DTS 10-Q 7 Nov 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Nov. 01, 2016
Document and Entity Information
Entity Registrant Name	DTS, INC.
Entity Central Index Key	1,226,308
Document Type	10-Q
Document Period End Date	Sep. 30, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		17,872,368
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 26,686	$ 52,208
Short-term investments	13,083	9,657
Accounts receivable, net of allowance for doubtful accounts of $245 and $541 at September 30, 2016 and December 31, 2015, respectively	26,911	12,454
Prepaid expenses and other current assets	7,832	5,855
Income taxes receivable	2,276	4,130
Total current assets	76,788	84,304
Property and equipment, net	28,076	29,022
Intangible assets, net	144,907	157,936
Goodwill	90,692	108,726
Deferred income taxes	41,866	24,018
Other long-term assets	9,348	3,934
Total assets	391,677	407,940
Current liabilities:
Accounts payable	6,792	5,979
Accrued expenses	17,963	22,960
Deferred revenue	3,096	5,711
Income taxes payable	80	123
Current portion of long-term debt, net	26,486	21,486
Total current liabilities	54,417	56,259
Long-term debt, net	100,552	136,666
Other long-term liabilities	12,419	9,983
Commitments and contingencies (Note 9)
Stockholders' equity:
Preferred stock—$0.0001 par value, 5,000 shares authorized at September 30, 2016 and December 31, 2015; no shares issued and outstanding	0	0
Common stock—$0.0001 par value, 70,000 shares authorized at September 30, 2016 and December 31, 2015; 22,501 and 21,988 shares issued at September 30, 2016 and December 31, 2015, respectively; 17,834 and 17,321 shares outstanding at September 30, 2016 and December 31, 2015, respectively	3	3
Additional paid-in capital	272,479	258,660
Treasury stock, at cost—4,667 at September 30, 2016 and December 31, 2015	(111,331)	(111,331)
Accumulated other comprehensive income	778	778
Retained earnings	62,360	56,922
Total stockholders' equity	224,289	205,032
Total liabilities and stockholders' equity	$ 391,677	$ 407,940

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts (in dollars)	$ 245	$ 541
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	5,000	5,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized	70,000	70,000
Common stock, shares issued	22,501	21,988
Common stock, shares outstanding	17,834	17,321
Treasury stock, shares	4,667	4,667

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Income Statement [Abstract]
Revenue	$ 48,749	$ 30,673	$ 142,599	$ 99,036
Cost of revenue	6,449	2,702	18,751	8,229
Gross profit	42,300	27,971	123,848	90,807
Operating expenses:
Selling, general and administrative	26,283	21,348	71,563	59,317
Research and development	13,489	9,320	38,788	28,559
Change in fair value of contingent consideration	0	(400)	0	(400)
Total operating expenses	39,772	30,268	110,351	87,476
Operating income (loss)	2,528	(2,297)	13,497	3,331
Interest and other expense, net	(1,234)	(173)	(3,633)	(792)
Income (loss) before income taxes	1,294	(2,470)	9,864	2,539
Provision for income taxes	724	332	4,072	2,000
Net income (loss)	$ 570	$ (2,802)	$ 5,792	$ 539
Net income (loss) per common share:
Basic (in dollars per share)	$ 0.03	$ (0.16)	$ 0.33	$ 0.03
Diluted (in dollars per share)	$ 0.03	$ (0.16)	$ 0.32	$ 0.03
Weighted average shares outstanding:
Basic (in shares)	17,701	17,255	17,560	17,431
Diluted (in shares)	18,637	17,255	18,126	18,167
Cash dividend declared per common share (in dollars per share)	$ 0.02	$ 0	$ 0.02	$ 0

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 570	$ (2,802)	$ 5,792	$ 539
Other comprehensive income (loss), net of tax:
Unrealized gains and losses on available-for-sale securities and other, net	(4)	1	0	3
Total comprehensive income (loss)	$ 566	$ (2,801)	$ 5,792	$ 542

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash flows from operating activities:
Net income (loss)	$ 5,792	$ 539
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	20,103	10,838
Stock-based compensation charges	9,581	8,678
Deferred income taxes	(3,317)	(5,310)
Excess tax benefits from stock-based awards	(486)	(914)
Change in fair value of contingent consideration	0	(400)
Amortization of debt issuance costs	460	0
Other	45	353
Changes in operating assets and liabilities, net of business combinations:
Accounts receivable	(13,015)	(669)
Prepaid expenses and other assets	(2,658)	881
Accounts payable, accrued expenses and other liabilities	(4,277)	(1,884)
Deferred revenue	(2,615)	(2,831)
Income taxes receivable/payable	4,790	4,758
Net cash provided by operating activities	14,403	14,039
Cash flows from investing activities:
Purchases of available-for-sale investments	(26,718)	(34,666)
Maturities of available-for-sale investments	11,125	8,800
Sales of available-for-sale investments	12,125	2,502
Cash paid for business combinations, net	(2,404)	0
Purchases of property and equipment	(2,530)	(2,525)
Purchases of intangible assets	(2,429)	(1,853)
Other investing activities	0	(300)
Net cash used in investing activities	(10,831)	(28,042)
Cash flows from financing activities:
Repayments of long-term borrowings	(31,406)	0
Payment of contingent consideration	(480)	0
Holdback and other payments related to business combinations	(1,170)	0
Proceeds from the issuance of common stock under stock-based compensation plans	6,138	7,962
Cash paid for shares withheld for taxes	(2,308)	(2,864)
Dividend payments	(354)	0
Excess tax benefits from stock-based awards	486	914
Purchases of treasury stock	0	(19,147)
Net cash used in financing activities	(29,094)	(13,135)
Net change in cash and cash equivalents	(25,522)	(27,138)
Cash and cash equivalents, beginning of period	52,208	99,435
Cash and cash equivalents, end of period	26,686	72,297
Significant non-cash transactions:
Holdbacks for business combinations	$ 1,658	$ 0

