 | $ | 17,206 | ||||||||||||
Capitalized software development costs | 8,086 | 3,459 | 4,627 | 7,680 | 3,072 | 4,608 | ||||||||||||||||||
Total acquired intangible assets and capitalized software development costs | $ | 39,262 | $ | 18,356 | $ | 20,906 | $ | 38,856 | $ | 17,042 | $ | 21,814 | ||||||||||||
Estimated future amortization expense: | ||||||||||||||||||||||||
Year ending December 31, 2015 | $ | 4,062 | ||||||||||||||||||||||
Year ending December 31, 2016 | 5,142 | |||||||||||||||||||||||
Year ending December 31, 2017 | 4,245 | |||||||||||||||||||||||
Year ending December 31, 2018 | 2,985 | |||||||||||||||||||||||
Year ending December 31, 2019 | 2,280 | |||||||||||||||||||||||
Thereafter | 2,192 | |||||||||||||||||||||||
Total estimated future amortization expense | $ | 20,906 | ||||||||||||||||||||||
Software development costs: | ||||||||||||||||||||||||
For the three months ended March 31, 2015 and 2014, we capitalized $406 and $509, respectively, of software development costs after the point of technological feasibility had been reached but before the software was available for general release. These costs are being amortized over their estimated useful lives beginning when the products are available for general release. We routinely update our estimates of the recoverability of the capitalized software product costs. Management uses these estimates as the basis for evaluating the carrying values and remaining useful lives of the respective assets. | ||||||||||||||||||||||||
Goodwill: | ||||||||||||||||||||||||
The carrying amount of goodwill is as follows: | ||||||||||||||||||||||||
Commercial | Government | |||||||||||||||||||||||
Segment | Segment | Total | ||||||||||||||||||||||
Balance as of March 31, 2015 and December 31, 2014 | $ | 49,945 | $ | 54,296 | $ | 104,241 | ||||||||||||||||||
Concentrations_of_Credit_Risk_
Concentrations of Credit Risk and Major Customers | 3 Months Ended | |||||||||
Mar. 31, 2015 | ||||||||||
Risks And Uncertainties [Abstract] | ||||||||||
Concentrations of Credit Risk and Major Customers | 10. Concentrations of Credit Risk and Major Customers | |||||||||
The financial instruments that potentially subject us to concentrations of credit risk are accounts receivable and unbilled receivables. Those customers that comprised 10% or more of our total revenue or receivables (billed and unbilled) are summarized in the following tables: | ||||||||||
% of Total Revenue For | ||||||||||
the Three | ||||||||||
Months Ended | ||||||||||
Percentage of total revenue: | March 31, | |||||||||
Customer | Segment | 2015 | 2014 | |||||||
U.S. Government agencies and departments | Government | 20% | 22% | |||||||
Customer A | Commercial | 17% | 15% | |||||||
Customer B | Commercial | 10% | 10% | |||||||
Percentage of receivables (billed and unbilled) as of March 31: | ||||||||||
Customer | Segment | 2015 | 2014 | |||||||
U.S. Government agencies and departments | Government | 29% | 26% | |||||||
Customer A | Commercial | 16% | 11% | |||||||
Customer B | Commercial | 12% | 14% | |||||||
Line_of_Credit
Line of Credit | 3 Months Ended |
Mar. 31, 2015 | |
Debt Disclosure [Abstract] | |
Line of Credit | 11. Line of Credit |
We have maintained a line of credit arrangement with our principal bank since 2003. On June 25, 2013, we closed on a new senior secured credit facility, as amended on April 30, 2015 (the “Senior Credit Facility” or “Credit Agreement”), with the Silicon Valley Bank and a syndicate of lenders. The Credit Agreement includes a revolving loan facility (“Revolving Loan Facility”) for up to $30,000 and matures on March 31, 2018. The principal amount outstanding under the Revolving Loan Facility is payable prior to or on the maturity date. Interest on the Revolving Loan Facility accrues at Eurodollar/LIBOR (beginning at L+3.75%) or Alternate Base Rate (“ABR”) (beginning at ABR +2.75%), which may be adjusted as provided in the Credit Agreement, and is payable monthly. | |
The Revolving Loan Facility includes two sub-facilities: (i) a $10,000 letter of credit sub-facility pursuant to which the bank may issue letters of credit, and (ii) a $5,000 swingline sub-facility. | |
As of March 31, 2015 and December 31, 2014, we had $6,000 and $5,000, respectively, of borrowings under our Revolving Loan Facility, and we had $24,000 and $25,000, respectively, of unused borrowing availability. |
LongTerm_Debt
Long-Term Debt | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Long-Term Debt | 12. Long-Term Debt | |||||||
Long-term debt consisted of the following: | ||||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
Senior credit facility | $ | 67,670 | $ | 74,567 | ||||
7.75% Convertible notes due 2018 | 50,000 | 50,000 | ||||||
Total long-term debt | 117,670 | 124,567 | ||||||
Less: current portion | (3,562 | ) | (10,049 | ) | ||||
Non-current portion of long-term debt | $ | 114,108 | $ | 114,518 | ||||
Aggregate maturities of long-term debt at March 31, 2015 are as follows: | ||||||||
2015 | $ | 2,671 | ||||||
2016 | 4,007 | |||||||
2017 | 5,788 | |||||||
2018 | 105,204 | |||||||
Total long-term debt | $ | 117,670 | ||||||
Senior credit facilities | ||||||||
Our senior credit facilities under a June 25, 2013 agreement, as amended on April 30, 2015 (the “Senior Credit Facilities” or “Credit Agreement”) include (i) a $56,500 term loan A facility (“Term Loan A Facility”), and (ii) a $43,500 delayed draw term loan facility (“Delayed Draw Term Loan Facility”). The Senior Credit Facilities also include a $25,000 incremental loan arrangement subject to the Company’s future needs and bank approval, although no assurances can be given that this incremental loan amount will be available to us when and if needed. In 2013 and 2014, we borrowed $10,000 and $14,562, respectively, under our Delayed Draw Term Loan Facility and the proceeds were used towards the retirement of our 4.5% convertible notes. The remaining $18,938 of the Delayed Draw Term Loan Facility was fully drawn on April 30, 2015 and the proceeds will be used for general corporate purposes. The Credit Agreement provides that the banks hold at least $35,000 of the Company’s cash and marketable securities until December 15, 2015. | ||||||||
