Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Aug. 04, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'VOCERA COMMUNICATIONS, INC. | ' |
Entity Central Index Key | '0001129260 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Jun-14 | ' |
Amendment Flag | 'false | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 25,435,869 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets | ' | ' |
Cash and cash equivalents | $16,961 | $39,652 |
Short-term investments | 103,664 | 88,024 |
Accounts receivable, net of allowance | 19,466 | 23,543 |
Other receivables | 1,061 | 882 |
Inventories | 4,415 | 5,665 |
Prepaid expenses and other current assets | 2,397 | 1,892 |
Total current assets | 147,964 | 159,658 |
Property and equipment, net | 4,844 | 5,365 |
Intangible assets, net | 2,464 | 1,544 |
Goodwill | 7,678 | 5,575 |
Other long-term assets | 969 | 965 |
Total assets | 163,919 | 173,107 |
Current liabilities | ' | ' |
Accounts payable | 2,960 | 3,531 |
Accrued payroll and other current liabilities | 9,292 | 9,841 |
Deferred revenue, current | 25,105 | 26,133 |
Total current liabilities | 37,357 | 39,505 |
Deferred revenue, long-term | 6,410 | 6,398 |
Other long-term liabilities | 1,636 | 1,641 |
Total liabilities | 45,403 | 47,544 |
Commitments and contingencies (Note 7) | ' | ' |
Stockholders' equity | ' | ' |
Preferred stock, $0.0003 par value - 5,000,000 shares authorized as of June 30, 2014 and December 31, 2013; zero shares issued and outstanding | 0 | 0 |
Common stock, $0.0003 par value - 100,000,000 shares authorized as of June 30, 2014 and December 31, 2013; 25,398,022 and 24,967,140 shares issued and outstanding as of June 30, 2014 and December 31, 2013, respectively | 8 | 7 |
Additional paid-in capital | 196,339 | 189,966 |
Accumulated other comprehensive (loss) income | -1 | 23 |
Accumulated deficit | -77,830 | -64,433 |
Total stockholders’ equity | 118,516 | 125,563 |
Total liabilities and stockholders’ equity | $163,919 | $173,107 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets Condensed Consolidated Balance Sheets (Paranthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Liabilities and stockholders' equity | ' | ' |
Common stock par value | $0.00 | $0.00 |
Common stock shares authorized | 100,000,000 | 100,000,000 |
Common stock shares issued | 25,398,022 | 24,967,140 |
Common stock shares outstanding | 25,398,022 | 24,967,140 |
Preferred Stock | ' | ' |
Liabilities and stockholders' equity | ' | ' |
Preferred stock par value | $0.00 | $0.00 |
Preferred stock shares authorized | 5,000,000 | 5,000,000 |
Preferred stock shares issued | 0 | 0 |
Preferred stock shares outstanding | 0 | 0 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Revenue | ' | ' | ' | ' |
Product | $11,850 | $15,340 | $26,039 | $28,300 |
Service | 11,169 | 9,956 | 21,656 | 19,409 |
Total revenue | 23,019 | 25,296 | 47,695 | 47,709 |
Cost of revenue | ' | ' | ' | ' |
Product | 4,421 | 5,336 | 9,411 | 9,946 |
Service | 4,528 | 4,170 | 9,342 | 8,254 |
Total cost of revenue | 8,949 | 9,506 | 18,753 | 18,200 |
Gross profit | 14,070 | 15,790 | 28,942 | 29,509 |
Operating expenses | ' | ' | ' | ' |
Research and development | 4,362 | 3,418 | 8,428 | 7,032 |
Sales and marketing | 12,614 | 10,679 | 25,357 | 20,911 |
General and administrative | 4,156 | 3,629 | 8,553 | 6,927 |
Total operating expenses | 21,132 | 17,726 | 42,338 | 34,870 |
Loss from operations | -7,062 | -1,936 | -13,396 | -5,361 |
Interest income | 98 | 59 | 185 | 83 |
Other income (expense), net | 19 | -84 | -46 | -131 |
Loss before income taxes | -6,945 | -1,961 | -13,257 | -5,409 |
Provision for income taxes | -63 | -61 | -140 | -112 |
Net loss | ($7,008) | ($2,022) | ($13,397) | ($5,521) |
Net loss per share | ' | ' | ' | ' |
Basic and Diluted | ($0.28) | ($0.08) | ($0.53) | ($0.23) |
Weighted average shares used to compute net loss per share | ' | ' | ' | ' |
Basic and Diluted | 25,246 | 24,555 | 25,147 | 24,419 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net loss | ($7,008) | ($2,022) | ($13,397) | ($5,521) |
Other comprehensive loss, net: | ' | ' | ' | ' |
Change in unrealized loss on investments, net | -1 | -88 | -24 | -92 |
Comprehensive loss | ($7,009) | ($2,110) | ($13,421) | ($5,613) |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Cash flows from operating activities | ' | ' |
Net loss | ($13,397) | ($5,521) |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' |
Depreciation and amortization | 1,494 | 1,111 |
Change in non-cash interest income, net | 6 | -22 |
Loss on disposal of property and equipment | 76 | 0 |
Allowance for doubtful accounts | 8 | 9 |
Inventory write-down | 51 | 70 |
Change in lease-related performance liabilities | -244 | 0 |
Stock-based compensation expense | 5,376 | 3,720 |
Excess tax benefits from employee stock plans | 0 | -82 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | 4,255 | 2,595 |
Other receivables | -178 | 9 |
Inventories | 1,200 | -1,510 |
Prepaid expenses and other assets | -508 | -683 |
Accounts payable | -573 | 132 |
Accrued payroll and other liabilities | -553 | -3,108 |
Deferred revenue | -1,106 | 727 |
Net cash used in operating activities | -4,093 | -2,553 |
Cash flows from investing activities | ' | ' |
Purchase of property and equipment | -723 | -2,642 |
Business acquisitions, net of cash acquired | -3,500 | 0 |
Purchase of short-term investments | -72,912 | -85,809 |
Maturities of short-term investments | 56,797 | 36,196 |
Sales of short-term investments | 446 | 0 |
Net cash used in investing activities | -19,892 | -52,255 |
Cash flows from financing activities | ' | ' |
Cash from lease-related performance obligations | 307 | 554 |
Payment for repurchase of early exercised options | -11 | -3 |
Excess tax benefits from employee stock plans | 0 | 82 |
Proceeds from issuance of common stock from the employee stock purchase plan | 945 | 1,596 |
Proceeds from exercise of stock options | 793 | 1,014 |
Tax withholdings paid on behalf of employees for net share settlement | -740 | -443 |
Proceeds from exercise of common stock warrants | 0 | 226 |
Net cash provided by financing activities | 1,294 | 3,026 |
Net decrease in cash and cash equivalents | -22,691 | -51,782 |
Cash and cash equivalents at beginning of period | 39,652 | 92,521 |
Cash and cash equivalents at end of period | 16,961 | 40,739 |
Supplemental disclosure of non-cash investing and financing activities: | ' | ' |
Property and equipment in accounts payable and accrued liabilities | $51 | $257 |
The_Company_and_Summary_of_Sig
The Company and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2014 | |
Accounting Policies [Abstract] | ' |
The Company and Summary of Significant Accounting Policies | ' |
The Company and Summary of Significant Accounting Policies | |
Organization and Business | |
Vocera Communications, Inc. (the “Company”) is a provider of secure, integrated, intelligent communication solutions, focused on empowering mobile workers in healthcare, hospitality, energy, and other mission-critical mobile work environments, in the United States and internationally. The majority of the Company's business is currently generated from sales of its solutions in the healthcare market, but the Company is actively engaged in other markets. Vocera helps its healthcare customers improve patient safety and satisfaction, and increase hospital efficiency and productivity through its Communication and Care Experience solutions. These have been installed in more than 1,200 healthcare and non-healthcare organizations worldwide. | |
The Vocera Communication System, which includes an intelligent enterprise software platform, a lightweight, wearable, voice-controlled communication badge, and smartphone applications, enables users to connect instantly with other staff simply by saying the name, function or group name of the desired recipient. It also securely delivers text messages and alerts directly to and from smartphones, replacing legacy pagers. The Vocera Care Experience is a hosted software solution suite that coordinates and streamlines patient-to-provider and provider-to-provider communication across the continuum of care. Vocera Care Experience is complemented by the Company’s Experience Innovation Network, a membership-based program to spread the adoption of leading strategies to improve patient and staff experience. | |
The Company was incorporated in Delaware on February 16, 2000. The Company formed wholly-owned subsidiaries Vocera Communications UK Ltd and Vocera Communications Australia Pty Ltd. in 2005, Vocera Canada, Ltd. in 2010, Vocera Communications India Private Ltd. in 2013 and Vocera Communications Middle East FZ-LLC in 2014. | |
Basis of Presentation | |
The Company’s unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the instructions to Form 10-Q and Article 10 of Regulation S-X of the U.S. Securities and Exchange Commission, and include the accounts of Vocera and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated. Certain information and disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. Accordingly, these unaudited interim condensed consolidated financial statements should be read in conjunction with the annual audited consolidated financial statements and notes thereto contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2013. The year-end condensed balance sheet data was derived from the Company's audited financial statements, but does not include all disclosures required by U.S. GAAP. | |
In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the Company’s interim consolidated financial information. The results for the quarter presented are not necessarily indicative of the results to be expected for the year ending December 31, 2014 or for any other interim period or any other future year. | |
Use of Estimates | |
The preparation of the accompanying unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting periods. The estimates include, but are not limited to, revenue recognition, useful lives assigned to long-lived assets, excess and obsolete inventory charges, warranty reserves, stock-based compensation expense, provisions for income taxes and contingencies. Actual results could differ from these estimates, and such differences could be material to the Company’s financial position and results of operations. | |
Revenue Recognition | |
The Company derives revenue from the sales of communication badges, smartphone application software, perpetual software licenses for enterprise software that is essential to the functionality of the communication badges, software maintenance, extended warranty and professional services. The Company also derives revenue from the sale of perpetual and subscription licenses for software that is not essential to the functionality of the communication badges. The Company's revenue recognition policy has not changed from that described in its Annual Report on Form 10-K for the year ended December 31, 2013. | |
A portion of the Company's sales are made through multi-year lease agreements with customers. When these arrangements are considered sales-type leases, upon delivery of leased products to customers, the Company recognizes revenue for such products in an amount equal to the net present value of the minimum lease payments. Unearned income is recognized as part of product revenue under the effective interest method. The Company recognizes revenue related to executory costs when such executory costs are incurred. | |
Proceeds from transfers of sales-type leases to third-party financial companies are allocated between the net investment in sales-type leases and the executory cost component for remaining service obligations based on relative present value. The difference between the amount of proceeds allocated to the net investment in lease and the carrying value of the net investment in lease is included in product revenue. Proceeds allocated to the executory cost component are accounted for as financing liabilities. | |
For the six months ended June 30, 2014 and 2013, the Company transferred $0.5 million and $0.8 million, respectively of lease receivables in non-recourse sales to third-party financial companies, with immaterial net gains. For the six months ended June 30, 2014 and 2013, the Company recorded $0.3 million and $0.6 million, respectively, of financing liabilities for future performance of executory service obligations. For lease receivables retained as of June 30, 2014 and December 31, 2013, the Company recorded $1.2 million and $1.4 million of net investment in sales-type leases, respectively, equivalent to the minimum lease payments less the unearned interest portion. | |
Recent Accounting Pronouncements | |
In July 2013, the Financial Accounting Standards Board (“FASB”) issued new guidance for the gross versus net presentation of unrecognized tax benefits. The FASB concluded that an unrecognized tax benefit should be presented as a reduction of a deferred tax asset for a net operating loss (“NOL”) or other tax credit carryforward when settlement in this manner is available under the tax law. The new guidance was effective for the Company's first quarter of 2014, applied prospectively. Adoption of this standard was not significant to the Company's financial position or results of operations. | |
In April 2014, the FASB issued revised guidance for reporting discontinued operations and disclosures of disposals of components of an entity. Under the new guidance, only disposals representing a strategic shift in the entity’s operations and financial results will be presented as discontinued operations. In addition, the new guidance requires certain expanded disclosures about discontinued operations and limited disclosures for a disposal not qualifying for such reporting. The Company’s effective date for these amendments will be the first quarter of 2015, with early adoption permitted. The adoption of this guidance is not expected to have a significant impact on the Company’s financial position or results of operations. | |
