Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Nov. 01, 2013 | |
Document Information [Line Items] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'GLUU | ' |
Entity Registrant Name | 'GLU MOBILE INC | ' |
Entity Central Index Key | '0001366246 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 77,956,856 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $27,658 | $22,325 |
Accounts receivable, net | 11,282 | 11,881 |
Prepaid royalties | 41 | 0 |
Prepaid expenses and other | 4,615 | 5,167 |
Total current assets | 43,596 | 39,373 |
Property and equipment, net | 5,149 | 5,026 |
Restricted cash | 1,730 | 0 |
Other long-term assets | 566 | 227 |
Intangible assets, net | 6,465 | 10,889 |
Goodwill | 19,477 | 19,440 |
Total assets | 76,983 | 74,955 |
Current liabilities: | ' | ' |
Accounts payable | 8,540 | 7,269 |
Accrued liabilities | 2,170 | 2,124 |
Accrued compensation | 3,620 | 5,989 |
Accrued royalties | 1,250 | 2,781 |
Accrued restructuring | 0 | 4 |
Deferred revenues | 10,544 | 11,711 |
Total current liabilities | 26,124 | 29,878 |
Other long-term liabilities | 2,706 | 6,190 |
Total liabilities | 28,830 | 36,068 |
Commitments and contingencies (Note 7) | ' | ' |
Stockholders' equity: | ' | ' |
Preferred stock, $0.0001 par value; 5,000 shares authorized at September 30, 2013 and December 31, 2012; no shares issued and outstanding at September 30, 2013 and December 31, 2012 | 0 | 0 |
Common stock, $0.0001 par value: 250,000 shares authorized at September 30, 2013 and December 31, 2012; 77,925 and 66,022 shares issued and outstanding at September 30, 2013 and December 31, 2012, respectively | 8 | 6 |
Additional paid-in capital | 296,611 | 271,016 |
Accumulated other comprehensive income/(loss) | 222 | 167 |
Accumulated deficit | -248,688 | -232,302 |
Total stockholders' equity | 48,153 | 38,887 |
Total liabilities and stockholders' equity | $76,983 | $74,955 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, except Per Share data, unless otherwise specified | ||
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 5,000 | 5,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 250,000 | 250,000 |
Common stock, shares issued | 77,925 | 66,022 |
Common stock, shares outstanding | 77,925 | 66,022 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Revenues | $21,722 | $26,099 | $70,772 | $81,872 |
Cost of revenues: | ' | ' | ' | ' |
Platform commissions, royalties and other | 7,436 | 6,946 | 22,568 | 22,248 |
Impairment of prepaid royalties and guarantees | 435 | 0 | 435 | 0 |
Amortization of intangible assets | 1,082 | 1,025 | 3,234 | 2,710 |
Total cost of revenues | 8,953 | 7,971 | 26,237 | 24,958 |
Gross profit | 12,769 | 18,128 | 44,535 | 56,914 |
Operating expenses: | ' | ' | ' | ' |
Research and development | 11,405 | 9,979 | 34,259 | 40,709 |
Sales and marketing | 5,361 | 5,545 | 15,512 | 14,621 |
General and administrative | 3,617 | 2,466 | 11,388 | 11,388 |
Amortization of intangible assets | 229 | 495 | 1,219 | 1,485 |
Impairment of goodwill | 0 | 3,613 | 0 | 3,613 |
Restructuring charge | 0 | 213 | 1,448 | 533 |
Total operating expenses | 20,612 | 22,311 | 63,826 | 72,349 |
Loss from operations | -7,843 | -4,183 | -19,291 | -15,435 |
Interest and other income/(expense), net: | ' | ' | ' | ' |
Interest income | 4 | 5 | 11 | 17 |
Other income/(expense), net | -159 | -460 | 129 | -628 |
Interest and other income/(expense), net | -155 | -455 | 140 | -611 |
Loss before income taxes | -7,998 | -4,638 | -19,151 | -16,046 |
Income tax benefit | 30 | 1,075 | 2,765 | 2,654 |
Net loss | ($7,968) | ($3,563) | ($16,386) | ($13,392) |
Net loss per common share - basic and diluted | ($0.11) | ($0.06) | ($0.24) | ($0.21) |
Weighted average common shares outstanding - basic and diluted | 71,529 | 64,562 | 69,246 | 63,865 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Net Loss | ($7,968) | ($3,563) | ($16,386) | ($13,392) | ||||
Other comprehensive income: | ' | ' | ' | ' | ||||
Foreign currency translation adjustments | 160 | 436 | 293 | 140 | ||||
Reclassification to net loss | 0 | [1] | 0 | [1] | -238 | [1] | 0 | [1] |
Other comprehensive income | 160 | 436 | 55 | 140 | ||||
Comprehensive loss | ($7,808) | ($3,127) | ($16,331) | ($13,252) | ||||
[1] | The reclassification to net loss relates to the write-off of cumulative translation adjustment upon substantial liquidation of the Company's Brazilian entity and is recognized in Restructuring charge in the Company's unaudited condensed consolidated statement of operations for the nine months ended September 30, 2013. |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash flows from operating activities: | ' | ' |
Net Loss | ($16,386) | ($13,392) |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' |
Depreciation | 2,025 | 1,672 |
Amortization of intangible assets | 4,453 | 4,195 |
Stock-based compensation | 2,701 | 3,996 |
Change in fair value of Blammo earnout | -49 | 77 |
Non-cash warrant expense | 427 | 0 |
Non-cash foreign currency remeasurement (gain)/loss | -108 | 628 |
Impairment of goodwill | 0 | 3,613 |
Impairment of prepaid royalties and guarantees | 435 | 0 |
Non-cash restructuring charges | 244 | 0 |
Changes in allowance for doubtful accounts | 11 | 300 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | 513 | -175 |
Prepaid royalties | -476 | 454 |
Prepaid expenses and other assets | 398 | -1,485 |
Accounts payable | 306 | 30 |
Accrued liabilities | 47 | -377 |
Accrued compensation | -536 | 57 |
Accrued royalties | -1,529 | -1,062 |
Deferred revenues | -1,179 | 248 |
Accrued restructuring charge | -161 | -769 |
Other long-term liabilities | -2,655 | -3,138 |
Net cash used in operating activities | -11,519 | -5,128 |
Cash flows used in investing activities: | ' | ' |
Purchase of property and equipment | -1,328 | -1,740 |
Purchase of intangible assets | 0 | -5,000 |
Restricted cash | -1,730 | 0 |
Other investing activities | -200 | 0 |
Net cash received from acquisitions | 0 | 913 |
Net cash used in investing activities | -3,258 | -5,827 |
Cash flows from financing activities: | ' | ' |
Proceeds from public offering | 14,214 | 0 |
Proceeds from exercise of warrants and issuance of common stock | 4,329 | 619 |
Proceeds from exercise of stock options and ESPP | 1,549 | 2,450 |
Net cash provided by financing activities | 20,092 | 3,069 |
Effect of exchange rate changes on cash | 18 | -275 |
Net increase/(decrease) in cash and cash equivalents | 5,333 | -8,161 |
Cash and cash equivalents at beginning of period | 22,325 | 32,212 |
Cash and cash equivalents at end of period | 27,658 | 24,051 |
Supplemental disclosure of cash flow information | ' | ' |
Common stock issued for property and equipment | 189 | 0 |
Common stock issued for acquisitions | $0 | $2,796 |
The_Company_Basis_of_Presentat
The Company, Basis of Presentation and Summary of Significant Accounting Policies | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
The Company, Basis of Presentation and Summary of Significant Accounting Policies | ' | ||||||||||||||||
Note 1 – The Company, Basis of Presentation and Summary of Significant Accounting Policies | |||||||||||||||||
Glu Mobile Inc. (the “Company” or “Glu”) was incorporated in Nevada in May 2001 and reincorporated in the state of Delaware in March 2007. The Company develops and publishes a portfolio of action/adventure and casual games designed to appeal to a broad cross section of the users of smartphones and tablet devices who purchase its games through direct-to-consumer digital storefronts, such as the Apple App Store, Google Play store, Amazon Appstore, and others (“Digital Storefronts”). The Company creates games based on its own original intellectual property as well as third-party licensed brands. | |||||||||||||||||
The Company has incurred recurring losses from operations since inception and had an accumulated deficit of $248,688 as of September 30, 2013. For the three months ended September 30, 2013, the Company incurred a net loss of $7,968. For the nine months ended September 30, 2013, the Company incurred a net loss of $16,386. The Company may incur additional operating losses and negative cash flows in the future. Failure to generate sufficient revenues, reduce spending or raise additional capital could adversely affect the Company’s ability to achieve profitability and its intended business objectives. | |||||||||||||||||
Principles of Consolidation and Basis of Presentation | |||||||||||||||||
The accompanying unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles (“GAAP”) in the United States for complete financial statements and should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012 as amended by Amendment No. 1 filed with the SEC on August 9, 2013. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments, consisting only of normal recurring adjustments, which the Company believes are necessary for a fair statement of the Company’s financial position as of September 30, 2013 and its unaudited condensed consolidated results of operations for the three and nine months ended September 30, 2013 and 2012 (restated), respectively. These unaudited condensed consolidated financial statements are not necessarily indicative of the results to be expected for the entire year. The unaudited condensed consolidated balance sheet presented as of December 31, 2012 (restated) has been derived from the audited consolidated financial statements as of that date, and the unaudited condensed consolidated balance sheet presented as of September 30, 2013 has been derived from the unaudited condensed consolidated financial statements as of that date. | |||||||||||||||||
The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated. | |||||||||||||||||
Concentration of Credit Risk | |||||||||||||||||
Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash, cash equivalents that were held in operating bank accounts and accounts receivable. | |||||||||||||||||
The Company derives its accounts receivable from revenues earned from customers or through Digital Storefronts located in the U.S. and other locations outside of the U.S. The Company performs ongoing credit evaluations of its customers’ and the Digital Storefronts’ financial condition and currently does not require any collateral from its customers or the Digital Storefronts. The Company bases its allowance for doubtful accounts on management’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable. The Company reviews past due balances over a specified amount individually for collectability on a monthly basis and all other balances quarterly. The Company writes off accounts receivable balances against the allowance when it determines that the amount will not be recovered. | |||||||||||||||||
The following table summarizes the revenues from customers or aggregate purchases through Digital Storefronts that accounted for more than 10% of the Company’s revenues for the periods indicated: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(Restated) | (Restated) | ||||||||||||||||
Apple | 50.3 | % | 37.5 | % | 50.4 | % | 40.9 | % | |||||||||
18.7 | 20.3 | 18.7 | 19.2 | ||||||||||||||
Tapjoy | — | 12.7 | — | 10.8 | |||||||||||||
At September 30, 2013, Apple accounted for 45.7% of total accounts receivable. At December 31, 2012, Apple accounted for 44.3%, PlayHaven accounted for 13.2% and Google accounted for 10.8% of total accounts receivable. No other customer or Digital Storefront represented more than 10% of the Company’s total accounts receivable as of these dates. | |||||||||||||||||
Recent Accounting Pronouncements | |||||||||||||||||
In February 2013, the FASB issued ASU 2013-2, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. This guidance requires the presentation of the effects on the line items of net income of significant amounts reclassified out of accumulated other comprehensive income, but only if the item reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. The guidance is effective for fiscal years beginning after December 15, 2012. During the three and nine months ended September 30, 2013, the Company adopted this guidance and reclassified the accumulated translation adjustment related to its Brazilian subsidiary out of accumulated other comprehensive income to restructuring charge in the Company’s unaudited condensed consolidated statement of operations upon the substantially complete liquidation of the entity. | |||||||||||||||||
In July 2013, the FASB issued ASU 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. Under this guidance, an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. This accounting guidance will not have a material impact on the Company’s condensed consolidated financial statements once adopted. |
Restatement_of_Financial_State
Restatement of Financial Statements | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Restatement of Financial Statements | ' | ||||||||||||||||||||||||
Note 1A – Restatement of Financial Statements | |||||||||||||||||||||||||
Restatement Background | |||||||||||||||||||||||||
While preparing the Company’s financial outlook for the third quarter and full year of 2013, the Company’s management consulted with PricewaterhouseCoopers LLP, the Company’s independent registered public accounting firm, regarding the appropriate revenue recognition methodology for a new type of online-only game – the Company’s “Games-as-a-Service” titles – that the Company expects to introduce in the fourth quarter of 2013. The Company expects that these titles will primarily be sold through Digital Storefronts. As a result of these discussions, it was determined that revenues generated from sales to end customers through the Digital Storefronts of the Company’s existing games should have been recorded on a gross basis because, upon further review of the agreements with the Digital Storefronts, it was determined that the Company should be considered the principal in the sales transaction. The Company has therefore corrected its revenue recognition policy to record on a gross basis the revenues attributable to sales to end customers through the Digital Storefronts. | |||||||||||||||||||||||||
Accordingly, the Company has restated its previously issued consolidated financial statements for the years ended December 31, 2011 and 2012 and our unaudited condensed consolidated financial statements for the three and nine months ended September 30, 2012 to correct for the error in its presentation of smartphone revenues and cost of revenues, as well as corresponding adjustments to the Company’s deferred revenues and deferred cost of revenues. This resulted in an increase in the Company’s previously reported revenues and a corresponding identical increase in cost of revenues. This decreased the Company’s gross margin (gross profit as a percent of revenue) in each reporting period, but had no effect on gross profit, operating income/(loss), net income/(loss), cash flows or any per share amounts for any period. In addition, these changes did not change the timing of recognition of any revenues or costs among reporting periods. | |||||||||||||||||||||||||
The following table summarizes the Condensed Consolidated Balance Sheet at December 31, 2012 as reported on the Company’s Form 10-K filed on March 15, 2013, compared to the restated accounts as reported on the Company’s Form 10-K/A filed on August 9, 2013: | |||||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||
As Reported | Adjustments | As Restated | |||||||||||||||||||||||
Prepaid expenses and other | $ | 2,487 | $ | 2,680 | $ | 5,167 | |||||||||||||||||||
Total assets | 72,275 | 2,680 | 74,955 | ||||||||||||||||||||||
Deferred revenues | 9,031 | 2,680 | 11,711 | ||||||||||||||||||||||
Total liabilities | 33,388 | 2,680 | 36,068 | ||||||||||||||||||||||
Total liabilities and stockholders’ equity | 72,275 | 2,680 | 74,955 | ||||||||||||||||||||||
The following table summarizes the Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2012, as reported on the Company’s Form 10-Q filed on November 9, 2012, compared to the restated accounts as reported on the Company’s Form 10-K/A filed on August 9, 2013: | |||||||||||||||||||||||||
Three Months Ended September 30, 2012 | Nine Months Ended September 30, 2012 | ||||||||||||||||||||||||
(unaudited) | (unaudited) | ||||||||||||||||||||||||
As Reported | Adjustments | As Restated | As Reported | Adjustments | As Restated | ||||||||||||||||||||
Revenues | $ | 21,347 | $ | 4,752 | $ | 26,099 | $ | 66,512 | $ | 15,360 | $ | 81,872 | |||||||||||||
Cost of revenues: | |||||||||||||||||||||||||
Platform commissions, royalties and other | 2,194 | 4,752 | 6,946 | 6,888 | 15,360 | 22,248 | |||||||||||||||||||
Amortization of intangible assets | 1,025 | — | 1,025 | 2,710 | — | 2,710 | |||||||||||||||||||
Total cost of revenues | 3,219 | 4,752 | 7,971 | 9,598 | 15,360 | 24,958 | |||||||||||||||||||
Gross profit | $ | 18,128 | $ | — | $ | 18,128 | $ | 56,914 | $ | — | $ | 56,914 | |||||||||||||
The following table summarizes the Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2012, as reported on the Company’s Form 10-Q filed on November 9, 2012, compared to the restated accounts as reported on the Company’s Form 10-K/A filed on August 9, 2013: | |||||||||||||||||||||||||
Nine Months Ended September 30, 2012 | |||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||
As Reported | Adjustments | As Restated | |||||||||||||||||||||||
Changes in operating assets and liabilities, net of effect of acquisitions: | |||||||||||||||||||||||||
Prepaid expenses and other assets | $ | (1,247 | ) | $ | (238 | ) | $ | (1,485 | ) | ||||||||||||||||
Deferred revenues | 10 | 238 | 248 | ||||||||||||||||||||||
Net cash used in operating activities | (5,128 | ) | — | (5,128 | ) |
Net_Loss_Per_Share
Net Loss Per Share | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Net Loss Per Share | ' | ||||||||||||||||
Note 2 – Net Loss Per Share | |||||||||||||||||
The Company computes basic net loss per share by dividing its net loss for the period by the weighted average number of common shares outstanding during the period less the weighted average unvested common shares subject to restrictions imposed by the Company. | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Net loss | $ | (7,968 | ) | $ | (3,563 | ) | $ | (16,386 | ) | $ | (13,392 | ) | |||||
Basic and diluted shares: | |||||||||||||||||
Weighted average common shares outstanding | 71,619 | 65,270 | 69,337 | 64,584 | |||||||||||||
