Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Feb. 26, 2015 | Jun. 30, 2014 |
Document And Entity Information [Abstract] | |||
Trading Symbol | MVNR | ||
Entity Registrant Name | MAVENIR SYSTEMS INC | ||
Entity Central Index Key | 1361470 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Non-accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | FALSE | ||
Entity Common Stock, Shares Outstanding | 28,975,992 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $373.60 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $54,699 | $38,930 |
Accounts receivable, net of allowance of $269 and $587 at December 31, 2014, and December 31, 2013, respectively | 38,525 | 23,641 |
Unbilled revenue | 13,714 | 11,213 |
Inventories | 3,853 | 7,109 |
Prepaid expenses and other current assets | 2,434 | 3,614 |
Deferred contract costs | 5,705 | 9,313 |
Total current assets | 118,930 | 93,820 |
Non-current assets: | ||
Property and equipment, net | 6,598 | 5,054 |
Intangible assets, net | 8,180 | 5,202 |
Deposits and other assets | 1,977 | 1,657 |
Deferred tax assets | 1,008 | 0 |
Goodwill | 2,828 | 866 |
Total assets | 139,521 | 106,599 |
Current liabilities: | ||
Trade accounts payable | 7,573 | 7,152 |
Accrued liabilities | 17,844 | 11,939 |
Deferred revenue | 15,671 | 15,417 |
Income tax payable | 0 | 765 |
Current portion of long-term debt | 5,044 | 0 |
Total current liabilities | 46,132 | 35,273 |
Non-current liabilities: | ||
Uncertain tax positions | 3,051 | 3,153 |
Long-term deferred revenue and other liabilities | 1,818 | 719 |
Long-term debt | 21,797 | 23,423 |
Total liabilities | 72,798 | 62,568 |
Commitments and contingencies | ||
Shareholders’ equity: | ||
Common stock, $0.001 par value. 300,000 shares authorized; 28,915 and 23,421 shares issued and outstanding at December 31, 2014, and December 31, 2013, respectively. | 29 | 23 |
Additional paid-in capital | 202,662 | 155,198 |
Accumulated deficit | -138,223 | -112,187 |
Accumulated other comprehensive income | 2,255 | 997 |
Total shareholders’ equity | 66,723 | 44,031 |
Total liabilities and shareholders’ equity | $139,521 | $106,599 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Allowance for accounts receivable | $269 | $587 |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 28,915,000 | 23,421,000 |
Common stock, shares outstanding | 28,915,000 | 23,421,000 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations and Comprehensive Loss (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues | |||
Software products | $104,216 | $79,342 | $52,409 |
Maintenance | 25,579 | 21,966 | 21,431 |
Total revenues | 129,795 | 101,308 | 73,840 |
Cost of revenues | |||
Software products | 46,102 | 35,971 | 23,891 |
Maintenance | 12,747 | 9,202 | 6,568 |
Total cost of revenues | 58,849 | 45,173 | 30,459 |
Gross profit | 70,946 | 56,135 | 43,381 |
Operating expenses: | |||
Research and development | 30,459 | 22,775 | 23,312 |
Sales and marketing | 34,208 | 20,485 | 20,580 |
General and administrative | 23,351 | 20,583 | 14,052 |
Total operating expenses | 88,018 | 63,843 | 57,944 |
Operating loss | -17,072 | -7,708 | -14,563 |
Other expense (income): | |||
Interest and other income | -102 | -18 | -10 |
Interest and other expense | 2,068 | 3,203 | 393 |
Loss on early extinguishment of debt | 1,783 | 0 | 0 |
Foreign exchange loss (gain) | 4,699 | 1,901 | -529 |
Total other expense (income), net | 8,448 | 5,086 | -146 |
Loss before income tax | -25,520 | -12,794 | -14,417 |
Income tax (benefit) expense | 516 | 2,496 | 1,152 |
Net loss | -26,036 | -15,290 | -15,569 |
Other comprehensive income (loss) | |||
Foreign currency translation adjustments | 1,258 | -569 | 387 |
Total comprehensive loss | ($24,778) | ($15,859) | ($15,182) |
Net loss per common share: | |||
Basic (in dollar per shares) | ($1) | ($3.57) | ($12.09) |
Diluted (in dollars per share) | ($1) | ($3.57) | ($12.09) |
Weighted average common shares outstanding: | |||
Basic and diluted (in shares) | 25,988 | 4,278 | 1,288 |
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, unless otherwise specified | |||||
Beginning Balance at Dec. 31, 2011 | ($78,302) | $1 | $1,846 | ($81,328) | $1,179 |
Beginning Balance, (in shares) at Dec. 31, 2011 | 1,216,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Exercise of stock options, (in shares) | 121,000 | 122,000 | |||
Exercise of stock options | 73 | 73 | |||
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 | 2,535 | -96,897 | 1,566 |
Ending Balance, (in shares) at Dec. 31, 2012 | 1,338,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock net of offering costs, (in shares) | 5,466,000 | ||||
Issuance of common stock net of offering costs | 44,765 | 6 | 44,759 | ||
Conversion of preferred stock to common stock upon initial public offering, (in shares) | 16,453,000 | ||||
Conversion of preferred stock to common stock upon initial public offering | 104,558 | 16 | 104,542 | ||
Exercise of stock options, (in shares) | 163,000 | 163,000 | |||
Exercise of stock options | 91 | 91 | |||
Stock-based compensation expense | 1,630 | 1,630 | |||
Warrants exercised, (in shares) | 1,000 | ||||
Warrants exercised | 7 | 7 | |||
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 | 155,198 | -112,187 | 997 |
Ending Balance, (in shares) at Dec. 31, 2013 | 23,421,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock net of offering costs, (in shares) | 4,090,000 | ||||
Issuance of common stock net of offering costs | 41,686 | 4 | 41,682 | ||
Exercise of stock options, (in shares) | 558,000 | 558,000 | |||
Exercise of stock options | 1,154 | 1 | 1,153 | ||
Stock-based compensation expense | 4,555 | 4,555 | |||
Warrants exercised, (in shares) | 846,000 | ||||
Warrants exercised | 75 | 1 | 74 | ||
Net loss | -26,036 | -26,036 | |||
Foreign currency translation adjustment | 1,258 | 1,258 | |||
Ending Balance at Dec. 31, 2014 | $66,723 | $29 | $202,662 | ($138,223) | $2,255 |
Ending Balance, (in shares) at Dec. 31, 2014 | 28,915,000 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating activities: | |||
Net loss | ($26,036) | ($15,290) | ($15,569) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation of property and equipment | 3,345 | 2,472 | 1,527 |
Amortization of intangible assets | 2,079 | 1,534 | 2,521 |
Amortization of debt discount | 122 | 357 | 25 |
Provision for bad debt | -281 | 537 | 199 |
Stock-based compensation expense | 4,555 | 1,630 | 291 |
Unrealized foreign currency loss/(gain) | 3,754 | 74 | -1,194 |
Loss on early extinguishment of debt | 1,783 | 0 | 0 |
Write-off of assets | 61 | 2 | 281 |
Deferred income tax | -602 | -50 | 0 |
Changes in operating assets and liabilities: | |||
Accounts receivable | -15,736 | -8,565 | -103 |
Unbilled revenue | -3,143 | -1,480 | -2,735 |
Deposits and other assets | -1,167 | -327 | 1,126 |
Inventories | 4,740 | -4,854 | -20 |
Prepaid expenses | 1,937 | 2,290 | -3,556 |
Deferred contract costs | 3,279 | -3,821 | -1,770 |
Deferred revenues | -757 | 3,151 | -9,734 |
Accounts payable and accrued liabilities | 4,763 | 1,842 | 6,324 |
Net cash used in operating activities | -17,304 | -20,498 | -22,387 |
Investing activities: | |||
Acquisition of Stoke, net of cash acquired | -5,225 | 0 | 0 |
Purchases of property and equipment | -5,039 | -2,798 | -5,217 |
Net cash used in investing activities | -10,264 | -2,798 | -5,217 |
Financing activities: | |||
Proceeds from initial public offering, net of offering costs | 0 | 45,348 | 0 |
Proceeds from follow-on public offering, net of offering costs | 41,686 | 0 | 0 |
Borrowing of long-term debt | 26,900 | 27,000 | 5,000 |
Repayments of long-term debt | -15,000 | -17,000 | 0 |
Borrowing from line of credit | 0 | 0 | 13,000 |
Repayments of line of credit borrowing | -10,000 | 0 | -3,814 |
Exercise of options and warrants to purchase common stock | 1,228 | 91 | 73 |
Net cash provided by financing activities | 44,814 | 55,439 | 14,259 |
Effect of foreign currency exchange rate changes on cash and cash equivalents | -1,477 | -615 | 1,281 |
Net increase (decrease) in cash and cash equivalents | 15,769 | 31,528 | -12,064 |
Cash and cash equivalents at beginning of year | 38,930 | 7,402 | 19,466 |
Cash and cash equivalents at end of year | 54,699 | 38,930 | 7,402 |
Supplemental cash flow information: | |||
Cash paid for interest | 1,454 | 2,449 | 83 |
Income tax payments, net | 1,000 | 346 | 47 |
Non-cash financing activities | |||
Conversion of preferred stock into common stock | 0 | 104,558 | 0 |
Unpaid offering costs in additional paid-in-capital | 0 | 583 | 0 |
Issuance of warrants | 0 | 1,634 | 325 |
Cashless exercise of warrants | $1 | $7 | $0 |
Description_of_the_Business_an
Description of the Business and Basis of Presentation | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||
Description of the Business and Basis of Presentation | Description of the Business and Basis of Presentation | |||||||||||
Description of Business | ||||||||||||
Throughout these consolidated financial statements, Mavenir Systems, Inc. is referred to as “Mavenir,” the “Company,” “we,” “us” and “our.” | ||||||||||||
Mavenir 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 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”). | ||||||||||||
We are headquartered in Richardson, Texas, and have research and development personnel located at our wholly-owned subsidiaries in China and India. Additionally, we have a sales and operations presence in the Asia Pacific (“APAC”) and the Europe, Middle East and Africa (“EMEA”) regions. | ||||||||||||
On November 18, 2014, we acquired Stoke, Inc., a Delaware corporation (the "Stoke Acquisition" or "Stoke"). Stoke provides mobile gateway solutions to the broadband network industry. The Stoke acquisition is included in the consolidated financial statements from the date of acquisition. | ||||||||||||
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. | ||||||||||||
Reclassifications | ||||||||||||
Certain prior year amounts have been reclassified to conform to current year presentation. Specifically, the beginning balance of our uncertain tax positions presented in Note 12 is now presented gross, in accordance with Financial Accounting Standard Board (“FASB”) Accounting Standards Codification (“ASC”) 740, Income Taxes, and the amounts are now presented separately as components of non-current liabilities on the consolidated balance sheet. | ||||||||||||
Additionally, at December 31, 2013, approximately $0.4 million of deferred revenue is now classified as a non-current liability. | ||||||||||||
Revision of Prior Period Financial Statements and Out-of-Period Adjustment | ||||||||||||
During our review of the three months ended March 31, 2014, we identified a non-cash error that originated in prior periods. The error related to performance-based warrants issued to a channel partner in 2008, earned in 2011 and exercised in April of 2014. The achievement of the performance milestone occurred in 2011 and would have resulted in a reduction to revenue of $1.3 million in 2011. We assessed the materiality of this error in accordance with the SEC guidance on considering the effects of prior period misstatements based on an analysis of quantitative and qualitative factors. Based on this analysis, we determined that the error was immaterial to the prior reporting periods affected and, therefore, amendments of reports previously filed with the SEC were not required. However, we have concluded that correcting the error in our 2014 financial statements would materially impact our results for the quarter ended March 31, 2014 and the year ending December 31, 2014. Accordingly, we have reflected the correction of this prior period error in the period in which it originated and revised our consolidated balance sheet as of December 31, 2013, as presented in this Annual Report on Form 10-K. In addition, a reduction to accumulated deficit has been reflected as an adjustment to the beginning balance for the earliest year presented. | ||||||||||||
The effect of the immaterial correction on the consolidated balance sheet as of December 31, 2013 is as follows (in thousands): | ||||||||||||
As Reported | Correction | As Revised | ||||||||||
Other shareholders’ equity | $ | 1,020 | $ | — | $ | 1,020 | ||||||
Additional paid-in capital | 153,878 | 1,320 | 155,198 | |||||||||
Accumulated deficit | (110,867 | ) | (1,320 | ) | $ | (112,187 | ) | |||||
Total shareholders’ equity | $ | 44,031 | $ | — | $ | 44,031 | ||||||
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||||
Summary of Significant Accounting Policies | 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”), Singapore Dollar (“SGD”), Japanese Yen ("JPY") and South Korean Won ("KRW"). | ||||||||||||||||
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 2014, 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 Beginning of Period | Charged to Costs and Expense | Deductions | Balance at End of Period | ||||||||||||
Year ended December 31, 2012 | $ | 641 | $ | 199 | $ | (458 | ) | $ | 382 | |||||||
Year ended December 31, 2013 | $ | 382 | $ | 537 | $ | (332 | ) | $ | 587 | |||||||
Year ended December 31, 2014 | $ | 587 | $ | (281 | ) | $ | (37 | ) | $ | 269 | ||||||
Revenue Recognition | ||||||||||||||||
We generate revenues from the sale of software, hardware, professional services, and product 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 contractual agreement, 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 guarantees to a limited number of large customers. When appropriate, a reserve based on specific identification is recorded for estimated reductions to revenues for potential customer claims. | ||||||||||||||||
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 the provisions of 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. | ||||||||||||||||
First, we determine if the contract's deliverables consist of tangible products that contain essential software elements and as such, are excluded from the software revenue recognition method of accounting. If the hardware included in the arrangement requires the software in order to be of value to the customer, then the hardware is considered tangible product with essential software elements. | ||||||||||||||||
Our software related products include software, non-essential hardware, maintenance, and typically involve significant professional services for customization and implementation of our software. We generally recognize all deliverables within our multiple element arrangements except maintenance using percentage of completion accounting for our projects based on hours incurred to date as a percentage of total budgeted hours. Revenue for hardware that is non-essential and not material to the project is recognized on a percentage of completion basis along with the software related products. Maintenance is allocated based on Vendor-Specific Objective Evidence (“VSOE”) using the residual method. | ||||||||||||||||
Our tangible products containing essential software MEAs typically 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 ratably over the term of coverage. All multiple elements with tangible products containing essential software, except maintenance, are recognized upon fulfillment of delivery and installation, which is typically customer acceptance and the total transaction price is allocated using the relative selling price method based on the Estimated Selling Price (“ESP”) for the accepted product and maintenance. | ||||||||||||||||
Certain of our software products are delivered under contracts, which generally require significant integration within a customer’s production and business system environment. As the customer agreements generally require significant production, modification, or customization of the software, we account for these agreements under the percentage-of-completion method based on 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 estimate 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 method of accounting, management must also make key judgments in areas such as estimated project revenue and costs, total and remaining project hours, and potential customer claims. Changes in job performance, job conditions, estimated profitability, final contract settlements, and the resolution of claims may result in revised job costs and income amounts from what was originally estimated. At the time a loss on a contract is expected, the entire amount of the estimated loss is accrued. | ||||||||||||||||
Software contracts that do not qualify for use of the percentage-of-completion method, when 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. | ||||||||||||||||
During the second quarter of 2014, we determined it was possible to reasonably estimate percentage-of-completion on our Next Generation products. Next Generation product contracts entered into before this were accounted for using the completed-contract method and amounts due were billed in accordance with the schedule specified in each contractual arrangement. In 2014 and before, the majority of legacy product software contracts were accounted for using the percentage-of-completion accounting method since we could reasonably estimate the efforts required. | ||||||||||||||||
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 is classified as unbilled revenue. Amounts received from customers pursuant to the terms specified in contracts, but for which revenue has not yet been recognized, are recorded as deferred revenue. We evaluate revenue recognition in accordance with ASC 605-45, Principal Agent Considerations, regarding gross versus net revenue recognition. We believe that our contractual arrangements meet the criteria for gross revenue recognition. | ||||||||||||||||
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. | ||||||||||||||||
Some of our software arrangements include services, such as training, not considered essential for the customer to be able to use the software for their purposes. 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 that is non-essential and not material to the project is recognized on a percentage-of-completion basis along with the software related products. | ||||||||||||||||
For software related products, each element of the arrangement is analyzed and a portion of the total arrangement fee is allocated 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. | ||||||||||||||||
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 finally on estimated selling price ("ESP") if neither VSOE nor TPE exist. | ||||||||||||||||
