Document_and_Entity_Informatio
Document and Entity Information Document (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Mar. 10, 2015 | Jun. 30, 2014 |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | VOCERA COMMUNICATIONS, INC. | ||
Entity Central Index Key | 1129260 | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Amendment Flag | FALSE | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Common Stock, Shares Outstanding | 25,687,696 | ||
Entity Public Float | $225 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets | ||
Cash and cash equivalents | $22,615 | $39,652 |
Short-term investments | 93,646 | 88,024 |
Accounts receivable, net | 18,008 | 23,543 |
Other receivables | 694 | 882 |
Inventories | 3,462 | 5,665 |
Prepaid expenses and other current assets | 2,017 | 1,892 |
Total current assets | 140,442 | 159,658 |
Property and equipment, net | 5,122 | 5,365 |
Intangible assets, net | 3,171 | 1,544 |
Goodwill | 9,988 | 5,575 |
Other long-term assets | 905 | 965 |
Total assets | 159,628 | 173,107 |
Current liabilities | ||
Accounts payable | 1,913 | 3,531 |
Accrued payroll and other current liabilities | 10,863 | 9,841 |
Deferred revenue, current | 28,474 | 26,133 |
Total current liabilities | 41,250 | 39,505 |
Deferred revenue, long-term | 6,974 | 6,398 |
Other long-term liabilities | 1,692 | 1,641 |
Total liabilities | 49,916 | 47,544 |
Commitments and contingencies (Note 7) | ||
Stockholders' equity | ||
Preferred stock, $0.0003 par value - 5,000,000 shares authorized as of December 31, 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 December 31, 2014 and December 31, 2013; 25,644,010 and 24,967,140 shares issued and outstanding as of December 31, 2014 and December 31, 2013, respectively | 8 | 7 |
Additional paid-in capital | 202,515 | 189,966 |
Accumulated other comprehensive income | -81 | 23 |
Accumulated deficit | -92,730 | -64,433 |
Total stockholders’ equity | 109,712 | 125,563 |
Total liabilities and stockholders’ equity | $159,628 | $173,107 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Paranthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Liabilities, Convertible Preferred Stock and Stockholders' Deficit | ||
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 25,644,010 | 24,967,140 |
Common stock, shares outstanding | 25,644,010 | 24,967,140 |
Preferred Stock | ||
Liabilities, Convertible Preferred Stock and Stockholders' Deficit | ||
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 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenue | |||
Product | $51,095 | $62,393 | $65,028 |
Service | 44,326 | 40,105 | 35,929 |
Total revenue | 95,421 | 102,498 | 100,957 |
Cost of Revenue [Abstract] | |||
Product | 18,766 | 21,714 | 21,551 |
Service | 18,470 | 16,595 | 15,070 |
Total cost of revenue | 37,236 | 38,309 | 36,621 |
Gross profit | 58,185 | 64,189 | 64,336 |
Operating expenses | |||
Research and development | 18,035 | 14,915 | 11,618 |
Sales and marketing | 49,611 | 44,928 | 33,432 |
General and administrative | 18,062 | 14,906 | 14,390 |
Restructuring Charges | 556 | 0 | 0 |
Total operating expenses | 86,264 | 74,749 | 59,440 |
(Loss) income from operations | -28,079 | -10,560 | 4,896 |
Interest income | 355 | 257 | 171 |
Interest expense | 0 | 0 | -84 |
Other expense, net | -249 | -53 | -1,463 |
(Loss) income before income taxes | -27,973 | -10,356 | 3,520 |
Provision for income taxes | -324 | -109 | -627 |
Net (loss) income | -28,297 | -10,465 | 2,893 |
Undistributed Earnings (Loss) Allocated to Participating Securities, Basic | 0 | 0 | 1,366 |
Net (loss) income attributable to common stockholders | ($28,297) | ($10,465) | $1,527 |
Net (loss) income per share attributable to common stockholders | |||
Basic and diluted | ($1.12) | ($0.43) | $0.08 |
Weighted average shares used to compute net income (loss) per share attributable to common stockholders | |||
Basic | 25,329 | 24,621 | 17,979 |
Diluted | 25,329 | 24,621 | 20,608 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net (loss) income | ($28,297) | ($10,465) | $2,893 |
Other comprehensive (loss) income, net: | |||
Change in unrealized (loss) gain on investments, net of tax | -104 | 18 | 5 |
Comprehensive (loss) income | ($28,401) | ($10,447) | $2,898 |
Statements_of_Stockholders_Equ
Statements of Stockholders' Equity (Deficit) (USD $) | Total | IPO [Member] | Follow-on public stock offering [Member] | Common stock | Common stock | Common stock | Additional paid-in capital | Additional paid-in capital | Additional paid-in capital | Accumulated other comprehensive gain | Accumulated deficit | Restricted stock units | Restricted stock units | Restricted stock units | Cashless Exercise [Member] | Cash Exercise [Member] | Cash Exercise [Member] | Cash Exercise [Member] |
In Thousands, except Share data, unless otherwise specified | USD ($) | USD ($) | USD ($) | USD ($) | IPO [Member] | Follow-on public stock offering [Member] | USD ($) | IPO [Member] | Follow-on public stock offering [Member] | USD ($) | USD ($) | USD ($) | Common stock | Additional paid-in capital | Common stock | USD ($) | Common stock | Additional paid-in capital |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | |||||||||||||
Balance at Dec. 31, 2011 | ($49,399) | $1 | $7,461 | $0 | ($56,861) | |||||||||||||
Balance (shares) at Dec. 31, 2011 | 3,780,490 | |||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Conversion of preferred stock into common stock (shares) | 12,937,750 | |||||||||||||||||
Conversion of preferred stock to common stock | 53,356 | 4 | 53,352 | |||||||||||||||
Shares sold at public offering | 5,000,000 | 1,337,500 | ||||||||||||||||
Issuance of common stock in a public offering | 70,535 | 35,975 | 2 | 0 | 70,533 | 35,975 | ||||||||||||
Reclassification of preferred stock warrant liability into additional paid-in capital upon initial public offering | 3,141 | 3,141 | ||||||||||||||||
Exercise of stock options (shares) | 1,073,732 | |||||||||||||||||
Exercise of stock options | 1,684 | 1,684 | ||||||||||||||||
Vesting of early exercised stock options | 307 | 307 | ||||||||||||||||
Exercise of common stock warrants | 78,487 | |||||||||||||||||
Proceeds from Warrant Exercises | 0 | |||||||||||||||||
Issuance of restricted stock awards | 24,152 | |||||||||||||||||
Non-employee stock-based compensation expense | 29 | 29 | ||||||||||||||||
Employee stock-based compensation expense | 4,203 | 4,203 | ||||||||||||||||
Income tax benefits from employee stock plans | 406 | 406 | ||||||||||||||||
Repurchase of early exercised options (shares) | -2,755 | |||||||||||||||||
Repurchase of early exercised options | -10 | -10 | ||||||||||||||||
Net loss | 2,893 | 2,893 | ||||||||||||||||
Other comprehensive income | 5 | 5 | ||||||||||||||||
Balance at Dec. 31, 2012 | 123,125 | 7 | 177,081 | 5 | -53,968 | |||||||||||||
Balance (shares) at Dec. 31, 2012 | 24,229,356 | |||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Exercise of stock options (shares) | 420,492 | |||||||||||||||||
Exercise of stock options | 1,657 | 1,657 | ||||||||||||||||
Vested, Number of Shares | 71,824 | |||||||||||||||||
RSUs released and tax settlement | -703 | -703 | ||||||||||||||||
ESPP, Shares Purchased for Award | 215,039 | |||||||||||||||||
Stock Issued During Period, Value, Employee Stock Purchase Plan | 2,993 | 2,993 | ||||||||||||||||
Vesting of early exercised stock options | 123 | 123 | ||||||||||||||||
Exercise of common stock warrants | 34,142 | |||||||||||||||||
Proceeds from Warrant Exercises | 226 | 226 | 226 | |||||||||||||||
Employee stock-based compensation expense | 8,667 | 8,667 | ||||||||||||||||
Income tax benefits from employee stock plans | -64 | -64 | ||||||||||||||||
Repurchase of early exercised options (shares) | -3,713 | |||||||||||||||||
Repurchase of early exercised options | -14 | -14 | ||||||||||||||||
Net loss | -10,465 | -10,465 | ||||||||||||||||
Other comprehensive income | 18 | 18 | ||||||||||||||||
Balance at Dec. 31, 2013 | 125,563 | 7 | 189,966 | 23 | -64,433 | |||||||||||||
Balance (shares) at Dec. 31, 2013 | 24,967,140 | |||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Issuance of common stock in a public offering | 1 | |||||||||||||||||
Exercise of stock options (shares) | 293,615 | |||||||||||||||||
Exercise of stock options | 1,097 | 1,096 | ||||||||||||||||
Vested, Number of Shares | -327,562 | |||||||||||||||||
RSUs released and tax settlement | -1,270 | -1,270 | ||||||||||||||||
ESPP, Shares Purchased for Award | 160,936 | 160,936 | ||||||||||||||||
Stock Issued During Period, Value, Employee Stock Purchase Plan | 1,588 | 1,588 | ||||||||||||||||
Vesting of early exercised stock options | 54 | 54 | ||||||||||||||||
Proceeds from Warrant Exercises | 0 | |||||||||||||||||
Issuance of restricted stock awards | 225,149 | |||||||||||||||||
Employee stock-based compensation expense | 11,084 | 11,084 | ||||||||||||||||
Repurchase of early exercised options (shares) | -2,830 | |||||||||||||||||
Repurchase of early exercised options | -3 | -3 | ||||||||||||||||
Net loss | -28,297 | -28,297 | ||||||||||||||||
Other comprehensive income | -104 | -104 | ||||||||||||||||
Balance at Dec. 31, 2014 | $109,712 | $8 | $202,515 | ($81) | ($92,730) | |||||||||||||
Balance (shares) at Dec. 31, 2014 | 25,644,010 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Cash flows from operating activities | |||
Net (loss) income | ($28,297,000) | ($10,465,000) | $2,893,000 |
Depreciation, Depletion and Amortization | 3,014,000 | 2,542,000 | 2,615,000 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Non-cash interest income | -7,000 | -71,000 | -18,000 |
Loss on disposal of property and equipment | 77,000 | 0 | 27,000 |
Bad debt expense (recovery) | 61,000 | 16,000 | 0 |
Inventory write-down | 310,000 | 136,000 | 224,000 |
Change in lease-related performance liabilities | -595,000 | -207,000 | -3,000 |
Share-based Compensation | 11,084,000 | 8,667,000 | 4,232,000 |
Excess tax benefits from employee stock plans | 0 | 0 | -325,000 |
Change in fair value of warrant liability | 0 | 0 | 1,631,000 |
Changes in assets and liabilities | |||
Accounts receivable | 5,660,000 | -1,861,000 | -5,916,000 |
Increase (Decrease) in Other Receivables | 188,000 | -434,000 | 417,000 |
Inventories | 1,894,000 | -3,029,000 | 367,000 |
Prepaid expenses and other assets | -330,000 | 446,000 | -1,348,000 |
Accounts payable | -1,678,000 | 690,000 | -1,145,000 |
Increase (Decrease) in Other Operating Liabilities | 1,100,000 | -1,887,000 | 2,803,000 |
Deferred revenue | 2,827,000 | 4,198,000 | 5,840,000 |
Net cash (used in) provided by operating activities | -4,692,000 | -1,259,000 | 12,294,000 |
Cash flows from investing activities | |||
Payment for purchase of property and equipment | -2,022,000 | -3,770,000 | -2,565,000 |
Payments to Acquire Businesses, Net of Cash Acquired | -6,950,000 | 0 | 0 |
Purchase of short-term investments | -112,299,000 | -118,661,000 | -104,869,000 |
Maturities of short-term investments | 102,656,000 | 65,714,000 | 69,902,000 |
Sale of short-term investments | 3,923,000 | 0 | 0 |
Changes in restricted cash | 265,000 | 0 | 0 |
Net cash used in investing activities | -14,427,000 | -56,717,000 | -37,532,000 |
Cash flows from financing activities | |||
Cash from lease-related performance obligations | 635,000 | 847,000 | 1,114,000 |
Principal payment of borrowings | 0 | 0 | -8,333,000 |
Proceeds from initial public offering, net of offering costs | 0 | 0 | 72,070,000 |
Proceeds from secondary public offering, net of offering costs | 0 | 0 | 35,975,000 |
Payment for repurchase of common stock | -12,000 | -14,000 | -10,000 |
Excess tax benefits from employee stock plans | 0 | 0 | 325,000 |
Proceeds from Issuance of Shares under Incentive and Share-based Compensation Plans, Excluding Stock Options | 1,588,000 | 2,993,000 | 0 |
Proceeds from exercise of stock options | 1,096,000 | 1,758,000 | 1,720,000 |
RSUs released and tax settlement | -1,225,000 | -703,000 | 0 |
Proceeds from Warrant Exercises | 0 | 226,000 | 0 |
Net cash provided by financing activities | 2,082,000 | 5,107,000 | 102,861,000 |
Net (decrease) increase in cash and cash equivalents | -17,037,000 | -52,869,000 | 77,623,000 |
Cash and cash equivalents at beginning of period | 39,652,000 | 92,521,000 | 14,898,000 |
Cash and cash equivalents at end of period | 22,615,000 | 39,652,000 | 92,521,000 |
Supplemental cash flow information | |||
Cash paid for interest | 0 | 0 | 91,000 |
Cash paid for income taxes | 175,000 | 54,000 | 556,000 |
Supplemental disclosure of non-cash investing and financing activities | |||
Property and equipment in accounts payable and accrued liabilities | $16,000 | $104,000 | $321,000 |
The_Company_and_Summary_of_Sig
The Company and Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
The Company and Summary of Significant Accounting Policies | The Company and Summary of Significant Accounting Policies | ||||||||||||
Background | |||||||||||||
Vocera Communications, Inc. and its subsidiaries (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 U.S. and internationally. The significant majority of the Company's business is generated from sales of its solutions in the healthcare market to help our customers improve patient safety and experience, and increase operational efficiency. As of December 31, 2014, the Company's solutions have been installed in more than 1,300 facilities 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 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 Hand-Off, Inc., Vocera Canada, Ltd. and ExperiaHealth, Inc. in 2010 and Vocera Communications India Private Ltd. in 2013. In August 2013, we merged Vocera Hand-Off Communications, Inc. and ExperiaHealth, Inc. into our parent company, Vocera Communications, Inc. | |||||||||||||
Since its inception, the Company has incurred significant losses and, as of December 31, 2014, had an accumulated deficit of $92.7 million. The Company has funded its operations primarily with customer payments for its products and services, proceeds from the issuance of common stock in connection with its initial public offering ("IPO") and follow-on offering and, before the IPO, from the issuances of convertible preferred stock and from borrowings under its term loan facility and the utilization of its line of credit. As of December 31, 2014, the Company had cash, cash equivalents and short-term investments of $116.3 million. | |||||||||||||
The Company believes that its existing sources of liquidity will satisfy its working capital and capital requirements for at least the next twelve months. | |||||||||||||
Basis of presentation | |||||||||||||
The consolidated financial statements include the accounts of Vocera Communications, Inc. and its wholly owned subsidiaries. All inter-company transactions and balances have been eliminated in consolidation. The accompanying notes are prepared in accordance with accounting principles generally accepted in the United States (GAAP). | |||||||||||||
Use of estimates | |||||||||||||
The preparation of financial statements in conformity with 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, warranty reserves, inventory 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. | |||||||||||||
Cash, cash equivalents and short-term investments | |||||||||||||
The Company’s cash equivalents and short-term investments consist of money market funds, commercial paper, U.S. government agency notes, U.S. Treasury notes, municipal debt and corporate debt. These investments are classified as available-for-sale securities and are carried at fair value with the unrealized gains and losses reported as a component of stockholders’ equity. Management determines the appropriate classification of its investments at the time of purchase and re-evaluates the available-for-sale designations as of each balance sheet date. Investments with an original purchase maturity of less than three months are classified as cash equivalents, all those with longer maturities are classified as short-term investments, which are available-for-sale. | |||||||||||||
Restricted cash | |||||||||||||
Restricted cash was $0.1 million and $0.3 million at December 31, 2014 and 2013, respectively, the majority of which is security for a corporate travel card facility and credit card processing services. All restricted cash is classified as current, under prepaids and other current assets on the consolidated balance sheet, based on the underlying terms of the arrangements. | |||||||||||||
Allowance for doubtful accounts | |||||||||||||
The allowance for doubtful accounts reflects the Company’s best estimate of probable losses inherent in the Company’s receivables portfolio determined on the basis of historical experience, specific allowances for known troubled accounts and other currently available evidence. The Company has not experienced significant credit losses from its accounts receivable. The Company performs a regular review of its customers’ payment histories and associated credit risks as it does not require collateral from its customers. | |||||||||||||
The following table presents the changes in the allowance for doubtful accounts: | |||||||||||||
Years ended December 31, | |||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||
Allowance—beginning of period | $ | (6 | ) | $ | — | $ | — | ||||||
Provisions for bad debts | (53 | ) | (29 | ) | — | ||||||||
Recoveries from bad debts | 4 | 13 | — | ||||||||||
Write-offs and other | 2 | 10 | — | ||||||||||
Allowance—end of period | $ | (53 | ) | $ | (6 | ) | $ | — | |||||
Inventories | |||||||||||||
Inventories are valued at the lower of standard cost (which approximates actual cost on a first-in, first-out basis) or market (net realizable value or replacement cost). The Company assesses the valuation of inventory and periodically writes down the value for estimated excess and obsolete inventory based upon assumptions about future demand and market conditions. | |||||||||||||
Concentration of credit risk and other risks and uncertainties | |||||||||||||
Financial instruments that subject the Company to concentration of credit risk consist primarily of cash, cash equivalents and short-term investments. The Company’s cash and cash equivalents are primarily deposited with high quality financial institutions and in money market funds. Deposits at these institutions and funds may, at times, exceed federally insured limits. Management believes that these financial institutions and funds are financially sound and, accordingly, that minimal credit risk exists. The Company has not experienced any losses on its deposits of cash and cash equivalents. Marketable securities are stated at fair value, and accounted for as available-for-sale within short-term investments. The counterparties to the agreements relating to the Company’s investment securities consist of major corporations, financial institutions and government agencies of high credit standing. | |||||||||||||
The primary hardware component of the Company’s products is currently manufactured by a third-party contractor in Mexico. A significant disruption in the operations of this contractor may impact the production of the Company’s products for a substantial period of time, which could harm the Company’s business, financial condition and results of operations. | |||||||||||||
Concentration of credit risk with respect to trade accounts receivable is considered to be limited due to the diversity of the Company’s customer base and geographic sales areas. At December 31, 2014 and 2013, no customer accounted for 10% or more of accounts receivable. For the years ended December 31, 2014, 2013 and 2012, no customer represented 10% or more of revenue. | |||||||||||||
Property and equipment | |||||||||||||
Property and equipment are stated at cost and depreciated on a straight-line basis over the estimated useful economic lives of the assets. Assets generally have useful economic lives of three years except for leasehold improvements, which are amortized using the straight-line method over the shorter of the remaining lease term or the estimated useful life of the related assets. Purchased or developed software also generally has a three year useful economic life, except for major ERP implementations, for which the Company assumes a five year useful economic life. Upon retirement or sale, the cost and related accumulated depreciation and amortization are removed from the consolidated balance sheet and the resulting gain or loss is reflected in operations. Maintenance and repairs which are not considered improvements and do not extend the useful life of the assets are charged to operations as incurred. | |||||||||||||
The Company periodically reviews property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset is impaired or the estimated useful lives are no longer appropriate. Fair value is estimated based on discounted future cash flows. If indicators of impairment exist and the undiscounted projected cash flows associated with such assets are less than the carrying amount of the asset, an impairment loss is recorded to write the asset down to its estimated fair values. To date, the Company has not recorded any impairment charges. | |||||||||||||
Software development costs. | |||||||||||||
For internal-use software, the Company capitalizes certain internal and external costs incurred in its acquisition and creation. Capitalized internal-use software is included in property and equipment when development is complete and is amortized on a straight-line basis over the estimated useful life of the related asset, generally three years, except that five years is assumed for major ERP implementations. Based on the authoritative guidance, costs incurred either before or after the period satisfying the capitalization criteria, together with costs incurred for training and maintenance, are expensed as incurred. For the years ended December 31, 2014, 2013 and 2012, the Company capitalized costs of $0.2 million, $2.1 million and $1.1 million, respectively. | |||||||||||||
Goodwill and intangible assets | |||||||||||||
The Company allocates the purchase price of any acquisitions to tangible assets and liabilities and identifiable intangible assets acquired. Any residual purchase price is recorded as goodwill. | |||||||||||||
Goodwill | |||||||||||||
Goodwill is tested for impairment at the reporting unit level at least annually as of September 30, or more often if events or changes in circumstances indicate the carrying value may not be recoverable. As of December 31, 2014, no changes in circumstances indicate that goodwill carrying values may not be recoverable. The Company has identified two operating segments (Product and Service) which management also considers to be reporting units. | |||||||||||||
Intangible assets | |||||||||||||
Intangible assets are amortized over their estimated useful lives. Upon completion of development, acquired in-process research and development assets are generally considered amortizable, finite-lived assets and are amortized over their estimated useful lives. Finite-lived intangible assets consist of customer relationships, developed technology, trademarks and non-compete agreements. The Company evaluates intangible assets for impairment by assessing the recoverability of these assets whenever adverse events or changes in circumstances or business climate indicate that expected undiscounted future cash flows related to such intangible assets may not be sufficient to support the net book value of such assets. An impairment is recognized in the period of identification to the extent the carrying amount of an asset exceeds the fair value of such asset. No impairment of intangible assets was recorded in 2014, 2013 or 2012. | |||||||||||||
Convertible preferred stock | |||||||||||||
Prior to the Company’s IPO, the Company had issued and outstanding six series of convertible preferred stock. In connection with the Company’s IPO, in April 2012, each share of then-outstanding preferred stock automatically converted into common stock. In the statement of shareholders' equity for the year ended December 31, 2012, this was recorded as non-cash conversion of $53.4 million from preferred stock to common stock. | |||||||||||||
Revenue recognition | |||||||||||||
The Company derives revenue from the sales of communication badges, smartphones, perpetual software licenses for software that is essential to the functionality of the communication badges, software maintenance, extended product warranty and professional services. The Company also derives revenue from the sale of licenses for software that is not essential to the functionality of the communication badges. Sales tax is excluded from reported total revenue. | |||||||||||||
Revenue is recognized when all of the below criteria are met: | |||||||||||||
• | there is persuasive evidence that an arrangement exists, in the form of a written contract, amendments to that contract, or purchase orders from a third party; | ||||||||||||
• | delivery has occurred or services have been rendered; | ||||||||||||
• | the price is fixed or determinable after evaluating the risk of concession; and | ||||||||||||
• | collectability is reasonably assured based on customer creditworthiness and past history of collection. | ||||||||||||