Weighted average unvested common shares subject to restrictions | (90 | ) | (708 | ) | (91 | ) | (719 | ) | |||||||||
Weighted average shares used to compute basic and diluted net loss per share | 71,529 | 64,562 | 69,246 | 63,865 | |||||||||||||
Net loss per share — basic and diluted | $ | (0.11 | ) | $ | (0.06 | ) | $ | (0.24 | ) | $ | (0.21 | ) | |||||
The following weighted average options to purchase common stock, warrants to purchase common stock, unvested shares of common stock subject to restrictions, shares contingently issuable in connection with the Blammo earnout (as described below in Note 3 – Fair Value Measurements), and restricted stock units (“RSUs”) have been excluded from the computation of diluted net loss per share of common stock for the periods presented because including them would have had an anti-dilutive effect: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Warrants to purchase common stock | 3,813 | 4,140 | 2,978 | 4,261 | |||||||||||||
Unvested common shares subject to restrictions | 90 | 708 | 91 | 719 | |||||||||||||
Options to purchase common stock | 10,512 | 10,338 | 10,570 | 10,108 | |||||||||||||
Contingently issuable shares of common stock | — | — | 251 | — | |||||||||||||
RSUs | 1,025 | — | 521 | — | |||||||||||||
15,440 | 15,186 | 14,411 | 15,088 | ||||||||||||||
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Fair Value Measurements | ' | ||||||||
Note 3 – Fair Value Measurements | |||||||||
Fair Value Measurements | |||||||||
The Company accounts for fair value in accordance with ASC 820, Fair Value Measurements and Disclosures (“ASC 820”). Fair value is defined under ASC 820 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. Valuation techniques used to measure fair value under ASC 820 must maximize the use of observable inputs and minimize the use of unobservable inputs. The Company uses a three-tier hierarchy, which prioritizes the inputs used in measuring fair value as follows: | |||||||||
Level 1 - Quoted prices in active markets for identical assets or liabilities. | |||||||||
Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | |||||||||
Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. | |||||||||
The Company’s cash and cash equivalents, which were held in operating bank accounts, are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices, broker or dealer quotations or alternative pricing sources with reasonable levels of price transparency. As of September 30, 2013 and December 31, 2012, the Company had $27,658 and $22,325, respectively, in cash and cash equivalents. In addition, the Company’s restricted cash is classified within Level 1 of the fair value hierarchy. The carrying value of accounts receivable and payables approximates fair value due to the short time to expected receipt of payment or cash. | |||||||||
Liabilities for Contingent Consideration | |||||||||
On August 1, 2011, the Company completed the acquisition of Blammo Games Inc. (“Blammo”), by entering into a Share Purchase Agreement (the “Share Purchase Agreement”) by and among the Company, Blammo and each of the owners of the outstanding share capital of Blammo (the “Sellers”). Blammo is a developer of free-to-play games for the iOS platform located in Toronto, Canada. Pursuant to the terms of the Share Purchase Agreement, the Company agreed to issue to the Sellers, in the aggregate, (i) 1,000 shares of the Company’s common stock plus (2) up to an additional 3,313 shares of the Company’s common stock (the “Additional Shares”) if Blammo achieves certain Net Revenue (as such term is defined in the Share Purchase Agreement) targets during the year ended March 31, 2013 and the years ending March 31, 2014 and March 31, 2015. | |||||||||
On May 16, 2013, the Company issued 742 shares of common stock to the former Blammo shareholders based on the Net Revenue that Blammo achieved for its fiscal year ended March 31, 2013. Since the contingency related to the number of shares earned in connection with the target for the year ended March 31, 2013 was resolved and the number of shares became fixed as of March 31, 2013, the fair value of these shares as then last remeasured in the amount of $2,263 has been presented in additional paid-in capital in the Company’s unaudited condensed consolidated balance sheet since March 31, 2013. The remaining Additional Shares will be issued to the Sellers if, and to the extent that, Blammo achieves certain Net Revenue performance targets as follows: (i) for fiscal 2014 (April 1, 2013 through March 31, 2014), (a) 417 Additional Shares will be issued to the Sellers if, and only in the event that, Blammo meets its Baseline Net Revenue goal for such fiscal year, and (b) up to an additional 833 Additional Shares will be issued to the Sellers to the extent that Blammo exceeds its Baseline Net Revenue goal and meets its Upside Net Revenue goal for such fiscal year, and (ii) for fiscal 2015 (April 1, 2014 through March 31, 2015), (a) no Additional Shares will be issued to the Sellers if Blammo does not meet its Baseline Net Revenue goal for such fiscal year and (b) up to 1,154 Additional Shares will be issued to the Sellers to the extent that Blammo exceeds its Baseline Net Revenue goal and meets its Upside Net Revenue goal for such fiscal year. To the extent that Blammo meets its Baseline Net Revenue goal for a fiscal year but does not meet its Upside Net Revenue goal for such fiscal year, Additional Shares will be issued to the Sellers on a straight-line basis based on the amount by which Blammo exceeded the Baseline Net Revenue goal. Blammo’s Baseline and Upside Net Revenue goals for fiscal 2014 and 2015 are as follows: | |||||||||
Fiscal Year | Baseline Net Revenue | Upside Net Revenue | |||||||
Fiscal 2014 | $ | 5,500 | $ | 10,000 | |||||
Fiscal 2015 | $ | 8,500 | $ | 15,000 | |||||
Three of the five Sellers are also employees of Blammo. If any of these employee Sellers voluntarily terminates his employment with Blammo (other than because of a disability that prevents him from performing his job) or if the Company or Blammo terminates such Seller’s employment for Cause (as defined in the Share Purchase Agreement), then such Seller will be eligible to receive Additional Shares if and when such Additional Shares are earned as described above only with respect to the fiscal year in which such termination of employment occurs (and all previous fiscal years to the extent applicable), but not with respect to any Additional Shares issued in any subsequent fiscal year. In such an event, the Additional Shares that such Seller would have otherwise received will be forfeited and will not be issued by the Company or distributed to the other Sellers, but the other Sellers’ rights to receive Additional Shares will not otherwise be affected. The fair value of the contingent consideration issued to the three Sellers who are also employees of Blammo is not considered part of the purchase price, since vesting is contingent upon these employees’ continued service during the earn-out periods. The Company records the contingent consideration issued to these employees as a compensation expense over the earn-out period of one to three years. See Note 9 for further details. In accordance with ASC 805, Business Combinations, non-employee contingent consideration issued to the two Sellers who are not employees of Blammo was recorded as part of the purchase accounting and is fair valued at each subsequent reporting period. The total fair value of the non-employee contingent consideration liability has been estimated at $12 and $412 as of September 30, 2013 and December 31, 2012, respectively. During the three months ended September 30, 2013 and 2012, the Company recorded fair value benefit adjustments of $31 and $954, respectively, which represent the changes in fair value of the contingent consideration for both respective periods. During the nine months ended September 30, 2013 and 2012, the Company recorded fair value benefit and expense adjustments of $49 and $77, respectively, which represent the changes in fair value of the non-employee contingent consideration for both respective periods. In accordance with ASC 805, changes in the fair value of non-employee contingent consideration are recognized in general and administrative expense in the Company’s unaudited condensed consolidated statements of operations. | |||||||||
Level 3 liabilities consist of acquisition-related liabilities for contingent consideration (i.e., earnouts) related to the acquisition of Blammo. As of December 31, 2012, the Company recorded a contingent consideration liability of $2,512, of which $1,855 was recorded as a current liability in accrued compensation as settlement was less than one year. As of September 30, 2013, the Company recorded a contingent consideration liability of $66, of which $21 was recorded as a current liability in accrued compensation as settlement is less than one year. The Company uses a risk-neutral framework to estimate the probability of achieving the revenue targets set forth above for each year. The fair value of the contingent consideration was determined using a digital option, which captures the present value of the expected payment multiplied by the probability of reaching the revenue targets for each year. Key assumptions for the three months ended September 30, 2013 included a discount rate of 35.0%, volatility of 35.0%, risk-free interest rates of between 0.04% and 0.22% and probability-adjusted revenue levels. Key assumptions for the three months ended September 30, 2012 included a discount rate of 25.0%, volatility of 41.0%, risk free interest rates of between 0.14% and 0.27% and probability-adjusted revenue levels. Probability-adjusted revenue is a significant input that is not observable in the market, which ASC 820 refers to as a Level 3 input. |
Balance_Sheet_Components
Balance Sheet Components | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Balance Sheet Components | ' | ||||||||
Note 4 – Balance Sheet Components | |||||||||
Accounts Receivable | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Accounts receivable | $ | 11,725 | $ | 12,313 | |||||
Less: Allowance for doubtful accounts | (443 | ) | (432 | ) | |||||
$ | 11,282 | $ | 11,881 | ||||||
Accounts receivable includes amounts billed and unbilled as of the respective balance sheet dates, but net of platform commissions to our digital storefronts. The Company had no significant bad debts during the three and nine months ended September 30, 2013 and 2012. | |||||||||
Prepaid expenses and other | |||||||||
Prepaid expenses and other includes platform commissions of $2,432 and $2,680 (restated) that have been deferred as of September 30, 2013 and December 31, 2012, respectively. | |||||||||
Property and Equipment | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Computer equipment | $ | 6,087 | $ | 6,255 | |||||
Furniture and fixtures | 664 | 566 | |||||||
Software | 6,207 | 6,304 | |||||||
Leasehold improvements | 2,742 | 2,227 | |||||||
15,700 | 15,352 | ||||||||
Less: Accumulated depreciation and amortization | (10,551 | ) | (10,326 | ) | |||||
$ | 5,149 | $ | 5,026 | ||||||
Depreciation expense for the three months ended September 30, 2013 and September 30, 2012 was $633 and $554, respectively. Depreciation expense for the nine months ended September 30, 2013 and September 30, 2012 was $2,025 and $1,672, respectively. | |||||||||
Other Long-Term Liabilities | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Uncertain tax position obligations | 889 | 3,859 | |||||||
Contingent earnout liability | 45 | 657 | |||||||
Deferred income tax liability | 669 | 647 | |||||||
Deferred rent and other | 1,103 | 1,027 | |||||||
$ | 2,706 | $ | 6,190 | ||||||
Business_Combinations
Business Combinations | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Business Combinations | ' | ||||
Note 5 – Business Combinations | |||||
GameSpy Industries, Inc. | |||||
On August 2, 2012, the Company completed the acquisition of GameSpy Industries, Inc. (“GameSpy”) pursuant to an Agreement and Plan of Merger (the “GameSpy Merger Agreement”) by and among the Company, Galileo Acquisition Corp., a California corporation and wholly owned subsidiary of the Company (“Galileo”), IGN Entertainment, Inc. (“IGN”) and GameSpy. GameSpy, which is based in California, provides technology and services for multiplayer and server-based gaming. The Company acquired GameSpy as part of its efforts to enhance the monetization and retention of the Company’s players by incorporating GameSpy’s expertise in community functionality, synchronous multiplayer and asynchronous player versus player mechanics into the Company’s games. | |||||
Pursuant to the terms of the GameSpy Merger Agreement, the Company issued to IGN, as GameSpy’s sole shareholder, in exchange for all of the issued and outstanding shares of GameSpy capital stock, a total of 600 shares of the Company’s common stock, for consideration of approximately $2,796, based on the $4.66 closing price of the Company’s common stock on The NASDAQ Global Market on August 2, 2012; 90 shares of which continue to be held in escrow as security pending resolution of an indemnification claim made by the Company under the GameSpy Merger Agreement. In addition, the Company, GameSpy and IGN entered into a Transition Services Agreement, pursuant to which IGN will provide to the Company and GameSpy certain backend data center transition services related to GameSpy’s private cloud storage infrastructure for up to two years following the acquisition. | |||||
The allocation of the GameSpy purchase price was based upon valuations for certain assets acquired and liabilities assumed. The valuation was based upon calculations and valuations, and the Company’s estimates and assumptions are subject to change as the Company obtains additional information for its estimates during the respective measurement periods (up to one year from the acquisition date). The following table summarizes the fair values of assets acquired and liabilities assumed at the date of acquisition: | |||||
Cash | $ | 913 | |||
Accounts receivable, net | 1,695 | ||||
Property and equipment | 485 | ||||
Intangible assets: | |||||
Customer contract and related relationships | 250 | ||||
Titles, content and technology | 1,300 | ||||
Goodwill | 1,096 | ||||
Total assets acquired | 5,739 | ||||
Liabilities assumed: | |||||
Other accrued liabilities | (689 | ) | |||
Deferred revenue | (1,684 | ) | |||
Deferred tax liability | (570 | ) | |||
Total liabilities acquired | (2,943 | ) | |||
Net acquired assets | $ | 2,796 | |||
Acquisition-related intangibles included in the above table are finite-lived and are being amortized on a straight-line basis over their estimated lives of two to three years, which approximates the pattern in which the economic benefits of the intangible assets are expected to be realized. | |||||
In connection with the acquisition of GameSpy, the Company recorded net deferred tax liabilities of $570, with a corresponding adjustment to goodwill. These deferred taxes were primarily related to identifiable intangible assets and net operating losses. | |||||
The Company allocated the residual value of $1,096 to goodwill. Goodwill represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired. In accordance with ASC 350, Intangibles – Goodwill and Other (“ASC 350”), goodwill will not be amortized but will be tested for impairment at least annually. Goodwill created as a result of the GameSpy acquisition is not deductible for tax purposes. | |||||
Valuation Methodology | |||||
The Company engaged a third-party valuation firm to aid management in its analyses of the fair value of GameSpy. All estimates, key assumptions and forecasts were either provided by or reviewed by the Company. While the Company chose to utilize a third-party valuation firm, the fair value analyses and related valuations represent the conclusions of management and not the conclusions or statements of any third party. | |||||
In the valuation of GameSpy customer contracts, these contracts were valued over their remaining terms, which included consideration of moderate anticipated renewals and is consistent with market participant considerations. These contracts were fair valued using the Multi-Period Excess Earnings (“MPEE”) method of the income approach and key assumptions used included: projected revenue and operating expenses for GameSpy’s remaining contracts, the remaining contractual period of the contracts and a discount rate of 14%. The Company valued developed technology using the replacement cost method of the cost approach and based on the perceived value that a market participant would ascribe to the GameSpy technology, which allows for hosting multi-player games on mobile devices and other platforms. Key assumptions used included fully burdened headcount spending information. As of the valuation date, the fair value of GameSpy’s deferred revenue was $1,684, which reflects the costs including hosting fees, salaries and benefits, equipment and facilities to support the contractual obligations associated with these revenues, plus a market participant margin. The deferred revenue is being recognized on a straight-line basis over 24 months. | |||||
Pro Forma Financial Information (unaudited) | |||||
Pro forma results of operations of the GameSpy acquisition have not been presented because they are not material to the Company’s condensed consolidated results of operations. |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets | ' | ||||||||||||||||||||||||||||||||
Note 6 – Goodwill and Intangible Assets | |||||||||||||||||||||||||||||||||
Intangible Assets | |||||||||||||||||||||||||||||||||
The Company’s intangible assets were acquired in connection with the acquisitions of Macrospace in 2004, iFone in 2006, MIG in 2007, Superscape in 2008, Griptonite and Blammo in 2011 and GameSpy in the third quarter of 2012, as well as in connection with the purchase of the Deer Hunter trademark and brand assets from Atari, Inc. (“Atari”) in the second quarter of 2012. The carrying amounts and accumulated amortization expense of the acquired intangible assets, including the impact of foreign currency exchange translation, at September 30, 2013 and December 31, 2012 were as follows: | |||||||||||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||||||||||||||||||
