Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Feb. 19, 2014 | Jun. 30, 2013 | |
Document And Entity Information [Abstract] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Trading Symbol | 'MVNR | ' | ' |
Entity Registrant Name | 'MAVENIR SYSTEMS INC | ' | ' |
Entity Central Index Key | '0001361470 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Non-accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 23,420,759 | ' |
Entity Public Float | ' | ' | $0 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $38,930 | $7,402 |
Accounts receivable, net of allowance of $587 and $382 at December 31, 2013, and December 31, 2012 respectively | 23,641 | 15,159 |
Unbilled revenue | 11,213 | 9,782 |
Inventories | 7,109 | 2,255 |
Prepaid expenses and other current assets | 3,614 | 6,484 |
Deferred contract costs | 9,313 | 5,288 |
Total current assets | 93,820 | 46,370 |
Non-current assets: | ' | ' |
Property and equipment, net | 5,054 | 5,919 |
Intangible assets, net | 5,202 | 5,714 |
Deposits and other assets | 1,657 | 1,555 |
Goodwill | 866 | 923 |
Total assets | 106,599 | 60,481 |
Current liabilities: | ' | ' |
Trade accounts payable | 7,152 | 6,087 |
Accrued liabilities | 11,939 | 11,014 |
Deferred revenue | 15,785 | 12,927 |
Income tax payable | 765 | 27 |
Deferred income tax | ' | 34 |
Total current liabilities | 35,641 | 30,089 |
Non-current liabilities: | ' | ' |
Other long-term liabilities | 3,504 | 3,929 |
Long-term debt | 23,423 | 14,700 |
Total liabilities | 62,568 | 48,718 |
Commitments and contingencies | ' | ' |
Shareholders' equity (deficit): | ' | ' |
Common stock, $0.001 par value. 300,000,000 shares authorized; 23,420,759 shares issued and outstanding at December 31, 2013, respectively; and 2,087,281 and 1,337,906 shares issued and outstanding at December 31, 2012, respectively. | 23 | 1 |
Additional paid-in capital | 153,878 | 1,215 |
Accumulated deficit | -110,867 | -95,577 |
Accumulated other comprehensive income | 997 | 1,566 |
Total shareholders' equity (deficit) | 44,031 | -92,795 |
Total liabilities and shareholders' equity (deficit) | 106,599 | 60,481 |
Series A redeemable convertible preferred stock [Member] | ' | ' |
Temporary equity: | ' | ' |
Redeemable convertible preferred stock, $0.001 par value. | ' | 13,005 |
Series B redeemable convertible preferred stock [Member] | ' | ' |
Temporary equity: | ' | ' |
Redeemable convertible preferred stock, $0.001 par value. | ' | 20,500 |
Series C redeemable convertible preferred stock [Member] | ' | ' |
Temporary equity: | ' | ' |
Redeemable convertible preferred stock, $0.001 par value. | ' | 17,478 |
Series D redeemable convertible preferred stock [Member] | ' | ' |
Temporary equity: | ' | ' |
Redeemable convertible preferred stock, $0.001 par value. | ' | 13,575 |
Series E redeemable convertible preferred stock [Member] | ' | ' |
Temporary equity: | ' | ' |
Redeemable convertible preferred stock, $0.001 par value. | ' | $40,000 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Allowance for accounts receivable | $587 | $382 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 23,420,759 | 2,087,281 |
Common stock, shares outstanding | 23,420,759 | 1,337,906 |
Series A redeemable convertible preferred stock [Member] | ' | ' |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 0 | 3,733,963 |
Preferred stock, shares issued | 0 | 3,733,963 |
Preferred stock, shares outstanding | 0 | 3,733,963 |
Series B redeemable convertible preferred stock [Member] | ' | ' |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 0 | 3,818,210 |
Preferred stock, shares issued | 0 | 3,818,210 |
Preferred stock, shares outstanding | 0 | 3,818,210 |
Series C redeemable convertible preferred stock [Member] | ' | ' |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 0 | 3,526,218 |
Preferred stock, shares issued | 0 | 2,616,704 |
Preferred stock, shares outstanding | 0 | 2,616,704 |
Series D redeemable convertible preferred stock [Member] | ' | ' |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 0 | 1,728,569 |
Preferred stock, shares issued | 0 | 1,728,569 |
Preferred stock, shares outstanding | 0 | 1,728,569 |
Series E redeemable convertible preferred stock [Member] | ' | ' |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 0 | 4,590,744 |
Preferred stock, shares issued | 0 | 4,555,021 |
Preferred stock, shares outstanding | 0 | 4,555,021 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations and Comprehensive Loss (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenues | ' | ' | ' |
Software products | $79,342 | $52,409 | $38,264 |
Maintenance | 21,966 | 21,431 | 11,240 |
Total revenues | 101,308 | 73,840 | 49,504 |
Cost of revenues | ' | ' | ' |
Software products | 35,971 | 23,891 | 26,200 |
Maintenance | 9,202 | 6,568 | 4,584 |
Total cost of revenues | 45,173 | 30,459 | 30,784 |
Gross profit | 56,135 | 43,381 | 18,720 |
Operating expenses: | ' | ' | ' |
Research and development | 22,775 | 23,312 | 14,970 |
Sales and marketing | 20,485 | 20,580 | 12,332 |
General and administrative | 20,583 | 14,052 | 10,603 |
Total operating expenses | 63,843 | 57,944 | 37,905 |
Operating loss | -7,708 | -14,563 | -19,185 |
Other expense (income): | ' | ' | ' |
Interest income | -18 | -10 | -246 |
Interest expense | 3,203 | 393 | 307 |
Foreign exchange loss (gain) | 1,901 | -529 | 1,182 |
Total other expense (income), net | 5,086 | -146 | 1,243 |
Loss before income tax | -12,794 | -14,417 | -20,428 |
Income tax expense | 2,496 | 1,152 | 1,330 |
Net loss | -15,290 | -15,569 | -21,758 |
Basic and diluted loss per common share | ($3.57) | ($12.09) | ($18.82) |
Weighted average common shares outstanding | 4,278,060 | 1,287,986 | 1,155,980 |
Net loss | -15,290 | -15,569 | -21,758 |
Other comprehensive income (loss) | ' | ' | ' |
Foreign currency translation adjustments | -569 | 387 | 711 |
Total comprehensive loss | ($15,859) | ($15,182) | ($21,047) |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Shareholders' Equity (Deficit) (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
In Thousands, except Share data | |||||
Beginning Balance at Dec. 31, 2010 | ($57,443) | $1 | $338 | ($58,250) | $468 |
Beginning Balance, (in shares) at Dec. 31, 2010 | ' | 1,126,222 | ' | ' | ' |
Exercise of stock options | 50 | ' | 50 | ' | ' |
Exercise of stock options, (in shares) | 90,277 | 90,277 | ' | ' | ' |
Stock-based compensation expense | 138 | ' | 138 | ' | ' |
Net loss | -21,758 | ' | ' | -21,758 | ' |
Foreign currency translation adjustment | 711 | ' | ' | ' | 711 |
Ending Balance at Dec. 31, 2011 | -78,302 | 1 | 526 | -80,008 | 1,179 |
Ending Balance, (in shares) at Dec. 31, 2011 | ' | 1,216,499 | ' | ' | ' |
Exercise of stock options | 73 | ' | 73 | ' | ' |
Exercise of stock options, (in shares) | 121,407 | 121,407 | ' | ' | ' |
Stock-based compensation expense | 291 | ' | 291 | ' | ' |
Warrants issued | 325 | ' | 325 | ' | ' |
Net loss | -15,569 | ' | ' | -15,569 | ' |
Foreign currency translation adjustment | 387 | ' | ' | ' | 387 |
Ending Balance at Dec. 31, 2012 | -92,795 | 1 | 1,215 | -95,577 | 1,566 |
Ending Balance, (in shares) at Dec. 31, 2012 | ' | 1,337,906 | ' | ' | ' |
Issuance of common stock upon initial public offering, net of offering costs | 44,765 | 6 | 44,759 | ' | ' |
Issuance of common stock upon initial public offering, net of offering costs, (in shares) | ' | 5,465,631 | ' | ' | ' |
Conversion of preferred stock to common stock upon initial public offering | 104,558 | 16 | 104,542 | ' | ' |
Conversion of preferred stock to common stock upon initial public offering, (in shares) | ' | 16,452,467 | ' | ' | ' |
Exercise of stock options | 91 | ' | 91 | ' | ' |
Exercise of stock options, (in shares) | 163,356 | 163,358 | ' | ' | ' |
Stock-based compensation expense | 1,630 | ' | 1,630 | ' | ' |
Warrants exercised | 7 | ' | 7 | ' | ' |
Warrants exercised, (in shares) | ' | 1,397 | ' | ' | ' |
Warrants issued | 1,634 | ' | 1,634 | ' | ' |
Net loss | -15,290 | ' | ' | -15,290 | ' |
Foreign currency translation adjustment | -569 | ' | ' | ' | -569 |
Ending Balance at Dec. 31, 2013 | $44,031 | $23 | $153,878 | ($110,867) | $997 |
Ending Balance, (in shares) at Dec. 31, 2013 | ' | 23,420,759 | ' | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Operating activities: | ' | ' | ' |
Net loss | ($15,290) | ($15,569) | ($21,758) |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' | ' |
Depreciation of property and equipment | 2,472 | 1,527 | 949 |
Amortization of intangible assets | 1,534 | 2,521 | 1,984 |
Amortization of debt discount | 357 | 25 | ' |
Provision for bad debts and doubtful accounts | 537 | 199 | 638 |
Stock-based compensation expense | 1,630 | 291 | 138 |
Unrealized foreign currency loss/(gain) | 74 | -1,194 | 643 |
Write-off of assets | 2 | 281 | ' |
Changes in operating assets and liabilities: | ' | ' | ' |
Accounts receivable | -8,565 | -103 | -3,039 |
Unbilled revenue | -1,480 | -2,735 | 1,055 |
Deposits and other assets | -377 | 1,126 | 95 |
Inventories | -4,854 | -20 | -1,382 |
Prepaid expenses | 2,290 | -3,556 | -557 |
Deferred contract costs | -3,821 | -1,770 | -1,222 |
Deferred revenues | 3,151 | -9,734 | 10,179 |
Accounts payable and accrued liabilities | 1,842 | 6,324 | 4,180 |
Net cash used in operating activities | -20,498 | -22,387 | -8,097 |
Investing activities: | ' | ' | ' |
Acquisition of Airwide, net of cash acquired | ' | ' | -14,497 |
Purchases of property and equipment | -2,798 | -5,217 | -4,029 |
Net cash used in investing activities | -2,798 | -5,217 | -18,526 |
Financing activities: | ' | ' | ' |
Proceeds from initial public offering, net of offering costs | 45,348 | ' | ' |
Repayments of notes payable | ' | ' | -688 |
Borrowing of long-term debt | 27,000 | 5,000 | ' |
Repayments of long-term debt | -17,000 | ' | ' |
Borrowing from line of credit | ' | 13,000 | 3,741 |
Repayments of line of credit borrowing | ' | -3,814 | -2,927 |
Issuance of preferred stock | ' | ' | 40,000 |
Exercise of options to purchase common stock | 91 | 73 | 50 |
Net cash provided by financing activities | 55,439 | 14,259 | 40,176 |
Effect of foreign currency exchange rate changes on cash and cash equivalents | -615 | 1,281 | 488 |
Net increase (decrease) in cash and cash equivalents | 31,528 | -12,064 | 14,041 |
Cash and cash equivalents at beginning of year | 7,402 | 19,466 | 5,425 |
Cash and cash equivalents at end of year | 38,930 | 7,402 | 19,466 |
Supplemental cash flow information: | ' | ' | ' |
Cash paid for interest | 2,449 | 83 | 84 |
Income tax payments, net | 346 | 47 | 387 |
Non-cash financing activities | ' | ' | ' |
Conversion of preferred stock into common stock | 104,558 | ' | ' |
Unpaid offering costs in additional paid-in-capital | 583 | ' | ' |
Issuance of warrants | 1,634 | 325 | ' |
Cashless exercise of warrants | $7 | ' | ' |
Description_of_the_Business_an
Description of the Business and Basis of Presentation | 12 Months Ended |
Dec. 31, 2013 | |
Accounting Policies [Abstract] | ' |
Description of the Business and Basis of Presentation | ' |
1. Description of the Business and Basis of Presentation | |
Description of Business | |
Mavenir Systems, Inc. (“Mavenir” or “We”) was originally formed as a limited liability company on April 26, 2005. We were incorporated under the laws of Texas in August 2005, and subsequently incorporated under the laws of the state of Delaware in March 2006. | |
We are a leading provider of software-based telecommunications networking solutions that enable mobile service providers to deliver internet protocol (IP)-based voice, video, rich communication and enhanced messaging services to their subscribers globally. Our solutions deliver Rich Communication Suite (“RCS”)-based services, which enable enhanced mobile communications such as group text messaging, multi-party voice or video calling and live video streaming as well as the exchange of files or images, over existing 2G and 3G networks as well as next generation 4G LTE networks. Our solutions also deliver voice services over Long Term Evolution (“LTE”) technology and wireless (“Wi-Fi”) networks known respectively as Voice over LTE (“VoLTE”) and Voice over Wi-Fi (“VoWi-Fi”). Mavenir’s mOne® Convergence Platform has enabled a leading mobile service provider to introduce the industry’s first live network deployment of VoLTE and the industry’s first live deployment of next-generation RCS 5. | |
We are headquartered in Richardson, Texas and has research and development personnel located at its wholly-owned subsidiaries in China and India. Additionally, we have a sales presence in Hong Kong and Europe. | |
On May 27, 2011, we acquired Airwide Solutions, Inc. (“Airwide”) (the “Airwide Acquisition”). Airwide’s operations are focused on the provision of messaging and content delivery software to mobile operators. Airwide designs, develops, and supports messaging and content systems. The majority of Airwide’s revenues and expenses are from outside the United States. Prior to the Airwide Acquisition, Airwide’s corporate offices were located in Burlington, Massachusetts. Airwide has significant operations in the United Kingdom, Finland, Australia and Canada. In addition, there are operations in India, Malaysia, Spain and Singapore. | |
Basis of Presentation and Consolidation | |
The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and include the accounts of Mavenir and its wholly-owned subsidiaries (collectively, the “Company” or “we”). All intercompany accounts and transactions have been eliminated in consolidation. The Airwide Acquisition is included in the consolidated financial statements from the date of acquisition. | |
Initial Public Offering and Reverse Stock Split | |
In November 2013, we closed our initial public offering (“IPO”), in which we sold 5,320,292 shares of common stock and certain selling stockholders sold 129,708 shares of common stock at a price to the public of $10.00 per share, before underwriting discounts and commissions. In December 2013, the underwriters partially exercised their option to purchase additional shares and we issued and sold 145,339 additional shares at the same price to the public, before underwriting discounts and commissions. We raised approximately $44.8 million in net proceeds after deducting underwriting discounts and commissions of approximately $3.8 million and other estimated offering expenses of approximately $6.1 million. We did not receive any proceeds from the sale of shares by the selling stockholders in the IPO. | |
In connection with preparing for the IPO, our Board of Directors and stockholders approved a 7-for-1 reverse stock split of our common stock. The reverse stock split became effective on November 1, 2013. All share and per share amounts in the consolidated financial statements and notes thereto have been retrospectively adjusted for all periods presented to give effect to this reverse stock split, including reclassifying an amount equal to the reduction in par value of common stock to additional paid-in capital. | |
In connection with the closing of the IPO in November 2013, all of our outstanding preferred stock automatically converted into an aggregate of 16,452,467 shares of our common stock. | |
Reclassifications | |
Certain amounts previously presented for prior periods have been reclassified to conform to the current presentation. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Summary of Significant Accounting Policies | ' | ||||||||||||||||
2. Summary of Significant Accounting Policies | |||||||||||||||||
Business Combination | |||||||||||||||||
We account for business combinations under the acquisition method of accounting, which requires the assets acquired and liabilities assumed to be recorded at their respective fair values as of the acquisition date in our consolidated financial statements. The determination of estimated fair value may require management to make significant estimates and assumptions. The purchase price is the fair value of the total consideration conveyed to the seller and the excess of the purchase price over the fair value of the acquired identifiable net assets, where applicable, is recorded as goodwill. The results of operations of an acquired business are included in our consolidated financial statements from the date of acquisition. Costs associated with the acquisition of a business are expensed in the period incurred. | |||||||||||||||||
Cash and Cash Equivalents | |||||||||||||||||
Cash and cash equivalents consist of corporate bank accounts and money market funds with an original maturity of three months or less. For purposes of the statement of cash flows, we consider all highly liquid instruments with original maturities of three months or less to be cash equivalents. Cash balances consisted of U.S. Dollar, Australian Dollar (“AUD”), British Pound (“GBP”), Canadian Dollar (“CAD”), Chinese Yuan Renminbi (“CNY”), Croatian Kuna (“HRK”), European Union (“EURO”), Indian Rupee (“INR”), Malaysian Ringgit (“MYR”), Swedish Krona (“SEK”), and Singapore Dollar (“SGD”). | |||||||||||||||||
Cash and cash equivalents are maintained at high credit-quality financial institutions. Balances may exceed the limits of government provided insurance, if applicable or available. We have never experienced any losses resulting from a financial institution failure or default. In 2013, FDIC insurance coverage is $0.3 million per depositor at each financial institution, and our non-interest bearing cash balances in the United States may again exceed federally insured limits. | |||||||||||||||||
Accounts Receivable | |||||||||||||||||
Our accounts receivable are primarily due from companies in the mobile telecommunications industry. Credit is extended based on evaluation of the customer’s financial condition and generally collateral is not required. Accounts receivable are determined by the payment milestones referenced and agreed to in each of the commercial agreements. Payment milestones vary by contract. Payment terms typically range from 30 to 60 days from invoice date. Accounts outstanding longer than the contractual payment term are considered past due (in thousands). | |||||||||||||||||
Allowance for doubtful accounts | Balance at | Charged to Costs and | Deductions | Balance at End | |||||||||||||
Beginning | Expense | of Period | |||||||||||||||
of Period | |||||||||||||||||
Year ended December 31, 2011 | $ | 3 | $ | 638 | $ | — | $ | 641 | |||||||||
Year ended December 31, 2012 | $ | 641 | $ | 199 | $ | (458 | ) | $ | 382 | ||||||||
Year ended December 31, 2013 | $ | 382 | $ | 537 | $ | (332 | ) | $ | 587 | ||||||||
Revenue Recognition | |||||||||||||||||
We generate revenue from the sale of software products and maintenance and support. Professional services consist primarily of software development and implementation services, but also can include training of customer personnel. Our products and services are generally sold as part of a contract, the terms of which are considered as a whole to determine the appropriate revenue recognition. | |||||||||||||||||
Our products and services are sold through distribution partners and directly through our sales force. We typically do not offer contractual rights of return, stock balancing or price protection to our distribution partners, however, we do offer certain price protection to Cisco under the arrangement. Actual product returns from our customers have been insignificant to date. As a result, we do not currently maintain allowances for product returns and related services. A reserve based on historical experience or specific identification is recorded for estimated reductions to revenue for customer and distributor programs and incentive offerings, including price protections, promotions, other volume-based incentives and expected returns and has historically been insignificant. | |||||||||||||||||
We recognize revenue when persuasive evidence of an arrangement exists, delivery has occurred, the sale price is fixed or determinable and collectability is reasonably assured. We recognize revenue in accordance with either the provisions of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 985-605, Software Revenue Recognition, as amended, or with ASC 605-25 Multiple Element Arrangements (“MEAs”), with consideration to ASC 605-35 Construction-Type and Production-Type Contracts. | |||||||||||||||||
We first determine whether our products consist of tangible products that contain essential software elements and as such, are excluded from the software revenue recognition method of accounting. | |||||||||||||||||
Our software related products MEAs include software, non-essential hardware, professional services, and maintenance and typically involve significant professional services for customization and implementation and various combinations of these products and maintenance. We generally recognize all multiple elements except maintenance using the percentage of completion accounting for our projects. Revenue for hardware is non-essential and not material to the projects and is recognized on a percentage of completion basis along with the software related products. Maintenance is allocated based on vendor-specific objective evidence (“VSOE”). | |||||||||||||||||
Our tangible products containing essential software MEAs include hardware, software essential to the functionality of the hardware, installation, and maintenance and are dependent on final customer acceptance, except maintenance which is recognized over the term of coverage. All multiple elements except maintenance are only recognized upon customer acceptance, and the total transaction price is allocated based on the relative Estimated Selling Price (“ESP”) for the accepted product and maintenance. | |||||||||||||||||
Software Related Revenue Recognition | |||||||||||||||||
Certain of our software products are delivered under contracts, which generally require significant integration within a customer’s production and business system environment. As our agreements generally require significant production, modification or customization of the software, we account for these agreements under the percentage-of-completion method on the basis of hours incurred to date compared to total hours expected under the contract. The percentage-of-completion method generally results in the recognition of consistent profit margins over the life of the contract since management has the ability to produce estimates of contract billings and contract costs. We use the level of profit margin that is most likely to occur on a contract. If the most likely profit margin cannot be precisely determined, the lowest probable level of profit in the range of estimates is used until the results can be estimated more precisely. Under the percentage-of-completion accounting, management must also make key judgments in areas such as the percentage-of-completion, estimates of project revenue, costs and margin, estimates of total and remaining project hours and liquidated damages assessments. Changes in job performance, job conditions, estimated profitability, final contract settlements and resolution of claims may result in a revision to job costs and income amount that are different than amounts originally estimated. At the time a loss on a contract is known, the entire amount of the estimated loss is accrued. | |||||||||||||||||
Software contracts that do not qualify for use of the percentage-of-completion method, as reasonable estimates of percentage of completion are not available, are accounted for using the completed-contract method. Under the completed-contract method, all billings and related costs, net of anticipated losses, are deferred until completion of the contract. | |||||||||||||||||
In certain situations, we sell software that does not require significant modification of services considered essential to the software’s functionality. Such software, generally consisting of capacity license upgrades, is recognized upon delivery if the other revenue recognition criteria are met. | |||||||||||||||||
For multiple element software arrangements, each element of the arrangement is analyzed and allocated a portion of the total arrangement fee to the elements based on the fair value of the element using VSOE of fair value, regardless of any separate prices stated within the contract for each element. Fair value is considered the price a customer would be required to pay if the element were sold separately based on our historical experience of stand-alone sales of these elements to third parties. For post-contract customer support (“PCS”) such as maintenance, we use renewal rates for continued support arrangements to determine fair value. For software services, we use the fair value we charge our customers when those services are sold separately. We monitor our transactions at least annually to ensure we maintain and periodically revise VSOE to reflect fair value. | |||||||||||||||||
Some of our software arrangements include services not considered essential for the customer to use the software for the customer’s purpose, such as training. When software services are not considered essential, the fee allocable to the service element is recognized as revenue as we perform the services. Revenue for hardware is non-essential and not material to the projects and is recognized on a percentage of completion basis along with the software related products. | |||||||||||||||||
Tangible Product Containing Essential Software | |||||||||||||||||
On January 1, 2011, we retroactively adopted, for all periods presented, an accounting update regarding revenue recognition for multiple deliverable arrangements and an accounting update for certain revenue arrangements that consist of tangible products that include essential software elements. | |||||||||||||||||
The amended update for multiple deliverable arrangements changed the units of accounting for our revenue transactions, and these products and services qualify as separate units of accounting. Under the previous guidance for multiple deliverable arrangements with tangible products and software elements, we were unable to determine the fair value of the undelivered element so we deferred our costs and related billings and recognized such amounts over the performance period of the last deliverable, which was generally the PCS or maintenance period. | |||||||||||||||||
MEAs are arrangements with customers which include multiple deliverables, including a combination of equipment and services. The deliverables included in the MEAs are separated into more than one unit of accounting when (i) the delivered equipment has value to the customer on a stand-alone basis, and (ii) delivery of the undelivered service element(s) is probable and substantially in our control. Revenue from arrangements for the sale of tangible products containing both software and non-software components that function together to deliver the product’s essential functionality requires allocation of the arrangement consideration to the separate deliverables using the relative selling price method (“RSP”) of each unit of accounting based first on VSOE if it exists, second on third-party evidence (“TPE”) if it exists, and on ESP if neither VSOE nor TPE exist. | |||||||||||||||||