Interest Rate Hedging Activities | ||||||||
In August 2014, we entered into an interest rate swap agreement with our principal bank. Its $32,094 initial notional amount represents about half of the outstanding balances of the floating rate Term Loan A Facility and the Delayed Term Loan Facility to reduce the variability of interest expense due to changes in interest rates. The interest rate swap results in us paying a fixed rate of 5.17% on the notional amount of the swap until its June 25, 2018 maturity. The notional amount of the swap will change over time to reflect approximately 50% of the outstanding expected Term Loan A Facility and Delayed Draw Term Loan Facility balances. Interest rate reset and interest rate payment dates mirror those of the underlying Term Loan A Facility and Delayed Draw Term Loan Facility. The swap is expected to exactly offset changes in expected cash flows due to fluctuations in the one month LIBOR rate over the term of the hedge. The interest rate swap fair value as of March 31, 2015 and December 31, 2014 was a $437 and $240 liability, respectively. For the three months ended March 31, 2015 and December 31, 2014, the hedge was highly effective and no gains or losses were recognized in earnings. | ||||||||
Capital_Leases
Capital Leases | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Leases Capital [Abstract] | ||||
Capital Leases | 13. Capital Leases | |||
We lease certain equipment under capital leases which are collateralized by the leased assets. Amortization of leased assets is included in depreciation and amortization expense. | ||||
Future minimum payments under capital lease obligations consisted of the following at March 31, 2015: | ||||
2015 | $ | 3,534 | ||
2016 | 3,337 | |||
2017 | 2,225 | |||
2018 | 807 | |||
2019 | 73 | |||
Total minimum lease payments | 9,976 | |||
Less: amounts representing interest | (645 | ) | ||
Present value of net minimum lease payments (including current portion of $4,161) | $ | 9,331 | ||
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 14. Income Taxes |
We reported income tax expense of $366 for the three months ended March 31, 2015, compared to $252 of income tax benefits for the three months ended March 31, 2014. As of March 31, 2015, we continued to provide a valuation allowance for all federal and some state deferred tax assets. The Company continually evaluates facts representing both positive and negative evidence in the determination of its ability to realize the deferred tax assets reported in the notes included in our 2014 Annual Report on Form 10-K. | |
We do not anticipate a significant change to the total amount of unrecognized tax benefits within the next twelve months. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 15. Commitments and Contingencies |
Some customers seek indemnification under their contractual arrangements with the Company for claims and other costs associated with defending lawsuits alleging infringement of patents through their use of our products and services, and the use of our products and services in combination with products and services of other vendors. In some cases we have agreed to assume the defense of the case. In others, the Company will negotiate with these customers in good faith because the Company believes its technology does not infringe the cited patents and due to specific clauses within the customer contractual arrangements that may or may not give rise to an indemnification obligation. The Company cannot predict the outcome of such matters and the resolutions could have a material effect on our consolidated results of operations, financial position, or cash flows. Due to the inherent difficulty of predicting the outcome of litigation and other legal proceedings and uncertainties regarding the Company’s existing litigation and other legal proceedings, the Company is unable to estimate the amount or range of reasonably possible loss in excess of amounts accrued. The Company’s assessments are based on estimates and assumptions that have been deemed reasonable by management, but that may prove to be incomplete or inaccurate, and unanticipated events and circumstances may occur that might cause the Company to change those estimates and assumptions. Therefore, it is possible that an unfavorable resolution of one or more pending litigation or other contingencies could have a material adverse effect on the Company’s consolidated financial statements in a future fiscal period. | |
The application and interpretation of applicable state and local sales and other tax laws to certain of our service and system offerings in certain jurisdictions is uncertain. In accordance with generally accepted accounting principles, the Company makes a provision for a liability for taxes when it is both probable that the liability has been incurred and the amount of the liability or range of liability can be reasonably estimated. These provisions are reviewed at least quarterly and adjusted if necessary. At March 31, 2015, the Company is subject to an ongoing state and local tax audit by the Washington State Department of Revenue. As this and other tax audits progress in the normal course of business, the Company will review and adjust a provision for loss as appropriate. | |
Other than the items discussed immediately above, we are not currently subject to any other material legal proceedings. However, we may from time to time become a party to various legal proceedings arising in the ordinary course of our business. |
Basis_of_Presentation_and_Summ1