Estimated | Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||||||||||||||||
Useful | Carrying | Amortization | Carrying | Carrying | Amortization | Carrying | |||||||||||||||||||||||||||
Life | Value | Expense | Value | Value | Expense | Value | |||||||||||||||||||||||||||
(Including | (Including | (Including | (Including | (Including | (Including | ||||||||||||||||||||||||||||
Impact of | Impact of | Impact of | Impact of | Impact of | Impact of | ||||||||||||||||||||||||||||
Foreign | Foreign | Foreign | Foreign | Foreign | Foreign | ||||||||||||||||||||||||||||
Exchange) | Exchange) | Exchange) | Exchange) | Exchange) | Exchange) | ||||||||||||||||||||||||||||
Intangible assets amortized to cost of revenues: | |||||||||||||||||||||||||||||||||
Titles, content and technology | 2 yrs | $ | 12,792 | $ | (11,967 | ) | $ | 825 | $ | 12,781 | $ | (11,518 | ) | $ | 1,263 | ||||||||||||||||||
Catalogs | 1 yr | 1,256 | (1,256 | ) | — | 1,257 | (1,257 | ) | — | ||||||||||||||||||||||||
ProvisionX Technology | 6 yrs | 207 | (207 | ) | — | 207 | (207 | ) | — | ||||||||||||||||||||||||
Carrier contract and related relationships | 5 yrs | 19,848 | (18,881 | ) | 967 | 19,585 | (16,421 | ) | 3,164 | ||||||||||||||||||||||||
Licensed content | 5 yrs | 3,020 | (3,020 | ) | — | 2,952 | (2,952 | ) | — | ||||||||||||||||||||||||
Service provider license | 9 yrs | 479 | (308 | ) | 171 | 467 | (262 | ) | 205 | ||||||||||||||||||||||||
Trademarks | 7 yrs | 5,228 | (1,299 | ) | 3,929 | 5,225 | (760 | ) | 4,465 | ||||||||||||||||||||||||
42,830 | (36,938 | ) | 5,892 | 42,474 | (33,377 | ) | 9,097 | ||||||||||||||||||||||||||
Other intangible assets amortized to operating expenses: | |||||||||||||||||||||||||||||||||
Emux Technology | 6 yrs | 1,339 | (1,339 | ) | — | 1,341 | (1,341 | ) | — | ||||||||||||||||||||||||
Noncompete agreement | 4 yrs | 5,186 | (4,613 | ) | 573 | 5,187 | (3,395 | ) | 1,792 | ||||||||||||||||||||||||
6,525 | (5,952 | ) | 573 | 6,528 | (4,736 | ) | 1,792 | ||||||||||||||||||||||||||
Total intangibles assets subject to amortization | $ | 49,355 | $ | (42,890 | ) | $ | 6,465 | $ | 49,002 | $ | (38,113 | ) | $ | 10,889 | |||||||||||||||||||
Acquisition-related intangibles included in the above table are finite-lived and are being amortized on a straight-line basis over their estimated lives, which approximates the pattern in which the economic benefits of the intangible assets are realized. The Company has included amortization of acquired intangible assets directly attributable to revenue-generating activities in cost of revenues. The Company has included amortization of acquired intangible assets not directly attributable to revenue-generating activities in operating expenses. The Company acquired approximately $1,550 of intangible assets as part of the GameSpy acquisition in the third quarter of 2012. | |||||||||||||||||||||||||||||||||
On April 1, 2012, the Company acquired from Atari its Deer Hunter trademark and associated domain names and also took a license to the other intellectual property associated with the Deer Hunter brand for total consideration of $5,000 in cash. The license agreement pursuant to which the Company licensed the other intellectual property associated with the Deer Hunter brand has a term equal to the longer of (i) 99 years and (ii) the expiration of the copyrights in and copyrightable elements of the Deer Hunter intellectual property assets. The acquisition price has been recorded as acquired intangible assets and classified within “Trademarks” in the above table and will be amortized over the estimated useful life of seven years. | |||||||||||||||||||||||||||||||||
During the three months ended September 30, 2013 and 2012, the Company recorded amortization expense in the amounts of $1,082 and $1,025 respectively, in cost of revenues. During the nine months ended September 30, 2013 and 2012, the Company recorded amortization expense in the amounts of $3,234 and $2,710 respectively, in cost of revenues. During the three months ended September 30, 2013 and 2012, the Company recorded amortization expense in the amounts of $229 and $495, respectively, in operating expenses. During the nine months ended September 30, 2013 and 2012, the Company recorded amortization expense in the amounts of $1,219 and $1,485, respectively, in operating expenses. | |||||||||||||||||||||||||||||||||
As of September 30, 2013, the total expected future amortization related to intangible assets was as follows: | |||||||||||||||||||||||||||||||||
Amortization | Amortization | ||||||||||||||||||||||||||||||||
Included in | Included in | Total | |||||||||||||||||||||||||||||||
Cost of | Operating | Amortization | |||||||||||||||||||||||||||||||
Period Ending December 31, | Revenues | Expenses | Expense | ||||||||||||||||||||||||||||||
2013 (remaining three months) | $ | 1,003 | $ | 95 | $ | 1,098 | |||||||||||||||||||||||||||
2014 | 1,496 | 383 | 1,879 | ||||||||||||||||||||||||||||||
2015 | 1,020 | 95 | 1,115 | ||||||||||||||||||||||||||||||
2016 | 765 | — | 765 | ||||||||||||||||||||||||||||||
2017 | 714 | — | 714 | ||||||||||||||||||||||||||||||
2018 and thereafter | 894 | — | 894 | ||||||||||||||||||||||||||||||
$ | 5,892 | $ | 573 | $ | 6,465 | ||||||||||||||||||||||||||||
Goodwill | |||||||||||||||||||||||||||||||||
The Company has goodwill attributable to its MIG, GameSpy, Blammo and Griptonite acquisitions as of September 30, 2013. The Company attributed all of the goodwill resulting from the MIG acquisition to its Asia and Pacific (“APAC”) reporting unit. The Company acquired $1,096 of goodwill during 2012 as part of the GameSpy acquisition. All of the goodwill attributable to the GameSpy, Blammo and Griptonite acquisitions has been fully assigned to the Company’s Americas reporting unit. The Company had fully impaired in prior years all goodwill allocated to its EMEA reporting unit. The goodwill allocated to the Americas reporting unit is denominated in U.S. Dollars (“USD”) and the goodwill allocated to the APAC reporting unit is denominated in Chinese Renminbi (“RMB”). As a result, the goodwill attributed to the APAC reporting unit is subject to foreign currency fluctuations. | |||||||||||||||||||||||||||||||||
In the valuation of the goodwill balance for Griptonite, Blammo, MIG and GameSpy, the Company gave consideration to the future economic benefits of other assets that were not individually identified or separately recognized. The acquired studio workforce for each of these acquisitions was estimated to have value, and since the acquired workforce is not individually identified or separately recognized, it was subsumed within the goodwill recognized as part of each business combination. The Company further planned to leverage its preexisting contractual relationships with Digital Storefronts to distribute new titles developed by the Griptonite and Blammo studios and the expected synergies are reflected in the value of the goodwill recognized. The Company also used the GameSpy acquired workforce and expertise to help build its GluOn games-as-a-service technology platform, and these synergies are reflected in the value of goodwill recognized. | |||||||||||||||||||||||||||||||||
Goodwill by reporting unit for the periods indicated was as follows: | |||||||||||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||||||||||||||||||
Americas | EMEA | APAC | Total | Americas | EMEA | APAC | Total | ||||||||||||||||||||||||||
Balance as of January 1 | |||||||||||||||||||||||||||||||||
Goodwill | $ | 42,946 | $ | 25,354 | $ | 24,251 | $ | 92,551 | $ | 41,915 | $ | 25,354 | $ | 24,220 | $ | 91,489 | |||||||||||||||||
Accumulated Impairment Losses | (24,871 | ) | (25,354 | ) | (22,886 | ) | (73,111 | ) | (24,871 | ) | (25,354 | ) | (19,273 | ) | (69,498 | ) | |||||||||||||||||
18,075 | — | 1,365 | 19,440 | 17,044 | — | 4,947 | 21,991 | ||||||||||||||||||||||||||
Goodwill Acquired during the year | — | — | — | — | 1,031 | — | — | 1,031 | |||||||||||||||||||||||||
Effects of Foreign Currency Exchange | — | — | 37 | 37 | — | — | 31 | 31 | |||||||||||||||||||||||||
Impairment Losses | — | — | — | — | — | — | (3,613 | ) | (3,613 | ) | |||||||||||||||||||||||
Balance as of period ended: | 18,075 | — | 1,402 | 19,477 | 18,075 | — | 1,365 | 19,440 | |||||||||||||||||||||||||
Goodwill | 42,946 | 25,354 | 24,288 | 92,588 | 42,946 | 25,354 | 24,251 | 92,551 | |||||||||||||||||||||||||
Accumulated Impairment Losses | (24,871 | ) | (25,354 | ) | (22,886 | ) | (73,111 | ) | (24,871 | ) | (25,354 | ) | (22,886 | ) | (73,111 | ) | |||||||||||||||||
Balance as of period ended: | $ | 18,075 | $ | — | $ | 1,402 | $ | 19,477 | $ | 18,075 | $ | — | $ | 1,365 | $ | 19,440 | |||||||||||||||||
In accordance with ASC 350, the Company’s goodwill is not amortized but is tested for impairment on an annual basis or whenever events or changes in circumstances indicate that the carrying amount of these assets may not be recoverable. Under ASC 350, the Company performs the annual impairment review of its goodwill balance as of September 30 or more frequently if triggering events occur. | |||||||||||||||||||||||||||||||||
The Company evaluates qualitative factors and overall financial performance to determine whether it is necessary to perform the first step of the multiple-step goodwill test. This step is referred to as “Step 0.” Step 0 involves, among other qualitative factors, weighing the relative impact of factors that are specific to the reporting unit as well as industry and macroeconomic factors. After assessing those various factors, if it is determined that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then the entity will need to proceed to the first step of the goodwill impairment test. ASC 350 requires a multiple-step approach to testing goodwill for impairment for each reporting unit annually, or whenever events or changes in circumstances indicate the fair value of a reporting unit is below its carrying amount. The first step measures for impairment by applying the fair value-based tests at the reporting unit level. The second step (if necessary) measures the amount of impairment by applying the fair value-based tests to individual assets and liabilities within each reporting unit. The fair value of the reporting units is estimated using a combination of the market approach, which utilizes comparable companies’ data, and/or the income approach, which uses discounted cash flows. | |||||||||||||||||||||||||||||||||
The Company has three reporting units comprised of the 1) Americas, 2) EMEA and 3) APAC regions. As of September 30, 2013, the Company had goodwill attributable to the APAC and Americas reporting units. The cash flows of these reporting units reflect the income and expenses of assets directly employed by, and liabilities related to, the operations of the reporting unit, including revenue related to local contractual relationships, but excludes revenue related to global contractual relationships such as Digital Storefronts which are owned by the U.S. and allocated directly to the Americas reporting unit. During the third quarter of 2013, the Company performed a Step 0 qualitative assessment for its Americas, EMEA, and APAC reporting units. Based on this assessment, the Company concluded that it was more likely than not that the fair value of each of the reporting units was greater than their carrying amounts, and, as a result, did not proceed to further impairment testing and accordingly did not recognize an impairment of goodwill in the three and nine months ended September 30, 2013. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Commitments and Contingencies | ' | ||||
Note 7 – Commitments and Contingencies | |||||
Leases | |||||
The Company leases office space under non-cancelable operating facility leases with various expiration dates through September 2020. Rent expense for the three months ended September 30, 2013 and 2012 was $971 and $760, respectively. Rent expense for the nine months ended September 30, 2013 and 2012 was $2,447 and $2,008, respectively. The terms of the facility leases provide for rental payments on a graduated scale. The Company recognizes rent expense on a straight-line basis over the lease period, and has accrued for rent expense incurred but not paid. The deferred rent balance was $988 and $632 at September 30, 2013 and December 31, 2012, respectively, and was included within other long-term liabilities. | |||||
In April 2013, the Company entered into a sublease for 29 square feet of office space for its new San Francisco headquarters. The term of the sublease began on May 23, 2013 and will expire on March 31, 2018. The Company provided the sub-landlord a letter of credit in the amount of $1,230 to secure its obligations under the lease. Cash deposited as a security to the letter of credit has been classified as restricted cash on the Company’s unaudited condensed consolidated balance sheet as of September 30, 2013. | |||||
In connection with the acquisition of Griptonite in 2011, the Company assumed lease obligations related to the premises located in Kirkland, Washington (the “Prior Griptonite Lease”). The Prior Griptonite Lease terminated on September 30, 2013. | |||||
In June 2013, the Company entered into a lease for 18 square feet of office space at its new location in Bellevue, Washington (the “New Griptonite Lease”). The term of the lease began on September 23, 2013 and will expire on September 30, 2020, unless the Company exercises its right to early terminate the lease effective as of September 30, 2017. The Company provided the landlord a letter of credit in the amount of $500 to secure its obligations under the lease and this amount has been classified as restricted cash on the Company’s unaudited condensed consolidated balance sheet as of September 30, 2013. In addition, the Company has provided the landlord with a guarantee of lease to guarantee the obligations under the New Griptonite Lease. | |||||
At September 30, 2013, future minimum lease payments under non-cancelable operating leases were as follows: | |||||
Minimum | |||||
Operating | |||||
Lease | |||||
Period Ending December 31, | Payments | ||||
2013 (remaining three months) | $ | 845 | |||
2014 | 3,915 | ||||
2015 | 4,054 | ||||
2016 | 3,448 | ||||
2017 | 2,684 | ||||
2018 and thereafter | 1,903 | ||||
$ | 16,849 | ||||
Minimum Guaranteed Royalties and Developer Commitments | |||||
The Company has entered into license and publishing agreements with various owners of brands and other intellectual property to develop and publish games for mobile devices. Pursuant to some of these agreements, the Company is required to pay minimum royalties or license fees over the term of the agreement regardless of actual game sales. Future minimum royalty payments as of September 30, 2013 were $145, which are due over the remaining three months of 2013. | |||||
The Company also from time to time contracts with various external software developers (“third-party developers”) to design and develop its games. The Company advances funds to these third-party developers, in installments, payable upon the completion of specified development milestones. Future developer commitments as of September 30, 2013 were $353, which are due over the next twelve months. These developer commitments reflect the Company’s minimum cash obligations but do not necessarily represent the periods in which they will be expensed. The Company expenses developer commitments as services are provided. | |||||
Income Taxes | |||||
As of September 30, 2013, unrecognized tax benefits and potential interest and penalties are classified within “other long-term liabilities” on the Company’s unaudited condensed consolidated balance sheets. As of September 30, 2013, the settlement of the Company’s income tax liabilities could not be determined; however, the liabilities are not expected to become due within the next 12 months. | |||||
Indemnification Agreements | |||||
The Company has entered into agreements under which it indemnifies each of its officers and directors during his or her lifetime for certain events or occurrences while the officer or director is or was serving at the Company’s request in that capacity. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is unlimited; however, the Company has a director and officer insurance policy that limits its exposure and enables the Company to recover a portion of any future amounts paid. As a result of its insurance policy coverage, the Company believes the estimated fair value of these indemnification agreements is minimal. Accordingly, the Company had recorded no liabilities for these agreements as of September 30, 2013 or December 31, 2012. | |||||
In the ordinary course of its business, the Company includes standard indemnification provisions in most of its license agreements with carriers and other distributors. Pursuant to these provisions, the Company generally indemnifies these parties for losses suffered or incurred in connection with its games, including as a result of intellectual property infringement, viruses, worms and other malicious software, and legal or regulatory violations. The term of these indemnity provisions is generally perpetual after execution of the corresponding license agreement, and the maximum potential amount of future payments the Company could be required to make under these provisions is often unlimited. To date, the Company has not incurred costs to defend lawsuits or settle indemnified claims of these types. As a result, the Company believes the estimated fair value of these indemnity provisions is minimal. Accordingly, the Company had recorded no liabilities for these provisions as of September 30, 2013 or December 31, 2012. | |||||
Contingencies | |||||
From time to time, the Company is subject to various claims, complaints and legal actions in the normal course of business. The Company assesses its potential liability by analyzing specific litigation and regulatory matters using available information. The Company’s estimate of losses is developed in consultation with inside and outside counsel, which involves a subjective analysis of potential results and outcomes, assuming various combinations of appropriate litigation and settlement strategies. After taking all of the above factors into account, the Company determines whether an estimated loss from a contingency should be accrued by assessing whether a loss is deemed reasonably probable and the amount can be reasonably estimated. The Company further determines whether an estimated loss from a contingency should be disclosed by assessing whether a material loss is deemed reasonably possible. Such disclosure will include an estimate of the additional loss or range of loss or will state that an estimate cannot be made. | |||||
