Cafepress (PRSS) 10-Q 4 Aug 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Aug. 01, 2016
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2
Trading Symbol	PRSS
Entity Registrant Name	CAFEPRESS INC.
Entity Central Index Key	1,117,733
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		16,689,356

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
CURRENT ASSETS:
Cash and cash equivalents	$ 15,330	$ 32,663
Short-term investments	23,066	17,610
Accounts receivable	614	680
Inventory, net	2,793	3,850
Deferred costs	626	619
Restricted cash	0	3,417
Prepaid expenses and other current assets	3,360	2,413
Total current assets	45,789	61,252
Property and equipment, net	10,055	8,624
Goodwill	0	20,899
Other assets	705	608
TOTAL ASSETS	56,549	91,383
CURRENT LIABILITIES:
Accounts payable	1,387	3,938
Accrued royalties payable	2,290	4,292
Accrued liabilities	6,457	10,701
Deferred revenue	929	864
Capital lease obligation, current	583	565
Total current liabilities	11,646	20,360
Capital lease obligation, non-current	50	347
Other long-term liabilities	218	353
TOTAL LIABILITIES	11,914	21,060
Stockholders' Equity:
Preferred stock, $0.0001 par value: 10,000 shares authorized as of June 30, 2016 and December 31, 2015; none issued and outstanding	0	0
Common stock, $0.0001 par value — 500,000 shares authorized and 16,707 and 16,766 shares issued and outstanding as of June 30, 2016 and December 31, 2015, respectively	2	2
Treasury stock; 50 shares at December 31, 2015	0	(203)
Additional paid-in capital	99,413	99,344
Accumulated deficit	(54,780)	(28,820)
TOTAL STOCKHOLDERS' EQUITY	44,635	70,323
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 56,549	$ 91,383

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, share authorized	10,000,000	10,000,000
Preferred stock, share issued	0	0
Preferred stock, share outstanding	0	0
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	16,707,000	16,766,000
Common stock, shares outstanding	16,707,000	16,766,000
Treasury stock, shares outstanding	0	50,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Income Statement [Abstract]
Net revenues	$ 19,841	$ 21,764	$ 37,919	$ 45,340
Cost of net revenues	11,622	12,876	22,265	27,750
Gross profit	8,219	8,888	15,654	17,590
Operating expenses:
Sales and marketing	4,320	4,195	8,932	9,611
Technology and development	3,316	2,792	6,500	5,989
General and administrative	3,036	3,194	5,672	6,341
Impairment charges	20,899	0	20,899	0
Restructuring costs	0	526	0	526
Total operating expenses	31,571	10,707	42,003	22,467
Loss from operations	(23,352)	(1,819)	(26,349)	(4,877)
Interest income	41	17	74	22
Interest expense	(12)	(13)	(26)	(27)
Other (expense) income, net	(58)	23	(63)	65
Loss before income taxes	(23,381)	(1,792)	(26,364)	(4,817)
Benefit from income taxes	(402)	(718)	(404)	(1,413)
Net loss from continuing operations	(22,979)	(1,074)	(25,960)	(3,404)
Net loss	0	(7,704)	0	6,808
Net (loss) income	$ (22,979)	$ (8,778)	$ (25,960)	$ 3,404
Basic:
Continuing operations (usd per share)	$ (1.37)	$ (0.06)	$ (1.55)	$ (0.19)
Discontinued operations (usd per share)	0	(0.44)	0	0.39
Diluted:
Continuing operations (usd per share)	(1.37)	(0.06)	(1.55)	(0.19)
Discontinued operations (usd per share)	$ 0	$ (0.44)	$ 0	$ 0.39
Shares used in computing net income (loss) per share of common stock:
Basic (usd per share)	16,742	17,455	16,775	17,468
Diluted (usd per share)	16,742	17,455	16,775	17,531

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows - USD ($)	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash Flows from Operating Activities:
Net (loss) income	$ (25,960,000)	$ 3,404,000
Adjustments to reconcile net (loss) income to net cash used in operating activities:
Depreciation and amortization	2,140,000	3,816,000
Amortization of intangible assets	0	1,229,000
Loss on disposal of fixed assets	(16,000)	217,000
Stock-based compensation	746,000	891,000
Goodwill impairment	20,899,000	0
Impairment charges - assets held for sale	0	7,311,000
Gain on sale of businesses	0	(17,062,000)
Deferred income taxes	(350,000)	(140,000)
Changes in operating assets and liabilities, net of effect of divestitures:
Accounts receivable	66,000	2,215,000
Inventory	1,057,000	1,858,000
Prepaid expenses and other current assets	(954,000)	957,000
Other assets	7,000	124,000
Accounts payable	(2,668,000)	(6,717,000)
Partner commissions payable	0	(2,003,000)
Accrued royalties payables	(2,002,000)	(2,404,000)
Accrued and other liabilities	(4,146,000)	(5,757,000)
Assets and liabilities held for sale	0	(1,849,000)
Deferred revenue	65,000	(1,153,000)
Net cash used in operating activities	(11,116,000)	(15,063,000)
Cash Flows from Investing Activities:
Purchase of short-term investments	(9,920,000)	(14,424,000)
Proceeds from maturities of short-term investments	4,464,000	0
Purchase of property and equipment	(2,263,000)	(377,000)
Capitalization of software and website development costs	(1,172,000)	(1,349,000)
Proceeds from disposal of fixed assets	29,000	0
Change in restricted cash	3,417,000	(3,417,000)
Proceeds from sale of businesses, net of expenses paid	0	37,653,000
Net cash provided by (used in) investing activities	(5,445,000)	18,086,000
Cash Flows from Financing Activities:
Principal payments on capital lease obligations	(279,000)	(223,000)
Proceeds from exercise of common stock options	5,000	390,000
Repurchases of common stock	(498,000)	(2,287,000)
Net cash used in financing activities	(772,000)	(2,120,000)
Change in cash of discontinued operations	0	424,000
Net increase (decrease) in cash and cash equivalents	(17,333,000)	1,327,000
Cash and cash equivalents - beginning of period	32,663,000	26,971,000
Cash and cash equivalents - end of period	15,330,000	28,298,000
Supplemental Disclosures of Cash Flow Information:
Cash paid for interest	26,000	43,000
Income taxes paid during the period	17,000	81,000
Non-cash Investing and Financing Activities:
Accrued purchases of property and equipment	$ 160,000	$ 2,000