In arrangements with multiple deliverables, assuming all other revenue criteria are met, the Company recognizes revenue for individual delivered items if they have value to the customer on a standalone basis. The Company allocates arrangement consideration at the inception of the arrangement to all deliverables using the relative selling price method. This method requires us to determine the selling price at which each deliverable could be sold if it were sold regularly on a standalone basis. When available, we use vendor-specific objective evidence ("VSOE") of the selling price. VSOE represents the price charged for a deliverable when it is sold separately, or for a deliverable not yet being sold separately, the price established by management with the relevant authority. The Company has established VSOE of the selling price for our post-installation technical support services and professional services. When VSOE of selling price is not available, third-party evidence ("TPE") of selling price for similar products and services is acceptable; however, our offerings and market strategy differ from those of our competitors, such that the Company cannot obtain sufficient comparable information about third parties' prices. If neither VSOE nor TPE are available, the Company uses its best estimates of selling prices ("BESP"). The Company determines BESP considering factors such as market conditions, sales channels, internal costs and product margin objectives and pricing practices. The Company regularly reviews and update our VSOE and BESP information. | |||||||||||||
The relative selling price method allocates total arrangement consideration proportionally to each deliverable on the basis of its estimated selling price. In addition, the amount recognized for any delivered items cannot exceed that which is contingent upon delivery of any remaining items in the arrangement. | |||||||||||||
A typical sales arrangement involves multiple elements, such as sales of communication badges, perpetual software licenses, professional services and maintenance services which entitle customers to unspecified upgrades, bug fixes, patch releases and telephone support. Revenue from the sale of communication badges and perpetual software licenses is recognized upon shipment or delivery at the customers’ premises as the contractual provisions governing sales of these products do not include any provisions regarding acceptance, performance or general right of return or cancellation or termination provisions adversely affecting revenue recognition. Revenue from the sale of maintenance services on software licenses is recognized over the period during which the services are provided, which is generally one year. Revenue from professional services is recognized either on a fixed fee basis based on milestones or on a time and materials basis as the services are provided, both of which generally take place over a period of two to twelve weeks. | |||||||||||||
For non-essential software arrangements with multiple-deliverables, including license, professional services and maintenance, the Company recognizes license revenue using the residual method of accounting pursuant to relevant software revenue recognition guidance. Under the residual method, revenue is recognized when VSOE for fair value exists for all of the undelivered elements in the arrangement, but does not exist for one or more of the delivered elements in the arrangement. If evidence of fair value cannot be established for the undelivered elements, all of the revenue is deferred until evidence of fair value can be established, or until the items for which evidence of fair value cannot be established are delivered. For maintenance and certain professional services, the Company has established VSOE. The Company's revenue arrangements do not include a general right of return relative to the delivered products. | |||||||||||||
Revenue from sales-type leases | |||||||||||||
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 certain executory costs, including maintenance and extended warranty, ratable over the term of the underlying arrangements. The Company recognizes revenue related to battery refresh 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 year ended December 31, 2014, the Company transferred $1.4 million of lease receivables, recording an immaterial net loss and $0.6 million of new financing liabilities for future performance of executory service obligations. For the year ended December 31, 2013, the Company transferred $2.2 million of lease receivables, recording an immaterial net gain and $0.8 million of new financing liabilities for future performance of executory service obligations. | |||||||||||||
For lease receivables retained as of December 31, 2014 and 2013, the Company recorded $0.9 million and $1.4 million, respectively, of net investment in sales-type leases, equivalent to the minimum lease payments for the delivered product. | |||||||||||||
Commissions expense | |||||||||||||
Sales commissions are recorded as sales and marketing expense and accrued as a current liability as orders are recorded; thus no contract acquisition costs are capitalized. | |||||||||||||
Shipping and handling costs | |||||||||||||
Shipping and handling costs charged to customers are included in revenue and the associated expense is recorded in cost of products sold in the statements of operations for all periods presented. | |||||||||||||
Research and development expenditures | |||||||||||||
Research and development costs are charged to operations as incurred. Software development costs incurred prior to the establishment of technological feasibility are included in research and development and are expensed as incurred. After technological feasibility is established, material software development costs up to general availability of the software will be capitalized and amortized on a straight-line basis over the estimated product life, or based on the ratio of current revenues to total projected product revenues, whichever is greater. To date, the time between the establishment of technological feasibility and general availability has been very short and therefore no significant costs have been incurred. Accordingly, the Company has not capitalized any software development costs. | |||||||||||||
Advertising costs | |||||||||||||
Advertising costs are included in sales and marketing expense and are expensed as incurred. Advertising costs for the years ended December 31, 2014, 2013 and 2012 were immaterial. | |||||||||||||
Product warranties | |||||||||||||
The Company offers warranties on certain products and records a liability for the estimated future costs associated with warranty claims, which is based upon historical experience and the Company’s estimate of the level of future costs. The Company provides for the estimated costs of hardware warranties at the time the related revenue is recognized. Costs are estimated based on historical and projected product failure rates, historical and projected repair costs, and knowledge of specific product failures (if any). The specific hardware warranty includes parts and labor over a period generally ranging from one to three years. The Company provides no warranty for software. The Company regularly re-evaluates its estimates to assess the adequacy of the recorded warranty liabilities and adjust the amounts as necessary. Warranty costs are reflected in the consolidated statement of operations as cost of sales. | |||||||||||||
Stock-based compensation | |||||||||||||
For options granted to employees, stock-based compensation is measured at grant date based on the fair value of the award and is expensed on a straight-line basis over the requisite service period. The Company determines the grant date fair value of the options using the Black-Scholes option-pricing model. Restricted stock awards and restricted stock units, first awarded in 2012, result in compensation expense, and are recognized on a straight-line basis over the requisite service period, based on the award date closing stock price. Equity instruments issued to non-employees are recorded at their fair value on the measurement date and are subject to periodic adjustment as the underlying equity instruments vest. The fair value of options granted to non-employees is amortized over the vesting period, on a straight-line basis. | |||||||||||||
For stock options issued to employees and non-employees with specific performance criteria, the Company makes a determination at each balance sheet date whether the performance criteria are probable of being achieved. Compensation expense is recognized until such time as the performance criteria are met or when it is probable that the criteria will not be met. | |||||||||||||
The Company will only recognize a tax benefit from stock-based awards in additional paid-in capital if an incremental tax benefit is realized after all other tax attributes currently available to the Company have been utilized. In addition, the Company has elected to account for the indirect effects of stock-based awards on other tax attributes, such as the research tax credit, through its statement of operations. | |||||||||||||
Income taxes | |||||||||||||
The Company uses the asset and liability method of accounting for income taxes. Under this method, the Company records deferred income taxes based on temporary differences between the financial reporting and tax bases of assets and liabilities and use enacted tax rates and laws that the Company expects will be in effect when they recover those assets or settle those liabilities, as the case may be, to measure those taxes. In cases where the expiration date of tax carryforwards or the projected operating results indicate that realization is not likely, the Company provides for a valuation allowance. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be realized. | |||||||||||||
The Company has deferred tax assets, resulting from net operating losses, research and development credits and temporary differences that may reduce taxable income in future periods. A valuation allowance is required when it is more likely than not that all or a portion of a deferred tax asset will not be realized. In assessing the need for a valuation allowance, the Company estimates future taxable income, considering the feasibility of ongoing tax-planning strategies and the realizability of tax loss carryforwards. Valuation allowances related to deferred tax assets can be impacted by changes in tax laws, changes in statutory tax rates and future taxable income levels. If the Company were to determine that it would be able to realize its deferred tax assets in the future in excess of the net carrying amounts, it would decrease the recorded valuation allowance through an increase to income in the period in which that determination is made. Due to the history of losses the Company has generated in the past, the Company believes that it is not more likely than not that all of the deferred tax assets in the U.S. and Canada can be realized as of December 31, 2014 and 2013, respectively. Accordingly, the Company has recorded a full valuation allowance on its deferred tax assets for these years. | |||||||||||||
At December 31, 2014, the Company had a valuation allowance against net deferred tax assets of $30.1 million. | |||||||||||||
There is inherent uncertainty in evaluating the sustainability of the income tax positions the Company takes on its tax returns. The Company assesses its income tax positions and records tax benefits for all years subject to examination based upon management’s evaluation of the facts, circumstances and information available at the reporting date. For those tax positions where it is more likely than not that a tax benefit will be sustained, the Company has recorded the highest amount of tax benefit with a greater than 50% likelihood of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where it is not more likely than not that a tax benefit will be realizable, no tax benefit has been recognized in the financial statements. | |||||||||||||
The Company includes interest and penalties with income taxes in the accompanying statement of operations. All of the Company’s net operating losses and research credit carryforwards prior to 2014 are subject to tax authority adjustment and all years after 2010 are still subject to tax authority examinations. The Company is currently not subject to any income tax audit examinations by tax authorities in any jurisdictions including U.S. federal, state and local or foreign countries. | |||||||||||||
Foreign currency translation | |||||||||||||
The functional currency of the Company’s foreign subsidiaries is the U.S. dollar. Accordingly, monetary assets and liabilities in non-functional currency of these subsidiaries are remeasured using exchange rates in effect at the end of the period. Revenues and costs in local currency are remeasured using average exchange rates for the period, except for costs related to those consolidated balance sheet items that are remeasured using historical exchange rates. The resulting remeasurement gains and losses are included in the Company’s consolidated statements of operations. Translation gains and losses have not been significant to date. | |||||||||||||
Segments | |||||||||||||
Operating segments are components of an enterprise for which separate financial information is available and is evaluated regularly by the Company’s chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company’s chief operating decision maker is the Chief Executive Officer. The Company has two operating segments which are both reportable business segments: (i) Product; and (ii) Service. See Note 9 for further analysis of the Company's determined operating segments. | |||||||||||||
Comprehensive income (loss) | |||||||||||||
For the years ended December 31, 2014, 2013 and 2012, the Company had nominal unrealized gains on available-for-sale securities. There were no other components within other comprehensive income for the years ended December 31, 2014, 2013 or 2012. | |||||||||||||
Related party transactions | |||||||||||||
During the years ended December 31, 2014, 2013 and 2012, the Company billed a related party, the University of Chicago Medical Center (UCMC), $0.3 million, $0.5 million and $0.5 million, respectively, for consulting services and technology solutions. One of the Company's board members is the President of UCMC. These transactions were recorded at arms-length prices. During the year ended December 31, 2013, the Company billed a related party, the Hewlett-Packard Company, approximately $9,200 for software and support, at arms’ length prices. Through July of 2013, John N. McMullen, one of the Company’s directors, served as Treasurer & Senior Vice President at Hewlett-Packard. There were no material related party transactions for Hewlett-Packard in the year ended December 31, 2012. | |||||||||||||
Recent accounting pronouncements | |||||||||||||
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; early application is not 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 | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||
Fair value of financial instruments | Fair value of financial instruments | |||||||||||||||||||
The carrying values of the Company’s cash and cash equivalents and short-term investments approximate their fair value due to their short-term nature. 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 years ended December 31, 2014, 2013 and 2012 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 table below summarizes the Company’s assets that are measured at fair value on a recurring basis, by level, within the fair value hierarchy as of December 31, 2014 and 2013, respectively. There were no liabilities measured at fair value on a recurring basis for these dates. | ||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||||||
(in thousands) | Level 1 | Level 2 | Total | Level 1 | Level 2 | Total | ||||||||||||||
Assets | ||||||||||||||||||||
Money market funds | $ | 7,795 | $ | — | $ | 7,795 | $ | 22,991 | $ | — | $ | 22,991 | ||||||||
Commercial paper | — | 3,225 | 3,225 | — | 900 | 900 | ||||||||||||||
U.S. government agency securities | — | 5,955 | 5,955 | — | 11,279 | 11,279 | ||||||||||||||
U.S. Treasury securities | — | 4,043 | 4,043 | — | 5,235 | 5,235 | ||||||||||||||
Municipal debt securities | — | 3,924 | 3,924 | — | 4,765 | 4,765 | ||||||||||||||
Corporate debt securities | — | 82,517 | 82,517 | — | 67,055 | 67,055 | ||||||||||||||
Total assets measured at fair value | $ | 7,795 | $ | 99,664 | $ | 107,459 | $ | 22,991 | $ | 89,234 | $ | 112,225 | ||||||||
The financial accounts that are not subject to recurring fair value measurement include trade and other receivables, prepaid expenses and other current assets, total current liabilities and deferred revenues, both current and long-term. Due to their short maturities, the carrying amounts of these accounts approximate their fair values. |
Cash_Cash_Equivalents_and_Shor
Cash, Cash Equivalents and Short-term Investments | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Cash and Cash Equivalents [Abstract] | |||||||||||||||||
Cash, Cash Equivalents, and Short-term Investments | Cash, Cash Equivalents and Short-Term Investments | ||||||||||||||||
The following tables display gross unrealized gains and gross unrealized losses for cash, cash equivalents and available-for-sale investments for the periods presented: | |||||||||||||||||
As of December 31, 2014 | |||||||||||||||||
(in thousands) | Amortized | Unrealized | Unrealized | Fair | |||||||||||||
Cost | Gains | Losses | value | ||||||||||||||
Cash and cash equivalents: | |||||||||||||||||
Demand deposits and other cash | $ | 8,802 | $ | — | $ | — | $ | 8,802 | |||||||||
Money market funds | 7,795 | — | — | 7,795 | |||||||||||||
Commercial paper | 1,365 | — | — | 1,365 | |||||||||||||
U.S. government agency securities | 100 | — | — | 100 | |||||||||||||
Corporate debt securities | 4,553 | — | — | 4,553 | |||||||||||||
Total cash and cash equivalents | 22,615 | — | — | 22,615 | |||||||||||||
Short-Term Investments: | |||||||||||||||||
Commercial paper | 1,860 | — | — | 1,860 | |||||||||||||
U.S. government agency securities | 5,856 | 1 | (2 | ) | 5,855 | ||||||||||||
U.S. Treasury securities | 4,042 | 1 | — | 4,043 | |||||||||||||
Municipal debt securities | 3,922 | 2 | — | 3,924 | |||||||||||||
Corporate debt securities | 78,044 | 5 | (85 | ) | 77,964 | ||||||||||||
Total short-term investments | 93,724 | 9 | (87 | ) | 93,646 | ||||||||||||
Total cash, cash equivalents and short-term investments | $ | 116,339 | $ | 9 | $ | (87 | ) | $ | 116,261 | ||||||||
As of December 31, 2013 | |||||||||||||||||
(in thousands) | 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 December 31, 2014 and 2013 do not constitute an "other than temporary impairment". The unrealized losses for the short-term investments as of December 31, 2014 and 2013 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 December 31, 2014 | |||||||||||||||||
Cash and cash equivalents (1) | $ | 22,615 | $ | — | $ | 22,615 | |||||||||||
Short-term investments | 76,917 | 16,729 | 93,646 | ||||||||||||||
Cash, cash equivalents and short-term investments | 99,532 | 16,729 | 116,261 | ||||||||||||||
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 $0.1 million and $0.3 million as of December 31, 2014 and December 31, 2013, respectively, which is classified in prepaids and other current assets on the consolidated balance sheet. |
Income_loss_per_share
Income (loss) per share | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Income (loss) per share | Income (loss) per share | ||||||||||||
For the year ended December 31, 2012, basic and diluted net income per common share is presented in conformity with the two-class method required for participating securities. Immediately prior to the completion of the Company’s IPO on April 2, 2012, holders of Series A through Series F preferred stock were each entitled to receive non-cumulative dividends at the annual rate of 8% per share per annum, respectively, payable prior and in preference to any dividends on any shares of the Company’s common stock. In the event a dividend is paid on common stock, the holders of preferred stock were entitled to a proportionate share of any such dividend as if they were holders of common stock (on an as-if converted basis). The holders of the preferred stock did not have a contractual obligation to share in the losses of the Company. The Company considered its preferred stock to be participating securities. Additionally, the Company considers shares issued upon the early exercise of options subject to repurchase and unvested restricted shares to be participating securities as the holders of these shares have a nonforfeitable right to dividends. In accordance with the two-class method, earnings allocated to these participating securities and the related number of outstanding shares of the participating securities, which include contractual participation rights in undistributed earnings, have been excluded from the computation of basic and diluted net income per common share. | |||||||||||||
Under the two-class method, net income attributable to common stockholders is determined by allocating undistributed earnings, calculated as net income less income attributable to participating securities between common stock and participating securities. In computing diluted net income attributable to common stockholders for calculation of diluted net income per share, undistributed earnings are re-allocated to reflect the potential impact of dilutive securities. Basic net income per common share is computed by dividing the net income attributable to common stockholders by the weighted-average number of common shares outstanding during the period. All participating securities are excluded from basic weighted-average common shares outstanding. Diluted net income per share attributable to common stockholders is computed by dividing the net income attributable to common stockholders for calculation of diluted net income per share by the weighted-average number of common shares outstanding, including potential dilutive common shares assuming the dilutive effect of outstanding stock options using the treasury stock method. | |||||||||||||
For the year ended December 31, 2013 and 2014, the two-class method is not applicable due to the net loss, which must be attributed entirely to the common shareholders. Additionally, as of December 31, 2014 and 2013, there are only 2,364 and 26,463, respectively of participating securities, consisting of repurchasable shares issued from early exercise of options and unvested restricted shares, so that the future effect of participating securities would generally be immaterial, even in years with net income. | |||||||||||||
The following table presents the calculation of basic and diluted net income (loss) per share: | |||||||||||||
Years ended December 31, | |||||||||||||
(in thousands, except for share and per share amounts) | 2014 | 2013 | 2012 | ||||||||||
Numerator: | |||||||||||||
Net (loss) income | $ | (28,297 | ) | $ | (10,465 | ) | $ | 2,893 | |||||
Less: undistributed earnings attributable to participating securities | — | — | (1,366 | ) | |||||||||
Net (loss) income attributable to common stockholders | $ | (28,297 | ) | $ | (10,465 | ) | $ | 1,527 | |||||
Reallocation of undistributed earnings attributable to participating securities | — | — | 32 | ||||||||||
Net (loss) income attributable to common stockholders for diluted net (loss) income per share | $ | (28,297 | ) | $ | (10,465 | ) | $ | 1,559 | |||||
Denominator: | |||||||||||||
Weighted-average shares used to compute basic net income (loss) per common share | 25,329 | 24,621 | 17,979 | ||||||||||
Effect of potentially dilutive securities: | |||||||||||||
Employee stock options and restricted stock units | — | — | 2,547 | ||||||||||
Stock warrants | — | — | 82 | ||||||||||
Weighted average shares used to compute diluted income (loss) per common share | 25,329 | 24,621 | 20,608 | ||||||||||
Net (loss) income per share | |||||||||||||
Net (loss) income per common share - basic and diluted | ($1.12) | ($0.43) | $0.08 | ||||||||||
For the years ended December 31, 2014, 2013 and 2012, the following securities were not included in the calculation of diluted shares outstanding as the effect would have been anti-dilutive: | |||||||||||||
As of December 31, | |||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||
Options to purchase common stock | 3,573 | 3,335 | 367 | ||||||||||
Common stock subject to repurchase | 5 | 25 | — | ||||||||||
Warrants to purchase common stock | 44 | 44 | — | ||||||||||
Restricted stock units | 981 | 623 | 25 | ||||||||||
Restricted stock awards | — | 12 | — | ||||||||||
Goodwill_and_intangible_assets
Goodwill and intangible assets | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||
Goodwill and intangible assets | Goodwill and intangible assets | ||||||||||||||||||||||||||
Goodwill | |||||||||||||||||||||||||||