In April 2013, Lodsys Group, LLC, a Texas limited liability company (“Lodsys”), filed a complaint in the U.S. District Court for the Eastern District of Texas alleging that the Company has been infringing two of Lodsys’ patents, and is seeking unspecified damages, including treble damages for willful infringement, interest, attorneys’ fees and such other costs as the Court may deem just and proper. On June 19, 2013, the Company filed an answer to Lodsys’s complaint (i) denying all of Lodsys’s claims, (ii) setting forth certain affirmative defenses to Lodsys’s claims and (iii) asserting counterclaims that the Company does not infringe the Lodsys patents and that the Lodsys patents are invalid. On August 8, 2013, a scheduling conference was held, and the court set a claim construction hearing for February 25, 2014 and jury selection for trial on September 2, 2014. The Company is not in a position to assess whether any loss or adverse effect on its financial condition is probable or remote or to estimate the range of potential loss, if any. | |||||
The Company does not believe it is party to any currently pending litigation, the outcome of which is reasonably likely to have a material adverse effect on its operations, financial position or liquidity. However, the ultimate outcome of any litigation is uncertain and, regardless of outcome, litigation can have an adverse impact on the Company because of defense costs, potential negative publicity, diversion of management resources and other factors. |
Stockholders_Equity
Stockholders' Equity | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Stockholders' Equity | ' | ||||||||||||
Note 8 – Stockholders’ Equity | |||||||||||||
Acquisitions | |||||||||||||
On August 2, 2012, the Company issued an aggregate of 600 shares of its common stock to IGN in connection with the Company’s acquisition of GameSpy. | |||||||||||||
See Note 5 for more information about this acquisition. | |||||||||||||
Shares Issued In Connection With the Blammo Earnout | |||||||||||||
On May 16, 2013, the Company issued 742 shares to the former Blammo shareholders based on the Net Revenue that Blammo achieved for its fiscal year ended March 31, 2013. The fair value of this earnout amount has been presented in additional paid-in capital on the Company’s condensed consolidated balance sheet as of September 30, 2013. | |||||||||||||
See Note 3 for more information about this issuance. | |||||||||||||
Public Offering | |||||||||||||
In September 2013, the Company sold in an underwritten public offering an aggregate of 7,245 shares of its common stock at a public offering price of $2.10 per share for cash proceeds of approximately $14,006 after underwriting discounts and other offering expenses. This public offering exhausted all of the securities that the Company was able to issue under its shelf registration statement that the SEC declared effective in December 2010. | |||||||||||||
Warrants to Purchase Common Stock | |||||||||||||
In July 2013, the Company and MGM Interactive Inc. (“MGM”) entered into a warrant agreement that gives MGM the right to purchase up to 3,333 shares of the Company’s common stock at an exercise price of $3.00 per share (the “Warrant”), subject to certain adjustments for dividends, reorganizations and other common stock events. Of the 3,333 shares of the Company’s common stock underlying the Warrant, 333 shares were immediately vested and exercisable on the warrant agreement effective date and the remaining shares will vest and become exercisable based on conditions related to the Company releasing mobile games based on mutually agreed upon intellectual property licensed by MGM to the Company. The warrant expires on July 15, 2018. Under ASC 505, the Company estimated the fair value of the Warrant on the grant date using the Black-Scholes option valuation model and the weighted average assumptions. Key assumptions for the three and nine months ended September 30, 2013 included an expected term of 5.0 years, volatility of 64.2%, risk-free interest rate of 1.5% and a dividend yield of 0%. During the three months ended September 30, 2013, the Company recorded $427 of non-cash warrant related expense in cost of revenues. | |||||||||||||
During the nine months ended September 30, 2013 and 2012, respectively, investors exercised warrants to purchase 2,886 and 413 shares of the Company’s common stock, and the Company received gross proceeds of $4,329 and $619 in connection with these exercises. These exercised warrants were issued by the Company in August 2010 in connection with a private placement transaction. | |||||||||||||
Warrants outstanding as of September 30, 2013 were as follows: | |||||||||||||
Number | |||||||||||||
Exercise | of Shares | ||||||||||||
Price | Outstanding | ||||||||||||
Term | per | Under | |||||||||||
Issue Date | (Years) | Share | Warrant | ||||||||||
August 2010—Warrants issued in private offering | 5 | $ | 1.5 | 974 | |||||||||
July 2013—Warrant issued to MGM | 5 | $ | 3 | 3,333 | |||||||||
4,307 | |||||||||||||
Stock_Option_and_Other_Benefit
Stock Option and Other Benefit Plans | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Stock Option and Other Benefit Plans | ' | ||||||||||||||||
Note 9 – Stock Option and Other Benefit Plans | |||||||||||||||||
2007 Equity Incentive Plan | |||||||||||||||||
In January 2007, the Company’s Board of Directors adopted, and in March 2007 the Company’s stockholders approved, the 2007 Equity Incentive Plan (the “2007 Plan”). The 2007 Plan permits the Company to grant stock options, restricted stock units, and other stock-based awards to employees, non-employee directors and consultants. In April 2013, the Company’s Board of Directors approved, and in June 2013, the Company’s stockholders approved, the amended and restated 2007 Equity Incentive Plan (the “Amended 2007 Plan”). The Amended 2007 Plan includes an increase of 7,200 shares in the aggregate number of shares of common stock authorized for issuance under the plan. It also includes a fungible share provision, pursuant to which each share that is subject to a stock-based award that is not a “full value award” (restricted stock, RSUs, or other stock-based awards where the price charged to the participant for the award is less than 100% of the fair market value) reduces the number of shares available for issuance by 1.39 shares. When a stock-based award that is not a full value award is cancelled, the underlying shares are returned to the pool of shares available for grant at a ratio of 1.39 shares for each share cancelled. As of September 30, 2013, 7,368 shares were available for future grants under the Amended 2007 Plan. | |||||||||||||||||
2007 Employee Stock Purchase Plan | |||||||||||||||||
In January 2007, the Company’s Board of Directors adopted, and in March 2007 the Company’s stockholders approved, the 2007 Employee Stock Purchase Plan (the “2007 Purchase Plan”). As of September 30, 2013, 924 shares were available for issuance under the 2007 Purchase Plan. | |||||||||||||||||
2008 Equity Inducement Plan | |||||||||||||||||
In March 2008, the Company’s Board of Directors adopted the 2008 Equity Inducement Plan (the “Inducement Plan”) to augment the shares available under its existing 2007 Plan. The Company has not sought stockholder approval for the Inducement Plan. As such, awards under the Inducement Plan are granted in accordance with NASDAQ Listing Rule 5635(c)(4) and only to persons not previously an employee or director of the Company, or following a bona fide period of non-employment, as an inducement material to such individuals entering into employment with the Company. The Inducement Plan initially permitted the Company to grant only nonqualified stock options, but in October 2013, the Compensation Committee of the Company’s Board (the “Compensation Committee”) amended the Inducement Plan to permit the award of RSUs under the plan. As of September 30, 2013, 222 shares were reserved for future grants under the Inducement Plan. | |||||||||||||||||
Share-Based Awards Available for Grant | |||||||||||||||||
The calculation of share-based awards available for grant under the Amended 2007 Plan and the Inducement Plan for the nine months ended September 30, 2013 is as follows: | |||||||||||||||||
Shares | |||||||||||||||||
Available | |||||||||||||||||
Balances at December 31, 2012 | 1,178 | ||||||||||||||||
Increase in authorized shares | 7,400 | ||||||||||||||||
Share-based awards granted (1) | (3,275 | ) | |||||||||||||||
Share-based awards canceled (2) | 2,287 | ||||||||||||||||
Balances at September 30, 2013 | 7,590 | ||||||||||||||||
-1 | Under the terms of the Amended 2007 Plan, RSUs granted on or after June 6, 2013 reduce the number of shares available for grant by 1.39 shares for each share subject to an RSU award. | ||||||||||||||||
-2 | RSUs granted after June 6, 2013 that are forfeited and returned to the pool of shares available for grant increase the pool by 1.39 shares for each share subject to an RSU that is forfeited. | ||||||||||||||||
RSUs | |||||||||||||||||
The Company grants RSUs to its employees under the Amended 2007 Plan and may grant RSUs under the Inducement Plan to new employees as an inducement material to such individuals entering into employment with the Company. The cost of RSUs is determined using the fair value of the Company’s common stock based on the quoted closing price of the Company’s common stock on the date of grant. RSUs typically vest and are settled over approximately a four-year period with 25% of the shares vesting on or around the one-year anniversary of the grant date and the remaining shares vesting quarterly thereafter. Compensation cost is amortized on a straight-line basis over the requisite service period. | |||||||||||||||||
RSU Activity | |||||||||||||||||
A summary of the Company’s RSU activity for the nine months ended September 30, 2013, is as follows: | |||||||||||||||||
Weighted | |||||||||||||||||
Number of | Average | ||||||||||||||||
Units | Grant Date | ||||||||||||||||
Outstanding | Fair Value | ||||||||||||||||
Awarded and unvested, December 31, 2012 | — | $ | — | ||||||||||||||
Granted | 1,211 | 2.68 | |||||||||||||||
Vested | — | — | |||||||||||||||
Forfeited | (153 | ) | 2.74 | ||||||||||||||
Awarded and unvested, September 30, 2013 | 1,058 | $ | 2.67 | ||||||||||||||
Restricted stock units expected to vest, September 30, 2013 | 766 | ||||||||||||||||
Stock Option Activity | |||||||||||||||||
The following table summarizes the Company’s stock option activity for the nine months ended September 30, 2013: | |||||||||||||||||
Options Outstanding | |||||||||||||||||
Weighted | Weighted | ||||||||||||||||
Number | Average | Average | Aggregate | ||||||||||||||
of | Exercise | Contractual | Intrinsic | ||||||||||||||
Shares | Price | Term (Years) | Value | ||||||||||||||
Balances at December 31, 2012 | 10,921 | $ | 3.07 | ||||||||||||||
Options granted | 1,989 | 2.61 | |||||||||||||||
Options canceled | (2,134 | ) | 3.68 | ||||||||||||||
Options exercised | (419 | ) | 1.36 | ||||||||||||||
Balances at September 30, 2013 | 10,357 | $ | 2.92 | 3.78 | $ | 5,225 | |||||||||||
Options vested and expected to vest at September 30, 2013 | 9,470 | $ | 2.91 | 3.67 | $ | 5,093 | |||||||||||
Options exercisable at September 30, 2013 | 5,455 | $ | 2.88 | 2.93 | $ | 4,124 | |||||||||||
The aggregate intrinsic value in the preceding table is calculated as the difference between the exercise price of the underlying awards and the quoted closing price of the Company’s common stock on The NASDAQ Global Market of $2.78 per share as of September 30, 2013 (the last trading day in the quarter). Consolidated net cash proceeds from option exercises were $571 and $1,221 for the nine months ended September 30, 2013 and 2012, respectively. The Company realized no significant income tax benefit from stock option exercises during the three or nine months ended September 30, 2013 or 2012. As required, the Company presents excess tax benefits from the exercise of stock options, if any, as financing cash flows rather than operating cash flows. | |||||||||||||||||
The Company applies the fair value provisions of ASC 718, Compensation-Stock Compensation (“ASC 718”). Under ASC 718, the Company estimated the fair value of each option award on the grant date using the Black-Scholes option valuation model and the weighted average assumptions noted in the following table. | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Dividend yield | — | % | — | % | — | % | — | % | |||||||||
Risk-free interest rate | 1.16 | % | 0.52 | % | 0.69 | % | 0.63 | % | |||||||||
Expected volatility | 50.8 | % | 68.3 | % | 52.5 | % | 69.1 | % | |||||||||
Expected term (years) | 4 | 4 | 4 | 4 | |||||||||||||
The Company based its expected volatility on its own historic volatility and the historical volatility of a peer group of publicly traded entities. The expected term of options gave consideration to early exercises, post-vesting cancellations and the options’ six-year contractual term. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury Constant Maturity Rate as of the date of grant. The weighted-average fair value of stock options granted during the nine months ended September 30, 2013 and 2012 was $1.07 and $2.27 per share, respectively. | |||||||||||||||||
The Company calculated employee stock-based compensation expense recognized in the three and nine months ended September 30, 2013 and 2012 based on awards ultimately expected to vest and reduced it for estimated forfeitures. ASC 718 requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates | |||||||||||||||||
The following table summarizes the consolidated stock-based compensation expense by line items in the condensed consolidated statement of operations: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Research and development | $ | 268 | $ | (3,388 | ) | $ | 1,099 | $ | 2,268 | ||||||||
Sales and marketing | 40 | 73 | 200 | 343 | |||||||||||||
General and administrative | 412 | 437 | 1,402 | 1,385 | |||||||||||||
Total stock-based compensation expense | $ | 720 | $ | (2,878 | ) | $ | 2,701 | $ | 3,996 | ||||||||
The above table includes compensation expense attributable to the contingent consideration potentially issuable to the Blammo employees who were former shareholders of Blammo, which is recorded as research and development expense over the term of the earn-out periods, since these employees are primarily employed in product development. The Company re-measures the fair value of the contingent consideration each reporting period and only records a compensation expense for the portion of the earn-out target that is likely to be achieved. In addition, the Company is exposed to potential continued fluctuations in the fair market value of the contingent consideration in each reporting period, since re-measurement is impacted by changes in the Company’s share price and the assumptions used by the Company. The Company estimated the total fair value of this liability to be $54 and $2,242 as of September 30, 2013 and December 31, 2012, respectively; the amount as of September 30, 2013 excludes the 2013 contingent consideration earnout that was classified into additional paid-in capital. See Note 3 for further details. During the three and nine months ended September 30, 2013, the Company recorded $161 and $134 of stock-based compensation benefit, respectively, related to this contingent consideration. During the three and nine months ended September 30, 2012, the Company recorded $3,899 of stock-based compensation benefit and $852 of stock-based compensation expense, respectively, related to this contingent consideration. | |||||||||||||||||
As of September 30, 2013, the Company had $1,947 of total unrecognized compensation expense, net of estimated forfeitures, related to RSUs that will be recognized over a weighted-average period of approximately four years. As of September 30, 2013, the Company had $5,848 of total unrecognized compensation expense related to stock options, net of estimated forfeitures and excluding unvested Blammo stock-based contingent consideration expense, which will be recognized over a weighted average period of 2.57 years. As permitted by ASC 718, the Company has deferred the recognition of its excess tax benefit from non-qualified stock option exercises. |
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2013 | |
Income Taxes | ' |
Note 10 – Income Taxes | |
The Company recorded an income tax benefit of $30 and $2,765 for the three and nine months ended September 30, 2013, respectively, and an income tax benefit of $1,075 and $2,654 for the three and nine months ended September 30, 2012, respectively, primarily related to the release of uncertain tax positions due to expiration of certain statutes of limitations in certain foreign jurisdictions, which was partially offset by foreign withholding taxes and income taxes. The income tax rates vary from the Federal and State statutory rates due to the valuation allowances on the Company’s net operating losses, foreign tax rate differences and withholding taxes. | |
The Company estimates its annual effective tax rate at the end of each quarterly period and records the tax effect of certain discrete items, which are unusual or occur infrequently, in the interim period in which they occur. In addition, jurisdictions with a projected loss for the year or a year-to-date loss where no tax benefit can be recognized and jurisdictions where a reliable estimate of ordinary income cannot be made are excluded from the estimated annual effective tax rate. The impact of such an exclusion could result in a higher or lower effective tax rate during a particular quarter depending on the mix and timing of actual earnings versus annual projections. The Company’s ability to use its net operating loss carryforwards and federal and state tax credit carryforwards to offset future taxable income and future taxes, respectively, may be subject to restrictions attributable to equity transactions that result in changes in ownership as defined by Internal Revenue Code Section 382. | |