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements of DTS, Inc. (the "Company") have been prepared in accordance with accounting principles generally accepted in the United States of America (US GAAP) and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by US GAAP for complete financial statements. In the opinion of management, the unaudited condensed consolidated financial statements reflect all adjustments considered necessary for a fair statement of the Company's financial position at September 30, 2016 , and the results of operations and cash flows for the periods presented. All intercompany transactions have been eliminated in consolidation. Operating results for interim periods are not necessarily indicative of the results that may be expected for the full year. The information included in this Form 10-Q should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2015 , filed with the Securities and Exchange Commission on March 7, 2016 . The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. Pending Acquisition by Tessera Technologies, Inc. On September 19, 2016, the Company entered into the Merger Agreement, which provides, upon the terms and subject to the conditions thereof, Merger Sub will merge with and into the Company, with the Company surviving the DTS Merger as a wholly owned subsidiary of Holdco. Following the completion of the DTS Merger, DTS common stock will cease to be listed on the Nasdaq Global Select Market. At the effective time of the DTS Merger, each outstanding share of DTS common stock (other than shares that are held by Tessera or Holdco, or any of their respective subsidiaries or held by DTS as treasury stock, or that are owned by DTS, Merger Sub or any wholly owned subsidiary of DTS, and shares with respect to which appraisal rights pursuant to Section 262 of the Delaware General Corporation Law are properly exercised and not withdrawn) will be automatically converted into the right to receive $42.50 in cash, without interest and less any required tax withholding. The Special Meeting is scheduled to be held on December 1, 2016 to consider and vote upon, among other things, a proposal to adopt the Merger Agreement. At the effective time of the DTS Merger, (i) each then outstanding, in-the-money, vested option to purchase shares of DTS common stock will be canceled, and the holder of such option will be entitled to receive cash as set forth in the Merger Agreement; (ii) each then outstanding, out-of-the-money, vested or unvested option and each then outstanding, in-the-money, unvested option to purchase shares of DTS common stock will be assumed by Holdco and converted into an option to purchase shares of Holdco common stock pursuant to the exchange ratio set forth in the Merger Agreement; (iii) each vested DTS restricted stock unit award will be canceled, and the holder of such restricted stock unit award will be entitled to receive cash as set forth in the Merger Agreement; (iv) each unvested DTS restricted stock unit award will be assumed by Holdco and converted into a Holdco restricted stock unit award pursuant to the exchange ratio set forth in the Merger Agreement; and (v) each then outstanding DTS performance-based restricted stock unit (“PSU”) award (treating for this purpose any performance-based vesting condition to which such PSU award is subject as of the effective time of the DTS Merger or was as of the date of the Merger Agreement as having been attained at the “target level”) will become fully vested and canceled, and the holder of such PSU award will be entitled to receive cash as set forth in the Merger Agreement. The transaction is expected to close in December 2016. Consummation of the transaction remains subject to customary closing conditions, including, among other things, (i) adoption of the Merger Agreement by the Company’s stockholders; (ii) the absence of any injunctions or any other legal order prohibiting or restraining the DTS Merger; (iii) subject to certain exceptions, the accuracy of the Company’s and Tessera’s representations and warranties in the Merger Agreement; (iv) performance by the Company and Tessera of their respective obligations, covenants and agreements contained in the Merger Agreement; and (v) the absence of any material adverse effect on the Company. The Merger Agreement contains customary representations and warranties made by each of the Company and Tessera, and also contains customary pre-closing covenants, including covenants, among others, (i) for each of the parties to use its reasonable best efforts to cause the DTS Merger to be consummated; (ii) for the Company to operate its businesses in the ordinary course consistent with past practice and to refrain from taking certain actions without Tessera’s consent; (iii) for the Company not to declare or pay any dividend (whether in cash, stock, property or otherwise) in respect of any shares of DTS common stock and (iv) for the Company not to solicit, initiate or knowingly take any action to facilitate or encourage any alternative acquisition proposal or proposal or inquiry that constitutes, or would reasonably be expected to lead to, an alternative acquisition proposal. The Merger Agreement contains certain termination rights for each of the Company and Tessera, including in the event that (i) the DTS Merger is not consummated on or before February 28, 2017; (ii) the approval of the stockholders of the Company is not obtained at the Special Meeting; or (iii) the Company terminates the Merger Agreement to enter into a binding agreement providing for a superior proposal. The Merger Agreement further provides that, upon termination of the Merger Agreement under specified circumstances, including a termination of the Merger Agreement by the Company to enter into a binding agreement providing for a superior proposal, the Company must pay to Tessera a termination fee equal to $25,500 in cash. The description of the Merger Agreement herein does not purport to be complete and is qualified in its entirety by reference to the Merger Agreement, which is attached as Exhibit 2.1 to the Current Report on Form 8-K filed by the Company on September 20, 2016, and is hereby incorporated by reference. Additionally, the Proxy Statement filed by the Company on October 21, 2016 describes the Merger Agreement and the DTS Merger in more detail. Investors and stockholders of DTS are urged to read the Proxy Statement and any other relevant documents that have been or will be filed with the SEC carefully and in their entirety because they contain or will contain important information about the DTS Merger. For both the three and nine months ended September 30, 2016 , the Company's condensed consolidated statements of operations included $3,116 of operating expenses associated with the DTS Merger. Acquisitions In the third quarter of 2016, the Company completed two immaterial acquisitions related to the Company's HD Radio technology. Both purchases were accounted for using the acquisition method of accounting. The Company considers the allocations of the purchase price for both acquisitions to be immaterial to the condensed consolidated financial statements. The Company's financial results include these acquisitions from their dates of acquisition.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	9 Months Ended
	Sep. 30, 2016
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, "Revenue from Contracts with Customers (Topic 606)." This ASU outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and superseded the then most current revenue recognition guidance, including industry-specific guidance. As updated in ASU 2015-14, for public entities, this ASU will be effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. The FASB has further clarified Topic 606 by issuing ASU 2016-08 (principal versus agent considerations), ASU 2016-10 (identifying performance obligations and licensing), and ASU 2016-12 (narrow-scope improvements and practical expedients). Entities have the option of applying either a full retrospective approach or a modified approach to adopt the ASU. The Company is evaluating the impact of adoption of this ASU on its consolidated financial statements. In September 2015, the FASB issued ASU 2015-16, "Business Combinations (Topic 805), Simplifying the Accounting for Measurement-Period Adjustments." The ASU requires that adjustments to provisional amounts identified during the measurement period be recognized in the reporting period in which the adjustment amounts are determined. For public entities, the ASU is effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. The ASU must be applied prospectively to adjustments to provisional amounts that occur after the effective date. The Company adopted this ASU in the first quarter of 2016. For information on measurement period adjustments relating to the acquisition of iBiquity Digital Corporation, refer to Note 5 , " Business Combination ." In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)." This ASU requires the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous US GAAP. For public entities, this ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. Entities are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach, but entities may elect certain practical expedients when implementing the ASU. The Company is evaluating the impact of adoption of this ASU on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, "Compensation - Stock Based Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting." This ASU simplifies several aspects of accounting for stock-based compensation transactions, including income tax consequences and presentation on the statement of cash flows. For public business entities, this ASU is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted. The Company is evaluating the impact of adoption of this ASU on its consolidated financial statements. In October 2016, the FASB issued ASU 2016-16, "Intra-Entity Transfers of Assets Other Than Inventory." This ASU requires entities to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. For public entities, this ASU is effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within those annual reporting periods. Early adoption is permitted for all entities as of the beginning of an annual reporting period for which financial statements have not been issued. The Company is evaluating the impact of adoption of this ASU on its consolidated financial statements.

