Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Aug. 01, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Jun-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Trading Symbol | 'GLUU | ' |
Entity Registrant Name | 'GLU MOBILE INC | ' |
Entity Central Index Key | '0001366246 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 96,286,054 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $71,456 | $28,496 |
Accounts receivable, net | 15,963 | 18,305 |
Prepaid expenses and other | 6,496 | 7,663 |
Total current assets | 93,915 | 54,464 |
Property and equipment, net | 4,272 | 5,096 |
Restricted cash | 1,790 | 1,730 |
Other long-term assets | 630 | 637 |
Intangible assets, net | 8,049 | 5,599 |
Goodwill | 30,809 | 19,485 |
Total assets | 139,465 | 87,011 |
Current liabilities: | ' | ' |
Accounts payable | 9,198 | 10,657 |
Accrued liabilities | 2,458 | 1,971 |
Accrued compensation | 8,239 | 5,378 |
Accrued royalties | 1,556 | 1,727 |
Deferred revenues | 14,738 | 18,224 |
Total current liabilities | 36,189 | 37,957 |
Other long-term liabilities | 2,248 | 2,357 |
Total liabilities | 38,437 | 40,314 |
Commitments and contingencies (Note 7) | ' | ' |
Stockholders' equity: | ' | ' |
Preferred stock, $0.0001 par value; 5,000 shares authorized at June 30, 2014 and December 31, 2013; no shares issued and outstanding at June 30, 2014 and December 31, 2013 | 0 | 0 |
Common stock, $0.0001 par value: 250,000 shares authorized at June 30, 2014 and December 31, 2013; 94,808 and 78,464 shares issued and outstanding at June 30, 2014 and December 31, 2013, respectively | 9 | 8 |
Additional paid-in capital | 356,352 | 298,593 |
Accumulated other comprehensive income | 513 | 307 |
Accumulated deficit | -255,846 | -252,211 |
Total stockholders' equity | 101,028 | 46,697 |
Total liabilities and stockholders' equity | $139,465 | $87,011 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Per Share data, unless otherwise specified | ||
Statement Of Financial Position [Abstract] | ' | ' |
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 | 94,808 | 78,464 |
Common stock, shares outstanding | 94,808 | 78,464 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Income Statement [Abstract] | ' | ' | ' | ' |
Revenues | $40,910 | $24,445 | $85,490 | $49,050 |
Cost of revenues: | ' | ' | ' | ' |
Platform commissions, royalties and other | 12,432 | 7,670 | 25,634 | 15,132 |
Amortization of intangible assets | 441 | 1,078 | 995 | 2,152 |
Total cost of revenues | 12,873 | 8,748 | 26,629 | 17,284 |
Gross profit | 28,037 | 15,697 | 58,861 | 31,766 |
Operating expenses: | ' | ' | ' | ' |
Research and development | 17,297 | 11,224 | 32,876 | 22,854 |
Sales and marketing | 7,989 | 5,143 | 17,474 | 10,151 |
General and administrative | 6,131 | 3,852 | 11,057 | 7,771 |
Amortization of intangible assets | 127 | 495 | 254 | 990 |
Restructuring charge | 159 | 937 | 159 | 1,448 |
Total operating expenses | 31,703 | 21,651 | 61,820 | 43,214 |
Loss from operations | -3,666 | -5,954 | -2,959 | -11,448 |
Interest and other income/(expense), net: | ' | ' | ' | ' |
Interest income | 7 | 4 | 13 | 7 |
Other (expense)/income, net | -31 | 159 | -167 | 288 |
Interest and other (expense)/income, net | -24 | 163 | -154 | 295 |
Loss before income taxes | -3,690 | -5,791 | -3,113 | -11,153 |
Income tax benefit/(provision) | -78 | 2,870 | -522 | 2,735 |
Net loss | ($3,768) | ($2,921) | ($3,635) | ($8,418) |
Net loss per common share - basic and diluted | ($0.04) | ($0.04) | ($0.04) | ($0.12) |
Weighted average common shares outstanding - basic and diluted | 85,549 | 69,812 | 82,634 | 68,105 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | ||||
Statement Of Income And Comprehensive Income [Abstract] | ' | ' | ' | ' | ||||
Net loss | ($3,768) | ($2,921) | ($3,635) | ($8,418) | ||||
Other comprehensive income/(loss): | ' | ' | ' | ' | ||||
Foreign currency translation adjustments | 122 | 389 | 206 | 133 | ||||
Reclassification to net loss (1) | 0 | [1] | -238 | [1] | 0 | [1] | -238 | [1] |
Other comprehensive income/(loss) | 122 | 151 | 206 | -105 | ||||
Comprehensive loss | ($3,646) | ($2,770) | ($3,429) | ($8,523) | ||||
[1] | The reclassification to net loss relates to the write-off of cumulative translation adjustment upon substantial liquidation of the Company's Brazilian entity and is recognized in Restructuring charge in the Company's unaudited condensed consolidated statements of operations for the three and six months ended June 30, 2013. |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Cash flows from operating activities: | ' | ' |
Net loss | ($3,635) | ($8,418) |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' |
Depreciation | 1,227 | 1,392 |
Amortization of intangible assets | 1,249 | 3,142 |
Stock-based compensation | 7,545 | 1,981 |
Change in fair value of Blammo earnout | 835 | -18 |
Non-cash foreign currency remeasurement (gain)/loss | 167 | -266 |
Impairment of prepaid royalties and guarantees | 140 | 0 |
Non-cash restructuring charges | 0 | 244 |
Changes in allowance for doubtful accounts | -176 | 24 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | 3,311 | 1,336 |
Prepaid expenses and other assets | 972 | 160 |
Accounts payable | -2,852 | 1,740 |
Accrued liabilities | 456 | 32 |
Accrued compensation | 2,978 | -1,565 |
Accrued royalties | 54 | -988 |
Deferred revenues | -3,491 | -1,598 |
Accrued restructuring charge | 0 | -45 |
Other long-term liabilities | -12 | -2,779 |
Net cash provided by (used in) operating activities | 8,768 | -5,626 |
Cash flows used in investing activities: | ' | ' |
Purchase of property and equipment | -1,237 | -785 |
Restricted cash | -60 | -1,730 |
Other investing activities | 0 | -200 |
Net cash paid for acquisitions | -289 | 0 |
Net cash used in investing activities | -1,586 | -2,715 |
Cash flows from financing activities: | ' | ' |
PlayFirst payments on acquired line of credit and term loan | -2,340 | 0 |
Proceeds from public offering, net | 32,336 | 0 |
Proceeds from exercise of warrants and issuance of common stock | 783 | 4,237 |
Taxes paid related to net share settlement of equity awards | -283 | 0 |
Proceeds from exercise of stock options and ESPP | 5,244 | 982 |
Net cash provided by financing activities | 35,740 | 5,219 |
Effect of exchange rate changes on cash | 38 | -72 |
Net increase/(decrease) in cash and cash equivalents | 42,960 | -3,194 |
Cash and cash equivalents at beginning of period | 28,496 | 22,325 |
Cash and cash equivalents at end of period | 71,456 | 19,131 |
Supplemental disclosure of cash flow information | ' | ' |
Common stock issued for acquisition of PlayFirst | 11,141 | 0 |
Common stock issued for property and equipment | 0 | 189 |
Common stock issuable as contingent consideration earned | $3,750 | $2,263 |
The_Company_Basis_of_Presentat
The Company, Basis of Presentation and Summary of Significant Accounting Policies | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
The Company, Basis of Presentation and Summary of Significant Accounting Policies | ' | ||||||||||||||||
Note 1 – The Company, Basis of Presentation and Summary of Significant Accounting Policies | |||||||||||||||||
Glu Mobile Inc. (the “Company” or “Glu”) was incorporated in Nevada in May 2001 and reincorporated in the state of Delaware in March 2007. The Company develops and publishes a portfolio of action/adventure and casual games designed to appeal to a broad cross section of the users of smartphones and tablet devices who 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 $255,846 as of June 30, 2014. For the three and six months ended June 30, 2014, the Company generated a net loss of $3,768 and $3,635, respectively. The Company has in the past and may continue to incur additional operating losses and negative cash flows in the future. Failure to generate sufficient revenues, reduce spending or raise additional capital could adversely affect the Company’s ability to achieve and sustain profitability and its intended business objectives. | |||||||||||||||||
Principles of Consolidation and Basis of Presentation | |||||||||||||||||
The accompanying unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles (“GAAP”) in the United States for complete financial statements and should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013 filed with the SEC on March 14, 2014. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments, consisting only of normal recurring adjustments, which the Company believes are necessary for a fair statement of the Company’s financial position as of June 30, 2014 and its unaudited condensed consolidated results of operations for the three and six months ended June 30, 2014 and 2013, respectively. These unaudited condensed consolidated financial statements are not necessarily indicative of the results to be expected for the entire year. The unaudited condensed consolidated balance sheet presented as of December 31, 2013 has been derived from the audited consolidated financial statements as of that date, and the unaudited condensed consolidated balance sheet presented as of June 30, 2014 has been derived from the unaudited condensed consolidated financial statements as of that date. | |||||||||||||||||
The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated. | |||||||||||||||||
Concentration of Credit Risk | |||||||||||||||||
Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash, cash equivalents and accounts receivable. | |||||||||||||||||
The Company derives its accounts receivable from revenues earned from customers or through Digital Storefronts located in the U.S. and other locations outside of the U.S. The Company performs ongoing credit evaluations of its customers’ and the Digital Storefronts’ financial condition and currently does not require any collateral from its customers or the Digital Storefronts. The Company bases its allowance for doubtful accounts on management’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable. The Company reviews past due balances over a specified amount individually for collectability on a monthly basis. The Company writes off accounts receivable balances against the allowance when it determines that the amount will not be recovered. | |||||||||||||||||
The following table summarizes the revenues from customers or aggregate purchases through Digital Storefronts that accounted for more than 10% of the Company’s revenues for the periods indicated: | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Apple | 43.4 | % | 53.3 | % | 47.2 | % | 50.4 | % | |||||||||
28.4 | 17.9 | 25.7 | 18.7 | ||||||||||||||
At June 30, 2014, Apple Inc. (“Apple”) accounted for 41.3%, Upsight (successor-in-interest to Medium Entertainment, dba PlayHaven) accounted for 16.1%, and Google Inc. (“Google”) accounted for 14.0% of total accounts receivable. At December 31, 2013, Apple accounted for 46.3%, and Jirbo (dba AdColony) and Google each accounted for 11.1% of total accounts receivable. No other customer or Digital Storefront represented more than 10% of the Company’s total accounts receivable as of these dates. | |||||||||||||||||
Recent Accounting Pronouncements | |||||||||||||||||
In 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 did not have a material impact on the Company’s condensed consolidated financial statements once adopted. | |||||||||||||||||
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. Under this guidance, revenue is recognized when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. The updated standard will replace most existing revenue recognition guidance under U.S. GAAP when it becomes effective and permits the use of either the retrospective or cumulative effect transition method. Early adoption is not permitted. The updated standard will be effective for the Company beginning January 1, 2017. The Company has not yet selected a transition method and is currently evaluating the effect that the updated standard will have on its consolidated financial statements and related disclosures. |
Net_Loss_Per_Share
Net Loss Per Share | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
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 common shares subject to restrictions imposed by the Company. | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Net loss | $ | (3,768 | ) | $ | (2,921 | ) | $ | (3,635 | ) | $ | (8,418 | ) | |||||
Basic and diluted shares used to compute net loss per share: | |||||||||||||||||
Weighted average common shares outstanding | 86,340 | 69,902 | 83,075 | 68,196 | |||||||||||||
Weighted average common shares subject to restrictions | (791 | ) | (90 | ) | (441 | ) | (91 | ) | |||||||||
Weighted average shares used to compute basic and diluted net loss per share | 85,549 | 69,812 | 82,634 | 68,105 | |||||||||||||
Net loss per share — basic and diluted | $ | (0.04 | ) | $ | (0.04 | ) | $ | (0.04 | ) | $ | (0.12 | ) | |||||
The following weighted average options to purchase common stock, warrants to purchase common stock, shares of common stock subject to restrictions, shares contingently issuable in connection with the Blammo earnout (as described below in Note 3 – Fair Value Measurements), and restricted stock units (“RSUs”) have been excluded from the computation of diluted net loss per share of common stock for the periods presented because including them would have had an anti-dilutive effect: | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Warrants to purchase common stock | 3,786 | 1,363 | 3,102 | 2,560 | |||||||||||||
Common shares subject to restrictions | 791 | 90 | 441 | 91 | |||||||||||||
Options to purchase common stock | 8,343 | 10,559 | 7,585 | 10,599 | |||||||||||||
Contingently issuable shares of common stock | 750 | — | 375 | 377 | |||||||||||||
RSUs | 4,305 | 538 | 2,934 | 269 | |||||||||||||
17,975 | 12,550 | 14,437 | 13,896 | ||||||||||||||
Fair_Value_Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2014 | |
Fair Value Disclosures [Abstract] | ' |
Fair Value Measurements | ' |
Note 3 – Fair Value Measurements | |
Fair Value Measurements | |
The Company accounts for fair value in accordance with ASC 820, Fair Value Measurements and Disclosures (“ASC 820”). Fair value is defined under ASC 820 as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value under ASC 820 must maximize the use of observable inputs and minimize the use of unobservable inputs. The Company uses a three-tier hierarchy, which prioritizes the inputs used in measuring fair value as follows: | |
Level 1 - Quoted prices in active markets for identical assets or liabilities. | |
Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | |
Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. | |
The 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. As of June 30, 2014 and December 31, 2013, the Company had $71,456 and $28,496, respectively, in cash and cash equivalents. In addition, the Company’s restricted cash is classified within Level 1 of the fair value hierarchy. The carrying value of accounts receivable and payables approximates fair value due to the short time to expected receipt of payment or cash. | |
Liabilities for Contingent Consideration | |