The Company accounts for uncertain tax positions in accordance with ASC 740, Income Taxes (“ASC 740”). As of September 30, 2013 and December 31, 2012, the total amount of unrecognized tax benefits was $3,947 and $4,626, respectively. As of September 30, 2013 and December 31, 2012, approximately $863 and $817, respectively, of unrecognized tax benefits, if recognized, would impact the Company’s effective tax rate. The remaining balance, if recognized, would adjust the Company’s deferred tax assets, each of which are subject to a valuation allowance. As of September 30, 2013, the liability for uncertain tax positions decreased by approximately $737 due to the expiration of certain statutes of limitation in foreign jurisdictions in which the Company does business. As of September 30, 2013, the Company anticipated that the liability for uncertain tax positions, excluding interest and penalties, could decrease by approximately $815 within the next twelve months due to the expiration of certain statutes of limitation in foreign jurisdictions in which the Company does business. | |
The Company’s policy is to recognize interest and penalties related to unrecognized tax benefits in income tax expense. The Company recorded $1 and $34 of interest on uncertain tax positions during the three months ended September 30, 2013 and 2012, respectively. The Company recorded $71 and $148 of interest on uncertain tax positions during the nine months ended September 30, 2013 and 2012, respectively. As of September 30, 2013 and December 31, 2012, the Company had a liability of $58 and $2,348, respectively, related to interest and penalties for uncertain tax positions. | |
The Company is subject to taxation in the United States and various foreign jurisdictions. The material jurisdictions subject to examination by tax authorities are primarily the State of California, United States, United Kingdom, Canada, and China. The Company’s federal and California tax returns are open by statute for tax years 2002 and forward and could be subject to examination by the tax authorities. The statute of limitations for the Company’s 2010 and 2011 tax returns for the various entities in the United Kingdom will close in the fourth quarter of 2013. The Company’s China income tax returns are open by statute for tax years 2008 and forward. |
Segment_Reporting
Segment Reporting | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Segment Reporting | ' | ||||||||||||||||
Note 11 – Segment Reporting | |||||||||||||||||
ASC 280, Segment Reporting (“ASC 280”), establishes standards for reporting information about operating segments. It defines operating segments as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision-maker, or decision-making group, in deciding how to allocate resources and in assessing performance. The Company’s chief operating decision-maker is its Chief Executive Officer. The Company’s Chief Executive Officer reviews selected financial information on a geographic basis; however this information is included within one operating segment for purposes of allocating resources and evaluating financial performance. | |||||||||||||||||
Accordingly, the Company reports as a single reportable segment—mobile games. For purpose of enterprise-wide disclosures, a breakdown of the Company’s total sales to customers in the feature phone and smartphone markets is shown below: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(Restated) | (Restated) | ||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||
Feature phone | $ | 1,305 | $ | 2,924 | $ | 4,584 | $ | 10,799 | |||||||||
Smartphone | 20,417 | 23,175 | 66,188 | 71,073 | |||||||||||||
Revenues | $ | 21,722 | $ | 26,099 | $ | 70,772 | $ | 81,872 | |||||||||
For purposes of enterprise-wide disclosures, the Company attributes revenues to geographic areas based on the country in which the distributor’s, advertising service provider’s or carrier’s principal operations are located. In the case of Digital Storefronts, revenues are attributed to the geographic location where the end-user makes the purchase. The Company generates its revenues in the following geographic regions: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(Restated) | (Restated) | ||||||||||||||||
United States of America | $ | 9,055 | $ | 14,048 | $ | 30,000 | $ | 45,558 | |||||||||
Americas, excluding the USA | 1,277 | 1,252 | 3,785 | 3,784 | |||||||||||||
EMEA | 4,812 | 5,254 | 15,610 | 16,677 | |||||||||||||
APAC | 6,578 | 5,545 | 21,377 | 15,853 | |||||||||||||
$ | 21,722 | $ | 26,099 | $ | 70,772 | $ | 81,872 | ||||||||||
The Company attributes its long-lived assets, which primarily consist of property and equipment, to a country primarily based on the physical location of the assets. Property and equipment, net of accumulated depreciation and amortization, summarized by geographic location was as follows: | |||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Americas | $ | 4,105 | $ | 3,649 | |||||||||||||
EMEA | 918 | 1,092 | |||||||||||||||
APAC | 126 | 285 | |||||||||||||||
$ | 5,149 | $ | 5,026 | ||||||||||||||
Restructuring
Restructuring | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Restructuring | ' | ||||||||||||||||||||
Note 12 – Restructuring | |||||||||||||||||||||
Restructuring information as of September 30, 2013 was as follows: | |||||||||||||||||||||
Restructuring | |||||||||||||||||||||
2012 and 2013 | 2010 | 2009 | |||||||||||||||||||
Facilities | Workforce | Facilities | Facilities | Total | |||||||||||||||||
and other | and other | and other | |||||||||||||||||||
Balance as of January 1, 2012 | $ | — | $ | — | $ | 653 | $ | 234 | $ | 887 | |||||||||||
Charges to operations | — | 1,371 | — | — | 1,371 | ||||||||||||||||
Charges settled in cash | — | (1,367 | ) | (653 | ) | (234 | ) | (2,254 | ) | ||||||||||||
Balance as of December 31, 2012 | — | 4 | — | — | 4 | ||||||||||||||||
Charges to operations | 584 | 864 | — | — | 1,448 | ||||||||||||||||
Non Cash Adjustments | (183 | ) | — | — | — | (183 | ) | ||||||||||||||
Charges settled in cash | (401 | ) | (868 | ) | — | — | (1,269 | ) | |||||||||||||
Balance as of September 30, 2013 | $ | — | — | $ | — | $ | — | $ | — | ||||||||||||
During 2009, 2010, 2012, and 2013, the Company’s management approved restructuring plans to improve the effectiveness and efficiency of its operating model and reduce operating expenses around the world. The 2012 and 2013 restructuring plans included $584 of facility-related restructuring charges related to streamlining the Company’s previous facility in Kirkland, Washington, and additional costs associated with vacating the Company’s Brazil office. In addition, the Company recorded a non-cash adjustment of $238 in respect of the cumulative translation adjustment related to the Company’s Brazilian subsidiary that was reclassified to net loss upon the substantial liquidation of the entity and is recognized in restructuring charge on the Company’s unaudited condensed consolidated income statement for the nine months ended September 30, 2013. | |||||||||||||||||||||
Since inception of the 2012 and 2013 restructuring plan through September 30, 2013, the Company incurred $2,235 of restructuring charges relating to employee termination costs in its San Francisco, California, EMEA, APAC, Brazil, and Washington offices. During the nine months ended September 30, 2013, the Company recorded $864 of the 2012 and 2013 restructuring plan charges relating to employee termination costs in its Brazil, San Francisco, China, Washington, and EMEA offices. | |||||||||||||||||||||
As of September 30, 2013, the Company’s remaining restructuring liability was zero. As of December 31, 2012, the Company’s remaining restructuring liability of $4 was comprised of employee termination costs. |
Related_Party_Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2013 | |
Related Party Transactions | ' |
Note 13 – Related Party Transactions | |
Hany Nada, one of the Company’s directors, serves as one of the seven managing directors of Granite Global Ventures II L.L.C., the general partner of each of Granite Global Ventures II L.P. and GGV II Entrepreneurs Fund L.P., which together beneficially owned approximately 7.34% of the Company’s stock as of September 30, 2013. Hany Nada also serves as one of the seven managing directors of GGV Capital IV L.L.C., the general partner of each of GGV Capital IV L.P. and GGV Capital IV Entrepreneurs Fund L.P. (together, “GGV IV”). GGV IV has an approximate 25.6% shareholding in Medium Entertainment, which does business as PlayHaven and Hany Nada joined PlayHaven’s Board of Directors. The Company had a preexisting relationship with PlayHaven as of the date of GGV IV’s investment in PlayHaven. For the three months ended September 30, 2013 and 2012, the Company generated revenues of $841 and $1,775, respectively, from PlayHaven. For the nine months ended September 30, 2013 and 2012, the Company generated revenues of $3,338 and $4,714, respectively, from PlayHaven. As of September 30, 2013 and December 31, 2012, PlayHaven accounted for 8.5% and 13.2%, respectively, of the Company’s total accounts receivable balance. |
The_Company_Basis_of_Presentat1
The Company, Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Principles of Consolidation and Basis of Presentation | ' | ||||||||||||||||
Principles of Consolidation and Basis of Presentation | |||||||||||||||||
The accompanying unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles (“GAAP”) in the United States for complete financial statements and should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012 as amended by Amendment No. 1 filed with the SEC on August 9, 2013. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments, consisting only of normal recurring adjustments, which the Company believes are necessary for a fair statement of the Company’s financial position as of September 30, 2013 and its unaudited condensed consolidated results of operations for the three and nine months ended September 30, 2013 and 2012 (restated), respectively. These unaudited condensed consolidated financial statements are not necessarily indicative of the results to be expected for the entire year. The unaudited condensed consolidated balance sheet presented as of December 31, 2012 (restated) has been derived from the audited consolidated financial statements as of that date, and the unaudited condensed consolidated balance sheet presented as of September 30, 2013 has been derived from the unaudited condensed consolidated financial statements as of that date. | |||||||||||||||||
The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated. | |||||||||||||||||
Concentration of Credit Risk | ' | ||||||||||||||||
Concentration of Credit Risk | |||||||||||||||||
Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash, cash equivalents that were held in operating bank accounts and accounts receivable. | |||||||||||||||||
The Company derives its accounts receivable from revenues earned from customers or through Digital Storefronts located in the U.S. and other locations outside of the U.S. The Company performs ongoing credit evaluations of its customers’ and the Digital Storefronts’ financial condition and currently does not require any collateral from its customers or the Digital Storefronts. The Company bases its allowance for doubtful accounts on management’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable. The Company reviews past due balances over a specified amount individually for collectability on a monthly basis and all other balances quarterly. The Company writes off accounts receivable balances against the allowance when it determines that the amount will not be recovered. | |||||||||||||||||
The following table summarizes the revenues from customers or aggregate purchases through Digital Storefronts that accounted for more than 10% of the Company’s revenues for the periods indicated: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(Restated) | (Restated) | ||||||||||||||||
Apple | 50.3 | % | 37.5 | % | 50.4 | % | 40.9 | % | |||||||||
18.7 | 20.3 | 18.7 | 19.2 | ||||||||||||||
Tapjoy | — | 12.7 | — | 10.8 | |||||||||||||
At September 30, 2013, Apple accounted for 45.7% of total accounts receivable. At December 31, 2012, Apple accounted for 44.3%, PlayHaven accounted for 13.2% and Google accounted for 10.8% of total accounts receivable. No other customer or Digital Storefront represented more than 10% of the Company’s total accounts receivable as of these dates. | |||||||||||||||||
Recent Accounting Pronouncements | ' | ||||||||||||||||
Recent Accounting Pronouncements | |||||||||||||||||
In February 2013, the FASB issued ASU 2013-2, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. This guidance requires the presentation of the effects on the line items of net income of significant amounts reclassified out of accumulated other comprehensive income, but only if the item reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. The guidance is effective for fiscal years beginning after December 15, 2012. During the three and nine months ended September 30, 2013, the Company adopted this guidance and reclassified the accumulated translation adjustment related to its Brazilian subsidiary out of accumulated other comprehensive income to restructuring charge in the Company’s unaudited condensed consolidated statement of operations upon the substantially complete liquidation of the entity. | |||||||||||||||||
In July 2013, the FASB issued ASU 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. Under this guidance, an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. This accounting guidance will not have a material impact on the Company’s condensed consolidated financial statements once adopted. |
The_Company_Basis_of_Presentat2
The Company, Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Revenues from Customers or Aggregate Purchases Through Digital Storefronts Accounted for More Than Ten Percent of Revenues | ' | ||||||||||||||||
The following table summarizes the revenues from customers or aggregate purchases through Digital Storefronts that accounted for more than 10% of the Company’s revenues for the periods indicated: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(Restated) | (Restated) | ||||||||||||||||
Apple | 50.3 | % | 37.5 | % | 50.4 | % | 40.9 | % | |||||||||
18.7 | 20.3 | 18.7 | 19.2 | ||||||||||||||
Tapjoy | — | 12.7 | — | 10.8 |
Restatement_of_Financial_State1
Restatement of Financial Statements (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Condensed Consolidated Balance Sheet | ' | ||||||||||||||||||||||||
Summary of Impact of Restatements on Financial Statements | ' | ||||||||||||||||||||||||
The following table summarizes the Condensed Consolidated Balance Sheet at December 31, 2012 as reported on the Company’s Form 10-K filed on March 15, 2013, compared to the restated accounts as reported on the Company’s Form 10-K/A filed on August 9, 2013: | |||||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||
As Reported | Adjustments | As Restated | |||||||||||||||||||||||
Prepaid expenses and other | $ | 2,487 | $ | 2,680 | $ | 5,167 | |||||||||||||||||||
Total assets | 72,275 | 2,680 | 74,955 | ||||||||||||||||||||||
Deferred revenues | 9,031 | 2,680 | 11,711 | ||||||||||||||||||||||
Total liabilities | 33,388 | 2,680 | 36,068 | ||||||||||||||||||||||
Total liabilities and stockholders’ equity | 72,275 | 2,680 | 74,955 | ||||||||||||||||||||||
Condensed Consolidated Statements of Operations | ' | ||||||||||||||||||||||||
Summary of Impact of Restatements on Financial Statements | ' | ||||||||||||||||||||||||
The following table summarizes the Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2012, as reported on the Company’s Form 10-Q filed on November 9, 2012, compared to the restated accounts as reported on the Company’s Form 10-K/A filed on August 9, 2013: | |||||||||||||||||||||||||
Three Months Ended September 30, 2012 | Nine Months Ended September 30, 2012 | ||||||||||||||||||||||||
(unaudited) | (unaudited) | ||||||||||||||||||||||||
As Reported | Adjustments | As Restated | As Reported | Adjustments | As Restated | ||||||||||||||||||||
Revenues | $ | 21,347 | $ | 4,752 | $ | 26,099 | $ | 66,512 | $ | 15,360 | $ | 81,872 | |||||||||||||
Cost of revenues: | |||||||||||||||||||||||||
Platform commissions, royalties and other | 2,194 | 4,752 | 6,946 | 6,888 | 15,360 | 22,248 | |||||||||||||||||||
Amortization of intangible assets | 1,025 | — | 1,025 | 2,710 | — | 2,710 | |||||||||||||||||||
Total cost of revenues | 3,219 | 4,752 | 7,971 | 9,598 | 15,360 | 24,958 | |||||||||||||||||||
Gross profit | $ | 18,128 | $ | — | $ | 18,128 | $ | 56,914 | $ | — | $ | 56,914 | |||||||||||||
Condensed Consolidated Statements of Cash Flows | ' | ||||||||||||||||||||||||
Summary of Impact of Restatements on Financial Statements | ' | ||||||||||||||||||||||||
The following table summarizes the Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2012, as reported on the Company’s Form 10-Q filed on November 9, 2012, compared to the restated accounts as reported on the Company’s Form 10-K/A filed on August 9, 2013: | |||||||||||||||||||||||||
Nine Months Ended September 30, 2012 | |||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||
As Reported | Adjustments | As Restated | |||||||||||||||||||||||
Changes in operating assets and liabilities, net of effect of acquisitions: | |||||||||||||||||||||||||
Prepaid expenses and other assets | $ | (1,247 | ) | $ | (238 | ) | $ | (1,485 | ) | ||||||||||||||||
Deferred revenues | 10 | 238 | 248 | ||||||||||||||||||||||
Net cash used in operating activities | (5,128 | ) | — | (5,128 | ) |
Net_Loss_Per_Share_Tables
Net Loss Per Share (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Computation of Net Loss Per Share | ' | ||||||||||||||||
The Company computes basic net loss per share by dividing its net loss for the period by the weighted average number of common shares outstanding during the period less the weighted average unvested common shares subject to restrictions imposed by the Company. | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Net loss | $ | (7,968 | ) | $ | (3,563 | ) | $ | (16,386 | ) | $ | (13,392 | ) | |||||