The Company had $10.0 million and $5.6 million of goodwill as of December 31, 2014 and 2013, respectively. The additions to goodwill during the year ended December 31, 2014 of $4.4 million were based on the purchase price allocations of the acquisitions completed during 2014 (See Note 11). Goodwill is tested for impairment at the reporting unit level at least annually or more often if events or changes in circumstances indicate the carrying value may not be recoverable. The Company has two reporting units: Product and Service; as of December 31, 2014 all of the Company's goodwill resides in the Product reporting unit. The Company performed the annual required test of impairment of goodwill as of September 30, 2014 by performing Step 1 under authoritative accounting guidance. The Company’s annual impairment test indicated that the fair value exceeded the carrying value for each of its reporting units. For both 2013 and 2012, the Company used the qualitative assessment permitted under authoritative accounting guidance. Among the qualitative factors considered were changes since the prior impairment in the following: industry and competitive environment, business strategy, product mix, buyer and supplier bargaining power, potential market size, consistency in operating margins and cash flows, change in reporting unit / product life cycle stage and earnings quality and sustainability. No impairment was recorded in 2014, 2013 or 2012. As of December 31, 2014, no changes in circumstances indicate that goodwill carrying values may not be recoverable. | |||||||||||||||||||||||||||
Intangible assets | |||||||||||||||||||||||||||
The fair values for acquired intangible assets were determined by management with consideration of, in part, valuations performed by independent valuation specialists. Acquisition-related intangible assets are amortized over the life of the assets on an accelerated basis that approximates the expected economic benefit of the assets. This assumption results in amortization that is higher in earlier periods of the useful life. To date there has been no impairment of the Company's intangible assets. The estimated useful lives and carrying value of acquired intangible assets are as follows: | |||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||||
(in thousands) | Weighted average | Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||||||||
useful life | carrying | amortization | carrying | carrying | amortization | carrying | |||||||||||||||||||||
(years) | amount | amount | amount | amount | |||||||||||||||||||||||
Intangible assets: | |||||||||||||||||||||||||||
Customer relationships | 7 to 9 | $ | 2,520 | $ | 1,722 | $ | 798 | $ | 2,350 | $ | 1,449 | $ | 901 | ||||||||||||||
Developed technology | 4 to 7 | $ | 2,710 | $ | 1,693 | $ | 1,017 | $ | 1,880 | $ | 1,264 | $ | 616 | ||||||||||||||
Trademarks | 4 to 7 | $ | 110 | $ | 63 | $ | 47 | $ | 70 | $ | 43 | $ | 27 | ||||||||||||||
Non-compete Agreements | 2 to 4 | 460 | 91 | 369 | 70 | 70 | — | ||||||||||||||||||||
Intangible assets - finite life | $ | 5,800 | $ | 3,569 | $ | 2,231 | $ | 4,370 | $ | 2,826 | $ | 1,544 | |||||||||||||||
In-process R&D | n/a | $ | 940 | $ | — | $ | 940 | $ | — | $ | — | $ | — | ||||||||||||||
Intangible assets, net book value | $ | 6,740 | $ | 3,569 | $ | 3,171 | $ | 4,370 | $ | 2,826 | $ | 1,544 | |||||||||||||||
Amortization of intangible assets was $0.8 million, $0.7 million and $0.9 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||||||||||||||||
Amortization of acquired intangible assets is reflected in the cost of revenues for developed technology and in operating expenses for the other intangibles. The estimated future amortization of acquired intangible assets as of December 31, 2014 was as follows: | |||||||||||||||||||||||||||
(in thousands) | Future amortization | ||||||||||||||||||||||||||
2015 | 727 | ||||||||||||||||||||||||||
2016 | 562 | ||||||||||||||||||||||||||
2017 | 394 | ||||||||||||||||||||||||||
2018 | 275 | ||||||||||||||||||||||||||
2019 | 229 | ||||||||||||||||||||||||||
Thereafter | 44 | ||||||||||||||||||||||||||
Future amortization expense | $ | 2,231 | |||||||||||||||||||||||||
Balance_Sheet_Components
Balance Sheet Components | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Balance Sheet Components [Abstract] | |||||||||||||
Balance Sheet Components | Consolidated balance sheet components | ||||||||||||
Inventories | |||||||||||||
December 31, | |||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||
Raw materials | $ | 759 | $ | 806 | |||||||||
Finished goods | 2,703 | 4,859 | |||||||||||
Total inventories | $ | 3,462 | $ | 5,665 | |||||||||
Property and equipment, net | |||||||||||||
December 31, | |||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||
Computer equipment and software | $ | 8,772 | $ | 7,345 | |||||||||
Furniture, fixtures and equipment | 962 | 924 | |||||||||||
Leasehold improvements | 2,298 | 2,125 | |||||||||||
Manufacturing tools and equipment | 3,795 | 3,081 | |||||||||||
Construction in process | 122 | 555 | |||||||||||
Property and equipment, at cost | 15,949 | 14,030 | |||||||||||
Less: Accumulated depreciation | (10,827 | ) | (8,665 | ) | |||||||||
Property and equipment, net | $ | 5,122 | $ | 5,365 | |||||||||
Depreciation and amortization expense for property and equipment for the years ended December 31, 2014, 2013 and 2012 was $2.2 million, $1.8 million and $1.7 million, 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: | |||||||||||||
December 31, | |||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||
Net minimum lease payments to be received | $ | 1,882 | $ | 2,597 | |||||||||
Less: Unearned interest income and executory revenue portion | (962 | ) | (1,167 | ) | |||||||||
Net investment in sales-type leases | 920 | 1,430 | |||||||||||
Less: Current portion | (564 | ) | (620 | ) | |||||||||
Non-current net investment in sales-type leases | $ | 356 | $ | 810 | |||||||||
There were no allowances for doubtful accounts on these leases as of December 31, 2014 and 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 lease payments expected for future years under sales-type leases as of December 31, 2014 were as follows: | |||||||||||||
(in thousands) | Future lease payments | ||||||||||||
2015 | $ | 877 | |||||||||||
2016 | 705 | ||||||||||||
2017 | 291 | ||||||||||||
2018 | 9 | ||||||||||||
Thereafter | — | ||||||||||||
Total | $ | 1,882 | |||||||||||
Accrued payroll, restructuring and other current liabilities | |||||||||||||
December 31, | |||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||
Payroll and related expenses | $ | 7,009 | $ | 5,065 | |||||||||
Accrued payables | 1,715 | 2,259 | |||||||||||
Deferred rent, current portion | 299 | 490 | |||||||||||
Lease financing, current portion | 645 | 528 | |||||||||||
Product warranty | 497 | 840 | |||||||||||
Customer prepayments | 283 | 281 | |||||||||||
Sales and use tax payable | 293 | 259 | |||||||||||
Other | 122 | 119 | |||||||||||
Total accrued payroll and other current liabilities | $ | 10,863 | $ | 9,841 | |||||||||
Included in payroll and related expenses above is $0.2 million of accrued severance-related restructuring charges that will be paid by March 31, 2015. During the fourth quarter of 2014, the Company initiated a restructuring plan which resulted in $0.7 million of severance charges, of which $0.1 million was recorded to cost of revenue and $0.6 million was recorded to operating expenses. | |||||||||||||
The Company provides for the estimated costs of hardware warranties at the time the related revenue is recognized. Costs are estimated based on historical and projected product failure rates, historical and projected repair costs, and knowledge of specific product failures (if any). The specific hardware warranty includes parts and labor over a period generally ranging from one to three years. The Company provides no warranty for software. The Company regularly re-evaluates its estimates to assess the adequacy of the recorded warranty liabilities and adjust the amounts as necessary. | |||||||||||||
A reconciliation of the changes in the Company’s warranty reserve for the years ended December 31, 2014, 2013 and 2012 is as follows: | |||||||||||||
Years ended December 31, | |||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||
Warranty balance at the beginning of the period | $ | 840 | $ | 297 | $ | 983 | |||||||
Warranty expense accrued for shipments during the period | 723 | 1,185 | 540 | ||||||||||
Changes in estimate related to pre-existing warranties | (68 | ) | 536 | (242 | ) | ||||||||
Warranty settlements made | (998 | ) | (1,178 | ) | (984 | ) | |||||||
Warranty balance at the end of the period | $ | 497 | $ | 840 | $ | 297 | |||||||
Commitments
Commitments | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Commitments | Commitments and contingencies | |||
Non-cancelable purchase commitments | ||||
The Company enters into non-cancelable purchase commitments with its third-party manufacturer whereby the Company is required to purchase any inventory held by the third-party manufacturer that have been purchased by them based on confirmed orders from the Company. As of December 31, 2014 and 2013, approximately $1.9 million and $3.1 million, respectively, of raw material inventory was purchased and held by the third-party manufacturer which was subject to such purchase requirements. | ||||
Leases | ||||
The Company leases office space for its headquarters and subsidiaries under non-cancelable operating leases, which will expire between May 2015 and December 2017. The San Jose, California headquarters lease ends March 31, 2016, with a single three-year extension option at rates approximating then-fair market value. Total rent expense for the years ended December 31, 2014, 2013 and 2012 was $2.0 million, $2.0 million and $1.9 million, respectively. The Company recognizes rent expense on a straight-line basis over the lease period, and has accrued for rent expense incurred but not paid. | ||||
Future minimum lease payments at December 31, 2014 under non-cancelable operating leases are as follows: | ||||
(in thousands) | Operating | |||
leases | ||||
2015 | 1,764 | |||
2016 | 610 | |||
2017 | 107 | |||
Total minimum lease payments | $ | 2,481 | ||
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 and 21, 2013, two putative securities class action suits were 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. On November 20, 2013, the court consolidated the actions as In re Vocera Communications, Inc. Securities Litigation and appointed Lead Plaintiffs. Lead Plaintiffs filed their consolidated complaint on September 19, 2014. The consolidated complaint names certain current and former officers and directors and the underwriters for the Company's initial public offering and secondary offering and alleges claims under Sections 11, 12(a)(2) and 15 of the Securities Act and Section 10(b) and 20(a) of the Exchange Act based on allegedly false and materially misleading statements and omissions in the registration statement for the Company's initial public offering and secondary offering and in communications regarding its business and financial results. The suit is purportedly brought on behalf of purchasers of the Company's securities between March 28, 2012 and May 2, 2013, and seeks compensatory damages, rescission, fees and costs, as well as other relief. On November 3, 2014 Defendants moved to dismiss the consolidated complaint. On January 15, 2015, the Court denied Defendants' motion to dismiss the Exchange Act claims, but granted with leave to amend Defendants' motion to dismiss the Securities Act claims. The time for Lead Plaintiffs to amend the consolidated complaint has not yet passed. | ||||
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. |
Common_stock
Common stock | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||
Common Stock | Common Stock and Share-based Compensation | ||||||||||||||
The Company’s certificate of incorporation, as amended, authorizes the Company to issue 100 million shares of $0.0003 par value common stock. | |||||||||||||||
At December 31, 2014, the Company has reserved shares for issuance of common stock as follows: | |||||||||||||||
Common Shares | |||||||||||||||
Reserved under stock option plans | 622,343 | ||||||||||||||
Warrants to purchase common stock | 44,491 | ||||||||||||||
Total reserved for issuance | 666,834 | ||||||||||||||
Incentive stock option plans | |||||||||||||||
The Company has three equity incentive plans: the 2000 Stock Option Plan (the “2000 Plan”), the 2006 Stock Option Plan (the “2006 Plan”) and the 2012 Stock Option Plan (the “2012 Plan”). On March 26, 2012, all shares that were reserved under the 2006 Plan but not subject to outstanding awards became available for grant under the 2012 Plan. No additional shares will be issued under the 2006 Plan. The 2000 Plan terminated in March 2010 and no additional shares will be issued under this plan. All options currently outstanding under the 2000 Plan and the 2006 Plan continue to be governed by the terms and conditions of those plans. Under the 2012 Plan, the Company has the ability to issue incentive stock options (“ISOs”), stock appreciation rights, restricted stock, restricted stock units (“RSUs”), performance awards and stock bonuses. The ISOs will be granted at a price per share not less than the fair value at date of grant. Options granted to new hires generally vest over a 4-year period with 25% vesting at the end of one year and the remaining vest monthly thereafter, options granted as merit awards generally vest monthly over a four-year period. Options granted generally are exercisable up to 10 years. As of December 31, 2014, there were 622,343 shares remaining available for future issuance under the 2012 Plan. | |||||||||||||||
Early exercise of stock options | |||||||||||||||
The Company typically allows employees to exercise options granted under the 2000 and 2006 Plans prior to vesting. The unvested shares are subject to the Company’s repurchase right at the original purchase price. The proceeds initially are recorded as an accrued liability from the early exercise of stock options and reclassified to common stock as the Company’s repurchase right lapses. At December 31, 2014, 2013 and 2012, there were unvested shares in the amount of 2,358, 14,360 and 48,260, respectively, which were subject to repurchase at an aggregate price of $12,000, $0.1 million and $0.2 million, respectively. | |||||||||||||||
Stock Option Activity | |||||||||||||||
The following table summarizes the combined stock option activity under the 2000 Plan, the 2006 Plan and the 2012 Plan and non-plan stock option agreements: | |||||||||||||||
Options outstanding | |||||||||||||||
Number | Weighted | Weighted | Aggregate | ||||||||||||
of options | average | average | intrinsic | ||||||||||||
exercise | remaining | value | |||||||||||||
price | contractual term | ||||||||||||||
(in years) | (in thousands) | ||||||||||||||
Outstanding at December 31, 2013 | 3,287,207 | $ | 9.62 | 6.45 | $ | 24,880 | |||||||||
Options granted | 1,055,949 | 11.54 | |||||||||||||
Options exercised | (293,615 | ) | 3.73 | ||||||||||||
Options canceled | (630,917 | ) | 14.59 | ||||||||||||
Outstanding at December 31, 2014 | 3,418,624 | $ | 9.8 | 6.24 | $ | 12,167 | |||||||||
Options vested and expected to vest as of December 31, 2014 | 3,318,085 | $ | 9.72 | 6.15 | $ | 12,100 | |||||||||
Options vested and exercisable as of December 31, 2014 | 2,076,366 | $ | 7.35 | 4.49 | $ | 11,346 | |||||||||
At December 31, 2014, there was $6.4 million of unrecognized net compensation cost related to options which is expected to be recognized over a weighted-average period of 2.8 years | |||||||||||||||
During the year ended December 31, 2014, the Company modified 35,528 outstanding restricted stock units and 84,758 stock options to allow for continued vesting of the awards pursuant to the terms of consulting arrangements entered into with the Company’s former Chief Financial Officer and Executive Chairman. The stock-based compensation expense recognized during the period and remaining unamortized stock-based compensation expense as of December 31, 2014 for the awards were not material and will be fully recognized by June 30, 2015, the quarter in which the consulting arrangements are expected to terminate. The share amounts and related compensation expense are included in the options and RSU tables below, as well as in the income statement allocation table. The Company did not grant non-employee options in year ended December 31, 2013. | |||||||||||||||
Using the Black-Scholes option-pricing model, the weighted-average grant-date fair value of options granted to employees during the years ended December 31, 2014, 2013 and 2012 was $4.77 per share, $7.34 per share and $10.19 per share, respectively. Further information regarding the value of employee options vested and exercised during the years ended December 31, 2014, 2013 and 2012 is set forth below. | |||||||||||||||
Years ended December 31, | |||||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||||
Intrinsic value of options exercised during period | $ | 2,997 | $ | 5,896 | $ | 24,846 | |||||||||
The Company uses the Black-Scholes option-pricing model to calculate the fair value of stock options on their grant date. This model requires the following major inputs: the estimated fair value of the underlying common stock, the expected term of the option, the expected volatility of the underlying common stock over the expected life of the option, the risk-free interest rate and expected dividend yield. The following assumptions were used for each respective period for employee stock-based compensation: | |||||||||||||||
Years ended December 31, | |||||||||||||||
2014 | 2013 | 2012 | |||||||||||||
Expected Term (in years) | 5.41 - 5.45 | 5.38 - 5.43 | 5.23 - 5.60 | ||||||||||||
Volatility | 41.4% - 48.2% | 46.7% - 48.1% | 47.9% - 48.7% | ||||||||||||
Risk-free interest rate | 1.59% - 1.78% | 0.81% - 1.80% | 0.72% - 1.03% | ||||||||||||
Dividend yield | 0.00% | 0.00% | 0.00% | ||||||||||||
The computation of expected term is based on the historical exercise and forfeiture behavior of the Company’s employees, giving consideration to the contractual terms of the stock-based awards, vesting schedules and expectations of future employee behavior. For the expected term so determined, the risk-free rate is the U.S. Treasury Rate for that term on the grant date. The Company's expected common stock price volatility is based on the historical volatility of a peer group of publicly-traded companies, using the same expected term. The peer group was selected based on industry and market capitalization data. The Company assumes the dividend yield to be zero, as the Company has never declared or paid dividends and does not expect to do so in the foreseeable future. | |||||||||||||||
Employee Stock Purchase Plan | |||||||||||||||
In March 2012, the Company's board of directors and stockholders approved the 2012 Employee Stock Purchase Plan (ESPP). The ESPP allows eligible employees to purchase shares of the Company's common stock at a discount through payroll deductions of up to 15% of their eligible compensation, subject to any plan limitations. The ESPP provides for six-month offering periods, except for the first offering period which was for 11 months. Additionally, in April 2013, the Company's compensation committee determined that following the February 15, 2013 six-month offering period, the next offering period under the ESPP would last for three months (commencing August 15, 2013 and expiring on November 14, 2013) and, following the expiration of such offering period, offering periods thereafter will commence on November 15, 2013, and May 15, 2014 and so on, each consisting of a single six-month purchase period. | |||||||||||||||
At the end of each offering period, employees are able to purchase shares at 85% of the lower of the fair market value of the Company's common stock on the first trading day of the offering period or on the last day of the offering period. During the year ended December 31, 2014 and 2013, employees purchased 160,936 and 215,039 shares, respectively, of common stock at an average purchase price of $9.87 and $13.92, respectively. As of December 31, 2014, 282,655 shares remained available for future issuance under the ESPP. | |||||||||||||||
The Company uses the Black-Scholes option-pricing model to calculate the fair value of periodic ESPP offerings on their offer date. The following assumptions were used for each respective period for the ESPP: | |||||||||||||||
Years ended December 31, | |||||||||||||||
2014 | 2013 | 2012 | |||||||||||||
Expected Term (in years) | 0.5 | 0.25 - 0.50 | 0.50 - 0.88 | ||||||||||||
Volatility | 35.9% - 57.7% | 33.3% - 36.0% | 43.2% - 50.0% | ||||||||||||
Risk-free interest rate | 0.05% - 0.10% | 0.05% - 0.13% | 0.14% - 0.18% | ||||||||||||
Dividend yield | 0.00% | 0.00% | 0.00% | ||||||||||||
Restricted Stock Awards and Restricted Stock Units | |||||||||||||||
In 2012, the Company began incorporating restricted stock awards and RSUs as an element of its compensation plans. In February 2012, the Company granted certain of its directors restricted stock awards that vest 50% on the first anniversary of the grant, and 50% on the second anniversary of the grant. In May 2012, the Company granted certain employees RSUs, which vest one third on the first anniversary of the grant, one third on the second anniversary of the grant and one third upon the third anniversary of the grant. | |||||||||||||||
A summary of the restricted stock activity for the year ended December 31, 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 | — | — | 823,554 | 11.64 | |||||||||||
Vested | (12,076 | ) | 12.42 | (327,562 | ) | 19.11 | |||||||||
Forfeited | — | — | (188,673 | ) | 16.97 | ||||||||||
Outstanding at December 31, 2014 | — | $ | — | 1,062,590 | $ | 13.79 | |||||||||
At December 31, 2014, there was no remaining unrecognized net compensation cost related to restricted stock awards. At December 31, 2014, there was $9.7 million of unrecognized net compensation cost related to RSUs, which is expected to be recognized over a weighted-average period of 1.9 years. | |||||||||||||||
Allocation of Stock-Based Compensation Expense | |||||||||||||||
Stock-based compensation expense is recognized based on a straight-line amortization method over the respective vesting period of the award and has been reduced for estimated forfeitures. The Company estimated the expected forfeiture rate based on its historical experience, considering voluntary termination behaviors, trends of actual award forfeitures, and other events that will impact the forfeiture rate. To the extent the Company’s actual forfeiture rate is different from the estimate, the stock-based compensation expense is adjusted accordingly. | |||||||||||||||
The following table presents the stock-based compensation allocation of expense (both for employees and non-employees): | |||||||||||||||
Years ended December 31, | |||||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||||
Cost of revenue | $ | 1,178 | $ | 967 | $ | 421 | |||||||||
Research and development | 1,056 | 861 | 449 | ||||||||||||
Sales and marketing | 4,111 | 2,942 | 1,262 | ||||||||||||
General and administrative | 4,739 | 3,897 | 2,100 | ||||||||||||
Total stock-based compensation | $ | 11,084 | $ | 8,667 | $ | 4,232 | |||||||||
Exercise of common stock warrants | |||||||||||||||
Prior to the April 2012 IPO, outstanding warrants to purchase preferred stock were classified as liabilities, which were adjusted to fair value at each reporting period until the earlier of their exercise or expiration or the completion of a liquidation event, including the completion of an initial public offering, at which time the preferred stock warrant liability automatically converted into a warrant to purchase shares of common stock and was reclassified to stockholders’ equity (deficit). The Company recorded an expense in other income (expense), net of $1.6 million for the year ended December 31, 2012, respectively, to reflect the change in the fair value of the outstanding preferred stock warrants. Since April 2012, the converted common stock warrants are classified within stockholder's equity (deficit). |
Segments
Segments | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Segment Reporting [Abstract] | |||||||||||||
Segments | Segments | ||||||||||||
The Company has two operating segments which are both reportable segments: (i) Product; and (ii) Service, which are comprised of the Company’s and its wholly-owned subsidiaries’ results from 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: | |||||||||||||
Years ended December 31, | |||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||
Revenue | |||||||||||||
Product | $ | 51,095 | $ | 62,393 | $ | 65,028 | |||||||
Service | 44,326 | 40,105 | 35,929 | ||||||||||
Total revenue | 95,421 | 102,498 | 100,957 | ||||||||||
Cost of revenue | |||||||||||||
Product | 18,766 | 21,714 | 21,551 | ||||||||||
Service | 18,470 | 16,595 | 15,070 | ||||||||||
Total cost of revenue | 37,236 | 38,309 | 36,621 | ||||||||||
Gross profit | |||||||||||||
Product | 32,329 | 40,679 | 43,477 | ||||||||||
Service | 25,856 | 23,510 | 20,859 | ||||||||||
Total gross profit | 58,185 | 64,189 | 64,336 | ||||||||||
Operating expenses | 86,264 | 74,749 | 59,440 | ||||||||||
Interest income (expense), net and other | 106 | 204 | (1,376 | ) | |||||||||
(Loss) income before income taxes | $ | (27,973 | ) | $ | (10,356 | ) | $ | 3,520 | |||||
The following tables present the Company’s revenue by product line, as well as revenue and long-lived assets by geographic region. | |||||||||||||
Years ended December 31, | |||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||
Revenue | |||||||||||||
Product | |||||||||||||
Device | $ | 37,455 | $ | 46,636 | $ | 47,725 | |||||||
Software | 13,640 | 15,757 | 17,303 | ||||||||||
Total product | 51,095 | 62,393 | 65,028 | ||||||||||
Service | |||||||||||||
