Imprivata Inactive 10-Q6 Nov 152015 Q3 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2015	Nov. 03, 2015
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3
Trading Symbol	IMPR
Entity Registrant Name	Imprivata Inc
Entity Central Index Key	1,328,015
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		25,006,037

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 51,925	$ 78,524
Accounts receivable, net of allowances	26,594	25,335
Prepaid expenses and other current assets	4,819	3,516
Total current assets	83,338	107,375
Property and equipment, net	8,109	7,640
Goodwill	13,819	1,560
Intangible assets, net	5,131	1,499
Other assets	898	105
Total assets	111,295	118,179
Current liabilities:
Accounts payable	5,402	2,498
Accrued expenses and other current liabilities	9,343	10,565
Current portion of capital lease obligations and long-term debt	481	625
Current portion of other long-term liabilities	240	288
Current portion of deferred revenue	36,265	33,120
Current portion of contingent purchase price liability	525	152
Total current liabilities	52,256	47,248
Deferred revenue, net of current portion	5,043	4,021
Deferred tax liability	694
Capital lease obligations, long-term debt and royalty obligations, net of current portion	279	619
Other long-term liabilities, net of current portion	1,826	1,535
Contingent purchase price liability, net of current portion	178	480
Total liabilities	$ 60,276	$ 53,903
Commitments and contingencies (Note 10)
Stockholders' equity:
Undesignated preferred stock, $0.001 par value, 20,000,000 shares authorized; none issued at September 30, 2015 and December 31, 2014
Common stock, $0.001 par value, 250,000,000 shares authorized at September 30, 2015 and December 31, 2014; 24,958,464 and 23,742,467 shares issued and outstanding at September 30, 2015 and December 31, 2014, respectively	$ 25	$ 24
Additional paid-in capital	178,003	171,903
Accumulated other comprehensive loss	(119)	(100)
Accumulated deficit	(126,890)	(107,551)
Total stockholders' equity	51,019	64,276
Total liabilities and stockholders' equity	$ 111,295	$ 118,179

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Sep. 30, 2015	Dec. 31, 2014
Statement Of Financial Position [Abstract]
Undesignated preferred stock, par value	$ 0.001	$ 0.001
Undesignated preferred stock, authorized	20,000,000	20,000,000
Undesignated preferred stock, issued	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, authorized	250,000,000	250,000,000
Common stock, issued	24,958,464	23,742,467
Common stock, outstanding	24,958,464	23,742,467

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Revenue
Product	$ 15,800	$ 14,133	$ 45,017	$ 35,632
Maintenance and services	13,482	11,145	39,869	32,320
Total revenue	29,282	25,278	84,886	67,952
Cost of revenue
Product	4,442	4,287	11,954	8,922
Maintenance and services	5,458	4,353	15,681	12,946
Total cost of revenue	9,900	8,640	27,635	21,868
Gross profit	19,382	16,638	57,251	46,084
Operating expenses
Research and development	8,496	6,425	23,207	19,252
Sales and marketing	12,959	11,129	37,976	32,764
General and administrative	4,886	3,162	14,055	8,486
Total operating expenses	26,341	20,716	75,238	60,502
Loss from operations	(6,959)	(4,078)	(17,987)	(14,418)
Other income (expense)
Foreign currency exchange gain (loss)	(170)	(279)	(482)	(406)
Interest and other income (expense), net	(10)	(65)	(31)	(130)
Loss before income taxes	(7,139)	(4,422)	(18,500)	(14,954)
Income taxes	75	32	839	119
Net loss	(7,214)	(4,454)	(19,339)	(15,073)
Accretion of redeemable convertible preferred stock				(2,442)
Net loss attributable to common stockholders	$ (7,214)	$ (4,454)	$ (19,339)	$ (17,515)
Net loss per share attributable to common stockholders
Basic and diluted	$ (0.29)	$ (0.19)	$ (0.80)	$ (1.64)
Weighted average common shares outstanding used in computing net loss per share attributable to common stockholders
Basic and diluted	24,654	23,706	24,225	10,654

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Statement Of Income And Comprehensive Income [Abstract]
Net loss	$ (7,214)	$ (4,454)	$ (19,339)	$ (15,073)
Other comprehensive loss:
Foreign currency translation adjustments	(25)	(61)	(19)	85
Comprehensive loss	$ (7,239)	$ (4,515)	$ (19,358)	$ (14,988)

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - 9 months ended Sep. 30, 2015 - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Other Comprehensive Loss [Member]	Accumulated Deficit [Member]
Beginning balance at Dec. 31, 2014	$ 64,276	$ 24	$ 171,903	$ (100)	$ (107,551)
Beginning balance, Shares at Dec. 31, 2014		23,742
Exercise of common stock options	1,887	$ 1	1,886
Exercise of common stock options, Shares		1,111
Stock-based compensation expense	2,996		2,996
Employee stock purchase plan	1,219	$ 1	1,218
Employee stock purchase plan, Share		104
Common stock grants	(1)	$ (1)
Common stock grants, Shares		1
Net loss	(19,339)				(19,339)
Other comprehensive loss	(19)			(19)
Ending balance at Sep. 30, 2015	$ 51,019	$ 25	$ 178,003	$ (119)	$ (126,890)
Ending balance, Shares at Sep. 30, 2015		24,958

Condensed Consolidated Stateme7

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash flows from operating activities:
Net loss	$ (19,339)	$ (15,073)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization expense	2,711	2,241
Provision for doubtful accounts	(2)	90
Stock-based compensation	2,996	1,126
Loss on disposal of fixed assets	16	66
Change in value of contingent purchase price liability	71	(448)
Deferred income taxes	694
Changes in operating assets and liabilities:
Accounts receivable	4,192	380
Prepaid expenses and other current assets	(2,072)	(856)
Deferred revenue	2,115	3,977
Accounts payable	2,662	(723)
Accrued expenses and other current liabilities	(1,805)	(201)
Other liabilities	243	12
Net cash used in operating activities	(7,518)	(9,409)
Cash flows from investing activities:
Purchases of property and equipment	(1,791)	(2,723)
Purchases of intangible assets	(852)
Acquisition of business	(18,955)
Net cash used in investing activities	(21,598)	(2,723)
Cash flows from financing activities:
Proceeds from initial public offering, net of underwriting discounts and commissions		80,213
Deferred offering costs		(3,287)
Repayments for capital lease obligations, long-term debt and other	(483)	(497)
Proceeds from employee stock purchase plan	1,219
Proceeds from exercise of stock options	1,824	448
Net cash provided by financing activities	2,560	76,877
Effect of exchange rates on cash and cash equivalents	(43)	8
Net (decrease) increase in cash and cash equivalents	(26,599)	64,753
Cash and cash equivalents, beginning of period	78,524	13,284
Cash and cash equivalents, end of period	51,925	78,037
Supplemental disclosures of non-cash investing and financing activities:
Equipment purchases under capital leases		714
Property and equipment purchases included in accounts payable and accrued expenses	$ 837	223
Deferred offering costs included in accounts payable, accrued expenses, and other current liabilities		118
Conversion of preferred stock to common stock		94,049
Accretion of preferred stock		$ 2,442