In May 2014, the FASB together with the International Accounting Standards Board issued converged guidance for revenue recognition that will replace most existing guidance, eliminate industry-specific guidance and provide a unified model for determining how and when revenue from contracts with customers should be recognized. Under the new guidance, an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard will also introduce additional disclosures, changes in asset and liability accounting, and changes in gain/loss recognition for asset transfers unrelated to customer transactions. | |
The Company’s effective date for this standard will be the first quarter of 2017; no early application is permitted. Two methods of transition are provided: a full retrospective approach, with certain practical expedients allowed, and a cumulative effect method, with balance sheet adjustment as of January 1, 2017. The Company is evaluating the effect the new standard will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the future effect of the standard on its financial position or results of operations. |
Fair_value_of_financial_instru
Fair value of financial instruments | 6 Months Ended | |||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||
Fair value of financial instruments | ' | |||||||||||||||||||
Fair Value of Financial Instruments | ||||||||||||||||||||
The Company’s cash and cash equivalents and short-term investments are carried at their fair values with any differences from their amortized cost recorded in equity as unrealized gains (losses) on marketable securities. As a basis for determining the fair value of its assets and liabilities, the Company established a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: (Level 1) observable inputs such as quoted prices in active markets; (Level 2) inputs other than the quoted prices in active markets that are observable either directly or indirectly; and (Level 3) unobservable inputs in which there is little or no market data which requires the Company to develop its own assumptions. This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. For the six months ended June 30, 2014, there have been no transfers between Level 1 and Level 2 fair value instruments and no transfers in or out of Level 3. | ||||||||||||||||||||
The Company's money market funds are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices. The fair value of the Company's Level 2 fixed income securities are obtained from independent pricing services, which may use quoted market prices for identical or comparable instruments or model-driven valuations using observable market data or other inputs corroborated by observable market data. The Company does not have any financial instruments which are valued using Level 3 inputs. | ||||||||||||||||||||
The Company’s assets that are measured at fair value on a recurring basis, by level, within the fair value hierarchy as of June 30, 2014 and December 31, 2013, are summarized as follows (in thousands): | ||||||||||||||||||||
June 30, 2014 | December 31, 2013 | |||||||||||||||||||
Level 1 | Level 2 | Total | Level 1 | Level 2 | Total | |||||||||||||||
Assets | ||||||||||||||||||||
Money market funds | $ | 6,669 | $ | — | $ | 6,669 | $ | 22,991 | $ | — | $ | 22,991 | ||||||||
Commercial paper | — | 2,869 | 2,869 | — | 900 | 900 | ||||||||||||||
U.S. government agency securities | — | 10,543 | 10,543 | — | 11,279 | 11,279 | ||||||||||||||
U.S. Treasury securities | — | 5,685 | 5,685 | — | 5,235 | 5,235 | ||||||||||||||
Municipal debt securities | — | 4,700 | 4,700 | — | 4,765 | 4,765 | ||||||||||||||
Corporate debt securities | — | 81,903 | 81,903 | — | 67,055 | 67,055 | ||||||||||||||
Total assets measured at fair value | $ | 6,669 | $ | 105,700 | $ | 112,369 | $ | 22,991 | $ | 89,234 | $ | 112,225 | ||||||||
The Company had no liabilities as of June 30, 2014 and December 31, 2013 that were measured at fair value on a recurring basis. |
Cash_Cash_Equivalents_and_Shor
Cash, Cash Equivalents and Short-term Investments | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Cash and Cash Equivalents [Abstract] | ' | |||||||||||||||
Cash, Cash Equivalents, and Short-term Investments | ' | |||||||||||||||
Cash, Cash Equivalents and Short-Term Investments | ||||||||||||||||
The following tables present current and prior-year-end balances for cash, cash equivalents and short-term investments (in thousands): | ||||||||||||||||
As of June 30, 2014 | ||||||||||||||||
Amortized Cost | Unrealized Gains | Unrealized Losses | Fair value | |||||||||||||
Cash and cash equivalents: | ||||||||||||||||
Demand deposits and other cash | $ | 8,256 | $ | — | $ | — | $ | 8,256 | ||||||||
Money market funds | 6,669 | — | — | 6,669 | ||||||||||||
Commercial paper | 1,000 | — | — | 1,000 | ||||||||||||
U.S. government agency securities | 21 | — | — | 21 | ||||||||||||
Corporate debt securities | 1,015 | — | — | 1,015 | ||||||||||||
Total cash and cash equivalents | 16,961 | — | — | 16,961 | ||||||||||||
Short-Term Investments: | ||||||||||||||||
Commercial paper | 1,869 | — | — | 1,869 | ||||||||||||
U.S. government agency securities | 10,517 | 5 | — | 10,522 | ||||||||||||
U.S. Treasury securities | 5,681 | 4 | — | 5,685 | ||||||||||||
Municipal debt securities | 4,694 | 6 | — | 4,700 | ||||||||||||
Corporate debt securities | 80,901 | 21 | (34 | ) | 80,888 | |||||||||||
Total short-term investments | 103,662 | 36 | (34 | ) | 103,664 | |||||||||||
Total cash, cash equivalents and short-term investments | $ | 120,623 | $ | 36 | $ | (34 | ) | $ | 120,625 | |||||||
As of December 31, 2013 | ||||||||||||||||
Amortized Cost | Unrealized Gains | Unrealized Losses | Fair value | |||||||||||||
Cash and cash equivalents: | ||||||||||||||||
Demand deposits and other cash | $ | 15,451 | $ | — | $ | — | $ | 15,451 | ||||||||
Money market funds | 22,991 | — | — | 22,991 | ||||||||||||
Commercial paper | 150 | — | — | 150 | ||||||||||||
Corporate debt securities | 1,060 | — | — | 1,060 | ||||||||||||
Total cash and cash equivalents | 39,652 | — | — | 39,652 | ||||||||||||
Short-Term Investments: | ||||||||||||||||
Commercial paper | 750 | — | — | 750 | ||||||||||||
U.S. government agency securities | 11,275 | 5 | (1 | ) | 11,279 | |||||||||||
U.S. Treasury securities | 5,233 | 2 | — | 5,235 | ||||||||||||
Municipal debt securities | 4,758 | 7 | — | 4,765 | ||||||||||||
Corporate debt securities | 65,982 | 20 | (7 | ) | 65,995 | |||||||||||
Total short-term investments | 87,998 | 34 | (8 | ) | 88,024 | |||||||||||
Total cash, cash equivalents and short-term investments | $ | 127,650 | $ | 34 | $ | (8 | ) | $ | 127,676 | |||||||
The Company has determined that the unrealized losses on its short-term investments as of June 30, 2014 and December 31, 2013 do not constitute an "other than temporary impairment." The unrealized losses for the short-term investments have all been in a continuous unrealized loss position for less than twelve months. The Company’s conclusion of no “other than temporary impairment” is based on the high credit quality of the securities, their short remaining maturity (less than five months, weighted average) and the Company’s intent and ability to hold such loss securities until maturity. | ||||||||||||||||
Classification of the cash, cash equivalent and short-term investments by contractual maturity was as follows: | ||||||||||||||||
(in thousands) | One year or shorter | Between 1 and 2 years | Total | |||||||||||||
Balances as of June 30, 2014 | ||||||||||||||||
Cash and cash equivalents (1) | $ | 16,961 | $ | — | $ | 16,961 | ||||||||||
Short-term investments | 92,576 | 11,088 | 103,664 | |||||||||||||
Cash, cash equivalents and short-term investments | $ | 109,537 | $ | 11,088 | $ | 120,625 | ||||||||||
Balances as of December 31, 2013 | ||||||||||||||||
Cash and cash equivalents (1) | $ | 39,652 | $ | — | $ | 39,652 | ||||||||||
Short-term investments | 71,464 | 16,560 | 88,024 | |||||||||||||
Cash, cash equivalents and short-term investments | $ | 111,116 | $ | 16,560 | $ | 127,676 | ||||||||||
(1) Includes demand deposits and other cash, money market funds and other cash equivalent securities, all with 0-90 day maturity at purchase. | ||||||||||||||||
All the above tables exclude restricted cash, primarily held in certificates of deposit, of $0.3 million as of June 30, 2014 and December 31, 2013, which is classified within prepaid expenses and other current assets on the balance sheet. |
Income_loss_per_share
Income (loss) per share | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Income (loss) per share | ' | |||||||||||||||
Net Loss Per Share | ||||||||||||||||
For fiscal years preceding 2013, basic and diluted net (loss) income per common share were presented in conformity with the two-class method required for participating securities. | ||||||||||||||||
For the three months and the six months ended June 30, 2014 and 2013, the two-class method is not applicable due to the net losses, which must be attributed entirely to the common shareholders. Additionally, as of June 30, 2014 and December 31, 2013, there were 8,094 and 26,463 shares of participating securities, respectively, consisting of repurchasable shares issued from early exercise of options and unvested restricted shares; thus the future effect of participating securities would generally be immaterial, even in years with net income. | ||||||||||||||||
The following table sets forth the computation of basic and diluted net loss per share (in thousands, except per share amounts): | ||||||||||||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Numerator: | ||||||||||||||||
Net loss | $ | (7,008 | ) | $ | (2,022 | ) | $ | (13,397 | ) | $ | (5,521 | ) | ||||
Denominator: | ||||||||||||||||
Weighted-average shares used to compute net loss per common share - basic and diluted | 25,246 | 24,555 | 25,147 | 24,419 | ||||||||||||
Net loss per share | ||||||||||||||||
Basic and diluted | $ | (0.28 | ) | $ | (0.08 | ) | $ | (0.53 | ) | $ | (0.23 | ) | ||||
The following securities were not included in the calculation of diluted shares outstanding as the effect would have been anti-dilutive: | ||||||||||||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
(in thousands) | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Options to purchase common stock, including ESPP | 3,692 | 3,379 | 3,499 | 3,313 | ||||||||||||
Common stock subject to repurchase | 8 | 29 | 7 | 32 | ||||||||||||
Warrants to purchase common stock | 44 | 44 | 44 | 44 | ||||||||||||
Restricted stock units | 950 | 581 | 876 | 511 | ||||||||||||
Restricted stock awards | — | 12 | — | 12 | ||||||||||||
Goodwill_and_intangible_assets
Goodwill and intangible assets | 6 Months Ended | |||||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||||||||
Goodwill and intangible assets | ' | |||||||||||||||||||||||||
Goodwill and Intangible Assets | ||||||||||||||||||||||||||
Goodwill | ||||||||||||||||||||||||||
As of June 30, 2014 and December 31, 2013, the Company had $7.7 million and $5.6 million of goodwill acquired. During the six months ended June 30, 2014, the Company recorded additional goodwill of $2.1 million for the mVisum acquisition (see Note 11, "Business acquisition"). As of June 30, 2014, there were no changes in circumstances indicating that the carrying values of goodwill or acquired intangibles may not be recoverable. | ||||||||||||||||||||||||||
Intangible Assets | ||||||||||||||||||||||||||
Acquisition-related intangible assets are amortized either straight-line, or over the life of the assets on a basis that resembles the economic benefit of the assets. This yields amortization in the latter case that is higher in earlier periods of the useful life. | ||||||||||||||||||||||||||
The gross carrying amounts of intangible assets which have been fully amortized are removed annually in the subsequent first quarter balance sheet presentation. During the six months ended June 30, 2014, a fully amortized non-compete agreement intangible with $70,000 original cost (and accumulated amortization) was removed from the table of intangibles carrying cost, offset by increases in intangibles related to the mVisum acquisition, as described in Note 11. | ||||||||||||||||||||||||||
The estimated useful lives and carrying value of acquired intangible assets are as follows: | ||||||||||||||||||||||||||
June 30, 2014 | December 31, 2013 | |||||||||||||||||||||||||
(in thousands) | Range of | Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||||||||
Useful Life | Carrying | Amortization | Carrying | Carrying | Amortization | Carrying | ||||||||||||||||||||
(years) | Amount | Amount | Amount | Amount | ||||||||||||||||||||||
Developed technology | 4 to 7 | $ | 2,710 | $ | 1,473 | $ | 1,237 | $ | 1,880 | $ | 1,264 | $ | 616 | |||||||||||||
Customer relationships | 7 to 9 | 2,520 | 1,584 | 936 | 2,350 | 1,449 | 901 | |||||||||||||||||||
Non-compete agreements | 2 to 4 | 260 | 26 | 234 | 70 | 70 | — | |||||||||||||||||||
Trademarks and trade names | 4 to 7 | 110 | 53 | 57 | 70 | 43 | 27 | |||||||||||||||||||
Intangible assets | $ | 5,600 | $ | 3,136 | $ | 2,464 | $ | 4,370 | $ | 2,826 | $ | 1,544 | ||||||||||||||
Amortization expense was $0.2 million and $0.2 million for the three months ended June 30, 2014 and 2013, respectively. Amortization expense was $0.4 million and $0.4 million for the six months ended June 30, 2014 and 2013, respectively. | ||||||||||||||||||||||||||
Amortization of acquired intangible assets is reflected in the cost of revenue or operating expenses, depending on the nature of the intangible. The estimated future amortization of existing acquired intangible assets as of June 30, 2014 was as follows: | ||||||||||||||||||||||||||
(in thousands) | Future amortization | |||||||||||||||||||||||||
2014 (remaining six months) | $ | 405 | ||||||||||||||||||||||||
2015 | 626 | |||||||||||||||||||||||||
2016 | 495 | |||||||||||||||||||||||||
2017 | 394 | |||||||||||||||||||||||||
2018 | 275 | |||||||||||||||||||||||||