Cash, Cash Equivalents and Inve

Cash, Cash Equivalents and Investments	9 Months Ended
	Sep. 30, 2016
Investments and Cash [Abstract]
Cash, Cash Equivalents and Investments	Cash, Cash Equivalents and Investments Cash, cash equivalents and investments, classified as available-for-sale, consisted of: As of As of Cash and cash equivalents: Cash $ 13,765 $ 16,257 Money market accounts 10,923 35,951 Commercial paper 1,998 — Total cash and cash equivalents $ 26,686 $ 52,208 Short-term investments: Corporate bonds $ 12,091 $ 9,657 Commercial paper 992 — Total short-term investments $ 13,083 $ 9,657 The Company had no material gross realized or unrealized holding gains or losses from its investments for the periods presented within this quarterly report. The contractual maturities of investments as of September 30, 2016 were all due within one year.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2016
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements The Company's investments are required to be measured and recorded at fair value on a recurring basis. The Company obtains the fair value of its available-for-sale securities, which are not in active markets, from a third-party professional pricing service using quoted market prices for identical or comparable instruments, rather than direct observations of quoted prices in active markets. The Company's professional pricing service gathers observable inputs for all of its fixed income securities from a variety of industry data providers (e.g., large custodial institutions) and other third-party sources. Once the observable inputs are gathered, all data points are considered and the fair value is determined. The Company validates the quoted market prices provided by its primary pricing service by comparing their assessment of the fair values against the fair values provided by its investment managers. The Company's investment managers use similar techniques to its professional pricing service to derive pricing as described above. As all significant inputs were observable, derived from observable information in the marketplace or supported by observable levels at which transactions are executed in the marketplace, the Company classifies its available-for-sale securities within Level 2 of the fair value hierarchy. The Company's financial assets and liabilities, measured at fair value on a recurring basis, were: Fair Value Measurements Assets (Liabilities) Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) As of September 30, 2016 Corporate bonds $ 12,091 $ — $ 12,091 $ — Commercial paper $ 992 $ — $ 992 $ — As of December 31, 2015 Corporate bonds $ 9,657 $ — $ 9,657 $ — Contingent consideration(1) $ (480 ) $ — $ — $ (480 ) _______________________________________ (1) Represents the final payment under the contingent consideration related to the acquisition of assets from Phorus, Inc. and Phorus, LLC, which was classified in accrued expenses on the consolidated balance sheet as of December 31, 2015. In the first quarter of 2016, the Company paid this remaining liability in full.

Business Combination

Business Combination	9 Months Ended
	Sep. 30, 2016
Business Combinations [Abstract]
Business Combination	Business Combination On October 1, 2015 , the Company completed the acquisition of iBiquity Digital Corporation (“iBiquity”), pursuant to the Agreement and Plan of Merger, dated August 31, 2015. The acquisition was accounted for under the acquisition method of accounting. On September 30, 2016, the Company finalized the purchase price allocation: Weighted Preliminary Fair Value as of December 31, 2015 Measurement Period Adjustments (1) Final Fair Value Cash and cash equivalents $ 20,837 $ 20,837 Short-term investments 4,000 4,000 Accounts receivable 13,468 644 (2) 14,112 Prepaid expenses and other current assets 1,058 131 (3) 1,189 Property and equipment 1,656 1,656 Goodwill 58,370 (20,299 ) (4) 38,071 Identifiable intangible assets: Customer relationships 10 70,225 Developed technology 10 33,590 Tradenames 10 9,590 IPR&D 7,583 Total identifiable intangible assets 120,988 120,988 Other long-term assets 190 (60 ) (3) 130 Deferred tax assets (liabilities), net (13,058 ) 21,258 (5) 8,200 Accounts payable (535 ) (535 ) Accrued expenses (21,402 ) (1,882 ) (6) (23,284 ) Deferred revenue (1,019 ) (1,019 ) Other long-term liabilities (6,783 ) 208 (5) (6,575 ) Total purchase price $ 177,770 — $ 177,770 _______________________________________ (1) All adjustments were recorded prospectively within the Company's condensed consolidated balance sheet. (2) Primarily consists of the recognition of underreported royalty recoveries owed to iBiquity prior to the close of the acquisition, which were collected during the measurement period. (3) Consists of miscellaneous working capital and other immaterial adjustments. (4) Represents the net impact to goodwill of all measurement period adjustments recorded. (5) Primarily consists of the finalization of the measurement of acquired net operating loss carryforwards (NOLs) that can be realized, subject to the limitations under Section 382 of the Internal Revenue Code of 1986, as amended (“Section 382”). During the measurement period, the Company was in the process of determining the amount of additional NOLs that would be available if certain unrealized gains attributed to periods before the ownership change date are recognized. In connection with the intercompany transfer of intellectual property rights discussed in Note 10, “Income Taxes,” the Company finalized the measurement of the amount of additional NOLs that are available if certain unrealized gains attributable to periods before the ownership change date are recognized. The decrease to other long-term liabilities is primarily due to the finalization of the measurement of certain uncertain tax positions. (6) Primarily consists of adjustments to the estimated fair value of certain acquired legal contingencies and certain rebate accruals, determined based on information obtained during the measurement period.

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets	9 Months Ended
	Sep. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Other Intangible Assets	Goodwill and Other Intangible Assets The changes in the Company's goodwill were: Goodwill Balance at December 31, 2015 $ 108,726 Purchase price allocation adjustments, net (20,299 ) Increase due to current period business combinations 2,265 Balance at September 30, 2016 $ 90,692 The Company's other intangible assets were: Weighted Average Life (Years) As of September 30, 2016 As of December 31, 2015 Gross Amount Accumulated Amortization Net Carrying Amount Gross Amount Accumulated Amortization Net Carrying Amount Customer relationships 9 $ 116,838 $ (31,513 ) $ 85,325 $ 116,026 $ (22,039 ) $ 93,987 Acquired technology 9 56,151 (18,375 ) 37,776 52,073 (14,071 ) 38,002 Tradenames 9 12,912 (3,683 ) 9,229 12,851 (2,452 ) 10,399 Contractual rights 5 8,363 (3,833 ) 4,530 7,713 (2,527 ) 5,186 Patents 5 5,155 (1,821 ) 3,334 3,805 (1,538 ) 2,267 Trademarks 10 919 (468 ) 451 894 (417 ) 477 Non-compete 2 553 (496 ) 57 492 (457 ) 35 Total amortizable intangible assets $ 200,891 $ (60,189 ) $ 140,702 $ 193,854 $ (43,501 ) $ 150,353 IPR&D 4,205 — 4,205 7,583 — 7,583 Total other intangible assets $ 205,096 $ (60,189 ) $ 144,907 $ 201,437 $ (43,501 ) $ 157,936 During the nine months ended September 30, 2016 , the Company reclassified $ 3,378 of IPR&D assets not previously subject to amortization to amortizable intangible assets. Amortization of intangible assets included in the Company's condensed consolidated statements of operations was: For the Three Months For the Nine Months 2016 2015 2016 2015 Cost of revenue $ 5,111 $ 2,392 $ 15,085 $ 7,146 Operating expenses 543 266 1,620 792 Total amortization of intangible assets $ 5,654 $ 2,658 $ 16,705 $ 7,938 The Company expects the future amortization of amortizable intangible assets held at September 30, 2016 to be as follows: Years Ending December 31, Estimated Amortization Expense 2016 (remaining 3 months) $ 5,775 2017 22,640 2018 20,559 2019 19,142 2020 15,676 2021 and thereafter 56,910 Total $ 140,702

Accrued Expenses

Accrued Expenses	9 Months Ended
	Sep. 30, 2016
Payables and Accruals [Abstract]
Accrued Expenses	Accrued Expenses Accrued expenses consisted of: As of As of Accrued payroll and related benefits $ 13,670 $ 17,998 Contingent consideration — 480 Other 4,293 4,482 Total accrued expenses $ 17,963 $ 22,960