Organization and Business

Organization and Business	9 Months Ended
Organization and Business	Sep. 30, 2015
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Organization and Business	1. Organization and business (a) Description of business Imprivata, Inc. (the “Company”) is a leading provider of IT security and identity solutions to the healthcare industry that help providers securely and efficiently access, communicate and transact patient information. The Company’s security and identity solutions provide authentication management, fast access to patient information, secure communications and positive patient identification to address critical security and compliance challenges faced by hospitals and other healthcare organizations, while improving provider productivity and the patient experience. The Company believes that its solutions save clinicians significant time to focus on patient care, increase their productivity and satisfaction, and help healthcare organizations comply with complex privacy and security regulations. The Company was incorporated in the State of Delaware in May 2001. On June 30, 2014, the Company completed its initial public offering (“IPO”) and is listed on the New York Stock Exchange (“NYSE”) under the ticker symbol “IMPR.” (b) Basis of presentation and principles of consolidation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial reporting and as required under the rules and regulations of the United States Securities and Exchange Commission (“SEC”), and on a basis substantially consistent with the audited consolidated financial statements of the Company as of and for the fiscal year ended December 31, 2014. The consolidated balance sheet at December 31, 2014 has been derived from the audited financial statements at that date, but does not include all of the disclosures required by U.S. GAAP. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in the Company’s 2014 Annual Report on Form 10-K filed with the SEC on March 11, 2015. In the opinion of Company’s management, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting of items of a normal and recurring nature) necessary to fairly present the financial position at September 30, 2015, the result of operations for the three and nine months ended September 30, 2015 and 2014 and cash flows for the nine months ended September 30, 2015 and 2014. Operating results for the nine months ended September 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015, for any other interim period or for any other future year. The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, Imprivata Securities Corporation and Imprivata International, Inc., and its wholly owned subsidiaries Imprivata UK Limited and Imprivata Australia Pty. Ltd., as well as two branch offices. All intercompany balances and transactions have been eliminated in consolidation. In the first quarter of 2015, the Company closed its Netherlands branch office. Management believes the Company has sufficient cash and availability under its letter of credit to sustain operations through at least the next 12 months. (c) Use of estimates When preparing financial statements in conformity with GAAP, we must make estimates and assumptions that affect the reported amounts of assets and liabilities and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates and such differences could be material. (d) Foreign currency The foreign subsidiaries and branches use the local currency as the functional currency. The Company translates the assets and liabilities of its foreign operations into U.S. dollars based on the rates of exchange in effect as of the balance sheet date. Revenues and expenses are translated into U.S. dollars using average exchange rates for each period. The resulting adjustments from the translation process are included in accumulated other comprehensive loss in the accompanying consolidated balance sheets. Certain transactions of the Company are settled in foreign currency, and are thus translated to U.S. dollars at the rate of exchange in effect at the end of each month. Gains (losses) resulting from the translation are included in foreign exchange gains (losses) in the accompanying consolidated statements of operations.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
Summary of Significant Accounting Policies	Sep. 30, 2015
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. Summary of significant accounting policies The Company has not made any significant changes, other than the policy noted below regarding research and development and software development costs, in the application of its significant accounting policies as described in Note 2 of its audited consolidated financial statements for the year ended December 31, 2014 included in its 2014 Annual Report on Form 10-K filed with the SEC on March 11, 2015. See Note 2 in the 2014 Annual Report on Form 10-K for information about these critical accounting policies as well as a description of the “Summary of significant accounting policies.” (a) Research and development and software development costs Research and development expenses consist primarily of salary and related expenses for the Company’s research and development staff, including benefits, bonuses and stock-based compensation; the cost of certain third-party contractor costs; and allocated overhead. Expenditures for research and development are expensed as incurred. Costs associated with the development of computer software for external sale are expensed prior to the establishment of technological feasibility of the software and capitalized thereafter until commercial release of the software. The Company has not historically incurred significant development costs after the establishment of technological feasibility, and as a result, no software development costs have been capitalized to date. Costs incurred during the application development stage of internal-use software projects, such as those used in the Company’s product offerings, are capitalized in accordance with the accounting guidance for costs of computer software developed for internal use. Capitalized costs include external consulting fees and payroll and payroll-related costs for employees in the Company’s research and development groups who are directly associated with, and who devote time to, the Company’s internal-use software projects during the application development stage. Capitalization begins when the planning stage is complete and the Company commits resources to the software project. Capitalization ceases when the software has been tested and is ready for its intended use. Amortization of the asset commences when the software is complete and placed in service. The Company internal-use software amortizes the completed costs . Costs incurred during the planning, training and post-implementation stages of the software development life-cycle are expensed as incurred. Costs related to upgrades and enhancements of existing internal-use software that increase the functionality of the software are also capitalized. (b) Recent accounting guidance Recently adopted accounting updates In September 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-16 “Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments.” The ASU eliminates the requirement for an acquirer in a business combination to account for measurement-period adjustments retrospectively. The new guidance requires that the cumulative impact of a measurement-period adjustment (including the impact on prior periods) be recognized in the reporting period in which the adjustment is identified. The guidance is effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted for any interim and annual financial statements that have not yet been made available for issuance. The Company has elected early adoption of this guidance, effective in the third quarter ended September 30, 2015. During the three and nine months ended September 30, 2015, the Company recorded a measurement period adjustment which resulted in an immaterial impact. See note 3 for additional information. Accounting standards or updates not yet effective In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers” (Topic 606) (ASU 2014-09). ASU 2014-09 outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. In August 2015, the FASB issued ASU 2015-14, “Revenue from Contracts with Customers — In July 2015, the FASB issued ASU 2015-11, “ Simplifying the Measurement of Inventory In April 2015, the FASB issued an ASU No. 2015-03, “Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs,” requiring debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of that debt, consistent with debt discounts. The accounting standard update will be effective for the Company for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years on a retrospective basis, with early adoption permitted. The accounting standard update is a change in balance sheet presentation only and is not expected to have a material impact on the Company’s consolidated financial statements. In April 2015, the FASB issued ASU 2015-05, “Intangibles – Goodwill and Other Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement.” This ASU provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The new guidance does not change the accounting for a customer’s accounting for service contracts. ASU 2015-05 is effective for interim and annual reporting periods beginning after December 15, 2015. The Company anticipates that the adoption of this ASU will not have a material impact on its consolidated financial statements.

Business Combination

Business Combination	9 Months Ended
Business Combination	Sep. 30, 2015
Business Combinations [Abstract]
Business Combination	3. Business combination HT Systems, LLC Acquisition On April 30, 2015, the Company acquired 100% of the equity of HT Systems, LLC. (“HT Systems”), a provider of palm-vein based biometric patient identification systems, to enter into the positive patient identification market for a purchase price of $19.1 million less $120,000 of working capital adjustments, for total cash consideration paid of $19.0 million. The acquisition of HT Systems and its PatientSecure biometric patient identification technology supports the Company’s long-term vision to be the leading provider of healthcare IT security solutions that increase provider productivity, enable patient engagement, and improve patient safety. The Company may pay up to $5.0 million of potential additional earn-out consideration to the selling equity-holders, which will be determined based upon the achievement of certain sales targets over the two-year period following the transaction, provided, that the selling equity-holders remain employees of the Company when the earn-out consideration becomes payable. The earn-out consideration will be recognized in the Company’s consolidated financial statements as compensation expense as earned. For the three and nine month ended September 30, 2015, the Company has not recorded compensation expense associated with the earn-out consideration based on the probability of achieving sales targets. In addition, the Company will pay up to $1.9 million in retention-based payments to the selling equity-holders payable in cash two years from the closing date of April 30, 2015, contingent upon continued employment as of the payment date. Additional retention-based payments of $341,000, payable in cash, are payable to other employees 8 to 20 months following the date of acquisition, contingent upon their continued employment on the payment dates. The retention-based payments will be recognized in the Company’s consolidated statements of operations as compensation expense over the employment period. During the three and nine months ended September 30, 2015, $0 and $709,000, respectively, of acquisition-related costs were incurred due to the HT Systems acquisition, which are included in general and administrative expenses in the consolidated statement of operations. Purchase Price Allocation Under the acquisition method of accounting, the Company allocated the purchase price to the identifiable assets and liabilities based on their estimated fair value, which was determined by management using the best information available as of the date of the acquisition (Level 3 inputs). The allocation of the HT Systems purchase consideration to the identifiable assets acquired and liabilities assumed was as follows: Useful lives (dollars in thousands) Amount (in years) Assets: Accounts receivable $ 5,449 Prepaid expenses and other current assets 34 Property and equipment 59 3 Intangible assets 3,291 4 to 7 Liabilities assumed: Accrued expenses (85 ) Deferred revenue (2,052 ) Net assets acquired 6,696 Goodwill 12,259 Total fair value consideration $ 18,955 Methodologies used in valuing the intangible assets include, but are not limited to the relief from royalty method and multi-period excess earnings method. The excess of the purchase price over the total net identifiable assets has been recorded as goodwill, which includes synergies expected from the expanded service capabilities and the value of the assembled work force in accordance with GAAP. The Company made an election under Internal Revenue Code section 338 to treat the acquisition of the stock as an asset purchase. As a result, the Company will corporate level tax deductions associated with the fair market value of net tangible assets, intangible assets, and goodwill. The fair value estimates for the assets acquired and liabilities assumed were based upon preliminary calculations and valuations, and the Company’s estimates and assumptions for the acquisition are subject to change as the Company obtains additional information during the measurement periods, up to one year from the acquisition date. During the three months ended September 30, 2015, the Company recorded the following measurement period adjustments: · a $69,000 working capital adjustment to the opening balance sheet for pre-acquisition royalty receivables from a third party reseller not previously recorded in the acquiree’s opening balance sheet; · an increase in the fair value of deferred revenue acquired by $106,000, due to the refinement of the valuation estimates for deferred revenue; and · a $1.1 million increase to unbilled receivables as a result of reviewing the contractual billing obligations of the acquired customers for goods and services delivered in pre-acquisition periods. These measurement period adjustments resulted in a $947,000 decrease in the amount of goodwill reported in the consolidated balance sheet at September 30, 2015. As a result of the increase in deferred revenue, the Company would have recorded an additional $24,000 in maintenance revenue during the three months ended June 30, 2015. As of September 30, 2015, the purchase accounting adjustments are preliminary and not yet finalized as the Company continues to evaluate the acquiree’s contractual obligations related to deferred revenues and unbilled receivables. Pro Forma Results of Operations (unaudited) The consolidated financial statements include the operating results of HT Systems from the date of acquisition. The following unaudited pro forma results of operations have been presented as if the HT Systems acquisition occurred on January 1, 2014: (1) HT Systems defers all revenue related to a customer engagement until PatientSecure is fully implemented and in production. The revenue patterns can fluctuate between periods due to customers delaying the start of implementation. Consequently, comparisons between the interim periods may not be indicative of future revenue patterns. Three Months Ended Nine Months Ended September 30, September 30, (dollars in thousands, except per share data) 2015 2014 2015 2014 Pro forma revenue $ 29,282 $ 26,738 $ 86,073 $ 72,725 Pro forma operating expenses 26,341 21,981 76,735 63,401 Pro forma net loss (7,214 ) (4,410 ) (19,882 ) (13,851 ) Pro forma net loss per share basic and diluted $ (0.29 ) $ (0.19 ) $ (0.82 ) $ (1.53 ) This information is based on historical results of operations, adjusted for the allocations of purchase price and other acquisition accounting adjustments, and is not necessarily indicative of what the Company’s results would have been had it operated the businesses since January 1, 2014. For the three and nine months ended September 30, 2015, the Company’s consolidated revenue includes revenues from HT Systems of $712,000 and $883,000, respectively. Due to the continued integration of the combined business, it is impractical to determine the earnings of HT Systems beyond the measure of revenue.