2019 | 229 | |||||||||||||||||||||||||
Thereafter | 40 | |||||||||||||||||||||||||
Future amortization expense | $ | 2,464 | ||||||||||||||||||||||||
Balance_Sheet_Components
Balance Sheet Components | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Balance Sheet Components [Abstract] | ' | |||||||||||||||
Balance Sheet Components | ' | |||||||||||||||
Balance Sheet Components | ||||||||||||||||
Inventories | ||||||||||||||||
(in thousands) | June 30, | December 31, | ||||||||||||||
2014 | 2013 | |||||||||||||||
Raw materials | $ | 461 | $ | 806 | ||||||||||||
Finished goods | 3,954 | 4,859 | ||||||||||||||
Total inventories | $ | 4,415 | $ | 5,665 | ||||||||||||
Property and equipment, net | ||||||||||||||||
(in thousands) | June 30, | December 31, | ||||||||||||||
2014 | 2013 | |||||||||||||||
Computer equipment and software | $ | 7,814 | $ | 7,345 | ||||||||||||
Furniture, fixtures and equipment | 953 | 924 | ||||||||||||||
Leasehold improvements | 2,136 | 2,125 | ||||||||||||||
Manufacturing tools and equipment | 3,127 | 3,081 | ||||||||||||||
Construction in process | 593 | 555 | ||||||||||||||
Property and equipment, at cost | 14,623 | 14,030 | ||||||||||||||
Less: Accumulated depreciation | (9,779 | ) | (8,665 | ) | ||||||||||||
Property and equipment, net | $ | 4,844 | $ | 5,365 | ||||||||||||
Depreciation and amortization expense was $0.6 million and $0.4 million for the three months ended June 30, 2014 and 2013, respectively. Depreciation and amortization expense was $1.1 million and $0.8 million for the six months ended June 30, 2014 and 2013, respectively. | ||||||||||||||||
Net investment in sales-type leases | ||||||||||||||||
The Company has sales-type leases with terms of 1.25 to 4 years. Sales-type lease receivables are collateralized by the underlying equipment. The components of our net investment in sales-type leases are as follows: | ||||||||||||||||
(in thousands) | June 30, | December 31, | ||||||||||||||
2014 | 2013 | |||||||||||||||
Minimum payments to be received on sales-type leases | $ | 2,273 | $ | 2,597 | ||||||||||||
Less: Unearned interest income and executory costs | (1,108 | ) | (1,167 | ) | ||||||||||||
Net investment in sales-type leases | 1,165 | 1,430 | ||||||||||||||
Less: Current portion | (575 | ) | (620 | ) | ||||||||||||
Non-current net investment in sales-type leases | $ | 590 | $ | 810 | ||||||||||||
There were no allowances for doubtful accounts on these leases as of June 30, 2014 and December 31, 2013. There is no guaranteed or unguaranteed residual value on the leased equipment. The current and non-current net investments in sales-types leases are reported as components of the consolidated balance sheet captions "other receivables" and "other long-term assets," respectively. | ||||||||||||||||
The minimum payments expected to be received for future years under sales-type leases as of June 30, 2014 were as follows: | ||||||||||||||||
(in thousands) | Future lease payments | |||||||||||||||
2014 (six months remaining) | $ | 484 | ||||||||||||||
2015 | 844 | |||||||||||||||
2016 | 672 | |||||||||||||||
2017 | 273 | |||||||||||||||
Total | $ | 2,273 | ||||||||||||||
Accrued payroll and other current liabilities | ||||||||||||||||
(in thousands) | June 30, | December 31, | ||||||||||||||
2014 | 2013 | |||||||||||||||
Payroll and related expenses | $ | 4,998 | $ | 5,065 | ||||||||||||
Accrued payables | 2,169 | 2,259 | ||||||||||||||
Deferred rent, current portion | 399 | 490 | ||||||||||||||
Lease financing, current portion | 656 | 528 | ||||||||||||||
Product warranty | 582 | 840 | ||||||||||||||
Sales and use tax payable | 166 | 259 | ||||||||||||||
Other | 322 | 400 | ||||||||||||||
Total accrued payroll and other current liabilities | $ | 9,292 | $ | 9,841 | ||||||||||||
The changes in the Company's product warranty reserve are as follows: | ||||||||||||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
(in thousands) | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Warranty balance at the beginning of the period | $ | 722 | $ | 207 | $ | 840 | $ | 297 | ||||||||
Warranty expense accrued for shipments in period | 189 | 100 | 487 | 174 | ||||||||||||
Changes in estimate related to pre-existing warranties | (26 | ) | 178 | 25 | 227 | |||||||||||
Warranty settlements made | (303 | ) | (283 | ) | (770 | ) | (496 | ) | ||||||||
Warranty balance at the end of the period | $ | 582 | $ | 202 | $ | 582 | $ | 202 | ||||||||
Commitments
Commitments | 6 Months Ended | |||
Jun. 30, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||
Commitments | ' | |||
Commitments and Contingencies | ||||
Non-cancelable Material Commitments | ||||
The Company is required to purchase unused, non-cancelable, non-returnable raw material inventory that was purchased by its contract manufacturers based on committed finished goods orders from the Company, certain long lead-time raw materials based on the Company’s forecast and current work-in-progress materials. As of June 30, 2014 and December 31, 2013, approximately $3.2 million and $3.1 million, respectively, of such inventory was purchased and held by the third-party manufacturers which was subject to these purchase guarantees. | ||||
Leases | ||||
The Company leases office space for its headquarters and subsidiaries under non-cancelable operating leases, which will expire between December 2014 and April 2017. The San Jose, California headquarters lease expires on March 31, 2016, with a single three-year extension option at rates approximating the then-fair market value. The Company recognizes rent expense on a straight-line basis over the lease period, and has accrued for rent expense incurred but not paid. Facilities rent expense was $0.5 million and $0.5 million for the three months ended June 30, 2014 and June 30, 2013, respectively. Facilities rent expense was $1.0 million and $1.0 million for the six months ended June 30, 2014 and June 30, 2013, respectively. | ||||
Future minimum lease payments at June 30, 2014 under non-cancelable operating leases are as follows: | ||||
(in thousands) | Operating leases | |||
2014 (remaining six months) | $ | 865 | ||
2015 | 1,693 | |||
2016 | 539 | |||
2017 | 33 | |||
Total minimum lease payments | $ | 3,130 | ||
Indemnifications | ||||
The Company undertakes, in the ordinary course of business, to (i) defend customers and other parties from certain third-party claims associated with allegations of trade secret misappropriation, infringement of copyright, patent or other intellectual property right, or tortious damage to persons or property and (ii) indemnify and hold harmless such parties from certain resulting damages, costs and other liabilities. The term of these undertakings may be perpetual and the maximum potential liability of the Company under certain of these undertakings is not determinable. Based on its historical experience, the Company believes the liability associated with these undertakings is minimal. | ||||
The Company has entered into indemnification agreements with its directors and officers that may require the Company to indemnify its directors and officers against liabilities that may arise by reason of their status or service as directors or officers, other than liabilities arising from willful misconduct of the individual. The Company currently has directors and officers insurance. As there has been no significant history of losses, no expense accrual has been made. | ||||
Securities Litigation | ||||
On August 1, 2013, a purported securities class action entitled Michael Brado v. Vocera Communications Inc., et al. was filed in the United States District Court for the Northern District of California, against the Company and certain of its officers, its board of directors, a former director and the underwriters for the Company's initial public offering. A second purported securities class action, entitled Duncan v. Vocera Communications Inc., et al., was filed on August 21, 2013, also in the Northern District of California, against the same parties. On September 27, 2013, the Court ordered the matters related. The suits purport to allege claims under Sections 11, 12(a)(2) and 15 of the Securities Act of 1933 and Section 10(b) and 20(a) of the Exchange Act of 1934 for allegedly misleading statements in the registration statement for the Company's initial public offering and in subsequent communications regarding its business and financial results. The suits are purportedly brought on behalf of purchasers of the Company's securities between March 28, 2012 and May 3, 2013, and seek compensatory damages, rescission, fees and costs, as well as equitable and injunctive or other relief. The plaintiffs’ motion for consolidation of the actions and for appointment of lead plaintiff has been granted, and the Company anticipates that the plaintiffs will file an amended consolidated complaint. No responses to the current complaints are due at this time. | ||||
Due to the inherent uncertainties of litigation, the Company cannot accurately predict the ultimate outcome of this matter. The Company is unable at this time to determine whether the outcome of the litigation would have a material impact on its results of operations, financial condition or cash flow. The Company has not established any reserve for any potential liability relating to this lawsuit, because this contingency is not considered probable and reasonably estimable. | ||||
From time to time, the Company may be involved in other lawsuits, claims, investigations and proceedings, consisting of intellectual property, commercial, employment and other matters which arise in the ordinary course of business. |
Stockbased_Compensation_and_Aw
Stock-based Compensation and Awards | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
Stock-based Compensation and Award | ' | |||||||||||||||
Stock-based Compensation and Awards | ||||||||||||||||
Stock Option Activity | ||||||||||||||||
A summary of the stock option activity for the six months ended June 30, 2014 is presented below: | ||||||||||||||||
Options outstanding | ||||||||||||||||
Number of Options | Weighted Average Exercise Price | Weighted average remaining contractual term | Aggregate intrinsic value | |||||||||||||
(in years) | (in thousands) | |||||||||||||||
Outstanding at December 31, 2013 | 3,287,207 | $ | 9.62 | 6.8 | $ | 24,880 | ||||||||||
Options granted | 567,197 | 13.81 | ||||||||||||||
Options exercised | (204,385 | ) | 3.88 | |||||||||||||
Options canceled | (33,484 | ) | 17.34 | |||||||||||||
Outstanding at June 30, 2014 | 3,616,535 | $ | 10.53 | 6.7 | $ | 17,361 | ||||||||||
At June 30, 2014, there was $9.4 million of unrecognized net compensation cost related to options which is expected to be recognized over a weighted-average period of 2.75 years. The Company did not grant non-employee options in either of the six months ended June 30, 2014 or 2013. As of June 30, 2014, there were 708,161 shares that remained available for future issuance of options, restricted stock units (“RSUs”) or other equity awards under the 2012 Equity Incentive Plan. | ||||||||||||||||
The Company uses the Black-Scholes option-pricing model to calculate the fair value of stock options on their grant date. The following assumptions were used for each respective period for employee stock options: | ||||||||||||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Expected Term (in years) | 5.41 | 5.38 | 5.41 | 5.38 - 5.43 | ||||||||||||
Volatility | 44.00% | 46.70% | 44.0% - 48.2% | 46.7% - 48.1% | ||||||||||||
Risk-free interest rate | 1.71% | 1.11% | 1.59% - 1.71% | 0.81% - 1.11% | ||||||||||||
Dividend yield | 0% | 0% | 0% | 0% | ||||||||||||
Exercise of common stock warrants | ||||||||||||||||
During the six months ended June 30, 2013, holders of common stock warrants exercised 34,142 shares for cash proceeds of $0.2 million. There were no cash exercises of warrants during six months ended June 30, 2014. | ||||||||||||||||
Employee Stock Purchase Plan | ||||||||||||||||
In March 2012, the Company’s 2012 Employee Stock Purchase Plan (the “ESPP”) was approved. During the six months ended June 30, 2014, employees purchased 86,646 shares of common stock at an average purchase price of $10.91. During the six months ended June 30, 2013, employees purchased 115,784 shares of common stock at an average purchase price of $13.79. As of June 30, 2014, 356,945 shares remained available for future issuance under the ESPP. | ||||||||||||||||
The following Black-Scholes option-pricing assumptions were used for each respective period for the ESPP: | ||||||||||||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Expected Term (in years) | 0.5 | 0.5 | 0.5 | 0.5 | ||||||||||||
Volatility | 35.90% | 33.30% | 35.9% - 36.0%% | 33.30% | ||||||||||||
Risk-free interest rate | 0.05% | 0.13% | 0.05% - 0.10% | 0.13% | ||||||||||||
Dividend yield | 0% | 0% | 0% | 0% | ||||||||||||
Restricted Stock Awards and Restricted Stock Units | ||||||||||||||||
A summary of restricted stock and RSU activity for the six months ended June 30, 2014 is presented below: | ||||||||||||||||
Restricted Stock Awards | Restricted Stock Units | |||||||||||||||
Number of shares | Weighted Average Grant Date Fair Value per Share | Number of shares | Weighted Average Grant Date Fair Value per Share | |||||||||||||
Outstanding at December 31, 2013 | 12,076 | $ | 12.42 | 755,271 | $ | 19.24 | ||||||||||
Granted | — | — | 425,616 | 14.1 | ||||||||||||
Vested | (12,076 | ) | 12.42 | (200,383 | ) | 19.59 | ||||||||||
Forfeited | — | — | (30,082 | ) | 19.79 | |||||||||||
Outstanding at June 30, 2014 | — | $ | — | 950,422 | $ | 16.84 | ||||||||||
At June 30, 2014, there was no remaining unrecognized net compensation cost related to restricted stock awards. At June 30, 2014, there was $12.8 million of unrecognized net compensation cost related to RSUs, which is expected to be recognized over a weighted-average period of 2.1 years. | ||||||||||||||||
Allocation of Stock-Based Compensation Expense | ||||||||||||||||