Business and Summary of Signifi

Business and Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
Business and Summary of Significant Accounting Policies	Business and Summary of Significant Accounting Policies Business CafePress Inc., or the Company, formerly CafePress.com, Inc., was incorporated under the laws of the State of California on October 18, 1999 . On January 19, 2005 , the Company was reincorporated under the laws of the State of Delaware. On June 7, 2011, the name of the Company was changed to CafePress Inc. The Company is a leading online retailer of personalized products offering a wide variety of expressive gifts and accessories including t-shirts and apparel, mugs and drinkware, and home goods such as custom shower curtains and bed coverings. The Company conducts most of its business on its primary United States based domain, CafePress.com and also operates CafePress branded websites for the markets in the United Kingdom, Canada, and Australia. The Company also sells CafePress branded products through other online retail partners. The Company’s products are customized with expressive designs contributed through a variety of means including crowd-sourced user generated content, stock art licenses and licensed content relationships with large entertainment companies and brands. The Company’s facility in Louisville, Kentucky has innovative technology and manufacturing processes that enable the Company to provide high-quality customized products that are individually built to order. The Company’s proprietary processes enable the Company to produce a broad range of merchandise efficiently, cost effectively and quickly. The Company also maintains a diverse network of contract manufacturers that gives the Company the ability to broaden its manufacturing capabilities and produce in certain international locales. Basis of Presentation The accompanying unaudited condensed financial statements include the accounts of the Company and its wholly owned subsidiary. All intercompany transactions and balances have been eliminated. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles, or U.S. GAAP, and follow the requirements of the Securities and Exchange Commission, or SEC, for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by U.S. GAAP can be condensed or omitted. These financial statements have been prepared on the same basis as the Company’s annual financial statements and, in the opinion of management, reflect all adjustments, consisting only of normal recurring adjustments that are necessary for a fair statement of the Company’s financial information. The results of operations for the three and six months ended June 30, 2016 are not necessarily indicative of the results to be expected for the year ending December 31, 2016 or for any other interim period or for any other future year. The balance sheet as of December 31, 2015 has been derived from audited financial statements at that date but does not include all of the information required by U.S. GAAP for complete financial statements. The accompanying condensed consolidated financial statements and related financial information should be read in conjunction with the audited financial statements and the related notes thereto for the year ended December 31, 2015 included in the Company’s Annual Report on Form 10-K as filed on March 30, 2016 with the SEC. Segments The Company’s chief operating decision maker is its Chief Executive Officer, who manages the Company’s operations on a consolidated basis for purposes of allocating resources. As a result, the Company has a single operating segment which is the Company’s single reportable segment. All of the Company’s principal operations and decision-making functions are located in the United States. Discontinued operations Prior year financial statements have been recast to reflect the sale of the Company’s Art and Groups businesses in the first quarter of 2015 and the sale of EZ Prints, Inc. assets in the third quarter of 2015 in accordance with the Financial Accounting Standards Board Accounting Standards Codification 205-20-55 within discontinued operations. Results of discontinued operations are excluded from the accompanying notes to the consolidated financial statements for all periods presented, unless otherwise noted. See Note 4, Discontinued Operations , in the accompanying Notes to Consolidated Financial Statements. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates, including but not limited to those related to revenue recognition, provisions for doubtful accounts, credit card chargebacks, sales returns, inventory write-downs, stock-based compensation, legal contingencies, depreciable lives, asset impairments, accounting for business combinations, and income taxes including required valuation allowances. The Company bases its estimates on historical experience, projections for future performance and other assumptions that it believes to be reasonable under the circumstances. Actual results could differ materially from those estimates. Revenue Recognition The Company recognizes revenues from product sales, net of estimated returns based on historical experience, when the following revenue recognition criteria are met: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred or the service has been provided; (3) the selling price or fee revenue earned is fixed or determinable; and (4) collection of the resulting receivable is reasonably assured. The Company evaluates whether it is appropriate to record the gross amount of product sales and related costs as product revenues or the net amount earned as fulfillment revenues. Revenues are recorded at the gross amount when the Company is the primary obligor in a transaction, is subject to inventory and credit risk, has latitude in establishing prices and selecting suppliers, or has most of these indicators. When the Company is not the primary obligor and does not take inventory risk, revenues will be recorded at the net amount received by the Company as fulfillment revenues. Product sales and shipping revenues are recognized net of promotional discounts, rebates, and return allowances. Revenues from product sales and services rendered are recorded net of sales and consumption taxes. The Company periodically provides incentive offers to customers to encourage purchases. Such offers include current discount offers, such as percentage discounts off current purchases, and other similar offers. Current discount offers, when used by customers, are treated as a reduction of revenues. The Company maintains an allowance for estimated future returns and credit card chargebacks based on current period revenues and historical experience. The Company accounts for flash deal promotions through group-buying websites as gift certificates. Deferred revenue is recorded at the time of the promotion based on the gross fee payable by the end customer as the Company considers it is the primary obligor in the transaction. The Company defers the costs for the direct and incremental sales commission retained by group-buying websites and records the associated expense as a component of sales and marketing expense at the time revenue is recognized. Revenue is recognized on redemption of the offer and delivery of the product to the Company’s customers. The Company recognizes gift certificate breakage from flash deal promotions, its internally managed voucher promotions, and gift certificate sales as a component of revenues. The Company monitors historical breakage experience and when sufficient history of redemption exists, the Company records breakage revenue in proportion to actual gift certificate redemptions. When the Company concludes that insufficient history of redemption and breakage experience exists, breakage revenue is recognized upon expiration of the flash deal promotion or in the period the Company considers the obligation for future performance related to such breakage to be remote. Changes in customers’ behavior could impact the amounts that are ultimately redeemed and could affect the breakage recognized as a component of revenues. Deferred revenues include funds received in advance of product fulfillment, deferred revenue for flash deal promotions and gift cards and amounts deferred until applicable revenue recognition criteria are met. Direct and incremental costs associated with deferred revenue are deferred, classified as deferred costs and recognized in the period revenue is recognized. Goodwill Goodwill represents the excess of the purchase price over the fair value of assets acquired and liabilities assumed related to a business combination. Goodwill is presumed to have an indefinite life and is not subject to amortization. The Company conducts a quantitative test for the impairment of goodwill at least annually, as of July 1 of each year, and also whenever events or changes in circumstances indicate that the carrying value of the goodwill may not be fully recoverable. The quantitative impairment test is a two-step process. The first step is a comparison of the fair value of the reporting unit with its carrying amount, including goodwill. If this step indicates impairment, then the Company needs to proceed with Step 2 where the potential impairment loss is measured as the excess of recorded goodwill over its implied fair value. The Company determined its reporting units for goodwill impairment testing by identifying those components at, or one level below, the operating segments that (1) constitute a business, (2) have discrete financial information available, and (3) are regularly reviewed by segment management. As of the dates of the Company’s annual goodwill impairment test and other goodwill impairment analyses, it had one operating segment and one reporting unit. In performing the Company’s quantitative impairment tests, it determines the fair value of its reporting unit through a combination of the income and market approaches. Under the income approach, the Company estimates fair value based on a discounted cash flow model using a discount rate determined by management to be commensurate with the risk inherent in the Company’s current business model. Under the market approach, the Company estimates the fair value of its overall business based on its current market capitalization, market comparables, or other objective evidence of fair value. In the first quarter of 2015, the Company closed the sale of its Art and Groups businesses and in the second quarter of 2015 classified its EZ Prints business as “Assets Held for Sale” and “Liabilities Held for Sale” in accordance with FASB Accounting Standards Codification (“ASC”) 205-20-55, Presentation of Financial Statements and ASC 360, Property, Plant, and Equipment. The Company considered these items to be triggering events, and accordingly, performed goodwill impairment tests as of March 31, 2015 and June 30, 2015. These tests resulted in estimated excess fair value over carrying value of 3% and 6% , respectively. Accordingly, the Company concluded that step two of the goodwill impairment tests was not required at either of these dates and no impairment was recorded. In the third quarter of 2015, the Company performed its annual impairment test as of July 1, 2015 and, subsequently, performed an impairment test as of September 1, 2015 upon the sale of its EZ Prints business assets, which it considered a triggering event. These tests resulted in estimated excess fair value over carrying value of 6% and 7% , respectively. Accordingly, the Company concluded that step two of the goodwill impairment tests was not required at either of these dates and no impairment was recorded. As of March 31, 2016, the Company's market capitalization was approximately $61.8 million compared to its carrying value of $67.5 million , which did not, in management’s view, suggest that the fair value estimates used in its previous impairment assessment required any adjustment as this shortfall is considered to be a temporary event. In addition, since September 1, 2015, the date of its last goodwill impairment analysis, there have been no material changes to its operations or financial forecasts. In the second quarter of 2016, the Company's common stock price experienced a further, sustained decline resulting in a diminished market capitalization. The common stock fell to a low of $3.10 per share on May 12, 2016 and had an average closing price of $3.21 from the date following the earnings release through May 31, 2016, the end of its fiscal month. On May 31, 2016, the Company’s market capitalization was $55.8 million compared to its carrying value of $66.0 million . Over the same time period, market capitalizations of peer group companies and the overall U.S. stock market recovered. Based upon the Company's declining market capitalization and shortfall from financial targets, the Company concluded that a triggering event had occurred and proceeded with an interim goodwill impairment test as of May 31, 2016. In performing the impairment test, the Company determined the fair value of its single reporting unit using an average of the income and market approaches. Under the income approach, the Company estimated fair value based on a discounted cash flow model using a 19% discount rate determined by management to be commensurate with the risk inherent in the Company’s current business model. A long term cash flow growth rate of 5% was used to determine the terminal value. Under the market approach, the Company calculated its fair value using a control premium of 20% . The control premium was not applied to its cash and short term investment assets. Based upon the Company's latest financial forecasts, and market capitalization, the step one analysis indicated that an impairment was likely and proceeded with a step two analysis. The Company, with the assistance of a third party valuation firm, performed step two of the goodwill impairment test which is a hypothetical analysis that calculates the implied fair value of goodwill in the same manner as if the Company was being acquired in a business combination in a non-taxable transaction as applied in the first step, including any significant increases in the fair value of tangible property and intangible assets. Assessing the fair value of goodwill includes making assumptions about future cash flows, discount rates and asset lives using then best available information. These assumptions are subject to a high degree of complexity and judgment. As part of the step two analysis, significant unrecorded intangible assets were identified, which included developed technology intangibles. Based on the Company’s step two analysis, the implied fair value of the Company's goodwill was zero . As a result, the Company recorded a $20.9 million non-cash goodwill impairment charge in the second quarter of fiscal 2016, which was reflected as Impairment charges in the consolidated statements of operations. The goodwill impairment charge did not adversely affect the Company’s cash flow, liquidity or compliance with financial covenants. The change in the carrying amount of goodwill is as follows: Carrying Amount Balance at December 31, 2015 $ 20,899 Impairment of goodwill (20,899 ) Balance at June 30, 2016 $ — Income taxes Deferred tax assets and liabilities are determined based on the differences between financial statement and tax basis of assets and liabilities, based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to an amount the Company estimates is more likely than not to be realized. The Company follows the authoritative accounting guidance prescribing a threshold and measurement attribute for the financial recognition and measurement of a tax position taken or expected to be taken in a tax return. The guidance also provides for de-recognition of tax benefits, classification on the balance sheet, interest and penalties, accounting in interim periods, disclosure and transition. The guidance utilizes a two-step approach for evaluating uncertain tax positions. Step one, recognition, requires a company to determine if the weight of available evidence indicates that a tax position is more likely than not to be sustained upon audit, including resolution of related appeals or litigation processes, if any. If a tax position is not considered, “more likely than not” to be sustained, then no benefits of the position are to be recognized. Step two, measurement, is based on the largest amount of benefit, which is more likely than not to be realized on ultimate settlement. There was no unrecognized tax benefit for any period presented. The Company recognizes interest and/or penalties related to all tax positions in income tax expense. To the extent that accrued interest and penalties do not ultimately become payable, amounts accrued will be reduced and reflected as a reduction of the overall income tax provision in the period that such determination is made. No interest or penalties have been accrued for any period presented. The Company has elected to use the “with and without” approach in determining the order in which tax attributes are utilized. As a result, the Company will only recognize a tax benefit for stock-based awards in additional paid-in capital if an incremental tax benefit is realized after all other tax attributes currently available to the Company have been utilized. The Company has weighed both positive and negative evidence and has determined that there is a need for a valuation allowance due to the existence of three years of historical cumulative losses which the Company considered significant verifiable negative evidence. As of June 30, 2016 , the Company maintains a valuation allowance on substantially all of its deferred tax assets. Recent accounting pronouncements In March 2016, the FASB issued ASU 2016-04, Recognition of Breakage for Certain Prepaid Stored-Value Products . The ASU exempts prepaid gift certificates from the guidance on extinguishing financial liabilities. The gift certificates will be subject to breakage accounting consistent with the new revenue standard, see below. Breakage should only be recognized to the extent that it is probable that a significant reversal of the recognized breakage amount will not subsequently occur. The ASU is effective for fiscal years beginning after December 15, 2017, and is applied either using a modified retrospective transition method or retrospectively. Early adoption is permitted. Adoption of the standard is not expected to have a material impact on the consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . ASU 2016-02 requires lessees to recognize the following for all leases (with the exception of short-term leases) at the commencement date: a lease liability, which is a lessee‘s obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. Certain targeted improvements were made to align, where necessary, lessor accounting with the lessee accounting model and ASU 2014-9, Revenue from Contracts with Customers (Topic 606). The new lease guidance also simplified the accounting for sale and leaseback transactions primarily because lessees must recognize lease assets and lease liabilities. Lessees will no longer be provided with a source of off-balance sheet financing. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. ASU 2016-02 is effective for financial statements issued for annual periods beginning after December 15, 2018. The Company is currently in the process of evaluating the impact of adoption of ASU 2016-02 on our financial statements. In July 2015, the FASB issued ASU 2015-11, Inventory - Simplifying the Measurement of Inventory (Topic 330) . ASU 2015-11 requires inventory to be subsequently measured using the lower of cost and net realizable value, thereby eliminating the market value approach. Net realizable value is defined as the “estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation.” ASU 2015-11 is effective for reporting periods beginning after December 15, 2016 and is applied prospectively. Early adoption is permitted. The Company is evaluating the impact, if any, of adopting this new accounting guidance on its financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), that requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The new standard will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard will be effective for the Company beginning January 1, 2018. Early application is not permitted. The new standard permits the use of either the retrospective or cumulative effect transition method. The Company is currently evaluating adoption methods and whether this standard will have a material impact on its financial statements and related disclosures.