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation. The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. There were no significant changes to our accounting policies as described in Note 1 of our consolidated financial statements included in Item 15(a)(1) of our 2014 Annual Report on Form 10-K. These unaudited consolidated financial statements should be read in conjunction with our audited financial statements and related notes included in our 2014 Annual Report on Form 10-K. The terms “TCS,” “Company,” “we,” “us,” and “our” as used in this Form 10-Q refer to TeleCommunication Systems, Inc. and its subsidiaries as a combined entity, except where it is made clear that such terms mean only TeleCommunication Systems, Inc. |
Use of Estimates | Use of Estimates. The preparation of these financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the reported amounts and related disclosures. Significant estimates and assumptions in these consolidated financial statements include estimates used in revenue recognition, fair value of business combinations, fair value associated with goodwill, intangible assets and long-lived asset impairment tests, estimated values of software development costs, income taxes and deferred valuation allowances, the fair value of marketable securities and stock-based compensation, and legal and contingency fees. Actual results could differ from those estimates. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements. In April 2015, the Financial Accounting Standards Board ("FASB") issued new guidance to simplify the presentation of debt issuance costs by requiring debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying value of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the update. The guidance is effective for annual periods beginning after December 15, 2015, including interim periods within those periods. Early adoption is permitted. The amended guidance is not expected to have a material impact on our consolidated financial statements. |
In August 2014, the FASB issued new guidance for presentation of financial statements for going-concern, which addresses when and how to disclose going-concern uncertainties in the financial statements. The new standard requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year after the date the financial statements are issued. An entity must provide certain disclosures if conditions or events raise substantial doubt about the entity’s ability to continue as a going concern. The new guidance applies to all entities and is effective for annual periods ending after December 15, 2016, and interim periods thereafter, with early adoption permitted. The amended guidance is not expected to have a material impact on our consolidated financial statements. | |
In May 2014, the FASB issued new guidance for revenue recognition. The new guidance provides a five-step revenue recognition model which replaces the prior revenue recognition guidance in its entirety. The core principle of the new standard is that an entity will recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects what it expects in exchange for the goods or services. The standard also requires more detailed disclosures to enable users of the financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The guidance provides alternative methods of initial adoption; retrospectively applied to each prior reporting period or a modified retrospective approach, in which the cumulative effect of initially applying this new guidance is recognized at the date of initial application with additional disclosures. The guidance is effective for annual periods beginning after December 15, 2016 including interim periods within those annual periods. Early adoption is not permitted. We are currently evaluating the alternative transition methods and the impact that this standard will have on our consolidated financial statements. | |
Earnings_per_share_Tables
Earnings per share (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Summary of the Computations of Basic and Diluted Earnings per Share | The following table summarizes the computations of basic and diluted earnings per share: | |||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Numerator: | ||||||||
Net income (loss), basic and diluted | $ | 295 | $ | (477 | ) | |||
Denominator: | ||||||||
Total basic weighted-average common shares outstanding | 60,342 | 59,079 | ||||||
Effect of dilutive stock options and restricted stock based on treasury stock method | 1,684 | — | ||||||
Weighted average diluted shares | 62,026 | 59,079 | ||||||
Basic earnings per common share: | ||||||||
Net income (loss) per share-basic | $ | 0 | $ | (0.01 | ) | |||
Diluted earnings per common share: | ||||||||
Net income (loss) per share-diluted | $ | 0 | $ | (0.01 | ) | |||
Supplemental_Disclosure_of_Cas1
Supplemental Disclosure of Cash Flow Information (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Supplemental Cash Flow Elements [Abstract] | ||||||||
Schedule of Supplement Disclosure of Cash Flow Information | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Property and equipment acquired under capital lease | $ | 917 | $ | 344 | ||||
Interest paid | $ | 1,015 | $ | 868 | ||||
Income taxes paid (refunded) | $ | 235 | $ | (32 | ) | |||
Marketable_Securities_Tables
Marketable Securities (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Investments Debt And Equity Securities [Abstract] | ||||||||||||||||
Summary of Available-for-Sale Marketable Securities | Available-for-sale marketable securities at March 31, 2015: | |||||||||||||||
Amortized | Gross | Gross | Estimated | |||||||||||||
Cost | Unrealized | Unrealized | Fair | |||||||||||||
Basis | Gains | Losses | Value | |||||||||||||
Corporate bonds | $ | 21,503 | $ | 60 | $ | (17 | ) | $ | 21,546 | |||||||
Mortgage-backed and asset-backed securities | 968 | — | (2 | ) | 966 | |||||||||||