Long-term Debt

Long-term Debt	9 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
Long-term Debt	Long-term Debt On October 1, 2015, the Company entered into a credit agreement with Wells Fargo Bank, National Association and other lenders (the "Credit Agreement"), which provided the Company with a term loan and a revolver. On June 24, 2016, the Company entered into the First Amendment to Credit Agreement (the "Amendment") in connection with the intercompany transfer of intellectual property rights discussed in Note 10 , " Income Taxes ." The Amendment requires the Company to make prepayments of $20,000 of the term loan in 2016. During the three months ended June 30 and September 30, 2016, the Company made prepayments of $10,000 and $5,000 , respectively, in addition to the scheduled quarterly principal payments of $5,469 in each quarter. Under the Amendment, the final prepayment of $5,000 is due by December 30, 2016. These prepayments will be applied to the scheduled principal installments under the Credit Agreement in inverse order of maturity, beginning with the final principal balance due on October 1, 2020. The original scheduled quarterly principal installment payments under the Credit Agreement are unchanged by the Amendment. The Company's outstanding balances under the Credit Agreement, presented net of certain debt issuance costs on the condensed consolidated balance sheets, were: As of As of Debt outstanding under term loan, current portion $ 26,875 $ 21,875 Debt issuance costs, current portion (389 ) (389 ) Current portion of long-term debt, net $ 26,486 $ 21,486 Debt outstanding under term loan, long-term $ 66,719 $ 103,125 Debt outstanding under revolver, long-term 35,000 35,000 Debt issuance costs, long-term (1,167 ) (1,459 ) Long-term debt, net $ 100,552 $ 136,666 Future long-term debt principal payments are as follows: Years Ending December 31, 2016 (remaining 3 months) $ 10,469 2017 21,876 2018 21,876 2019 21,876 2020 52,497 Total $ 128,594 Interest expense, including amortization of debt issuance costs, was: For the Three Months For the Nine Months 2016 2015 2016 2015 $ 983 $ 75 $ 3,276 $ 223

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies During its normal course of business, the Company has made certain indemnities, commitments and guarantees under which it may be required to make payments in relation to certain transactions. Those indemnities include intellectual property indemnities to the Company's customers in connection with the sale of its products and the licensing of its technology, indemnities for liabilities associated with the infringement of other parties' technology based upon the Company's products and technology, and indemnities to the Company's directors and officers of the Company to the maximum extent permitted under the laws of the State of Delaware. The duration of these indemnities, commitments and guarantees varies, and in certain cases, is indefinite. The majority of these indemnities, commitments and guarantees do not provide for any limitation of the maximum potential future payments that the Company could be obligated to make. To date, the Company has not been required to make any payments and has not recorded any liability for these indemnities, commitments and guarantees in its consolidated balance sheets. The Company does, however, accrue for losses for any known contingent liability, including those that may arise from indemnification provisions, when future payment is probable. Under certain contractual rights arrangements, the Company may be obligated to pay up to approximately $7,200 over an estimated period of approximately four years if certain milestones are achieved. In connection with the acquisition of iBiquity, the Company evaluated the potential synergies and future operations of the combined entity and implemented a restructuring plan in the fourth quarter of 2015, impacting approximately 70 employees. As of December 31, 2015, the Company had accrued $ 5,517 of severance and related costs. For the nine months ended September 30, 2016 , the Company recorded additional severance and related costs of $ 200 within operating expenses in the condensed consolidated statement of operations. During the nine months ended September 30, 2016 , the Company paid $ 4,682 of severance and related costs, and as of September 30, 2016 , $ 1,035 remained accrued under certain separation agreements, which is expected to be paid within the next nine months. Litigation Robert Garfield v. DTS, Inc. On October 26, 2016, an alleged stockholder of the Company filed a putative class action lawsuit, captioned Robert Garfield v. DTS, Inc., et al., Case Number TBD, in the Superior Court of California, Ventura County. The defendants are the Company, the members of its Board of Directors, the Company's financial advisor in connection with the DTS Merger, and Tessera. The complaint alleges that the Company's directors breached their fiduciary duties by agreeing to inadequate merger consideration and engaging in a sales process that is in their best interests, but not the interests of the Company's other stockholders, and that the Company and its directors committed a breach of fiduciary duty by causing the issuance of a Proxy Statement that fails to disclose all material facts concerning the DTS Merger. The complaint alleges that the Company's financial advisor and Tessera abetted the purported breaches. The complaint seeks an order enjoining the merger or, if it is consummated, an order rescinding it. The complaint also seeks a reduction in the termination fee payable by the Company to Tessera, plus damages and attorneys’ fees. The Company believes the complaint is meritless and intends to defend the action. Paul Parshall v. DTS, Inc. On November 2, 2016, an alleged stockholder of the Company filed a putative class action lawsuit, captioned Paul Parshall v. DTS, Inc., et al., Case Number 12870-CB, in the Court of Chancery of the State of Delaware. The defendants are the Company, the members of its Board of Directors, Tessera, Tempe Holdco Corporation, Tempe Merger Sub Corporation, and Arizona Merger Sub Corporation. The complaint alleges that the Company's directors breached their fiduciary duties by causing the issuance of a Proxy Statement that fails to disclose all material facts concerning the DTS Merger. The complaint alleges that the Company, Tessera, Tempe Holdco Corporation, Tempe Merger Sub Corporation, and Arizona Merger Sub Corporation abetted the individuals’ purported breaches. The complaint seeks an order enjoining the merger or, if it is consummated, an order rescinding it, plus rescissory damages and attorneys’ fees. The Company believes the complaint is meritless and intends to defend the action.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2016
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Income taxes for quarterly periods are computed using the estimated annual effective tax rate for the year along with discrete items identified in the quarter. For the nine months ended September 30, 2016 and 2015 , the Company's effective tax rate was approximately 41% and 79% , respectively. The effective tax rate for 2016 differed from the US statutory rate of 35% primarily due to the impact of a foreign loss in a jurisdiction that will not result in a tax benefit, non-creditable foreign withholding taxes and non-deductible transaction costs, partially offset by certain foreign earnings subject to lower tax rates and research and development tax credits. The effective tax rate for 2015 differed from the US statutory rate primarily due to the impact of a foreign loss in a jurisdiction that will not result in a tax benefit, non-creditable foreign withholding taxes and non-deductible transaction costs, partially offset by certain foreign earnings subject to lower tax rates, the federal tax deduction for domestic production activities and state research and development tax credits. The Company has a strategy of commercializing certain non-US intellectual property rights from outside the US. In line with this strategy, in June 2016, the Company completed the implementation of an intercompany transfer of certain intellectual property licensing rights acquired from iBiquity to certain of the Company's foreign subsidiaries. The transaction was implemented to align with the Company's current operating processes, to optimize the global legal, operational and tax structure, and to allow for the efficient recovery of net operating loss carryforwards acquired from iBiquity. The transaction will not have a material impact on the Company’s effective tax rate in 2016 but should benefit future periods as a result of the non-US income being subject to lower tax rates and the ability to amortize the intellectual property for tax purposes in the foreign jurisdictions. As of September 30, 2016 and December 31, 2015 , the Company's uncertain tax positions were $18,743 and $19,454 , respectively, of which $9,604 and $9,112 , respectively, were recorded in other long-term liabilities. The remaining amounts were recorded as a reduction to non-current deferred tax assets. The decrease was primarily due to the reversal of an uncertain tax position relating to the deductibility of certain expenses. The Company believes that within the next twelve months it is reasonably possible that unrecognized tax benefits will decrease by approximately $ 300 due to the expiration of certain statutes of limitations. Any resolution of the Company's uncertain tax positions may impact the Company's effective tax rate. The Company believes its accruals for uncertain tax positions are adequate for all open years, based on the assessment of many factors including past experience and interpretations of tax law applied to the facts of each matter. Inherent uncertainties exist in estimating accruals for uncertain tax positions due to the progress of income tax audits and changes in tax law, both legislated and concluded through the various jurisdictions' tax court systems. The Company may, from time to time, be assessed interest or penalties by major tax jurisdictions, although any such assessments historically have been minimal and immaterial to the Company's consolidated financial statements. Interest expense and penalties related to income taxes are included in income tax expense. The Company, or one of its subsidiaries, files income tax returns in the US and other foreign jurisdictions. The Company is no longer subject to income tax examinations by the Internal Revenue Service (IRS) for years prior to 2013 and by the California Franchise Tax Board (FTB) for years prior to 2011 except for certain prior period carryforwards. Significant judgment is required in determining the consolidated provision for income taxes as the Company considers each tax jurisdiction's taxable earnings and the impact of the tax audit process. The final outcome of tax audits by the IRS, the FTB or other state tax authorities, and various foreign tax authorities could differ materially from amounts reflected in the condensed consolidated financial statements. Licensing revenue is recognized gross of withholding taxes that are remitted by the Company's licensees directly to the local tax authorities. For the three months ended September 30, 2016 and 2015 , withholding taxes were $711 and $632 , respectively. For the nine months ended September 30, 2016 and 2015 , withholding taxes were $2,522 and $1,614 , respectively. The increase in withholding taxes for the nine month period is primarily due to increases in revenue resulting from the iBiquity acquisition in October 2015.