Investments and Fair Value of F

Investments and Fair Value of Financial Instruments	6 Months Ended
	Jun. 30, 2016
Fair Value Disclosures [Abstract]
Investments and Fair Value of Financial Instruments	Investments and Fair Value of Financial Instruments The components of the Company’s cash equivalents and short-term investments, including unrealized gains and losses associated with each are as follows (in thousands): June 30, 2016 Amortized cost Gross unrealized gains Gross unrealized losses Fair Value Cash equivalents: Money market funds $ 6,623 $ — $ — $ 6,623 Short-term investments: Certificates of deposit, 90 days or greater 23,066 — — 23,066 Total cash equivalents and short-term investments $ 29,689 $ — $ — $ 29,689 December 31, 2015 Amortized cost Gross unrealized gains Gross unrealized losses Fair Value Cash equivalents: Money market funds $ 24,116 $ — $ — $ 24,116 Short-term investments: Certificates of deposit, 90 days or greater 17,610 — — 17,610 Total cash equivalents and short term investments $ 41,726 $ — $ — $ 41,726 The following table represents the Company’s fair value hierarchy for its financial assets and liabilities (in thousands): June 30, 2016 Fair Value Level I Cash equivalents: Money market funds $ 6,623 $ 6,623 Total financial assets $ 6,623 $ 6,623 December 31, 2015 Fair Value Level I Cash equivalents: Money market funds $ 24,116 $ 24,116 Total financial assets $ 24,116 $ 24,116 The Company holds money market funds that invest primarily in high-quality short-term money market instruments, including certificates of deposit, banker’s acceptances, commercial paper, and other money market securities. Investments in these funds are not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency. As of June 30, 2016 , the Company held certificates of deposits, classified as cash equivalents or short-term investments, based on the original term. A certificate of deposit is a time deposit with a fixed term that is commonly offered by banks, thrifts, and credit unions. As of June 30, 2016 , the certificates of deposit held by the Company had a term of 365 days or less. All certificates of deposit held by the Company were within the insured limits of the FDIC.

Balance Sheet Items

Balance Sheet Items	6 Months Ended
	Jun. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Balance Sheet Items	Balance Sheet Items Inventory, net are comprised of the following (in thousands): June 30, December 31, Raw materials $ 3,136 $ 4,118 Finished goods — 38 Inventory in-transit 27 29 Less: reserve for obsolescence (370 ) (335 ) Inventory, net $ 2,793 $ 3,850 Property and equipment, net are comprised of the following (in thousands): June 30, December 31, Building $ 3,601 $ 1,816 Computer equipment and office furniture 7,374 13,401 Computer software 1,549 2,405 Internal use software and website development 10,829 9,638 Production equipment 18,532 18,595 Leasehold improvements 2,872 2,851 Total property and equipment 44,757 48,706 Less: accumulated depreciation and amortization (34,702 ) (40,082 ) Property and equipment, net $ 10,055 $ 8,624 Depreciation and amortization expense was $1.0 million and $1.6 million for the three months ended June 30, 2016 and 2015 , respectively, and $2.1 million and $3.3 million for the six months ended June 30, 2016 and 2015 , respectively. Accrued liabilities consist of the following (in thousands): June 30, December 31, Payroll and employee related expense $ 1,922 $ 2,374 Production costs 1,105 3,245 Accrued sales and business taxes 844 1,180 Unclaimed royalty payments 830 830 Professional services 626 548 Other accrued liabilities 554 747 Accrued advertising 427 1,427 Royalties - minimum guarantee 99 118 Allowance for sales returns and chargebacks 50 232 Accrued liabilities $ 6,457 $ 10,701 The following table presents the changes in the allowance for sales returns and chargebacks (in thousands): Three Months Ended Six Months Ended 2016 2015 2016 2015 Balance, beginning of period $ 60 $ 109 $ 232 $ 294 Add: provision 518 554 992 1,396 Less: deductions and other adjustments (528 ) (556 ) (1,174 ) (1,583 ) Balance, end of period $ 50 $ 107 $ 50 $ 107

Discontinued Operations

Discontinued Operations	6 Months Ended
	Jun. 30, 2016
Discontinued Operations and Disposal Groups [Abstract]
Discontinued Operations	Discontinued Operations In the first quarter of 2015, in order to improve the Company’s core business and further enhance stockholder value, the Company entered into definitive agreements to divest its Art and Groups businesses for a total of approximately $40.2 million in cash. The Art and Groups asset sales closed in the first fiscal quarter of 2015. The Company has classified the assets and liabilities associated with the Art and Groups businesses as assets and liabilities held for sale in the Company’s consolidated balance sheet at December 31, 2014 in accordance with ASC 360-10-45 which was prior to January 1, 2015, the effective date of the new accounting standards in relation to discontinued operations reporting. See Note 1. Business and Summary of Significant Accounting Policies, Recent Accounting Pronouncements. Therefore, the Company did not apply the new accounting standard to the divestitures of Art and Groups businesses although the businesses were disposed of after the effective date. In the second quarter of 2015, the Company committed to a plan to divest its EZ Prints business. Certain assets and liabilities of the EZ Prints business have been classified as assets and liabilities held for sale in accordance with ASC 205-20-55 in the Company's Consolidated Balance Sheets and have been included in discontinued operations for all periods presented. In addition, condensed cash flow information for all periods presented is included. In the second quarter of 2015, the Company reviewed the carrying value of the EZ Prints assets as compared to the fair value of such assets as measured by the offers received. Accordingly, as prescribed by ASC 360, Impairment or Disposal of Long-Lived Assets , the Company recorded an impairment charge of $7.3 million to lower the carrying value of the assets to fair value, which is included in the operating section of “Discontinued Operations” in the Consolidated Statement of Operations. The Company completed the sale of its EZ Prints business in the third quarter of 2015 and recorded a gain on the sale of $0.3 million which is included in the "Other (income)\expense" section of “Discontinued Operations” in the Consolidated Statement of Operations. Income (loss) from discontinued operations, net of tax, in the Company’s Consolidated Statements of Operations, represents the net income from the disposal of assets and liabilities associated with the sale of Art and Groups in the first quarter of 2015, the impairment charge associated with the writedown of EZ Prints net assets to fair value in the second quarter of 2015, the gain on disposal of the EZ Prints business in the third quarter of 2015, as well as the historical operations of the Art, Groups, and EZ Prints businesses for all periods presented in accordance with ASC 205-20-55. EZ Prints business asset sale On September 1, 2015, the Company sold its EZ Prints business, which provided a suite of enterprise class deployable software products and services focused on private label e-commerce customization services, pursuant to an asset purchase agreement with EZ Prints Holdings, Inc. (“EZP Holdings”). Vincent Sarrecchia, the chief executive officer of EZP Holdings, was previously serving as the interim chief executive officer of the EZ Prints business pursuant to a consulting agreement with the Company. Total consideration for the sale was $0.6 million , of which $0.1 million has been received and $0.5 million is in the form of a note receivable due on or before December 31, 2018. As part of the closing of the sale, the Company paid a current obligation of $1.25 million to one of the Company's current customers. The Company also entered into a transition services agreement with EZP Holdings for a maximum period of one year from the closing date, a license agreement whereby the Company continues to have the right to use certain software, and cross fulfillment agreements whereby each party agrees to fulfill certain products for the other party. The Company's management is required to estimate the expected continuing cash flows against the cash flows of the disposed business in order to determine if discontinued operations presentation is applicable. Management has estimated the expected future cash flows in relation to the transition services agreement, the license agreement, and the cross fulfillment agreements on a gross basis in relation to the expected cash flows of the disposed business and has concluded that these cash flows will be insignificant to the disposed business. The Company will have no involvement in the management of EZP Holdings. As a result, management has applied discontinued operations presentation to the EZ Prints business asset sale in accordance with the ASC 205-20-55. Art business asset sale On March 1, 2015, the Company sold its Art business, which enabled users to transform photographs and images into canvas works of art, pursuant to an asset purchase agreement with Circle Graphics, Inc. (“Circle Graphics”). The Company received proceeds of $28.5 million , net of expenses, of which $2.4 million was placed in escrow for its indemnification obligations pursuant to an escrow agreement between the Company, Circle Graphics and the escrow agent. The amount in escrow was released in its entirety in June 2016. The Company also entered into a transition services agreement with Circle Graphics for a period of one year from the closing date, and a commercial agreement whereby certain products purchased on the Company’s websites will be exclusively fulfilled by Circle Graphics for a period of three years following the closing date. There is no material relationship between the Company and Circle Graphics. Management is required to estimate the expected continuing cash flows against the cash flows of the disposed business in order to determine if discontinued operations presentation is applicable. Management has estimated the expected future cash flows in relation to the commercial agreement and the transition services agreement on a gross basis in relation to the expected cash flows of the disposed business and has concluded that these cash flows will be insignificant to the disposed business. The Company will have no involvement in the management of Circle Graphics. As a result, management has applied discontinued operations presentation to the Art business asset sale in accordance with the ASC 205-20-55. Groups business asset sale On March 6, 2015, the Company sold its Groups business, which provided personalized apparel and merchandise for groups and organizations through its e-commerce websites, pursuant to an asset purchase agreement with Logo Sportswear Inc. (“Logo Sportswear”). The Company received proceeds of $9.2 million , net of expenses, of which $1.0 million was placed in escrow for its indemnification obligations pursuant to an escrow agreement between the Company, Logo Sportswear and the escrow agent. The amount in escrow was released in its entirety in June 2016. In connection with the sale of the Groups business, the Company also entered into a transition services agreement for a period of one year from the closing date and referral agreement with Logo Sportswear for a period of two years following the closing date. There is no material relationship between the Company and Logo Sportswear. Management is required to estimate the expected continuing cash flows against the cash flows of the disposed business in order to determine if discontinued operations presentation is applicable. Management has estimated the expected future cash flows in relation to the referral agreement and the transition services agreement on a gross basis in relation to the expected cash flows of the disposed business and has concluded that these cash flows will be insignificant to the disposed business. The Company will have no involvement in the management of Logo Sportswear. As a result, management has applied discontinued operations presentation to the Groups business asset sale in accordance with the ASC 205-20-55. Financial information for the combined discontinued operations is summarized as follows (in thousands): Three Months Ended Six Months Ended Net revenues $ 3,888 $ 19,840 Cost of net revenues 2,892 12,888 Gross profit 996 6,952 Operating expenses: Sales and marketing 373 4,638 Technology and development 1,153 2,567 General and administrative 413 1,093 Impairment charges 7,311 7,311 Total operating expenses 9,250 15,609 Loss from operations (8,254 ) (8,657 ) Interest expense (8 ) (17 ) Gain on sale of assets 62 17,062 Income before income taxes (8,200 ) 8,388 Provision for income taxes (496 ) 1,580 Net income from discontinued operations $ (7,704 ) $ 6,808 Condensed cash flow information for EZ Prints discontinued operations is summarized as follows (in thousands): Six Months Ended Cash Flows from Operating Activities: Net loss $ (8,111 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 555 Amortization of intangible assets 1,229 Stock-based compensation 32 Impairment charge 7,311 Change in operating assets and liabilities (1,265 ) Net cash used in operating activities (249 ) Cash Flows from Investing Activities: Purchase of property and equipment (48 ) Capitalization of software and website development costs (127 ) Net cash used in investing activities (175 ) Net decrease in cash and cash equivalents (424 ) Cash and cash equivalents — beginning of period 3,678 Cash and cash equivalents — end of period $ 3,254