• | VSOE — For certain elements of an arrangement, VSOE is based upon the pricing in comparable transactions when the element is sold separately. We determine VSOE based on our pricing and discounting practices for the specific product or service when sold separately, considering geographical, customer, and other economic or marketing variables, as well as renewal rates or stand-alone prices for the service element(s). | ||||||||||||||||
• | TPE — If we cannot establish VSOE of selling price for a specific product or service included in a multiple-element arrangement, we use third-party evidence of selling price. We determine TPE based on sales of comparable amounts of similar products or services offered by multiple third parties considering the degree of customization and similarity of the product or service sold. | ||||||||||||||||
• | ESP — The estimated selling price represents the price at which we would sell a product or service if it were sold on a stand-alone basis. When VSOE or TPE does not exist for an element, we determine ESP for the arrangement element based on sales, cost and margin analysis, pricing practices and potential market constraints. Adjustments for other market and company-specific factors are made as deemed necessary in determining ESP. | ||||||||||||||||
Under the accounting principles retroactively adopted for all of the periods presented, certain contracts include multiple elements for which we determine whether the various elements meet the applicable criteria to be accounted for as separate elements and make estimates regarding their relative selling price. We use ESP when allocating arrangement consideration to each separate deliverable as we do not have VSOE or TPE of selling price for our various applicable tangible products containing essential software products and services. We allocate the total transaction price of an arrangement based on each separate unit of accounting relative to ESP. Revenue for elements that cannot be separated is recognized once the revenue recognition criteria for the entire arrangement has been met or over the period that our last remaining obligation to perform is fulfilled. Consideration for elements that are deemed separable is allocated to the separate elements at the inception of the arrangement on the basis of their relative selling price and recognized based on meeting authoritative criteria. The adoption of the amended revenue recognition rules significantly changed the timing of revenue recognition and had a material impact on the consolidated financial statements for the years ended December 31, 2013, 2012 and 2011. We cannot reasonably estimate the effect of adopting these standards on future financial periods as the impact will vary depending on the nature and volume of new or materially modified sales arrangements in any given period. We consider the installation and delivery of our software products to be part of a single unit of accounting for software products revenue due to the complexity of the installation and nature of the contracts. | |||||||||||||||||
The related costs associated with the delivered product that does not yet meet the criteria to be recognized as revenue are deferred. The cost of such products is charged to cost of revenue on a proportionate basis similar to the manner in which the related revenue is recognized. Deferred cost represents the cost of direct and incremental items purchased for contracts not yet delivered to or accepted by the customers. Costs of revenue principally consist of the costs of payroll-related costs for service personnel, third-party hardware, third-party licenses and shipping and installation costs to any customer. | |||||||||||||||||
Unbilled Revenue | |||||||||||||||||
In cases where final acceptance has occurred but we have not invoiced the customer, we account for the amount to be invoiced as unbilled revenue. Customers are billed in accordance with specific contract terms, which may differ from the rate at which revenue is earned. Revenue recognized in excess of the amount billed of $11.2 million, $9.8 million and $4.8 million at December 31, 2013, 2012 and 2011, respectively, are classified as unbilled revenue. Amounts received from customers pursuant to the terms specified in contracts, but for which revenue has not yet been earned, are recorded as deferred revenue. We also evaluate our revenue recognition in accordance with FASB Accounting Standards Codification 605-45, Principal Agent Consideration, regarding gross versus net revenue reporting. We believe that we meet the criteria for gross recognition and report revenue on a gross basis. | |||||||||||||||||
Maintenance | |||||||||||||||||
Maintenance consists of PCS agreements and our customers generally enter into PCS agreements when they purchase our products. Our PCS agreements range from one to three years and are typically renewable on an annual basis thereafter at the option of the customer. Revenue allocated to PCS is recognized ratably on a straight-line basis over the period the PCS is provided, assuming all other criteria for revenue recognition have been met. All significant costs and expenses associated with PCS are expensed as incurred. For our software products, we have established VSOE of fair value for the PCS and rates for maintenance, including subsequent renewal rates, are typically established based upon a specific percentage of the products provided, as set forth in the arrangement with the customer. For our tangible products (which all contain essential software), our customers generally enter into PCS arrangements when they purchase these tangible products. Relative selling price for the maintenance and support obligations for tangible products is based upon the ESP. | |||||||||||||||||
Shipping Costs | |||||||||||||||||
Outbound shipping and handling costs are included in cost of revenues, in the accompanying consolidated statements of operations and comprehensive loss. | |||||||||||||||||
Inventories | |||||||||||||||||
Inventories consist of finished goods and are stated at the lower of cost (first-in, first-out method) or market, net of reserve for obsolete inventory. We maintain a small warranty stock however; substantially all inventories at period end are related to actual or planned customer orders. The reserve for obsolescence at December 31, 2013, 2012 and 2011, was $0.2 million, $0.3 million, and $0.2 million respectively. | |||||||||||||||||
Our costs of sales also include overhead costs, including capitalized inventory costs, deferred contract costs, and other direct and allocated support costs related to equipment and installation when sold. | |||||||||||||||||
Inventory shipped to customers is generally covered under a twelve month warranty and returns have historically been nominal. | |||||||||||||||||
Long-lived Assets, Goodwill and Intangible Assets | |||||||||||||||||
Property and Equipment | |||||||||||||||||
Property and equipment are stated at cost and depreciated over their respective estimated useful lives of two to five years, using the straight-line method. Maintenance and repairs are charged to expense when incurred. | |||||||||||||||||
When events or changes in circumstances indicate that the carrying amount of our property and equipment might not be recoverable, the expected future undiscounted cash flows from the assets are estimated and compared with the carrying amount of the assets. If the sum of the estimated undiscounted cash flows is less than the carrying amount of the assets, an impairment loss is recorded. The impairment loss is measured by comparing the fair value of the assets with their carrying amounts. Fair value is generally determined based on discounted cash flows or appraised values, as appropriate. We did not record any impairment losses related to our property and equipment during 2013, 2012, and 2011. | |||||||||||||||||
Intangible Assets | |||||||||||||||||
Our intangible assets are primarily comprised of the intangible assets that we acquired in the Airwide Acquisition. Specifically, we recognized intangible assets for (i) contractual backlog; (ii) customer relationships; and (iii) technology. At December 31, 2011, the contractual backlog intangible assets were fully amortized. | |||||||||||||||||
The intangible asset related to customer relationships is amortized over six years using a method that reflects an appropriate allocation of the costs of these intangible assets to earnings in proportion to the amount of economic benefits obtained in each reporting period. The intangible asset related to technology is amortized on a straight-line basis with estimated useful lives of six years from the date of the Airwide Acquisition. | |||||||||||||||||
Intangible assets are tested for impairment whenever events or circumstances indicate that the carrying amount of an asset may not be recoverable. An impairment loss would be recognized when the carrying amount of the asset exceeds the estimated undiscounted future cash flows expected to result from the use of the asset and its eventual disposition. The impairment loss to be recorded would be the excess of the asset’s carrying value over its fair value. Fair value is generally determined using a discounted cash flow analysis or other valuation technique. We have not recorded any impairment charges to our intangible assets through December 31, 2013. | |||||||||||||||||
Goodwill | |||||||||||||||||
Goodwill represents the excess of the purchase price over the fair value of the identifiable net assets acquired. Goodwill and other intangible assets with indefinite lives are not amortized to operations, but instead are reviewed for impairment at least annually, or when there is an indicator of impairment. We have no intangible assets with indefinite useful lives, other than goodwill. | |||||||||||||||||
The goodwill impairment test is a two-step test. Under the first step, the fair value of the reporting unit is compared with its carrying value (including goodwill). If the fair value of the reporting unit is less than its carrying value, an indication of goodwill impairment exists for the reporting unit and the entity must perform step two of the impairment test (measurement). Under step two, an impairment loss is recognized for any excess of the carrying amount of the reporting unit’s goodwill over the implied fair value of that goodwill. The implied fair value of goodwill is determined by allocating the fair value of the reporting unit in a manner similar to a purchase price allocation and the residual fair value after this allocation is the implied fair value of the reporting unit goodwill. Fair value of the reporting unit is determined using a discounted cash flow analysis. If the fair value of the reporting unit exceeds its carrying value, step two does not need to be performed. An impairment loss is recognized to the extent that the carrying amount of goodwill exceeds its implied fair value. | |||||||||||||||||
We determine fair value using widely accepted valuation techniques, including discounted cash flows and market multiple analyses. These types of analyses contain uncertainties because they require management to make assumptions and to apply judgment to estimate industry economic factors and the profitability of future business strategies. It is our policy to conduct impairment testing based on our current business strategy in light of present industry and economic conditions, as well as our future expectations. | |||||||||||||||||
Our valuation methodology for assessing impairment requires management to make judgments and assumptions based on historical experience and projections of future operating performance. If these assumptions differ materially from future results, we may record impairment charges in the future. | |||||||||||||||||
In connection with our annual goodwill impairment test, we have not recorded any impairment of such assets through December 31, 2013. | |||||||||||||||||
Income Taxes | |||||||||||||||||
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities related to a change in tax rates is recognized in operations in the period that includes the enactment date. | |||||||||||||||||
We provide a valuation allowance for our deferred tax assets when it is more likely than not that our deferred tax assets will not be realized, based on expectations of generating future taxable income. Due to our historical losses, the net deferred tax assets have been fully reserved with the establishment of a valuation allowance. | |||||||||||||||||
We recognize the effect of an income tax position only if it is more likely than not (a likelihood of greater than 50%) that such position will be sustained upon examination by the relevant taxing authorities. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. We recognized an uncertain tax positions liability of $3.1 million as of December 31, 2013, 2012 and 2011, as a result of related party foreign transactions. We recognize both interest and penalties related to uncertain tax positions as part of the income tax provision. Based on the nature of foreign transactions, we do not believe there are any material interest and penalties due. | |||||||||||||||||
Fair Value Measurements | |||||||||||||||||
We account for financial instruments in accordance with FASB ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), which provides a framework for measuring fair value and expands required disclosure about fair value measurements of assets and liabilities. ASC 820 defines fair value 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. ASC 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: | |||||||||||||||||
Level 1 — Quoted prices in active markets for identical assets or liabilities. | |||||||||||||||||
Level 2 — Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable. | |||||||||||||||||
Level 3 — Unobservable inputs that are supported by little or no market activity, therefore requiring an entity to develop its own assumptions about the assumptions that market participants would use in pricing. | |||||||||||||||||
Our financial instruments consist primarily of cash and cash equivalents, billed and unbilled accounts receivable, accounts payable and debt. The carrying amounts of financial instruments, other than the debt instruments, are representative of their fair values due to their short maturities. We have elected not to carry our debt instruments at fair value. | |||||||||||||||||
The carrying amounts and fair values of our long-term borrowings at December 31, 2013 and December 31, 2012 are as follows (in thousands): | |||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||
Carrying | Fair Value | Carrying | Fair Value | ||||||||||||||
Amount | Amount | ||||||||||||||||
Silicon Valley Bank senior loan | $ | — | $ | — | $ | 10,000 | $ | 10,000 | |||||||||
Silicon Valley Bank subordinated loan | 10,000 | 10,900 | 5,000 | 5,000 | |||||||||||||
Silver Lake subordinated loan | 15,000 | 17,600 | — | — | |||||||||||||
Long-term debt | $ | 25,000 | $ | 28,500 | $ | 15,000 | $ | 15,000 | |||||||||
The fair value of our long-term debt was estimated based on discounting the remaining principal payments using current market rates for similar debt and consideration of credit and default risk (Level 3) at December 31, 2013 and 2012. | |||||||||||||||||
We do not have any other financial or non-financial assets or liabilities that would be characterized as Level 2 or Level 3 instruments. | |||||||||||||||||
Concentration of Credit Risk | |||||||||||||||||
Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash and cash equivalents. We maintain cash and cash equivalent balances in the USA, Australia, Canada, China, Croatia, Finland, India, Malaysia, Singapore, Spain and the UK. The balances in the USA are FDIC insured. We maintain cash deposits with financial institutions with balances that often exceed federally insured amounts. We have experienced no losses related to these deposits. | |||||||||||||||||
Foreign Currency Translation | |||||||||||||||||
The functional currency for each of our foreign subsidiaries is the applicable local currency. Assets and liabilities of the foreign subsidiary are translated to U.S. dollars at year-end exchange rates. Income and expense items are translated at the rates of exchange prevailing during the period. We had $1.9 million of net transaction losses for 2013, $0.5 million of net transaction gains for 2012 and $1.2 million of net transaction losses for 2011. Currency translation adjustments are recorded as a component of other comprehensive income (loss). | |||||||||||||||||
Net Income /(Loss) Per Common Share | |||||||||||||||||
Basic net income/(loss) per common share is computed by dividing the net income/(loss) available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted net income per common share is computed by dividing the net income available to common shareholders by the weighted average number of common shares outstanding and potentially dilutive securities outstanding during the period. Potentially dilutive securities include stock options, warrants, and convertible preferred stock during the period, using the treasury stock method. Potentially dilutive securities are excluded from the computations of diluted earnings per share if their effect would be anti-dilutive. Note 9 provides additional information regarding loss per common share. | |||||||||||||||||
Research, Development and Engineering Costs | |||||||||||||||||
Costs related to research, design and development of service infrastructure technology are charged to research and development expense as incurred. Financial accounting standards provide for the capitalization of certain software development costs once technological feasibility has been established and for the evaluation of the recoverability of any capitalized costs on a periodic basis. Our software products have historically reached technological feasibility late in the developmental process, and developmental costs incurred after technological feasibility and prior to product release have been insignificant to date. Accordingly, no development costs have been capitalized to date and all research and product development expenditures have been expensed as incurred. | |||||||||||||||||
Restructuring Charges | |||||||||||||||||
Restructuring charges consist primarily of severance and benefits costs resulting from strategic management decisions to consolidate operations supporting our business during 2011 following the acquisition of Airwide described in Note 2. Restructuring charges represent costs related to the realignment and restructuring of our business operations. These charges include expenses incurred in connection with strategic planning, certain cost reduction programs and acquisition integrations that we have implemented and consist of the cost of involuntary termination benefits, facilities charges, asset write-offs and other costs of exiting activities or geographies. | |||||||||||||||||
The charges for involuntary termination costs and associated expenses often require the use of estimates, primarily related to the number of employees to be paid severance and the amounts to be paid, largely based on years of service and statutory requirements. Assumptions to estimate facility exit costs include the ability to secure sublease income largely based on market conditions, the likelihood and amounts of a negotiated settlement for contractual lease obligations and other exit costs. Other estimates for restructuring charges consist of the realizable value of assets including associated disposal costs and termination fees with third parties for other contractual commitments. | |||||||||||||||||
Restructuring charges incurred and paid during 2011 totaled $0.5 million, which is included in general and administration in the Consolidated Statements of Operations and Comprehensive Loss. | |||||||||||||||||
Stock-based Compensation | |||||||||||||||||
Stock-based compensation represents the cost related to stock-based awards granted to employees. We measure stock-based compensation cost at the grant date, based on the estimated fair value of the award and recognizes the cost as an expense on a straight-line basis over the employee requisite service period. We estimate the fair value of stock options without market-based performance conditions using the Black-Scholes valuation model with the following weighted average assumptions: | |||||||||||||||||
• | Risk-free interest rate — U.S. Federal Reserve treasury constant maturities rate consistent vesting period; | ||||||||||||||||
• | Expected dividend yield — measured as the average annualized dividend estimated to be paid over the expected life of the award as a percentage of the share price at the grant date; | ||||||||||||||||
• | Expected term — the average of the vesting period and the expiration period from the date of issue of the award; and | ||||||||||||||||
• | Weighted average expected volatility — measured using historical volatility of similar public entities for which share or option price information is available. | ||||||||||||||||
The following table presents our stock-based compensation expense resulting from stock options that we recorded in our Consolidated Statement of Operations and Comprehensive Loss for 2013, 2012 and 2011 (in thousands): | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Cost of revenues | $ | 187 | $ | — | $ | — | |||||||||||
Research and development | 321 | — | — | ||||||||||||||
Sales and marketing | 482 | — | — | ||||||||||||||
General and administrative | 640 | 291 | 138 | ||||||||||||||
Total | $ | 1,630 | $ | 291 | $ | 138 | |||||||||||
Advertising Costs | |||||||||||||||||
Advertising costs are expensed as incurred or the first time the advertising takes place, applied consistently based on the nature of the advertising activity. Advertising expenses for 2013, 2012, and 2011, were $0.8 million, $0.7 million, and $0.3 million, respectively. | |||||||||||||||||
Use of Estimates | |||||||||||||||||
The preparation of our consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities, and the reported amounts of revenues and expenses. Actual results could differ from those estimates. | |||||||||||||||||
Recent Accounting Pronouncements | |||||||||||||||||
In July 2012, the FASB issued Accounting Standards Update (“ASU”) 2012-02, Intangibles-Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment, allowing entities the option to first assess qualitative factors to determine whether it is necessary to perform the quantitative impairment test. If the qualitative assessment indicates it is more-likely-than-not that the fair value of an indefinite-lived intangible asset is less than its carrying amount, the quantitative impairment test is required. Otherwise, no testing is required. This ASU was effective for us in the period beginning January 1, 2013. The adoption of this guidance did not affect our financial position, results of operations or cash flows. | |||||||||||||||||
In February 2013, the FASB issued ASU 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income (“ASU 2013-02”). ASU 2013-02 requires registrants to provide information about the amounts reclassified out of AOCI by component. In addition, an entity is required to present significant amounts reclassified out of AOCI by the respective line items of net income. ASU 2013-02 was effective for fiscal years, and interim periods within those years, beginning after December 15, 2012. As the new standard does not change the current requirements for reporting net income or other comprehensive income in the financial statements, our financial position, results of operations or cash flows were not impacted. | |||||||||||||||||
In July 2013, the FASB issued ASU 2013-11, Presentation of an Unrecognized Tax Benefit when a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (“ASU 2013-11”). We are electing to early adopt the provisions of ASU 2013-11. Unrecognized tax benefits will be presented as a reduction of the deferred tax asset for net operating losses and similar tax loss or tax credit carryforwards in lieu of a liability when (1) the uncertain tax position would reduce the NOL or other carryforward under the tax law of the applicable jurisdiction, and (2) we intend to use the deferred tax asset for that purpose. The change in accounting principle will not have an impact to continuing operations in current or prior periods. All unrecognized tax benefits are subjected to a valuation allowance in the applicable filing jurisdiction and thus a corresponding write-down to the valuation allowance results in no impact to income tax expense. |
Business_Combination
Business Combination | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Business Combinations [Abstract] | ' | ||||||||
Business Combination | ' | ||||||||
3. Business Combination | |||||||||
On May 27, 2011, we acquired all of the outstanding capital stock of Airwide Solutions, Inc. for $16.9 million. The Airwide Acquisition was funded with a portion of the proceeds from the issuance of Series E preferred stock. Prior to the acquisition, Airwide was a provider of messaging and content delivery software to mobile operators with revenues and expenses mainly being generated in EMEA (Europe, Middle East and Africa), APAC (Asia-Pacific) and Canada. This acquisition marked our initial entry into the countries in which Airwide operates in and provided us with additional global presence and access to additional customers. | |||||||||
The Airwide Acquisition was accounted for under the acquisition method of accounting. The assets acquired and the liabilities assumed by us were recognized at their fair values at the acquisition date. We recorded goodwill of $0.9 million, which is attributable to expected growth and cost synergies resulting from the acquisition. The goodwill is not deductible for income tax purposes. We incurred approximately $0.7 million of acquisition-related costs, all of which were expensed and included in general and administrative expenses on the consolidated statements of operations and comprehensive loss. | |||||||||
The allocation of the total purchase price of Airwide’s net tangible and identifiable intangible assets was based upon the estimated fair value of those assets as of May 27, 2011. The following table presents the allocation of the total purchase price to the assets acquired and liabilities assumed at the date of the acquisition (in thousands): | |||||||||
May 27, 2011 | |||||||||
Cash and cash equivalent | $ | 2,404 | |||||||
Accounts receivables | 8,112 | ||||||||
Unbilled revenue | 6,624 | ||||||||
Other current assets | 2,612 | ||||||||
Property and equipment | 441 | ||||||||
Intangibles | 7,322 | ||||||||
Goodwill | 941 | ||||||||
Accounts payable | (2,901 | ) | |||||||
Deferred revenue | (2,427 | ) | |||||||
Accrued expense and other current liabilities | (4,198 | ) | |||||||
Uncertain tax position liabilities | (2,029 | ) | |||||||