Maintenance and support | 35,353 | 31,559 | 26,237 | ||||||||||
Professional services and training | 8,973 | 8,546 | 9,692 | ||||||||||
Total service | 44,326 | 40,105 | 35,929 | ||||||||||
Total revenue | $ | 95,421 | $ | 102,498 | $ | 100,957 | |||||||
The Company’s revenue by geographic region, based on customer location, is summarized as follows: | |||||||||||||
Years ended December 31, | |||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||
Revenue | |||||||||||||
United States | $ | 86,007 | $ | 91,763 | $ | 90,108 | |||||||
International | 9,414 | 10,735 | 10,849 | ||||||||||
Total revenue | $ | 95,421 | $ | 102,498 | $ | 100,957 | |||||||
The Company’s tangible long-lived assets by geographic region, consisting of net property and equipment, are summarized as follows: | |||||||||||||
December 31, | |||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||
Property and equipment, net | |||||||||||||
United States | $ | 4,852 | $ | 5,249 | $ | 3,465 | |||||||
International | 270 | 116 | 166 | ||||||||||
Total property and equipment, net | $ | 5,122 | $ | 5,365 | $ | 3,631 | |||||||
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||||
Income Taxes | Income taxes | |||||||||||||
The components of (loss) income before income taxes are as follows: | ||||||||||||||
Years ended December 31, | ||||||||||||||
(in thousands) | 2014 | 2013 | 2012 | |||||||||||
United States | $ | (28,442 | ) | $ | (10,812 | ) | $ | 3,205 | ||||||
International | 469 | 456 | 315 | |||||||||||
Total (loss) income before income taxes | $ | (27,973 | ) | $ | (10,356 | ) | $ | 3,520 | ||||||
The components of the provision for income taxes are as follows: | ||||||||||||||
Years ended December 31, | ||||||||||||||
(in thousands) | 2014 | 2013 | 2012 | |||||||||||
Current | ||||||||||||||
Federal | $ | — | $ | — | $ | 7 | ||||||||
State | 14 | (40 | ) | 512 | ||||||||||
Foreign | 204 | 74 | 38 | |||||||||||
218 | 34 | 557 | ||||||||||||
Deferred | ||||||||||||||
Federal | 134 | 60 | 60 | |||||||||||
State | (4 | ) | 4 | 10 | ||||||||||
Foreign | (24 | ) | 11 | — | ||||||||||
106 | 75 | 70 | ||||||||||||
Total income tax provision | $ | 324 | $ | 109 | $ | 627 | ||||||||
The Company had an effective tax rate of (1.2)%, (1.1)% and 17.8% for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||||
Reconciliation of the provision for income taxes at the statutory rate to the Company’s provision for income tax is as follows: | ||||||||||||||
Years ended December 31, | ||||||||||||||
(in thousands) | 2014 | 2013 | 2012 | |||||||||||
U.S. federal (tax benefit) provision at statutory rate | $ | (9,511 | ) | $ | (3,567 | ) | $ | 1,197 | ||||||
State (tax benefit) income taxes, net of federal benefit | (895 | ) | (338 | ) | 151 | |||||||||
Foreign income taxes at rates other than the US rate | 43 | (28 | ) | (10 | ) | |||||||||
Stock-based compensation | 763 | 549 | 397 | |||||||||||
Change in valuation allowance | 10,203 | 3,911 | (1,494 | ) | ||||||||||
Non-deductible warrant expense | — | — | 625 | |||||||||||
Research and development credits | (466 | ) | (527 | ) | (220 | ) | ||||||||
Other | 187 | 109 | (19 | ) | ||||||||||
Total | $ | 324 | $ | 109 | $ | 627 | ||||||||
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The following table presents the significant components of the Company’s deferred tax assets and liabilities for the periods presented: | ||||||||||||||
As of December 31, | ||||||||||||||
(in thousands) | 2014 | 2013 | ||||||||||||
Deferred tax assets | ||||||||||||||
Net operating loss carryforward | $ | 19,190 | $ | 11,873 | ||||||||||
Research and development credits | 3,360 | 2,809 | ||||||||||||
Depreciation and amortization | 650 | 288 | ||||||||||||
Reserves and accruals | 6,900 | 6,060 | ||||||||||||
Total deferred tax assets | 30,100 | 21,030 | ||||||||||||
Valuation allowance | (30,072 | ) | (21,030 | ) | ||||||||||
Net deferred tax assets | 28 | — | ||||||||||||
Deferred tax liabilities | (352 | ) | (216 | ) | ||||||||||
Net deferred tax liabilities | $ | (324 | ) | $ | (216 | ) | ||||||||
The Company determines its valuation allowance on deferred tax assets by considering both positive and negative evidence in order to ascertain whether it is more likely than not that deferred tax assets will be realized. Realization of deferred tax assets is dependent upon the generation of future taxable income, if any, the timing and amount of which are uncertain. Due to the history of losses the Company has generated in the past, the Company believes that it is not more likely than not that all of the deferred tax assets in the U.S. and Canada can be realized as of December 31, 2014; accordingly, the Company has recorded a full valuation allowance on its deferred tax assets. | ||||||||||||||
The Company’s valuation allowance increased by $9.0 million and decreased by $0.2 million for the years ended December 31, 2014 and 2013, respectively. The change in the 2014 valuation allowance was primarily due to the addition of current year loss carryforwards, whereas the decrease in 2013 was primarily due to the expiration and/or limitation of previous loss carryforwards. | ||||||||||||||
At December 31, 2014, the Company had $71.4 million and $42.6 million, respectively, of federal and state net operating loss carryforwards. Included in the gross amount, approximately $33.9 million of net operating loss is created by excess stock option deduction. A credit to APIC will be recorded when the excess stock option deduction reduces the income tax payable. | ||||||||||||||
The federal net operating loss carryforward begins expiring in 2022, and the state net operating loss carryforward begins expiring in 2015, if not utilized. | ||||||||||||||
In addition, the Company has federal research and development tax credits carryforwards of approximately $2.0 million and state research and development tax credit carryforwards of approximately $3.0 million. The federal credit carryforwards begin expiring 2021 and the state credits carry forward indefinitely. The Internal Revenue Code (IRC) contains provisions which limit the amount of net operating loss (NOL) and research credit carryforwards that can be used in any given year if a significant change in ownership has occurred. As of December 31, 2014, $12.2 million of the Company's NOL carryovers and $0.5 million of credit carryovers are subject to an annual $0.6 million limitation, of which $7.5 million NOLs would be available to offset future taxable income in the twenty-year carryforward period. | ||||||||||||||
The following table displays by contributing factor the changes in the valuation allowance for deferred tax assets since January 1, 2012: | ||||||||||||||
Years Ended December 31, | ||||||||||||||
(in thousands) | 2014 | 2013 | 2012 | |||||||||||
Balance at the beginning of the period | $ | 21,030 | $ | 21,193 | $ | 22,687 | ||||||||
Net operating loss carryforwards generated (utilization) | 7,317 | (2,397 | ) | (3,505 | ) | |||||||||
R&D tax credit increase | 551 | 172 | 272 | |||||||||||
Depreciation and amortization increase | 362 | 204 | 29 | |||||||||||
Reserves and accruals increase | 840 | 1,558 | 1,273 | |||||||||||
Deferred tax assets decrease (increase) | (28 | ) | 300 | 437 | ||||||||||
Balance at the end of the period | $ | 30,072 | $ | 21,030 | $ | 21,193 | ||||||||
The following table reflects changes in the unrecognized tax benefits since January 1, 2013: | ||||||||||||||
Years ended December 31, | ||||||||||||||
(in thousands) | 2014 | 2013 | ||||||||||||
Gross amount of unrecognized tax benefits as of the beginning of the period | $ | 1,092 | $ | 1,079 | ||||||||||
Increases related to prior year tax provisions | 25 | 30 | ||||||||||||
Decreases related to prior year tax provisions | — | (239 | ) | |||||||||||
Increases related to current year tax provisions | 148 | 222 | ||||||||||||
Gross amount of unrecognized tax benefits as of the end of the period | $ | 1,265 | $ | 1,092 | ||||||||||
As a result of the Company’s historic losses and related valuation allowances, the Company has recorded substantially all of the uncertain tax amounts above as reductions to deferred tax assets which are subject to a full valuation allowance in its consolidated balance sheet with an insignificant portion recorded in other long-term liabilities. The Company recognizes interest and penalties relating to uncertain tax positions in income tax expense. For the years ended December 31, 2014 and 2013, penalties and interest were $13,000 and $26,000, respectively. As the Company is not currently under examination, it is reasonable to assume that the balance of gross unrecognized tax benefits will likely not change in the next twelve months. | ||||||||||||||
The Company files income tax returns in the United States on a federal basis and in various states. The Company is not currently under any international or any United States federal, state and local income tax examinations for any taxable years. All of the Company’s net operating losses and research credit carryforwards prior to 2014 are subject to tax authority adjustment and all years after 2008 are still subject to the tax authority examinations. | ||||||||||||||
The Company has not provided for U.S. federal and foreign withholding taxes on $1.2 million of the Company’s non-U.S. subsidiaries’ undistributed earnings as of December 31, 2014, since the Company intends to reinvest this amount outside the U.S. indefinitely. |
Business_Acquisitions_Notes
Business Acquisitions (Notes) | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
mVisum Net Assets Acquired [Abstract] | ||||||
Business Combination Disclosure [Text Block] | ||||||
11 | Business acquisitions | |||||
Acquisition of mVisum net assets | ||||||
On January 13, 2014, the Company acquired substantially all assets of mVisum, Inc., an innovative provider of alarm management technology solutions for health systems (mVisum), for $3.5 million in cash consideration. 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 compensation expense as earned. 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 as such amounts attributable to mVisum were insignificant. | ||||||
Acquisition of Prana Technologies assets | ||||||
On August 8, 2014, the Company acquired substantially all assets of Prana Technologies, Inc. (Prana) for $3.45 million in cash consideration. The acquisition provides the Company with technology critical to cloud-based applications extending its communication and collaboration network to include physicians and other geographically dispersed users. The Company believes this will advance its vision of integrating voice, text, and content-based workflows, on a range of devices and desktop solutions, across all care locations. | ||||||
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 | |||||
Intangibles | ||||||
Non-compete agreement | 200 | |||||
In-process research and development | 940 | |||||
Goodwill | 2,310 | |||||
Total assets acquired | 3,450 | |||||
The estimated fair values of identifiable intangible assets were primarily determined using discounted cash flow models. The non-compete intangible has an estimated useful life of two years and the in-process research and development is classified as an asset with an indefinite life. When the in-process research and development is applied in a generally-available product offering, expected in 2015, it will be assessed for classification as developed technology, and amortization will begin over the estimated useful life of such developed technology. | ||||||
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 Prana’s proprietary cloud technology expanding upon and being integrated 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 Prana is attributed to the Product reporting unit. | ||||||
The agreement also included contingent payments to the selling stockholders payable based on certain employee retention requirements and the achievement of a post-acquisition quality milestone. The Company considered these contingent payments as a compensation expense due to the explicit and implied continuing employment requirements associated with earning such contingent payments. The company paid $0.8 million in compensation-related elements at the acquisition date, which was amortized in 2014. These costs are recorded primarily as general and administrative expenses in the consolidated statement of operations. In addition, the Company expensed as incurred $0.1 million of acquisition-related costs. | ||||||
The acquisition did not result in material contributions to revenue or net loss in the consolidated financial statements since the acquisition date, other than the compensation elements discussed above. Additionally, pro forma financial information is not provided for consolidated revenue and net loss, such amounts attributable to Prana were insignificant. | ||||||
Acquisition of mVisum net assets | ||||||
On January 13, 2014, the Company acquired substantially all assets of mVisum, Inc., an innovative provider of alarm management technology solutions for health systems (mVisum), for $3.5 million in cash consideration. 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 compensation expense as earned. 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 as such amounts attributable to mVisum were insignificant. | ||||||
Acquisition of Prana Technologies assets | ||||||
On August 8, 2014, the Company acquired substantially all assets of Prana Technologies, Inc. (Prana) for $3.45 million in cash consideration. The acquisition provides the Company with technology critical to cloud-based applications extending its communication and collaboration network to include physicians and other geographically dispersed users. The Company believes this will advance its vision of integrating voice, text, and content-based workflows, on a range of devices and desktop solutions, across all care locations. | ||||||
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 | |||||
Intangibles | ||||||
Non-compete agreement | 200 | |||||
In-process research and development | 940 | |||||
Goodwill | 2,310 | |||||
Total assets acquired | 3,450 | |||||
The estimated fair values of identifiable intangible assets were primarily determined using discounted cash flow models. The non-compete intangible has an estimated useful life of two years and the in-process research and development is classified as an asset with an indefinite life. When the in-process research and development is applied in a generally-available product offering, expected in 2015, it will be assessed for classification as developed technology, and amortization will begin over the estimated useful life of such developed technology. | ||||||
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 Prana’s proprietary cloud technology expanding upon and being integrated 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 Prana is attributed to the Product reporting unit. | ||||||
The agreement also included contingent payments to the selling stockholders payable based on certain employee retention requirements and the achievement of a post-acquisition quality milestone. The Company considered these contingent payments as a compensation expense due to the explicit and implied continuing employment requirements associated with earning such contingent payments. The company paid $0.8 million in compensation-related elements at the acquisition date, which was amortized in 2014. These costs are recorded primarily as general and administrative expenses in the consolidated statement of operations. In addition, the Company expensed as incurred $0.1 million of acquisition-related costs. | ||||||
The acquisition did not result in material contributions to revenue or net loss in the consolidated financial statements since the acquisition date, other than the compensation elements discussed above. Additionally, pro forma financial information is not provided for consolidated revenue and net loss, such amounts attributable to Prana were insignificant. |
Quarterly_results_of_operation
Quarterly results of operations (unaudited) (Notes) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Schedule of Quarterly Financial Information [Table Text Block] | 12. Quarterly results of operations (unaudited) | ||||||||||||||||
The following tables present certain unaudited consolidated quarterly financial information for each of the eight quarters ended December 31, 2014. This quarterly information has been prepared on the same basis as the consolidated financial statements and includes all adjustments necessary to state fairly the information for the periods presented. | |||||||||||||||||
(In thousands, except per share data) | Quarter Ended | ||||||||||||||||
2014 | March 31, | June 30, | September 30, | December 31, | |||||||||||||
Total revenue | $ | 24,676 | $ | 23,019 | $ | 23,124 | $ | 24,602 | |||||||||
Gross profit | $ | 14,872 | $ | 14,070 | $ | 13,535 | $ | 15,708 | |||||||||
Net loss | $ | (6,389 | ) | $ | (7,008 | ) | $ | (7,891 | ) | $ | (7,009 | ) | |||||
Net loss attributable to common stockholders | $ | (6,389 | ) | $ | (7,008 | ) | $ | (7,891 | ) | $ | (7,009 | ) | |||||
Net loss per share attributable to common stockholders: | |||||||||||||||||
Basic and diluted | $ | (0.26 | ) | $ | (0.28 | ) | $ | (0.31 | ) | $ | (0.27 | ) | |||||
Weighted average shares used to compute net income (loss) per share attributable to common stockholders: | |||||||||||||||||
Basic and diluted | 25,047 | 25,246 | 25,432 | 25,572 | |||||||||||||
Quarter Ended | |||||||||||||||||
2013 | March 31, | June 30, | September 30, | December 31, | |||||||||||||
Total revenue | $ | 22,413 | $ | 25,296 | $ | 26,067 | $ | 28,722 | |||||||||
Gross profit | $ | 13,719 | $ | 15,790 | $ | 16,277 | $ | 18,403 | |||||||||
Net loss | $ | (3,499 | ) | $ | (2,022 | ) | $ | (3,102 | ) | $ | (1,842 | ) | |||||
Net loss attributable to common stockholders | $ | (3,499 | ) | $ | (2,022 | ) | $ | (3,102 | ) | $ | (1,842 | ) | |||||
Net loss per share attributable to common stockholders: | |||||||||||||||||
Basic and diluted | $ | (0.14 | ) | $ | (0.08 | ) | $ | (0.13 | ) | $ | (0.07 | ) | |||||
Weighted average shares used to compute net loss per common share: | |||||||||||||||||
Basic and diluted | 24,282 | 24,555 | 24,747 | 24,893 | |||||||||||||
The following tables present certain unaudited consolidated quarterly financial information for each of the eight quarters ended December 31, 2014. This quarterly information has been prepared on the same basis as the consolidated financial statements and includes all adjustments necessary to state fairly the information for the periods presented. | |||||||||||||||||
(In thousands, except per share data) | Quarter Ended | ||||||||||||||||
2014 | March 31, | June 30, | September 30, | December 31, | |||||||||||||
Total revenue | $ | 24,676 | $ | 23,019 | $ | 23,124 | $ | 24,602 | |||||||||
Gross profit | $ | 14,872 | $ | 14,070 | $ | 13,535 | $ | 15,708 | |||||||||
Net loss | $ | (6,389 | ) | $ | (7,008 | ) | $ | (7,891 | ) | $ | (7,009 | ) | |||||
Net loss attributable to common stockholders | $ | (6,389 | ) | $ | (7,008 | ) | $ | (7,891 | ) | $ | (7,009 | ) | |||||
Net loss per share attributable to common stockholders: | |||||||||||||||||
Basic and diluted | $ | (0.26 | ) | $ | (0.28 | ) | $ | (0.31 | ) | $ | (0.27 | ) | |||||
Weighted average shares used to compute net income (loss) per share attributable to common stockholders: | |||||||||||||||||
Basic and diluted | 25,047 | 25,246 | 25,432 | 25,572 | |||||||||||||
Quarter Ended | |||||||||||||||||
2013 | March 31, | June 30, | September 30, | December 31, | |||||||||||||
Total revenue | $ | 22,413 | $ | 25,296 | $ | 26,067 | $ | 28,722 | |||||||||
Gross profit | $ | 13,719 | $ | 15,790 | $ | 16,277 | $ | 18,403 | |||||||||
Net loss | $ | (3,499 | ) | $ | (2,022 | ) | $ | (3,102 | ) | $ | (1,842 | ) | |||||
Net loss attributable to common stockholders | $ | (3,499 | ) | $ | (2,022 | ) | $ | (3,102 | ) | $ | (1,842 | ) | |||||
Net loss per share attributable to common stockholders: | |||||||||||||||||
Basic and diluted | $ | (0.14 | ) | $ | (0.08 | ) | $ | (0.13 | ) | $ | (0.07 | ) | |||||
Weighted average shares used to compute net loss per common share: | |||||||||||||||||
Basic and diluted | 24,282 | 24,555 | 24,747 | 24,893 | |||||||||||||
The_Company_and_Summary_of_Sig1
The Company and Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Basis of Presentation | Basis of presentation | ||||||||||||
The consolidated financial statements include the accounts of Vocera Communications, Inc. and its wholly owned subsidiaries. All inter-company transactions and balances have been eliminated in consolidation. The accompanying notes are prepared in accordance with accounting principles generally accepted in the United States (GAAP). | |||||||||||||
Consolidation | The consolidated financial statements include the accounts of Vocera Communications, Inc. and its wholly owned subsidiaries. All inter-company transactions and balances have been eliminated in consolidation. | ||||||||||||
Use of Estimates | Use of estimates | ||||||||||||
The preparation of financial statements in conformity with 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, warranty reserves, inventory 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. | |||||||||||||
Cash, Cash Equivalents and Short-term Investments | Cash, cash equivalents and short-term investments | ||||||||||||
The Company’s cash equivalents and short-term investments consist of money market funds, commercial paper, U.S. government agency notes, U.S. Treasury notes, municipal debt and corporate debt. These investments are classified as available-for-sale securities and are carried at fair value with the unrealized gains and losses reported as a component of stockholders’ equity. Management determines the appropriate classification of its investments at the time of purchase and re-evaluates the available-for-sale designations as of each balance sheet date. Investments with an original purchase maturity of less than three months are classified as cash equivalents, all those with longer maturities are classified as short-term investments, which are available-for-sale. | |||||||||||||
Restricted Cash | Restricted cash | ||||||||||||
Restricted cash was $0.1 million and $0.3 million at December 31, 2014 and 2013, respectively, the majority of which is security for a corporate travel card facility and credit card processing services. All restricted cash is classified as current, under prepaids and other current assets on the consolidated balance sheet, based on the underlying terms of the arrangements. | |||||||||||||
Allowance for Doubtful Accounts | Allowance for doubtful accounts | ||||||||||||
The allowance for doubtful accounts reflects the Company’s best estimate of probable losses inherent in the Company’s receivables portfolio determined on the basis of historical experience, specific allowances for known troubled accounts and other currently available evidence. The Company has not experienced significant credit losses from its accounts receivable. The Company performs a regular review of its customers’ payment histories and associated credit risks as it does not require collateral from its customers. | |||||||||||||
The following table presents the changes in the allowance for doubtful accounts: | |||||||||||||
Years ended December 31, | |||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||
Allowance—beginning of period | $ | (6 | ) | $ | — | $ | — | ||||||
Provisions for bad debts | (53 | ) | (29 | ) | — | ||||||||
Recoveries from bad debts | 4 | 13 | — | ||||||||||
Write-offs and other | 2 | 10 | — | ||||||||||
Allowance—end of period | $ | (53 | ) | $ | (6 | ) | $ | — | |||||
Inventories | Inventories | ||||||||||||
Inventories are valued at the lower of standard cost (which approximates actual cost on a first-in, first-out basis) or market (net realizable value or replacement cost). The Company assesses the valuation of inventory and periodically writes down the value for estimated excess and obsolete inventory based upon assumptions about future demand and market conditions. | |||||||||||||
Concentration of credit risk and other risks and uncertainties | Concentration of credit risk and other risks and uncertainties | ||||||||||||
Financial instruments that subject the Company to concentration of credit risk consist primarily of cash, cash equivalents and short-term investments. The Company’s cash and cash equivalents are primarily deposited with high quality financial institutions and in money market funds. Deposits at these institutions and funds may, at times, exceed federally insured limits. Management believes that these financial institutions and funds are financially sound and, accordingly, that minimal credit risk exists. The Company has not experienced any losses on its deposits of cash and cash equivalents. Marketable securities are stated at fair value, and accounted for as available-for-sale within short-term investments. The counterparties to the agreements relating to the Company’s investment securities consist of major corporations, financial institutions and government agencies of high credit standing. | |||||||||||||
The primary hardware component of the Company’s products is currently manufactured by a third-party contractor in Mexico. A significant disruption in the operations of this contractor may impact the production of the Company’s products for a substantial period of time, which could harm the Company’s business, financial condition and results of operations. | |||||||||||||