On August 1, 2011, the Company completed the acquisition of Blammo Games Inc. (“Blammo”), by entering into a Share Purchase Agreement (the “Share Purchase Agreement”) by and among the Company, Blammo and each of the owners of the outstanding share capital of Blammo (the “Sellers”). Blammo is a developer of free-to-play games for Digital Storefronts located in Toronto, Canada. Pursuant to the terms of the Share Purchase Agreement, the Company agreed to issue to the Sellers, in the aggregate, 1,000 shares of the Company’s common stock plus up to an additional 3,313 shares of the Company’s common stock (the “Additional Shares”) if Blammo achieved certain Net Revenue (as such term is defined in the Share Purchase Agreement) targets during the fiscal years ending March 31, 2013, March 31, 2014 and March 31, 2015. | |
In May 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, and in May 2014, the Company issued 435 shares of common stock to the former Blammo shareholders based on the Net Revenue that Blammo achieved for its fiscal year ended March 31, 2014. Since the contingency related to the number of shares earned in connection with the targets for the years ended March 31, 2013 and 2014 was resolved and the number of shares became fixed as of March 31, 2013 and 2014, the fair values of these shares as then last re-measured in the amount of $2,263 and $2,071, respectively, have been presented in additional paid-in capital in the Company’s condensed consolidated balance sheet since March 31, 2013 and 2014. As of June 30, 2014, the Company and the former Blammo shareholders reached a mutual understanding of a change in the vesting condition of the last tranche of earnout shares and agreed to settle for a fixed number of shares. On July 11, 2014, the Company and the former Blammo shareholders entered into a formal agreement memorializing this mutual agreement, pursuant to which the Company agreed to issue to the former Blammo shareholders 750 Additional Shares in lieu of the opportunity to earn up to 1,154 Additional Shares for the year ending March 31, 2015 (“Fiscal 2015”) if Blammo were to generate $15,000 in Net Revenues during Fiscal 2015. Since the contingency related to the number of shares to be earned in connection with the target for Fiscal 2015 was resolved as of June 30, 2014, and the number of shares has become fixed, the fair value of these shares in the amount of $3,750 has been presented in additional paid-in capital on the Company’s condensed consolidated balance sheet as of June 30, 2014. | |
Three of the five Sellers are also employees of Blammo. The fair value of the contingent consideration issued to the three Sellers who are also employees of Blammo was not considered part of the purchase price, since vesting was contingent upon these employees’ continued service during the earn-out periods. 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 was fair valued at each subsequent reporting period. During the three and six months ended June 30, 2014, the Company recorded fair value expense adjustments of $531 and $835, respectively, which represent the changes in fair value of the non-employee contingent consideration for both respective periods. During the three and six months ended June 30, 2013, the Company recorded fair value income adjustments of $48 and $18, respectively. 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 condensed consolidated statements of operations. | |
Level 3 liabilities consist of acquisition-related liabilities for contingent consideration (i.e., earnouts) related to the acquisition of Blammo. As of June 30, 2014, the Company recorded no contingent consideration liability, as the final tranche of Blammo earnout shares had been earned and recorded in additional paid-in capital. 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 was less than one year. The Company used a risk-neutral framework to estimate the probability of achieving the revenue targets set forth above for each year. The fair value of the contingent consideration was determined using a digital option, which captures the present value of the expected payment multiplied by the probability of reaching the revenue targets for each year. Key assumptions for the three and six months ended June 30, 2013 included a discount rate of 35.0%, volatility of 37.0%, risk-free rates of between 0.12% and 0.31% 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 | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ' | ||||||||
Balance Sheet Components | ' | ||||||||
Note 4 – Balance Sheet Components | |||||||||
Accounts Receivable | |||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Accounts receivable | $ | 16,246 | $ | 18,764 | |||||
Less: Allowance for doubtful accounts | (283 | ) | (459 | ) | |||||
$ | 15,963 | $ | 18,305 | ||||||
Accounts receivable includes amounts billed and unbilled as of the respective balance sheet dates, but net of platform commissions paid to the Digital Storefronts. The Company had no significant bad debts during the three and six months ended June 30, 2014 and 2013. | |||||||||
Prepaid expenses and other | |||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Deferred platform commission fees | 3,670 | 4,516 | |||||||
Prepaid royalties | 562 | 740 | |||||||
Prepaids and other | 2,264 | 2,407 | |||||||
$ | 6,496 | 7,663 | |||||||
Property and Equipment | |||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Computer equipment | $ | 6,334 | $ | 6,134 | |||||
Furniture and fixtures | 876 | 862 | |||||||
Software | $ | 6,546 | 6,290 | ||||||
Leasehold improvements | $ | 2,680 | 2,768 | ||||||
16,436 | 16,054 | ||||||||
Less: Accumulated depreciation and amortization | (12,164 | ) | (10,958 | ) | |||||
$ | 4,272 | $ | 5,096 | ||||||
Depreciation expense for the three months ended June 30, 2014 and 2013 was $607 and $661, respectively. Depreciation expense for the six months ended June 30, 2014 and June 30, 2013 was $1,227 and $1,392, respectively. | |||||||||
Other Long-Term Liabilities | |||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Deferred rent | 1,094 | 1,131 | |||||||
Uncertain tax position obligations | 922 | 890 | |||||||
Other | 232 | 336 | |||||||
$ | 2,248 | $ | 2,357 | ||||||
Business_Combinations
Business Combinations | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Business Combinations [Abstract] | ' | ||||||||||||||||
Business Combinations | ' | ||||||||||||||||
Note 5 – Business Combinations | |||||||||||||||||
PlayFirst, Inc. | |||||||||||||||||
On May 14, 2014, the Company completed the acquisition of PlayFirst, Inc. (“PlayFirst”) pursuant to the Agreement and Plan of Merger, dated as of April 30, 2014, by and among the Company, PlayFirst, Midas Acquisition Corp., a wholly owned subsidiary of the Company (“Sub”), and Fortis Advisors LLC, as Stockholders’ Agent (the “Merger Agreement”). At the closing of the transaction (the “Closing”), Sub merged with and into PlayFirst in a statutory reverse triangular merger (the “Merger”), with PlayFirst surviving the Merger as a wholly owned subsidiary of Glu. PlayFirst, which is based in San Francisco, California, employs approximately 30 people and develops casual games for smartphones and other mobile devices. The Company acquired PlayFirst to leverage its casual game expertise, assembled workforce and existing mobile games in order to expand and enhance the Company’s game offerings on smartphones and tablets. | |||||||||||||||||
The purchase price consideration was $11,553, representing 2,955 shares of the Company’s common stock valued at $3.91 per share. The number of shares comprising the purchase price consideration was reduced from 3,000 shares to 2,955 shares due to a working capital adjustment. In addition, the Company withheld a total of 106 shares to cover stockholders’ agent expenses and tax obligations of certain PlayFirst stockholders, which resulted in the Company issuing a total of 2,849 shares valued at $11,141 and paying $412 in cash. Of the 2,849 shares issued in the acquisition, 1,500 are being held in escrow and will be retained by the Company for 24 months to satisfy potential indemnification claims under the PlayFirst merger agreement. In addition, the Company assumed approximately $3,480 of PlayFirst net liabilities. All outstanding PlayFirst capital stock, stock options and warrants were cancelled at the Closing. | |||||||||||||||||
The allocation of the purchase price is preliminary and based on valuations derived from estimated fair value assessments and assumptions used by the Company. While the Company believes that its preliminary estimates and assumptions underlying the valuations are reasonable, different estimates and assumptions could result in different valuations assigned to the individual assets acquired and liabilities assumed, and the resulting amount of goodwill. The following table summarizes the preliminary fair values of assets acquired and liabilities assumed at the date of acquisition: | |||||||||||||||||
Assets acquired: | |||||||||||||||||
Cash | $ | 123 | |||||||||||||||
Accounts receivable, net | 737 | ||||||||||||||||
Other current assets | 145 | ||||||||||||||||
Property and equipment | 15 | ||||||||||||||||
Intangible assets: | |||||||||||||||||
Titles, content and technology | 2,200 | ||||||||||||||||
In Process Research and Development | 800 | ||||||||||||||||
Customer contract and related relationships | 700 | ||||||||||||||||
Goodwill | 11,333 | ||||||||||||||||
Total assets acquired | 16,053 | ||||||||||||||||
Liabilities assumed: | |||||||||||||||||
Accounts payable | (1,509 | ) | |||||||||||||||
Other accrued liabilities | (651 | ) | |||||||||||||||
Line of credit | (890 | ) | |||||||||||||||
Term loan | (1,450 | ) | |||||||||||||||
Total liabilities acquired | (4,500 | ) | |||||||||||||||
Net acquired assets | $ | 11,553 | |||||||||||||||
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 three to five years, which approximates the pattern in which the economic benefits of the intangible assets are expected to be realized. Of the total purchase price, $3,700 was allocated to identifiable intangible assets. Pursuant to ASC 805, the Company incurred and expensed a total of $682 in acquisition and transitional costs associated with the acquisition of PlayFirst during the three and six months ended June 30, 2014, which were primarily general and administrative related. | |||||||||||||||||
The Company allocated the residual value of $11,333 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 PlayFirst 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 PlayFirst. 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. | |||||||||||||||||
As of the valuation date, PlayFirst was in the process of developing a game, which is expected to be launched in the fourth quarter of 2014, and the Company has estimated the majority of the revenues associated with this game will be generated in the remainder of 2014 and 2015. | |||||||||||||||||
The Company valued titles, content and technology, and in-process research and development using the Multi-Period Excess Earnings (“MPEE”) method of the income approach and key assumptions used included: projected revenue, cost of goods sold, and operating expenses for PlayFirst’s legacy titles, the future amortization tax benefit of the legacy titles, and a discount rate of between 20% and 35%. | |||||||||||||||||
The Company valued customer relationships using the replacement cost method of the cost approach and based on the perceived value that a market participant would ascribe to the PlayFirst customer relationships, which include existing relationships with Amazon, Apple and Google. Key assumptions used in valuing customer relationships included legal fees and opportunity costs in re-establishing such relationships. | |||||||||||||||||
Pro Forma Financial Information | |||||||||||||||||
The results of operations for PlayFirst and the estimated fair market values of the assets acquired and liabilities assumed have been included in the Company’s condensed consolidated financial statements since the date of acquisition. For the period ended June 30, 2014 and since the date of acquisition, PlayFirst contributed approximately $669 to the Company’s gross revenue and increased net losses by $928. The unaudited pro forma financial information in the table below summarizes the combined results of the Company’s operations and those of PlayFirst for the periods shown as if the acquisition of PlayFirst had occurred on January 1, 2013. 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. | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Total pro forma revenues | $ | 41,698 | $ | 27,283 | $ | 88,738 | $ | 57,909 | |||||||||
Pro forma net loss | (4,670 | ) | (4,613 | ) | (5,133 | ) | (12,937 | ) | |||||||||
Pro forma net loss per share — basic and diluted | $ | (0. | 05) | $ | (0.06 | ) | $ | (0.06 | ) | $ | (0.18 | ) | |||||
All of the goodwill related to the PlayFirst transaction 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. |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 6 Months Ended | ||||||||||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||||||
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, GameSpy in 2012 and PlayFirst in 2014, as well as in connection with the purchase of the Deer Hunter trademark and brand assets from Atari, Inc. in 2012. The carrying amounts and accumulated amortization expense of the acquired intangible assets, including the impact of foreign currency exchange translation, at June 30, 2014 and December 31, 2013 were as follows: | |||||||||||||||||||||||||||||||||
June 30, 2014 | December 31, 2013 | ||||||||||||||||||||||||||||||||
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 | 3 yrs | $ | 15,136 | $ | (12,558 | ) | $ | 2,578 | $ | 12,851 | $ | (12,165 | ) | $ | 686 | ||||||||||||||||||
Catalogs | 1 yr | 1,326 | (1,326 | ) | — | 1,283 | (1,283 | ) | — | ||||||||||||||||||||||||
ProvisionX Technology | 6 yrs | 218 | (218 | ) | — | 211 | (211 | ) | — | ||||||||||||||||||||||||
Carrier contract and related relationships | 5 yrs | 20,614 | (19,921 | ) | 693 | 19,940 | (19,645 | ) | 295 | ||||||||||||||||||||||||
Licensed content | 5 yrs | 3,028 | (3,028 | ) | — | 3,040 | (3,040 | ) | — | ||||||||||||||||||||||||
Service provider license | 9 yrs | 479 | (348 | ) | 131 | 482 | (324 | ) | 158 | ||||||||||||||||||||||||
Trademarks | 7 yrs | 5,230 | (1,838 | ) | 3,392 | 5,230 | (1,480 | ) | 3,750 | ||||||||||||||||||||||||
46,031 | (39,237 | ) | 6,794 | 43,037 | (38,148 | ) | 4,889 | ||||||||||||||||||||||||||
Other intangible assets amortized to operating expenses: | |||||||||||||||||||||||||||||||||
Emux Technology | 6 yrs | 1,414 | (1,414 | ) | — | 1,368 | (1,368 | ) | — | ||||||||||||||||||||||||
Noncompete agreement | 4 yrs | 5,472 | (5,017 | ) | 455 | 5,452 | (4,742 | ) | 710 | ||||||||||||||||||||||||
Total intangibles assets subject to amortization | 6,886 | (6,431 | ) | 455 | 6,820 | (6,110 | ) | 710 | |||||||||||||||||||||||||
In-process research and development | n/a | 800 | — | 800 | — | — | — | ||||||||||||||||||||||||||
Total intangibles assets, net | $ | 53,717 | $ | (45,668 | ) | $ | 8,049 | $ | 49,857 | $ | (44,258 | ) | $ | 5,599 | |||||||||||||||||||