Total | $ | 16,901 | |||||||
As part of the purchase price allocation, we determined that the identifiable intangible assets were contractual backlog, customer relationship and technology. Backlog consists of existing contracts. We valued contractual backlog and customer relationships using the excess earnings method. We applied the relief-from-royalty method to estimate the fair value of technology. These intangible assets are amortized with estimated useful lives ranging from seven months to six years from the date of acquisition over a method that reflects an appropriate allocation of the costs of these intangible assets to earnings in proportion to the amount of economic benefits obtained in each reporting period. | |||||||||
Acquired intangible assets (in thousands) | Fair Value | Weighted Average | |||||||
Useful Life | |||||||||
(in months) | |||||||||
Contractual backlog | $ | 1,411 | 7 | ||||||
Customer relationship | 5,120 | 72 | |||||||
Technology | 791 | 72 | |||||||
Total | $ | 7,322 | |||||||
Below are our selected unaudited pro forma results of for the year ended December 31, 2011 as if the acquisition occurred as of January 1, 2011. These results are not intended to reflect the actual operations had the acquisition occurred at January 1, 2011. | |||||||||
2011 | |||||||||
Revenues | $ | 66,831 | |||||||
Net loss | $ | (26,716 | ) | ||||||
Basic and diluted loss per common share | $ | (23.11 | ) | ||||||
The amounts of revenue and earnings of Airwide included in the our consolidated statement of operations and Comprehensive Loss from the acquisition date of May 27, 2011 to the period ending December 31, 2011 are as follows (in thousands): | |||||||||
2011 | |||||||||
Revenues | $ | 22,369 | |||||||
Net loss | $ | (7,369 | ) |
Property_and_Equipment
Property and Equipment | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Property Plant And Equipment [Abstract] | ' | ||||||||||
Property and Equipment | ' | ||||||||||
4. Property and Equipment | |||||||||||
The following table presents the detail of property and equipment for the periods presented (in thousands): | |||||||||||
Estimated | December 31, | ||||||||||
Useful Life | 2013 | 2012 | |||||||||
Computer software | 3 years | $ | 5,046 | $ | 4,540 | ||||||
Computer and lab equipment | 3 years | 8,917 | 7,770 | ||||||||
Other equipment | 2-5 years | 1,468 | 1,578 | ||||||||
Property and equipment, gross | 15,431 | 13,888 | |||||||||
Less: accumulated depreciation | (10,377 | ) | (7,969 | ) | |||||||
Property and equipment, net | $ | 5,054 | $ | 5,919 | |||||||
Property and equipment depreciation expense totaled $2.5 million, $1.5 million, and $0.9 million, for the years ended December 31, 2013, 2012, and 2011. |
Intangible_Assets_and_Goodwill
Intangible Assets and Goodwill | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||
Intangible Assets and Goodwill | ' | ||||||||||||||||
5. Intangible Assets and Goodwill | |||||||||||||||||
Intangible assets primarily include the intangible assets that we acquired in the Airwide Acquisition (see Note 2 to the consolidated financial statements for further information). The intangible assets are being amortized on a straight-line basis. The amortization methods reflect an appropriate allocation of the costs of these intangible assets to earnings in proportion to the amount of economic benefits obtained in the reporting period. | |||||||||||||||||
Intangible assets as of December 31, 2013 are as follows (in thousands): | |||||||||||||||||
Description | Weighted Average | Gross Carrying | Accumulated | Net Carrying Amount | |||||||||||||
Amortization period | Amount | Amortization | as of | ||||||||||||||
(in months) | 31-Dec-13 | ||||||||||||||||
Contractual backlog | 7 | $ | 1,382 | $ | 1,382 | $ | — | ||||||||||
Customer relationships | 72 | 4,897 | 2,108 | 2,789 | |||||||||||||
Technology | 72 | 799 | 344 | 455 | |||||||||||||
Certification and licenses | 36 | 2,957 | 999 | 1,958 | |||||||||||||
Total | $ | 10,035 | $ | 4,833 | $ | 5,202 | |||||||||||
Intangible assets as of December 31, 2012 are as follows (in thousands): | |||||||||||||||||
Description | Weighted Average | Gross Carrying | Accumulated | Net Carrying Amount | |||||||||||||
Amortization period | Amount | Amortization | as of | ||||||||||||||
(in months) | December 31, 2012 | ||||||||||||||||
Contractual backlog | 7 | $ | 1,462 | $ | 1,462 | $ | — | ||||||||||
Customer relationships | 72 | 5,280 | 1,568 | 3,712 | |||||||||||||
Technology | 72 | 825 | 249 | 576 | |||||||||||||
Certification and licenses | 36 | 1,833 | 407 | 1,426 | |||||||||||||
Total | $ | 9,400 | $ | 3,686 | $ | 5,714 | |||||||||||
Total amortization expense for the years ended December 31, 2013, 2012, and 2011, was $1.5 million, $2.5 million, and $2.0 million, respectively of which $0.6 million, $0, and $1.4 million, respectively, was included in cost of revenues related to software products and $0.9 million, $2.5 million, and $0.6 million, respectively, was included in operating expenses on the consolidated statements of operations and comprehensive loss. The following table presents the expected amortization expense for each of the next five years ending December 31 for those intangible assets with remaining carrying values as of December 31, 2013 (in thousands): | |||||||||||||||||
Years Ending December 31, | Amortization of | ||||||||||||||||
Intangible Assets | |||||||||||||||||
2014 | $ | 1,883 | |||||||||||||||
2015 | 1,539 | ||||||||||||||||
2016 | 1,385 | ||||||||||||||||
2017 | 395 | ||||||||||||||||
2018 | — | ||||||||||||||||
Total | $ | 5,202 | |||||||||||||||
A summary of changes in our carrying value of goodwill is as follows (in thousands): | |||||||||||||||||
Year ended December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Balance, beginning of period | $ | 923 | $ | 901 | |||||||||||||
Foreign currency exchange translation | (57 | ) | 22 | ||||||||||||||
Balance, end of period | $ | 866 | $ | 923 | |||||||||||||
Accrued_Liabilities
Accrued Liabilities | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Payables And Accruals [Abstract] | ' | ||||||||
Accrued Liabilities | ' | ||||||||
6. Accrued Liabilities | |||||||||
The following table presents the detail of accrued liabilities for the period ends presented (in thousands): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Accrued payroll | $ | 7,221 | $ | 4,323 | |||||
Accrued expenses on contracts | 1,446 | 1,996 | |||||||
Accrued professional fees | 136 | 997 | |||||||
Other | 3,136 | 3,698 | |||||||
Total accrued liabilities | $ | 11,939 | $ | 11,014 | |||||
Longterm_Debt
Long-term Debt | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Long-term Debt | ' | ||||||||
7. Long-term Debt | |||||||||
The following table presents the detail of long-term debt for the period ends presented (in thousands): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Silicon Valley Bank senior loan | $ | — | $ | 10,000 | |||||
Silicon Valley Bank subordinated loan | 10,000 | 5,000 | |||||||
Silver Lake subordinated loan | 15,000 | — | |||||||
Discount related to issuance of warrants | (1,577 | ) | (300 | ) | |||||
Long-term debt | $ | 23,423 | $ | 14,700 | |||||
We had $25.0 million and $15.0 million gross debt before discount of $1.6 million and $0.3 million, outstanding under our revolving credit facility and senior and subordinated loans as of December 31, 2013 and 2012, respectively. | |||||||||
Silicon Valley Bank Subordinated and Senior Loans | |||||||||
On October 18, 2012, we entered into loan agreements with Silicon Valley Bank. Under the agreements, we obtained two loans totaling $32.5 million (the “SVB Loans”). In February 2013, we amended the SVB Loans (the “Amendment”) to join certain of our subsidiaries, including our non-U.S. subsidiaries, as co-borrowers. We also amended our minimum tangible net worth covenant. The term loan and LOC with Comerica Bank were repaid on October 19, 2012 with the partial proceeds of the loans from Silicon Valley Bank. The SVB Loans include a $22.5 million Senior Loan secured by substantially all of our assets, including intellectual property. The Senior Loan has a three-year term at a floating rate of 1% above the U.S. prime rate, subject to a minimum interest rate of 4.25%. Under the terms of the agreement, we can draw up to 80% of eligible trade receivables up to $15.0 million, with the remaining $7.5 million generally available for working capital and cash management purposes. We also obtained a $10.0 million Subordinated Loan, also secured by substantially all of our assets, including intellectual property, which has a three-year term at a fixed rate of 11%. Both loans require the payment of interest only on the outstanding balance through the term of the loan, with all principal payable in October 2015. Both loans may be prepaid at any time without penalty. | |||||||||
In connection with the SVB Loans, we issued warrants to purchase a total of 128,570 shares of our common stock at a price of $5.11 per share. In accordance with the guidance to account for debt issued with a warrant, we allocated the total proceeds between the loans and the warrant based on the relative fair value of the two instruments. Out of the total proceeds of $15.0 million, we allocated approximately $14.7 million to the loans and approximately $0.3 million to the warrant based on their relative fair values. The fair value of the common stock warrant was recorded to Additional paid-in-capital (“APIC”), with a reduction to the loans as a debt discount. See Note 11 for further discussion of the valuation methodology and assumptions. The discount on the debt is being amortized over the terms of the loans and the amortization charge recorded as interest expense in the consolidated statements of operations and comprehensive loss. The unamortized discount on the SVB Loans debt is $0.2 million at December 31, 2013. Total unamortized deferred financing costs related to the SVB Loans were $0.3 million as of December 31, 2013. | |||||||||
The Silicon Valley Bank loan agreements contain certain restrictive covenants, and the Senior Loan requires us to maintain a minimum tangible net worth at all times. At December 31, 2013, we were in technical default under certain of our covenants limiting intercompany investments. We sought and obtained a waiver for these breaches. The agreements also contain usual and customary events of default, the occurrence of which may result in all outstanding amounts under the loan agreements becoming due and payable immediately, and they also impose an interest penalty of an additional 5% above the otherwise applicable interest rate at any time when an event of default is continuing. | |||||||||
Silver Lake Waterman Growth Capital Loan | |||||||||
On June 4, 2013, we entered into a growth capital loan agreement with Silver Lake Waterman Fund, L.P. (“Silver Lake Loan”), for a $15.0 million subordinated term loan. The Silver Lake Loan is subordinated to our senior and subordinated loans with Silicon Valley Bank described above, and is secured by substantially all of our assets. The Silver Lake Loan matures on June 30, 2017 and bears interest at 12% annually. Interest on the loan is payable monthly, with the principal amount due and payable on the loan’s maturity on June 30, 2017. The subordinated term loan includes a prepayment penalty of 5% for prepayment in the first year, 4% in the second year, 3% in the third year and 2% thereafter, except that if we choose to repay this subordinated term loan with the proceeds of our initial public offering the prepayment penalty will not apply. | |||||||||
The subordinated term loan agreement with Silver Lake Waterman Fund contains restrictive covenants. One such covenant provides that we must use substantially all of the proceeds of the loan for our United States operations and may not use them for non-U.S. operations. Other covenants limit our ability to, among other things, incur liens on our assets, pay dividends, make investments or engage in acquisitions, and prevent dissolution, liquidation, merger or a sale of our assets outside of the ordinary course of business without the prior consent of the lender. The agreement also contains customary events of default, the occurrence of which may result in all outstanding amounts under the loan agreements becoming due and payable immediately, and they also impose an interest penalty of an additional 5% above the otherwise applicable interest rate at any time when an event of default is continuing. At December 31, 2013, we were in technical default under certain of covenants limiting intercompany investments. We sought and obtained a waiver for these breaches. | |||||||||
In connection with the Silver Lake Loan, we issued warrants to purchase a total of 194,694 shares of our common stock at an exercise price of $0.007 per share. In accordance with the guidance to account for debt issued with a warrant, we allocated total proceeds between the loan and the warrant based on the relative fair value of the two instruments. Out of the total proceeds of $15.0 million, we allocated approximately $13.4 million to the loan and $1.6 million to the warrant based on their relative fair values. The fair value of the common stock warrant was recorded to APIC, with a reduction to the loan as a debt discount. The discount on the debt is being amortized over the term of the loan and the amortization charge recorded as interest expense in the consolidated statements of operations and comprehensive loss. For the year ended December 31, 2013, we recorded $0.4 million of amortization into interest expense related to these warrants and the unamortized discount on the debt is $1.4 million at December 31, 2013. Total unamortized deferred financing costs related to the Silver Lake Loan were $0.2 million as of December 31, 2013. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Commitments And Contingencies Disclosure [Abstract] | ' | ||||
Commitments and Contingencies | ' | ||||
8. Commitments and Contingencies | |||||
Lease Commitments | |||||
We lease office space and equipment under operating leases expiring in various years through 2018 or later. Rent expense for the years ended December 31, 2013, 2012, and 2011 was $2.1 million, $2.4 million, and $2.2 million, respectively. | |||||
Future minimum lease payments under the non-cancelable operating leases as of December 31, 2013 are as follows (in thousands): | |||||
Years ending December 31, | |||||
2014 | $ | 1,865 | |||
2015 | 1,751 | ||||
2016 | 1,271 | ||||
2017 | 997 | ||||
2018 and thereafter | 792 | ||||
Total | $ | 6,676 | |||
Future minimum sublease rentals to be received under non-cancelable operating leases as of December 31, 2013 are $0.8 million. | |||||
Legal Proceedings | |||||
From time to time, we, our customers and our competitors are subject to various litigation and claims arising in the ordinary course of business. The software and communications infrastructure industries are characterized by frequent litigation and claims, including claims regarding patent and other intellectual property rights, claims for damages or indemnification for alleged breach under commercial supply or service contracts and claims regarding alleged improper hiring practices. From time to time we may be involved in various additional legal proceedings or claims. | |||||
We were one of 16 remaining defendants in Eon Corp. IP Holdings, LLC v. Sensus USA, Inc. et al. The plaintiff Eon Corp. IP Holdings, LLC, or Eon, a non-operating entity, alleges that each of the defendants has infringed, and continues to infringe, Eon’s U.S. Patent No. 5,592,491. The suit was originally filed in October 2010 in the United States District Court for the Eastern District of Texas. In January 2012, the court granted defendants’ motion to transfer the suit to the United States District Court for the Northern District of California. In June 2013, we entered into a settlement agreement with Eon. This had no material impact on our consolidated financial statements. In July 2013, the court dismissed all claims against us. | |||||
We are not aware of any pending or threatened legal proceeding against us that could have a material adverse effect on our business, operating results or financial condition. |
Loss_per_Common_Share_Applicab
Loss per Common Share Applicable to Common Shareholders | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Loss per Common Share Applicable to Common Shareholders | ' | ||||||||||||
9. Loss per Common Share Applicable to Common Shareholders | |||||||||||||
We calculate basic net (loss) per share by dividing net (loss) attributable for the period by the weighted average number of shares of common stock outstanding during the period. Diluted net (loss) per share is computed giving effect to all potential weighted average diluted common stock, including options and warrants, using the treasury stock method. | |||||||||||||
The computation of basic and diluted net (loss) per share is as follows (in thousands, except per share amounts): | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Net loss | $ | (15,290 | ) | $ | (15,569 | ) | $ | (21,758 | ) | ||||
Basic common shares: | |||||||||||||
Weighted average number of shares outstanding | 4,278,060 | 1,287,986 | 1,155,980 | ||||||||||
Diluted common shares: | |||||||||||||
Weighted average shares used to compute diluted net loss per share | 4,278,060 | 1,287,986 | 1,155,980 | ||||||||||
Net loss per share attributable to common stockholders: | |||||||||||||
Basic and diluted | $ | (3.57 | ) | $ | (12.09 | ) | $ | (18.82 | ) | ||||
The convertible preferred stock numbers shown in the table below are on a common stock equivalent basis as a result of the reverse stock split described in Note 1, Description of the Business and Basis of Presentation. | |||||||||||||
The following weighted-average common stock equivalents were excluded from the calculation of diluted net (loss) per share because their effect would have been anti-dilutive for the periods presented due to the net loss for all periods presented: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Convertible preferred stock | — | 16,452,467 | 16,452,467 | ||||||||||
Stock options | 1,532,224 | 1,473,632 | 965,595 | ||||||||||
Warrants | 1,232,776 | — | — |
Redeemable_Convertible_Preferr
Redeemable Convertible Preferred Stock | 12 Months Ended |
Dec. 31, 2013 | |
Equity [Abstract] | ' |
Redeemable Convertible Preferred Stock | ' |
10. Redeemable Convertible Preferred Stock | |
In 2005, we issued $2.5 million of convertible promissory notes that were convertible into our Series A Redeemable Convertible Preferred Stock (the “Series A Preferred Stock”). The notes accrued interest at an annual rate of 7%, which interest was also convertible into Series A Preferred Stock. In April 2006, all of the outstanding principal and interest under the notes (approximately $2.6 million) were converted at $2.80875 per share into 928,893 shares of Series A Preferred Stock. Additionally in conjunction with the conversion of the notes, we sold 2,805,072 shares of Series A Preferred Stock at a price of $3.745 per share for $10.5 million in cash (which excludes the principal and interest due under the notes discussed above). | |
In 2007, we issued 3,818,210 shares of Series B Redeemable Convertible Preferred Stock at $5.369 per share for $20.5 million in cash, which was used for general corporate purposes. | |
In October 2008, we issued 2,616,704 shares of Series C Redeemable Convertible Preferred Stock at $6.6794 per share for $17.5 million in cash, which was used for general corporate purposes. | |
In June 2010, we issued 1,728,569 shares of Series D Redeemable Convertible Preferred Stock at $7.8533 per share for $13.6 million in cash, which was used for general corporate purposes. | |
In May and July 2011, we issued an aggregate of 4,555,021 shares of Series E Redeemable Convertible Preferred Stock at $8.7815 per share for $40.0 million in cash, which was used for the Airwide Acquisition and restructuring and for general corporate purposes. | |
Holders of the Series A Preferred Stock, Series B Preferred Stock, Series C Preferred Stock, Series D Preferred Stock and Series E Preferred Stock are entitled to receive dividends at a rate of $0.2996, $0.4298, $0.5341, $0.6286 and $0.7028 per share per annum, respectively, for each share of Series A Preferred Stock, Series B Preferred Stock, Series C Preferred Stock, Series D Preferred Stock and Series E Preferred Stock, as and if declared by the Board of Directors, prior to and in preference to any declaration or payment of any dividend on our common stock. As of December 31, 2013 and 2012, we had declared no dividends on either our common stock or Preferred Stock. The dividends on the Preferred Stocks are not cumulative. Each holder of each outstanding share of each series of Preferred Stock is entitled to the number of votes equal to the number of shares of common stock into which the shares of Preferred Stock are convertible. Except as provided by provisions establishing any other series of Preferred Stock and except in certain other limited circumstances, holders of Series A Preferred Stock, Series B Preferred Stock, Series C Preferred Stock, Series D Preferred Stock and Series E Preferred Stock shall vote together with the holders of Common Stock as a single class on all action to be taken by our stockholders, including, but not limited to actions necessary to amend the certificate of incorporation to increase the number of authorized shares of Common Stock. | |
Upon the occurrence of a liquidation, dissolution or winding up of the Company, before any distribution or payment shall be made to the holders of Series A Preferred Stock, Series B Preferred Stock, Series C Preferred Stock, Series D Preferred Stock, Series E Preferred Stock, Common Stock or any other capital stock ranking junior to the Preferred Stock, each holder of Series E Preferred Stock will be entitled to receive an amount equal to $8.7815 per share, as adjusted, plus any declared but unpaid dividends for such shares. Upon completion of the distribution to the holders of the Series E Preferred Stock, before any distribution or payment shall be made to the holders of Common Stock or any other capital stock ranking junior to the Preferred Stock, each holder of Series A Preferred Stock, Series B Preferred Stock, Series C Preferred Stock and Series D Preferred Stock will be entitled to receive an amount equal to $3.745, $5.369, $6.6794 and $7.8533 per share, respectively, as adjusted, plus any declared but unpaid dividends for such shares. After payment of the full liquidation preference to the holders of Series A Preferred Stock, Series B Preferred Stock, Series C Preferred Stock, Series D Preferred Stock and Series E Preferred Stock, the remaining assets and funds of legally available for distribution, if any, shall be distributed ratably among all of the holders of Common Stock, Series A Preferred Stock, Series B Preferred Stock, Series C Preferred Stock, Series D Preferred Stock and Series E Preferred Stock, on an as-converted basis, until such time as the holders of Series A Preferred Stock, Series B Preferred Stock, Series C Preferred Stock, Series D Preferred Stock and Series E Preferred Stock receive an additional $3.745, $5.369, $6.6794, $7.8533 and $17.563 per share, respectively. After payment of the full liquidation preference to the holders of Series A Preferred Stock, Series B Preferred Stock, Series C Preferred Stock, Series D Preferred Stock and Series E Preferred Stock, the remaining assets and funds of the Company legally available for distribution, if any, shall be distributed ratably among all of the holders of Common Stock. Notwithstanding the foregoing, for the purposes of determining the amount each holder of shares of Series A Preferred Stock, Series B Preferred Stock, Series C Preferred Stock, Series D Preferred and Series E Preferred Stock are entitled to receive with respect to a liquidation, dissolution or winding up of the Company, each series of Preferred Stock shall be treated as if all holders of such series had converted such holders’ shares of Preferred Stock into shares of Common Stock immediately prior to such liquidation, dissolution or winding up of the Company if, as a result of an actual conversion of such series of Preferred Stock, holders of such series of Preferred Stock would receive, in the aggregate, an amount greater than the amount that would be distributed to holders of series of Preferred Stock if such holders had not converted such shares of Preferred Stock into shares of Common Stock. | |
The shares of each series of Preferred Stock are convertible into Common Stock at any time at the option of the holder. Additionally, all shares of Preferred Stock are subject to automatic conversion upon the closing of a public offering of our Common Stock in which the aggregate proceeds equal or exceed $50.0 million. All shares of Preferred Stock are also automatically convertible into Common Stock, at the applicable Conversion Rate, upon the written consent or agreement of a majority of (i) the Series A Preferred Stock, Series B Preferred Stock, Series C Preferred Stock, and Series D Preferred Stock, voting together as a single class, and (ii) the Series E Preferred Stock, voting as a separate class. The conversion rate is initially one share of Common Stock for each share of Preferred Stock, subject to adjustment for certain stock issuances and stock splits, reverse stock-splits, stock combinations and the like. | |
Upon receipt of a written request from the holders of a majority of the then outstanding shares of (i) Series E Preferred Stock, voting as a separate series, and (ii) Series A Preferred Stock, Series B Preferred Stock, Series C Preferred Stock and Series D Preferred Stock, voting as a single class, at any time on or after the fourth (4th) anniversary of the date on which the Corporation first issues shares of its Series E Preferred Stock (that is, May 26, 2011) we shall redeem all, but not less than all, of the shares of Preferred Stock then outstanding in three equal annual installments beginning on a date not more than forty-five (45) days after the receipt of the redemption request. The redemption prices for the Series A Preferred Stock, Series B Preferred Stock, Series C Preferred Stock, Series D Preferred Stock and Series E Preferred Stock are equal to $3.745, $5.369, $6.6794, $7.8533 and $8.7815 per share, respectively, plus declared but unpaid dividends. If the number of shares of Preferred Stock that may then be legally redeemed by us is less than the number of such shares to be redeemed, then all of the shares of Series E Preferred Stock shall be redeemed for the applicable redemption price prior to the redemption of the shares of any other series of Preferred Stock, and then the remaining shares of any other series of Preferred Stock that should have been redeemed, but were not, will be redeemed on a pro rata basis from any additional legally available funds or as soon as the we have legally available funds therefore. | |
