Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Jul. 22, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | TYPE | |
Entity Registrant Name | MONOTYPE IMAGING HOLDINGS INC. | |
Entity Central Index Key | 1,385,292 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 39,753,358 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 74,620 | $ 90,325 |
Accounts receivable, net of allowance for doubtful accounts of $205 at June 30, 2015 and $164 at December 31, 2014 | 10,085 | 9,279 |
Income tax refunds receivable | 2,925 | 2,593 |
Deferred income taxes | 2,763 | 2,898 |
Prepaid expenses and other current assets | 3,734 | 4,361 |
Total current assets | 94,127 | 109,456 |
Property and equipment, net | 15,611 | 10,578 |
Goodwill | 187,194 | 176,999 |
Intangible assets, net | 73,556 | 73,862 |
Other assets | 1,836 | 3,563 |
Total assets | 372,324 | 374,458 |
Current liabilities: | ||
Accounts payable | 504 | 1,156 |
Accrued expenses and other current liabilities | 18,088 | 24,570 |
Accrued income taxes payable | 477 | 640 |
Deferred revenue | 8,303 | 7,107 |
Total current liabilities | 27,372 | 33,473 |
Other long-term liabilities | 3,274 | 2,596 |
Contingent acquisition consideration | 4,997 | |
Deferred income taxes | 35,024 | 32,960 |
Reserve for income taxes | 3,044 | 4,637 |
Accrued pension benefits | $ 5,361 | $ 5,679 |
Commitments and contingencies (Note 15) | ||
Stockholders' equity: | ||
Preferred stock, $0.001 par value, Authorized shares: 10,000,000; Issued and outstanding: none | ||
Common stock, $0.001 par value, Authorized shares: 250,000,000; Issued: 41,701,482 at June 30, 2015 and 40,770,197 at December 31, 2014 | $ 41 | $ 39 |
Additional paid-in capital | 246,424 | 232,522 |
Treasury stock, at cost, 1,982,364 shares at June 30, 2015 and 1,303,737 shares at December 31, 2014 | (50,455) | (31,946) |
Retained earnings | 103,962 | 98,672 |
Accumulated other comprehensive loss | (6,720) | (4,174) |
Total stockholders' equity | 293,252 | 295,113 |
Total liabilities and stockholders' equity | $ 372,324 | $ 374,458 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 205 | $ 164 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 250,000,000 | 250,000,000 |
Common stock, shares issued | 41,701,482 | 40,770,197 |
Treasury stock, shares | 1,982,364 | 1,303,737 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Statement [Abstract] | ||||
Revenue | $ 46,405 | $ 44,963 | $ 92,451 | $ 91,035 |
Cost of revenue | 7,553 | 7,322 | 14,963 | 13,830 |
Cost of revenue-amortization of acquired technology | 1,134 | 1,146 | 2,267 | 2,291 |
Total cost of revenue | 8,687 | 8,468 | 17,230 | 16,121 |
Gross profit | 37,718 | 36,495 | 75,221 | 74,914 |
Operating expenses: | ||||
Marketing and selling | 14,532 | 11,987 | 27,508 | 23,105 |
Research and development | 5,290 | 4,910 | 11,089 | 10,663 |
General and administrative | 7,010 | 5,386 | 13,909 | 11,584 |
Amortization of other intangible assets | 790 | 1,431 | 1,492 | 2,863 |
Total operating expenses | 27,622 | 23,714 | 53,998 | 48,215 |
Income from operations | 10,096 | 12,781 | 21,223 | 26,699 |
Other (income) expense: | ||||
Interest expense | 449 | 256 | 795 | 534 |
Interest income | (145) | (6) | (257) | (8) |
Loss on foreign exchange | 498 | 136 | 612 | 170 |
Loss on derivatives | 208 | 158 | 72 | 214 |
Other income, net | (1) | (3) | (2) | (4) |
Total other expense | 1,009 | 541 | 1,220 | 906 |
Income before provision for income taxes | 9,087 | 12,240 | 20,003 | 25,793 |
Provision for income taxes | 3,183 | 4,549 | 6,742 | 9,657 |
Net income | 5,904 | 7,691 | 13,261 | 16,136 |
Net income available to common stockholders-basic | 5,754 | 7,532 | 12,960 | 15,847 |
Net income available to common stockholders-diluted | $ 5,755 | $ 7,534 | $ 12,962 | $ 15,847 |
Net income per common share: | ||||
Basic | $ 0.15 | $ 0.19 | $ 0.33 | $ 0.41 |
Diluted | $ 0.15 | $ 0.19 | $ 0.33 | $ 0.40 |
Weighted-average number of shares outstanding: | ||||
Basic | 38,826,185 | 38,714,178 | 38,827,668 | 38,713,432 |
Diluted | 39,395,395 | 39,623,517 | 39,458,758 | 39,865,906 |
Dividends declared per common share | $ 0.10 | $ 0.08 | $ 0.20 | $ 0.16 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 5,904 | $ 7,691 | $ 13,261 | $ 16,136 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustments | 1,560 | (166) | (2,546) | (161) |
Comprehensive income | $ 7,464 | $ 7,525 | $ 10,715 | $ 15,975 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash flows from operating activities | ||
Net income | $ 13,261 | $ 16,136 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 5,096 | 5,970 |
Loss on retirement of fixed assets | 20 | 9 |
Amortization of deferred financing costs and accreted interest | 258 | 227 |
Adjustment to contingent consideration | (552) | |
Share based compensation | 6,241 | 5,016 |
Excess tax benefit on stock options | (1,726) | (1,951) |
Provision for doubtful accounts | 105 | |
Deferred income taxes | 2,317 | 1,772 |