• | VSOE — For certain elements of an arrangement, VSOE is based on the price of the element in comparable transactions in which the element is sold separately. We determine VSOE based on our pricing and discounting practices for the specific product or service when it is sold separately, including consideration of 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 an MEA, we use TPE to determine the selling price. We determine TPE based on sales of comparable amounts of similar products or services offered by multiple third parties with consideration given to the degree of customization and similarity of the product or service sold. | |||||||||||||||
• | ESP — ESP 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 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 to determine ESP. | |||||||||||||||
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 when 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 based on their relative selling price and recognized based on the authoritative criteria. We consider the installation and delivery of our software products to be part of a single unit of accounting due to the complexity of installation and nature of the contractual arrangements. | ||||||||||||||||
Cost of Revenues | ||||||||||||||||
Cost of revenues consists of payroll-related costs for service personnel, contractor costs, third-party hardware costs, third-party license fees, and the cost of delivering product to customers. The costs associated with any product that does not yet meet the criteria to be recognized as revenue are deferred. | ||||||||||||||||
Unbilled Revenue | ||||||||||||||||
If final acceptance has occurred but we have not invoiced the customer, we account for the amount invoiced as unbilled revenue and recognize the revenues and related costs. Customers are billed in accordance with specific contract terms, which may differ from the rate at which revenues are earned. Revenue recognized in excess of the amount billed of $13.7 million and $11.2 million at December 31, 2014 and 2013, respectively, are classified as unbilled revenue. Amounts received from customers pursuant to the contractual terms, but for which revenue has not yet been earned, are recorded as deferred revenue. | ||||||||||||||||
Maintenance | ||||||||||||||||
Maintenance consists of PCS agreements and subsequent support services purchased by our customers after the initial support period. Our customers generally enter into PCS agreements when they purchase our products. Our PCS agreements range from three months 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 with the exception of customer specific, third-party costs, which are expensed ratably over the PCS term. We have established VSOE for our legacy software products. For our next generation products, rates for maintenance, including subsequent renewal rates, are established based on a specific percentage of the arrangement's fair value. For our tangible, products, which contain essential software, our customers generally enter into PCS arrangements at the time of purchase. Relative selling price for the support obligations for tangible products containing essential software is based on 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, 2014, 2013 and 2012, was $0.5 million, $0.2 million, and $0.3 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 is stated at cost and depreciated using the straight-line method over the estimated useful life of the respective asset of two to five years. Maintenance and repairs is 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 asset is estimated and compared with the carrying amount of the asset. If the sum of the estimated undiscounted cash flows is less than the carrying amount of the asset, an impairment loss is recorded. The impairment loss is measured by comparing the fair value of the asset with its carrying amount. 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 2014, 2013, and 2012. | ||||||||||||||||
Intangible Assets | ||||||||||||||||
Our intangible assets are primarily comprised of the intangible assets that we acquired from our acquisitions. Specifically, we recognized intangible assets for (i) contractual backlog; (ii) customer relationships; (iii) beneficial lease asset; and (iv) technology. | ||||||||||||||||
The intangible assets related to customer relationships are 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 assets related to technology is amortized on a straight-line basis over an estimated useful life of six years. The beneficial lease asset is being amortized over the life of the associated lease. | ||||||||||||||||
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 related to our intangible assets during 2014, 2013, and 2012. | ||||||||||||||||
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. | ||||||||||||||||
Accounting Standards Update ("ASU") No. 2011-08, Intangibles — Goodwill and Other (Topic 350): Testing Goodwill for Impairment (“ASU Topic 350”) permits an entity to make a qualitative assessment of whether it is more likely than not that a reporting unit’s fair value is less than its carrying amount before applying a two-step goodwill impairment test. This step is referred to as “step zero.” If an entity concludes that it is not likely that the fair value of the reporting unit is less than its carrying amount, it would not be required to perform a two-step impairment test for that reporting unit. The guidance lists certain factors to consider when making the qualitative assessment. In the event that the conclusion requires the two-step test, the first step compares the fair value of the reporting unit 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. 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 during 2014, 2013, and 2012. | ||||||||||||||||
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 majority of our net deferred tax assets have been fully reserved with a valuation allowance. With respect to Canada, China, our operations in India, and the State of Texas, management has determined that the realization of the deferred tax assets is more likely than not to occur, and has, therefore, released the respective valuation allowances in 2014. | ||||||||||||||||
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 are 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. | ||||||||||||||||
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. | ||||||||||||||||
Management has elected to recognize accrued interest and penalties related to uncertain tax positions as a component of income tax expense. | ||||||||||||||||
Fair Value of Financial Instruments | ||||||||||||||||
In accordance with ASC 825, Financial Instruments, we are required to disclose the fair value of financial instruments for which it is practical to estimate fair value. We calculate the fair value of financial instruments in accordance with 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. | ||||||||||||||||
ASC 820 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. These techniques involve judgment and, as a result, are not necessarily indicative of the amounts we would realize in a current market exchange. The use of different assumptions or estimation techniques may have a material effect on the estimated fair value amounts. | ||||||||||||||||
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 debt, are representative of their fair values due to their short maturities. We have elected not to carry our debt at fair value. | ||||||||||||||||
The carrying amounts and fair values of our borrowings at December 31, 2014 and 2013 are as follows (in thousands): | ||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||
Carrying | Fair Value | Carrying | Fair Value | |||||||||||||
Amount | Amount | |||||||||||||||
Silicon Valley Bank senior loan | $ | 26,900 | $ | 26,900 | $ | — | $ | — | ||||||||
Silicon Valley Bank subordinated loan | — | — | 10,000 | 10,900 | ||||||||||||
Silver Lake subordinated loan | — | — | 15,000 | 17,600 | ||||||||||||
Debt | $ | 26,900 | $ | 26,900 | $ | 25,000 | $ | 28,500 | ||||||||
The carrying amount of our debt at December 31, 2014 is representative of its fair value since the interest rate is market sensitive. The fair value of our debt at December 31, 2013 was estimated using Level 3 inputs and was based on discounting the remaining principal payments using current market rates for similar debt and consideration of credit and default 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, Japan, Malaysia, Singapore, Spain, South Korea and the United Kingdom. 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 | ||||||||||||||||
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 recorded at the rates of exchange prevailing during the period. We had $4.7 million of net transaction losses for 2014, $1.9 million of net transaction losses for 2013 and $0.5 million of net transaction gains for 2012. Currency translation adjustments are recorded as a component of other comprehensive income (loss). Intercompany foreign currency transactions that are not of a long-term investment nature affect functional currency cash flows and are accounted for as currency transaction gains and losses and included in determining net income (loss). Intercompany transactions are considered to be of a long-term investment nature if settlement is not planned or anticipated in the foreseeable future. | ||||||||||||||||
Net Loss per Common Share | ||||||||||||||||
Basic net loss per common share is computed by dividing the net loss available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted net loss per common share is computed by dividing the net loss 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 net 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. Generally accepted 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 following our acquisitions. 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 during 2014 totaled $0.1 million, which is included in general and administration in the consolidated statements of operations and comprehensive loss. No restructuring charges were incurred during 2013 or 2012. | ||||||||||||||||
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 period of time for which the instrument is expected to be outstanding; 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 and our employee stock purchase program as recorded in our consolidated statement of operations and comprehensive loss for 2014, 2013 and 2012 (in thousands): | ||||||||||||||||
Year Ended December 31, | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Cost of revenues | $ | 582 | $ | 187 | $ | — | ||||||||||
Research and development | 787 | 321 | — | |||||||||||||
Sales and marketing | 1,032 | 482 | — | |||||||||||||
General and administrative | 2,154 | 640 | 291 | |||||||||||||
Total | $ | 4,555 | $ | 1,630 | $ | 291 | ||||||||||
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 2014, 2013, and 2012, were $1.2 million, $0.8 million, and $0.7 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 May 2014, the FASB issued ASU 2014-9, Revenue from Contracts with Customers: Topic 606 (“ASU 2014-9”). ASU 2014-9 is intended to enhance comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets, improve disclosure to help users of financial statements better understand the nature, amount, timing, and uncertainty of revenue that is recognized, and provide guidance for transactions that are not currently addressed comprehensively. The standard is effective for fiscal years beginning after December 15, 2016, and interim periods therein, and does not allow for early adoption. Entities have the option of using either a full retrospective or modified retrospective approach for the adoption of the standard. The Company has begun the evaluation of the impact that the standard will have on its consolidated financial statements but has not yet selected a transition method. | ||||||||||||||||
In August 2014, the FASB issued ASU 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern ("ASU 2014-15"), which provides guidance for management to evaluate whether there are conditions or events that raise a substantial doubt about the entity's ability to continue as a going concern. ASU 2014-15 is effective for periods after December 15, 2016. We do not expect ASU 2014-15 to have a material impact on our consolidated financial statements or disclosures. | ||||||||||||||||
We have reviewed other recently issued, but not yet adopted, accounting standards in order to determine their effects, if any, on our consolidated results of operations, financial position and cash flows. |
Business_Combination
Business Combination | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Business Combinations [Abstract] | |||||||
Business Combination | Business Combination | ||||||
On November 18, 2014, we acquired all of the outstanding capital stock of Stoke for the purchase price of approximately $5.5 million. The Stoke Acquisition was funded through the use of cash on hand at Mavenir of $3.7 million and the proceeds of a $1.9 million addition to our loan with Silicon Valley Bank under a loan modification agreement. Under the terms of the loan modification, our term loan was increased from $25.0 million to $26.9 million and the interest rate was reduced by 0.50%, from prime plus 2.75% to prime plus 2.25%. We used the proceeds of the term loan increase to repay the existing Stoke bank loan and paid out approximately $2.9 million of cash on hand to, and on behalf of, the shareholders of Stoke. In addition, during October and November 2014, prior to the closing of the transaction, we advanced approximately $0.8 million in cash to provide operating cash to Stoke. | |||||||
Prior to the acquisition, Stoke was a provider of mobile gateway solutions to the broadband network industry and market leader in deployed LTE security gateways. Stoke was based in Santa Clara, CA and had an international presence in its’ served markets. This acquisition was completed to expand our global reach adding presence in markets like Japan and South Korea, enhance our security product portfolio with the addition of LTE security gateways, and entry into the small-cell market with high performance gateway products. | |||||||
The Stoke 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 $2.0 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 $0.4 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 Stoke’s net tangible and identifiable intangible assets was based upon the estimated fair value of those assets as of November 18, 2014. | |||||||
The following table presents the preliminary allocation of the total purchase price to the assets acquired and liabilities assumed at the date of the acquisition. The primary areas of the preliminary allocation that are not yet finalized are the fair value of income and non-income based taxes, and residual goodwill (in thousands): | |||||||
Cash and cash equivalents | $ | 321 | |||||
Accounts receivable | 62 | ||||||
Inventories | 1,484 | ||||||
Prepaid expenses | 693 | ||||||
Property, plant and equipment | 745 | ||||||
Intangible assets | 4,360 | ||||||
Deposits | 204 | ||||||
Accounts payable and other liabilities | (1,698 | ) | |||||
Deferred revenue | (2,576 | ) | |||||
Deferred tax liabilities | (79 | ) | |||||
Total identifiable net assets | 3,516 | ||||||
Goodwill | 2,030 | ||||||
Total consideration transferred | $ | 5,546 | |||||
As part of the purchase price allocation, we determined that the identifiable intangible assets were customer relationships, software technology, and a beneficial lease asset. We valued the customer relationships using the excess earnings method. We applied the relief-from-royalty method to estimate the fair value of the software technology. For the beneficial lease asset, we compared the rates under the Stoke lease to relevant market rates. These intangible assets are amortized with estimated useful lives ranging from 2 to 6 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 | Fair Value | Estimated Useful Life (Years) | |||||
(in thousands) | |||||||
Establish customer relationships asset value | $ | 2,580 | 6 | ||||
Establish software technology asset value | 1,460 | 6 | |||||
Establish beneficial lease asset value | 320 | 2.25 | |||||
Total | $ | 4,360 | |||||
Some of the more significant estimates and assumptions inherent in the estimates of the fair values of identifiable intangible assets include all assumptions associated with forecasting product profitability from the perspective of a market participant. Specifically: | |||||||
• | Revenue - we use historical, forecast, and industry or other sources of market data, including the number of units to be sold, selling prices, market penetration, market share, and year-over-year growth rates over the product life cycles. | ||||||
• | Cost of sales, research and development expenses, sales and marketing expenses and general administrative expenses - we use historical, forecast, industry, or other sources of market data, including any expected synergies that can be realized by a market participant. | ||||||
• | Estimated life of the asset - we assess the asset’s life cycle by considering the impact of technology changes and applicable compliance and regulatory requirements. | ||||||
• | Discount rates - we use a discount rate that is based on the weighted average cost of capital with adjustments to reflect the risks associated with the specific intangible assets, such as country risks and commercial risks. | ||||||
• | Customer attrition rates - we use historical and forecast data to determine the customer attrition rates and the expected customer life. | ||||||
The discount rates used in the intangible asset valuations ranged from 6.0% to 50.5% depending on the relative risk profile of the intangible assets. The customer attrition rates used in our valuation of customer relationship intangible assets were 5.0%. The royalty rate used in the valuation of the software technology intangible asset was 10.0%. All of these judgments and estimates can materially impact the fair values of intangible assets. | |||||||
Below are our selected unaudited pro forma results for the years ended December 31, 2014 and 2013 as if the acquisition occurred as of January 1, 2013. These results are not intended to reflect the actual operations had the acquisition occurred at January 1, 2013 (in thousands, except per share data). | |||||||
2014 | 2013 | ||||||
Revenues | $ | 136,187 | $ | 111,062 | |||
Net Loss | (39,432 | ) | (32,378 | ) | |||
