Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Mar. 01, 2014 | Jun. 30, 2013 | |
Document Information [Line Items] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Trading Symbol | 'GLUU | ' | ' |
Entity Registrant Name | 'GLU MOBILE INC | ' | ' |
Entity Central Index Key | '0001366246 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 80,534,124 | ' |
Entity Public Float | ' | ' | $142,196,240 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $28,496 | $22,325 |
Accounts receivable, net | 18,305 | 11,881 |
Prepaid expenses and other | 7,663 | 5,167 |
Total current assets | 54,464 | 39,373 |
Property and equipment, net | 5,096 | 5,026 |
Restricted Cash | 1,730 | 0 |
Other long-term assets | 637 | 227 |
Intangible assets, net | 5,599 | 10,889 |
Goodwill | 19,485 | 19,440 |
Total assets | 87,011 | 74,955 |
Current liabilities: | ' | ' |
Accounts payable | 10,657 | 7,269 |
Accrued liabilities | 1,971 | 2,128 |
Accrued compensation | 5,378 | 5,989 |
Accrued royalties | 1,727 | 2,781 |
Deferred revenues | 18,224 | 11,711 |
Total current liabilities | 37,957 | 29,878 |
Other long-term liabilities | 2,357 | 6,190 |
Total liabilities | 40,314 | 36,068 |
Commitments and contingencies (Note 7) | ' | ' |
Stockholders' equity: | ' | ' |
Preferred stock, $0.0001 par value; 5,000 shares authorized at December 31, 2013 and 2012; no shares issued and outstanding at December 31, 2013 and 2012 | 0 | 0 |
Common stock, $0.0001 par value: 250,000 authorized at December 31, 2013 and 2012; 78,464 and 66,022 shares issued and outstanding at December 31, 2013 and 2012 | 8 | 6 |
Additional paid-in capital | 298,593 | 271,016 |
Accumulated other comprehensive income | 307 | 167 |
Accumulated deficit | -252,211 | -232,302 |
Total stockholders' equity | 46,697 | 38,887 |
Total liabilities and stockholders' equity | $87,011 | $74,955 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 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 | 78,464 | 66,022 |
Common stock, shares outstanding | 78,464 | 66,022 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenues | $105,613 | $108,183 | $74,025 |
Cost of revenues: | ' | ' | ' |
Platform commissions, royalties and other | 32,371 | 29,630 | 20,229 |
Impairment of prepaid royalties and guarantees | 435 | 0 | 531 |
Amortization of intangible assets | 4,238 | 3,783 | 5,447 |
Total cost of revenues | 37,044 | 33,413 | 26,207 |
Gross profit | 68,569 | 74,770 | 47,818 |
Operating expenses: | ' | ' | ' |
Research and development | 46,877 | 54,275 | 39,073 |
Sales and marketing | 26,120 | 20,893 | 14,607 |
General and administrative | 15,550 | 14,744 | 14,002 |
Amortization of intangible assets | 1,336 | 1,980 | 825 |
Restructuring charge | 1,448 | 1,371 | 545 |
Impairment of goodwill | 0 | 3,613 | 0 |
Total operating expenses | 91,331 | 96,876 | 69,052 |
Loss from operations | -22,762 | -22,106 | -21,234 |
Interest and other income/(expense), net: | ' | ' | ' |
Interest income/(expense) | 16 | 21 | -29 |
Other income/(expense), net | -6 | -368 | 776 |
Interest and other income/(expense), net | 10 | -347 | 747 |
Loss before income taxes | -22,752 | -22,453 | -20,487 |
Income tax benefit/(provision) | 2,843 | 1,994 | -614 |
Net loss | ($19,909) | ($20,459) | ($21,101) |
Net loss per share - basic and diluted | ($0.28) | ($0.32) | ($0.37) |
Weighted average common shares outstanding - basic and diluted | 71,453 | 64,318 | 57,518 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Net loss | ($19,909) | ($20,459) | ($21,101) | |||
Other comprehensive income/(loss): | ' | ' | ' | |||
Foreign currency translation adjustments | 378 | -99 | -893 | |||
Reclassification to net loss | -238 | [1] | 0 | [1] | 0 | [1] |
Other comprehensive income/(loss) | 140 | -99 | -893 | |||
Comprehensive loss | ($19,769) | ($20,558) | ($21,994) | |||
[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 consolidated statement of operations for the year ended December 31, 2013. |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (loss) | Accumulated Deficit |
In Thousands | |||||
Beginning balances at Dec. 31, 2010 | $13,885 | $4 | $203,464 | $1,159 | ($190,742) |
Beginning balances (in shares) at Dec. 31, 2010 | ' | 44,585 | ' | ' | ' |
Net loss | -21,101 | 0 | 0 | 0 | -21,101 |
Stock-based compensation expense | 2,559 | 0 | 2,559 | 0 | 0 |
Issuance of other common stock (in shares) | ' | 51 | ' | ' | ' |
Issuance of other common stock | 200 | 0 | 200 | 0 | 0 |
Issuance of common stock upon exercise of stock options (in shares) | 859 | 859 | ' | ' | ' |
Issuance of common stock upon exercise of stock options | 1,633 | 0 | 1,633 | 0 | 0 |
Issuance of common stock upon exercise of warrants (in shares) | ' | 2,475 | ' | ' | ' |
Issuance of common stock upon exercise of warrants | 3,711 | 0 | 3,711 | 0 | 0 |
Issuance of common stock as consideration for acquisition (in shares) | ' | 7,106 | ' | ' | ' |
Issuance of common stock as consideration for acquisition | 33,158 | 1 | 33,157 | 0 | 0 |
Issuance of common stock as consideration for property and equipment | 0 | ' | ' | ' | ' |
Issuance of common stock upon Public/Secondary Offering, net of issuance costs (in shares) | ' | 8,415 | ' | ' | ' |
Issuance of common stock upon Public/Secondary Offering, net of issuance costs | 15,661 | 1 | 15,660 | 0 | 0 |
Issuance of common stock pursuant to Employee Stock Purchase Plan (in shares) | ' | 258 | ' | ' | ' |
Issuance of common stock pursuant to Employee Stock Purchase Plan | 360 | 0 | 360 | 0 | 0 |
Issuance of common stock as contingent consideration earned | 0 | ' | ' | ' | ' |
Other comprehensive income/(loss) | -893 | 0 | 0 | -893 | 0 |
Ending balances at Dec. 31, 2011 | 49,173 | 6 | 260,744 | 266 | -211,843 |
Ending balances (in shares) at Dec. 31, 2011 | ' | 63,749 | ' | ' | ' |
Net loss | -20,459 | 0 | 0 | 0 | -20,459 |
Stock-based compensation expense | 4,271 | 0 | 4,271 | 0 | 0 |
Issuance of common stock upon exercise of stock options (in shares) | 806 | 806 | ' | ' | ' |
Issuance of common stock upon exercise of stock options | 1,357 | 0 | 1,357 | 0 | 0 |
Issuance of common stock upon exercise of warrants (in shares) | ' | 413 | ' | ' | ' |
Issuance of common stock upon exercise of warrants | 619 | 0 | 619 | 0 | 0 |
Issuance of common stock as consideration for acquisition (in shares) | ' | 600 | ' | ' | ' |
Issuance of common stock as consideration for acquisition | 2,796 | 0 | 2,796 | 0 | 0 |
Issuance of common stock as consideration for property and equipment | 0 | ' | ' | ' | ' |
Issuance of common stock pursuant to Employee Stock Purchase Plan (in shares) | ' | 454 | ' | ' | ' |
Issuance of common stock pursuant to Employee Stock Purchase Plan | 1,229 | 0 | 1,229 | 0 | 0 |
Issuance of common stock as contingent consideration earned | 0 | ' | ' | ' | ' |
Other comprehensive income/(loss) | -99 | 0 | 0 | -99 | 0 |
Ending balances at Dec. 31, 2012 | 38,887 | 6 | 271,016 | 167 | -232,302 |
Ending balances (in shares) at Dec. 31, 2012 | ' | 66,022 | ' | ' | ' |
Net loss | -19,909 | 0 | 0 | 0 | -19,909 |
Stock-based compensation expense | 4,113 | 0 | 4,113 | 0 | 0 |
Issuance of common stock upon exercise of stock options (in shares) | 957 | 958 | ' | ' | ' |
Issuance of common stock upon exercise of stock options | 1,295 | 0 | 1,295 | 0 | 0 |
Issuance of common stock upon exercise of warrants (in shares) | ' | 2,886 | ' | ' | ' |
Issuance of common stock upon exercise of warrants | 4,329 | 1 | 4,328 | 0 | 0 |
Issuance of common stock as consideration for property and equipment (in shares) | ' | 89 | ' | ' | ' |
Issuance of common stock as consideration for property and equipment | 189 | 0 | 189 | 0 | 0 |
Issuance of common stock upon Public/Secondary Offering, net of issuance costs (in shares) | ' | 7,245 | ' | ' | ' |
Issuance of common stock upon Public/Secondary Offering, net of issuance costs | 13,985 | 1 | 13,984 | 0 | 0 |
Issuance of common stock pursuant to Employee Stock Purchase Plan (in shares) | ' | 522 | ' | ' | ' |
Issuance of common stock pursuant to Employee Stock Purchase Plan | 978 | 0 | 978 | 0 | 0 |
Issuance of common stock as contingent consideration earned | 2,263 | 0 | 2,263 | 0 | 0 |
Issuance of common stock as contingent consideration earned (in shares) | ' | 742 | ' | ' | ' |
Non-cash warrant expense | 427 | 0 | 427 | 0 | 0 |
Other comprehensive income/(loss) | 140 | 0 | 0 | 140 | 0 |
Ending balances at Dec. 31, 2013 | $46,697 | $8 | $298,593 | $307 | ($252,211) |
Ending balances (in shares) at Dec. 31, 2013 | ' | 78,464 | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash flows from operating activities: | ' | ' | ' |
Net loss | ($19,909) | ($20,459) | ($21,101) |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' | ' |
Depreciation | 2,707 | 2,368 | 1,846 |
Amortization of intangible assets | 5,574 | 5,763 | 6,272 |
Stock-based compensation | 4,285 | 5,822 | 3,110 |
Change in fair value of Blammo earnout | 7 | 167 | -61 |
Non-cash warrant expense | 427 | 0 | 0 |
Interest expense on debt | 0 | 0 | 4 |
Amortization of loan agreement costs | 0 | 0 | 70 |
Non-cash foreign currency remeasurement (gain)/loss | 23 | 365 | -789 |
Impairment of goodwill | 0 | 3,613 | 0 |
Impairment of prepaid royalties and guarantees | 435 | 0 | 531 |
Non-cash restructuring charges | 244 | 0 | 0 |
Changes in allowance for doubtful accounts | 27 | 281 | 296 |
Changes in operating assets and liabilities, net of effect of acquisitions: | ' | ' | ' |
Accounts receivable | -6,540 | 2,430 | -64 |
Prepaid expenses and other assets | -2,726 | -359 | 1,626 |
Accounts payable | 3,347 | -586 | 602 |
Other accrued liabilities | -157 | -459 | -177 |
Accrued compensation | 910 | -1,300 | 978 |
Accrued royalties | -1,495 | -1,133 | -3,402 |
Deferred revenues | 6,499 | 680 | 8,103 |
Accrued restructuring | -161 | -883 | -1,575 |
Other long-term liabilities | -3,075 | -3,059 | -2,996 |
Net cash used in operating activities | -9,578 | -6,749 | -6,727 |
Cash flows from investing activities: | ' | ' | ' |
Purchase of property and equipment | -2,722 | -2,014 | -2,708 |
Restricted Cash | -1,730 | 0 | 0 |
Other investing activities | -200 | 0 | 0 |
Purchase of intangible assets | -253 | -5,000 | 0 |
Net cash received from acquisitions | 0 | 913 | 10,342 |
Net cash (used in)/provided by investing activities | -4,905 | -6,101 | 7,634 |
Cash flows from financing activities: | ' | ' | ' |
Payments on line of credit | 0 | 0 | -2,288 |
MIG loan payments | 0 | 0 | -698 |
Proceeds from public offering, net | 13,985 | 0 | 15,661 |
Proceeds from exercise of stock options and ESPP | 2,273 | 2,586 | 1,993 |
Proceeds from exercise of stock warrants and issuance of common stock | 4,329 | 619 | 3,711 |
Net cash provided by financing activities | 20,587 | 3,205 | 18,379 |
Effect of exchange rate changes on cash | 67 | -242 | 63 |
Net increase/(decrease) in cash and cash equivalents | 6,171 | -9,887 | 19,349 |
Cash and cash equivalents at beginning of period | 22,325 | 32,212 | 12,863 |
Cash and cash equivalents at end of period | 28,496 | 22,325 | 32,212 |
Supplemental disclosures of cash flow information | ' | ' | ' |
Common stock issued for acquisitions | 0 | 2,796 | 33,158 |
Common stock issued for property and equipment | 189 | 0 | 0 |
Common stock issued as contingent consideration earned | 2,263 | 0 | 0 |
Income taxes paid | $269 | $394 | $1,453 |
The_Company_and_Summary_of_Sig
The Company and Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
The Company and Summary of Significant Accounting Policies | ' | ||||||||||||
NOTE 1 — THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||||||
The Company | |||||||||||||
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 download and make purchases within 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 $252,211 as of December 31, 2013. For the year ended December 31, 2013, the Company incurred a net loss of $19,909. The Company may incur additional 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 its intended business objectives. | |||||||||||||
Basis of Presentation | |||||||||||||
The Company’s consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States. | |||||||||||||
Basis of Consolidation | |||||||||||||
The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All material intercompany balances and transactions have been eliminated. | |||||||||||||
Use of Estimates | |||||||||||||
The preparation of financial statements and related disclosures in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) requires the Company’s management to make judgments, assumptions and estimates that affect the amounts reported in its consolidated financial statements and accompanying notes. Management bases its estimates on historical experience and on various other assumptions it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Significant estimates and assumptions reflected in the financial statements include, but are not limited to, the estimated lives that we use for revenue recognition, the allowance for doubtful accounts, useful lives of property and equipment and intangible assets, income taxes, fair value of stock awards issued and contingent consideration issued to Blammo shareholders, fair value of warrants issued, accounting for business combinations, and evaluating goodwill and long-lived assets for impairment. Actual results may differ from these estimates and these differences may be material. | |||||||||||||
Revenue Recognition | |||||||||||||
The Company generates revenues through the sale of games on traditional feature phones and smartphones and tablets, such as Apple’s iPhone and iPad and other mobile devices utilizing Google’s Android operating system. Feature phone games are distributed primarily through wireless carriers and smartphone games are distributed primarily through Digital Storefronts. | |||||||||||||
Smartphone Revenue | |||||||||||||
The Company distributes its games for smartphones and tablets to the end customer through Digital Storefronts. Within these Digital Storefronts, users can download the Company’s free-to-play games and pay to acquire virtual currency which can be redeemed in the game for virtual goods. The Company recognizes revenue, when persuasive evidence of an arrangement exists, the service has been provided to the user, the price paid by the user is fixed or determinable, and collectability is reasonably assured. Determining whether and when some of these criteria have been satisfied requires judgments that may have a significant impact on the timing and amount of revenue the Company reports in each period. For the purposes of determining when the service has been provided to the player, the Company has determined that an implied obligation exists to the paying user to continue displaying the purchased virtual goods within the game over the estimated average playing period of paying players for the game, which represents the Company’s best estimate of the estimated average life of virtual goods. | |||||||||||||
The Company sells both consumable and durable virtual goods and receives reports from the Digital Storefronts, which breakdown the various purchases made from their games over a given time period. The Company reviews these reports to determine on a per-item basis whether the purchase was a consumable virtual good or a durable virtual good. Consumable goods are items consumed at a predetermined time or otherwise have limitations on repeated use, while durable goods are items accessible to the user over an extended period of time. The Company’s revenues from consumable virtual goods have been immaterial over the previous three years and are one-time actions that can be purchased directly by the player through the Digital Storefront. The Company recognizes the revenues from these items immediately, since it believes that the delivery obligation has been met and there are no further implicit or explicit performance obligations related to the purchase of that consumable virtual good. Revenues from durable virtual goods are generated through the purchase of virtual coins by users through a Digital Storefront. Players convert the virtual coins within the game to durable virtual goods such as weapons, armor or other accessories to enhance their game-playing experience. The durable virtual goods remain in the game for as long as the player continues to play. The Company believes this represents an implied service obligation, and accordingly, recognizes the revenues from the purchase of these durable virtual goods over the estimated average playing period of paying users. Based on the Company’s analysis, the estimated weighted average useful life of a paying user is approximately three months, and this estimate has been consistent since the Company’s initial analysis. If a new game is launched and only a limited period of paying player data is available, then the Company also considers other qualitative factors, such as the playing patterns for paying users for other games with similar characteristics. While the Company believes its estimates to be reasonable based on available game player information, it may revise such estimates in the future as the games’ operation periods change. Any adjustments arising from changes in the estimates of the lives of these virtual goods would be applied prospectively on the basis that such changes are caused by new information indicating a change in game player behavior patterns. Any changes in the Company’s estimates of useful lives of these virtual goods may result in revenues being recognized on a basis different from prior periods’ and may cause its operating results to fluctuate. | |||||||||||||
The Company also has relationships with certain advertising service providers for advertisements within smartphone games and revenue from these advertising providers is generated through impressions, clickthroughs, banner ads and offers. Revenue is recognized as advertisements are delivered and reported to the Company, an executed contract exists, the price is fixed or determinable and collectability has been reasonably assured. Delivery generally occurs when the advertisement has been displayed or the offer has been completed by the user. The fee received for certain offer advertisements that result in the user receiving virtual currency for redemption within a game are deferred and recognized over the average playing period of paying users. | |||||||||||||
Feature Phone Revenue | |||||||||||||
The Company’s feature phone revenues are derived primarily by licensing software products in the form of mobile games. The Company distributes its products primarily through mobile telecommunications service providers (“carriers”), which market the games to end users. License fees are usually billed by the carrier upon download of the game by the end user and are generally billed monthly. Revenues are recognized from the Company’s games when persuasive evidence of an arrangement exists, the game has been delivered, the fee is fixed or determinable, and the collection of the resulting receivable is probable. Management considers a signed license agreement to be evidence of an arrangement with a carrier and a “clickwrap” agreement to be evidence of an arrangement with an end user. For these licenses, the Company defines delivery as the download of the game by the end user. | |||||||||||||
Other Estimates and Judgments | |||||||||||||
The Company estimates revenues from carriers and Digital Storefronts in the current period when reasonable estimates of these amounts can be made. Certain carriers and Digital Storefronts provide reliable interim preliminary reporting and others report sales data within a reasonable time frame following the end of each month, both of which allow the Company to make reasonable estimates of revenues and therefore to recognize revenues during the reporting period. Determination of the appropriate amount of revenue recognized involves judgments and estimates that the Company believes are reasonable, but it is possible that actual results may differ from the Company’s estimates. When the Company receives the final reports, to the extent not received within a reasonable time frame following the end of each month, the Company records any differences between estimated revenues and actual revenues in the reporting period when the Company determines the actual amounts. Historically, the revenues on the final revenue report have not differed significantly from the reported revenues for the period. | |||||||||||||
Principal Agent Considerations | |||||||||||||
In accordance with ASC 605-45, Revenue Recognition: Principal Agent Considerations, the Company evaluates its carrier and Digital Storefront agreements in order to determine whether or not it is acting as the principal or as an agent when selling its games, which it considers in determining if revenue should be reported gross or net. The Company primarily uses Digital Storefronts for distributing its smartphone games, whereas carriers are used for distribution of the Company’s feature phone games. Key indicators that the Company evaluates to reach this determination include: | |||||||||||||
• | the terms and conditions of the Company’s contracts with the carriers and the Digital Storefronts; | ||||||||||||
• | the party responsible for billing and collecting fees from the end-users, including the resolution of billing disputes; | ||||||||||||
• | whether the Company is paid a fixed percentage of the arrangement’s consideration or a fixed fee for each game or transaction; | ||||||||||||
• | the party which sets the pricing with the end-user, has the credit risk and provides customer support; and | ||||||||||||
• | the party responsible for the fulfillment of the game and that determines the specifications of the game. | ||||||||||||
Based on the evaluation of the above indicators, the Company determined that it is generally acting as a principal and is the primary obligor to end-users for smartphone games distributed through digital storefronts and therefore recognizes revenue related to these arrangements on a gross basis. For feature phone games, the Company concluded that the carriers are the primary obligor and therefore recognizes revenue for the amounts due from the carriers on a net basis. | |||||||||||||
Deferred Platform Commissions and Royalties | |||||||||||||
Digital Storefronts retain platform commissions and fees on each purchase made by the paying players through the Digital Storefront. The Company is also obligated to pay ongoing licensing fees in the form of royalties related to the games developed based on intellectual property licensed from third parties. Additionally, certain smartphone games sold through digital storefronts require the revenue to be deferred due to an implied obligation to the paying player to continue displaying the purchased virtual goods within the game over the estimated average playing period of paying players for the game. As revenues from sales to paying players through Digital Storefronts are deferred, the related direct and incremental platform commissions and fees as well as third party royalties are also deferred and reported in “Prepaid expenses and other” on the consolidated balance sheets. The deferred platform commissions and royalties are recognized in the consolidated statements of operations in “Cost of revenues” in the period in which the related sales are recognized as revenues. | |||||||||||||
Cash and Cash Equivalents | |||||||||||||
The Company considers all investments purchased with an original or remaining maturity of three months or less at the date of purchase to be cash equivalents. The Company deposits cash and cash equivalents with financial institutions that management believes are of high credit quality. Deposits held with financial institutions often exceed the amount of insurance on these deposits. | |||||||||||||
Restricted Cash | |||||||||||||
Restricted cash consists of deposits related to letters of credit to secure obligations under the Company’s operating lease agreements. | |||||||||||||
Concentration of Credit Risk | |||||||||||||
Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash, cash equivalents 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, generally, requires no 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. It reviews all other balances quarterly. The Company charges 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 in excess of 10% of the Company’s revenues: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Apple | 50.1 | % | 41.3 | % | 26.5 | % | |||||||
19.2 | 20.3 | — | |||||||||||
Tapjoy | — | 10.7 | 11.6 | ||||||||||
At December 31, 2013, Apple accounted for 46.3%, and Jirbo (dba AdColony) and Google each accounted for 11.1% of total accounts receivable. At December 31, 2012, Apple accounted for 44.3%, Kontagent, Inc. (successor-in-interest to Medium Entertainment, dba PlayHaven, with which Kontagent merged in December 2013) 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. | |||||||||||||
Fair Value | |||||||||||||
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 first two levels in the hierarchy are considered observable inputs and the last is considered unobservable. 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. Level 3 liabilities consist of acquisition-related non-current liabilities for contingent consideration (i.e., earnouts). Please refer to Note 4 for further details. | |||||||||||||
Prepaid or Guaranteed Licensor Royalties | |||||||||||||
The Company’s royalty expenses consist of fees that it pays to branded content owners for the use of their intellectual property, including trademarks and copyrights, in the development of the Company’s games. Royalty-based obligations are either paid in advance and capitalized on the balance sheet as prepaid royalties or accrued as incurred and subsequently paid. These royalty-based obligations are expensed to cost of revenues at the greater of the revenues derived from the relevant game multiplied by the applicable contractual rate or an effective royalty rate based on expected net product sales. Advanced license payments that are not recoupable against future royalties are capitalized and amortized over the lesser of the estimated life of the branded title or the term of the license agreement. | |||||||||||||
The Company’s contracts with some licensors include minimum guaranteed royalty payments, which are payable regardless of the ultimate volume of sales to end users. In accordance with ASC 460-10-15, Guarantees (“ASC 460”), the Company recorded a minimum guaranteed liability of $433 and zero as of December 31, 2013 and 2012, respectively. When no significant performance remains with the licensor, the Company initially records each of these guarantees as an asset and as a liability at the contractual amount. The Company believes that the contractual amount represents the fair value of the liability. When significant performance remains with the licensor, the Company records royalty payments as an asset when actually paid and as a liability when incurred, rather than upon execution of the contract. The Company classifies minimum royalty payment obligations as current liabilities to the extent they are contractually due within the next twelve months. | |||||||||||||
Each quarter, the Company evaluates the realization of its royalties as well as any unrecognized guarantees not yet paid to determine amounts that it deems unlikely to be realized through product sales. The Company uses estimates of revenues, cash flows and net margins to evaluate the future realization of prepaid royalties and guarantees. This evaluation considers multiple factors, including the term of the agreement, forecasted demand, game life cycle status, game development plans, and current and anticipated sales levels, as well as other qualitative factors such as the success of similar games and similar genres on mobile devices for the Company and its competitors and/or other game platforms (e.g., consoles, personal computers and Internet) utilizing the intellectual property and whether there are any future planned theatrical releases or television series based on the intellectual property. To the extent that this evaluation indicates that the remaining prepaid and guaranteed royalty payments are not recoverable, the Company records an impairment charge to cost of revenues in the period that impairment is indicated. The Company recorded impairment charges to cost of revenues of $435, zero, and $531 during the years ended December 31, 2013, 2012, and 2011, respectively. | |||||||||||||