We classify conditionally redeemable convertible preferred shares, which includes shares of Preferred Stock subject to redemption upon the occurrence of uncertain events not solely within our control, as temporary equity. Shares of Preferred Stock classified as temporary equity are measured initially at fair value. If such shares are subject to redemption at a higher value that is outside of our control, such shares are accreted to the mandatory redemption value, with such accretion recorded as dividends. As of December 31, 2012, the we have recorded as temporary equity shares of Series A, B, C, D and E Preferred Stock totaling $13.0 million, $20.5 million, $17.5 million, $13.6 million and $40.0 million respectively. Shares of Preferred Stock remain recorded at the issuance date valuation amounts on the balance sheet, as they do not become redeemable automatically, only through the intent of the preferred shareholders, and the preferred shareholders have not shown any plan to redeem the preferred shares. Dividends on shares of Preferred Stock included in temporary equity are recorded as Dividends on Preferred Stock below Net Loss on the Consolidated Statement of Operations and Comprehensive Loss. | |
Upon the closing of the initial public offering, all shares of our then-outstanding redeemable convertible preferred stock automatically converted into an aggregate of 16,452,467 shares of common stock. |
Shareholders_Deficit
Shareholders' Deficit | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||
Shareholders' Deficit | ' | ||||||||||||||||
11. Shareholders’ Deficit | |||||||||||||||||
Initial Public offering | |||||||||||||||||
In November 2013, we closed our initial public offering (our IPO), in which we sold 5,320,292 shares of common stock and certain selling stockholders sold 129,708 shares of common stock at a price to the public of $10.00 per share, before underwriting discounts and commissions. In December 2013, the underwriters partially exercised their option to purchase additional shares and we issued and sold 145,339 additional shares at the same price to the public, before underwriting discounts and commissions. We raised approximately $44.8 million in net proceeds after deducting underwriting discounts and commissions of approximately $3.8 million and other estimated offering expenses of approximately $6.1 million. We did not receive any proceeds from the sale of shares by the selling stockholders in the IPO. | |||||||||||||||||
Common Stock | |||||||||||||||||
In connection with the IPO, we amended and restated our certificate of incorporation increasing the number of authorized shares of common stock from 22,171,986 to 300,000,000. | |||||||||||||||||
Stock Option Plan | |||||||||||||||||
We have two stock option plans: the Amended and Restated 2005 Stock Plan (the “2005 Plan”), and the Amended and Restated 2013 Equity Incentive Plan (the “2013 Plan”). In January 2013, we terminated the 2005 Plan and provided that no further stock awards were to be granted under the 2005 Plan and adopted the 2013 Plan as a continuation of and successor to the 2005 Plan. Upon the IPO, all shares that were reserved under the 2005 Plan but not issued were assumed by the 2013 Plan. All outstanding stock awards under the 2005 Plan continue to be governed by the existing terms. Under the 2013 Plan, we have the ability to issue incentive stock options (“ISOs”), nonstatutory stock options (“NSOs”), stock appreciation rights, restricted stock, restricted stock units (“RSUs”), performance units and/or performance shares. Additionally, the 2013 Plan provides for the grant of performance cash awards to employees, directors and consultants. The ISOs and NSOs will be granted at a price per share not less than the fair value at date of grant. Options granted to date generally vest over a four-year period with 25% vesting at the end of one year and the remaining vest monthly thereafter. Options granted generally are exercisable up to 10 years from the date of grant. | |||||||||||||||||
Awards granted under the 2005 Plan may be immediately exercisable, but not vested, and are subject to a right of repurchase by us (at our option) at the lower of the original exercise price or fair market value for all unvested restricted shares at the termination of service. At December 31, 2013, options that were exercisable amounted to 2,105,784 shares with a weighted average exercise price of $1.53 and weighted average remaining contractual term of 5.7 years and intrinsic value of $17.6 million. At December 31, 2013, there were 1,115,741 common shares available for future grants under the 2013 Plan. | |||||||||||||||||
To determine the weighted average fair value of stock options granted, we used the Black-Scholes option-pricing model with the following weighted average assumptions during the periods presented: | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Expected dividends | 0 | % | 0 | % | 0 | % | |||||||||||
Risk-free interest rate (U.S. Treasury) | 1.8 | % | 1.7 | % | 2.1 | % | |||||||||||
Expected term | 6.3 years | 6.3 years | 6.2 years | ||||||||||||||
Expected volatility | 57.5 | % | 62 | % | 60 | % | |||||||||||
The fair value of all the awards granted is amortized to expense on a straight-line basis over the requisite service periods, which are generally the vesting periods. | |||||||||||||||||
The following tables summarize the stock option activity for the periods presented (in thousands): | |||||||||||||||||
Shares | Weighted | Weighted | Aggregate | ||||||||||||||
Average | Average | Intrinsic | |||||||||||||||
Exercise | Remaining | Value | |||||||||||||||
Price | Contractual | ||||||||||||||||
Term | |||||||||||||||||
Outstanding as of January 1, 2011 | 1,835,314 | $ | 0.56 | ||||||||||||||
Granted | 1,028,923 | $ | 2.01 | ||||||||||||||
Exercised | (90,277 | ) | $ | 0.56 | |||||||||||||
Forfeited or expired | (126,589 | ) | $ | 0.7 | |||||||||||||
Outstanding as of December 31, 2011 | 2,647,371 | $ | 1.12 | 7.8 | $ | 6,343 | |||||||||||
Exercisable as of December 31, 2011 | 2,097,683 | $ | 1.07 | 7.5 | $ | 5,145 | |||||||||||
Shares | Weighted | Weighted | Aggregate | ||||||||||||||
Average | Average | Intrinsic | |||||||||||||||
Exercise | Remaining | Value | |||||||||||||||
Price | Contractual | ||||||||||||||||
Term | |||||||||||||||||
Outstanding as of January 1, 2012 | 2,647,371 | $ | 1.12 | ||||||||||||||
Granted | 487,921 | $ | 4.77 | ||||||||||||||
Exercised | (121,407 | ) | $ | 0.59 | |||||||||||||
Forfeited or expired | (317,090 | ) | $ | 1.14 | |||||||||||||
Outstanding as of December 31, 2012 | 2,696,795 | $ | 1.8 | 7.3 | $ | 16,465 | |||||||||||
Exercisable as of December 31, 2012 | 2,040,742 | $ | 1.16 | 6.6 | $ | 13,789 | |||||||||||
Shares | Weighted | Weighted | Aggregate | ||||||||||||||
Average | Average | Intrinsic | |||||||||||||||
Exercise | Remaining | Value | |||||||||||||||
Price | Contractual | ||||||||||||||||
Term | |||||||||||||||||
Outstanding as of January 1, 2013 | 2,696,795 | $ | 1.8 | ||||||||||||||
Granted | 880,097 | $ | 9.56 | ||||||||||||||
Exercised | (163,356 | ) | $ | 0.56 | |||||||||||||
Forfeited or expired | (126,264 | ) | $ | 3.88 | |||||||||||||
Outstanding as of December 31, 2013 | 3,287,272 | $ | 3.86 | 7.2 | $ | 24,002 | |||||||||||
Exercisable as of December 31, 2013 | 2,105,784 | $ | 1.53 | 5.7 | $ | 17,622 | |||||||||||
We granted stock options with a weighted-average grant date fair value per share during the years ended December 31, 2013, 2012, and 2011 of $5.29, $2.80, and $1.12, respectively. | |||||||||||||||||
The following table summarizes additional information about stock options outstanding at December 31, 2013: | |||||||||||||||||
Exercise Price | Options | Options | Weighted Average | ||||||||||||||
Outstanding | Exercisable | Remaining Contractual Term | |||||||||||||||
(in years) | |||||||||||||||||
$0.07-0.56 | 672,978 | 672,978 | 3.1 | ||||||||||||||
$0.63-0.77 | 485,749 | 458,198 | 6.3 | ||||||||||||||
$2.10 | 891,680 | 795,126 | 7.7 | ||||||||||||||
$5.11-10.00 | 1,124,382 | 179,482 | 9.1 | ||||||||||||||
$10.78 | 112,483 | — | 10 | ||||||||||||||
3,287,272 | 2,105,784 | 7.2 | |||||||||||||||
The total intrinsic value of options exercised during the years ended December 31, 2013, 2012, and 2011, was $1.4 million, $0.5 million and $0.2 million, respectively. We recorded $1.6 million, $0.3 million, and $0.1 million, of non-cash charges for stock compensation related to amortization of the fair value of unvested stock options for the years ended December 31, 2013, 2012, and 2011, respectively. At December 31, 2013, there was $4.0 million of total unrecognized cost related to unvested stock options granted under the stock option plan, which is expected to be recognized over a weighted average period of 2.8 years. | |||||||||||||||||
Warrants | |||||||||||||||||
Communities Foundation of Texas | |||||||||||||||||
On November 1, 2006, we issued a warrant to the Communities Foundation of Texas to purchase 2,857 shares of its common stock at a price of $0.42 per share. The warrant was to expire in November 2011. On September 11, 2012, we reissued the warrant at a price of $5.11 per share. The reissued warrant had a term of five years, and 1,397 shares of common stock were exercised upon the closing of our initial public offering. | |||||||||||||||||
Silicon Valley Bank and Silver Lake Waterman Fund | |||||||||||||||||
In connection with the SVB Loans entered into on October 28, 2012, we issued warrants to Silicon Valley Bank and WestRiver Mezzanine Loans, LLC exercisable for a total of 128,570 shares of common stock at a price of $5.11 per share. After giving effect to the completion of our IPO, the warrants expire in November 2016. We will provide the holders of the warrants with written notice of at least seven business days prior to the closing of a cash/public acquisition. Upon the closing of other than a cash/public acquisition, the acquiring, surviving or successor entity assumes the obligation of the warrants. The fair value of the warrants of $0.3 million was determined using the Black-Scholes pricing model. We used a risk-free interest rate of 1.72%, stock price volatility of 62%, a term of four years and expected dividends of 0%. None of these warrants were exercised for the year ended December 31, 2013. The average remaining life of the Common Stock warrants as of December 31, 2013 was 2.9 years. | |||||||||||||||||
In connection with the Silver Lake Loan, we issued a warrant to purchase a total of 194,694 shares of our common stock at an exercise price of $0.007 per share. After giving effect to the completion of our IPO, the warrant has a term expiring on the earlier of November 5, 2016 or the consummation of an acquisition. The fair value of the warrants of $1.6 million was determined using the Black-Scholes pricing model. We used a risk-free interest rate of 1.99%, stock price volatility of 58%, a term of three years and expected dividends of 0%. None of these warrants were exercised for the year ended December 31, 2013. The average remaining life of the common stock warrants as of December 31, 2013 was 2.9 years. | |||||||||||||||||
Investor and Former Lender | |||||||||||||||||
At December 31, 2013, we had 909,512 warrants outstanding to acquire shares of its common stock at $6.6794 per share. These warrants were originally exercisable for our Series C Redeemable Convertible Preferred and were issued in connection with debt financing and to an investor. The warrants were issued in October 2008 and have a term of seven years. The fair value on the date of issuance of all these warrants was insignificant. None of these warrants were exercised for the year ended December 31, 2013. The average remaining life of these warrants, as of December 31, 2013, was 1.8 years. |
Employee_Benefit_Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2013 | |
Compensation And Retirement Disclosure [Abstract] | ' |
Employee Benefit Plan | ' |
12. Employee Benefit Plan | |
In the United States, we maintain a defined contribution plan consisting of a 401(k) retirement savings plan, which covers substantially all eligible U.S. employees. Participants can, in accordance with Internal Revenue Service (“IRS”) guidelines, set aside both pre- and post-tax savings in this account. In addition to participant’s savings, we have the option of making discretionary matching contributions to plan participant’s accounts; however, no contributions were made to date as of December 31, 2013. Eligible employees can participate in the plan on the first day following their hire date. | |
Our employees in Canada and the United Kingdom have defined contribution plans. The cost of the plans for the years ended December 31, 2013, 2012, and 2011 was $0.6 million, $0.8 million, and $0.5 million respectively, and is included in operating expenses. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Income Taxes | ' | ||||||||||||||||||||||||
13. Income Taxes | |||||||||||||||||||||||||
The following table summarizes the income tax expense (in thousands): | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Current: | |||||||||||||||||||||||||
Federal | $ | — | $ | — | $ | — | |||||||||||||||||||
State | 218 | — | — | ||||||||||||||||||||||
Foreign | 2,328 | 1,152 | 1,330 | ||||||||||||||||||||||
Total current | 2,546 | 1,152 | 1,330 | ||||||||||||||||||||||
Deferred: | |||||||||||||||||||||||||
Federal | — | — | — | ||||||||||||||||||||||
State | <50> | — | — | ||||||||||||||||||||||
Foreign | — | — | — | ||||||||||||||||||||||
Total deferred | — | — | — | ||||||||||||||||||||||
Income tax expense | $ | 2,496 | $ | 1,152 | $ | 1,330 | |||||||||||||||||||
The components of income (loss) before income tax expense consisted of the following (in thousands): | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Domestic | $ | (12,947 | ) | $ | (18,941 | ) | $ | (17,576 | ) | ||||||||||||||||
Foreign | 153 | 4,524 | (2,852 | ) | |||||||||||||||||||||
Total | $ | (12,794 | ) | $ | (14,417 | ) | $ | (20,428 | ) | ||||||||||||||||
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of deferred tax assets and liabilities are as follows (in thousands): | |||||||||||||||||||||||||
As of December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Deferred tax assets | |||||||||||||||||||||||||
Net operating loss carryforwards | $ | 35,918 | $ | 43,196 | |||||||||||||||||||||
Deferred revenue | 2,741 | 1,038 | |||||||||||||||||||||||
Accrued expenses | 1,696 | 1,159 | |||||||||||||||||||||||
Allowance for bad debt | 149 | 102 | |||||||||||||||||||||||
Start-up costs | 1,057 | 1,239 | |||||||||||||||||||||||
Depreciation of property and equipment | 30 | — | |||||||||||||||||||||||
Unrealized gain/loss on foreign currency translations | 411 | 165 | |||||||||||||||||||||||
Research and development credit | 2,010 | 833 | |||||||||||||||||||||||
Inventories | 1,032 | 105 | |||||||||||||||||||||||
Other | 115 | 211 | |||||||||||||||||||||||
Total deferred tax assets | 45,159 | 48,048 | |||||||||||||||||||||||
Deferred tax liabilities | |||||||||||||||||||||||||
Amortization of intangible assets | (1,472 | ) | (1,178 | ) | |||||||||||||||||||||
Unrealized gain/loss on foreign currency translations | — | — | |||||||||||||||||||||||
Prepaid items | (233 | ) | — | ||||||||||||||||||||||
Other | — | (72 | ) | ||||||||||||||||||||||
Total deferred tax liabilities | (1,705 | ) | (1,250 | ) | |||||||||||||||||||||
Net deferred tax assets | 43,454 | 46,798 | |||||||||||||||||||||||
Valuation allowance | (43,404 | ) | (46,798 | ) | |||||||||||||||||||||
Net deferred tax assets | $ | 50 | $ | — | |||||||||||||||||||||
A reconciliation of the federal statutory income tax rate to the effective income tax rate is as follows (in thousands): | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Amount | Percent | Amount | Percent | Amount | Percent | ||||||||||||||||||||
Computed tax at statutory rates: | $ | (4,478 | ) | 35 | % | $ | (5,046 | ) | 35 | % | $ | (7,150 | ) | 35 | % | ||||||||||
Permanent differences | (122 | ) | 1 | % | 362 | (3.0 | %) | 683 | (3.0 | %) | |||||||||||||||
Difference resulting from state income taxes, net of federal income tax benefits | 128 | (1.0 | %) | (337 | ) | 2 | % | (661 | ) | 3 | % | ||||||||||||||
Change in valuation allowance | (7,453 | ) | 58.3 | % | 4,678 | (32.0 | %) | 8,115 | (40.0 | %) | |||||||||||||||
Effect of tax credits | (1,954 | ) | 15.3 | % | (100 | ) | 1 | % | (1,076 | ) | 5 | % | |||||||||||||
Foreign tax differential | (556 | ) | 4.3 | % | 922 | (6.0 | %) | 900 | (4.0 | %) | |||||||||||||||
Uncertain tax positions | 404 | (3.2 | %) | — | 0 | % | 819 | (4.0 | %) | ||||||||||||||||
Change in control limitations on net operating losses | 12,824 | (100.2 | %) | — | 0 | % | — | 0 | % | ||||||||||||||||
Foreign withholding taxes | 1,342 | (10.5 | %) | — | 0 | % | — | 0 | % | ||||||||||||||||
Change in tax rates | 1,881 | (14.7 | %) | — | 0 | % | — | 0 | % | ||||||||||||||||
Other, net | 480 | (3.8 | %) | 673 | (5.0 | %) | (300 | ) | 1 | % | |||||||||||||||
Total | $ | 2,496 | (19.5 | %) | $ | 1,152 | (8.0 | %) | $ | 1,330 | (7.0 | %) | |||||||||||||
At December 31, 2013, we had U.S. federal net operating loss carryforwards of $91.5 million. These losses expire in various years between 2019 and 2033, and are subject to limitations on their utilization to the extent of future taxable income. We had total foreign net operating loss carryforwards of $16.3 million. Of these foreign net operating losses, $12.5 million are not currently subject to expiration dates. The remainder, $3.8 million, expires beginning in 2014 through 2022. These federal and foreign losses remain after reducing approximately $8.4 million and $40.4 million, respectively, due to their unavailability resulting from change in control rules regarding the post-acquisition utilization of pre-acquisition losses related to the acquisition of the Airwide Solutions group of companies. We had a full valuation allowance against these net operating losses. The reduction of the net operating losses resulted in the release of the valuation allowance associated with the losses. Therefore, the reduction of the net operating losses did not result in a charge to income tax expense. In addition, we have research and development tax credits carried forward of $1.2 million and $2.3 million which can be used to reduce U.S. federal tax and Canadian federal tax, respectively. These tax credits expire between 2024 and 2033. We have recorded a full valuation allowance on all federal and foreign jurisdictions for the net deferred tax assets at December 31, 2013 and 2012 due to the uncertainty of future operating results. The valuation allowance will be reduced at such time as management is able to determine that the realization of the deferred tax assets is more likely than not to occur. We released the valuation allowance on the net deferred tax assets associated with the State of Texas. It is foreseeable that Texas-sourced gross margin will continue to be generated in a matter that allows full realization of the applicable deferred tax assets and thus a net deferred tax asset of $50,000 was recorded for the period ended December 31, 2013. | |||||||||||||||||||||||||
During 2013, it was determined that certain foreign withholding taxes would not be realizable as foreign tax credits due to extended net operating losses in the entities in which the withholding taxes were incurred. Therefore, $1.3 million of foreign withholding taxes are included in income tax expense. We file federal, state and foreign income tax returns in jurisdictions with varying statutes of limitations. Generally, for federal income tax purposes, all years prior to 2010 are closed; however, these years remain open to examination to the extent of the utilization of net operating losses generated during these years. The 2010 through 2013 tax years generally remain subject to examination by federal and most state tax authorities. In foreign jurisdictions, varying tax years between 2005 through 2013 generally remain subject to examination by tax authorities. | |||||||||||||||||||||||||
We apply a two-step process for the evaluation of uncertain income tax positions based on a “more likely than not” threshold to determine if a tax position will be sustained upon examination by the taxing authorities. The recognition threshold in step one permits the benefit from an uncertain position to be recognized only if it is more likely than not, or 50% assured that the tax position will be sustained upon examination by the taxing authorities. The measurement methodology in step two is based on “cumulative probability,” resulting in the recognition of the largest amount that is greater than 50% likely of being realized upon settlement with the taxing authority. | |||||||||||||||||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31, 2013 and 2012 is as follows (in thousands): | |||||||||||||||||||||||||
Beginning Balance at January 1, 2012 | $ | 3,053 | |||||||||||||||||||||||
Additions to unrecognized tax benefits taken during the period | 303 | ||||||||||||||||||||||||
Additions to unrecognized tax benefits as a result of positions taken in prior periods | — | ||||||||||||||||||||||||
Decrease in unrecognized tax benefits relating to settlements with taxing authorities | — | ||||||||||||||||||||||||
Reductions to unrecognized tax benefits as a result of a lapse of the applicable statute of limitations | — | ||||||||||||||||||||||||
Ending Balance at December 31, 2012 and 2013 | $ | 3,356 | |||||||||||||||||||||||
The total amount of these unrecognized tax benefits would affect the effective tax rate, if recognized. It is reasonably possible that certain of the uncertain tax positions disclosed in the table above could increase or decrease within the next 12 months as a result of developing issues, management’s continuing review of existing positions, examinations or expiration of statute of limitations. We are not able to make an estimate of the range of the reasonably possible change. We have elected to recognize accrued interest and penalties related to income tax matters as income taxes. Cumulative interest recorded to the ASC 740-10 liability for the period ended December 31, 2013 equals $0.4 million with $0.1 million recognized in income tax expense during the year ended December 31, 2013. | |||||||||||||||||||||||||
We are electing to early adopt the provisions of ASU 2013-11: “Presentation of an Unrecognized Tax Benefit when a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” Unrecognized tax benefits will be presented as a reduction of the deferred tax asset for net operating losses and similar tax loss or tax credit carryforwards in lieu of a liability when (1) the uncertain tax position would reduce the NOL or other carryforward under the tax law of the applicable jurisdiction, and (2) we intend to use the deferred tax asset for that purpose. The change in accounting principle will not have an impact to continuing operations in current or prior periods. All unrecognized tax benefits are subjected to a valuation allowance in the applicable filing jurisdiction and thus a corresponding write-down to the valuation allowance results in no impact to income tax expense. | |||||||||||||||||||||||||
Any undistributed earnings of our foreign subsidiaries are considered to be indefinitely reinvested and, accordingly, no provision for U.S. federal and state income taxes has been provided thereon and we expect that future earnings will also be reinvested in foreign operations indefinitely. Upon repatriation of these earnings, in the form of dividends or otherwise, we would be subject to both U.S. income taxes (subject to an adjustment for foreign credits) and withholding taxes payable to various foreign countries. Determination of the amount of unrecognized deferred U.S. income tax liability is not practicable due to the complexities associated with its hypothetical calculation. Income taxes have not been provided on $11.5 million of undistributed earnings of foreign subsidiaries as of December 31, 2013. |
Financial_Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2013 | |
Investments All Other Investments [Abstract] | ' |
Financial Instruments | ' |
14. Financial Instruments | |
The majority of our operations are international, giving rise to significant exposure to market risks from changes in foreign exchange rates. Our results of operations would generally be adversely affected by an increase in the value of the U.S. dollar relative to the currencies of the countries in which we are profitable and a decrease in the value of the U.S. dollar relative to the currencies of the countries in which we are not profitable. In the future, we may use derivative financial instruments to reduce these risks, but does not hold or issue financial instruments for trading purposes. These financial instruments are subject to normal credit standards, financial controls, risk management and monitoring procedures. | |
Currency Risk | |
We have currency exposure arising from significant operations and contracts in multiple jurisdictions. We have limited its currency exposure to freely-tradable and liquid currencies of first world countries. | |
Concentration of Credit Risk | |
Accounts receivable are generally with diversified customers and dispersed across many geographical regions. As of December 31, 2013 and 2012, two customer balances and one customer balance, respectively, represented more than 10% of the overall account receivable balance. We believe no significant concentration of credit risk exists with respect to these accounts receivable. For the year ended December 31, 2013, four customers represented 58% of the total revenues, respectively. For the year ended December 31, 2012, four customers represented 46% of the total revenues, respectively. For the year ended December 31, 2011, three customers represented 49% of the total revenues, respectively. | |
We are required to estimate the collectability of our accounts receivable each accounting period and record a reserve for bad debts. A considerable amount of judgment is required in assessing the realization of these receivables, including the current creditworthiness of each customer, current and historical collection history and the related aging of past due balances. We evaluate specific accounts when it becomes aware of information indicating that a customer may not be able to meet its financial obligations due to the deterioration of its financial condition, lower credit ratings, bankruptcy or other factors, affecting the ability to render payment. Reserve requirements are based on the facts available and are re-evaluated and adjusted as additional information is received. |
Segment_and_Geographic_Informa
Segment and Geographic Information | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Segment Reporting [Abstract] | ' | ||||||||
Segment and Geographic Information | ' | ||||||||
15. Segment and Geographic Information | |||||||||
Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision makers, in deciding how to allocate resources and in assessing performance. Our chief operating decision-makers (i.e., chief executive officer and his direct reports) review financial information presented on a consolidated basis, accompanied by disaggregated information about revenues by geographic region for purposes of allocating resources and evaluating financial performance. We have concluded that we operate in one segment and have provided the required enterprise-wide disclosures. | |||||||||
Revenues by geographic area are based on the deployment site location of the end customers. The following tables present revenue and long-lived assets by geographic area (in thousands): | |||||||||
2013 | Revenues | Long-lived | |||||||
Assets | |||||||||
North America | $ | 48,130 | $ | 8,475 | |||||
EMEA (or Europe, Middle East and Africa) | 38,469 | 1,888 | |||||||
APAC (or Asia-Pacific) | 14,709 | 759 | |||||||
Consolidated Total | $ | 101,308 | $ | 11,122 | |||||
2012 | Revenues | Long-lived | |||||||
Assets | |||||||||
North America | $ | 37,314 | $ | 9,627 | |||||
EMEA (or Europe, Middle East and Africa) | 20,547 | 2,314 | |||||||
APAC (or Asia-Pacific) | 15,979 | 615 | |||||||
Consolidated Total | $ | 73,840 | $ | 12,556 | |||||
2011 | Revenues | Long-lived | |||||||
Assets | |||||||||
North America | $ | 26,820 | $ | 6,844 | |||||
EMEA (or Europe, Middle East and Africa) | 13,665 | 2,841 | |||||||
APAC (or Asia-Pacific) | 9,019 | 546 | |||||||
Consolidated Total | $ | 49,504 | $ | 10,231 | |||||
Quarterly_Financial_Data_unaud
Quarterly Financial Data (unaudited) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||
Quarterly Financial Data (unaudited) | ' | ||||||||||||||||
16. Quarterly Financial Data (unaudited) | |||||||||||||||||
Three Months Ended, | |||||||||||||||||
Mar. 31, | June 30, | Sep. 30, | Dec. 31, | ||||||||||||||
2013 | 2013 | 2013 | 2013 | ||||||||||||||
(unaudited) | |||||||||||||||||
Total Revenues | $ | 22,438 | $ | 25,752 | $ | 25,971 | $ | 27,147 | |||||||||
Gross Profit | 14,457 | 13,492 | 12,449 | 15,737 | |||||||||||||
Operating loss | (1,697 | ) | (869 | ) | (3,407 | ) | (1,735 | ) | |||||||||
Net loss | (4,294 | ) | (3,641 | ) | (4,513 | ) | (2,842 | ) | |||||||||
Net loss per share: | |||||||||||||||||
Basic and Diluted | $ | (3.21 | ) | $ | (2.72 | ) | $ | (3.35 | ) | $ | (0.22 | ) | |||||
Three Months Ended, | |||||||||||||||||
Mar. 31, | June 30, | Sep. 30, | Dec. 31, | ||||||||||||||
2012 | 2012 | 2012 | 2012 | ||||||||||||||
(unaudited) | |||||||||||||||||
Total Revenues | $ | 20,922 | $ | 19,027 | $ | 17,108 | $ | 16,783 | |||||||||
Gross Profit | 13,082 | 11,776 | 9,140 | 9,383 | |||||||||||||
Operating loss | (2,413 | ) | (2,130 | ) | (4,432 | ) | (5,588 | ) | |||||||||
Net loss | (2,133 | ) | (3,517 | ) | (3,418 | ) | (6,501 | ) | |||||||||
Net loss per share: | |||||||||||||||||
Basic and Diluted | $ | (1.74 | ) | $ | (2.76 | ) | $ | (2.61 | ) | $ | (4.87 | ) |
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
17. Subsequent Events | |
In February 2014, we signed a term sheet with Silicon Valley Bank to refinance our loans with them. We expect to close in March of 2014. We are currently in the process of evaluating whether this will be treated as an extinguishment or a modification of debt under the accounting literature. |
Description_of_the_Business_an1
Description of the Business and Basis of Presentation (Policies) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Basis of Presentation and Consolidation | ' | ||||||||||||||||
Basis of Presentation and Consolidation | |||||||||||||||||
The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and include the accounts of Mavenir and its wholly-owned subsidiaries (collectively, the “Company” or “we”). All intercompany accounts and transactions have been eliminated in consolidation. The Airwide Acquisition is included in the consolidated financial statements from the date of acquisition. | |||||||||||||||||
Reclassifications | ' | ||||||||||||||||
Reclassifications | |||||||||||||||||
Certain amounts previously presented for prior periods have been reclassified to conform to the current presentation. | |||||||||||||||||
Business Combination | ' | ||||||||||||||||
Business Combination | |||||||||||||||||
We account for business combinations under the acquisition method of accounting, which requires the assets acquired and liabilities assumed to be recorded at their respective fair values as of the acquisition date in our consolidated financial statements. The determination of estimated fair value may require management to make significant estimates and assumptions. The purchase price is the fair value of the total consideration conveyed to the seller and the excess of the purchase price over the fair value of the acquired identifiable net assets, where applicable, is recorded as goodwill. The results of operations of an acquired business are included in our consolidated financial statements from the date of acquisition. Costs associated with the acquisition of a business are expensed in the period incurred. | |||||||||||||||||
Cash and Cash Equivalents | ' | ||||||||||||||||
Cash and Cash Equivalents | |||||||||||||||||
Cash and cash equivalents consist of corporate bank accounts and money market funds with an original maturity of three months or less. For purposes of the statement of cash flows, we consider all highly liquid instruments with original maturities of three months or less to be cash equivalents. Cash balances consisted of U.S. Dollar, Australian Dollar (“AUD”), British Pound (“GBP”), Canadian Dollar (“CAD”), Chinese Yuan Renminbi (“CNY”), Croatian Kuna (“HRK”), European Union (“EURO”), Indian Rupee (“INR”), Malaysian Ringgit (“MYR”), Swedish Krona (“SEK”), and Singapore Dollar (“SGD”). | |||||||||||||||||
Cash and cash equivalents are maintained at high credit-quality financial institutions. Balances may exceed the limits of government provided insurance, if applicable or available. We have never experienced any losses resulting from a financial institution failure or default. In 2013, FDIC insurance coverage is $0.3 million per depositor at each financial institution, and our non-interest bearing cash balances in the United States may again exceed federally insured limits. | |||||||||||||||||
Accounts Receivable | ' | ||||||||||||||||
Accounts Receivable | |||||||||||||||||
Our accounts receivable are primarily due from companies in the mobile telecommunications industry. Credit is extended based on evaluation of the customer’s financial condition and generally collateral is not required. Accounts receivable are determined by the payment milestones referenced and agreed to in each of the commercial agreements. Payment milestones vary by contract. Payment terms typically range from 30 to 60 days from invoice date. Accounts outstanding longer than the contractual payment term are considered past due (in thousands). | |||||||||||||||||
Allowance for doubtful accounts | Balance at | Charged to Costs and | Deductions | Balance at End | |||||||||||||
Beginning | Expense | of Period | |||||||||||||||
of Period | |||||||||||||||||
Year ended December 31, 2011 | $ | 3 | $ | 638 | $ | — | $ | 641 | |||||||||
Year ended December 31, 2012 | $ | 641 | $ | 199 | $ | (458 | ) | $ | 382 | ||||||||
Year ended December 31, 2013 | $ | 382 | $ | 537 | $ | (332 | ) | $ | 587 | ||||||||
Revenue Recognition | ' | ||||||||||||||||
Revenue Recognition | |||||||||||||||||
We generate revenue from the sale of software products and maintenance and support. Professional services consist primarily of software development and implementation services, but also can include training of customer personnel. Our products and services are generally sold as part of a contract, the terms of which are considered as a whole to determine the appropriate revenue recognition. | |||||||||||||||||
Our products and services are sold through distribution partners and directly through our sales force. We typically do not offer contractual rights of return, stock balancing or price protection to our distribution partners, however, we do offer certain price protection to Cisco under the arrangement. Actual product returns from our customers have been insignificant to date. As a result, we do not currently maintain allowances for product returns and related services. A reserve based on historical experience or specific identification is recorded for estimated reductions to revenue for customer and distributor programs and incentive offerings, including price protections, promotions, other volume-based incentives and expected returns and has historically been insignificant. | |||||||||||||||||
We recognize revenue when persuasive evidence of an arrangement exists, delivery has occurred, the sale price is fixed or determinable and collectability is reasonably assured. We recognize revenue in accordance with either the provisions of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 985-605, Software Revenue Recognition, as amended, or with ASC 605-25 Multiple Element Arrangements (“MEAs”), with consideration to ASC 605-35 Construction-Type and Production-Type Contracts. | |||||||||||||||||
We first determine whether our products consist of tangible products that contain essential software elements and as such, are excluded from the software revenue recognition method of accounting. | |||||||||||||||||
Our software related products MEAs include software, non-essential hardware, professional services, and maintenance and typically involve significant professional services for customization and implementation and various combinations of these products and maintenance. We generally recognize all multiple elements except maintenance using the percentage of completion accounting for our projects. Revenue for hardware is non-essential and not material to the projects and is recognized on a percentage of completion basis along with the software related products. Maintenance is allocated based on vendor-specific objective evidence (“VSOE”). | |||||||||||||||||
Our tangible products containing essential software MEAs include hardware, software essential to the functionality of the hardware, installation, and maintenance and are dependent on final customer acceptance, except maintenance which is recognized over the term of coverage. All multiple elements except maintenance are only recognized upon customer acceptance, and the total transaction price is allocated based on the relative Estimated Selling Price (“ESP”) for the accepted product and maintenance. | |||||||||||||||||
Software Related Revenue Recognition | |||||||||||||||||
Certain of our software products are delivered under contracts, which generally require significant integration within a customer’s production and business system environment. As our agreements generally require significant production, modification or customization of the software, we account for these agreements under the percentage-of-completion method on the basis of hours incurred to date compared to total hours expected under the contract. The percentage-of-completion method generally results in the recognition of consistent profit margins over the life of the contract since management has the ability to produce estimates of contract billings and contract costs. We use the level of profit margin that is most likely to occur on a contract. If the most likely profit margin cannot be precisely determined, the lowest probable level of profit in the range of estimates is used until the results can be estimated more precisely. Under the percentage-of-completion accounting, management must also make key judgments in areas such as the percentage-of-completion, estimates of project revenue, costs and margin, estimates of total and remaining project hours and liquidated damages assessments. Changes in job performance, job conditions, estimated profitability, final contract settlements and resolution of claims may result in a revision to job costs and income amount that are different than amounts originally estimated. At the time a loss on a contract is known, the entire amount of the estimated loss is accrued. | |||||||||||||||||
Software contracts that do not qualify for use of the percentage-of-completion method, as reasonable estimates of percentage of completion are not available, are accounted for using the completed-contract method. Under the completed-contract method, all billings and related costs, net of anticipated losses, are deferred until completion of the contract. | |||||||||||||||||
In certain situations, we sell software that does not require significant modification of services considered essential to the software’s functionality. Such software, generally consisting of capacity license upgrades, is recognized upon delivery if the other revenue recognition criteria are met. | |||||||||||||||||
For multiple element software arrangements, each element of the arrangement is analyzed and allocated a portion of the total arrangement fee to the elements based on the fair value of the element using VSOE of fair value, regardless of any separate prices stated within the contract for each element. Fair value is considered the price a customer would be required to pay if the element were sold separately based on our historical experience of stand-alone sales of these elements to third parties. For post-contract customer support (“PCS”) such as maintenance, we use renewal rates for continued support arrangements to determine fair value. For software services, we use the fair value we charge our customers when those services are sold separately. We monitor our transactions at least annually to ensure we maintain and periodically revise VSOE to reflect fair value. | |||||||||||||||||
Some of our software arrangements include services not considered essential for the customer to use the software for the customer’s purpose, such as training. When software services are not considered essential, the fee allocable to the service element is recognized as revenue as we perform the services. Revenue for hardware is non-essential and not material to the projects and is recognized on a percentage of completion basis along with the software related products. | |||||||||||||||||
Tangible Product Containing Essential Software | |||||||||||||||||
On January 1, 2011, we retroactively adopted, for all periods presented, an accounting update regarding revenue recognition for multiple deliverable arrangements and an accounting update for certain revenue arrangements that consist of tangible products that include essential software elements. | |||||||||||||||||
The amended update for multiple deliverable arrangements changed the units of accounting for our revenue transactions, and these products and services qualify as separate units of accounting. Under the previous guidance for multiple deliverable arrangements with tangible products and software elements, we were unable to determine the fair value of the undelivered element so we deferred our costs and related billings and recognized such amounts over the performance period of the last deliverable, which was generally the PCS or maintenance period. | |||||||||||||||||
MEAs are arrangements with customers which include multiple deliverables, including a combination of equipment and services. The deliverables included in the MEAs are separated into more than one unit of accounting when (i) the delivered equipment has value to the customer on a stand-alone basis, and (ii) delivery of the undelivered service element(s) is probable and substantially in our control. Revenue from arrangements for the sale of tangible products containing both software and non-software components that function together to deliver the product’s essential functionality requires allocation of the arrangement consideration to the separate deliverables using the relative selling price method (“RSP”) of each unit of accounting based first on VSOE if it exists, second on third-party evidence (“TPE”) if it exists, and on ESP if neither VSOE nor TPE exist. | |||||||||||||||||
• | VSOE — For certain elements of an arrangement, VSOE is based upon the pricing in comparable transactions when the element is sold separately. We determine VSOE based on our pricing and discounting practices for the specific product or service when sold separately, considering geographical, customer, and other economic or marketing variables, as well as renewal rates or stand-alone prices for the service element(s). | ||||||||||||||||
• | TPE — If we cannot establish VSOE of selling price for a specific product or service included in a multiple-element arrangement, we use third-party evidence of selling price. We determine TPE based on sales of comparable amounts of similar products or services offered by multiple third parties considering the degree of customization and similarity of the product or service sold. | ||||||||||||||||
• | ESP — The estimated selling price represents the price at which we would sell a product or service if it were sold on a stand-alone basis. When VSOE or TPE does not exist for an element, we determine ESP for the arrangement element based on sales, cost and margin analysis, pricing practices and potential market constraints. Adjustments for other market and company-specific factors are made as deemed necessary in determining ESP. | ||||||||||||||||
Under the accounting principles retroactively adopted for all of the periods presented, certain contracts include multiple elements for which we determine whether the various elements meet the applicable criteria to be accounted for as separate elements and make estimates regarding their relative selling price. We use ESP when allocating arrangement consideration to each separate deliverable as we do not have VSOE or TPE of selling price for our various applicable tangible products containing essential software products and services. We allocate the total transaction price of an arrangement based on each separate unit of accounting relative to ESP. Revenue for elements that cannot be separated is recognized once the revenue recognition criteria for the entire arrangement has been met or over the period that our last remaining obligation to perform is fulfilled. Consideration for elements that are deemed separable is allocated to the separate elements at the inception of the arrangement on the basis of their relative selling price and recognized based on meeting authoritative criteria. The adoption of the amended revenue recognition rules significantly changed the timing of revenue recognition and had a material impact on the consolidated financial statements for the years ended December 31, 2013, 2012 and 2011. We cannot reasonably estimate the effect of adopting these standards on future financial periods as the impact will vary depending on the nature and volume of new or materially modified sales arrangements in any given period. We consider the installation and delivery of our software products to be part of a single unit of accounting for software products revenue due to the complexity of the installation and nature of the contracts. | |||||||||||||||||
The related costs associated with the delivered product that does not yet meet the criteria to be recognized as revenue are deferred. The cost of such products is charged to cost of revenue on a proportionate basis similar to the manner in which the related revenue is recognized. Deferred cost represents the cost of direct and incremental items purchased for contracts not yet delivered to or accepted by the customers. Costs of revenue principally consist of the costs of payroll-related costs for service personnel, third-party hardware, third-party licenses and shipping and installation costs to any customer. | |||||||||||||||||
Unbilled Revenue | ' | ||||||||||||||||
Unbilled Revenue | |||||||||||||||||
In cases where final acceptance has occurred but we have not invoiced the customer, we account for the amount to be invoiced as unbilled revenue. Customers are billed in accordance with specific contract terms, which may differ from the rate at which revenue is earned. Revenue recognized in excess of the amount billed of $11.2 million, $9.8 million and $4.8 million at December 31, 2013, 2012 and 2011, respectively, are classified as unbilled revenue. Amounts received from customers pursuant to the terms specified in contracts, but for which revenue has not yet been earned, are recorded as deferred revenue. We also evaluate our revenue recognition in accordance with FASB Accounting Standards Codification 605-45, Principal Agent Consideration, regarding gross versus net revenue reporting. We believe that we meet the criteria for gross recognition and report revenue on a gross basis. | |||||||||||||||||
Maintenance | ' | ||||||||||||||||
Maintenance | |||||||||||||||||
Maintenance consists of PCS agreements and our customers generally enter into PCS agreements when they purchase our products. Our PCS agreements range from one to three years and are typically renewable on an annual basis thereafter at the option of the customer. Revenue allocated to PCS is recognized ratably on a straight-line basis over the period the PCS is provided, assuming all other criteria for revenue recognition have been met. All significant costs and expenses associated with PCS are expensed as incurred. For our software products, we have established VSOE of fair value for the PCS and rates for maintenance, including subsequent renewal rates, are typically established based upon a specific percentage of the products provided, as set forth in the arrangement with the customer. For our tangible products (which all contain essential software), our customers generally enter into PCS arrangements when they purchase these tangible products. Relative selling price for the maintenance and support obligations for tangible products is based upon the ESP. | |||||||||||||||||
Shipping Costs | ' | ||||||||||||||||
Shipping Costs | |||||||||||||||||
Outbound shipping and handling costs are included in cost of revenues, in the accompanying consolidated statements of operations and comprehensive loss. | |||||||||||||||||
Inventories | ' | ||||||||||||||||
Inventories | |||||||||||||||||
Inventories consist of finished goods and are stated at the lower of cost (first-in, first-out method) or market, net of reserve for obsolete inventory. We maintain a small warranty stock however; substantially all inventories at period end are related to actual or planned customer orders. The reserve for obsolescence at December 31, 2013, 2012 and 2011, was $0.2 million, $0.3 million, and $0.2 million respectively. | |||||||||||||||||
Our costs of sales also include overhead costs, including capitalized inventory costs, deferred contract costs, and other direct and allocated support costs related to equipment and installation when sold. | |||||||||||||||||
Inventory shipped to customers is generally covered under a twelve month warranty and returns have historically been nominal. | |||||||||||||||||
Long-lived Assets, Goodwill and Intangible Assets | ' | ||||||||||||||||
Long-lived Assets, Goodwill and Intangible Assets | |||||||||||||||||
Property and Equipment | |||||||||||||||||
Property and equipment are stated at cost and depreciated over their respective estimated useful lives of two to five years, using the straight-line method. Maintenance and repairs are charged to expense when incurred. | |||||||||||||||||
When events or changes in circumstances indicate that the carrying amount of our property and equipment might not be recoverable, the expected future undiscounted cash flows from the assets are estimated and compared with the carrying amount of the assets. If the sum of the estimated undiscounted cash flows is less than the carrying amount of the assets, an impairment loss is recorded. The impairment loss is measured by comparing the fair value of the assets with their carrying amounts. Fair value is generally determined based on discounted cash flows or appraised values, as appropriate. We did not record any impairment losses related to our property and equipment during 2013, 2012, and 2011. | |||||||||||||||||
Intangible Assets | |||||||||||||||||
Our intangible assets are primarily comprised of the intangible assets that we acquired in the Airwide Acquisition. Specifically, we recognized intangible assets for (i) contractual backlog; (ii) customer relationships; and (iii) technology. At December 31, 2011, the contractual backlog intangible assets were fully amortized. | |||||||||||||||||
The intangible asset related to customer relationships is amortized over six years using a method that reflects an appropriate allocation of the costs of these intangible assets to earnings in proportion to the amount of economic benefits obtained in each reporting period. The intangible asset related to technology is amortized on a straight-line basis with estimated useful lives of six years from the date of the Airwide Acquisition. | |||||||||||||||||
Intangible assets are tested for impairment whenever events or circumstances indicate that the carrying amount of an asset may not be recoverable. An impairment loss would be recognized when the carrying amount of the asset exceeds the estimated undiscounted future cash flows expected to result from the use of the asset and its eventual disposition. The impairment loss to be recorded would be the excess of the asset’s carrying value over its fair value. Fair value is generally determined using a discounted cash flow analysis or other valuation technique. We have not recorded any impairment charges to our intangible assets through December 31, 2013. | |||||||||||||||||
Goodwill | |||||||||||||||||
Goodwill represents the excess of the purchase price over the fair value of the identifiable net assets acquired. Goodwill and other intangible assets with indefinite lives are not amortized to operations, but instead are reviewed for impairment at least annually, or when there is an indicator of impairment. We have no intangible assets with indefinite useful lives, other than goodwill. | |||||||||||||||||
The goodwill impairment test is a two-step test. Under the first step, the fair value of the reporting unit is compared with its carrying value (including goodwill). If the fair value of the reporting unit is less than its carrying value, an indication of goodwill impairment exists for the reporting unit and the entity must perform step two of the impairment test (measurement). Under step two, an impairment loss is recognized for any excess of the carrying amount of the reporting unit’s goodwill over the implied fair value of that goodwill. The implied fair value of goodwill is determined by allocating the fair value of the reporting unit in a manner similar to a purchase price allocation and the residual fair value after this allocation is the implied fair value of the reporting unit goodwill. Fair value of the reporting unit is determined using a discounted cash flow analysis. If the fair value of the reporting unit exceeds its carrying value, step two does not need to be performed. An impairment loss is recognized to the extent that the carrying amount of goodwill exceeds its implied fair value. | |||||||||||||||||