Basic and diluted loss per common share | $ | (1.52 | ) | $ | (7.57 | ) | |
The amounts of revenue and earnings of Stoke included in our consolidated statement of operations and comprehensive loss from the acquisition date of November 18, 2014 are as follows (in thousands): | |||||||
2014 | |||||||
Revenue | $ | 649 | |||||
Net Loss | $ | (958 | ) |
Property_and_Equipment
Property and Equipment | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||
Property and Equipment | Property and Equipment | |||||||||
The following table presents the detail of property and equipment for the period ends presented (in thousands): | ||||||||||
Estimated | December 31, | |||||||||
Useful Life | 2014 | 2013 | ||||||||
Computer software | 3 years | $ | 5,161 | $ | 5,046 | |||||
Computer and lab equipment | 3 years | 12,750 | 8,917 | |||||||
Other equipment | 2-5 years | 2,286 | 1,468 | |||||||
Property and equipment, gross | 20,197 | 15,431 | ||||||||
Less: accumulated depreciation | (13,599 | ) | (10,377 | ) | ||||||
Property and equipment, net | $ | 6,598 | $ | 5,054 | ||||||
Property and equipment depreciation expense totaled $3.3 million, $2.5 million, and $1.5 million, for the years ended December 31, 2014, 2013, and 2012. |
Intangible_Assets_and_Goodwill
Intangible Assets and Goodwill | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||
Intangible Assets and Goodwill | Intangible Assets and Goodwill | |||||||||||||
Intangible assets primarily include the intangible assets that we acquired in acquisitions, including the acquisition of Stoke, (see Note 3 to the consolidated financial statements for further information). The intangible assets are being amortized using a patterns of consumption method based on the estimated cash flows associated with each asset. As a result, year-to-year amortization expense will vary with the associated estimated cash flows used in the valuation of these assets. 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, 2014 are as follows (in thousands): | ||||||||||||||
Description | Weighted Average | Gross Carrying | Accumulated | Net Carrying Amount | ||||||||||
Amortization period | Amount | Amortization | as of | |||||||||||
(in months) | 31-Dec-14 | |||||||||||||
Contractual backlog | 7 | $ | 1,292 | $ | (1,292 | ) | $ | — | ||||||
Customer relationships | 72 | 7,135 | (2,740 | ) | 4,395 | |||||||||
Technology | 72 | 2,213 | (498 | ) | 1,715 | |||||||||
Certification and licenses | 36 | 3,766 | (2,005 | ) | 1,761 | |||||||||
Beneficial lease | 27 | 320 | (11 | ) | 309 | |||||||||
Total | $ | 14,726 | $ | (6,546 | ) | $ | 8,180 | |||||||
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) | December 31, 2013 | |||||||||||||
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 | |||||||
Total amortization expense for the years ended December 31, 2014, 2013, and 2012, was $2.1 million, $1.5 million, and $2.5 million, respectively of which $1.1 million, $0.6 million, and $0, respectively, was included in cost of revenues related to software products and $1.0 million, $0.9 million, and $2.5 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, 2014 (in thousands): | ||||||||||||||
Years Ending December 31, | Amortization of | |||||||||||||
Intangible Assets | ||||||||||||||
2015 | $ | 2,649 | ||||||||||||
2016 | 2,350 | |||||||||||||
2017 | 1,123 | |||||||||||||
2018 | 990 | |||||||||||||
2019 | 646 | |||||||||||||
2020 | 422 | |||||||||||||
Total | $ | 8,180 | ||||||||||||
A summary of changes in our carrying value of goodwill is as follows (in thousands): | ||||||||||||||
Year ended December 31, | ||||||||||||||
2014 | 2013 | |||||||||||||
Balance, beginning of period | $ | 866 | $ | 923 | ||||||||||
Acquired goodwill | 2,030 | — | ||||||||||||
Foreign currency exchange translation | (68 | ) | (57 | ) | ||||||||||
Balance, end of period | $ | 2,828 | $ | 866 | ||||||||||
Accrued_Liabilities
Accrued Liabilities | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Payables and Accruals [Abstract] | ||||||||
Accrued Liabilities | Accrued Liabilities | |||||||
The following table presents the detail of accrued liabilities for the period ends presented (in thousands): | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Accrued payroll | $ | 10,163 | $ | 7,221 | ||||
Accrued expenses on contracts | 4,448 | 1,446 | ||||||
Accrued professional fees | 551 | 136 | ||||||
Other | 2,682 | 3,136 | ||||||
Total accrued liabilities | $ | 17,844 | $ | 11,939 | ||||
Debt
Debt | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Debt | Debt | |||||||
The following table presents the detail of debt for the period ends presented (in thousands): | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Silicon Valley Bank senior loan | $ | 26,900 | $ | — | ||||
Silicon Valley Bank subordinated loan | — | 10,000 | ||||||
Silver Lake Waterman subordinated loan | — | 15,000 | ||||||
Discount related to issuance of warrants | (59 | ) | (1,577 | ) | ||||
Total debt | 26,841 | 23,423 | ||||||
Less: current portion | 5,044 | — | ||||||
Long-term portion | $ | 21,797 | $ | 23,423 | ||||
We had $26.9 million and $25.0 million gross debt before discount of $0.1 million and $1.6 million, outstanding under our revolving credit facility and senior and subordinated loans as of December 31, 2014 and 2013, respectively. | ||||||||
Silicon Valley Bank Subordinated and Senior Loans | ||||||||
On October 18, 2012, we entered into loan agreements with Silicon Valley Bank (“SVB”). Under the agreements, we obtained two loans totaling $32.5 million. In February 2013, we amended these loans 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 loans included a $22.5 million Senior Loan (“Senior Loan”) secured by substantially all of our assets, including intellectual property. The Senior Loan had a term of three years at a floating rate of 1% above the U.S. prime rate, subject to a minimum interest rate of 4.25%. We also obtained a $10.0 million Subordinated Loan, also secured by substantially all of our assets including intellectual property that had a three years term at a fixed rate of 11%. | ||||||||
On March 6, 2014, we entered into an Amended and Restated Agreement with SVB to replace both the $22.5 million Senior Loan facility and the $10.0 million Subordinated Loan. The Amended and Restated Agreement includes a five-year term loan of $25.0 million (“Term Loan”), a $15.0 million secured revolving line of credit (“Revolver”) and a $5 million secured line for letters of credit, foreign exchange and cash management services. The Term Loan had an initial floating interest rate of 2.75% above the U.S. prime rate, subject to a minimum interest rate of 4.25% and is secured by substantially all of our assets, including intellectual property. The Term Loan provided for monthly payments of interest only until April 1, 2015; thereafter we were required to repay the outstanding principal amount in 48 monthly installments. The Term Loan has a maturity of March 1, 2019. If we prepay the Term Loan within one year of the Amended and Restated Loan Agreement, we will have to pay a prepayment premium of $250,000; thereafter, the Term Loan may be prepaid without penalty. | ||||||||
In accordance with ASC 470, Debt (“ASC 470”), we recorded a $0.3 million loss on early extinguishment of debt in 2014 related to the Amended and Restated Agreement. | ||||||||
In connection with the Stoke Acquisition, on November 19, 2014, we entered into a Consent, Joinder and Second Loan Modification Agreement with SVB ("Second Loan Modification Agreement"). Under the terms of the Second Loan Modification Agreement, the former Stoke, Inc. became a borrower under our loan agreements with SVB and granted a security interest to SVB in substantially all of its assets. Our Term Loan was increased from $25.0 million to $26.9 million, and the increase used to repay approximately $1.9 million of outstanding indebtedness owed by Stoke, Inc. to SVB. The interest rate on our Term Loan was reduced by 0.50%, from prime plus 2.75% to prime plus 2.25%, the time period during which the 1.0% prepayment penalty is in effect under the Term Loan was extended from March 6, 2015 through November 19, 2015, and the amount of the penalty was increased from $250,000 to $269,000. Upon successful achievement of one of two performance triggers, the interest rate will be reduced to 1.75% above the U.S. prime rate. The interest rate will be further reduced to 1.25% above the U.S. prime rate upon the successful achievement of the second performance trigger. The performance triggers are as follows: (i) our achievement, on a consolidated basis, of positive EBITDA, as defined, for two consecutive fiscal quarters, and (ii) the completion of an equity offering resulting in net proceeds of at least $50 million. | ||||||||
Under the Revolver, we may draw up to 80% of eligible domestic trade receivables, 70% of eligible foreign trade receivables and 35% of eligible accrued but unbilled accounts up to a maximum of $15.0 million. The Revolver has a three-year term and bears interest at a floating interest rate of 1% above the U.S. prime rate, subject to a minimum interest rate of 4.25% and is secured by substantially all of our assets, including intellectual property. We are also required to pay an unused facility fee, monthly in arrears, of 0.25% per annum of the unused amount of the Revolver. The Revolver may be prepaid at any time without penalty. As of December 31, 2014, we had no borrowings outstanding on the Revolver and had $15.0 million available. At December 31, 2014, the interest rate was 5.5%. | ||||||||
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, 2014, we were in default under of our minimum EBITDA covenant. We sought and obtained a waiver for this breach. 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 was scheduled to mature on June 30, 2017 and bore interest at 12% annually. On March 5, 2014, we repaid the balance of our Silver Lake Loan using funds from our initial public offering. | ||||||||
As of March 5, 2014, we had approximately $0.2 million in deferred costs and $1.3 million in debt discount related to the Silver Lake Loan on our consolidated balance sheet. The entire $1.5 million was recognized during the year ended December 31, 2014, as a loss on early extinguishment of debt related to the payoff of the Silver Lake Loan on March 5, 2014. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Commitments and Contingencies | Commitments and Contingencies | |||
Lease Commitments | ||||
We lease office space and equipment under operating leases expiring in various years through 2019 or later. Rent expense for the years ended December 31, 2014, 2013, and 2012 was $2.8 million, $2.1 million, and $2.4 million, respectively. | ||||
Future minimum lease payments under the non-cancelable operating leases as of December 31, 2014 are as follows (in thousands): | ||||
Years ending December 31, | ||||
2015 | $ | 3,456 | ||
2016 | 2,694 | |||
2017 | 1,307 | |||
2018 | 786 | |||
2019 | 519 | |||
Thereafter | 476 | |||
Total | $ | 9,238 | ||
Future minimum sublease rentals to be received under non-cancelable operating leases as of December 31, 2014 are $0.9 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 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, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
Loss per Common Share Applicable to Common Shareholders | 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, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Net loss | $ | (26,036 | ) | $ | (15,290 | ) | $ | (15,569 | ) | |||
Basic common shares: | ||||||||||||
Weighted average number of shares outstanding | 25,988 | 4,278 | 1,288 | |||||||||
Diluted common shares: | ||||||||||||
Weighted average shares used to compute diluted net loss per share | 25,988 | 4,278 | 1,288 | |||||||||
Net loss per share attributable to common stockholders: | ||||||||||||
Basic and diluted | $ | (1.00 | ) | $ | (3.57 | ) | $ | (12.09 | ) | |||
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 10, Shareholders’ Equity. | ||||||||||||
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 (in thousands): | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Convertible preferred stock | — | — | 16,452 | |||||||||
Stock options | 1,572 | 1,532 | 1,474 | |||||||||
Warrants | — | 1,233 | — | |||||||||
Shareholders_Equity_Deficit
Shareholders' Equity (Deficit) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Equity [Abstract] | |||||||||||||
Shareholders' Equity (Deficit) | Shareholders’ Equity | ||||||||||||
Initial Public offering | |||||||||||||
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. | |||||||||||||
Follow-on Public offering | |||||||||||||
On August 6, 2014, we closed a follow-on public offering, in which we sold 4,090,000 shares of common stock at a price to the public of $11.00 per share, before underwriting discounts and commissions. We raised approximately $41.7 million in net proceeds after deducting underwriting discounts and commissions of approximately $2.5 million and other estimated offering costs of approximately $0.8 million. | |||||||||||||
Common Stock | |||||||||||||
In preparation 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. Additionally, 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. | |||||||||||||
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. | |||||||||||||
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. Stock options are granted at a price per common share not less than the fair value at date of grant. Stock 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. Stock options granted generally are exercisable up to ten years from the date of grant. | |||||||||||||
The number of shares available for issuance under the 2013 Plan increases on January 1 of each calendar year during the term of the 2013 Plan by (i) an amount equal to the lesser of (A) 4.5% of the total number of common shares outstanding on the last trading day in December of the immediately preceding calendar year and (B) 2,857,776 shares, or (ii) an amount determined by the Board of Directors that is lower than the lesser determined by (i)(A) or (i)(B). At December 31, 2014, there were 1,073,231 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, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Expected dividends | — | % | — | % | — | % | |||||||
Risk-free interest rate (U.S. Treasury) | 2 | % | 1.8 | % | 1.7 | % | |||||||
Expected term | 6.3 | 6.3 | 6.3 | ||||||||||
Expected volatility | 60.9 | % | 57.5 | % | 62 | % | |||||||
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, except per share amounts): | |||||||||||||
Shares | Weighted | Weighted Average Remaining Contractual Term | Aggregate | ||||||||||
Average | (in years) | Intrinsic | |||||||||||
Exercise | Value | ||||||||||||
Price | |||||||||||||
Outstanding as of January 1, 2012 | 2,647 | $ | 1.12 | ||||||||||
Granted | 488 | 4.77 | |||||||||||
Exercised | (121 | ) | 0.59 | ||||||||||
Forfeited or expired | (317 | ) | 1.14 | ||||||||||
Outstanding as of December 31, 2012 | 2,697 | $ | 1.8 | 7.3 | $ | 16,465 | |||||||
Exercisable as of December 31, 2012 | 2,041 | $ | 1.16 | 6.6 | $ | 13,789 | |||||||
Shares | Weighted | Weighted Average Remaining Contractual Term | Aggregate | ||||||||||
Average | (in years) | Intrinsic | |||||||||||
Exercise | Value | ||||||||||||
Price | |||||||||||||
Outstanding as of January 1, 2013 | 2,697 | $ | 1.8 | ||||||||||
Granted | 880 | 9.56 | |||||||||||
Exercised | (163 | ) | 0.56 | ||||||||||
Forfeited or expired | (127 | ) | 3.88 | ||||||||||
Outstanding as of December 31, 2013 | 3,287 | $ | 3.86 | 7.2 | $ | 24,002 | |||||||
Exercisable as of December 31, 2013 | 2,106 | $ | 1.53 | 5.7 | $ | 17,622 | |||||||
Shares | Weighted | Weighted Average Remaining Contractual Term | Aggregate | ||||||||||
Average | (in years) | Intrinsic | |||||||||||
Exercise | Value | ||||||||||||
Price | |||||||||||||
Outstanding as of January 1, 2014 | 3,287 | $ | 3.86 | ||||||||||
Granted | 1,303 | 15.95 | |||||||||||
Exercised | (558 | ) | 2.07 | ||||||||||
Forfeited or expired | (206 | ) | 11.66 | ||||||||||
Outstanding as of December 31, 2014 | 3,826 | $ | 7.9 | 7.4 | $ | 24,648 | |||||||
Exercisable as of December 31, 2014 | 2,119 | $ | 3.8 | 6.1 | $ | 20,880 | |||||||
We granted stock options with a weighted-average grant date fair value per share during the years ended December 31, 2014, 2013, and 2012 of $9.30, $5.29, and $2.80, respectively. | |||||||||||||
The following table summarizes additional information about stock options outstanding at December 31, 2014: | |||||||||||||
Exercise Price | Options | Options | Weighted Average Remaining Contractual Term | ||||||||||
Outstanding | Exercisable | (in years) | |||||||||||
$ 0.42 - $ 0.56 | 421 | 421 | 2.1 | ||||||||||
$ 0.63 - $ 0.77 | 428 | 426 | 5.4 | ||||||||||
$ 2.10 - $ 2.10 | 700 | 664 | 7 | ||||||||||
$ 5.11 - $ 8.40 | 490 | 253 | 7.9 | ||||||||||
$10.00 - $10.00 | 642 | 193 | 8.8 | ||||||||||
$10.78 - $16.47 | 490 | 38 | 9.3 | ||||||||||
$18.09 - $18.09 | 655 | 124 | 9.2 | ||||||||||
3,826 | 2,119 | 7.4 | |||||||||||
The total intrinsic value of options exercised during the years ended December 31, 2014, 2013, and 2012, was $6.3 million, $1.4 million, and $0.5 million, respectively. | |||||||||||||
At December 31, 2014, there was $10.4 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 2.5 years. | |||||||||||||
Employee Stock Purchase Plan | |||||||||||||
In November 2014, we implemented an Employee Stock Purchase Plan ("ESPP") in accordance with the terms of the Amended and Restated Employee Stock Purchase Plan ("ESPP Plan"). Our ESPP has a six-month offering period, a 15% discount, and a six-month look-back feature. Initially, 482,143 shares of our common stock are reserved for issuance to our employees under the ESPP. The number of shares available for issuance under the ESPP increases on January 1 of each calendar year, beginning with the 2015 calendar year, during the term of the ESPP by an amount equal to 1.0% of the total number of common shares outstanding on the last trading day in December of the immediately preceding calendar year. The annual increase can not exceed 428,572 shares in any calendar year. | |||||||||||||
During an offering period, employees make contributions to the ESPP through payroll deductions. At the end of each offering period, we use the accumulated contributions to issue shares of our common stock to the participating employees. The issue price of those shares is equal to the lesser of (i) 85% of our stock price on the first day of the offering period, or (ii) 85% of our stock price on the purchase date. No participant may be issued more than $25,000 of common stock in any calendar year and the maximum number of shares a participant may be issued during a single offering period is 1,000 shares. The maximum number of shares issuable to all participants on any one purchase date is 312,500 shares. | |||||||||||||