Trade Accounts Receivable, Net

Trade Accounts Receivable, Net of Allowances	9 Months Ended
Trade Accounts Receivable, Net of Allowances	Sep. 30, 2015
Receivables [Abstract]
Trade Accounts Receivable, Net of Allowances	4 . Trade accounts receivable, net of allowances The following table presents the Company’s trade accounts receivable, net: September 30, December 31, (in thousands) 2015 2014 Trade accounts receivable (1) $ 25,696 $ 25,615 Unbilled receivables (2) 1,255 80 Total trade accounts receivable 26,951 25,695 Allowance for doubtful accounts (158 ) (161 ) Allowance for sales returns (199 ) (199 ) Total allowance (357 ) (360 ) Trade accounts receivable, net $ 26,594 $ 25,335 (1) Trade accounts receivables represent amounts due from customers when the Company has invoiced for product, maintenance and/or professional services and it has not yet received payment. (2) Unbilled receivables represent amounts due from customers when the Company has delivered the goods and services, but the Company has not invoiced the customer due to the contractual terms of the arrangement. As of September 30, 2015, the Company has $2.2 million of unbilled receivables primarily due to the acquisition of HT Systems, of which $1.3 million is included in total trade accounts receivable and $874,000 is included in other assets in the consolidated balance sheets for the long-term portion of the commitment.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
Fair Value Measurements	Sep. 30, 2015
Fair Value Disclosures [Abstract]
Fair Value Measurements	5. Fair value measurements Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. (a) Fair value hierarchy The accounting guidance for fair value measurement requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is as follows: Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability, such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. (b) Assets and liabilities measured at fair value on a recurring basis The Company’s cash equivalents primarily consist of money market funds recorded at cost, which approximates fair value based on quoted prices for assets traded in active markets. The contingent consideration liabilities are recorded at fair value determined using a probability weighted discounted cash flow model primarily based upon future revenue and sales projections. The following table sets forth the Company’s assets and liabilities which are measured at fair value on a recurring basis by level within the fair value hierarchy: Fair value measurements at September 30, 2015 Total (in thousands) Level 1 Level 2 Level 3 carrying value Assets Cash equivalents: Money market funds $ 5,689 $ - $ - $ 5,689 Certificates of deposit - 97 - 97 Liabilities Contingent consideration - - 703 703 Fair value measurements at December 31, 2014 Total (in thousands) Level 1 Level 2 Level 3 carrying value Assets Cash equivalents: Money market funds $ 33,184 $ - $ - $ 33,184 Certificates of deposit - 97 - 97 Liabilities Contingent consideration - - 632 632 (c) Assets and liabilities measured on a non-recurring basis There were no fair value measurements on a non-recurring basis as of December 31, 2014. During the six months ended June 30, 2015, the Company completed an acquisition of HT Systems. Under the Acquisition method of accounting, the Company allocated the purchase price to the identifiable assets and liabilities based on their estimated fair values which are level 3 inputs. Refer to Note 3 “Business combination” for additional information. (d) Level 3 fair value measurements Contingent consideration The contingent liability associated with the acquisition of Validus is based on an earn-out capped at $9.8 million to be paid based on revenue generated using the respective purchased intellectual properties. The Company re-measures the fair value of the contingent liability at each balance sheet date based on the present value of forecasted revenues through December 31, 2016. The changes in the fair value are primarily due to the difference in actual revenue earned to date versus the initial projections and revisions to the timing and amount of forecasted future revenues. The resulting forecasted revenues are then discounted using a rate that reflects the uncertainty surrounding the expected outcomes, which the Company believes is appropriate and representative of a market participant assumption. The following table presents a reconciliation of the contingent liability measured at fair value using significant unobservable inputs, and the revaluation amount recorded in the Company’s consolidated statements of operations as a result of the change in fair value: September 30, December 31, (in thousands) 2015 2014 Beginning balance as of January 1 st $ 632 $ 1,008 Revaluation recognized in general and administrative expenses in the corresponding statements of operations 71 (376 ) Ending balance $ 703 $ 632 This following table presents the significant unobservable inputs used in the valuation of the contingent liability: September 30, December 31, 2015 2014 Discount Rate 17 % 17 % (e) Other financial instruments The carrying amounts reflected in the consolidated balance sheets for cash and cash equivalents (which are comprised primarily of deposit accounts), accounts receivable, prepaid expenses, other current assets, accounts payable, and accrued expenses approximate fair value due to their short-term maturities.

Intangible Assets

Intangible Assets	9 Months Ended
Intangible Assets	Sep. 30, 2015
Goodwill And Intangible Assets Disclosure [Abstract]
Intangible Assets	6. Intangible assets (a) Purchased intangible assets Acquisition of HT Systems On April 30, 2015, the Company acquired the following intangible assets as a result of its acquisition of HT Systems: Useful lives (in thousands) Amount (in years) Technology $ 2,199 7 Trade name 252 4 Non-compete agreement 437 5 Customer contracts and relationships 403 7 $ 3,291 During the three and nine months ended September 30, 2015, the Company recorded $131,000 and $218,000, respectively, of amortization expense of purchased intangible assets. Amortization expense of $109,000 and $196,000 was recorded in the cost of revenues for the three and nine months ended September 30, 2015, respectively. Amortization expense of $22,000 was recorded in general and administrative expenses for the three and nine months ended September 30, 2015. The estimated future amortization of purchased intangible assets, acquired in the acquisition of HT Systems, as of September 30, 2015 are as follows: (in thousands) Amount 2015 (remaining 3 months) $ 130 2016 522 2017 522 2018 522 2019 480 Thereafter 897 $ 3,073 Patents On June 3, 2015, the Company acquired three patents with an aggregate purchase price of $437,000, which includes $37,000 of legal fees and $36,364 of brokers fees associated with the procurement of the patents. The patents will be amortized on a straight-line basis over 9 years. During the three and nine months ended September 30, 2015, the Company recorded $12,000 and $16,000 of amortization expense to general and administrative expenses in the consolidated statement of operations. The estimated future amortization of three patents purchased as of September 30, 2015 are as follows: (in thousands) Amount 2015 (remaining 3 months) $ 12 2016 49 2017 49 2018 49 2019 49 Thereafter 213 $ 421 (b) Internally-developed software costs During the three months ended September 30, 2015, the Company recorded $415,000 of costs associated with an internally developed software project for one of its existing product offerings. The costs, which primarily consist of third party developer expenses, are included in Intangible assets in the consolidated balance sheets. For additional information regarding the Company’s accounting policy for capitalizing internally developed software costs, see Note 2.

Accrued Expenses and Other Curr

Accrued Expenses and Other Current Liabilities	9 Months Ended
Accrued Expenses and Other Current Liabilities	Sep. 30, 2015
Payables And Accruals [Abstract]
Accrued Expenses and Other Current Liabilities	7. Accrued expenses and other current liabilities The following table presents the details of the Company’s accrued expenses and other current liabilities: September 30, December 31, (in thousands) 2015 2014 Accrued payroll and related $ 5,696 $ 7,839 Accrued taxes (1) 751 1,144 Other accrued expenses 2,896 1,582 $ 9,343 $ 10,565 (1) Accrued taxes consist of accruals for foreign and state taxes, sales and use taxes, value added taxes due in foreign jurisdictions and franchise taxes.

Warranty Obligations

Warranty Obligations	9 Months Ended
Warranty Obligations	Sep. 30, 2015
Guarantees [Abstract]
Warranty Obligations	8. Warranty obligations The Company maintains an allowance for warranty obligations that may be incurred under its limited warranty. Factors that affect the Company’s allowance for warranty obligations include the number of installed units currently under warranty, historical and anticipated rates of warranty claims on those units, and the cost per claim to satisfy the Company’s warranty obligation. The following table presents the details of the Company’s allowance for warranty obligations: September 30, December 31, (in thousands) 2015 2014 Beginning balance $ 40 $ 93 Provision for estimated claims 39 5 Adjustment to estimate — (51 ) Settlement of claims (39 ) (7 ) Ending balance $ 40 $ 40 The warranty obligations are included in accrued expenses and other current liabilities in the consolidated balance sheets presented.

