Vocera Communications (VCRA) 10-Q 4 Aug 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Aug. 03, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	VOCERA COMMUNICATIONS, INC.
Entity Central Index Key	1,129,260
Document Type	10-Q
Document Period End Date	Jun. 30, 2016
Amendment Flag	false
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		27,020,615

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Current assets
Cash and cash equivalents	$ 26,367	$ 20,572
Short-term investments	92,409	96,202
Accounts receivable, net of allowance	19,121	22,605
Other receivables	886	1,009
Inventories	4,367	2,713
Prepaid expenses and other current assets	2,303	2,165
Total current assets	145,453	145,266
Property and equipment, net	5,881	3,620
Intangible assets, net	2,003	2,375
Goodwill	9,988	9,988
Other long-term assets	779	1,012
Total assets	164,104	162,261
Current liabilities
Accounts payable	3,817	2,932
Product Warranty Accrual, Current	602	806
Accrued payroll and other current liabilities	12,383	13,339
Deferred revenue, current	32,837	31,495
Total current liabilities	49,037	47,766
Deferred revenue, long-term	7,957	8,097
Other long-term liabilities	3,554	1,967
Total liabilities	60,548	57,830
Commitments and contingencies (Note 7)
Stockholders' equity
Preferred stock, $0.0003 par value - 5,000,000 shares authorized as of June 30, 2016 and December 31, 2015; zero shares issued and outstanding	0	0
Common stock, $0.0003 par value - 100,000,000 shares authorized as of June 30, 2016 and December 31, 2015; 26,829,222 and 26,322,322 shares issued and outstanding as of June 30, 2016 and December 31, 2015, respectively	8	8
Additional paid-in capital	219,626	214,421
Accumulated other comprehensive income (loss)	48	(162)
Accumulated deficit	(116,126)	(109,836)
Total stockholders’ equity	103,556	104,431
Total liabilities and stockholders’ equity	$ 164,104	$ 162,261

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets Condensed Consolidated Balance Sheets (Paranthetical) - $ / shares	Jun. 30, 2016	Dec. 31, 2015
Liabilities and stockholders' equity
Common stock par value	$ 0.0003	$ 0.0003
Common stock shares authorized	100,000,000	100,000,000
Common stock shares issued	26,829,222	26,322,322
Common stock shares outstanding	26,829,222	26,322,322
Preferred Stock
Liabilities and stockholders' equity
Preferred stock par value	$ 0.0003	$ 0.0003
Preferred stock shares authorized	5,000,000	5,000,000
Preferred stock shares issued	0	0
Preferred stock shares outstanding	0	0

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Revenue
Product	$ 17,702	$ 13,320	$ 31,504	$ 25,782
Service	13,450	12,129	26,425	23,485
Total revenue	31,152	25,449	57,929	49,267
Cost of revenue
Product	5,944	4,723	10,393	9,155
Service	6,134	4,914	11,784	9,765
Total cost of revenue	12,078	9,637	22,177	18,920
Gross profit	19,074	15,812	35,752	30,347
Operating expenses
Research and development	4,428	4,242	8,400	8,725
Sales and marketing	12,747	12,102	24,773	22,516
General and administrative	4,625	4,568	8,961	8,568
Total operating expenses	21,800	20,912	42,134	39,809
Loss from operations	(2,726)	(5,100)	(6,382)	(9,462)
Interest income	199	117	377	227
Other expense, net	(137)	(33)	(151)	(165)
Loss before income taxes	(2,664)	(5,016)	(6,156)	(9,400)
Provision for income taxes	(42)	(155)	(134)	(258)
Net loss	$ (2,706)	$ (5,171)	$ (6,290)	$ (9,658)
Net loss per share
Basic and Diluted	$ (0.10)	$ (0.20)	$ (0.24)	$ (0.38)
Weighted average shares used to compute net loss per share
Basic and Diluted	26,624	25,832	26,501	25,749

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Statement of Comprehensive Income [Abstract]
Net loss	$ (2,706)	$ (5,171)	$ (6,290)	$ (9,658)
Other comprehensive income (loss), net:
Change in unrealized gain (loss) on investments, net of tax	38	(17)	210	36
Comprehensive loss	$ (2,668)	$ (5,188)	$ (6,080)	$ (9,622)

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Statement of Cash Flows [Abstract]
Other Operating Activities, Cash Flow Statement	$ 6	$ 461
Cash flows from operating activities
Net loss	6,290	9,658
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	1,456	1,654
Inventory provision	119	99
Change in lease-related performance liabilities	(450)	(490)
Stock-based compensation expense	5,691	5,338
Changes in operating assets and liabilities:
Accounts receivable	3,484	3,030
Other receivables	123	(351)
Inventories	(1,773)	1,617
Prepaid expenses and other assets	94	(309)
Accounts payable	548	651
Accrued payroll and other liabilities	(30)	(700)
Deferred revenue	1,202	(1,550)
Net cash used in operating activities	4,180	(208)
Cash flows from investing activities
Purchase of property and equipment	(3,013)	(385)
Purchase of short-term investments	(68,692)	(68,203)
Maturities of short-term investments	68,464	55,148
Proceeds from Sale of Available-for-sale Securities	4,231	0
Changes in Restricted Cash	0	40
Net cash used in investing activities	990	(13,400)
Cash flows from financing activities
Cash from lease-related performance obligations	940	609
Proceeds from issuance of common stock from the employee stock purchase plan	786	653
Proceeds from exercise of stock options	523	614
Tax withholdings paid on behalf of employees for net share settlement	(1,624)	(881)
Net cash provided by financing activities	625	995
Net decrease in cash and cash equivalents	5,795	(12,613)
Cash and cash equivalents at beginning of period	20,572	22,615
Cash and cash equivalents at end of period	26,367	10,002
Supplemental disclosure of non-cash investing and financing activities:
Property and equipment in accounts payable and accrued liabilities	$ 401	$ 362