The following table presents the stock-based compensation allocation of expense (both for employees and non-employees): | ||||||||||||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
(in thousands) | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Cost of revenue | $ | 252 | $ | 214 | $ | 538 | $ | 435 | ||||||||
Research and development | 239 | 228 | 459 | 437 | ||||||||||||
Sales and marketing | 1,068 | 726 | 2,035 | 1,306 | ||||||||||||
General and administrative | 1,219 | 848 | 2,344 | 1,542 | ||||||||||||
Total stock-based compensation | $ | 2,778 | $ | 2,016 | $ | 5,376 | $ | 3,720 | ||||||||
Segments
Segments | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Segments | ' | |||||||||||||||
Segments | ||||||||||||||||
The Company has two operating segments which are both reportable business segments: (i) Product and (ii) Service, both of which are comprised of Vocera’s and its wholly-owned subsidiaries’ results of operations. Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker (“CODM”), or decision making group, in deciding how to allocate resources and in assessing performance. The Company’s CODM is its Chief Executive Officer. | ||||||||||||||||
The CODM regularly receives information related to revenue, cost of revenue, and gross profit for each operating segment, and uses this information to assess performance and make resource allocation decisions. All other financial information, including operating expenses and assets, is prepared and reviewed by the CODM on a consolidated basis. Assets are not a measure used to assess the performance of the Company by the CODM; therefore, the Company does not report assets by segment internally or in its financial statements. | ||||||||||||||||
The following table presents a summary of the operating segments: | ||||||||||||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
(in thousands) | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Revenue | ||||||||||||||||
Product | $ | 11,850 | $ | 15,340 | $ | 26,039 | $ | 28,300 | ||||||||
Service | 11,169 | 9,956 | 21,656 | 19,409 | ||||||||||||
Total revenue | 23,019 | 25,296 | 47,695 | 47,709 | ||||||||||||
Cost of Revenue | ||||||||||||||||
Product | 4,421 | 5,336 | 9,411 | 9,946 | ||||||||||||
Service | 4,528 | 4,170 | 9,342 | 8,254 | ||||||||||||
Total cost of revenue | 8,949 | 9,506 | 18,753 | 18,200 | ||||||||||||
Gross profit | ||||||||||||||||
Product | 7,429 | 10,004 | 16,628 | 18,354 | ||||||||||||
Service | 6,641 | 5,786 | 12,314 | 11,155 | ||||||||||||
Total gross profit | 14,070 | 15,790 | 28,942 | 29,509 | ||||||||||||
Operating expenses | 21,132 | 17,726 | 42,338 | 34,870 | ||||||||||||
Interest (expense) income, net and other | 117 | (25 | ) | 139 | (48 | ) | ||||||||||
Loss before income taxes | $ | (6,945 | ) | $ | (1,961 | ) | $ | (13,257 | ) | $ | (5,409 | ) |
Income_Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
Income Taxes | |
The provision for income taxes was $140,000 and $112,000 for the six months ended June 30, 2014 and 2013, respectively. The expense in both periods was primarily due to taxes on international operations and state income taxes. | |
As of June 30, 2014, the Company has provided a valuation allowance against certain federal and state deferred tax assets. | |
Management continues to evaluate the realizability of deferred tax assets and the related valuation allowance. If management's assessment of the deferred tax assets or the corresponding valuation allowance were to change, the Company would record the | |
related adjustment to income during the period in which management makes the determination. | |
As of June 30, 2014, there were no material changes to either the nature or the amounts of the uncertain tax positions previously determined for the year ended December 31, 2013. |
Business_Acquisition
Business Acquisition | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
Business Combinations [Abstract] | ' | ||||
Business Combination Disclosure | ' | ||||
Business acquisition | |||||
On January 13, 2014, the Company acquired certain assets and certain liabilities of mVisum, Inc. (“mVisum”), an innovative provider of alarm management technology solutions for health systems, for $3.5 million in cash. The acquisition enabled the Company to enhance its existing platform with complementary communications solutions for healthcare and other mission-critical environments. | |||||
The following table presents the fair value of the identifiable assets acquired and liabilities assumed as of the acquisition date: | |||||
(in thousands) | Fair value of net assets acquired | ||||
Accounts receivable | $ | 187 | |||
Intangibles | |||||
Developed technology | 830 | ||||
Non-compete agreement | 260 | ||||
Customer relationships | 170 | ||||
Trademarks and trade names | 40 | ||||
Goodwill | 2,103 | ||||
Total assets | 3,590 | ||||
Deferred revenue | (90 | ) | |||
Net assets acquired | $ | 3,500 | |||
The estimated fair values of identifiable intangible assets were primarily determined using discounted cash flow models. The acquired intangible assets are amortized over their estimated useful lives of 4.0 to 7.0 years with a weighted average amortization period of 5.7 years. | |||||
The excess of the acquisition consideration over the fair values of the underlying net assets acquired was recorded as goodwill. Goodwill is largely attributable to the synergy of mVisum’s proprietary solutions with the Company’s existing customer base, dedicated sales force and cross selling opportunities with the Company’s other solutions. Goodwill is not amortized but instead is tested for impairment at least annually or more frequently if indicators of impairment are present. For federal income tax purposes, the entire purchase consideration, including goodwill, is deductible over fifteen years. The goodwill recorded from the acquisition of mVisum is attributed to the Product reporting unit. | |||||
The Company incurred $0.2 million of acquisition-related costs that were expensed as incurred. These costs are recorded as general and administrative expenses in the consolidated statement of operations. Additionally, in connection with the acquisition the Company established a retention bonus plan for mVisum with potential additional compensation over a two-year period of approximately $0.5 million, based on achievement of operating objectives and continued employment. Such amounts are not considered part of the purchase consideration and are being recorded as earned as compensation expense. The acquisition did not result in material contributions to revenue or net loss in the consolidated financial statements since the acquisition date. Additionally, pro forma financial information is not provided for consolidated revenue and net loss, since the acquisition was not material to the consolidated financial statements. |
The_Company_and_Summary_of_Sig1
The Company and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Nature of Operations | ' |
Organization and Business | |
Vocera Communications, Inc. (the “Company”) is a provider of secure, integrated, intelligent communication solutions, focused on empowering mobile workers in healthcare, hospitality, energy, and other mission-critical mobile work environments, in the United States and internationally. The majority of the Company's business is currently generated from sales of its solutions in the healthcare market, but the Company is actively engaged in other markets. Vocera helps its healthcare customers improve patient safety and satisfaction, and increase hospital efficiency and productivity through its Communication and Care Experience solutions. These have been installed in more than 1,200 healthcare and non-healthcare organizations worldwide. | |
The Vocera Communication System, which includes an intelligent enterprise software platform, a lightweight, wearable, voice-controlled communication badge, and smartphone applications, enables users to connect instantly with other staff simply by saying the name, function or group name of the desired recipient. It also securely delivers text messages and alerts directly to and from smartphones, replacing legacy pagers. The Vocera Care Experience is a hosted software solution suite that coordinates and streamlines patient-to-provider and provider-to-provider communication across the continuum of care. Vocera Care Experience is complemented by the Company’s Experience Innovation Network, a membership-based program to spread the adoption of leading strategies to improve patient and staff experience. | |
The Company was incorporated in Delaware on February 16, 2000. The Company formed wholly-owned subsidiaries Vocera Communications UK Ltd and Vocera Communications Australia Pty Ltd. in 2005, Vocera Canada, Ltd. in 2010, Vocera Communications India Private Ltd. in 2013 and Vocera Communications Middle East FZ-LLC in 2014 | |
Basis of Presentation | ' |
Basis of Presentation | |
The Company’s unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the instructions to Form 10-Q and Article 10 of Regulation S-X of the U.S. Securities and Exchange Commission, and include the accounts of Vocera and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated. Certain information and disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. Accordingly, these unaudited interim condensed consolidated financial statements should be read in conjunction with the annual audited consolidated financial statements and notes thereto contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2013. The year-end condensed balance sheet data was derived from the Company's audited financial statements, but does not include all disclosures required by U.S. GAAP. | |
In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the Company’s interim consolidated financial information. The results for the quarter presented are not necessarily indicative of the results to be expected for the year ending December 31, 2014 or for any other interim period or any other future year. | |
Use of Estimates | ' |
Use of Estimates | |
The preparation of the accompanying unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting periods. The estimates include, but are not limited to, revenue recognition, useful lives assigned to long-lived assets, excess and obsolete inventory charges, warranty reserves, stock-based compensation expense, provisions for income taxes and contingencies. Actual results could differ from these estimates, and such differences could be material to the Company’s financial position and results of operations. | |
Revenue Recognition | ' |
Revenue Recognition | |
The Company derives revenue from the sales of communication badges, smartphone application software, perpetual software licenses for enterprise software that is essential to the functionality of the communication badges, software maintenance, extended warranty and professional services. The Company also derives revenue from the sale of perpetual and subscription licenses for software that is not essential to the functionality of the communication badges. The Company's revenue recognition policy has not changed from that described in its Annual Report on Form 10-K for the year ended December 31, 2013. | |
Lease, Policy | ' |
A portion of the Company's sales are made through multi-year lease agreements with customers. When these arrangements are considered sales-type leases, upon delivery of leased products to customers, the Company recognizes revenue for such products in an amount equal to the net present value of the minimum lease payments. Unearned income is recognized as part of product revenue under the effective interest method. The Company recognizes revenue related to executory costs when such executory costs are incurred. | |
Proceeds from transfers of sales-type leases to third-party financial companies are allocated between the net investment in sales-type leases and the executory cost component for remaining service obligations based on relative present value. The difference between the amount of proceeds allocated to the net investment in lease and the carrying value of the net investment in lease is included in product revenue. Proceeds allocated to the executory cost component are accounted for as financing liabilities. | |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
In July 2013, the Financial Accounting Standards Board (“FASB”) issued new guidance for the gross versus net presentation of unrecognized tax benefits. The FASB concluded that an unrecognized tax benefit should be presented as a reduction of a deferred tax asset for a net operating loss (“NOL”) or other tax credit carryforward when settlement in this manner is available under the tax law. The new guidance was effective for the Company's first quarter of 2014, applied prospectively. Adoption of this standard was not significant to the Company's financial position or results of operations. | |
In April 2014, the FASB issued revised guidance for reporting discontinued operations and disclosures of disposals of components of an entity. Under the new guidance, only disposals representing a strategic shift in the entity’s operations and financial results will be presented as discontinued operations. In addition, the new guidance requires certain expanded disclosures about discontinued operations and limited disclosures for a disposal not qualifying for such reporting. The Company’s effective date for these amendments will be the first quarter of 2015, with early adoption permitted. The adoption of this guidance is not expected to have a significant impact on the Company’s financial position or results of operations. | |
In May 2014, the FASB together with the International Accounting Standards Board issued converged guidance for revenue recognition that will replace most existing guidance, eliminate industry-specific guidance and provide a unified model for determining how and when revenue from contracts with customers should be recognized. Under the new guidance, an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard will also introduce additional disclosures, changes in asset and liability accounting, and changes in gain/loss recognition for asset transfers unrelated to customer transactions. | |