Goodwill and Intangible Assets | |||||||||||||
In accordance with ASC 350, Intangibles-Goodwill and Other (“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. This impairment review involves a multiple-step process as follows: | |||||||||||||
Step — 0 The Company evaluates qualitative factors and overall financial performance to determine whether it is necessary to perform the first step of the two-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 two-step goodwill impairment test. | |||||||||||||
Step — 1 The Company compares the fair value of each of its reporting units to the carrying value including goodwill of that unit. For each reporting unit where the carrying value, including goodwill, exceeds the unit’s fair value, the Company moves on to step 2. If a unit’s fair value exceeds the carrying value, no further work is performed and no impairment charge is necessary. | |||||||||||||
Step — 2 The Company performs an allocation of the fair value of the reporting unit to its identifiable tangible and intangible assets (other than goodwill) and liabilities. This allows the Company to derive an implied fair value for the unit’s goodwill. The Company then compares the implied fair value of the reporting unit’s goodwill with the carrying value of the unit’s goodwill. If the carrying amount of the unit’s goodwill is greater than the implied fair value of its goodwill, an impairment charge would be recognized for the excess. | |||||||||||||
In 2013 and 2011, the Company did not record any goodwill impairment charges as the fair values of the reporting units exceeded their respective carrying values. In 2012, the Company concluded that a portion of the goodwill attributed to the APAC reporting unit was impaired and recorded a $3,613 impairment charge. | |||||||||||||
Purchased intangible assets with finite lives are amortized using the straight-line method over their useful lives ranging from one to nine years and are reviewed for impairment in accordance with ASC 360, Property, Plant and Equipment (“ASC 360”). | |||||||||||||
Long-Lived Assets | |||||||||||||
The Company evaluates its long-lived assets, including property and equipment and intangible assets with finite lives, for impairment whenever events or changes in circumstances indicate that the carrying value of these assets may not be recoverable in accordance with ASC 360. Factors considered important that could result in an impairment review include significant underperformance relative to expected historical or projected future operating results, significant changes in the manner of use of acquired assets, significant negative industry or economic trends, and a significant decline in the Company’s stock price for a sustained period of time. The Company recognizes impairment based on the difference between the fair value of the asset and its carrying value. Fair value is generally measured based on either quoted market prices, if available, or a discounted cash flow analysis. | |||||||||||||
Property and Equipment | |||||||||||||
The Company states property and equipment at cost. The Company computes depreciation or amortization using the straight-line method over the estimated useful lives of the respective assets or, in the case of leasehold improvements, the lease term of the respective assets, whichever is shorter. | |||||||||||||
The depreciation and amortization periods for the Company’s property and equipment are as follows: | |||||||||||||
Computer equipment | Three years | ||||||||||||
Computer software | Three years | ||||||||||||
Furniture and fixtures | Three years | ||||||||||||
Leasehold improvements | Shorter of the estimated useful life or remaining term of lease | ||||||||||||
Research and Development Costs | |||||||||||||
The Company charges costs related to research, design and development of products to research and development expense as incurred. The types of costs included in research and development expenses include salaries, contractor fees and allocated facilities costs. | |||||||||||||
Software Development Costs | |||||||||||||
The Company applies the principles of ASC 985-20, Software-Costs of Computer Software to Be Sold, Leased, or Otherwise Marketed (“ASC 985-20”). ASC 985-20 requires that software development costs incurred in conjunction with product development be charged to research and development expense until technological feasibility is established. Thereafter, until the product is released for sale, software development costs must be capitalized and reported at the lower of unamortized cost or net realizable value of the related product. The Company has adopted the “tested working model” approach to establishing technological feasibility for its games. Under this approach, the Company does not consider a game in development to have passed the technological feasibility milestone until the Company has completed a model of the game that contains essentially all the functionality and features of the final game and has tested the model to ensure that it works as expected. To date, the Company has not incurred significant costs between the establishment of technological feasibility and the release of a game for sale; thus, the Company has expensed all software development costs as incurred. The Company considers the following factors in determining whether costs can be capitalized: the uncertainty regarding a game’s revenue-generating potential and its historical practice of canceling games at any stage of the development process. | |||||||||||||
Internal Use Software | |||||||||||||
The Company recognizes internal use software development costs in accordance with ASC 350-40, Intangibles-Goodwill and Other-Internal Use Software (“ASC 350-40”). Thus, the Company capitalizes software development costs, including costs incurred to purchase third-party software, beginning when it determines certain factors are present including, among others, that technology exists to achieve the performance requirements and/or buy versus internal development decisions have been made. The Company capitalized certain internal use software costs totaling approximately $249, $1,598 and $1,787 during the years ended December 31, 2013, 2012, and 2011, respectively. The estimated useful life of costs capitalized is generally three years. During the years ended December 31, 2013, 2012 and 2011, the amortization of capitalized software costs totaled approximately $1,097, $1,014 and $507, respectively. Capitalized internal use software development costs are included in property and equipment, net. | |||||||||||||
Income Taxes | |||||||||||||
The Company accounts for income taxes in accordance with ASC 740, Income Taxes (“ASC 740”), which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in its financial statements or tax returns. Under ASC 740, the Company determines deferred tax assets and liabilities based on the temporary difference between the financial statement and tax bases of assets and liabilities using the enacted tax rates in effect for the year in which it expects the differences to reverse. The Company establishes valuation allowances when necessary to reduce deferred tax assets to the amount it expects to realize. | |||||||||||||
The Company accounts for uncertain tax positions in accordance with ASC 740, which requires companies to adjust their financial statements to reflect only those tax positions that are more-likely-than-not to be sustained. ASC 740 prescribes a comprehensive model for the financial statement recognition, measurement, presentation and disclosure of uncertain tax positions taken or expected to be taken in income tax returns. The Company’s policy is to recognize interest and penalties related to unrecognized tax benefits in income tax expense. | |||||||||||||
Restructuring | |||||||||||||
The Company accounts for costs associated with employee terminations and other exit activities in accordance with ASC 420, Exit or Disposal Cost Obligations (“ASC 420”). The Company records employee termination benefits as an operating expense when it communicates the benefit arrangement to the employee and it requires no significant future services, other than a minimum retention period, from the employee to earn the termination benefits. In addition, termination benefits related to international employees are recognized when the amount of such termination benefits becomes estimable and payment is probable. | |||||||||||||
Stock-Based Compensation | |||||||||||||
The Company applies the fair value provisions of ASC 718, Compensation-Stock Compensation (“ASC 718”). ASC 718 requires the recognition of compensation expense, using a fair-value based method, for costs related to all share-based payments including stock options and restricted stock units (“RSUs”). ASC 718 requires companies to estimate the fair value of stock-option awards on the grant date using an option pricing model. The fair value of stock options and stock purchase rights granted pursuant to the Company’s equity incentive plans and 2007 Employee Stock Purchase Plan (“ESPP”), respectively, is determined using the Black-Scholes valuation model. The determination of fair value is affected by the stock price, as well as assumptions regarding subjective and complex variables such as expected employee exercise behavior and expected stock price volatility over the expected term of the award. Generally, these assumptions are based on historical information and judgment is required to determine if historical trends may be indicators of future outcomes. Employee stock-based compensation expense is calculated based on awards ultimately expected to vest and is reduced for estimated forfeitures. Forfeitures are revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates and an adjustment to stock-based compensation expense will be recognized at that time. Changes to the assumptions used in the Black-Scholes option valuation calculation and the forfeiture rate, as well as future equity granted or assumed through acquisitions could significantly impact the compensation expense the Company recognizes. 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, and is reduced for estimated forfeitures. The compensation cost for all share-based payment awards is amortized on a straight-line basis over the requisite service period. | |||||||||||||
The Company has elected to use the “with and without” approach as described in determining the order in which tax attributes are utilized. As a result, the Company will only recognize a tax benefit from stock-based awards in additional paid-in capital if an incremental tax benefit is realized after all other tax attributes currently available to the Company have been utilized. In addition, the Company has elected to account for the indirect effects of stock-based awards on other tax attributes, such as the research tax credit, through its statement of operations. | |||||||||||||
The Company accounts for equity instruments issued to non-employees in accordance with the provisions of ASC 718 and ASC 505-50. | |||||||||||||
Advertising Expenses | |||||||||||||
The Company expenses the production costs of advertising, including direct response advertising, the first time the advertising takes place. Advertising expense was $18,308, $12,124 and $6,114 in the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||
Comprehensive Loss | |||||||||||||
Comprehensive loss consists of two components, net loss and other comprehensive income/(loss). Other comprehensive income/(loss) refers to revenues, expenses, gains and losses that under GAAP are recorded as an element of stockholders’ equity but are excluded from net loss. The Company’s other comprehensive income/(loss) included foreign currency translation adjustments from those subsidiaries not using the U.S. dollar as their functional currency, and a reclassification to net loss from the write-off of cumulative translation adjustment. | |||||||||||||
Foreign Currency Translation | |||||||||||||
In preparing its consolidated financial statements, the Company translated the financial statements of its foreign subsidiaries from their functional currencies, the local currency, into U.S. Dollars. This process resulted in unrealized exchange gains and losses, which are included as a component of accumulated other comprehensive loss within stockholders’ deficit. However, if the functional currency is deemed to be the U.S. Dollar, any gain or loss associated with the translation of these financial statements would be included within the Company’s consolidated statements of operations. | |||||||||||||
Cumulative foreign currency translation adjustments include any gain or loss associated with the translation of a subsidiary’s financial statements when the functional currency of a subsidiary is the local currency. If the Company disposes of any of its subsidiaries, any cumulative translation gains or losses would be realized and recorded within the Company’s consolidated statement of operations in the period during which the disposal occurs. If the Company determines that there has been a change in the functional currency of a subsidiary relative to the U.S. Dollar, any translation gains or losses arising after the date of change would be included within the Company’s consolidated statement of operations. | |||||||||||||
Business Combination | |||||||||||||
The Company applies the accounting standard related to business combinations, ASC 805, Business Combinations (“ASC 805’). The standard requires recognition of assets acquired, liabilities assumed, and contingent consideration at their fair value on the acquisition date with subsequent changes recognized in earnings; requires acquisition-related expenses and restructuring costs to be recognized separately from the business combination and expensed as incurred; requires in-process research and development to be capitalized at fair value as an indefinite-lived intangible asset until completion or abandonment; and requires that changes in accounting for deferred tax asset valuation allowances and acquired income tax uncertainties after the measurement period be recognized as a component of provision for taxes. | |||||||||||||
The Company accounts for acquisitions of entities or assets that include inputs and processes and have the ability to create outputs as business combinations. The purchase price of the acquisition is allocated to tangible assets, liabilities, and identifiable intangible assets acquired based on their estimated fair values. The excess of the purchase price over those fair values is recorded as goodwill. Acquisition-related expenses and restructuring costs are expensed as incurred. While the Company uses its best estimates and assumptions as a part of the purchase price allocation process to accurately value assets acquired and liabilities assumed at the business combination date, these estimates and assumptions are inherently uncertain and subject to refinement. As a result, during the preliminary purchase price allocation period, which may be up to one year from the business combination date, the Company may record adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill. After the preliminary purchase price allocation period, the Company records adjustments to assets acquired or liabilities assumed subsequent to the purchase price allocation period in its operating results in the period in which the adjustments were determined. | |||||||||||||
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 year ended December 31, 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 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 consolidated financial statements once adopted. |
Net_Loss_Per_Share
Net Loss Per Share | 12 Months Ended | ||||||||||||
Dec. 31, 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 by the Company. | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Net loss | $ | (19,909 | ) | $ | (20,459 | ) | $ | (21,101 | ) | ||||
Basic and diluted shares: | |||||||||||||
Weighted average common shares outstanding | 71,543 | 64,932 | 57,834 | ||||||||||
Weighted average unvested common shares subject to restrictions | (90 | ) | (614 | ) | (316 | ) | |||||||
Weighted average shares used to compute basic and diluted net loss per share | 71,453 | 64,318 | 57,518 | ||||||||||
Net loss per share — basic and diluted | $ | (0.28 | ) | $ | (0.32 | ) | $ | (0.37 | ) | ||||
The following weighted average outstanding options, RSUs, and warrants to purchase common stock and unvested shares of common stock subject to restrictions 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: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Warrants to purchase common stock | 3,310 | 4,187 | 5,344 | ||||||||||
Unvested common shares subject to restrictions | 90 | 614 | 316 | ||||||||||
Options to purchase common stock | 10,646 | 10,321 | 8,112 | ||||||||||
RSUs | 936 | — | — | ||||||||||
14,982 | 15,122 | 13,772 | |||||||||||
Business_Combinations
Business Combinations | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Business Combinations | ' | ||||
NOTE 3 — BUSINESS COMBINATIONS | |||||
Acquisition of 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: | |||||
Assets acquired: | |||||
Cash | $ | 913 | |||
Accounts receivable, net | 1,695 | ||||
Property and equipment | 485 | ||||
Intangible assets: | |||||
Customer contracts 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. | |||||
Acquisition of Griptonite, Inc. | |||||
On August 2, 2011, the Company completed the acquisition of Griptonite, Inc., a Washington corporation (“Griptonite”) and formerly a wholly owned subsidiary of Foundation 9 Entertainment, Inc., a Delaware corporation (“Foundation 9”), pursuant to an Agreement and Plan of Merger, as amended on August 15, 2011 (the “Merger Agreement”), by and among the Company, Granite Acquisition Corp., a Washington corporation and wholly owned subsidiary of the Company (“Sub”), Foundation 9 and Griptonite. Pursuant to the terms of the Merger Agreement, Sub merged with and into Griptonite in a statutory reverse triangular merger (the “Merger”), with Griptonite surviving the Merger as a wholly owned subsidiary of the Company. Griptonite, which is based in Bellevue, Washington, is a developer of games for advanced platforms, including handheld devices. The Company acquired Griptonite to increase its studio development capacity and augment its existing development efforts to accelerate the introduction of new titles on smartphones and tablets. | |||||
In connection with the Merger, the Company issued to Foundation 9, as Griptonite’s sole shareholder, in exchange for all of the issued and outstanding shares of Griptonite capital stock, a total of 6,106 shares of the Company’s common stock, for consideration of approximately $28,088, using the $4.60 closing price of the Company’s common stock on The NASDAQ Global Market on August 2, 2011. 600 of the initial shares that were held in escrow to satisfy potential indemnification claims under the Merger Agreement were released on November 2, 2012. In addition, the Company may be required to issue additional shares (not to exceed 5,302 shares) or in specified circumstances pay additional cash (i) in satisfaction of indemnification obligations in the case of breaches of the Company’s and Sub’s representations, warranties and covenants in the Merger Agreement or (ii) pursuant to potential working capital adjustments. | |||||
The allocation of the Griptonite purchase price was based upon valuations for certain assets acquired and liabilities assumed. The following table summarizes the fair values of assets acquired and liabilities assumed at the date of acquisition: | |||||
Assets acquired: | |||||
Cash | $ | 10,300 | |||
Accounts receivable | 1,558 | ||||
Prepaid and other current assets | 1,028 | ||||
Property and equipment | 796 | ||||
Other long term assets | 33 | ||||
Intangible assets: | |||||
Non-compete agreements | 3,200 | ||||
Developed Technology | 2,500 | ||||
Goodwill | 12,670 | ||||
Total assets acquired | 32,085 | ||||
Liabilities assumed: | |||||
Accounts payable and other accrued liabilities | (1,226 | ) | |||
Deferred tax liability and other long-term liabilities | (2,771 | ) | |||
Total liabilities | (3,997 | ) | |||
Net acquired assets | $ | 28,088 | |||
Acquisition-related intangibles included in the above table are finite-lived and are being amortized on a straight-line basis over their estimated lives ranging from three months to two years which approximates the pattern in which the economic benefits of the intangible assets are realized. | |||||
The Company allocated the residual value of $12,670 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, goodwill will not be amortized but will be tested for impairment at least annually. Goodwill created as a result of the Griptonite acquisition is not deductible for tax purposes. | |||||
Assumption of Griptonite Lease | |||||
In connection with the Merger, the Company assumed lease obligations related to the premises located in Kirkland, Washington (the “Prior Griptonite Lease”). The Griptonite Lease covered approximately 54 rentable square feet and terminated on September 30, 2013. As part of the 2011 purchase accounting adjustments for Griptonite, the Company eliminated the existing deferred rent balance and recorded a fair value adjustment to reflect the current market value of the unfavorable operating lease commitment. The fair value of the unfavorable operating lease obligation was zero and $477, respectively, as of December 31, 2013 and 2012. This lease terminated in September 2013 and the Company entered into a new lease in Bellevue, Washington, which has been included in the future lease obligations disclosed in Note 7. | |||||
Acquisition of Blammo Games Inc. | |||||
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 freemium games located in Toronto, Canada. | |||||
Pursuant to the terms of the Share Purchase Agreement, the Company purchased from the Sellers all of the issued and outstanding share capital of Blammo (the “Share Purchase”), and in exchange for such Blammo share capital, the Company (i) issued to the Sellers, in the aggregate, 1,000 shares of the Company’s common stock (the “Initial Shares”), which resulted in initial consideration of $5,070 using the $5.07 closing price of the Company’s common stock on The NASDAQ Global Market on August 1, 2011, and (ii) agreed to issue to the Sellers, in the aggregate, up to an additional 3,313 shares of the Company’s common stock (the “Additional Shares”) if Blammo achieves certain Net Revenue targets, as more fully described in Note 4.” 100 of the Initial Shares that were held in escrow to satisfy potential indemnification claims under the Share Purchase Agreement were released on August 1, 2012. | |||||
The allocation of the Blammo purchase price was based upon valuations for certain assets acquired and liabilities assumed. The following table summarizes the fair values of assets acquired and liabilities assumed at the date of acquisition: | |||||
Assets acquired: | |||||
Cash and other assets | $ | 69 | |||
Intangible assets: | |||||
Non-compete agreements | 1,400 | ||||
In-process research and development | 300 | ||||
Goodwill | 4,309 | ||||
Total assets acquired | 6,078 | ||||
Liabilities assumed: | |||||
Accounts payable and other accrued liabilities | (287 | ) | |||
Other long-term liabilities | (721 | ) | |||
Total liabilities | (1,008 | ) | |||
Net acquired assets | $ | 5,070 | |||
Acquisition-related intangibles included in the above table are finite-lived and are being amortized on a straight-line basis over their estimated lives ranging from one to four years which approximates the pattern in which the economic benefits of the intangible assets are realized. | |||||
In connection with the acquisition of Blammo, in 2011, the Company recorded net deferred tax liabilities of $416, 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 $4,309 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, goodwill will not be amortized but will be tested for impairment at least annually. Goodwill created as a result of the Blammo 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, Griptonite and Blammo. 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. | |||||
Intangible assets acquired consist of non-compete agreements, customer contracts, acquired technology and in-process research and development (“IPR&D”). | |||||
The Blammo and Griptonite non-compete agreements were valued using the loss of income method, which is an income approach. Two separate cash flows were prepared, one to model the cash flow with the non-compete agreements in place, and one without the agreements. The difference between the debt-free cash flow of the two models was then discounted to present value using the discount rate of 25%. | |||||
In the valuation of Griptonite’s developed technology, the replacement cost method of the cost approach was used. Although the Company does not expect to use the acquired technology, it was deemed likely that a market participant would perceive value in acquiring and integrating these technologies into their own platforms. The value was determined based on the engineering costs to replace or recreate the developed technology. Key assumptions used included, work hours to recreate, costs per month and remaining total and economic life. | |||||
As of the valuation date, Blammo was in the process of developing one game, which was launched in December 2011. The Company estimated that the majority of the revenues associated with this game would be generated in 2012 and 2013. The fair value was calculated using the multi-period excess earning method of the income approach, and significant assumptions used included the discount rate, forecasted revenues, forecasted cost of goods sold and forecasted operating expense. The Company capitalized approximately $300 of IPR&D costs associated with the above game at the acquisition date. These costs were reclassified to “Titles, Content and Technology” in the fourth quarter of 2011 upon launch of the game and amortized over the estimated life of the game of two years. | |||||
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 will be recognized on a straight-line basis over 24 months. | |||||
Pro Forma Financial Information (unaudited) | |||||
The results of operations for GameSpy, Griptonite and Blammo and the estimated fair market values of the assets acquired and liabilities assumed have been included in the Company’s consolidated financial statements since the date of each acquisition. During 2011, Griptonite contributed approximately $825 to the Company’s net revenue and increased net losses by $9,511. The results of the acquisitions resulted in an increase to the Company’s net loss due to lower revenue generated from the work-for-hire contracts that were substantially completed during 2011 and due to the amortization of acquired identified intangible assets. | |||||
The unaudited pro forma financial information in the table below summarizes the combined results of the Company’s operations and those of Griptonite for the periods shown as if the acquisition of Griptonite had occurred on January 1, 2011. The pro forma financial information includes the business combination accounting effects of the acquisition, including amortization charges from acquired intangible assets. The pro forma financial information presented below is for informational purposes only, and is subject to a number of estimates, assumptions and other uncertainties. In addition, the pro forma financial information presented below does not include the unaudited financial information of Blammo and GameSpy, since these were not material. | |||||
Year Ended | |||||
December 31, | |||||
2011 | |||||
Total pro forma revenues | $ | 84,704 | |||
Pro forma net loss | (21,256 | ) | |||
Pro forma net loss per share — basic and diluted | (0.35 | ) | |||
All of the goodwill related to the GameSpy, Blammo and Griptonite transactions was assigned to the Company’s Americas reporting unit. See Note 6 for additional information related to the changes in the carrying amount of goodwill. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Fair Value Measurements | ' | ||||||||
NOTE 4 — FAIR VALUE MEASUREMENTS | |||||||||
Fair Value Measurements | |||||||||