The Company and Summary of Sign

The Company and Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
The Company and Summary of Significant Accounting Policies	The Company and Summary of Significant Accounting Policies Organization and Business Vocera Communications, Inc. (the “Company” or "Vocera") is a provider of secure, integrated, intelligent communication solutions, focused on empowering mobile workers in healthcare, hospitality, energy, and other mission-critical mobile work environments, in the United States and internationally. The significant majority of the Company's business is currently generated from sales of its solutions in the healthcare market to help its customers improve patient safety and experience and increase operational efficiency. As of June 30, 2016 the Company's solutions have been selected by more than 1,400 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. Other software applications help improve care coordination, patient safety, and patient satisfaction. Basis of Presentation The Company’s unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the instructions to Form 10-Q and Article 10 of Regulation S-X of the U.S. Securities and Exchange Commission, and include the accounts of Vocera and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated. Certain information and disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. Accordingly, these unaudited interim condensed consolidated financial statements should be read in conjunction with the annual audited consolidated financial statements and notes thereto contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2015 . The year-end condensed balance sheet data was derived from the Company's audited financial statements, but does not include all disclosures required by U.S. GAAP. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the Company’s interim consolidated financial information. The results for the quarter presented are not necessarily indicative of the results to be expected for the year ending December 31, 2016 or for any other interim period or any other future year. The accounting policies followed in the preparation of these financial statements are consistent in all material respects with those presented in Note 2 to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. Use of Estimates The preparation of the accompanying unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting periods. The estimates include, but are not limited to, revenue recognition, useful lives assigned to long-lived assets, excess and obsolete inventory charges, warranty reserves, stock-based compensation expense, provisions for income taxes and contingencies. Actual results could differ from these estimates, and such differences could be material to the Company’s financial position and results of operations. Revenue Recognition The Company derives revenue from the sales of communication badges, perpetual software licenses for software that is essential to the functionality of the communication badges, smartphones, 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 and certain hosted software subscriptions. The Company's revenue recognition policy has not changed from that described in its Annual Report on Form 10-K for the year ended December 31, 2015 . Transfer of sales-type leases to third-parties Proceeds from transfers of sales-type leases to third-party financial companies are allocated between the net investment in sales-type leases and the executory cost component for remaining service obligations based on relative present value. The difference between the amount of proceeds allocated to the net investment in lease and the carrying value of the net investment in lease is included in product revenue. Proceeds allocated to the executory cost component are accounted for as financing liabilities. For the six months ended June 30, 2016 and 2015 , the Company transferred $2.5 million and $1.1 million , respectively, of lease receivables in non-recourse sales to third-party financial companies, with immaterial net gains (losses). For the six months ended June 30, 2016 and 2015 , the Company recorded $0.9 million and $0.6 million , respectively, of financing liabilities for future performance of executory service obligations. For lease receivables retained as of June 30, 2016 and December 31, 2015 , the Company recorded $1.2 million and $1.5 million of net investment in sales-type leases, respectively, equivalent to the minimum lease payments less the unearned interest portion. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (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. In July 2015 the FASB affirmed a one-year deferral of the effective date of the new revenue standard. The Company’s effective date for this standard will be the first quarter of 2018. Early adoption is permitted but not before the original effective date of annual reporting periods beginning after December 15, 2016. 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, 2018. 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. In February 2016, the FASB amended lease accounting requirements to begin recording assets and liabilities arising from leases on the balance sheet. The new guidance will also require significant additional disclosures about the amount, timing and uncertainty of cash flows from leases. This new guidance will be effective for us beginning on January 1, 2019 using a modified retrospective approach. The modified retrospective approach includes a number of optional practical expedients that entities may elect to apply. 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. In March 2016, the FASB issued new guidance related to accounting for stock-based payment award transactions. The guidance is designed to simplify several aspects of accounting for share-based payment award transactions, including the income tax consequences, classification of awards as either equity or liabilities, classification on the statement of cash flows and forfeiture rate calculations. The guidance is effective for financial statements issued for fiscal years beginning after December 15, 2017, with early adoption permitted. The Company is evaluating the impact of this new guidance on the consolidated financial statements and the related disclosures. In June 2016, the FASB issued new guidance related to the accounting for credit losses on instruments for both financial services and non-financial services entities. The new guidance introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments. It also modifies the impairment model for available-for-sale debt securities and provides for a simplified accounting model for purchased financial assets with credit deterioration since their origination. The guidance will be effective for us beginning January 1, 2020. Early adoption is permitted. The Company is currently evaluating the impact of this new guidance on its consolidated financial statements.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	6 Months Ended
	Jun. 30, 2016
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	Fair Value of Financial Instruments The Company’s cash, cash equivalents and short-term investments are carried at their fair values with any differences from their amortized cost recorded in equity as unrealized gains (losses) on marketable securities. As a basis for determining the fair value of its assets and liabilities, the Company follows a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: (Level 1) observable inputs such as quoted prices in active markets; (Level 2) inputs other than the quoted prices in active markets that are observable either directly or indirectly; and (Level 3) unobservable inputs in which there is little or no market data which requires the Company to develop its own assumptions. This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. For the six months ended June 30, 2016 , there have been no transfers between Level 1 and Level 2 fair value instruments and no transfers in or out of Level 3. The Company's money market funds are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices. The fair value of the Company's Level 2 fixed income securities are obtained from independent pricing services, which may use quoted market prices for identical or comparable instruments or model-driven valuations using observable market data or other inputs corroborated by observable market data. The Company does not have any financial instruments which are valued using Level 3 inputs. The Company’s assets that are measured at fair value on a recurring basis, by level, within the fair value hierarchy as of June 30, 2016 and December 31, 2015 , are summarized as follows (in thousands): June 30, 2016 December 31, 2015 Level 1 Level 2 Total Level 1 Level 2 Total Assets Money market funds $ 5,598 $ — $ 5,598 $ 7,532 $ — $ 7,532 Commercial paper 1,683 1,219 2,902 — — — U.S. government agency securities 600 10,755 11,355 — 13,009 13,009 U.S. Treasury securities — 6,362 6,362 — 5,843 5,843 Corporate debt securities 5,182 74,073 79,255 1,152 77,350 78,502 Total assets measured at fair value $ 13,063 $ 92,409 $ 105,472 $ 8,684 $ 96,202 $ 104,886 The Company had no liabilities as of June 30, 2016 and December 31, 2015 that were measured at fair value on a recurring basis.

Cash, Cash Equivalents and Shor

Cash, Cash Equivalents and Short-term Investments	6 Months Ended
	Jun. 30, 2016
Cash and Cash Equivalents [Abstract]
Cash, Cash Equivalents, and Short-term Investments	Cash, Cash Equivalents and Short-Term Investments The following tables present current and prior-year-end balances for cash, cash equivalents and short-term investments (in thousands): As of June 30, 2016 Amortized Cost Unrealized Gains Unrealized Losses Fair value Cash and cash equivalents: Demand deposits and other cash $ 13,304 $ — $ — $ 13,304 Money market funds 5,598 — — 5,598 Commercial paper 1,683 — — 1,683 U.S. government agency securities 600 — — 600 Corporate debt securities 5,182 — — 5,182 Total cash and cash equivalents 26,367 — — 26,367 Short-Term Investments: Commercial paper 1,219 — — 1,219 U.S. government agency securities 10,744 11 — 10,755 U.S. Treasury securities 6,351 11 — 6,362 Corporate debt securities 74,047 41 (15 ) 74,073 Total short-term investments 92,361 63 (15 ) 92,409 Total cash, cash equivalents and short-term investments $ 118,728 $ 63 $ (15 ) $ 118,776 As of December 31, 2015 Amortized Cost Unrealized Gains Unrealized Losses Fair value Cash and cash equivalents: Demand deposits and other cash $ 11,888 $ — $ — $ 11,888 Money market funds 7,532 — — 7,532 Corporate debt securities 1,152 — — 1,152 Total cash and cash equivalents 20,572 — — 20,572 Short-Term Investments: U.S. government agency securities 13,038 — (29 ) 13,009 U.S. Treasury securities 5,855 — (12 ) 5,843 Corporate debt securities 77,471 4 (125 ) 77,350 Total short-term investments 96,364 4 (166 ) 96,202 Total cash, cash equivalents and short-term investments $ 116,936 $ 4 $ (166 ) $ 116,774 The Company has determined that the unrealized losses on its short-term investments as of June 30, 2016 and December 31, 2015 do not constitute an "other than temporary impairment." The unrealized losses for the short-term investments have all been in a continuous unrealized loss position for less than twelve months. The Company’s conclusion of no “other than temporary impairment” is based on the high credit quality of the securities, their short remaining maturity and the Company’s intent and ability to hold such loss securities until maturity. Classification of the cash, cash equivalent and short-term investments by contractual maturity was as follows: (in thousands) One year or shorter Between 1 and 2 years Total Balances as of June 30, 2016 Cash and cash equivalents (1) $ 26,367 $ — $ 26,367 Short-term investments 84,544 7,865 92,409 Cash, cash equivalents and short-term investments $ 110,911 $ 7,865 $ 118,776 Balances as of December 31, 2015 Cash and cash equivalents (1) $ 20,572 $ — $ 20,572 Short-term investments 75,725 20,477 96,202 Cash, cash equivalents and short-term investments $ 96,297 $ 20,477 $ 116,774 (1) Includes demand deposits and other cash, money market funds and other cash equivalent securities, all with 0-90 day maturity at purchase.

Net Loss Per Share

Net Loss Per Share	6 Months Ended
	Jun. 30, 2016
Earnings Per Share [Abstract]
Net Loss Per Share	Net Loss Per Share The following table sets forth the computation of basic and diluted net loss per share (in thousands, except per share amounts): Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Numerator: Net loss $ (2,706 ) $ (5,171 ) $ (6,290 ) $ (9,658 ) Denominator: Weighted-average shares used to compute net loss per common share - basic and diluted 26,624 25,832 26,501 25,749 Net loss per share Basic and diluted $ (0.10 ) $ (0.20 ) $ (0.24 ) $ (0.38 ) The following securities were not included in the calculation of diluted shares outstanding as the effect would have been anti-dilutive: Three months ended June 30, Six months ended June 30, (in thousands) 2016 2015 2016 2015 Options to purchase common stock, including ESPP 3,049 3,438 3,087 3,439 Warrants to purchase common stock — 44 — 44 Restricted stock units 1,808 1,514 1,589 1,289

Goodwill and Intangible Assets

Goodwill and Intangible Assets	6 Months Ended
	Jun. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	Goodwill and Intangible Assets Goodwill As of June 30, 2016 and December 31, 2015 , the Company had $10.0 million and $10.0 million of goodwill, respectively, allocated to the Company's Product operating segment. As of June 30, 2016 , there were no changes in circumstances indicating that the carrying values of goodwill or acquired intangibles may not be recoverable. Intangible Assets Acquisition-related intangible assets are amortized either straight-line, or over the life of the assets on a basis that resembles the economic benefit of the assets. This yields amortization in the latter case that is higher in earlier periods of the useful life. The estimated useful lives and carrying value of acquired intangible assets are as follows: June 30, 2016 December 31, 2015 (in thousands) Range of Useful Life (years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Developed technology 4 to 7 $ 3,650 $ 2,292 $ 1,358 $ 3,650 $ 2,094 $ 1,556 Customer relationships 7 to 9 2,520 2,019 501 2,520 1,934 586 Non-compete agreements 2 to 4 460 340 120 460 258 202 Trademarks 4 to 7 110 86 24 110 79 31 Intangible assets, net book value $ 6,740 $ 4,737 $ 2,003 $ 6,740 $ 4,365 $ 2,375 Amortization expense was $0.2 million and $0.2 million for the three months ended June 30, 2016 and 2015 , respectively. Amortization expense was $0.4 million and $0.4 million for the six months ended June 30, 2016 and 2015 , respectively. Amortization of acquired intangible assets is reflected in the cost of revenue or operating expenses, depending on the nature of the intangible asset. The estimated future amortization of existing acquired intangible assets as of June 30, 2016 was as follows: (in thousands) Future amortization 2016 (six months remaining) $ 347 2017 551 2018 441 2019 386 2020 201 2021 77 Future amortization expense $ 2,003