Concentration of credit risk with respect to trade accounts receivable is considered to be limited due to the diversity of the Company’s customer base and geographic sales areas. At December 31, 2014 and 2013, no customer accounted for 10% or more of accounts receivable. For the years ended December 31, 2014, 2013 and 2012, no customer represented 10% or more of revenue. | |||||||||||||
Property and Equipment | Property and equipment | ||||||||||||
Property and equipment are stated at cost and depreciated on a straight-line basis over the estimated useful economic lives of the assets. Assets generally have useful economic lives of three years except for leasehold improvements, which are amortized using the straight-line method over the shorter of the remaining lease term or the estimated useful life of the related assets. Purchased or developed software also generally has a three year useful economic life, except for major ERP implementations, for which the Company assumes a five year useful economic life. Upon retirement or sale, the cost and related accumulated depreciation and amortization are removed from the consolidated balance sheet and the resulting gain or loss is reflected in operations. Maintenance and repairs which are not considered improvements and do not extend the useful life of the assets are charged to operations as incurred. | |||||||||||||
The Company periodically reviews property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset is impaired or the estimated useful lives are no longer appropriate. Fair value is estimated based on discounted future cash flows. If indicators of impairment exist and the undiscounted projected cash flows associated with such assets are less than the carrying amount of the asset, an impairment loss is recorded to write the asset down to its estimated fair values. To date, the Company has not recorded any impairment charges. | |||||||||||||
Software Development Costs | Software development costs. | ||||||||||||
For internal-use software, the Company capitalizes certain internal and external costs incurred in its acquisition and creation. Capitalized internal-use software is included in property and equipment when development is complete and is amortized on a straight-line basis over the estimated useful life of the related asset, generally three years, except that five years is assumed for major ERP implementations. Based on the authoritative guidance, costs incurred either before or after the period satisfying the capitalization criteria, together with costs incurred for training and maintenance, are expensed as incurred. For the years ended December 31, 2014, 2013 and 2012, the Company capitalized costs of $0.2 million, $2.1 million and $1.1 million, respectively. | |||||||||||||
Goodwill and Intangible Assets | Goodwill and intangible assets | ||||||||||||
The Company allocates the purchase price of any acquisitions to tangible assets and liabilities and identifiable intangible assets acquired. Any residual purchase price is recorded as goodwill. | |||||||||||||
Goodwill | |||||||||||||
Goodwill is tested for impairment at the reporting unit level at least annually as of September 30, or more often if events or changes in circumstances indicate the carrying value may not be recoverable. As of December 31, 2014, no changes in circumstances indicate that goodwill carrying values may not be recoverable. The Company has identified two operating segments (Product and Service) which management also considers to be reporting units. | |||||||||||||
Intangible assets | |||||||||||||
Intangible assets are amortized over their estimated useful lives. Upon completion of development, acquired in-process research and development assets are generally considered amortizable, finite-lived assets and are amortized over their estimated useful lives. Finite-lived intangible assets consist of customer relationships, developed technology, trademarks and non-compete agreements. The Company evaluates intangible assets for impairment by assessing the recoverability of these assets whenever adverse events or changes in circumstances or business climate indicate that expected undiscounted future cash flows related to such intangible assets may not be sufficient to support the net book value of such assets. An impairment is recognized in the period of identification to the extent the carrying amount of an asset exceeds the fair value of such asset. No impairment of intangible assets was recorded in 2014, 2013 or 2012. | |||||||||||||
Stockholders' Equity, Policy | Convertible preferred stock | ||||||||||||
Prior to the Company’s IPO, the Company had issued and outstanding six series of convertible preferred stock. In connection with the Company’s IPO, in April 2012, each share of then-outstanding preferred stock automatically converted into common stock. In the statement of shareholders' equity for the year ended December 31, 2012, this was recorded as non-cash conversion of $53.4 million from preferred stock to common stock. | |||||||||||||
Revenue Recognition, Policy | Revenue recognition | ||||||||||||
The Company derives revenue from the sales of communication badges, smartphones, perpetual software licenses for software that is essential to the functionality of the communication badges, software maintenance, extended product warranty and professional services. The Company also derives revenue from the sale of licenses for software that is not essential to the functionality of the communication badges. Sales tax is excluded from reported total revenue. | |||||||||||||
Revenue is recognized when all of the below criteria are met: | |||||||||||||
• | there is persuasive evidence that an arrangement exists, in the form of a written contract, amendments to that contract, or purchase orders from a third party; | ||||||||||||
• | delivery has occurred or services have been rendered; | ||||||||||||
• | the price is fixed or determinable after evaluating the risk of concession; and | ||||||||||||
• | collectability is reasonably assured based on customer creditworthiness and past history of collection. | ||||||||||||
In arrangements with multiple deliverables, assuming all other revenue criteria are met, the Company recognizes revenue for individual delivered items if they have value to the customer on a standalone basis. The Company allocates arrangement consideration at the inception of the arrangement to all deliverables using the relative selling price method. This method requires us to determine the selling price at which each deliverable could be sold if it were sold regularly on a standalone basis. When available, we use vendor-specific objective evidence ("VSOE") of the selling price. VSOE represents the price charged for a deliverable when it is sold separately, or for a deliverable not yet being sold separately, the price established by management with the relevant authority. The Company has established VSOE of the selling price for our post-installation technical support services and professional services. When VSOE of selling price is not available, third-party evidence ("TPE") of selling price for similar products and services is acceptable; however, our offerings and market strategy differ from those of our competitors, such that the Company cannot obtain sufficient comparable information about third parties' prices. If neither VSOE nor TPE are available, the Company uses its best estimates of selling prices ("BESP"). The Company determines BESP considering factors such as market conditions, sales channels, internal costs and product margin objectives and pricing practices. The Company regularly reviews and update our VSOE and BESP information. | |||||||||||||
The relative selling price method allocates total arrangement consideration proportionally to each deliverable on the basis of its estimated selling price. In addition, the amount recognized for any delivered items cannot exceed that which is contingent upon delivery of any remaining items in the arrangement. | |||||||||||||
A typical sales arrangement involves multiple elements, such as sales of communication badges, perpetual software licenses, professional services and maintenance services which entitle customers to unspecified upgrades, bug fixes, patch releases and telephone support. Revenue from the sale of communication badges and perpetual software licenses is recognized upon shipment or delivery at the customers’ premises as the contractual provisions governing sales of these products do not include any provisions regarding acceptance, performance or general right of return or cancellation or termination provisions adversely affecting revenue recognition. Revenue from the sale of maintenance services on software licenses is recognized over the period during which the services are provided, which is generally one year. Revenue from professional services is recognized either on a fixed fee basis based on milestones or on a time and materials basis as the services are provided, both of which generally take place over a period of two to twelve weeks. | |||||||||||||
For non-essential software arrangements with multiple-deliverables, including license, professional services and maintenance, the Company recognizes license revenue using the residual method of accounting pursuant to relevant software revenue recognition guidance. Under the residual method, revenue is recognized when VSOE for fair value exists for all of the undelivered elements in the arrangement, but does not exist for one or more of the delivered elements in the arrangement. If evidence of fair value cannot be established for the undelivered elements, all of the revenue is deferred until evidence of fair value can be established, or until the items for which evidence of fair value cannot be established are delivered. For maintenance and certain professional services, the Company has established VSOE. The Company's revenue arrangements do not include a general right of return relative to the delivered products. | |||||||||||||
Revenue from sales-type leases | |||||||||||||
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 certain executory costs, including maintenance and extended warranty, ratable over the term of the underlying arrangements. The Company recognizes revenue related to battery refresh 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 year ended December 31, 2014, the Company transferred $1.4 million of lease receivables, recording an immaterial net loss and $0.6 million of new financing liabilities for future performance of executory service obligations. For the year ended December 31, 2013, the Company transferred $2.2 million of lease receivables, recording an immaterial net gain and $0.8 million of new financing liabilities for future performance of executory service obligations. | |||||||||||||
For lease receivables retained as of December 31, 2014 and 2013, the Company recorded $0.9 million and $1.4 million, respectively, of net investment in sales-type leases, equivalent to the minimum lease payments for the delivered product. | |||||||||||||
Revenue Recognition, sales type leases | Revenue from sales-type leases | ||||||||||||
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 certain executory costs, including maintenance and extended warranty, ratable over the term of the underlying arrangements. The Company recognizes revenue related to battery refresh 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 year ended December 31, 2014, the Company transferred $1.4 million of lease receivables, recording an immaterial net loss and $0.6 million of new financing liabilities for future performance of executory service obligations. For the year ended December 31, 2013, the Company transferred $2.2 million of lease receivables, recording an immaterial net gain and $0.8 million of new financing liabilities for future performance of executory service obligations. | |||||||||||||
For lease receivables retained as of December 31, 2014 and 2013, the Company recorded $0.9 million and $1.4 million, respectively, of net investment in sales-type leases, equivalent to the minimum lease payments for the delivered product. | |||||||||||||
Commissions Expense, Policy | Commissions expense | ||||||||||||
Sales commissions are recorded as sales and marketing expense and accrued as a current liability as orders are recorded; thus no contract acquisition costs are capitalized. | |||||||||||||
Shipping and Handling Costs | Shipping and handling costs | ||||||||||||
Shipping and handling costs charged to customers are included in revenue and the associated expense is recorded in cost of products sold in the statements of operations for all periods presented. | |||||||||||||
Research and Development Expenditures | Research and development expenditures | ||||||||||||
Research and development costs are charged to operations as incurred. Software development costs incurred prior to the establishment of technological feasibility are included in research and development and are expensed as incurred. After technological feasibility is established, material software development costs up to general availability of the software will be capitalized and amortized on a straight-line basis over the estimated product life, or based on the ratio of current revenues to total projected product revenues, whichever is greater. To date, the time between the establishment of technological feasibility and general availability has been very short and therefore no significant costs have been incurred. Accordingly, the Company has not capitalized any software development costs. | |||||||||||||
Advertising Costs | Advertising costs | ||||||||||||
Advertising costs are included in sales and marketing expense and are expensed as incurred. Advertising costs for the years ended December 31, 2014, 2013 and 2012 were immaterial. | |||||||||||||
Product Warranties | Product warranties | ||||||||||||
The Company offers warranties on certain products and records a liability for the estimated future costs associated with warranty claims, which is based upon historical experience and the Company’s estimate of the level of future costs. The Company provides for the estimated costs of hardware warranties at the time the related revenue is recognized. Costs are estimated based on historical and projected product failure rates, historical and projected repair costs, and knowledge of specific product failures (if any). The specific hardware warranty includes parts and labor over a period generally ranging from one to three years. The Company provides no warranty for software. The Company regularly re-evaluates its estimates to assess the adequacy of the recorded warranty liabilities and adjust the amounts as necessary. Warranty costs are reflected in the consolidated statement of operations as cost of sales. | |||||||||||||
Product Warranties | The Company provides for the estimated costs of hardware warranties at the time the related revenue is recognized. Costs are estimated based on historical and projected product failure rates, historical and projected repair costs, and knowledge of specific product failures (if any). The specific hardware warranty includes parts and labor over a period generally ranging from one to three years. The Company provides no warranty for software. The Company regularly re-evaluates its estimates to assess the adequacy of the recorded warranty liabilities and adjust the amounts as necessary. | ||||||||||||
A reconciliation of the changes in the Company’s warranty reserve for the years ended December 31, 2014, 2013 and 2012 is as follows: | |||||||||||||
Years ended December 31, | |||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||
Warranty balance at the beginning of the period | $ | 840 | $ | 297 | $ | 983 | |||||||
Warranty expense accrued for shipments during the period | 723 | 1,185 | 540 | ||||||||||
Changes in estimate related to pre-existing warranties | (68 | ) | 536 | (242 | ) | ||||||||
Warranty settlements made | (998 | ) | (1,178 | ) | (984 | ) | |||||||
Warranty balance at the end of the period | $ | 497 | $ | 840 | $ | 297 | |||||||
Stock-based Compensation | Stock-based compensation | ||||||||||||
For options granted to employees, stock-based compensation is measured at grant date based on the fair value of the award and is expensed on a straight-line basis over the requisite service period. The Company determines the grant date fair value of the options using the Black-Scholes option-pricing model. Restricted stock awards and restricted stock units, first awarded in 2012, result in compensation expense, and are recognized on a straight-line basis over the requisite service period, based on the award date closing stock price. Equity instruments issued to non-employees are recorded at their fair value on the measurement date and are subject to periodic adjustment as the underlying equity instruments vest. The fair value of options granted to non-employees is amortized over the vesting period, on a straight-line basis. | |||||||||||||
For stock options issued to employees and non-employees with specific performance criteria, the Company makes a determination at each balance sheet date whether the performance criteria are probable of being achieved. Compensation expense is recognized until such time as the performance criteria are met or when it is probable that the criteria will not be met. | |||||||||||||
The Company will only recognize a tax benefit from stock-based awards in additional paid-in capital if an incremental tax benefit is realized after all other tax attributes currently available to the Company have been utilized. In addition, the Company has elected to account for the indirect effects of stock-based awards on other tax attributes, such as the research tax credit, through its statement of operations. | |||||||||||||
Income Taxes | Income taxes | ||||||||||||
The Company uses the asset and liability method of accounting for income taxes. Under this method, the Company records deferred income taxes based on temporary differences between the financial reporting and tax bases of assets and liabilities and use enacted tax rates and laws that the Company expects will be in effect when they recover those assets or settle those liabilities, as the case may be, to measure those taxes. In cases where the expiration date of tax carryforwards or the projected operating results indicate that realization is not likely, the Company provides for a valuation allowance. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be realized. | |||||||||||||
The Company has deferred tax assets, resulting from net operating losses, research and development credits and temporary differences that may reduce taxable income in future periods. A valuation allowance is required when it is more likely than not that all or a portion of a deferred tax asset will not be realized. In assessing the need for a valuation allowance, the Company estimates future taxable income, considering the feasibility of ongoing tax-planning strategies and the realizability of tax loss carryforwards. Valuation allowances related to deferred tax assets can be impacted by changes in tax laws, changes in statutory tax rates and future taxable income levels. If the Company were to determine that it would be able to realize its deferred tax assets in the future in excess of the net carrying amounts, it would decrease the recorded valuation allowance through an increase to income in the period in which that determination is made. Due to the history of losses the Company has generated in the past, the Company believes that it is not more likely than not that all of the deferred tax assets in the U.S. and Canada can be realized as of December 31, 2014 and 2013, respectively. Accordingly, the Company has recorded a full valuation allowance on its deferred tax assets for these years. | |||||||||||||
At December 31, 2014, the Company had a valuation allowance against net deferred tax assets of $30.1 million. | |||||||||||||
There is inherent uncertainty in evaluating the sustainability of the income tax positions the Company takes on its tax returns. The Company assesses its income tax positions and records tax benefits for all years subject to examination based upon management’s evaluation of the facts, circumstances and information available at the reporting date. For those tax positions where it is more likely than not that a tax benefit will be sustained, the Company has recorded the highest amount of tax benefit with a greater than 50% likelihood of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where it is not more likely than not that a tax benefit will be realizable, no tax benefit has been recognized in the financial statements. | |||||||||||||
The Company includes interest and penalties with income taxes in the accompanying statement of operations. All of the Company’s net operating losses and research credit carryforwards prior to 2014 are subject to tax authority adjustment and all years after 2010 are still subject to tax authority examinations. The Company is currently not subject to any income tax audit examinations by tax authorities in any jurisdictions including U.S. federal, state and local or foreign countries. | |||||||||||||
Foreign Currency Translation | Foreign currency translation | ||||||||||||
The functional currency of the Company’s foreign subsidiaries is the U.S. dollar. Accordingly, monetary assets and liabilities in non-functional currency of these subsidiaries are remeasured using exchange rates in effect at the end of the period. Revenues and costs in local currency are remeasured using average exchange rates for the period, except for costs related to those consolidated balance sheet items that are remeasured using historical exchange rates. The resulting remeasurement gains and losses are included in the Company’s consolidated statements of operations. Translation gains and losses have not been significant to date | |||||||||||||
Segments | Segments | ||||||||||||
Operating segments are components of an enterprise for which separate financial information is available and is evaluated regularly by the Company’s chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company’s chief operating decision maker is the Chief Executive Officer. The Company has two operating segments which are both reportable business segments: (i) Product; and (ii) Service. | |||||||||||||
Comprehensive Income (Loss) | Comprehensive income (loss) | ||||||||||||
For the years ended December 31, 2014, 2013 and 2012, the Company had nominal unrealized gains on available-for-sale securities. There were no other components within other comprehensive income for the years ended December 31, 2014 | |||||||||||||
Related Party Transactions Disclosure | Related party transactions | ||||||||||||
During the years ended December 31, 2014, 2013 and 2012, the Company billed a related party, the University of Chicago Medical Center (UCMC), $0.3 million, $0.5 million and $0.5 million, respectively, for consulting services and technology solutions. One of the Company's board members is the President of UCMC. These transactions were recorded at arms-length prices. During the year ended December 31, 2013, the Company billed a related party, the Hewlett-Packard Company, approximately $9,200 for software and support, at arms’ length prices. Through July of 2013, John N. McMullen, one of the Company’s directors, served as Treasurer & Senior Vice President at Hewlett-Packard. There were no material related party transactions for Hewlett-Packard in the year ended December 31, 2012. | |||||||||||||
Recent Accounting Pronouncements | Recent accounting pronouncements | ||||||||||||
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; early application is not 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. |
The_Company_and_Summary_of_Sig2
The Company and Summary of Significant Accounting Policies The Company and Summary of Significant Accounting Policies(Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Allowance for Doubtful Accounts [Abstract] | |||||||||||||
Allowance for Credit Losses on Financing Receivables [Table Text Block] | The following table presents the changes in the allowance for doubtful accounts: | ||||||||||||
Years ended December 31, | |||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||
Allowance—beginning of period | $ | (6 | ) | $ | — | $ | — | ||||||
Provisions for bad debts | (53 | ) | (29 | ) | — | ||||||||
Recoveries from bad debts | 4 | 13 | — | ||||||||||
Write-offs and other | 2 | 10 | — | ||||||||||
Allowance—end of period | $ | (53 | ) | $ | (6 | ) | $ | — | |||||
Fair_value_of_financial_instru1
Fair value of financial instruments (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||
Schedule of assets and liabilities measured at fair value on a recurring basis, by level | The table below summarizes the Company’s assets that are measured at fair value on a recurring basis, by level, within the fair value hierarchy as of December 31, 2014 and 2013, respectively. There were no liabilities measured at fair value on a recurring basis for these dates. | |||||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||||||
(in thousands) | Level 1 | Level 2 | Total | Level 1 | Level 2 | Total | ||||||||||||||
Assets | ||||||||||||||||||||