We determine fair value using widely accepted valuation techniques, including discounted cash flows and market multiple analyses. These types of analyses contain uncertainties because they require management to make assumptions and to apply judgment to estimate industry economic factors and the profitability of future business strategies. It is our policy to conduct impairment testing based on our current business strategy in light of present industry and economic conditions, as well as our future expectations. | |||||||||||||||||
Our valuation methodology for assessing impairment requires management to make judgments and assumptions based on historical experience and projections of future operating performance. If these assumptions differ materially from future results, we may record impairment charges in the future. | |||||||||||||||||
In connection with our annual goodwill impairment test, we have not recorded any impairment of such assets through December 31, 2013. | |||||||||||||||||
Income Taxes | ' | ||||||||||||||||
Income Taxes | |||||||||||||||||
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities related to a change in tax rates is recognized in operations in the period that includes the enactment date. | |||||||||||||||||
We provide a valuation allowance for our deferred tax assets when it is more likely than not that our deferred tax assets will not be realized, based on expectations of generating future taxable income. Due to our historical losses, the net deferred tax assets have been fully reserved with the establishment of a valuation allowance. | |||||||||||||||||
We recognize the effect of an income tax position only if it is more likely than not (a likelihood of greater than 50%) that such position will be sustained upon examination by the relevant taxing authorities. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. We recognized an uncertain tax positions liability of $3.1 million as of December 31, 2013, 2012 and 2011, as a result of related party foreign transactions. We recognize both interest and penalties related to uncertain tax positions as part of the income tax provision. Based on the nature of foreign transactions, we do not believe there are any material interest and penalties due. | |||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||
Fair Value Measurements | |||||||||||||||||
We account for financial instruments in accordance with FASB ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), which provides a framework for measuring fair value and expands required disclosure about fair value measurements of assets and liabilities. ASC 820 defines fair value 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. ASC 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: | |||||||||||||||||
Level 1 — Quoted prices in active markets for identical assets or liabilities. | |||||||||||||||||
Level 2 — Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable. | |||||||||||||||||
Level 3 — Unobservable inputs that are supported by little or no market activity, therefore requiring an entity to develop its own assumptions about the assumptions that market participants would use in pricing. | |||||||||||||||||
Our financial instruments consist primarily of cash and cash equivalents, billed and unbilled accounts receivable, accounts payable and debt. The carrying amounts of financial instruments, other than the debt instruments, are representative of their fair values due to their short maturities. We have elected not to carry our debt instruments at fair value. | |||||||||||||||||
The carrying amounts and fair values of our long-term borrowings at December 31, 2013 and December 31, 2012 are as follows (in thousands): | |||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||
Carrying | Fair Value | Carrying | Fair Value | ||||||||||||||
Amount | Amount | ||||||||||||||||
Silicon Valley Bank senior loan | $ | — | $ | — | $ | 10,000 | $ | 10,000 | |||||||||
Silicon Valley Bank subordinated loan | 10,000 | 10,900 | 5,000 | 5,000 | |||||||||||||
Silver Lake subordinated loan | 15,000 | 17,600 | — | — | |||||||||||||
Long-term debt | $ | 25,000 | $ | 28,500 | $ | 15,000 | $ | 15,000 | |||||||||
The fair value of our long-term debt was estimated based on discounting the remaining principal payments using current market rates for similar debt and consideration of credit and default risk (Level 3) at December 31, 2013 and 2012. | |||||||||||||||||
We do not have any other financial or non-financial assets or liabilities that would be characterized as Level 2 or Level 3 instruments. | |||||||||||||||||
Concentration of Credit Risk | ' | ||||||||||||||||
Concentration of Credit Risk | |||||||||||||||||
Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash and cash equivalents. We maintain cash and cash equivalent balances in the USA, Australia, Canada, China, Croatia, Finland, India, Malaysia, Singapore, Spain and the UK. The balances in the USA are FDIC insured. We maintain cash deposits with financial institutions with balances that often exceed federally insured amounts. We have experienced no losses related to these deposits. | |||||||||||||||||
Foreign Currency Translation | ' | ||||||||||||||||
Foreign Currency Translation | |||||||||||||||||
The functional currency for each of our foreign subsidiaries is the applicable local currency. Assets and liabilities of the foreign subsidiary are translated to U.S. dollars at year-end exchange rates. Income and expense items are translated at the rates of exchange prevailing during the period. We had $1.9 million of net transaction losses for 2013, $0.5 million of net transaction gains for 2012 and $1.2 million of net transaction losses for 2011. Currency translation adjustments are recorded as a component of other comprehensive income (loss). | |||||||||||||||||
Net Income /(Loss) Per Common Share | ' | ||||||||||||||||
Net Income /(Loss) Per Common Share | |||||||||||||||||
Basic net income/(loss) per common share is computed by dividing the net income/(loss) available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted net income per common share is computed by dividing the net income available to common shareholders by the weighted average number of common shares outstanding and potentially dilutive securities outstanding during the period. Potentially dilutive securities include stock options, warrants, and convertible preferred stock during the period, using the treasury stock method. Potentially dilutive securities are excluded from the computations of diluted earnings per share if their effect would be anti-dilutive. Note 9 provides additional information regarding loss per common share. | |||||||||||||||||
Research, Development and Engineering Costs | ' | ||||||||||||||||
Research, Development and Engineering Costs | |||||||||||||||||
Costs related to research, design and development of service infrastructure technology are charged to research and development expense as incurred. Financial accounting standards provide for the capitalization of certain software development costs once technological feasibility has been established and for the evaluation of the recoverability of any capitalized costs on a periodic basis. Our software products have historically reached technological feasibility late in the developmental process, and developmental costs incurred after technological feasibility and prior to product release have been insignificant to date. Accordingly, no development costs have been capitalized to date and all research and product development expenditures have been expensed as incurred. | |||||||||||||||||
Restructuring Charges | ' | ||||||||||||||||
Restructuring Charges | |||||||||||||||||
Restructuring charges consist primarily of severance and benefits costs resulting from strategic management decisions to consolidate operations supporting our business during 2011 following the acquisition of Airwide described in Note 2. Restructuring charges represent costs related to the realignment and restructuring of our business operations. These charges include expenses incurred in connection with strategic planning, certain cost reduction programs and acquisition integrations that we have implemented and consist of the cost of involuntary termination benefits, facilities charges, asset write-offs and other costs of exiting activities or geographies. | |||||||||||||||||
The charges for involuntary termination costs and associated expenses often require the use of estimates, primarily related to the number of employees to be paid severance and the amounts to be paid, largely based on years of service and statutory requirements. Assumptions to estimate facility exit costs include the ability to secure sublease income largely based on market conditions, the likelihood and amounts of a negotiated settlement for contractual lease obligations and other exit costs. Other estimates for restructuring charges consist of the realizable value of assets including associated disposal costs and termination fees with third parties for other contractual commitments. | |||||||||||||||||
Restructuring charges incurred and paid during 2011 totaled $0.5 million, which is included in general and administration in the Consolidated Statements of Operations and Comprehensive Loss. | |||||||||||||||||
Stock-based Compensation | ' | ||||||||||||||||
Stock-based Compensation | |||||||||||||||||
Stock-based compensation represents the cost related to stock-based awards granted to employees. We measure stock-based compensation cost at the grant date, based on the estimated fair value of the award and recognizes the cost as an expense on a straight-line basis over the employee requisite service period. We estimate the fair value of stock options without market-based performance conditions using the Black-Scholes valuation model with the following weighted average assumptions: | |||||||||||||||||
• | Risk-free interest rate — U.S. Federal Reserve treasury constant maturities rate consistent vesting period; | ||||||||||||||||
• | Expected dividend yield — measured as the average annualized dividend estimated to be paid over the expected life of the award as a percentage of the share price at the grant date; | ||||||||||||||||
• | Expected term — the average of the vesting period and the expiration period from the date of issue of the award; and | ||||||||||||||||
• | Weighted average expected volatility — measured using historical volatility of similar public entities for which share or option price information is available. | ||||||||||||||||
The following table presents our stock-based compensation expense resulting from stock options that we recorded in our Consolidated Statement of Operations and Comprehensive Loss for 2013, 2012 and 2011 (in thousands): | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Cost of revenues | $ | 187 | $ | — | $ | — | |||||||||||
Research and development | 321 | — | — | ||||||||||||||
Sales and marketing | 482 | — | — | ||||||||||||||
General and administrative | 640 | 291 | 138 | ||||||||||||||
Total | $ | 1,630 | $ | 291 | $ | 138 | |||||||||||
Advertising Costs | ' | ||||||||||||||||
Advertising Costs | |||||||||||||||||
Advertising costs are expensed as incurred or the first time the advertising takes place, applied consistently based on the nature of the advertising activity. Advertising expenses for 2013, 2012, and 2011, were $0.8 million, $0.7 million, and $0.3 million, respectively. | |||||||||||||||||
Use of Estimates | ' | ||||||||||||||||
Use of Estimates | |||||||||||||||||
The preparation of our consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities, and the reported amounts of revenues and expenses. Actual results could differ from those estimates. | |||||||||||||||||
Recent Accounting Pronouncements | ' | ||||||||||||||||
Recent Accounting Pronouncements | |||||||||||||||||
In July 2012, the FASB issued Accounting Standards Update (“ASU”) 2012-02, Intangibles-Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment, allowing entities the option to first assess qualitative factors to determine whether it is necessary to perform the quantitative impairment test. If the qualitative assessment indicates it is more-likely-than-not that the fair value of an indefinite-lived intangible asset is less than its carrying amount, the quantitative impairment test is required. Otherwise, no testing is required. This ASU was effective for us in the period beginning January 1, 2013. The adoption of this guidance did not affect our financial position, results of operations or cash flows. | |||||||||||||||||
In February 2013, the FASB issued ASU 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income (“ASU 2013-02”). ASU 2013-02 requires registrants to provide information about the amounts reclassified out of AOCI by component. In addition, an entity is required to present significant amounts reclassified out of AOCI by the respective line items of net income. ASU 2013-02 was effective for fiscal years, and interim periods within those years, beginning after December 15, 2012. As the new standard does not change the current requirements for reporting net income or other comprehensive income in the financial statements, our financial position, results of operations or cash flows were not impacted. | |||||||||||||||||
In July 2013, the FASB issued ASU 2013-11, Presentation of an Unrecognized Tax Benefit when a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (“ASU 2013-11”). We are electing to early adopt the provisions of ASU 2013-11. Unrecognized tax benefits will be presented as a reduction of the deferred tax asset for net operating losses and similar tax loss or tax credit carryforwards in lieu of a liability when (1) the uncertain tax position would reduce the NOL or other carryforward under the tax law of the applicable jurisdiction, and (2) we intend to use the deferred tax asset for that purpose. The change in accounting principle will not have an impact to continuing operations in current or prior periods. All unrecognized tax benefits are subjected to a valuation allowance in the applicable filing jurisdiction and thus a corresponding write-down to the valuation allowance results in no impact to income tax expense. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Schedule of Accounts Receivable | ' | ||||||||||||||||
Allowance for doubtful accounts | Balance at | Charged to Costs and | Deductions | Balance at End of | |||||||||||||
Beginning of | Expense | Period | |||||||||||||||
Period | |||||||||||||||||
Year ended December 31, 2011 | $ | 3 | $ | 638 | $ | — | $ | 641 | |||||||||
Year ended December 31, 2012 | $ | 641 | $ | 199 | $ | (458 | ) | $ | 382 | ||||||||
Year ended December 31, 2013 | $ | 382 | $ | 537 | $ | (332 | ) | $ | 587 | ||||||||
Carrying Amounts and Fair Values of Long-Term Borrowings | ' | ||||||||||||||||
The carrying amounts and fair values of our long-term borrowings at December 31, 2013 and December 31, 2012 are as follows (in thousands): | |||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||
Carrying | Fair Value | Carrying | Fair Value | ||||||||||||||
Amount | Amount | ||||||||||||||||
Silicon Valley Bank senior loan | $ | — | $ | — | $ | 10,000 | $ | 10,000 | |||||||||
Silicon Valley Bank subordinated loan | 10,000 | 10,900 | 5,000 | 5,000 | |||||||||||||
Silver Lake subordinated loan | 15,000 | 17,600 | — | — | |||||||||||||
Long-term debt | $ | 25,000 | $ | 28,500 | $ | 15,000 | $ | 15,000 | |||||||||
Schedule of Stock-Based Compensation Expense | ' | ||||||||||||||||
The following table presents our stock-based compensation expense resulting from stock options that we recorded in our Consolidated Statement of Operations and Comprehensive Loss for 2013, 2012 and 2011 (in thousands): | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Cost of revenues | $ | 187 | $ | — | $ | — | |||||||||||
Research and development | 321 | — | — | ||||||||||||||
Sales and marketing | 482 | — | — | ||||||||||||||
General and administrative | 640 | 291 | 138 | ||||||||||||||
Total | $ | 1,630 | $ | 291 | $ | 138 | |||||||||||
Business_Combination_Tables
Business Combination (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Business Combinations [Abstract] | ' | ||||||||
Allocation of Total Purchase Price to Asset Acquired and Liabilities Assumed | ' | ||||||||
The following table presents the allocation of the total purchase price to the assets acquired and liabilities assumed at the date of the acquisition (in thousands): | |||||||||
May 27, 2011 | |||||||||
Cash and cash equivalent | $ | 2,404 | |||||||
Accounts receivables | 8,112 | ||||||||
Unbilled revenue | 6,624 | ||||||||
Other current assets | 2,612 | ||||||||
Property and equipment | 441 | ||||||||
Intangibles | 7,322 | ||||||||
Goodwill | 941 | ||||||||
Accounts payable | (2,901 | ) | |||||||
Deferred revenue | (2,427 | ) | |||||||
Accrued expense and other current liabilities | (4,198 | ) | |||||||
Uncertain tax position liabilities | (2,029 | ) | |||||||
Total | $ | 16,901 | |||||||
Intangible Assets Amortized for Estimated Useful Lives | ' | ||||||||
These intangible assets are amortized with estimated useful lives ranging from seven months to six years from the date of acquisition over a method that reflects an appropriate allocation of the costs of these intangible assets to earnings in proportion to the amount of economic benefits obtained in each reporting period. | |||||||||
Acquired intangible assets (in thousands) | Fair Value | Weighted Average | |||||||
Useful Life | |||||||||
(in months) | |||||||||
Contractual backlog | $ | 1,411 | 7 | ||||||
Customer relationship | 5,120 | 72 | |||||||
Technology | 791 | 72 | |||||||
Total | $ | 7,322 | |||||||
Unaudited Pro Forma Results as if Acquisition Occurred | ' | ||||||||
Below are our selected unaudited pro forma results of for the year ended December 31, 2011 as if the acquisition occurred as of January 1, 2011. These results are not intended to reflect the actual operations had the acquisition occurred at January 1, 2011. | |||||||||
2011 | |||||||||
Revenues | $ | 66,831 | |||||||
Net loss | $ | (26,716 | ) | ||||||
Basic and diluted loss per common share | $ | (23.11 | ) | ||||||
Schedule of Revenue and Earnings of Airwide included in Consolidated Statement of Operations and Comprehensive Loss | ' | ||||||||
The amounts of revenue and earnings of Airwide included in the our consolidated statement of operations and Comprehensive Loss from the acquisition date of May 27, 2011 to the period ending December 31, 2011 are as follows (in thousands): | |||||||||
2011 | |||||||||
Revenues | $ | 22,369 | |||||||
Net loss | $ | (7,369 | ) |
Property_and_Equipment_Tables
Property and Equipment (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Property Plant And Equipment [Abstract] | ' | ||||||||||
Schedule of Property and Equipment | ' | ||||||||||
The following table presents the detail of property and equipment for the periods presented (in thousands): | |||||||||||
Estimated | December 31, | ||||||||||
Useful Life | 2013 | 2012 | |||||||||
Computer software | 3 years | $ | 5,046 | $ | 4,540 | ||||||
Computer and lab equipment | 3 years | 8,917 | 7,770 | ||||||||
Other equipment | 2-5 years | 1,468 | 1,578 | ||||||||
Property and equipment, gross | 15,431 | 13,888 | |||||||||
Less: accumulated depreciation | (10,377 | ) | (7,969 | ) | |||||||
Property and equipment, net | $ | 5,054 | $ | 5,919 | |||||||
Intangible_Assets_and_Goodwill1
Intangible Assets and Goodwill (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||
Summary of Intangible Assets | ' | ||||||||||||||||
Intangible assets as of December 31, 2013 are as follows (in thousands): | |||||||||||||||||
Description | Weighted Average | Gross Carrying | Accumulated | Net Carrying Amount | |||||||||||||
Amortization period | Amount | Amortization | as of | ||||||||||||||
(in months) | 31-Dec-13 | ||||||||||||||||
Contractual backlog | 7 | $ | 1,382 | $ | 1,382 | $ | — | ||||||||||
Customer relationships | 72 | 4,897 | 2,108 | 2,789 | |||||||||||||
Technology | 72 | 799 | 344 | 455 | |||||||||||||
Certification and licenses | 36 | 2,957 | 999 | 1,958 | |||||||||||||
Total | $ | 10,035 | $ | 4,833 | $ | 5,202 | |||||||||||
Intangible assets as of December 31, 2012 are as follows (in thousands): | |||||||||||||||||
Description | Weighted Average | Gross Carrying | Accumulated | Net Carrying Amount | |||||||||||||
Amortization period | Amount | Amortization | as of | ||||||||||||||
(in months) | December 31, 2012 | ||||||||||||||||
Contractual backlog | 7 | $ | 1,462 | $ | 1,462 | $ | — | ||||||||||
Customer relationships | 72 | 5,280 | 1,568 | 3,712 | |||||||||||||
Technology | 72 | 825 | 249 | 576 | |||||||||||||
Certification and licenses | 36 | 1,833 | 407 | 1,426 | |||||||||||||
Total | $ | 9,400 | $ | 3,686 | $ | 5,714 | |||||||||||
Summary of Expected Amortization Expense for Each of the Next Five Years | ' | ||||||||||||||||
The following table presents the expected amortization expense for each of the next five years ending December 31 for those intangible assets with remaining carrying values as of December 31, 2013 (in thousands): | |||||||||||||||||
Years Ending December 31, | Amortization of | ||||||||||||||||
Intangible Assets | |||||||||||||||||
2014 | $ | 1,883 | |||||||||||||||
2015 | 1,539 | ||||||||||||||||
2016 | 1,385 | ||||||||||||||||
2017 | 395 | ||||||||||||||||
2018 | — | ||||||||||||||||
Total | $ | 5,202 | |||||||||||||||
Summary of Changes in Carrying Value of Goodwill | ' | ||||||||||||||||
A summary of changes in our carrying value of goodwill is as follows (in thousands): | |||||||||||||||||
Year ended December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Balance, beginning of period | $ | 923 | $ | 901 | |||||||||||||
Foreign currency exchange translation | (57 | ) | 22 | ||||||||||||||
Balance, end of period | $ | 866 | $ | 923 | |||||||||||||
Accrued_Liabilities_Tables
Accrued Liabilities (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Payables And Accruals [Abstract] | ' | ||||||||
Schedule of Accrued Liabilities | ' | ||||||||
The following table presents the detail of accrued liabilities for the period ends presented (in thousands): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Accrued payroll | $ | 7,221 | $ | 4,323 | |||||
Accrued expenses on contracts | 1,446 | 1,996 | |||||||
Accrued professional fees | 136 | 997 | |||||||
Other | 3,136 | 3,698 | |||||||
Total accrued liabilities | $ | 11,939 | $ | 11,014 | |||||
Longterm_Debt_Tables
Long-term Debt (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Schedule of Long Term Debt | ' | ||||||||
The following table presents the detail of long-term debt for the period ends presented (in thousands): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Silicon Valley Bank senior loan | $ | — | $ | 10,000 | |||||
Silicon Valley Bank subordinated loan | 10,000 | 5,000 | |||||||
Silver Lake subordinated loan | 15,000 | — | |||||||
Discount related to issuance of warrants | (1,577 | ) | (300 | ) | |||||
Long-term debt | $ | 23,423 | $ | 14,700 | |||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Commitments And Contingencies Disclosure [Abstract] | ' | ||||
Future Minimum Lease Payments Under Non-Cancelable Operating Leases | ' | ||||
Future minimum lease payments under the non-cancelable operating leases as of December 31, 2013 are as follows (in thousands): | |||||
Years ending December 31, | |||||
2014 | $ | 1,865 | |||
2015 | 1,751 | ||||
2016 | 1,271 | ||||
2017 | 997 | ||||
2018 and thereafter | 792 | ||||
Total | $ | 6,676 | |||
Loss_per_Common_Share_Applicab1
Loss per Common Share Applicable to Common Shareholders (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Summary of Computation of Basic and Diluted Net Loss Per Share | ' | ||||||||||||
The computation of basic and diluted net (loss) per share is as follows (in thousands, except per share amounts): | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Net loss | $ | (15,290 | ) | $ | (15,569 | ) | $ | (21,758 | ) | ||||
Basic common shares: | |||||||||||||
Weighted average number of shares outstanding | 4,278,060 | 1,287,986 | 1,155,980 | ||||||||||
Diluted common shares: | |||||||||||||
Weighted average shares used to compute diluted net loss per share | 4,278,060 | 1,287,986 | 1,155,980 | ||||||||||
Net loss per share attributable to common stockholders: | |||||||||||||
Basic and diluted | $ | (3.57 | ) | $ | (12.09 | ) | $ | (18.82 | ) | ||||
Summary of Anti-dilutive Securities not Included in Calculation of Diluted Net Loss Per Share | ' | ||||||||||||
The following weighted-average common stock equivalents were excluded from the calculation of diluted net (loss) per share because their effect would have been anti-dilutive for the periods presented due to the net loss for all periods presented: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Convertible preferred stock | — | 16,452,467 | 16,452,467 | ||||||||||
Stock options | 1,532,224 | 1,473,632 | 965,595 | ||||||||||
Warrants | 1,232,776 | — | — |
Shareholders_Deficit_Tables
Shareholders' Deficit (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||
Summary of Weighted Average Assumptions Used in Calculating Fair Value of Awards | ' | ||||||||||||||||
To determine the weighted average fair value of stock options granted, we used the Black-Scholes option-pricing model with the following weighted average assumptions during the periods presented: | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Expected dividends | 0 | % | 0 | % | 0 | % | |||||||||||
Risk-free interest rate (U.S. Treasury) | 1.8 | % | 1.7 | % | 2.1 | % | |||||||||||
Expected term | 6.3 years | 6.3 years | 6.2 years | ||||||||||||||
Expected volatility | 57.5 | % | 62 | % | 60 | % | |||||||||||
Summary of Stock Option Activity | ' | ||||||||||||||||
The following tables summarize the stock option activity for the periods presented (in thousands): | |||||||||||||||||
Shares | Weighted | Weighted | Aggregate | ||||||||||||||
Average | Average | Intrinsic | |||||||||||||||
Exercise | Remaining | Value | |||||||||||||||
Price | Contractual | ||||||||||||||||
Term | |||||||||||||||||
Outstanding as of January 1, 2011 | 1,835,314 | $ | 0.56 | ||||||||||||||
Granted | 1,028,923 | $ | 2.01 | ||||||||||||||
Exercised | (90,277 | ) | $ | 0.56 | |||||||||||||
Forfeited or expired | (126,589 | ) | $ | 0.7 | |||||||||||||
Outstanding as of December 31, 2011 | 2,647,371 | $ | 1.12 | 7.8 | $ | 6,343 | |||||||||||
Exercisable as of December 31, 2011 | 2,097,683 | $ | 1.07 | 7.5 | $ | 5,145 | |||||||||||
Shares | Weighted | Weighted | Aggregate | ||||||||||||||
Average | Average | Intrinsic | |||||||||||||||
Exercise | Remaining | Value | |||||||||||||||
Price | Contractual | ||||||||||||||||
Term | |||||||||||||||||
Outstanding as of January 1, 2012 | 2,647,371 | $ | 1.12 | ||||||||||||||
Granted | 487,921 | $ | 4.77 | ||||||||||||||