Balance Sheet Components

Balance Sheet Components	6 Months Ended
	Jun. 30, 2016
Balance Sheet Components [Abstract]
Balance Sheet Components	Balance Sheet Components Inventories (in thousands) June 30, December 31, Raw materials $ 154 $ 36 Finished goods 4,213 2,677 Total inventories $ 4,367 $ 2,713 Property and equipment, net (in thousands) June 30, December 31, Computer equipment and software $ 10,087 $ 9,446 Furniture, fixtures and equipment 1,775 1,004 Leasehold improvements 3,740 2,435 Manufacturing tools and equipment 3,316 3,134 Construction in process 554 229 Property and equipment, at cost 19,472 16,248 Less: Accumulated depreciation (13,591 ) (12,628 ) Property and equipment, net $ 5,881 $ 3,620 Depreciation and amortization expense was $0.5 million and $0.6 million for the three months ended June 30, 2016 and 2015 , respectively. Depreciation and amortization expense was $1.1 million and $1.3 million for the six months ended June 30, 2016 and 2015 , respectively. Net investment in sales-type leases The Company has sales-type leases with terms of 0.25 to 4 years. Sales-type lease receivables are collateralized by the underlying equipment. The components of our net investment in sales-type leases are as follows: (in thousands) June 30, December 31, Minimum payments to be received on sales-type leases $ 2,384 $ 2,772 Less: Unearned interest income and executory costs (1,186 ) (1,292 ) Net investment in sales-type leases 1,198 1,480 Less: Current portion (743 ) (832 ) Non-current net investment in sales-type leases $ 455 $ 648 There were no allowances for doubtful accounts on these leases as of June 30, 2016 and December 31, 2015 . There is no guaranteed or unguaranteed residual value on the leased equipment. The current and non-current net investments in sales-type leases are reported as components of the consolidated balance sheet captions "other receivables" and "other long-term assets," respectively. The minimum payments expected to be received for future years under sales-type leases as of June 30, 2016 were as follows: (in thousands) Future lease payments 2016 (Remaining six months) $ 637 2017 926 2018 636 2019 185 Total $ 2,384 Accrued payroll and other current liabilities (in thousands) June 30, December 31, Payroll and related expenses $ 7,050 $ 8,162 Accrued payables 2,087 1,835 Deferred rent, current portion 107 326 Lease financing, current portion 780 706 Product warranty 602 701 Customer prepayments 910 941 Sales and use tax payable 456 285 Other 391 383 Total accrued payroll and other current liabilities $ 12,383 $ 13,339 The changes in the Company's product warranty reserve are as follows: Three months ended June 30, Six months ended June 30, (in thousands) 2016 2015 2016 2015 Warranty balance at the beginning of the period $ 620 $ 834 $ 806 $ 497 Warranty expense accrued for shipments during the period 178 93 350 157 Changes in estimate related to pre-existing warranties (39 ) 30 (240 ) 388 Warranty settlements made (121 ) (90 ) (278 ) (175 ) Total product warranty $ 638 $ 867 $ 638 $ 867 Less: Long-term portion (36 ) $ (68 ) (36 ) $ (68 ) Current portion of warranty balance at the end of the period $ 602 $ 799 $ 602 $ 799

Commitments

Commitments	6 Months Ended
	Jun. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies Disclosure	Commitments and Contingencies Non-cancelable Material Commitments The Company is required to purchase unused, non-cancelable, non-returnable raw material inventory that was purchased by its contract manufacturers based on committed finished goods orders from the Company, certain long lead-time raw materials based on the Company’s forecast and current work-in-progress materials. As of June 30, 2016 and December 31, 2015 , approximately $6.0 million and $7.8 million , respectively, of such inventory was purchased and held by the third-party manufacturers which was subject to these purchase guarantees. Leases The Company leases office space for its headquarters and subsidiaries under non-cancelable operating leases, which will expire between December 2016 and March 2022. The Company recognizes rent expense on a straight-line basis over the lease period, and has accrued for rent expense incurred but not paid. Facilities rent expense was $0.6 million and $0.6 million for the three months ended June 30, 2016 and 2015 , respectively. Facilities rent expense was $1.2 million and $1.1 million for the six months ended June 30, 2016 and 2015 , respectively. Future minimum lease payments at June 30, 2016 under non-cancelable operating leases are as follows: (in thousands) Operating leases 2016 (remaining six months) $ 980 2017 1,911 2018 1,727 2019 1,601 2020 1,549 2021 1,595 Thereafter 402 Total minimum lease payments $ 9,765 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 rights, tortious damage to persons or property or breaches of certain Company obligations relating to confidentiality (e.g., safeguarding protected health information) 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 named 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 was purportedly brought on behalf of purchasers of the Company's securities between March 28, 2012 and May 2, 2013, and sought compensatory damages, rescission, fees and costs, as well as other relief. On November 3, 2014 Defendants moved to dismiss the consolidated complaint. On February 11, 2015, the Court granted Defendants' motion to dismiss the Securities Act claims, but denied the motion as to the Exchange Act claims, allowing the matter to proceed on that basis. On April 27, 2015 Defendants filed answers to the consolidated complaint. A mediation in October 2015 resulted in an agreement in principle to settle the suit. On March 4, 2016, the Court issued an order granting Lead Plaintiffs' motion for preliminary approval of the settlement. The settlement, which calls for payment of $9 million , was funded entirely by the Company's insurance carriers. On July 29, 2016, the court issued an order granting final approval of the settlement and entering judgment. 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. The Company defends itself vigorously against any such claims. Although the outcome of these matters is currently not determinable, management expects that any losses from existing matters that are probable or reasonably possible of being incurred as a result of these matters would not be material to the financial statements as a whole.

Stock-based Compensation and Aw

Stock-based Compensation and Awards	6 Months Ended
	Jun. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-based Compensation and Award	Stock-based Compensation and Awards Stock Option Activity A summary of the stock option activity for the six months ended June 30, 2016 is presented below: Options outstanding Number of Options Weighted Average Exercise Price Weighted average remaining contractual term Aggregate intrinsic value (in years) (in thousands) Outstanding at December 31, 2015 3,151,680 $ 9.47 5.50 $ 14,587 Options granted — Options exercised (109,682 ) 4.77 Options canceled (19,962 ) 12.17 Outstanding at June 30, 2016 3,022,036 $ 9.62 4.98 $ 14,887 At June 30, 2016 , there was $2.9 million of unrecognized net compensation cost related to options which is expected to be recognized over a weighted-average period of 1.83 years . As of June 30, 2016 , there were 1,937,081 shares that remained available for future issuance of options, restricted stock units (“RSUs”) or other equity awards under the 2012 Equity Incentive Plan. The Company uses the Black-Scholes option-pricing model to calculate the fair value of stock options on their grant date. The following assumptions were used for each respective period for employee stock options: Three months ended June 30, Six months ended June 30, 2015 2015 Expected Term (in years) 5.39 5.39 Volatility 41.3% 41.3% - 41.8% Risk-free interest rate 1.62% 1.62% - 1.63% Dividend yield 0% 0% Employee Stock Purchase Plan In March 2012, the Company’s 2012 Employee Stock Purchase Plan (the “ESPP”) was approved. During the six months ended June 30, 2016, employees purchased 87,937 shares of common stock at an average purchase price of $8.93 . During the six months ended June 30, 2015, employees purchased 78,853 shares of common stock at an average purchase price of $8.28 . As of June 30, 2016 , there were 568,894 shares available for future issuance under the ESPP. The following Black-Scholes option-pricing assumptions were used for each respective period for the ESPP: Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Expected Term (in years) 0.50 0.50 0.50 0.50 Volatility 38.0% 33.6% 38.0% - 41.5% 33.6% - 57.8% Risk-free interest rate 0.38% 0.09% 0.33% - 0.38% 0.07% - 0.09% Dividend yield 0% 0% 0% 0% Restricted Stock Units A summary of RSU activity for the six months ended June 30, 2016 is presented below: Restricted Stock Units Number of shares Weighted Average Grant Date Fair Value per Share Outstanding at December 31, 2015 1,351,728 $ 11.54 Granted 982,300 12.50 Vested (454,701 ) 12.22 Forfeited (71,786 ) 11.86 Outstanding at June 30, 2016 1,807,541 $ 11.88 At June 30, 2016 , there was $16.8 million of unrecognized net compensation cost related to RSUs, which is expected to be recognized over a weighted-average period of 2.15 years . Allocation of Stock-Based Compensation Expense The following table presents the stock-based compensation allocation of expense: Three months ended June 30, Six months ended June 30, (in thousands) 2016 2015 2016 2015 Cost of revenue $ 324 $ 341 $ 593 $ 650 Research and development 304 283 530 543 Sales and marketing 1,278 1,061 2,288 2,095 General and administrative 1,239 1,059 2,280 2,050 Total stock-based compensation $ 3,145 $ 2,744 $ 5,691 $ 5,338