Money market funds | $ | 7,795 | $ | — | $ | 7,795 | $ | 22,991 | $ | — | $ | 22,991 | ||||||||
Commercial paper | — | 3,225 | 3,225 | — | 900 | 900 | ||||||||||||||
U.S. government agency securities | — | 5,955 | 5,955 | — | 11,279 | 11,279 | ||||||||||||||
U.S. Treasury securities | — | 4,043 | 4,043 | — | 5,235 | 5,235 | ||||||||||||||
Municipal debt securities | — | 3,924 | 3,924 | — | 4,765 | 4,765 | ||||||||||||||
Corporate debt securities | — | 82,517 | 82,517 | — | 67,055 | 67,055 | ||||||||||||||
Total assets measured at fair value | $ | 7,795 | $ | 99,664 | $ | 107,459 | $ | 22,991 | $ | 89,234 | $ | 112,225 | ||||||||
Cash_Cash_Equivalents_and_Shor1
Cash, Cash Equivalents and Short-term Investments (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Cash and Cash Equivalents [Abstract] | |||||||||||||||||
Schedule of cash, cash equivalents and available-for-sale investments | he following tables display gross unrealized gains and gross unrealized losses for cash, cash equivalents and available-for-sale investments for the periods presented: | ||||||||||||||||
As of December 31, 2014 | |||||||||||||||||
(in thousands) | Amortized | Unrealized | Unrealized | Fair | |||||||||||||
Cost | Gains | Losses | value | ||||||||||||||
Cash and cash equivalents: | |||||||||||||||||
Demand deposits and other cash | $ | 8,802 | $ | — | $ | — | $ | 8,802 | |||||||||
Money market funds | 7,795 | — | — | 7,795 | |||||||||||||
Commercial paper | 1,365 | — | — | 1,365 | |||||||||||||
U.S. government agency securities | 100 | — | — | 100 | |||||||||||||
Corporate debt securities | 4,553 | — | — | 4,553 | |||||||||||||
Total cash and cash equivalents | 22,615 | — | — | 22,615 | |||||||||||||
Short-Term Investments: | |||||||||||||||||
Commercial paper | 1,860 | — | — | 1,860 | |||||||||||||
U.S. government agency securities | 5,856 | 1 | (2 | ) | 5,855 | ||||||||||||
U.S. Treasury securities | 4,042 | 1 | — | 4,043 | |||||||||||||
Municipal debt securities | 3,922 | 2 | — | 3,924 | |||||||||||||
Corporate debt securities | 78,044 | 5 | (85 | ) | 77,964 | ||||||||||||
Total short-term investments | 93,724 | 9 | (87 | ) | 93,646 | ||||||||||||
Total cash, cash equivalents and short-term investments | $ | 116,339 | $ | 9 | $ | (87 | ) | $ | 116,261 | ||||||||
As of December 31, 2013 | |||||||||||||||||
(in thousands) | 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 [Table Text Block] | 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 December 31, 2014 | |||||||||||||||||
Cash and cash equivalents (1) | $ | 22,615 | $ | — | $ | 22,615 | |||||||||||
Short-term investments | 76,917 | 16,729 | 93,646 | ||||||||||||||
Cash, cash equivalents and short-term investments | 99,532 | 16,729 | 116,261 | ||||||||||||||
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 $0.1 million and $0.3 million as of December 31, 2014 and December 31, 2013, respectively, which is classified in prepaids and other current assets on the consolidated balance sheet. |
Income_loss_per_share_Tables
Income (loss) per share (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Schedule of the computation of basic and diluted net income (loss) per share | The following table presents the calculation of basic and diluted net income (loss) per share: | ||||||||||||
Years ended December 31, | |||||||||||||
(in thousands, except for share and per share amounts) | 2014 | 2013 | 2012 | ||||||||||
Numerator: | |||||||||||||
Net (loss) income | $ | (28,297 | ) | $ | (10,465 | ) | $ | 2,893 | |||||
Less: undistributed earnings attributable to participating securities | — | — | (1,366 | ) | |||||||||
Net (loss) income attributable to common stockholders | $ | (28,297 | ) | $ | (10,465 | ) | $ | 1,527 | |||||
Reallocation of undistributed earnings attributable to participating securities | — | — | 32 | ||||||||||
Net (loss) income attributable to common stockholders for diluted net (loss) income per share | $ | (28,297 | ) | $ | (10,465 | ) | $ | 1,559 | |||||
Denominator: | |||||||||||||
Weighted-average shares used to compute basic net income (loss) per common share | 25,329 | 24,621 | 17,979 | ||||||||||
Effect of potentially dilutive securities: | |||||||||||||
Employee stock options and restricted stock units | — | — | 2,547 | ||||||||||
Stock warrants | — | — | 82 | ||||||||||
Weighted average shares used to compute diluted income (loss) per common share | 25,329 | 24,621 | 20,608 | ||||||||||
Net (loss) income per share | |||||||||||||
Net (loss) income per common share - basic and diluted | ($1.12) | ($0.43) | $0.08 | ||||||||||
Schedule of antidilutive securities excluded from computation of earnings per share | For the years ended December 31, 2014, 2013 and 2012, the following securities were not included in the calculation of diluted shares outstanding as the effect would have been anti-dilutive: | ||||||||||||
As of December 31, | |||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||
Options to purchase common stock | 3,573 | 3,335 | 367 | ||||||||||
Common stock subject to repurchase | 5 | 25 | — | ||||||||||
Warrants to purchase common stock | 44 | 44 | — | ||||||||||
Restricted stock units | 981 | 623 | 25 | ||||||||||
Restricted stock awards | — | 12 | — | ||||||||||
Goodwill_and_intangible_assets1
Goodwill and intangible assets (Tables) | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets | Intangible assets | ||||||||||||||||||||||||||
The fair values for acquired intangible assets were determined by management with consideration of, in part, valuations performed by independent valuation specialists. Acquisition-related intangible assets are amortized over the life of the assets on an accelerated basis that approximates the expected economic benefit of the assets. This assumption results in amortization that is higher in earlier periods of the useful life. To date there has been no impairment of the Company's intangible assets. The estimated useful lives and carrying value of acquired intangible assets are as follows: | |||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||||
(in thousands) | Weighted average | Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||||||||
useful life | carrying | amortization | carrying | carrying | amortization | carrying | |||||||||||||||||||||
(years) | amount | amount | amount | amount | |||||||||||||||||||||||
Intangible assets: | |||||||||||||||||||||||||||
Customer relationships | 7 to 9 | $ | 2,520 | $ | 1,722 | $ | 798 | $ | 2,350 | $ | 1,449 | $ | 901 | ||||||||||||||
Developed technology | 4 to 7 | $ | 2,710 | $ | 1,693 | $ | 1,017 | $ | 1,880 | $ | 1,264 | $ | 616 | ||||||||||||||
Trademarks | 4 to 7 | $ | 110 | $ | 63 | $ | 47 | $ | 70 | $ | 43 | $ | 27 | ||||||||||||||
Non-compete Agreements | 2 to 4 | 460 | 91 | 369 | 70 | 70 | — | ||||||||||||||||||||
Intangible assets - finite life | $ | 5,800 | $ | 3,569 | $ | 2,231 | $ | 4,370 | $ | 2,826 | $ | 1,544 | |||||||||||||||
In-process R&D | n/a | $ | 940 | $ | — | $ | 940 | $ | — | $ | — | $ | — | ||||||||||||||
Intangible assets, net book value | $ | 6,740 | $ | 3,569 | $ | 3,171 | $ | 4,370 | $ | 2,826 | $ | 1,544 | |||||||||||||||
Amortization of intangible assets was $0.8 million, $0.7 million and $0.9 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Amortization of acquired intangible assets is reflected in the cost of revenues for developed technology and in operating expenses for the other intangibles. The estimated future amortization of acquired intangible assets as of December 31, 2014 was as follows: | ||||||||||||||||||||||||||
(in thousands) | Future amortization | ||||||||||||||||||||||||||
2015 | 727 | ||||||||||||||||||||||||||
2016 | 562 | ||||||||||||||||||||||||||
2017 | 394 | ||||||||||||||||||||||||||
2018 | 275 | ||||||||||||||||||||||||||
2019 | 229 | ||||||||||||||||||||||||||
Thereafter | 44 | ||||||||||||||||||||||||||
Future amortization expense | $ | 2,231 | |||||||||||||||||||||||||
Balance_Sheet_Components_Table
Balance Sheet Components (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Balance Sheet Components [Abstract] | |||||||||||||
Inventories | Inventories | ||||||||||||
December 31, | |||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||
Raw materials | $ | 759 | $ | 806 | |||||||||
Finished goods | 2,703 | 4,859 | |||||||||||
Total inventories | $ | 3,462 | $ | 5,665 | |||||||||
Property and Equipment | Property and equipment, net | ||||||||||||
December 31, | |||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||
Computer equipment and software | $ | 8,772 | $ | 7,345 | |||||||||
Furniture, fixtures and equipment | 962 | 924 | |||||||||||
Leasehold improvements | 2,298 | 2,125 | |||||||||||
Manufacturing tools and equipment | 3,795 | 3,081 | |||||||||||
Construction in process | 122 | 555 | |||||||||||
Property and equipment, at cost | 15,949 | 14,030 | |||||||||||
Less: Accumulated depreciation | (10,827 | ) | (8,665 | ) | |||||||||
Property and equipment, net | $ | 5,122 | $ | 5,365 | |||||||||
Depreciation and amortization expense for property and equipment for the years ended December 31, 2014, 2013 and 2012 was $2.2 million, $1.8 million and $1.7 million, respectively. | |||||||||||||
Investment in sales-type leases | 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: | |||||||||||||
December 31, | |||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||
Net minimum lease payments to be received | $ | 1,882 | $ | 2,597 | |||||||||
Less: Unearned interest income and executory revenue portion | (962 | ) | (1,167 | ) | |||||||||
Net investment in sales-type leases | 920 | 1,430 | |||||||||||
Less: Current portion | (564 | ) | (620 | ) | |||||||||
Non-current net investment in sales-type leases | $ | 356 | $ | 810 | |||||||||
There were no allowances for doubtful accounts on these leases as of December 31, 2014 and 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. | |||||||||||||
Future Minimum Lease Payments for sales-type Leases | The minimum lease payments expected for future years under sales-type leases as of December 31, 2014 were as follows: | ||||||||||||
(in thousands) | Future lease payments | ||||||||||||
2015 | $ | 877 | |||||||||||
2016 | 705 | ||||||||||||
2017 | 291 | ||||||||||||
2018 | 9 | ||||||||||||
Thereafter | — | ||||||||||||
Total | $ | 1,882 | |||||||||||
Accrued Liabilities | Accrued payroll, restructuring and other current liabilities | ||||||||||||
December 31, | |||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||
Payroll and related expenses | $ | 7,009 | $ | 5,065 | |||||||||
Accrued payables | 1,715 | 2,259 | |||||||||||
Deferred rent, current portion | 299 | 490 | |||||||||||
Lease financing, current portion | 645 | 528 | |||||||||||
Product warranty | 497 | 840 | |||||||||||
Customer prepayments | 283 | 281 | |||||||||||
Sales and use tax payable | 293 | 259 | |||||||||||
Other | 122 | 119 | |||||||||||
Total accrued payroll and other current liabilities | $ | 10,863 | $ | 9,841 | |||||||||
Included in payroll and related expenses above is $0.2 million of accrued severance-related restructuring charges that will be paid by March 31, 2015. During the fourth quarter of 2014, the Company initiated a restructuring plan which resulted in $0.7 million of severance charges, of which $0.1 million was recorded to cost of revenue and $0.6 million was recorded to operating expenses. | |||||||||||||
Product Warranty Disclosure | The Company provides for the estimated costs of hardware warranties at the time the related revenue is recognized. Costs are estimated based on historical and projected product failure rates, historical and projected repair costs, and knowledge of specific product failures (if any). The specific hardware warranty includes parts and labor over a period generally ranging from one to three years. The Company provides no warranty for software. The Company regularly re-evaluates its estimates to assess the adequacy of the recorded warranty liabilities and adjust the amounts as necessary. | ||||||||||||
A reconciliation of the changes in the Company’s warranty reserve for the years ended December 31, 2014, 2013 and 2012 is as follows: | |||||||||||||
Years ended December 31, | |||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||
Warranty balance at the beginning of the period | $ | 840 | $ | 297 | $ | 983 | |||||||
Warranty expense accrued for shipments during the period | 723 | 1,185 | 540 | ||||||||||
Changes in estimate related to pre-existing warranties | (68 | ) | 536 | (242 | ) | ||||||||
Warranty settlements made | (998 | ) | (1,178 | ) | (984 | ) | |||||||
Warranty balance at the end of the period | $ | 497 | $ | 840 | $ | 297 | |||||||
Schedule of Product Warranty Liability | A reconciliation of the changes in the Company’s warranty reserve for the years ended December 31, 2014, 2013 and 2012 is as follows: | ||||||||||||
Years ended December 31, | |||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||
Warranty balance at the beginning of the period | $ | 840 | $ | 297 | $ | 983 | |||||||
Warranty expense accrued for shipments during the period | 723 | 1,185 | 540 | ||||||||||
Changes in estimate related to pre-existing warranties | (68 | ) | 536 | (242 | ) | ||||||||
Warranty settlements made | (998 | ) | (1,178 | ) | (984 | ) | |||||||
Warranty balance at the end of the period | $ | 497 | $ | 840 | $ | 297 | |||||||
Commitments_Tables
Commitments (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Schedule of Future Minimum Rental Payments for Operating Leases | Future minimum lease payments at December 31, 2014 under non-cancelable operating leases are as follows: | |||
(in thousands) | Operating | |||
leases | ||||
2015 | 1,764 | |||
2016 | 610 | |||
2017 | 107 | |||
Total minimum lease payments | $ | 2,481 | ||
Common_stock_Tables
Common stock (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||
Schedule of Reserved Shares for Issuance | At December 31, 2014, the Company has reserved shares for issuance of common stock as follows: | ||||||||||||||
Common Shares | |||||||||||||||
Reserved under stock option plans | 622,343 | ||||||||||||||
Warrants to purchase common stock | 44,491 | ||||||||||||||
Total reserved for issuance | 666,834 | ||||||||||||||
Schedule of Stock Option Activity | The following table summarizes the combined stock option activity under the 2000 Plan, the 2006 Plan and the 2012 Plan and non-plan stock option agreements: | ||||||||||||||
Options outstanding | |||||||||||||||
Number | Weighted | Weighted | Aggregate | ||||||||||||
of options | average | average | intrinsic | ||||||||||||
exercise | remaining | value | |||||||||||||
price | contractual term | ||||||||||||||
(in years) | (in thousands) | ||||||||||||||
Outstanding at December 31, 2013 | 3,287,207 | $ | 9.62 | 6.45 | $ | 24,880 | |||||||||
Options granted | 1,055,949 | 11.54 | |||||||||||||
Options exercised | (293,615 | ) | 3.73 | ||||||||||||
Options canceled | (630,917 | ) | 14.59 | ||||||||||||
Outstanding at December 31, 2014 | 3,418,624 | $ | 9.8 | 6.24 | $ | 12,167 | |||||||||
Options vested and expected to vest as of December 31, 2014 | 3,318,085 | $ | 9.72 | 6.15 | $ | 12,100 | |||||||||
Options vested and exercisable as of December 31, 2014 | 2,076,366 | $ | 7.35 | 4.49 | $ | 11,346 | |||||||||
Options, Grants in Period, Wtd Avg Grant Date Fair Value | Using the Black-Scholes option-pricing model, the weighted-average grant-date fair value of options granted to employees during the years ended December 31, 2014, 2013 and 2012 was $4.77 per share, $7.34 per share and $10.19 per share, respectively. Further information regarding the value of employee options vested and exercised during the years ended December 31, 2014, 2013 and 2012 is set forth below. | ||||||||||||||
Years ended December 31, | |||||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||||
Intrinsic value of options exercised during period | $ | 2,997 | $ | 5,896 | $ | 24,846 | |||||||||
Schedule of Valuation Assumptions for Stock Options | The Company uses the Black-Scholes option-pricing model to calculate the fair value of stock options on their grant date. This model requires the following major inputs: the estimated fair value of the underlying common stock, the expected term of the option, the expected volatility of the underlying common stock over the expected life of the option, the risk-free interest rate and expected dividend yield. The following assumptions were used for each respective period for employee stock-based compensation: | ||||||||||||||
Years ended December 31, | |||||||||||||||
2014 | 2013 | 2012 | |||||||||||||
Expected Term (in years) | 5.41 - 5.45 | 5.38 - 5.43 | 5.23 - 5.60 | ||||||||||||
Volatility | 41.4% - 48.2% | 46.7% - 48.1% | 47.9% - 48.7% | ||||||||||||
Risk-free interest rate | 1.59% - 1.78% | 0.81% - 1.80% | 0.72% - 1.03% | ||||||||||||
Dividend yield | 0.00% | 0.00% | 0.00% | ||||||||||||
Schedule of Valuation Assumptions for ESPP | The Company uses the Black-Scholes option-pricing model to calculate the fair value of periodic ESPP offerings on their offer date. The following assumptions were used for each respective period for the ESPP: | ||||||||||||||
Years ended December 31, | |||||||||||||||
2014 | 2013 | 2012 | |||||||||||||
Expected Term (in years) | 0.5 | 0.25 - 0.50 | 0.50 - 0.88 | ||||||||||||
Volatility | 35.9% - 57.7% | 33.3% - 36.0% | 43.2% - 50.0% | ||||||||||||
Risk-free interest rate | 0.05% - 0.10% | 0.05% - 0.13% | 0.14% - 0.18% | ||||||||||||
Dividend yield | 0.00% | 0.00% | 0.00% | ||||||||||||
Summary of the restricted stock activty | A summary of the restricted stock activity for the year ended December 31, 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 | — | — | 823,554 | 11.64 | |||||||||||
Vested | (12,076 | ) | 12.42 | (327,562 | ) | 19.11 | |||||||||
Forfeited | — | — | (188,673 | ) | 16.97 | ||||||||||
Outstanding at December 31, 2014 | — | $ | — | 1,062,590 | $ | 13.79 | |||||||||
Schedule of Share-based Comp Allocation of Period Costs | The following table presents the stock-based compensation allocation of expense (both for employees and non-employees): | ||||||||||||||
Years ended December 31, | |||||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||||
Cost of revenue | $ | 1,178 | $ | 967 | $ | 421 | |||||||||
Research and development | 1,056 | 861 | 449 | ||||||||||||
Sales and marketing | 4,111 | 2,942 | 1,262 | ||||||||||||
General and administrative | 4,739 | 3,897 | 2,100 | ||||||||||||
Total stock-based compensation | $ | 11,084 | $ | 8,667 | $ | 4,232 | |||||||||
Segments_Tables
Segments (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Segment Reporting [Abstract] | |||||||||||||
Summary of the operating segments | The following table presents a summary of the operating segments: | ||||||||||||
Years ended December 31, | |||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||
Revenue | |||||||||||||
Product | $ | 51,095 | $ | 62,393 | $ | 65,028 | |||||||
Service | 44,326 | 40,105 | 35,929 | ||||||||||
Total revenue | 95,421 | 102,498 | 100,957 | ||||||||||
Cost of revenue | |||||||||||||
Product | 18,766 | 21,714 | 21,551 | ||||||||||
Service | 18,470 | 16,595 | 15,070 | ||||||||||
Total cost of revenue | 37,236 | 38,309 | 36,621 | ||||||||||
Gross profit | |||||||||||||
Product | 32,329 | 40,679 | 43,477 | ||||||||||
Service | 25,856 | 23,510 | 20,859 | ||||||||||
Total gross profit | 58,185 | 64,189 | 64,336 | ||||||||||
Operating expenses | 86,264 | 74,749 | 59,440 | ||||||||||
Interest income (expense), net and other | 106 | 204 | (1,376 | ) | |||||||||
(Loss) income before income taxes | $ | (27,973 | ) | $ | (10,356 | ) | $ | 3,520 | |||||
Summary of revenue by product line | The following tables present the Company’s revenue by product line, as well as revenue and long-lived assets by geographic region. | ||||||||||||
Years ended December 31, | |||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||
Revenue | |||||||||||||
Product | |||||||||||||
Device | $ | 37,455 | $ | 46,636 | $ | 47,725 | |||||||
Software | 13,640 | 15,757 | 17,303 | ||||||||||
Total product | 51,095 | 62,393 | 65,028 | ||||||||||
Service | |||||||||||||
Maintenance and support | 35,353 | 31,559 | 26,237 | ||||||||||
Professional services and training | 8,973 | 8,546 | 9,692 | ||||||||||
Total service | 44,326 | 40,105 | 35,929 | ||||||||||
Total revenue | $ | 95,421 | $ | 102,498 | $ | 100,957 | |||||||
Schedule of revenue by geographic region | The Company’s revenue by geographic region, based on customer location, is summarized as follows: | ||||||||||||
Years ended December 31, | |||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||
Revenue | |||||||||||||
United States | $ | 86,007 | $ | 91,763 | $ | 90,108 | |||||||
International | 9,414 | 10,735 | 10,849 | ||||||||||
Total revenue | $ | 95,421 | $ | 102,498 | $ | 100,957 | |||||||
Schedule of Geographic Disclosure of Long-Lived Assets | The Company’s tangible long-lived assets by geographic region, consisting of net property and equipment, are summarized as follows: | ||||||||||||
December 31, | |||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||
Property and equipment, net | |||||||||||||
United States | $ | 4,852 | $ | 5,249 | $ | 3,465 | |||||||
International | 270 | 116 | 166 | ||||||||||
Total property and equipment, net | $ | 5,122 | $ | 5,365 | $ | 3,631 | |||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||||
Components of income (loss) before income tax | The components of (loss) income before income taxes are as follows: | |||||||||||||
Years ended December 31, | ||||||||||||||
(in thousands) | 2014 | 2013 | 2012 | |||||||||||
United States | $ | (28,442 | ) | $ | (10,812 | ) | $ | 3,205 | ||||||
International | 469 | 456 | 315 | |||||||||||
Total (loss) income before income taxes | $ | (27,973 | ) | $ | (10,356 | ) | $ | 3,520 | ||||||
Components of the provision (benefit) for income taxes | The components of the provision for income taxes are as follows: | |||||||||||||
Years ended December 31, | ||||||||||||||
(in thousands) | 2014 | 2013 | 2012 | |||||||||||
Current | ||||||||||||||
Federal | $ | — | $ | — | $ | 7 | ||||||||
State | 14 | (40 | ) | 512 | ||||||||||
Foreign | 204 | 74 | 38 | |||||||||||
218 | 34 | 557 | ||||||||||||
Deferred | ||||||||||||||
Federal | 134 | 60 | 60 | |||||||||||
State | (4 | ) | 4 | 10 | ||||||||||
Foreign | (24 | ) | 11 | — | ||||||||||
106 | 75 | 70 | ||||||||||||
Total income tax provision | $ | 324 | $ | 109 | $ | 627 | ||||||||
Reconciliation of the provision for income taxes at the statutory rate | Reconciliation of the provision for income taxes at the statutory rate to the Company’s provision for income tax is as follows: | |||||||||||||
Years ended December 31, | ||||||||||||||
(in thousands) | 2014 | 2013 | 2012 | |||||||||||
U.S. federal (tax benefit) provision at statutory rate | $ | (9,511 | ) | $ | (3,567 | ) | $ | 1,197 | ||||||
State (tax benefit) income taxes, net of federal benefit | (895 | ) | (338 | ) | 151 | |||||||||
Foreign income taxes at rates other than the US rate | 43 | (28 | ) | (10 | ) | |||||||||
Stock-based compensation | 763 | 549 | 397 | |||||||||||
Change in valuation allowance | 10,203 | 3,911 | (1,494 | ) | ||||||||||
Non-deductible warrant expense | — | — | 625 | |||||||||||
Research and development credits | (466 | ) | (527 | ) | (220 | ) | ||||||||
Other | 187 | 109 | (19 | ) | ||||||||||
Total | $ | 324 | $ | 109 | $ | 627 | ||||||||
Deferred tax assets and liabilities | Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The following table presents the significant components of the Company’s deferred tax assets and liabilities for the periods presented: | |||||||||||||
As of December 31, | ||||||||||||||
(in thousands) | 2014 | 2013 | ||||||||||||
Deferred tax assets | ||||||||||||||
Net operating loss carryforward | $ | 19,190 | $ | 11,873 | ||||||||||
Research and development credits | 3,360 | 2,809 | ||||||||||||
Depreciation and amortization | 650 | 288 | ||||||||||||
Reserves and accruals | 6,900 | 6,060 | ||||||||||||
Total deferred tax assets | 30,100 | 21,030 | ||||||||||||
Valuation allowance | (30,072 | ) | (21,030 | ) | ||||||||||
Net deferred tax assets | 28 | — | ||||||||||||
Deferred tax liabilities | (352 | ) | (216 | ) | ||||||||||
Net deferred tax liabilities | $ | (324 | ) | $ | (216 | ) | ||||||||
Valuation allowance for DTA rollforward [Table Text Block] | The following table displays by contributing factor the changes in the valuation allowance for deferred tax assets since January 1, 2012: | |||||||||||||
Years Ended December 31, | ||||||||||||||
(in thousands) | 2014 | 2013 | 2012 | |||||||||||
Balance at the beginning of the period | $ | 21,030 | $ | 21,193 | $ | 22,687 | ||||||||
Net operating loss carryforwards generated (utilization) | 7,317 | (2,397 | ) | (3,505 | ) | |||||||||
R&D tax credit increase | 551 | 172 | 272 | |||||||||||
Depreciation and amortization increase | 362 | 204 | 29 | |||||||||||
Reserves and accruals increase | 840 | 1,558 | 1,273 | |||||||||||
Deferred tax assets decrease (increase) | (28 | ) | 300 | 437 | ||||||||||
Balance at the end of the period | $ | 30,072 | $ | 21,030 | $ | 21,193 | ||||||||
Changes in the unrecognized tax benefits | The following table reflects changes in the unrecognized tax benefits since January 1, 2013: | |||||||||||||
Years ended December 31, | ||||||||||||||
(in thousands) | 2014 | 2013 | ||||||||||||
Gross amount of unrecognized tax benefits as of the beginning of the period | $ | 1,092 | $ | 1,079 | ||||||||||
Increases related to prior year tax provisions | 25 | 30 | ||||||||||||