Unrealized currency loss (gain) on foreign denominated intercompany transactions | 13 | (140) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (737) | (1,039) |
Prepaid expenses and other assets | 2,186 | 353 |
Accounts payable | (623) | 405 |
Accrued income taxes payable | (131) | 4,614 |
Accrued expenses and other liabilities | (3,164) | (2,540) |
Deferred revenue | 1,247 | 1,920 |
Net cash provided by operating activities | 24,363 | 30,200 |
Cash flows from investing activities | ||
Purchases of property and equipment | (6,847) | (2,472) |
Acquisition of business, net of cash acquired | (14,289) | (1,015) |
Net cash used in investing activities | (21,136) | (3,487) |
Cash flows from financing activities | ||
Excess tax benefit on stock options | 1,726 | 1,951 |
Common stock dividends paid | (7,156) | (5,528) |
Purchase of treasury stock | (18,601) | (23,881) |
Payment of contingent consideration | (289) | |
Proceeds from exercises of common stock options | 5,854 | 3,111 |
Net cash used in financing activities | (18,466) | (24,347) |
Effect of exchange rates on cash and cash equivalents | (466) | 27 |
(Decrease) increase in cash and cash equivalents | (15,705) | 2,393 |
Cash and cash equivalents at beginning of period | 90,325 | 78,411 |
Cash and cash equivalents at end of period | $ 74,620 | $ 80,804 |
Nature of the Business
Nature of the Business | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of the Business | 1. Nature of the Business Monotype Imaging Holdings Inc. (the “Company” or “we”) is a leading provider of type, technology and expertise for creative applications and consumer devices. Our end-user and embedded solutions for print, web and mobile environments enable people to create and consume dynamic content on any and every device. Our technologies and fonts enable the display and printing of high quality digital text. Our technologies and fonts have been widely deployed across, and embedded in, a range of consumer devices including laser printers, digital copiers, mobile phones, e-book readers, tablets, automotive displays, digital cameras, navigation devices, digital televisions, set-top boxes and consumer appliances, as well as in numerous software applications and operating systems. We also provide printer drivers, page description language interpreters, printer user interface technology and color imaging solutions to printer manufacturers and OEMs (original equipment manufacturers). We license our fonts and technologies to consumer device manufacturers, independent software vendors and creative and business professionals and we are headquartered in Woburn, Massachusetts. We operate in one business segment: the development, marketing and licensing of technologies and fonts. We also maintain various offices worldwide for selling and marketing, research and development and administration. We conduct our operations through four domestic operating subsidiaries, Monotype Imaging Inc., Monotype ITC Inc., MyFonts Inc. and Swyft Media Inc., and five foreign operating subsidiaries, Monotype Ltd., Monotype GmbH and its wholly-owned subsidiary, FontShop International Inc., Monotype Solutions India Pvt. Ltd., Monotype Hong Kong Ltd. and Monotype KK. |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | 2. Basis of Presentation The accompanying unaudited condensed consolidated interim financial statements as of June 30, 2015 and for the three and six months ended June 30, 2015 and 2014 include the accounts of the Company and its wholly-owned subsidiaries and have been prepared in conformity with accounting principles generally accepted in the United States (“GAAP”) for interim financial reporting and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for Quarterly Reports on Form 10-Q and Article 10 of Regulation S-X. Accordingly, such financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. GAAP requires the Company’s management to make estimates and assumptions that affect the amounts reported in the financial statements. Actual results could differ from those estimates. The results for interim periods are not necessarily indicative of results to be expected for the year or for any future periods. In management’s opinion, these unaudited condensed consolidated interim financial statements contain all adjustments of a normal recurring nature necessary for a fair presentation of the financial statements for the interim periods presented. These unaudited condensed consolidated interim financial statements should be read in conjunction with the Company’s audited consolidated financial statements for the year ended December 31, 2014 as reported in the Company’s Annual Report on Form 10-K. The accompanying condensed consolidated financial statements reflect the application of certain significant accounting policies as described below and elsewhere in these notes to the condensed consolidated financial statements. As of June 30, 2015, the Company’s significant accounting policies and estimates, which are detailed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, have not changed. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | 3. Recent Accounting Pronouncements Internal-Use Software In April 2015, the Financial Accounting Standards Board, or FASB issued ASU 2015-05, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40), Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement. Interest In April 2015, the FASB, issued ASU 2015-03, Interest – Imputation of Interest (Subtopic 835-30), Simplifying the Presentation of Debt Issuance Costs, Consolidation In February 2015, the FASB issued updated accounting guidance on consolidation requirements. This update changes the guidance with respect to the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. This guidance is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015, with early adoption permitted. The Company does not expect adoption of this guidance to have a material impact on our financial statements. Going Concern In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements – Going Concern (Subtopic 205-40); Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern Revenue Recognition In May 2014, the FASB and the International Accounting Standards Board jointly issued ASU 2014-9, Revenue from Contracts with Customers (Topic 606), |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2015 | |
Business Combinations [Abstract] | |
Acquisitions | 4. Acquisitions Swyft Media On January 30, 2015, the Company purchased all of the outstanding stock of TextPride, Inc. operating under the name of Swyft Media, a privately-held mobile messaging company located in New York, New York. In connection with the acquisition, TextPride, Inc. was renamed Swyft Media Inc. and became a wholly-owned subsidiary of the registrant. Swyft Media’s expertise in the emerging world of branded, in-app mobile messaging content is expected to help Monotype reach new customers, with an opportunity to add value by including some of the world’s largest and most popular collections of fonts. The impact of this acquisition was not material to our condensed consolidated financial statements. The Company acquired Swyft Media for an aggregate purchase price of approximately $17.0 million, consisting of $12.1 million in cash, plus contingent consideration of up to $15.0 million payable through 2018, which had an estimated net present value of $4.9 million. We paid $11.6 million from cash on hand at the time of the acquisition, net of cash acquired. Of the purchase price, approximately $4.7 million and $13.6 million have been allocated to intangible assets and goodwill, respectively. The fair value of the assets acquired and liabilities assumed is less than the purchase price, resulting in the recognition of goodwill. The goodwill reflects the value of the synergies we expect to realize and the assembled workforce. The acquisition of Swyft Media was structured in such a manner that the goodwill is not expected to be deductible for tax purposes. The purchase price has been allocated to the tangible and intangible assets acquired and liabilities assumed based upon the respective estimates of fair value as of the date of the acquisition, which remains preliminary as of June 30, 2015, and using assumptions that the Company’s management believes are reasonable given the information currently available. The final allocation of the purchase price to intangible assets, goodwill and deferred tax assets and liabilities may differ materially from the information presented in these condensed consolidated financial statements. Twelve employees joined the Company in connection with the acquisition. See Note 6 for additional information on the fair value measurements for all financial assets and liabilities, including contingent consideration, which is measured at fair value on a recurring basis. FontShop On July 14, 2014, the Company purchased all of the outstanding stock of FontShop International GmbH, a privately-held font distributor located in Berlin, Germany, its wholly-owned subsidiary FontShop International, Inc. based in San Francisco, California, the FontFont typeface library, FontShop AG of Berlin, the largest distributor of the FontFont library, and certain other typeface families, collectively FontShop, for an aggregate purchase price of $14.6 million. We paid $11.9 million from cash on hand at the time of the acquisition, and the remainder, or $2.7 million, was paid in January 2015. Of the final purchase price, $8.5 million and $6.3 million was allocated to intangible assets and goodwill, respectively. The purchase price allocation was finalized as of June 30, 2015. Approximately $6.3 million of the goodwill is expected to be deductible for tax purposes. The purchase price was allocated to the tangible and intangible assets acquired and liabilities assumed based upon the respective estimates of fair value as of the date of the acquisition, and using assumptions that the Company’s management believes are reasonable given the information that was currently available. On October 9, 2014, FontShop International GmbH was merged into Monotype Germany effective August 1, 2014. Following the merger, FontShop International Inc. became a wholly-owned subsidiary of Monotype Germany. On October 28, 2014, FontShop AG was merged into Monotype Germany. Fifty employees joined the Company in connection with the acquisition. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 5. Derivative Financial Instruments We incur foreign currency exchange gains and losses related to certain customers that are invoiced in U.S. dollars, but who have the option to make an equivalent payment in their own functional currencies at a specified exchange rate as of a specified date. In the period from that date until payment in the customer’s functional currency is received and converted into U.S. dollars, we can incur realized gains and losses. We also incur foreign currency exchange gains and losses on certain intercompany assets and liabilities denominated in foreign currencies. We are currently utilizing 30-day forward contracts to mitigate our exposure on these currency fluctuations. These contracts are generally set to expire and are settled at month end. The instruments are not designated as hedging instruments, and accordingly, the gain or loss is recognized upon cash settlement and is included in loss on derivatives in the accompanying condensed consolidated statements of income. At June 30, 2015 and December 31, 2014 we had one forward foreign exchange contract outstanding, which was entered into on those dates. See Note 6 for details regarding the fair value of these instruments. The following table presents the losses on our derivative financial instruments which are included in loss on derivatives in our accompanying condensed consolidated statements of income (in thousands): Three Months Ended Six Months Ended 2015 2014 2015 2014 Currency swaps $ 208 $ 158 $ 72 $ 214 Total $ 208 $ 158 $ 72 $ 214 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 6. Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In order to increase consistency and comparability in fair value measurements, the Codification established a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three broad levels, which are described below: Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. Level 2: Other inputs that are observable directly or indirectly, such as quoted prices for similar assets and liabilities or market corroborated inputs. Level 3: Unobservable inputs are used when little or no market data is available and requires the company to develop its own assumptions about how market participants would price the assets or liabilities. The fair value hierarchy gives the lowest priority to Level 3 inputs. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimizes the use of unobservable inputs to the extent possible as well as considers counterparty and our own credit risk in its assessment of fair value. The following table presents our financial assets and liabilities that are carried at fair value, classified according to the three categories described above (in thousands): Fair Value Measurement at June 30, 2015 Total Quoted Prices in Significant Other Significant Assets: Cash equivalents—money market funds $ 26,458 $ 26,458 $ — $ — Cash equivalents—commercial paper 9,249 — 9,249 — Cash equivalents—corporate bonds 4,319 — 4,319 — Total assets $ 40,026 $ 26,458 $ 13,568 $ — Liabilities: Contingent acquisition consideration $ 4,997 $ — $ — $ 4,997 Total liabilities $ 4,997 $ — $ — $ 4,997 Fair Value Measurement at December 31, 2014 Total Quoted Prices in Significant Other Significant Assets: Cash equivalents—money market funds $ 34,309 $ 34,309 $ — $ — Cash equivalents—commercial paper 3,000 — 3,000 — Cash equivalents—U.S. government and agency securities 2,700 — 2,700 — Total assets $ 40,009 $ 34,309 $ 5,700 $ — Liabilities: Contingent acquisition consideration $ 270 $ — $ 270 $ — Total liabilities $ 270 $ — $ 270 $ — The Company’s recurring fair value measures relate to short-term investments, which are classified as cash equivalents, derivative instruments and contingent consideration. The fair value of our cash equivalents are either based on quoted prices for similar assets or other observable inputs such as yield curves at commonly quoted intervals and other market corroborated inputs. The fair value of our derivative instruments is based on quoted market prices from various banking institutions or an independent third party provider for similar instruments. In determining the fair value, we consider our non-performance risk and that of our counterparties. At June 30, 2015, we had one 30-day forward contract to sell 2.2 million British pound sterling and purchase $3.4 million that together, had an immaterial fair value. At December 31, 2014, we had one 30-day forward contract to sell 2.3 million British pound sterling and purchase $3.5 million that together, had an immaterial fair value. For the contingent acquisition consideration classified as Level 2 at