Net Income (Loss) Per Common Sh

Net Income (Loss) Per Common Share	9 Months Ended
	Sep. 30, 2016
Earnings Per Share [Abstract]
Net Income Per Common Share	Net Income (Loss) Per Common Share Basic net income (loss) per common share is calculated by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per common share is calculated by dividing net income (loss) by the sum of the weighted average number of common shares outstanding plus the dilutive effect of any outstanding stock options, unvested restricted stock, any unvested PSUs for which the performance conditions have been satisfied at the reporting date, and the Company's employee stock purchase plan (ESPP) using the treasury stock method. Due to the net loss for the three months ended September 30, 2015, all potential common shares were excluded from the diluted shares outstanding for this period. The computation of basic and diluted net income (loss) per common share was: For the Three Months For the Nine Months 2016 2015 2016 2015 Numerator: Net income (loss) $ 570 $ (2,802 ) $ 5,792 $ 539 Denominator: Weighted average shares outstanding 17,701 17,255 17,560 17,431 Effect of dilutive securities: Stock options 638 — 363 568 Restricted stock 278 — 192 159 ESPP 20 — 11 9 Weighted average diluted shares outstanding 18,637 17,255 18,126 18,167 Basic net income (loss) per common share $ 0.03 $ (0.16 ) $ 0.33 $ 0.03 Diluted net income (loss) per common share $ 0.03 $ (0.16 ) $ 0.32 $ 0.03 Anti-dilutive shares excluded from the determination of diluted net income (loss) per share 305 3,779 1,475 535

Dividend

Dividend	9 Months Ended
	Sep. 30, 2016
Equity [Abstract]
Dividend	Dividend On August 8, 2016, the Company announced that the Board of Directors approved a cash dividend of $ 0.02 per common share, which was paid on August 31, 2016 to stockholders of record on August 22, 2016. Dividend payments for the three and nine months ended September 30, 2016 were $354 , and were recorded as a reduction to retained earnings. Pursuant to the Merger Agreement with Tessera, the Company is not permitted to declare or pay any dividend without Tessera's consent.

Cash, Cash Equivalents and In19

Cash, Cash Equivalents and Investments (Tables)	9 Months Ended
	Sep. 30, 2016
Investments and Cash [Abstract]
Schedule of cash, cash equivalents and investments	Cash, cash equivalents and investments, classified as available-for-sale, consisted of: As of As of Cash and cash equivalents: Cash $ 13,765 $ 16,257 Money market accounts 10,923 35,951 Commercial paper 1,998 — Total cash and cash equivalents $ 26,686 $ 52,208 Short-term investments: Corporate bonds $ 12,091 $ 9,657 Commercial paper 992 — Total short-term investments $ 13,083 $ 9,657

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2016
Fair Value Disclosures [Abstract]
Schedule of financial assets and liabilities, measured at fair value on a recurring basis	The Company's financial assets and liabilities, measured at fair value on a recurring basis, were: Fair Value Measurements Assets (Liabilities) Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) As of September 30, 2016 Corporate bonds $ 12,091 $ — $ 12,091 $ — Commercial paper $ 992 $ — $ 992 $ — As of December 31, 2015 Corporate bonds $ 9,657 $ — $ 9,657 $ — Contingent consideration(1) $ (480 ) $ — $ — $ (480 ) _______________________________________ (1) Represents the final payment under the contingent consideration related to the acquisition of assets from Phorus, Inc. and Phorus, LLC, which was classified in accrued expenses on the consolidated balance sheet as of December 31, 2015. In the first quarter of 2016, the Company paid this remaining liability in full.

Business Combination (Tables)

Business Combination (Tables)	9 Months Ended
	Sep. 30, 2016
Business Combinations [Abstract]
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed	On September 30, 2016, the Company finalized the purchase price allocation: Weighted Preliminary Fair Value as of December 31, 2015 Measurement Period Adjustments (1) Final Fair Value Cash and cash equivalents $ 20,837 $ 20,837 Short-term investments 4,000 4,000 Accounts receivable 13,468 644 (2) 14,112 Prepaid expenses and other current assets 1,058 131 (3) 1,189 Property and equipment 1,656 1,656 Goodwill 58,370 (20,299 ) (4) 38,071 Identifiable intangible assets: Customer relationships 10 70,225 Developed technology 10 33,590 Tradenames 10 9,590 IPR&D 7,583 Total identifiable intangible assets 120,988 120,988 Other long-term assets 190 (60 ) (3) 130 Deferred tax assets (liabilities), net (13,058 ) 21,258 (5) 8,200 Accounts payable (535 ) (535 ) Accrued expenses (21,402 ) (1,882 ) (6) (23,284 ) Deferred revenue (1,019 ) (1,019 ) Other long-term liabilities (6,783 ) 208 (5) (6,575 ) Total purchase price $ 177,770 — $ 177,770 _______________________________________ (1) All adjustments were recorded prospectively within the Company's condensed consolidated balance sheet. (2) Primarily consists of the recognition of underreported royalty recoveries owed to iBiquity prior to the close of the acquisition, which were collected during the measurement period. (3) Consists of miscellaneous working capital and other immaterial adjustments. (4) Represents the net impact to goodwill of all measurement period adjustments recorded. (5) Primarily consists of the finalization of the measurement of acquired net operating loss carryforwards (NOLs) that can be realized, subject to the limitations under Section 382 of the Internal Revenue Code of 1986, as amended (“Section 382”). During the measurement period, the Company was in the process of determining the amount of additional NOLs that would be available if certain unrealized gains attributed to periods before the ownership change date are recognized. In connection with the intercompany transfer of intellectual property rights discussed in Note 10, “Income Taxes,” the Company finalized the measurement of the amount of additional NOLs that are available if certain unrealized gains attributable to periods before the ownership change date are recognized. The decrease to other long-term liabilities is primarily due to the finalization of the measurement of certain uncertain tax positions. (6) Primarily consists of adjustments to the estimated fair value of certain acquired legal contingencies and certain rebate accruals, determined based on information obtained during the measurement period.