Debt

Debt	9 Months Ended
Debt	Sep. 30, 2015
Debt Disclosure [Abstract]
Debt	9. Debt Bank credit facility The Company has a revolving credit facility with a bank pursuant to a Loan and Security Agreement dated January 30, 2009 (the “Revolving Credit Facility”). In February 2014, the Company modified the revolving credit agreement that had expired in October 2013 and extended the maturity date to February 2015. In February 2015, the Company amended its revolving credit facility to extend the maturity through April 2015. In April 2015, the Company further amended its revolving credit facility to extend the maturity through April 2016 and increased the borrowing limit from $10.0 million to $15.0 million based primarily on accounts receivable, and is subject to certain financial covenants requiring the Company to maintain minimum levels of liquidity. Outstanding borrowings accrue interest at the Wall Street Journal published prime rate plus 0.75%. Substantially all of the assets of the Company are pledged as collateral. At September 30, 2015 and December 31, 2014, there was no outstanding balance under the revolving credit facility.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
Commitments and Contingencies	Sep. 30, 2015
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	10. Commitments and contingencies (a) Operating lease obligations On January 16, 2015, the Company amended its lease agreement for its corporate headquarters in Lexington, Massachusetts to lease approximately 21,000 of additional square footage. The amendment increased the total square footage leased to approximately 93,000 and extended the term through December 2021. The additional rent expense is approximately $7.9 million and the landlord has agreed to contribute approximately $735,000 towards leasehold improvements. On April 30, 2015, the Company assumed a lease for approximately 3,500 square feet with a term expiring on March 31, 2016 as a result of its acquisition of HT Systems. The leased property is located in Tampa, Florida and is between HT Systems and a separate entity owned by the selling equity-holders of HT Systems. The remaining lease payments are $30,000. (b) Litigation The Company is not presently a party to any litigation that it believes might have a material adverse effect on its business operations or financial statements. (c) Indemnifications As permitted under Delaware law, the Company’s Certificate of Incorporation and By Laws provide that the Company indemnify its stockholders, officers, directors, and partners, and each person controlling the stock held for certain events or occurrences that happen by reason of the relationship with or position held at the Company. The Company’s agreements with customers generally require the Company to indemnify the customer against claims in which the Company’s products infringe third-party patents, copyrights, or trademarks, and indemnify against product liability matters. As of September 30, 2015 and December 31, 2014, the Company had not experienced any material losses related to these indemnification obligations, and no material claims with respect thereto were outstanding. The Company does not expect significant claims related to these indemnification obligations and, consequently, concluded that the fair value of these obligations is negligible, and no related reserves were established.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	9 Months Ended
Accumulated Other Comprehensive Loss	Sep. 30, 2015
Equity [Abstract]
Accumulated Other Comprehensive Loss	11. Accumulated other comprehensive loss The following table presents the changes in accumulated other comprehensive loss before taxes, as the tax effect is not material to the consolidated financial statements: Foreign Currency Affected Translation statement where net (in thousands) Adjustments income is presented Balance at January 1, 2014 (145 ) Other comprehensive loss (100 ) Amounts reclassified from accumulated other comprehensive income: Closure of foreign branch 145 Other income (expense) Net current-period other comprehensive loss 45 Balance at December 31, 2014 (100 ) Other comprehensive loss 15 Amounts reclassified from accumulated other comprehensive income: Closure of foreign branch (34 ) Other income (expense) Net current-period other comprehensive loss (19 ) Balance at September 30, 2015 $ (119 )

Stock Award Plans and Stock Bas

Stock Award Plans and Stock Based Compensation	9 Months Ended
Stock Award Plans and Stock Based Compensation	Sep. 30, 2015
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock Award Plans and Stock Based Compensation	12. Stock award plans and stock based compensation (a) Equity incentive plan In May 2014, the Company’s 2014 Stock Option and Incentive Plan (“2014 Plan”), was adopted by the Company’s board of directors and approved by its stockholders and became effective in June 2014. The 2014 Plan replaces the Amended and Restated 2002 Stock Option and Incentive Plan (“2002 Plan”) as the Company’s board of directors has determined not to make additional awards under the 2002 Plan. The 2014 Plan allows the compensation committee to make equity-based incentive awards to the Company’s officers, employees, directors and other key persons (including consultants). Stock options expire no later than 10 years from the date of grant and generally vest over a period of four years. At the discretion of the Board of Directors, certain option grants may be immediately exercisable but subject to a right to repurchase, at cost, pursuant to the vesting schedule of the individual grant. During the nine months ended September 30, 2015, the Company granted 1,669,050 options to purchase common stock at a weighted average exercise price of $13.81. During the nine months ended September 30, 2015, the Company granted 15,306 restricted stock awards at a fair market value of $14.70. The restricted stock awards vest quarterly over a one-year period. At September 30, 2015, there were 1,935,861 shares available for future grant under the 2014 Plan. (b) Employee stock purchase plan In May 2014, the Company’s board of directors adopted and its stockholders approved the Employee Stock Purchase Plan (“ESPP”). Each employee who is a participant in the ESPP may purchase shares by authorizing payroll deductions of his or her base compensation during an offering period. Unless the participating employee has previously withdrawn from the offering, his or her accumulated payroll deductions will be used to purchase ordinary shares on the last business day of the offering period at a price equal to 85% of the fair market value of the common stock on the first business day or the last business day of the offering period, whichever is lower. All offering periods will be for six months and begin on March 1 st 1 st At February 27, 2015, the Company issued 58,793 shares of common stock at a purchase price of $11.64. At August 31, 2015, the Company issued 45,969 shares of common stock at a purchase price of $11.63. At September 30, 2015, there were 581,064 shares available for future grant under the ESPP. (c) Early exercise of stock options The Company issues stock option agreements to Company executives and members of the Board of Directors, which may permit options to be exercised at any time. The Company may also include an early exercise provision for incentive stock option agreements at its discretion. The unvested shares of common stock exercised are subject to the Company’s right to repurchase at the original exercise price upon termination of employment or other relationship. At September 30, 2015 and December 31, 2014, a total of 26,250 and 40,202 shares of unvested stock options exercised were subject to repurchase at an aggregate price of $121,800 and $184,000, respectively. These amounts are recorded as accrued and other current liabilities in the Company’s consolidated balance sheets and will be reclassified to equity as the Company’s repurchase right lapses. During the three months ended September 30, 2015 and 2014, 4,375 and 5,626 stock options associated with the early exercise vested, respectively. During the nine months ended September 30, 2015 and 2014, 13,952 and 16,878 stock options associated with the early exercise vested, respectively. (d) Valuation of share-based compensation The Company utilizes the Black-Scholes option-pricing model to estimate the fair value of stock options awarded to employees and rights to acquire stock under the ESPP, which requires several key assumptions to be made. Weighted average assumptions related to stock options used to apply this model were as follows: Three Months ended Nine Months ended September 30, September 30, 2015 2014 2015 2014 Risk-free interest rate(1) 1.74% - 1.77 % 1.92 % 1.74% - 1.77 % 1.92 % Expected life (years)(2) 6.02 6.09 6.02 6.04 Expected dividend yield(3) — % — % — % — % Expected volatility of underlying stock(4) 45% - 47 % 54 % 45% - 47 % 55 % The assumptions used to estimate the fair value of the rights to acquire stock under the ESPP during the initial offering period ending on February 28, 2015 were as follows: Risk-free interest rate(1) 0.08 % Expected life (years)(2) 0.68 Expected dividend yield(3) — % Expected volatility of underlying stock(4) 40 % The assumptions used to estimate the fair value of the rights to acquire stock under the ESPP during the offering beginning on March 1, 2015 were as follows: Risk-free interest rate(1) 0.07 % Expected life (years)(2) 0.50 Expected dividend yield(3) — % Expected volatility of underlying stock(4) 55 % (1) Risk-free interest rate (2) Expected term (3) Expected dividend yield (4) Expected volatility (e) Summary of share-based compensation expense The Company uses the straight-line attribution method to recognize expense for stock-based awards such that the expense associated with awards is evenly recognized throughout the period. Stock-based compensation included in costs and operating expenses related to the awards of stock options and the employee stock purchase plan are as follows: Three Months ended Nine Months ended September 30, September 30, (in thousands) 2015 2014 2015 2014 Cost of maintenance and professional services $ 111 $ 43 $ 273 $ 94 Research and development 346 147 894 353 Sales and marketing 307 150 775 358 General and administrative 451 121 1,054 321 Total $ 1,215 $ 461 $ 2,996 $ 1,126

Income Taxes

Income Taxes	9 Months Ended
Income Taxes	Sep. 30, 2015
Income Tax Disclosure [Abstract]
Income Taxes	13. Income taxes The Company operates in several tax jurisdictions and are subject to taxes in each country or jurisdiction in which it conducts business. Earnings from its activities outside of the United States are subject to local country income tax and may be subject to U.S. income tax. To date, the Company has incurred cumulative net losses and maintain a full valuation allowance on its net deferred tax assets. Therefore, the Company has not recorded any U.S. federal tax provisions for its earnings to date and its effective tax rate differs from statutory rates. The Company’s tax expense for earnings primarily relates to foreign income taxes, mainly from its international operations, and to a lesser extent, state income tax provisions. As of December 31, 2014, the Company’s valuation allowance related to income taxes was approximately $27.5 million. The Company is in a three year cumulative loss position in the United States. As a result, the Company maintains a full valuation allowance to reduce the carrying value of the related deferred tax assets to zero. The Company will continue to maintain a full valuation allowance for such tax assets until sustainable future levels of profitability are evident. The Company does not consider deferred tax liabilities related to indefinite lived assets to be sources of income, which can support the realizability of deferred tax assets, and has provided for tax expense and a corresponding deferred tax liability associated with these naked credits. Income tax expense related to the fair value of contingent consideration During the preparation of the Company’s financial statements for the three months ended June 30, 2015, the Company identified an error in its accounting for deferred income taxes in prior periods related to the Company’s deferred income tax accounting for its 2011 acquisition of Validus. Specifically, the Company should have, but did not, record deferred income tax expense in connection with post acquisition adjustments made to the contingent consideration recorded in connection with the acquisition. The Company has corrected this error by recording an out of period adjustment for the cumulative amount of deferred tax expense associated with these adjustments totaling $535,000, in its quarter ended June 30, 2015 financial statements. Had these tax amounts been recorded timely the Company would have recorded a reduction of tax expense of $5,700 and $13,500 in the three and six month interim periods ended June 30, 2015. During the three and nine months ended September 30, 2015 the Company recorded a reduction of tax expense of $10,900 and $24,400 as a result of the post-acquisition adjustments made to the contingent consideration during the periods presented. Income tax expense related to tax-deductible goodwill During the three months and nine months ended September 30, 2015, the Company recorded U.S. tax expense of $10,000 and $183,000, respectively, which is primarily related to the tax expense associated with indefinite lived deferred tax liabilities related to tax basis in acquired goodwill. The Company does not consider deferred tax liabilities related to indefinite lived assets to be sources of income which can support the realizability of deferred tax assets, and has provided for tax expense and a corresponding deferred tax liability associated with these indefinite lived deferred tax liabilities. As of September 30, 2015 and December 31, 2014, the Company had no uncertain positions or unrecorded liabilities for uncertain tax positions. Interest and penalty charges, if any, related to uncertain tax positions would be classified as income tax expense in the accompanying consolidated statements of operations. As of September 30, 2015 and December 31, 2014, the Company had no accrued interest or penalties related to uncertain tax positions.