The Company’s effective date for this standard will be the first quarter of 2017; no early application is permitted. Two methods of transition are provided: a full retrospective approach, with certain practical expedients allowed, and a cumulative effect method, with balance sheet adjustment as of January 1, 2017. The Company is evaluating the effect the new standard will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the future effect of the standard on its financial position or results of operations. | |
Fair Value of Fin. Instruments, Policy | ' |
Fair Value of Financial Instruments | |
The Company’s cash and cash equivalents and short-term investments are carried at their fair values with any differences from their amortized cost recorded in equity as unrealized gains (losses) on marketable securities. As a basis for determining the fair value of its assets and liabilities, the Company established a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: (Level 1) observable inputs such as quoted prices in active markets; (Level 2) inputs other than the quoted prices in active markets that are observable either directly or indirectly; and (Level 3) unobservable inputs in which there is little or no market data which requires the Company to develop its own assumptions. This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. For the six months ended June 30, 2014, there have been no transfers between Level 1 and Level 2 fair value instruments and no transfers in or out of Level 3. | |
The Company's money market funds are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices. The fair value of the Company's Level 2 fixed income securities are obtained from independent pricing services, which may use quoted market prices for identical or comparable instruments or model-driven valuations using observable market data or other inputs corroborated by observable market data | |
Goodwill, Policy | ' |
Goodwill | |
As of June 30, 2014 and December 31, 2013, the Company had $7.7 million and $5.6 million of goodwill acquired. During the six months ended June 30, 2014, the Company recorded additional goodwill of $2.1 million for the mVisum acquisition (see Note 11, "Business acquisition"). As of June 30, 2014, there were no changes in circumstances indicating that the carrying values of goodwill or acquired intangibles may not be recoverable. | |
Intangible Assets, Policy | ' |
Intangible Assets | |
Acquisition-related intangible assets are amortized either straight-line, or over the life of the assets on a basis that resembles the economic benefit of the assets. This yields amortization in the latter case that is higher in earlier periods of the useful life. | |
Purchase commitments | ' |
Non-cancelable Material Commitments | |
The Company is required to purchase unused, non-cancelable, non-returnable raw material inventory that was purchased by its contract manufacturers based on committed finished goods orders from the Company, certain long lead-time raw materials based on the Company’s forecast and current work-in-progress materials. As of June 30, 2014 and December 31, 2013, approximately $3.2 million and $3.1 million, respectively, of such inventory was purchased and held by the third-party manufacturers which was subject to these purchase guarantees. | |
Operating leases | ' |
Leases | |
The Company leases office space for its headquarters and subsidiaries under non-cancelable operating leases, which will expire between December 2014 and April 2017. The San Jose, California headquarters lease expires on March 31, 2016, with a single three-year extension option at rates approximating the then-fair market value. The Company recognizes rent expense on a straight-line basis over the lease period, and has accrued for rent expense incurred but not paid. Facilities rent expense was $0.5 million and $0.5 million for the three months ended June 30, 2014 and June 30, 2013, respectively. | |
Segment Reporting, Policy | ' |
The Company has two operating segments which are both reportable business segments: (i) Product and (ii) Service, both of which are comprised of Vocera’s and its wholly-owned subsidiaries’ results of operations. Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker (“CODM”), or decision making group, in deciding how to allocate resources and in assessing performance. The Company’s CODM is its Chief Executive Officer. | |
The CODM regularly receives information related to revenue, cost of revenue, and gross profit for each operating segment, and uses this information to assess performance and make resource allocation decisions. All other financial information, including operating expenses and assets, is prepared and reviewed by the CODM on a consolidated basis. Assets are not a measure used to assess the performance of the Company by the CODM; therefore, the Company does not report assets by segment internally or in its financial statements. |
Fair_value_of_financial_instru1
Fair value of financial instruments (Tables) | 6 Months Ended | |||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||
Schedule of assets and liabilities measured at fair value on a recurring basis, by level | ' | |||||||||||||||||||
The Company’s assets that are measured at fair value on a recurring basis, by level, within the fair value hierarchy as of June 30, 2014 and December 31, 2013, are summarized as follows (in thousands): | ||||||||||||||||||||
June 30, 2014 | December 31, 2013 | |||||||||||||||||||
Level 1 | Level 2 | Total | Level 1 | Level 2 | Total | |||||||||||||||
Assets | ||||||||||||||||||||
Money market funds | $ | 6,669 | $ | — | $ | 6,669 | $ | 22,991 | $ | — | $ | 22,991 | ||||||||
Commercial paper | — | 2,869 | 2,869 | — | 900 | 900 | ||||||||||||||
U.S. government agency securities | — | 10,543 | 10,543 | — | 11,279 | 11,279 | ||||||||||||||
U.S. Treasury securities | — | 5,685 | 5,685 | — | 5,235 | 5,235 | ||||||||||||||
Municipal debt securities | — | 4,700 | 4,700 | — | 4,765 | 4,765 | ||||||||||||||
Corporate debt securities | — | 81,903 | 81,903 | — | 67,055 | 67,055 | ||||||||||||||
Total assets measured at fair value | $ | 6,669 | $ | 105,700 | $ | 112,369 | $ | 22,991 | $ | 89,234 | $ | 112,225 | ||||||||
Cash_Cash_Equivalents_and_Shor1
Cash, Cash Equivalents and Short-term Investments (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Cash and Cash Equivalents [Abstract] | ' | |||||||||||||||
Schedule of cash, cash equivalents and available-for-sale investments | ' | |||||||||||||||
The following tables present current and prior-year-end balances for cash, cash equivalents and short-term investments (in thousands): | ||||||||||||||||
As of June 30, 2014 | ||||||||||||||||
Amortized Cost | Unrealized Gains | Unrealized Losses | Fair value | |||||||||||||
Cash and cash equivalents: | ||||||||||||||||
Demand deposits and other cash | $ | 8,256 | $ | — | $ | — | $ | 8,256 | ||||||||
Money market funds | 6,669 | — | — | 6,669 | ||||||||||||
Commercial paper | 1,000 | — | — | 1,000 | ||||||||||||
U.S. government agency securities | 21 | — | — | 21 | ||||||||||||
Corporate debt securities | 1,015 | — | — | 1,015 | ||||||||||||
Total cash and cash equivalents | 16,961 | — | — | 16,961 | ||||||||||||
Short-Term Investments: | ||||||||||||||||
Commercial paper | 1,869 | — | — | 1,869 | ||||||||||||
U.S. government agency securities | 10,517 | 5 | — | 10,522 | ||||||||||||
U.S. Treasury securities | 5,681 | 4 | — | 5,685 | ||||||||||||
Municipal debt securities | 4,694 | 6 | — | 4,700 | ||||||||||||
Corporate debt securities | 80,901 | 21 | (34 | ) | 80,888 | |||||||||||
Total short-term investments | 103,662 | 36 | (34 | ) | 103,664 | |||||||||||
Total cash, cash equivalents and short-term investments | $ | 120,623 | $ | 36 | $ | (34 | ) | $ | 120,625 | |||||||
As of December 31, 2013 | ||||||||||||||||
Amortized Cost | Unrealized Gains | Unrealized Losses | Fair value | |||||||||||||
Cash and cash equivalents: | ||||||||||||||||
Demand deposits and other cash | $ | 15,451 | $ | — | $ | — | $ | 15,451 | ||||||||
Money market funds | 22,991 | — | — | 22,991 | ||||||||||||
Commercial paper | 150 | — | — | 150 | ||||||||||||
Corporate debt securities | 1,060 | — | — | 1,060 | ||||||||||||
Total cash and cash equivalents | 39,652 | — | — | 39,652 | ||||||||||||
Short-Term Investments: | ||||||||||||||||
Commercial paper | 750 | — | — | 750 | ||||||||||||
U.S. government agency securities | 11,275 | 5 | (1 | ) | 11,279 | |||||||||||
U.S. Treasury securities | 5,233 | 2 | — | 5,235 | ||||||||||||
Municipal debt securities | 4,758 | 7 | — | 4,765 | ||||||||||||
Corporate debt securities | 65,982 | 20 | (7 | ) | 65,995 | |||||||||||
Total short-term investments | 87,998 | 34 | (8 | ) | 88,024 | |||||||||||
Total cash, cash equivalents and short-term investments | $ | 127,650 | $ | 34 | $ | (8 | ) | $ | 127,676 | |||||||
Investments Classified by Contractual Maturity Date | ' | |||||||||||||||
Classification of the cash, cash equivalent and short-term investments by contractual maturity was as follows: | ||||||||||||||||
(in thousands) | One year or shorter | Between 1 and 2 years | Total | |||||||||||||
Balances as of June 30, 2014 | ||||||||||||||||
Cash and cash equivalents (1) | $ | 16,961 | $ | — | $ | 16,961 | ||||||||||
Short-term investments | 92,576 | 11,088 | 103,664 | |||||||||||||
Cash, cash equivalents and short-term investments | $ | 109,537 | $ | 11,088 | $ | 120,625 | ||||||||||
Balances as of December 31, 2013 | ||||||||||||||||
Cash and cash equivalents (1) | $ | 39,652 | $ | — | $ | 39,652 | ||||||||||
Short-term investments | 71,464 | 16,560 | 88,024 | |||||||||||||
Cash, cash equivalents and short-term investments | $ | 111,116 | $ | 16,560 | $ | 127,676 | ||||||||||
(1) Includes demand deposits and other cash, money market funds and other cash equivalent securities, all with 0-90 day maturity at purchase. |
Income_loss_per_share_Tables
Income (loss) per share (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Schedule of the computation of basic and diluted net income (loss) per share | ' | |||||||||||||||
The following table sets forth the computation of basic and diluted net loss per share (in thousands, except per share amounts): | ||||||||||||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Numerator: | ||||||||||||||||
Net loss | $ | (7,008 | ) | $ | (2,022 | ) | $ | (13,397 | ) | $ | (5,521 | ) | ||||
Denominator: | ||||||||||||||||
Weighted-average shares used to compute net loss per common share - basic and diluted | 25,246 | 24,555 | 25,147 | 24,419 | ||||||||||||
Net loss per share | ||||||||||||||||
Basic and diluted | $ | (0.28 | ) | $ | (0.08 | ) | $ | (0.53 | ) | $ | (0.23 | ) | ||||
Schedule of antidilutive securities excluded from computation of earnings per share | ' | |||||||||||||||
The following securities were not included in the calculation of diluted shares outstanding as the effect would have been anti-dilutive: | ||||||||||||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
(in thousands) | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Options to purchase common stock, including ESPP | 3,692 | 3,379 | 3,499 | 3,313 | ||||||||||||
Common stock subject to repurchase | 8 | 29 | 7 | 32 | ||||||||||||
Warrants to purchase common stock | 44 | 44 | 44 | 44 | ||||||||||||
Restricted stock units | 950 | 581 | 876 | 511 | ||||||||||||
Restricted stock awards | — | 12 | — | 12 | ||||||||||||
Goodwill_and_intangible_assets1
Goodwill and intangible assets (Tables) | 6 Months Ended | |||||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets | ' | |||||||||||||||||||||||||
The estimated useful lives and carrying value of acquired intangible assets are as follows: | ||||||||||||||||||||||||||
June 30, 2014 | December 31, 2013 | |||||||||||||||||||||||||
(in thousands) | Range of | Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||||||||
Useful Life | Carrying | Amortization | Carrying | Carrying | Amortization | Carrying | ||||||||||||||||||||
(years) | Amount | Amount | Amount | Amount | ||||||||||||||||||||||
Developed technology | 4 to 7 | $ | 2,710 | $ | 1,473 | $ | 1,237 | $ | 1,880 | $ | 1,264 | $ | 616 | |||||||||||||
Customer relationships | 7 to 9 | 2,520 | 1,584 | 936 | 2,350 | 1,449 | 901 | |||||||||||||||||||
Non-compete agreements | 2 to 4 | 260 | 26 | 234 | 70 | 70 | — | |||||||||||||||||||
Trademarks and trade names | 4 to 7 | 110 | 53 | 57 | 70 | 43 | 27 | |||||||||||||||||||
Intangible assets | $ | 5,600 | $ | 3,136 | $ | 2,464 | $ | 4,370 | $ | 2,826 | $ | 1,544 | ||||||||||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | ' | |||||||||||||||||||||||||
Amortization of acquired intangible assets is reflected in the cost of revenue or operating expenses, depending on the nature of the intangible. The estimated future amortization of existing acquired intangible assets as of June 30, 2014 was as follows: | ||||||||||||||||||||||||||
(in thousands) | Future amortization | |||||||||||||||||||||||||
2014 (remaining six months) | $ | 405 | ||||||||||||||||||||||||
2015 | 626 | |||||||||||||||||||||||||
2016 | 495 | |||||||||||||||||||||||||
2017 | 394 | |||||||||||||||||||||||||
2018 | 275 | |||||||||||||||||||||||||
2019 | 229 | |||||||||||||||||||||||||
Thereafter | 40 | |||||||||||||||||||||||||
Future amortization expense | $ | 2,464 | ||||||||||||||||||||||||
Balance_Sheet_Components_Table
Balance Sheet Components (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Balance Sheet Components [Abstract] | ' | |||||||||||||||
Inventories | ' | |||||||||||||||
Inventories | ||||||||||||||||
(in thousands) | June 30, | December 31, | ||||||||||||||
2014 | 2013 | |||||||||||||||
Raw materials | $ | 461 | $ | 806 | ||||||||||||
Finished goods | 3,954 | 4,859 | ||||||||||||||