Goodwill and Other Intangible22

Goodwill and Other Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill	The changes in the Company's goodwill were: Goodwill Balance at December 31, 2015 $ 108,726 Purchase price allocation adjustments, net (20,299 ) Increase due to current period business combinations 2,265 Balance at September 30, 2016 $ 90,692
Summary of the Company's finite lived intangible assets	The Company's other intangible assets were: Weighted Average Life (Years) As of September 30, 2016 As of December 31, 2015 Gross Amount Accumulated Amortization Net Carrying Amount Gross Amount Accumulated Amortization Net Carrying Amount Customer relationships 9 $ 116,838 $ (31,513 ) $ 85,325 $ 116,026 $ (22,039 ) $ 93,987 Acquired technology 9 56,151 (18,375 ) 37,776 52,073 (14,071 ) 38,002 Tradenames 9 12,912 (3,683 ) 9,229 12,851 (2,452 ) 10,399 Contractual rights 5 8,363 (3,833 ) 4,530 7,713 (2,527 ) 5,186 Patents 5 5,155 (1,821 ) 3,334 3,805 (1,538 ) 2,267 Trademarks 10 919 (468 ) 451 894 (417 ) 477 Non-compete 2 553 (496 ) 57 492 (457 ) 35 Total amortizable intangible assets $ 200,891 $ (60,189 ) $ 140,702 $ 193,854 $ (43,501 ) $ 150,353 IPR&D 4,205 — 4,205 7,583 — 7,583 Total other intangible assets $ 205,096 $ (60,189 ) $ 144,907 $ 201,437 $ (43,501 ) $ 157,936
Summary of the Company's indefinite lived intangible assets	The Company's other intangible assets were: Weighted Average Life (Years) As of September 30, 2016 As of December 31, 2015 Gross Amount Accumulated Amortization Net Carrying Amount Gross Amount Accumulated Amortization Net Carrying Amount Customer relationships 9 $ 116,838 $ (31,513 ) $ 85,325 $ 116,026 $ (22,039 ) $ 93,987 Acquired technology 9 56,151 (18,375 ) 37,776 52,073 (14,071 ) 38,002 Tradenames 9 12,912 (3,683 ) 9,229 12,851 (2,452 ) 10,399 Contractual rights 5 8,363 (3,833 ) 4,530 7,713 (2,527 ) 5,186 Patents 5 5,155 (1,821 ) 3,334 3,805 (1,538 ) 2,267 Trademarks 10 919 (468 ) 451 894 (417 ) 477 Non-compete 2 553 (496 ) 57 492 (457 ) 35 Total amortizable intangible assets $ 200,891 $ (60,189 ) $ 140,702 $ 193,854 $ (43,501 ) $ 150,353 IPR&D 4,205 — 4,205 7,583 — 7,583 Total other intangible assets $ 205,096 $ (60,189 ) $ 144,907 $ 201,437 $ (43,501 ) $ 157,936
Summary of amortization of intangible assets	Amortization of intangible assets included in the Company's condensed consolidated statements of operations was: For the Three Months For the Nine Months 2016 2015 2016 2015 Cost of revenue $ 5,111 $ 2,392 $ 15,085 $ 7,146 Operating expenses 543 266 1,620 792 Total amortization of intangible assets $ 5,654 $ 2,658 $ 16,705 $ 7,938
Schedule of expected future amortization of intangible assets	The Company expects the future amortization of amortizable intangible assets held at September 30, 2016 to be as follows: Years Ending December 31, Estimated Amortization Expense 2016 (remaining 3 months) $ 5,775 2017 22,640 2018 20,559 2019 19,142 2020 15,676 2021 and thereafter 56,910 Total $ 140,702

Accrued Expenses (Tables)

Accrued Expenses (Tables)	9 Months Ended
	Sep. 30, 2016
Payables and Accruals [Abstract]
Schedule of accrued expenses	Accrued expenses consisted of: As of As of Accrued payroll and related benefits $ 13,670 $ 17,998 Contingent consideration — 480 Other 4,293 4,482 Total accrued expenses $ 17,963 $ 22,960

Long-term Debt (Tables)

Long-term Debt (Tables)	9 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
Schedule of Debt	The Company's outstanding balances under the Credit Agreement, presented net of certain debt issuance costs on the condensed consolidated balance sheets, were: As of As of Debt outstanding under term loan, current portion $ 26,875 $ 21,875 Debt issuance costs, current portion (389 ) (389 ) Current portion of long-term debt, net $ 26,486 $ 21,486 Debt outstanding under term loan, long-term $ 66,719 $ 103,125 Debt outstanding under revolver, long-term 35,000 35,000 Debt issuance costs, long-term (1,167 ) (1,459 ) Long-term debt, net $ 100,552 $ 136,666
Schedule of Maturities of Long-term Debt	Future long-term debt principal payments are as follows: Years Ending December 31, 2016 (remaining 3 months) $ 10,469 2017 21,876 2018 21,876 2019 21,876 2020 52,497 Total $ 128,594
Schedule of Debt Interest Payments [Table Text Block]	Interest expense, including amortization of debt issuance costs, was: For the Three Months For the Nine Months 2016 2015 2016 2015 $ 983 $ 75 $ 3,276 $ 223

Net Income (Loss) Per Common 25

Net Income (Loss) Per Common Share (Tables)	9 Months Ended
	Sep. 30, 2016
Earnings Per Share [Abstract]
Computation of basic and diluted net income per common share	The computation of basic and diluted net income (loss) per common share was: For the Three Months For the Nine Months 2016 2015 2016 2015 Numerator: Net income (loss) $ 570 $ (2,802 ) $ 5,792 $ 539 Denominator: Weighted average shares outstanding 17,701 17,255 17,560 17,431 Effect of dilutive securities: Stock options 638 — 363 568 Restricted stock 278 — 192 159 ESPP 20 — 11 9 Weighted average diluted shares outstanding 18,637 17,255 18,126 18,167 Basic net income (loss) per common share $ 0.03 $ (0.16 ) $ 0.33 $ 0.03 Diluted net income (loss) per common share $ 0.03 $ (0.16 ) $ 0.32 $ 0.03 Anti-dilutive shares excluded from the determination of diluted net income (loss) per share 305 3,779 1,475 535