Segments

Segments	6 Months Ended
	Jun. 30, 2016
Segment Reporting [Abstract]
Segments	Segments The Company has two operating segments, which are both reportable business segments: (i) Product and (ii) Service, both of which are comprised of Vocera’s and its wholly-owned subsidiaries’ results of operations. The following table presents a summary of the operating segments: Three months ended June 30, Six months ended June 30, (in thousands) 2016 2015 2016 2015 Revenue Product $ 17,702 $ 13,320 $ 31,504 $ 25,782 Service 13,450 12,129 26,425 23,485 Total revenue 31,152 25,449 57,929 49,267 Cost of Revenue Product 5,944 4,723 10,393 9,155 Service 6,134 4,914 11,784 9,765 Total cost of revenue 12,078 9,637 22,177 18,920 Gross profit Product 11,758 8,597 21,111 16,627 Service 7,316 7,215 14,641 13,720 Total gross profit 19,074 15,812 35,752 30,347 Operating expenses 21,800 20,912 42,134 39,809 Interest income, net and other 62 84 226 62 Loss before income taxes $ (2,664 ) $ (5,016 ) $ (6,156 ) $ (9,400 )

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2016
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company recorded a $0.1 million provision and $0.3 million provision for income taxes for the six months ended June 30, 2016 and 2015 , respectively. The provision in both periods was primarily due to taxes on international operations and state income taxes. As of June 30, 2016 , the Company has provided a valuation allowance against certain federal and state deferred tax assets. Management continues to evaluate the realizability of deferred tax assets and the related valuation allowance. If management's assessment of the deferred tax assets or the corresponding valuation allowance were to change, the Company would record the related adjustment to income during the period in which management makes the determination. As of June 30, 2016 , there were no material changes to either the nature or the amounts of the uncertain tax positions previously determined for the year ended December 31, 2015 .

The Company and Summary of Si17

The Company and Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
Nature of Operations	Organization and Business Vocera Communications, Inc. (the “Company” or "Vocera") is a provider of secure, integrated, intelligent communication solutions, focused on empowering mobile workers in healthcare, hospitality, energy, and other mission-critical mobile work environments, in the United States and internationally. The significant majority of the Company's business is currently generated from sales of its solutions in the healthcare market to help its customers improve patient safety and experience and increase operational efficiency. As of June 30, 2016 the Company's solutions have been selected by more than 1,400 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. Other software applications help improve care coordination, patient safety, and patient satisfaction.
Basis of Presentation	Basis of Presentation The Company’s unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the instructions to Form 10-Q and Article 10 of Regulation S-X of the U.S. Securities and Exchange Commission, and include the accounts of Vocera and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated. Certain information and disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. Accordingly, these unaudited interim condensed consolidated financial statements should be read in conjunction with the annual audited consolidated financial statements and notes thereto contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2015 . The year-end condensed balance sheet data was derived from the Company's audited financial statements, but does not include all disclosures required by U.S. GAAP. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the Company’s interim consolidated financial information. The results for the quarter presented are not necessarily indicative of the results to be expected for the year ending December 31, 2016 or for any other interim period or any other future year.
Use of Estimates	Use of Estimates The preparation of the accompanying unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting periods. The estimates include, but are not limited to, revenue recognition, useful lives assigned to long-lived assets, excess and obsolete inventory charges, warranty reserves, stock-based compensation expense, provisions for income taxes and contingencies. Actual results could differ from these estimates, and such differences could be material to the Company’s financial position and results of operations.
Revenue Recognition	Revenue Recognition The Company derives revenue from the sales of communication badges, perpetual software licenses for software that is essential to the functionality of the communication badges, smartphones, 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 and certain hosted software subscriptions. The Company's revenue recognition policy has not changed from that described in its Annual Report on Form 10-K for the year ended December 31, 2015 .
Lease, Policy	Transfer of sales-type leases to third-parties Proceeds from transfers of sales-type leases to third-party financial companies are allocated between the net investment in sales-type leases and the executory cost component for remaining service obligations based on relative present value. The difference between the amount of proceeds allocated to the net investment in lease and the carrying value of the net investment in lease is included in product revenue. Proceeds allocated to the executory cost component are accounted for as financing liabilities.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (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. In July 2015 the FASB affirmed a one-year deferral of the effective date of the new revenue standard. The Company’s effective date for this standard will be the first quarter of 2018. Early adoption is permitted but not before the original effective date of annual reporting periods beginning after December 15, 2016. 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, 2018. 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. In February 2016, the FASB amended lease accounting requirements to begin recording assets and liabilities arising from leases on the balance sheet. The new guidance will also require significant additional disclosures about the amount, timing and uncertainty of cash flows from leases. This new guidance will be effective for us beginning on January 1, 2019 using a modified retrospective approach. The modified retrospective approach includes a number of optional practical expedients that entities may elect to apply. 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. In March 2016, the FASB issued new guidance related to accounting for stock-based payment award transactions. The guidance is designed to simplify several aspects of accounting for share-based payment award transactions, including the income tax consequences, classification of awards as either equity or liabilities, classification on the statement of cash flows and forfeiture rate calculations. The guidance is effective for financial statements issued for fiscal years beginning after December 15, 2017, with early adoption permitted. The Company is evaluating the impact of this new guidance on the consolidated financial statements and the related disclosures. In June 2016, the FASB issued new guidance related to the accounting for credit losses on instruments for both financial services and non-financial services entities. The new guidance introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments. It also modifies the impairment model for available-for-sale debt securities and provides for a simplified accounting model for purchased financial assets with credit deterioration since their origination. The guidance will be effective for us beginning January 1, 2020. Early adoption is permitted. The Company is currently evaluating the impact of this new guidance on its consolidated financial statements.
Fair Value of Fin. Instruments, Policy	Fair Value of Financial Instruments The Company’s cash, cash equivalents and short-term investments are carried at their fair values with any differences from their amortized cost recorded in equity as unrealized gains (losses) on marketable securities. As a basis for determining the fair value of its assets and liabilities, the Company follows a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: (Level 1) observable inputs such as quoted prices in active markets; (Level 2) inputs other than the quoted prices in active markets that are observable either directly or indirectly; and (Level 3) unobservable inputs in which there is little or no market data which requires the Company to develop its own assumptions. This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. For the six months ended June 30, 2016 , 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.
Goodwill, Policy	Goodwill As of June 30, 2016 and December 31, 2015 , the Company had $10.0 million and $10.0 million of goodwill, respectively, allocated to the Company's Product operating segment. As of June 30, 2016 , there were no changes in circumstances indicating that the carrying values of goodwill or acquired intangibles may not be recoverable.
Intangible Assets, Policy	Intangible Assets Acquisition-related intangible assets are amortized either straight-line, or over the life of the assets on a basis that resembles the economic benefit of the assets. This yields amortization in the latter case that is higher in earlier periods of the useful life.
Purchase commitments	Non-cancelable Material Commitments The Company is required to purchase unused, non-cancelable, non-returnable raw material inventory that was purchased by its contract manufacturers based on committed finished goods orders from the Company, certain long lead-time raw materials based on the Company’s forecast and current work-in-progress materials. As of June 30, 2016 and December 31, 2015 , approximately $6.0 million and $7.8 million , respectively, of such inventory was purchased and held by the third-party manufacturers which was subject to these purchase guarantees.
Operating leases	Leases The Company leases office space for its headquarters and subsidiaries under non-cancelable operating leases, which will expire between December 2016 and March 2022. The Company recognizes rent expense on a straight-line basis over the lease period, and has accrued for rent expense incurred but not paid. Facilities rent expense was $0.6 million and $0.6 million for the three months ended June 30, 2016 and 2015 , respectively.
Segment Reporting, Policy	The Company has two operating segments, which are both reportable business segments: (i) Product and (ii) Service, both of which are comprised of Vocera’s and its wholly-owned subsidiaries’ results of operations.