Agency bonds | 300 | — | — | 300 | ||||||||||||
Total marketable securities | $ | 22,771 | $ | 60 | $ | (19 | ) | $ | 22,812 | |||||||
Available-for-sale marketable securities at December 31, 2014: | ||||||||||||||||
Amortized | Gross | Gross | Estimated | |||||||||||||
Cost | Unrealized | Unrealized | Fair | |||||||||||||
Basis | Gains | Losses | Value | |||||||||||||
Corporate bonds | $ | 21,748 | $ | 6 | $ | (50 | ) | $ | 21,704 | |||||||
Mortgage-backed and asset-backed securities | 1,226 | — | (3 | ) | 1,223 | |||||||||||
Agency bonds | 300 | — | (1 | ) | 299 | |||||||||||
Total marketable securities | $ | 23,274 | $ | 6 | $ | (54 | ) | $ | 23,226 | |||||||
Summary of Available-for-Sale Marketable Securities by Contractual Maturity | The following table summarizes the estimated fair value of available-for-sale marketable securities by contractual maturity at March 31, 2015: | |||||||||||||||
Fair | ||||||||||||||||
Value | ||||||||||||||||
Due within 1 year or less | $ | 10,331 | ||||||||||||||
Due after 1 through 5 years | 11,515 | |||||||||||||||
Mortgage-backed securities not due in a single maturity date | 966 | |||||||||||||||
$ | 22,812 | |||||||||||||||
The following table summarizes the estimated fair value of available-for-sale marketable securities by contractual maturity at December 31, 2014: | ||||||||||||||||
Fair | ||||||||||||||||
Value | ||||||||||||||||
Due within 1 year or less | $ | 7,483 | ||||||||||||||
Due after 1 through 5 years | 14,520 | |||||||||||||||
Mortgage-backed securities not due in a single maturity date | 1,223 | |||||||||||||||
$ | 23,226 | |||||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
Assets and Liabilities Subject to Fair Value Measurements on Recurring Basis and Required Disclosures | Our assets and liabilities subject to fair value measurements on a recurring basis and the required disclosures: | |||||||||||||||
Fair | Fair Value Measurements | |||||||||||||||
Value | Using Fair Value Hierarchy | |||||||||||||||
As of March 31, 2015 | Total | Level 1 | Level 2 | Level 3 | ||||||||||||
Assets: | ||||||||||||||||
Cash and cash equivalents | $ | 27,759 | $ | 27,759 | $ | — | $ | — | ||||||||
Corporate bonds | 21,546 | 21,546 | — | — | ||||||||||||
Mortgage-backed and asset-backed securities | 966 | 966 | — | — | ||||||||||||
Agency bonds | 300 | 300 | — | — | ||||||||||||
Marketable securities | 22,812 | 22,812 | — | — | ||||||||||||
Deferred compensation plan investments | 973 | 973 | — | — | ||||||||||||
Assets at fair value | $ | 51,544 | $ | 51,544 | $ | — | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Interest rate swap | $ | 437 | $ | — | $ | 437 | $ | — | ||||||||
Deferred compensation | 913 | 913 | — | — | ||||||||||||
Liabilities at fair value | $ | 1,350 | $ | 913 | $ | 437 | $ | — | ||||||||
Fair | Fair Value Measurements | |||||||||||||||
Value | Using Fair Value Hierarchy | |||||||||||||||
As of December 31, 2014 | Total | Level 1 | Level 2 | Level 3 | ||||||||||||
Assets: | ||||||||||||||||
Cash and cash equivalents | $ | 26,922 | $ | 26,922 | $ | — | $ | — | ||||||||
Corporate bonds | 21,704 | 21,704 | — | — | ||||||||||||
Mortgage-backed and asset-backed securities | 1,223 | 1,223 | — | — | ||||||||||||
Agency bonds | 299 | 299 | — | — | ||||||||||||
Marketable securities | 23,226 | 23,226 | — | — | ||||||||||||
Deferred compensation plan investments | 1,282 | 1,282 | — | — | ||||||||||||
Assets at fair value | $ | 51,430 | $ | 51,430 | $ | — | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Interest rate swap | $ | 240 | $ | — | $ | 240 | $ | — | ||||||||
Deferred compensation | 873 | 873 | — | — | ||||||||||||
Liabilities at fair value | $ | 1,113 | $ | 873 | $ | 240 | $ | — | ||||||||
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||
Segment Reporting Information by Segment | The following tables set forth the results of our reportable segments and a reconciliation of segment gross profit to net income (loss): | |||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
Comm. | Gvmt | Total | Comm. | Gvmt | Total | |||||||||||||||||||
Revenue | ||||||||||||||||||||||||
Services | $ | 38,308 | $ | 24,541 | $ | 62,849 | $ | 34,641 | $ | 27,628 | $ | 62,269 | ||||||||||||
Systems | 6,898 | 12,120 | 19,018 | 5,388 | 17,433 | 22,821 | ||||||||||||||||||
Total revenue | 45,206 | 36,661 | 81,867 | 40,029 | 45,061 | 85,090 | ||||||||||||||||||
Direct costs of revenue | ||||||||||||||||||||||||
Direct cost of services | 15,112 | 19,610 | 34,722 | 13,744 | 19,671 | 33,415 | ||||||||||||||||||
Direct cost of systems | 4,490 | 8,890 | 13,380 | 2,655 | 14,221 | 16,876 | ||||||||||||||||||
Total direct cost of revenue | 19,602 | 28,500 | 48,102 | 16,399 | 33,892 | 50,291 | ||||||||||||||||||
Gross profit | ||||||||||||||||||||||||
Services gross profit | 23,196 | 4,931 | 28,127 | 20,897 | 7,957 | 28,854 | ||||||||||||||||||
Systems gross profit | 2,408 | 3,230 | 5,638 | 2,733 | 3,212 | 5,945 | ||||||||||||||||||
Total gross profit | $ | 25,604 | $ | 8,161 | $ | 33,765 | $ | 23,630 | $ | 11,169 | $ | 34,799 | ||||||||||||
Three Months Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
Total segment gross profit | $ | 33,765 | $ | 34,799 | ||||||||||||||||||||
Research and development expense | (8,447 | ) | (10,363 | ) | ||||||||||||||||||||
Sales and marketing expense | (6,384 | ) | (6,931 | ) | ||||||||||||||||||||
General and administrative expense | (12,619 | ) | (11,647 | ) | ||||||||||||||||||||
Depreciation and amortization of property and equipment | (3,037 | ) | (3,403 | ) | ||||||||||||||||||||
Amortization of acquired intangible assets | (927 | ) | (949 | ) | ||||||||||||||||||||
Interest expense | (1,979 | ) | (2,204 | ) | ||||||||||||||||||||
Amortization of deferred finance fees | (163 | ) | (168 | ) | ||||||||||||||||||||
Other income, net | 452 | 137 | ||||||||||||||||||||||