Exercised | (121,407 | ) | $ | 0.59 | |||||||||||||
Forfeited or expired | (317,090 | ) | $ | 1.14 | |||||||||||||
Outstanding as of December 31, 2012 | 2,696,795 | $ | 1.8 | 7.3 | $ | 16,465 | |||||||||||
Exercisable as of December 31, 2012 | 2,040,742 | $ | 1.16 | 6.6 | $ | 13,789 | |||||||||||
Shares | Weighted | Weighted | Aggregate | ||||||||||||||
Average | Average | Intrinsic | |||||||||||||||
Exercise | Remaining | Value | |||||||||||||||
Price | Contractual | ||||||||||||||||
Term | |||||||||||||||||
Outstanding as of January 1, 2013 | 2,696,795 | $ | 1.8 | ||||||||||||||
Granted | 880,097 | $ | 9.56 | ||||||||||||||
Exercised | (163,356 | ) | $ | 0.56 | |||||||||||||
Forfeited or expired | (126,264 | ) | $ | 3.88 | |||||||||||||
Outstanding as of December 31, 2013 | 3,287,272 | $ | 3.86 | 7.2 | $ | 24,002 | |||||||||||
Exercisable as of December 31, 2013 | 2,105,784 | $ | 1.53 | 5.7 | $ | 17,622 | |||||||||||
Summary of Stock Options Outstanding and Excercisable | ' | ||||||||||||||||
The following table summarizes additional information about stock options outstanding at December 31, 2013: | |||||||||||||||||
Exercise Price | Options | Options | Weighted Average | ||||||||||||||
Outstanding | Exercisable | Remaining Contractual Term | |||||||||||||||
(in years) | |||||||||||||||||
$0.07-0.56 | 672,978 | 672,978 | 3.1 | ||||||||||||||
$0.63-0.77 | 485,749 | 458,198 | 6.3 | ||||||||||||||
$2.10 | 891,680 | 795,126 | 7.7 | ||||||||||||||
$5.11-10.00 | 1,124,382 | 179,482 | 9.1 | ||||||||||||||
$10.78 | 112,483 | — | 10 | ||||||||||||||
3,287,272 | 2,105,784 | 7.2 | |||||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Summary of Income Tax Expense | ' | ||||||||||||||||||||||||
The following table summarizes the income tax expense (in thousands): | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Current: | |||||||||||||||||||||||||
Federal | $ | — | $ | — | $ | — | |||||||||||||||||||
State | 218 | — | — | ||||||||||||||||||||||
Foreign | 2,328 | 1,152 | 1,330 | ||||||||||||||||||||||
Total current | 2,546 | 1,152 | 1,330 | ||||||||||||||||||||||
Deferred: | |||||||||||||||||||||||||
Federal | — | — | — | ||||||||||||||||||||||
State | <50> | — | — | ||||||||||||||||||||||
Foreign | — | — | — | ||||||||||||||||||||||
Total deferred | — | — | — | ||||||||||||||||||||||
Income tax expense | $ | 2,496 | $ | 1,152 | $ | 1,330 | |||||||||||||||||||
Schedule of Income (loss) Before Income Tax Expense | ' | ||||||||||||||||||||||||
The components of income (loss) before income tax expense consisted of the following (in thousands): | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Domestic | $ | (12,947 | ) | $ | (18,941 | ) | $ | (17,576 | ) | ||||||||||||||||
Foreign | 153 | 4,524 | (2,852 | ) | |||||||||||||||||||||
Total | $ | (12,794 | ) | $ | (14,417 | ) | $ | (20,428 | ) | ||||||||||||||||
Components of Deferred Tax Assets and Liabilities | ' | ||||||||||||||||||||||||
Significant components of deferred tax assets and liabilities are as follows (in thousands): | |||||||||||||||||||||||||
As of December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Deferred tax assets | |||||||||||||||||||||||||
Net operating loss carryforwards | $ | 35,918 | $ | 43,196 | |||||||||||||||||||||
Deferred revenue | 2,741 | 1,038 | |||||||||||||||||||||||
Accrued expenses | 1,696 | 1,159 | |||||||||||||||||||||||
Allowance for bad debt | 149 | 102 | |||||||||||||||||||||||
Start-up costs | 1,057 | 1,239 | |||||||||||||||||||||||
Depreciation of property and equipment | 30 | — | |||||||||||||||||||||||
Unrealized gain/loss on foreign currency translations | 411 | 165 | |||||||||||||||||||||||
Research and development credit | 2,010 | 833 | |||||||||||||||||||||||
Inventories | 1,032 | 105 | |||||||||||||||||||||||
Other | 115 | 211 | |||||||||||||||||||||||
Total deferred tax assets | 45,159 | 48,048 | |||||||||||||||||||||||
Deferred tax liabilities | |||||||||||||||||||||||||
Amortization of intangible assets | (1,472 | ) | (1,178 | ) | |||||||||||||||||||||
Unrealized gain/loss on foreign currency translations | — | — | |||||||||||||||||||||||
Prepaid items | (233 | ) | — | ||||||||||||||||||||||
Other | — | (72 | ) | ||||||||||||||||||||||
Total deferred tax liabilities | (1,705 | ) | (1,250 | ) | |||||||||||||||||||||
Net deferred tax assets | 43,454 | 46,798 | |||||||||||||||||||||||
Valuation allowance | (43,404 | ) | (46,798 | ) | |||||||||||||||||||||
Net deferred tax assets | $ | 50 | $ | — | |||||||||||||||||||||
Reconciliation of Federal Statutory Income Tax Rate to Effective Income Tax Rate | ' | ||||||||||||||||||||||||
A reconciliation of the federal statutory income tax rate to the effective income tax rate is as follows (in thousands): | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Amount | Percent | Amount | Percent | Amount | Percent | ||||||||||||||||||||
Computed tax at statutory rates: | $ | (4,478 | ) | 35 | % | $ | (5,046 | ) | 35 | % | $ | (7,150 | ) | 35 | % | ||||||||||
Permanent differences | (122 | ) | 1 | % | 362 | (3.0 | %) | 683 | (3.0 | %) | |||||||||||||||
Difference resulting from state income taxes, net of federal income tax benefits | 128 | (1.0 | %) | (337 | ) | 2 | % | (661 | ) | 3 | % | ||||||||||||||
Change in valuation allowance | (7,453 | ) | 58.3 | % | 4,678 | (32.0 | %) | 8,115 | (40.0 | %) | |||||||||||||||
Effect of tax credits | (1,954 | ) | 15.3 | % | (100 | ) | 1 | % | (1,076 | ) | 5 | % | |||||||||||||
Foreign tax differential | (556 | ) | 4.3 | % | 922 | (6.0 | %) | 900 | (4.0 | %) | |||||||||||||||
Uncertain tax positions | 404 | (3.2 | %) | — | 0 | % | 819 | (4.0 | %) | ||||||||||||||||
Change in control limitations on net operating losses | 12,824 | (100.2 | %) | — | 0 | % | — | 0 | % | ||||||||||||||||
Foreign withholding taxes | 1,342 | (10.5 | %) | — | 0 | % | — | 0 | % | ||||||||||||||||
Change in tax rates | 1,881 | (14.7 | %) | — | 0 | % | — | 0 | % | ||||||||||||||||
Other, net | 480 | (3.8 | %) | 673 | (5.0 | %) | (300 | ) | 1 | % | |||||||||||||||
Total | $ | 2,496 | (19.5 | %) | $ | 1,152 | (8.0 | %) | $ | 1,330 | (7.0 | %) | |||||||||||||
Unrecognized Tax Benefits | ' | ||||||||||||||||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31, 2013 and 2012 is as follows (in thousands): | |||||||||||||||||||||||||
Beginning Balance at January 1, 2012 | $ | 3,053 | |||||||||||||||||||||||
Additions to unrecognized tax benefits taken during the period | 303 | ||||||||||||||||||||||||
Additions to unrecognized tax benefits as a result of positions taken in prior periods | — | ||||||||||||||||||||||||
Decrease in unrecognized tax benefits relating to settlements with taxing authorities | — | ||||||||||||||||||||||||
Reductions to unrecognized tax benefits as a result of a lapse of the applicable statute of limitations | — | ||||||||||||||||||||||||
Ending Balance at December 31, 2012 and 2013 | $ | 3,356 | |||||||||||||||||||||||
Segment_and_Geographic_Informa1
Segment and Geographic Information (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Segment Reporting [Abstract] | ' | ||||||||
Schedule of Revenues and Long-Lived Assets by Geographic Region | ' | ||||||||
The following tables present revenue and long-lived assets by geographic area (in thousands): | |||||||||
2013 | Revenues | Long-lived | |||||||
Assets | |||||||||
North America | $ | 48,130 | $ | 8,475 | |||||
EMEA (or Europe, Middle East and Africa) | 38,469 | 1,888 | |||||||
APAC (or Asia-Pacific) | 14,709 | 759 | |||||||
Consolidated Total | $ | 101,308 | $ | 11,122 | |||||
2012 | Revenues | Long-lived | |||||||
Assets | |||||||||
North America | $ | 37,314 | $ | 9,627 | |||||
EMEA (or Europe, Middle East and Africa) | 20,547 | 2,314 | |||||||
APAC (or Asia-Pacific) | 15,979 | 615 | |||||||
Consolidated Total | $ | 73,840 | $ | 12,556 | |||||
2011 | Revenues | Long-lived | |||||||
Assets | |||||||||
North America | $ | 26,820 | $ | 6,844 | |||||
EMEA (or Europe, Middle East and Africa) | 13,665 | 2,841 | |||||||
APAC (or Asia-Pacific) | 9,019 | 546 | |||||||
Consolidated Total | $ | 49,504 | $ | 10,231 | |||||
Quarterly_Financial_Data_unaud1
Quarterly Financial Data (unaudited) (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||
Selected Quarterly Financial Information | ' | ||||||||||||||||
Three Months Ended, | |||||||||||||||||
Mar. 31, | June 30, | Sep. 30, | Dec. 31, | ||||||||||||||
2013 | 2013 | 2013 | 2013 | ||||||||||||||
(unaudited) | |||||||||||||||||
Total Revenues | $ | 22,438 | $ | 25,752 | $ | 25,971 | $ | 27,147 | |||||||||
Gross Profit | 14,457 | 13,492 | 12,449 | 15,737 | |||||||||||||
Operating loss | (1,697 | ) | (869 | ) | (3,407 | ) | (1,735 | ) | |||||||||
Net loss | (4,294 | ) | (3,641 | ) | (4,513 | ) | (2,842 | ) | |||||||||
Net loss per share: | |||||||||||||||||
Basic and Diluted | $ | (3.21 | ) | $ | (2.72 | ) | $ | (3.35 | ) | $ | (0.22 | ) | |||||
Three Months Ended, | |||||||||||||||||
Mar. 31, | June 30, | Sep. 30, | Dec. 31, | ||||||||||||||
2012 | 2012 | 2012 | 2012 | ||||||||||||||
(unaudited) | |||||||||||||||||
Total Revenues | $ | 20,922 | $ | 19,027 | $ | 17,108 | $ | 16,783 | |||||||||
Gross Profit | 13,082 | 11,776 | 9,140 | 9,383 | |||||||||||||
Operating loss | (2,413 | ) | (2,130 | ) | (4,432 | ) | (5,588 | ) | |||||||||
Net loss | (2,133 | ) | (3,517 | ) | (3,418 | ) | (6,501 | ) | |||||||||
Net loss per share: | |||||||||||||||||
Basic and Diluted | $ | (1.74 | ) | $ | (2.76 | ) | $ | (2.61 | ) | $ | (4.87 | ) |
Description_of_the_Business_an2
Description of the Business and Basis of Presentation - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 2 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 2 Months Ended | |
Nov. 30, 2013 | Dec. 31, 2013 | Nov. 07, 2013 | Nov. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Nov. 07, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
IPO [Member] | IPO [Member] | IPO [Member] | IPO [Member] | Selling Stockholders [Member] | Underwriters Option To Purchase Additional Shares [Member] | Underwriters Discounts And Commissions [Member] | Other Offering Expenses [Member] | |||
Entity Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Entity formation date | ' | 26-Apr-05 | ' | ' | ' | ' | ' | ' | ' | ' |
Entity incorporated state name | ' | 'Delaware | ' | ' | ' | ' | ' | ' | ' | ' |
Airwide Solutions acquisition date | ' | 27-May-11 | ' | ' | ' | ' | ' | ' | ' | ' |
Closing date of IPO for common stock | ' | ' | ' | ' | ' | 7-Nov-13 | ' | ' | ' | ' |
Number of common stock shares sold | ' | ' | 5,320,292 | ' | ' | ' | 129,708 | 145,339 | ' | ' |
Common stock, public offering price | ' | ' | $10 | ' | ' | ' | ' | ' | ' | ' |
Net proceeds from common stock, Initial public offering | ' | $44,765,000 | ' | ' | $44,800,000 | ' | ' | ' | ' | ' |
Offering expenses | ' | ' | ' | ' | ' | ' | ' | ' | $3,800,000 | $6,100,000 |
Reverse stock split conversion ratio | ' | ' | ' | 7 | ' | ' | ' | ' | ' | ' |
Reverse stock split description | ' | ' | ' | ' | ' | '7-for-1 reverse stock split of our common stock | ' | ' | ' | ' |
Common stock, shares outstanding | 16,452,467 | ' | ' | 16,452,467 | ' | ' | ' | ' | ' | ' |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Significant Accounting Policies [Line Items] | ' | ' | ' |
FDIC insurance coverage refundable amount per depositor | $300,000 | ' | ' |
Unbilled receivables | 11,213,000 | 9,782,000 | 4,800,000 |
Inventory reserve for obsolescence | 200,000 | 300,000 | 200,000 |
Liability for uncertain tax positions | 3,100,000 | 3,100,000 | 3,100,000 |
Foreign currency transaction gain (loss) | -1,900,000 | 500,000 | -1,200,000 |
Restructuring charges incurred | ' | ' | 500,000 |
Advertising expenses | $800,000 | $700,000 | $300,000 |
Minimum [Member] | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Account receivables payment term | '30 days | ' | ' |
Maximum [Member] | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Account receivables payment term | '60 days | ' | ' |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Schedule Of Accounts Receivables (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Receivables [Abstract] | ' | ' | ' |
Allowances for doubtful accounts receivable, beginning Balance | $382 | $641 | $3 |
Charged to Costs and Expense | 537 | 199 | 638 |
Deduction in accounts receivable | -332 | -458 | ' |
Allowances for doubtful accounts receivable, Ending Balance | $587 | $382 | $641 |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies - Carrying Amounts and Fair Values of Long-Term Borrowings (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Carrying Amounts And Estimated Fair Values Of Financial Instruments [Line Items] | ' | ' |
Long-term debt, Carrying Amount | $25,000 | $15,000 |
Long-term debt, Fair Value | 28,500 | 15,000 |
Silicon Valley Bank [Member] | Senior loan [Member] | ' | ' |
Carrying Amounts And Estimated Fair Values Of Financial Instruments [Line Items] | ' | ' |
Long-term debt, Carrying Amount | ' | 10,000 |
Long-term debt, Fair Value | ' | 10,000 |
Silicon Valley Bank [Member] | Subordinated loan [Member] | ' | ' |
Carrying Amounts And Estimated Fair Values Of Financial Instruments [Line Items] | ' | ' |
Long-term debt, Carrying Amount | 10,000 | 5,000 |
Long-term debt, Fair Value | 10,900 | 5,000 |
Silver Lake [Member] | Subordinated loan [Member] | ' | ' |
Carrying Amounts And Estimated Fair Values Of Financial Instruments [Line Items] | ' | ' |
Long-term debt, Carrying Amount | 15,000 | ' |
Long-term debt, Fair Value | $17,600 | ' |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies - Schedule of Stock-Based Compensation Expense (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Schedule Of Stock Based Compensation Costs [Line Items] | ' | ' | ' |
Stock based compensation expense | $1,630 | $291 | $138 |
Cost of revenues [Member] | ' | ' | ' |
Schedule Of Stock Based Compensation Costs [Line Items] | ' | ' | ' |
Stock based compensation expense | 187 | ' | ' |
Research and development [Member] | ' | ' | ' |
Schedule Of Stock Based Compensation Costs [Line Items] | ' | ' | ' |
Stock based compensation expense | 321 | ' | ' |
Sales and marketing [Member] | ' | ' | ' |
Schedule Of Stock Based Compensation Costs [Line Items] | ' | ' | ' |
Stock based compensation expense | 482 | ' | ' |
General and administrative [Member] | ' | ' | ' |
Schedule Of Stock Based Compensation Costs [Line Items] | ' | ' | ' |
Stock based compensation expense | $640 | $291 | $138 |
Business_Combination_Additiona
Business Combination - Additional Information (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | 27-May-11 |
Airwide [Member] | ||||
Business Acquisition [Line Items] | ' | ' | ' | ' |
Outstanding Capital Stock | ' | ' | ' | $16,900,000 |
Goodwill | 866,000 | 923,000 | 901,000 | 941,000 |
Acquisition-related cost | ' | ' | ' | $700,000 |
Business_Combination_Allocatio
Business Combination - Allocation of Total Purchase Price to Asset Acquired and Liabilities Assumed (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | 27-May-11 |
In Thousands, unless otherwise specified | Airwide [Member] | ||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' |
Cash and cash equivalent | $38,930 | $7,402 | $19,466 | $5,425 | $2,404 |
Accounts receivables | 23,641 | 15,159 | ' | ' | 8,112 |
Unbilled revenue | 11,213 | 9,782 | 4,800 | ' | 6,624 |
Other current assets | ' | ' | ' | ' | 2,612 |
Property and equipment | 5,054 | 5,919 | ' | ' | 441 |
Intangibles | 5,202 | 5,714 | ' | ' | 7,322 |
Goodwill | 866 | 923 | 901 | ' | 941 |
Accounts payable | -7,152 | -6,087 | ' | ' | -2,901 |
Deferred revenue | -15,785 | -12,927 | ' | ' | -2,427 |
Accrued expense and other current liabilities | ' | ' | ' | ' | -4,198 |
Uncertain tax position liabilities | ' | ' | ' | ' | -2,029 |
Total | ' | ' | ' | ' | $16,901 |
Business_Combination_Intangibl
Business Combination - Intangible Assets Amortized for Estimated Useful Lives (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Finite-Lived Intangible Assets [Line Items] | ' |
Fair Value | $7,322 |
Contract Backlog [Member] | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Fair Value | 1,411 |
Weighted Average Useful Life | '7 months |
Customer Relationship [Member] | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Fair Value | 5,120 |
Weighted Average Useful Life | '72 months |
Technology [Member] | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Fair Value | $791 |
Weighted Average Useful Life | '72 months |
Business_Combination_Unaudited
Business Combination - Unaudited Pro Forma Results as if Acquisition Occurred (Detail) (USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2011 |
Business Combinations [Abstract] | ' |
Revenues | $66,831 |
Net loss | ($26,716) |
Basic and diluted loss per common share | ($23.11) |
Business_Combination_Schedule_
Business Combination - Schedule of Revenue and Earnings of Airwide included in Consolidated Statement of Operations and Comprehensive Loss (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 7 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2011 |
Airwide [Member] | ||||||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | $101,308 | $73,840 | $49,504 | $22,369 |
Net loss | ($2,842) | ($4,513) | ($3,641) | ($4,294) | ($6,501) | ($3,418) | ($3,517) | ($2,133) | ($15,290) | ($15,569) | ($21,758) | ($7,369) |
Property_and_Equipment_Schedul
Property and Equipment - Schedule of Property and Equipment (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | $15,431 | $13,888 |
Less: accumulated depreciation | -10,377 | -7,969 |
Property and equipment, net | 5,054 | 5,919 |
Computer software [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, Estimated Useful Life | '3 years | ' |
Property and equipment, gross | 5,046 | 4,540 |
Computer and lab equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, Estimated Useful Life | '3 years | ' |
Property and equipment, gross | 8,917 | 7,770 |
Other equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | $1,468 | $1,578 |
Other equipment [Member] | Minimum [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, Estimated Useful Life | '2 years | ' |
Other equipment [Member] | Maximum [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, Estimated Useful Life | '5 years | ' |
Property_and_Equipment_Additio
Property and Equipment - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Property Plant And Equipment [Abstract] | ' | ' | ' |
Depreciation expense | $2,472 | $1,527 | $949 |
Intangible_Assets_and_Goodwill2
Intangible Assets and Goodwill - Summary of Intangible Assets (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | $10,035 | $9,400 |
Accumulated Amortization | 4,833 | 3,686 |
Net Carrying Amount | 5,202 | 5,714 |
Contractual backlog [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Weighted Average Amortization period | '7 months | '7 months |
Gross Carrying Amount | 1,382 | 1,462 |
Accumulated Amortization | 1,382 | 1,462 |
Net Carrying Amount | ' | ' |
Customer relationships [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Weighted Average Amortization period | '72 months | '72 months |
Gross Carrying Amount | 4,897 | 5,280 |
Accumulated Amortization | 2,108 | 1,568 |
Net Carrying Amount | 2,789 | 3,712 |
Technology [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Weighted Average Amortization period | '72 months | '72 months |
Gross Carrying Amount | 799 | 825 |
Accumulated Amortization | 344 | 249 |
Net Carrying Amount | 455 | 576 |
Certification and licenses [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Weighted Average Amortization period | '36 months | '36 months |
Gross Carrying Amount | 2,957 | 1,833 |
Accumulated Amortization | 999 | 407 |
Net Carrying Amount | $1,958 | $1,426 |
Intangible_Assets_and_Goodwill3
Intangible Assets and Goodwill - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Cost of revenue related to software products | $45,173 | $30,459 | $30,784 |
Operating expenses on consolidated statements of operations and comprehensive loss | 63,843 | 57,944 | 37,905 |
Amortization expense | 1,534 | 2,521 | 1,984 |
Other Intangible Assets [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Operating expenses on consolidated statements of operations and comprehensive loss | 900 | 2,500 | 600 |
Amortization expense | 1,500 | 2,500 | 2,000 |
Computer software [Member] | Other Intangible Assets [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Cost of revenue related to software products | $600 | $0 | $1,400 |
Intangible_Assets_and_Goodwill4
Intangible Assets and Goodwill - Summary of Expected Amortization Expense for Each of the Next Five Years (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Goodwill And Intangible Assets Disclosure [Abstract] | ' |
2014 | $1,883 |
2015 | 1,539 |
2016 | 1,385 |
2017 | 395 |
2018 | ' |
Total | $5,202 |
Intangible_Assets_and_Goodwill5
Intangible Assets and Goodwill - Summary of Changes in Carrying Value of Goodwill (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Goodwill [Roll Forward] | ' | ' |
Balance, beginning of period | $923 | $901 |
Foreign currency exchange translation | -57 | 22 |
Balance, end of period | $866 | $923 |
Accrued_Liabilities_Schedule_o
Accrued Liabilities - Schedule of Accrued Liabilities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Accrued Liabilities Current [Abstract] | ' | ' |
Accrued payroll | $7,221 | $4,323 |
Accrued expenses on contracts | 1,446 | 1,996 |
Accrued professional fees | 136 | 997 |
Other | 3,136 | 3,698 |
Total accrued liabilities | $11,939 | $11,014 |
Long_Term_Debt_Schedule_of_Lon
Long Term Debt - Schedule of Long Term Debt (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Jun. 04, 2013 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | Warrants [Member] | Warrants [Member] | Silicon Valley Bank [Member] | Silicon Valley Bank [Member] | Silicon Valley Bank [Member] | Silver Lake Waterman [Member] | Silver Lake Waterman [Member] | Silver Lake Waterman [Member] | ||
Warrants [Member] | Warrants [Member] | |||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Senior loan | ' | ' | ' | ' | ' | $10,000 | ' | ' | ' | ' |
Subordinated loan | ' | ' | ' | ' | 10,000 | 5,000 | ' | 15,000 | 15,000 | ' |
Discount related to issuance of warrants | ' | ' | -1,577 | -300 | ' | ' | -200 | ' | ' | -1,400 |
Long-term debt | $23,423 | $14,700 | ' | ' | ' | ' | ' | ' | ' | ' |
Long_Term_Debt_LongTerm_Debt_A
Long Term Debt - Long-Term Debt - Additional Information (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Credit facility and subordinated loans, outstanding | $25,000 | $15,000 |
Warrants [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt discount | $1,577 | $300 |
Long_Term_Debt_Silicon_Valley_
Long Term Debt - Silicon Valley Bank - Additional Information (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2005 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 18, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 18, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Oct. 18, 2012 | Dec. 31, 2013 | Oct. 28, 2012 | Oct. 18, 2012 |
Warrants [Member] | Warrants [Member] | Silicon Valley Bank [Member] | Silicon Valley Bank [Member] | Silicon Valley Bank [Member] | Silicon Valley Bank [Member] | Silicon Valley Bank [Member] | Silicon Valley Bank [Member] | Silicon Valley Bank [Member] | Silicon Valley Bank [Member] | Silicon Valley Bank [Member] | Silicon Valley Bank [Member] | |||
Instruments | Senior Loan [Member] | Senior Loan [Member] | Subordinated loan [Member] | Subordinated loan [Member] | Warrants [Member] | Warrants [Member] | Warrants [Member] | |||||||
Agreement | ||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of loan agreements | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowing capacity | ' | ' | ' | ' | $32,500,000 | ' | ' | $22,500,000 | ' | ' | ' | ' | ' | ' |
Debt instrument term | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | '3 years | ' | ' | ' | ' |
Floating rate | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' | ' | ' | ' | ' | ' |
Debt instrument description | ' | ' | ' | ' | ' | ' | ' | ' | 'U.S. prime rate | ' | ' | ' | ' | ' |
Minimum interest rate | ' | ' | ' | ' | ' | ' | ' | 4.25% | ' | ' | ' | ' | ' | ' |
Percentage of eligible trade receivables | ' | ' | ' | ' | ' | ' | ' | 80.00% | ' | ' | ' | ' | ' | ' |
Amount of eligible trade receivables | ' | ' | ' | ' | ' | ' | ' | 15,000,000 | ' | ' | ' | ' | ' | ' |
Credit facility available for specific purpose other than for trade purchase | ' | ' | ' | ' | ' | ' | ' | 7,500,000 | ' | ' | ' | ' | ' | ' |
Subordinated debt | ' | ' | ' | ' | ' | 10,000,000 | 5,000,000 | ' | ' | ' | 10,000,000 | ' | ' | ' |
Debt instrument interest rate state percentage | ' | 7.00% | ' | ' | ' | ' | ' | ' | ' | ' | 11.00% | ' | ' | ' |
Debt instrument maturity date | ' | ' | ' | ' | ' | ' | ' | ' | 31-Oct-15 | 31-Oct-15 | ' | ' | ' | ' |
Total shares of company's common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 128,570 | 128,570 |
Common stock purchase price per share | $6.68 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $5.11 | $5.11 |
Number of financial instrument | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceed from issuance of secured debt | ' | ' | ' | ' | 15,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument fair value | ' | ' | ' | ' | 14,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of warrants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 300,000 | 300,000 |
Debt instrument unamortized discount | ' | ' | 1,577,000 | 300,000 | ' | ' | ' | ' | ' | ' | ' | 200,000 | ' | ' |
Unamortized deferred financing costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $300,000 | ' | ' |
Additional interest imposed in event of default | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | 5.00% | ' | ' | ' | ' |
Long_Term_Debt_Silver_Lake_Wat
Long Term Debt - Silver Lake Waterman - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2005 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 04, 2013 | Dec. 31, 2013 | Jun. 04, 2013 | Jun. 04, 2013 | Jun. 04, 2013 | Jun. 04, 2013 | Dec. 31, 2013 | Jun. 04, 2013 | |
Warrants [Member] | Warrants [Member] | Silver Lake Waterman [Member] | Silver Lake Waterman [Member] | Silver Lake Waterman [Member] | Silver Lake Waterman [Member] | Silver Lake Waterman [Member] | Silver Lake Waterman [Member] | Silver Lake Waterman [Member] | Silver Lake Waterman [Member] | ||||
Instruments | First Year [Member] | Second Year [Member] | Third Year [Member] | Thereafter [Member] | Warrants [Member] | Warrants [Member] | |||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Subordinated term loan | ' | ' | ' | ' | ' | $15,000,000 | $15,000,000 | ' | ' | ' | ' | ' | ' |
Debt instrument maturity date | ' | ' | ' | ' | ' | ' | 30-Jun-17 | ' | ' | ' | ' | ' | ' |
Debt instrument interest rate stated percentage | ' | ' | 7.00% | ' | ' | 12.00% | ' | ' | ' | ' | ' | ' | ' |
Prepayment penalty percentage | ' | ' | ' | ' | ' | ' | ' | 5.00% | 4.00% | 3.00% | 2.00% | ' | ' |
Additional interest imposed in event of default | ' | ' | ' | ' | ' | 5.00% | ' | ' | ' | ' | ' | ' | ' |
Class of Warrant or right number of securities called by warrants or rights | ' | ' | ' | ' | ' | 194,694 | ' | ' | ' | ' | ' | 194,694 | ' |