December 31, 2014, fair value approximated book value, and represented the amount to be paid based on actual achievement of the criteria. At June 30, 2015, the Company had recorded approximately $5.0 million in contingent consideration related to the January 2015 acquisition of Swyft Media. The contingent consideration is payable in cash based on the achievement of certain revenue and EBITDA margin targets for the years ending December 31, 2015 through 2016, with a catch-up period for the year ending December 31, 2017, and subject to a cap of $15.0 million. The fair value of this liability was estimated using a Monte Carlo simulation model, relying on significant inputs that are not observable in the market and thus represent a Level 3 fair value measurement. The significant inputs in the Level 3 measurement not supported by market activity included our expected revenues and EBITDA for each of the measurement periods and the estimated level of risk and volatility around the forecast. The Monte Carlo simulation was relied on to estimate the projected revenues, EBITDA margins, and contingent acquisition consideration payments for each measurement period. The average contingent acquisition consideration payments for the years 2015 through 2017, following 100,000 simulation trials, were discounted to present value to capture the time value of money and counterparty risk, based upon an assessment of the Company’s borrowing risk, and applying its credit rating to adjust the risk free rate. The changes in the estimated fair value for our liabilities measured on a recurring basis using significant unobservable inputs (Level 3) are as follows (in thousands): Three Months Ended Six Months Ended Fair value measurement at the beginning of period $ 4,900 $ — Contingent consideration recorded upon acquisition 4,900 Accreted interest 97 97 Fair value measurement at end of period $ 4,997 $ 4,997 The Company’s non-financial assets and non-financial liabilities subject to non-recurring measurements include goodwill and intangible assets. |
Property and Equipment
Property and Equipment | 6 Months Ended |
Jun. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | 7. Property and Equipment Property and equipment consists of the following (in thousands): June 30, December 31, Computer equipment and software $ 17,472 $ 12,084 Furniture and fixtures 1,122 1,093 Leasehold improvements 3,957 3,498 Total cost 22,551 16,675 Less accumulated depreciation and amortization (6,940 ) (6,097 ) Property and equipment, net $ 15,611 $ 10,578 |
Intangible Assets
Intangible Assets | 6 Months Ended |
Jun. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 8. Intangible Assets Intangible assets consist of the following (dollar amounts in thousands): June 30, 2015 December 31, 2014 Weighted- Gross Accumulated Net Gross Accumulated Net Customer relationships 10 $ 60,175 $ (47,818 ) $ 12,357 $ 57,488 $ (47,018 ) $ 10,470 Acquired technology 11 54,604 (36,860 ) 17,744 55,064 (34,411 ) 20,653 Non-compete agreements 4 12,979 (11,948 ) 1,031 12,172 (11,862 ) 310 Indefinite-lived intangible assets: Trademarks 38,024 — 38,024 38,029 — 38,029 Domain names 4,400 — 4,400 4,400 — 4,400 Total $ 170,182 $ (96,626 ) $ 73,556 $ 167,153 $ (93,291 ) $ 73,862 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Debt | 9. Debt On July 13, 2011, the Company entered into a credit agreement (“Credit Facility”), with Wells Fargo Capital Finance, LLC, the administrative agent for a syndicate of Lenders (“Lenders”), which provides the Company with a five-year, $120.0 million secured revolving credit facility. Borrowings under the Credit Facility bear interest at a variable rate based upon, at the Company’s option, either LIBOR or the base rate (which is the highest of (i) the prime rate, (ii) 0.5% plus the overnight federal funds rate, and (iii) 1.0% in excess of the three-month LIBOR rate), plus in each case, an applicable margin. The applicable margin for LIBOR loans, based on the applicable leverage ratio, is either 1.5% or 2.0% per annum, and the applicable margin for base rate loans, based on the applicable leverage ratio, is either 0.5% or 1.0% per annum. At June 30, 2015 our rate, inclusive of applicable margins, was 3.75% for prime. At June 30, 2015, the Company had no outstanding debt under the Credit Facility. The Company is required to pay an unused line fee equal to 0.375% per annum on the undrawn portion available under the revolving credit facility and variable per annum fees in respect of outstanding letters of credit, if any. Such fees are included in interest expense in the accompanying condensed consolidated statements of income. The Credit Facility contains two financial covenants; a leverage ratio and a fixed charge coverage ratio. Failure to comply with these covenants, or the occurrence of an event of default, could permit the Lenders under the Credit Facility to declare all amounts borrowed under the Credit Facility, together with accrued interest and fees, to be immediately due and payable. In addition, the Credit Facility is secured by substantially all of our assets and places limits on the Company’s and its subsidiaries’ ability to incur debt or liens and engage in sale-leaseback transactions, make loans and investments, incur additional indebtedness, engage in mergers, acquisitions and asset sales, transact with affiliates and alter its business. We were in compliance with all covenants under our Credit Facility as of June 30, 2015. |