We recognized approximately $0.1 million of stock-based compensation expense during the fourth quarter of 2014 as a result of our ESPP. | |||||||||||||
Warrants | |||||||||||||
In March 2014, we issued 44,340 shares of our common stock to SVB upon the exercise in full of a warrant held by SVB. The warrant gave SVB the right to purchase up to 64,286 shares of our common stock at $5.11 per share. The warrant was fully exercised in a "cashless" transaction pursuant to the terms of the agreement. | |||||||||||||
In April 2014, we issued 555,034 shares of our common stock to Cisco Systems, Inc. ("Cisco") upon the exercise in full of a warrant held by Cisco. The warrant gave Cisco the right to purchase up to 898,294 shares of our common stock at $6.6794 per share on the achievement of certain bookings milestones. The warrant was fully exercised in a "cashless" transaction pursuant to the terms of the agreement. | |||||||||||||
In May 2014, we issued 40,871 shares of our common stock to WestRiver Mezzanine Loans, LLC ("WestRiver") upon the exercise in full of a warrant held by WestRiver. The warrant gave WestRiver the right to purchase up to 64,285 shares of our common stock at $5.11 per share. The warrant was fully exercised in a "cashless" transaction pursuant to the terms of the agreement. | |||||||||||||
In June 2014, we issued 194,606 shares of our common stock to Silver Lake Waterman Fund, L.P. ("Silver Lake") upon the exercise in full of a warrant held by Silver Lake. The warrant gave Silver Lake the right to purchase up to 194,694 shares of our common stock at $0.007 per share. The warrant was fully exercised in a "cashless" transaction pursuant to the terms of the agreement. | |||||||||||||
In June 2014, we issued 11,228 shares of our common stock to Comerica Ventures Incorporated ("Comerica") upon the exercise in full of a warrant held by Comerica. The exercise price was $6.6794 per share, which resulted in proceeds of approximately $0.1 million. |
Employee_Benefit_Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plan | 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, 2014. 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, 2014, 2013, and 2012 was $0.7 million, $0.6 million, and $0.8 million respectively, and is included in operating expenses. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||
Income Taxes | Income Taxes | ||||||||||||||||||||
The following table summarizes the income tax expense (in thousands): | |||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Current: | |||||||||||||||||||||
Federal | $ | — | $ | — | $ | — | |||||||||||||||
State | (58 | ) | 218 | — | |||||||||||||||||
Foreign | 1,176 | 2,328 | 1,152 | ||||||||||||||||||
Total current | 1,118 | 2,546 | 1,152 | ||||||||||||||||||
Deferred: | |||||||||||||||||||||
Federal | — | — | — | ||||||||||||||||||
State | (2 | ) | (50 | ) | — | ||||||||||||||||
Foreign | (600 | ) | — | — | |||||||||||||||||
Total deferred | (602 | ) | (50 | ) | — | ||||||||||||||||
Income tax expense | $ | 516 | $ | 2,496 | $ | 1,152 | |||||||||||||||
The components of income (loss) before income tax expense consisted of the following (in thousands): | |||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Domestic | $ | (25,969 | ) | $ | (12,947 | ) | $ | (18,941 | ) | ||||||||||||
Foreign | 449 | 153 | 4,524 | ||||||||||||||||||
Total | $ | (25,520 | ) | $ | (12,794 | ) | $ | (14,417 | ) | ||||||||||||
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, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Deferred tax assets | |||||||||||||||||||||
Net operating loss carryforwards | $ | 43,234 | $ | 35,918 | |||||||||||||||||
Deferred revenue | 3,630 | 2,741 | |||||||||||||||||||
Accrued expenses | 3,336 | 1,696 | |||||||||||||||||||
Allowance for bad debt | 74 | 149 | |||||||||||||||||||
Start-up costs | 908 | 1,057 | |||||||||||||||||||
Depreciation of property and equipment | 80 | 30 | |||||||||||||||||||
Unrealized gain/loss on foreign currency translations | — | 411 | |||||||||||||||||||
Tax credit carryforwards | 2,039 | 2,010 | |||||||||||||||||||
Inventories | 3,035 | 1,032 | |||||||||||||||||||
Stock-based compensation | 672 | 231 | |||||||||||||||||||
Capitalized research and development | 12,692 | — | |||||||||||||||||||
Other | 64 | (116 | ) | ||||||||||||||||||
Total deferred tax assets | $ | 69,764 | $ | 45,159 | |||||||||||||||||
As of December 31, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Deferred tax liabilities | |||||||||||||||||||||
Amortization of intangible assets | $ | (2,397 | ) | $ | (1,472 | ) | |||||||||||||||
Unrealized gain/loss on foreign currency translations | (317 | ) | — | ||||||||||||||||||
Prepaid items | (145 | ) | (233 | ) | |||||||||||||||||
Other | (21 | ) | — | ||||||||||||||||||
Total deferred tax liabilities | (2,880 | ) | (1,705 | ) | |||||||||||||||||
Net deferred tax assets | 66,884 | 43,454 | |||||||||||||||||||
Valuation allowance | (66,107 | ) | (43,404 | ) | |||||||||||||||||
Net deferred tax assets | $ | 777 | $ | 50 | |||||||||||||||||
A reconciliation of the federal statutory income tax rate to the effective income tax rate is as follows (in thousands): | |||||||||||||||||||||
December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Amount | Percent | Amount | Percent | Amount | Percent | ||||||||||||||||
Computed tax at statutory rates: | $ | (8,677 | ) | 34 | % | $ | (4,478 | ) | 35 | % | $ | (5,046 | ) | 35 | % | ||||||
Permanent differences | 225 | (0.9 | )% | (122 | ) | 1 | % | 362 | (3.0 | )% | |||||||||||
Difference resulting from state income taxes, net of federal income tax benefits | (60 | ) | 0.2 | % | 128 | (1.0 | )% | (337 | ) | 2 | % | ||||||||||
Change in valuation allowance | 10,124 | (39.6 | )% | (7,453 | ) | 58.3 | % | 4,678 | (32.0 | )% | |||||||||||
Release of valuation allowance | (2,680 | ) | 10.5 | % | — | — | % | — | — | % | |||||||||||
Effect of tax credits | (586 | ) | 2.3 | % | (1,954 | ) | 15.3 | % | (100 | ) | 1 | % | |||||||||
Foreign tax differential | 432 | (1.7 | )% | (556 | ) | 4.3 | % | 922 | (6.0 | )% | |||||||||||
Uncertain tax positions | (142 | ) | 0.6 | % | 404 | (3.2 | )% | — | — | % | |||||||||||
Change in control limitations on net operating losses | — | — | % | 12,824 | (100.2 | )% | — | — | % | ||||||||||||
Foreign withholding taxes | 804 | (3.2 | )% | 1,342 | (10.5 | )% | — | — | % | ||||||||||||
Change in tax rates | 1,403 | (5.5 | )% | 1,881 | (14.7 | )% | — | — | % | ||||||||||||
Other, net | (327 | ) | 1.3 | % | 480 | (3.8 | )% | 673 | (5.0 | )% | |||||||||||
Total | $ | 516 | (2.0 | )% | $ | 2,496 | (19.5 | )% | $ | 1,152 | (8.0 | )% | |||||||||
At December 31, 2014, we had U.S. federal net operating loss carryforwards of $115.0 million. These losses expire in various years between 2019 and 2034, and are subject to limitations on their utilization to the extent of future taxable income. We had total foreign net operating loss carryforwards of $18.3 million. Of these foreign net operating losses, $15.3 million are not currently subject to expiration dates and the remainder, $3.0 million expire beginning in 2015 through 2034. A portion of the federal loss carryforwards include net operating losses that were acquired as part of our acquisition of Stoke, Inc. We have performed a preliminary Section 382 calculation and have determined that $57.0 million of the $62.0 million net operating losses acquired from Stoke will not be available to offset future taxable income, and have therefore not included them in our total U.S. federal net operating carryforwards of $115.0 million. The amount included may change, subject to finalizing a Section 382 study. Additionally, with the Stoke acquisition, we also acquired $6.2 million of research and development tax credit carryforwards, which we believe are fully limited under Section 383 and have, therefore, assigned them no benefit. We have available tax credit carryforwards of $1.3 million and $2.1 million, which can be used to reduce U.S. federal and Canadian federal tax, respectively. However, we have applied tax credits of $0.4 million and $1.3 million associated with unrecognized tax liabilities that expire between 2024 and 2034 to offset these credits, reducing their benefit. | |||||||||||||||||||||
We have recorded a full valuation allowance on all federal and foreign net operating losses, with the exception of the $1.0 million net operating loss associated with China. During 2014, we released the full valuation allowance on the net deferred tax assets associated with China and Canada. It is foreseeable that the income generated in these jurisdictions will allow for the full realization of the applicable deferred tax assets and thus a net deferred tax asset of $1.5 million was recorded in the period ended December 31, 2014. Additionally, the valuation allowance of $1.2 million associated with our operations in India was released during 2014, as these operations are now in a net deferred tax liability position, and such deferred tax liabilities are sufficient to offset the net deferred tax assets within the same future periods. The valuation allowance on the net deferred tax assets association with the State of Texas was released in 2013. The remaining net deferred tax assets of all other federal and foreign jurisdictions are still fully offset by a valuation allowance, which includes the net deferred tax assets associated with the acquisition of Stoke. The Stoke acquisition increased the valuation allowance be $15.1 million during the year ended December 31, 2014. Other notable changes to our valuation allowance during 2014 include an increase of $12.0 million due to current operations, a decrease of $1.4 million due to tax rate changes recorded for federal and foreign jurisdictions, and a $1.2 million decrease due to uncertain tax position liability offsets to net deferred tax assets. | |||||||||||||||||||||
During 2014, 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, $0.8 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 2011 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 2014 tax years generally remain subject to examination by federal and most state tax authorities. In foreign jurisdictions, varying tax years between 2006 through 2014 generally remain subject to examination by tax authorities. | |||||||||||||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31, 2014 and 2013 is as follows (in thousands): | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Beginning Balance at January 1, | $ | 4,207 | $ | 3,904 | |||||||||||||||||
Additions to unrecognized tax benefits taken during the period | 271 | 303 | |||||||||||||||||||
Additions to unrecognized tax benefits as a result of positions taken in prior periods | 1,806 | — | |||||||||||||||||||
Reductions to unrecognized benefits as a result of positions taken during the period | (2,273 | ) | — | ||||||||||||||||||
Additions to unrecognized tax benefits as a result of current year acquisitions | 1,696 | — | |||||||||||||||||||
Ending Balance at December 31, | $ | 5,707 | $ | 4,207 | |||||||||||||||||
During the quarter ended June 30, 2014, we revised the beginning balance of our uncertain tax positions to reflect a gross presentation, rather than a presentation net of our deferred tax liability offset. | |||||||||||||||||||||
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 uncertain tax positions as a component of income tax expense. Cumulative interest and penalties recorded to this liability for the period ended December 31, 2014 equals $1.4 million with $1.0 million recognized in income tax expense during the year ended December 31, 2014. | |||||||||||||||||||||
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 $21.0 million of undistributed earnings of foreign subsidiaries as of December 31, 2014. |
Financial_Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2014 | |
Investments, All Other Investments [Abstract] | |
Financial Instruments | 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, 2014 and 2013, two customer balances 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, 2014, one customer represented 39% of the total revenues. For the year ended December 31, 2013, four customers represented 58% of the total revenues. For the year ended December 31, 2012, four customers represented 46% of the total revenues. | |
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, 2014 | ||||||||
Segment Reporting [Abstract] | ||||||||
Segment and Geographic Information | 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-maker reviews 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 as of and for the year ended December 31 by geographic area (in thousands): | ||||||||
2014 | Revenues | Long-lived | ||||||
Assets | ||||||||
North America | $ | 71,479 | $ | 15,317 | ||||
EMEA (or Europe, Middle East and Africa) | 40,772 | 1,295 | ||||||
APAC (or Asia-Pacific) | 17,544 | 994 | ||||||
Consolidated Total | $ | 129,795 | $ | 17,606 | ||||
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 | ||||
Quarterly_Financial_Data_unaud
Quarterly Financial Data (unaudited) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||
Quarterly Financial Data (unaudited) | Quarterly Financial Data (unaudited) | |||||||||||||||
Three Months Ended, | ||||||||||||||||
Mar. 31, 2014 | June 30, 2014 | September 30, 2014 | 31-Dec-14 | |||||||||||||
(in thousands, except per share amounts) | ||||||||||||||||
Total Revenues | $ | 28,729 | $ | 33,287 | $ | 34,052 | $ | 33,727 | ||||||||
Gross Profit | 16,032 | 18,432 | 17,982 | 18,500 | ||||||||||||
Operating loss | (2,222 | ) | (2,230 | ) | (3,837 | ) | (8,783 | ) | ||||||||
Net loss | (4,045 | ) | (3,891 | ) | (5,805 | ) | (12,295 | ) | ||||||||
Net loss per share: | ||||||||||||||||
Basic and Diluted | $ | (0.17 | ) | $ | (0.16 | ) | $ | (0.21 | ) | $ | (0.43 | ) | ||||
Three Months Ended, | ||||||||||||||||
Mar. 31, 2013 | June 30, 2013 | September 30, 2013 | 31-Dec-13 | |||||||||||||
(in thousands, except per share amounts) | ||||||||||||||||
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 | ) |
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events |
Shares available for grant under the 2013 Plan increased by 1,301,176 shares on January 1, 2015, in accordance with the terms of the 2013 Plan. | |
Shares available for issuance under the ESPP increased by 289,150 shares on January 1, 2015, in accordance with the terms of the ESPP Plan. | |
In January 2015, we closed our acquisition of Ulticom, Inc. for total consideration of $20.0 million, subject to certain customary closing adjustments. We used cash on hand to fund the acquisition. The valuation of the assets acquired and liabilities assumed is currently in process. In connection with the closing of Ulticom, we amended our credit facility to extend the monthly interest only payments until April 2016. | |
On February 28, 2015, we entered into a definitive merger agreement in which Mitel Networks Corporation ("Mitel") will acquire all of our outstanding shares of common stock in a cash and stock deal valued at approximately $560.0 million (based on the closing price of Mitel shares on February 27, 2015). We expect the merger to close in the second quarter of 2015. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||||
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”), Singapore Dollar (“SGD”), Japanese Yen ("JPY") and South Korean Won ("KRW"). | ||||||||||||||||
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 2014, 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). | ||||||||||||||||
Revenue Recognition | Revenue Recognition | |||||||||||||||
We generate revenues from the sale of software, hardware, professional services, and product 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 contractual agreement, 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 guarantees to a limited number of large customers. When appropriate, a reserve based on specific identification is recorded for estimated reductions to revenues for potential customer claims. | ||||||||||||||||
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 the provisions of 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. | ||||||||||||||||
First, we determine if the contract's deliverables consist of tangible products that contain essential software elements and as such, are excluded from the software revenue recognition method of accounting. If the hardware included in the arrangement requires the software in order to be of value to the customer, then the hardware is considered tangible product with essential software elements. | ||||||||||||||||
Our software related products include software, non-essential hardware, maintenance, and typically involve significant professional services for customization and implementation of our software. We generally recognize all deliverables within our multiple element arrangements except maintenance using percentage of completion accounting for our projects based on hours incurred to date as a percentage of total budgeted hours. Revenue for hardware that is non-essential and not material to the project is recognized on a percentage of completion basis along with the software related products. Maintenance is allocated based on Vendor-Specific Objective Evidence (“VSOE”) using the residual method. | ||||||||||||||||
Our tangible products containing essential software MEAs typically 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 ratably over the term of coverage. All multiple elements with tangible products containing essential software, except maintenance, are recognized upon fulfillment of delivery and installation, which is typically customer acceptance and the total transaction price is allocated using the relative selling price method based on the Estimated Selling Price (“ESP”) for the accepted product and maintenance. | ||||||||||||||||