Net income (loss) before income taxes | 661 | (729 | ) | |||||||||||||||||||||
Income tax (expense) benefit | (366 | ) | 252 | |||||||||||||||||||||
Net income (loss) | $ | 295 | $ | (477 | ) | |||||||||||||||||||
Inventory_Tables
Inventory (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Components of Inventory | Inventory consisted of the following: | |||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
Component parts | $ | 7,052 | $ | 4,848 | ||||
Finished goods | 1,722 | 1,405 | ||||||
Total inventory | $ | 8,774 | $ | 6,253 | ||||
Acquired_Intangible_Assets_Cap1
Acquired Intangible Assets, Capitalized Software Development Costs, and Goodwill (Tables) | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||
Acquired Intangible Assets and Capitalized Software Development Costs | Our acquired intangible assets and capitalized software development costs consisted of the following: | |||||||||||||||||||||||
31-Mar-15 | 31-Dec-14 | |||||||||||||||||||||||
Gross | Gross | |||||||||||||||||||||||
Carrying | Accumulated | Carrying | Accumulated | |||||||||||||||||||||
Amount | Amortization | Net | Amount | Amortization | Net | |||||||||||||||||||
Acquired intangible assets and capitalized software development costs: | ||||||||||||||||||||||||
Acquired intangible assets, including customer lists | $ | 31,176 | $ | 14,897 | $ | 16,279 | $ | 31,176 | $ | 13,970 | $ | 17,206 | ||||||||||||
Capitalized software development costs | 8,086 | 3,459 | 4,627 | 7,680 | 3,072 | 4,608 | ||||||||||||||||||
Total acquired intangible assets and capitalized software development costs | $ | 39,262 | $ | 18,356 | $ | 20,906 | $ | 38,856 | $ | 17,042 | $ | 21,814 | ||||||||||||
Estimated Future Amortization Expense | Estimated future amortization expense: | |||||||||||||||||||||||
Year ending December 31, 2015 | $ | 4,062 | ||||||||||||||||||||||
Year ending December 31, 2016 | 5,142 | |||||||||||||||||||||||
Year ending December 31, 2017 | 4,245 | |||||||||||||||||||||||
Year ending December 31, 2018 | 2,985 | |||||||||||||||||||||||
Year ending December 31, 2019 | 2,280 | |||||||||||||||||||||||
Thereafter | 2,192 | |||||||||||||||||||||||
Total estimated future amortization expense | $ | 20,906 | ||||||||||||||||||||||
Balances and Changes in Amount of Goodwill | The carrying amount of goodwill is as follows: | |||||||||||||||||||||||
Commercial | Government | |||||||||||||||||||||||
Segment | Segment | Total | ||||||||||||||||||||||
Balance as of March 31, 2015 and December 31, 2014 | $ | 49,945 | $ | 54,296 | $ | 104,241 | ||||||||||||||||||
Concentrations_of_Credit_Risk_1
Concentrations of Credit Risk and Major Customers (Tables) | 3 Months Ended | |||||||||
Mar. 31, 2015 | ||||||||||
Risks And Uncertainties [Abstract] | ||||||||||
Summary of Customers Revenue, Accounts Receivable and Unbilled Receivables | The financial instruments that potentially subject us to concentrations of credit risk are accounts receivable and unbilled receivables. Those customers that comprised 10% or more of our total revenue or receivables (billed and unbilled) are summarized in the following tables: | |||||||||
% of Total Revenue For | ||||||||||
the Three | ||||||||||
Months Ended | ||||||||||
Percentage of total revenue: | March 31, | |||||||||
Customer | Segment | 2015 | 2014 | |||||||
U.S. Government agencies and departments | Government | 20% | 22% | |||||||
Customer A | Commercial | 17% | 15% | |||||||
Customer B | Commercial | 10% | 10% | |||||||
Percentage of receivables (billed and unbilled) as of March 31: | ||||||||||
Customer | Segment | 2015 | 2014 | |||||||
U.S. Government agencies and departments | Government | 29% | 26% | |||||||
Customer A | Commercial | 16% | 11% | |||||||
Customer B | Commercial | 12% | 14% | |||||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Long-term Debt | Long-term debt consisted of the following: | |||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
Senior credit facility | $ | 67,670 | $ | 74,567 | ||||
7.75% Convertible notes due 2018 | 50,000 | 50,000 | ||||||
Total long-term debt | 117,670 | 124,567 | ||||||
Less: current portion | (3,562 | ) | (10,049 | ) | ||||
Non-current portion of long-term debt | $ | 114,108 | $ | 114,518 | ||||
Aggregate Maturities of Long-term Debt | Aggregate maturities of long-term debt at March 31, 2015 are as follows: | |||||||
2015 | $ | 2,671 | ||||||
2016 | 4,007 | |||||||
2017 | 5,788 | |||||||
2018 | 105,204 | |||||||
Total long-term debt | $ | 117,670 | ||||||
Capital_Leases_Tables
Capital Leases (Tables) | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Leases Capital [Abstract] | ||||
Future Minimum Payments Under Capital Lease Obligations | Future minimum payments under capital lease obligations consisted of the following at March 31, 2015: | |||
2015 | $ | 3,534 | ||
2016 | 3,337 | |||
2017 | 2,225 | |||
2018 | 807 | |||
2019 | 73 | |||
Total minimum lease payments | 9,976 | |||
Less: amounts representing interest | (645 | ) | ||
Present value of net minimum lease payments (including current portion of $4,161) | $ | 9,331 | ||
Earnings_per_share_Additional_
Earnings per share - Additional Information (Detail) (USD $) | 3 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Warrant exercise price | 12.74 | ||
Earnings per share, dilutive effect, description | Because the Company would have exercised a call option if the market price of our stock exceeded the warrant exercise price of $12.74 per share, the effect of the convertible note hedge, which expired pro rata as the 2014 Notes were repurchased, was excluded from the calculation of diluted earnings per share for the three months ended March 31, 2014, as the impact was always considered anti-dilutive. | ||
7.75% Convertible notes due 2018 | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Debt instrument, interest rate percentage | 7.75% | 7.75% | 7.75% |