Line of Credit

Line of Credit	6 Months Ended
	Jun. 30, 2016
Debt Disclosure [Abstract]
Line of Credit	Line of Credit The Company has a credit agreement which provides for a revolving credit facility of $6.5 million to fund acquisitions, share repurchases and other general corporate needs. The credit line is available through June 2017 and bears interest at either the London Inter Bank Offer Rate + 1.75% or the bank’s prime rate + .75% . This credit agreement requires the Company to comply with various financial covenants, all of which the Company was in compliance with at June 30, 2016 and December 31, 2015 , and is secured by all assets of the Company. In connection with the Company's facility lease in Louisville, Kentucky, the Company is required to have a $1.5 million letter of credit to guarantee the lease. The letter of credit bears interest at 1.5% per annum and will expire no later than September 15, 2020 . Excluding the $1.5 million letter of credit, there were no draws against the facility as of June 30, 2016 and $5.0 million remained available.

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jun. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	Stock-Based Compensation Stock option activity The following table summarizes stock option activity related to shares of common stock (in thousands, except the weighted average exercise price): Number of Stock Options Outstanding Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Outstanding — December 31, 2015 2,168 $ 6.48 5.20 $ 118 Granted 723 3.61 Exercised (1 ) 3.20 Forfeited (234 ) 10.68 Outstanding — June 30, 2016 2,656 $ 5.33 6.44 $ 27 Vested and expected to vest - June 30, 2016 1,771 $ 5.97 5.65 $ 21 Options exercisable — June 30, 2016 887 $ 7.53 4.30 $ 11 Restricted stock unit activity The Company may grant restricted stock units, or RSUs, to its employees, consultants or outside directors under the provisions of the Company’s Amended and Restated 2012 Stock Incentive Plan. The cost of RSUs is determined using the fair value of the Company’s common stock on the date of grant. Compensation cost is amortized on a straight-line basis over the requisite service period. Restricted stock unit activity is summarized as follows (unit numbers in thousands): Number of Units Outstanding Weighted Average Grant Date Fair Value Per Unit Awarded and unvested at December 31, 2015 329 $ 4.40 Granted 493 3.56 Vested (86 ) 4.24 Forfeited and canceled (15 ) 4.60 Awarded and unvested at June 30, 2016 721 $ 3.84 Stock-based compensation expense The Company estimated the fair value of each option award on the date of grant using the Black-Scholes option-pricing model and the assumptions noted in the following table. In the three and six months ended June 30, 2016 , the Company calculated volatility using its historical volatility as it had sufficient public trading history. In all prior periods, expected volatility is based upon the volatility of a group of publicly traded industry peer companies. The expected term of options granted gave consideration to historical exercises, post-vesting cancellations and the options’ contractual term. In all prior periods, expected term was calculated using the simplified method. For all periods presented, the risk-free rate is based on the rates in effect at the time of grant for zero coupon U.S. Treasury notes with maturities approximately equal to each grant’s expected life and a dividend yield of zero is applied since the Company has not historically paid dividends and has no intention to pay dividends in the near future. Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Expected term (in years) 6.2 4.9 6.2 4.9 Risk-free interest rate 1.5 % 1.3 % 1.5 % 1.3 % Expected volatility 58 % 47 % 58 % 47 % Expected dividend rate 0.0 % 0.0 % 0.0 % 0.0 % Included in the stock option grants for the six months ended June 30, 2016 are 623,000 non-statutory stock options that have both performance criteria tied to the Company’s 2016 financial performance and three year service criteria. Compensation cost associated with these performance-based stock options is recognized using an attribution model and ultimately based on whether or not satisfaction of the performance criteria is probable. If in the future, situations indicate that the performance criteria are not probable, then no further compensation cost will be recorded and any previous costs will be reversed. As of June 30, 2016 , the Company has estimated that it is not probable that the performance criteria will be met and, accordingly, no stock compensation expense for the performance shares has been recorded. Cost of net revenues and operating expenses include stock-based compensation as follows (in thousands): Three Months Ended Six Months Ended 2016 2015 2016 2015 Cost of net revenues $ 12 $ 42 $ 36 $ 82 Sales and marketing 78 100 137 194 Technology and development 29 32 58 103 General and administrative 349 249 515 473 Total stock-based compensation expense $ 468 $ 423 $ 746 $ 852 Capitalizable stock-based compensation relating to software development was not significant for any period presented.

Stock Repurchase Program

Stock Repurchase Program	6 Months Ended
	Jun. 30, 2016
Equity [Abstract]
Stock Repurchase Program	Stock Repurchase Program In May 2015, the Company’s Board of Directors approved a stock repurchase program of up to 20% of the outstanding shares of its common stock or an aggregate of 3.5 million shares of the Company’s common stock, whichever is less, over a period of one year . Any stock repurchases may be made through open market and privately negotiated transactions, or as otherwise may be determined by management, at times and in such amounts as management deems appropriate, and may or may not be made pursuant to one or more Rule 10b5-1trading plans adopted in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Under a Rule 10b5-1trading plan, the Company may repurchase its shares regardless of any subsequent possession of material nonpublic information. The timing and amount of stock repurchased, if any, will depend on a variety of factors including stock price, market conditions, corporate and regulatory requirements (including applicable securities laws and regulations and the rules of The NASDAQ Stock Market), any additional constraints related to material inside information the Company may possess, and capital availability. This repurchase program was extended indefinitely by the Board of Directors in April 2016, however it can be terminated at any time. Share repurchase activity was as follows (in thousands, except per share data): Three Months Ended Six Months Ended 2016 2015 2016 2015 Total number of shares repurchased 98 489 146 489 Aggregate cost of shares repurchased $ 322 $ 2,287 $ 498 $ 2,287 Average cost per share $ 3.28 $ 4.67 $ 3.41 $ 4.67

Net Income (Loss) per Share of

Net Income (Loss) per Share of Common Stock	6 Months Ended
	Jun. 30, 2016
Earnings Per Share [Abstract]
Net Income (Loss) per Share of Common Stock	Net Income (Loss) per Share of Common Stock Basic net income (loss) per share is computed by dividing the net income (loss) attributable to common shares for the period by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share attributed to common shares is computed by dividing the net loss attributable to common shares for the period by the weighted average number of common and potential common shares outstanding during the period, if the effect of each class of potential common shares is dilutive. Potential common shares include restricted stock units and incremental shares of common stock issuable upon the exercise of stock options. The following table sets forth the computation of the Company’s basic and diluted net income (loss) per share of common stock (in thousands, except for per share amounts). Three Months Ended Six Months Ended 2016 2015 2016 2015 Numerator: Net loss from continuing operations $ (22,979 ) $ (1,074 ) $ (25,960 ) $ (3,404 ) (Loss) income from discontinued operations, net of tax — (7,704 ) — 6,808 Net (loss) income $ (22,979 ) $ (8,778 ) $ (25,960 ) $ 3,404 Shares used in computing net (loss) income per share of common stock: Basic 16,742 17,455 16,775 17,468 Diluted 16,742 17,455 16,775 17,531 Net (loss) income per share of common stock: Basic: Continuing operations $ (1.37 ) $ (0.06 ) $ (1.55 ) $ (0.19 ) Discontinued operations $ — $ (0.44 ) $ — $ 0.39 Total $ (1.37 ) $ (0.50 ) $ (1.55 ) $ 0.19 Diluted: Continuing operations $ (1.37 ) $ (0.06 ) $ (1.55 ) $ (0.19 ) Discontinued operations $ — $ (0.44 ) $ — $ 0.39 Total $ (1.37 ) $ (0.50 ) $ (1.55 ) $ 0.19 The following outstanding shares of potentially dilutive securities were excluded from the computation of diluted net income (loss) per share of common stock for the periods in which the Company incurred a loss because including them would have been antidilutive: June 30, 2016 2015 Stock options to purchase common stock 2,656 2,321 Restricted stock units 721 391

Segment Information

Segment Information	6 Months Ended
	Jun. 30, 2016
Segment Reporting [Abstract]
Segment Information	Information The Company’s revenues by geographic region, based on the location to where the product was shipped, are summarized as follows (in thousands): Three Months Ended Six Months Ended 2016 2015 2015 2014 United States $ 17,709 $ 19,127 $ 33,918 $ 39,835 International 2,132 2,637 4,001 5,505 Total $ 19,841 $ 21,764 $ 37,919 $ 45,340 All of the Company’s long-lived assets are located in the United States.