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 December 31, 2013 and December 31, 2012, the Company had $28,496 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 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 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 $68 and $412 as of December 31, 2013 and December 31, 2012, respectively. During the years ended December 31, 2013 and 2012, the Company recorded fair value expense adjustments of $7 and $167, 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 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 December 31, 2013, the Company recorded a contingent consideration liability of $427, of which $329 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 year ended December 31, 2013 included a discount rate of 35.0%, volatility of 35.0%, risk-free interest rates of between 0.07% and 0.19% and probability-adjusted revenue levels. Key assumptions for the year ended December 31, 2012 included a discount rate of 35.0%, volatility of 38.0%, risk-free rates of between 0.05% and 0.28% 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 | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Balance Sheet Components | ' | ||||||||||||||||
NOTE 5 — BALANCE SHEET COMPONENTS | |||||||||||||||||
Accounts Receivable | |||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Accounts receivable | $ | 18,764 | $ | 12,313 | |||||||||||||
Less: Allowance for doubtful accounts | (459 | ) | (432 | ) | |||||||||||||
$ | 18,305 | $ | 11,881 | ||||||||||||||
Accounts receivable include amounts billed and unbilled as of the respective balance sheet dates, but net of platform commissions to our digital storefronts. | |||||||||||||||||
The movement in the Company’s allowance for doubtful accounts is as follows: | |||||||||||||||||
Balance at | Balance at | ||||||||||||||||
Beginning of | End of | ||||||||||||||||
Description | Year | Additions | Deductions | Year | |||||||||||||
Year ended December 31, 2013 | $ | 432 | $ | 51 | $ | 24 | $ | 459 | |||||||||
Year ended December 31, 2012 | $ | 800 | $ | 202 | 570 | $ | 432 | ||||||||||
Year ended December 31, 2011 | $ | 504 | $ | 390 | 94 | $ | 800 | ||||||||||
The Company had no significant write-offs or recoveries during the years ended December 31, 2013, 2012, and 2011. | |||||||||||||||||
Prepaid expenses and other | |||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Deferred platform commission fees | 4,516 | 2,680 | |||||||||||||||
Prepaid royalties | 740 | — | |||||||||||||||
Prepaids and other | 2,407 | 2,487 | |||||||||||||||
$ | 7,663 | 5,167 | |||||||||||||||
Property and Equipment | |||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Computer equipment | $ | 6,134 | $ | 6,255 | |||||||||||||
Furniture and fixtures | 862 | 566 | |||||||||||||||
Software | 6,290 | 6,304 | |||||||||||||||
Leasehold improvements | 2,768 | 2,227 | |||||||||||||||
16,054 | 15,352 | ||||||||||||||||
Less: Accumulated depreciation and amortization | (10,958 | ) | (10,326 | ) | |||||||||||||
$ | 5,096 | $ | 5,026 | ||||||||||||||
Depreciation and amortization for the years ended December 31, 2013, 2012 and 2011 were $2,707, $2,368 and $1,846, respectively. | |||||||||||||||||
Other Long-Term Liabilities | |||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Uncertain tax position obligations | $ | 890 | $ | 3,859 | |||||||||||||
Deferred income tax liability | 122 | 647 | |||||||||||||||
Contingent earnout liability | 98 | 657 | |||||||||||||||
Deferred rent and other | 1,247 | 1,027 | |||||||||||||||
$ | 2,357 | $ | 6,190 | ||||||||||||||
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets | ' | ||||||||||||||||||||||||||||||||
NOTE 6 — GOODWILL AND INTANGIBLE ASSETS | |||||||||||||||||||||||||||||||||
Intangible Assets | |||||||||||||||||||||||||||||||||
The Company’s intangible assets were acquired primarily 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 2012, as well as in connection with the purchase of the Deer Hunter trademark and brand assets from Atari, Inc. (“Atari”) in 2012. The carrying amounts and accumulated amortization expense of the acquired intangible assets, including the impact of foreign currency exchange translation, at December 31, 2013 and December 31, 2012 were as follows: | |||||||||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||||||||||||||||
Carrying | Amortization | Carrying | Carrying | Amortization | Carrying | ||||||||||||||||||||||||||||
Value | Expense | Value | Value | Expense | Value | ||||||||||||||||||||||||||||
(Including | (Including | (Including | (Including | (Including | (Including | ||||||||||||||||||||||||||||
Estimated | Impact of | Impact of | Impact of | Impact of | Impact of | Impact of | |||||||||||||||||||||||||||
Useful | Foreign | Foreign | Foreign | Foreign | Foreign | Foreign | |||||||||||||||||||||||||||
Life | Exchange) | Exchange) | Exchange) | Exchange) | Exchange) | Exchange) | |||||||||||||||||||||||||||
Intangible assets amortized to cost of revenues: | |||||||||||||||||||||||||||||||||
Titles, content and technology | 2 yrs | $ | 12,851 | (12,165 | ) | $ | 686 | $ | 12,781 | $ | (11,518 | ) | $ | 1,263 | |||||||||||||||||||
Catalogs | 1 yr | 1,283 | (1,283 | ) | — | 1,257 | (1,257 | ) | — | ||||||||||||||||||||||||
ProvisionX Technology | 6 yrs | 211 | (211 | ) | — | 207 | (207 | ) | — | ||||||||||||||||||||||||
Carrier contract and related relationships | 5 yrs | 19,940 | (19,645 | ) | 295 | 19,585 | (16,421 | ) | 3,164 | ||||||||||||||||||||||||
Licensed content | 5 yrs | 3,040 | (3,040 | ) | — | 2,952 | (2,952 | ) | — | ||||||||||||||||||||||||
Service provider license | 9 yrs | 482 | (324 | ) | 158 | 467 | (262 | ) | 205 | ||||||||||||||||||||||||
Trademarks | 7 yrs | 5,230 | (1,480 | ) | 3,750 | 5,225 | (760 | ) | 4,465 | ||||||||||||||||||||||||
43,037 | (38,148 | ) | 4,889 | 42,474 | (33,377 | ) | 9,097 | ||||||||||||||||||||||||||
Other intangible assets amortized to operating expenses: | |||||||||||||||||||||||||||||||||
Emux Technology | 6 yrs | 1,368 | (1,368 | ) | — | 1,341 | (1,341 | ) | — | ||||||||||||||||||||||||
Noncompete agreements | 4 yrs | 5,452 | (4,742 | ) | 710 | 5,187 | (3,395 | ) | 1,792 | ||||||||||||||||||||||||
6,820 | (6,110 | ) | 710 | 6,528 | (4,736 | ) | 1,792 | ||||||||||||||||||||||||||
Total intangibles assets | $ | 49,857 | $ | (44,258 | ) | $ | 5,599 | $ | 49,002 | $ | (38,113 | ) | $ | 10,889 | |||||||||||||||||||
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. The Company acquired approximately $7,400 of intangible assets as part of the Griptonite and Blammo acquisitions in the third quarter of 2011, which includes approximately $300 of Blammo IPR&D that was reclassified as “Titles, Content and Technology” in the fourth quarter of 2011; see Note 3 for further details. | |||||||||||||||||||||||||||||||||
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 years ended December 31, 2013, 2012 and 2011, the Company recorded amortization expense in the amounts of $4,238, $3,783 and $5,447, respectively, in cost of revenues. During the years ended December 31, 2013, 2012 and 2011, the Company recorded amortization expense in the amounts of $1,336, $1,980 and $825, respectively, in operating expenses. The Company recorded no impairment charges during the years ended December 31, 2013, 2012 and 2011. | |||||||||||||||||||||||||||||||||
As of December 31, 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 | ||||||||||||||||||||||||||||||
2014 | $ | 1,496 | $ | 508 | $ | 2,004 | |||||||||||||||||||||||||||
2015 | 1,021 | 202 | 1,223 | ||||||||||||||||||||||||||||||
2016 | 766 | — | 766 | ||||||||||||||||||||||||||||||
2017 | 714 | — | 714 | ||||||||||||||||||||||||||||||
2018 and thereafter | 892 | — | 892 | ||||||||||||||||||||||||||||||
$ | 4,889 | $ | 710 | $ | 5,599 | ||||||||||||||||||||||||||||
Goodwill | |||||||||||||||||||||||||||||||||
The Company has goodwill attributable to its MIG, GameSpy, Blammo and Griptonite acquisitions as of December 31, 2013. The Company attributed all of the goodwill resulting from the MIG acquisition to its Asia and Pacific (“APAC”) reporting unit. The Company acquired $17,044 and $1,031 of goodwill during 2011 and 2012 respectively as part of the GameSpy, Blammo and Griptonite acquisitions, which was fully assigned to its Americas reporting unit; see Note 3 for further details. 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 in its development efforts for its games-as-a-service technology platform, and these synergies are reflected in the value of goodwill recognized. | |||||||||||||||||||||||||||||||||
Goodwill by geographic region is as follows: | |||||||||||||||||||||||||||||||||
December 31, 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 | — | — | 45 | 45 | — | — | 31 | 31 | |||||||||||||||||||||||||
Impairment Losses | — | — | — | — | — | — | (3,613 | ) | (3,613 | ) | |||||||||||||||||||||||
Balance as of period ended: | 18,075 | — | 1,410 | 19,485 | 18,075 | — | 1,365 | 19,440 | |||||||||||||||||||||||||
Goodwill | 42,946 | 25,354 | 24,296 | 92,596 | 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 | $ | — | $ | 1,410 | $ | 19,485 | $ | 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 December 31, 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. In 2012, the Company concluded that a portion of the goodwill attributed to the APAC reporting unit was impaired and recorded a $3,613 impairment charge. In 2011, the Company did not record any goodwill impairment charges as the fair values of the reporting units exceeded their respective carrying values. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||
Dec. 31, 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 years ended December 31, 2013, 2012 and 2011 was $3,380, $2,704 and $2,237, 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 $1,131 and $632 at December 31, 2013 and 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 consolidated balance sheet as of December 31, 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 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 consolidated balance sheet as December 31, 2013. In addition, the Company has provided the landlord with a guarantee of lease to guarantee the obligations under the new Griptonite lease. | |||||
At December 31, 2013, future minimum lease payments under non-cancelable operating leases were as follows: | |||||
Minimum | |||||
Operating | |||||
Lease | |||||
Period Ending December 31, | Payments | ||||
2014 | $ | 3,915 | |||
2015 | 4,032 | ||||
2016 | 3,422 | ||||
2017 | 2,668 | ||||
2018 | 920 | ||||
2019 and thereafter | 982 | ||||
$ | 15,939 | ||||
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 December 31, 2013 were $698. | |||||
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 December 31, 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 December 31, 2013, unrecognized tax benefits and potential interest and penalties are classified within “Other long-term liabilities” on the Company’s consolidated balance sheets. As of December 31, 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 Arrangements | |||||
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 December 31, 2013 or 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 and viruses, worms and other malicious software. 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 indemnification provisions is generally unlimited. The Company has never 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 December 31, 2013 or 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 sought 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. In December 2013, without admitting infringement or liability, the Company entered into a patent sub-license agreement and a settlement agreement with Lodsys to settle the dispute for an immaterial amount. In January 2014 the Court dismissed the complaint against the Company with prejudice. | |||||
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 | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Stockholders' Equity | ' | ||||||||||||
NOTE 8 — STOCKHOLDERS’ EQUITY | |||||||||||||
Common Stock | |||||||||||||
At December 31, 2013, the Company was authorized to issue 250,000 shares of common stock. As of December 31, 2013, the Company had reserved 23,100 shares for future issuance under its stock plans and outstanding warrants. | |||||||||||||
Preferred Stock | |||||||||||||
At December 31, 2013, the Company was authorized to issue 5,000 shares of preferred stock. | |||||||||||||
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. | |||||||||||||
On August 2, 2011, the Company issued an aggregate of 6,106 shares of its common stock to Foundation 9 in connection with the Company’s acquisition of Griptonite. | |||||||||||||
On August 1, 2011, the Company issued an aggregate of 1,000 shares of its common stock to the Sellers in connection with the Company’s acquisition of Blammo. | |||||||||||||
See Note 3 – Business Combinations – for more information about these acquisitions. | |||||||||||||
Shares Issues 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 consolidated balance sheet as of December 31, 2013. | |||||||||||||
Public Offerings | |||||||||||||
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 net cash proceeds of approximately $13,985 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. | |||||||||||||
In January 2011, the Company sold in an underwritten public offering an aggregate of 8,415 shares of its common stock at a public offering price of $2.05 per share for net proceeds of approximately $15,661 after underwriting discounts and commissions and offering expenses. The underwriters of this offering were Roth Capital Partners, LLC, Craig-Hallum Capital Group LLC, Merriman Capital, Inc. and Northland Capital Markets. | |||||||||||||
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 vested shares of the Warrant on the grant date using the Black-Scholes option valuation model and the weighted average assumptions. Key assumptions for the year ended December 31, 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 year ended December 31, 2013, 2013, the Company recorded $427 of non-cash warrant related expense in cost of revenues for warrant shares immediately vested upon signing of the agreement, as such vesting was not tied to any game release nor to any specific intellectual property license. | |||||||||||||
During the years ended December 31, 2013, 2012, and 2011, respectively, investors exercised warrants to purchase 2,886, 413, and 2,475 shares of the Company’s common stock, and the Company received gross proceeds of $4,329, $619, and $3,711 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 at December 31, 2013 were as follows: | |||||||||||||
Number | |||||||||||||
Exercise | of Shares | ||||||||||||
Price | Outstanding | ||||||||||||
Term | per | Under | |||||||||||
Date of Issuance | (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 | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Stock Option and Other Benefit Plans | ' | ||||||||||||||||||||
NOTE 9 — STOCK OPTION AND OTHER BENEFIT PLANS | |||||||||||||||||||||
2007 Equity Incentive Plan | |||||||||||||||||||||
In 2007, the Company’s Board of Directors adopted, and the Company’s stockholders approved, the 2007 Equity Incentive Plan (the “2007 Plan”). The 2007 Plan permits the Company to grant stock options, RSUs, 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. | |||||||||||||||||||||
The Company may grant options under the 2007 Plan at prices no less than 85% of the estimated fair value of the shares on the date of grant as determined by its Board of Directors, provided, however, that (i) the exercise price of an incentive stock option (“ISO”) or non-qualified stock options (“NSO”) may not be less than 100% or 85%, respectively, of the estimated fair value of the underlying shares of common stock on the grant date, and (ii) the exercise price of an ISO or NSO granted to a 10% stockholder may not be less than 110% of the estimated fair value of the shares on the grant date. The fair value of the Company’s common stock is determined by the last sale price of such stock on the NASDAQ Global Market on the date of determination. The stock options granted to employees generally vest with respect to 25% of the underlying shares one year from the vesting commencement date and with respect to an additional 1/48 of the underlying shares per month thereafter. Stock options granted during 2007 before October 25, 2007 have a contractual term of ten years and stock options granted on or after October 25, 2007 have a contractual term of six years. | |||||||||||||||||||||
As of December 31, 2013, 4,494 shares were available for future grants under the Amended 2007 Plan. | |||||||||||||||||||||
2007 Employee Stock Purchase Plan | |||||||||||||||||||||
In 2007, the Company’s Board of Directors adopted and the Company’s stockholders approved, the 2007 Employee Stock Purchase Plan (the “2007 Purchase Plan”). The Company initially reserved 667 shares of its common stock for issuance under the 2007 Purchase Plan. On each January 1 for the first eight calendar years after the first offering date, the aggregate number of shares of the Company’s common stock reserved for issuance under the 2007 Purchase Plan will be increased automatically by the number of shares equal to 1% of the total number of outstanding shares of the Company’s common stock on the immediately preceding December 31, provided that the Board of Directors may reduce the amount of the increase in any particular year and provided further that the aggregate number of shares issued over the term of this plan may not exceed 5,333. The 2007 Purchase Plan permits eligible employees, including employees of certain of the Company’s subsidiaries, to purchase common stock at a discount through payroll deductions during defined offering periods. The price at which the stock is purchased is equal to the lower of 85% of the fair market value of the common stock at the beginning of an offering period or after a purchase period ends. | |||||||||||||||||||||
In January 2009, the 2007 Purchase Plan was amended to provide that the Compensation Committee of the Company’s Board of Directors may fix a maximum number of shares that may be purchased in the aggregate by all participants during any single offering period (the “Maximum Offering Period Share Amount”). The Committee may raise or lower the Maximum Offering Period Share Amount. The Committee established the Maximum Offering Period Share Amount of 500 shares for the offering period that commenced on February 15, 2009 and ended on August 14, 2009, and a Maximum Offering Period Share Amount of 200 shares for each offering period thereafter. In October 2011, the Committee increased the Maximum Offering Period Share Amount for the offering period that started on August 22, 2011 and for each subsequent offering period to 300 shares. | |||||||||||||||||||||
As of December 31, 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 2013, the Compensation Committee of the Company’s Board amended the Inducement Plan to permit the award of RSUs under the plan. The Company may grant NSOs under the Inducement Plan at prices less than 100% of the fair value of the shares on the date of grant, at the discretion of its Board of Directors. The fair value of the Company’s common stock is determined by the last sale price of such stock on the NASDAQ Global Market on the date of determination. | |||||||||||||||||||||
As of December 31, 2013, 396 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 year ended December 31, 2013 is as follows: | |||||||||||||||||||||
Shares | |||||||||||||||||||||
Available | |||||||||||||||||||||
Balances at December 31, 2012 | 1,178 | ||||||||||||||||||||
Increase in authorized shares | 7,400 | ||||||||||||||||||||
Share-based awards granted (1) | (6,359 | ) | |||||||||||||||||||
Share-based awards canceled (2) | 2,671 | ||||||||||||||||||||
Balances at December 31, 2013 | 4,890 | ||||||||||||||||||||
-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. | ||||||||||||||||||||
RSU Activity | |||||||||||||||||||||
A summary of the Company’s RSU activity for the year ended December 31, 2013 is as follows: | |||||||||||||||||||||
Weighted | |||||||||||||||||||||
Number of | Average | ||||||||||||||||||||
Units | Grant Date | ||||||||||||||||||||
Outstanding | Fair Value | ||||||||||||||||||||
Awarded and unvested, December 31, 2012 | — | $ | — | ||||||||||||||||||
Granted | 2,747 | 2.9 | |||||||||||||||||||
Vested | — | — | |||||||||||||||||||
Forfeited | (169 | ) | 2.74 | ||||||||||||||||||
Awarded and unvested, December 31, 2013 | 2,578 | $ | 2.91 | ||||||||||||||||||
Restricted stock units expected to vest, December 31, 2013 | 1,919 | ||||||||||||||||||||
Stock Option Activity | |||||||||||||||||||||
The following table summarizes the Company’s stock option activity: | |||||||||||||||||||||
Options Outstanding | |||||||||||||||||||||
Weighted | Weighted | ||||||||||||||||||||
Number | Average | Average | Aggregate | ||||||||||||||||||
of | Exercise | Contractual | Intrinsic | ||||||||||||||||||
Shares | Price | Term (Years) | Value | ||||||||||||||||||
Balances at December 31, 2010 | 6,928 | 2.02 | |||||||||||||||||||
Options granted | 4,925 | 3.66 | |||||||||||||||||||
Options canceled | (1,250 | ) | 2.5 | ||||||||||||||||||
Options exercised | (859 | ) | 1.9 | ||||||||||||||||||
Balances at December 31, 2011 | 9,744 | 2.8 | |||||||||||||||||||
Options granted | 3,399 | 3.84 | |||||||||||||||||||
Options canceled | (1,416 | ) | 3.89 | ||||||||||||||||||
Options exercised | (806 | ) | 1.68 | ||||||||||||||||||
Balances at December 31, 2012 | 10,921 | 3.07 | |||||||||||||||||||
Options granted | 2,937 | 2.7 | |||||||||||||||||||
Options canceled | (2,502 | ) | 3.65 | ||||||||||||||||||
Options exercised | (957 | ) | 1.35 | ||||||||||||||||||
Balances at December 31, 2013 | 10,399 | $ | 2.98 | 3.8 | $ | 11,928 | |||||||||||||||
Options vested and expected to vest at December 31, 2013 | 9,554 | $ | 2.98 | 3.69 | $ | 11,162 | |||||||||||||||
Options exercisable at December 31, 2013 | 5,636 | $ | 2.96 | 2.98 | $ | 7,457 | |||||||||||||||
At December 31, 2013, the options outstanding and currently exercisable by exercise price were as follows: | |||||||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||||||
Weighted | |||||||||||||||||||||
Average | |||||||||||||||||||||
Remaining | Weighted | Weighted | |||||||||||||||||||
Range of | Contractual | Average | Average | ||||||||||||||||||
Exercise | Number | Life | Exercise | Number | Exercise | ||||||||||||||||
Prices | Outstanding | (in Years) | Price | Exercisable | Price | ||||||||||||||||
$0.42 - $ 1.21 | 1,688 | 1.95 | $ | 1.13 | 1,612 | $ | 1.12 | ||||||||||||||
$1.30 - $ 2.03 | 1,055 | 2.79 | 1.68 | 858 | 1.68 | ||||||||||||||||
$2.26 - $ 2.74 | 1,363 | 5.29 | 2.49 | 185 | 2.38 | ||||||||||||||||
$2.83 - $ 2.90 | 1,260 | 4.11 | 2.89 | 560 | 2.9 | ||||||||||||||||
$2.91 - $ 2.91 | 1,121 | 5.67 | 2.91 | 13 | 2.91 | ||||||||||||||||
$2.98 - $ 3.39 | 1,043 | 4.6 | 3.29 | 350 | 3.29 | ||||||||||||||||
$3.47 - $ 4.30 | 1,459 | 3.46 | 3.99 | 881 | 3.94 | ||||||||||||||||
$4.35 - $ 5.34 | 1,247 | 3.39 | 4.79 | 1,014 | 4.81 | ||||||||||||||||
$5.70 - $ 11.66 | 156 | 3.01 | 11.06 | 156 | 11.06 | ||||||||||||||||
$11.88 - $ 11.88 | 7 | 3.3 | 11.88 | 7 | 11.88 | ||||||||||||||||
$0.42 - $ 11.88 | 10,399 | 3.8 | $ | 2.98 | 5,636 | $ | 2.96 | ||||||||||||||
The Company has computed the aggregate intrinsic value amounts disclosed in the above table based on the difference between the original exercise price of the options and the fair value of the Company’s common stock of $3.88 per share at December 31, 2013. The total intrinsic value of awards exercised during the years ended December 31, 2013, 2012 and 2011 was $1,886, $2,114, and $2,065, respectively. | |||||||||||||||||||||
Stock-Based Compensation | |||||||||||||||||||||
The Company recognizes stock-based compensation expense in accordance with ASC 718, and has 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. | |||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Dividend yield | — | % | — | % | — | % | |||||||||||||||
Risk-free interest rate | 0.82 | % | 0.6 | % | 1.06 | % | |||||||||||||||
Expected term (years) | 4 | 4 | 4.02 | ||||||||||||||||||
Expected volatility | 52 | % | 65 | % | 65 | % | |||||||||||||||
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 year ended December 31, 2013, 2012 and 2011 was $1.10, $1.90, and $1.81 per share, respectively. | |||||||||||||||||||||
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. | |||||||||||||||||||||
The Company calculated employee stock-based compensation expense 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 consolidated statement of operations: | |||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Research and development | $ | 1,948 | $ | 3,491 | $ | 1,387 | |||||||||||||||
Sales and marketing | 303 | 386 | 351 | ||||||||||||||||||
General and administrative | 2,034 | 1,945 | 1,372 | ||||||||||||||||||
Total stock-based compensation expense | $ | 4,285 | $ | 5,822 | $ | 3,110 | |||||||||||||||
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 $368 and $2,242 as of December 31, 2013 and December 31, 2012, respectively; the amount as of December 31 2013 excludes the 2013 contingent consideration earnout that was classified into additional paid-in capital. See Note 4 for further details. During the years ended December 31, 2013 and 2012, the Company recorded $171 and $1,549 of stock-based compensation expense, respectively, related to this contingent consideration. | |||||||||||||||||||||
Consolidated net cash proceeds from option exercises were $1,295, $1,357 and $1,633 for the year ended December 31, 2013, 2012 and 2011, respectively. The Company realized no significant income tax benefit from stock option exercises during the year ended December 31, 2013, 2012 and 2011. 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. As permitted by ASC 718, the Company has deferred the recognition of its excess tax benefit from non-qualified stock option exercises. | |||||||||||||||||||||
As of December 31, 2013, the Company had $4,998 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 December 31, 2013, the Company had $6,047 of total unrecognized compensation expense related to stock options, net of estimated forfeitures. The unrecognized compensation expense excludes unvested Blammo stock-based contingent consideration expense, which will be recognized over a weighted average period of 2.63 years. | |||||||||||||||||||||
401(k) Defined Contribution Plan | |||||||||||||||||||||
The Company sponsors a 401(k) defined contribution plan covering all employees. The Company does not match the contributions made by its employees. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Income Taxes | ' | ||||||||||||||||||||||||
NOTE 10 — INCOME TAXES | |||||||||||||||||||||||||
The components of loss before income taxes by tax jurisdiction were as follows: | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
United States | $ | (21,820 | ) | $ | (6,745 | ) | $ | (25,159 | ) | ||||||||||||||||
Foreign | (932 | ) | (15,708 | ) | 4,672 | ||||||||||||||||||||
Loss before income taxes | $ | (22,752 | ) | $ | (22,453 | ) | $ | (20,487 | ) | ||||||||||||||||
The components of income tax provision were as follows: | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Current: | |||||||||||||||||||||||||
Federal | $ | — | $ | — | $ | — | |||||||||||||||||||
State | (4 | ) | (4 | ) | (2 | ) | |||||||||||||||||||
Foreign | 2,294 | 913 | (2,698 | ) | |||||||||||||||||||||
2,290 | 909 | (2,700 | ) | ||||||||||||||||||||||
Deferred: | |||||||||||||||||||||||||
Federal | — | 497 | 1,452 | ||||||||||||||||||||||
State | — | 64 | 211 | ||||||||||||||||||||||
Foreign | 553 | 524 | 423 | ||||||||||||||||||||||
553 | 1,085 | 2,086 | |||||||||||||||||||||||
Total: | |||||||||||||||||||||||||
Federal | — | 497 | 1,452 | ||||||||||||||||||||||
State | (4 | ) | 60 | 209 | |||||||||||||||||||||
Foreign | 2,847 | 1,437 | (2,275 | ) | |||||||||||||||||||||
$ | 2,843 | $ | 1,994 | $ | (614 | ) | |||||||||||||||||||
The difference between the actual rate and the federal statutory rate was as follows: | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Tax at federal statutory rate | 34 | % | 34 | % | 34 | % | |||||||||||||||||||
State tax, net of federal benefit | — | 0.3 | 1 | ||||||||||||||||||||||
Foreign rate differential | (0.1 | ) | (0.6 | ) | 1.4 | ||||||||||||||||||||
Research and development credit | 5.1 | — | 2.1 | ||||||||||||||||||||||
Withholding taxes | (2.1 | ) | (0.3 | ) | (0.1 | ) | |||||||||||||||||||