Basis of Presentation Basis of

Basis of Presentation Basis of Presentation (Details)	Sep. 19, 2016USD ($)$ / shares	Sep. 30, 2016USD ($)acquisition	Sep. 30, 2015USD ($)	Sep. 30, 2016USD ($)	Sep. 30, 2015USD ($)
Business Acquisition [Line Items]
Operating expenses		$ 39,772,000	$ 30,268,000	$ 110,351,000	$ 87,476,000
DTS Merger
Business Acquisition [Line Items]
Per share price to be paid per outstanding share | $ / shares	$ 42.50
Termination fee payable if merger is canceled	$ 25,500,000
Operating expenses		$ 3,116,000		$ 3,116,000
Immaterial Business Acquisitions
Business Acquisition [Line Items]
Number of acquisitions | acquisition		2

Cash, Cash Equivalents and In27

Cash, Cash Equivalents and Investments (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015	Sep. 30, 2015	Dec. 31, 2014
Cash, cash equivalents and investments
Total cash and cash equivalents	$ 26,686	$ 52,208	$ 72,297	$ 99,435
Total short-term investments	13,083	9,657
Corporate bonds
Cash, cash equivalents and investments
Short-term investments	12,091	9,657
Commercial paper
Cash, cash equivalents and investments
Short-term investments	992	0
Cash
Cash, cash equivalents and investments
Cash	13,765	16,257
Money market accounts
Cash, cash equivalents and investments
Cash equivalents	10,923	35,951
Commercial paper
Cash, cash equivalents and investments
Cash equivalents	$ 1,998	$ 0

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Fair Value Measurements
Contingent consideration	$ 0	$ (480)
Recurring basis | Total
Fair Value Measurements
Contingent consideration		(480)
Recurring basis | Total | Corporate bonds
Fair Value Measurements
Available-for-sale securities	12,091	9,657
Recurring basis | Total | Commercial paper
Fair Value Measurements
Available-for-sale securities	992
Recurring basis | Fair Value Measurements | Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value Measurements
Contingent consideration		0
Recurring basis | Fair Value Measurements | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate bonds
Fair Value Measurements
Available-for-sale securities	0	0
Recurring basis | Fair Value Measurements | Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial paper
Fair Value Measurements
Available-for-sale securities	0
Recurring basis | Fair Value Measurements | Significant Other Observable Inputs (Level 2)
Fair Value Measurements
Contingent consideration		0
Recurring basis | Fair Value Measurements | Significant Other Observable Inputs (Level 2) | Corporate bonds
Fair Value Measurements
Available-for-sale securities	12,091	9,657
Recurring basis | Fair Value Measurements | Significant Other Observable Inputs (Level 2) | Commercial paper
Fair Value Measurements
Available-for-sale securities	992
Recurring basis | Fair Value Measurements | Significant Unobservable Inputs (Level 3)
Fair Value Measurements
Contingent consideration		(480)
Recurring basis | Fair Value Measurements | Significant Unobservable Inputs (Level 3) | Corporate bonds
Fair Value Measurements
Available-for-sale securities	0	$ 0
Recurring basis | Fair Value Measurements | Significant Unobservable Inputs (Level 3) | Commercial paper
Fair Value Measurements
Available-for-sale securities	$ 0

Business Combination (Details)

Business Combination (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Sep. 30, 2016
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Assets [Abstract]
Goodwill	$ 108,726	$ 90,692
iBiquity
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets [Abstract]
Cash and cash equivalents		20,837
Short-term investments		4,000
Accounts receivable		14,112
Prepaid expenses and other current assets		1,189
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Assets [Abstract]
Property and equipment		1,656
Goodwill		38,071
Total identifiable intangible assets		120,988
Other long-term assets		130
Deferred tax assets (liabilities), net		8,200
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities [Abstract]
Accounts payable		(535)
Accrued expenses		(23,284)
Deferred revenue		(1,019)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities [Abstract]
Other long-term liabilities		(6,575)
Total purchase price		177,770
iBiquity | Customer relationships
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Assets [Abstract]
Identifiable intangible assets, finite-lived	$ 70,225
Weighted Average Estimated Useful Life (years)	10 years
iBiquity | Developed technology
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Assets [Abstract]
Identifiable intangible assets, finite-lived	$ 33,590
Weighted Average Estimated Useful Life (years)	10 years
iBiquity | Tradenames
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Assets [Abstract]
Identifiable intangible assets, finite-lived	$ 9,590
Weighted Average Estimated Useful Life (years)	10 years
iBiquity | IPR&D
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Assets [Abstract]
Identifiable intangible assets, indefinite-lived	$ 7,583
iBiquity | Preliminary Fair Value as of December 31, 2015
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets [Abstract]
Cash and cash equivalents	20,837
Short-term investments	4,000
Accounts receivable	13,468
Prepaid expenses and other current assets	1,058
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Assets [Abstract]
Property and equipment	1,656
Goodwill	58,370
Total identifiable intangible assets	120,988
Other long-term assets	190
Deferred tax assets (liabilities), net	(13,058)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities [Abstract]
Accounts payable	(535)
Accrued expenses	(21,402)
Deferred revenue	(1,019)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities [Abstract]
Other long-term liabilities	(6,783)
Total purchase price	$ 177,770
iBiquity | Measurement Period Adjustments
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets [Abstract]
Accounts receivable		644
Prepaid expenses and other current assets		131
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Assets [Abstract]
Goodwill		(20,299)
Other long-term assets		(60)
Deferred tax assets (liabilities), net		21,258
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities [Abstract]
Accrued expenses		(1,882)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities [Abstract]
Other long-term liabilities		$ 208

Goodwill and Other Intangible30

Goodwill and Other Intangible Assets - Goodwill (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2016USD ($)
Goodwill [Roll Forward]
Balance at December 31, 2015	$ 108,726
Purchase price allocation adjustments, net	(20,299)
Increase due to current period business combinations	2,265
Balance at September 30, 2016	$ 90,692