Decreases related to prior year tax provisions | — | (239 | ) | |||||||||||
Increases related to current year tax provisions | 148 | 222 | ||||||||||||
Gross amount of unrecognized tax benefits as of the end of the period | $ | 1,265 | $ | 1,092 | ||||||||||
Business_Acquisitions_Tables
Business Acquisitions (Tables) | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Net assets of mVisum, Inc. [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | 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 | ||||
Prana Technologies [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | 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 | |||||
Intangibles | ||||||
Non-compete agreement | 200 | |||||
In-process research and development | 940 | |||||
Goodwill | 2,310 | |||||
Total assets acquired | 3,450 | |||||
Quarterly_results_of_operation1
Quarterly results of operations (unaudited) (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Schedule of Quarterly Financial Information [Table Text Block] | 12. Quarterly results of operations (unaudited) | ||||||||||||||||
The following tables present certain unaudited consolidated quarterly financial information for each of the eight quarters ended December 31, 2014. This quarterly information has been prepared on the same basis as the consolidated financial statements and includes all adjustments necessary to state fairly the information for the periods presented. | |||||||||||||||||
(In thousands, except per share data) | Quarter Ended | ||||||||||||||||
2014 | March 31, | June 30, | September 30, | December 31, | |||||||||||||
Total revenue | $ | 24,676 | $ | 23,019 | $ | 23,124 | $ | 24,602 | |||||||||
Gross profit | $ | 14,872 | $ | 14,070 | $ | 13,535 | $ | 15,708 | |||||||||
Net loss | $ | (6,389 | ) | $ | (7,008 | ) | $ | (7,891 | ) | $ | (7,009 | ) | |||||
Net loss attributable to common stockholders | $ | (6,389 | ) | $ | (7,008 | ) | $ | (7,891 | ) | $ | (7,009 | ) | |||||
Net loss per share attributable to common stockholders: | |||||||||||||||||
Basic and diluted | $ | (0.26 | ) | $ | (0.28 | ) | $ | (0.31 | ) | $ | (0.27 | ) | |||||
Weighted average shares used to compute net income (loss) per share attributable to common stockholders: | |||||||||||||||||
Basic and diluted | 25,047 | 25,246 | 25,432 | 25,572 | |||||||||||||
Quarter Ended | |||||||||||||||||
2013 | March 31, | June 30, | September 30, | December 31, | |||||||||||||
Total revenue | $ | 22,413 | $ | 25,296 | $ | 26,067 | $ | 28,722 | |||||||||
Gross profit | $ | 13,719 | $ | 15,790 | $ | 16,277 | $ | 18,403 | |||||||||
Net loss | $ | (3,499 | ) | $ | (2,022 | ) | $ | (3,102 | ) | $ | (1,842 | ) | |||||
Net loss attributable to common stockholders | $ | (3,499 | ) | $ | (2,022 | ) | $ | (3,102 | ) | $ | (1,842 | ) | |||||
Net loss per share attributable to common stockholders: | |||||||||||||||||
Basic and diluted | $ | (0.14 | ) | $ | (0.08 | ) | $ | (0.13 | ) | $ | (0.07 | ) | |||||
Weighted average shares used to compute net loss per common share: | |||||||||||||||||
Basic and diluted | 24,282 | 24,555 | 24,747 | 24,893 | |||||||||||||
The following tables present certain unaudited consolidated quarterly financial information for each of the eight quarters ended December 31, 2014. This quarterly information has been prepared on the same basis as the consolidated financial statements and includes all adjustments necessary to state fairly the information for the periods presented. | |||||||||||||||||
(In thousands, except per share data) | Quarter Ended | ||||||||||||||||
2014 | March 31, | June 30, | September 30, | December 31, | |||||||||||||
Total revenue | $ | 24,676 | $ | 23,019 | $ | 23,124 | $ | 24,602 | |||||||||
Gross profit | $ | 14,872 | $ | 14,070 | $ | 13,535 | $ | 15,708 | |||||||||
Net loss | $ | (6,389 | ) | $ | (7,008 | ) | $ | (7,891 | ) | $ | (7,009 | ) | |||||
Net loss attributable to common stockholders | $ | (6,389 | ) | $ | (7,008 | ) | $ | (7,891 | ) | $ | (7,009 | ) | |||||
Net loss per share attributable to common stockholders: | |||||||||||||||||
Basic and diluted | $ | (0.26 | ) | $ | (0.28 | ) | $ | (0.31 | ) | $ | (0.27 | ) | |||||
Weighted average shares used to compute net income (loss) per share attributable to common stockholders: | |||||||||||||||||
Basic and diluted | 25,047 | 25,246 | 25,432 | 25,572 | |||||||||||||
Quarter Ended | |||||||||||||||||
2013 | March 31, | June 30, | September 30, | December 31, | |||||||||||||
Total revenue | $ | 22,413 | $ | 25,296 | $ | 26,067 | $ | 28,722 | |||||||||
Gross profit | $ | 13,719 | $ | 15,790 | $ | 16,277 | $ | 18,403 | |||||||||
Net loss | $ | (3,499 | ) | $ | (2,022 | ) | $ | (3,102 | ) | $ | (1,842 | ) | |||||
Net loss attributable to common stockholders | $ | (3,499 | ) | $ | (2,022 | ) | $ | (3,102 | ) | $ | (1,842 | ) | |||||
Net loss per share attributable to common stockholders: | |||||||||||||||||
Basic and diluted | $ | (0.14 | ) | $ | (0.08 | ) | $ | (0.13 | ) | $ | (0.07 | ) | |||||
Weighted average shares used to compute net loss per common share: | |||||||||||||||||
Basic and diluted | 24,282 | 24,555 | 24,747 | 24,893 | |||||||||||||
The_Company_and_Summary_of_Sig3
The Company and Summary of Significant Accounting Policies Narrative (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Sale of Stock [Line Items] | ||||
No. of healthcare and non healthcare installations worldwide | 1,300 | |||
Document Period End Date | 31-Dec-14 | |||
Maintenance services revenue recognition period | 1 year | |||
Accumulated deficit | ($92,730,000) | ($64,433,000) | ||
Cash, Cash Equivalents, and Short-term Investments | 116,300,000 | |||
Restricted cash | 100,000 | 300,000 | ||
Capitalized Computer Software, Additions | 200,000 | 2,100,000 | 1,100,000 | |
No. of revenue customers with 10% or greater concentration | 0 | 0 | 0 | |
No of Acct Rec customers with 10% or greater concentration | 0 | 0 | ||
Impairment of Intangibles (Excl. Goodwill) | 0 | 0 | 0 | |
Goodwill, Impairment Loss | 0 | 0 | 0 | |
No of operating segments | 2 | |||
Deferred Tax Assets, Valuation Allowance | 30,072,000 | 21,030,000 | 21,193,000 | 22,687,000 |
Maximum | ||||
Sale of Stock [Line Items] | ||||
Professional service revenue recognition period | P12W | |||
Product Liability, Warranty Period | 3 years | |||
Minimum | ||||
Sale of Stock [Line Items] | ||||
Professional service revenue recognition period | P2W | |||
Product Liability, Warranty Period | 1 year | |||
Restricted stock units | ||||
Sale of Stock [Line Items] | ||||
Vesting percentage on 1st anniversary of grant (percent) | 33.33% | |||
Vesting percentage on 2nd anniversary of grant (percent) | 33.33% | |||
Vesting percentage on 3rd anniversary of grant (percent) | 33.34% | |||
Director | Restricted Stock [Member] | ||||
Sale of Stock [Line Items] | ||||
Vesting percentage on 1st anniversary of grant (percent) | 50.00% | |||
Vesting percentage on 2nd anniversary of grant (percent) | 50.00% | |||
Sharon O'Keefe [Member] | Service | University of Chicago Medical Center [Member] | ||||
Sale of Stock [Line Items] | ||||
Related Party Transaction, Amounts of Transaction | 300,000 | 500,000 | 500,000 | |
John N. McMullen [Member] | Service | Hewlett-Packard Company [Member] | ||||
Sale of Stock [Line Items] | ||||
Related Party Transaction, Amounts of Transaction | $0 | $9,200 | $0 | |
Property and Equipment, excluding LHI and major ERP [Member] | ||||
Sale of Stock [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 3 years | |||
Not major ERP implementation [Member] | Software and Software Development Costs [Member] | ||||
Sale of Stock [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 3 years | |||
Major ERP implementation [Member] | Software and Software Development Costs [Member] | ||||
Sale of Stock [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 5 years |
The_Company_and_Summary_of_Sig4
The Company and Summary of Significant Accounting Policies Sales type lease data (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Accounting Policies [Abstract] | ||
sales type capital leases transfered to banks | $1,400,000 | $2,200,000 |
financing liability for future executory services on transfered leases | 600,000 | 800,000 |
Capital Leases, Net Investment in Sales Type Leases | $920,000 | $1,430,000 |
The_Company_and_Summary_of_Sig5
The Company and Summary of Significant Accounting Policies Allowance for Doubtful Accounts (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Changes in Allowance for Doubtful Accounts [Roll Forward] | |||
Allowance—beginning of period | ($6) | $0 | $0 |
Provisions for bad debts | -53 | -29 | 0 |
Allowance for Loan and Lease Loss, Recovery of Bad Debts | 4 | 13 | 0 |
Write-offs and other | 2 | 10 | 0 |
Allowance—end of period | ($53) | ($6) | $0 |
The_Company_and_Summary_of_Sig6
The Company and Summary of Significant Accounting Policies The Company and significant accounting policies - Convertible preferred stock (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2012 |
Conversion of Stock, Amount Converted | ($53,356) |
The_Company_and_Summary_of_Sig7
The Company and Summary of Significant Accounting Policies Background (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
No. of healthcare and non healthcare installations worldwide | 1,300 |
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 $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash and Cash Equivalents, Fair Value Disclosure | $22,615 | $39,652 |
Available-for-sale Securities | 93,646 | 88,024 |
Fair Value, Measurements, Recurring | Level 1 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total assets measured at fair value | 7,795 | 22,991 |
Fair Value, Measurements, Recurring | Level 2 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total assets measured at fair value | 99,664 | 89,234 |
Fair Value, Measurements, Recurring | Total | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total assets measured at fair value | 107,459 | 112,225 |
Fair Value, Measurements, Recurring | Money Market Funds [Member] | Level 1 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 7,795 | 22,991 |
Fair Value, Measurements, Recurring | Money Market Funds [Member] | Level 2 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | 0 |
Fair Value, Measurements, Recurring | Money Market Funds [Member] | Total | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 7,795 | 22,991 |
Fair Value, Measurements, Recurring | Commercial paper | Level 1 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Available-for-sale Securities | 0 | 0 |
Fair Value, Measurements, Recurring | Commercial paper | Level 2 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Available-for-sale Securities | 3,225 | 900 |
Fair Value, Measurements, Recurring | Commercial paper | Total | ||
Assets, Fair Value Disclosure [Abstract] | ||
Available-for-sale Securities | 3,225 | 900 |
Fair Value, Measurements, Recurring | U.S. government agency securities | Level 1 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Available-for-sale Securities | 0 | 0 |
Fair Value, Measurements, Recurring | U.S. government agency securities | Level 2 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Available-for-sale Securities | 5,955 | 11,279 |
Fair Value, Measurements, Recurring | U.S. government agency securities | Total | ||
Assets, Fair Value Disclosure [Abstract] | ||
Available-for-sale Securities | 5,955 | 11,279 |
Fair Value, Measurements, Recurring | US Treasury Securities [Member] | Level 1 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Available-for-sale Securities | 0 | 0 |
Fair Value, Measurements, Recurring | US Treasury Securities [Member] | Level 2 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Available-for-sale Securities | 4,043 | 5,235 |
Fair Value, Measurements, Recurring | US Treasury Securities [Member] | Total | ||
Assets, Fair Value Disclosure [Abstract] | ||
Available-for-sale Securities | 4,043 | 5,235 |
Fair Value, Measurements, Recurring | US States and Political Subdivisions Debt Securities [Member] | Level 1 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Available-for-sale Securities | 0 | 0 |
Fair Value, Measurements, Recurring | US States and Political Subdivisions Debt Securities [Member] | Level 2 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Available-for-sale Securities | 3,924 | 4,765 |
Fair Value, Measurements, Recurring | US States and Political Subdivisions Debt Securities [Member] | Total | ||
Assets, Fair Value Disclosure [Abstract] | ||
Available-for-sale Securities | 3,924 | 4,765 |
Fair Value, Measurements, Recurring | Corporate Debt Securities [Member] | Level 1 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Available-for-sale Securities | 0 | 0 |
Fair Value, Measurements, Recurring | Corporate Debt Securities [Member] | Level 2 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Available-for-sale Securities | 82,517 | 67,055 |
Fair Value, Measurements, Recurring | Corporate Debt Securities [Member] | Total | ||
Assets, Fair Value Disclosure [Abstract] | ||
Available-for-sale Securities | $82,517 | $67,055 |
Cash_Cash_Equivalents_and_Shor2
Cash, Cash Equivalents and Short-term Investments (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Cash and cash equivalents: | ||
Amortized Cost | $22,615 | $39,652 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair value | 22,615 | 39,652 |
Short-Term Investments: | ||
Amortized Cost | 93,724 | 87,998 |
Unrealized Gains | 9 | 34 |
Unrealized Losses | -87 | -8 |
Fair value | 93,646 | 88,024 |
Cash, Cash Equivalents, and Short-term Investments [Abstract] | ||
Amortized Cost | 116,339 | 127,650 |
Unrealized Gains | 9 | 34 |
Unrealized Losses | -87 | -8 |
Fair value | 116,261 | 127,676 |
Commercial paper | ||
Short-Term Investments: | ||
Amortized Cost | 1,860 | 750 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair value | 1,860 | 750 |
U.S. government agency securities | ||
Short-Term Investments: | ||
Amortized Cost | 5,856 | 11,275 |
Unrealized Gains | 1 | 5 |
Unrealized Losses | -2 | -1 |
Fair value | 5,855 | 11,279 |
US Treasury Securities [Member] | ||
Short-Term Investments: | ||
Amortized Cost | 4,042 | 5,233 |
Unrealized Gains | 1 | 2 |
Unrealized Losses | 0 | 0 |
Fair value | 4,043 | 5,235 |
US States and Political Subdivisions Debt Securities [Member] | ||
Short-Term Investments: | ||
Amortized Cost | 3,922 | 4,758 |
Unrealized Gains | 2 | 7 |
Unrealized Losses | 0 | 0 |
Fair value | 3,924 | 4,765 |
Corporate Debt Securities [Member] | ||
Short-Term Investments: | ||
Amortized Cost | 78,044 | 65,982 |
Unrealized Gains | 5 | 20 |
Unrealized Losses | -85 | -7 |
Fair value | 77,964 | 65,995 |
Demand deposis and other cash | ||
Cash and cash equivalents: | ||
Amortized Cost | 8,802 | 15,451 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair value | 8,802 | 15,451 |
Money Market Funds [Member] | ||
Cash and cash equivalents: | ||
Amortized Cost | 7,795 | 22,991 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair value | 7,795 | 22,991 |
Commercial paper | ||
Cash and cash equivalents: | ||
Amortized Cost | 1,365 | 150 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair value | 1,365 | 150 |
Corporate Debt Securities [Member] | ||
Cash and cash equivalents: | ||
Amortized Cost | 4,553 | 1,060 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair value | 4,553 | 1,060 |
U.S. government agency securities | ||
Cash and cash equivalents: | ||
Amortized Cost | 100 | |
Unrealized Gains | 0 | |
Unrealized Losses | 0 | |
Fair value | $100 |
Cash_Cash_Equivalents_and_Shor3
Cash, Cash Equivalents and Short-term Investments Classification by contractual maturity of cash, cash equivalents and short-term investments (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Restricted Cash and Cash Equivalents, Current | $100 | $300 |
Cash and Cash Equivalents, Fair Value Disclosure | 22,615 | 39,652 |
Available-for-sale Securities | 93,646 | 88,024 |
Cash, Cash Equivalents And Short Term Investments, Fair Value Disclosure | 116,261 | 127,676 |
Maturity up to one year [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 22,615 | 39,652 |
Available-for-sale Securities | 76,917 | 71,464 |
Cash, Cash Equivalents And Short Term Investments, Fair Value Disclosure | 99,532 | 111,116 |
maturity between 1 and 2 years [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | 0 |
Available-for-sale Securities | 16,729 | 16,560 |
Cash, Cash Equivalents And Short Term Investments, Fair Value Disclosure | $16,729 | $16,560 |
Cash_Cash_Equivalents_and_Shor4
Cash, Cash Equivalents and Short-term Investments Restricted cash (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Cash and Cash Equivalents - Restricted Cash [Abstract] | ||
Restricted cash | $100 | $300 |
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 | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Basic and diluted earnings per share | |||||||||||
Annual dividend rate, conv. preferred stock | 8.00% | ||||||||||
participating securities | 2,364 | 26,463 | 2,364 | 26,463 | |||||||
Numerator: | |||||||||||
Net (loss) income | ($7,009) | ($7,891) | ($7,008) | ($6,389) | ($1,842) | ($3,102) | ($2,022) | ($3,499) | ($28,297) | ($10,465) | $2,893 |
Undistributed Earnings (Loss) Allocated to Participating Securities, Basic | 0 | 0 | -1,366 | ||||||||
Net (loss) income attributable to common stockholders | -7,009 | -7,891 | -7,008 | -6,389 | -1,842 | -3,102 | -2,022 | -3,499 | -28,297 | -10,465 | 1,527 |
Undistributed Earnings (Loss) Allocated to Participating Securities, Diluted | 0 | 0 | 32 | ||||||||
Net Income (Loss) Available to Common Stockholders, Diluted | ($28,297) | ($10,465) | $1,559 | ||||||||
Denominator: | |||||||||||
Weighted-average shares used to compute basic net income (loss) per common share | 25,329,000 | 24,621,000 | 17,979,000 | ||||||||
Employee stock options and restricted stock units | 0 | 0 | 2,547,000 | ||||||||
Stock warrants | 0 | 0 | 82,000 | ||||||||
Weighted average shares used to compute diluted income (loss) per common share | 25,329,000 | 24,621,000 | 20,608,000 | ||||||||
Net (loss) income per share | |||||||||||
Basic and diluted | ($0.27) | ($0.31) | ($0.28) | ($0.26) | ($0.07) | ($0.13) | ($0.08) | ($0.14) | ($1.12) | ($0.43) | $0.08 |
Income_loss_per_share_Schedule1
Income (loss) per share Schedule of antidilutive securities excluded from computation of earnings per share (Details) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Options 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 | 3,573 | 3,335 | 367 |
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 | 5 | 25 | 0 |
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 | 0 |
Restricted stock units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 981 | 623 | 25 |
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 |
Goodwill_and_intangible_assets2
Goodwill and intangible assets Schedule of Finite-Lived Intangible Assets (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | $5,800,000 | $4,370,000 | |
Accumulated amortization | 3,569,000 | 2,826,000 | |
Finite-Lived Intangible Assets, Net | 2,231,000 | 1,544,000 | |
Intangible Assets, Gross (Excluding Goodwill) | 6,740,000 | 4,370,000 | |
Intangible assets, net | 3,171,000 | 1,544,000 | |
Goodwill [Abstract] | |||
Goodwill | 9,988,000 | 5,575,000 | |
Impairment and Amortization [Abstract] | |||
Goodwill, Impairment Loss | 0 | 0 | 0 |
Impairment of Intangibles (Excl. Goodwill) | 0 | 0 | 0 |
Amortization expense | 800,000 | 700,000 | 900,000 |
In Process Research and Development [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Indefinite-Lived Intangible Assets (Excluding Goodwill) | 940,000 | 0 | |
Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 2,520,000 | 2,350,000 | |
Accumulated amortization | 1,722,000 | 1,449,000 | |
Finite-Lived Intangible Assets, Net | 798,000 | 901,000 | |
Technology-Based Intangible Assets [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 2,710,000 | 1,880,000 | |
Accumulated amortization | 1,693,000 | 1,264,000 | |
Finite-Lived Intangible Assets, Net | 1,017,000 | 616,000 | |
Trademarks and Trade Names [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 110,000 | 70,000 | |
Accumulated amortization | 63,000 | 43,000 | |
Finite-Lived Intangible Assets, Net | 47,000 | 27,000 | |
Non-compete Agreements | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 460,000 | 70,000 | |
Accumulated amortization | 91,000 | 70,000 | |
Finite-Lived Intangible Assets, Net | 369,000 | 0 | |
Net assets of mVisum, Inc. [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill, Acquired During Period | $4,400,000 | ||
Minimum [Member] | Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life (years) | 7 years | ||
Minimum [Member] | Technology-Based Intangible Assets [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life (years) | 4 years | ||
Minimum [Member] | Trademarks and Trade Names [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life (years) | 4 years | ||
Minimum [Member] | Non-compete Agreements | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life (years) | 2 years | ||
Maximum [Member] | Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life (years) | 9 years | ||
Maximum [Member] | Technology-Based Intangible Assets [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life (years) | 7 years | ||
Maximum [Member] | Trademarks and Trade Names [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life (years) | 7 years | ||
Maximum [Member] | Non-compete Agreements | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life (years) | 4 years |
Goodwill_and_intangible_assets3
Goodwill and intangible assets Future amortization schedule (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Goodwill and intangible assets [Abstract] | ||
2014 | $727 | |
2015 | 562 | |
2016 | 394 | |
2017 | 275 | |
2018 | 229 | |
Thereafter | 44 | |
Finite-Lived Intangible Assets, Net | $2,231 | $1,544 |
Balance_Sheet_Components_Inven
Balance Sheet Components Inventories (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventory, Net [Abstract] | ||
Raw materials | $759 | $806 |
Finished goods | 2,703 | 4,859 |
Total inventories | $3,462 | $5,665 |
Balance_Sheet_Components_Prope
Balance Sheet Components Property and Equipment (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and equipment, gross | $15,949 | $14,030 | |
Less: Accumulated depreciation | -10,827 | -8,665 | |
Property and equipment, net | 5,122 | 5,365 | 3,631 |
Computer equipment and software | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and equipment, gross | 8,772 | 7,345 | |
Furniture, fixtures and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and equipment, gross | 962 | 924 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and equipment, gross | 2,298 | 2,125 | |
Manufacturing tools and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and equipment, gross | 3,795 | 3,081 | |
Construction in process | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and equipment, gross | $122 | $555 |
Balance_Sheet_Components_Depre
Balance Sheet Components Depreciation, depletion, amortization (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property-Equipment Deepreciation and amortization [Abstract] | |||
Depreciation and amortization | $2.20 | $1.80 | $1.70 |
Balance_Sheet_Components_Balan
Balance Sheet Components Balance sheet components - investment in sales type leases (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Investment in Sales Type Leases | ||
Capital Leases, Net Investment in Sales Type Leases, Minimum Payments to be Received | 1,882 | $2,597 |
Capital Leases, Net Investment in Sales Type Leases, Deferred Income | -962 | -1,167 |
Capital Leases, Net Investment in Sales Type Leases | 920 | 1,430 |
Capital Leases, Lessor Balance Sheet, Net Investment in Sales Type Leases, Current | -564 | -620 |
Capital Leases, Lessor Balance Sheet, Net Investment in Sales Type Leases, Noncurrent | 356 | $810 |
Minimum | ||
Lease Term [Abstract] | ||
Lessor Leasing Arrangements, Operating Leases, Term of Contract | 1 year 3 months | |
Maximum | ||
Lease Term [Abstract] | ||
Lessor Leasing Arrangements, Operating Leases, Term of Contract | 4 years |
Balance_Sheet_Components_Balan1
Balance Sheet Components Balance sheet components - sales type lease Future Payments (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Lessors schedule of future minimum lease payments [Line Items] | ||
Capital Leases, Future Minimum Payments Due, Next Twelve Months | $877 | |
Capital Leases, Future Minimum Payments Due in Two Years | 705 | |
Capital Leases, Future Minimum Payments Due in Three Years | 291 | |
Capital Leases, Future Minimum Payments Due in Four Years | 9 | |
capital leases minimum payments after four years | 0 | |
Capital Leases, Net Investment in Sales Type Leases, Minimum Payments to be Received | $1,882 | $2,597 |
Balance_Sheet_Components_Accru
Balance Sheet Components Accrued Liabilities (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Balance Sheet Components [Abstract] | |||
Product Warranty Accrual, Payments | $998 | $1,178 | $984 |
Accrued Liabilities, Current [Abstract] | |||
Payroll and related expenses | 7,009 | 5,065 | |
Accrued payables | 1,715 | 2,259 | |
Deferred rent, current portion | 299 | 490 | |
Lease financing, current portion | 645 | 528 | |
Product warranty | 497 | 840 | |
Customer Refund Liability, Current | 283 | 281 | |
Sales and use tax payable | 293 | 259 | |
Other | 122 | 119 | |