Basic and diluted shares: | |||||||||||||||||
Weighted average common shares outstanding | 71,619 | 65,270 | 69,337 | 64,584 | |||||||||||||
Weighted average unvested common shares subject to restrictions | (90 | ) | (708 | ) | (91 | ) | (719 | ) | |||||||||
Weighted average shares used to compute basic and diluted net loss per share | 71,529 | 64,562 | 69,246 | 63,865 | |||||||||||||
Net loss per share — basic and diluted | $ | (0.11 | ) | $ | (0.06 | ) | $ | (0.24 | ) | $ | (0.21 | ) | |||||
Anti-Dilutive Securities Excluded from Computation of Diluted Net Loss Per Share of Common Stock | ' | ||||||||||||||||
The following weighted average options to purchase common stock, warrants to purchase common stock, unvested shares of common stock subject to restrictions, shares contingently issuable in connection with the Blammo earnout (as described below in Note 3 – Fair Value Measurements), and restricted stock units (“RSUs”) have been excluded from the computation of diluted net loss per share of common stock for the periods presented because including them would have had an anti-dilutive effect: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Warrants to purchase common stock | 3,813 | 4,140 | 2,978 | 4,261 | |||||||||||||
Unvested common shares subject to restrictions | 90 | 708 | 91 | 719 | |||||||||||||
Options to purchase common stock | 10,512 | 10,338 | 10,570 | 10,108 | |||||||||||||
Contingently issuable shares of common stock | — | — | 251 | — | |||||||||||||
RSUs | 1,025 | — | 521 | — | |||||||||||||
15,440 | 15,186 | 14,411 | 15,088 | ||||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Contingent Consideration Net Revenue Performance Targets | ' | ||||||||
Blammo’s Baseline and Upside Net Revenue goals for fiscal 2014 and 2015 are as follows: | |||||||||
Fiscal Year | Baseline Net Revenue | Upside Net Revenue | |||||||
Fiscal 2014 | $ | 5,500 | $ | 10,000 | |||||
Fiscal 2015 | $ | 8,500 | $ | 15,000 |
Balance_Sheet_Components_Table
Balance Sheet Components (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Accounts Receivable | ' | ||||||||
Accounts Receivable | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Accounts receivable | $ | 11,725 | $ | 12,313 | |||||
Less: Allowance for doubtful accounts | (443 | ) | (432 | ) | |||||
$ | 11,282 | $ | 11,881 | ||||||
Property and Equipment | ' | ||||||||
Property and Equipment | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Computer equipment | $ | 6,087 | $ | 6,255 | |||||
Furniture and fixtures | 664 | 566 | |||||||
Software | 6,207 | 6,304 | |||||||
Leasehold improvements | 2,742 | 2,227 | |||||||
15,700 | 15,352 | ||||||||
Less: Accumulated depreciation and amortization | (10,551 | ) | (10,326 | ) | |||||
$ | 5,149 | $ | 5,026 | ||||||
Other Long-Term Liabilities | ' | ||||||||
Other Long-Term Liabilities | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Uncertain tax position obligations | 889 | 3,859 | |||||||
Contingent earnout liability | 45 | 657 | |||||||
Deferred income tax liability | 669 | 647 | |||||||
Deferred rent and other | 1,103 | 1,027 | |||||||
$ | 2,706 | $ | 6,190 | ||||||
Business_Combinations_Tables
Business Combinations (Tables) (Game Spy Industries) | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Game Spy Industries | ' | ||||
Fair Values of Assets Acquired and Liabilities Assumed | ' | ||||
The following table summarizes the fair values of assets acquired and liabilities assumed at the date of acquisition: | |||||
Cash | $ | 913 | |||
Accounts receivable, net | 1,695 | ||||
Property and equipment | 485 | ||||
Intangible assets: | |||||
Customer contract and related relationships | 250 | ||||
Titles, content and technology | 1,300 | ||||
Goodwill | 1,096 | ||||
Total assets acquired | 5,739 | ||||
Liabilities assumed: | |||||
Other accrued liabilities | (689 | ) | |||
Deferred revenue | (1,684 | ) | |||
Deferred tax liability | (570 | ) | |||
Total liabilities acquired | (2,943 | ) | |||
Net acquired assets | $ | 2,796 | |||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
Carrying Amounts and Accumulated Amortization Expense of Acquired Intangible Assets | ' | ||||||||||||||||||||||||||||||||
The carrying amounts and accumulated amortization expense of the acquired intangible assets, including the impact of foreign currency exchange translation, at September 30, 2013 and December 31, 2012 were as follows: | |||||||||||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||||||||||||||||||
Estimated | Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||||||||||||||||
Useful | Carrying | Amortization | Carrying | Carrying | Amortization | Carrying | |||||||||||||||||||||||||||
Life | Value | Expense | Value | Value | Expense | Value | |||||||||||||||||||||||||||
(Including | (Including | (Including | (Including | (Including | (Including | ||||||||||||||||||||||||||||
Impact of | Impact of | Impact of | Impact of | Impact of | Impact of | ||||||||||||||||||||||||||||
Foreign | Foreign | Foreign | Foreign | Foreign | Foreign | ||||||||||||||||||||||||||||
Exchange) | Exchange) | Exchange) | Exchange) | Exchange) | Exchange) | ||||||||||||||||||||||||||||
Intangible assets amortized to cost of revenues: | |||||||||||||||||||||||||||||||||
Titles, content and technology | 2 yrs | $ | 12,792 | $ | (11,967 | ) | $ | 825 | $ | 12,781 | $ | (11,518 | ) | $ | 1,263 | ||||||||||||||||||
Catalogs | 1 yr | 1,256 | (1,256 | ) | — | 1,257 | (1,257 | ) | — | ||||||||||||||||||||||||
ProvisionX Technology | 6 yrs | 207 | (207 | ) | — | 207 | (207 | ) | — | ||||||||||||||||||||||||
Carrier contract and related relationships | 5 yrs | 19,848 | (18,881 | ) | 967 | 19,585 | (16,421 | ) | 3,164 | ||||||||||||||||||||||||
Licensed content | 5 yrs | 3,020 | (3,020 | ) | — | 2,952 | (2,952 | ) | — | ||||||||||||||||||||||||
Service provider license | 9 yrs | 479 | (308 | ) | 171 | 467 | (262 | ) | 205 | ||||||||||||||||||||||||
Trademarks | 7 yrs | 5,228 | (1,299 | ) | 3,929 | 5,225 | (760 | ) | 4,465 | ||||||||||||||||||||||||
42,830 | (36,938 | ) | 5,892 | 42,474 | (33,377 | ) | 9,097 | ||||||||||||||||||||||||||
Other intangible assets amortized to operating expenses: | |||||||||||||||||||||||||||||||||
Emux Technology | 6 yrs | 1,339 | (1,339 | ) | — | 1,341 | (1,341 | ) | — | ||||||||||||||||||||||||
Noncompete agreement | 4 yrs | 5,186 | (4,613 | ) | 573 | 5,187 | (3,395 | ) | 1,792 | ||||||||||||||||||||||||
6,525 | (5,952 | ) | 573 | 6,528 | (4,736 | ) | 1,792 | ||||||||||||||||||||||||||
Total intangibles assets subject to amortization | $ | 49,355 | $ | (42,890 | ) | $ | 6,465 | $ | 49,002 | $ | (38,113 | ) | $ | 10,889 | |||||||||||||||||||
Total Expected Future Amortization Related to Intangible Assets | ' | ||||||||||||||||||||||||||||||||
As of September 30, 2013, the total expected future amortization related to intangible assets was as follows: | |||||||||||||||||||||||||||||||||
Amortization | Amortization | ||||||||||||||||||||||||||||||||
Included in | Included in | Total | |||||||||||||||||||||||||||||||
Cost of | Operating | Amortization | |||||||||||||||||||||||||||||||
Period Ending December 31, | Revenues | Expenses | Expense | ||||||||||||||||||||||||||||||
2013 (remaining three months) | $ | 1,003 | $ | 95 | $ | 1,098 | |||||||||||||||||||||||||||
2014 | 1,496 | 383 | 1,879 | ||||||||||||||||||||||||||||||
2015 | 1,020 | 95 | 1,115 | ||||||||||||||||||||||||||||||
2016 | 765 | — | 765 | ||||||||||||||||||||||||||||||
2017 | 714 | — | 714 | ||||||||||||||||||||||||||||||
2018 and thereafter | 894 | — | 894 | ||||||||||||||||||||||||||||||
$ | 5,892 | $ | 573 | $ | 6,465 | ||||||||||||||||||||||||||||
Goodwill by Reporting Unit | ' | ||||||||||||||||||||||||||||||||
Goodwill by reporting unit for the periods indicated was as follows: | |||||||||||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||||||||||||||||||
Americas | EMEA | APAC | Total | Americas | EMEA | APAC | Total | ||||||||||||||||||||||||||
Balance as of January 1 | |||||||||||||||||||||||||||||||||
Goodwill | $ | 42,946 | $ | 25,354 | $ | 24,251 | $ | 92,551 | $ | 41,915 | $ | 25,354 | $ | 24,220 | $ | 91,489 | |||||||||||||||||
Accumulated Impairment Losses | (24,871 | ) | (25,354 | ) | (22,886 | ) | (73,111 | ) | (24,871 | ) | (25,354 | ) | (19,273 | ) | (69,498 | ) | |||||||||||||||||
18,075 | — | 1,365 | 19,440 | 17,044 | — | 4,947 | 21,991 | ||||||||||||||||||||||||||
Goodwill Acquired during the year | — | — | — | — | 1,031 | — | — | 1,031 | |||||||||||||||||||||||||
Effects of Foreign Currency Exchange | — | — | 37 | 37 | — | — | 31 | 31 | |||||||||||||||||||||||||
Impairment Losses | — | — | — | — | — | — | (3,613 | ) | (3,613 | ) | |||||||||||||||||||||||
Balance as of period ended: | 18,075 | — | 1,402 | 19,477 | 18,075 | — | 1,365 | 19,440 | |||||||||||||||||||||||||
Goodwill | 42,946 | 25,354 | 24,288 | 92,588 | 42,946 | 25,354 | 24,251 | 92,551 | |||||||||||||||||||||||||
Accumulated Impairment Losses | (24,871 | ) | (25,354 | ) | (22,886 | ) | (73,111 | ) | (24,871 | ) | (25,354 | ) | (22,886 | ) | (73,111 | ) | |||||||||||||||||
Balance as of period ended: | $ | 18,075 | $ | — | $ | 1,402 | $ | 19,477 | $ | 18,075 | $ | — | $ | 1,365 | $ | 19,440 | |||||||||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Future Minimum Lease Payments under Non-Cancelable Operating Leases | ' | ||||
At September 30, 2013, future minimum lease payments under non-cancelable operating leases were as follows: | |||||
Minimum | |||||
Operating | |||||
Lease | |||||
Period Ending December 31, | Payments | ||||
2013 (remaining three months) | $ | 845 | |||
2014 | 3,915 | ||||
2015 | 4,054 | ||||
2016 | 3,448 | ||||
2017 | 2,684 | ||||
2018 and thereafter | 1,903 | ||||
$ | 16,849 | ||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Warrants Outstanding | ' | ||||||||||||
Warrants outstanding as of September 30, 2013 were as follows: | |||||||||||||
Number | |||||||||||||
Exercise | of Shares | ||||||||||||
Price | Outstanding | ||||||||||||
Term | per | Under | |||||||||||
Issue Date | (Years) | Share | Warrant | ||||||||||
August 2010—Warrants issued in private offering | 5 | $ | 1.5 | 974 | |||||||||
July 2013—Warrant issued to MGM | 5 | $ | 3 | 3,333 | |||||||||
4,307 | |||||||||||||
Stock_Option_and_Other_Benefit1
Stock Option and Other Benefit Plans (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Calculation of Share-based Awards Available for Grant | ' | ||||||||||||||||
The calculation of share-based awards available for grant under the Amended 2007 Plan and the Inducement Plan for the nine months ended September 30, 2013 is as follows: | |||||||||||||||||
Shares | |||||||||||||||||
Available | |||||||||||||||||
Balances at December 31, 2012 | 1,178 | ||||||||||||||||
Increase in authorized shares | 7,400 | ||||||||||||||||
Share-based awards granted (1) | (3,275 | ) | |||||||||||||||
Share-based awards canceled (2) | 2,287 | ||||||||||||||||
Balances at September 30, 2013 | 7,590 | ||||||||||||||||
-1 | Under the terms of the Amended 2007 Plan, RSUs granted on or after June 6, 2013 reduce the number of shares available for grant by 1.39 shares for each share subject to an RSU award. | ||||||||||||||||
-2 | RSUs granted after June 6, 2013 that are forfeited and returned to the pool of shares available for grant increase the pool by 1.39 shares for each share subject to an RSU that is forfeited. | ||||||||||||||||
Summary of Company's RSU Activity | ' | ||||||||||||||||
A summary of the Company’s RSU activity for the nine months ended September 30, 2013, is as follows: | |||||||||||||||||
Weighted | |||||||||||||||||
Number of | Average | ||||||||||||||||
Units | Grant Date | ||||||||||||||||
Outstanding | Fair Value | ||||||||||||||||
Awarded and unvested, December 31, 2012 | — | $ | — | ||||||||||||||
Granted | 1,211 | 2.68 | |||||||||||||||
Vested | — | — | |||||||||||||||
Forfeited | (153 | ) | 2.74 | ||||||||||||||
Awarded and unvested, September 30, 2013 | 1,058 | $ | 2.67 | ||||||||||||||
Restricted stock units expected to vest, September 30, 2013 | 766 | ||||||||||||||||
Stock Option Activity | ' | ||||||||||||||||
The following table summarizes the Company’s stock option activity for the nine months ended September 30, 2013: | |||||||||||||||||
Options Outstanding | |||||||||||||||||
Weighted | Weighted | ||||||||||||||||
Number | Average | Average | Aggregate | ||||||||||||||
of | Exercise | Contractual | Intrinsic | ||||||||||||||
Shares | Price | Term (Years) | Value | ||||||||||||||
Balances at December 31, 2012 | 10,921 | $ | 3.07 | ||||||||||||||
Options granted | 1,989 | 2.61 | |||||||||||||||
Options canceled | (2,134 | ) | 3.68 | ||||||||||||||
Options exercised | (419 | ) | 1.36 | ||||||||||||||
Balances at September 30, 2013 | 10,357 | $ | 2.92 | 3.78 | $ | 5,225 | |||||||||||
Options vested and expected to vest at September 30, 2013 | 9,470 | $ | 2.91 | 3.67 | $ | 5,093 | |||||||||||
Options exercisable at September 30, 2013 | 5,455 | $ | 2.88 | 2.93 | $ | 4,124 | |||||||||||
Schedule of Assumptions Used In Black-Scholes Valuation Model and Weighted Average Assumptions | ' | ||||||||||||||||
The Company applies the fair value provisions of ASC 718, Compensation-Stock Compensation (“ASC 718”). Under ASC 718, the Company estimated the fair value of each option award on the grant date using the Black-Scholes option valuation model and the weighted average assumptions noted in the following table. | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Dividend yield | — | % | — | % | — | % | — | % | |||||||||
Risk-free interest rate | 1.16 | % | 0.52 | % | 0.69 | % | 0.63 | % | |||||||||
Expected volatility | 50.8 | % | 68.3 | % | 52.5 | % | 69.1 | % | |||||||||
Expected term (years) | 4 | 4 | 4 | 4 | |||||||||||||
Stock-Based Compensation Expense | ' | ||||||||||||||||
The following table summarizes the consolidated stock-based compensation expense by line items in the condensed consolidated statement of operations: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Research and development | $ | 268 | $ | (3,388 | ) | $ | 1,099 | $ | 2,268 | ||||||||
Sales and marketing | 40 | 73 | 200 | 343 | |||||||||||||
General and administrative | 412 | 437 | 1,402 | 1,385 | |||||||||||||
Total stock-based compensation expense | $ | 720 | $ | (2,878 | ) | $ | 2,701 | $ | 3,996 | ||||||||
Segment_Reporting_Tables
Segment Reporting (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Revenue from Different Products | ' | ||||||||||||||||
For purpose of enterprise-wide disclosures, a breakdown of the Company’s total sales to customers in the feature phone and smartphone markets is shown below: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(Restated) | (Restated) | ||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||
Feature phone | $ | 1,305 | $ | 2,924 | $ | 4,584 | $ | 10,799 | |||||||||
Smartphone | 20,417 | 23,175 | 66,188 | 71,073 | |||||||||||||
Revenues | $ | 21,722 | $ | 26,099 | $ | 70,772 | $ | 81,872 | |||||||||
Revenues in Geographic Regions | ' | ||||||||||||||||
The Company generates its revenues in the following geographic regions: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(Restated) | (Restated) | ||||||||||||||||
United States of America | $ | 9,055 | $ | 14,048 | $ | 30,000 | $ | 45,558 | |||||||||
Americas, excluding the USA | 1,277 | 1,252 | 3,785 | 3,784 | |||||||||||||
EMEA | 4,812 | 5,254 | 15,610 | 16,677 | |||||||||||||
APAC | 6,578 | 5,545 | 21,377 | 15,853 | |||||||||||||
$ | 21,722 | $ | 26,099 | $ | 70,772 | $ | 81,872 | ||||||||||
Long-Lived Assets by Geographical Area | ' | ||||||||||||||||
Property and equipment, net of accumulated depreciation and amortization, summarized by geographic location was as follows: | |||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Americas | $ | 4,105 | $ | 3,649 | |||||||||||||
EMEA | 918 | 1,092 | |||||||||||||||
APAC | 126 | 285 | |||||||||||||||
$ | 5,149 | $ | 5,026 | ||||||||||||||
Restructuring_Tables
Restructuring (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Restructuring Information | ' | ||||||||||||||||||||
Restructuring information as of September 30, 2013 was as follows: | |||||||||||||||||||||
Restructuring | |||||||||||||||||||||
2012 and 2013 | 2010 | 2009 | |||||||||||||||||||
Facilities | Workforce | Facilities | Facilities | Total | |||||||||||||||||
and other | and other | and other | |||||||||||||||||||
Balance as of January 1, 2012 | $ | — | $ | — | $ | 653 | $ | 234 | $ | 887 | |||||||||||
Charges to operations | — | 1,371 | — | — | 1,371 | ||||||||||||||||
Charges settled in cash | — | (1,367 | ) | (653 | ) | (234 | ) | (2,254 | ) | ||||||||||||
Balance as of December 31, 2012 | — | 4 | — | — | 4 | ||||||||||||||||
Charges to operations | 584 | 864 | — | — | 1,448 | ||||||||||||||||
Non Cash Adjustments | (183 | ) | — | — | — | (183 | ) | ||||||||||||||
Charges settled in cash | (401 | ) | (868 | ) | — | — | (1,269 | ) | |||||||||||||
Balance as of September 30, 2013 | $ | — | — | $ | — | $ | — | $ | — | ||||||||||||
The_Company_Basis_of_Presentat3
The Company, Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 |
Organization And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Accumulated deficit | $248,688 | $248,688 | $232,302 |
Net loss | $7,968 | $16,386 | ' |
Apple | ' | ' | ' |
Organization And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Percentage of Accounts Receivable by Customer Segmentation | 45.70% | 45.70% | 44.30% |
PlayHaven | ' | ' | ' |
Organization And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Percentage of Accounts Receivable by Customer Segmentation | ' | ' | 13.20% |
' | ' | ' | |
Organization And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Percentage of Accounts Receivable by Customer Segmentation | ' | ' | 10.80% |
Revenues_from_Customers_or_Agg
Revenues from Customers or Aggregate Purchases Through Digital Storefronts Accounted for More Than Ten Percent of Revenues (Detail) (Revenues from Customers) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Apple | ' | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' | ' |
Revenues from customers | 50.30% | 37.50% | 50.40% | 40.90% |
' | ' | ' | ' | |
Revenue, Major Customer [Line Items] | ' | ' | ' | ' |
Revenues from customers | 18.70% | 20.30% | 18.70% | 19.20% |
Tapjoy | ' | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' | ' |
Revenues from customers | ' | 12.70% | ' | 10.80% |