Common shares excluded from the computation of diluted net income (loss) per share | 4,832 | 4,832 | |
4.5% Convertible notes due 2014 | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Debt instrument, interest rate percentage | 4.50% | ||
Stock Options And Restricted Stock | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Number of shares excluded from computation of diluted net income per share | 9,500 |
Summary_of_the_Computations_of
Summary of the Computations of Basic and Diluted Earnings per Share (Detail) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Numerator: | ||
Net income (loss) | $295 | ($477) |
Denominator: | ||
Total basic weighted-average common shares outstanding | 60,342 | 59,079 |
Effect of dilutive stock options and restricted stock based on treasury stock method | 1,684 | |
Weighted average diluted shares | 62,026 | 59,079 |
Basic earnings per common share: | ||
Net income (loss) per share-basic | $0 | ($0.01) |
Diluted earnings per common share: | ||
Net income (loss) per share-diluted | $0 | ($0.01) |
StockBased_Compensation_Additi
Stock-Based Compensation - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock-based compensation expense | $1,318 | $1,821 |
Employee Stock Option | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Total unrecognized share-based compensation expense | 5,700 | 5,000 |
Period of unrecognized share-based compensation costs to be recognized | 4 years | 3 years |
Stock-based compensation, shares outstanding | 16,975 | 16,272 |
Option granted | 2,071 | |
Option exercises | 209 | |
Employee Stock Option | In-The-Money | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Outstanding stock options ''in-the-money'' | 11,853 | |
Restricted Stock | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Restricted stock units outstanding | 1,613 | 2,180 |
Weighted-average fair value of restricted stock, per share | $2.73 | $2.39 |
Total unrecognized share-based compensation expense | 3,800 | 4,000 |
Period of unrecognized share-based compensation costs to be recognized | 2 years | 2 years |
Stock Compensation Plan | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock-based compensation expense | $1,318 | $1,821 |
Schedule_of_Supplement_Disclos
Schedule of Supplement Disclosure of Cash Flow Information (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Supplemental Cash Flow Elements [Abstract] | ||
Property and equipment acquired under capital lease | $917 | $344 |
Interest paid | 1,015 | 868 |
Income taxes paid (refunded) | $235 | ($32) |
Summary_of_AvailableforSale_Ma
Summary of Available-for-Sale Marketable Securities (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available-for-sale marketable securities, Amortized Cost Basis | $22,771 | $23,274 |
Available-for-sale marketable securities, Gross Unrealized Gains | 60 | 6 |
Available-for-sale marketable securities, Gross Unrealized Losses | -19 | -54 |
Marketable securities | 22,812 | 23,226 |
Corporate bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available-for-sale marketable securities, Amortized Cost Basis | 21,503 | 21,748 |
Available-for-sale marketable securities, Gross Unrealized Gains | 60 | 6 |
Available-for-sale marketable securities, Gross Unrealized Losses | -17 | -50 |
Marketable securities | 21,546 | 21,704 |
Mortgage-backed and asset-backed securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available-for-sale marketable securities, Amortized Cost Basis | 968 | 1,226 |
Available-for-sale marketable securities, Gross Unrealized Losses | -2 | -3 |
Marketable securities | 966 | 1,223 |
Agency bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available-for-sale marketable securities, Amortized Cost Basis | 300 | 300 |
Available-for-sale marketable securities, Gross Unrealized Losses | -1 | |
Marketable securities | $300 | $299 |
Summary_of_AvailableforSale_Ma1
Summary of Available-for-Sale Marketable Securities by Contractual Maturity (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Investments Debt And Equity Securities [Abstract] | ||
Available-for-sale securities, contractual maturity, Due within 1 year or less, Fair Value | $10,331 | $7,483 |
Available-for-sale securities, contractual maturity, Due after 1 through 5 years, Fair Value | 11,515 | 14,520 |
Available-for-sale securities, Mortgage-backed securities not due in a single maturity date, Fair Value | 966 | 1,223 |
Available-for-sale marketable securities, Estimated Fair Value | $22,812 | $23,226 |
Assets_and_Liabilities_Subject
Assets and Liabilities Subject to Fair Value Measurements and Required Disclosures (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Assets: | ||
Cash and cash equivalents | $27,759 | $26,922 |
Marketable securities | 22,812 | 23,226 |
Deferred compensation plan investments | 973 | 1,282 |
Assets at fair value | 51,544 | 51,430 |
Liabilities: | ||
Interest rate swap | 437 | 240 |
Deferred compensation | 913 | 873 |
Liabilities at fair value | 1,350 | 1,113 |
Corporate bonds | ||
Assets: | ||
Marketable securities | 21,546 | 21,704 |
Mortgage-backed and asset-backed securities | ||
Assets: | ||
Marketable securities | 966 | 1,223 |
Agency bonds | ||
Assets: | ||
Marketable securities | 300 | 299 |
Fair Value, Inputs, Level 1 | ||
Assets: | ||
Cash and cash equivalents | 27,759 | 26,922 |
Marketable securities | 22,812 | 23,226 |
Deferred compensation plan investments | 973 | 1,282 |
Assets at fair value | 51,544 | 51,430 |
Liabilities: | ||
Deferred compensation | 913 | 873 |
Liabilities at fair value | 913 | 873 |
Fair Value, Inputs, Level 1 | Corporate bonds | ||
Assets: | ||
Marketable securities | 21,546 | 21,704 |
Fair Value, Inputs, Level 1 | Mortgage-backed and asset-backed securities | ||
Assets: | ||
Marketable securities | 966 | 1,223 |
Fair Value, Inputs, Level 1 | Agency bonds | ||
Assets: | ||
Marketable securities | 300 | 299 |