Goodwill impairment | — | (5.5 | ) | — | |||||||||||||||||||||
Stock-based compensation | (0.7 | ) | (2.7 | ) | (1.3 | ) | |||||||||||||||||||
Non-deductible intercompany bad debt | 0.3 | (16.5 | ) | — | |||||||||||||||||||||
FIN 48 interest and release | 14.6 | 10 | (0.4 | ) | |||||||||||||||||||||
Other | 1.6 | (0.7 | ) | (0.4 | ) | ||||||||||||||||||||
Valuation allowance | (40.2 | ) | (9.1 | ) | (39.3 | ) | |||||||||||||||||||
Effective tax rate | 12.5 | % | 8.9 | % | (3.0 | )% | |||||||||||||||||||
During 2012, the Company’s United Kingdom subsidiary recognized an intercompany bad debt expense of approximately $10,870 that is non-tax deductible for United Kingdom tax purposes. | |||||||||||||||||||||||||
Deferred tax assets and liabilities consist of the following: | |||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||||||||||
US | Foreign | Total | US | Foreign | Total | ||||||||||||||||||||
Deferred tax assets: | |||||||||||||||||||||||||
Fixed assets | $ | 554 | $ | 1,685 | $ | 2,239 | $ | 571 | $ | 1,501 | $ | 2,072 | |||||||||||||
Net operating loss carryforwards | 36,299 | 10,552 | 46,851 | 32,795 | 12,207 | 45,002 | |||||||||||||||||||
Accruals, reserves and other | 7,761 | 208 | 7,969 | 3,605 | 121 | 3,726 | |||||||||||||||||||
Foreign tax credit | 6,348 | — | 6,348 | 6,086 | — | 6,086 | |||||||||||||||||||
Stock-based compensation | 3,311 | 56 | 3,367 | 2,723 | 58 | 2,781 | |||||||||||||||||||
Research and development credit | 4,245 | — | 4,245 | 2,839 | — | 2,839 | |||||||||||||||||||
Other | 3,088 | 10 | 3,098 | 2,873 | 11 | 2,884 | |||||||||||||||||||
Total deferred tax assets | $ | 61,606 | $ | 12,511 | $ | 74,117 | $ | 51,492 | $ | 13,898 | $ | 65,390 | |||||||||||||
Deferred tax liabilities: | |||||||||||||||||||||||||
Macrospace, MIG and iFone intangible assets | $ | — | $ | (94 | ) | $ | (94 | ) | $ | — | $ | (498 | ) | $ | (498 | ) | |||||||||
GameSpy intangible assets | — | — | — | (506 | ) | — | (506 | ) | |||||||||||||||||
Blammo intangible assets | — | (129 | ) | (129 | ) | — | (261 | ) | (261 | ) | |||||||||||||||
Griptonite intangible assets | — | — | — | (949 | ) | — | (949 | ) | |||||||||||||||||
Superscape intangible assets | (116 | ) | — | (116 | ) | — | — | — | |||||||||||||||||
Other | — | (9 | ) | (9 | ) | — | (9 | ) | (9 | ) | |||||||||||||||
Net deferred tax assets | 61,490 | 12,279 | 73,769 | 50,037 | 13,130 | 63,167 | |||||||||||||||||||
Less valuation allowance | (61,490 | ) | (12,294 | ) | (73,784 | ) | (50,037 | ) | (13,674 | ) | (63,711 | ) | |||||||||||||
Net deferred tax liability | $ | — | $ | (15 | ) | $ | (15 | ) | $ | — | $ | (544 | ) | $ | (544 | ) | |||||||||
The Company has not provided deferred taxes on unremitted earnings attributable to foreign subsidiaries because these earnings are intended to be reinvested indefinitely. No deferred tax asset was recognized since the Company does not believe the deferred tax asset will reverse in the foreseeable future. The amount of accumulated foreign earnings of the Company’s foreign subsidiaries total $2,206 as of December 31, 2013. If the Company’s foreign earnings were repatriated, additional tax expense might result. The Company determined that the calculation of the amount of unrecognized deferred tax liability related to these cumulative unremitted earnings attributable to foreign subsidiaries is not practicable. The Company recorded a release of its valuation allowance of zero, $562, and $1,702 during 2013, 2012, and 2011, respectively. The 2012 and 2011 release was associated with the acquisitions of GameSpy in August 2012 and Griptonite in 2011. Pursuant to ASC 805-740, changes in the Company’s valuation allowance that stem from a business combination should be recognized as an element of the Company’s deferred income tax expense or benefit. The Company previously recognized a valuation allowance against its net operating loss carryforwards and determined that it should be able to utilize the benefit of those net operating losses against the deferred tax liabilities of GameSpy and Griptonite; therefore, it has partially released its pre-existing valuation allowance. In accordance with ASC 740 and based on all available evidence on a jurisdictional basis, the Company believes that, it is more likely than not that its deferred tax assets will not be utilized, and has recorded a full valuation allowance against its net deferred tax assets in each of its jurisdictions except for one entity in China. The Company assesses on a periodic basis the likelihood that it will be able to recover its deferred tax assets. The Company considers all available evidence, both positive and negative, including historical levels of income or losses, expectations and risks associated with estimates of future taxable income and ongoing prudent and feasible tax planning strategies in assessing the need for the valuation allowance. If it is not more likely than not that the Company expects to recover its deferred tax assets, the Company will increase its provision for taxes by recording a valuation allowance against the deferred tax assets that it estimates will not ultimately be recoverable. The available negative evidence at December 31, 2013 and 2012 included historical and projected future operating losses. As a result, the Company concluded that an additional valuation allowance of $10,073 and $696, net of the described releases, was required to reflect the gross increase in its deferred tax assets prior to valuation allowance during 2013 and 2012, respectively. As of December 31, 2013 and 2012, the Company considered it more likely than not that its deferred tax assets would not be realized with their respective carryforward periods. | |||||||||||||||||||||||||
At December 31, 2013, the Company has net operating loss carryforwards of approximately $93,213 and $78,379 for federal and state tax purposes, respectively. These carryforwards will expire from 2014 to 2033. In addition, the Company has research and development tax credit carryforwards of approximately $5,168 for federal income tax purposes and $4,077 for California tax purposes. The federal research and development tax credit carryforwards will begin to expire in 2022. The California state research credit will carry forward indefinitely. The Company has approximately $6,340 of foreign tax credits that will begin to expire in 2017, and approximately $12 of state alternative minimum tax credits that will carryforward indefinitely. 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. | |||||||||||||||||||||||||
In addition, at December 31, 2013, the Company has net operating loss carryforwards of approximately $47,364 for United Kingdom tax purposes that are all limited and can only offset a portion of the annual combined profits in the United Kingdom until the net operating losses are fully utilized. | |||||||||||||||||||||||||
A reconciliation of the total amounts of unrecognized tax benefits was as follows: | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Beginning balance | $ | 4,626 | $ | 4,034 | |||||||||||||||||||||
Reductions of tax positions taken during previous years | (725 | ) | (631 | ) | |||||||||||||||||||||
Additions based on uncertain tax positions related to the current period | 1,149 | 410 | |||||||||||||||||||||||
Additions based on uncertain tax positions related to prior periods | 1,449 | 813 | |||||||||||||||||||||||
Cumulative translation adjustment | 39 | — | |||||||||||||||||||||||
Ending balance | $ | 6,538 | $ | 4,626 | |||||||||||||||||||||
The total unrecognized tax benefits as of December 31, 2013 and 2012 include approximately $4,623 and $3,104, respectively of unrecognized tax benefits that have been netted against deferred tax assets. As of December 31, 2013, approximately $1,915 of unrecognized tax benefits, if recognized, would impact the Company’s effective tax rate. The remaining amount, if recognized, would adjust the Company’s deferred tax assets which are subject to valuation allowance. At December 31, 2013, the Company anticipated that the liability for uncertain tax positions, excluding interest and penalties, could decrease by approximately $1,278 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 has accrued $283 of interest and penalties on uncertain tax positions as of December 31, 2013, as compared to $2,348 as of December 31, 2012. Approximately $105, $182 and $248 of accrued interest and penalty expense related to estimated obligations for unrecognized tax benefits was recognized during 2013, 2012 and 2011 respectively. During 2013, the Company released $2,441 of interest and penalties on uncertain tax positions due to the expiration of certain statutes of limitation in foreign jurisdictions in which the Company does business. | |||||||||||||||||||||||||
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 2011 and 2012 tax returns for the various entities in the United Kingdom is expected to be closed in 2014. The Company’s China income tax returns are open by statute for tax years 2008 and forward. |
Segment_Reporting
Segment Reporting | 12 Months Ended | ||||||||||||
Dec. 31, 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: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Feature phone | $ | 5,319 | $ | 13,135 | $ | 31,091 | |||||||
Smartphone | 100,294 | 95,048 | 42,934 | ||||||||||
$ | 105,613 | $ | 108,183 | $ | 74,025 | ||||||||
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: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
United States of America | $ | 48,697 | $ | 57,816 | $ | 36,765 | |||||||
China | 10,985 | 5,827 | 4,007 | ||||||||||
Americas, excluding the USA | 5,430 | 5,051 | 6,528 | ||||||||||
EMEA | 22,820 | 22,381 | 20,621 | ||||||||||
APAC, excluding China | 17,681 | 17,108 | 6,104 | ||||||||||
$ | 105,613 | $ | 108,183 | $ | 74,025 | ||||||||
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: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Americas | $ | 4,108 | $ | 3,649 | |||||||||
EMEA | 899 | 1,092 | |||||||||||
APAC | 89 | 285 | |||||||||||
$ | 5,096 | $ | 5,026 | ||||||||||
Restructuring
Restructuring | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Restructuring | ' | ||||||||||||||||||||
NOTE 12 — RESTRUCTURING | |||||||||||||||||||||
Restructuring information as of December 31, 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 | ||||||||||||||||
Non cash adjustments | — | — | — | — | — | ||||||||||||||||
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 December 31, 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 consolidated income statement for the year ended December 31, 2013. | |||||||||||||||||||||
Since inception of the 2012 and 2013 restructuring plan through December 31, 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 year ended December 31, 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. |
Quarterly_Financial_Data
Quarterly Financial Data | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
Quarterly Financial Data | ' | ||||||||||||||||||||||||||||||||
NOTE 13 – QUARTERLY FINANCIAL DATA (unaudited, in thousands) | |||||||||||||||||||||||||||||||||
The following table sets forth unaudited quarterly consolidated statements of operations data for 2012 and 2013. The Company derived this information from its unaudited consolidated financial statements, which it prepared on the same basis as its audited consolidated financial statements contained in this report. In its opinion, these unaudited statements include all adjustments, consisting only of normal recurring adjustments that the Company considers necessary for a fair statement of that information when read in conjunction with the consolidated financial statements and related notes included elsewhere in this report. The operating results for any quarter should not be considered indicative of results for any future period. | |||||||||||||||||||||||||||||||||
For the Three Months Ended | |||||||||||||||||||||||||||||||||
2012 | 2013 | ||||||||||||||||||||||||||||||||
March 31 | June 30 | September 30 | December 31 | March 31 | June 30 | September 30 | December 31 | ||||||||||||||||||||||||||
Revenues | $ | 26,509 | $ | 29,264 | $ | 26,099 | $ | 26,311 | $ | 24,605 | $ | 24,445 | $ | 21,722 | $ | 34,841 | |||||||||||||||||
Cost of revenues: | |||||||||||||||||||||||||||||||||
Platform commissions, royalties and other | 7,522 | 7,780 | 6,946 | 7,382 | 7,462 | 7,670 | 7,436 | 9,803 | |||||||||||||||||||||||||
Impairment of prepaid royalties and guarantees | — | — | — | — | — | — | (d) | 435 | — | ||||||||||||||||||||||||
Amortization of intangible assets | 753 | 932 | 1,025 | 1,073 | 1,074 | 1,078 | 1,082 | 1,004 | |||||||||||||||||||||||||
Total cost of revenues | 8,275 | 8,712 | 7,971 | 8,455 | 8,536 | 8,748 | 8,953 | 10,807 | |||||||||||||||||||||||||
Gross profit | 18,234 | 20,552 | 18,128 | 17,856 | 16,069 | 15,697 | 12,769 | 24,034 | |||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||||
Research and development | 15,033 | 15,697 | (a) | 9,979 | 13,566 | 11,630 | 11,224 | 11,405 | 12,618 | ||||||||||||||||||||||||
Sales and marketing | 4,375 | 4,701 | 5,545 | 6,272 | 5,008 | 5,143 | 5,361 | (e) | 10,608 | ||||||||||||||||||||||||
General and administrative | 4,366 | 4,556 | 2,466 | 3,356 | 3,919 | 3,852 | 3,617 | 4,162 | |||||||||||||||||||||||||
Amortization of intangible assets | 495 | 495 | 495 | 495 | 495 | 495 | 229 | 117 | |||||||||||||||||||||||||
Impairment of goodwill | — | — | (c) | 3,613 | — | — | — | — | — | ||||||||||||||||||||||||
Restructuring charge | — | 320 | 213 | 838 | 511 | 937 | — | — | |||||||||||||||||||||||||
Total operating expenses | 24,269 | 25,769 | 22,311 | 24,527 | 21,563 | 21,651 | 20,612 | 27,505 | |||||||||||||||||||||||||
Income (loss) from operations | (6,035 | ) | (5,217 | ) | (4,183 | ) | (6,671 | ) | (5,494 | ) | (5,954 | ) | (7,843 | ) | (3,471 | ) | |||||||||||||||||
Interest and other income (expense), net | (366 | ) | 210 | (455 | ) | 264 | 132 | 163 | (155 | ) | (130 | ) | |||||||||||||||||||||
Loss before income taxes | (6,401 | ) | (5,007 | ) | (4,638 | ) | (6,407 | ) | (5,362 | ) | (5,791 | ) | (7,998 | ) | (3,601 | ) | |||||||||||||||||
Income tax benefit (provision) | (440 | )(b) | 2,019 | (b) | 1,075 | (660 | ) | (135 | )(f) | 2,870 | 30 | 78 | |||||||||||||||||||||
Net loss | $ | (6,841 | ) | $ | (2,988 | ) | (3,563 | ) | $ | (7,067 | ) | $ | (5,497 | ) | $ | (2,921 | ) | $ | (7,968 | ) | $ | (3,523 | ) | ||||||||||
Net loss per share — basic and diluted | $ | (0.11 | ) | $ | (0.05 | ) | $ | (0.06 | ) | $ | (0.11 | ) | $ | (0.08 | ) | $ | (0.04 | ) | $ | (0.11 | ) | $ | (0.05 | ) | |||||||||
(a) | Changes in the research and development expense from $15,033 in the first quarter of 2012 and $9,979 in the third quarter of 2012 was due primarily to changes in the fair market value of contingent consideration issued to employees who are former shareholders of Blammo. | ||||||||||||||||||||||||||||||||
(b) | The income tax benefit of $2,019 in the second quarter of 2012 was due primarily to the release of uncertain tax positions in certain foreign jurisdictions due to the expiration of the statute of limitations. The income tax benefit of $1,075 in the third quarter of 2012 was due primarily to the release of the GameSpy valuation allowance upon acquisition and changes in pre-tax income in certain foreign entities. | ||||||||||||||||||||||||||||||||
(c) | The goodwill impairment charge of $3,613 in the third quarter of 2012 was due to a decline in the estimated fair value of the APAC reporting unit attributable to an accelerated decline in the local feature phone business and the recent restructuring of the Company’s operations in the region. | ||||||||||||||||||||||||||||||||
(d) | The impairment of prepaid royalties and guarantees charge of $435 in the third quarter of 2013 was primarily due to a prepaid royalty impairment charge recorded for two of our third-party publishing titles. | ||||||||||||||||||||||||||||||||
(e) | Change in sales and marketing expense from $5,008 in the first quarter of 2013 to $10,608 in the fourth quarter of 2013 was due primarily to higher marketing expenses associated with promoting Deer Hunter 2014. | ||||||||||||||||||||||||||||||||
(f) | The income tax benefit of $2,870 in the second quarter of 2013 was due primarily to the release of uncertain tax positions due to the expiration of certain statutes of limitations in certain foreign jurisdictions. |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2013 | |
Related Party Transactions | ' |
NOTE 14 – 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 6.88% of the Company’s stock as of December 31, 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 14.4% shareholding in Kontagent, Inc. (successor-in-interest to Medium Entertainment, dba PlayHaven, with which Kontagent merged in December 2013). Mr. Nada was a member of PlayHaven’s board of directors at the time of GGV IV’s investment in PlayHaven in the fourth quarter of 2012, and has continued as a member of Kontagent’s Board of Directors. For the year ended December 31, 2013 and 2012, the Company generated revenues of $5,724 and $6,285, respectively, from Kontagent. As of December 31, 2013 and December 31, 2012, Kontagent accounted for 9.0% and 13.2%, respectively, of the Company’s total accounts receivable balance. |
The_Company_and_Summary_of_Sig1
The Company and Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Basis of Presentation | ' | ||||||||||||
Basis of Presentation | |||||||||||||
The Company’s consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States. | |||||||||||||
Basis of Consolidation | ' | ||||||||||||
Basis of Consolidation | |||||||||||||
The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All material intercompany balances and transactions have been eliminated. | |||||||||||||
Use of Estimates | ' | ||||||||||||
Use of Estimates | |||||||||||||
The preparation of financial statements and related disclosures in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) requires the Company’s management to make judgments, assumptions and estimates that affect the amounts reported in its consolidated financial statements and accompanying notes. Management bases its estimates on historical experience and on various other assumptions it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Significant estimates and assumptions reflected in the financial statements include, but are not limited to, the estimated lives that we use for revenue recognition, the allowance for doubtful accounts, useful lives of property and equipment and intangible assets, income taxes, fair value of stock awards issued and contingent consideration issued to Blammo shareholders, fair value of warrants issued, accounting for business combinations, and evaluating goodwill and long-lived assets for impairment. Actual results may differ from these estimates and these differences may be material. | |||||||||||||
Revenue Recognition | ' | ||||||||||||
Revenue Recognition | |||||||||||||
The Company generates revenues through the sale of games on traditional feature phones and smartphones and tablets, such as Apple’s iPhone and iPad and other mobile devices utilizing Google’s Android operating system. Feature phone games are distributed primarily through wireless carriers and smartphone games are distributed primarily through Digital Storefronts. | |||||||||||||
Smartphone Revenue | |||||||||||||
The Company distributes its games for smartphones and tablets to the end customer through Digital Storefronts. Within these Digital Storefronts, users can download the Company’s free-to-play games and pay to acquire virtual currency which can be redeemed in the game for virtual goods. The Company recognizes revenue, when persuasive evidence of an arrangement exists, the service has been provided to the user, the price paid by the user is fixed or determinable, and collectability is reasonably assured. Determining whether and when some of these criteria have been satisfied requires judgments that may have a significant impact on the timing and amount of revenue the Company reports in each period. For the purposes of determining when the service has been provided to the player, the Company has determined that an implied obligation exists to the paying user to continue displaying the purchased virtual goods within the game over the estimated average playing period of paying players for the game, which represents the Company’s best estimate of the estimated average life of virtual goods. | |||||||||||||
The Company sells both consumable and durable virtual goods and receives reports from the Digital Storefronts, which breakdown the various purchases made from their games over a given time period. The Company reviews these reports to determine on a per-item basis whether the purchase was a consumable virtual good or a durable virtual good. Consumable goods are items consumed at a predetermined time or otherwise have limitations on repeated use, while durable goods are items accessible to the user over an extended period of time. The Company’s revenues from consumable virtual goods have been immaterial over the previous three years and are one-time actions that can be purchased directly by the player through the Digital Storefront. The Company recognizes the revenues from these items immediately, since it believes that the delivery obligation has been met and there are no further implicit or explicit performance obligations related to the purchase of that consumable virtual good. Revenues from durable virtual goods are generated through the purchase of virtual coins by users through a Digital Storefront. Players convert the virtual coins within the game to durable virtual goods such as weapons, armor or other accessories to enhance their game-playing experience. The durable virtual goods remain in the game for as long as the player continues to play. The Company believes this represents an implied service obligation, and accordingly, recognizes the revenues from the purchase of these durable virtual goods over the estimated average playing period of paying users. Based on the Company’s analysis, the estimated weighted average useful life of a paying user is approximately three months, and this estimate has been consistent since the Company’s initial analysis. If a new game is launched and only a limited period of paying player data is available, then the Company also considers other qualitative factors, such as the playing patterns for paying users for other games with similar characteristics. While the Company believes its estimates to be reasonable based on available game player information, it may revise such estimates in the future as the games’ operation periods change. Any adjustments arising from changes in the estimates of the lives of these virtual goods would be applied prospectively on the basis that such changes are caused by new information indicating a change in game player behavior patterns. Any changes in the Company’s estimates of useful lives of these virtual goods may result in revenues being recognized on a basis different from prior periods’ and may cause its operating results to fluctuate. | |||||||||||||
The Company also has relationships with certain advertising service providers for advertisements within smartphone games and revenue from these advertising providers is generated through impressions, clickthroughs, banner ads and offers. Revenue is recognized as advertisements are delivered and reported to the Company, an executed contract exists, the price is fixed or determinable and collectability has been reasonably assured. Delivery generally occurs when the advertisement has been displayed or the offer has been completed by the user. The fee received for certain offer advertisements that result in the user receiving virtual currency for redemption within a game are deferred and recognized over the average playing period of paying users. | |||||||||||||
Feature Phone Revenue | |||||||||||||
The Company’s feature phone revenues are derived primarily by licensing software products in the form of mobile games. The Company distributes its products primarily through mobile telecommunications service providers (“carriers”), which market the games to end users. License fees are usually billed by the carrier upon download of the game by the end user and are generally billed monthly. Revenues are recognized from the Company’s games when persuasive evidence of an arrangement exists, the game has been delivered, the fee is fixed or determinable, and the collection of the resulting receivable is probable. Management considers a signed license agreement to be evidence of an arrangement with a carrier and a “clickwrap” agreement to be evidence of an arrangement with an end user. For these licenses, the Company defines delivery as the download of the game by the end user. | |||||||||||||
Other Estimates and Judgments | |||||||||||||
The Company estimates revenues from carriers and Digital Storefronts in the current period when reasonable estimates of these amounts can be made. Certain carriers and Digital Storefronts provide reliable interim preliminary reporting and others report sales data within a reasonable time frame following the end of each month, both of which allow the Company to make reasonable estimates of revenues and therefore to recognize revenues during the reporting period. Determination of the appropriate amount of revenue recognized involves judgments and estimates that the Company believes are reasonable, but it is possible that actual results may differ from the Company’s estimates. When the Company receives the final reports, to the extent not received within a reasonable time frame following the end of each month, the Company records any differences between estimated revenues and actual revenues in the reporting period when the Company determines the actual amounts. Historically, the revenues on the final revenue report have not differed significantly from the reported revenues for the period. | |||||||||||||
Principal Agent Considerations | |||||||||||||
In accordance with ASC 605-45, Revenue Recognition: Principal Agent Considerations, the Company evaluates its carrier and Digital Storefront agreements in order to determine whether or not it is acting as the principal or as an agent when selling its games, which it considers in determining if revenue should be reported gross or net. The Company primarily uses Digital Storefronts for distributing its smartphone games, whereas carriers are used for distribution of the Company’s feature phone games. Key indicators that the Company evaluates to reach this determination include: | |||||||||||||
• | the terms and conditions of the Company’s contracts with the carriers and the Digital Storefronts; | ||||||||||||
• | the party responsible for billing and collecting fees from the end-users, including the resolution of billing disputes; | ||||||||||||
• | whether the Company is paid a fixed percentage of the arrangement’s consideration or a fixed fee for each game or transaction; | ||||||||||||
• | the party which sets the pricing with the end-user, has the credit risk and provides customer support; and | ||||||||||||
• | the party responsible for the fulfillment of the game and that determines the specifications of the game. | ||||||||||||
Based on the evaluation of the above indicators, the Company determined that it is generally acting as a principal and is the primary obligor to end-users for smartphone games distributed through digital storefronts and therefore recognizes revenue related to these arrangements on a gross basis. For feature phone games, the Company concluded that the carriers are the primary obligor and therefore recognizes revenue for the amounts due from the carriers on a net basis. | |||||||||||||
Deferred Platform Commissions and Royalties | ' | ||||||||||||
Deferred Platform Commissions and Royalties | |||||||||||||
Digital Storefronts retain platform commissions and fees on each purchase made by the paying players through the Digital Storefront. The Company is also obligated to pay ongoing licensing fees in the form of royalties related to the games developed based on intellectual property licensed from third parties. Additionally, certain smartphone games sold through digital storefronts require the revenue to be deferred due to an implied obligation to the paying player to continue displaying the purchased virtual goods within the game over the estimated average playing period of paying players for the game. As revenues from sales to paying players through Digital Storefronts are deferred, the related direct and incremental platform commissions and fees as well as third party royalties are also deferred and reported in “Prepaid expenses and other” on the consolidated balance sheets. The deferred platform commissions and royalties are recognized in the consolidated statements of operations in “Cost of revenues” in the period in which the related sales are recognized as revenues. | |||||||||||||