Certain of our software products are delivered under contracts, which generally require significant integration within a customer’s production and business system environment. As the customer agreements generally require significant production, modification, or customization of the software, we account for these agreements under the percentage-of-completion method based on 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 estimate 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 method of accounting, management must also make key judgments in areas such as estimated project revenue and costs, total and remaining project hours, and potential customer claims. Changes in job performance, job conditions, estimated profitability, final contract settlements, and the resolution of claims may result in revised job costs and income amounts from what was originally estimated. At the time a loss on a contract is expected, the entire amount of the estimated loss is accrued. | ||||||||||||||||
Software contracts that do not qualify for use of the percentage-of-completion method, when 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. | ||||||||||||||||
During the second quarter of 2014, we determined it was possible to reasonably estimate percentage-of-completion on our Next Generation products. Next Generation product contracts entered into before this were accounted for using the completed-contract method and amounts due were billed in accordance with the schedule specified in each contractual arrangement. In 2014 and before, the majority of legacy product software contracts were accounted for using the percentage-of-completion accounting method since we could reasonably estimate the efforts required. | ||||||||||||||||
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 is classified as unbilled revenue. Amounts received from customers pursuant to the terms specified in contracts, but for which revenue has not yet been recognized, are recorded as deferred revenue. We evaluate revenue recognition in accordance with ASC 605-45, Principal Agent Considerations, regarding gross versus net revenue recognition. We believe that our contractual arrangements meet the criteria for gross revenue recognition. | ||||||||||||||||
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. | ||||||||||||||||
Some of our software arrangements include services, such as training, not considered essential for the customer to be able to use the software for their purposes. 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 that is non-essential and not material to the project is recognized on a percentage-of-completion basis along with the software related products. | ||||||||||||||||
For software related products, each element of the arrangement is analyzed and a portion of the total arrangement fee is allocated 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. | ||||||||||||||||
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 finally on estimated selling price ("ESP") if neither VSOE nor TPE exist. | ||||||||||||||||
• | VSOE — For certain elements of an arrangement, VSOE is based on the price of the element in comparable transactions in which the element is sold separately. We determine VSOE based on our pricing and discounting practices for the specific product or service when it is sold separately, including consideration of 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 an MEA, we use TPE to determine the selling price. We determine TPE based on sales of comparable amounts of similar products or services offered by multiple third parties with consideration given to the degree of customization and similarity of the product or service sold. | |||||||||||||||
• | ESP — ESP 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 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 to determine ESP. | |||||||||||||||
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 when 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 based on their relative selling price and recognized based on the authoritative criteria. We consider the installation and delivery of our software products to be part of a single unit of accounting due to the complexity of installation and nature of the contractual arrangements. | ||||||||||||||||
Cost of Sales | Cost of Revenues | |||||||||||||||
Cost of revenues consists of payroll-related costs for service personnel, contractor costs, third-party hardware costs, third-party license fees, and the cost of delivering product to customers. The costs associated with any product that does not yet meet the criteria to be recognized as revenue are deferred. | ||||||||||||||||
Unbilled Revenue | Unbilled Revenue | |||||||||||||||
If final acceptance has occurred but we have not invoiced the customer, we account for the amount invoiced as unbilled revenue and recognize the revenues and related costs. Customers are billed in accordance with specific contract terms, which may differ from the rate at which revenues are earned. Revenue recognized in excess of the amount billed of $13.7 million and $11.2 million at December 31, 2014 and 2013, respectively, are classified as unbilled revenue. Amounts received from customers pursuant to the contractual terms, but for which revenue has not yet been earned, are recorded as deferred revenue. | ||||||||||||||||
Maintenance | Maintenance | |||||||||||||||
Maintenance consists of PCS agreements and subsequent support services purchased by our customers after the initial support period. Our customers generally enter into PCS agreements when they purchase our products. Our PCS agreements range from three months 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 with the exception of customer specific, third-party costs, which are expensed ratably over the PCS term. We have established VSOE for our legacy software products. For our next generation products, rates for maintenance, including subsequent renewal rates, are established based on a specific percentage of the arrangement's fair value. For our tangible, products, which contain essential software, our customers generally enter into PCS arrangements at the time of purchase. Relative selling price for the support obligations for tangible products containing essential software is based on 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, 2014, 2013 and 2012, was $0.5 million, $0.2 million, and $0.3 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 is stated at cost and depreciated using the straight-line method over the estimated useful life of the respective asset of two to five years. Maintenance and repairs is 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 asset is estimated and compared with the carrying amount of the asset. If the sum of the estimated undiscounted cash flows is less than the carrying amount of the asset, an impairment loss is recorded. The impairment loss is measured by comparing the fair value of the asset with its carrying amount. 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 2014, 2013, and 2012. | ||||||||||||||||
Intangible Assets | ||||||||||||||||
Our intangible assets are primarily comprised of the intangible assets that we acquired from our acquisitions. Specifically, we recognized intangible assets for (i) contractual backlog; (ii) customer relationships; (iii) beneficial lease asset; and (iv) technology. | ||||||||||||||||
The intangible assets related to customer relationships are 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 assets related to technology is amortized on a straight-line basis over an estimated useful life of six years. The beneficial lease asset is being amortized over the life of the associated lease. | ||||||||||||||||
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 related to our intangible assets during 2014, 2013, and 2012. | ||||||||||||||||
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. | ||||||||||||||||
Accounting Standards Update ("ASU") No. 2011-08, Intangibles — Goodwill and Other (Topic 350): Testing Goodwill for Impairment (“ASU Topic 350”) permits an entity to make a qualitative assessment of whether it is more likely than not that a reporting unit’s fair value is less than its carrying amount before applying a two-step goodwill impairment test. This step is referred to as “step zero.” If an entity concludes that it is not likely that the fair value of the reporting unit is less than its carrying amount, it would not be required to perform a two-step impairment test for that reporting unit. The guidance lists certain factors to consider when making the qualitative assessment. In the event that the conclusion requires the two-step test, the first step compares the fair value of the reporting unit 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. 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 during 2014, 2013, and 2012. | ||||||||||||||||
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 majority of our net deferred tax assets have been fully reserved with a valuation allowance. With respect to Canada, China, our operations in India, and the State of Texas, management has determined that the realization of the deferred tax assets is more likely than not to occur, and has, therefore, released the respective valuation allowances in 2014. | ||||||||||||||||
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 are 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. | ||||||||||||||||
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. | ||||||||||||||||
Management has elected to recognize accrued interest and penalties related to uncertain tax positions as a component of income tax expense. | ||||||||||||||||
Fair Value Measurements | In accordance with ASC 825, Financial Instruments, we are required to disclose the fair value of financial instruments for which it is practical to estimate fair value. We calculate the fair value of financial instruments in accordance with 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. | |||||||||||||||
ASC 820 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. These techniques involve judgment and, as a result, are not necessarily indicative of the amounts we would realize in a current market exchange. The use of different assumptions or estimation techniques may have a material effect on the estimated fair value amounts. | ||||||||||||||||
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 debt, are representative of their fair values due to their short maturities. We have elected not to carry our debt at fair value. | ||||||||||||||||
The carrying amounts and fair values of our borrowings at December 31, 2014 and 2013 are as follows (in thousands): | ||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||
Carrying | Fair Value | Carrying | Fair Value | |||||||||||||
Amount | Amount | |||||||||||||||
Silicon Valley Bank senior loan | $ | 26,900 | $ | 26,900 | $ | — | $ | — | ||||||||
Silicon Valley Bank subordinated loan | — | — | 10,000 | 10,900 | ||||||||||||
Silver Lake subordinated loan | — | — | 15,000 | 17,600 | ||||||||||||
Debt | $ | 26,900 | $ | 26,900 | $ | 25,000 | $ | 28,500 | ||||||||
The carrying amount of our debt at December 31, 2014 is representative of its fair value since the interest rate is market sensitive. The fair value of our debt at December 31, 2013 was estimated using Level 3 inputs and was based on discounting the remaining principal payments using current market rates for similar debt and consideration of credit and default risk. | ||||||||||||||||
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, Japan, Malaysia, Singapore, Spain, South Korea and the United Kingdom. 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 | Foreign Currency | |||||||||||||||
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 recorded at the rates of exchange prevailing during the period. We had $4.7 million of net transaction losses for 2014, $1.9 million of net transaction losses for 2013 and $0.5 million of net transaction gains for 2012. Currency translation adjustments are recorded as a component of other comprehensive income (loss). | ||||||||||||||||
Net Loss per Common Share | Net Loss per Common Share | |||||||||||||||
Basic net loss per common share is computed by dividing the net loss available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted net loss per common share is computed by dividing the net loss 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 net 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. Generally accepted 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 following our acquisitions. 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 during 2014 totaled $0.1 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 period of time for which the instrument is expected to be outstanding; and | |||||||||||||||
• | Weighted average expected volatility — measured using historical volatility of similar public entities for which share or option price information is available. | |||||||||||||||
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 2014, 2013, and 2012, were $1.2 million, $0.8 million, and $0.7 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 May 2014, the FASB issued ASU 2014-9, Revenue from Contracts with Customers: Topic 606 (“ASU 2014-9”). ASU 2014-9 is intended to enhance comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets, improve disclosure to help users of financial statements better understand the nature, amount, timing, and uncertainty of revenue that is recognized, and provide guidance for transactions that are not currently addressed comprehensively. The standard is effective for fiscal years beginning after December 15, 2016, and interim periods therein, and does not allow for early adoption. Entities have the option of using either a full retrospective or modified retrospective approach for the adoption of the standard. The Company has begun the evaluation of the impact that the standard will have on its consolidated financial statements but has not yet selected a transition method. | ||||||||||||||||
In August 2014, the FASB issued ASU 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern ("ASU 2014-15"), which provides guidance for management to evaluate whether there are conditions or events that raise a substantial doubt about the entity's ability to continue as a going concern. ASU 2014-15 is effective for periods after December 15, 2016. We do not expect ASU 2014-15 to have a material impact on our consolidated financial statements or disclosures. | ||||||||||||||||
We have reviewed other recently issued, but not yet adopted, accounting standards in order to determine their effects, if any, on our consolidated results of operations, financial position and cash flows. | ||||||||||||||||
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. | ||||||||||||||||
Reclassifications | Reclassifications | |||||||||||||||
Certain prior year amounts have been reclassified to conform to current year presentation. Specifically, the beginning balance of our uncertain tax positions presented in Note 12 is now presented gross, in accordance with Financial Accounting Standard Board (“FASB”) Accounting Standards Codification (“ASC”) 740, Income Taxes, and the amounts are now presented separately as components of non-current liabilities on the consolidated balance sheet. |
Description_of_the_Business_an1
Description of the Business and Basis of Presentation (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||
Schedule of Error Corrections and Prior Period Adjustments | The effect of the immaterial correction on the consolidated balance sheet as of December 31, 2013 is as follows (in thousands): | |||||||||||
As Reported | Correction | As Revised | ||||||||||
Other shareholders’ equity | $ | 1,020 | $ | — | $ | 1,020 | ||||||
Additional paid-in capital | 153,878 | 1,320 | 155,198 | |||||||||
Accumulated deficit | (110,867 | ) | (1,320 | ) | $ | (112,187 | ) | |||||
Total shareholders’ equity | $ | 44,031 | $ | — | $ | 44,031 | ||||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||||
Schedule of Accounts Receivable | Accounts outstanding longer than the contractual payment term are considered past due (in thousands). | |||||||||||||||
Allowance for doubtful accounts | Balance at Beginning of Period | Charged to Costs and Expense | Deductions | Balance at End of Period | ||||||||||||
Year ended December 31, 2012 | $ | 641 | $ | 199 | $ | (458 | ) | $ | 382 | |||||||
Year ended December 31, 2013 | $ | 382 | $ | 537 | $ | (332 | ) | $ | 587 | |||||||
Year ended December 31, 2014 | $ | 587 | $ | (281 | ) | $ | (37 | ) | $ | 269 | ||||||
Carrying Amounts and Fair Values of Long-Term Borrowings | The carrying amounts and fair values of our borrowings at December 31, 2014 and 2013 are as follows (in thousands): | |||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||
Carrying | Fair Value | Carrying | Fair Value | |||||||||||||
Amount | Amount | |||||||||||||||
Silicon Valley Bank senior loan | $ | 26,900 | $ | 26,900 | $ | — | $ | — | ||||||||
Silicon Valley Bank subordinated loan | — | — | 10,000 | 10,900 | ||||||||||||
Silver Lake subordinated loan | — | — | 15,000 | 17,600 | ||||||||||||
Debt | $ | 26,900 | $ | 26,900 | $ | 25,000 | $ | 28,500 | ||||||||
Schedule of Stock-Based Compensation Expense | The following table presents our stock-based compensation expense resulting from stock options and our employee stock purchase program as recorded in our consolidated statement of operations and comprehensive loss for 2014, 2013 and 2012 (in thousands): | |||||||||||||||
Year Ended December 31, | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Cost of revenues | $ | 582 | $ | 187 | $ | — | ||||||||||
Research and development | 787 | 321 | — | |||||||||||||
Sales and marketing | 1,032 | 482 | — | |||||||||||||
General and administrative | 2,154 | 640 | 291 | |||||||||||||
Total | $ | 4,555 | $ | 1,630 | $ | 291 | ||||||||||
Business_Combination_Tables
Business Combination (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Business Combinations [Abstract] | |||||||
Allocation of Total Purchase Price to Asset Acquired and Liabilities Assumed | The primary areas of the preliminary allocation that are not yet finalized are the fair value of income and non-income based taxes, and residual goodwill (in thousands): | ||||||
Cash and cash equivalents | $ | 321 | |||||
Accounts receivable | 62 | ||||||
Inventories | 1,484 | ||||||
Prepaid expenses | 693 | ||||||
Property, plant and equipment | 745 | ||||||
Intangible assets | 4,360 | ||||||
Deposits | 204 | ||||||
Accounts payable and other liabilities | (1,698 | ) | |||||
Deferred revenue | (2,576 | ) | |||||
Deferred tax liabilities | (79 | ) | |||||
Total identifiable net assets | 3,516 | ||||||
Goodwill | 2,030 | ||||||
Total consideration transferred | $ | 5,546 | |||||