Acquisition-related intangibles included in the above table are finite-lived and are being amortized on a straight-line basis over their estimated lives, which approximates the pattern in which the economic benefits of the intangible assets are realized. The Company has included amortization of acquired intangible assets directly attributable to revenue-generating activities in cost of revenues. The Company has included amortization of acquired intangible assets not directly attributable to revenue-generating activities in operating expenses. The Company acquired $3,700 of identifiable intangible assets from its acquisition of PlayFirst. See Note 5 for further details. | |||||||||||||||||||||||||||||||||
During the three months ended June 30, 2014 and 2013, the Company recorded amortization expense in the amounts of $441 and $1,078, respectively, in cost of revenues. During the six months ended June 30, 2014 and 2013, the Company recorded amortization expense in the amounts of $995 and $2,152, respectively, in cost of revenues. During the three months ended June 30, 2014 and 2013, the Company recorded amortization expense in the amounts of $127 and $495, respectively, in operating expenses. During the six months ended June 30, 2014 and 2013, the Company recorded amortization expense in the amounts of $254 and $990, respectively, in operating expenses. | |||||||||||||||||||||||||||||||||
As of June 30, 2014, 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 (remaining six months) | $ | 1,047 | $ | 254 | $ | 1,301 | |||||||||||||||||||||||||||
2015 | 1,894 | 201 | 2,095 | ||||||||||||||||||||||||||||||
2016 | 1,638 | — | 1,638 | ||||||||||||||||||||||||||||||
2017 | 1,129 | — | 1,129 | ||||||||||||||||||||||||||||||
2018 and thereafter | 1,086 | — | 1,086 | ||||||||||||||||||||||||||||||
Total intangible assets subject to amortization | 6,794 | 455 | 7,249 | ||||||||||||||||||||||||||||||
In-process research and development | — | — | 800 | ||||||||||||||||||||||||||||||
Total intangible assets, net | $ | 6,794 | $ | 455 | $ | 8,049 | |||||||||||||||||||||||||||
Goodwill | |||||||||||||||||||||||||||||||||
The Company has goodwill attributable to its MIG, GameSpy, Blammo, Griptonite and PlayFirst acquisitions as of June 30, 2014. The Company attributed all of the goodwill resulting from the MIG acquisition to its Asia and Pacific (“APAC”) reporting unit. All of the goodwill attributable to the GameSpy, Blammo, Griptonite and PlayFirst acquisitions has been fully assigned to the Company’s Americas reporting unit. The Company had fully impaired in prior years all goodwill allocated to its EMEA reporting unit. The goodwill allocated to the Americas reporting unit is denominated in U.S. Dollars (“USD”) and the goodwill allocated to the APAC reporting unit is denominated in Chinese Renminbi (“RMB”). As a result, the goodwill attributed to the APAC reporting unit is subject to foreign currency fluctuations. | |||||||||||||||||||||||||||||||||
In the valuation of the goodwill balance for Griptonite, Blammo, MIG, GameSpy and PlayFirst 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, Blammo and PlayFirst 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 reporting unit for the periods indicated was as follows: | |||||||||||||||||||||||||||||||||
June 30, 2014 | December 31, 2013 | ||||||||||||||||||||||||||||||||
Americas | EMEA | APAC | Total | Americas | EMEA | APAC | Total | ||||||||||||||||||||||||||
Balance as of January 1 | |||||||||||||||||||||||||||||||||
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 | ) | |||||||||||||||||
18,075 | — | 1,410 | 19,485 | 18,075 | — | 1,365 | 19,440 | ||||||||||||||||||||||||||
Goodwill Acquired during the year | 11,333 | — | — | 11,333 | — | — | — | — | |||||||||||||||||||||||||
Effects of Foreign Currency Exchange | — | — | (9 | ) | (9 | ) | — | — | 45 | 45 | |||||||||||||||||||||||
Balance as of period ended: | 29,408 | — | 1,401 | 30,809 | 18,075 | — | 1,410 | 19,485 | |||||||||||||||||||||||||
Goodwill | 54,279 | 25,354 | 24,287 | 103,920 | 42,946 | 25,354 | 24,296 | 92,596 | |||||||||||||||||||||||||
Accumulated Impairment Losses | (24,871 | ) | (25,354 | ) | (22,886 | ) | (73,111 | ) | (24,871 | ) | (25,354 | ) | (22,886 | ) | (73,111 | ) | |||||||||||||||||
Balance as of period ended: | $ | 29,408 | $ | — | $ | 1,401 | $ | 30,809 | $ | 18,075 | $ | — | $ | 1,410 | $ | 19,485 | |||||||||||||||||
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. The Company performs its 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. |
Commitments_and_Contingencies
Commitments and Contingencies | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
Commitments And Contingencies Disclosure [Abstract] | ' | ||||
Commitments and Contingencies | ' | ||||
Note 7 – Commitments and Contingencies | |||||
Leases | |||||
The Company leases office space under non-cancelable operating facility leases with various expiration dates through September 2020. Rent expense for the three months ended June 30, 2014 and 2013 was $956 and $791, respectively. Rent expense for the six months ended June 30, 2014 and 2013 was $1,858 and $1,476, 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 $1,094 and $1,131 at June 30, 2014 and December 31, 2013, respectively, and was included within other long-term liabilities. | |||||
In April 2013 and June 2013, Company entered into lease agreements for space at its San Francisco headquarters and Washington offices that will expire on March 31, 2018 and September 30, 2020, respectively. On May 16, 2014, the Company entered into a lease amendment for its Washington offices to expand the rentable square footage by 13 square feet and amended the lease payment schedule. In addition, the deposit for the letter of credit related to the lease was increased by $60. The Company has provided deposits for lines of credit totaling $1,790 to secure its obligations under the leases, which have been classified as restricted cash on the Company’s unaudited condensed consolidated balance sheet as of June 30, 2014. | |||||
At June 30, 2014, future minimum lease payments under non-cancelable operating leases were as follows: | |||||
Minimum | |||||
Operating | |||||
Lease | |||||
Period Ending December 31, | Payments | ||||
2014 (remaining six months) | $ | 2,195 | |||
2015 | 4,378 | ||||
2016 | 3,771 | ||||
2017 | 2,944 | ||||
2018 | 1,329 | ||||
2019 and thereafter | 1,733 | ||||
$ | 16,350 | ||||
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 June 30, 2014 were $362, which are due over the remaining six months of 2014. | |||||
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 June 30, 2014 were $200, which are due over the remaining six months of 2014. 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 June 30, 2014, unrecognized tax benefits and potential interest and penalties are classified within “other long-term liabilities” on the Company’s unaudited condensed consolidated balance sheets. As of June 30, 2014, the settlement of the Company’s income tax liabilities could not be determined; however, the liabilities are not expected to become due within the next 12 months. | |||||
Indemnification Agreements | |||||
The Company has entered into agreements under which it indemnifies each of its officers and directors during his or her lifetime for certain events or occurrences while the officer or director is or was serving at the Company’s request in that capacity. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is unlimited; however, the Company has a director and officer insurance policy that limits its exposure and enables the Company to recover a portion of any future amounts paid. As a result of its insurance policy coverage, the Company believes the estimated fair value of these indemnification agreements is minimal. Accordingly, the Company had recorded no liabilities for these agreements as of June 30, 2014 or December 31, 2013. | |||||
In the ordinary course of its business, the Company includes standard indemnification provisions in most of its commercial agreements with Digital Storefronts and licensors. Pursuant to these provisions, the Company generally indemnifies these parties for losses suffered or incurred in connection with its games, including as a result of intellectual property infringement, viruses, worms and other malicious software, and legal or regulatory violations. The term of these indemnity provisions is generally perpetual after execution of the corresponding license agreement, and the maximum potential amount of future payments the Company could be required to make under these provisions is often unlimited. To date, the Company has not incurred costs to defend lawsuits or settle indemnified claims of these types. As a result, the Company believes the estimated fair value of these indemnity provisions is minimal. Accordingly, the Company had recorded no liabilities for these provisions as of June 30, 2014 or December 31, 2013. | |||||
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 | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Equity [Abstract] | ' | ||||||||||||
Stockholders' Equity | ' | ||||||||||||
Note 8 – Stockholders’ Equity | |||||||||||||
Acquisition | |||||||||||||
On May 14, 2014, as consideration for its acquisition of PlayFirst, the Company issued an aggregate of 2,849 shares of its common stock to PlayFirst shareholders, which is net of shares withheld to cover a net working capital adjustment, stockholders’ agent expenses and tax obligations of certain PlayFirst stockholders. In addition, the Company assumed approximately $3,480 of net PlayFirst liabilities. | |||||||||||||
Shares Issued in Connection with the Blammo Earnout | |||||||||||||
In May 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. In May 2014, the Company issued 435 shares of common stock to the former Blammo shareholders based on the Net Revenue that Blammo achieved for its fiscal year ended March 31, 2014. Based on a mutual understanding that was reached on June 30, 2014, in July 2014, the Company issued 750 shares of common stock to the former Blammo shareholders in lieu of the opportunity that the former Blammo shareholders otherwise would have had under the Share Purchase Agreement to earn up to 1,154 shares of the Company’s common stock for Fiscal 2015. The fair values of these earnout amounts have been presented in additional paid-in capital on the Company’s condensed consolidated balance sheet as of June 30, 2014. See Note 3 for more information about this issuance. | |||||||||||||
Public Offerings | |||||||||||||
In June 2014, the Company sold in an underwritten public offering an aggregate of 9,861 shares of its common stock at a public offering price of $3.50 per share for net cash proceeds of approximately $32,070 after underwriting discounts and other offering expenses. | |||||||||||||
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. | |||||||||||||
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, Equity-Based Payments to Non-Employees, 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. The Company recorded the warrant issuance as a 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 three and six months ended June 30, 2014, the Company did not incur any expenses related to the Warrant. In July 2014, MGM exercised 667 vested shares pursuant to which the Company received aggregate cash proceeds of $2,000. | |||||||||||||
In April 2014, the Company entered into a license agreement with MGM, United Artists Corporation and Danjaq, LLC pursuant to which the Company will develop and publish a free-to-play mobile game based on the James Bond film franchise. The commercial release by the Company of this mobile game, which is expected to occur in summer 2015, will trigger the vesting of an additional 1,000 shares subject to the Warrant. | |||||||||||||
During the six months ended June 30, 2014 and 2013, respectively, investors exercised warrants to purchase 522 and 2,825 shares of the Company’s common stock, and the Company received gross proceeds of $783 and $4,237, respectively, in connection with these exercises. These exercised warrants were issued by the Company in August 2010 in connection with a private placement transaction. | |||||||||||||
Warrants outstanding as of June 30, 2014 were as follows: | |||||||||||||
Number | |||||||||||||
Exercise | of Shares | ||||||||||||
Price | Outstanding | ||||||||||||
Term | per | Under | |||||||||||
Issue Date | (Years) | Share | Warrant | ||||||||||
August 2010 - Warrants issued in private offering | 5 | $ | 1.5 | 452 | |||||||||
July 2013 - Warrant issued to MGM | 5 | $ | 3 | 3,333 | |||||||||
3,785 | |||||||||||||
Stock_Option_and_Other_Benefit
Stock Option and Other Benefit Plans | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||||||
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. As of June 30, 2014, 1,294 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”). As of June 30, 2014, 1,414 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 effective November 2013, the Compensation Committee of the Company’s Board amended the Inducement Plan to permit the award of RSUs under the plan. As of June 30, 2014, 316 shares of common stock 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 six months ended June 30, 2014 is as follows: | |||||||||||||||||
Shares | |||||||||||||||||
Available | |||||||||||||||||
Balances at December 31, 2013 | 4,890 | ||||||||||||||||
Share-based awards granted (1) | (4,238 | ) | |||||||||||||||
Share-based awards canceled (2) | 958 | ||||||||||||||||
Balances at June 30, 2014 | 1,610 | ||||||||||||||||
-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 six months ended June 30, 2014, is as follows: | |||||||||||||||||
Weighted | |||||||||||||||||
Number of | Average | ||||||||||||||||
Units | Grant Date | ||||||||||||||||
Outstanding | Fair Value | ||||||||||||||||
Awarded and unvested, December 31, 2013 | 2,578 | $ | 2.91 | ||||||||||||||
Granted | 2,567 | 3.67 | |||||||||||||||
Vested | (207 | ) | 2.74 | ||||||||||||||
Forfeited | (234 | ) | 3.47 | ||||||||||||||
Awarded and unvested, June 30, 2014 | 4,704 | $ | 3.3 | ||||||||||||||
Restricted stock units expected to vest, June 30, 2014 | 3,646 | ||||||||||||||||
Stock Option Activity | |||||||||||||||||
The following table summarizes the Company’s stock option activity for the six months ended June 30, 2014: | |||||||||||||||||
Options Outstanding | |||||||||||||||||
Weighted | Weighted | ||||||||||||||||
Number | Average | Average | Aggregate | ||||||||||||||
of | Exercise | Contractual | Intrinsic | ||||||||||||||
Shares | Price | Term (Years) | Value | ||||||||||||||
Balances at December 31, 2013 | 10,399 | $ | 2.98 | ||||||||||||||
Options granted | 755 | 3.93 | |||||||||||||||
Options canceled | (585 | ) | 3.81 | ||||||||||||||
Options exercised | (2,250 | ) | 2.09 | ||||||||||||||
Balances at June 30, 2014 | 8,319 | $ | 3.24 | 3.84 | $ | 15,744 | |||||||||||
Options vested and expected to vest at June 30, 2014 | 7,704 | $ | 3.24 | 3.76 | $ | 14,657 | |||||||||||