Fair Value, Inputs, Level 2 | ||
Liabilities: | ||
Interest rate swap | 437 | 240 |
Liabilities at fair value | $437 | $240 |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Estimated Fair value of long term debt | $116,000 | $123,000 | |
Carrying value of long term debt | 117,670 | 124,567 | |
Transfers in or out of Level 1, 2, or 3 | 0 | ||
7.75% Convertible notes due 2018 | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Debt instrument, interest rate percentage | 7.75% | 7.75% | 7.75% |
Carrying value of long term debt | $50,000 | $50,000 |
Segment_Information_Additional
Segment Information - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2015 | |
Segment | |
Segment Reporting [Abstract] | |
Number of reporting segments | 2 |
Segment_Reporting_Information_
Segment Reporting Information by Segment (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenue | ||
Services | $62,849 | $62,269 |
Systems | 19,018 | 22,821 |
Total revenue | 81,867 | 85,090 |
Direct costs of revenue | ||
Direct cost of services | 34,722 | 33,415 |
Direct cost of systems | 13,380 | 16,876 |
Total direct cost of revenue | 48,102 | 50,291 |
Gross profit | ||
Services gross profit | 28,127 | 28,854 |
Systems gross profit | 5,638 | 5,945 |
Total gross profit | 33,765 | 34,799 |
Research and development expense | -8,447 | -10,363 |
Sales and marketing expense | -6,384 | -6,931 |
General and administrative expense | -12,619 | -11,647 |
Depreciation and amortization of property and equipment | -3,037 | -3,403 |
Amortization of acquired intangible assets | -927 | -949 |
Interest expense | -1,979 | -2,204 |
Amortization of deferred financing fees | -163 | -168 |
Other income, net | 452 | 137 |
Net income (loss) before income taxes | 661 | -729 |
Income tax (provision) benefit | -366 | 252 |
Net income (loss) | 295 | -477 |
Commercial Segment | ||
Revenue | ||
Services | 38,308 | 34,641 |
Systems | 6,898 | 5,388 |
Total revenue | 45,206 | 40,029 |
Direct costs of revenue | ||
Direct cost of services | 15,112 | 13,744 |
Direct cost of systems | 4,490 | 2,655 |
Total direct cost of revenue | 19,602 | 16,399 |
Gross profit | ||
Services gross profit | 23,196 | 20,897 |
Systems gross profit | 2,408 | 2,733 |
Total gross profit | 25,604 | 23,630 |
Government Segment | ||
Revenue | ||
Services | 24,541 | 27,628 |
Systems | 12,120 | 17,433 |
Total revenue | 36,661 | 45,061 |
Direct costs of revenue | ||
Direct cost of services | 19,610 | 19,671 |
Direct cost of systems | 8,890 | 14,221 |
Total direct cost of revenue | 28,500 | 33,892 |
Gross profit | ||
Services gross profit | 4,931 | 7,957 |
Systems gross profit | 3,230 | 3,212 |
Total gross profit | $8,161 | $11,169 |
Components_of_Inventory_Detail
Components of Inventory (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ||
Component parts | $7,052 | $4,848 |
Finished goods | 1,722 | 1,405 |
Total inventory | $8,774 | $6,253 |
Acquired_Intangible_Assets_and
Acquired Intangible Assets and Capitalized Software Development Costs (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Finite Lived Intangible Assets [Line Items] | ||
Acquired intangible assets, accumulated amortization | $14,897 | $13,970 |
Acquired intangible assets, Net | 16,279 | 17,206 |
Capitalized software development costs, Gross Carrying Amount | 8,086 | 7,680 |
Capitalized software development costs, accumulated amortization | 3,459 | 3,072 |
Capitalized software development costs, Net | 4,627 | 4,608 |
Intangible assets and capitalized software development costs, Gross Carrying Amount | 39,262 | 38,856 |
Intangible assets and capitalized software development costs, Accumulated Amortization | 18,356 | 17,042 |
Intangible assets and capitalized software development costs, Net | 20,906 | 21,814 |
Acquired intangible assets including customer lists | ||
Finite Lived Intangible Assets [Line Items] | ||
Acquired intangible assets, Gross Carrying Amount | 31,176 | 31,176 |
Acquired intangible assets, accumulated amortization | 14,897 | 13,970 |
Acquired intangible assets, Net | $16,279 | $17,206 |
Estimated_Future_Amortization_
Estimated Future Amortization Expense (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Estimated future amortization expense: | ||
Year ending December 31, 2015 | $4,062 | |
Year ending December 31, 2016 | 5,142 | |
Year ending December 31, 2017 | 4,245 | |
Year ending December 31, 2018 | 2,985 | |
Year ending December 31, 2019 | 2,280 | |
Thereafter | 2,192 | |
Intangible assets and capitalized software development costs, Net | $20,906 | $21,814 |
Acquired_Intangible_Assets_Cap2
Acquired Intangible Assets, Capitalized Software Development Costs, and Goodwill - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Capitalized software development costs | $406 | $509 |
Balances_and_Changes_in_Amount
Balances and Changes in Amount of Goodwill (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Goodwill [Line Items] | ||
Goodwill | $104,241 | $104,241 |
Commercial Segment | ||
Goodwill [Line Items] | ||
Goodwill | 49,945 | 49,945 |
Government Segment | ||
Goodwill [Line Items] | ||
Goodwill | $54,296 | $54,296 |
Customers_Revenue_and_Receivab
Customers Revenue and Receivables (Billed and Unbilled) (Detail) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Customer Concentration Risk | Revenue | U.S Government Agencies and Departments | Government Segment | ||
Concentration Risk [Line Items] | ||
Concentration of risk percentage | 20.00% | 22.00% |
Customer Concentration Risk | Revenue | Customer A | Commercial Segment | ||
Concentration Risk [Line Items] | ||
Concentration of risk percentage | 17.00% | 15.00% |
Customer Concentration Risk | Revenue | Customer B | Commercial Segment | ||
Concentration Risk [Line Items] | ||
Concentration of risk percentage | 10.00% | 10.00% |
Credit Concentration Risk | Receivables (billed and unbilled) | U.S Government Agencies and Departments | Government Segment | ||