Fair Value of Financial Insturm

Fair Value of Financial Insturments (Tables)	6 Months Ended
	Jun. 30, 2016
Fair Value Disclosures [Abstract]
Assets and Liabilities Measured at Fair Value on a Recurring Basis	The Company’s assets that are measured at fair value on a recurring basis, by level, within the fair value hierarchy as of June 30, 2016 and December 31, 2015 , are summarized as follows (in thousands): June 30, 2016 December 31, 2015 Level 1 Level 2 Total Level 1 Level 2 Total Assets Money market funds $ 5,598 $ — $ 5,598 $ 7,532 $ — $ 7,532 Commercial paper 1,683 1,219 2,902 — — — U.S. government agency securities 600 10,755 11,355 — 13,009 13,009 U.S. Treasury securities — 6,362 6,362 — 5,843 5,843 Corporate debt securities 5,182 74,073 79,255 1,152 77,350 78,502 Total assets measured at fair value $ 13,063 $ 92,409 $ 105,472 $ 8,684 $ 96,202 $ 104,886

Cash, Cash Equivalents and Sh19

Cash, Cash Equivalents and Short-term Investments (Tables)	6 Months Ended
	Jun. 30, 2016
Cash and Cash Equivalents [Abstract]
Schedule of Cash, Cash Equivalents and Available-For-Sale Investments	The following tables present current and prior-year-end balances for cash, cash equivalents and short-term investments (in thousands): As of June 30, 2016 Amortized Cost Unrealized Gains Unrealized Losses Fair value Cash and cash equivalents: Demand deposits and other cash $ 13,304 $ — $ — $ 13,304 Money market funds 5,598 — — 5,598 Commercial paper 1,683 — — 1,683 U.S. government agency securities 600 — — 600 Corporate debt securities 5,182 — — 5,182 Total cash and cash equivalents 26,367 — — 26,367 Short-Term Investments: Commercial paper 1,219 — — 1,219 U.S. government agency securities 10,744 11 — 10,755 U.S. Treasury securities 6,351 11 — 6,362 Corporate debt securities 74,047 41 (15 ) 74,073 Total short-term investments 92,361 63 (15 ) 92,409 Total cash, cash equivalents and short-term investments $ 118,728 $ 63 $ (15 ) $ 118,776 As of December 31, 2015 Amortized Cost Unrealized Gains Unrealized Losses Fair value Cash and cash equivalents: Demand deposits and other cash $ 11,888 $ — $ — $ 11,888 Money market funds 7,532 — — 7,532 Corporate debt securities 1,152 — — 1,152 Total cash and cash equivalents 20,572 — — 20,572 Short-Term Investments: U.S. government agency securities 13,038 — (29 ) 13,009 U.S. Treasury securities 5,855 — (12 ) 5,843 Corporate debt securities 77,471 4 (125 ) 77,350 Total short-term investments 96,364 4 (166 ) 96,202 Total cash, cash equivalents and short-term investments $ 116,936 $ 4 $ (166 ) $ 116,774
Investments Classified by Contractual Maturity Date	Classification of the cash, cash equivalent and short-term investments by contractual maturity was as follows: (in thousands) One year or shorter Between 1 and 2 years Total Balances as of June 30, 2016 Cash and cash equivalents (1) $ 26,367 $ — $ 26,367 Short-term investments 84,544 7,865 92,409 Cash, cash equivalents and short-term investments $ 110,911 $ 7,865 $ 118,776 Balances as of December 31, 2015 Cash and cash equivalents (1) $ 20,572 $ — $ 20,572 Short-term investments 75,725 20,477 96,202 Cash, cash equivalents and short-term investments $ 96,297 $ 20,477 $ 116,774 (1) Includes demand deposits and other cash, money market funds and other cash equivalent securities, all with 0-90 day maturity at purchase.

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	6 Months Ended
	Jun. 30, 2016
Earnings Per Share [Abstract]
Schedule of the computation of basic and diluted net income (loss) per share	The following table sets forth the computation of basic and diluted net loss per share (in thousands, except per share amounts): Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Numerator: Net loss $ (2,706 ) $ (5,171 ) $ (6,290 ) $ (9,658 ) Denominator: Weighted-average shares used to compute net loss per common share - basic and diluted 26,624 25,832 26,501 25,749 Net loss per share Basic and diluted $ (0.10 ) $ (0.20 ) $ (0.24 ) $ (0.38 )
Schedule of antidilutive securities excluded from computation of earnings per share	The following securities were not included in the calculation of diluted shares outstanding as the effect would have been anti-dilutive: Three months ended June 30, Six months ended June 30, (in thousands) 2016 2015 2016 2015 Options to purchase common stock, including ESPP 3,049 3,438 3,087 3,439 Warrants to purchase common stock — 44 — 44 Restricted stock units 1,808 1,514 1,589 1,289

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	6 Months Ended
	Jun. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Finite-Lived Intangible Assets	The estimated useful lives and carrying value of acquired intangible assets are as follows: June 30, 2016 December 31, 2015 (in thousands) Range of Useful Life (years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Developed technology 4 to 7 $ 3,650 $ 2,292 $ 1,358 $ 3,650 $ 2,094 $ 1,556 Customer relationships 7 to 9 2,520 2,019 501 2,520 1,934 586 Non-compete agreements 2 to 4 460 340 120 460 258 202 Trademarks 4 to 7 110 86 24 110 79 31 Intangible assets, net book value $ 6,740 $ 4,737 $ 2,003 $ 6,740 $ 4,365 $ 2,375
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense	Amortization of acquired intangible assets is reflected in the cost of revenue or operating expenses, depending on the nature of the intangible asset. The estimated future amortization of existing acquired intangible assets as of June 30, 2016 was as follows: (in thousands) Future amortization 2016 (six months remaining) $ 347 2017 551 2018 441 2019 386 2020 201 2021 77 Future amortization expense $ 2,003

Balance Sheet Components (Table

Balance Sheet Components (Tables)	6 Months Ended
	Jun. 30, 2016
Balance Sheet Components [Abstract]
Inventories	Inventories (in thousands) June 30, December 31, Raw materials $ 154 $ 36 Finished goods 4,213 2,677 Total inventories $ 4,367 $ 2,713
Property and Equipment	Property and equipment, net (in thousands) June 30, December 31, Computer equipment and software $ 10,087 $ 9,446 Furniture, fixtures and equipment 1,775 1,004 Leasehold improvements 3,740 2,435 Manufacturing tools and equipment 3,316 3,134 Construction in process 554 229 Property and equipment, at cost 19,472 16,248 Less: Accumulated depreciation (13,591 ) (12,628 ) Property and equipment, net $ 5,881 $ 3,620 Depreciation and amortization expense was $0.5 million and $0.6 million for the three months ended June 30, 2016 and 2015 , respectively. Depreciation and amortization expense was $1.1 million and $1.3 million for the six months ended June 30, 2016 and 2015 , respectively.
Schedule of Components of Leveraged Lease Investments	Net investment in sales-type leases The Company has sales-type leases with terms of 0.25 to 4 years. Sales-type lease receivables are collateralized by the underlying equipment. The components of our net investment in sales-type leases are as follows: (in thousands) June 30, December 31, Minimum payments to be received on sales-type leases $ 2,384 $ 2,772 Less: Unearned interest income and executory costs (1,186 ) (1,292 ) Net investment in sales-type leases 1,198 1,480 Less: Current portion (743 ) (832 ) Non-current net investment in sales-type leases $ 455 $ 648 There were no allowances for doubtful accounts on these leases as of June 30, 2016 and December 31, 2015 . There is no guaranteed or unguaranteed residual value on the leased equipment. The current and non-current net investments in sales-type leases are reported as components of the consolidated balance sheet captions "other receivables" and "other long-term assets," respectively.
Schedule of Future Minimum Lease Payments for Capital Leases	The minimum payments expected to be received for future years under sales-type leases as of June 30, 2016 were as follows: (in thousands) Future lease payments 2016 (Remaining six months) $ 637 2017 926 2018 636 2019 185 Total $ 2,384
Accrued Liabilities	Accrued payroll and other current liabilities (in thousands) June 30, December 31, Payroll and related expenses $ 7,050 $ 8,162 Accrued payables 2,087 1,835 Deferred rent, current portion 107 326 Lease financing, current portion 780 706 Product warranty 602 701 Customer prepayments 910 941 Sales and use tax payable 456 285 Other 391 383 Total accrued payroll and other current liabilities $ 12,383 $ 13,339
Schedule of Product Warranty Liability	The changes in the Company's product warranty reserve are as follows: Three months ended June 30, Six months ended June 30, (in thousands) 2016 2015 2016 2015 Warranty balance at the beginning of the period $ 620 $ 834 $ 806 $ 497 Warranty expense accrued for shipments during the period 178 93 350 157 Changes in estimate related to pre-existing warranties (39 ) 30 (240 ) 388 Warranty settlements made (121 ) (90 ) (278 ) (175 ) Total product warranty $ 638 $ 867 $ 638 $ 867 Less: Long-term portion (36 ) $ (68 ) (36 ) $ (68 ) Current portion of warranty balance at the end of the period $ 602 $ 799 $ 602 $ 799