Options exercisable at June 30, 2014 | 4,270 | $ | 3.24 | 3.06 | $ | 8,587 | |||||||||||
The aggregate intrinsic value in the preceding table is calculated as the difference between the exercise price of the underlying awards and the quoted closing price of the Company’s common stock on The NASDAQ Global Market of $5.00 per share as of June 30, 2014 (the last trading day in the quarter). Consolidated net cash proceeds from option exercises were $4,699 and $417 for the six months ended June 30, 2014 and 2013, respectively. The Company realized no significant income tax benefit from stock option exercises during the three or six months ended June 30, 2014 or 2013. 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. | |||||||||||||||||
Stock-Based Compensation | |||||||||||||||||
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. | |||||||||||||||||
During the three months ended June 30, 2014, the Company granted to its Chief Executive Officer two RSU awards for a total of 575 shares of the Company’s common stock with both time-based and stock-price-based vesting components (the “Market-Based RSUs”). One of the Market-Based RSUs for 225 shares vests over four years but also required that the Company’s average closing stock price for 30 consecutive trading days equal $7.00 per share or greater (the “$7.00 Vesting Trigger”). The other Market-Based RSU for 350 shares also vests over four years but required that the Company’s average closing stock price for 30 consecutive trading days equal $10.00 per share or greater (the “$10.00 Vesting Trigger”). The Company estimated the fair values and derived service periods of the Market-Based RSUs on the date of grant using a Monte Carlo valuation model. The total fair value of both Market-Based RSUs was estimated at $1,311 and is recognized in tranches over the longer of the derived service period or time-based vesting period on a graded vesting basis. Key assumptions for the three and six months ended June 30, 2014 included an expected volatility of 48.5%, risk-free rate of 1.35%, dividend yield of 0.00%, and grant price of $4.05 based on closing price of the Company’s common stock on The NASDAQ Global Market on April 24, 2014. On July 24, 2014, the Compensation Committee of the Company’s Board of Directors approved a modification to the Market-Based RSUs to remove the $7.00 Vesting Trigger and the $10.00 Vesting Trigger. Accordingly, the Market-Based RSUs will only be subject to time-based vesting from July 24, 2014 onwards. | |||||||||||||||||
Under Compensation-Stock Compensation (“ASC 718”), the Company estimated the fair value of each option award on the grant date using the Black-Scholes option valuation model and the weighted average assumptions noted in the following table. | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Dividend yield | — | % | — | % | — | % | — | % | |||||||||
Risk-free interest rate | 1.31 | % | 0.69 | % | 1.3 | % | 0.66 | % | |||||||||
Expected volatility | 48.5 | % | 52.2 | % | 48.6 | % | 52.6 | % | |||||||||
Expected term (years) | 4 | 4 | 4 | 4 | |||||||||||||
The Company based its expected volatility on its own historic volatility and the historical volatility of a peer group of publicly traded entities. The expected term of options gave consideration to early exercises, post-vesting cancellations and the options’ six-year contractual term. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury Constant Maturity Rate as of the date of grant. The weighted-average fair value of stock options granted during the six months ended June 30, 2014 and 2013 was $1.53 and $1.07 per share, respectively. | |||||||||||||||||
The Company calculated employee stock-based compensation expense recognized for the three and six months ended June 30, 2014 and 2013 based on awards ultimately expected to vest and reduced it for estimated forfeitures. ASC 718 requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. | |||||||||||||||||
The following table summarizes the consolidated stock-based compensation expense by line items in the condensed consolidated statement of operations: | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Research and development | $ | 3,605 | $ | 163 | $ | 5,922 | $ | 831 | |||||||||
Sales and marketing | 190 | 93 | 291 | 160 | |||||||||||||
General and administrative | 771 | 480 | 1,332 | 990 | |||||||||||||
Total stock-based compensation expense | $ | 4,566 | $ | 736 | $ | 7,545 | $ | 1,981 | |||||||||
The above table includes compensation expense attributable to the consideration that was issuable to the Blammo employees who were former shareholders of Blammo, which was recorded as research and development expensed over the term of the earn-out periods, since these employees are primarily employed in product development. The Company re-measured the fair value of the contingent consideration each reporting period and only recorded a compensation expense for the portion of the earn-out target that was likely to be achieved. During the three and six months ended June 30, 2014, the Company recorded $2,894 and $4,559 of stock-based compensation expense, respectively, related to this contingent consideration. During the three and six months ended June 30, 2013, the Company recorded $214 and $27 of stock-based compensation income and expense, respectively, related to this contingent consideration. Since the contingency related to the number of shares to be earned in connection with all earnout years was resolved as of June 30, 2014, the full fair value of the shares has been presented in additional paid in capital. See Note 3 for further details. | |||||||||||||||||
As of June 30, 2014, the Company had $10,748 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 June 30, 2014, the Company had $5,385 of total unrecognized compensation expense related to stock options, net of estimated forfeitures, which will be recognized over a weighted average period of 2.41 years. As permitted by ASC 718, the Company has deferred the recognition of its excess tax benefit from non-qualified stock option exercises. |
Income_Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
Note 10 – Income Taxes | |
The Company recorded an income tax provision of $78 and $522 for the three and six months ended June 30, 2014 and an income tax benefit of $2,870 and $2,735 for the three and six months ended June 30, 2013, respectively, primarily related to foreign income taxes. The income tax rates vary from the Federal and State statutory rates due to the valuation allowances on the Company’s net operating losses, foreign tax rate differences and withholding taxes. | |
The Company estimates its annual effective tax rate at the end of each quarterly period and records the tax effect of certain discrete items, which are unusual or occur infrequently, in the interim period in which they occur. In addition, jurisdictions with a projected loss for the year or a year-to-date loss where no tax benefit can be recognized and jurisdictions where a reliable estimate of ordinary income cannot be made are excluded from the estimated annual effective tax rate. The impact of such an exclusion could result in a higher or lower effective tax rate during a particular quarter depending on the mix and timing of actual earnings versus annual projections. The Company’s ability to use its net operating loss carryforwards and federal and state tax credit carryforwards to offset future taxable income and future taxes, respectively, may be subject to restrictions attributable to equity transactions that result in changes in ownership as defined by Internal Revenue Code Section 382. | |
The Company accounts for uncertain tax positions in accordance with ASC 740, Income Taxes. As of June 30, 2014 and December 31, 2013, the total amount of unrecognized tax benefits was $6,574 and $6,538, respectively. As of June 30, 2014 and December 31, 2013, approximately $1,951 and $1,915, respectively, of unrecognized tax benefits, if recognized, would impact the Company’s effective tax rate. The remaining balance, if recognized, would adjust the Company’s deferred tax assets, each of which are subject to a valuation allowance. As of June 30, 2014, the Company anticipated that the liability for uncertain tax positions, excluding interest and penalties, could decrease by approximately $1,307 within the next twelve months due to the expiration of certain statutes of limitation in foreign jurisdictions in which the Company does business. In July 2014, the Company received a closure notice for an ongoing tax return inquiry indicating no adjustments. The liability for uncertain tax positions associated with this inquiry will decrease by approximately $846 in the third quarter of 2014. | |
The Company’s policy is to recognize interest and penalties related to unrecognized tax benefits in income tax expense. The Company recorded a benefit of $2 and expense of $16 related to interest on uncertain tax positions during the three and six months ended June 30, 2014 and $30 and $70 of interest on uncertain tax positions during the three and six months ended June 30, 2013, respectively. As of June 30, 2014 and December 31, 2013, the Company had a liability of $310 and $283, respectively, related to interest and penalties for uncertain tax positions. | |
The Company is subject to taxation in the United States and various foreign jurisdictions. The material jurisdictions subject to examination by tax authorities are primarily the State of California, United States, United Kingdom, Canada, and China. The Company’s federal and California tax returns are open by statute for tax years 2002 and forward and could be subject to examination by the tax authorities. The statute of limitations for the Company’s 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 2009 and forward. |
Segment_Reporting
Segment Reporting | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Segment Reporting | ' | ||||||||||||||||
Note 11 – Segment Reporting | |||||||||||||||||
ASC 280, Segment Reporting, 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 purposes of enterprise-wide disclosures, the Company attributes revenues to geographic areas based on the country in which the distributor’s, advertising service provider’s or carrier’s principal operations are located. In the case of Digital Storefronts, revenues are attributed to the geographic location where the end-user makes the purchase. The Company generates its revenues in the following geographic regions: | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
United States of America | $ | 21,650 | $ | 9,921 | $ | 45,035 | $ | 20,945 | |||||||||
China | 3,376 | 3,211 | 7,231 | 5,459 | |||||||||||||
Americas, excluding the USA | 1,767 | 1,349 | 3,734 | 2,508 | |||||||||||||
EMEA | 8,344 | 5,346 | 17,124 | 10,798 | |||||||||||||
APAC, excluding China | 5,773 | 4,618 | 12,366 | 9,340 | |||||||||||||
$ | 40,910 | $ | 24,445 | $ | 85,490 | $ | 49,050 | ||||||||||
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: | |||||||||||||||||
June 30, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Americas | $ | 3,419 | $ | 4,108 | |||||||||||||
EMEA | 810 | 899 | |||||||||||||||
APAC | 43 | 89 | |||||||||||||||
$ | 4,272 | $ | 5,096 | ||||||||||||||
Restructuring
Restructuring | 6 Months Ended |
Jun. 30, 2014 | |
Restructuring And Related Activities [Abstract] | ' |
Restructuring | ' |
Note 12 – Restructuring | |
During 2013 and 2014, the Company’s management approved restructuring plans to improve the effectiveness and efficiency of its operating model and reduce operating expenses around the world. During the six months ended June 30, 2013, the Company recorded $1,448 of restructuring plan charges relating to employee termination costs in its Brazil, San Francisco, China, Kirkland, and EMEA offices, and facility-related costs related to streamlining its facility in Kirkland, Washington and additional costs associated with vacating its Brazil office. In addition, the Company recorded a non-cash adjustment of $238 in respect of the cumulative translation adjustment related to the Company’s Brazilian subsidiary that was reclassified to net loss upon the substantial liquidation of the entity and is recognized in restructuring charge on the Company’s unaudited condensed consolidated income statement for the six months ended June 30, 2013. During the three and six months ended June 30, 2014, the Company recorded $159 of restructuring charges relating to employee termination costs associated with headcount reductions in its Moscow and San Francisco studios. |
Subsequent_Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
Note 13 – Subsequent Events | |
Cie Games Acquisition | |
On July 30, 2014, the Company agreed to acquire Cie Games, Inc., a Delaware corporation (“Cie Games”), pursuant to an Agreement and Plan of Merger and Reorganization (the “Merger Agreement”) by and among the Company, Cie Games, Cie Digital Labs, LLC, a California limited liability company and the holder of a majority of the outstanding capital stock of Cie Games (“Parent”), Cardinals Acquisition Merger Corporation, a Delaware corporation and a wholly owned subsidiary of the Company (“Sub I”), Cardinals Acquisition Merger LLC, a Delaware limited liability company and a wholly owned subsidiary of the Company (“Sub II,” and together with Sub I, the “Merger Subs”), and Shareholder Representative Services, LLC, as Stockholders’ Agent (the “Stockholders’ Agent”). Pursuant to the Merger Agreement, the Company will acquire Cie Games through the statutory merger of Sub I with and into Cie Games (the “First Merger”) with Cie Games continuing as the surviving entity of the First Merger and as a wholly-owned subsidiary of the Company, and, as part of the same overall transaction, the surviving entity of the First Merger shall merge with and into Sub II (the “Second Merger” and together with the First Merger, the “Mergers”) with Sub II continuing as the surviving entity of the Second Merger and as a wholly owned subsidiary of the Company. Cie Games, which is based in Long Beach, California, employs approximately 52 people and develops free-to-play racing games for use on mobile devices and Facebook. The Company acquired Cie Games to leverage its racing genre expertise, assembled workforce and existing mobile games in order to expand and enhance the Company’s game offerings on smartphones and tablets. | |
At the closing of the First Merger (the “Closing”), the Company will issue in exchange for all of the issued and outstanding shares of Cie Games an aggregate of (1) approximately $30,280 in cash and (2) approximately 9,983 shares of the Company’s common stock (the “Shares”). Approximately 2,139 of the Shares will be held in escrow by the Company for 18 months to satisfy potential indemnification claims under the Merger Agreement. In addition, $280 of the cash consideration will be held back and released to the former stockholders of Cie Games to the extent the Company receives a tax refund relating to Cie Games’ operations from January 1, 2014 through the date of the Closing. The total cash consideration paid by the Company in the Mergers will be reduced to the extent, without duplication, that Cie Games’ estimated closing balance sheet reflects (1) a cash balance of less than $2,500, (2) a cash plus accounts receivable balance of less than $6,000 and (3) a net working capital balance of less than approximately $4,414. $250 of the cash consideration will be held back to satisfy actual shortfalls of these amounts as of the date of the Closing, if any. | |