Concentration Risk [Line Items] | ||
Concentration of risk percentage | 29.00% | 26.00% |
Credit Concentration Risk | Receivables (billed and unbilled) | Customer A | Commercial Segment | ||
Concentration Risk [Line Items] | ||
Concentration of risk percentage | 16.00% | 11.00% |
Credit Concentration Risk | Receivables (billed and unbilled) | Customer B | Commercial Segment | ||
Concentration Risk [Line Items] | ||
Concentration of risk percentage | 12.00% | 14.00% |
Line_of_Credit_Additional_Info
Line of Credit - Additional Information (Detail) (Revolving Credit Facility, USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Apr. 30, 2015 |
Line Of Credit Facility [Line Items] | |||
Line of credit facility, interest rate description | The principal amount outstanding under the Revolving Loan Facility is payable prior to or on the maturity date. Interest on the Revolving Loan Facility accrues at Eurodollar/LIBOR (beginning at L+3.75%) or Alternate Base Rate (“ABRâ€) (beginning at ABR +2.75%), which may be adjusted as provided in the Credit Agreement. | ||
Line of credit facility, maximum borrowing capacity | $30,000 | $30,000 | |
Line of credit, maturity date | 31-Mar-18 | ||
Line of credit facility, amount outstanding | 6,000 | 5,000 | |
Line of credit facility, unused borrowing capacity | 24,000 | 25,000 | |
Letter Of Credit Sub-facility | |||
Line Of Credit Facility [Line Items] | |||
Line of credit facility, maximum borrowing capacity | 10,000 | ||
Swingline Sub-facility | |||
Line Of Credit Facility [Line Items] | |||
Line of credit facility, maximum borrowing capacity | 5,000 | ||
Eurodollar | |||
Line Of Credit Facility [Line Items] | |||
Interest rate above base | 3.75% | ||
LIBOR | |||
Line Of Credit Facility [Line Items] | |||
Interest rate above base | 3.75% | ||
Alternate Base Rate (ABR) | |||
Line Of Credit Facility [Line Items] | |||
Interest rate above base | 2.75% | ||
Subsequent Event | |||
Line Of Credit Facility [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $30,000 |
LongTerm_Debt_Schedule_of_Comp
Long-Term Debt - Schedule of Components of Long-Term Debt (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Long-term debt | $117,670 | $124,567 |
Less: current portion | -3,562 | -10,049 |
Non-current portion of long-term debt | 114,108 | 114,518 |
Senior Credit Facilities | ||
Debt Instrument [Line Items] | ||
Long-term debt | 67,670 | 74,567 |
7.75% Convertible notes due 2018 | ||
Debt Instrument [Line Items] | ||
Long-term debt | $50,000 | $50,000 |
Longterm_Debt_Parenthetical_De
Long-term Debt (Parenthetical) (Detail) (7.75% Convertible notes due 2018) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 |
7.75% Convertible notes due 2018 | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate percentage | 7.75% | 7.75% | 7.75% |
LongTerm_Debt_Schedule_of_Aggr
Long-Term Debt - Schedule of Aggregate Maturities of Long-Term Debt (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Debt Disclosure [Abstract] | ||
2015 | $2,671 | |
2016 | 4,007 | |
2017 | 5,788 | |
2018 | 105,204 | |
Long-term debt | $117,670 | $124,567 |
LongTerm_Debt_Senior_Credit_Fa
Long-Term Debt - Senior Credit Facilities (Additional Information) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Apr. 30, 2015 | Jun. 25, 2013 |
Debt Instrument [Line Items] | |||||
Proceeds from bank and other borrowings | $6,000 | ||||
Senior Credit Facilities | |||||
Debt Instrument [Line Items] | |||||
Debt instrument cash and marketable securities requirements | 35,000 | ||||
4.5% Convertible notes due 2014 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, repurchased face amount | 14,562 | 10,000 | |||
Term Loan A Facility | Senior Credit Facilities | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, amount | 56,500 | ||||
Delayed Draw Loan Facility As Amended | Senior Credit Facilities | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, amount | 43,500 | ||||
Proceeds from bank and other borrowings | 14,562 | 10,000 | |||
Debt instrument, maturity date | 30-Apr-15 | ||||
Delayed Draw Loan Facility As Amended | Subsequent Event | Senior Credit Facilities | |||||
Debt Instrument [Line Items] | |||||
Proceeds from bank and other borrowings | 18,938 | ||||
Incremental Loan Arrangement | Senior Credit Facilities | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, amount | $25,000 |
LongTerm_Debt_Interest_Rate_He
Long-Term Debt - Interest Rate Hedging Activities - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2015 | Dec. 31, 2014 | Aug. 31, 2014 | |
Derivative [Line Items] | |||
Interest rate derivative liabilities, fair value | $437,000 | $240,000 | |
Interest Rate Swap | |||
Derivative [Line Items] | |||
Derivative, notional amount | 32,094,000 | ||
Derivative, fixed interest rate | 5.17% | ||
Percentage of balance to be reflected | 50.00% | ||
Interest rate derivative liabilities, fair value | 437,000 | 240,000 | |
Derivative, maturity date | 25-Jun-18 | ||
Gain (loss) recognized in earnings, effective portion | $0 | $0 |
Future_Minimum_Payments_under_
Future Minimum Payments under Capital Lease Obligations (Detail) (USD $) | Mar. 31, 2015 |
In Thousands, unless otherwise specified | |
Leases Capital [Abstract] | |
2015 | $3,534 |
2016 | 3,337 |
2017 | 2,225 |
2018 | 807 |
2019 | 73 |
Total minimum lease payments | 9,976 |
Less: amounts representing interest | -645 |
Present value of net minimum lease payments (including current portion of $4,161) | $9,331 |
Future_Minimum_Payments_under_1
Future Minimum Payments under Capital Lease Obligations (Parenthetical) (Detail) (USD $) | Mar. 31, 2015 |
In Thousands, unless otherwise specified | |
Leases Capital [Abstract] | |
Current portion of capital lease payments | $4,161 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Tax Disclosure [Abstract] | ||
Income tax expense (benefit) | $366 | ($252) |