Goodwill and Other Intangible31

Goodwill and Other Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Summary of acquired intangible assets by category
Gross amount of amortizable assets	$ 200,891		$ 200,891		$ 193,854
Accumulated Amortization	(60,189)		(60,189)		(43,501)
Net Carrying Amount of amortizable assets	140,702		140,702		150,353
Total amortization of intangible assets	5,654	$ 2,658	16,705	$ 7,938
Total intangible assets, gross	205,096		205,096		201,437
Accumulated Amortization	(60,189)		(60,189)		(43,501)
Intangible assets, net	144,907		144,907		157,936
IPR&D
Summary of acquired intangible assets by category
Indefinite-lived intangible assets	4,205		$ 4,205		7,583
Customer relationships
Summary of acquired intangible assets by category
Weighted Average Life (Years)			9 years
Gross amount of amortizable assets	116,838		$ 116,838		116,026
Accumulated Amortization	(31,513)		(31,513)		(22,039)
Net Carrying Amount of amortizable assets	85,325		85,325		93,987
Accumulated Amortization	(31,513)		$ (31,513)		(22,039)
Acquired technology
Summary of acquired intangible assets by category
Weighted Average Life (Years)			9 years
Gross amount of amortizable assets	56,151		$ 56,151		52,073
Accumulated Amortization	(18,375)		(18,375)		(14,071)
Net Carrying Amount of amortizable assets	37,776		37,776		38,002
Accumulated Amortization	(18,375)		$ (18,375)		(14,071)
Tradenames
Summary of acquired intangible assets by category
Weighted Average Life (Years)			9 years
Gross amount of amortizable assets	12,912		$ 12,912		12,851
Accumulated Amortization	(3,683)		(3,683)		(2,452)
Net Carrying Amount of amortizable assets	9,229		9,229		10,399
Accumulated Amortization	(3,683)		$ (3,683)		(2,452)
Contractual rights
Summary of acquired intangible assets by category
Weighted Average Life (Years)			5 years
Gross amount of amortizable assets	8,363		$ 8,363		7,713
Accumulated Amortization	(3,833)		(3,833)		(2,527)
Net Carrying Amount of amortizable assets	4,530		4,530		5,186
Accumulated Amortization	(3,833)		$ (3,833)		(2,527)
Patents
Summary of acquired intangible assets by category
Weighted Average Life (Years)			5 years
Gross amount of amortizable assets	5,155		$ 5,155		3,805
Accumulated Amortization	(1,821)		(1,821)		(1,538)
Net Carrying Amount of amortizable assets	3,334		3,334		2,267
Accumulated Amortization	(1,821)		$ (1,821)		(1,538)
Trademarks
Summary of acquired intangible assets by category
Weighted Average Life (Years)			10 years
Gross amount of amortizable assets	919		$ 919		894
Accumulated Amortization	(468)		(468)		(417)
Net Carrying Amount of amortizable assets	451		451		477
Accumulated Amortization	(468)		$ (468)		(417)
Non-compete
Summary of acquired intangible assets by category
Weighted Average Life (Years)			2 years
Gross amount of amortizable assets	553		$ 553		492
Accumulated Amortization	(496)		(496)		(457)
Net Carrying Amount of amortizable assets	57		57		35
Accumulated Amortization	(496)		(496)		$ (457)
IPR&D
Summary of acquired intangible assets by category
Indefinite lived intangible assets transferred to finite lived intangible assets			3,378
Cost of revenue
Summary of acquired intangible assets by category
Total amortization of intangible assets	5,111	2,392	15,085	7,146
Operating expenses
Summary of acquired intangible assets by category
Total amortization of intangible assets	$ 543	$ 266	$ 1,620	$ 792

Goodwill and Other Intangible32

Goodwill and Other Intangible Assets - Future Amortization (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Future amortization of intangible assets
2016 (remaining 3 months)	$ 5,775
2,017	22,640
2,018	20,559
2,019	19,142
2,020	15,676
2021 and thereafter	56,910
Net Carrying Amount of amortizable assets	$ 140,702	$ 150,353

Accrued Expenses (Details)

Accrued Expenses (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Payables and Accruals [Abstract]
Accrued payroll and related benefits	$ 13,670	$ 17,998
Contingent consideration	0	480
Other	4,293	4,482
Total accrued expenses	$ 17,963	$ 22,960

Long-term Debt (Details)

Long-term Debt (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Jun. 30, 2016	Sep. 30, 2016	Dec. 31, 2015
Long-term debt
Current portion of long-term debt, net	$ 26,486,000		$ 26,486,000	$ 21,486,000
Debt issuance costs, long-term	(1,167,000)		(1,167,000)	(1,459,000)
Long-term debt, net	100,552,000		100,552,000	136,666,000
Term Loan
Long-term debt
Debt outstanding, current portion	26,875,000		26,875,000	21,875,000
Debt issuance costs, current portion	(389,000)		(389,000)	(389,000)
Current portion of long-term debt, net	26,486,000		26,486,000	21,486,000
Debt outstanding, long-term	66,719,000		66,719,000	103,125,000
Revolver
Long-term debt
Debt outstanding, long-term	35,000,000		35,000,000	$ 35,000,000
Amended Credit Agreement
Long-term debt
Prepayments required in current year	20,000,000		20,000,000
Prepayments made	5,000,000	$ 10,000,000
Scheduled quarterly principal payments			5,469,000
Prepayment amounts due	$ 5,000,000		$ 5,000,000

Long-term Debt - Future Debt Pa

Long-term Debt - Future Debt Payments (Details) $ in Thousands	Sep. 30, 2016USD ($)
Debt Disclosure [Abstract]
2016 (remaining 3 months)	$ 10,469
2,017	21,876
2,018	21,876
2,019	21,876
2,020	52,497
Total	$ 128,594

Long-term Debt - Interest Expen

Long-term Debt - Interest Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Debt Disclosure [Abstract]
Interest expense and amortization of debt issuance costs	$ 983	$ 75	$ 3,276	$ 223

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Thousands	3 Months Ended	9 Months Ended
	Dec. 31, 2015USD ($)	Sep. 30, 2016USD ($)
Commitments and Contingencies
Period for the payment of additional consideration subject to the achievement of certain milestones		4 years
Number of employee positions eliminated	70
Employee Severance and Related Cost
Commitments and Contingencies
Restructuring charges accrued	$ 5,517	$ 1,035
Payments for Restructuring		4,682
Employee Severance and Related Cost | Operating expenses
Commitments and Contingencies
Restructuring charges		200
Maximum
Commitments and Contingencies
Potential milestone payments under certain contractual rights arrangements		$ 7,200

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Effective tax rate (as a percent)			41.00%	79.00%
Statutory federal rate (as a percent)			35.00%
Uncertain tax positions	$ 18,743		$ 18,743		$ 19,454
Withholding taxes	711	$ 632	2,522	$ 1,614
Other long-term liabilities
Uncertain tax positions	9,604		9,604		$ 9,112
Lapse of Applicable Statute of Limitations
Reasonably possible decrease in unrecognized tax benefits in the next twelve months	$ 300		$ 300

Net Income (Loss) Per Common 39

Net Income (Loss) Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Numerator:
Net income (loss)	$ 570	$ (2,802)	$ 5,792	$ 539
Denominator:
Weighted average shares outstanding	17,701	17,255	17,560	17,431
Weighted average diluted shares outstanding	18,637	17,255	18,126	18,167
Basic net income (loss) per common share (in dollars per share)	$ 0.03	$ (0.16)	$ 0.33	$ 0.03
Diluted net income (loss) per common share (in dollars per share)	$ 0.03	$ (0.16)	$ 0.32	$ 0.03
Anti-dilutive shares excluded from the determination of diluted net income (loss) per share	305	3,779	1,475	535
Stock Options
Denominator:
Effect of dilutive securities	638	0	363	568
RSUs
Denominator:
Effect of dilutive securities	278	0	192	159
ESPP
Denominator:
Effect of dilutive securities	20	0	11	9

Dividend (Details)

Dividend (Details) - USD ($) $ / shares in Units, $ in Thousands	Aug. 08, 2016	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Equity [Abstract]
Cash dividend declared per common share (in dollars per share)	$ 0.02	$ 0.02	$ 0	$ 0.02	$ 0
Dividend payments		$ (354)		$ (354)	$ 0