The Mergers have been approved by the Cie Games’ stockholders; however, the consummation of the First Merger remains subject to various other closing conditions, including obtaining certain third party consents required under existing Cie Games’ contracts. Subject to certain exceptions, either the Company or Cie Games may terminate the Merger Agreement if the Closing does not occur before September 30, 2014. |
The_Company_Basis_of_Presentat1
The Company, Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Principles of Consolidation and Basis of Presentation | ' | ||||||||||||||||
Principles of Consolidation and Basis of Presentation | |||||||||||||||||
The accompanying unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles (“GAAP”) in the United States for complete financial statements and should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013 filed with the SEC on March 14, 2014. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments, consisting only of normal recurring adjustments, which the Company believes are necessary for a fair statement of the Company’s financial position as of June 30, 2014 and its unaudited condensed consolidated results of operations for the three and six months ended June 30, 2014 and 2013, respectively. These unaudited condensed consolidated financial statements are not necessarily indicative of the results to be expected for the entire year. The unaudited condensed consolidated balance sheet presented as of December 31, 2013 has been derived from the audited consolidated financial statements as of that date, and the unaudited condensed consolidated balance sheet presented as of June 30, 2014 has been derived from the unaudited condensed consolidated financial statements as of that date. | |||||||||||||||||
The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated. | |||||||||||||||||
Concentration of Credit Risk | ' | ||||||||||||||||
Concentration of Credit Risk | |||||||||||||||||
Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash, cash equivalents and accounts receivable. | |||||||||||||||||
The Company derives its accounts receivable from revenues earned from customers or through Digital Storefronts located in the U.S. and other locations outside of the U.S. The Company performs ongoing credit evaluations of its customers’ and the Digital Storefronts’ financial condition and currently does not require any collateral from its customers or the Digital Storefronts. The Company bases its allowance for doubtful accounts on management’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable. The Company reviews past due balances over a specified amount individually for collectability on a monthly basis. The Company writes off accounts receivable balances against the allowance when it determines that the amount will not be recovered. | |||||||||||||||||
The following table summarizes the revenues from customers or aggregate purchases through Digital Storefronts that accounted for more than 10% of the Company’s revenues for the periods indicated: | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Apple | 43.4 | % | 53.3 | % | 47.2 | % | 50.4 | % | |||||||||
28.4 | 17.9 | 25.7 | 18.7 | ||||||||||||||
At June 30, 2014, Apple Inc. (“Apple”) accounted for 41.3%, Upsight (successor-in-interest to Medium Entertainment, dba PlayHaven) accounted for 16.1%, and Google Inc. (“Google”) accounted for 14.0% of total accounts receivable. At December 31, 2013, Apple accounted for 46.3%, and Jirbo (dba AdColony) and Google each accounted for 11.1% of total accounts receivable. No other customer or Digital Storefront represented more than 10% of the Company’s total accounts receivable as of these dates. | |||||||||||||||||
Recent Accounting Pronouncements | ' | ||||||||||||||||
Recent Accounting Pronouncements | |||||||||||||||||
In 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 did not have a material impact on the Company’s condensed consolidated financial statements once adopted. | |||||||||||||||||
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. Under this guidance, revenue is recognized when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. The updated standard will replace most existing revenue recognition guidance under U.S. GAAP when it becomes effective and permits the use of either the retrospective or cumulative effect transition method. Early adoption is not permitted. The updated standard will be effective for the Company beginning January 1, 2017. The Company has not yet selected a transition method and is currently evaluating the effect that the updated standard will have on its consolidated financial statements and related disclosures. |
The_Company_Basis_of_Presentat2
The Company, Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Revenues from Customers or Aggregate Purchases through Digital Storefronts Accounted for More Than Ten Percent of Revenues | ' | ||||||||||||||||
The following table summarizes the revenues from customers or aggregate purchases through Digital Storefronts that accounted for more than 10% of the Company’s revenues for the periods indicated: | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Apple | 43.4 | % | 53.3 | % | 47.2 | % | 50.4 | % | |||||||||
28.4 | 17.9 | 25.7 | 18.7 |
Net_Loss_Per_Share_Tables
Net Loss Per Share (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
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 common shares subject to restrictions imposed by the Company. | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Net loss | $ | (3,768 | ) | $ | (2,921 | ) | $ | (3,635 | ) | $ | (8,418 | ) | |||||
Basic and diluted shares used to compute net loss per share: | |||||||||||||||||
Weighted average common shares outstanding | 86,340 | 69,902 | 83,075 | 68,196 | |||||||||||||
Weighted average common shares subject to restrictions | (791 | ) | (90 | ) | (441 | ) | (91 | ) | |||||||||
Weighted average shares used to compute basic and diluted net loss per share | 85,549 | 69,812 | 82,634 | 68,105 | |||||||||||||
Net loss per share — basic and diluted | $ | (0.04 | ) | $ | (0.04 | ) | $ | (0.04 | ) | $ | (0.12 | ) | |||||
Anti-Dilutive Securities Excluded from Computation of Diluted Net Loss Per Share of Common Stock | ' | ||||||||||||||||
The following weighted average options to purchase common stock, warrants to purchase common stock, shares of common stock subject to restrictions, shares contingently issuable in connection with the Blammo earnout (as described below in Note 3 – Fair Value Measurements), and restricted stock units (“RSUs”) have been excluded from the computation of diluted net loss per share of common stock for the periods presented because including them would have had an anti-dilutive effect: | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Warrants to purchase common stock | 3,786 | 1,363 | 3,102 | 2,560 | |||||||||||||
Common shares subject to restrictions | 791 | 90 | 441 | 91 | |||||||||||||
Options to purchase common stock | 8,343 | 10,559 | 7,585 | 10,599 | |||||||||||||
Contingently issuable shares of common stock | 750 | — | 375 | 377 | |||||||||||||
RSUs | 4,305 | 538 | 2,934 | 269 | |||||||||||||
17,975 | 12,550 | 14,437 | 13,896 | ||||||||||||||
Balance_Sheet_Components_Table
Balance Sheet Components (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ' | ||||||||
Accounts Receivable | ' | ||||||||
Accounts Receivable | |||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Accounts receivable | $ | 16,246 | $ | 18,764 | |||||
Less: Allowance for doubtful accounts | (283 | ) | (459 | ) | |||||
$ | 15,963 | $ | 18,305 | ||||||
Prepaid Expenses and Other | ' | ||||||||
Prepaid expenses and other | |||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Deferred platform commission fees | 3,670 | 4,516 | |||||||
Prepaid royalties | 562 | 740 | |||||||
Prepaids and other | 2,264 | 2,407 | |||||||
$ | 6,496 | 7,663 | |||||||
Property and Equipment | ' | ||||||||
Property and Equipment | |||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Computer equipment | $ | 6,334 | $ | 6,134 | |||||
Furniture and fixtures | 876 | 862 | |||||||
Software | $ | 6,546 | 6,290 | ||||||
Leasehold improvements | $ | 2,680 | 2,768 | ||||||
16,436 | 16,054 | ||||||||
Less: Accumulated depreciation and amortization | (12,164 | ) | (10,958 | ) | |||||
$ | 4,272 | $ | 5,096 | ||||||
Other Long-Term Liabilities | ' | ||||||||
Other Long-Term Liabilities | |||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Deferred rent | 1,094 | 1,131 | |||||||
Uncertain tax position obligations | 922 | 890 | |||||||
Other | 232 | 336 | |||||||
$ | 2,248 | $ | 2,357 | ||||||
Business_Combinations_Tables
Business Combinations (Tables) (PlayFirst) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
PlayFirst | ' | ||||||||||||||||
Fair Values of Assets Acquired and Liabilities Assumed | ' | ||||||||||||||||
The following table summarizes the preliminary fair values of assets acquired and liabilities assumed at the date of acquisition: | |||||||||||||||||
Assets acquired: | |||||||||||||||||
Cash | $ | 123 | |||||||||||||||
Accounts receivable, net | 737 | ||||||||||||||||
Other current assets | 145 | ||||||||||||||||
Property and equipment | 15 | ||||||||||||||||
Intangible assets: | |||||||||||||||||
Titles, content and technology | 2,200 | ||||||||||||||||
In Process Research and Development | 800 | ||||||||||||||||
Customer contract and related relationships | 700 | ||||||||||||||||
Goodwill | 11,333 | ||||||||||||||||
Total assets acquired | 16,053 | ||||||||||||||||
Liabilities assumed: | |||||||||||||||||
Accounts payable | (1,509 | ) | |||||||||||||||
Other accrued liabilities | (651 | ) | |||||||||||||||
Line of credit | (890 | ) | |||||||||||||||
Term loan | (1,450 | ) | |||||||||||||||
Total liabilities acquired | (4,500 | ) | |||||||||||||||
Net acquired assets | $ | 11,553 | |||||||||||||||
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 PlayFirst for the periods shown as if the acquisition of PlayFirst had occurred on January 1, 2013. 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. | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Total pro forma revenues | $ | 41,698 | $ | 27,283 | $ | 88,738 | $ | 57,909 | |||||||||
Pro forma net loss | (4,670 | ) | (4,613 | ) | (5,133 | ) | (12,937 | ) | |||||||||
Pro forma net loss per share — basic and diluted | $ | (0.04 | ) | $ | (0.06 | ) | $ | (0.05 | ) | $ | (0.18 | ) |
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 6 Months Ended | ||||||||||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||||||
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 June 30, 2014 and December 31, 2013 were as follows: | |||||||||||||||||||||||||||||||||
June 30, 2014 | December 31, 2013 | ||||||||||||||||||||||||||||||||
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 | 3 yrs | $ | 15,136 | $ | (12,558 | ) | $ | 2,578 | $ | 12,851 | $ | (12,165 | ) | $ | 686 | ||||||||||||||||||
Catalogs | 1 yr | 1,326 | (1,326 | ) | — | 1,283 | (1,283 | ) | — | ||||||||||||||||||||||||
ProvisionX Technology | 6 yrs | 218 | (218 | ) | — | 211 | (211 | ) | — | ||||||||||||||||||||||||
Carrier contract and related relationships | 5 yrs | 20,614 | (19,921 | ) | 693 | 19,940 | (19,645 | ) | 295 | ||||||||||||||||||||||||
Licensed content | 5 yrs | 3,028 | (3,028 | ) | — | 3,040 | (3,040 | ) | — | ||||||||||||||||||||||||
Service provider license | 9 yrs | 479 | (348 | ) | 131 | 482 | (324 | ) | 158 | ||||||||||||||||||||||||
Trademarks | 7 yrs | 5,230 | (1,838 | ) | 3,392 | 5,230 | (1,480 | ) | 3,750 | ||||||||||||||||||||||||
46,031 | (39,237 | ) | 6,794 | 43,037 | (38,148 | ) | 4,889 | ||||||||||||||||||||||||||
Other intangible assets amortized to operating expenses: | |||||||||||||||||||||||||||||||||
Emux Technology | 6 yrs | 1,414 | (1,414 | ) | — | 1,368 | (1,368 | ) | — | ||||||||||||||||||||||||
Noncompete agreement | 4 yrs | 5,472 | (5,017 | ) | 455 | 5,452 | (4,742 | ) | 710 | ||||||||||||||||||||||||
Total intangibles assets subject to amortization | 6,886 | (6,431 | ) | 455 | 6,820 | (6,110 | ) | 710 | |||||||||||||||||||||||||
In-process research and development | n/a | 800 | — | 800 | — | — | — | ||||||||||||||||||||||||||
Total intangibles assets, net | $ | 53,717 | $ | (45,668 | ) | $ | 8,049 | $ | 49,857 | $ | (44,258 | ) | $ | 5,599 | |||||||||||||||||||
Total Expected Future Amortization Related to Intangible Assets | ' | ||||||||||||||||||||||||||||||||
As of June 30, 2014, 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 (remaining six months) | $ | 1,047 | $ | 254 | $ | 1,301 | |||||||||||||||||||||||||||
2015 | 1,894 | 201 | 2,095 | ||||||||||||||||||||||||||||||
2016 | 1,638 | — | 1,638 | ||||||||||||||||||||||||||||||
2017 | 1,129 | — | 1,129 | ||||||||||||||||||||||||||||||
2018 and thereafter | 1,086 | — | 1,086 | ||||||||||||||||||||||||||||||
Total intangible assets subject to amortization | 6,794 | 455 | 7,249 | ||||||||||||||||||||||||||||||
In-process research and development | — | — | 800 | ||||||||||||||||||||||||||||||
Total intangible assets, net | $ | 6,794 | $ | 455 | $ | 8,049 | |||||||||||||||||||||||||||
Goodwill by Reporting Unit | ' | ||||||||||||||||||||||||||||||||
Goodwill by reporting unit for the periods indicated was as follows: | |||||||||||||||||||||||||||||||||
June 30, 2014 | December 31, 2013 | ||||||||||||||||||||||||||||||||
Americas | EMEA | APAC | Total | Americas | EMEA | APAC | Total | ||||||||||||||||||||||||||
Balance as of January 1 | |||||||||||||||||||||||||||||||||
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 | ) | |||||||||||||||||
18,075 | — | 1,410 | 19,485 | 18,075 | — | 1,365 | 19,440 | ||||||||||||||||||||||||||
Goodwill Acquired during the year | 11,333 | — | — | 11,333 | — | — | — | — | |||||||||||||||||||||||||
Effects of Foreign Currency Exchange | — | — | (9 | ) | (9 | ) | — | — | 45 | 45 | |||||||||||||||||||||||
Balance as of period ended: | 29,408 | — | 1,401 | 30,809 | 18,075 | — | 1,410 | 19,485 | |||||||||||||||||||||||||
Goodwill | 54,279 | 25,354 | 24,287 | 103,920 | 42,946 | 25,354 | 24,296 | 92,596 | |||||||||||||||||||||||||
Accumulated Impairment Losses | (24,871 | ) | (25,354 | ) | (22,886 | ) | (73,111 | ) | (24,871 | ) | (25,354 | ) | (22,886 | ) | (73,111 | ) | |||||||||||||||||
Balance as of period ended: | $ | 29,408 | $ | — | $ | 1,401 | $ | 30,809 | $ | 18,075 | $ | — | $ | 1,410 | $ | 19,485 | |||||||||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
Commitments And Contingencies Disclosure [Abstract] | ' | ||||
Future Minimum Lease Payments under Non-Cancelable Operating Leases | ' | ||||
At June 30, 2014, future minimum lease payments under non-cancelable operating leases were as follows: | |||||
Minimum | |||||
Operating | |||||
Lease | |||||