Intangible Assets Amortized for Estimated Useful Lives | These intangible assets are amortized with estimated useful lives ranging from 2 to 6 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 | Fair Value | Estimated Useful Life (Years) | |||||
(in thousands) | |||||||
Establish customer relationships asset value | $ | 2,580 | 6 | ||||
Establish software technology asset value | 1,460 | 6 | |||||
Establish beneficial lease asset value | 320 | 2.25 | |||||
Total | $ | 4,360 | |||||
Unaudited Pro Forma Results as if Acquisition Occurred | Below are our selected unaudited pro forma results for the years ended December 31, 2014 and 2013 as if the acquisition occurred as of January 1, 2013. These results are not intended to reflect the actual operations had the acquisition occurred at January 1, 2013 (in thousands, except per share data). | ||||||
2014 | 2013 | ||||||
Revenues | $ | 136,187 | $ | 111,062 | |||
Net Loss | (39,432 | ) | (32,378 | ) | |||
Basic and diluted loss per common share | $ | (1.52 | ) | $ | (7.57 | ) | |
Schedule of Revenue and Earnings of Stoke included in Consolidated Statement of Operations and Comprehensive Loss | The amounts of revenue and earnings of Stoke included in our consolidated statement of operations and comprehensive loss from the acquisition date of November 18, 2014 are as follows (in thousands): | ||||||
2014 | |||||||
Revenue | $ | 649 | |||||
Net Loss | $ | (958 | ) |
Property_and_Equipment_Tables
Property and Equipment (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||
Schedule of Property and Equipment | ||||||||||
Estimated | December 31, | |||||||||
Useful Life | 2014 | 2013 | ||||||||
Computer software | 3 years | $ | 5,161 | $ | 5,046 | |||||
Computer and lab equipment | 3 years | 12,750 | 8,917 | |||||||
Other equipment | 2-5 years | 2,286 | 1,468 | |||||||
Property and equipment, gross | 20,197 | 15,431 | ||||||||
Less: accumulated depreciation | (13,599 | ) | (10,377 | ) | ||||||
Property and equipment, net | $ | 6,598 | $ | 5,054 | ||||||
Intangible_Assets_and_Goodwill1
Intangible Assets and Goodwill (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||
Summary of Intangible Assets | Intangible assets as of December 31, 2014 are as follows (in thousands): | |||||||||||||
Description | Weighted Average | Gross Carrying | Accumulated | Net Carrying Amount | ||||||||||
Amortization period | Amount | Amortization | as of | |||||||||||
(in months) | 31-Dec-14 | |||||||||||||
Contractual backlog | 7 | $ | 1,292 | $ | (1,292 | ) | $ | — | ||||||
Customer relationships | 72 | 7,135 | (2,740 | ) | 4,395 | |||||||||
Technology | 72 | 2,213 | (498 | ) | 1,715 | |||||||||
Certification and licenses | 36 | 3,766 | (2,005 | ) | 1,761 | |||||||||
Beneficial lease | 27 | 320 | (11 | ) | 309 | |||||||||
Total | $ | 14,726 | $ | (6,546 | ) | $ | 8,180 | |||||||
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) | December 31, 2013 | |||||||||||||
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 | |||||||
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, 2014 (in thousands): | |||||||||||||
Years Ending December 31, | Amortization of | |||||||||||||
Intangible Assets | ||||||||||||||
2015 | $ | 2,649 | ||||||||||||
2016 | 2,350 | |||||||||||||
2017 | 1,123 | |||||||||||||
2018 | 990 | |||||||||||||
2019 | 646 | |||||||||||||
2020 | 422 | |||||||||||||
Total | $ | 8,180 | ||||||||||||
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, | ||||||||||||||
2014 | 2013 | |||||||||||||
Balance, beginning of period | $ | 866 | $ | 923 | ||||||||||
Acquired goodwill | 2,030 | — | ||||||||||||
Foreign currency exchange translation | (68 | ) | (57 | ) | ||||||||||
Balance, end of period | $ | 2,828 | $ | 866 | ||||||||||
Accrued_Liabilities_Tables
Accrued Liabilities (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
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, | ||||||||
2014 | 2013 | |||||||
Accrued payroll | $ | 10,163 | $ | 7,221 | ||||
Accrued expenses on contracts | 4,448 | 1,446 | ||||||
Accrued professional fees | 551 | 136 | ||||||
Other | 2,682 | 3,136 | ||||||
Total accrued liabilities | $ | 17,844 | $ | 11,939 | ||||
Debt_Tables
Debt (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Schedule of Long Term Debt | The following table presents the detail of debt for the period ends presented (in thousands): | |||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Silicon Valley Bank senior loan | $ | 26,900 | $ | — | ||||
Silicon Valley Bank subordinated loan | — | 10,000 | ||||||
Silver Lake Waterman subordinated loan | — | 15,000 | ||||||
Discount related to issuance of warrants | (59 | ) | (1,577 | ) | ||||
Total debt | 26,841 | 23,423 | ||||||
Less: current portion | 5,044 | — | ||||||
Long-term portion | $ | 21,797 | $ | 23,423 | ||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
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, 2014 are as follows (in thousands): | |||
Years ending December 31, | ||||
2015 | $ | 3,456 | ||
2016 | 2,694 | |||
2017 | 1,307 | |||
2018 | 786 | |||
2019 | 519 | |||
Thereafter | 476 | |||
Total | $ | 9,238 | ||
Loss_per_Common_Share_Applicab1
Loss per Common Share Applicable to Common Shareholders (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
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, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Net loss | $ | (26,036 | ) | $ | (15,290 | ) | $ | (15,569 | ) | |||
Basic common shares: | ||||||||||||
Weighted average number of shares outstanding | 25,988 | 4,278 | 1,288 | |||||||||
Diluted common shares: | ||||||||||||
Weighted average shares used to compute diluted net loss per share | 25,988 | 4,278 | 1,288 | |||||||||
Net loss per share attributable to common stockholders: | ||||||||||||
Basic and diluted | $ | (1.00 | ) | $ | (3.57 | ) | $ | (12.09 | ) | |||
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 (in thousands): | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Convertible preferred stock | — | — | 16,452 | |||||||||
Stock options | 1,572 | 1,532 | 1,474 | |||||||||
Warrants | — | 1,233 | — | |||||||||
Shareholders_Equity_Deficit_Ta
Shareholders' Equity (Deficit) (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
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, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Expected dividends | — | % | — | % | — | % | |||||||
Risk-free interest rate (U.S. Treasury) | 2 | % | 1.8 | % | 1.7 | % | |||||||
Expected term | 6.3 | 6.3 | 6.3 | ||||||||||
Expected volatility | 60.9 | % | 57.5 | % | 62 | % | |||||||
Summary of Stock Option Activity | The following tables summarize the stock option activity for the periods presented (in thousands, except per share amounts): | ||||||||||||
Shares | Weighted | Weighted Average Remaining Contractual Term | Aggregate | ||||||||||
Average | (in years) | Intrinsic | |||||||||||
Exercise | Value | ||||||||||||
Price | |||||||||||||
Outstanding as of January 1, 2012 | 2,647 | $ | 1.12 | ||||||||||
Granted | 488 | 4.77 | |||||||||||
Exercised | (121 | ) | 0.59 | ||||||||||
Forfeited or expired | (317 | ) | 1.14 | ||||||||||
Outstanding as of December 31, 2012 | 2,697 | $ | 1.8 | 7.3 | $ | 16,465 | |||||||
Exercisable as of December 31, 2012 | 2,041 | $ | 1.16 | 6.6 | $ | 13,789 | |||||||
Shares | Weighted | Weighted Average Remaining Contractual Term | Aggregate | ||||||||||
Average | (in years) | Intrinsic | |||||||||||
Exercise | Value | ||||||||||||
Price | |||||||||||||
Outstanding as of January 1, 2013 | 2,697 | $ | 1.8 | ||||||||||
Granted | 880 | 9.56 | |||||||||||
Exercised | (163 | ) | 0.56 | ||||||||||
Forfeited or expired | (127 | ) | 3.88 | ||||||||||
Outstanding as of December 31, 2013 | 3,287 | $ | 3.86 | 7.2 | $ | 24,002 | |||||||
Exercisable as of December 31, 2013 | 2,106 | $ | 1.53 | 5.7 | $ | 17,622 | |||||||
Shares | Weighted | Weighted Average Remaining Contractual Term | Aggregate | ||||||||||
Average | (in years) | Intrinsic | |||||||||||
Exercise | Value | ||||||||||||
Price | |||||||||||||
Outstanding as of January 1, 2014 | 3,287 | $ | 3.86 | ||||||||||
Granted | 1,303 | 15.95 | |||||||||||
Exercised | (558 | ) | 2.07 | ||||||||||
Forfeited or expired | (206 | ) | 11.66 | ||||||||||
Outstanding as of December 31, 2014 | 3,826 | $ | 7.9 | 7.4 | $ | 24,648 | |||||||
Exercisable as of December 31, 2014 | 2,119 | $ | 3.8 | 6.1 | $ | 20,880 | |||||||
Summary of Stock Options Outstanding and Excercisable | The following table summarizes additional information about stock options outstanding at December 31, 2014: | ||||||||||||
Exercise Price | Options | Options | Weighted Average Remaining Contractual Term | ||||||||||
Outstanding | Exercisable | (in years) | |||||||||||
$ 0.42 - $ 0.56 | 421 | 421 | 2.1 | ||||||||||
$ 0.63 - $ 0.77 | 428 | 426 | 5.4 | ||||||||||
$ 2.10 - $ 2.10 | 700 | 664 | 7 | ||||||||||
$ 5.11 - $ 8.40 | 490 | 253 | 7.9 | ||||||||||
$10.00 - $10.00 | 642 | 193 | 8.8 | ||||||||||
$10.78 - $16.47 | 490 | 38 | 9.3 | ||||||||||
$18.09 - $18.09 | 655 | 124 | 9.2 | ||||||||||
3,826 | 2,119 | 7.4 | |||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||
Summary of Income Tax Expense | The following table summarizes the income tax expense (in thousands): | ||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Current: | |||||||||||||||||||||
Federal | $ | — | $ | — | $ | — | |||||||||||||||
State | (58 | ) | 218 | — | |||||||||||||||||
Foreign | 1,176 | 2,328 | 1,152 | ||||||||||||||||||
Total current | 1,118 | 2,546 | 1,152 | ||||||||||||||||||
Deferred: | |||||||||||||||||||||
Federal | — | — | — | ||||||||||||||||||
State | (2 | ) | (50 | ) | — | ||||||||||||||||
Foreign | (600 | ) | — | — | |||||||||||||||||
Total deferred | (602 | ) | (50 | ) | — | ||||||||||||||||
Income tax expense | $ | 516 | $ | 2,496 | $ | 1,152 | |||||||||||||||
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, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Domestic | $ | (25,969 | ) | $ | (12,947 | ) | $ | (18,941 | ) | ||||||||||||
Foreign | 449 | 153 | 4,524 | ||||||||||||||||||
Total | $ | (25,520 | ) | $ | (12,794 | ) | $ | (14,417 | ) | ||||||||||||
Components of Deferred Tax Assets and Liabilities | Significant components of deferred tax assets and liabilities are as follows (in thousands): | ||||||||||||||||||||
As of December 31, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Deferred tax assets | |||||||||||||||||||||
Net operating loss carryforwards | $ | 43,234 | $ | 35,918 | |||||||||||||||||
Deferred revenue | 3,630 | 2,741 | |||||||||||||||||||
Accrued expenses | 3,336 | 1,696 | |||||||||||||||||||
Allowance for bad debt | 74 | 149 | |||||||||||||||||||
Start-up costs | 908 | 1,057 | |||||||||||||||||||
Depreciation of property and equipment | 80 | 30 | |||||||||||||||||||
Unrealized gain/loss on foreign currency translations | — | 411 | |||||||||||||||||||
Tax credit carryforwards | 2,039 | 2,010 | |||||||||||||||||||
Inventories | 3,035 | 1,032 | |||||||||||||||||||
Stock-based compensation | 672 | 231 | |||||||||||||||||||
Capitalized research and development | 12,692 | — | |||||||||||||||||||
Other | 64 | (116 | ) | ||||||||||||||||||
Total deferred tax assets | $ | 69,764 | $ | 45,159 | |||||||||||||||||
As of December 31, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Deferred tax liabilities | |||||||||||||||||||||
Amortization of intangible assets | $ | (2,397 | ) | $ | (1,472 | ) | |||||||||||||||
Unrealized gain/loss on foreign currency translations | (317 | ) | — | ||||||||||||||||||
Prepaid items | (145 | ) | (233 | ) | |||||||||||||||||
Other | (21 | ) | — | ||||||||||||||||||
Total deferred tax liabilities | (2,880 | ) | (1,705 | ) | |||||||||||||||||
Net deferred tax assets | 66,884 | 43,454 | |||||||||||||||||||
Valuation allowance | (66,107 | ) | (43,404 | ) | |||||||||||||||||
Net deferred tax assets | $ | 777 | $ | 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, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Amount | Percent | Amount | Percent | Amount | Percent | ||||||||||||||||
Computed tax at statutory rates: | $ | (8,677 | ) | 34 | % | $ | (4,478 | ) | 35 | % | $ | (5,046 | ) | 35 | % | ||||||
Permanent differences | 225 | (0.9 | )% | (122 | ) | 1 | % | 362 | (3.0 | )% | |||||||||||
Difference resulting from state income taxes, net of federal income tax benefits | (60 | ) | 0.2 | % | 128 | (1.0 | )% | (337 | ) | 2 | % | ||||||||||
Change in valuation allowance | 10,124 | (39.6 | )% | (7,453 | ) | 58.3 | % | 4,678 | (32.0 | )% | |||||||||||
Release of valuation allowance | (2,680 | ) | 10.5 | % | — | — | % | — | — | % | |||||||||||
Effect of tax credits | (586 | ) | 2.3 | % | (1,954 | ) | 15.3 | % | (100 | ) | 1 | % | |||||||||
Foreign tax differential | 432 | (1.7 | )% | (556 | ) | 4.3 | % | 922 | (6.0 | )% | |||||||||||
Uncertain tax positions | (142 | ) | 0.6 | % | 404 | (3.2 | )% | — | — | % | |||||||||||
Change in control limitations on net operating losses | — | — | % | 12,824 | (100.2 | )% | — | — | % | ||||||||||||
Foreign withholding taxes | 804 | (3.2 | )% | 1,342 | (10.5 | )% | — | — | % | ||||||||||||
Change in tax rates | 1,403 | (5.5 | )% | 1,881 | (14.7 | )% | — | — | % | ||||||||||||
Other, net | (327 | ) | 1.3 | % | 480 | (3.8 | )% | 673 | (5.0 | )% | |||||||||||
Total | $ | 516 | (2.0 | )% | $ | 2,496 | (19.5 | )% | $ | 1,152 | (8.0 | )% | |||||||||
Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31, 2014 and 2013 is as follows (in thousands): | ||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Beginning Balance at January 1, | $ | 4,207 | $ | 3,904 | |||||||||||||||||
Additions to unrecognized tax benefits taken during the period | 271 | 303 | |||||||||||||||||||
Additions to unrecognized tax benefits as a result of positions taken in prior periods | 1,806 | — | |||||||||||||||||||
Reductions to unrecognized benefits as a result of positions taken during the period | (2,273 | ) | — | ||||||||||||||||||
Additions to unrecognized tax benefits as a result of current year acquisitions | 1,696 | — | |||||||||||||||||||
Ending Balance at December 31, | $ | 5,707 | $ | 4,207 | |||||||||||||||||
Segment_and_Geographic_Informa1
Segment and Geographic Information (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Segment Reporting [Abstract] | ||||||||
Schedule of Revenues and Long-Lived Assets by Geographic Region | Revenues by geographic area are based on the deployment site location of the end customers. The following tables present revenue and long-lived assets as of and for the year ended December 31 by geographic area (in thousands): | |||||||
2014 | Revenues | Long-lived | ||||||
Assets | ||||||||
North America | $ | 71,479 | $ | 15,317 | ||||
EMEA (or Europe, Middle East and Africa) | 40,772 | 1,295 | ||||||
APAC (or Asia-Pacific) | 17,544 | 994 | ||||||
Consolidated Total | $ | 129,795 | $ | 17,606 | ||||
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 | ||||
Quarterly_Financial_Data_unaud1
Quarterly Financial Data (unaudited) (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||
Selected Quarterly Financial Information | ||||||||||||||||
Three Months Ended, | ||||||||||||||||
Mar. 31, 2014 | June 30, 2014 | September 30, 2014 | 31-Dec-14 | |||||||||||||
(in thousands, except per share amounts) | ||||||||||||||||
Total Revenues | $ | 28,729 | $ | 33,287 | $ | 34,052 | $ | 33,727 | ||||||||
Gross Profit | 16,032 | 18,432 | 17,982 | 18,500 | ||||||||||||
Operating loss | (2,222 | ) | (2,230 | ) | (3,837 | ) | (8,783 | ) | ||||||||
Net loss | (4,045 | ) | (3,891 | ) | (5,805 | ) | (12,295 | ) | ||||||||
Net loss per share: | ||||||||||||||||
Basic and Diluted | $ | (0.17 | ) | $ | (0.16 | ) | $ | (0.21 | ) | $ | (0.43 | ) | ||||
Three Months Ended, | ||||||||||||||||
Mar. 31, 2013 | June 30, 2013 | September 30, 2013 | 31-Dec-13 | |||||||||||||
(in thousands, except per share amounts) | ||||||||||||||||
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 | ) |
Description_of_the_Business_an2
Description of the Business and Basis of Presentation - Effect of Immaterial Correction on Consolidated Balance Sheet (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Other shareholders’ equity | $1,020 | |||
Additional paid-in capital | 202,662 | 155,198 | ||
Accumulated deficit | -138,223 | -112,187 | ||
Total shareholders’ equity | 66,723 | 44,031 | -92,795 | -78,302 |
As Reported [Member] | ||||
Other shareholders’ equity | 1,020 | |||
Additional paid-in capital | 153,878 | |||
Accumulated deficit | -110,867 | |||
Total shareholders’ equity | 44,031 | |||
Correction [Member] | ||||
Other shareholders’ equity | 0 | |||
Additional paid-in capital | 1,320 | |||
Accumulated deficit | -1,320 | |||
Total shareholders’ equity | $0 |
Description_of_the_Business_an3
Description of the Business and Basis of Presentation - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2011 | Dec. 31, 2013 |
Entity Information [Line Items] | |||
Entity formation date | 26-Apr-05 | ||
Entity incorporated state name | Delaware | ||
Deferred revenue now classified as non-current liability | $0.40 | ||
Adjustments For Immaterial Errors [Member] | |||
Entity Information [Line Items] | |||
Error Corrections And Prior Period Adjustments Revenue | ($1.30) |
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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Allowances for doubtful accounts receivable, beginning Balance | $587 | $382 | $641 |
Charged to Costs and Expense | -281 | 537 | 199 |
Deduction in accounts receivable | -37 | -332 | -458 |
Allowances for doubtful accounts receivable, Ending Balance | $269 | $587 | $382 |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies - Carrying Amounts and Fair Values of Long-Term Borrowings (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Carrying Amounts And Estimated Fair Values Of Financial Instruments [Line Items] | ||
Long-term debt, Carrying Amount | $26,900 | $25,000 |
Long-term debt, Fair Value | 26,900 | 28,500 |
Silicon Valley Bank [Member] | Senior loan [Member] | ||
Carrying Amounts And Estimated Fair Values Of Financial Instruments [Line Items] | ||
Long-term debt, Carrying Amount | 26,900 | 0 |
Long-term debt, Fair Value | 26,900 | 0 |
Silicon Valley Bank [Member] | Subordinated loan [Member] | ||
Carrying Amounts And Estimated Fair Values Of Financial Instruments [Line Items] | ||
Long-term debt, Carrying Amount | 0 | 10,000 |
Long-term debt, Fair Value | 0 | 10,900 |
Silver Lake [Member] | Subordinated loan [Member] | ||
Carrying Amounts And Estimated Fair Values Of Financial Instruments [Line Items] | ||
Long-term debt, Carrying Amount | 0 | 15,000 |