Summary_of_Restatements_on_Aff
Summary of Restatements on Affected Line Items of Condensed Consolidated Balance Sheets (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Prepaid expenses and other | $4,615 | $5,167 |
Total assets | 76,983 | 74,955 |
Deferred revenues | 10,544 | 11,711 |
Total liabilities | 28,830 | 36,068 |
Total liabilities and stockholders' equity | 76,983 | 74,955 |
As Reported | ' | ' |
Prepaid expenses and other | ' | 2,487 |
Total assets | ' | 72,275 |
Deferred revenues | ' | 9,031 |
Total liabilities | ' | 33,388 |
Total liabilities and stockholders' equity | ' | 72,275 |
Adjustments | ' | ' |
Prepaid expenses and other | ' | 2,680 |
Total assets | ' | 2,680 |
Deferred revenues | ' | 2,680 |
Total liabilities | ' | 2,680 |
Total liabilities and stockholders' equity | ' | $2,680 |
Summary_of_Restatements_on_Aff1
Summary of Restatements on Affected Line Items of Condensed Consolidated Statements of Operations (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Revenues | $21,722 | $26,099 | $70,772 | $81,872 |
Cost of revenues: | ' | ' | ' | ' |
Platform commissions, royalties and other | 7,436 | 6,946 | 22,568 | 22,248 |
Amortization of intangible assets | 1,082 | 1,025 | 3,234 | 2,710 |
Total cost of revenues | 8,953 | 7,971 | 26,237 | 24,958 |
Gross profit | 12,769 | 18,128 | 44,535 | 56,914 |
As Reported | ' | ' | ' | ' |
Revenues | ' | 21,347 | ' | 66,512 |
Cost of revenues: | ' | ' | ' | ' |
Platform commissions, royalties and other | ' | 2,194 | ' | 6,888 |
Amortization of intangible assets | ' | 1,025 | ' | 2,710 |
Total cost of revenues | ' | 3,219 | ' | 9,598 |
Gross profit | ' | 18,128 | ' | 56,914 |
Adjustments | ' | ' | ' | ' |
Revenues | ' | 4,752 | ' | 15,360 |
Cost of revenues: | ' | ' | ' | ' |
Platform commissions, royalties and other | ' | 4,752 | ' | 15,360 |
Total cost of revenues | ' | $4,752 | ' | $15,360 |
Summary_of_Restatements_on_Aff2
Summary of Restatements on Affected Line Items of Condensed Consolidated Statements of Cash Flows (Detail) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Changes in operating assets and liabilities, net of effect of acquisitions: | ' | ' |
Prepaid expenses and other assets | $398 | ($1,485) |
Deferred revenues | -1,179 | 248 |
Net cash used in operating activities | -11,519 | -5,128 |
As Reported | ' | ' |
Changes in operating assets and liabilities, net of effect of acquisitions: | ' | ' |
Prepaid expenses and other assets | ' | -1,247 |
Deferred revenues | ' | 10 |
Net cash used in operating activities | ' | -5,128 |
Adjustments | ' | ' |
Changes in operating assets and liabilities, net of effect of acquisitions: | ' | ' |
Prepaid expenses and other assets | ' | -238 |
Deferred revenues | ' | $238 |
Computation_of_Net_Loss_Per_Sh
Computation of Net Loss Per Share (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Computation Of Earnings Per Share Line Items | ' | ' | ' | ' |
Net Loss | ($7,968) | ($3,563) | ($16,386) | ($13,392) |
Basic and diluted shares: | ' | ' | ' | ' |
Weighted average common shares outstanding | 71,619 | 65,270 | 69,337 | 64,584 |
Weighted average unvested common shares subject to restrictions | -90 | -708 | -91 | -719 |
Weighted average shares used to compute basic and diluted net loss per share | 71,529 | 64,562 | 69,246 | 63,865 |
Net loss per share - basic and diluted | ($0.11) | ($0.06) | ($0.24) | ($0.21) |
AntiDilutive_Securities_Exclud
Anti-Dilutive Securities Excluded from Computation of Diluted Net Loss Per Share of Common Stock (Detail) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Weighted average options to purchase common stock | 15,440 | 15,186 | 14,411 | 15,088 |
Warrants to purchase common stock | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Weighted average options to purchase common stock | 3,813 | 4,140 | 2,978 | 4,261 |
Unvested common shares subject to restrictions | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Weighted average options to purchase common stock | 90 | 708 | 91 | 719 |
Options to purchase common stock | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Weighted average options to purchase common stock | 10,512 | 10,338 | 10,570 | 10,108 |
Contingently issuable shares of common stock | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Weighted average options to purchase common stock | 0 | 0 | 251 | 0 |
RSUs | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Weighted average options to purchase common stock | 1,025 | 0 | 521 | 0 |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) (USD $) | 9 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | |||||||||||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Aug. 01, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | 16-May-13 | Aug. 01, 2011 | Aug. 01, 2011 | Aug. 01, 2011 | Aug. 01, 2011 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Mar. 31, 2013 |
Blammo | Blammo | Blammo | Blammo | Blammo | Blammo | Blammo | Blammo | Blammo | Blammo | Level 1 | Level 1 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | |||
April 1, 2013 through March 31, 2014 Revenue Meets Base Line | Revenue Above Base Line Upside April 1, 2013 through March 31, 2014 | Revenue Above Base Line Upside April 1, 2014 through March 31, 2015 | April 1, 2014 through March 31, 2015 Revenue Meets Base Line | Minimum | Minimum | Maximum | Maximum | Additional paid-in capital | |||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash equivalents | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $27,658 | $22,325 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, shares issued | ' | ' | 1,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum additional shares issuable | ' | ' | 3,313 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issued shares as part of earnout consideration | ' | ' | ' | ' | ' | ' | ' | 742 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of shares issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,263 |
Additional Shares if meets its Baseline and Upside Net Revenue Goals | ' | ' | ' | ' | ' | ' | ' | ' | 417 | 833 | 1,154 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated fair value of non-employee contingent liability | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12 | ' | 12 | 412 | ' | ' | ' | ' | ' |
Change in fair value of non-employee contingent liabilities | -49 | 77 | ' | 31 | 954 | 49 | 77 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of contingent liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 66 | ' | 66 | 2,512 | ' | ' | ' | ' | ' |
Fair value of contingent consideration recognized as a current liability | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $21 | ' | $21 | $1,855 | ' | ' | ' | ' | ' |
Contingent Consideration Business acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'The Company uses a risk-neutral framework to estimate the probability of achieving the revenue targets set forth above for each year. The fair value of the contingent consideration was determined using a digital option, which captures the present value of the expected payment multiplied by the probability of reaching the revenue targets for each year. | ' | ' | ' | ' | ' | ' |
Expected discount rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35.00% | 25.00% | ' | ' | ' | ' | ' | ' | ' |
Expected volatility percent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35.00% | 41.00% | ' | ' | ' | ' | ' | ' | ' |
Expected risk-free interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.04% | 0.14% | 0.22% | 0.27% | ' |
Contingent_Consideration_Net_R
Contingent Consideration Net Revenue Performance Targets (Detail) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
Upside | Fiscal 2014 | ' |
Business Acquisition [Line Items] | ' |
Net revenue performance targets | $10,000 |
Upside | Fiscal 2015 | ' |
Business Acquisition [Line Items] | ' |
Net revenue performance targets | 15,000 |
Baseline | Fiscal 2014 | ' |
Business Acquisition [Line Items] | ' |
Net revenue performance targets | 5,500 |
Baseline | Fiscal 2015 | ' |
Business Acquisition [Line Items] | ' |
Net revenue performance targets | $8,500 |
Accounts_Receivable_Detail
Accounts Receivable (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Accounts receivable | $11,725 | $12,313 |
Less: Allowance for doubtful accounts | -443 | -432 |
Accounts receivable, net | $11,282 | $11,881 |
Balance_Sheet_Components_Addit
Balance Sheet Components - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 |
Prepaid Expense and Other [Member] | Prepaid Expense and Other [Member] | |||||
Balance Sheet Components [Line Items] | ' | ' | ' | ' | ' | ' |
Platform commissions | ' | ' | ' | ' | $2,432 | $2,680 |
Depreciation | $633 | $554 | $2,025 | $1,672 | ' | ' |
Property_and_Equipment_Detail
Property and Equipment (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Computer equipment | $6,087 | $6,255 |
Furniture and fixtures | 664 | 566 |
Software | 6,207 | 6,304 |
Leasehold improvements | 2,742 | 2,227 |
Property, Plant and Equipment, Gross, Total | 15,700 | 15,352 |
Less: Accumulated depreciation and amortization | -10,551 | -10,326 |
Property and equipment, net | $5,149 | $5,026 |
Other_LongTerm_Liabilities_Det
Other Long-Term Liabilities (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Other Liabilities [Line Items] | ' | ' |
Uncertain tax position obligations | $889 | $3,859 |
Contingent earnout liability | 45 | 657 |
Deferred income tax liability | 669 | 647 |
Deferred rent and other | 1,103 | 1,027 |
Total other long term liabilities | $2,706 | $6,190 |
Business_Combinations_Addition
Business Combinations - Additional Information (Detail) (USD $) | Sep. 30, 2013 | Aug. 02, 2012 | Aug. 02, 2012 | Aug. 02, 2012 |
In Thousands, except Per Share data, unless otherwise specified | Game Spy Industries | Game Spy Industries | Game Spy Industries | |
Maximum | Minimum | |||
Business Acquisition [Line Items] | ' | ' | ' | ' |
Business acquisition | ' | 2-Aug-12 | ' | ' |
Shares of the Company's common stock | ' | 600 | ' | ' |
Common stock, value | ' | $2,796 | ' | ' |
Closing price of the Company's common stock | $2.78 | $4.66 | ' | ' |
Shares held in Escrow | ' | 90 | ' | ' |
Term for Storage of Infrastructure | ' | '2 years | ' | ' |
Measurement Periods from Acquisition Date | ' | '1 year | ' | ' |
Intangible assets estimated useful life | ' | ' | '3 years | '2 years |
Deferred tax liabilities | ' | 570 | ' | ' |
Residual value of goodwill | ' | 1,096 | ' | ' |
Fair value assumptions income approach discount rate | ' | 14.00% | ' | ' |
Net book value of deferred revenue | ' | $1,684 | ' | ' |
Deferred Revenue, Recognized on a straight-line basis | ' | '24 months | ' | ' |
Fair_Values_of_Assets_Acquired
Fair Values of Assets Acquired and Liabilities Assumed (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Aug. 02, 2012 | Aug. 02, 2012 | Aug. 02, 2012 |
In Thousands, unless otherwise specified | Game Spy Industries | Carrier contract and related relationships | Titles, content and technology | |||
Game Spy Industries | Game Spy Industries | |||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' |
Cash | ' | ' | ' | $913 | ' | ' |
Accounts receivable, net | ' | ' | ' | 1,695 | ' | ' |
Property and equipment | ' | ' | ' | 485 | ' | ' |
Intangible assets: | ' | ' | ' | ' | ' | ' |
Intangible assets | ' | ' | ' | ' | 250 | 1,300 |
Goodwill | 19,477 | 19,440 | 21,991 | 1,096 | ' | ' |
Total assets acquired | ' | ' | ' | 5,739 | ' | ' |
Liabilities assumed: | ' | ' | ' | ' | ' | ' |
Other accrued liabilities | ' | ' | ' | -689 | ' | ' |
Deferred revenue | ' | ' | ' | -1,684 | ' | ' |
Deferred tax liability | ' | ' | ' | -570 | ' | ' |
Total liabilities acquired | ' | ' | ' | -2,943 | ' | ' |
Net acquired assets | ' | ' | ' | $2,796 | ' | ' |
Carrying_Amounts_and_Accumulat
Carrying Amounts and Accumulated Amortization Expense of Acquired Intangible Assets (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Apr. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | Trademarks | Intangible assets amortized to cost of revenues | Intangible assets amortized to cost of revenues | Intangible assets amortized to cost of revenues | Intangible assets amortized to cost of revenues | Intangible assets amortized to cost of revenues | Intangible assets amortized to cost of revenues | Intangible assets amortized to cost of revenues | Intangible assets amortized to cost of revenues | Intangible assets amortized to cost of revenues | Intangible assets amortized to cost of revenues | Intangible assets amortized to cost of revenues | Intangible assets amortized to cost of revenues | Intangible assets amortized to cost of revenues | Intangible assets amortized to cost of revenues | Intangible assets amortized to cost of revenues | Intangible assets amortized to cost of revenues | Other intangible assets amortized to operating expenses | Other intangible assets amortized to operating expenses | Other intangible assets amortized to operating expenses | Other intangible assets amortized to operating expenses | Other intangible assets amortized to operating expenses | Other intangible assets amortized to operating expenses | ||
Titles, content and technology | Titles, content and technology | Catalogs | Catalogs | ProvisionX Technology | ProvisionX Technology | Carrier contract and related relationships | Carrier contract and related relationships | Licensed content | Licensed content | Service provider license | Service provider license | Trademarks | Trademarks | Emux Technology | Emux Technology | Noncompete agreement | Noncompete agreement | ||||||||
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intangible assets estimated useful life | ' | ' | '7 years | ' | ' | '2 years | ' | '1 year | ' | '6 years | ' | '5 years | ' | '5 years | ' | '9 years | ' | '7 years | ' | ' | ' | '6 years | ' | '4 years | ' |
Gross Carrying Value (Including Impact of Foreign Exchange) | $49,355 | $49,002 | ' | $42,830 | $42,474 | $12,792 | $12,781 | $1,256 | $1,257 | $207 | $207 | $19,848 | $19,585 | $3,020 | $2,952 | $479 | $467 | $5,228 | $5,225 | $6,525 | $6,528 | $1,339 | $1,341 | $5,186 | $5,187 |
Accumulated Amortization Expense (Including Impact of Foreign Exchange) | -42,890 | -38,113 | ' | -36,938 | -33,377 | -11,967 | -11,518 | -1,256 | -1,257 | -207 | -207 | -18,881 | -16,421 | -3,020 | -2,952 | -308 | -262 | -1,299 | -760 | -5,952 | -4,736 | -1,339 | -1,341 | -4,613 | -3,395 |
Total Intangible Assets Subject to Amortization | $6,465 | $10,889 | ' | $5,892 | $9,097 | $825 | $1,263 | $0 | $0 | $0 | $0 | $967 | $3,164 | $0 | $0 | $171 | $205 | $3,929 | $4,465 | $573 | $1,792 | $0 | $0 | $573 | $1,792 |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2012 | Apr. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
GameSpy Intangible Assets | Trademarks | Cost of revenues | Cost of revenues | Cost of revenues | Cost of revenues | Other intangible assets amortized to operating expenses | Other intangible assets amortized to operating expenses | Other intangible assets amortized to operating expenses | Other intangible assets amortized to operating expenses | GameSpy Goodwill | ||||||
Goodwill And Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquired intangible assets | ' | ' | ' | ' | ' | $1,550 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intangible assets estimated useful life | ' | ' | ' | ' | ' | ' | '7 years | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deer Hunter Brand cash consideration | ' | ' | ' | ' | ' | ' | 5,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
License term related to intellectual property associated with Deer Hunter brand | ' | ' | ' | ' | ' | ' | '99 years | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intangible amortization expense cost of revenues | ' | ' | ' | ' | ' | ' | ' | 1,082 | 1,025 | 3,234 | 2,710 | ' | ' | ' | ' | ' |
Intangible amortization expense, operating expenses | 229 | 495 | 1,219 | 1,485 | ' | ' | ' | ' | ' | ' | ' | 229 | 495 | 1,219 | 1,485 | ' |
Goodwill, Acquired during the year | ' | ' | $0 | ' | $1,031 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,096 |
Total_Expected_Future_Amortiza
Total Expected Future Amortization Related to Intangible Assets (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ' | ' |
2013 (remaining three months) | $1,098 | ' |
2014 | 1,879 | ' |
2015 | 1,115 | ' |
2016 | 765 | ' |
2017 | 714 | ' |
2018 and thereafter | 894 | ' |
Total Intangible Assets Subject to Amortization | 6,465 | 10,889 |
Intangible assets amortized to cost of revenues | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
2013 (remaining three months) | 1,003 | ' |
2014 | 1,496 | ' |
2015 | 1,020 | ' |
2016 | 765 | ' |
2017 | 714 | ' |
2018 and thereafter | 894 | ' |
Total Intangible Assets Subject to Amortization | 5,892 | 9,097 |
Other intangible assets amortized to operating expenses | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
2013 (remaining three months) | 95 | ' |
2014 | 383 | ' |
2015 | 95 | ' |
2016 | 0 | ' |
2017 | 0 | ' |
2018 and thereafter | 0 | ' |
Total Intangible Assets Subject to Amortization | $573 | $1,792 |
Goodwill_by_Reporting_Unit_Det
Goodwill by Reporting Unit (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Goodwill [Line Items] | ' | ' | ' | ' | ' |
Goodwill, Beginning | ' | ' | $92,551 | $91,489 | $91,489 |
Goodwill, Accumulated Impairment Loss, Beginning Balance | ' | ' | -73,111 | -69,498 | -69,498 |
Goodwill, Net Beginning Balance | ' | ' | 19,440 | 21,991 | 21,991 |
Goodwill, Acquired during the year | ' | ' | 0 | ' | 1,031 |
Effects of Foreign Currency Exchange | ' | ' | 37 | ' | 31 |
Impairment of goodwill | 0 | -3,613 | 0 | -3,613 | -3,613 |
Goodwill, Ending | 92,588 | ' | 92,588 | ' | 92,551 |
Goodwill, Accumulated Impairment Loss, Ending Balance | -73,111 | ' | -73,111 | ' | -73,111 |
Goodwill, Net Ending Balance | 19,477 | ' | 19,477 | ' | 19,440 |
Americas, excluding the USA | ' | ' | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' | ' | ' |
Goodwill, Beginning | ' | ' | 42,946 | 41,915 | 41,915 |
Goodwill, Accumulated Impairment Loss, Beginning Balance | ' | ' | -24,871 | -24,871 | -24,871 |
Goodwill, Net Beginning Balance | ' | ' | 18,075 | 17,044 | 17,044 |
Goodwill, Acquired during the year | ' | ' | 0 | ' | 1,031 |
Effects of Foreign Currency Exchange | ' | ' | 0 | ' | 0 |
Impairment of goodwill | ' | ' | 0 | ' | 0 |
Goodwill, Ending | 42,946 | ' | 42,946 | ' | 42,946 |