Period Ending December 31, | Payments | ||||
2014 (remaining six months) | $ | 2,195 | |||
2015 | 4,378 | ||||
2016 | 3,771 | ||||
2017 | 2,944 | ||||
2018 | 1,329 | ||||
2019 and thereafter | 1,733 | ||||
$ | 16,350 | ||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Equity [Abstract] | ' | ||||||||||||
Warrants Outstanding | ' | ||||||||||||
Warrants outstanding as of June 30, 2014 were as follows: | |||||||||||||
Number | |||||||||||||
Exercise | of Shares | ||||||||||||
Price | Outstanding | ||||||||||||
Term | per | Under | |||||||||||
Issue Date | (Years) | Share | Warrant | ||||||||||
August 2010 - Warrants issued in private offering | 5 | $ | 1.5 | 452 | |||||||||
July 2013 - Warrant issued to MGM | 5 | $ | 3 | 3,333 | |||||||||
3,785 | |||||||||||||
Stock_Option_and_Other_Benefit1
Stock Option and Other Benefit Plans (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||||||
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 six months ended June 30, 2014 is as follows: | |||||||||||||||||
Shares | |||||||||||||||||
Available | |||||||||||||||||
Balances at December 31, 2013 | 4,890 | ||||||||||||||||
Share-based awards granted (1) | (4,238 | ) | |||||||||||||||
Share-based awards canceled (2) | 958 | ||||||||||||||||
Balances at June 30, 2014 | 1,610 | ||||||||||||||||
-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 six months ended June 30, 2014, is as follows: | |||||||||||||||||
Weighted | |||||||||||||||||
Number of | Average | ||||||||||||||||
Units | Grant Date | ||||||||||||||||
Outstanding | Fair Value | ||||||||||||||||
Awarded and unvested, December 31, 2013 | 2,578 | $ | 2.91 | ||||||||||||||
Granted | 2,567 | 3.67 | |||||||||||||||
Vested | (207 | ) | 2.74 | ||||||||||||||
Forfeited | (234 | ) | 3.47 | ||||||||||||||
Awarded and unvested, June 30, 2014 | 4,704 | $ | 3.3 | ||||||||||||||
Restricted stock units expected to vest, June 30, 2014 | 3,646 | ||||||||||||||||
Stock Option Activity | ' | ||||||||||||||||
The following table summarizes the Company’s stock option activity for the six months ended June 30, 2014: | |||||||||||||||||
Options Outstanding | |||||||||||||||||
Weighted | Weighted | ||||||||||||||||
Number | Average | Average | Aggregate | ||||||||||||||
of | Exercise | Contractual | Intrinsic | ||||||||||||||
Shares | Price | Term (Years) | Value | ||||||||||||||
Balances at December 31, 2013 | 10,399 | $ | 2.98 | ||||||||||||||
Options granted | 755 | 3.93 | |||||||||||||||
Options canceled | (585 | ) | 3.81 | ||||||||||||||
Options exercised | (2,250 | ) | 2.09 | ||||||||||||||
Balances at June 30, 2014 | 8,319 | $ | 3.24 | 3.84 | $ | 15,744 | |||||||||||
Options vested and expected to vest at June 30, 2014 | 7,704 | $ | 3.24 | 3.76 | $ | 14,657 | |||||||||||
Options exercisable at June 30, 2014 | 4,270 | $ | 3.24 | 3.06 | $ | 8,587 | |||||||||||
Schedule of Assumptions Used in Black-Scholes Valuation Model and Weighted Average Assumptions | ' | ||||||||||||||||
Under Compensation-Stock Compensation (“ASC 718”), the Company estimated the fair value of each option award on the grant date using the Black-Scholes option valuation model and the weighted average assumptions noted in the following table. | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Dividend yield | — | % | — | % | — | % | — | % | |||||||||
Risk-free interest rate | 1.31 | % | 0.69 | % | 1.3 | % | 0.66 | % | |||||||||
Expected volatility | 48.5 | % | 52.2 | % | 48.6 | % | 52.6 | % | |||||||||
Expected term (years) | 4 | 4 | 4 | 4 | |||||||||||||
Stock-Based Compensation Expense | ' | ||||||||||||||||
The following table summarizes the consolidated stock-based compensation expense by line items in the condensed consolidated statement of operations: | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Research and development | $ | 3,605 | $ | 163 | $ | 5,922 | $ | 831 | |||||||||
Sales and marketing | 190 | 93 | 291 | 160 | |||||||||||||
General and administrative | 771 | 480 | 1,332 | 990 | |||||||||||||
Total stock-based compensation expense | $ | 4,566 | $ | 736 | $ | 7,545 | $ | 1,981 | |||||||||
Segment_Reporting_Tables
Segment Reporting (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Revenues in Geographic Regions | ' | ||||||||||||||||
The Company generates its revenues in the following geographic regions: | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
United States of America | $ | 21,650 | $ | 9,921 | $ | 45,035 | $ | 20,945 | |||||||||
China | 3,376 | 3,211 | 7,231 | 5,459 | |||||||||||||
Americas, excluding the USA | 1,767 | 1,349 | 3,734 | 2,508 | |||||||||||||
EMEA | 8,344 | 5,346 | 17,124 | 10,798 | |||||||||||||
APAC, excluding China | 5,773 | 4,618 | 12,366 | 9,340 | |||||||||||||
$ | 40,910 | $ | 24,445 | $ | 85,490 | $ | 49,050 | ||||||||||
Long-Lived Assets by Geographical Area | ' | ||||||||||||||||
Property and equipment, net of accumulated depreciation and amortization, summarized by geographic location was as follows: | |||||||||||||||||
June 30, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Americas | $ | 3,419 | $ | 4,108 | |||||||||||||
EMEA | 810 | 899 | |||||||||||||||
APAC | 43 | 89 | |||||||||||||||
$ | 4,272 | $ | 5,096 | ||||||||||||||
The_Company_Basis_of_Presentat3
The Company, Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Accounting Policies [Abstract] | ' | ' | ' | ' | ' |
Accumulated deficit | $255,846 | ' | $255,846 | ' | $252,211 |
Net loss | $3,768 | $2,921 | $3,635 | $8,418 | ' |
Revenues_from_Customers_or_Agg
Revenues from Customers or Aggregate Purchases through Digital Storefronts Accounted for More Than Ten Percent of Revenues (Detail) (Revenues from customers) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Apple | ' | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' | ' |
Concentration risk percentage from customers | 43.40% | 53.30% | 47.20% | 50.40% |
' | ' | ' | ' | |
Concentration Risk [Line Items] | ' | ' | ' | ' |
Concentration risk percentage from customers | 28.40% | 17.90% | 25.70% | 18.70% |
The_Company_Basis_of_Presentat4
The Company, Basis of Presentation and Summary of Significant Accounting Policies - (Concentration of Credit Risk) (Detail) (Credit Concentration Risk, Accounts Receivable) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2014 | Dec. 31, 2013 | |
Apple | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration risk percentage from customers | 41.30% | 46.30% |
Ad Colony | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration risk percentage from customers | ' | 11.10% |
Upsight (Playhaven) | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration risk percentage from customers | 16.10% | ' |
' | ' | |
Concentration Risk [Line Items] | ' | ' |
Concentration risk percentage from customers | 14.00% | 11.10% |
Computation_of_Net_Loss_Per_Sh
Computation of Net Loss Per Share (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Net loss | ($3,768) | ($2,921) | ($3,635) | ($8,418) |
Basic and diluted shares used to compute net loss per share: | ' | ' | ' | ' |
Weighted average common shares outstanding | 86,340 | 69,902 | 83,075 | 68,196 |
Weighted average common shares subject to restrictions | -791 | -90 | -441 | -91 |
Weighted average shares used to compute basic and diluted net loss per share | 85,549 | 69,812 | 82,634 | 68,105 |
Net loss per share - basic and diluted | ($0.04) | ($0.04) | ($0.04) | ($0.12) |
AntiDilutive_Securities_Exclud
Fair Value Measurements - Additional Information (Detail) (USD $) | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 0 Months Ended | 1 Months Ended | 3 Months Ended | 6 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | ||||||||||||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Mar. 31, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Aug. 01, 2011 | 31-May-14 | 31-May-13 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Aug. 01, 2011 | Aug. 01, 2011 | Jul. 11, 2014 | Jul. 31, 2014 | Jul. 11, 2014 | Jul. 31, 2014 | 31-May-14 | Jun. 30, 2014 | Mar. 31, 2014 |
Level 1 | Level 1 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Blammo | Blammo | Blammo | Blammo | Blammo | Blammo | Blammo | Blammo | Blammo | Blammo | Blammo | Blammo | Blammo | Blammo | Blammo | Blammo | |||
Additional Paid-In Capital | Minimum | Minimum | Maximum | Maximum | Revenue Above Baseline Upside April 1, 2014 through March 31, 2015 | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Level 3 | Level 3 | Level 3 | |||||||||||||||||
Fiscal 2015 | Fiscal 2015 | Additional Paid-In Capital | Additional Paid-In Capital | ||||||||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash equivalents | ' | ' | $71,456 | $28,496 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issue additional shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,313 | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, shares issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000 | 435 | 742 | ' | ' | ' | ' | ' | ' | 750 | 750 | 1,154 | 1,154 | 435 | ' | ' |
Fair value of shares issued | ' | ' | ' | ' | ' | ' | ' | ' | 2,263 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,750 | 2,071 |
Net revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,000 | ' | ' | ' | ' | ' | ' | ' |
Change in fair value of non-employee contingent liabilities | 835 | -18 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 531 | 48 | 835 | 18 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of contingent liabilities | ' | ' | ' | ' | ' | 0 | ' | 427 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of contingent consideration recognized as a current liability | ' | ' | ' | ' | ' | ' | ' | $329 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contingent consideration business acquisition | ' | ' | ' | ' | ' | 'The Company used a risk-neutral framework to estimate the probability of achieving the revenue targets set forth above for each year. The fair value of the contingent consideration was determined using a digital option, which captures the present value of the expected payment multiplied by the probability of reaching the revenue targets for each year. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected discount rate | ' | ' | ' | ' | 35.00% | ' | 35.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected volatility percent | ' | ' | ' | ' | 37.00% | ' | 37.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected risk-free interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.12% | 0.12% | 0.31% | 0.31% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) (USD $) | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 0 Months Ended | 1 Months Ended | 3 Months Ended | 6 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | ||||||||||||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Mar. 31, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Aug. 01, 2011 | 31-May-14 | 31-May-13 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Aug. 01, 2011 | Aug. 01, 2011 | Jul. 11, 2014 | Jul. 31, 2014 | Jul. 11, 2014 | Jul. 31, 2014 | 31-May-14 | Jun. 30, 2014 | Mar. 31, 2014 |
Level 1 | Level 1 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Blammo | Blammo | Blammo | Blammo | Blammo | Blammo | Blammo | Blammo | Blammo | Blammo | Blammo | Blammo | Blammo | Blammo | Blammo | Blammo | |||
Additional Paid-In Capital | Minimum | Minimum | Maximum | Maximum | Revenue Above Baseline Upside April 1, 2014 through March 31, 2015 | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Level 3 | Level 3 | Level 3 | |||||||||||||||||
Fiscal 2015 | Fiscal 2015 | Additional Paid-In Capital | Additional Paid-In Capital | ||||||||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash equivalents | ' | ' | $71,456 | $28,496 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issue additional shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,313 | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, shares issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000 | 435 | 742 | ' | ' | ' | ' | ' | ' | 750 | 750 | 1,154 | 1,154 | 435 | ' | ' |
Fair value of shares issued | ' | ' | ' | ' | ' | ' | ' | ' | 2,263 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,750 | 2,071 |
Net revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,000 | ' | ' | ' | ' | ' | ' | ' |
Change in fair value of non-employee contingent liabilities | 835 | -18 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 531 | 48 | 835 | 18 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of contingent liabilities | ' | ' | ' | ' | ' | 0 | ' | 427 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of contingent consideration recognized as a current liability | ' | ' | ' | ' | ' | ' | ' | $329 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contingent consideration business acquisition | ' | ' | ' | ' | ' | 'The Company used a risk-neutral framework to estimate the probability of achieving the revenue targets set forth above for each year. The fair value of the contingent consideration was determined using a digital option, which captures the present value of the expected payment multiplied by the probability of reaching the revenue targets for each year. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected discount rate | ' | ' | ' | ' | 35.00% | ' | 35.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected volatility percent | ' | ' | ' | ' | 37.00% | ' | 37.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected risk-free interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.12% | 0.12% | 0.31% | 0.31% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accounts_Receivable_Detail
Accounts Receivable (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Receivables [Abstract] | ' | ' |
Accounts receivable | $16,246 | $18,764 |
Less: Allowance for doubtful accounts | -283 | -459 |
Accounts receivable, net | $15,963 | $18,305 |
Balance_Sheet_Components_Addit
Balance Sheet Components - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Statement Of Financial Position [Abstract] | ' | ' | ' | ' |
Allowance for bad debts | $0 | $0 | $0 | $0 |
Depreciation expense | $607 | $661 | $1,227 | $1,392 |
Prepaid_Expenses_and_Other_Det
Prepaid Expenses and Other (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Prepaid Expense and Other Assets, Current [Abstract] | ' | ' |
Deferred platform commission fees | $3,670 | $4,516 |
Prepaid royalties | 562 | 740 |
Prepaids and other | 2,264 | 2,407 |
Prepaid expenses and other | $6,496 | $7,663 |
Property_and_Equipment_Detail
Property and Equipment (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property Plant And Equipment [Abstract] | ' | ' |
Computer equipment | $6,334 | $6,134 |
Furniture and fixtures | 876 | 862 |
Software | 6,546 | 6,290 |
Leasehold improvements | 2,680 | 2,768 |
Property, Plant and Equipment, Gross, Total | 16,436 | 16,054 |
Less: Accumulated depreciation and amortization | -12,164 | -10,958 |
Property and equipment, net | $4,272 | $5,096 |
Other_LongTerm_Liabilities_Det
Other Long-Term Liabilities (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Liabilities, Noncurrent [Abstract] | ' | ' |
Deferred rent | $1,094 | $1,131 |
Uncertain tax position obligations | 922 | 890 |
Other | 232 | 336 |