Computation of Net Loss Per Sha

Computation of Net Loss Per Share	9 Months Ended
Computation of Net Loss Per Share	Sep. 30, 2015
Earnings Per Share [Abstract]
Computation of Net Loss Per Share	14. Computation of net loss per share The Company calculates basic and diluted net loss per common share by dividing the net loss adjusted for the accretion on the redeemable convertible preferred stock by the weighted average number of common shares outstanding during the period. The Company has excluded all potentially dilutive shares, which include redeemable convertible preferred stock, warrant for common stock, common stock subject to repurchase and outstanding common stock options, from the weighted average number of common shares outstanding as their inclusion in the computation for all periods would be anti-dilutive due to net losses. The Company’s redeemable convertible preferred stock are participating securities as defined under the authoritative guidance, but are excluded from the earnings per share calculation as they do not have an obligation to share or fund in the Company’s net losses. The components of net loss per share are as follows: Three Months Ended Nine Months Ended September 30, September 30, (in thousands, except per share data) 2015 2014 2015 2014 Numerator: Net loss $ (7,214 ) $ (4,454 ) $ (19,339 ) $ (15,073 ) Accretion of preferred stock — — — (2,442 ) Net loss attributable to common stockholders $ (7,214 ) $ (4,454 ) $ (19,339 ) $ (17,515 ) Denominator: Weighted average common shares outstanding used in computing basic and diluted net loss per common share 24,654 23,706 24,225 10,654 Net loss per share, basic and diluted $ (0.29 ) $ (0.19 ) $ (0.80 ) $ (1.64 ) The following common stock equivalents were excluded from the computation of diluted net loss per share attributable to common stockholders because they had an antidilutive impact: Three and Nine Months Ended September 30, (in thousands) 2015 2014 Options to purchase common stock 4,201 3,631 Common stock subject to repurchase 38 46 Total 4,239 3,677

Concentration of Risk and Off-B

Concentration of Risk and Off-Balance Sheet Risk	9 Months Ended
Concentration of Risk and Off-Balance Sheet Risk	Sep. 30, 2015
Text Block [Abstract]
Concentration of Risk and Off-Balance Sheet Risk	15. Concentration of risk and off-balance sheet risk Financial instruments that subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. The Company maintains substantially all of its cash and cash equivalents in institutional money market mutual funds. The fund provides daily liquidity and invests in a portfolio of short-term money market instruments. To manage accounts receivable credit risk, the Company continuously evaluates the creditworthiness of its customers and resellers and maintains allowances for potential credit losses. No customers or resellers accounted for 10% or more of revenues for the three and nine months ended September 30, 2015. One customer accounted for 10% or more of revenues during the three months ended September 30, 2014. No customer or reseller accounted for 10% or more of revenues during the nine months ended September 30, 2014. No customers or resellers accounted for 10% or more of accounts receivable at September 30, 2015 and December 31, 2014, respectively. The Company does not have any off-balance sheet arrangements and did not have any such arrangements during the nine months ended September 30, 2015 and the year ended December 31, 2014.

Related Party Transactions

Related Party Transactions	9 Months Ended
Related Party Transactions	Sep. 30, 2015
Related Party Transactions [Abstract]
Related Party Transactions	16. Related Party Transactions The Company completed its acquisition of HT Systems on April 30, 2015. The Company may pay up to $5.0 million of potential additional earn-out consideration to the selling equity-holders, which will be determined based upon the achievement of certain sales targets over the two-year period following the transaction. The earn-out consideration will be paid to each of the selling equity-holders of HT Systems, based on their equity ownership of HT Systems prior to the acquisition, provided that such selling equity-holder remains an employee of the Company at the time the earn-out becomes payable. Each of the selling equity-holder has become employees of the Company effective upon close of the acquisition. One selling equity-holder is a member of the Company’s executive management team, but is not a director, executive officer or five percent holder of the Company’s equity securities. No payments associated with the earn-out have been made during the three and nine months ended September 30, 2015. The Company leases office space, located in Florida, under an operating lease agreement with a separate entity owned by the selling equity-holders of HT Systems. The lease is at a market rate with a one year term expiring on March 31, 2016. The Company made rental payments totaling $15,000 and $25,000 during the three and nine months ended September 30, 2015, respectively.

Organization and Business (Poli

Organization and Business (Policies)	9 Months Ended
Organization and Business (Policies)	Sep. 30, 2015
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Basis of presentation and principles of consolidation	(b) Basis of presentation and principles of consolidation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial reporting and as required under the rules and regulations of the United States Securities and Exchange Commission (“SEC”), and on a basis substantially consistent with the audited consolidated financial statements of the Company as of and for the fiscal year ended December 31, 2014. The consolidated balance sheet at December 31, 2014 has been derived from the audited financial statements at that date, but does not include all of the disclosures required by U.S. GAAP. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in the Company’s 2014 Annual Report on Form 10-K filed with the SEC on March 11, 2015. In the opinion of Company’s management, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting of items of a normal and recurring nature) necessary to fairly present the financial position at September 30, 2015, the result of operations for the three and nine months ended September 30, 2015 and 2014 and cash flows for the nine months ended September 30, 2015 and 2014. Operating results for the nine months ended September 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015, for any other interim period or for any other future year. The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, Imprivata Securities Corporation and Imprivata International, Inc., and its wholly owned subsidiaries Imprivata UK Limited and Imprivata Australia Pty. Ltd., as well as two branch offices. All intercompany balances and transactions have been eliminated in consolidation. In the first quarter of 2015, the Company closed its Netherlands branch office. Management believes the Company has sufficient cash and availability under its letter of credit to sustain operations through at least the next 12 months.
Use of estimates	(c) Use of estimates When preparing financial statements in conformity with GAAP, we must make estimates and assumptions that affect the reported amounts of assets and liabilities and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates and such differences could be material.
Foreign currency	(d) Foreign currency The foreign subsidiaries and branches use the local currency as the functional currency. The Company translates the assets and liabilities of its foreign operations into U.S. dollars based on the rates of exchange in effect as of the balance sheet date. Revenues and expenses are translated into U.S. dollars using average exchange rates for each period. The resulting adjustments from the translation process are included in accumulated other comprehensive loss in the accompanying consolidated balance sheets. Certain transactions of the Company are settled in foreign currency, and are thus translated to U.S. dollars at the rate of exchange in effect at the end of each month. Gains (losses) resulting from the translation are included in foreign exchange gains (losses) in the accompanying consolidated statements of operations.
Research and development and software development costs	(a) Research and development and software development costs Research and development expenses consist primarily of salary and related expenses for the Company’s research and development staff, including benefits, bonuses and stock-based compensation; the cost of certain third-party contractor costs; and allocated overhead. Expenditures for research and development are expensed as incurred. Costs associated with the development of computer software for external sale are expensed prior to the establishment of technological feasibility of the software and capitalized thereafter until commercial release of the software. The Company has not historically incurred significant development costs after the establishment of technological feasibility, and as a result, no software development costs have been capitalized to date. Costs incurred during the application development stage of internal-use software projects, such as those used in the Company’s product offerings, are capitalized in accordance with the accounting guidance for costs of computer software developed for internal use. Capitalized costs include external consulting fees and payroll and payroll-related costs for employees in the Company’s research and development groups who are directly associated with, and who devote time to, the Company’s internal-use software projects during the application development stage. Capitalization begins when the planning stage is complete and the Company commits resources to the software project. Capitalization ceases when the software has been tested and is ready for its intended use. Amortization of the asset commences when the software is complete and placed in service. The Company internal-use software amortizes the completed costs . Costs incurred during the planning, training and post-implementation stages of the software development life-cycle are expensed as incurred. Costs related to upgrades and enhancements of existing internal-use software that increase the functionality of the software are also capitalized.
Recent accounting guidance	(b) Recent accounting guidance Recently adopted accounting updates In September 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-16 “Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments.” The ASU eliminates the requirement for an acquirer in a business combination to account for measurement-period adjustments retrospectively. The new guidance requires that the cumulative impact of a measurement-period adjustment (including the impact on prior periods) be recognized in the reporting period in which the adjustment is identified. The guidance is effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted for any interim and annual financial statements that have not yet been made available for issuance. The Company has elected early adoption of this guidance, effective in the third quarter ended September 30, 2015. During the three and nine months ended September 30, 2015, the Company recorded a measurement period adjustment which resulted in an immaterial impact. See note 3 for additional information. Accounting standards or updates not yet effective In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers” (Topic 606) (ASU 2014-09). ASU 2014-09 outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. In August 2015, the FASB issued ASU 2015-14, “Revenue from Contracts with Customers — In July 2015, the FASB issued ASU 2015-11, “ Simplifying the Measurement of Inventory In April 2015, the FASB issued an ASU No. 2015-03, “Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs,” requiring debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of that debt, consistent with debt discounts. The accounting standard update will be effective for the Company for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years on a retrospective basis, with early adoption permitted. The accounting standard update is a change in balance sheet presentation only and is not expected to have a material impact on the Company’s consolidated financial statements. In April 2015, the FASB issued ASU 2015-05, “Intangibles – Goodwill and Other Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement.” This ASU provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The new guidance does not change the accounting for a customer’s accounting for service contracts. ASU 2015-05 is effective for interim and annual reporting periods beginning after December 15, 2015. The Company anticipates that the adoption of this ASU will not have a material impact on its consolidated financial statements.