Goodwill, Accumulated Impairment Loss, Ending Balance | -24,871 | ' | -24,871 | ' | -24,871 |
Goodwill, Net Ending Balance | 18,075 | ' | 18,075 | ' | 18,075 |
EMEA | ' | ' | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' | ' | ' |
Goodwill, Beginning | ' | ' | 25,354 | 25,354 | 25,354 |
Goodwill, Accumulated Impairment Loss, Beginning Balance | ' | ' | -25,354 | -25,354 | -25,354 |
Goodwill, Net Beginning Balance | ' | ' | 0 | 0 | 0 |
Goodwill, Acquired during the year | ' | ' | 0 | ' | 0 |
Effects of Foreign Currency Exchange | ' | ' | 0 | ' | 0 |
Impairment of goodwill | ' | ' | 0 | ' | 0 |
Goodwill, Ending | 25,354 | ' | 25,354 | ' | 25,354 |
Goodwill, Accumulated Impairment Loss, Ending Balance | -25,354 | ' | -25,354 | ' | -25,354 |
Goodwill, Net Ending Balance | 0 | ' | 0 | ' | 0 |
APAC | ' | ' | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' | ' | ' |
Goodwill, Beginning | ' | ' | 24,251 | 24,220 | 24,220 |
Goodwill, Accumulated Impairment Loss, Beginning Balance | ' | ' | -22,886 | -19,273 | -19,273 |
Goodwill, Net Beginning Balance | ' | ' | 1,365 | 4,947 | 4,947 |
Goodwill, Acquired during the year | ' | ' | 0 | ' | 0 |
Effects of Foreign Currency Exchange | ' | ' | 37 | ' | 31 |
Impairment of goodwill | ' | ' | 0 | ' | -3,613 |
Goodwill, Ending | 24,288 | ' | 24,288 | ' | 24,251 |
Goodwill, Accumulated Impairment Loss, Ending Balance | -22,886 | ' | -22,886 | ' | -22,886 |
Goodwill, Net Ending Balance | $1,402 | ' | $1,402 | ' | $1,365 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | |||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Apr. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2013 |
Developer Commitments | 500 Howard Street Sublease | 500 Howard Street Sublease | New Griptonite Lease | New Griptonite Lease | Prior Griptonite Lease | ||||||
sqft | sqft | ||||||||||
Commitments and Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Rent expense | $971 | $760 | $2,447 | $2,008 | ' | ' | ' | ' | ' | ' | ' |
Deferred rent balance | 988 | ' | 988 | ' | 632 | ' | ' | ' | ' | ' | ' |
Operating facility leases expiration period description | 'Various expiration dates through September 2020 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Lease commencement date | ' | ' | ' | ' | ' | ' | 23-May-13 | ' | ' | 23-Sep-13 | ' |
Lease expiration date | ' | ' | ' | ' | ' | ' | 31-Mar-18 | ' | ' | 30-Sep-20 | 30-Sep-13 |
Area of lease covers | ' | ' | ' | ' | ' | ' | 29,000 | ' | 18,000 | ' | ' |
Letter of credit to secure lease obligations | ' | ' | ' | ' | ' | ' | ' | 1,230 | 500 | ' | ' |
Future minimum royalty payments | 145 | ' | 145 | ' | ' | ' | ' | ' | ' | ' | ' |
Commitments and contingencies | ' | ' | ' | ' | ' | 353 | ' | ' | ' | ' | ' |
Commitments due over next period | ' | ' | ' | ' | ' | '12 months | ' | ' | ' | ' | ' |
Income tax liabilities not expected to become due | ' | ' | '12 months | ' | ' | ' | ' | ' | ' | ' | ' |
Liabilities recorded for indemnification agreements | $0 | ' | $0 | ' | $0 | ' | ' | ' | ' | ' | ' |
Future_Minimum_Lease_Payments_
Future Minimum Lease Payments under Non-Cancelable Operating Leases (Detail) (USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
Minimum Operating Lease Payments | ' |
2013 (remaining three months) | $845 |
2014 | 3,915 |
2015 | 4,054 |
2016 | 3,448 |
2017 | 2,684 |
2018 and thereafter | 1,903 |
Operating Leases, Future Minimum Payments, Current | $16,849 |
Stockholders_Equity_Additional
Stockholders' Equity - Additional Information (Detail) (USD $) | 9 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Jul. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Jul. 31, 2013 | Sep. 30, 2013 | Aug. 02, 2012 | Aug. 01, 2011 | 16-May-13 |
MGM Interactive Inc. | MGM Warrants [Member] | MGM Warrants [Member] | Common Stock | Common Stock | Public Offerings | Warrant To Purchase Common Stock | Warrant Expires On Fifth Anniversary | Game Spy Industries | Blammo | Blammo | ||||
MGM Interactive Inc. | MGM Interactive Inc. | |||||||||||||
Stockholders Equity Note Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, shares issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 600 | 1,000 | ' |
Issued shares as part of earnout consideration | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 742 |
Common stock, shares issued | 77,925 | ' | 66,022 | ' | ' | ' | ' | ' | 7,245 | ' | ' | ' | ' | ' |
Public Offering Price | $0.00 | ' | $0.00 | ' | ' | ' | ' | ' | $2.10 | ' | ' | ' | ' | ' |
Proceeds from issuance of common stock | $14,214 | $0 | ' | ' | ' | ' | ' | ' | $14,006 | ' | ' | ' | ' | ' |
Warrants right to purchase, Maximum | ' | ' | ' | 3,333 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants exercise price, per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' |
Number of vested and exercisable | ' | ' | ' | 333 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrant expiration date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15-Jul-18 | ' | ' | ' |
Expected volatility percent | ' | ' | ' | ' | 64.20% | 64.20% | ' | ' | ' | ' | ' | ' | ' | ' |
Expected term (years) | ' | ' | ' | ' | '5 years | '5 years | ' | ' | ' | ' | ' | ' | ' | ' |
Expected risk-free interest rate | ' | ' | ' | ' | 1.50% | 1.50% | ' | ' | ' | ' | ' | ' | ' | ' |
Dividend yield | ' | ' | ' | ' | 0.00% | 0.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Non-cash warrant related expense in cost of revenues | 427 | 0 | ' | ' | 427 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of common stock upon exercise of warrants, shares | ' | ' | ' | ' | ' | ' | 2,886 | 413 | ' | ' | ' | ' | ' | ' |
Proceeds from exercise of stock warrants and issuance of common stock | $4,329 | $619 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants_Outstanding_Detail
Warrants Outstanding (Detail) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
Class of Warrant or Right [Line Items] | ' |
Number of Shares Outstanding Under Warrant | 4,307 |
August 2010 - Warrants issued in private offering | ' |
Class of Warrant or Right [Line Items] | ' |
Warrants, Term (Years) | '5 years |
Warrants, Exercise Price per Share | 1.5 |
Number of Shares Outstanding Under Warrant | 974 |
July 2013-Warrant issued to MGM | ' |
Class of Warrant or Right [Line Items] | ' |
Warrants, Term (Years) | '5 years |
Warrants, Exercise Price per Share | 3 |
Number of Shares Outstanding Under Warrant | 3,333 |
Stock_Option_and_Other_Benefit2
Stock Option and Other Benefit Plans - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Quoted closing price of Company's common stock | $2.78 | ' | $2.78 | ' | ' |
Cash proceed from option exercise, net | ' | ' | $571 | $1,221 | ' |
Weighted-average fair value of stock options granted | ' | ' | $1.07 | $2.27 | ' |
Stock option granted contractual term | ' | ' | '6 years | ' | ' |
Stock-based compensation contingent consideration at fair value (includes unvested portion of the liability) | 54 | ' | 54 | ' | 2,242 |
Stock-based compensation (benefit) expense recorded as contingent liability | -161 | -3,899 | -134 | 852 | ' |
Unrecognized compensation expense | 5,848 | ' | 5,848 | ' | ' |
Unrecognized compensation expense recognized over weighted average period | ' | ' | '2 years 6 months 26 days | ' | ' |
RSUs | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Vesting percentage | ' | ' | 25.00% | ' | ' |
Vesting and settlement terms | ' | ' | 'RSUs typically vest and are settled over approximately a four-year period with 25% of the shares vesting on or around the one-year anniversary of the grant date and the remaining shares vesting quarterly thereafter. | ' | ' |
Unrecognized compensation expense | $1,947 | ' | $1,947 | ' | ' |
2007 Equity Incentive Plan | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Common stock authorized for issuance, increased | ' | ' | 7,200 | ' | ' |
Pool share reduced for each share granted | ' | ' | 1.39 | ' | ' |
Pool share increased for each share canceled | ' | ' | 1.39 | ' | ' |
Restricted stock award where price charged to participant less than fair market value | 100.00% | ' | 100.00% | ' | ' |
Number of shares available for grant | 7,368 | ' | 7,368 | ' | ' |
2007 Employee Stock Purchase Plan | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Number of shares available for grant | 924 | ' | 924 | ' | ' |
2008 Equity Inducement Plan | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Number of shares available for grant | 222 | ' | 222 | ' | ' |
Calculation_of_Sharebased_Awar
Calculation of Share-based Awards Available for Grant (Detail) (2007 Equity Incentive and 2008 Equity Inducement Plans) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
2007 Equity Incentive and 2008 Equity Inducement Plans | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Shares available, beginning balance | 1,178 |
Increase in authorized shares | 7,400 |
Share-based awards granted | -3,275 |
Share-based awards canceled | 2,287 |
Shares available, ending balance | 7,590 |
Calculation_of_Sharebased_Awar1
Calculation of Share-based Awards Available for Grant (Parenthetical) (Detail) (2007 Equity Incentive and 2008 Equity Inducement Plans) | 9 Months Ended |
Sep. 30, 2013 | |
2007 Equity Incentive and 2008 Equity Inducement Plans | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Pool share reduced for each share granted | 1.39 |
Pool share increased for each share canceled | 1.39 |
Summary_of_Companys_RSU_Activi
Summary of Company's RSU Activity (Detail) (RSUs, USD $) | 9 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 |
RSUs | ' |
Schedule of Share based Compensation Arrangements by Share based Payment Award, Equity Instruments, Other Than Options, Restricted Stock Units [Line Items] | ' |
Awarded and unvested, Number of Units Outstanding, beginning balance | 0 |
Granted, Number of Units Outstanding | 1,211 |
Vested, Number of Units Outstanding | 0 |
Forfeited, Number of Units Outstanding | -153 |
Awarded and unvested, Number of Units Outstanding,ending balance | 1,058 |
Restricted stock units expected to vest, Number of Units Outstanding, ending balance | 766 |
Awarded and unvested, Weighted Average Grant Date Fair Value, beginning balance | $0 |
Granted, Weighted Average Grant Date Fair Value | $2.68 |
Vested, Weighted Average Grant Date Fair Value | $0 |
Forfeited, Weighted Average Grant Date Fair Value | $2.74 |
Awarded and unvested, Weighted Average Grant Date Fair Value, ending balance | $2.67 |
Stock_Option_Activity_Detail
Stock Option Activity (Detail) (Shares Outstanding, USD $) | 9 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 |
Shares Outstanding | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Number of shares, beginning balances | 10,921 |
Options granted, number of shares | 1,989 |
Options canceled, number of shares | -2,134 |
Options exercised, number of shares | -419 |
Number of shares, ending balances | 10,357 |
Options vested and expected to vest, number of shares | 9,470 |
Options exercisable, number of shares | 5,455 |
Balances | $3.07 |
Options granted | $2.61 |
Options canceled | $3.68 |
Options exercised | $1.36 |
Balances | $2.92 |
Options vested and expected to vest | $2.91 |
Options exercisable | $2.88 |
Weighted average contractual term, options outstanding | '3 years 9 months 11 days |
Weighted average contractual term, options vested and expected | '3 years 8 months 1 day |
Weighted average contractual term, Options exercisable | '2 years 11 months 5 days |
Aggregate intrinsic value, options outstanding | $5,225 |
Aggregate intrinsic value, Options vested and expected to vest | 5,093 |
Aggregate intrinsic value, options exercisable | $4,124 |
Schedule_of_Assumptions_Used_I
Schedule of Assumptions Used In Black-Scholes Valuation Model and Weighted Average Assumptions (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Share Based Payment Award Stock Options Valuation Assumptions [Line Items] | ' | ' | ' | ' |
Dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Risk-free interest rate | 1.16% | 0.52% | 0.69% | 0.63% |
Expected volatility | 50.80% | 68.30% | 52.50% | 69.10% |
Expected term (years) | '4 years | '4 years | '4 years | '4 years |
StockBased_Compensation_Expens
Stock-Based Compensation Expense (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total stock-based compensation expense | $720 | ($2,878) | $2,701 | $3,996 |
Research and development | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total stock-based compensation expense | 268 | -3,388 | 1,099 | 2,268 |
Sales and marketing | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total stock-based compensation expense | 40 | 73 | 200 | 343 |
General and administrative | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total stock-based compensation expense | $412 | $437 | $1,402 | $1,385 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Income Tax Contingency [Line Items] | ' | ' | ' | ' | ' |
Income tax benefit | $30 | $1,075 | $2,765 | $2,654 | ' |
Unrecognized tax benefits | 3,947 | ' | 3,947 | ' | 4,626 |
Unrecognized tax benefits, impact effective tax rate | 863 | ' | 863 | ' | 817 |
Anticipated release of provision relating to uncertain tax positions due to expiration of certain statutes of limitation in foreign jurisdictions | 815 | ' | 815 | ' | ' |
Unrecognized Tax Benefits Reductions Resulting from Lapse of Applicable Statute of Limitations Anticipated Duration Period | ' | ' | '1 year | ' | ' |
Decrease in liability for uncertain tax positions | ' | ' | 737 | ' | ' |
Interest on uncertain tax positions | 1 | 34 | 71 | 148 | ' |
Liability related to interest and penalties for uncertain tax positions | $58 | ' | $58 | ' | $2,348 |
Revenue_from_Different_Product
Revenue from Different Products (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Revenue from External Customer [Line Items] | ' | ' | ' | ' |
Revenues | $21,722 | $26,099 | $70,772 | $81,872 |
Feature Phone | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' |
Revenues | 1,305 | 2,924 | 4,584 | 10,799 |
Smartphone | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' |
Revenues | $20,417 | $23,175 | $66,188 | $71,073 |
Revenues_in_Geographic_Regions
Revenues in Geographic Regions (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Revenues | $21,722 | $26,099 | $70,772 | $81,872 |
Reportable Geographical Components | United States of America | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Revenues | 9,055 | 14,048 | 30,000 | 45,558 |
Reportable Geographical Components | Americas, excluding the USA | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Revenues | 1,277 | 1,252 | 3,785 | 3,784 |
Reportable Geographical Components | EMEA | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Revenues | 4,812 | 5,254 | 15,610 | 16,677 |
Reportable Geographical Components | Asia Pacific | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Revenues | $6,578 | $5,545 | $21,377 | $15,853 |
LongLived_Assets_by_Geographic
Long-Lived Assets by Geographical Area (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Property and equipment, net of accumulated depreciation and amortization | $5,149 | $5,026 |
Reportable Geographical Components | Americas | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Property and equipment, net of accumulated depreciation and amortization | 4,105 | 3,649 |
Reportable Geographical Components | EMEA | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Property and equipment, net of accumulated depreciation and amortization | 918 | 1,092 |
Reportable Geographical Components | Asia Pacific | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Property and equipment, net of accumulated depreciation and amortization | $126 | $285 |
Restructuring_Information_Deta
Restructuring Information (Detail) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Beginning Balance | $4 | $887 |
Charges to operations | 1,448 | 1,371 |
Non Cash Adjustments | -183 | ' |
Charges settled in cash | -1,269 | -2,254 |
Ending Balance | ' | 4 |
Facilities and other | 2012 and 2013 Restructuring Plan | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Beginning Balance | 0 | 0 |
Charges to operations | 584 | 0 |
Non Cash Adjustments | -183 | ' |
Charges settled in cash | -401 | 0 |
Ending Balance | 0 | 0 |
Facilities and other | 2010 Restructuring Plan | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Beginning Balance | 0 | 653 |
Charges to operations | 0 | 0 |
Non Cash Adjustments | 0 | ' |
Charges settled in cash | 0 | -653 |
Ending Balance | 0 | 0 |
Facilities and other | 2009 Restructuring Plan | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Beginning Balance | 0 | 234 |
Charges to operations | 0 | 0 |
Non Cash Adjustments | 0 | ' |
Charges settled in cash | 0 | -234 |
Ending Balance | 0 | 0 |
Workforce | 2012 and 2013 Restructuring Plan | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Beginning Balance | 4 | 0 |
Charges to operations | 864 | 1,371 |
Non Cash Adjustments | 0 | ' |
Charges settled in cash | -868 | -1,367 |
Ending Balance | $0 | $4 |
Restructuring_Additional_Infor
Restructuring - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' |
Restructuring charge | $0 | $213 | $1,448 | $533 | ' |
Non Cash Adjustments | ' | ' | 183 | ' | ' |
Restructuring liability | 0 | ' | 0 | ' | 4 |
2012 and 2013 Restructuring Plan | Employee termination costs | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' |
Restructuring charge | ' | ' | 864 | ' | ' |
Restructuring charges to date | ' | ' | 2,235 | ' | ' |
2012 and 2013 Restructuring Plan | Facilities and other | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' |
Restructuring charge | ' | ' | 584 | ' | ' |
Non Cash Adjustments | ' | ' | 183 | ' | ' |
2012 and 2013 Restructuring Plan | Facilities and other | Brazilian | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' |
Non Cash Adjustments | ' | ' | $238 | ' | ' |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Granite Global Ventures II L.P. and GGV II Entrepreneurs Fund L.P | ' | ' | ' | ' | ' |
Transactions with Third Party [Line Items] | ' | ' | ' | ' | ' |
Percentage of ownership interest | 7.34% | ' | 7.34% | ' | ' |
PlayHaven | ' | ' | ' | ' | ' |
Transactions with Third Party [Line Items] | ' | ' | ' | ' | ' |
Percentage of ownership interest, acquires | ' | ' | 25.60% | ' | ' |
Revenue from related parties | $841 | $1,775 | $3,338 | $4,714 | ' |
Percentage of total accounts receivable | 8.50% | ' | 8.50% | ' | 13.20% |