Related Party Transaction

Related Party Transaction	6 Months Ended
	Jun. 30, 2016
Related Party Transactions [Abstract]
Related Party Transaction	Related Party Transaction On September 1, 2015, the Company sold its EZ Prints business, which provided a suite of enterprise class deployable software products and services focused on private label e-commerce customization services, pursuant to an asset purchase agreement with EZP Holdings. Vincent Sarrecchia, the chief executive officer of EZP Holdings, was previously serving as the interim chief executive officer of the EZ Prints business pursuant to a consulting agreement with the Company. Total consideration for the sale was $0.6 million , of which $0.1 million has been received by the Company and $0.5 million is in the form of a non-interest bearing note receivable which is outstanding at June 30, 2016 and it is due on or before December 31, 2018.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2016
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events On August 1, 2016, the Company initiated a plan to transition portions of the remaining workforce in Hayward, California to our headquarters in Louisville, Kentucky. This is an effort to continue to find efficiencies in our operations and streamline the company. The California office has approximately 34 employees in various roles related to marketing, technology, legal and accounting. Approximately 17 employees were terminated on August 1, transition plans for five others were set in place, and the remainder will work remotely for the foreseeable future. No immediate plans have been established for the physical office in Hayward, California. The financial impact is not fully determinable at this time, but charges including severance, recruiting costs, paid benefits, and lease breakage are expected to be recorded as a restructuring charge in the third and fourth quarters. At this time, the Company does not believe the transition will be material to our ongoing efforts to revitalize the operation.

Business and Summary of Signi17

Business and Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed financial statements include the accounts of the Company and its wholly owned subsidiary. All intercompany transactions and balances have been eliminated. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles, or U.S. GAAP, and follow the requirements of the Securities and Exchange Commission, or SEC, for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by U.S. GAAP can be condensed or omitted. These financial statements have been prepared on the same basis as the Company’s annual financial statements and, in the opinion of management, reflect all adjustments, consisting only of normal recurring adjustments that are necessary for a fair statement of the Company’s financial information. The results of operations for the three and six months ended June 30, 2016 are not necessarily indicative of the results to be expected for the year ending December 31, 2016 or for any other interim period or for any other future year. The balance sheet as of December 31, 2015 has been derived from audited financial statements at that date but does not include all of the information required by U.S. GAAP for complete financial statements. The accompanying condensed consolidated financial statements and related financial information should be read in conjunction with the audited financial statements and the related notes thereto for the year ended December 31, 2015 included in the Company’s Annual Report on Form 10-K as filed on March 30, 2016 with the SEC.
Segments	Segments The Company’s chief operating decision maker is its Chief Executive Officer, who manages the Company’s operations on a consolidated basis for purposes of allocating resources. As a result, the Company has a single operating segment which is the Company’s single reportable segment. All of the Company’s principal operations and decision-making functions are located in the United States.
Discontinued operations	Discontinued operations Prior year financial statements have been recast to reflect the sale of the Company’s Art and Groups businesses in the first quarter of 2015 and the sale of EZ Prints, Inc. assets in the third quarter of 2015 in accordance with the Financial Accounting Standards Board Accounting Standards Codification 205-20-55 within discontinued operations. Results of discontinued operations are excluded from the accompanying notes to the consolidated financial statements for all periods presented, unless otherwise noted. See Note 4, Discontinued Operations , in the accompanying Notes to Consolidated Financial Statements.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates, including but not limited to those related to revenue recognition, provisions for doubtful accounts, credit card chargebacks, sales returns, inventory write-downs, stock-based compensation, legal contingencies, depreciable lives, asset impairments, accounting for business combinations, and income taxes including required valuation allowances. The Company bases its estimates on historical experience, projections for future performance and other assumptions that it believes to be reasonable under the circumstances. Actual results could differ materially from those estimates.
Revenue Recognition	Revenue Recognition The Company recognizes revenues from product sales, net of estimated returns based on historical experience, when the following revenue recognition criteria are met: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred or the service has been provided; (3) the selling price or fee revenue earned is fixed or determinable; and (4) collection of the resulting receivable is reasonably assured. The Company evaluates whether it is appropriate to record the gross amount of product sales and related costs as product revenues or the net amount earned as fulfillment revenues. Revenues are recorded at the gross amount when the Company is the primary obligor in a transaction, is subject to inventory and credit risk, has latitude in establishing prices and selecting suppliers, or has most of these indicators. When the Company is not the primary obligor and does not take inventory risk, revenues will be recorded at the net amount received by the Company as fulfillment revenues. Product sales and shipping revenues are recognized net of promotional discounts, rebates, and return allowances. Revenues from product sales and services rendered are recorded net of sales and consumption taxes. The Company periodically provides incentive offers to customers to encourage purchases. Such offers include current discount offers, such as percentage discounts off current purchases, and other similar offers. Current discount offers, when used by customers, are treated as a reduction of revenues. The Company maintains an allowance for estimated future returns and credit card chargebacks based on current period revenues and historical experience. The Company accounts for flash deal promotions through group-buying websites as gift certificates. Deferred revenue is recorded at the time of the promotion based on the gross fee payable by the end customer as the Company considers it is the primary obligor in the transaction. The Company defers the costs for the direct and incremental sales commission retained by group-buying websites and records the associated expense as a component of sales and marketing expense at the time revenue is recognized. Revenue is recognized on redemption of the offer and delivery of the product to the Company’s customers. The Company recognizes gift certificate breakage from flash deal promotions, its internally managed voucher promotions, and gift certificate sales as a component of revenues. The Company monitors historical breakage experience and when sufficient history of redemption exists, the Company records breakage revenue in proportion to actual gift certificate redemptions. When the Company concludes that insufficient history of redemption and breakage experience exists, breakage revenue is recognized upon expiration of the flash deal promotion or in the period the Company considers the obligation for future performance related to such breakage to be remote. Changes in customers’ behavior could impact the amounts that are ultimately redeemed and could affect the breakage recognized as a component of revenues. Deferred revenues include funds received in advance of product fulfillment, deferred revenue for flash deal promotions and gift cards and amounts deferred until applicable revenue recognition criteria are met. Direct and incremental costs associated with deferred revenue are deferred, classified as deferred costs and recognized in the period revenue is recognized.
Goodwill	Goodwill Goodwill represents the excess of the purchase price over the fair value of assets acquired and liabilities assumed related to a business combination. Goodwill is presumed to have an indefinite life and is not subject to amortization. The Company conducts a quantitative test for the impairment of goodwill at least annually, as of July 1 of each year, and also whenever events or changes in circumstances indicate that the carrying value of the goodwill may not be fully recoverable. The quantitative impairment test is a two-step process. The first step is a comparison of the fair value of the reporting unit with its carrying amount, including goodwill. If this step indicates impairment, then the Company needs to proceed with Step 2 where the potential impairment loss is measured as the excess of recorded goodwill over its implied fair value. The Company determined its reporting units for goodwill impairment testing by identifying those components at, or one level below, the operating segments that (1) constitute a business, (2) have discrete financial information available, and (3) are regularly reviewed by segment management. As of the dates of the Company’s annual goodwill impairment test and other goodwill impairment analyses, it had one operating segment and one reporting unit. In performing the Company’s quantitative impairment tests, it determines the fair value of its reporting unit through a combination of the income and market approaches. Under the income approach, the Company estimates fair value based on a discounted cash flow model using a discount rate determined by management to be commensurate with the risk inherent in the Company’s current business model. Under the market approach, the Company estimates the fair value of its overall business based on its current market capitalization, market comparables, or other objective evidence of fair value. In the first quarter of 2015, the Company closed the sale of its Art and Groups businesses and in the second quarter of 2015 classified its EZ Prints business as “Assets Held for Sale” and “Liabilities Held for Sale” in accordance with FASB Accounting Standards Codification (“ASC”) 205-20-55, Presentation of Financial Statements and ASC 360, Property, Plant, and Equipment. The Company considered these items to be triggering events, and accordingly, performed goodwill impairment tests as of March 31, 2015 and June 30, 2015. These tests resulted in estimated excess fair value over carrying value of 3% and 6% , respectively. Accordingly, the Company concluded that step two of the goodwill impairment tests was not required at either of these dates and no impairment was recorded. In the third quarter of 2015, the Company performed its annual impairment test as of July 1, 2015 and, subsequently, performed an impairment test as of September 1, 2015 upon the sale of its EZ Prints business assets, which it considered a triggering event. These tests resulted in estimated excess fair value over carrying value of 6% and 7% , respectively. Accordingly, the Company concluded that step two of the goodwill impairment tests was not required at either of these dates and no impairment was recorded. As of March 31, 2016, the Company's market capitalization was approximately $61.8 million compared to its carrying value of $67.5 million , which did not, in management’s view, suggest that the fair value estimates used in its previous impairment assessment required any adjustment as this shortfall is considered to be a temporary event. In addition, since September 1, 2015, the date of its last goodwill impairment analysis, there have been no material changes to its operations or financial forecasts. In the second quarter of 2016, the Company's common stock price experienced a further, sustained decline resulting in a diminished market capitalization. The common stock fell to a low of $3.10 per share on May 12, 2016 and had an average closing price of $3.21 from the date following the earnings release through May 31, 2016, the end of its fiscal month. On May 31, 2016, the Company’s market capitalization was $55.8 million compared to its carrying value of $66.0 million . Over the same time period, market capitalizations of peer group companies and the overall U.S. stock market recovered. Based upon the Company's declining market capitalization and shortfall from financial targets, the Company concluded that a triggering event had occurred and proceeded with an interim goodwill impairment test as of May 31, 2016. In performing the impairment test, the Company determined the fair value of its single reporting unit using an average of the income and market approaches. Under the income approach, the Company estimated fair value based on a discounted cash flow model using a 19% discount rate determined by management to be commensurate with the risk inherent in the Company’s current business model. A long term cash flow growth rate of 5% was used to determine the terminal value. Under the market approach, the Company calculated its fair value using a control premium of 20% . The control premium was not applied to its cash and short term investment assets. Based upon the Company's latest financial forecasts, and market capitalization, the step one analysis indicated that an impairment was likely and proceeded with a step two analysis. The Company, with the assistance of a third party valuation firm, performed step two of the goodwill impairment test which is a hypothetical analysis that calculates the implied fair value of goodwill in the same manner as if the Company was being acquired in a business combination in a non-taxable transaction as applied in the first step, including any significant increases in the fair value of tangible property and intangible assets. Assessing the fair value of goodwill includes making assumptions about future cash flows, discount rates and asset lives using then best available information. These assumptions are subject to a high degree of complexity and judgment. As part of the step two analysis, significant unrecorded intangible assets were identified, which included developed technology intangibles. Based on the Company’s step two analysis, the implied fair value of the Company's goodwill was zero . As a result, the Company recorded a $20.9 million non-cash goodwill impairment charge in the second quarter of fiscal 2016, which was reflected as Impairment charges in the consolidated statements of operations. The goodwill impairment charge did not adversely affect the Company’s cash flow, liquidity or compliance with financial covenants.
Recent accounting pronouncements	Recent accounting pronouncements In March 2016, the FASB issued ASU 2016-04, Recognition of Breakage for Certain Prepaid Stored-Value Products . The ASU exempts prepaid gift certificates from the guidance on extinguishing financial liabilities. The gift certificates will be subject to breakage accounting consistent with the new revenue standard, see below. Breakage should only be recognized to the extent that it is probable that a significant reversal of the recognized breakage amount will not subsequently occur. The ASU is effective for fiscal years beginning after December 15, 2017, and is applied either using a modified retrospective transition method or retrospectively. Early adoption is permitted. Adoption of the standard is not expected to have a material impact on the consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . ASU 2016-02 requires lessees to recognize the following for all leases (with the exception of short-term leases) at the commencement date: a lease liability, which is a lessee‘s obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. Certain targeted improvements were made to align, where necessary, lessor accounting with the lessee accounting model and ASU 2014-9, Revenue from Contracts with Customers (Topic 606). The new lease guidance also simplified the accounting for sale and leaseback transactions primarily because lessees must recognize lease assets and lease liabilities. Lessees will no longer be provided with a source of off-balance sheet financing. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. ASU 2016-02 is effective for financial statements issued for annual periods beginning after December 15, 2018. The Company is currently in the process of evaluating the impact of adoption of ASU 2016-02 on our financial statements. In July 2015, the FASB issued ASU 2015-11, Inventory - Simplifying the Measurement of Inventory (Topic 330) . ASU 2015-11 requires inventory to be subsequently measured using the lower of cost and net realizable value, thereby eliminating the market value approach. Net realizable value is defined as the “estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation.” ASU 2015-11 is effective for reporting periods beginning after December 15, 2016 and is applied prospectively. Early adoption is permitted. The Company is evaluating the impact, if any, of adopting this new accounting guidance on its financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), that requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The new standard will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard will be effective for the Company beginning January 1, 2018. Early application is not permitted. The new standard permits the use of either the retrospective or cumulative effect transition method. The Company is currently evaluating adoption methods and whether this standard will have a material impact on its financial statements and related disclosures.