Business Combination (Tables)

Business Combination (Tables)	9 Months Ended
Business Combination (Tables)	Sep. 30, 2015
Business Combinations [Abstract]
Schedule of Purchase Consideration to Assets Acquired and Liabilities Assumed	Under the acquisition method of accounting, the Company allocated the purchase price to the identifiable assets and liabilities based on their estimated fair value, which was determined by management using the best information available as of the date of the acquisition (Level 3 inputs). The allocation of the HT Systems purchase consideration to the identifiable assets acquired and liabilities assumed was as follows: Useful lives (dollars in thousands) Amount (in years) Assets: Accounts receivable $ 5,449 Prepaid expenses and other current assets 34 Property and equipment 59 3 Intangible assets 3,291 4 to 7 Liabilities assumed: Accrued expenses (85 ) Deferred revenue (2,052 ) Net assets acquired 6,696 Goodwill 12,259 Total fair value consideration $ 18,955
Schedule of Pro Forma Results of Operations	The following unaudited pro forma results of operations have been presented as if the HT Systems acquisition occurred on January 1, 2014: Three Months Ended Nine Months Ended September 30, September 30, (dollars in thousands, except per share data) 2015 2014 2015 2014 Pro forma revenue $ 29,282 $ 26,738 $ 86,073 $ 72,725 Pro forma operating expenses 26,341 21,981 76,735 63,401 Pro forma net loss (7,214 ) (4,410 ) (19,882 ) (13,851 ) Pro forma net loss per share basic and diluted $ (0.29 ) $ (0.19 ) $ (0.82 ) $ (1.53 )

Trade Accounts Receivable, Ne26

Trade Accounts Receivable, Net of Allowances (Tables)	9 Months Ended
Trade Accounts Receivable, Net of Allowances (Tables)	Sep. 30, 2015
Receivables [Abstract]
Trade Accounts Receivable, Net	The following table presents the Company’s trade accounts receivable, net: September 30, December 31, (in thousands) 2015 2014 Trade accounts receivable (1) $ 25,696 $ 25,615 Unbilled receivables (2) 1,255 80 Total trade accounts receivable 26,951 25,695 Allowance for doubtful accounts (158 ) (161 ) Allowance for sales returns (199 ) (199 ) Total allowance (357 ) (360 ) Trade accounts receivable, net $ 26,594 $ 25,335 (1) Trade accounts receivables represent amounts due from customers when the Company has invoiced for product, maintenance and/or professional services and it has not yet received payment. (2) Unbilled receivables represent amounts due from customers when the Company has delivered the goods and services, but the Company has not invoiced the customer due to the contractual terms of the arrangement.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
Fair Value Measurements (Tables)	Sep. 30, 2015
Fair Value Disclosures [Abstract]
Assets and Liabilities Measured at Fair Value on Recurring Basis	The following table sets forth the Company’s assets and liabilities which are measured at fair value on a recurring basis by level within the fair value hierarchy: Fair value measurements at September 30, 2015 Total (in thousands) Level 1 Level 2 Level 3 carrying value Assets Cash equivalents: Money market funds $ 5,689 $ - $ - $ 5,689 Certificates of deposit - 97 - 97 Liabilities Contingent consideration - - 703 703 Fair value measurements at December 31, 2014 Total (in thousands) Level 1 Level 2 Level 3 carrying value Assets Cash equivalents: Money market funds $ 33,184 $ - $ - $ 33,184 Certificates of deposit - 97 - 97 Liabilities Contingent consideration - - 632 632
Reconciliation of Contingent Liability Measured at Fair Value	The following table presents a reconciliation of the contingent liability measured at fair value using significant unobservable inputs, and the revaluation amount recorded in the Company’s consolidated statements of operations as a result of the change in fair value: September 30, December 31, (in thousands) 2015 2014 Beginning balance as of January 1 st $ 632 $ 1,008 Revaluation recognized in general and administrative expenses in the corresponding statements of operations 71 (376 ) Ending balance $ 703 $ 632
Significant Unobservable Inputs Used in Valuation of Contingent Liability	This following table presents the significant unobservable inputs used in the valuation of the contingent liability: September 30, December 31, 2015 2014 Discount Rate 17 % 17 %

Intangible Assets (Tables)

Intangible Assets (Tables)	9 Months Ended
Intangible Assets (Tables)	Sep. 30, 2015
Schedule of Intangible Assets as a Result of HT Systems Acquisition	On April 30, 2015, the Company acquired the following intangible assets as a result of its acquisition of HT Systems: Useful lives (in thousands) Amount (in years) Technology $ 2,199 7 Trade name 252 4 Non-compete agreement 437 5 Customer contracts and relationships 403 7 $ 3,291
Patents [Member]
Schedule of Estimated Future Amortization of Intangible Assets	The estimated future amortization of three patents purchased as of September 30, 2015 are as follows: (in thousands) Amount 2015 (remaining 3 months) $ 12 2016 49 2017 49 2018 49 2019 49 Thereafter 213 $ 421
HT Systems [Member]
Schedule of Estimated Future Amortization of Intangible Assets	The estimated future amortization of purchased intangible assets, acquired in the acquisition of HT Systems, as of September 30, 2015 are as follows: (in thousands) Amount 2015 (remaining 3 months) $ 130 2016 522 2017 522 2018 522 2019 480 Thereafter 897 $ 3,073

Accrued Expenses and Other Cu29

Accrued Expenses and Other Current Liabilities (Tables)	9 Months Ended
Accrued Expenses and Other Current Liabilities (Tables)	Sep. 30, 2015
Payables And Accruals [Abstract]
Summary of Accrued Expenses and Other Current Liabilities	The following table presents the details of the Company’s accrued expenses and other current liabilities: September 30, December 31, (in thousands) 2015 2014 Accrued payroll and related $ 5,696 $ 7,839 Accrued taxes (1) 751 1,144 Other accrued expenses 2,896 1,582 $ 9,343 $ 10,565 (1) Accrued taxes consist of accruals for foreign and state taxes, sales and use taxes, value added taxes due in foreign jurisdictions and franchise taxes.

Warranty Obligations (Tables)

Warranty Obligations (Tables)	9 Months Ended
Warranty Obligations (Tables)	Sep. 30, 2015
Guarantees [Abstract]
Summary of Allowance for Warranty Obligations	The following table presents the details of the Company’s allowance for warranty obligations: September 30, December 31, (in thousands) 2015 2014 Beginning balance $ 40 $ 93 Provision for estimated claims 39 5 Adjustment to estimate — (51 ) Settlement of claims (39 ) (7 ) Ending balance $ 40 $ 40

Accumulated Other Comprehensi31

Accumulated Other Comprehensive Loss (Tables)	9 Months Ended
Accumulated Other Comprehensive Loss (Tables)	Sep. 30, 2015
Equity [Abstract]
Schedule of Changes in Accumulated Other Comprehensive Loss Before Taxes	The following table presents the changes in accumulated other comprehensive loss before taxes, as the tax effect is not material to the consolidated financial statements: Foreign Currency Affected Translation statement where net (in thousands) Adjustments income is presented Balance at January 1, 2014 (145 ) Other comprehensive loss (100 ) Amounts reclassified from accumulated other comprehensive income: Closure of foreign branch 145 Other income (expense) Net current-period other comprehensive loss 45 Balance at December 31, 2014 (100 ) Other comprehensive loss 15 Amounts reclassified from accumulated other comprehensive income: Closure of foreign branch (34 ) Other income (expense) Net current-period other comprehensive loss (19 ) Balance at September 30, 2015 $ (119 )

Stock Award Plans and Stock B32

Stock Award Plans and Stock Based Compensation (Tables)	9 Months Ended
Stock Award Plans and Stock Based Compensation (Tables)	Sep. 30, 2015
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Schedule of Estimated Weighted-Average Assumptions Related to Stock Options Used in Calculation of Fair Value of Options Granted and Rights to Acquire Stock Under ESPP	Weighted average assumptions related to stock options used to apply this model were as follows: Three Months ended Nine Months ended September 30, September 30, 2015 2014 2015 2014 Risk-free interest rate(1) 1.74% - 1.77 % 1.92 % 1.74% - 1.77 % 1.92 % Expected life (years)(2) 6.02 6.09 6.02 6.04 Expected dividend yield(3) — % — % — % — % Expected volatility of underlying stock(4) 45% - 47 % 54 % 45% - 47 % 55 % The assumptions used to estimate the fair value of the rights to acquire stock under the ESPP during the initial offering period ending on February 28, 2015 were as follows: Risk-free interest rate(1) 0.08 % Expected life (years)(2) 0.68 Expected dividend yield(3) — % Expected volatility of underlying stock(4) 40 % The assumptions used to estimate the fair value of the rights to acquire stock under the ESPP during the offering beginning on March 1, 2015 were as follows: Risk-free interest rate(1) 0.07 % Expected life (years)(2) 0.50 Expected dividend yield(3) — % Expected volatility of underlying stock(4) 55 % (1) Risk-free interest rate (2) Expected term (3) Expected dividend yield (4) Expected volatility
Schedule of Stock-Based Compensation Expense	Stock-based compensation included in costs and operating expenses related to the awards of stock options and the employee stock purchase plan are as follows: Three Months ended Nine Months ended September 30, September 30, (in thousands) 2015 2014 2015 2014 Cost of maintenance and professional services $ 111 $ 43 $ 273 $ 94 Research and development 346 147 894 353 Sales and marketing 307 150 775 358 General and administrative 451 121 1,054 321 Total $ 1,215 $ 461 $ 2,996 $ 1,126