Commitments and Contingencies (

Commitments and Contingencies (Tables)	6 Months Ended
	Jun. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Schedule of Future Minimum Rental Payments for Operating Leases	Future minimum lease payments at June 30, 2016 under non-cancelable operating leases are as follows: (in thousands) Operating leases 2016 (remaining six months) $ 980 2017 1,911 2018 1,727 2019 1,601 2020 1,549 2021 1,595 Thereafter 402 Total minimum lease payments $ 9,765

Stock-based Compensation and 24

Stock-based Compensation and Awards (Tables)	6 Months Ended
	Jun. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Rollforward of stock option activity	A summary of the stock option activity for the six months ended June 30, 2016 is presented below: Options outstanding Number of Options Weighted Average Exercise Price Weighted average remaining contractual term Aggregate intrinsic value (in years) (in thousands) Outstanding at December 31, 2015 3,151,680 $ 9.47 5.50 $ 14,587 Options granted — Options exercised (109,682 ) 4.77 Options canceled (19,962 ) 12.17 Outstanding at June 30, 2016 3,022,036 $ 9.62 4.98 $ 14,887
Stock option valuation assumptions	The following assumptions were used for each respective period for employee stock options: Three months ended June 30, Six months ended June 30, 2015 2015 Expected Term (in years) 5.39 5.39 Volatility 41.3% 41.3% - 41.8% Risk-free interest rate 1.62% 1.62% - 1.63% Dividend yield 0% 0%
Equity B-S-M Valuation Assumptions	The following Black-Scholes option-pricing assumptions were used for each respective period for the ESPP: Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Expected Term (in years) 0.50 0.50 0.50 0.50 Volatility 38.0% 33.6% 38.0% - 41.5% 33.6% - 57.8% Risk-free interest rate 0.38% 0.09% 0.33% - 0.38% 0.07% - 0.09% Dividend yield 0% 0% 0% 0%
Rollforward of RSA and RSU activty	A summary of RSU activity for the six months ended June 30, 2016 is presented below: Restricted Stock Units Number of shares Weighted Average Grant Date Fair Value per Share Outstanding at December 31, 2015 1,351,728 $ 11.54 Granted 982,300 12.50 Vested (454,701 ) 12.22 Forfeited (71,786 ) 11.86 Outstanding at June 30, 2016 1,807,541 $ 11.88
Allocation of Recognized Period Costs	The following table presents the stock-based compensation allocation of expense: Three months ended June 30, Six months ended June 30, (in thousands) 2016 2015 2016 2015 Cost of revenue $ 324 $ 341 $ 593 $ 650 Research and development 304 283 530 543 Sales and marketing 1,278 1,061 2,288 2,095 General and administrative 1,239 1,059 2,280 2,050 Total stock-based compensation $ 3,145 $ 2,744 $ 5,691 $ 5,338

Segments Segments (Tables)

Segments Segments (Tables)	6 Months Ended
	Jun. 30, 2016
Segment Reporting [Abstract]
Segments	The following table presents a summary of the operating segments: Three months ended June 30, Six months ended June 30, (in thousands) 2016 2015 2016 2015 Revenue Product $ 17,702 $ 13,320 $ 31,504 $ 25,782 Service 13,450 12,129 26,425 23,485 Total revenue 31,152 25,449 57,929 49,267 Cost of Revenue Product 5,944 4,723 10,393 9,155 Service 6,134 4,914 11,784 9,765 Total cost of revenue 12,078 9,637 22,177 18,920 Gross profit Product 11,758 8,597 21,111 16,627 Service 7,316 7,215 14,641 13,720 Total gross profit 19,074 15,812 35,752 30,347 Operating expenses 21,800 20,912 42,134 39,809 Interest income, net and other 62 84 226 62 Loss before income taxes $ (2,664 ) $ (5,016 ) $ (6,156 ) $ (9,400 )

The Company and Summary of Si26

The Company and Summary of Significant Accounting Policies Narrative (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Accounting Policies [Abstract]
sales type capital leases transfered to banks	$ 2,500	$ 1,100
Initial financing liability during period incurred for future executory services on transfered leases	900	$ 600
Net Investment in Sales Type Leases	$ 1,198		$ 1,480

Fair Value of Financial Instr27

Fair Value of Financial Instruments (Details) - USD ($)	6 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Assets, Level 2 to Level 1 Transfers, Amount	$ 0
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3	0
Assets, Fair Value Disclosure [Abstract]
Cash and Cash Equivalents, Fair Value Disclosure	26,367,000	$ 20,572,000
AFS Securities, Fair Value Disclosure	92,409,000	96,202,000
Fair Value, Measurements, Recurring
Assets, Fair Value Disclosure [Abstract]
Total assets measured at fair value	105,472,000	104,886,000
Fair Value, Measurements, Recurring | Level 1
Assets, Fair Value Disclosure [Abstract]
Total assets measured at fair value	13,063,000	8,684,000
Fair Value, Measurements, Recurring | Level 2
Assets, Fair Value Disclosure [Abstract]
Total assets measured at fair value	92,409,000	96,202,000
Fair Value, Measurements, Recurring | Money market funds
Assets, Fair Value Disclosure [Abstract]
Cash and Cash Equivalents, Fair Value Disclosure	5,598,000	7,532,000
Fair Value, Measurements, Recurring | Money market funds | Level 1
Assets, Fair Value Disclosure [Abstract]
Cash and Cash Equivalents, Fair Value Disclosure	5,598,000	7,532,000
Fair Value, Measurements, Recurring | Money market funds | Level 2
Assets, Fair Value Disclosure [Abstract]
Cash and Cash Equivalents, Fair Value Disclosure	0	0
Fair Value, Measurements, Recurring | Commercial paper
Assets, Fair Value Disclosure [Abstract]
AFS Securities, Fair Value Disclosure	2,902,000	0
Fair Value, Measurements, Recurring | Commercial paper | Level 1
Assets, Fair Value Disclosure [Abstract]
AFS Securities, Fair Value Disclosure	1,683,000	0
Fair Value, Measurements, Recurring | Commercial paper | Level 2
Assets, Fair Value Disclosure [Abstract]
AFS Securities, Fair Value Disclosure	1,219,000	0
Fair Value, Measurements, Recurring | U.S. government agency securities
Assets, Fair Value Disclosure [Abstract]
AFS Securities, Fair Value Disclosure	11,355,000	13,009,000
Fair Value, Measurements, Recurring | U.S. government agency securities | Level 1
Assets, Fair Value Disclosure [Abstract]
AFS Securities, Fair Value Disclosure	600,000	0
Fair Value, Measurements, Recurring | U.S. government agency securities | Level 2
Assets, Fair Value Disclosure [Abstract]
AFS Securities, Fair Value Disclosure	10,755,000	13,009,000
Fair Value, Measurements, Recurring | U.S. Treasury securities
Assets, Fair Value Disclosure [Abstract]
AFS Securities, Fair Value Disclosure	6,362,000	5,843,000
Fair Value, Measurements, Recurring | U.S. Treasury securities | Level 1
Assets, Fair Value Disclosure [Abstract]
AFS Securities, Fair Value Disclosure	0	0
Fair Value, Measurements, Recurring | U.S. Treasury securities | Level 2
Assets, Fair Value Disclosure [Abstract]
AFS Securities, Fair Value Disclosure	6,362,000	5,843,000
Fair Value, Measurements, Recurring | Corporate debt securities
Assets, Fair Value Disclosure [Abstract]
AFS Securities, Fair Value Disclosure	79,255,000	78,502,000
Fair Value, Measurements, Recurring | Corporate debt securities | Level 1
Assets, Fair Value Disclosure [Abstract]
AFS Securities, Fair Value Disclosure	5,182,000	1,152,000
Fair Value, Measurements, Recurring | Corporate debt securities | Level 2
Assets, Fair Value Disclosure [Abstract]
AFS Securities, Fair Value Disclosure	$ 74,073,000	$ 77,350,000