Defined Benefit Pension Plan
Defined Benefit Pension Plan | 6 Months Ended |
Jun. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Defined Benefit Pension Plan | 10. Defined Benefit Pension Plan Our German subsidiary maintains an unfunded defined benefit pension plan which covers substantially all employees who joined the company prior to the plan’s closure to new participants in 2006. Participants are entitled to benefits in the form of retirement, disability and surviving dependent pensions. Benefits generally depend on years of service and the salary of the employees. The components of net periodic benefit cost included in the accompanying condensed consolidated statements of income were as follows (in thousands): Three Months Ended Six Months Ended 2015 2014 2015 2014 Service cost $ 30 $ 29 $ 59 $ 59 Interest cost 30 44 58 88 Amortization 19 — 38 — Net periodic benefit cost $ 79 $ 73 $ 155 $ 147 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 11. Income Taxes A reconciliation of income taxes computed at federal statutory rates to income tax expense is as follows (dollar amounts in thousands): Three Months Ended June 30, 2015 2014 Provision for income taxes at statutory rate $ 3,180 35.0 % $ 4,284 35.0 % State and local income taxes, net of federal tax benefit 130 1.4 % 225 1.8 % Stock compensation 30 0.3 % 78 0.6 % Foreign rate differential (99 ) (1.1 )% — — Disqualifying dispositions of incentive stock options (3 ) — (25 ) (0.2 )% Other, net (55 ) (0.6 )% (13 ) — Reported income tax provision $ 3,183 35.0 % $ 4,549 37.2 % Six Months Ended June 30, 2015 2014 Provision for income taxes at statutory rate $ 7,001 35.0 % $ 9,028 35.0 % State and local income taxes, net of federal tax benefit 287 1.4 % 481 1.9 % Stock compensation 62 0.3 % 165 0.6 % Reversal of reserves (342 ) (1.7 )% — — Foreign rate differential (186 ) (0.9 )% 178 0.7 % Disqualifying dispositions of incentive stock options (19 ) (0.1 )% (42 ) (0.2 )% Other, net (61 ) (0.3 )% (153 ) (0.6 )% Reported income tax provision $ 6,742 33.7 % $ 9,657 37.4 % At June 30, 2015, the reserve for uncertain tax positions was approximately $6.5 million. Of this amount, $3.7 million is recorded as a reduction of deferred tax assets and $2.8 million is classified as long term liabilities. During the first quarter of 2015, the Company settled a tax audit related to its Japan subsidiary. As a result of this settlement, the Company recognized a tax benefit of $0.3 million. |
Net Income Per Share
Net Income Per Share | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | 12. Net Income Per Share Basic and diluted earnings per share are computed pursuant to the two-class method. The two-class method determines earnings per share for each class of common stock and participating security according to their respective participation rights in undistributed earnings. Unvested restricted stock awards granted to employees are considered participating securities as they receive non-forfeitable rights to cash dividends at the same rate as common stock. In accordance with Accounting Standards Codification Topic No. 260, Earnings Per Share 1. Assume exercise of stock options and vesting of restricted stock using the treasury stock method. 2. Assume exercise of stock options using the treasury stock method, but assume participating securities (unvested restricted stock) are not vested and allocate earnings to common shares and participating securities using the two-class method. For the three and six months ended June 30, 2015 and the three months ended June 30, 2014, the two-class method was used in the computation of diluted net income per share as this approach was more dilutive. For the six months ended June 30, 2014, the treasury stock method was used in the computation of diluted net income per share, as this approach was more dilutive. The following presents a reconciliation of the numerator and denominator used in the calculation of basic and diluted net income per share (in thousands, except share and per share data): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Numerator: Net income, as reported $ 5,904 $ 7,691 $ 13,261 $ 16,136 Less: net income attributable to participating securities (150 ) (159 ) (301 ) (289 ) Net income available to common shareholders—basic $ 5,754 $ 7,532 $ 12,960 $ 15,847 Denominator: Basic: Weighted-average shares of common stock outstanding 39,873,730 39,555,875 39,758,947 39,438,705 Less: weighted-average shares of unvested restricted common stock outstanding (1,047,545 ) (841,697 ) (931,279 ) (725,273 ) Weighted-average number of common shares used in computing basic net income per common share 38,826,185 38,714,178 38,827,668 38,713,432 Net income per share applicable to common shareholders—basic $ 0.15 $ 0.19 $ 0.33 $ 0.41 Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Numerator: Net income available to common shareholders—basic $ 5,754 $ 7,532 $ 12,960 $ 15,847 Add-back: undistributed earnings allocated to unvested shareholders (1) 51 96 124 N/A Less: undistributed earnings reallocated to unvested shareholders (1) (50 ) (94 ) (122 ) N/A Net income available to common shareholders—diluted $ 5,755 $ 7,534 $ 12,962 $ 15,847 Denominator: Diluted: Weighted-average shares of common stock outstanding 39,873,730 39,555,875 39,758,947 39,438,705 Less: weighted-average shares of unvested restricted common stock outstanding (1,047,545 ) (841,697 ) (931,279 ) (725,273 ) Weighted-average number of common shares issuable upon exercise of outstanding stock options, based on the treasury stock method 569,210 909,339 631,090 973,470 Weighted-average number of restricted stock, based on the treasury stock method (2) N/A N/A N/A 179,004 Weighted-average number of common shares used in computing diluted net income per common share 39,395,395 39,623,517 39,458,758 39,865,906 Net income per share applicable to common shareholders—diluted $ 0.15 $ 0.19 $ 0.33 $ 0.40 (1) Adjustments to net income relate to net income per share calculations under the two class method; therefore, it is not applicable, or N/A, for certain periods presented. (2) Adjustments pertain to net income per share calculations under the treasury stock method; therefore, it is not applicable, or N/A, for certain periods presented. The following common share equivalents have been excluded from the computation of diluted weighted-average shares outstanding, as their effect would have been anti-dilutive: Three Months Ended Six Months Ended 2015 2014 2015 2014 Options 433,463 689,410 370,201 417,058 Unvested restricted stock 405,522 395,520 247,768 233,813 Unvested restricted stock units 14,825 5,700 11,341 3,420 |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
Stockholders' Equity | 13. Stockholders’ Equity Share repurchases On October 23, 2013, the Company’s Board of Directors approved a share repurchase program permitting repurchases of up to $50.0 million of the Company’s outstanding shares of common shares for a maximum period of two years. Intended to offset shareholder dilution, the Company made repurchases periodically, on the open market as business and market conditions warrant through June 5, 2015, at which date the maximum amount of repurchases was reached. During the quarter ended June 30, 2015, the Company repurchased a total of 457,128 shares of its common stock for an aggregate purchase price of $12.5 million, including brokers’ fees. Of that amount, the Company purchased 14,278 shares of common stock, for an aggregate purchase price of $0.4 million, including brokers’ fees, in excess of its publicly announced share repurchase program upon the conclusion of the program. Share Based Compensation We account for share based compensation in accordance with ASC Topic No. 718, Compensation – Stock Compensation, Three Months Ended Six Months Ended 2015 2014 2015 2014 Marketing and selling $ 1,609 $ 1,250 $ 2,875 $ 2,296 Research and development 644 613 1,186 1,127 General and administrative 1,217 893 2,180 1,593 Total expensed $ 3,470 $ 2,756 $ 6,241 $ 5,016 Property and equipment 40 40 82 63 Total share based compensation $ 3,510 $ 2,796 $ 6,323 $ 5,079 In the three months ended June 30, 2015 and 2014, approximately $40 thousand and $40 thousand, respectively, and in the six months ended June 30, 2015 and 2014, approximately $82 thousand and $63 thousand, respectively, of share based compensation was capitalized as part of an internal software project, and this amount is included in property and equipment, net in our condensed consolidated balance sheet. As of June 30, 2015, the Company had $30.4 million of unrecognized compensation expense related to employees and directors’ unvested stock option awards, restricted stock units and restricted stock awards that are expected to be recognized over a weighted-average period of 2.9 years. |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment Reporting | 14. Segment Reporting We view our operations and manage our business as one segment: the development, marketing and licensing of technologies and fonts. Factors used to identify our single segment include the financial information available for evaluation by our chief operating decision maker in making decisions about how to allocate resources and assess performance. While our technologies and services are sold into two principal markets, Creative Professional and OEM, expenses and assets are not formally allocated to these market segments, and operating results are assessed on an aggregate basis to make decisions about the allocation of resources. The