Cash and Cash Equivalents | ' | ||||||||||||
Cash and Cash Equivalents | |||||||||||||
The Company considers all investments purchased with an original or remaining maturity of three months or less at the date of purchase to be cash equivalents. The Company deposits cash and cash equivalents with financial institutions that management believes are of high credit quality. Deposits held with financial institutions often exceed the amount of insurance on these deposits. | |||||||||||||
Restricted Cash | ' | ||||||||||||
Restricted Cash | |||||||||||||
Restricted cash consists of deposits related to letters of credit to secure obligations under the Company’s operating lease agreements. | |||||||||||||
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 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, generally, requires no 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. It reviews all other balances quarterly. The Company charges 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 in excess of 10% of the Company’s revenues: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Apple | 50.1 | % | 41.3 | % | 26.5 | % | |||||||
19.2 | 20.3 | — | |||||||||||
Tapjoy | — | 10.7 | 11.6 | ||||||||||
At December 31, 2013, Apple accounted for 46.3%, and Jirbo (dba AdColony) and Google each accounted for 11.1% of total accounts receivable. At December 31, 2012, Apple accounted for 44.3%, Kontagent, Inc. (successor-in-interest to Medium Entertainment, dba PlayHaven, with which Kontagent merged in December 2013) 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. | |||||||||||||
Fair Value | ' | ||||||||||||
Fair Value | |||||||||||||
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 first two levels in the hierarchy are considered observable inputs and the last is considered unobservable. 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. Level 3 liabilities consist of acquisition-related non-current liabilities for contingent consideration (i.e., earnouts). Please refer to Note 4 for further details. | |||||||||||||
Prepaid or Guaranteed Licensor Royalties | ' | ||||||||||||
Prepaid or Guaranteed Licensor Royalties | |||||||||||||
The Company’s royalty expenses consist of fees that it pays to branded content owners for the use of their intellectual property, including trademarks and copyrights, in the development of the Company’s games. Royalty-based obligations are either paid in advance and capitalized on the balance sheet as prepaid royalties or accrued as incurred and subsequently paid. These royalty-based obligations are expensed to cost of revenues at the greater of the revenues derived from the relevant game multiplied by the applicable contractual rate or an effective royalty rate based on expected net product sales. Advanced license payments that are not recoupable against future royalties are capitalized and amortized over the lesser of the estimated life of the branded title or the term of the license agreement. | |||||||||||||
The Company’s contracts with some licensors include minimum guaranteed royalty payments, which are payable regardless of the ultimate volume of sales to end users. In accordance with ASC 460-10-15, Guarantees (“ASC 460”), the Company recorded a minimum guaranteed liability of $433 and zero as of December 31, 2013 and 2012, respectively. When no significant performance remains with the licensor, the Company initially records each of these guarantees as an asset and as a liability at the contractual amount. The Company believes that the contractual amount represents the fair value of the liability. When significant performance remains with the licensor, the Company records royalty payments as an asset when actually paid and as a liability when incurred, rather than upon execution of the contract. The Company classifies minimum royalty payment obligations as current liabilities to the extent they are contractually due within the next twelve months. | |||||||||||||
Each quarter, the Company evaluates the realization of its royalties as well as any unrecognized guarantees not yet paid to determine amounts that it deems unlikely to be realized through product sales. The Company uses estimates of revenues, cash flows and net margins to evaluate the future realization of prepaid royalties and guarantees. This evaluation considers multiple factors, including the term of the agreement, forecasted demand, game life cycle status, game development plans, and current and anticipated sales levels, as well as other qualitative factors such as the success of similar games and similar genres on mobile devices for the Company and its competitors and/or other game platforms (e.g., consoles, personal computers and Internet) utilizing the intellectual property and whether there are any future planned theatrical releases or television series based on the intellectual property. To the extent that this evaluation indicates that the remaining prepaid and guaranteed royalty payments are not recoverable, the Company records an impairment charge to cost of revenues in the period that impairment is indicated. The Company recorded impairment charges to cost of revenues of $435, zero, and $531 during the years ended December 31, 2013, 2012, and 2011, respectively. | |||||||||||||
Goodwill and Intangible Assets | ' | ||||||||||||
Goodwill and Intangible Assets | |||||||||||||
In accordance with ASC 350, Intangibles-Goodwill and Other (“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. This impairment review involves a multiple-step process as follows: | |||||||||||||
Step — 0 The Company evaluates qualitative factors and overall financial performance to determine whether it is necessary to perform the first step of the two-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 two-step goodwill impairment test. | |||||||||||||
Step — 1 The Company compares the fair value of each of its reporting units to the carrying value including goodwill of that unit. For each reporting unit where the carrying value, including goodwill, exceeds the unit’s fair value, the Company moves on to step 2. If a unit’s fair value exceeds the carrying value, no further work is performed and no impairment charge is necessary. | |||||||||||||
Step — 2 The Company performs an allocation of the fair value of the reporting unit to its identifiable tangible and intangible assets (other than goodwill) and liabilities. This allows the Company to derive an implied fair value for the unit’s goodwill. The Company then compares the implied fair value of the reporting unit’s goodwill with the carrying value of the unit’s goodwill. If the carrying amount of the unit’s goodwill is greater than the implied fair value of its goodwill, an impairment charge would be recognized for the excess. | |||||||||||||
In 2013 and 2011, the Company did not record any goodwill impairment charges as the fair values of the reporting units exceeded their respective carrying values. In 2012, the Company concluded that a portion of the goodwill attributed to the APAC reporting unit was impaired and recorded a $3,613 impairment charge. | |||||||||||||
Purchased intangible assets with finite lives are amortized using the straight-line method over their useful lives ranging from one to nine years and are reviewed for impairment in accordance with ASC 360, Property, Plant and Equipment (“ASC 360”). | |||||||||||||
Long-Lived Assets | ' | ||||||||||||
Long-Lived Assets | |||||||||||||
The Company evaluates its long-lived assets, including property and equipment and intangible assets with finite lives, for impairment whenever events or changes in circumstances indicate that the carrying value of these assets may not be recoverable in accordance with ASC 360. Factors considered important that could result in an impairment review include significant underperformance relative to expected historical or projected future operating results, significant changes in the manner of use of acquired assets, significant negative industry or economic trends, and a significant decline in the Company’s stock price for a sustained period of time. The Company recognizes impairment based on the difference between the fair value of the asset and its carrying value. Fair value is generally measured based on either quoted market prices, if available, or a discounted cash flow analysis. | |||||||||||||
Property and Equipment | ' | ||||||||||||
Property and Equipment | |||||||||||||
The Company states property and equipment at cost. The Company computes depreciation or amortization using the straight-line method over the estimated useful lives of the respective assets or, in the case of leasehold improvements, the lease term of the respective assets, whichever is shorter. | |||||||||||||
The depreciation and amortization periods for the Company’s property and equipment are as follows: | |||||||||||||
Computer equipment | Three years | ||||||||||||
Computer software | Three years | ||||||||||||
Furniture and fixtures | Three years | ||||||||||||
Leasehold improvements | Shorter of the estimated useful life or remaining term of lease | ||||||||||||
Research and Development Costs | ' | ||||||||||||
Research and Development Costs | |||||||||||||
The Company charges costs related to research, design and development of products to research and development expense as incurred. The types of costs included in research and development expenses include salaries, contractor fees and allocated facilities costs. | |||||||||||||
Software Development Costs | ' | ||||||||||||
Software Development Costs | |||||||||||||
The Company applies the principles of ASC 985-20, Software-Costs of Computer Software to Be Sold, Leased, or Otherwise Marketed (“ASC 985-20”). ASC 985-20 requires that software development costs incurred in conjunction with product development be charged to research and development expense until technological feasibility is established. Thereafter, until the product is released for sale, software development costs must be capitalized and reported at the lower of unamortized cost or net realizable value of the related product. The Company has adopted the “tested working model” approach to establishing technological feasibility for its games. Under this approach, the Company does not consider a game in development to have passed the technological feasibility milestone until the Company has completed a model of the game that contains essentially all the functionality and features of the final game and has tested the model to ensure that it works as expected. To date, the Company has not incurred significant costs between the establishment of technological feasibility and the release of a game for sale; thus, the Company has expensed all software development costs as incurred. The Company considers the following factors in determining whether costs can be capitalized: the uncertainty regarding a game’s revenue-generating potential and its historical practice of canceling games at any stage of the development process. | |||||||||||||
Internal Use Software | ' | ||||||||||||
Internal Use Software | |||||||||||||
The Company recognizes internal use software development costs in accordance with ASC 350-40, Intangibles-Goodwill and Other-Internal Use Software (“ASC 350-40”). Thus, the Company capitalizes software development costs, including costs incurred to purchase third-party software, beginning when it determines certain factors are present including, among others, that technology exists to achieve the performance requirements and/or buy versus internal development decisions have been made. The Company capitalized certain internal use software costs totaling approximately $249, $1,598 and $1,787 during the years ended December 31, 2013, 2012, and 2011, respectively. The estimated useful life of costs capitalized is generally three years. During the years ended December 31, 2013, 2012 and 2011, the amortization of capitalized software costs totaled approximately $1,097, $1,014 and $507, respectively. Capitalized internal use software development costs are included in property and equipment, net. | |||||||||||||
Income Taxes | ' | ||||||||||||
Income Taxes | |||||||||||||
The Company accounts for income taxes in accordance with ASC 740, Income Taxes (“ASC 740”), which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in its financial statements or tax returns. Under ASC 740, the Company determines deferred tax assets and liabilities based on the temporary difference between the financial statement and tax bases of assets and liabilities using the enacted tax rates in effect for the year in which it expects the differences to reverse. The Company establishes valuation allowances when necessary to reduce deferred tax assets to the amount it expects to realize. | |||||||||||||
The Company accounts for uncertain tax positions in accordance with ASC 740, which requires companies to adjust their financial statements to reflect only those tax positions that are more-likely-than-not to be sustained. ASC 740 prescribes a comprehensive model for the financial statement recognition, measurement, presentation and disclosure of uncertain tax positions taken or expected to be taken in income tax returns. The Company’s policy is to recognize interest and penalties related to unrecognized tax benefits in income tax expense. | |||||||||||||
Restructuring | ' | ||||||||||||
Restructuring | |||||||||||||
The Company accounts for costs associated with employee terminations and other exit activities in accordance with ASC 420, Exit or Disposal Cost Obligations (“ASC 420”). The Company records employee termination benefits as an operating expense when it communicates the benefit arrangement to the employee and it requires no significant future services, other than a minimum retention period, from the employee to earn the termination benefits. In addition, termination benefits related to international employees are recognized when the amount of such termination benefits becomes estimable and payment is probable. | |||||||||||||
Stock-Based Compensation | ' | ||||||||||||
Stock-Based Compensation | |||||||||||||
The Company applies the fair value provisions of ASC 718, Compensation-Stock Compensation (“ASC 718”). ASC 718 requires the recognition of compensation expense, using a fair-value based method, for costs related to all share-based payments including stock options and restricted stock units (“RSUs”). ASC 718 requires companies to estimate the fair value of stock-option awards on the grant date using an option pricing model. The fair value of stock options and stock purchase rights granted pursuant to the Company’s equity incentive plans and 2007 Employee Stock Purchase Plan (“ESPP”), respectively, is determined using the Black-Scholes valuation model. The determination of fair value is affected by the stock price, as well as assumptions regarding subjective and complex variables such as expected employee exercise behavior and expected stock price volatility over the expected term of the award. Generally, these assumptions are based on historical information and judgment is required to determine if historical trends may be indicators of future outcomes. Employee stock-based compensation expense is calculated based on awards ultimately expected to vest and is reduced for estimated forfeitures. Forfeitures are revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates and an adjustment to stock-based compensation expense will be recognized at that time. Changes to the assumptions used in the Black-Scholes option valuation calculation and the forfeiture rate, as well as future equity granted or assumed through acquisitions could significantly impact the compensation expense the Company recognizes. 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, and is reduced for estimated forfeitures. The compensation cost for all share-based payment awards is amortized on a straight-line basis over the requisite service period. | |||||||||||||
The Company has elected to use the “with and without” approach as described in determining the order in which tax attributes are utilized. As a result, the Company will only recognize a tax benefit from stock-based awards in additional paid-in capital if an incremental tax benefit is realized after all other tax attributes currently available to the Company have been utilized. In addition, the Company has elected to account for the indirect effects of stock-based awards on other tax attributes, such as the research tax credit, through its statement of operations. | |||||||||||||
The Company accounts for equity instruments issued to non-employees in accordance with the provisions of ASC 718 and ASC 505-50. | |||||||||||||
Advertising Expenses | ' | ||||||||||||
Advertising Expenses | |||||||||||||
The Company expenses the production costs of advertising, including direct response advertising, the first time the advertising takes place. Advertising expense was $18,308, $12,124 and $6,114 in the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||
Comprehensive Loss | ' | ||||||||||||
Comprehensive Loss | |||||||||||||
Comprehensive loss consists of two components, net loss and other comprehensive income/(loss). Other comprehensive income/(loss) refers to revenues, expenses, gains and losses that under GAAP are recorded as an element of stockholders’ equity but are excluded from net loss. The Company’s other comprehensive income/(loss) included foreign currency translation adjustments from those subsidiaries not using the U.S. dollar as their functional currency, and a reclassification to net loss from the write-off of cumulative translation adjustment. | |||||||||||||
Foreign Currency Translation | ' | ||||||||||||
Foreign Currency Translation | |||||||||||||
In preparing its consolidated financial statements, the Company translated the financial statements of its foreign subsidiaries from their functional currencies, the local currency, into U.S. Dollars. This process resulted in unrealized exchange gains and losses, which are included as a component of accumulated other comprehensive loss within stockholders’ deficit. However, if the functional currency is deemed to be the U.S. Dollar, any gain or loss associated with the translation of these financial statements would be included within the Company’s consolidated statements of operations. | |||||||||||||
Cumulative foreign currency translation adjustments include any gain or loss associated with the translation of a subsidiary’s financial statements when the functional currency of a subsidiary is the local currency. If the Company disposes of any of its subsidiaries, any cumulative translation gains or losses would be realized and recorded within the Company’s consolidated statement of operations in the period during which the disposal occurs. If the Company determines that there has been a change in the functional currency of a subsidiary relative to the U.S. Dollar, any translation gains or losses arising after the date of change would be included within the Company’s consolidated statement of operations. | |||||||||||||
Business Combination | ' | ||||||||||||
Business Combination | |||||||||||||
The Company applies the accounting standard related to business combinations, ASC 805, Business Combinations (“ASC 805’). The standard requires recognition of assets acquired, liabilities assumed, and contingent consideration at their fair value on the acquisition date with subsequent changes recognized in earnings; requires acquisition-related expenses and restructuring costs to be recognized separately from the business combination and expensed as incurred; requires in-process research and development to be capitalized at fair value as an indefinite-lived intangible asset until completion or abandonment; and requires that changes in accounting for deferred tax asset valuation allowances and acquired income tax uncertainties after the measurement period be recognized as a component of provision for taxes. | |||||||||||||
The Company accounts for acquisitions of entities or assets that include inputs and processes and have the ability to create outputs as business combinations. The purchase price of the acquisition is allocated to tangible assets, liabilities, and identifiable intangible assets acquired based on their estimated fair values. The excess of the purchase price over those fair values is recorded as goodwill. Acquisition-related expenses and restructuring costs are expensed as incurred. While the Company uses its best estimates and assumptions as a part of the purchase price allocation process to accurately value assets acquired and liabilities assumed at the business combination date, these estimates and assumptions are inherently uncertain and subject to refinement. As a result, during the preliminary purchase price allocation period, which may be up to one year from the business combination date, the Company may record adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill. After the preliminary purchase price allocation period, the Company records adjustments to assets acquired or liabilities assumed subsequent to the purchase price allocation period in its operating results in the period in which the adjustments were determined. | |||||||||||||
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 year ended December 31, 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 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 consolidated financial statements once adopted. |
The_Company_and_Summary_of_Sig2
The Company and Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Revenues from Customers or Aggregate Purchases through Digital Storefronts in Excess of Ten Percent of Revenues | ' | ||||||||||||
The following table summarizes the revenues from customers or aggregate purchases through Digital Storefronts in excess of 10% of the Company’s revenues: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Apple | 50.1 | % | 41.3 | % | 26.5 | % | |||||||
19.2 | 20.3 | — | |||||||||||
Tapjoy | — | 10.7 | 11.6 | ||||||||||
Depreciation and Amortization Periods for Company's Property and Equipment | ' | ||||||||||||
The depreciation and amortization periods for the Company’s property and equipment are as follows: | |||||||||||||
Computer equipment | Three years | ||||||||||||
Computer software | Three years | ||||||||||||
Furniture and fixtures | Three years | ||||||||||||
Leasehold improvements | Shorter of the estimated useful life or remaining term of lease |
Net_Loss_Per_Share_Tables
Net Loss Per Share (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 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 by the Company. | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Net loss | $ | (19,909 | ) | $ | (20,459 | ) | $ | (21,101 | ) | ||||
Basic and diluted shares: | |||||||||||||
Weighted average common shares outstanding | 71,543 | 64,932 | 57,834 | ||||||||||
Weighted average unvested common shares subject to restrictions | (90 | ) | (614 | ) | (316 | ) | |||||||
Weighted average shares used to compute basic and diluted net loss per share | 71,453 | 64,318 | 57,518 | ||||||||||
Net loss per share — basic and diluted | $ | (0.28 | ) | $ | (0.32 | ) | $ | (0.37 | ) | ||||
Anti-Dilutive Securities Excluded from Computation of Diluted Net Loss Per Share of Common Stock | ' | ||||||||||||
The following weighted average outstanding options, RSUs, and warrants to purchase common stock and unvested shares of common stock subject to restrictions 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: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Warrants to purchase common stock | 3,310 | 4,187 | 5,344 | ||||||||||
Unvested common shares subject to restrictions | 90 | 614 | 316 | ||||||||||
Options to purchase common stock | 10,646 | 10,321 | 8,112 | ||||||||||
RSUs | 936 | — | — | ||||||||||
14,982 | 15,122 | 13,772 | |||||||||||
Business_Combinations_Tables
Business Combinations (Tables) | 12 Months Ended | ||||
Dec. 31, 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: | |||||
Assets acquired: | |||||
Cash | $ | 913 | |||
Accounts receivable, net | 1,695 | ||||
Property and equipment | 485 | ||||
Intangible assets: | |||||
Customer contracts 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 | |||
Griptonite | ' | ||||
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: | |||||
Assets acquired: | |||||
Cash | $ | 10,300 | |||
Accounts receivable | 1,558 | ||||
Prepaid and other current assets | 1,028 | ||||
Property and equipment | 796 | ||||
Other long term assets | 33 | ||||
Intangible assets: | |||||
Non-compete agreements | 3,200 | ||||
Developed Technology | 2,500 | ||||
Goodwill | 12,670 | ||||
Total assets acquired | 32,085 | ||||
Liabilities assumed: | |||||
Accounts payable and other accrued liabilities | (1,226 | ) | |||
Deferred tax liability and other long-term liabilities | (2,771 | ) | |||
Total liabilities | (3,997 | ) | |||
Net acquired assets | $ | 28,088 | |||
Blammo | ' | ||||
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: | |||||
Assets acquired: | |||||
Cash and other assets | $ | 69 | |||
Intangible assets: | |||||
Non-compete agreements | 1,400 | ||||
In-process research and development | 300 | ||||
Goodwill | 4,309 | ||||
Total assets acquired | 6,078 | ||||
Liabilities assumed: | |||||
Accounts payable and other accrued liabilities | (287 | ) | |||
Other long-term liabilities | (721 | ) | |||
Total liabilities | (1,008 | ) | |||
Net acquired assets | $ | 5,070 | |||
Pro Forma Financial Information | ' | ||||
The unaudited pro forma financial information in the table below summarizes the combined results of the Company’s operations and those of Griptonite for the periods shown as if the acquisition of Griptonite had occurred on January 1, 2011. The pro forma financial information includes the business combination accounting effects of the acquisition, including amortization charges from acquired intangible assets. The pro forma financial information presented below is for informational purposes only, and is subject to a number of estimates, assumptions and other uncertainties. In addition, the pro forma financial information presented below does not include the unaudited financial information of Blammo and GameSpy, since these were not material. | |||||
Year Ended | |||||
December 31, | |||||
2011 | |||||
Total pro forma revenues | $ | 84,704 | |||
Pro forma net loss | (21,256 | ) | |||
Pro forma net loss per share — basic and diluted | (0.35 | ) |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||
Dec. 31, 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) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Accounts Receivable | ' | ||||||||||||||||
Accounts Receivable | |||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Accounts receivable | $ | 18,764 | $ | 12,313 | |||||||||||||
Less: Allowance for doubtful accounts | (459 | ) | (432 | ) | |||||||||||||
$ | 18,305 | $ | 11,881 | ||||||||||||||
Allowance for Doubtful Accounts | ' | ||||||||||||||||
The movement in the Company’s allowance for doubtful accounts is as follows: | |||||||||||||||||
Balance at | Balance at | ||||||||||||||||
Beginning of | End of | ||||||||||||||||
Description | Year | Additions | Deductions | Year | |||||||||||||
Year ended December 31, 2013 | $ | 432 | $ | 51 | $ | 24 | $ | 459 | |||||||||
Year ended December 31, 2012 | $ | 800 | $ | 202 | 570 | $ | 432 | ||||||||||
Year ended December 31, 2011 | $ | 504 | $ | 390 | 94 | $ | 800 | ||||||||||
Prepaid Expenses and Other | ' | ||||||||||||||||
Prepaid expenses and other | |||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Deferred platform commission fees | 4,516 | 2,680 | |||||||||||||||
Prepaid royalties | 740 | — | |||||||||||||||
Prepaids and other | 2,407 | 2,487 | |||||||||||||||
$ | 7,663 | 5,167 | |||||||||||||||
Property and Equipment | ' | ||||||||||||||||
Property and Equipment | |||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Computer equipment | $ | 6,134 | $ | 6,255 | |||||||||||||