Computation of Net Loss Per S33

Computation of Net Loss Per Share (Tables)	9 Months Ended
Computation of Net Loss Per Share (Tables)	Sep. 30, 2015
Earnings Per Share [Abstract]
Summary of Components of Net Loss per Share	The components of net loss per share are as follows: Three Months Ended Nine Months Ended September 30, September 30, (in thousands, except per share data) 2015 2014 2015 2014 Numerator: Net loss $ (7,214 ) $ (4,454 ) $ (19,339 ) $ (15,073 ) Accretion of preferred stock — — — (2,442 ) Net loss attributable to common stockholders $ (7,214 ) $ (4,454 ) $ (19,339 ) $ (17,515 ) Denominator: Weighted average common shares outstanding used in computing basic and diluted net loss per common share 24,654 23,706 24,225 10,654 Net loss per share, basic and diluted $ (0.29 ) $ (0.19 ) $ (0.80 ) $ (1.64 )
Summary of Common Stock Equivalents Excluded from Computation of Diluted Net Loss per Share	The following common stock equivalents were excluded from the computation of diluted net loss per share attributable to common stockholders because they had an antidilutive impact: Three and Nine Months Ended September 30, (in thousands) 2015 2014 Options to purchase common stock 4,201 3,631 Common stock subject to repurchase 38 46 Total 4,239 3,677

Organization and Business - Add

Organization and Business - Additional Information (Detail)	9 Months Ended
Organization and Business - Additional Information (Detail)	Sep. 30, 2015Branches
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Incorporated state	Delaware
Month and Year of incorporation	2001-05
Number of branches	2
Cash availability, term	12 months

Business Combination - Addition

Business Combination - Additional Information (Detail) - USD ($)	Apr. 30, 2015	Sep. 30, 2015	Jun. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Business Acquisition [Line Items]
Business acquisition purchase price					$ 18,955,000
Compensation expense associated with earn-out consideration		$ 0			0
Decrease in goodwill					947,000
Maintenance revenue			$ 24,000
Total revenue		29,282,000		$ 25,278,000	84,886,000	$ 67,952,000
HT Systems [Member]
Business Acquisition [Line Items]
Percentage of acquired equity interest	100.00%
Business acquisition purchase price	$ 19,100,000
Business acquisition amount of working capital adjustments	120,000
Business acquisition total cash consideration paid	19,000,000
Amount paid based on achieving certain sales target	$ 5,000,000
Payment period for payments based on achieving certain sales targets	2 years
Amount paid on retention-based payments	$ 1,900,000
Payment period for retention-based payments	2 years
Additional retention payments for employees	$ 341,000
Business combination employee retention payments period, minimum	8 months
Business combination employee retention payments period, maximum	20 months
Business combination, acquisition related costs		0			709,000
Working capital adjustment to pre-acquisition royalty receivables		69,000
Increase in fair value of deferred revenue acquired		106,000
Increase in unbilled receivables acquired		1,100,000
Total revenue		$ 712,000			$ 883,000

Business Combination - Schedule

Business Combination - Schedule of Purchase Consideration to Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Apr. 30, 2015	Dec. 31, 2014
Assets:
Intangible assets		$ 3,291
Current assets:
Goodwill	$ 13,819		$ 1,560
HT Systems [Member]
Assets:
Accounts receivable	5,449
Prepaid expenses and other current assets	34
Property and equipment	59
Intangible assets	$ 3,291
Property and equipment, useful life	3 years
Liabilities assumed:
Accrued expenses	$ (85)
Deferred revenue	(2,052)
Net assets acquired	6,696
Current assets:
Goodwill	12,259
Total fair value consideration	$ 18,955
HT Systems [Member] \| Minimum [Member]
Assets:
Finite lived intangible assets, useful life	4 years
HT Systems [Member] \| Maximum [Member]
Assets:
Finite lived intangible assets, useful life	7 years

Business Combination - Schedu37

Business Combination - Schedule of Pro Forma Results of Operations (Detail) - HT Systems [Member] - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Business Acquisition [Line Items]
Pro forma revenue	$ 29,282	$ 26,738	$ 86,073	$ 72,725
Pro forma operating expenses	26,341	21,981	76,735	63,401
Pro forma net loss	$ (7,214)	$ (4,410)	$ (19,882)	$ (13,851)
Pro forma net loss per share basic and diluted	$ (0.29)	$ (0.19)	$ (0.82)	$ (1.53)

Trade Accounts Receivable, Ne38

Trade Accounts Receivable, Net of Allowances - Trade Accounts Receivable, Net (Detail) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Accounts Notes And Loans Receivable [Line Items]
Trade accounts receivable, net	$ 26,594		$ 25,335
Trade Accounts Receivable [Member]
Accounts Notes And Loans Receivable [Line Items]
Total trade accounts receivable	26,951		25,695
Allowance for doubtful accounts	(158)		(161)
Allowance for sales returns	(199)	$ (199)
Total allowance	(357)		(360)
Trade accounts receivable, net	26,594		25,335
Trade Accounts Receivable [Member] \| Trade Accounts Receivable [Member]
Accounts Notes And Loans Receivable [Line Items]
Trade accounts receivable	25,696		25,615
Trade Accounts Receivable [Member] \| Unbilled Receivables [Member]
Accounts Notes And Loans Receivable [Line Items]
Unbilled receivables	$ 1,255		$ 80

Trade Accounts Receivable, Ne39

Trade Accounts Receivable, Net of Allowances - Additional Information (Detail) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Accounts Notes And Loans Receivable [Line Items]
Other assets	$ 898,000	$ 105,000
HT Systems [Member]
Accounts Notes And Loans Receivable [Line Items]
Unbilled receivables primarily due to the acquisition of HT Systems	2,200,000
Total trade accounts receivable	1,300,000
Other assets	$ 874,000

Fair Value Measurements - Asset

Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014	Dec. 31, 2013
Liabilities
Contingent consideration	$ 9,800
Fair Value Measurements on a Recurring Basis [Member]
Liabilities
Contingent consideration	703	$ 632
Money Market Funds [Member] \| Fair Value Measurements on a Recurring Basis [Member]
Assets
Cash equivalents fair value on a recurring	5,689	33,184
Certificates of Deposit [Member] \| Fair Value Measurements on a Recurring Basis [Member]
Assets
Cash equivalents fair value on a recurring	97	97
Level 1 [Member] \| Money Market Funds [Member] \| Fair Value Measurements on a Recurring Basis [Member]
Assets
Cash equivalents fair value on a recurring	5,689	33,184
Level 2 [Member] \| Certificates of Deposit [Member] \| Fair Value Measurements on a Recurring Basis [Member]
Assets
Cash equivalents fair value on a recurring	97	97
Level 3 [Member]
Liabilities
Contingent consideration	703	632	$ 1,008
Level 3 [Member] \| Fair Value Measurements on a Recurring Basis [Member]
Liabilities
Contingent consideration	$ 703	$ 632

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Detail) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Contingent liability	$ 9,800,000
Fair Value, Measurements, Non-recurring [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value measurements on a non-recurring basis		$ 0

Fair Value Measurements - Recon

Fair Value Measurements - Reconciliation of Contingent Liability Measured at Fair Value (Detail) - USD ($) $ in Thousands	9 Months Ended		12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Business Acquisition Contingent Consideration [Line Items]
Revaluation recognized in general and administrative expenses in the corresponding statements of operations	$ 71	$ (448)
Ending balance	9,800
Level 3 [Member]
Business Acquisition Contingent Consideration [Line Items]
Beginning balance	632	$ 1,008	$ 1,008
Revaluation recognized in general and administrative expenses in the corresponding statements of operations	71		(376)
Ending balance	$ 703		$ 632

Fair Value Measurements - Signi

Fair Value Measurements - Significant Unobservable Inputs Used in Valuation of Contingent Liability (Detail)	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Level 3 [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Discount Rate	17.00%	17.00%

Intangible Assets - Schedule of

Intangible Assets - Schedule of Intangible Assets as a Result of HT Systems Acquisition (Detail) $ in Thousands	Apr. 30, 2015USD ($)
Business Acquisition [Line Items]
Acquisition of intangible assets	$ 3,291
Technology [Member]
Business Acquisition [Line Items]
Acquisition of intangible assets	$ 2,199
Acquisition of intangible assets, useful lives	7 years
Trade Name [Member]
Business Acquisition [Line Items]
Acquisition of intangible assets	$ 252
Acquisition of intangible assets, useful lives	4 years
Non-compete Agreements [Member]
Business Acquisition [Line Items]
Acquisition of intangible assets	$ 437
Acquisition of intangible assets, useful lives	5 years
Customer Contracts and Relationships [Member]
Business Acquisition [Line Items]
Acquisition of intangible assets	$ 403
Acquisition of intangible assets, useful lives	7 years