Total inventories | $ | 4,415 | $ | 5,665 | ||||||||||||
Property and Equipment | ' | |||||||||||||||
Property and equipment, net | ||||||||||||||||
(in thousands) | June 30, | December 31, | ||||||||||||||
2014 | 2013 | |||||||||||||||
Computer equipment and software | $ | 7,814 | $ | 7,345 | ||||||||||||
Furniture, fixtures and equipment | 953 | 924 | ||||||||||||||
Leasehold improvements | 2,136 | 2,125 | ||||||||||||||
Manufacturing tools and equipment | 3,127 | 3,081 | ||||||||||||||
Construction in process | 593 | 555 | ||||||||||||||
Property and equipment, at cost | 14,623 | 14,030 | ||||||||||||||
Less: Accumulated depreciation | (9,779 | ) | (8,665 | ) | ||||||||||||
Property and equipment, net | $ | 4,844 | $ | 5,365 | ||||||||||||
Depreciation and amortization expense was $0.6 million and $0.4 million for the three months ended June 30, 2014 and 2013, respectively. Depreciation and amortization expense was $1.1 million and $0.8 million for the six months ended June 30, 2014 and 2013, respectively. | ||||||||||||||||
Accrued Liabilities | ' | |||||||||||||||
Accrued payroll and other current liabilities | ||||||||||||||||
(in thousands) | June 30, | December 31, | ||||||||||||||
2014 | 2013 | |||||||||||||||
Payroll and related expenses | $ | 4,998 | $ | 5,065 | ||||||||||||
Accrued payables | 2,169 | 2,259 | ||||||||||||||
Deferred rent, current portion | 399 | 490 | ||||||||||||||
Lease financing, current portion | 656 | 528 | ||||||||||||||
Product warranty | 582 | 840 | ||||||||||||||
Sales and use tax payable | 166 | 259 | ||||||||||||||
Other | 322 | 400 | ||||||||||||||
Total accrued payroll and other current liabilities | $ | 9,292 | $ | 9,841 | ||||||||||||
Schedule of Product Warranty Liability | ' | |||||||||||||||
The changes in the Company's product warranty reserve are as follows: | ||||||||||||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
(in thousands) | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Warranty balance at the beginning of the period | $ | 722 | $ | 207 | $ | 840 | $ | 297 | ||||||||
Warranty expense accrued for shipments in period | 189 | 100 | 487 | 174 | ||||||||||||
Changes in estimate related to pre-existing warranties | (26 | ) | 178 | 25 | 227 | |||||||||||
Warranty settlements made | (303 | ) | (283 | ) | (770 | ) | (496 | ) | ||||||||
Warranty balance at the end of the period | $ | 582 | $ | 202 | $ | 582 | $ | 202 | ||||||||
Schedule of Components of Leveraged Lease Investments | ' | |||||||||||||||
Net investment in sales-type leases | ||||||||||||||||
The Company has sales-type leases with terms of 1.25 to 4 years. Sales-type lease receivables are collateralized by the underlying equipment. The components of our net investment in sales-type leases are as follows: | ||||||||||||||||
(in thousands) | June 30, | December 31, | ||||||||||||||
2014 | 2013 | |||||||||||||||
Minimum payments to be received on sales-type leases | $ | 2,273 | $ | 2,597 | ||||||||||||
Less: Unearned interest income and executory costs | (1,108 | ) | (1,167 | ) | ||||||||||||
Net investment in sales-type leases | 1,165 | 1,430 | ||||||||||||||
Less: Current portion | (575 | ) | (620 | ) | ||||||||||||
Non-current net investment in sales-type leases | $ | 590 | $ | 810 | ||||||||||||
There were no allowances for doubtful accounts on these leases as of June 30, 2014 and December 31, 2013. There is no guaranteed or unguaranteed residual value on the leased equipment. The current and non-current net investments in sales-types leases are reported as components of the consolidated balance sheet captions "other receivables" and "other long-term assets," respectively. | ||||||||||||||||
Schedule of Future Minimum Lease Payments for Capital Leases | ' | |||||||||||||||
The minimum payments expected to be received for future years under sales-type leases as of June 30, 2014 were as follows: | ||||||||||||||||
(in thousands) | Future lease payments | |||||||||||||||
2014 (six months remaining) | $ | 484 | ||||||||||||||
2015 | 844 | |||||||||||||||
2016 | 672 | |||||||||||||||
2017 | 273 | |||||||||||||||
Total | $ | 2,273 | ||||||||||||||
Commitments_Tables
Commitments (Tables) | 6 Months Ended | |||
Jun. 30, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||
Schedule of Future Minimum Rental Payments for Operating Leases | ' | |||
Future minimum lease payments at June 30, 2014 under non-cancelable operating leases are as follows: | ||||
(in thousands) | Operating leases | |||
2014 (remaining six months) | $ | 865 | ||
2015 | 1,693 | |||
2016 | 539 | |||
2017 | 33 | |||
Total minimum lease payments | $ | 3,130 | ||
Stockbased_Compensation_and_Aw1
Stock-based Compensation and Awards (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
Rollforward of stock option activity | ' | |||||||||||||||
A summary of the stock option activity for the six months ended June 30, 2014 is presented below: | ||||||||||||||||
Options outstanding | ||||||||||||||||
Number of Options | Weighted Average Exercise Price | Weighted average remaining contractual term | Aggregate intrinsic value | |||||||||||||
(in years) | (in thousands) | |||||||||||||||
Outstanding at December 31, 2013 | 3,287,207 | $ | 9.62 | 6.8 | $ | 24,880 | ||||||||||
Options granted | 567,197 | 13.81 | ||||||||||||||
Options exercised | (204,385 | ) | 3.88 | |||||||||||||
Options canceled | (33,484 | ) | 17.34 | |||||||||||||
Outstanding at June 30, 2014 | 3,616,535 | $ | 10.53 | 6.7 | $ | 17,361 | ||||||||||
Stock option valuation assumptions | ' | |||||||||||||||
The following assumptions were used for each respective period for employee stock options: | ||||||||||||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Expected Term (in years) | 5.41 | 5.38 | 5.41 | 5.38 - 5.43 | ||||||||||||
Volatility | 44.00% | 46.70% | 44.0% - 48.2% | 46.7% - 48.1% | ||||||||||||
Risk-free interest rate | 1.71% | 1.11% | 1.59% - 1.71% | 0.81% - 1.11% | ||||||||||||
Dividend yield | 0% | 0% | 0% | 0% | ||||||||||||
ESPP Valuation Assumptions | ' | |||||||||||||||
The following Black-Scholes option-pricing assumptions were used for each respective period for the ESPP: | ||||||||||||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Expected Term (in years) | 0.5 | 0.5 | 0.5 | 0.5 | ||||||||||||
Volatility | 35.90% | 33.30% | 35.9% - 36.0%% | 33.30% | ||||||||||||
Risk-free interest rate | 0.05% | 0.13% | 0.05% - 0.10% | 0.13% | ||||||||||||
Dividend yield | 0% | 0% | 0% | 0% | ||||||||||||
Rollforward of RSA and RSU activty | ' | |||||||||||||||
A summary of restricted stock and RSU activity for the six months ended June 30, 2014 is presented below: | ||||||||||||||||
Restricted Stock Awards | Restricted Stock Units | |||||||||||||||
Number of shares | Weighted Average Grant Date Fair Value per Share | Number of shares | Weighted Average Grant Date Fair Value per Share | |||||||||||||
Outstanding at December 31, 2013 | 12,076 | $ | 12.42 | 755,271 | $ | 19.24 | ||||||||||
Granted | — | — | 425,616 | 14.1 | ||||||||||||
Vested | (12,076 | ) | 12.42 | (200,383 | ) | 19.59 | ||||||||||
Forfeited | — | — | (30,082 | ) | 19.79 | |||||||||||
Outstanding at June 30, 2014 | — | $ | — | 950,422 | $ | 16.84 | ||||||||||
Allocation of Recognized Period Costs | ' | |||||||||||||||
The following table presents the stock-based compensation allocation of expense (both for employees and non-employees): | ||||||||||||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
(in thousands) | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Cost of revenue | $ | 252 | $ | 214 | $ | 538 | $ | 435 | ||||||||
Research and development | 239 | 228 | 459 | 437 | ||||||||||||
Sales and marketing | 1,068 | 726 | 2,035 | 1,306 | ||||||||||||
General and administrative | 1,219 | 848 | 2,344 | 1,542 | ||||||||||||
Total stock-based compensation | $ | 2,778 | $ | 2,016 | $ | 5,376 | $ | 3,720 | ||||||||
Segments_Tables
Segments (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Summary of the operating segments | ' | |||||||||||||||
The following table presents a summary of the operating segments: | ||||||||||||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
(in thousands) | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Revenue | ||||||||||||||||
Product | $ | 11,850 | $ | 15,340 | $ | 26,039 | $ | 28,300 | ||||||||
Service | 11,169 | 9,956 | 21,656 | 19,409 | ||||||||||||
Total revenue | 23,019 | 25,296 | 47,695 | 47,709 | ||||||||||||
Cost of Revenue | ||||||||||||||||
Product | 4,421 | 5,336 | 9,411 | 9,946 | ||||||||||||
Service | 4,528 | 4,170 | 9,342 | 8,254 | ||||||||||||
Total cost of revenue | 8,949 | 9,506 | 18,753 | 18,200 | ||||||||||||
Gross profit | ||||||||||||||||
Product | 7,429 | 10,004 | 16,628 | 18,354 | ||||||||||||
Service | 6,641 | 5,786 | 12,314 | 11,155 | ||||||||||||
Total gross profit | 14,070 | 15,790 | 28,942 | 29,509 | ||||||||||||
Operating expenses | 21,132 | 17,726 | 42,338 | 34,870 | ||||||||||||
Interest (expense) income, net and other | 117 | (25 | ) | 139 | (48 | ) | ||||||||||
Loss before income taxes | $ | (6,945 | ) | $ | (1,961 | ) | $ | (13,257 | ) | $ | (5,409 | ) |
Business_Acquisition_Tables
Business Acquisition (Tables) | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
Business Combinations [Abstract] | ' | ||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | ' | ||||
The following table presents the fair value of the identifiable assets acquired and liabilities assumed as of the acquisition date: | |||||
(in thousands) | Fair value of net assets acquired | ||||
Accounts receivable | $ | 187 | |||
Intangibles | |||||
Developed technology | 830 | ||||
Non-compete agreement | 260 | ||||
Customer relationships | 170 | ||||
Trademarks and trade names | 40 | ||||
Goodwill | 2,103 | ||||
Total assets | 3,590 | ||||
Deferred revenue | (90 | ) | |||
Net assets acquired | $ | 3,500 | |||
The_Company_and_Summary_of_Sig2
The Company and Summary of Significant Accounting Policies Sales type lease data (Details) (USD $) | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Accounting Policies [Abstract] | ' | ' | ' |
sales type capital leases transfered to banks | $0.50 | $0.80 | ' |
Initial financing liability during period incurred for future executory services on transfered leases | 0.3 | 0.6 | ' |
Net Investment in Sales Type Leases | $1.20 | ' | $1.40 |
Fair_value_of_financial_instru2
Fair value of financial instruments Schedule of assets and liabilities measured at fair value on a recurring basis, by level (Details) (USD $) | 6 Months Ended | |
Jun. 30, 2014 | Dec. 31, 2013 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount | $0 | ' |
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount | 0 | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
Cash and Cash Equivalents, Fair Value Disclosure | 16,961,000 | 39,652,000 |
AFS Securities, Fair Value Disclosure | 103,664,000 | 88,024,000 |
Fair Value, Level 3 Transfers in, Description | 0 | ' |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | 0 | ' |
Fair Value, Measurements, Recurring | Level 1 | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
Total assets measured at fair value | 6,669,000 | 22,991,000 |
Fair Value, Measurements, Recurring | Level 2 | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
Total assets measured at fair value | 105,700,000 | 89,234,000 |
Fair Value, Measurements, Recurring | Total | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
Total assets measured at fair value | 112,369,000 | 112,225,000 |
Fair Value, Measurements, Recurring | Money market funds | Level 1 | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
Cash and Cash Equivalents, Fair Value Disclosure | 6,669,000 | 22,991,000 |
Fair Value, Measurements, Recurring | Money market funds | Level 2 | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
Cash and Cash Equivalents, Fair Value Disclosure | 0 | 0 |
Fair Value, Measurements, Recurring | Money market funds | Total | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
Cash and Cash Equivalents, Fair Value Disclosure | 6,669,000 | 22,991,000 |
Fair Value, Measurements, Recurring | Commercial paper | Level 1 | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
AFS Securities, Fair Value Disclosure | 0 | 0 |
Fair Value, Measurements, Recurring | Commercial paper | Level 2 | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
AFS Securities, Fair Value Disclosure | 2,869,000 | 900,000 |
Fair Value, Measurements, Recurring | Commercial paper | Total | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
AFS Securities, Fair Value Disclosure | 2,869,000 | 900,000 |
Fair Value, Measurements, Recurring | U.S. government agency securities | Level 1 | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
AFS Securities, Fair Value Disclosure | 0 | 0 |
Fair Value, Measurements, Recurring | U.S. government agency securities | Level 2 | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
AFS Securities, Fair Value Disclosure | 10,543,000 | 11,279,000 |
Fair Value, Measurements, Recurring | U.S. government agency securities | Total | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
AFS Securities, Fair Value Disclosure | 10,543,000 | 11,279,000 |
Fair Value, Measurements, Recurring | U.S. Treasury securities | Level 1 | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
AFS Securities, Fair Value Disclosure | 0 | 0 |
Fair Value, Measurements, Recurring | U.S. Treasury securities | Level 2 | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
AFS Securities, Fair Value Disclosure | 5,685,000 | 5,235,000 |
Fair Value, Measurements, Recurring | U.S. Treasury securities | Total | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
AFS Securities, Fair Value Disclosure | 5,685,000 | 5,235,000 |
Fair Value, Measurements, Recurring | Municipal debt securities | Level 1 | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
AFS Securities, Fair Value Disclosure | 0 | 0 |
Fair Value, Measurements, Recurring | Municipal debt securities | Level 2 | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