Business and Summary of Signi18

Business and Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
Schedule of Goodwill	The change in the carrying amount of goodwill is as follows: Carrying Amount Balance at December 31, 2015 $ 20,899 Impairment of goodwill (20,899 ) Balance at June 30, 2016 $ —

Investments and Fair Value of19

Investments and Fair Value of Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 2016
Fair Value Disclosures [Abstract]
Components of Cash, Cash Equivalents and Short-Term Investments, Including Unrealized Gains and Losses	The components of the Company’s cash equivalents and short-term investments, including unrealized gains and losses associated with each are as follows (in thousands): June 30, 2016 Amortized cost Gross unrealized gains Gross unrealized losses Fair Value Cash equivalents: Money market funds $ 6,623 $ — $ — $ 6,623 Short-term investments: Certificates of deposit, 90 days or greater 23,066 — — 23,066 Total cash equivalents and short-term investments $ 29,689 $ — $ — $ 29,689 December 31, 2015 Amortized cost Gross unrealized gains Gross unrealized losses Fair Value Cash equivalents: Money market funds $ 24,116 $ — $ — $ 24,116 Short-term investments: Certificates of deposit, 90 days or greater 17,610 — — 17,610 Total cash equivalents and short term investments $ 41,726 $ — $ — $ 41,726
Fair Value Hierarchy for its Financial Assets and Liabilities	The following table represents the Company’s fair value hierarchy for its financial assets and liabilities (in thousands): June 30, 2016 Fair Value Level I Cash equivalents: Money market funds $ 6,623 $ 6,623 Total financial assets $ 6,623 $ 6,623 December 31, 2015 Fair Value Level I Cash equivalents: Money market funds $ 24,116 $ 24,116 Total financial assets $ 24,116 $ 24,116

Balance Sheet Items (Tables)

Balance Sheet Items (Tables)	6 Months Ended
	Jun. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Inventory, Net	Inventory, net are comprised of the following (in thousands): June 30, December 31, Raw materials $ 3,136 $ 4,118 Finished goods — 38 Inventory in-transit 27 29 Less: reserve for obsolescence (370 ) (335 ) Inventory, net $ 2,793 $ 3,850
Property and Equipment, Net	Property and equipment, net are comprised of the following (in thousands): June 30, December 31, Building $ 3,601 $ 1,816 Computer equipment and office furniture 7,374 13,401 Computer software 1,549 2,405 Internal use software and website development 10,829 9,638 Production equipment 18,532 18,595 Leasehold improvements 2,872 2,851 Total property and equipment 44,757 48,706 Less: accumulated depreciation and amortization (34,702 ) (40,082 ) Property and equipment, net $ 10,055 $ 8,624
Components of Accrued Liabilities	Accrued liabilities consist of the following (in thousands): June 30, December 31, Payroll and employee related expense $ 1,922 $ 2,374 Production costs 1,105 3,245 Accrued sales and business taxes 844 1,180 Unclaimed royalty payments 830 830 Professional services 626 548 Other accrued liabilities 554 747 Accrued advertising 427 1,427 Royalties - minimum guarantee 99 118 Allowance for sales returns and chargebacks 50 232 Accrued liabilities $ 6,457 $ 10,701
Allowances for Sales Returns and Chargebacks	The following table presents the changes in the allowance for sales returns and chargebacks (in thousands): Three Months Ended Six Months Ended 2016 2015 2016 2015 Balance, beginning of period $ 60 $ 109 $ 232 $ 294 Add: provision 518 554 992 1,396 Less: deductions and other adjustments (528 ) (556 ) (1,174 ) (1,583 ) Balance, end of period $ 50 $ 107 $ 50 $ 107

Discontinued Operations (Tables

Discontinued Operations (Tables)	6 Months Ended
	Jun. 30, 2016
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Summary of Financial Information for discontinued operations	Financial information for the combined discontinued operations is summarized as follows (in thousands): Three Months Ended Six Months Ended Net revenues $ 3,888 $ 19,840 Cost of net revenues 2,892 12,888 Gross profit 996 6,952 Operating expenses: Sales and marketing 373 4,638 Technology and development 1,153 2,567 General and administrative 413 1,093 Impairment charges 7,311 7,311 Total operating expenses 9,250 15,609 Loss from operations (8,254 ) (8,657 ) Interest expense (8 ) (17 ) Gain on sale of assets 62 17,062 Income before income taxes (8,200 ) 8,388 Provision for income taxes (496 ) 1,580 Net income from discontinued operations $ (7,704 ) $ 6,808
EZ Prints [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Summary of Condensed Cash Flow Information Discontinued Operations	Condensed cash flow information for EZ Prints discontinued operations is summarized as follows (in thousands): Six Months Ended Cash Flows from Operating Activities: Net loss $ (8,111 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 555 Amortization of intangible assets 1,229 Stock-based compensation 32 Impairment charge 7,311 Change in operating assets and liabilities (1,265 ) Net cash used in operating activities (249 ) Cash Flows from Investing Activities: Purchase of property and equipment (48 ) Capitalization of software and website development costs (127 ) Net cash used in investing activities (175 ) Net decrease in cash and cash equivalents (424 ) Cash and cash equivalents — beginning of period 3,678 Cash and cash equivalents — end of period $ 3,254