Furniture and fixtures | 862 | 566 | |||||||||||||||
Software | 6,290 | 6,304 | |||||||||||||||
Leasehold improvements | 2,768 | 2,227 | |||||||||||||||
16,054 | 15,352 | ||||||||||||||||
Less: Accumulated depreciation and amortization | (10,958 | ) | (10,326 | ) | |||||||||||||
$ | 5,096 | $ | 5,026 | ||||||||||||||
Other Long-Term Liabilities | ' | ||||||||||||||||
Other Long-Term Liabilities | |||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Uncertain tax position obligations | $ | 890 | $ | 3,859 | |||||||||||||
Deferred income tax liability | 122 | 647 | |||||||||||||||
Contingent earnout liability | 98 | 657 | |||||||||||||||
Deferred rent and other | 1,247 | 1,027 | |||||||||||||||
$ | 2,357 | $ | 6,190 | ||||||||||||||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 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 December 31, 2013 and December 31, 2012 were as follows: | |||||||||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||||||||||||||||
Carrying | Amortization | Carrying | Carrying | Amortization | Carrying | ||||||||||||||||||||||||||||
Value | Expense | Value | Value | Expense | Value | ||||||||||||||||||||||||||||
(Including | (Including | (Including | (Including | (Including | (Including | ||||||||||||||||||||||||||||
Estimated | Impact of | Impact of | Impact of | Impact of | Impact of | Impact of | |||||||||||||||||||||||||||
Useful | Foreign | Foreign | Foreign | Foreign | Foreign | Foreign | |||||||||||||||||||||||||||
Life | Exchange) | Exchange) | Exchange) | Exchange) | Exchange) | Exchange) | |||||||||||||||||||||||||||
Intangible assets amortized to cost of revenues: | |||||||||||||||||||||||||||||||||
Titles, content and technology | 2 yrs | $ | 12,851 | (12,165 | ) | $ | 686 | $ | 12,781 | $ | (11,518 | ) | $ | 1,263 | |||||||||||||||||||
Catalogs | 1 yr | 1,283 | (1,283 | ) | — | 1,257 | (1,257 | ) | — | ||||||||||||||||||||||||
ProvisionX Technology | 6 yrs | 211 | (211 | ) | — | 207 | (207 | ) | — | ||||||||||||||||||||||||
Carrier contract and related relationships | 5 yrs | 19,940 | (19,645 | ) | 295 | 19,585 | (16,421 | ) | 3,164 | ||||||||||||||||||||||||
Licensed content | 5 yrs | 3,040 | (3,040 | ) | — | 2,952 | (2,952 | ) | — | ||||||||||||||||||||||||
Service provider license | 9 yrs | 482 | (324 | ) | 158 | 467 | (262 | ) | 205 | ||||||||||||||||||||||||
Trademarks | 7 yrs | 5,230 | (1,480 | ) | 3,750 | 5,225 | (760 | ) | 4,465 | ||||||||||||||||||||||||
43,037 | (38,148 | ) | 4,889 | 42,474 | (33,377 | ) | 9,097 | ||||||||||||||||||||||||||
Other intangible assets amortized to operating expenses: | |||||||||||||||||||||||||||||||||
Emux Technology | 6 yrs | 1,368 | (1,368 | ) | — | 1,341 | (1,341 | ) | — | ||||||||||||||||||||||||
Noncompete agreements | 4 yrs | 5,452 | (4,742 | ) | 710 | 5,187 | (3,395 | ) | 1,792 | ||||||||||||||||||||||||
6,820 | (6,110 | ) | 710 | 6,528 | (4,736 | ) | 1,792 | ||||||||||||||||||||||||||
Total intangibles assets | $ | 49,857 | $ | (44,258 | ) | $ | 5,599 | $ | 49,002 | $ | (38,113 | ) | $ | 10,889 | |||||||||||||||||||
Total Expected Future Amortization Related to Intangible Assets | ' | ||||||||||||||||||||||||||||||||
As of December 31, 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 | ||||||||||||||||||||||||||||||
2014 | $ | 1,496 | $ | 508 | $ | 2,004 | |||||||||||||||||||||||||||
2015 | 1,021 | 202 | 1,223 | ||||||||||||||||||||||||||||||
2016 | 766 | — | 766 | ||||||||||||||||||||||||||||||
2017 | 714 | — | 714 | ||||||||||||||||||||||||||||||
2018 and thereafter | 892 | — | 892 | ||||||||||||||||||||||||||||||
$ | 4,889 | $ | 710 | $ | 5,599 | ||||||||||||||||||||||||||||
Goodwill by Reporting Unit | ' | ||||||||||||||||||||||||||||||||
Goodwill by geographic region is as follows: | |||||||||||||||||||||||||||||||||
December 31, 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 | — | — | 45 | 45 | — | — | 31 | 31 | |||||||||||||||||||||||||
Impairment Losses | — | — | — | — | — | — | (3,613 | ) | (3,613 | ) | |||||||||||||||||||||||
Balance as of period ended: | 18,075 | — | 1,410 | 19,485 | 18,075 | — | 1,365 | 19,440 | |||||||||||||||||||||||||
Goodwill | 42,946 | 25,354 | 24,296 | 92,596 | 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 | $ | — | $ | 1,410 | $ | 19,485 | $ | 18,075 | $ | — | $ | 1,365 | $ | 19,440 | |||||||||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Future Minimum Lease Payments under Non-Cancelable Operating Leases | ' | ||||
At December 31, 2013, future minimum lease payments under non-cancelable operating leases were as follows: | |||||
Minimum | |||||
Operating | |||||
Lease | |||||
Period Ending December 31, | Payments | ||||
2014 | $ | 3,915 | |||
2015 | 4,032 | ||||
2016 | 3,422 | ||||
2017 | 2,668 | ||||
2018 | 920 | ||||
2019 and thereafter | 982 | ||||
$ | 15,939 | ||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Warrants Outstanding | ' | ||||||||||||
Warrants outstanding at December 31, 2013 were as follows: | |||||||||||||
Number | |||||||||||||
Exercise | of Shares | ||||||||||||
Price | Outstanding | ||||||||||||
Term | per | Under | |||||||||||
Date of Issuance | (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) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 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 year ended December 31, 2013 is as follows: | |||||||||||||||||||||
Shares | |||||||||||||||||||||
Available | |||||||||||||||||||||
Balances at December 31, 2012 | 1,178 | ||||||||||||||||||||
Increase in authorized shares | 7,400 | ||||||||||||||||||||
Share-based awards granted (1) | (6,359 | ) | |||||||||||||||||||
Share-based awards canceled (2) | 2,671 | ||||||||||||||||||||
Balances at December 31, 2013 | 4,890 | ||||||||||||||||||||
-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 year ended December 31, 2013 is as follows: | |||||||||||||||||||||
Weighted | |||||||||||||||||||||
Number of | Average | ||||||||||||||||||||
Units | Grant Date | ||||||||||||||||||||
Outstanding | Fair Value | ||||||||||||||||||||
Awarded and unvested, December 31, 2012 | — | $ | — | ||||||||||||||||||
Granted | 2,747 | 2.9 | |||||||||||||||||||
Vested | — | — | |||||||||||||||||||
Forfeited | (169 | ) | 2.74 | ||||||||||||||||||
Awarded and unvested, December 31, 2013 | 2,578 | $ | 2.91 | ||||||||||||||||||
Restricted stock units expected to vest, December 31, 2013 | 1,919 | ||||||||||||||||||||
Stock Option Activity | ' | ||||||||||||||||||||
The following table summarizes the Company’s stock option activity: | |||||||||||||||||||||
Options Outstanding | |||||||||||||||||||||
Weighted | Weighted | ||||||||||||||||||||
Number | Average | Average | Aggregate | ||||||||||||||||||
of | Exercise | Contractual | Intrinsic | ||||||||||||||||||
Shares | Price | Term (Years) | Value | ||||||||||||||||||
Balances at December 31, 2010 | 6,928 | 2.02 | |||||||||||||||||||
Options granted | 4,925 | 3.66 | |||||||||||||||||||
Options canceled | (1,250 | ) | 2.5 | ||||||||||||||||||
Options exercised | (859 | ) | 1.9 | ||||||||||||||||||
Balances at December 31, 2011 | 9,744 | 2.8 | |||||||||||||||||||
Options granted | 3,399 | 3.84 | |||||||||||||||||||
Options canceled | (1,416 | ) | 3.89 | ||||||||||||||||||
Options exercised | (806 | ) | 1.68 | ||||||||||||||||||
Balances at December 31, 2012 | 10,921 | 3.07 | |||||||||||||||||||
Options granted | 2,937 | 2.7 | |||||||||||||||||||
Options canceled | (2,502 | ) | 3.65 | ||||||||||||||||||
Options exercised | (957 | ) | 1.35 | ||||||||||||||||||
Balances at December 31, 2013 | 10,399 | $ | 2.98 | 3.8 | $ | 11,928 | |||||||||||||||
Options vested and expected to vest at December 31, 2013 | 9,554 | $ | 2.98 | 3.69 | $ | 11,162 | |||||||||||||||
Options exercisable at December 31, 2013 | 5,636 | $ | 2.96 | 2.98 | $ | 7,457 | |||||||||||||||
Options Outstanding and Currently Exercisable by Exercise Price | ' | ||||||||||||||||||||
At December 31, 2013, the options outstanding and currently exercisable by exercise price were as follows: | |||||||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||||||
Weighted | |||||||||||||||||||||
Average | |||||||||||||||||||||
Remaining | Weighted | Weighted | |||||||||||||||||||
Range of | Contractual | Average | Average | ||||||||||||||||||
Exercise | Number | Life | Exercise | Number | Exercise | ||||||||||||||||
Prices | Outstanding | (in Years) | Price | Exercisable | Price | ||||||||||||||||
$0.42 - $ 1.21 | 1,688 | 1.95 | $ | 1.13 | 1,612 | $ | 1.12 | ||||||||||||||
$1.30 - $ 2.03 | 1,055 | 2.79 | 1.68 | 858 | 1.68 | ||||||||||||||||
$2.26 - $ 2.74 | 1,363 | 5.29 | 2.49 | 185 | 2.38 | ||||||||||||||||
$2.83 - $ 2.90 | 1,260 | 4.11 | 2.89 | 560 | 2.9 | ||||||||||||||||
$2.91 - $ 2.91 | 1,121 | 5.67 | 2.91 | 13 | 2.91 | ||||||||||||||||
$2.98 - $ 3.39 | 1,043 | 4.6 | 3.29 | 350 | 3.29 | ||||||||||||||||
$3.47 - $ 4.30 | 1,459 | 3.46 | 3.99 | 881 | 3.94 | ||||||||||||||||
$4.35 - $ 5.34 | 1,247 | 3.39 | 4.79 | 1,014 | 4.81 | ||||||||||||||||
$5.70 - $ 11.66 | 156 | 3.01 | 11.06 | 156 | 11.06 | ||||||||||||||||
$11.88 - $ 11.88 | 7 | 3.3 | 11.88 | 7 | 11.88 | ||||||||||||||||
$0.42 - $ 11.88 | 10,399 | 3.8 | $ | 2.98 | 5,636 | $ | 2.96 | ||||||||||||||
Schedule of Assumptions Used in Black-Scholes Valuation Model and Weighted Average Assumptions | ' | ||||||||||||||||||||
The Company recognizes stock-based compensation expense in accordance with ASC 718, and has 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. | |||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Dividend yield | — | % | — | % | — | % | |||||||||||||||
Risk-free interest rate | 0.82 | % | 0.6 | % | 1.06 | % | |||||||||||||||
Expected term (years) | 4 | 4 | 4.02 | ||||||||||||||||||
Expected volatility | 52 | % | 65 | % | 65 | % | |||||||||||||||
Stock-Based Compensation Expense | ' | ||||||||||||||||||||
The following table summarizes the consolidated stock-based compensation expense by line items in the consolidated statement of operations: | |||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Research and development | $ | 1,948 | $ | 3,491 | $ | 1,387 | |||||||||||||||
Sales and marketing | 303 | 386 | 351 | ||||||||||||||||||
General and administrative | 2,034 | 1,945 | 1,372 | ||||||||||||||||||
Total stock-based compensation expense | $ | 4,285 | $ | 5,822 | $ | 3,110 | |||||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Component of Loss Before Income Taxes By Tax Jurisdiction | ' | ||||||||||||||||||||||||
The components of loss before income taxes by tax jurisdiction were as follows: | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
United States | $ | (21,820 | ) | $ | (6,745 | ) | $ | (25,159 | ) | ||||||||||||||||
Foreign | (932 | ) | (15,708 | ) | 4,672 | ||||||||||||||||||||
Loss before income taxes | $ | (22,752 | ) | $ | (22,453 | ) | $ | (20,487 | ) | ||||||||||||||||
Components of Income Tax Provision | ' | ||||||||||||||||||||||||
The components of income tax provision were as follows: | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Current: | |||||||||||||||||||||||||
Federal | $ | — | $ | — | $ | — | |||||||||||||||||||
State | (4 | ) | (4 | ) | (2 | ) | |||||||||||||||||||
Foreign | 2,294 | 913 | (2,698 | ) | |||||||||||||||||||||
2,290 | 909 | (2,700 | ) | ||||||||||||||||||||||
Deferred: | |||||||||||||||||||||||||
Federal | — | 497 | 1,452 | ||||||||||||||||||||||
State | — | 64 | 211 | ||||||||||||||||||||||
Foreign | 553 | 524 | 423 | ||||||||||||||||||||||
553 | 1,085 | 2,086 | |||||||||||||||||||||||
Total: | |||||||||||||||||||||||||
Federal | — | 497 | 1,452 | ||||||||||||||||||||||
State | (4 | ) | 60 | 209 | |||||||||||||||||||||
Foreign | 2,847 | 1,437 | (2,275 | ) | |||||||||||||||||||||
$ | 2,843 | $ | 1,994 | $ | (614 | ) | |||||||||||||||||||
Difference Between Actual Rate and Federal Statutory Rate | ' | ||||||||||||||||||||||||
The difference between the actual rate and the federal statutory rate was as follows: | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Tax at federal statutory rate | 34 | % | 34 | % | 34 | % | |||||||||||||||||||
State tax, net of federal benefit | — | 0.3 | 1 | ||||||||||||||||||||||
Foreign rate differential | (0.1 | ) | (0.6 | ) | 1.4 | ||||||||||||||||||||
Research and development credit | 5.1 | — | 2.1 | ||||||||||||||||||||||
Withholding taxes | (2.1 | ) | (0.3 | ) | (0.1 | ) | |||||||||||||||||||
Goodwill impairment | — | (5.5 | ) | — | |||||||||||||||||||||
Stock-based compensation | (0.7 | ) | (2.7 | ) | (1.3 | ) | |||||||||||||||||||
Non-deductible intercompany bad debt | 0.3 | (16.5 | ) | — | |||||||||||||||||||||
FIN 48 interest and release | 14.6 | 10 | (0.4 | ) | |||||||||||||||||||||
Other | 1.6 | (0.7 | ) | (0.4 | ) | ||||||||||||||||||||
Valuation allowance | (40.2 | ) | (9.1 | ) | (39.3 | ) | |||||||||||||||||||
Effective tax rate | 12.5 | % | 8.9 | % | (3.0 | )% | |||||||||||||||||||
Deferred Tax Assets and Liabilities | ' | ||||||||||||||||||||||||
Deferred tax assets and liabilities consist of the following: | |||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||||||||||
US | Foreign | Total | US | Foreign | Total | ||||||||||||||||||||
Deferred tax assets: | |||||||||||||||||||||||||
Fixed assets | $ | 554 | $ | 1,685 | $ | 2,239 | $ | 571 | $ | 1,501 | $ | 2,072 | |||||||||||||
Net operating loss carryforwards | 36,299 | 10,552 | 46,851 | 32,795 | 12,207 | 45,002 | |||||||||||||||||||
Accruals, reserves and other | 7,761 | 208 | 7,969 | 3,605 | 121 | 3,726 | |||||||||||||||||||
Foreign tax credit | 6,348 | — | 6,348 | 6,086 | — | 6,086 | |||||||||||||||||||
Stock-based compensation | 3,311 | 56 | 3,367 | 2,723 | 58 | 2,781 | |||||||||||||||||||
Research and development credit | 4,245 | — | 4,245 | 2,839 | — | 2,839 | |||||||||||||||||||
Other | 3,088 | 10 | 3,098 | 2,873 | 11 | 2,884 | |||||||||||||||||||
Total deferred tax assets | $ | 61,606 | $ | 12,511 | $ | 74,117 | $ | 51,492 | $ | 13,898 | $ | 65,390 | |||||||||||||
Deferred tax liabilities: | |||||||||||||||||||||||||
Macrospace, MIG and iFone intangible assets | $ | — | $ | (94 | ) | $ | (94 | ) | $ | — | $ | (498 | ) | $ | (498 | ) | |||||||||
GameSpy intangible assets | — | — | — | (506 | ) | — | (506 | ) | |||||||||||||||||
Blammo intangible assets | — | (129 | ) | (129 | ) | — | (261 | ) | (261 | ) | |||||||||||||||
Griptonite intangible assets | — | — | — | (949 | ) | — | (949 | ) | |||||||||||||||||
Superscape intangible assets | (116 | ) | — | (116 | ) | — | — | — | |||||||||||||||||
Other | — | (9 | ) | (9 | ) | — | (9 | ) | (9 | ) | |||||||||||||||
Net deferred tax assets | 61,490 | 12,279 | 73,769 | 50,037 | 13,130 | 63,167 | |||||||||||||||||||
Less valuation allowance | (61,490 | ) | (12,294 | ) | (73,784 | ) | (50,037 | ) | (13,674 | ) | (63,711 | ) | |||||||||||||
Net deferred tax liability | $ | — | $ | (15 | ) | $ | (15 | ) | $ | — | $ | (544 | ) | $ | (544 | ) | |||||||||
Reconciliation of Total Amounts of Unrecognized Tax Benefits | ' | ||||||||||||||||||||||||
A reconciliation of the total amounts of unrecognized tax benefits was as follows: | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Beginning balance | $ | 4,626 | $ | 4,034 | |||||||||||||||||||||
Reductions of tax positions taken during previous years | (725 | ) | (631 | ) | |||||||||||||||||||||
Additions based on uncertain tax positions related to the current period | 1,149 | 410 | |||||||||||||||||||||||
Additions based on uncertain tax positions related to prior periods | 1,449 | 813 | |||||||||||||||||||||||
Cumulative translation adjustment | 39 | — | |||||||||||||||||||||||
Ending balance | $ | 6,538 | $ | 4,626 | |||||||||||||||||||||
Segment_Reporting_Tables
Segment Reporting (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 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: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Feature phone | $ | 5,319 | $ | 13,135 | $ | 31,091 | |||||||
Smartphone | 100,294 | 95,048 | 42,934 | ||||||||||
$ | 105,613 | $ | 108,183 | $ | 74,025 | ||||||||
Revenues in Geographic Regions | ' | ||||||||||||
The Company generates its revenues in the following geographic regions: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
United States of America | $ | 48,697 | $ | 57,816 | $ | 36,765 | |||||||
China | 10,985 | 5,827 | 4,007 | ||||||||||
Americas, excluding the USA | 5,430 | 5,051 | 6,528 | ||||||||||
EMEA | 22,820 | 22,381 | 20,621 | ||||||||||
APAC, excluding China | 17,681 | 17,108 | 6,104 | ||||||||||
$ | 105,613 | $ | 108,183 | $ | 74,025 | ||||||||
Long-Lived Assets by Geographical Area | ' | ||||||||||||
Property and equipment, net of accumulated depreciation and amortization, summarized by geographic location was as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Americas | $ | 4,108 | $ | 3,649 | |||||||||
EMEA | 899 | 1,092 | |||||||||||
APAC | 89 | 285 | |||||||||||
$ | 5,096 | $ | 5,026 | ||||||||||
Restructuring_Tables
Restructuring (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Restructuring Information | ' | ||||||||||||||||||||
Restructuring information as of December 31, 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 | ||||||||||||||||
Non cash adjustments | — | — | — | — | — | ||||||||||||||||
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 December 31, 2013 | $ | — | — | $ | — | $ | — | $ | — | ||||||||||||
Quarterly_Financial_Data_Table
Quarterly Financial Data (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
Unaudited Quarterly Consolidated Statement of Operation Data Restated | ' | ||||||||||||||||||||||||||||||||
The operating results for any quarter should not be considered indicative of results for any future period. | |||||||||||||||||||||||||||||||||
For the Three Months Ended | |||||||||||||||||||||||||||||||||
2012 | 2013 | ||||||||||||||||||||||||||||||||
March 31 | June 30 | September 30 | December 31 | March 31 | June 30 | September 30 | December 31 | ||||||||||||||||||||||||||
Revenues | $ | 26,509 | $ | 29,264 | $ | 26,099 | $ | 26,311 | $ | 24,605 | $ | 24,445 | $ | 21,722 | $ | 34,841 | |||||||||||||||||
Cost of revenues: | |||||||||||||||||||||||||||||||||
Platform commissions, royalties and other | 7,522 | 7,780 | 6,946 | 7,382 | 7,462 | 7,670 | 7,436 | 9,803 | |||||||||||||||||||||||||
Impairment of prepaid royalties and guarantees | — | — | — | — | — | — | (d) | 435 | — | ||||||||||||||||||||||||
Amortization of intangible assets | 753 | 932 | 1,025 | 1,073 | 1,074 | 1,078 | 1,082 | 1,004 | |||||||||||||||||||||||||
Total cost of revenues | 8,275 | 8,712 | 7,971 | 8,455 | 8,536 | 8,748 | 8,953 | 10,807 | |||||||||||||||||||||||||
Gross profit | 18,234 | 20,552 | 18,128 | 17,856 | 16,069 | 15,697 | 12,769 | 24,034 | |||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||||
Research and development | 15,033 | 15,697 | (a) | 9,979 | 13,566 | 11,630 | 11,224 | 11,405 | 12,618 | ||||||||||||||||||||||||
Sales and marketing | 4,375 | 4,701 | 5,545 | 6,272 | 5,008 | 5,143 | 5,361 | (e) | 10,608 | ||||||||||||||||||||||||
General and administrative | 4,366 | 4,556 | 2,466 | 3,356 | 3,919 | 3,852 | 3,617 | 4,162 | |||||||||||||||||||||||||
Amortization of intangible assets | 495 | 495 | 495 | 495 | 495 | 495 | 229 | 117 | |||||||||||||||||||||||||
Impairment of goodwill | — | — | (c) | 3,613 | — | — | — | — | — | ||||||||||||||||||||||||
Restructuring charge | — | 320 | 213 | 838 | 511 | 937 | — | — | |||||||||||||||||||||||||
Total operating expenses | 24,269 | 25,769 | 22,311 | 24,527 | 21,563 | 21,651 | 20,612 | 27,505 | |||||||||||||||||||||||||
Income (loss) from operations | (6,035 | ) | (5,217 | ) | (4,183 | ) | (6,671 | ) | (5,494 | ) | (5,954 | ) | (7,843 | ) | (3,471 | ) | |||||||||||||||||
Interest and other income (expense), net | (366 | ) | 210 | (455 | ) | 264 | 132 | 163 | (155 | ) | (130 | ) | |||||||||||||||||||||
Loss before income taxes | (6,401 | ) | (5,007 | ) | (4,638 | ) | (6,407 | ) | (5,362 | ) | (5,791 | ) | (7,998 | ) | (3,601 | ) | |||||||||||||||||
Income tax benefit (provision) | (440 | )(b) | 2,019 | (b) | 1,075 | (660 | ) | (135 | )(f) | 2,870 | 30 | 78 | |||||||||||||||||||||
Net loss | $ | (6,841 | ) | $ | (2,988 | ) | (3,563 | ) | $ | (7,067 | ) | $ | (5,497 | ) | $ | (2,921 | ) | $ | (7,968 | ) | $ | (3,523 | ) | ||||||||||
Net loss per share — basic and diluted | $ | (0.11 | ) | $ | (0.05 | ) | $ | (0.06 | ) | $ | (0.11 | ) | $ | (0.08 | ) | $ | (0.04 | ) | $ | (0.11 | ) | $ | (0.05 | ) | |||||||||
(a) | Changes in the research and development expense from $15,033 in the first quarter of 2012 and $9,979 in the third quarter of 2012 was due primarily to changes in the fair market value of contingent consideration issued to employees who are former shareholders of Blammo. | ||||||||||||||||||||||||||||||||
(b) | The income tax benefit of $2,019 in the second quarter of 2012 was due primarily to the release of uncertain tax positions in certain foreign jurisdictions due to the expiration of the statute of limitations. The income tax benefit of $1,075 in the third quarter of 2012 was due primarily to the release of the GameSpy valuation allowance upon acquisition and changes in pre-tax income in certain foreign entities. | ||||||||||||||||||||||||||||||||
(c) | The goodwill impairment charge of $3,613 in the third quarter of 2012 was due to a decline in the estimated fair value of the APAC reporting unit attributable to an accelerated decline in the local feature phone business and the recent restructuring of the Company’s operations in the region. | ||||||||||||||||||||||||||||||||
(d) | The impairment of prepaid royalties and guarantees charge of $435 in the third quarter of 2013 was primarily due to a prepaid royalty impairment charge recorded for two of our third-party publishing titles. | ||||||||||||||||||||||||||||||||
(e) | Change in sales and marketing expense from $5,008 in the first quarter of 2013 to $10,608 in the fourth quarter of 2013 was due primarily to higher marketing expenses associated with promoting Deer Hunter 2014. | ||||||||||||||||||||||||||||||||
(f) | The income tax benefit of $2,870 in the second quarter of 2013 was due primarily to the release of uncertain tax positions due to the expiration of certain statutes of limitations in certain foreign jurisdictions. |
Company_and_Summary_of_Signifi
Company and Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
Organization And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Accumulated deficit | $252,211 | ' | ' | ' | $232,302 | ' | ' | ' | $252,211 | $232,302 | ' | ||
Net loss | ' | ' | ' | ' | ' | ' | ' | ' | 19,909 | ' | ' | ||
Estimated average useful life of paying user | ' | ' | ' | ' | ' | ' | ' | ' | '3 months | ' | ' | ||
Minimum guaranteed liability | 433 | ' | ' | ' | 0 | ' | ' | ' | 433 | 0 | ' | ||
Impairment charges to cost of revenues | 0 | 435 | 0 | [1] | 0 | 0 | 0 | 0 | 0 | 435 | 0 | 531 | |
Goodwill impairment charges | 0 | 0 | 0 | 0 | 0 | 3,613 | 0 | [2] | 0 | 0 | 3,613 | 0 | |
Capitalized internal use software costs | ' | ' | ' | ' | ' | ' | ' | ' | 249 | 1,598 | 1,787 | ||
Amortization of capitalized software costs | ' | ' | ' | ' | ' | ' | ' | ' | 1,097 | 1,014 | 507 | ||
Advertising expense | ' | ' | ' | ' | ' | ' | ' | ' | $18,308 | $12,124 | $6,114 | ||
Capitalized software costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Organization And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Intangible assets estimated useful life | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ||
Minimum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Organization And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Intangible assets estimated useful life | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' | ||
Maximum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Organization And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Intangible assets estimated useful life | ' | ' | ' | ' | ' | ' | ' | ' | '9 years | ' | ' | ||
[1] | The impairment of prepaid royalties and guarantees charge of $435 in the third quarter of 2013 was primarily due to a prepaid royalty impairment charge recorded for two of our third-party publishing titles. | ||||||||||||
[2] | The goodwill impairment charge of $3,613 in the third quarter of 2012 was due to a decline in the estimated fair value of the APAC reporting unit attributable to an accelerated decline in the local feature phone business and the recent restructuring of the Company's operations in the region. |
Revenues_from_Customers_or_Agg
Revenues from Customers or Aggregate Purchases through Digital Storefronts in Excess of Ten Percent of Revenues (Detail) (Revenues from customers) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Apple | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Concentration risk percentage from customers | 50.10% | 41.30% | 26.50% |
' | ' | ' | |
Concentration Risk [Line Items] | ' | ' | ' |
Concentration risk percentage from customers | 19.20% | 20.30% | 0.00% |
Tapjoy | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Concentration risk percentage from customers | 0.00% | 10.70% | 11.60% |
The_Company_and_Summary_of_Sig3
The Company and Summary of Significant Accounting Policies - (Concentration of Credit Risk) (Detail) (Accounts Receivable) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Apple | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration risk percentage from customers | 46.30% | 44.30% |
Ad Colony | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration risk percentage from customers | 11.10% | ' |
PlayHaven | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration risk percentage from customers | ' | 13.20% |
' | ' | |
Concentration Risk [Line Items] | ' | ' |
Concentration risk percentage from customers | 11.10% | 10.80% |
Depreciation_and_Amortization_
Depreciation and Amortization Periods for Company's Property and Equipment (Detail) | 12 Months Ended |
Dec. 31, 2013 | |
Computer Equipment | ' |
Property Plant and Equipment Estimated Useful Lives [Line Items] | ' |
Property plant and Equipment useful life | '3 years |
Computer Software | ' |
Property Plant and Equipment Estimated Useful Lives [Line Items] | ' |
Property plant and Equipment useful life | '3 years |
Furniture and Fixtures | ' |
Property Plant and Equipment Estimated Useful Lives [Line Items] | ' |
Property plant and Equipment useful life | '3 years |
Leasehold Improvements | ' |
Property Plant and Equipment Estimated Useful Lives [Line Items] | ' |
Property plant and Equipment useful life, description | 'Shorter of the estimated useful life or remaining term of lease |
Computation_of_Net_Loss_Per_Sh
Computation of Net Loss Per Share (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Earnings Per Share [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net loss | ($3,523) | ($7,968) | ($2,921) | ($5,497) | ($7,067) | ($3,563) | ($2,988) | ($6,841) | ($19,909) | ($20,459) | ($21,101) |
Basic and diluted shares: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average common shares outstanding | ' | ' | ' | ' | ' | ' | ' | ' | 71,543 | 64,932 | 57,834 |
Weighted average unvested common shares subject to restrictions | ' | ' | ' | ' | ' | ' | ' | ' | -90 | -614 | -316 |
Weighted average shares used to compute basic and diluted net loss per share | ' | ' | ' | ' | ' | ' | ' | ' | 71,453 | 64,318 | 57,518 |
Net loss per share - basic and diluted | ($0.05) | ($0.11) | ($0.04) | ($0.08) | ($0.11) | ($0.06) | ($0.05) | ($0.11) | ($0.28) | ($0.32) | ($0.37) |
AntiDilutive_Securities_Exclud
Anti-Dilutive Securities Excluded from Computation of Diluted Net Loss Per Share of Common Stock (Detail) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Weighted average options to purchase common stock | 14,982 | 15,122 | 13,772 |
Warrants to purchase common stock | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Weighted average options to purchase common stock | 3,310 | 4,187 | 5,344 |
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 | 614 | 316 |
Options to purchase common stock | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Weighted average options to purchase common stock | 10,646 | 10,321 | 8,112 |
RSUs | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Weighted average options to purchase common stock | 936 | 0 | 0 |
Business_Combinations_Addition
Business Combinations - Additional Information (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Aug. 01, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Aug. 02, 2012 | Dec. 31, 2011 | Aug. 02, 2012 | Aug. 02, 2012 | Aug. 01, 2011 | Aug. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Nov. 02, 2012 | Sep. 30, 2011 | Aug. 02, 2011 | Aug. 31, 2011 | Aug. 31, 2011 | 16-May-13 | Aug. 01, 2011 | Aug. 31, 2011 | Dec. 31, 2011 | Aug. 01, 2011 | Aug. 01, 2011 |