AFS Securities, Fair Value Disclosure | 4,700,000 | 4,765,000 |
Fair Value, Measurements, Recurring | Municipal debt securities | Total | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
AFS Securities, Fair Value Disclosure | 4,700,000 | 4,765,000 |
Fair Value, Measurements, Recurring | Corporate debt securities | Level 1 | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
AFS Securities, Fair Value Disclosure | 0 | 0 |
Fair Value, Measurements, Recurring | Corporate debt securities | Level 2 | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
AFS Securities, Fair Value Disclosure | 81,903,000 | 67,055,000 |
Fair Value, Measurements, Recurring | Corporate debt securities | Total | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
AFS Securities, Fair Value Disclosure | $81,903,000 | $67,055,000 |
Cash_Cash_Equivalents_and_Shor2
Cash, Cash Equivalents and Short-term Investments Schedule of Available for Sale Securities (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Cash and cash equivalents [Abstract] | ' | ' |
Net Investment in Sales Type Leases, Future Minimum Payments-Gross | $2,273,000 | $2,597,000 |
Cash and Cash Equivalents, Amortized Cost | 16,961,000 | 39,652,000 |
Cash And Cash Equivalents, Gross Unrealized Gains | 0 | 0 |
Cash And Cash Equivalents, Gross Unrealized Losses | 0 | 0 |
Cash and Cash Equivalents, Fair Value Disclosure | 16,961,000 | 39,652,000 |
Short-term Investments [Abstract] | ' | ' |
AFS Securities, Amortized Cost Basis | 103,662,000 | 87,998,000 |
Available-for-sale Securities, Gross Unrealized Gain1 | 36,000 | 34,000 |
Available-for-sale Securities, Gross Unrealized Loss1 | -34,000 | -8,000 |
AFS Securities, Fair Value Disclosure | 103,664,000 | 88,024,000 |
Cash, Cash Equivalents, and Short-term Investments [Abstract] | ' | ' |
Cash, Cash Equiv. And S-T Investments, Amortized Cost | 120,623,000 | 127,650,000 |
Cash, Cash Equiv. And S-T Investments, Gross Unrealized Gains | 36,000 | 34,000 |
Cash, Cash Equiv. And S-T Investments, Gross Unrealized Losses | -34,000 | -8,000 |
Cash, Cash Equiv. And S-T Investments, Fair Value Disclosure | 120,625,000 | 127,676,000 |
Demand deposits and other cash | ' | ' |
Cash and cash equivalents [Abstract] | ' | ' |
Cash and Cash Equivalents, Amortized Cost | 8,256,000 | 15,451,000 |
Cash And Cash Equivalents, Gross Unrealized Gains | 0 | 0 |
Cash And Cash Equivalents, Gross Unrealized Losses | 0 | 0 |
Cash and Cash Equivalents, Fair Value Disclosure | 8,256,000 | 15,451,000 |
Money market funds | ' | ' |
Cash and cash equivalents [Abstract] | ' | ' |
Cash and Cash Equivalents, Amortized Cost | 6,669,000 | 22,991,000 |
Cash And Cash Equivalents, Gross Unrealized Gains | 0 | 0 |
Cash And Cash Equivalents, Gross Unrealized Losses | 0 | 0 |
Cash and Cash Equivalents, Fair Value Disclosure | 6,669,000 | 22,991,000 |
Commercial Paper in CE | ' | ' |
Cash and cash equivalents [Abstract] | ' | ' |
Cash and Cash Equivalents, Amortized Cost | 1,000,000 | 150,000 |
Cash And Cash Equivalents, Gross Unrealized Gains | 0 | 0 |
Cash And Cash Equivalents, Gross Unrealized Losses | 0 | 0 |
Cash and Cash Equivalents, Fair Value Disclosure | 1,000,000 | 150,000 |
U.S. government agency securities | ' | ' |
Cash and cash equivalents [Abstract] | ' | ' |
Cash and Cash Equivalents, Amortized Cost | 21,000 | ' |
Cash And Cash Equivalents, Gross Unrealized Gains | 0 | ' |
Cash And Cash Equivalents, Gross Unrealized Losses | 0 | ' |
Cash and Cash Equivalents, Fair Value Disclosure | 21,000 | ' |
Corporate Debt Securities | ' | ' |
Cash and cash equivalents [Abstract] | ' | ' |
Cash and Cash Equivalents, Amortized Cost | 1,015,000 | 1,060,000 |
Cash And Cash Equivalents, Gross Unrealized Gains | 0 | 0 |
Cash And Cash Equivalents, Gross Unrealized Losses | 0 | 0 |
Cash and Cash Equivalents, Fair Value Disclosure | 1,015,000 | 1,060,000 |
Prepaid Expenses and Other Current Assets | ' | ' |
Schedule of available for sale securities [Line Items] | ' | ' |
Restricted cash | 300,000 | 300,000 |
Commercial paper in STI | ' | ' |
Short-term Investments [Abstract] | ' | ' |
AFS Securities, Amortized Cost Basis | 1,869,000 | 750,000 |
Available-for-sale Securities, Gross Unrealized Gain1 | 0 | 0 |
Available-for-sale Securities, Gross Unrealized Loss1 | 0 | 0 |
AFS Securities, Fair Value Disclosure | 1,869,000 | 750,000 |
U.S. Treasury securities | ' | ' |
Short-term Investments [Abstract] | ' | ' |
AFS Securities, Amortized Cost Basis | 5,681,000 | 5,233,000 |
Available-for-sale Securities, Gross Unrealized Gain1 | 4,000 | 2,000 |
Available-for-sale Securities, Gross Unrealized Loss1 | 0 | 0 |
AFS Securities, Fair Value Disclosure | 5,685,000 | 5,235,000 |
Municipal debt securities | ' | ' |
Short-term Investments [Abstract] | ' | ' |
AFS Securities, Amortized Cost Basis | 4,694,000 | 4,758,000 |
Available-for-sale Securities, Gross Unrealized Gain1 | 6,000 | 7,000 |
Available-for-sale Securities, Gross Unrealized Loss1 | 0 | 0 |
AFS Securities, Fair Value Disclosure | 4,700,000 | 4,765,000 |
Corporate Debt Securities | ' | ' |
Short-term Investments [Abstract] | ' | ' |
AFS Securities, Amortized Cost Basis | 80,901,000 | 65,982,000 |
Available-for-sale Securities, Gross Unrealized Gain1 | 21,000 | 20,000 |
Available-for-sale Securities, Gross Unrealized Loss1 | -34,000 | -7,000 |
AFS Securities, Fair Value Disclosure | 80,888,000 | 65,995,000 |
U.S. government agency securities | ' | ' |
Short-term Investments [Abstract] | ' | ' |
AFS Securities, Amortized Cost Basis | 10,517,000 | 11,275,000 |
Available-for-sale Securities, Gross Unrealized Gain1 | 5,000 | 5,000 |
Available-for-sale Securities, Gross Unrealized Loss1 | 0 | -1,000 |
AFS Securities, Fair Value Disclosure | $10,522,000 | $11,279,000 |
Cash_Cash_Equivalents_and_Shor3
Cash, Cash Equivalents and Short-term Investments Contractual maturities of cash, cash equivalent and short-term investment (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cash and cash equivalents (1) | $16,961 | $39,652 |
Short-term investments | 103,664 | 88,024 |
Cash, cash equivalents and short-term investments | 120,625 | 127,676 |
Maturity up to one year [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cash and cash equivalents (1) | 16,961 | 39,652 |
Short-term investments | 92,576 | 71,464 |
Cash, cash equivalents and short-term investments | 109,537 | 111,116 |
maturity between 1 and 2 years [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cash and cash equivalents (1) | 0 | 0 |
Short-term investments | 11,088 | 16,560 |
Cash, cash equivalents and short-term investments | $11,088 | $16,560 |
Income_loss_per_share_Schedule
Income (loss) per share Schedule of the computation of basic and diluted net income (loss) per share (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Earnings Per Share [Abstract] | ' | ' | ' | ' | ' |
participating securities | 8,094 | ' | 8,094 | ' | 26,463 |
Numerator: | ' | ' | ' | ' | ' |
Net loss | ($7,008) | ($2,022) | ($13,397) | ($5,521) | ' |
Denominator: | ' | ' | ' | ' | ' |
Weighted Average Number of Shares Outstanding, Basic and Diluted | 25,246,000 | 24,555,000 | 25,147,000 | 24,419,000 | ' |
Net loss per share | ' | ' | ' | ' | ' |
Earnings Per Share, Basic and Diluted | ($0.28) | ($0.08) | ($0.53) | ($0.23) | ' |
Income_loss_per_share_Schedule1
Income (loss) per share Schedule of antidilutive securities excluded from computation of earnings per share (Details) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Options to purchase common stock, including ESPP | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 3,692 | 3,379 | 3,499 | 3,313 |
Common stock subject to repurchase | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 8 | 29 | 7 | 32 |
Warrants to purchase common stock | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 44 | 44 | 44 | 44 |
Restricted stock units | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 950 | 581 | 876 | 511 |
Restricted stock awards | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 12 | 0 | 12 |
Goodwill_and_intangible_assets2
Goodwill and intangible assets Schedule of Finite-Lived Intangible Assets (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' | ' | ' | ' |
Goodwill | $7,678,000 | ' | $7,678,000 | ' | $5,575,000 |
Goodwill, Acquired During Period | ' | ' | 2,100,000 | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Gross Carrying Amount | 5,600,000 | ' | 5,600,000 | ' | 4,370,000 |
Accumulated Amortization | 3,136,000 | ' | 3,136,000 | ' | 2,826,000 |
Finite-Lived Intangible Assets, Net | 2,464,000 | ' | 2,464,000 | ' | 1,544,000 |
Intangibles- period amortization expense [Abstract] | ' | ' | ' | ' | ' |
Amortization expense | 200,000 | 200,000 | 400,000 | 400,000 | ' |
Developed technology | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Gross Carrying Amount | 2,710,000 | ' | 2,710,000 | ' | 1,880,000 |
Accumulated Amortization | 1,473,000 | ' | 1,473,000 | ' | 1,264,000 |
Finite-Lived Intangible Assets, Net | 1,237,000 | ' | 1,237,000 | ' | 616,000 |
Customer relationships | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Gross Carrying Amount | 2,520,000 | ' | 2,520,000 | ' | 2,350,000 |
Accumulated Amortization | 1,584,000 | ' | 1,584,000 | ' | 1,449,000 |
Finite-Lived Intangible Assets, Net | 936,000 | ' | 936,000 | ' | 901,000 |
Noncompete Agreements | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Gross Carrying Amount | 260,000 | ' | 260,000 | ' | 70,000 |
Accumulated Amortization | 26,000 | ' | 26,000 | ' | 70,000 |
Finite-Lived Intangible Assets, Net | 234,000 | ' | 234,000 | ' | 0 |
Intangibles- period amortization expense [Abstract] | ' | ' | ' | ' | ' |
Fully amortized Intangible removed from table | ' | ' | 70,000 | ' | ' |
Trademarks and trade names | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Gross Carrying Amount | 110,000 | ' | 110,000 | ' | 70,000 |
Accumulated Amortization | 53,000 | ' | 53,000 | ' | 43,000 |
Finite-Lived Intangible Assets, Net | $57,000 | ' | $57,000 | ' | $27,000 |
Minimum | Developed technology | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets, Useful Life | ' | ' | ' | ' | ' |
Finite-Lived Intangible Asset, Useful Life | ' | ' | '4 years | ' | ' |
Minimum | Customer relationships | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets, Useful Life | ' | ' | ' | ' | ' |
Finite-Lived Intangible Asset, Useful Life | ' | ' | '7 years | ' | ' |
Minimum | Noncompete Agreements | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets, Useful Life | ' | ' | ' | ' | ' |
Finite-Lived Intangible Asset, Useful Life | ' | ' | '2 years | ' | ' |
Minimum | Trademarks and trade names | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets, Useful Life | ' | ' | ' | ' | ' |
Finite-Lived Intangible Asset, Useful Life | ' | ' | '4 years | ' | ' |
Maximum | Developed technology | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets, Useful Life | ' | ' | ' | ' | ' |
Finite-Lived Intangible Asset, Useful Life | ' | ' | '7 years | ' | ' |
Maximum | Customer relationships | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets, Useful Life | ' | ' | ' | ' | ' |
Finite-Lived Intangible Asset, Useful Life | ' | ' | '9 years | ' | ' |
Maximum | Noncompete Agreements | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets, Useful Life | ' | ' | ' | ' | ' |
Finite-Lived Intangible Asset, Useful Life | ' | ' | '4 years | ' | ' |
Maximum | Trademarks and trade names | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets, Useful Life | ' | ' | ' | ' | ' |
Finite-Lived Intangible Asset, Useful Life | ' | ' | '7 years | ' | ' |
Goodwill_and_intangible_assets3
Goodwill and intangible assets Future amortization schedule (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Goodwill and intangible assets [Abstract] | ' | ' |
Finite-Lived Intangibles, AmortExp Remainder 2014 | $405 | ' |
Finite-Lived Intangibles, AmortExp, 2015 | 626 | ' |
Finite-Lived Intangibles, AmortExp, 2016 | 495 | ' |
Finite-Lived Intangibles, AmortExp, 2017 | 394 | ' |
Finite-Lived Intangibles, AmortExp, 2018 | 275 | ' |
Finite-Lived Intangibles, AmortExp, 2019 | 229 | ' |
Finite-Lived Intangibles, AmortExp, after 5th Year | 40 | ' |
Finite-Lived Intangible Assets, Net | $2,464 | $1,544 |
Balance_Sheet_Components_Inven
Balance Sheet Components Inventories (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventory, Net [Abstract] | ' | ' |
Raw materials | $461 | $806 |
Finished goods | 3,954 | 4,859 |
Total inventories | $4,415 | $5,665 |
Balance_Sheet_Components_Prope
Balance Sheet Components Property and Equipment (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' |
Property, Plant and Equipment, Gross | $14,623,000 | ' | $14,623,000 | ' | $14,030,000 |
Less: Accumulated depreciation | -9,779,000 | ' | -9,779,000 | ' | -8,665,000 |
Property and equipment, net | 4,844,000 | ' | 4,844,000 | ' | 5,365,000 |
Depreciation, Depletion and Amortization [Abstract] | ' | ' | ' | ' | ' |
Depreciation | 600,000 | 400,000 | 1,100,000 | 800,000 | ' |
Computer equipment and software | ' | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' |
Property, Plant and Equipment, Gross | 7,814,000 | ' | 7,814,000 | ' | 7,345,000 |
Furniture, fixtures and equipment | ' | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' |
Property, Plant and Equipment, Gross | 953,000 | ' | 953,000 | ' | 924,000 |
Leasehold improvements | ' | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' |
Property, Plant and Equipment, Gross | 2,136,000 | ' | 2,136,000 | ' | 2,125,000 |
Manufacturing tools and equipment | ' | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' |
Property, Plant and Equipment, Gross | 3,127,000 | ' | 3,127,000 | ' | 3,081,000 |
Construction in process | ' | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' |
Property, Plant and Equipment, Gross | $593,000 | ' | $593,000 | ' | $555,000 |
Balance_Sheet_Components_Inves
Balance Sheet Components Investment in Sales Type Leases (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 |