Total other long-term liabilities | $2,248 | $2,357 |
Business_Combinations_Addition
Business Combinations - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | 0 Months Ended | 2 Months Ended | 0 Months Ended | ||||||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | 14-May-14 | Jun. 30, 2014 | 14-May-14 | 14-May-14 | 14-May-14 |
PlayFirst | PlayFirst | PlayFirst | PlayFirst | PlayFirst | |||||||
Maximum | Minimum | ||||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business acquisition completion date | ' | ' | ' | ' | ' | ' | 14-May-14 | ' | ' | ' | ' |
Business acquisition | ' | ' | ' | ' | ' | ' | 30-Apr-14 | ' | ' | ' | ' |
Shares of the Company's common stock | ' | ' | ' | ' | ' | ' | 2,849 | ' | ' | 3,000 | 2,955 |
value of shares transfered in purchase price consideration | ' | ' | ' | ' | ' | ' | $11,553 | ' | ' | ' | ' |
Shares held back to satisfy indemnification claims | ' | ' | ' | ' | ' | ' | 1,500 | ' | ' | ' | ' |
Held back period to satisfy indemnification claims | ' | ' | ' | ' | ' | ' | '24 months | ' | ' | ' | ' |
Business acquisition, debt assumed | ' | ' | ' | ' | ' | ' | ' | ' | 3,480 | ' | ' |
Share price per share | $5 | ' | $5 | ' | ' | ' | ' | ' | $3.91 | ' | ' |
Common stock, value | ' | ' | ' | ' | ' | ' | ' | ' | 11,141 | ' | ' |
Shares withheld to cover stockholders' agent expenses and tax obligations | ' | ' | ' | ' | ' | ' | 106 | ' | ' | ' | ' |
Cash paid | ' | ' | ' | ' | ' | ' | 412 | ' | ' | ' | ' |
Acquired intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | 3,700 | ' | ' |
Business acquisition, transitional costs | ' | ' | ' | ' | ' | ' | ' | ' | 682 | ' | ' |
Residual value of goodwill | 30,809 | ' | 30,809 | ' | 19,485 | 19,440 | ' | ' | 11,333 | ' | ' |
Fair value assumptions income approach discount rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35.00% | 20.00% |
Total pro forma revenues | 41,698 | 27,283 | 88,738 | 57,909 | ' | ' | ' | 669 | ' | ' | ' |
Pro forma net loss | ($4,670) | ($4,613) | ($5,133) | ($12,937) | ' | ' | ' | $928 | ' | ' | ' |
Fair_Values_of_Assets_Acquired
Fair Values of Assets Acquired and Liabilities Assumed (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | 14-May-14 | 14-May-14 | 14-May-14 | 14-May-14 |
In Thousands, unless otherwise specified | PlayFirst | Titles, content and technology | In-process research and development | Carrier contract and related relationships | |||
PlayFirst | PlayFirst | PlayFirst | |||||
Assets acquired: | ' | ' | ' | ' | ' | ' | ' |
Cash | ' | ' | ' | $123 | ' | ' | ' |
Accounts receivable, net | ' | ' | ' | 737 | ' | ' | ' |
Other current assets | ' | ' | ' | 145 | ' | ' | ' |
Property and equipment | ' | ' | ' | 15 | ' | ' | ' |
Intangible assets: | ' | ' | ' | 3,700 | 2,200 | 800 | 700 |
Goodwill | 30,809 | 19,485 | 19,440 | 11,333 | ' | ' | ' |
Total assets acquired | ' | ' | ' | 16,053 | ' | ' | ' |
Liabilities assumed: | ' | ' | ' | ' | ' | ' | ' |
Accounts payable | ' | ' | ' | -1,509 | ' | ' | ' |
Other accrued liabilities | ' | ' | ' | -651 | ' | ' | ' |
Line of credit | ' | ' | ' | -890 | ' | ' | ' |
Term loan | ' | ' | ' | -1,450 | ' | ' | ' |
Total liabilities acquired | ' | ' | ' | -4,500 | ' | ' | ' |
Net acquired assets | ' | ' | ' | $11,553 | ' | ' | ' |
Summary_of_Pro_forma_Financial
Summary of Pro forma Financial Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Business Combinations [Abstract] | ' | ' | ' | ' |
Total pro forma revenues | $41,698 | $27,283 | $88,738 | $57,909 |
Pro forma net loss | ($4,670) | ($4,613) | ($5,133) | ($12,937) |
Pro forma net loss per share - basic and diluted | ($0.05) | ($0.06) | ($0.06) | ($0.18) |
Carrying_Amounts_and_Accumulat
Carrying Amounts and Accumulated Amortization Expense of Acquired Intangible Assets (Detail) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Value (Including Impact of Foreign Exchange) | $53,717 | $49,857 |
Accumulated Amortization Expense (Including Impact of Foreign Exchange) | -45,668 | -44,258 |
Total intangible assets | 8,049 | 5,599 |
In-process research and development | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Value (Including Impact of Foreign Exchange) | 800 | 0 |
Accumulated Amortization Expense (Including Impact of Foreign Exchange) | 0 | 0 |
Total intangible assets | 800 | 0 |
Intangible assets amortized to cost of revenues | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Value (Including Impact of Foreign Exchange) | 46,031 | 43,037 |
Accumulated Amortization Expense (Including Impact of Foreign Exchange) | -39,237 | -38,148 |
Total intangible assets | 6,794 | 4,889 |
Intangible assets amortized to cost of revenues | Titles, content and technology | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Intangible assets, Estimated Useful Life | '3 years | ' |
Gross Carrying Value (Including Impact of Foreign Exchange) | 15,136 | 12,851 |
Accumulated Amortization Expense (Including Impact of Foreign Exchange) | -12,558 | -12,165 |
Total intangible assets | 2,578 | 686 |
Intangible assets amortized to cost of revenues | Catalogs | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Intangible assets, Estimated Useful Life | '1 year | ' |
Gross Carrying Value (Including Impact of Foreign Exchange) | 1,326 | 1,283 |
Accumulated Amortization Expense (Including Impact of Foreign Exchange) | -1,326 | -1,283 |
Total intangible assets | 0 | 0 |
Intangible assets amortized to cost of revenues | ProvisionX Technology | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Intangible assets, Estimated Useful Life | '6 years | ' |
Gross Carrying Value (Including Impact of Foreign Exchange) | 218 | 211 |
Accumulated Amortization Expense (Including Impact of Foreign Exchange) | -218 | -211 |
Total intangible assets | 0 | 0 |
Intangible assets amortized to cost of revenues | Carrier contract and related relationships | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Intangible assets, Estimated Useful Life | '5 years | ' |
Gross Carrying Value (Including Impact of Foreign Exchange) | 20,614 | 19,940 |
Accumulated Amortization Expense (Including Impact of Foreign Exchange) | -19,921 | -19,645 |
Total intangible assets | 693 | 295 |
Intangible assets amortized to cost of revenues | Licensed content | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Intangible assets, Estimated Useful Life | '5 years | ' |
Gross Carrying Value (Including Impact of Foreign Exchange) | 3,028 | 3,040 |
Accumulated Amortization Expense (Including Impact of Foreign Exchange) | -3,028 | -3,040 |
Total intangible assets | 0 | 0 |
Intangible assets amortized to cost of revenues | Service provider license | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Intangible assets, Estimated Useful Life | '9 years | ' |
Gross Carrying Value (Including Impact of Foreign Exchange) | 479 | 482 |
Accumulated Amortization Expense (Including Impact of Foreign Exchange) | -348 | -324 |
Total intangible assets | 131 | 158 |
Intangible assets amortized to cost of revenues | Trademarks | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Intangible assets, Estimated Useful Life | '7 years | ' |
Gross Carrying Value (Including Impact of Foreign Exchange) | 5,230 | 5,230 |
Accumulated Amortization Expense (Including Impact of Foreign Exchange) | -1,838 | -1,480 |
Total intangible assets | 3,392 | 3,750 |
Intangible assets amortized to cost of revenues | In-process research and development | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Total intangible assets | 0 | ' |
Other intangible assets amortized to operating expenses | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Value (Including Impact of Foreign Exchange) | 6,886 | 6,820 |
Accumulated Amortization Expense (Including Impact of Foreign Exchange) | -6,431 | -6,110 |
Total intangible assets | 455 | 710 |
Other intangible assets amortized to operating expenses | Emux Technology | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Intangible assets, Estimated Useful Life | '6 years | ' |
Gross Carrying Value (Including Impact of Foreign Exchange) | 1,414 | 1,368 |
Accumulated Amortization Expense (Including Impact of Foreign Exchange) | -1,414 | -1,368 |
Total intangible assets | 0 | 0 |
Other intangible assets amortized to operating expenses | Non-compete agreement | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Intangible assets, Estimated Useful Life | '4 years | ' |
Gross Carrying Value (Including Impact of Foreign Exchange) | 5,472 | 5,452 |
Accumulated Amortization Expense (Including Impact of Foreign Exchange) | -5,017 | -4,742 |
Total intangible assets | 455 | 710 |
Other intangible assets amortized to operating expenses | In-process research and development | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Total intangible assets | $0 | ' |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | |||||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | 14-May-14 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
PlayFirst | 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 | |||||
Goodwill And Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquired intangible assets | ' | ' | ' | ' | $3,700 | ' | ' | ' | ' | ' | ' | ' | ' |
Intangible amortization expense, cost of revenues | ' | ' | ' | ' | ' | 441 | 1,078 | 995 | 2,152 | ' | ' | ' | ' |
Intangible amortization expense, operating expenses | $127 | $495 | $254 | $990 | ' | ' | ' | ' | ' | $127 | $495 | $254 | $990 |
Total_Expected_Future_Amortiza
Total Expected Future Amortization Related to Intangible Assets (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ' | ' |
2014 (remaining six months) | $1,301 | ' |
2015 | 2,095 | ' |
2016 | 1,638 | ' |
2017 | 1,129 | ' |
2018 and thereafter | 1,086 | ' |
Total intangible assets subject to amortization | 7,249 | ' |
Total intangible assets, net | 8,049 | 5,599 |
In-process research and development | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Total intangible assets, net | 800 | 0 |
Intangible assets amortized to cost of revenues | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
2014 (remaining six months) | 1,047 | ' |
2015 | 1,894 | ' |
2016 | 1,638 | ' |
2017 | 1,129 | ' |
2018 and thereafter | 1,086 | ' |
Total intangible assets subject to amortization | 6,794 | ' |
Total intangible assets, net | 6,794 | 4,889 |
Intangible assets amortized to cost of revenues | In-process research and development | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Total intangible assets, net | 0 | ' |
Other intangible assets amortized to operating expenses | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
2014 (remaining six months) | 254 | ' |
2015 | 201 | ' |
2016 | 0 | ' |
2017 | 0 | ' |
2018 and thereafter | 0 | ' |
Total intangible assets subject to amortization | 455 | ' |
Total intangible assets, net | 455 | 710 |
Other intangible assets amortized to operating expenses | In-process research and development | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Total intangible assets, net | $0 | ' |
Goodwill_by_Reporting_Unit_Det
Goodwill by Reporting Unit (Detail) (USD $) | 6 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 |
Goodwill [Line Items] | ' | ' |
Goodwill, Beginning | $92,596 | $92,551 |
Goodwill, Accumulated Impairment Loss, Beginning Balance | -73,111 | -73,111 |
Goodwill, Net Beginning Balance | 19,485 | 19,440 |
Goodwill Acquired during the year | 11,333 | 0 |
Effects of Foreign Currency Exchange | -9 | 45 |
Goodwill, Ending | 103,920 | 92,596 |
Goodwill, Accumulated Impairment Loss, Ending Balance | -73,111 | -73,111 |
Goodwill, Net Ending Balance | 30,809 | 19,485 |
Americas | ' | ' |
Goodwill [Line Items] | ' | ' |
Goodwill, Beginning | 42,946 | 42,946 |
Goodwill, Accumulated Impairment Loss, Beginning Balance | -24,871 | -24,871 |
Goodwill, Net Beginning Balance | 18,075 | 18,075 |
Goodwill Acquired during the year | 11,333 | 0 |
Effects of Foreign Currency Exchange | 0 | 0 |
Goodwill, Ending | 54,279 | 42,946 |
Goodwill, Accumulated Impairment Loss, Ending Balance | -24,871 | -24,871 |
Goodwill, Net Ending Balance | 29,408 | 18,075 |
EMEA | ' | ' |
Goodwill [Line Items] | ' | ' |
Goodwill, Beginning | 25,354 | 25,354 |
Goodwill, Accumulated Impairment Loss, Beginning Balance | -25,354 | -25,354 |
Goodwill, Net Beginning Balance | 0 | 0 |
Goodwill Acquired during the year | 0 | 0 |
Effects of Foreign Currency Exchange | 0 | 0 |
Goodwill, Ending | 25,354 | 25,354 |
Goodwill, Accumulated Impairment Loss, Ending Balance | -25,354 | -25,354 |
Goodwill, Net Ending Balance | 0 | 0 |
APAC | ' | ' |
Goodwill [Line Items] | ' | ' |
Goodwill, Beginning | 24,296 | 24,251 |
Goodwill, Accumulated Impairment Loss, Beginning Balance | -22,886 | -22,886 |
Goodwill, Net Beginning Balance | 1,410 | 1,365 |
Goodwill Acquired during the year | 0 | 0 |
Effects of Foreign Currency Exchange | -9 | 45 |
Goodwill, Ending | 24,287 | 24,296 |
Goodwill, Accumulated Impairment Loss, Ending Balance | -22,886 | -22,886 |
Goodwill, Net Ending Balance | $1,401 | $1,410 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 0 Months Ended | 6 Months Ended | ||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | 16-May-14 | Jun. 30, 2014 | 16-May-14 |
Developer Commitments | New San Francisco headquarters lease | Washington offices lease | Washington offices lease | Washington offices lease | ||||||
sqft | ||||||||||
Commitments and Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Rent expense | $956 | $791 | $1,858 | $1,476 | ' | ' | ' | ' | ' | ' |
Deferred rent balance | 1,094 | ' | 1,094 | ' | 1,131 | ' | ' | ' | ' | ' |
Operating facility leases expiration period description | ' | ' | 'Various expiration dates through September 2020 | ' | ' | ' | ' | ' | ' | ' |
Lease commencement date | ' | ' | ' | ' | ' | ' | 30-Apr-13 | ' | 30-Jun-13 | ' |
Lease expiration date | ' | ' | ' | ' | ' | ' | 31-Mar-18 | ' | 30-Sep-20 | ' |
Letter of credit to secure lease obligations | ' | ' | 1,790 | ' | ' | ' | ' | ' | ' | ' |
Lease amendment date | ' | ' | ' | ' | ' | ' | ' | ' | 16-May-14 | ' |
Increase in deposit for letter of credit to secure lease obligation | ' | ' | ' | ' | ' | ' | ' | 60 | ' | ' |
Increase in lease area | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13,000 |
Future minimum royalty payments | 362 | ' | 362 | ' | ' | ' | ' | ' | ' | ' |
Commitments and contingencies | ' | ' | ' | ' | ' | 200 | ' | ' | ' | ' |
Commitments due over next period | ' | ' | ' | ' | ' | '6 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 $) | Jun. 30, 2014 |
In Thousands, unless otherwise specified | |
Minimum Operating Lease Payments | ' |
2014 (remaining six months) | $2,195 |
2015 | 4,378 |
2016 | 3,771 |
2017 | 2,944 |
2018 | 1,329 |
2019 and thereafter | 1,733 |
Operating Leases, Future Minimum Payments, Current | $16,350 |
Stockholders_Equity_Additional
Stockholders' Equity - Additional Information (Detail) (USD $) | 6 Months Ended | 3 Months Ended | 6 Months Ended | 1 Months Ended | 0 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 6 Months Ended | 1 Months Ended | 1 Months Ended | 9 Months Ended | 6 Months Ended | ||||||||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jul. 31, 2014 | 14-May-14 | 14-May-14 | Aug. 01, 2011 | 31-May-14 | 31-May-13 | Jul. 11, 2014 | Jul. 31, 2014 | Jul. 11, 2014 | Jul. 31, 2014 | Jun. 30, 2014 | Jul. 31, 2013 | Apr. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2013 | Jul. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 |