Long-term debt, Fair Value | $0 | $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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule Of Stock Based Compensation Costs [Line Items] | |||
Stock based compensation expense | $4,555 | $1,630 | $291 |
Cost of revenues | |||
Schedule Of Stock Based Compensation Costs [Line Items] | |||
Stock based compensation expense | 582 | 187 | 0 |
Research and development | |||
Schedule Of Stock Based Compensation Costs [Line Items] | |||
Stock based compensation expense | 787 | 321 | 0 |
Sales and marketing | |||
Schedule Of Stock Based Compensation Costs [Line Items] | |||
Stock based compensation expense | 1,032 | 482 | 0 |
General and administrative | |||
Schedule Of Stock Based Compensation Costs [Line Items] | |||
Stock based compensation expense | $2,154 | $640 | $291 |
Summary_of_Significant_Account6
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Significant Accounting Policies [Line Items] | |||
FDIC insurance coverage refundable amount per depositor | $300,000 | ||
Unbilled revenue | 13,714,000 | 11,213,000 | |
Inventory reserve for obsolescence | 500,000 | 200,000 | 300,000 |
Liability for uncertain tax positions | 3,051,000 | 3,153,000 | |
Foreign currency transaction gain (loss) | -4,699,000 | -1,901,000 | 529,000 |
Restructuring charges incurred | 100,000 | 0 | 0 |
Advertising expenses | $1,200,000 | $800,000 | $700,000 |
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 |
Business_Combination_Allocatio
Business Combination - Allocation of Total Purchase Price to Asset Acquired and Liabilities Assumed (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Nov. 18, 2014 |
In Thousands, unless otherwise specified | ||||
Business Acquisition [Line Items] | ||||
Goodwill | $2,828 | $866 | $923 | |
Stoke [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | 321 | |||
Accounts receivable | 62 | |||
Inventories | 1,484 | |||
Prepaid expenses | 693 | |||
Property, plant and equipment | 745 | |||
Intangible assets | 4,360 | |||
Deposits | 204 | |||
Accounts payable and other liabilities | -1,698 | |||
Deferred revenue | -2,576 | |||
Deferred tax liabilities | -79 | |||
Total identifiable net assets | 3,516 | |||
Goodwill | 2,030 | |||
Total consideration transferred | $5,546 |
Business_Combination_Intangibl
Business Combination - Intangible Assets Amortized for Estimated Useful Lives (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Beneficial Lease [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted Average Useful Life | 27 months |
Stoke [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Fair Value | 4,360 |
Stoke [Member] | Customer Relationship [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Fair Value | 2,580 |
Weighted Average Useful Life | 6 years |
Stoke [Member] | Technology [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Fair Value | 1,460 |
Weighted Average Useful Life | 6 years |
Stoke [Member] | Beneficial Lease [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Fair Value | 320 |
Weighted Average Useful Life | 2 years 3 months |
Business_Combination_Unaudited
Business Combination - Unaudited Pro Forma Results as if Acquisition Occurred (Detail) (Stoke [Member], USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Stoke [Member] | ||
Business Acquisition [Line Items] | ||
Revenues | $136,187 | $111,062 |
Net loss | ($39,432) | ($32,378) |
Basic and diluted loss per common share (in dollars per share) | ($1.52) | ($7.57) |
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 | 1 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 |
Business Acquisition [Line Items] | ||||||||||||
Revenues | $129,795 | $101,308 | $73,840 | |||||||||
Net loss | -12,295 | -5,805 | -3,891 | -4,045 | -2,842 | -4,513 | -3,641 | -4,294 | -26,036 | -15,290 | -15,569 | |
Stoke [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Revenues | 649 | |||||||||||
Net loss | ($958) |
Business_Combination_Additiona
Business Combination - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | ||||
Nov. 18, 2014 | Dec. 31, 2014 | Nov. 19, 2014 | Mar. 06, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Nov. 30, 2014 | |
Business Acquisition [Line Items] | ||||||||
Goodwill | $2,828,000 | $2,828,000 | $866,000 | $923,000 | ||||
Stoke [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Purchase price of acquiree | 5,546,000 | |||||||
Cash on hand for acquisition | 3,700,000 | |||||||
Additional financing for acquisition | 1,900,000 | |||||||
Distribution to Shareholders of Acquiree | 2,900,000 | |||||||
Cash advanced to acquiree | 800,000 | |||||||
Goodwill | 2,030,000 | |||||||
Acquisition related costs | 400,000 | |||||||
Minimum [Member] | Stoke [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Weighted Average Amortization period | 2 years | |||||||
Maximum [Member] | Stoke [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Weighted Average Amortization period | 6 years | |||||||
Finite-Lived Intangible Assets [Member] | Minimum [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Discount rate used for fair value | 6.00% | |||||||
Finite-Lived Intangible Assets [Member] | Maximum [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Discount rate used for fair value | 50.50% | |||||||
Customer Relationship [Member] | Stoke [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Weighted Average Amortization period | 6 years | |||||||
Customer Relationship [Member] | Finite-Lived Intangible Assets [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Customer attrition rate used for fair value | 5.00% | |||||||
Technology [Member] | Stoke [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Weighted Average Amortization period | 6 years | |||||||
Technology [Member] | Finite-Lived Intangible Assets [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Royalty rate used for fair value | 10.00% | |||||||
Silicon Valley Bank [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Senior notes | 26,900,000 | 26,900,000 | 0 | |||||
Term Loan [Member] | Silicon Valley Bank [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Senior notes | $26,900,000 | $26,900,000 | $25,000,000 | |||||
Reduction in interest rate | 0.50% | |||||||
Floating rate | 2.25% | 2.75% |
Property_and_Equipment_Schedul
Property and Equipment - Schedule of Property and Equipment (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $20,197 | $15,431 |
Less: accumulated depreciation | -13,599 | -10,377 |
Property and equipment, net | 6,598 | 5,054 |
Computer software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Estimated Useful Life | 3 years | |
Property and equipment, gross | 5,161 | 5,046 |
Computer and lab equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Estimated Useful Life | 3 years | |
Property and equipment, gross | 12,750 | 8,917 |
Other equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $2,286 | $1,468 |
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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $3,345 | $2,472 | $1,527 |
Intangible_Assets_and_Goodwill2
Intangible Assets and Goodwill - Summary of Intangible Assets (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $14,726 | $10,035 |
Accumulated Amortization | -6,546 | -4,833 |
Net Carrying Amount | 8,180 | 5,202 |
Contractual backlog [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Amortization period | 7 months | 7 months |
Gross Carrying Amount | 1,292 | 1,382 |
Accumulated Amortization | -1,292 | -1,382 |
Net Carrying Amount | 0 | 0 |
Customer relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Amortization period | 72 months | 72 months |
Gross Carrying Amount | 7,135 | 4,897 |
Accumulated Amortization | -2,740 | -2,108 |
Net Carrying Amount | 4,395 | 2,789 |
Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Amortization period | 72 months | 72 months |
Gross Carrying Amount | 2,213 | 799 |
Accumulated Amortization | -498 | -344 |
Net Carrying Amount | 1,715 | 455 |
Certification and licenses [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Amortization period | 36 months | 36 months |
Gross Carrying Amount | 3,766 | 2,957 |
Accumulated Amortization | -2,005 | -999 |
Net Carrying Amount | 1,761 | 1,958 |
Beneficial Lease [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Amortization period | 27 months | |
Gross Carrying Amount | 320 | |
Accumulated Amortization | -11 | |
Net Carrying Amount | $309 |
Intangible_Assets_and_Goodwill3
Intangible Assets and Goodwill - Summary of Expected Amortization Expense for Each of the Next Five Years (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2015 | $2,649 |
2016 | 2,350 |
2017 | 1,123 |
2018 | 990 |
2019 | 646 |
2020 | 422 |
Total | $8,180 |
Intangible_Assets_and_Goodwill4
Intangible Assets and Goodwill - Summary of Changes in Carrying Value of Goodwill (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Goodwill [Roll Forward] | ||
Balance, beginning of period | $866 | $923 |
Acquired goodwill | 2,030 | 0 |
Foreign currency exchange translation | -68 | -57 |
Balance, end of period | $2,828 | $866 |
Intangible_Assets_and_Goodwill5
Intangible Assets and Goodwill - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | $2,079 | $1,534 | $2,521 |
Cost of revenue related to software products | 58,849 | 45,173 | 30,459 |
Operating expenses on consolidated statements of operations and comprehensive loss | 88,018 | 63,843 | 57,944 |
Cost of Sales, Software Products [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | 1,100 | 600 | 0 |
Operating Expense [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | $1,000 | $900 | $2,500 |
Accrued_Liabilities_Schedule_o
Accrued Liabilities - Schedule of Accrued Liabilities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Payables and Accruals [Abstract] | ||
Accrued payroll | $10,163 | $7,221 |
Accrued expenses on contracts | 4,448 | 1,446 |
Accrued professional fees | 551 | 136 |
Other | 2,682 | 3,136 |
Total accrued liabilities | $17,844 | $11,939 |
Debt_Schedule_of_Long_Term_Deb
Debt - Schedule of Long Term Debt (Detail) (USD $) | Dec. 31, 2014 | Mar. 05, 2014 | Dec. 31, 2013 | Jun. 04, 2013 |
Debt Instrument [Line Items] | ||||
Long-term debt | $26,841,000 | $23,423,000 | ||
Less: current portion | 5,044,000 | 0 | ||
Long-term Portion | 21,797,000 | 23,423,000 | ||
Warrants [Member] | ||||
Debt Instrument [Line Items] | ||||
Discount related to issuance of warrants | -59,000 | -1,577,000 | ||
Silicon Valley Bank [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior loan | 26,900,000 | 0 | ||
Subordinated loan | 0 | 10,000,000 | ||
Silver Lake Waterman [Member] | ||||
Debt Instrument [Line Items] | ||||
Subordinated loan | 0 | 15,000,000 | 15,000,000 | |
Discount related to issuance of warrants | ($1,300,000) |
Debt_Additional_Information_De
Debt - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | ||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 06, 2014 | Oct. 18, 2012 | Nov. 19, 2014 | Dec. 31, 2014 | Mar. 05, 2014 | Nov. 18, 2014 | Jun. 04, 2013 | |
Instrument | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term debt before discounts | $26,900,000 | $25,000,000 | $26,900,000 | |||||||
Loss on early extinguishment of debt | 1,783,000 | 0 | 0 | |||||||
Warrants [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument unamortized discount | 59,000 | 1,577,000 | 59,000 | |||||||
Silicon Valley Bank [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Number of loans | 2 | |||||||||
Maximum borrowing capacity | 32,500,000 | |||||||||
Subordinated debt | 0 | 10,000,000 | 0 | |||||||
Senior notes | 26,900,000 | 0 | 26,900,000 | |||||||
Loss on early extinguishment of debt | 300,000 | |||||||||
Silicon Valley Bank [Member] | Term Loan [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument term | 5 years | |||||||||
Floating rate | 2.75% | 2.25% | ||||||||
Debt instrument description | U.S. prime rate | |||||||||
Minimum interest rate | 4.25% | |||||||||
Senior notes | 25,000,000 | 26,900,000 | 26,900,000 | |||||||
Number of monthly installments | 48 months | |||||||||
Period subject to prepayment premium | 1 year | |||||||||
Prepayment premium to terminate debt | 250,000 | 269,000 | ||||||||
Repayment of acquiree debt | 1,900,000 | |||||||||
Reduction in interest rate | 0.50% | |||||||||
Debt instrument prepayment penalty rate | 1.00% | |||||||||
Silicon Valley Bank [Member] | Senior Loan [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowing capacity | 22,500,000 | |||||||||
Debt instrument term | 3 years | |||||||||
Floating rate | 1.00% | |||||||||
Debt instrument description | U.S. prime rate | |||||||||
Minimum interest rate | 4.25% | |||||||||
Additional interest imposed in event of default | 5.00% | |||||||||
Silicon Valley Bank [Member] | Revolver [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument term | 3 years | |||||||||
Floating rate | 1.00% | |||||||||
Debt instrument description | U.S. prime rate | |||||||||
Minimum interest rate | 4.25% | |||||||||
Percentage of eligible accrued but unbilled accounts | 35.00% | |||||||||
Commitment fee percentage | 0.25% | |||||||||
Available borrowing capacity | 15,000,000 | 15,000,000 | ||||||||
Interest rate at period end | 5.50% | 5.50% | ||||||||
Silicon Valley Bank [Member] | Subordinated loan [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument term | 3 years | |||||||||
Subordinated debt | 10,000,000 | |||||||||
Debt instrument interest rate state percentage | 11.00% | |||||||||
Silver Lake Waterman [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument unamortized discount | 1,300,000 | |||||||||
Subordinated debt | 0 | 15,000,000 | 0 | 15,000,000 | ||||||
Debt instrument interest rate state percentage | 12.00% | |||||||||
Loss on early extinguishment of debt | 1,500,000 | |||||||||
Unamortized deferred financing costs | 200,000 | |||||||||
First Performance Trigger [Member] | Silicon Valley Bank [Member] | Term Loan [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Floating rate | 1.75% | |||||||||
Second Performance Trigger [Member] | Silicon Valley Bank [Member] | Term Loan [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Floating rate | 1.25% | |||||||||
Letter of Credit [Member] | Silicon Valley Bank [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowing capacity | 5,000,000 | |||||||||
Minimum [Member] | Second Performance Trigger [Member] | Silicon Valley Bank [Member] | Term Loan [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Triggering event, proceeds from issuance of common stock | 50,000,000 | |||||||||
Maximum [Member] | Silicon Valley Bank [Member] | Revolver [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Amount of eligible trade receivables | $15,000,000 | |||||||||
Domestic Trade Receivables [Member] | Silicon Valley Bank [Member] | Revolver [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Percentage of eligible trade receivables | 80.00% | |||||||||
Foreign Trade Receivables [Member] | Silicon Valley Bank [Member] | Revolver [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Percentage of eligible trade receivables | 70.00% |
Commitments_and_Contingencies_1
Commitments and Contingencies - Future Minimum Lease Payments Under Non-Cancelable Operating Leases (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | |
2015 | $3,456 |
2016 | 2,694 |
2017 | 1,307 |
2018 | 786 |
2019 | 519 |
Thereafter | 476 |
Total | $9,238 |
Commitments_and_Contingencies_2
Commitments and Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Commitments and Contingencies Disclosure [Abstract] | |||
Rent expenses | $2.80 | $2.10 | $2.40 |
Future minimum sublease rentals to be received | $0.90 |
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 Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings Per Share [Abstract] | |||||||||||
Net loss | ($12,295) | ($5,805) | ($3,891) | ($4,045) | ($2,842) | ($4,513) | ($3,641) | ($4,294) | ($26,036) | ($15,290) | ($15,569) |
Basic common shares: | |||||||||||
Weighted average number of shares outstanding | 25,988 | 4,278 | 1,288 | ||||||||
Diluted common shares: | |||||||||||
Weighted average shares used to compute diluted net loss per share | 25,988 | 4,278 | 1,288 | ||||||||
Net loss per common share: | |||||||||||
Basic and diluted (in dollars per share) | ($0.43) | ($0.21) | ($0.16) | ($0.17) | ($0.22) | ($3.35) | ($2.72) | ($3.21) | ($1) | ($3.57) | ($12.09) |
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 | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
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 | 0 | 0 | 16,452 |
Stock options [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive securities excluded from computation of earnings per share | 1,572 | 1,532 | 1,474 |
Warrants [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive securities excluded from computation of earnings per share | 0 | 1,233 | 0 |
Shareholders_Equity_Deficit_We
Shareholders' Equity (Deficit) - Weighted Average Assumptions Used in Estimating Fair Value of Stock Options (Detail) (Options [Member]) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
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) | 2.00% | 1.80% | 1.70% |
Expected term | 6 years 3 months 18 days | 6 years 3 months 18 days | 6 years 3 months 18 days |
Expected volatility | 60.90% | 57.50% | 62.00% |
Shareholders_Equity_Deficit_Su
Shareholders' Equity (Deficit) - Summary of Company's Stock Option Activity for Plans (Detail) (USD $) | 12 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Stock Option Activity - Shares | ||||
Outstanding - beginning balance (in shares) | 3,287 | 2,697 | 2,647 | |
Granted (in shares) | 1,303 | 880 | 488 | |
Exercised (in shares) | -558 | -163 | -121 | |
Forfeited or expired (in shares) | -206 | -127 | -317 | |
Outstanding - ending balance (in shares) | 3,826 | 3,287 | 2,697 | |
Options exercisable (in shares) | 2,119 | 2,106 | 2,041 | |
Stock Option Activity - Weighted Average Exercise Price | ||||
Outstanding - weighted average exercise price (in dollars per share) | $7.90 | $3.86 | $1.80 | $1.12 |
Granted - weighted average exercise price (in dollars per share) | $15.95 | $9.56 | $4.77 | |
Exercised- weighted average exercise price (in dollars per share) | $2.07 | $0.56 | $0.59 | |
Forfeited or expired- weighted average exercise price (in dollars per share) | $11.66 | $3.88 | $1.14 | |
Exercisable - weighted average exercise price (in dollars per share) | $3.80 | $1.53 | $1.16 | |
Additional Disclosures [Abstract] | ||||
Outstanding - weighted average remaining contractual term | 7 years 4 months 24 days | 7 years 2 months 12 days | 7 years 3 months 18 days | |