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock Option Activity Related to Shares of Common Stock	The following table summarizes stock option activity related to shares of common stock (in thousands, except the weighted average exercise price): Number of Stock Options Outstanding Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Outstanding — December 31, 2015 2,168 $ 6.48 5.20 $ 118 Granted 723 3.61 Exercised (1 ) 3.20 Forfeited (234 ) 10.68 Outstanding — June 30, 2016 2,656 $ 5.33 6.44 $ 27 Vested and expected to vest - June 30, 2016 1,771 $ 5.97 5.65 $ 21 Options exercisable — June 30, 2016 887 $ 7.53 4.30 $ 11
Restricted Stock Award and Restricted Stock Unit Activity	Restricted stock unit activity is summarized as follows (unit numbers in thousands): Number of Units Outstanding Weighted Average Grant Date Fair Value Per Unit Awarded and unvested at December 31, 2015 329 $ 4.40 Granted 493 3.56 Vested (86 ) 4.24 Forfeited and canceled (15 ) 4.60 Awarded and unvested at June 30, 2016 721 $ 3.84
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions	Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Expected term (in years) 6.2 4.9 6.2 4.9 Risk-free interest rate 1.5 % 1.3 % 1.5 % 1.3 % Expected volatility 58 % 47 % 58 % 47 % Expected dividend rate 0.0 % 0.0 % 0.0 % 0.0 %
Cost of Net Revenues and Operating Expenses Include Stock-Based Compensation	Cost of net revenues and operating expenses include stock-based compensation as follows (in thousands): Three Months Ended Six Months Ended 2016 2015 2016 2015 Cost of net revenues $ 12 $ 42 $ 36 $ 82 Sales and marketing 78 100 137 194 Technology and development 29 32 58 103 General and administrative 349 249 515 473 Total stock-based compensation expense $ 468 $ 423 $ 746 $ 852

Stock Repurchase Program (Table

Stock Repurchase Program (Tables)	6 Months Ended
	Jun. 30, 2016
Equity [Abstract]
Class of Treasury Stock	Share repurchase activity was as follows (in thousands, except per share data): Three Months Ended Six Months Ended 2016 2015 2016 2015 Total number of shares repurchased 98 489 146 489 Aggregate cost of shares repurchased $ 322 $ 2,287 $ 498 $ 2,287 Average cost per share $ 3.28 $ 4.67 $ 3.41 $ 4.67

Net Income (Loss) per Share o24

Net Income (Loss) per Share of Common Stock (Tables)	6 Months Ended
	Jun. 30, 2016
Earnings Per Share [Abstract]
Basic and Diluted Net Income (Loss) per Share of Common Stock	The following table sets forth the computation of the Company’s basic and diluted net income (loss) per share of common stock (in thousands, except for per share amounts). Three Months Ended Six Months Ended 2016 2015 2016 2015 Numerator: Net loss from continuing operations $ (22,979 ) $ (1,074 ) $ (25,960 ) $ (3,404 ) (Loss) income from discontinued operations, net of tax — (7,704 ) — 6,808 Net (loss) income $ (22,979 ) $ (8,778 ) $ (25,960 ) $ 3,404 Shares used in computing net (loss) income per share of common stock: Basic 16,742 17,455 16,775 17,468 Diluted 16,742 17,455 16,775 17,531 Net (loss) income per share of common stock: Basic: Continuing operations $ (1.37 ) $ (0.06 ) $ (1.55 ) $ (0.19 ) Discontinued operations $ — $ (0.44 ) $ — $ 0.39 Total $ (1.37 ) $ (0.50 ) $ (1.55 ) $ 0.19 Diluted: Continuing operations $ (1.37 ) $ (0.06 ) $ (1.55 ) $ (0.19 ) Discontinued operations $ — $ (0.44 ) $ — $ 0.39 Total $ (1.37 ) $ (0.50 ) $ (1.55 ) $ 0.19
Computation of Diluted Net Income (Loss) per Share of Common Stock	The following outstanding shares of potentially dilutive securities were excluded from the computation of diluted net income (loss) per share of common stock for the periods in which the Company incurred a loss because including them would have been antidilutive: June 30, 2016 2015 Stock options to purchase common stock 2,656 2,321 Restricted stock units 721 391

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Jun. 30, 2016
Segment Reporting [Abstract]
Schedule of Revenues by Geographic Region	The Company’s revenues by geographic region, based on the location to where the product was shipped, are summarized as follows (in thousands): Three Months Ended Six Months Ended 2016 2015 2015 2014 United States $ 17,709 $ 19,127 $ 33,918 $ 39,835 International 2,132 2,637 4,001 5,505 Total $ 19,841 $ 21,764 $ 37,919 $ 45,340

Business and Summary of Signi26

Business and Summary of Significant Accounting Policies - Additional Information (Detail)	May 31, 2016$ / shares	Sep. 01, 2015USD ($)	Jul. 01, 2015USD ($)	Jun. 30, 2016USD ($)	Sep. 30, 2015USD ($)	Jun. 30, 2015USD ($)	Jun. 30, 2016USD ($)SegmentReporting_Unit	Jun. 30, 2015USD ($)	May 12, 2016$ / shares	Mar. 31, 2016USD ($)	Dec. 31, 2015USD ($)	Mar. 31, 2015
Accounting Policies [Abstract]
Date of incorporation							Oct. 18, 1999
Date of reincorporation							Jan. 19, 2005
Number of operating segments | Segment							1
Reporting unit | Reporting_Unit							1
Percentage of fair value in excess of carrying amount		7.00%	6.00%			6.00%		6.00%				3.00%
Goodwill impairment		$ 0	$ 0	$ 20,900,000	$ 0	$ 0	$ 20,899,000	$ 0
Market capitalization				55,800,000			55,800,000			$ 61,800,000
Market capitalization, carrying value				66,000,000			66,000,000
Carrying value of company				44,635,000			44,635,000			$ 67,500,000	$ 70,323,000
Discount rate (as a percent)	19.00%
Long-term cash flow growth rate (as a percent)	5.00%
Control premium (as a percent)	20.00%
Share price (usd per share) | $ / shares	$ 3.21								$ 3.10
Goodwill				0			0				$ 20,899,000
Unrecognized tax benefits				0			0
Penalties and interest accrued				$ 0			$ 0

Business and Summary of Signi27

Business and Summary of Significant Accounting Policies - Goodwill (Details) - USD ($)	Sep. 01, 2015	Jul. 01, 2015	Jun. 30, 2016	Sep. 30, 2015	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Accounting Policies [Abstract]
Balance at December 31, 2015						$ 20,899,000
Impairment of goodwill	$ 0	$ 0	$ (20,900,000)	$ 0	$ 0	(20,899,000)	$ 0
Balance at June 30, 2016			$ 0			$ 0

Investments and Fair Value of28

Investments and Fair Value of Financial Instruments - Components of Cash, Cash Equivalents and Short-Term Investments, Including Unrealized Gains and Losses (Detail) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized cost	$ 29,689	$ 41,726
Gross unrealized gains	0	0
Gross unrealized losses	0	0
Fair Value	29,689	41,726
Short-term Investments	23,066	17,610
Certificates of deposit [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized cost		17,610
Gross unrealized gains	0	0
Gross unrealized losses	0	0
Fair Value	23,066	17,610
Money market funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized cost	6,623	24,116
Gross unrealized gains	0	0
Gross unrealized losses	0	0
Fair Value	$ 6,623	$ 24,116

Investments and Fair Value of29

Investments and Fair Value of Financial Instruments - Fair Value Hierarchy for its Financial Assets and Liabilities (Detail) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Cash and cash equivalents:
Total financial assets	$ 6,623	$ 24,116
Money market funds [Member]
Cash and cash equivalents:
Fair value	6,623	24,116
Level I [Member]
Cash and cash equivalents:
Total financial assets	6,623	24,116
Level I [Member] | Money market funds [Member]
Cash and cash equivalents:
Fair value	$ 6,623	$ 24,116

Balance Sheet Items - Schedule

Balance Sheet Items - Schedule of Inventory, Net (Detail) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Raw materials	$ 3,136	$ 4,118
Finished goods	0	38
Inventory in-transit	27	29
Less: reserve for obsolescence	(370)	(335)
Inventory, net	$ 2,793	$ 3,850

Balance Sheet Items - Property

Balance Sheet Items - Property and Equipment, Net (Detail) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 44,757	$ 48,706
Less: accumulated depreciation and amortization	(34,702)	(40,082)
Property and equipment, net	10,055	8,624
Computer software [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment	1,549	2,405
Building [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment	3,601	1,816
Computer equipment and office furniture [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment	7,374	13,401
Internal use software and website development [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment	10,829	9,638
Production equipment [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment	18,532	18,595
Leasehold improvements [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 2,872	$ 2,851

Balance Sheet Items - Additiona

Balance Sheet Items - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Property, Plant and Equipment [Line Items]
Depreciation and amortization expense			$ 2,140	$ 3,816
Continuing operations [Member]
Property, Plant and Equipment [Line Items]
Depreciation and amortization expense	$ 1,000	$ 1,600	$ 2,100	$ 3,300

Balance Sheet Items - Component

Balance Sheet Items - Components of Accrued Liabilities (Detail) - USD ($) $ in Thousands	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Payroll and employee related expense	$ 1,922		$ 2,374
Other accrued liabilities	554		747
Production costs	1,105		3,245
Accrued sales and business taxes	844		1,180
Unclaimed royalty payments	830		830
Professional services	626		548
Accrued advertising	427		1,427
Royalties-minimum guarantee	99		118
Allowance for sales returns and chargebacks	50	$ 60	232	$ 107	$ 109	$ 294
Accrued liabilities	$ 6,457		$ 10,701

Balance Sheet Items - Allowance

Balance Sheet Items - Allowances for Sales Returns and Chargebacks (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Movement in Valuation Allowances and Reserves [Roll Forward]
Balance, beginning of period	$ 60	$ 109	$ 232	$ 294
Add: provision	518	554	992	1,396
Less: deductions and other adjustments	(528)	(556)	(1,174)	(1,583)
Balance, end of period	$ 50	$ 107	$ 50	$ 107

Discontinued Operations - Addit

Discontinued Operations - Additional Information (Detail) - USD ($) $ in Thousands	Sep. 01, 2015	Mar. 06, 2015	Mar. 01, 2015	Sep. 30, 2015	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Increase in shareholders equity through agreement					$ 40,200
Impairment charge						$ 0	$ 7,311
Proceeds from sale of businesses, net of expenses paid						$ 0	37,653
Circle Graphics, Inc. [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from sale of businesses, net of expenses paid			$ 28,500
Escrow deposits related to property sales			$ 2,400
Logo Sportswear Inc. [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from sale of businesses, net of expenses paid		$ 9,200
Escrow deposits related to property sales		$ 1,000
EZ Prints [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Impairment charge					$ 7,300		$ 7,311
Gain on sale of discontinued operations				$ 300
Total consideration for the sale of business	$ 600
Proceeds from sale of businesses, net of expenses paid	100
Notes receivable as part of sale of business	500
Payment to a customer as part of closing of sale of business	$ 1,250
Transition services agreement, period	1 year