In Thousands, except Per Share data, unless otherwise specified | Blammo Titles, Content and Technology | Maximum | Minimum | Game Spy Industries | Game Spy Industries | Game Spy Industries | Game Spy Industries | Griptonite | Griptonite | Griptonite | Griptonite | Griptonite | Griptonite | Griptonite | Griptonite | Griptonite | Griptonite | Griptonite | Blammo | Blammo | Blammo | Blammo | Blammo | Blammo | |||
Maximum | Minimum | sqft | sqft | Maximum | Minimum | Maximum | Minimum | ||||||||||||||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business acquisition | ' | ' | ' | ' | ' | ' | 2-Aug-12 | ' | ' | ' | ' | 2-Aug-11 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1-Aug-11 | ' | ' | ' | ' |
Shares of the Company's common stock | ' | ' | ' | ' | ' | ' | 600 | ' | ' | ' | ' | 6,106 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 742 | 1,000 | 1,000 | ' | ' | ' |
Common stock, value | ' | ' | ' | ' | ' | ' | $2,796 | ' | ' | ' | ' | $28,088 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $5,070 | ' | ' | ' | ' |
Closing price of the Company's common stock | $3.88 | ' | ' | ' | ' | ' | $4.66 | ' | ' | ' | ' | $4.60 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $5.07 | ' | ' | ' | ' |
Shares held in Escrow | ' | ' | ' | ' | ' | ' | 90 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term for Storage of Infrastructure | ' | ' | ' | ' | ' | ' | '2 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Measurement periods from acquisition date | ' | ' | ' | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intangible assets estimated useful life | ' | ' | ' | '2 years | '9 years | '1 year | ' | ' | '3 years | '2 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | '3 months | ' | ' | ' | ' | '4 years | '1 year |
Deferred tax liabilities | ' | ' | ' | ' | ' | ' | 570 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 416 | ' | ' | ' | ' |
Residual value of goodwill | 19,485 | 19,440 | 21,991 | ' | ' | ' | 1,096 | ' | ' | ' | ' | 12,670 | ' | ' | ' | ' | ' | ' | 12,670 | ' | ' | ' | 4,309 | ' | ' | ' | ' |
Shares released from Escrow | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 600 | ' | ' | ' | ' | ' | 100 | ' | ' | ' | ' |
Issue additional shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,302 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,313 | ' | ' | ' | ' |
Area of Griptonite Lease covers | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 18,000 | ' | ' | 54,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current fair value of the unfavorable operating lease obligation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | 477 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value assumptions income approach discount rate | ' | ' | ' | ' | ' | ' | 14.00% | ' | ' | ' | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | ' | ' | ' | ' |
IPR&D costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 300 | ' | ' | ' | ' |
Net book value of deferred revenue | ' | ' | ' | ' | ' | ' | 1,684 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred Revenue, Recognized on a straight-line basis | ' | ' | ' | ' | ' | ' | '24 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisition related entities contribution to the company's net revenue | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | 825 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' |
Acquisition related entities contribution to the company's net losses | ' | ' | ' | ' | ' | ' | ' | $0 | ' | ' | ' | ' | $9,511 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | ' | ' |
Fair_Values_of_Assets_Acquired
Fair Values of Assets Acquired and Liabilities Assumed (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Aug. 02, 2012 | Aug. 31, 2011 | Aug. 02, 2011 | Aug. 01, 2011 | Aug. 02, 2012 | Aug. 02, 2012 | Aug. 02, 2011 | Aug. 01, 2011 | Aug. 02, 2011 | Aug. 01, 2011 |
In Thousands, unless otherwise specified | Game Spy Industries | Griptonite | Griptonite | Blammo | Carrier contract and related relationships | Titles, content and technology | Non-compete agreements | Non-compete agreements | Developed Technology | In-process research and development | |||
Game Spy Industries | Game Spy Industries | Griptonite | Blammo | Griptonite | Blammo | ||||||||
Assets acquired: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash | ' | ' | ' | $913 | ' | $10,300 | $69 | ' | ' | ' | ' | ' | ' |
Accounts receivable | ' | ' | ' | 1,695 | ' | 1,558 | ' | ' | ' | ' | ' | ' | ' |
Prepaid and other current assets | ' | ' | ' | ' | ' | 1,028 | ' | ' | ' | ' | ' | ' | ' |
Property and equipment | ' | ' | ' | 485 | ' | 796 | ' | ' | ' | ' | ' | ' | ' |
Other long term assets | ' | ' | ' | ' | ' | 33 | ' | ' | ' | ' | ' | ' | ' |
Intangible assets: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intangible assets | ' | ' | ' | ' | ' | ' | ' | 250 | 1,300 | 3,200 | 1,400 | 2,500 | 300 |
Goodwill | 19,485 | 19,440 | 21,991 | 1,096 | 12,670 | 12,670 | 4,309 | ' | ' | ' | ' | ' | ' |
Total assets acquired | ' | ' | ' | 5,739 | ' | 32,085 | 6,078 | ' | ' | ' | ' | ' | ' |
Liabilities assumed: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other accrued liabilities | ' | ' | ' | -689 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accounts payable and other accrued liabilities | ' | ' | ' | ' | ' | -1,226 | -287 | ' | ' | ' | ' | ' | ' |
Deferred revenue | ' | ' | ' | -1,684 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred tax liability and other long-term liabilities | ' | ' | ' | ' | ' | -2,771 | ' | ' | ' | ' | ' | ' | ' |
Other long-term liabilities | ' | ' | ' | ' | ' | ' | -721 | ' | ' | ' | ' | ' | ' |
Deferred tax liability | ' | ' | ' | -570 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total liabilities | ' | ' | ' | -2,943 | ' | -3,997 | -1,008 | ' | ' | ' | ' | ' | ' |
Net acquired assets | ' | ' | ' | $2,796 | ' | $28,088 | $5,070 | ' | ' | ' | ' | ' | ' |
Summary_of_Pro_forma_Financial
Summary of Pro forma Financial Information (Detail) (USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2011 |
Business Acquisition, Pro Forma Information [Line Items] | ' |
Total pro forma revenues | $84,704 |
Pro forma net loss | ($21,256) |
Pro forma net loss per share - basic and diluted | ($0.35) |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | |||||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | 16-May-13 | Aug. 01, 2011 | Aug. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Aug. 01, 2011 | Aug. 01, 2011 | Aug. 01, 2011 | Aug. 01, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 |
Blammo | Blammo | Blammo | Blammo | Blammo | Blammo | Blammo | Blammo | Blammo | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 1 | Level 1 | ||||
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 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $28,496 | $22,325 |
Common stock, shares issued | ' | ' | ' | 742 | 1,000 | 1,000 | ' | ' | 417 | 833 | 1,154 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of shares issued | ' | ' | ' | ' | 5,070 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,263 | ' | ' |
Estimated fair value of non-employee contingent liability | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 68 | 412 | ' | ' | ' | ' | ' | ' | ' |
Change in fair value of non-employee contingent liabilities | 7 | 167 | -61 | ' | ' | ' | 7 | 167 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of contingent liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 427 | 2,512 | ' | ' | ' | ' | ' | ' | ' |
Fair value of contingent consideration recognized as a current liability | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $329 | $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 | ' | ' | ' | ' | 25.00% | ' | ' | ' | ' | ' | ' | ' | 35.00% | 35.00% | ' | ' | ' | ' | ' | ' | ' |
Expected volatility percent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35.00% | 38.00% | ' | ' | ' | ' | ' | ' | ' |
Expected risk-free interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.07% | 0.05% | 0.19% | 0.28% | ' | ' | ' |
Contingent_Consideration_Net_R
Contingent Consideration Net Revenue Performance Targets (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 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 $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' |
Accounts receivable | $18,764 | $12,313 | ' | ' |
Less: Allowance for doubtful accounts | -459 | -432 | -800 | -504 |
Accounts receivable, net | $18,305 | $11,881 | ' | ' |
Allowance_for_Doubtful_Account
Allowance for Doubtful Accounts (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Balance at Beginning of Year | $432 | $800 | $504 |
Additions | 51 | 202 | 390 |
Deductions | 24 | 570 | 94 |
Balance at End of Year | $459 | $432 | $800 |
Balance_Sheet_Components_Addit
Balance Sheet Components - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Balance Sheet Components [Line Items] | ' | ' | ' |
Accounts receivable write-offs | $0 | $0 | $0 |
Accounts receivable recoveries | 0 | 0 | 0 |
Depreciation and amortization | $2,707 | $2,368 | $1,846 |
Prepaid_Expenses_and_Other_Det
Prepaid Expenses and Other (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Prepaid Expense and Other Assets, Current [Abstract] | ' | ' |
Deferred platform commission fees | $4,516 | $2,680 |
Prepaid royalties | 740 | 0 |
Prepaids and other | 2,407 | 2,487 |
Prepaid expenses and other | $7,663 | $5,167 |
Property_and_Equipment_Detail
Property and Equipment (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Computer equipment | $6,134 | $6,255 |
Furniture and fixtures | 862 | 566 |
Software | 6,290 | 6,304 |
Leasehold improvements | 2,768 | 2,227 |
Property, Plant and Equipment, Gross, Total | 16,054 | 15,352 |
Less: Accumulated depreciation and amortization | -10,958 | -10,326 |
Property and equipment, net | $5,096 | $5,026 |
Other_LongTerm_Liabilities_Det
Other Long-Term Liabilities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Liabilities, Noncurrent [Abstract] | ' | ' |
Uncertain tax position obligations | $890 | $3,859 |
Deferred income tax liability | 122 | 647 |
Contingent earnout liability | 98 | 657 |
Deferred rent and other | 1,247 | 1,027 |
Total other long-term liabilities | $2,357 | $6,190 |
Carrying_Amounts_and_Accumulat
Carrying Amounts and Accumulated Amortization Expense of Acquired Intangible Assets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Apr. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 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 | Non-compete agreements | Non-compete agreements | ||||||||
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) | $49,857 | $49,002 | ' | $43,037 | $42,474 | $12,851 | $12,781 | $1,283 | $1,257 | $211 | $207 | $19,940 | $19,585 | $3,040 | $2,952 | $482 | $467 | $5,230 | $5,225 | $6,820 | $6,528 | $1,368 | $1,341 | $5,452 | $5,187 |
Accumulated Amortization Expense (Including Impact of Foreign Exchange) | -44,258 | -38,113 | ' | -38,148 | -33,377 | -12,165 | -11,518 | -1,283 | -1,257 | -211 | -207 | -19,645 | -16,421 | -3,040 | -2,952 | -324 | -262 | -1,480 | -760 | -6,110 | -4,736 | -1,368 | -1,341 | -4,742 | -3,395 |
Total intangible assets | $5,599 | $10,889 | ' | $4,889 | $9,097 | $686 | $1,263 | $0 | $0 | $0 | $0 | $295 | $3,164 | $0 | $0 | $158 | $205 | $3,750 | $4,465 | $710 | $1,792 | $0 | $0 | $710 | $1,792 |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 1 Months Ended | 0 Months Ended | |||||||||||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Apr. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2011 | Aug. 01, 2011 | Dec. 31, 2011 | |
Griptonite, Blammo and GameSpy Goodwill | Griptonite, Blammo and GameSpy Goodwill | 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 | Trademarks | GameSpy Intangible Assets | Griptonite and Blammo Intangible Assets | Blammo Titles, Content and Technology | Blammo Titles, Content and Technology | |||||||||||||
Goodwill And Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Acquired intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,550 | $7,400 | ' | $300 | |
Intangible assets estimated useful life | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '7 years | ' | ' | '2 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 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,238 | 3,783 | 5,447 | ' | ' | ' | ' | ' | ' | ' | ' | |
Intangible amortization expense, operating expenses | 117 | 229 | 495 | 495 | 495 | 495 | 495 | 495 | 1,336 | 1,980 | 825 | ' | ' | ' | ' | ' | 1,336 | 1,980 | 825 | ' | ' | ' | ' | ' | |
Intangible assets, impairment charges | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Goodwill, Acquired during the year | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 1,031 | ' | 1,031 | 17,044 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Number of reporting units | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Goodwill impairment charge | $0 | $0 | $0 | $0 | $0 | $3,613 | $0 | [1] | $0 | $0 | $3,613 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
[1] | The goodwill impairment charge of $3,613 in the third quarter of 2012 was due to a decline in the estimated fair value of the APAC reporting unit attributable to an accelerated decline in the local feature phone business and the recent restructuring of the Company's operations in the region. |
Total_Expected_Future_Amortiza
Total Expected Future Amortization Related to Intangible Assets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ' | ' |
2014 | $2,004 | ' |
2015 | 1,223 | ' |
2016 | 766 | ' |
2017 | 714 | ' |
2018 and thereafter | 892 | ' |
Total intangible assets | 5,599 | 10,889 |
Intangible assets amortized to cost of revenues | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
2014 | 1,496 | ' |
2015 | 1,021 | ' |
2016 | 766 | ' |
2017 | 714 | ' |
2018 and thereafter | 892 | ' |
Total intangible assets | 4,889 | 9,097 |
Other intangible assets amortized to operating expenses | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
2014 | 508 | ' |
2015 | 202 | ' |
2016 | 0 | ' |
2017 | 0 | ' |
2018 and thereafter | 0 | ' |
Total intangible assets | $710 | $1,792 |
Goodwill_by_Reporting_Unit_Det
Goodwill by Reporting Unit (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Goodwill [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Goodwill, Beginning | ' | ' | ' | $92,551 | ' | ' | ' | $91,489 | $92,551 | $91,489 | ' | |
Goodwill, Accumulated Impairment Loss, Beginning Balance | ' | ' | ' | -73,111 | ' | ' | ' | -69,498 | -73,111 | -69,498 | ' | |
Goodwill, Net Beginning Balance | ' | ' | ' | 19,440 | ' | ' | ' | 21,991 | 19,440 | 21,991 | ' | |
Goodwill, Acquired during the year | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 1,031 | ' | |
Effects of Foreign Currency Exchange | ' | ' | ' | ' | ' | ' | ' | ' | 45 | 31 | ' | |
Impairment of goodwill | 0 | 0 | 0 | 0 | 0 | -3,613 | 0 | [1] | 0 | 0 | -3,613 | 0 |
Goodwill, Ending | 92,596 | ' | ' | ' | 92,551 | ' | ' | ' | 92,596 | 92,551 | 91,489 | |
Goodwill, Accumulated Impairment Loss, Ending Balance | -73,111 | ' | ' | ' | -73,111 | ' | ' | ' | -73,111 | -73,111 | -69,498 | |
Goodwill, Net Ending Balance | 19,485 | ' | ' | ' | 19,440 | ' | ' | ' | 19,485 | 19,440 | 21,991 | |
Americas | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Goodwill [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Goodwill, Beginning | ' | ' | ' | 42,946 | ' | ' | ' | 41,915 | 42,946 | 41,915 | ' | |
Goodwill, Accumulated Impairment Loss, Beginning Balance | ' | ' | ' | -24,871 | ' | ' | ' | -24,871 | -24,871 | -24,871 | ' | |
Goodwill, Net Beginning Balance | ' | ' | ' | 18,075 | ' | ' | ' | 17,044 | 18,075 | 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 | 42,946 | ' | |
Goodwill, Accumulated Impairment Loss, Ending Balance | -24,871 | ' | ' | ' | -24,871 | ' | ' | ' | -24,871 | -24,871 | ' | |
Goodwill, Net Ending Balance | 18,075 | ' | ' | ' | 18,075 | ' | ' | ' | 18,075 | 18,075 | ' | |
EMEA | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Goodwill [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Goodwill, Beginning | ' | ' | ' | 25,354 | ' | ' | ' | 25,354 | 25,354 | 25,354 | ' | |
Goodwill, Accumulated Impairment Loss, Beginning Balance | ' | ' | ' | -25,354 | ' | ' | ' | -25,354 | -25,354 | -25,354 | ' | |
Goodwill, Net Beginning Balance | ' | ' | ' | 0 | ' | ' | ' | 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 | 25,354 | ' | |
Goodwill, Accumulated Impairment Loss, Ending Balance | -25,354 | ' | ' | ' | -25,354 | ' | ' | ' | -25,354 | -25,354 | ' | |
Goodwill, Net Ending Balance | 0 | ' | ' | ' | 0 | ' | ' | ' | 0 | 0 | ' | |
APAC | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Goodwill [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Goodwill, Beginning | ' | ' | ' | 24,251 | ' | ' | ' | 24,220 | 24,251 | 24,220 | ' | |
Goodwill, Accumulated Impairment Loss, Beginning Balance | ' | ' | ' | -22,886 | ' | ' | ' | -19,273 | -22,886 | -19,273 | ' | |
Goodwill, Net Beginning Balance | ' | ' | ' | 1,365 | ' | ' | ' | 4,947 | 1,365 | 4,947 | ' | |
Goodwill, Acquired during the year | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ' | |
Effects of Foreign Currency Exchange | ' | ' | ' | ' | ' | ' | ' | ' | 45 | 31 | ' | |
Impairment of goodwill | ' | ' | ' | ' | ' | ' | ' | ' | 0 | -3,613 | ' | |
Goodwill, Ending | 24,296 | ' | ' | ' | 24,251 | ' | ' | ' | 24,296 | 24,251 | ' | |
Goodwill, Accumulated Impairment Loss, Ending Balance | -22,886 | ' | ' | ' | -22,886 | ' | ' | ' | -22,886 | -22,886 | ' | |
Goodwill, Net Ending Balance | $1,410 | ' | ' | ' | $1,365 | ' | ' | ' | $1,410 | $1,365 | ' | |
[1] | The goodwill impairment charge of $3,613 in the third quarter of 2012 was due to a decline in the estimated fair value of the APAC reporting unit attributable to an accelerated decline in the local feature phone business and the recent restructuring of the Company's operations in the region. |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Apr. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
500 Howard Street Sublease | 500 Howard Street Sublease | New Griptonite Lease | New Griptonite Lease | Developer Commitments | |||||
sqft | sqft | ||||||||
Commitments and Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Rent expense | ' | $3,380 | $2,704 | $2,237 | ' | ' | ' | ' | ' |
Deferred rent balance | 1,131 | 1,131 | 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 | ' | ' |
Area of lease covers | ' | ' | ' | ' | 29,000 | ' | ' | 18,000 | ' |
Letter of credit to secure lease obligations | ' | ' | ' | ' | ' | 1,230 | ' | 500 | ' |
Lease optional termination date | ' | ' | ' | ' | ' | ' | 30-Sep-17 | ' | ' |
Future minimum royalty payments | 698 | 698 | ' | ' | ' | ' | ' | ' | ' |
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 | ' | ' | ' | ' | ' | ' |
Provisions recorded for indemnification agreements | ' | $0 | $0 | ' | ' | ' | ' | ' | ' |
Date of dismissal of complaint against the company with prejudice | 31-Jan-14 | ' | ' | ' | ' | ' | ' | ' | ' |
Future_Minimum_Lease_Payments_
Future Minimum Lease Payments under Non-Cancelable Operating Leases (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Minimum Operating Lease Payments | ' |
2014 | $3,915 |
2015 | 4,032 |
2016 | 3,422 |
2017 | 2,668 |
2018 | 920 |
2019 and thereafter | 982 |
Operating Leases, Future Minimum Payments, Current | $15,939 |
Stockholders_Equity_Additional
Stockholders' Equity - Additional Information (Detail) (USD $) | 12 Months Ended | 1 Months Ended | 9 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Jul. 31, 2013 | Jan. 31, 2011 | Sep. 30, 2013 | Jul. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Aug. 02, 2012 | Aug. 31, 2011 | 16-May-13 | Aug. 01, 2011 | Aug. 31, 2011 |
MGM Warrants | MGM Interactive Inc. | Public Offerings | Public Offerings | Warrant To Purchase Common Stock | Warrant Expires On Fifth Anniversary | Common Stock | Common Stock | Common Stock | Game Spy Industries | Griptonite | Blammo | Blammo | Blammo | ||||
MGM Interactive Inc. | MGM Interactive Inc. | ||||||||||||||||
Stockholders Equity Note Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, shares authorized | 250,000 | 250,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reserved shares of common stock for future issuance | 23,100 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, shares authorized | 5,000 | 5,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, shares issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 600 | 6,106 | 742 | 1,000 | 1,000 |
Issued shares as part of earnout consideration | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $742 | ' | ' |
Common stock, shares issued | 78,464 | 66,022 | ' | ' | ' | 8,415 | 7,245 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Public offering price | $0.00 | $0.00 | ' | ' | ' | $2.05 | $2.10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from issuance of common stock | 13,985 | 0 | 15,661 | ' | ' | 15,661 | 13,985 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
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% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected term (years) | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected risk-free interest rate | ' | ' | ' | 1.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividend yield | ' | ' | ' | 0.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-cash warrant related expense in cost of revenues | 427 | 0 | 0 | 427 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of common stock upon exercise of warrants, shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,886 | 413 | 2,475 | ' | ' | ' | ' | ' |
Proceeds from exercise of stock warrants and issuance of common stock | $4,329 | $619 | $3,711 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants_Outstanding_Detail
Warrants Outstanding (Detail) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 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 $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | ||||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Jan. 31, 2007 | Jan. 31, 2009 | Jan. 31, 2009 | Oct. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
Shares Vested Year One | Shares Vested Monthly After Year One | 2007 Employee Stock Purchase Plan | 2007 Employee Stock Purchase Plan | 2007 Employee Stock Purchase Plan | 2007 Employee Stock Purchase Plan | 2007 Employee Stock Purchase Plan | 2008 Equity Inducement Plan | 2007 Equity Incentive Plan | Incentive Stock Option | Incentive Stock Option | Nonqualified Stock Options | Nonqualified Stock Options | Stock Options Granted Prior To October Twenty Five, Two Thousand Seven | Stock Options Granted After To October Twenty Five Two Thousand Seven | RSUs | ||||
Offering period that commenced on February 15, 2009 and ended on August 14, 2009 | Offering period thereafter | Offering period that commenced on August 22, 2011 and for each offering period thereafter | Minimum | Minimum | |||||||||||||||
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 | ' | ' | ' | ' | ' | ' | ' |
Exercise price of non qualified stock options as percent of fair market value of company's common stock, minimum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | 100.00% | ' | ' | ' | ' | ' | ' | ' |
Exercise price of options percentage of fair market value of common stock on grant date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | 85.00% | ' | ' | ' |
Exercise price minimum percentage for option granted to 10% of stockholder | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 110.00% | ' | 110.00% | ' | ' | ' | ' |
Stock options granted to employees vesting percentage | ' | ' | ' | 25.00% | 2.08% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% |
Stock options granted to employees vesting period | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock option granted contractual term | '6 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | '6 years | ' |
Number of shares available for grant | ' | ' | ' | ' | ' | 924 | 667 | ' | ' | ' | 396 | 4,494 | ' | ' | ' | ' | ' | ' | ' |
Percentage of outstanding shares reserved for grant increase during each January 1 for the first eight calendar years | ' | ' | ' | ' | ' | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum amount of shares that may be issued over the term of the plan | ' | ' | ' | ' | ' | 5,333 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum Offering Period Share Amount | ' | ' | ' | ' | ' | ' | ' | 500 | 200 | 300 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Quoted closing price of Company's common stock | $3.88 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total intrinsic value of awards exercised | $1,886 | $2,114 | $2,065 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-average fair value of stock options granted | $1.10 | $1.90 | $1.81 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
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. |
Stock-based compensation contingent consideration at fair value (includes unvested portion of the liability) | 368 | 2,242 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation (benefit) expense recorded as contingent liability | 171 | 1,549 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash proceed from option exercise, net | 1,295 | 1,357 | 1,633 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income tax benefit from stock option exercises | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation expense | $6,047 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $4,998 |
Unrecognized compensation expense recognized over weighted average period | '2 years 7 months 17 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '4 years |
Calculation_of_Sharebased_Awar
Calculation of Share-based Awards Available for Grant (Detail) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | |
Share-based awards granted | -2,937 | -3,399 | -4,925 | |
Share-based awards canceled | 2,502 | 1,416 | 1,250 | |
2007 Equity Incentive and 2008 Equity Inducement Plans | ' | ' | ' | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | |
Shares available, beginning balances | 1,178 | ' | ' | |
Increase in authorized shares | 7,400 | ' | ' | |
Share-based awards granted | -6,359 | [1] | ' | ' |
Share-based awards canceled | 2,671 | [2] | ' | ' |
Shares available, ending balances | 4,890 | ' | ' | |
[1] | (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] | (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. |
Calculation_of_Sharebased_Awar1
Calculation of Share-based Awards Available for Grant (Parenthetical) (Detail) (2007 Equity Incentive and 2008 Equity Inducement Plans) | 12 Months Ended |
Dec. 31, 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) (USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Options vested and expected to vest, number of shares | 9,554 |
RSUs | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Awarded and unvested, Number of Units Outstanding, beginning balance | 0 |
Granted, Number of Units Outstanding | 2,747 |
Vested, Number of Units Outstanding | 0 |
Forfeited, Number of Units Outstanding | -169 |
Awarded and unvested, Number of Units Outstanding, ending balance | 2,578 |
Options vested and expected to vest, number of shares | 1,919 |
Awarded and unvested, Weighted Average Grant Date Fair Value, beginning balance | $0 |
Granted, Weighted Average Grant Date Fair Value | $2.90 |
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 | $2.91 |
Stock_Option_Activity_Detail
Stock Option Activity (Detail) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Number of shares, beginning balances | 10,921 | 9,744 | 6,928 |
Options granted, number of shares | 2,937 | 3,399 | 4,925 |
Options canceled, number of shares | -2,502 | -1,416 | -1,250 |
Options exercised, number of shares | -957 | -806 | -859 |
Number of shares, ending balances | 10,399 | 10,921 | 9,744 |
Weighted average exercise price, beginning balances | $3.07 | $2.80 | $2.02 |
Options vested and expected to vest, number of shares | 9,554 | ' | ' |
Options granted, weighted average exercise price | $2.70 | $3.84 | $3.66 |
Options exercisable, number of shares | 5,636 | ' | ' |
Options canceled | $3.65 | $3.89 | $2.50 |
Options exercised | $1.35 | $1.68 | $1.90 |
Weighted average exercise price, ending balances | $2.98 | $3.07 | $2.80 |
Options vested and expected to vest | $2.98 | ' | ' |
Options exercisable | $2.96 | ' | ' |