Total accrued payroll and other current liabilities | $10,863 | $9,841 |
Balance_Sheet_Components_Balan2
Balance Sheet Components Balance sheet components Product Warranties (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
movement in std product warranty liability [Roll Forward] | |||
Warranty balance at the beginning of the period | $840 | $297 | $983 |
Warranty expense accrued for shipments during the period | 723 | 1,185 | 540 |
Changes in estimate related to pre-existing warranties | -68 | 536 | -242 |
Warranty settlements made | -998 | -1,178 | -984 |
Warranty balance at the end of the period | $497 | $840 | $297 |
Balance_Sheet_Components_Balan3
Balance Sheet Components Balance Sheet Components Accrued Restructuring (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve, Current | $200,000 | ||
Restructuring Charges | 556,000 | 0 | 0 |
Restructuring Reserve, Period Increase (Decrease) | $700,000 | ||
Other Restructuring [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Caption that Includes Restructuring Charges | 100000 | ||
Restructuring Charges [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Caption that Includes Restructuring Charges | 556000 |
Commitments_Schedule_of_Future
Commitments Schedule of Future Minimum Rental Payments for Operating Leases (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Operating Leases, Rent Expense, Net [Abstract] | |||
Rent expense | $2,000,000 | $2,000,000 | $1,900,000 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
2015 | 1,764,000 | ||
2016 | 610,000 | ||
2017 | 107,000 | ||
Total minimum lease payments | 2,481,000 | ||
Inventories | |||
Unrecorded Unconditional Purchase Obligation [Line Items] | |||
Non-cancelable purchase commitment with a third party manufacturer to purchase inventory | $1,900,000 | $3,100,000 |
Common_stock_Details
Common stock (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, par value | $0.00 | $0.00 |
Common_stock_Reserved_shares_f
Common stock (Reserved shares for issuance of common stock) (Details) | Dec. 31, 2014 |
Class of Stock [Line Items] | |
Common stock (in shares) | 666,834 |
Options to purchase common stock | |
Class of Stock [Line Items] | |
Common stock (in shares) | 622,343 |
Stock warrants | |
Class of Stock [Line Items] | |
Common stock (in shares) | 44,491 |
Common_stock_Incentive_stock_o
Common stock (Incentive stock option plans) (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Class of Stock [Line Items] | |
Number of equity incentive plans | 3 |
Stock options | 2012 Plan | |
Class of Stock [Line Items] | |
Vesting period (in years) | 4 years |
Award vesting percentage at end of one year (percent) | 25.00% |
Expiration period of granted options (in years) | 10 years |
Common_stock_Early_exercise_of
Common stock (Early exercise of stock options) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | |||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Unvested shares subject to repurchase rights at original issuance price (in shares) | 2,358 | 14,360 | 48,260 |
Exercise of unvested stock options included in accrued liabilities | $12 | $100 | $200 |
Common_stock_Options_outstandi
Common stock (Options outstanding) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Change in Fair Value Of Warrant Liability Recorded in Other Income (Expense) | ($1,600,000) | ||
Weighted-average grant-date fair value (in dollars per share) | $4.77 | $7.34 | $10.19 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest [Abstract] | |||
Options vested and expected to vest (Number of options) | 3,318,085 | ||
Options vested and expected to vest (Wtd avg exercise price) | $9.72 | ||
Options vested and expected to vest (Wtd avg remaining contractual term) | 6 years 1 month 24 days | ||
Options vested and expected to vest (Aggregate intrinsic value) | 12,100,000 | ||
Options vested and exercisable (Number of options) | 2,076,366 | ||
Options vested and exercisable (Wtd avg exercise price) | $7.35 | ||
Options vested and exercisable (Wtd avg remaining contractual term) | 4 years 5 months 27 days | ||
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized net compensation cost related to options | 6,400,000 | ||
Weighted average period (in years) | 2 years 9 months | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Number of Options, Outstanding, Beginning balance | 3,287,207 | ||
Options granted | 1,055,949 | ||
Options exercised | -293,615 | ||
Number of Options, Outstanding, Ending balance | 3,418,624 | 3,287,207 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |||
Weighted Average Exercise Price, Outstanding, Beginning balance | $9.62 | ||
Wtd Avg Remaining Contractual Term, Options Outstanding | 6 years 2 months 27 days | 6 years 5 months 12 days | |
Options granted | $11.54 | ||
Options exercised | $3.73 | ||
Wtd Avg Remaining Contractual Term, Options Outstanding | 6 years 2 months 27 days | 6 years 5 months 12 days | |
Weighted Average Exercise Price, Outstanding, Ending balance | $9.80 | $9.62 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period | -630,917 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period, Weighted Average Exercise Price | $14.59 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Aggregate Intrinsic Value [Abstract] | |||
Aggregate Intrinsic Value, Options Outstanding | $12,167,000 | $24,880,000 |
Common_stock_Fair_value_option
Common stock (Fair value option pricing model) (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Options - intrinsic value and grant date fair value [Abstract] | |||
Options vested and exercisable (Aggregate intrinsic value) | $11,346 | ||
Weighted-average grant-date fair value (in dollars per share) | $4.77 | $7.34 | $10.19 |
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield | 0.00% | 0.00% | 0.00% |
Stock options | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life (years) | 5 years 4 months 28 days | 5 years 4 months 17 days | 5 years 2 months 23 days |
Expected Volatility Rate | 41.40% | 46.70% | 47.90% |
Risk-free interest rate | 1.59% | 0.81% | 0.72% |
Stock options | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life (years) | 5 years 5 months 12 days | 5 years 5 months 5 days | 5 years 7 months 6 days |
Expected Volatility Rate | 48.20% | 48.10% | 48.70% |
Risk-free interest rate | 1.78% | 1.80% | 1.03% |
Common_stock_Employee_options_
Common stock (Employee options vested and exercised) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options, Exercises in Period, Total Intrinsic Value | $2,997 | $5,896 | $24,846 |
Common_stock_Restricted_stock_
Common stock (Restricted stock awards and restricted stock units) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $0 | |
Outstanding, Number of Shares | 0 | 12,076 |
Outstanding, Wtd Ag Grant Date Fair Value | $0 | $12.42 |
Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $0 | |
Outstanding, Number of Shares | -1,062,590 | 755,271 |
Outstanding, Wtd Ag Grant Date Fair Value | $13.79 | $19.24 |
Vesting percentage on 1st anniversary of grant (percent) | 33.33% | |
Vesting percentage on 2nd anniversary of grant (percent) | 33.33% | |
Vesting percentage on 3rd anniversary of grant (percent) | 33.34% | |
Director | Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting percentage on 1st anniversary of grant (percent) | 50.00% | |
Vesting percentage on 2nd anniversary of grant (percent) | 50.00% |
Common_stock_Summary_of_restri
Common stock (Summary of restricted stock activity) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Restricted Stock Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Outstanding, Number of Shares | 12,076 | |
Granted, Number of Shares | 0 | |
Vested, Number of Shares | -12,076 | |
Forfeited, Number of Shares | 0 | |
Outstanding, Number of Shares | 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | ||
Granted, Wtd Avg Grant Date Fair Value | $0 | |
Vested, Wtd Avg Grant Date Fair Value | $12.42 | |
Forfeitured, Wtd Avg Grant Date Fair Value | $0 | |
Outstanding, Wtd Ag Grant Date Fair Value | $0 | $12.42 |
Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average period (in years) | 1 year 11 months | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Outstanding, Number of Shares | 755,271 | |
Granted, Number of Shares | 823,554 | |
Vested, Number of Shares | -327,562 | |
Forfeited, Number of Shares | -188,673 | |
Outstanding, Number of Shares | -1,062,590 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | ||
Granted, Wtd Avg Grant Date Fair Value | $11.64 | |
Vested, Wtd Avg Grant Date Fair Value | $19.11 | |
Forfeitured, Wtd Avg Grant Date Fair Value | $16.97 | |
Outstanding, Wtd Ag Grant Date Fair Value | $13.79 | $19.24 |
Common_stock_Unrecognized_net_
Common stock (Unrecognized net compensation) (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected dividend yield | 0.00% |
Common_stock_Granted_employee_
Common stock (Granted employee and nonemployee options) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair Value of Common Stock per Share | $4.77 | $7.34 | $10.19 |
Common_stock_Nonemployee_stock
Common stock (Nonemployee stock-based compensation) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $11,084 | $8,667 | $4,232 |
Common_stock_Recognized_expens
Common stock (Recognized expenses nonemployee stock-based compensation) (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Modified to Allow Continued Vesting | 84,758 | ||
Share-based Goods and Nonemployee Services Transaction [Line Items] | |||
Stock-based compensation expense | $11,084 | $8,667 | $4,232 |
Restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Modified to Allow Continued Vesting | 35,528 |
Common_stock_Common_stock_Shar
Common stock (Common stock) Share-based compensation allocated to expense captions (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $11,084 | $8,667 | $4,232 |
Cost of Sales [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 1,178 | 967 | 421 |
Research and Development Expense [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 1,056 | 861 | 449 |
Selling and Marketing Expense [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 4,111 | 2,942 | 1,262 |
General and Administrative Expense [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $4,739 | $3,897 | $2,100 |
Common_stock_Common_Stock_ESPP
Common stock Common Stock (ESPP B-S-M option pricing model assumptions) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
ESPP plan details [Abstract] | |||
Stock Shares Issued During Period, ESPP | 160,936 | ||
Common stock (in shares) reserved for ESPP | 666,834 | ||
Two Thousand Twelve Employee Stcok Purchase Plan [Member] | Employee Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield | 0.00% | 0.00% | 0.00% |
ESPP plan details [Abstract] | |||
ESPP-Maximum Annual Purchase by Employee, Percent | 15.00% | ||
ESPP-Discount of market Price | 85.00% | ||
ESPP-Offering Period, Initial Offer | 11 months | ||
ESPP-Offering Period, Subsequent Offers | 6 months | ||
Share-based Comp, Per Share Wtd Avg Price of Shares Purchased | $9.87 | $13.92 | |
Common stock (in shares) reserved for ESPP | 282,655 | ||
Two Thousand Twelve Employee Stcok Purchase Plan [Member] | Employee Stock [Member] | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life (years) | 6 months | 3 months | 6 months |
Expected Volatility Rate | 35.90% | 33.30% | 43.20% |
Risk-free interest rate | 0.05% | 0.05% | 0.14% |
Two Thousand Twelve Employee Stcok Purchase Plan [Member] | Employee Stock [Member] | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life (years) | 6 months | 10 months 17 days | |
Expected Volatility Rate | 57.70% | 36.00% | 50.00% |
Risk-free interest rate | 0.10% | 0.13% | 0.18% |
Common_stock_Common_stock_and_
Common stock Common stock and preferred stock warrants (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Change in Fair Value Of Warrant Liability Recorded in Other Income (Expense) | ($1,600,000) | ||
Proceeds from Warrant Exercises | 0 | 226,000 | 0 |
Cash Exercise [Member] | |||
Proceeds from Warrant Exercises | $226,000 |
Segments_Summary_of_the_operat
Segments Summary of the operating segments (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||||||||||
Number of Reportable Segments | 2 | ||||||||||
Revenue | |||||||||||
Product | $51,095 | $62,393 | $65,028 | ||||||||
Service | 44,326 | 40,105 | 35,929 | ||||||||
Total revenue | 24,602 | 23,124 | 23,019 | 24,676 | 28,722 | 26,067 | 25,296 | 22,413 | 95,421 | 102,498 | 100,957 |
Cost of revenue | |||||||||||
Product | 18,766 | 21,714 | 21,551 | ||||||||
Service | 18,470 | 16,595 | 15,070 | ||||||||
Cost of Goods and Services Sold | 37,236 | 38,309 | 36,621 | ||||||||
Gross Profit [Abstract] | |||||||||||
Gross Profit, Goods | 32,329 | 40,679 | 43,477 | ||||||||
Gross Profit, Services | 25,856 | 23,510 | 20,859 | ||||||||
Gross profit | 15,708 | 13,535 | 14,070 | 14,872 | 18,403 | 16,277 | 15,790 | 13,719 | 58,185 | 64,189 | 64,336 |
Operating Expenses | 86,264 | 74,749 | 59,440 | ||||||||
Interest income (expense) and other | 106 | 204 | -1,376 | ||||||||
(Loss) income before income taxes | ($27,973) | ($10,356) | $3,520 |
Segments_Summary_of_revenue_by
Segments Summary of revenue by product line (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenue from External Customer [Line Items] | |||||||||||
Product | $51,095 | $62,393 | $65,028 | ||||||||
Service | 44,326 | 40,105 | 35,929 | ||||||||
Total revenue | 24,602 | 23,124 | 23,019 | 24,676 | 28,722 | 26,067 | 25,296 | 22,413 | 95,421 | 102,498 | 100,957 |
Devices | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Product | 37,455 | 46,636 | 47,725 | ||||||||
Software | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Product | 13,640 | 15,757 | 17,303 | ||||||||
Maintenance and support | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Service | 35,353 | 31,559 | 26,237 | ||||||||
Professional services and training | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Service | $8,973 | $8,546 | $9,692 |
Segments_Schedule_of_revenue_b
Segments Schedule of revenue by geographic region (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Geographic Areas, Revenues from External Customers [Abstract] | |||||||||||
Total revenue | $24,602 | $23,124 | $23,019 | $24,676 | $28,722 | $26,067 | $25,296 | $22,413 | $95,421 | $102,498 | $100,957 |
Geographic Areas, Long-Lived Assets [Abstract] | |||||||||||
Property and equipment, net | 5,122 | 5,365 | 5,122 | 5,365 | 3,631 | ||||||
Concentration Risks, Types, No Concentration Percentage [Abstract] | |||||||||||
No. of revenue customers with 10% or greater concentration | 0 | 0 | 0 | ||||||||
No of Acct Rec customers with 10% or greater concentration | 0 | 0 | 0 | 0 | |||||||
United States | |||||||||||
Geographic Areas, Revenues from External Customers [Abstract] | |||||||||||
Total revenue | 86,007 | 91,763 | 90,108 | ||||||||
Geographic Areas, Long-Lived Assets [Abstract] | |||||||||||
Property and equipment, net | 4,852 | 5,249 | 4,852 | 5,249 | 3,465 | ||||||
International | |||||||||||
Geographic Areas, Revenues from External Customers [Abstract] | |||||||||||
Total revenue | 9,414 | 10,735 | 10,849 | ||||||||
Geographic Areas, Long-Lived Assets [Abstract] | |||||||||||
Property and equipment, net | $270 | $116 | $270 | $116 | $166 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
United States | ($28,442) | ($10,812) | $3,205 |
International | 469 | 456 | 315 |
Total (loss) income before income taxes | ($27,973) | ($10,356) | $3,520 |
Income_Taxes_Components_of_the
Income Taxes (Components of the provision (benefit) for income taxes) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current | |||
Federal | $0 | $0 | $7 |
State | 14 | -40 | 512 |
Foreign | 204 | 74 | 38 |
Current Income Tax Expense (Benefit) | 218 | 34 | 557 |
Deferred | |||
Federal | 134 | 60 | 60 |
State | -4 | 4 | 10 |
Foreign | -24 | 11 | 0 |
Deferred Income Tax Expense (Benefit) | 106 | 75 | 70 |
Total income tax provision | $324 | $109 | $627 |
Income_Taxes_Reconciliation_of
Income Taxes (Reconciliation of the provision for income taxes at the statutory rate to the company's provision for income tax) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
U.S. federal (tax benefit) provision at statutory rate | ($9,511) | ($3,567) | $1,197 |
State (tax benefit) income taxes, net of federal benefit | -895 | -338 | 151 |
Foreign income taxes at rates other than the US rate | 43 | -28 | -10 |
Nondeductible Share-based Compensation Cost | 763 | 549 | 397 |
Change in valuation allowance | 10,203 | 3,911 | -1,494 |
Non-deductible warrant expense | 0 | 0 | 625 |
Research and development credits | -466 | -527 | 220 |
Other | 187 | 109 | -19 |
Total income tax provision | $324 | $109 | $627 |
Effective Income Tax Rate, Percent [Abstract] | |||
Effective tax rate | -1.20% | -1.10% | 17.80% |
Income_Taxes_Deferred_tax_asse
Income Taxes (Deferred tax assets) (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Income Tax Disclosure [Abstract] | ||||
Net operating loss carryforward | $19,190,000 | $11,873,000 | ||
Research and development credits | 3,360,000 | 2,809,000 | ||
Deferred Tax Assets, Property, Plant and Equipment | 650,000 | 288,000 | ||
Reserves and accruals | 6,900,000 | 6,060,000 | ||
Total deferred tax assets | 30,100,000 | 21,030,000 | ||
Valuation allowance | -30,072,000 | -21,030,000 | -21,193,000 | -22,687,000 |
Net deferred tax assets | 28,000 | 0 | ||
Deferred tax liabilities | -352,000 | -216,000 | ||
Net deferred tax liabilities | -324,000 | -216,000 | ||
Deferred tax assets (increase) decrease | ($9,000,000) | $200,000 |
Income_Taxes_Tax_carry_forward
Income Taxes (Tax carry forwards) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Tax Credit Carryforward [Line Items] | ||
Tax Credit Carryforward, Amount | $500,000 | |
Research and development credits | 3,360,000 | 2,809,000 |
Deferred tax assets decrease | -9,000,000 | 200,000 |
Tax Credit Carryforward, Limitations on Use | 600000 | |
Federal | Federal R&D tax credits carryforwards [Member] | ||
Tax Credit Carryforward [Line Items] | ||
Research and development credits | 2,000,000 | |
State | State R&D tax credits carryforwards [Member] | ||
Tax Credit Carryforward [Line Items] | ||
Research and development credits | $3,000,000 |
Income_Taxes_Income_Taxes_Oper
Income Taxes Income Taxes (Operating Loss Carryovers) (Details) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards, Limitations on Use | $12,200,000 |
Document Period End Date | 31-Dec-14 |
Operating Loss Carryforwards | 7,500,000 |
Federal | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 71,400,000 |
State | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 42,600,000 |
Excess Stock Option Deductions [Member] | Federal | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | $33,900,000 |
Income_Taxes_income_Taxes_DTA_
Income Taxes (income Taxes) DTA Valuation Allowance Rollforward (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Taxes (DTA Valuation Allowance Rollforward) [Abstract] | |||
Balance at the beginning of the period | $21,030 | $21,193 | $22,687 |
Net operating loss carryforwards generated (utilization) | 7,317 | -2,397 | -3,505 |
R&D tax credit increase | 551 | 172 | 272 |
Depreciation and amortization increase | 362 | 204 | 29 |
Reserves and accruals increase | 840 | 1,558 | 1,273 |
Deferred tax assets decrease (increase) | -28 | 300 | 437 |
Balance at the end of the period | $30,072 | $21,030 | $21,193 |
Income_Taxes_Changes_in_unreco
Income Taxes (Changes in unrecognized tax benefits) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | $13,000 | $26,000 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Gross amount of unrecognized tax benefits as of the beginning of the period | 1,092,000 | 1,079,000 |
Increases related to prior year tax provisions | 25,000 | 30,000 |
Decreases related to prior year tax provisions | 0 | -239,000 |
Increases related to current year tax provisions | 148,000 | 222,000 |
Gross amount of unrecognized tax benefits as of the end of the period | $1,265,000 | $1,092,000 |
Income_Taxes_NonUS_Subsidiarie
Income Taxes (Non-U.S. Subsidiaries' Undistributed Earnings) (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Income Tax Disclosure [Abstract] | |
Undistributed Earnings of Foreign Subsidiaries | $1.20 |
Business_Acquisitions_Details
Business Acquisitions (Details) (Customer relationships, Net assets of mVisum, Inc. [Member], USD $) | Jan. 13, 2014 |
In Thousands, unless otherwise specified | |
Customer relationships | Net assets of mVisum, Inc. [Member] | |
Business Acquisition [Line Items] | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $170 |
Business_Acquisitions_Acquisit
Business Acquisitions Acquisition of mVisium Net Assets (Details) (USD $) | 0 Months Ended | 12 Months Ended | |
Jan. 13, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Business Acquisition [Line Items] | |||
Goodwill | 9,988,000 | $5,575,000 | |
Net assets of mVisum, Inc. [Member] | |||
Business Acquisition [Line Items] | |||
Payments to Acquire Businesses, Gross | 3,500,000 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables | 187,000 | ||
Goodwill | 2,103,000 | ||
Total assets acquired including Goodwill | 3,590,000 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Deferred Revenue | -90,000 | ||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | 3,500,000 | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 5 years 8 months 1 day | ||
Business Combination, Acquisition Related Costs | 200,000 | ||
future bonus compensation | 500,000 | ||
Technology-Based Intangible Assets [Member] | Net assets of mVisum, Inc. [Member] | |||
Business Acquisition [Line Items] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 830,000 | ||
Non-compete Agreements | Net assets of mVisum, Inc. [Member] | |||
Business Acquisition [Line Items] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 260,000 | ||
Customer relationships | Net assets of mVisum, Inc. [Member] | |||
Business Acquisition [Line Items] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 170,000 | ||
Trademarks and Trade Names [Member] | Net assets of mVisum, Inc. [Member] | |||
Business Acquisition [Line Items] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $40,000 | ||
Minimum [Member] | Net assets of mVisum, Inc. [Member] | |||
Business Acquisition [Line Items] | |||
Weighted average useful life (years) | 4 years | ||
Minimum [Member] | Technology-Based Intangible Assets [Member] | |||
Business Acquisition [Line Items] | |||
Weighted average useful life (years) | 4 years | ||
Minimum [Member] | Non-compete Agreements | |||
Business Acquisition [Line Items] | |||
Weighted average useful life (years) | 2 years | ||
Minimum [Member] | Customer relationships | |||
Business Acquisition [Line Items] | |||
Weighted average useful life (years) | 7 years | ||
Minimum [Member] | Trademarks and Trade Names [Member] | |||
Business Acquisition [Line Items] | |||
Weighted average useful life (years) | 4 years | ||
Maximum [Member] | Net assets of mVisum, Inc. [Member] | |||
Business Acquisition [Line Items] | |||
Weighted average useful life (years) | 7 years | ||
Maximum [Member] | Technology-Based Intangible Assets [Member] | |||
Business Acquisition [Line Items] | |||
Weighted average useful life (years) | 7 years | ||
Maximum [Member] | Non-compete Agreements | |||
Business Acquisition [Line Items] | |||
Weighted average useful life (years) | 4 years | ||
Maximum [Member] | Customer relationships | |||
Business Acquisition [Line Items] | |||
Weighted average useful life (years) | 9 years | ||
Maximum [Member] | Trademarks and Trade Names [Member] | |||
Business Acquisition [Line Items] | |||
Weighted average useful life (years) | 7 years |
Business_Acquisitions_Acquisit1
Business Acquisitions Acquisition of Prana Technologies assets (Details) (USD $) | 0 Months Ended | 12 Months Ended | |
Aug. 08, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Business Acquisition [Line Items] | |||
Goodwill | $9,988,000 | $5,575,000 | |
Prana Technologies [Member] | |||
Business Acquisition [Line Items] | |||
Payments to Acquire Businesses, Gross | 3,450,000 | ||
Goodwill | 2,310,000 | ||
Payments to Employees | 800,000 | ||
Business Combination, Acquisition Related Costs | 100,000 | ||
Non-compete Agreements | Prana Technologies [Member] | |||
Business Acquisition [Line Items] | |||
Weighted average useful life (years) | 2 years | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 200,000 | ||
In Process Research and Development [Member] | Prana Technologies [Member] | |||
Business Acquisition [Line Items] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets | $940,000 |
Quarterly_results_of_operation2
Quarterly results of operations (unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue, Net | $24,602 | $23,124 | $23,019 | $24,676 | $28,722 | $26,067 | $25,296 | $22,413 | $95,421 | $102,498 | $100,957 |
Gross Profit | 15,708 | 13,535 | 14,070 | 14,872 | 18,403 | 16,277 | 15,790 | 13,719 | 58,185 | 64,189 | 64,336 |
Net (loss) income | -7,009 | -7,891 | -7,008 | -6,389 | -1,842 | -3,102 | -2,022 | -3,499 | -28,297 | -10,465 | 2,893 |
Net Income (Loss) Available to Common Stockholders, Basic | ($7,009) | ($7,891) | ($7,008) | ($6,389) | ($1,842) | ($3,102) | ($2,022) | ($3,499) | ($28,297) | ($10,465) | $1,527 |
Basic and diluted | ($0.27) | ($0.31) | ($0.28) | ($0.26) | ($0.07) | ($0.13) | ($0.08) | ($0.14) | ($1.12) | ($0.43) | $0.08 |
Weighted Average Number of Shares Outstanding, Basic | 25,572 | 25,432 | 25,246 | 25,047 | 24,893 | 24,747 | 24,555 | 24,282 |