Schedule of Available for Sale

Schedule of Available for Sale Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Cash and cash equivalents [Abstract]
Cash and Cash Equivalents, Amortized Cost	$ 26,367	$ 20,572
Cash And Cash Equivalents, Gross Unrealized Gains	0	0
Cash And Cash Equivalents, Gross Unrealized Losses	0	0
Cash and Cash Equivalents, Fair Value Disclosure	26,367	20,572
Short-term Investments [Abstract]
AFS Securities, Amortized Cost Basis	92,361	96,364
Available-for-sale Securities, Gross Unrealized Gain1	63	4
Available-for-sale Securities, Gross Unrealized Loss1	(15)	(166)
AFS Securities, Fair Value Disclosure	92,409	96,202
Cash, Cash Equivalents, and Short-term Investments [Abstract]
Cash, Cash Equiv. And S-T Investments, Amortized Cost	118,728	116,936
Cash, Cash Equiv. And S-T Investments, Gross Unrealized Gains	63	4
Cash, Cash Equiv. And S-T Investments, Gross Unrealized Losses	(15)	(166)
Cash, Cash Equiv. And S-T Investments, Fair Value Disclosure	118,776	116,774
Demand deposits and other cash
Cash and cash equivalents [Abstract]
Cash and Cash Equivalents, Amortized Cost	13,304	11,888
Cash And Cash Equivalents, Gross Unrealized Gains	0	0
Cash And Cash Equivalents, Gross Unrealized Losses	0	0
Cash and Cash Equivalents, Fair Value Disclosure	13,304	11,888
Money market funds
Cash and cash equivalents [Abstract]
Cash and Cash Equivalents, Amortized Cost	5,598	7,532
Cash And Cash Equivalents, Gross Unrealized Gains	0	0
Cash And Cash Equivalents, Gross Unrealized Losses	0	0
Cash and Cash Equivalents, Fair Value Disclosure	5,598	7,532
Commercial Paper in CE
Cash and cash equivalents [Abstract]
Cash and Cash Equivalents, Amortized Cost	1,683
Cash And Cash Equivalents, Gross Unrealized Gains	0
Cash And Cash Equivalents, Gross Unrealized Losses	0
Cash and Cash Equivalents, Fair Value Disclosure	1,683
U.S. government agency securities
Cash and cash equivalents [Abstract]
Cash and Cash Equivalents, Amortized Cost	600
Cash And Cash Equivalents, Gross Unrealized Gains	0
Cash And Cash Equivalents, Gross Unrealized Losses	0
Cash and Cash Equivalents, Fair Value Disclosure	600
Corporate Debt Securities
Cash and cash equivalents [Abstract]
Cash and Cash Equivalents, Amortized Cost	5,182	1,152
Cash And Cash Equivalents, Gross Unrealized Gains	0	0
Cash And Cash Equivalents, Gross Unrealized Losses	0	0
Cash and Cash Equivalents, Fair Value Disclosure	5,182	1,152
Commercial paper in STI
Short-term Investments [Abstract]
AFS Securities, Amortized Cost Basis	1,219
Available-for-sale Securities, Gross Unrealized Gain1	0
Available-for-sale Securities, Gross Unrealized Loss1	0
AFS Securities, Fair Value Disclosure	1,219
U.S. government agency securities
Short-term Investments [Abstract]
AFS Securities, Amortized Cost Basis	10,744	13,038
Available-for-sale Securities, Gross Unrealized Gain1	11	0
Available-for-sale Securities, Gross Unrealized Loss1	0	(29)
AFS Securities, Fair Value Disclosure	10,755	13,009
U.S. Treasury securities
Short-term Investments [Abstract]
AFS Securities, Amortized Cost Basis	6,351	5,855
Available-for-sale Securities, Gross Unrealized Gain1	11	0
Available-for-sale Securities, Gross Unrealized Loss1	0	(12)
AFS Securities, Fair Value Disclosure	6,362	5,843
Corporate Debt Securities
Short-term Investments [Abstract]
AFS Securities, Amortized Cost Basis	74,047	77,471
Available-for-sale Securities, Gross Unrealized Gain1	41	4
Available-for-sale Securities, Gross Unrealized Loss1	(15)	(125)
AFS Securities, Fair Value Disclosure	$ 74,073	$ 77,350

Contractual maturities of cash,

Contractual maturities of cash, cash equivalent and short-term investment (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
Cash and cash equivalents (1)	$ 26,367	$ 20,572
Short-term investments	92,409	96,202
Cash, cash equivalents and short-term investments	118,776	116,774
Maturity up to one year
Schedule of Available-for-sale Securities [Line Items]
Cash and cash equivalents (1)	26,367	20,572
Short-term investments	84,544	75,725
Cash, cash equivalents and short-term investments	110,911	96,297
maturity between 1 and 2 years
Schedule of Available-for-sale Securities [Line Items]
Cash and cash equivalents (1)	0	0
Short-term investments	7,865	20,477
Cash, cash equivalents and short-term investments	$ 7,865	$ 20,477

Schedule of the computation of

Schedule of the computation of basic and diluted net income (loss) per share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Numerator:
Net loss	$ (2,706)	$ (5,171)	$ (6,290)	$ (9,658)
Denominator:
Weighted Average Number of Shares Outstanding, Basic and Diluted	26,624	25,832	26,501	25,749
Net loss per share
Earnings Per Share, Basic and Diluted	$ (0.10)	$ (0.20)	$ (0.24)	$ (0.38)

Schedule of antidilutive securi

Schedule of antidilutive securities excluded from computation of earnings per share (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Options to purchase common stock, including ESPP
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	3,049	3,438	3,087	3,439
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	0	44	0	44
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	1,808	1,514	1,589	1,289

Schedule of Finite-Lived Intang

Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Finite-Lived Intangible Assets [Line Items]
Accumulated Amortization	$ 4,737	$ 4,365
Finite-Lived Intangible Assets, Net	2,003
Finite-Lived Intangible Assets, Useful Life
Intangible assets, gross	6,740	6,740
Intangible assets, net book value	2,003	2,375
Developed technology
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	3,650	3,650
Accumulated Amortization	2,292	2,094
Finite-Lived Intangible Assets, Net	1,358	1,556
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	2,520	2,520
Accumulated Amortization	2,019	1,934
Finite-Lived Intangible Assets, Net	501	586
Noncompete Agreements
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	460	460
Accumulated Amortization	340	258
Finite-Lived Intangible Assets, Net	120	202
Trademarks
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	110	110
Accumulated Amortization	86	79
Finite-Lived Intangible Assets, Net	$ 24	$ 31
Minimum | Developed technology
Finite-Lived Intangible Assets, Useful Life
Finite-lived intangible asset, useful life	4 years
Minimum | Customer relationships
Finite-Lived Intangible Assets, Useful Life
Finite-lived intangible asset, useful life	7 years
Minimum | Noncompete Agreements
Finite-Lived Intangible Assets, Useful Life
Finite-lived intangible asset, useful life	2 years
Minimum | Trademarks
Finite-Lived Intangible Assets, Useful Life
Finite-lived intangible asset, useful life	4 years
Maximum | Developed technology
Finite-Lived Intangible Assets, Useful Life
Finite-lived intangible asset, useful life	7 years
Maximum | Customer relationships
Finite-Lived Intangible Assets, Useful Life
Finite-lived intangible asset, useful life	9 years
Maximum | Noncompete Agreements
Finite-Lived Intangible Assets, Useful Life
Finite-lived intangible asset, useful life	4 years
Maximum | Trademarks
Finite-Lived Intangible Assets, Useful Life
Finite-lived intangible asset, useful life	7 years

Future amortization schedule (D

Future amortization schedule (Details) $ in Thousands	Jun. 30, 2016USD ($)
Goodwill and intangible assets [Abstract]
Finite-Lived Intangibles, AmortExp Remainder 2016	$ 347
Finite-Lived Intangible Assets, Amortization Expense, 2017	551
Finite-Lived Intangibles, AmortExp, 2018	441
Finite-Lived Intangibles, AmortExp, 2019	386
Finite-Lived Intangibles, AmortExp, 2020	201
Finite-Lived Intangibles, AmortExp, 2021	77
Finite-Lived Intangible Assets, Net	$ 2,003

Goodwill and Intangible Asset34

Goodwill and Intangible Assets Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2015	Dec. 31, 2015
Finite-Lived Intangible Assets [Line Items]
Goodwill	$ 9,988			$ 9,988
Intangibles - period amortization expense [Abstract]
Amortization expense	$ 200	$ 200	$ 400	$ 400

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Inventory, Net [Abstract]
Raw materials	$ 154	$ 36
Finished goods	4,213	2,677
Total inventories	$ 4,367	$ 2,713

Property and Equipment (Details

Property and Equipment (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015	Dec. 31, 2014
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 19,472		$ 16,248
Less: Accumulated depreciation	(13,591)		(12,628)
Property and equipment, net	5,881		3,620
Depreciation, Depletion and Amortization [Abstract]
Depreciation	500	$ 600	1,100	$ 1,300
Computer equipment and software
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	10,087		9,446
Furniture, fixtures and equipment
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	1,775		1,004
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	3,740		2,435
Manufacturing tools and equipment
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	3,316		3,134
Construction in process
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 554		$ 229

Investment in Sales Type Leases

Investment in Sales Type Leases (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Capital Leased Assets [Line Items]
Net Investment in Sales Type Leases, Future Minimum Payments-Gross	$ 2,384	$ 2,772
Net Investment in Sales Type Leases, Deferred Income	(1,186)	(1,292)
Net Investment in Sales Type Leases	1,198	1,480
Net Investment in Sales Type Leases, Current	(743)	(832)
Net Investment in Sales Type Leases, Noncurrent	$ 455	$ 648
Minimum
Capital Leased Assets [Line Items]
Lessors, Capital Leases, Term of contract	3 months
Maximum
Capital Leased Assets [Line Items]
Lessors, Capital Leases, Term of contract	4 years