Discontinued Operations - Summa

Discontinued Operations - Summary of Financial Information for Discontinued Operations (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Operating expenses:
Impairment charge			$ 0	$ 7,311
Net income (loss) from discontinued operations	$ 0	$ (7,704)	$ 0	6,808
InvitationBox.com [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net revenues		3,888		19,840
Cost of net revenues		2,892		12,888
Gross profit		996		6,952
Operating expenses:
Sales and marketing		373		4,638
Technology and development		1,153		2,567
General and administrative		413		1,093
Impairment charge		7,311		7,311
Total operating expenses		9,250		15,609
Loss from operations		(8,254)		(8,657)
Interest expense		(8)		(17)
Gain on sale of assets		62		17,062
Income (loss) before income taxes		(8,200)		8,388
Provision (benefit) for income taxes		(496)		1,580
Net income (loss) from discontinued operations		$ (7,704)		$ 6,808

Discontinued Operations - Sum37

Discontinued Operations - Summary of Condensed Cash Flow Information Discontinued Operations (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Cash Flows from Operating Activities:
Net loss	$ 0	$ (7,704)	$ 0	$ 6,808
Cash Flows from Investing Activities:
Net (decrease) increase in cash and cash equivalents			$ 0	424
EZ Prints [Member]
Cash Flows from Operating Activities:
Net loss				(8,111)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation and amortization				555
Amortization of intangible assets				1,229
Stock-based compensation				32
Change in operating assets and liabilities				(1,265)
Net cash (used in) provided by operating activities				(249)
Cash Flows from Investing Activities:
Purchase of property and equipment				(48)
Capitalization of software and website development costs				(127)
Net cash used in investing activities				(175)
Net (decrease) increase in cash and cash equivalents				(424)
Cash and cash equivalents - beginning of period				3,678
Cash and cash equivalents - end of period		$ 3,254		$ 3,254

Line of Credit - Additional Inf

Line of Credit - Additional Information (Detail) - Revolving Credit Facility [Member] - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Line of Credit Facility [Line Items]
Line of credit facility, maximum credit availability	$ 6,500,000
Letter of credit interest rate	1.50%
Letter of credit expiration date	Sep. 15, 2020
Draws against the facility	$ 0
Remaining borrowing capacity	5,000,000
Facility Lease Amendment [Member]
Line of Credit Facility [Line Items]
Letter of credit	$ 1,500,000
London inter bank offer rate [Member]
Line of Credit Facility [Line Items]
Interest rate added to the reference rate	1.75%	1.75%
Prime rate [Member]
Line of Credit Facility [Line Items]
Interest rate added to the reference rate	0.75%	0.75%

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Detail) - USD ($) shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Expected dividend rate (as a percent)	0.00%	0.00%	0.00%	0.00%
Dividends paid	$ 0	$ 0
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted, options			723
Non Statutory And Nonqualified Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted, options			623

Stock-Based Compensation - Stoc

Stock-Based Compensation - Stock Option Activity Related to Shares of Common Stock (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Number of Stock Options Outstanding
Beginning balance, options	2,168
Granted, options	723
Exercised, options	(1)
Forfeited, options	(234)
Ending balance, options	2,656	2,168
Number of stock options outstanding, options vested and expected to vest	1,771
Number of stock options outstanding, options exercisable	887
Weighted- Average Exercise Price
Beginning balance (usd per option)	$ 6.48
Granted (usd per option)	3.61
Exercised (usd per option)	3.20
Forfeited (usd per option)	10.68
Ending balance (usd per option)	5.33	$ 6.48
Weighted-average exercise price, options vested and expected to vest	5.97
Weighted-average exercise price, options exercisable	$ 7.53
Weighted-average remaining contractual life (years), Outstanding	6 years 5 months 8 days	5 years 2 months 12 days
Weighted-average remaining contractual life (years), options vested and expected to vest	5 years 7 months 26 days
Weighted-average remaining contractual life (years), options exercisable	4 years 3 months 18 days
Aggregate intrinsic value, outstanding	$ 27	$ 118
Aggregate intrinsic value, options vested and expected to vest	21
Aggregate Intrinsic Value, options exercisable	$ 11

Stock-Based Compensation - Rest

Stock-Based Compensation - Restricted Stock Award and Restricted Stock Unit Activity (Detail) shares in Thousands	6 Months Ended
	Jun. 30, 2016$ / sharesshares
Number of Units Outstanding
Awarded and unvested, restricted stock units, beginning balance | shares	329
Granted, restricted stock units | shares	493
Vested, restricted stock units | shares	(86)
Forfeited and cancelled, restricted stock units | shares	(15)
Awarded and unvested, restricted stock units, ending balance | shares	721
Weighted Average Grant Date Fair Value Per Unit
Awarded and unvested, beginning balance (usd per unit) | $ / shares	$ 4.40
Granted (usd per unit) | $ / shares	3.56
Vested (usd per unit) | $ / shares	4.24
Forfeited and cancelled (usd per unit) | $ / shares	4.60
Awarded and unvested, ending balance (usd per unit) | $ / shares	$ 3.84

Stock-Based Compensation - Valu

Stock-Based Compensation - Valuation Assumptions (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Expected term (in years)	6 years 2 months 20 days	4 years 11 months	6 years 2 months 20 days	4 years 11 months
Risk-free interest rate (as a percent)	1.50%	1.30%	1.50%	1.30%
Expected volatility (as a percent)	58.00%	47.00%	58.00%	47.00%
Expected dividend rate (as a percent)	0.00%	0.00%	0.00%	0.00%

Stock-Based Compensation - Cost

Stock-Based Compensation - Cost of Net Revenues and Operating Expenses Include Stock-Based Compensation (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense			$ 746	$ 891
Continuing operations [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	$ 468	$ 423	746	852
Continuing operations [Member] | Cost of net revenues [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	12	42	36	82
Continuing operations [Member] | Sales and marketing [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	78	100	137	194
Continuing operations [Member] | Technology and development [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	29	32	58	103
Continuing operations [Member] | General and administrative [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	$ 349	$ 249	$ 515	$ 473

Stock Repurchase Program - Addi

Stock Repurchase Program - Additional Information (Detail)	1 Months Ended
	May 31, 2015shares
Equity, Class of Treasury Stock [Line Items]
Stock repurchase in shares	3,500,000
Stock repurchase in period	1 year
Maximum [Member]
Equity, Class of Treasury Stock [Line Items]
Percentage of stock repurchase on outstanding shares	20.00%

Stock Repurchase Program - Trea

Stock Repurchase Program - Treasury Stock (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Equity [Abstract]
Total number of shares repurchased	98	489	146	489
Aggregate cost of shares repurchased	$ 322	$ 2,287	$ 498	$ 2,287
Average cost per share	$ 3.28	$ 4.67	$ 3.41	$ 4.67

Net Income (Loss) per Share o46

Net Income (Loss) per Share of Common Stock - Basic and Diluted Net Income (Loss) per Share of Common Stock (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2016	Mar. 31, 2016	Jun. 30, 2015	Mar. 31, 2015	Jun. 30, 2016	Jun. 30, 2015
Earnings Per Share [Abstract]
Net loss from continuing operations	$ (22,979)	$ (25,960)	$ (1,074)	$ (3,404)	$ (25,960)	$ (3,404)
Net loss	0		(7,704)		0	6,808
Net (loss) income	$ (22,979)		$ (8,778)		$ (25,960)	$ 3,404
Shares used in computing net income (loss) per share of common stock:
Basic (usd per share)	16,742		17,455		16,775	17,468
Diluted (usd per share)	16,742		17,455		16,775	17,531
Basic:
Continuing operations (usd per share)	$ (1.37)		$ (0.06)		$ (1.55)	$ (0.19)
Discontinued operations (usd per share)	0		(0.44)		0	0.39
Total	(1.37)		(0.50)		(1.55)	0.19
Diluted:
Continuing operations (usd per share)	(1.37)		(0.06)		(1.55)	(0.19)
Discontinued operations (usd per share)	0		(0.44)		0	0.39
Total	$ (1.37)		$ (0.50)		$ (1.55)	$ 0.19

Net Income (Loss) per Share o47

Net Income (Loss) per Share of Common Stock - Computation of Diluted Net Income (Loss) per Share of Common Stock (Detail) - shares shares in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Stock options to purchase common stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Dilutive securities excluded from computation of diluted net (loss) income per share	2,656	2,321
Restricted stock units [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Dilutive securities excluded from computation of diluted net (loss) income per share	721	391

Segment Information - Schedule

Segment Information - Schedule of Revenues by Geographic Region (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Segment Reporting Information [Line Items]
Total	$ 19,841	$ 21,764	$ 37,919	$ 45,340
United States [Member]
Segment Reporting Information [Line Items]
Total	17,709	19,127	33,918	39,835
International [Member]
Segment Reporting Information [Line Items]
Total	$ 2,132	$ 2,637	$ 4,001	$ 5,505

Related Party Transaction (Deta

Related Party Transaction (Details) - USD ($) $ in Thousands	Sep. 01, 2015	Jun. 30, 2016	Jun. 30, 2015
Related Party Transaction [Line Items]
Proceeds from sale of businesses, net of expenses paid		$ 0	$ 37,653
EZ Prints [Member]
Related Party Transaction [Line Items]
Total consideration for the sale of business	$ 600
Proceeds from sale of businesses, net of expenses paid	100
Notes receivable as part of sale of business	$ 500

Subsequent Events - Additional

Subsequent Events - Additional Information (Details) - Subsequent Event [Member]	Aug. 01, 2016employee
Subsequent Event [Line Items]
Number of employees in California office	34
Number of employees terminated	17
Number of employees with transition plans in place	5