Intangible Assets - Additional

Intangible Assets - Additional Information (Detail)	Jun. 03, 2015USD ($)Patent	Sep. 30, 2015USD ($)	Sep. 30, 2015USD ($)
Finite-Lived Intangible Assets [Line Items]
Number of patents acquired \| Patent	3
Aggregate purchase price of acquired patents	$ 437,000		$ 852,000
Legal fees	37,000
Payments for brokerage fees	$ 36,364
Patents amortized on a straight-line basis	9 years
Costs associated with internally developed software project		$ 415,000
General and Administrative [Member] \| Patents [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization expense		12,000	16,000
HT Systems [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization expense		131,000	218,000
HT Systems [Member] \| Cost of Sales [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization expense		109,000	196,000
HT Systems [Member] \| General and Administrative [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization expense		$ 22,000	$ 22,000

Intangible Assets - Schedule 46

Intangible Assets - Schedule of Estimated Future Amortization of Intangible Assets (Detail) $ in Thousands	Sep. 30, 2015USD ($)
Patents [Member]
Finite-Lived Intangible Assets [Line Items]
2015 (remaining 3 months)	$ 12
2,016	49
2,017	49
2,018	49
2,019	49
Thereafter	213
Total	421
HT Systems [Member]
Finite-Lived Intangible Assets [Line Items]
2015 (remaining 3 months)	130
2,016	522
2,017	522
2,018	522
2,019	480
Thereafter	897
Total	$ 3,073

Accrued Expenses and Other Cu47

Accrued Expenses and Other Current Liabilities - Summary of Accrued Expenses and Other Current Liabilities (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Payables And Accruals [Abstract]
Accrued payroll and related	$ 5,696	$ 7,839
Accrued taxes	751	1,144
Other accrued expenses	2,896	1,582
Total	$ 9,343	$ 10,565

Warranty Obligations - Summary

Warranty Obligations - Summary of Allowance for Warranty Obligations (Detail) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Guarantees [Abstract]
Beginning balance	$ 40	$ 93
Provision for estimated claims	39	5
Adjustment to estimate		(51)
Settlement of claims	(39)	(7)
Ending balance	$ 40	$ 40

Debt - Additional Information (

Debt - Additional Information (Detail) - Loan and Security Agreement [Member] - Revolving Credit Facility [Member] - USD ($)	1 Months Ended			9 Months Ended
	Apr. 30, 2015	Feb. 28, 2015	Feb. 28, 2014	Sep. 30, 2015	Mar. 31, 2015	Dec. 31, 2014
Line of Credit Facility [Line Items]
Credit facility maturity date	Apr. 30, 2016	Apr. 30, 2015	Feb. 28, 2015
Maximum borrowing limit on accounts receivable	$ 15,000,000				$ 10,000,000
Outstanding revolving credit facility				$ 0		$ 0
Prime Rate
Line of Credit Facility [Line Items]
Outstanding borrowings, interest rate				0.75%

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail)	Jan. 16, 2015USD ($)ft²	Apr. 30, 2015USD ($)ft²
Leases Disclosure [Line Items]
Additional rent expense \| $	$ 7,900,000
Landlord contribution for leasehold improvement \| $	$ 735,000
Lease agreement amendment	Jan. 16, 2015
Lease payments \| $		$ 30,000
HT Systems [Member]
Leases Disclosure [Line Items]
Operating lease office space		3,500
Operating lease termination year		Mar. 31, 2016
Massachusetts [Member]
Leases Disclosure [Line Items]
Operating lease additional office space square feet	21,000
Operating lease office space square feet	93,000

Accumulated Other Comprehensi51

Accumulated Other Comprehensive Loss - Schedule of Changes in Accumulated Other Comprehensive Loss Before Taxes (Detail) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	$ (100)
Amounts reclassified from accumulated other comprehensive income:
Net current-period other comprehensive loss	(19)
Ending balance	(119)	$ (100)
Accumulated Translation Adjustment [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(100)	(145)
Other comprehensive loss	15	(100)
Amounts reclassified from accumulated other comprehensive income:
Other income (expense)	(34)	145
Net current-period other comprehensive loss	(19)	45
Ending balance	$ (119)	$ (100)

Stock Award Plans and Stock B52

Stock Award Plans and Stock Based Compensation - Additional Information (Detail) - USD ($)	Aug. 31, 2015	Feb. 27, 2015	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options expiration period					10 years
Stock options vesting period					4 years
Restricted stock, shares issued					15,306
Employee stock purchase plan fair market value of the common stock					85.00%
Share based compensation unvested stock options			26,250		26,250		40,202
Share based compensation stock options repurchase					$ 121,800		$ 184,000
2014 Stock Option and Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares granted					1,669,050
Weighted average price					$ 13.81
Common stock, capital shares reserved for future instance			1,935,861		1,935,861
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options vesting period					1 year
Restricted stock, price per share			$ 14.70		$ 14.70
Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock, capital shares reserved for future instance			581,064		581,064
Common stock, issued	45,969	58,793
Common stock, purchase price	$ 11.63	$ 11.64
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option associated with early exercise vested			4,375	5,626	13,952	16,878

Stock Award Plans and Stock B53

Stock Award Plans and Stock Based Compensation - Schedule of Estimated Weighted-Average Assumptions Related to Stock Options Used in Calculation of Fair Value of Options Granted and Rights to Acquire Stock Under ESPP (Detail)	Feb. 28, 2015	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2015	Sep. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate			1.92%			1.92%
Risk-free interest rate, minimum		1.74%			1.74%
Risk-free interest rate, maximum		1.77%			1.77%
Expected life (years)		6 years 7 days	6 years 1 month 2 days		6 years 7 days	6 years 15 days
Expected volatility of underlying stock			54.00%			55.00%
Expected volatility of underlying stock, minimum		45.00%			45.00%
Expected volatility of underlying stock, maximum		47.00%			47.00%
Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate	0.08%			0.07%
Expected life (years)	8 months 5 days			6 months
Expected volatility of underlying stock	40.00%			55.00%

Stock Award Plans and Stock B54

Stock Award Plans and Stock Based Compensation - Schedule of Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 1,215	$ 461	$ 2,996	$ 1,126
Cost of Maintenance and Professional Services [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	111	43	273	94
Research and Development [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	346	147	894	353
Sales and Marketing [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	307	150	775	358
General and Administrative [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 451	$ 121	$ 1,054	$ 321

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($)	3 Months Ended		6 Months Ended	9 Months Ended	12 Months Ended
Income Taxes - Additional Information (Detail) - USD ($)	Sep. 30, 2015	Jun. 30, 2015	Jun. 30, 2015	Sep. 30, 2015	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Valuation allowance related to income taxes					$ 27,500,000
Cumulative loss position in United States					3 years
Deferred tax assets					$ 0
Deferred tax expense		$ 535,000		$ 694,000
Reduction in tax expense	$ 10,900	$ 5,700	$ 13,500	24,400
U.S. tax expense	10,000			183,000
Liability for uncertain tax positions	0			0	0
Accrued interest or penalties related to uncertain tax positions	$ 0			$ 0	$ 0

Computation of Net Loss Per S56

Computation of Net Loss Per Share - Summary of Components of Net Loss per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Numerator:
Net loss	$ (7,214)	$ (4,454)	$ (19,339)	$ (15,073)
Accretion of preferred stock				(2,442)
Net loss attributable to common stockholders	$ (7,214)	$ (4,454)	$ (19,339)	$ (17,515)
Denominator:
Weighted average common shares outstanding used in computing basic and diluted net loss per common share	24,654	23,706	24,225	10,654
Net loss per share, basic and diluted	$ (0.29)	$ (0.19)	$ (0.80)	$ (1.64)

Computation of Net Loss Per S57

Computation of Net Loss Per Share - Summary of Common Stock Equivalents Excluded from Computation of Diluted Net Loss per Share (Detail) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of diluted net loss per share	4,239	3,677	4,239	3,677
Options to Purchase Common Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of diluted net loss per share	4,201	3,631	4,201	3,631
Common Stock Subject to Repurchase [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of diluted net loss per share	38	46	38	46

Concentration of Risk and Off58

Concentration of Risk and Off-Balance Sheet Risk - Additional Information (Detail) - Customer Concentration Risk - Customer	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Revenues [Member]
Concentration Risk [Line Items]
Number of customers or resellers accounted for 10% or more of revenues or accounts receivable	0	1	0	0
Concentration risk percentage	10.00%	10.00%	10.00%	10.00%
Accounts Receivable [Member]
Concentration Risk [Line Items]
Number of customers or resellers accounted for 10% or more of revenues or accounts receivable			0		0
Concentration risk percentage			10.00%		10.00%

Related Party Transactions - Ad

Related Party Transactions - Additional Information (Detail) - USD ($)	Apr. 30, 2015	Sep. 30, 2015	Sep. 30, 2015
HT Systems [Member]
Related Party Transaction [Line Items]
Amount paid based on achieving certain sales target	$ 5,000,000
Payment period for payments based on achieving certain sales targets	2 years
Selling Members of HT Systems [Member] \| HT Systems [Member]
Related Party Transaction [Line Items]
Payment associated with earn out		$ 0	$ 0
Member of Executive Management Team [Member]
Related Party Transaction [Line Items]
Lease term			1 year
Lease expiration period			Mar. 31, 2016
Rent expense		$ 15,000	$ 25,000