Future payments- sales type lea

Future payments- sales type leases (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Balance Sheet Components [Abstract]
Sales-type Leases, Future Minimum Payments, Remainder of 2016	$ 637
Capital Leases, Future Minimum Payments Due in 2017	926
Sales-type Leases, Future Minimum Payments Due in 2018	636
Capital Leases, Future Minimum Payments Due in 2019	185
Net Investment in Sales Type Leases, Future Minimum Payments-Gross	$ 2,384	$ 2,772

Accrued Liabilities (Details)

Accrued Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Accrued Liabilities, Current [Abstract]
Payroll and related expenses	$ 7,050	$ 8,162
Accrued payables	2,087	1,835
Deferred Rent Credit, Current	107	326
Lease financing, current portion	780	706
Product warranty	602	701
Customer Refund Liability, Current	910	941
Sales and use tax payable	456	285
Other	391	383
Total accrued payroll and other current liabilities	$ 12,383	$ 13,339

Schedule of Product Liability (

Schedule of Product Liability (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward]
Product warranty accrual, at the beginning of the period	$ 620	$ 834	$ 806	$ 497
Warranty expenses accrued	178	93	350	157
Product Warranty Accrual, Preexisting, Increase (Decrease)	(39)	30	(240)	388
Warranty settlements made	(121)	(90)	(278)	(175)
Product warranty accrual, at the end of period	602	799	602	799
Product Warranty Accrual	638	867	638	867
Product Warranty Accrual, Noncurrent	$ (36)	$ (68)	$ (36)	$ (68)

Schedule of Future Minimum Rent

Schedule of Future Minimum Rental Payments for Operating Leases (Details) $ in Thousands	Jun. 30, 2016USD ($)
Operating Leases, Future Minimum Payments Due, by FY
Remainder of 2016	$ 980
Operating Leases, Future Minimum Payments, 2017	1,911
Operating Leases, Future Minimum Payments, 2018	1,727
Operating Leases, Future Minimum Payments, 2019	1,601
Operating Leases, Future Minimum Payments, 2020	1,549
Operating Leases, Future Minimum Payments, 2021	1,595
Operating Leases, Future Minimum Payments, Due Thereafter	402
Total minimum lease payments	$ 9,765

Litigation_ alleged shareholder

Litigation: alleged shareholder class action (Details)	6 Months Ended
	Jun. 30, 2016
Loss Contingencies [Line Items]
Loss Contingency, Settlement Agreement, Terms	9,000,000

Commitments Narrative (Details)

Commitments Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Unrecorded Unconditional Purchase Obligation [Line Items]
Operating Leases, Rent Expense, Net	$ 0.6	$ 0.6	$ 1.2	$ 1.1
Inventories
Unrecorded Unconditional Purchase Obligation [Line Items]
Unrecorded Unconditional Purchase Obligation	$ 6		$ 6		$ 7.8

Stock Option Activity (Details)

Stock Option Activity (Details) - Stock Options - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Number of Options (in shares):
Beginning balance	3,151,680
Options granted	0
Options exercised	(109,682)
Options canceled	(19,962)
Ending balance	3,022,036	3,151,680
Weighted Average Exercise Price (in dollars per share):
Beginning balance	$ 9.47
Options granted
Options exercised	4.77
Options canceled	12.17
Ending balance	$ 9.62	$ 9.47
Wtd avg remaining term, Outstanding	4 years 11 months 23 days	5 years 6 months
Aggregate intrinsic value, Outstanding	$ 14,887	$ 14,587

Summary of Equity B-S-M Assumpt

Summary of Equity B-S-M Assumptiuons (Details)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2014
Equity Option
Equity B-S-M Fair Value Assumptions
Expected Term (in years)		5 years 4 months 21 days
Volatility		41.30%
Interest Rate		1.62%
Dividend yield		0.00%			0.00%
Equity Option | Minimum
Equity B-S-M Fair Value Assumptions
Expected Term (in years)
Volatility				41.30%
Interest Rate				1.62%
Equity Option | Maximum
Equity B-S-M Fair Value Assumptions
Expected Term (in years)
Volatility				41.80%
Interest Rate				1.63%
2012 Employee Stock Purchase Plan | ESPP
Equity B-S-M Fair Value Assumptions
Expected Term (in years)	6 months	6 months	6 months	6 months
Volatility	38.00%	33.60%
Interest Rate	0.38%	0.09%
Dividend yield	0.00%	0.00%		0.00%
2012 Employee Stock Purchase Plan | ESPP | Minimum
Equity B-S-M Fair Value Assumptions
Expected Term (in years)
Volatility			38.00%	33.60%
Interest Rate			0.33%	0.07%
2012 Employee Stock Purchase Plan | ESPP | Maximum
Equity B-S-M Fair Value Assumptions
Expected Term (in years)
Volatility			41.50%	57.80%
Interest Rate			0.38%	0.09%

Summary of Restricted Stock Act

Summary of Restricted Stock Activity (Details) - Restricted Stock Units	6 Months Ended
	Jun. 30, 2016$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Comp-other than options - Period for Recognition- Comp cost not yet rocognized	2 years 1 month 24 days
Number of Shares:
Beginning balance | shares	1,351,728
Granted | shares	982,300
Vested | shares	(454,701)
Forfeited | shares	(71,786)
Ending balance | shares	1,807,541
Weighted Average Grant Date Fair Value per Share (in dollars per share):
Beginning balance | $ / shares	$ 11.54
Granted | $ / shares	12.50
Vested | $ / shares	12.22
Forfeited | $ / shares	11.86
Ending balance | $ / shares	$ 11.88

Share-based Compensaton Allocat

Share-based Compensaton Allocated to Expense Captions (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 3,145	$ 2,744	$ 5,691	$ 5,338
Cost of Sales
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	324	341	593	650
Research and Development Expense
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	304	283	530	543
Selling and Marketing Expense
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	1,278	1,061	2,288	2,095
General and Administrative Expense
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 1,239	$ 1,059	$ 2,280	$ 2,050
Equity Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend yield		0.00%			0.00%

Narrative (Details)

Narrative (Details) - USD ($) $ / shares in Units, $ in Millions	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Issued During Period, Shares, Employee Stock Purchase Plans	87,937	78,853
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Unamortized Compensation Cost, Stock Options	$ 2.9
Uamortized Compensation Cost Not yet Recognized, Period Remaining, Options	1 year 9 months 29 days
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options	$ 16.8
Stock Comp-other than options - Period for Recognition- Comp cost not yet rocognized	2 years 1 month 24 days
2012 Stock Option Plan | Stock options and restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Shares Available for Grant	1,937,081
2012 Employee Stock Purchase Plan | ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Shares Available for Grant	568,894
ESPP plan details [Abstract]
Share-based Compensation Arrangement by Share-based Payment Award, Per Share Weighted Average Price of Shares Purchased	$ 8.93	$ 8.28

Segments Operating Segments (De

Segments Operating Segments (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016USD ($)	Jun. 30, 2015USD ($)	Jun. 30, 2016USD ($)Segments	Jun. 30, 2015USD ($)
Segment Reporting [Abstract]
Number of reportable segments | Segments			2
Revenue
Product	$ 17,702	$ 13,320	$ 31,504	$ 25,782
Service	13,450	12,129	26,425	23,485
Total revenue	31,152	25,449	57,929	49,267
Cost of revenue
Product	5,944	4,723	10,393	9,155
Service	6,134	4,914	11,784	9,765
Cost of Goods and Services Sold	12,078	9,637	22,177	18,920
Gross profit
Product	11,758	8,597	21,111	16,627
Service	7,316	7,215	14,641	13,720
Total gross profit	19,074	15,812	35,752	30,347
Calculation of pretax profit (loss) [Abstract]
Operating expenses	21,800	20,912	42,134	39,809
Interest income, net and other	62	84	226	62
Loss before income taxes	$ (2,664)	$ (5,016)	$ (6,156)	$ (9,400)

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Income Tax Disclosure [Abstract]
Income Tax Expense (Benefit)	$ 42	$ 155	$ 134	$ 258

Business Acquisition - PPA (Det

Business Acquisition - PPA (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]
Goodwill	$ 9,988	$ 9,988

Business Acquisition Narrative

Business Acquisition Narrative (Details) - Noncompete Agreements	6 Months Ended
	Jun. 30, 2016
Minimum
Business Acquisition [Line Items]
Finite-lived intangible asset, useful life	2 years
Maximum
Business Acquisition [Line Items]
Finite-lived intangible asset, useful life	4 years