Weighted average contractual term, options outstanding | '3 years 9 months 18 days | ' | ' |
Weighted average contractual term, options vested and expected | '3 years 8 months 9 days | ' | ' |
Weighted average contractual term, Options exercisable | '2 years 11 months 23 days | ' | ' |
Aggregate intrinsic value, options outstanding | $11,928 | ' | ' |
Aggregate intrinsic value, Options vested and expected to vest | 11,162 | ' | ' |
Aggregate intrinsic value, options exercisable | $7,457 | ' | ' |
Options_Outstanding_and_Curren
Options Outstanding and Currently Exercisable by Exercise Price (Detail) (USD $) | 12 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Number of option outstanding | 10,399 | 10,921 | 9,744 | 6,928 |
Weighted average remaining contractual life (in years) | '3 years 9 months 18 days | ' | ' | ' |
Options Outstanding, weighted average exercise price | $2.98 | $3.07 | $2.80 | $2.02 |
Options exercisable, weighted-average exercise price | $2.96 | ' | ' | ' |
Options exercisable Number of Exercisable | 5,636 | ' | ' | ' |
$ 0.42 - $ 1.21 | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Range of Exercise Prices, Lower Limit | $0.42 | ' | ' | ' |
Range of Exercise Prices, Upper Limit | $1.21 | ' | ' | ' |
Number of option outstanding | 1,688 | ' | ' | ' |
Weighted average remaining contractual life (in years) | '1 year 11 months 12 days | ' | ' | ' |
Options Outstanding, weighted average exercise price | $1.13 | ' | ' | ' |
Options exercisable, weighted-average exercise price | $1.12 | ' | ' | ' |
Options exercisable Number of Exercisable | 1,612 | ' | ' | ' |
$ 1.30 - $ 2.03 | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Range of Exercise Prices, Lower Limit | $1.30 | ' | ' | ' |
Range of Exercise Prices, Upper Limit | $2.03 | ' | ' | ' |
Number of option outstanding | 1,055 | ' | ' | ' |
Weighted average remaining contractual life (in years) | '2 years 9 months 15 days | ' | ' | ' |
Options Outstanding, weighted average exercise price | $1.68 | ' | ' | ' |
Options exercisable, weighted-average exercise price | $1.68 | ' | ' | ' |
Options exercisable Number of Exercisable | 858 | ' | ' | ' |
$2.26 - $ 2.74 | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Range of Exercise Prices, Lower Limit | $2.26 | ' | ' | ' |
Range of Exercise Prices, Upper Limit | $2.74 | ' | ' | ' |
Number of option outstanding | 1,363 | ' | ' | ' |
Weighted average remaining contractual life (in years) | '5 years 3 months 15 days | ' | ' | ' |
Options Outstanding, weighted average exercise price | $2.49 | ' | ' | ' |
Options exercisable, weighted-average exercise price | $2.38 | ' | ' | ' |
Options exercisable Number of Exercisable | 185 | ' | ' | ' |
$2.83 - $ 2.90 | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Range of Exercise Prices, Lower Limit | $2.83 | ' | ' | ' |
Range of Exercise Prices, Upper Limit | $2.90 | ' | ' | ' |
Number of option outstanding | 1,260 | ' | ' | ' |
Weighted average remaining contractual life (in years) | '4 years 1 month 10 days | ' | ' | ' |
Options Outstanding, weighted average exercise price | $2.89 | ' | ' | ' |
Options exercisable, weighted-average exercise price | $2.90 | ' | ' | ' |
Options exercisable Number of Exercisable | 560 | ' | ' | ' |
$2.91 - $ 2.91 | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Range of Exercise Prices, Lower Limit | $2.91 | ' | ' | ' |
Range of Exercise Prices, Upper Limit | $2.91 | ' | ' | ' |
Number of option outstanding | 1,121 | ' | ' | ' |
Weighted average remaining contractual life (in years) | '5 years 8 months 1 day | ' | ' | ' |
Options Outstanding, weighted average exercise price | $2.91 | ' | ' | ' |
Options exercisable, weighted-average exercise price | $2.91 | ' | ' | ' |
Options exercisable Number of Exercisable | 13 | ' | ' | ' |
$2.98 - $ 3.39 | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Range of Exercise Prices, Lower Limit | $2.98 | ' | ' | ' |
Range of Exercise Prices, Upper Limit | $3.39 | ' | ' | ' |
Number of option outstanding | 1,043 | ' | ' | ' |
Weighted average remaining contractual life (in years) | '4 years 7 months 6 days | ' | ' | ' |
Options Outstanding, weighted average exercise price | $3.29 | ' | ' | ' |
Options exercisable, weighted-average exercise price | $3.29 | ' | ' | ' |
Options exercisable Number of Exercisable | 350 | ' | ' | ' |
$3.47 - $ 4.30 | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Range of Exercise Prices, Lower Limit | $3.47 | ' | ' | ' |
Range of Exercise Prices, Upper Limit | $4.30 | ' | ' | ' |
Number of option outstanding | 1,459 | ' | ' | ' |
Weighted average remaining contractual life (in years) | '3 years 5 months 16 days | ' | ' | ' |
Options Outstanding, weighted average exercise price | $3.99 | ' | ' | ' |
Options exercisable, weighted-average exercise price | $3.94 | ' | ' | ' |
Options exercisable Number of Exercisable | 881 | ' | ' | ' |
$4.35 - $ 5.34 | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Range of Exercise Prices, Lower Limit | $4.35 | ' | ' | ' |
Range of Exercise Prices, Upper Limit | $5.34 | ' | ' | ' |
Number of option outstanding | 1,247 | ' | ' | ' |
Weighted average remaining contractual life (in years) | '3 years 4 months 21 days | ' | ' | ' |
Options Outstanding, weighted average exercise price | $4.79 | ' | ' | ' |
Options exercisable, weighted-average exercise price | $4.81 | ' | ' | ' |
Options exercisable Number of Exercisable | 1,014 | ' | ' | ' |
$5.70 - $ 11.66 | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Range of Exercise Prices, Lower Limit | $5.70 | ' | ' | ' |
Range of Exercise Prices, Upper Limit | $11.66 | ' | ' | ' |
Number of option outstanding | 156 | ' | ' | ' |
Weighted average remaining contractual life (in years) | '3 years 4 days | ' | ' | ' |
Options Outstanding, weighted average exercise price | $11.06 | ' | ' | ' |
Options exercisable, weighted-average exercise price | $11.06 | ' | ' | ' |
Options exercisable Number of Exercisable | 156 | ' | ' | ' |
$11.88 - $ 11.88 | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Range of Exercise Prices, Lower Limit | $11.88 | ' | ' | ' |
Range of Exercise Prices, Upper Limit | $11.88 | ' | ' | ' |
Number of option outstanding | 7 | ' | ' | ' |
Weighted average remaining contractual life (in years) | '3 years 3 months 18 days | ' | ' | ' |
Options Outstanding, weighted average exercise price | $11.88 | ' | ' | ' |
Options exercisable, weighted-average exercise price | $11.88 | ' | ' | ' |
Options exercisable Number of Exercisable | 7 | ' | ' | ' |
$ 0.42 - $ 11.88 | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Range of Exercise Prices, Lower Limit | $0.42 | ' | ' | ' |
Range of Exercise Prices, Upper Limit | $11.88 | ' | ' | ' |
Number of option outstanding | 10,399 | ' | ' | ' |
Weighted average remaining contractual life (in years) | '3 years 9 months 18 days | ' | ' | ' |
Options Outstanding, weighted average exercise price | $2.98 | ' | ' | ' |
Options exercisable, weighted-average exercise price | $2.96 | ' | ' | ' |
Options exercisable Number of Exercisable | 5,636 | ' | ' | ' |
Schedule_of_Assumptions_Used_i
Schedule of Assumptions Used in Black-Scholes Valuation Model and Weighted Average Assumptions (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ' | ' | ' |
Dividend yield | 0.00% | 0.00% | 0.00% |
Risk-free interest rate | 0.82% | 0.60% | 1.06% |
Expected term (years) | '4 years | '4 years | '4 years 7 days |
Expected volatility | 52.00% | 65.00% | 65.00% |
StockBased_Compensation_Expens
Stock-Based Compensation Expense (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Total stock-based compensation expense | $4,285 | $5,822 | $3,110 |
Research and development | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Total stock-based compensation expense | 1,948 | 3,491 | 1,387 |
Sales and marketing | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Total stock-based compensation expense | 303 | 386 | 351 |
General and administrative | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Total stock-based compensation expense | $2,034 | $1,945 | $1,372 |
Component_of_Loss_Before_Incom
Component of Loss Before Income Taxes By Tax Jurisdiction (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
United States | ' | ' | ' | ' | ' | ' | ' | ' | ($21,820) | ($6,745) | ($25,159) |
Foreign | ' | ' | ' | ' | ' | ' | ' | ' | -932 | -15,708 | 4,672 |
Loss before income taxes | ($3,601) | ($7,998) | ($5,791) | ($5,362) | ($6,407) | ($4,638) | ($5,007) | ($6,401) | ($22,752) | ($22,453) | ($20,487) |
Components_of_Income_Tax_Provi
Components of Income Tax Provision (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Current: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Federal | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $0 | $0 | |||
State | ' | ' | ' | ' | ' | ' | ' | ' | -4 | -4 | -2 | |||
Foreign | ' | ' | ' | ' | ' | ' | ' | ' | 2,294 | 913 | -2,698 | |||
Current Income Tax Expense (Benefit), Total | ' | ' | ' | ' | ' | ' | ' | ' | 2,290 | 909 | -2,700 | |||
Deferred: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Federal | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 497 | 1,452 | |||
State | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 64 | 211 | |||
Foreign | ' | ' | ' | ' | ' | ' | ' | ' | 553 | 524 | 423 | |||
Deferred Income Tax Expense (Benefit), Total | ' | ' | ' | ' | ' | ' | ' | ' | 553 | 1,085 | 2,086 | |||
Total: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Federal | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 497 | 1,452 | |||
State | ' | ' | ' | ' | ' | ' | ' | ' | -4 | 60 | 209 | |||
Foreign | ' | ' | ' | ' | ' | ' | ' | ' | 2,847 | 1,437 | -2,275 | |||
Income tax benefit/(provision) | $78 | $30 | $2,870 | ($135) | [1] | ($660) | $1,075 | $2,019 | [2] | ($440) | [2] | $2,843 | $1,994 | ($614) |
[1] | The income tax benefit of $2,870 in the second quarter of 2013 was due primarily to the release of uncertain tax positions due to the expiration of certain statutes of limitations in certain foreign jurisdictions. | |||||||||||||
[2] | The income tax benefit of $2,019 in the second quarter of 2012 was due primarily to the release of uncertain tax positions in certain foreign jurisdictions due to the expiration of the statute of limitations. The income tax benefit of $1,075 in the third quarter of 2012 was due primarily to the release of the GameSpy valuation allowance upon acquisition and changes in pre-tax income in certain foreign entities. |
Difference_Between_Actual_Rate
Difference Between Actual Rate and Federal Statutory Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ' | ' | ' |
Tax at federal statutory rate | 34.00% | 34.00% | 34.00% |
State tax, net of federal benefit | 0.00% | 0.30% | 1.00% |
Foreign rate differential | -0.10% | -0.60% | 1.40% |
Research and development credit | 5.10% | 0.00% | 2.10% |
Withholding taxes | -2.10% | -0.30% | -0.10% |
Goodwill impairment | 0.00% | -5.50% | 0.00% |
Stock-based compensation | -0.70% | -2.70% | -1.30% |
Non-deductible intercompany bad debt | 0.30% | -16.50% | 0.00% |
FIN 48 interest and release | 14.60% | 10.00% | -0.40% |
Other | 1.60% | -0.70% | -0.40% |
Valuation allowance | -40.20% | -9.10% | -39.30% |
Effective tax rate | 12.50% | 8.90% | -3.00% |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Contingency [Line Items] | ' | ' | ' |
Accumulated earnings of foreign subsidiaries | $2,206 | ' | ' |
Unrecognized tax benefits, impact effective tax rate | 1,915 | ' | ' |
Anticipated release of provision relating to uncertain tax positions due to expiration of certain statutes of limitation in foreign jurisdictions | 1,278 | ' | ' |
Unrecognized Tax Benefits Reductions Resulting from Lapse of Applicable Statute of Limitations Anticipated Duration Period | '12 months | ' | ' |
Unrecognized tax benefit netted against deferred tax assets | 4,623 | 3,104 | ' |
Accrued interest and penalty expense related to estimated obligations for unrecognized tax benefits | 105 | 182 | 248 |
Liability related to interest and penalties for uncertain tax positions | 283 | 2,348 | ' |
Valuation Allowance Releases | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' |
Valuation allowance movements | 0 | 562 | 1,702 |
Valuation Allowance Other Changes | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' |
Valuation allowance movements | 10,073 | 696 | ' |
Minimum | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' |
Net operating loss carryforwards, expiration year | 31-Dec-14 | ' | ' |
Maximum | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' |
Net operating loss carryforwards, expiration year | 31-Dec-33 | ' | ' |
Release Of Uncertain Tax Positions Related To Interest And Penalties | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' |
Release of provision on uncertain tax positions due to the expiration of certain statutes of limitation in foreign jurisdictions | 2,441 | ' | ' |
Federal Tax | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' |
Net operating loss carryforwards | 93,213 | ' | ' |
U S State | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' |
Net operating loss carryforwards | 78,379 | ' | ' |
State alternative minimum tax credits | 12 | ' | ' |
Federal Research And Development Credits | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' |
Tax credit carryforward amount | 5,168 | ' | ' |
Tax credit carryforwards, expiration year | 31-Dec-22 | ' | ' |
California Research And Development Tax Credit | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' |
Tax credit carryforward amount | 4,077 | ' | ' |
Foreign Tax Authority | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' |
Tax credit carryforward amount | 6,340 | ' | ' |
Tax credit carryforwards, expiration year | 31-Dec-17 | ' | ' |
United Kingdom | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' |
Non-deductible intercompany bad debt | ' | 10,870 | ' |
Net operating loss carryforwards | $47,364 | ' | ' |
Deferred_Tax_Assets_and_Liabil
Deferred Tax Assets and Liabilities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ' | ' |
Fixed assets | $2,239 | $2,072 |
Net operating loss carryforwards | 46,851 | 45,002 |
Accruals, reserves and other | 7,969 | 3,726 |
Foreign tax credit | 6,348 | 6,086 |
Stock-based compensation | 3,367 | 2,781 |
Research and development credit | 4,245 | 2,839 |
Other | 3,098 | 2,884 |
Total deferred tax assets | 74,117 | 65,390 |
Deferred tax liabilities: | ' | ' |
Other | -9 | -9 |
Net deferred tax assets | 73,769 | 63,167 |
Less valuation allowance | -73,784 | -63,711 |
Net deferred tax liability | -15 | -544 |
Macrospace, MIG and iFone | ' | ' |
Deferred tax liabilities: | ' | ' |
Intangible assets | -94 | -498 |
GameSpy | ' | ' |
Deferred tax liabilities: | ' | ' |
Intangible assets | 0 | -506 |
Blammo | ' | ' |
Deferred tax liabilities: | ' | ' |
Intangible assets | -129 | -261 |
Griptonite | ' | ' |
Deferred tax liabilities: | ' | ' |
Intangible assets | 0 | -949 |
Superscape | ' | ' |
Deferred tax liabilities: | ' | ' |
Intangible assets | -116 | 0 |
United States of America | ' | ' |
Deferred tax assets: | ' | ' |
Fixed assets | 554 | 571 |
Net operating loss carryforwards | 36,299 | 32,795 |
Accruals, reserves and other | 7,761 | 3,605 |
Foreign tax credit | 6,348 | 6,086 |
Stock-based compensation | 3,311 | 2,723 |
Research and development credit | 4,245 | 2,839 |
Other | 3,088 | 2,873 |
Total deferred tax assets | 61,606 | 51,492 |
Deferred tax liabilities: | ' | ' |
Other | 0 | 0 |
Net deferred tax assets | 61,490 | 50,037 |
Less valuation allowance | -61,490 | -50,037 |
Net deferred tax liability | 0 | 0 |
United States of America | Macrospace, MIG and iFone | ' | ' |
Deferred tax liabilities: | ' | ' |
Intangible assets | 0 | 0 |
United States of America | GameSpy | ' | ' |
Deferred tax liabilities: | ' | ' |
Intangible assets | 0 | -506 |
United States of America | Blammo | ' | ' |
Deferred tax liabilities: | ' | ' |
Intangible assets | 0 | 0 |
United States of America | Griptonite | ' | ' |
Deferred tax liabilities: | ' | ' |
Intangible assets | 0 | -949 |
United States of America | Superscape | ' | ' |
Deferred tax liabilities: | ' | ' |
Intangible assets | -116 | 0 |
Foreign Tax Authority | ' | ' |
Deferred tax assets: | ' | ' |
Fixed assets | 1,685 | 1,501 |
Net operating loss carryforwards | 10,552 | 12,207 |
Accruals, reserves and other | 208 | 121 |
Foreign tax credit | 0 | 0 |
Stock-based compensation | 56 | 58 |
Research and development credit | 0 | 0 |
Other | 10 | 11 |
Total deferred tax assets | 12,511 | 13,898 |
Deferred tax liabilities: | ' | ' |
Other | -9 | -9 |
Net deferred tax assets | 12,279 | 13,130 |
Less valuation allowance | -12,294 | -13,674 |
Net deferred tax liability | -15 | -544 |
Foreign Tax Authority | Macrospace, MIG and iFone | ' | ' |
Deferred tax liabilities: | ' | ' |
Intangible assets | -94 | -498 |
Foreign Tax Authority | GameSpy | ' | ' |
Deferred tax liabilities: | ' | ' |
Intangible assets | 0 | 0 |
Foreign Tax Authority | Blammo | ' | ' |
Deferred tax liabilities: | ' | ' |
Intangible assets | -129 | -261 |
Foreign Tax Authority | Griptonite | ' | ' |
Deferred tax liabilities: | ' | ' |
Intangible assets | 0 | 0 |
Foreign Tax Authority | Superscape | ' | ' |
Deferred tax liabilities: | ' | ' |
Intangible assets | $0 | $0 |
Reconciliation_of_Total_Amount
Reconciliation of Total Amounts of Unrecognized Tax Benefits (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Contingency [Line Items] | ' | ' |
Beginning balance | $4,626 | $4,034 |
Reductions of tax positions taken during previous years | -725 | -631 |
Additions based on uncertain tax positions related to the current period | 1,149 | 410 |
Additions based on uncertain tax positions related to prior periods | 1,449 | 813 |
Cumulative translation adjustment | 39 | 0 |
Ending balance | $6,538 | $4,626 |
Revenue_from_Different_Product
Revenue from Different Products (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | $34,841 | $21,722 | $24,445 | $24,605 | $26,311 | $26,099 | $29,264 | $26,509 | $105,613 | $108,183 | $74,025 |
Feature Phone | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 5,319 | 13,135 | 31,091 |
Smartphone | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | $100,294 | $95,048 | $42,934 |
Revenues_in_Geographic_Regions
Revenues in Geographic Regions (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | $34,841 | $21,722 | $24,445 | $24,605 | $26,311 | $26,099 | $29,264 | $26,509 | $105,613 | $108,183 | $74,025 |
United States of America | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 48,697 | 57,816 | 36,765 |
China | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 10,985 | 5,827 | 4,007 |
Americas, excluding the USA | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 5,430 | 5,051 | 6,528 |
EMEA | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 22,820 | 22,381 | 20,621 |
APAC, excluding China | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | $17,681 | $17,108 | $6,104 |
LongLived_Assets_by_Geographic
Long-Lived Assets by Geographical Area (Detail) (USD $) | Dec. 31, 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 | $5,096 | $5,026 |
Americas | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Property and equipment, net of accumulated depreciation and amortization | 4,108 | 3,649 |
EMEA | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Property and equipment, net of accumulated depreciation and amortization | 899 | 1,092 |
APAC | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Property and equipment, net of accumulated depreciation and amortization | $89 | $285 |
Restructuring_Information_Deta
Restructuring Information (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 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 | 0 |
Charges settled in cash | -1,269 | -2,254 |
Ending Balance | 0 | 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 | 0 |
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 | 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 | 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 | 0 |
Charges settled in cash | -868 | -1,367 |
Ending Balance | $0 | $4 |
Restructuring_Additional_Infor
Restructuring - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring charge | $0 | $0 | $937 | $511 | $838 | $213 | $320 | $0 | $1,448 | $1,371 | $545 |
Non Cash Adjustments | ' | ' | ' | ' | ' | ' | ' | ' | 183 | 0 | ' |
2012 and 2013 Restructuring Plan | Facilities and other | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring charge | ' | ' | ' | ' | ' | ' | ' | ' | 584 | ' | ' |
Non Cash Adjustments | ' | ' | ' | ' | ' | ' | ' | ' | 183 | 0 | ' |
2012 and 2013 Restructuring Plan | Facilities and other | Brazilian | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non Cash Adjustments | ' | ' | ' | ' | ' | ' | ' | ' | 238 | ' | ' |
2012 and 2013 Restructuring Plan | Employee termination costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring charge | ' | ' | ' | ' | ' | ' | ' | ' | 864 | ' | ' |
Restructuring charges to date | ' | ' | ' | ' | ' | ' | ' | ' | $2,235 | ' | ' |
Unaudited_Quarterly_Consolidat
Unaudited Quarterly Consolidated Statement of Operation Data Restated (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||||
Quarterly Financial Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Revenues | $34,841 | $21,722 | $24,445 | $24,605 | $26,311 | $26,099 | $29,264 | $26,509 | $105,613 | $108,183 | $74,025 | |||||
Cost of revenues: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Platform commissions, royalties and other | 9,803 | 7,436 | 7,670 | 7,462 | 7,382 | 6,946 | 7,780 | 7,522 | 32,371 | 29,630 | 20,229 | |||||
Impairment of prepaid royalties and guarantees | 0 | 435 | 0 | [1] | 0 | 0 | 0 | 0 | 0 | 435 | 0 | 531 | ||||
Amortization of intangible assets | 1,004 | 1,082 | 1,078 | 1,074 | 1,073 | 1,025 | 932 | 753 | 4,238 | 3,783 | 5,447 | |||||
Total cost of revenues | 10,807 | 8,953 | 8,748 | 8,536 | 8,455 | 7,971 | 8,712 | 8,275 | 37,044 | 33,413 | 26,207 | |||||
Gross profit | 24,034 | 12,769 | 15,697 | 16,069 | 17,856 | 18,128 | 20,552 | 18,234 | 68,569 | 74,770 | 47,818 | |||||
Operating expenses: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Research and development | 12,618 | 11,405 | 11,224 | 11,630 | 13,566 | 9,979 | 15,697 | [2] | 15,033 | 46,877 | 54,275 | 39,073 | ||||
Sales and marketing | 10,608 | 5,361 | [3] | 5,143 | 5,008 | 6,272 | 5,545 | 4,701 | 4,375 | 26,120 | 20,893 | 14,607 | ||||
General and administrative | 4,162 | 3,617 | 3,852 | 3,919 | 3,356 | 2,466 | 4,556 | 4,366 | 15,550 | 14,744 | 14,002 | |||||
Amortization of intangible assets | 117 | 229 | 495 | 495 | 495 | 495 | 495 | 495 | 1,336 | 1,980 | 825 | |||||
Impairment of goodwill | 0 | 0 | 0 | 0 | 0 | 3,613 | 0 | [4] | 0 | 0 | 3,613 | 0 | ||||
Restructuring charge | 0 | 0 | 937 | 511 | 838 | 213 | 320 | 0 | 1,448 | 1,371 | 545 | |||||
Total operating expenses | 27,505 | 20,612 | 21,651 | 21,563 | 24,527 | 22,311 | 25,769 | 24,269 | 91,331 | 96,876 | 69,052 | |||||
Income (loss) from operations | -3,471 | -7,843 | -5,954 | -5,494 | -6,671 | -4,183 | -5,217 | -6,035 | -22,762 | -22,106 | -21,234 | |||||
Interest and other income (expense), net | -130 | -155 | 163 | 132 | 264 | -455 | 210 | -366 | 10 | -347 | 747 | |||||
Loss before income taxes | -3,601 | -7,998 | -5,791 | -5,362 | -6,407 | -4,638 | -5,007 | -6,401 | -22,752 | -22,453 | -20,487 | |||||
Income tax benefit (provision) | 78 | 30 | 2,870 | -135 | [5] | -660 | 1,075 | 2,019 | [6] | -440 | [6] | 2,843 | 1,994 | -614 | ||
Net loss | ($3,523) | ($7,968) | ($2,921) | ($5,497) | ($7,067) | ($3,563) | ($2,988) | ($6,841) | ($19,909) | ($20,459) | ($21,101) | |||||
Net loss per share - basic and diluted | ($0.05) | ($0.11) | ($0.04) | ($0.08) | ($0.11) | ($0.06) | ($0.05) | ($0.11) | ($0.28) | ($0.32) | ($0.37) | |||||
[1] | The impairment of prepaid royalties and guarantees charge of $435 in the third quarter of 2013 was primarily due to a prepaid royalty impairment charge recorded for two of our third-party publishing titles. | |||||||||||||||
[2] | Changes in the research and development expense from $15,033 in the first quarter of 2012 and $9,979 in the third quarter of 2012 was due primarily to changes in the fair market value of contingent consideration issued to employees who are former shareholders of Blammo. | |||||||||||||||
[3] | Change in sales and marketing expense from $5,008 in the first quarter of 2013 to $10,608 in the fourth quarter of 2013 was due primarily to higher marketing expenses associated with promoting Deer Hunter 2014. | |||||||||||||||
[4] | The goodwill impairment charge of $3,613 in the third quarter of 2012 was due to a decline in the estimated fair value of the APAC reporting unit attributable to an accelerated decline in the local feature phone business and the recent restructuring of the Company's operations in the region. | |||||||||||||||
[5] | The income tax benefit of $2,870 in the second quarter of 2013 was due primarily to the release of uncertain tax positions due to the expiration of certain statutes of limitations in certain foreign jurisdictions. | |||||||||||||||
[6] | The income tax benefit of $2,019 in the second quarter of 2012 was due primarily to the release of uncertain tax positions in certain foreign jurisdictions due to the expiration of the statute of limitations. The income tax benefit of $1,075 in the third quarter of 2012 was due primarily to the release of the GameSpy valuation allowance upon acquisition and changes in pre-tax income in certain foreign entities. |
Unaudited_Quarterly_Consolidat1
Unaudited Quarterly Consolidated Statement of Operation Data Restated (Parenthetical) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||||
Quarterly Financial Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Research and development expense | $12,618 | $11,405 | $11,224 | $11,630 | $13,566 | $9,979 | $15,697 | [1] | $15,033 | $46,877 | $54,275 | $39,073 | ||||
Income tax benefit (provision) | 78 | 30 | 2,870 | -135 | [2] | -660 | 1,075 | 2,019 | [3] | -440 | [3] | 2,843 | 1,994 | -614 | ||
Impairment charge | 0 | 0 | 0 | 0 | 0 | 3,613 | 0 | [4] | 0 | 0 | 3,613 | 0 | ||||
Impairment of prepaid royalties and guarantees | 0 | 435 | 0 | [5] | 0 | 0 | 0 | 0 | 0 | 435 | 0 | 531 | ||||
Sales and marketing | $10,608 | $5,361 | [6] | $5,143 | $5,008 | $6,272 | $5,545 | $4,701 | $4,375 | $26,120 | $20,893 | $14,607 | ||||
[1] | Changes in the research and development expense from $15,033 in the first quarter of 2012 and $9,979 in the third quarter of 2012 was due primarily to changes in the fair market value of contingent consideration issued to employees who are former shareholders of Blammo. | |||||||||||||||
[2] | The income tax benefit of $2,870 in the second quarter of 2013 was due primarily to the release of uncertain tax positions due to the expiration of certain statutes of limitations in certain foreign jurisdictions. | |||||||||||||||
[3] | The income tax benefit of $2,019 in the second quarter of 2012 was due primarily to the release of uncertain tax positions in certain foreign jurisdictions due to the expiration of the statute of limitations. The income tax benefit of $1,075 in the third quarter of 2012 was due primarily to the release of the GameSpy valuation allowance upon acquisition and changes in pre-tax income in certain foreign entities. | |||||||||||||||
[4] | The goodwill impairment charge of $3,613 in the third quarter of 2012 was due to a decline in the estimated fair value of the APAC reporting unit attributable to an accelerated decline in the local feature phone business and the recent restructuring of the Company's operations in the region. | |||||||||||||||
[5] | The impairment of prepaid royalties and guarantees charge of $435 in the third quarter of 2013 was primarily due to a prepaid royalty impairment charge recorded for two of our third-party publishing titles. | |||||||||||||||
[6] | Change in sales and marketing expense from $5,008 in the first quarter of 2013 to $10,608 in the fourth quarter of 2013 was due primarily to higher marketing expenses associated with promoting Deer Hunter 2014. |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Granite Global Ventures II L.P. and GGV II Entrepreneurs Fund L.P | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Percentage of ownership interest | 6.88% | ' |
Kontagent | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Percentage of ownership interest, acquires | 14.40% | ' |
Revenue from related parties | $5,724 | $6,285 |
Percentage of total accounts receivable | 9.00% | 13.20% |