Exercisable - weighted average remaining contractual term | 6 years 1 month 6 days | 5 years 8 months 12 days | 6 years 7 months 6 days | |
Outstanding - aggregate intrinsic value | $24,648 | $24,002 | $16,465 | |
Exercisable - aggregate intrinsic value | $20,880 | $17,622 | $13,789 |
Shareholders_Equity_Deficit_Su1
Shareholders' Equity (Deficit) - Summary of Stock Options Outstanding and Exercisable (Detail) (USD $) | 12 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Options Outstanding (in shares) | 3,826 | 3,287 | 2,697 | 2,647 |
Options Exercisable (in shares) | 2,119 | 2,106 | 2,041 | |
Weighted Average Remaining Contractual Term | 7 years 4 months 24 days | 7 years 2 months 12 days | 7 years 3 months 18 days | |
$ 0.42 - $ 0.56 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Exercise price - lower range (in dollars per share) | 0.42 | |||
Exercise price - upper range (in dollars per share) | 0.56 | |||
Options Outstanding (in shares) | 421 | |||
Options Exercisable (in shares) | 421 | |||
Weighted Average Remaining Contractual Term | 2 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 - lower range (in dollars per share) | 0.63 | |||
Exercise price - upper range (in dollars per share) | 0.77 | |||
Options Outstanding (in shares) | 428 | |||
Options Exercisable (in shares) | 426 | |||
Weighted Average Remaining Contractual Term | 5 years 4 months 24 days | |||
$ 2.10 - $ 2.10 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Exercise price - lower range (in dollars per share) | 2.1 | |||
Exercise price - upper range (in dollars per share) | 2.1 | |||
Options Outstanding (in shares) | 700 | |||
Options Exercisable (in shares) | 664 | |||
Weighted Average Remaining Contractual Term | 7 years | |||
$ 5.11 - $ 8.40 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Exercise price - lower range (in dollars per share) | 5.11 | |||
Exercise price - upper range (in dollars per share) | 8.4 | |||
Options Outstanding (in shares) | 490 | |||
Options Exercisable (in shares) | 253 | |||
Weighted Average Remaining Contractual Term | 7 years 10 months 24 days | |||
$10.00 - $10.00 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Exercise price - lower range (in dollars per share) | 10 | |||
Exercise price - upper range (in dollars per share) | 10 | |||
Options Outstanding (in shares) | 642 | |||
Options Exercisable (in shares) | 193 | |||
Weighted Average Remaining Contractual Term | 8 years 9 months 18 days | |||
$10.78 - $16.47 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Exercise price - lower range (in dollars per share) | 10.78 | |||
Exercise price - upper range (in dollars per share) | 16.47 | |||
Options Outstanding (in shares) | 490 | |||
Options Exercisable (in shares) | 38 | |||
Weighted Average Remaining Contractual Term | 9 years 3 months 18 days | |||
$18.09 - $18.09 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Exercise price - lower range (in dollars per share) | 18.09 | |||
Exercise price - upper range (in dollars per share) | 18.09 | |||
Options Outstanding (in shares) | 655 | |||
Options Exercisable (in shares) | 124 | |||
Weighted Average Remaining Contractual Term | 9 years 2 months 12 days |
Shareholders_Equity_Deficit_Ad
Shareholders' Equity (Deficit) - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 2 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 2 Months Ended | ||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Nov. 01, 2013 | 31-May-14 | Mar. 31, 2014 | Jun. 30, 2014 | Nov. 07, 2013 | Dec. 31, 2013 | Nov. 30, 2013 | Dec. 31, 2013 | Aug. 06, 2014 | Apr. 30, 2014 | Nov. 30, 2014 | Dec. 31, 2014 | |
Stock_Plan | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Net proceeds from common stock | $41,686,000 | $44,765,000 | |||||||||||||
Net proceeds of common stock | 41,686,000 | 0 | 0 | ||||||||||||
Common stock, shares authorized | 300,000,000 | 300,000,000 | 22,171,986 | 300,000,000 | 300,000,000 | 300,000,000 | |||||||||
Number of stock option plan | 2 | ||||||||||||||
Weighted-average grant date fair value (in dollars per share) | $9.30 | $5.29 | $2.80 | ||||||||||||
Total intrinsic value of options exercised | 6,300,000 | 1,400,000 | 500,000 | ||||||||||||
Common Stock [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Reverse stock split, ratio for one share | 7 | ||||||||||||||
West River Mezzanine Loans Llc [Member] | Warrants [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 40,871 | ||||||||||||||
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right | 64,285 | ||||||||||||||
Common stock purchase price per share | $5.11 | ||||||||||||||
Silicon Valley Bank [Member] | Warrants [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 44,340 | ||||||||||||||
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right | 64,286 | ||||||||||||||
Common stock purchase price per share | $5.11 | ||||||||||||||
Silver Lake Waterman [Member] | Warrants [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 194,606 | ||||||||||||||
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right | 194,694 | ||||||||||||||
Common stock purchase price per share | $0.01 | ||||||||||||||
Comerica Bank [Member] | Warrants [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 11,228 | ||||||||||||||
Common stock purchase price per share | $6.68 | ||||||||||||||
Proceeds from Warrant Exercises | 100,000 | ||||||||||||||
IPO [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Number of common stock shares sold | 5,320,292 | ||||||||||||||
Common stock, price (in dollars per share) | $10 | ||||||||||||||
Net proceeds from common stock | 44,800,000 | ||||||||||||||
IPO [Member] | Convertible preferred stock [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Number of common stock shares converted from preferred stock | 16,452,467 | ||||||||||||||
Selling Stockholders [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Number of common stock shares sold | 129,708 | ||||||||||||||
Underwriters Option To Purchase Additional Shares [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Number of common stock shares sold | 145,339 | ||||||||||||||
Underwriters Discounts And Commissions [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Offering expenses | 3,800,000 | ||||||||||||||
Other Offering Expenses [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Offering expenses | 6,100,000 | ||||||||||||||
Follow-on Public Offering [Member] | Common Stock [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Stock Issued during period | 4,090,000 | ||||||||||||||
Common stock, price (in dollars per share) | $11 | ||||||||||||||
Net proceeds of common stock | 41,686,000 | ||||||||||||||
Underwriting discounts and commissions | 2,500,000 | ||||||||||||||
Other offering expenses | 800,000 | ||||||||||||||
Cisco [Member] | Warrants [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 555,034 | ||||||||||||||
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right | 898,294 | ||||||||||||||
Common stock purchase price per share | $6.68 | ||||||||||||||
2013 Plan [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Increase in issuable shares as a percentage of common stock outstanding | 4.50% | ||||||||||||||
Maximum increase in issuable shares | 2,857,776 | ||||||||||||||
Shares available for future grants | 1,073,231 | 1,073,231 | |||||||||||||
Total unrecognized cost related to unvested stock options granted | 10,400,000 | 10,400,000 | |||||||||||||
Weighted average period to recognize the unrecognized cost related to unvested stock option granted | 2 years 5 months 23 days | ||||||||||||||
2013 Plan [Member] | Options [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Vesting period | 4 years | ||||||||||||||
Percentage vested at the end of year one | 25.00% | ||||||||||||||
Exercise period | 10 years | ||||||||||||||
Employee Stock Purchase Plan [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Increase in issuable shares as a percentage of common stock outstanding | 1.00% | ||||||||||||||
Maximum increase in issuable shares | 428,572 | ||||||||||||||
Discount on stock purchase | 15.00% | ||||||||||||||
Period of look-back feature | 6 months | ||||||||||||||
Common stock reserved for future issuance | 482,143 | ||||||||||||||
Offering date purchase price as a percentof common stock price | 85.00% | ||||||||||||||
Purchase date purchase price as a percent of common stock price | 85.00% | ||||||||||||||
Maximum value of shares per employee during any calendar year | 25,000 | ||||||||||||||
Maximum number of shares per employee in single offering period | 1,000 | ||||||||||||||
Maximum number of shares issuable on any single purchase date | 312,500 | ||||||||||||||
Allocated Share-based Compensation Expense | $100,000 |
Employee_Benefit_Plan_Addition
Employee Benefit Plan - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Compensation and Retirement Disclosure [Abstract] | |||
Defined contribution plan costs | $0.70 | $0.60 | $0.80 |
Income_Taxes_Summary_of_Income
Income Taxes - Summary of Income Tax Expense (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current: | |||
Federal | $0 | $0 | $0 |
State | -58 | 218 | 0 |
Foreign | 1,176 | 2,328 | 1,152 |
Total current | 1,118 | 2,546 | 1,152 |
Deferred: | |||
Federal | 0 | 0 | 0 |
State | -2 | -50 | 0 |
Foreign | -600 | 0 | 0 |
Total deferred | -602 | -50 | 0 |
Income tax expense | $516 | $2,496 | $1,152 |
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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Domestic | ($25,969) | ($12,947) | ($18,941) |
Foreign | 449 | 153 | 4,524 |
Loss before income tax | ($25,520) | ($12,794) | ($14,417) |
Income_Taxes_Components_of_Def
Income Taxes - Components of Deferred Tax Assets and Liabilities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred tax assets | ||
Net operating loss carryforwards | $43,234 | $35,918 |
Deferred revenue | 3,630 | 2,741 |
Accrued expenses | 3,336 | 1,696 |
Allowance for bad debt | 74 | 149 |
Start-up costs | 908 | 1,057 |
Depreciation of property and equipment | 80 | 30 |
Unrealized gain/loss on foreign currency translations | 0 | 411 |
Tax credit carryforwards | 2,039 | 2,010 |
Inventories | 3,035 | 1,032 |
Stock-based compensation | 672 | 231 |
Capitalized research and development | 12,692 | 0 |
Other | 64 | -116 |
Total deferred tax assets | 69,764 | 45,159 |
Deferred tax liabilities | ||
Amortization of intangible assets | -2,397 | -1,472 |
Unrealized gain/loss on foreign currency translations | -317 | 0 |
Prepaid items | -145 | -233 |
Other | -21 | 0 |
Total deferred tax liabilities | -2,880 | -1,705 |
Net deferred tax assets | 66,884 | 43,454 |
Valuation allowance | -66,107 | -43,404 |
Net deferred tax assets | $777 | $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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Computed tax at statutory rates: | ($8,677) | ($4,478) | ($5,046) |
Permanent differences | 225 | -122 | 362 |
Difference resulting from state income taxes, net of federal income tax benefits | -60 | 128 | -337 |
Change in valuation allowance | 10,124 | -7,453 | 4,678 |
Release of valuation allowance | -2,680 | 0 | 0 |
Effective Income Tax Rate Reconciliation, Release of Deferred Tax Assets Valuation Allowance, Percent | 10.50% | 0.00% | 0.00% |
Effect of tax credits | -586 | -1,954 | -100 |
Foreign tax differential | 432 | -556 | 922 |
Uncertain tax positions | -142 | 404 | 0 |
Change in control limitations on net operating losses | 0 | 12,824 | 0 |
Foreign withholding taxes | 804 | 1,342 | 0 |
Change in tax rates | 1,403 | 1,881 | 0 |
Other, net | -327 | 480 | 673 |
Income tax expense | $516 | $2,496 | $1,152 |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Computed tax at statutory rates: | 34.00% | 35.00% | 35.00% |
Permanent differences | -0.90% | 1.00% | -3.00% |
Difference resulting from state income taxes, net of federal income tax benefits | 0.20% | -1.00% | 2.00% |
Change in valuation allowance | -39.60% | 58.30% | -32.00% |
Effect of tax credits | 2.30% | 15.30% | 1.00% |
Foreign tax differential | -1.70% | 4.30% | -6.00% |
Uncertain tax positions | 0.60% | -3.20% | 0.00% |
Change in control limitations on net operating losses | 0.00% | -100.20% | 0.00% |
Foreign withholding taxes | -3.20% | -10.50% | 0.00% |
Change in tax rates | -5.50% | -14.70% | 0.00% |
Other, net | 1.30% | -3.80% | -5.00% |
Total | -2.00% | -19.50% | -8.00% |
Income_Taxes_Unrecognized_Tax_
Income Taxes - Unrecognized Tax Benefits (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Income Tax Disclosure [Abstract] | ||
Unrecognized income tax benefits beginning of year | $4,207 | $3,904 |
Additions to unrecognized tax benefits taken during the period | 271 | 303 |
Additions to unrecognized tax benefits as a result of positions taken in prior periods | 1,806 | 0 |
Reductions to unrecognized benefits as a result of positions taken during the period | -2,273 | 0 |
Additions to unrecognized tax benefits as a result of current year acquisitions | 5,707 | 4,207 |
Unrecognized Tax Benefits, Increase Resulting from Acquisition | $1,696 | $0 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Operating Loss Carryforwards [Line Items] | ||
Deferred tax assets net of valuation allowance | $777,000 | $50,000 |
Foreign Withholding Taxes Included in Income Tax Expense | 800,000 | |
Cumulative interest related to income tax matters | 1,400,000 | |
Interest expense related to income tax matters | 1,000,000 | |
Undistributed earnings of foreign subsidiaries | 21,000,000 | |
Current Operations [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Increase (decrease) in valuation allowance | 12,000,000 | |
Change in Tax Rate [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Increase (decrease) in valuation allowance | -1,400,000 | |
Uncertain Tax Position Liability Offsets to Net Deferred Tax Assets [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Increase (decrease) in valuation allowance | -1,200,000 | |
Stoke [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Increase (decrease) in valuation allowance | 15,100,000 | |
Internal Revenue Service (IRS) [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Available tax credit carryforwards | 1,300,000 | |
Tax credit carryforwards, used to offest unrecognized tax liabilities | 400,000 | |
Internal Revenue Service (IRS) [Member] | Stoke [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards | 62,000,000 | |
Operating loss carryforwards, unable to offset future taxable income | 57,000,000 | |
Internal Revenue Service (IRS) [Member] | Stoke [Member] | Research Tax Credit Carryforward [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Tax credit carryforwards, unable to be used | 6,200,000 | |
Canada Revenue Agency [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Available tax credit carryforwards | 2,100,000 | |
Tax credit carryforwards, used to offest unrecognized tax liabilities | 1,300,000 | |
Ministry of Finance, India [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Increase (decrease) in valuation allowance | -1,200,000 | |
State Administration of Taxation, China [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards | 1,000,000 | |
Canada Revenue Agency and State Administration of Taxation, China [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Deferred tax assets net of valuation allowance | 1,500,000 | |
U.S. Federal [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards | 115,000,000 | |
Foreign Tax Authority [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards | 18,300,000 | |
Net operating losses not subject to expiration | 15,300,000 | |
Net operating losses subject to expiration | $3,000,000 |
Financial_Instruments_Addition
Financial Instruments - Additional Information (Detail) (Customer [Member]) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Customer | Customer | Customer | |
Accounts Receivable [Member] | |||
Concentration Risk [Line Items] | |||
Number of customers | 2 | ||
Concentration credit risk | 0.00% | ||
Revenues [Member] | |||
Concentration Risk [Line Items] | |||
Number of customers | 1 | 4 | 4 |
Concentration credit risk | 39.00% | 58.00% | 46.00% |
Segment_and_Geographic_Informa2
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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenue | $129,795 | $101,308 | $73,840 |
Long-Lived Assets | 17,606 | 11,122 | 12,556 |
North America [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenue | 71,479 | 48,130 | 37,314 |
Long-Lived Assets | 15,317 | 8,475 | 9,627 |
EMEA (or Europe, Middle East and Africa) [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenue | 40,772 | 38,469 | 20,547 |
Long-Lived Assets | 1,295 | 1,888 | 2,314 |
APAC (or Asia-Pacific) [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenue | 17,544 | 14,709 | 15,979 |
Long-Lived Assets | $994 | $759 | $615 |
Segment_and_Geographic_Informa3
Segment and Geographic Information - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 1 |
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, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total Revenues | $33,727 | $34,052 | $33,287 | $28,729 | $27,147 | $25,971 | $25,752 | $22,438 | |||
Gross Profit | 18,500 | 17,982 | 18,432 | 16,032 | 15,737 | 12,449 | 13,492 | 14,457 | 70,946 | 56,135 | 43,381 |
Operating loss | -8,783 | -3,837 | -2,230 | -2,222 | -1,735 | -3,407 | -869 | -1,697 | -17,072 | -7,708 | -14,563 |
Net loss | ($12,295) | ($5,805) | ($3,891) | ($4,045) | ($2,842) | ($4,513) | ($3,641) | ($4,294) | ($26,036) | ($15,290) | ($15,569) |
Net loss per share: | |||||||||||
Basic and diluted (in dollars per share) | ($0.43) | ($0.21) | ($0.16) | ($0.17) | ($0.22) | ($3.35) | ($2.72) | ($3.21) | ($1) | ($3.57) | ($12.09) |
Subsequent_Events_Subsequent_E
Subsequent Events Subsequent Event - Additional Information (Details) (Subsequent Event [Member], USD $) | 0 Months Ended | 1 Months Ended | 0 Months Ended |
In Millions, except Share data, unless otherwise specified | Feb. 28, 2015 | Jan. 31, 2015 | Jan. 01, 2015 |
Subsequent Event [Line Items] | |||
Business Combination, Estimated Consideration to be Received for Acquisition | $560 | ||
Ulticom, Inc. [Member] | |||
Subsequent Event [Line Items] | |||
Consideration transferred for acquisition | $20 | ||
2013 Plan [Member] | |||
Subsequent Event [Line Items] | |||
Increase (decrease) in number of shares available for grant | 1,301,176 | ||
ESPP [Member] | |||
Subsequent Event [Line Items] | |||
Increase (decrease) in number of shares available for grant | 289,150 |