Minimum | Maximum | |||
Capital Leased Assets [Line Items] | ' | ' | ' | ' |
Lessors, Capital Leases, Term of contract | ' | ' | '1 year 3 months | '4 years 0 months |
Net Investment in Sales Type Leases, Future Minimum Payments-Gross | $2,273,000 | $2,597,000 | ' | ' |
Net Investment in Sales Type Leases, Deferred Income | -1,108,000 | -1,167,000 | ' | ' |
Net Investment in Sales Type Leases | 1,200,000 | 1,400,000 | ' | ' |
Net Investment in Sales Type Leases, Current | -575,000 | -620,000 | ' | ' |
Net Investment in Sales Type Leases, Noncurrent | $590,000 | $810,000 | ' | ' |
Balance_Sheet_Components_Futur
Balance Sheet Components Future payments- sales type leases (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Leases - future payments sales type leases [Abstract] | ' | ' |
Sales-type Leases, Future Minimum Payments, Remainder of 2014 | $484 | ' |
Sales-type Leases, Future Minimum Payments-2015 | 844 | ' |
Sales-type Leases, Future Minimum Payments-2016 | 672 | ' |
Sales-type Leases, Future Minimum Payments-2017 | 273 | ' |
Net Investment in Sales Type Leases, Future Minimum Payments-Gross | $2,273 | $2,597 |
Balance_Sheet_Components_Accru
Balance Sheet Components Accrued Liabilities (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accrued Liabilities, Current [Abstract] | ' | ' |
Payroll and related expenses | $4,998 | $5,065 |
Accrued payables | 2,169 | 2,259 |
Deferred Rent Credit, Current | 399 | 490 |
Lease financing, current portion | 656 | 528 |
Product warranty | 582 | 840 |
Sales and use tax payable | 166 | 259 |
Other | 322 | 400 |
Total accrued payroll and other current liabilities | $9,292 | $9,841 |
Balance_Sheet_Components_Sched
Balance Sheet Components Schedule of Product Liability (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | ' | ' | ' | ' |
Product warranty accrual, at the beginning of the period | $722 | $207 | $840 | $297 |
Warranty expenses accrued | 189 | 100 | 487 | 174 |
Product Warranty Accrual, Preexisting, Increase (Decrease) | -26 | 178 | 25 | 227 |
Warranty settlements made | -303 | -283 | -770 | -496 |
Product warranty accrual, at the end of period | $582 | $202 | $582 | $202 |
Commitments_Schedule_of_Future
Commitments Schedule of Future Minimum Rental Payments for Operating Leases (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | |
Inventories | Inventories | |||||
Unrecorded Unconditional Purchase Obligation [Line Items] | ' | ' | ' | ' | ' | ' |
Non-cancelable purchase commitment with a third party manufacturer to purchase inventory | ' | ' | ' | ' | $3,200,000 | $3,100,000 |
Operating Leases, Rent Expense | 500,000 | 500,000 | 1,000,000 | 1,000,000 | ' | ' |
Operating Leases, Future Minimum Payments Due, by FY | ' | ' | ' | ' | ' | ' |
Remainder of 2014 | 865,000 | ' | 865,000 | ' | ' | ' |
2015 | 1,693,000 | ' | 1,693,000 | ' | ' | ' |
2016 | 539,000 | ' | 539,000 | ' | ' | ' |
2017 | 33,000 | ' | 33,000 | ' | ' | ' |
Total minimum lease payments | $3,130,000 | ' | $3,130,000 | ' | ' | ' |
Commitments_Litigation_alleged
Commitments Litigation: alleged shareholder class action (Details) (Uninsured Risk, Pending Litigation, Michael Brado v Vocera Communications, Inc., et al) | 6 Months Ended |
Jun. 30, 2014 | |
Uninsured Risk | Pending Litigation | Michael Brado v Vocera Communications, Inc., et al | ' |
Loss Contingencies [Line Items] | ' |
Loss Contingency, Lawsuit Filing Date | 'August 1, 2013 |
Loss Contingency, Name of Plaintiff | 'Michael Brado v. Vocera Communications Inc., et al |
Loss Contingency, Name of Defendant | 'against the Company and certain of its officers, its board of directors, a former director and the underwriters for the Company's initial public offering. |
Loss Contingency, Domicile of Litigation | 'the United States District Court for the Northern District of California |
Loss Contingency, Allegations | 'A second purported securities class action, entitled Duncan v. Vocera Communications Inc., et al., was filed on August 21, 2013, also in the Northern District of California, against the same parties. On September 27, 2013, the Court ordered the matters related. The suits purport to allege claims under Sections 11, 12(a)(2) and 15 of the Securities Act of 1933 and Section 10(b) and 20(a) of the Exchange Act of 1934 for allegedly misleading statements in the registration statement for the Company's initial public offering and in subsequent communications regarding its business and financial results. The suits are purportedly brought on behalf of purchasers of the Company's securities between March 28, 2012 and May 3, 2013 |
Loss Contingency, Damages Sought | ' seek compensatory damages, rescission, fees and costs, as well as equitable and injunctive or other relief |
Loss Contingency, Actions Taken by Defendant | 'The plaintiffs’ motion for consolidation of the actions and for appointment of lead plaintiff has been granted, and the Company anticipates that the plaintiffs will file an amended consolidated complaint. No responses to the current complaints are due at this time |
Loss Contingency, Inestimable Loss | 'Due to the inherent uncertainties of litigation, the Company cannot accurately predict the ultimate outcome of this matter. The Company is unable at this time to determine whether the outcome of the litigation would have a material impact on its results of operations, financial condition or cash flow. The Company has not established any reserve for any potential liability relating to this lawsuit, because this contingency is not considered probable and reasonably estimable. |
Stockbased_Compensation_and_Aw2
Stock-based Compensation and Awards Narrative (Details) (USD $) | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Proceeds from warrant exercises | $0 | $226,000 |
Stock Options | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Unamortized Compensation Cost, Stock Options | 9,400,000 | ' |
Uamortized Compensation Cost Not yet Recognized, Period Remaining, Options | '2 years 9 months | ' |
2012 Stock Option Plan | Stock options and restricted stock units | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Number of Shares Available for Grant | 708,161 | ' |
Cash Exercise | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Shares issued, Exercise of Stock Warrants | 0 | 34,142 |
Proceeds from warrant exercises | ' | $200,000 |
Stockbased_Compensation_and_Aw3
Stock-based Compensation and Awards Summary of stock option activity (Details) (Stock Options, USD $) | 6 Months Ended | 12 Months Ended |
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 |
Stock Options | ' | ' |
Number of Options (in shares): | ' | ' |
Beginning balance | 3,287,207 | ' |
Options granted | 567,197 | ' |
Options exercised | -204,385 | ' |
Options canceled | -33,484 | ' |
Ending balance | 3,616,535 | 3,287,207 |
Weighted Average Exercise Price (in dollars per share): | ' | ' |
Beginning balance | $9.62 | ' |
Options granted | $13.81 | ' |
Options exercised | $3.88 | ' |
Options canceled | $17.34 | ' |
Ending balance | $10.53 | $9.62 |
Wtd avg remaining term, Outstanding | '6 years 8 months 12 days | '6 years 9 months 22 days |
Aggregate intrinsic value, Outstanding | $17,361 | $24,880 |
Stockbased_Compensation_and_Aw4
Stock-based Compensation and Awards Summary of ESPP assumptiuons used (Details) (2012 Employee Stock Purchase Plan, ESPP, USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
ESPP Fair Value Assumptions | ' | ' | ' | ' |
Expected Term (in years) | '6 months | '0 years 6 months | '0 years 6 months | '0 years 6 months |
Volatility | 35.90% | 33.30% | ' | 33.30% |
Interest Rate | 0.05% | 0.13% | ' | 0.13% |
Dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
ESPP plan details [Abstract] | ' | ' | ' | ' |
ESPP Number of Shares Available for Grant | 356,945 | ' | 356,945 | ' |
ESPP Shares Purchased for Award | ' | ' | 86,646 | 115,784 |
Minimum | ' | ' | ' | ' |
ESPP Fair Value Assumptions | ' | ' | ' | ' |
Volatility | ' | ' | 35.90% | ' |
Interest Rate | ' | ' | 0.05% | ' |
Maximum | ' | ' | ' | ' |
ESPP Fair Value Assumptions | ' | ' | ' | ' |
Volatility | ' | ' | 36.00% | ' |
Interest Rate | ' | ' | 0.10% | ' |
Year to date | ' | ' | ' | ' |
ESPP plan details [Abstract] | ' | ' | ' | ' |
ESPP Per Share Weighted Average Price of Shares Purchased | 10.91 | 13.79 | 10.91 | 13.79 |
Stockbased_Compensation_and_Aw5
Stock-based Compensation and Awards Summary of assumptions used (Details) (Equity Option) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Expected Term (in years) | '5 years 4 months 28 days | '5 years 4 months 17 days | '5 years 4 months 28 days | ' |
Volatility | 44.00% | 46.70% | ' | ' |
Interest Rate | 1.71% | 1.11% | ' | ' |
Dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Maximum | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Expected Term (in years) | ' | ' | ' | '5 years 5 months 5 days |
Volatility | ' | ' | 48.20% | 48.10% |
Interest Rate | ' | ' | 1.71% | 1.11% |
Minimum | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Expected Term (in years) | ' | ' | ' | '5 years 4 months 17 days |
Volatility | ' | ' | 44.00% | 46.70% |
Interest Rate | ' | ' | 1.59% | 0.81% |
Stockbased_Compensation_and_Aw6
Stock-based Compensation and Awards Summary of restricted stock activity (Details) (USD $) | 6 Months Ended |
In Millions, except Share data, unless otherwise specified | Jun. 30, 2014 |
Restricted Stock Awards | ' |
Number of Shares: | ' |
Beginning balance | 12,076 |
Granted | 0 |
Vested | -12,076 |
Forfeited | 0 |
Ending balance | 0 |
Weighted Average Grant Date Fair Value per Share (in dollars per share): | ' |
Beginning balance | $12.42 |
Granted | $0 |
Vested | $12.42 |
Forfeited | $0 |
Ending balance | $0 |
Compensation not yet recognized | $0 |
Restricted Stock Units | ' |
Number of Shares: | ' |
Beginning balance | 755,271 |
Granted | 425,616 |
Vested | -200,383 |
Forfeited | -30,082 |
Ending balance | 950,422 |
Weighted Average Grant Date Fair Value per Share (in dollars per share): | ' |
Beginning balance | $19.24 |
Granted | $14.10 |
Vested | $19.59 |
Forfeited | $19.79 |
Ending balance | $16.84 |
Compensation not yet recognized | $12.80 |
Period of recognition of compensation cost not yet recognized | '2 years 1 month 6 days |
Stockbased_Compensation_and_Aw7
Stock-based Compensation and Awards Share based compensaton allocated to expense captions (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | $2,778 | $2,016 | $5,376 | $3,720 |
Cost of Sales | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | 252 | 214 | 538 | 435 |
Research and Development Expense | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | 239 | 228 | 459 | 437 |
Selling and Marketing Expense | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | 1,068 | 726 | 2,035 | 1,306 |
General and Administrative Expense | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | $1,219 | $848 | $2,344 | $1,542 |
Segments_Summary_of_the_operat
Segments Summary of the operating segments (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Segments | ||||
Segment Reporting [Abstract] | ' | ' | ' | ' |
Number of reportable segments | ' | ' | 2 | ' |
Revenue | ' | ' | ' | ' |
Product | $11,850 | $15,340 | $26,039 | $28,300 |
Service | 11,169 | 9,956 | 21,656 | 19,409 |
Total revenue | 23,019 | 25,296 | 47,695 | 47,709 |
Cost of revenue | ' | ' | ' | ' |
Product | 4,421 | 5,336 | 9,411 | 9,946 |
Service | 4,528 | 4,170 | 9,342 | 8,254 |
Cost of Goods and Services Sold | 8,949 | 9,506 | 18,753 | 18,200 |
Gross profit | ' | ' | ' | ' |
Product | 7,429 | 10,004 | 16,628 | 18,354 |
Service | 6,641 | 5,786 | 12,314 | 11,155 |
Total gross profit | 14,070 | 15,790 | 28,942 | 29,509 |
Calculation of pretax profit (loss) [Abstract] | ' | ' | ' | ' |
Operating expenses | 21,132 | 17,726 | 42,338 | 34,870 |
Interest (expense) income, net and other | 117 | -25 | 139 | -48 |
Loss before income taxes | ($6,945) | ($1,961) | ($13,257) | ($5,409) |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
Income Tax Expense (Benefit) | $63 | $61 | $140 | $112 |
Business_Acquisition_Business_
Business Acquisition Business acquisition - PPA (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jan. 13, 2014 | Jan. 13, 2014 | Jan. 13, 2014 | Jan. 13, 2014 | Jan. 13, 2014 | Jan. 13, 2014 |
Net assets of mVisum, Inc. | Net assets of mVisum, Inc. | Net assets of mVisum, Inc. | Net assets of mVisum, Inc. | Net assets of mVisum, Inc. | Net assets of mVisum, Inc. | |||
Developed technology | Noncompete Agreements | Customer relationships | Trademarks and trade names | |||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Business Acquisition, Effective Date of Acquisition | ' | ' | 13-Jan-14 | ' | ' | ' | ' | ' |
Payments to Acquire Businesses, Gross | ' | ' | $3,500,000 | ' | ' | ' | ' | ' |
Business Combination, Acquisition Related Costs | ' | ' | 200,000 | ' | ' | ' | ' | ' |
Business combination, future bonus compensation | ' | ' | 500,000 | ' | ' | ' | ' | ' |
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' |
Business Combination, Receivables acquired | ' | ' | ' | 187,000 | ' | ' | ' | ' |
Business Combination, Finite-Lived Intangibles acquired | ' | ' | ' | ' | 830,000 | 260,000 | 170,000 | 40,000 |
Goodwill | 7,678,000 | 5,575,000 | ' | 2,103,000 | ' | ' | ' | ' |
Total assets acquired including Goodwill | ' | ' | ' | 3,590,000 | ' | ' | ' | ' |
Business Combination, Deferred Revenue acquired | ' | ' | ' | -90,000 | ' | ' | ' | ' |
Business Combination, Net assets acquired | ' | ' | ' | $3,500,000 | ' | ' | ' | ' |
Business_Acquisition_Business_1
Business Acquisition Business acquisition - Useful lives overall (Details) (Net assets of mVisum, Inc.) | 0 Months Ended |
Jan. 13, 2014 | |
Business Acquisition [Line Items] | ' |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | '5 years 8 months 1 day |
Minimum | ' |
Business Acquisition [Line Items] | ' |
Finite-Lived Intangible Asset, Useful Life | '4 years |
Maximum | ' |
Business Acquisition [Line Items] | ' |
Finite-Lived Intangible Asset, Useful Life | '7 years |