MGM Warrants | MGM Warrants | Subsequent Event | PlayFirst | PlayFirst | Blammo | Blammo | Blammo | Blammo | Blammo | Blammo | Blammo | Private placement | MGM Interactive Inc. | MGM Interactive Inc. | Public Offerings | Public Offerings | Warrant To Purchase Common Stock | Warrant Expires On Fifth Anniversary | Common Stock | Common Stock | ||||
MGM Warrants | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | MGM Interactive Inc. | MGM Interactive Inc. | ||||||||||||||||||
Fiscal 2015 | Fiscal 2015 | |||||||||||||||||||||||
Stockholders Equity Note Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, shares issued | ' | ' | ' | ' | ' | ' | 2,849 | ' | 1,000 | 435 | 742 | 750 | 750 | 1,154 | 1,154 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business acquisition, debt assumed | ' | ' | ' | ' | ' | ' | ' | $3,480 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, shares issued | 94,808 | ' | 78,464 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,861 | 7,245 | ' | ' | ' | ' |
Public offering price | $0.00 | ' | $0.00 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3.50 | $2.10 | ' | ' | ' | ' |
Proceeds from issuance of common stock | 32,336 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 32,070 | 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 | ' | ' |
Issuance of common stock upon exercise of warrants, shares | ' | ' | ' | ' | ' | 667 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 522 | 2,825 |
Proceeds from exercise of stock warrants and issuance of common stock | 783 | 4,237 | ' | ' | ' | 2,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrant related expense | ' | ' | ' | $0 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrant shares to become vested and exercisable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000 | ' | ' | ' | ' | ' | ' |
Warrant issuance date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2010-08 | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants_Outstanding_Detail
Warrants Outstanding (Detail) | 6 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 |
Class of Warrant or Right [Line Items] | ' |
Number of Shares Outstanding Under Warrant | 3,785 |
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 | 452 |
July 2013 - Warrant issued to MGM | ' |
Class of Warrant or Right [Line Items] | ' |
Warrants, Term (Years) | '5 years |
Warrants, Exercise Price per Share | 3 |
Number of Shares Outstanding Under Warrant | 3,333 |
Stock_Option_and_Other_Benefit2
Stock Option and Other Benefit Plans - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Quoted closing price of Company's common stock | $5 | ' | $5 | ' |
Cash proceed from option exercise, net | ' | ' | $4,699 | $417 |
Income tax benefit from stock option exercises | 0 | 0 | 0 | 0 |
Share-based compensation, fair value assumptions, volatility rate | 48.50% | 52.20% | 48.60% | 52.60% |
Share-based compensation, fair value assumptions, risk-free interest rate | 1.31% | 0.69% | 1.30% | 0.66% |
Share-based compensation, fair value assumptions, expected dividend rate | 0.00% | 0.00% | 0.00% | 0.00% |
Weighted-average fair value of stock options granted | ' | ' | $1.53 | $1.07 |
Stock option granted contractual term | ' | ' | '6 years | ' |
Stock-based compensation (benefit) expense recorded as contingent liability | 2,894 | -214 | 4,559 | 27 |
Unrecognized compensation expense | 5,385 | ' | 5,385 | ' |
Unrecognized compensation expense recognized over weighted average period | ' | ' | '2 years 4 months 28 days | ' |
2007 Equity Incentive Plan | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Common stock authorized for issuance, increased | ' | ' | 7,200 | ' |
Pool share reduced for each share granted | ' | ' | 1.39 | ' |
Pool share increased for each share canceled | ' | ' | 1.39 | ' |
Restricted stock award where price charged to participant less than fair market value | 100.00% | ' | 100.00% | ' |
Number of shares available for grant | 1,294 | ' | 1,294 | ' |
2007 Employee Stock Purchase Plan | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Number of shares available for grant | 1,414 | ' | 1,414 | ' |
2008 Equity Inducement Plan | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Number of shares available for grant | 316 | ' | 316 | ' |
Effective date of equity inducement plan | ' | ' | '2013-11 | ' |
RSUs | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Vesting percentage | ' | ' | 25.00% | ' |
Vesting and settlement terms | ' | ' | 'RSUs typically vest and are settled over approximately a four-year period with 25% of the shares vesting on or around the one-year anniversary of the grant date and the remaining shares vesting quarterly thereafter. | ' |
Number of shares granted | ' | ' | 2,567 | ' |
Unrecognized compensation expense | 10,748 | ' | 10,748 | ' |
Unrecognized compensation expense recognized over weighted average period | ' | ' | '4 years | ' |
RSUs | CEO | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Number of shares granted | 575 | ' | ' | ' |
Fair value of awards estimated | $1,311 | ' | ' | ' |
Share-based compensation, fair value assumptions, volatility rate | 48.50% | ' | 48.50% | ' |
Share-based compensation, fair value assumptions, risk-free interest rate | 1.35% | ' | 1.35% | ' |
Share-based compensation, fair value assumptions, expected dividend rate | 0.00% | ' | 0.00% | ' |
Share-based compensation, fair value assumptions, grant price | $4.05 | ' | $4.05 | ' |
RSUs | Market-Based RSUs | CEO | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Number of shares granted | 225 | ' | ' | ' |
Vesting period | '4 years | ' | ' | ' |
Average share price | $7 | ' | ' | ' |
RSUs | Performance RSU | CEO | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Number of shares granted | 350 | ' | ' | ' |
Vesting period | '4 years | ' | ' | ' |
Average share price | $10 | ' | ' | ' |
Calculation_of_Sharebased_Awar
Calculation of Share-based Awards Available for Grant (Detail) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | |
Share-based awards granted | -755 | |
Share-based awards canceled | 585 | |
2007 Equity Incentive and 2008 Equity Inducement Plans | ' | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | |
Shares available, beginning balances | 4,890 | |
Share-based awards granted | -4,238 | [1] |
Share-based awards canceled | 958 | [2] |
Shares available, ending balances | 1,610 | |
[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) | 6 Months Ended |
Jun. 30, 2014 | |
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 $) | 6 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Options vested and expected to vest, number of shares | 7,704 |
RSUs | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Awarded and unvested, Number of Units Outstanding, beginning balance | 2,578 |
Granted, Number of Units Outstanding | 2,567 |
Vested, Number of Units Outstanding | -207 |
Forfeited, Number of Units Outstanding | -234 |
Awarded and unvested, Number of Units Outstanding, ending balance | 4,704 |
Options vested and expected to vest, number of shares | 3,646 |
Awarded and unvested, Weighted Average Grant Date Fair Value, beginning balance | $2.91 |
Granted, Weighted Average Grant Date Fair Value | $3.67 |
Vested, Weighted Average Grant Date Fair Value | $2.74 |
Forfeited, Weighted Average Grant Date Fair Value | $3.47 |
Awarded and unvested, Weighted Average Grant Date Fair Value, ending balance | $3.30 |
Stock_Option_Activity_Detail
Stock Option Activity (Detail) (USD $) | 6 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' |
Number of shares, beginning balances | 10,399 |
Options granted, number of shares | 755 |
Options canceled, number of shares | -585 |
Options exercised, number of shares | -2,250 |
Number of shares, ending balances | 8,319 |
Options vested and expected to vest, number of shares | 7,704 |
Options exercisable, number of shares | 4,270 |
Weighted average exercise price, beginning balances | $2.98 |
Options granted, weighted average exercise price | $3.93 |
Options canceled, weighted average exercise price | $3.81 |
Options exercised, weighted average exercise price | $2.09 |
Weighted average exercise price, ending balances | $3.24 |
Options vested and expected to vest, weighted average exercise price | $3.24 |
Options exercisable, weighted average exercise price | $3.24 |
Weighted average contractual term, options outstanding | '3 years 10 months 2 days |
Weighted average contractual term, options vested and expected | '3 years 9 months 4 days |
Weighted average contractual term, Options exercisable | '3 years 22 days |
Aggregate intrinsic value, options outstanding | $15,744 |
Aggregate intrinsic value, Options vested and expected to vest | 14,657 |
Aggregate intrinsic value, options exercisable | $8,587 |
Schedule_of_Assumptions_Used_i
Schedule of Assumptions Used in Black-Scholes Valuation Model and Weighted Average Assumptions (Detail) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ' | ' | ' | ' |
Dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Risk-free interest rate | 1.31% | 0.69% | 1.30% | 0.66% |
Expected volatility | 48.50% | 52.20% | 48.60% | 52.60% |
Expected term (years) | '4 years | '4 years | '4 years | '4 years |
StockBased_Compensation_Expens
Stock-Based Compensation Expense (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total stock-based compensation expense | $4,566 | $736 | $7,545 | $1,981 |
Research and development | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total stock-based compensation expense | 3,605 | 163 | 5,922 | 831 |
Sales and marketing | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total stock-based compensation expense | 190 | 93 | 291 | 160 |
General and administrative | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total stock-based compensation expense | $771 | $480 | $1,332 | $990 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 |
Scenario Forecast | ||||||
Income Tax Contingency [Line Items] | ' | ' | ' | ' | ' | ' |
Income tax benefit/(provision) | ($78) | $2,870 | ($522) | $2,735 | ' | ' |
Unrecognized tax benefits | 6,574 | ' | 6,574 | ' | 6,538 | ' |
Unrecognized tax benefits, impact effective tax rate | 1,951 | ' | 1,951 | ' | 1,915 | ' |
Anticipated release of provision relating to uncertain tax positions due to expiration of certain statutes of limitation in foreign jurisdictions | 1,307 | ' | 1,307 | ' | ' | ' |
Decrease in liability for uncertain tax positions | ' | ' | ' | ' | ' | 846 |
Interest on uncertain tax positions (benefit) expense | -2 | 30 | 16 | 70 | ' | ' |
Liability related to interest and penalties for uncertain tax positions | $310 | ' | $310 | ' | $283 | ' |
Segment_Reporting_Additional_I
Segment Reporting - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2014 | |
Segment | |
Segment Reporting [Abstract] | ' |
Number of operating segment | 1 |
Revenues_in_Geographic_Regions
Revenues in Geographic Regions (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Revenues | $40,910 | $24,445 | $85,490 | $49,050 |
United States of America | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Revenues | 21,650 | 9,921 | 45,035 | 20,945 |
China | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Revenues | 3,376 | 3,211 | 7,231 | 5,459 |
Americas, excluding the USA | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Revenues | 1,767 | 1,349 | 3,734 | 2,508 |
EMEA | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Revenues | 8,344 | 5,346 | 17,124 | 10,798 |
APAC, excluding China | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Revenues | $5,773 | $4,618 | $12,366 | $9,340 |
LongLived_Assets_by_Geographic
Long-Lived Assets by Geographical Area (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Property and equipment, net of accumulated depreciation and amortization | $4,272 | $5,096 |
Americas | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Property and equipment, net of accumulated depreciation and amortization | 3,419 | 4,108 |
EMEA | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Property and equipment, net of accumulated depreciation and amortization | 810 | 899 |
APAC | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Property and equipment, net of accumulated depreciation and amortization | $43 | $89 |
Restructuring_Additional_Infor
Restructuring - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring charge | $159 | $937 | $159 | $1,448 |
Facilities and other | Brazilian | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Non cash adjustments | ' | ' | ' | 238 |
Employee termination costs | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring charge | $159 | ' | $159 | ' |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (Cie Games, Inc. [Member], USD $) | 6 Months Ended | 0 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jul. 30, 2014 | Jul. 30, 2014 | Jul. 30, 2014 |
Subsequent Event | Subsequent Event | Subsequent Event | ||
Employee | Maximum | |||
Subsequent Event [Line Items] | ' | ' | ' | ' |
Date of acquisition agreement | 30-Jul-14 | 30-Jul-14 | ' | ' |
Number of employees employed | ' | ' | 52 | ' |
Common stock, shares issued | ' | 9,983 | ' | ' |
Cash paid for acquisitions | ' | $30,280 | ' | ' |
Shares held back to satisfy indemnification claims | ' | ' | 2,139 | ' |
Held back period to satisfy indemnification claims | ' | '18 months | ' | ' |
Business acquisition cash consideration held back | ' | ' | 280 | ' |
Business acquisition shares issued on merger description | ' | 'At the closing of the First Merger (the bClosingb), the Company will issue in exchange for all of the issued and outstanding shares of Cie Games an aggregate of (1) approximately $30,280 in cash and (2) approximately 9,983 shares of the Companybs common stock (the bSharesb). Approximately 2,139 of the Shares will be held in escrow by the Company for 18 months to satisfy potential indemnification claims under the Merger Agreement. In addition, $280 of the cash consideration will be held back and released to the former stockholders of Cie Games to the extent the Company receives a tax refund relating to Cie Gamesb operations from January 1, 2014 through the date of the Closing. The total cash consideration paid by the Company in the Mergers will be reduced to the extent, without duplication, that Cie Gamesb estimated closing balance sheet reflects (1) a cash balance of less than $2,500, (2) a cash plus accounts receivable balance of less than $6,000 and (3) a net working capital balance of less than approximately $4,414. $250 of the cash consideration will be held back to satisfy actual shortfalls of these amounts as of the date of the Closing, if any. | ' | ' |
Business acquisition cash balance | ' | ' | ' | 2,500 |
Business acquisition cash plus accounts receivable | ' | ' | ' | 6,000 |
Business acquisition net working capital balance | ' | ' | ' | 4,414 |
Cash Consideration held back for working capital shortfalls | ' | $250 | ' | ' |