Class of warrants or right exercise price of warrants or rights | $6.68 | ' | ' | ' | ' | $0.01 | ' | ' | ' | ' | ' | $0.01 | ' |
Number of financial instrument | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' |
Proceeds from issuance of subordinated long term debt | ' | ' | ' | ' | ' | 15,000,000 | ' | ' | ' | ' | ' | ' | ' |
Debt instrument fair value | ' | ' | ' | ' | ' | 13,400,000 | ' | ' | ' | ' | ' | ' | ' |
Fair value of warrants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,600,000 | 1,600,000 |
Amortization of debt discount premium | 357,000 | 25,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 400,000 | ' |
Unamortized discount on debt | ' | ' | ' | 1,577,000 | 300,000 | ' | ' | ' | ' | ' | ' | 1,400,000 | ' |
Unamortized deferred financing costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $200,000 | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Oct. 31, 2010 |
Patent Infringement Claim [Member] | ||||
Defendant | ||||
Loss Contingencies [Line Items] | ' | ' | ' | ' |
Rent expenses | $2.10 | $2.40 | $2.20 | ' |
Operating leases, future minimum payments due, future minimum sublease rentals | $0.80 | ' | ' | ' |
Number of remaining defendants in lawsuit | ' | ' | ' | 16 |
Commitments_and_Contingencies_2
Commitments and Contingencies - Future Minimum Lease Payments Under Non-Cancelable Operating Leases (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Leases [Abstract] | ' |
2014 | $1,865 |
2015 | 1,751 |
2016 | 1,271 |
2017 | 997 |
2018 and thereafter | 792 |
Total | $6,676 |
Loss_per_Common_Share_Applicab2
Loss per Common Share Applicable to Common Shareholders - Summary of Computation of Basic and Diluted Net Loss Per Share (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Earnings Per Share [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net loss | ($2,842) | ($4,513) | ($3,641) | ($4,294) | ($6,501) | ($3,418) | ($3,517) | ($2,133) | ($15,290) | ($15,569) | ($21,758) |
Basic common shares: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average number of shares outstanding | ' | ' | ' | ' | ' | ' | ' | ' | 4,278,060 | 1,287,986 | 1,155,980 |
Diluted common shares: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average shares used to compute diluted net loss per share | ' | ' | ' | ' | ' | ' | ' | ' | 4,278,060 | 1,287,986 | 1,155,980 |
Net loss per share attributable to common stockholders: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic and diluted | ($0.22) | ($3.35) | ($2.72) | ($3.21) | ($4.87) | ($2.61) | ($2.76) | ($1.74) | ($3.57) | ($12.09) | ($18.82) |
Loss_per_Common_Share_Applicab3
Loss per Common Share Applicable to Common Shareholders - Summary of Anti-dilutive Securities not Included in Calculation of Diluted Net Loss Per Share (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Convertible preferred stock [Member] | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Anti-dilutive securities excluded from computation of earnings per share | ' | 16,452,467 | 16,452,467 |
Stock options [Member] | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Anti-dilutive securities excluded from computation of earnings per share | 1,532,224 | 1,473,632 | 965,595 |
Warrants [Member] | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Anti-dilutive securities excluded from computation of earnings per share | 1,232,776 | ' | ' |
Redeemable_Convertible_Preferr1
Redeemable Convertible Preferred Stock - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 2 Months Ended | 12 Months Ended | ||||||||
Nov. 30, 2013 | Dec. 31, 2013 | Apr. 30, 2006 | Dec. 31, 2005 | Apr. 30, 2006 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2007 | Dec. 31, 2012 | Oct. 31, 2008 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2010 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | |
Series A redeemable convertible preferred stock [Member] | Series A redeemable convertible preferred stock [Member] | Series A redeemable convertible preferred stock [Member] | Series B redeemable convertible preferred stock [Member] | Series B redeemable convertible preferred stock [Member] | Series B redeemable convertible preferred stock [Member] | Series C redeemable convertible preferred stock [Member] | Series C redeemable convertible preferred stock [Member] | Series C redeemable convertible preferred stock [Member] | Series D redeemable convertible preferred stock [Member] | Series D redeemable convertible preferred stock [Member] | Series D redeemable convertible preferred stock [Member] | Series E redeemable convertible preferred stock [Member] | Series E redeemable convertible preferred stock [Member] | Series E redeemable convertible preferred stock [Member] | |||||
Temporary Equity [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible promissory notes issued | ' | ' | ' | $2,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible promissory notes interest percentage | ' | ' | ' | 7.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding Convertible promissory notes | ' | ' | 2,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Conversion to Series A Preferred Stock, price per share | ' | ' | $2.81 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Conversion to Series A Preferred Stock, shares | ' | ' | ' | ' | 928,893 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sale of preferred stock, shares | ' | ' | ' | ' | 2,805,072 | ' | ' | ' | 3,818,210 | ' | 2,616,704 | ' | ' | 1,728,569 | ' | ' | 4,555,021 | ' | ' |
Sale of preferred stock, price per share | ' | ' | ' | ' | $3.75 | ' | ' | ' | $5.37 | ' | $6.68 | ' | ' | $7.85 | ' | ' | $8.78 | ' | ' |
Sale of preferred stock, proceeds | ' | ' | ' | ' | 10,500,000 | ' | ' | ' | 20,500,000 | ' | 17,500,000 | ' | ' | 13,600,000 | ' | ' | 40,000,000 | ' | ' |
Preferred stock dividend rate | ' | ' | ' | ' | ' | $0.30 | ' | $0.43 | ' | ' | ' | $0.53 | ' | ' | $0.63 | ' | ' | $0.70 | ' |
Dividend declared, Preferred stock | ' | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividend declared, Common stock | ' | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock holders preference on liquidation | ' | ' | ' | ' | ' | $3.75 | ' | $5.37 | ' | ' | ' | $6.68 | ' | ' | $7.85 | ' | ' | $8.78 | ' |
Maximum per share amount in general liquidation | ' | ' | ' | ' | ' | $3.75 | ' | $5.37 | ' | ' | ' | $6.68 | ' | ' | $7.85 | ' | ' | $17.56 | ' |
Public Offering amount triggering automatic conversion of Preferred Stock to Common Stock | ' | 50,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Terms of conversion of preferred stock | ' | 'All shares of Preferred Stock are subject to automatic conversion upon the closing of a public offering of our Common Stock in which the aggregate proceeds equal or exceed $50.0 million. All shares of Preferred Stock are also automatically convertible into Common Stock, at the applicable Conversion Rate, upon the written consent or agreement of a majority of (i) the Series A Preferred Stock, Series B Preferred Stock, Series C Preferred Stock, and Series D Preferred Stock, voting together as a single class, and (ii) the Series E Preferred Stock, voting as a separate class. The conversion rate is initially one share of Common Stock for each share of Preferred Stock, subject to adjustment for certain stock issuances and stock splits, reverse stock-splits, stock combinations and the like. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock redemption terms | ' | 'We shall redeem all, but not less than all, of the shares of Preferred Stock then outstanding in three equal annual installments beginning on a date not more than forty-five (45) days after the receipt of the redemption request. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Temporary equity | ' | ' | ' | ' | ' | ' | $13,005,000 | ' | ' | $20,500,000 | ' | ' | $17,478,000 | ' | ' | $13,575,000 | ' | ' | $40,000,000 |
Preferred stock converted to Common stock on closure of initial public offering | 16,452,467 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shareholders_Deficit_Additiona
Shareholders' Deficit - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 0 Months Ended | 2 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 2 Months Ended | ||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 11, 2012 | Nov. 01, 2006 | Oct. 28, 2012 | Dec. 31, 2013 | Oct. 18, 2012 | Jun. 04, 2013 | Dec. 31, 2013 | Jun. 04, 2013 | Dec. 31, 2013 | Nov. 07, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Nov. 01, 2006 | Dec. 31, 2013 | Dec. 31, 2013 | Nov. 07, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
Stock_Plan | Series C redeemable convertible preferred stock [Member] | Communities Foundation Of Texas [Member] | Communities Foundation Of Texas [Member] | Communities Foundation Of Texas [Member] | Silicon Valley Bank [Member] | Silicon Valley Bank [Member] | Silicon Valley Bank [Member] | Silver Lake Waterman [Member] | Silver Lake Waterman [Member] | Silver Lake Waterman [Member] | Options [Member] | IPO [Member] | IPO [Member] | IPO [Member] | IPO [Member] | IPO [Member] | IPO [Member] | IPO [Member] | Selling Stockholders [Member] | Underwriters Option To Purchase Additional Shares [Member] | Underwriters Discounts And Commissions [Member] | Other Offering Expenses [Member] | |||
Warrants [Member] | Warrants [Member] | Warrants [Member] | Warrants [Member] | Warrants [Member] | Warrants [Member] | Warrants [Member] | Warrants [Member] | Communities Foundation Of Texas [Member] | Silicon Valley Bank [Member] | Silver Lake Waterman [Member] | |||||||||||||||
Warrants [Member] | Warrants [Member] | Warrants [Member] | |||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Closing date of IPO for common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7-Nov-13 | ' | ' | ' | ' | ' | ' | ' | ' |
Number of common stock shares sold, Initial public offering | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,320,292 | ' | ' | ' | ' | ' | ' | 129,708 | 145,339 | ' | ' |
Common stock, Initial public offering price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net proceeds from common stock, Initial public offering | $44,765,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $44,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Offering expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,800,000 | 6,100,000 |
Common stock, shares authorized | 300,000,000 | 300,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 300,000,000 | 300,000,000 | 22,171,986 | ' | ' | ' | ' | ' | ' | ' |
Number of stock option plan | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vesting period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '4 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage vested at the end of year one | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of options fully vested | 2,105,784 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average exercise price of options fully vested | $1.53 | $1.16 | $1.07 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average remaining contractual terms of options fully vested | '5 years 8 months 12 days | '6 years 7 months 6 days | '7 years 6 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intrinsic value of options fully vested | 17,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares available for future grants | 1,115,741 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-average grant date fair value | $5.29 | $2.80 | $1.12 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total intrinsic value of options exercised | 1,400,000 | 500,000 | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-cash charges for stock compensation related to amortization of the fair value of unvested stock options | 1,600,000 | 300,000 | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total unrecognized cost related to unvested stock options granted | 4,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average period to recognize the unrecognized cost related to unvested stock option granted | '2 years 9 months 18 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of warrants issued | ' | ' | ' | ' | ' | 2,857 | 2,857 | 128,570 | ' | 128,570 | 194,694 | 194,694 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock purchase price per share | $6.68 | ' | ' | ' | ' | $5.11 | $0.42 | $5.11 | ' | $5.11 | $0.01 | $0.01 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contractual term of warrants | '7 years | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares exercised after closure of IPO | 163,356 | 121,407 | 90,277 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,397 | ' | ' | ' | ' | ' | ' |
Fair value of warrants | ' | ' | ' | ' | ' | ' | ' | $300,000 | ' | $300,000 | ' | $1,600,000 | $1,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Required written notice period | ' | ' | ' | ' | ' | ' | ' | ' | '7 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrant expiration date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30-Nov-16 | 5-Nov-16 | ' | ' | ' | ' |
Risk free interest rate | ' | ' | ' | ' | ' | ' | ' | 1.72% | ' | ' | ' | 1.99% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock price volatility rate | ' | ' | ' | ' | ' | ' | ' | 62.00% | ' | ' | ' | 58.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrant term | ' | ' | ' | ' | ' | ' | ' | '4 years | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected dividend yield | ' | ' | ' | ' | ' | ' | ' | 0.00% | ' | ' | ' | 0.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrant exercised | 0 | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Average remaining life of common stock warrants | ' | ' | ' | '1 year 9 months 18 days | ' | ' | ' | ' | '2 years 10 months 24 days | ' | ' | '2 years 10 months 24 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants outstanding | 909,512 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shareholders_Deficit_Weighted_
Shareholders' Deficit - Weighted Average Assumptions Used in Estimating Fair Value of Stock Options (Detail) (Options [Member]) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Options [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Expected dividends | 0.00% | 0.00% | 0.00% |
Risk-free interest rate (U.S. Treasury) | 1.80% | 1.70% | 2.10% |
Expected term | '6 years 3 months 18 days | '6 years 3 months 18 days | '6 years 2 months 12 days |
Expected volatility | 57.50% | 62.00% | 60.00% |
Shareholders_Deficit_Summary_o
Shareholders' Deficit - Summary of Company's Stock Option Activity for Plans (Detail) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Equity [Abstract] | ' | ' | ' |
Outstanding - beginning balance, Shares | 2,696,795 | 2,647,371 | 1,835,314 |
Granted, Shares | 880,097 | 487,921 | 1,028,923 |
Exercised, Shares | -163,356 | -121,407 | -90,277 |
Forfeited or expired, Shares | -126,264 | -317,090 | -126,589 |
Outstanding - ending balance, Shares | 3,287,272 | 2,696,795 | 2,647,371 |
Option exercisable - ending balance, shares | 2,105,784 | 2,040,742 | 2,097,683 |
Outstanding - beginning balance, Weighted Average Exercise Price | $1.80 | $1.12 | $0.56 |
Granted, Weighted Average Exercise Price | $9.56 | $4.77 | $2.01 |
Exercised, Weighted Average Exercise Price | $0.56 | $0.59 | $0.56 |
Forfeited or expired, Weighted Average Exercise Price | $3.88 | $1.14 | $0.70 |
Outstanding - ending balance, Weighted Average Exercise Price | $3.86 | $1.80 | $1.12 |
Weighted Average Exercise Price, Option exercisable, ending balance | $1.53 | $1.16 | $1.07 |
Outstanding - ending balance, Weighted Average Remaining Contractual Term | '7 years 2 months 12 days | '7 years 3 months 18 days | '7 years 9 months 18 days |
Weighted Average Remaining Contractual Term, exercisable, ending balance | '5 years 8 months 12 days | '6 years 7 months 6 days | '7 years 6 months |
Outstanding - ending balance, Aggregate Intrinsic Value | $24,002 | $16,465 | $6,343 |
Aggregate Intrinsic Value, exercisable, ending balance | $17,622 | $13,789 | $5,145 |
Shareholders_Deficit_Summary_o1
Shareholders' Deficit - Summary of Stock Options Outstanding and Exercisable (Detail) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Options Outstanding | 3,287,272 | 2,696,795 | 2,647,371 | 1,835,314 |
Options Exercisable | 2,105,784 | 2,040,742 | 2,097,683 | ' |
Weighted Average Remaining Contractual Term | '7 years 2 months 12 days | '7 years 3 months 18 days | '7 years 9 months 18 days | ' |
$0.07-0.56 [Member] | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Exercise Price | 0.07 | ' | ' | ' |
Exercise Price | 0.56 | ' | ' | ' |
Options Outstanding | 672,978 | ' | ' | ' |
Options Exercisable | 672,978 | ' | ' | ' |
Weighted Average Remaining Contractual Term | '3 years 1 month 6 days | ' | ' | ' |
$0.63-0.77 [Member] | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Exercise Price | 0.63 | ' | ' | ' |
Exercise Price | 0.77 | ' | ' | ' |
Options Outstanding | 485,749 | ' | ' | ' |
Options Exercisable | 458,198 | ' | ' | ' |
Weighted Average Remaining Contractual Term | '6 years 3 months 18 days | ' | ' | ' |
$2.10 [Member] | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Exercise Price | 2.1 | ' | ' | ' |
Options Outstanding | 891,680 | ' | ' | ' |
Options Exercisable | 795,126 | ' | ' | ' |
Weighted Average Remaining Contractual Term | '7 years 8 months 12 days | ' | ' | ' |
$5.11-10.00 [Member] | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Exercise Price | 5.11 | ' | ' | ' |
Exercise Price | 10 | ' | ' | ' |
Options Outstanding | 1,124,382 | ' | ' | ' |
Options Exercisable | 179,482 | ' | ' | ' |
Weighted Average Remaining Contractual Term | '9 years 1 month 6 days | ' | ' | ' |
$10.78 [Member] | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Exercise Price | 10.78 | ' | ' | ' |
Options Outstanding | 112,483 | ' | ' | ' |
Weighted Average Remaining Contractual Term | '10 years | ' | ' | ' |
Employee_Benefit_Plan_Addition
Employee Benefit Plan - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Compensation And Retirement Disclosure [Abstract] | ' | ' | ' |
Employee Benefit Plan, Cost | $0.60 | $0.80 | $0.50 |
Income_Taxes_Summary_of_Income
Income Taxes - Summary of Income Tax Expense (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Current: | ' | ' | ' |
Federal | ' | ' | ' |
State | 218 | ' | ' |
Foreign | 2,328 | 1,152 | 1,330 |
Total current | 2,546 | 1,152 | 1,330 |
Deferred: | ' | ' | ' |
Federal | ' | ' | ' |
State | -50 | ' | ' |
Foreign | ' | ' | ' |
Total deferred | ' | ' | ' |
Income tax expense | $2,496 | $1,152 | $1,330 |
Income_Taxes_Schedule_of_Incom
Income Taxes - Schedule of Income (loss) Before Income Tax Expense (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Domestic | ($12,947) | ($18,941) | ($17,576) |
Foreign | 153 | 4,524 | -2,852 |
Loss before income tax | ($12,794) | ($14,417) | ($20,428) |
Income_Taxes_Components_of_Def
Income Taxes - Components of Deferred Tax Assets and Liabilities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred tax assets | ' | ' |
Net operating loss carryforwards | $35,918 | $43,196 |
Deferred revenue | 2,741 | 1,038 |
Accrued expenses | 1,696 | 1,159 |
Allowance for bad debt | 149 | 102 |
Start-up costs | 1,057 | 1,239 |
Depreciation of property and equipment | 30 | ' |
Unrealized gain/loss on foreign currency translations | 411 | 165 |
Research and development credit | 2,010 | 833 |
Inventories | 1,032 | 105 |
Other | 115 | 211 |
Total deferred tax assets | 45,159 | 48,048 |
Deferred tax liabilities | ' | ' |
Amortization of intangible assets | -1,472 | -1,178 |
Unrealized gain/loss on foreign currency translations | ' | ' |
Prepaid items | -233 | ' |
Other | ' | -72 |
Total deferred tax liabilities | -1,705 | -1,250 |
Net deferred tax assets | 43,454 | 46,798 |
Valuation allowance | -43,404 | -46,798 |
Net deferred tax assets | $50 | ' |
Income_Taxes_Reconciliation_of
Income Taxes - Reconciliation of Federal Statutory Income Tax Rate to Effective Income Tax Rate (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Computed tax at statutory rates: | ($4,478) | ($5,046) | ($7,150) |
Permanent differences | -122 | 362 | 683 |
Difference resulting from state income taxes, net of federal income tax benefits | 128 | -337 | -661 |
Change in valuation allowance | -7,453 | 4,678 | 8,115 |
Effect of tax credits | -1,954 | -100 | -1,076 |
Foreign tax differential | -556 | 922 | 900 |
Uncertain tax positions | 404 | ' | 819 |
Change in control limitations on net operating losses | 12,824 | ' | ' |
Foreign withholding taxes | 1,342 | ' | ' |
Change in tax rates | 1,881 | ' | ' |
Other, net | 480 | 673 | -300 |
Income tax expense | $2,496 | $1,152 | $1,330 |
Computed tax at statutory rates: | 35.00% | 35.00% | 35.00% |
Permanent differences | 1.00% | -3.00% | -3.00% |
Difference resulting from state income taxes, net of federal income tax benefits | -1.00% | 2.00% | 3.00% |
Change in valuation allowance | 58.30% | -32.00% | -40.00% |
Effect of tax credits | 15.30% | 1.00% | 5.00% |
Foreign tax differential | 4.30% | -6.00% | -4.00% |
Uncertain tax positions | -3.20% | 0.00% | -4.00% |
Change in control limitations on net operating losses | -100.20% | 0.00% | 0.00% |
Foreign withholding taxes | -10.50% | 0.00% | 0.00% |
Change in tax rates | -14.70% | 0.00% | 0.00% |
Other, net | -3.80% | -5.00% | 1.00% |
Total | -19.50% | -8.00% | -7.00% |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Operating Loss Carryforwards [Line Items] | ' |
Reduction of net operating loss carryforwards | $12,824,000 |
Write-off of foreign withholding taxes | 1,342,000 |
Cumulative interest related to income tax matters | 400,000 |
Interest expense related to income tax matters | 100,000 |
Undistributed earnings of foreign subsidiaries | 11,500,000 |
Texas [Member] | ' |
Operating Loss Carryforwards [Line Items] | ' |
Net deferred tax asset | 50,000 |
Minimum [Member] | Research Tax Credit Carryforward [Member] | ' |
Operating Loss Carryforwards [Line Items] | ' |
Tax credit carryforwards expiration date | 31-Dec-24 |
Maximum [Member] | Research Tax Credit Carryforward [Member] | ' |
Operating Loss Carryforwards [Line Items] | ' |
Tax credit carryforwards expiration date | 31-Dec-33 |
Federal [Member] | ' |
Operating Loss Carryforwards [Line Items] | ' |
Net operating loss carryforwards | 91,500,000 |
Reduction of net operating loss carryforwards | 8,400,000 |
Federal [Member] | Research Tax Credit Carryforward [Member] | ' |
Operating Loss Carryforwards [Line Items] | ' |
Research and development credit carried forward | 1,200,000 |
Federal [Member] | Minimum [Member] | ' |
Operating Loss Carryforwards [Line Items] | ' |
Net operating loss carryforwards expiration date | 31-Dec-19 |
Federal [Member] | Maximum [Member] | ' |
Operating Loss Carryforwards [Line Items] | ' |
Net operating loss carryforwards expiration date | 31-Dec-33 |
Foreign Tax Authority [Member] | ' |
Operating Loss Carryforwards [Line Items] | ' |
Net operating loss carryforwards | 16,300,000 |
Reduction of net operating loss carryforwards | 40,400,000 |
Foreign Tax Authority [Member] | Minimum [Member] | ' |
Operating Loss Carryforwards [Line Items] | ' |
Net operating loss carryforwards expiration date | 31-Dec-14 |
Foreign Tax Authority [Member] | Maximum [Member] | ' |
Operating Loss Carryforwards [Line Items] | ' |
Net operating loss carryforwards expiration date | 31-Dec-22 |
Foreign Tax Authority [Member] | No Expiration Date [Member] | ' |
Operating Loss Carryforwards [Line Items] | ' |
Net operating loss carryforwards | 12,500,000 |
Foreign Tax Authority [Member] | Subject To Expiration [Member] | ' |
Operating Loss Carryforwards [Line Items] | ' |
Net operating loss carryforwards | 3,800,000 |
Canadian Federal Tax Credit Carryforward [Member] | Research Tax Credit Carryforward [Member] | ' |
Operating Loss Carryforwards [Line Items] | ' |
Research and development credit carried forward | $2,300,000 |
Income_Taxes_Unrecognized_Tax_
Income Taxes - Unrecognized Tax Benefits (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Income Tax Disclosure [Abstract] | ' |
Unrecognized income tax benefits beginning of year | $3,053 |
Additions to unrecognized tax benefits taken during the period | 303 |
Additions to unrecognized tax benefits as a result of positions taken in prior periods | ' |
Decrease in unrecognized tax benefits relating to settlements with taxing authorities | ' |
Reductions to unrecognized tax benefits as a result of a lapse of the applicable statute of limitations | ' |
Unrecognized income tax benefits at end of year | $3,356 |
Financial_Instruments_Addition
Financial Instruments - Additional Information (Detail) (Customer [Member]) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Customer | Customer | Customer | |
Accounts Receivable [Member] | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Number of customers | 2 | 1 | ' |
Concentration risk benchmark | 'More than 10% of the overall account receivable balance | 'More than 10% of the overall account receivable balance | ' |
Concentration credit risk | 0.00% | 0.00% | ' |
Revenues [Member] | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Number of customers | 4 | 4 | 3 |
Concentration credit risk | 58.00% | 46.00% | 49.00% |
Segment_and_Geographic_Informa2
Segment and Geographic Information - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2013 | |
Segment | |
Segment Reporting [Abstract] | ' |
Number of operating segments | 1 |
Segment_and_Geographic_Informa3
Segment and Geographic Information - Schedule of Revenues and Long-Lived Assets by Geographic Region (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Net revenue | $101,308 | $73,840 | $49,504 |
Long-Lived Assets | 11,122 | 12,556 | 10,231 |
North America [Member] | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Net revenue | 48,130 | 37,314 | 26,820 |
Long-Lived Assets | 8,475 | 9,627 | 6,844 |
EMEA (or Europe, Middle East and Africa) [Member] | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Net revenue | 38,469 | 20,547 | 13,665 |
Long-Lived Assets | 1,888 | 2,314 | 2,841 |
APAC (or Asia-Pacific) [Member] | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Net revenue | 14,709 | 15,979 | 9,019 |
Long-Lived Assets | $759 | $615 | $546 |
Quarterly_Financial_Data_unaud2
Quarterly Financial Data (unaudited) - Selected Quarterly Financial Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Quarterly Financial Information Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Revenues | $27,147 | $25,971 | $25,752 | $22,438 | $16,783 | $17,108 | $19,027 | $20,922 | ' | ' | ' |
Gross Profit | 15,737 | 12,449 | 13,492 | 14,457 | 9,383 | 9,140 | 11,776 | 13,082 | 56,135 | 43,381 | 18,720 |
Operating loss | -1,735 | -3,407 | -869 | -1,697 | -5,588 | -4,432 | -2,130 | -2,413 | -7,708 | -14,563 | -19,185 |
Net loss | ($2,842) | ($4,513) | ($3,641) | ($4,294) | ($6,501) | ($3,418) | ($3,517) | ($2,133) | ($15,290) | ($15,569) | ($21,758) |
Net loss per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic and diluted | ($0.22) | ($3.35) | ($2.72) | ($3.21) | ($4.87) | ($2.61) | ($2.76) | ($1.74) | ($3.57) | ($12.09) | ($18.82) |