following table presents revenue for these two major markets (in thousands): Three Months Ended Six Months Ended 2015 2014 2015 2014 Creative Professional $ 20,678 $ 18,266 $ 41,182 $ 35,985 OEM 25,727 26,697 51,269 55,050 Total $ 46,405 $ 44,963 $ 92,451 $ 91,035 Geographic segment information The Company attributes revenue to geographic areas based on the location of our subsidiary receiving such revenue. For example, licenses may be sold to large international companies which may be headquartered in South Korea, but the sales are received and recorded by our subsidiary located in the United States. In this example, the revenue would be reflected in the United States totals in the table below. We market our products and services through offices in the United States, United Kingdom, Germany, Hong Kong, South Korea and Japan. The following summarizes revenue by location: Three Months Ended June 30, 2015 2014 Sales % of Total Sales % of Total (In thousands, except percentages) United States $ 26,520 57.2 % $ 24,602 54.7 % United Kingdom 1,530 3.3 2,636 5.9 Germany 5,389 11.6 4,210 9.4 Japan 12,773 27.5 13,367 29.7 Other Asia 193 0.4 148 0.3 Total $ 46,405 100.0 % $ 44,963 100.0 % Six Months Ended June 30, 2015 2014 Sales % of Total Sales % of Total (In thousands, except percentages) United States $ 51,363 55.5 % $ 48,538 53.3 % United Kingdom 3,378 3.7 5,329 5.9 Germany 11,233 12.2 8,687 9.5 Japan 25,980 28.1 28,081 30.9 Other Asia 497 0.5 400 0.4 Total $ 92,451 100.0 % $ 91,035 100.0 % Long-lived assets, which include property and equipment, goodwill and intangible assets, but exclude other assets, long-term investments and deferred tax assets, are attributed to geographic areas in which Company assets reside and is shown below (in thousands): June 30, December 31, Long-lived assets: United States $ 210,344 $ 189,927 United Kingdom 4,992 5,138 Germany 57,500 62,917 Asia (including Japan) 3,525 3,457 Total $ 276,361 $ 261,439 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 15. Commitments and Contingencies Legal Proceedings From time to time, we may be a party to various claims, suits and complaints. We do not believe that there are claims or legal proceedings that, if determined adversely to us, would have a material adverse effect on our business, results of operations or financial condition. Licensing Warranty Under our standard license agreement with our OEM customers, we warrant that the licensed technologies are free of infringement claims of intellectual property rights and will meet the specifications as defined in the licensing agreement for a one year period. Under the licensing agreements, liability for such indemnity obligations is limited generally to the total arrangement fee; however, exceptions have been made on a case-by-case basis, increasing the maximum potential liability to agreed upon amounts at the time the contract is entered into or unlimited liability. We have never incurred costs payable to a customer or business partner to defend lawsuits or settle claims related to these warranties, and as a result, management believes the estimated fair value of these warranties is minimal. Accordingly, there are no liabilities recorded for these warranties as of June 30, 2015 and December 31, 2014. |
Subsequent Event
Subsequent Event | 6 Months Ended |
Jun. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Event | 16. Subsequent Event Dividend Declaration On July 22, 2015 the Company’s Board of Directors declared a $0.10 per share quarterly cash dividend on our outstanding common stock. The record date is set for October 1, 2015 and the dividend is payable to shareholders of record on October 21, 2015. Dividends are declared at the discretion of the Company’s Board of Directors and depend on actual cash from operations, the Company’s financial condition and capital requirements and any other factors the Company’s Board of Directors may consider relevant. Future dividend declarations, as well as the record and payment dates for such dividends, will be determined by the Company’s Board of Directors on a quarterly basis. |
Recent Accounting Pronounceme23
Recent Accounting Pronouncements (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
Internal-Use Software | Internal-Use Software In April 2015, the Financial Accounting Standards Board, or FASB issued ASU 2015-05, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40), Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement. |
Interest | Interest In April 2015, the FASB, issued ASU 2015-03, Interest – Imputation of Interest (Subtopic 835-30), Simplifying the Presentation of Debt Issuance Costs, |
Consolidation | Consolidation In February 2015, the FASB issued updated accounting guidance on consolidation requirements. This update changes the guidance with respect to the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. This guidance is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015, with early adoption permitted. The Company does not expect adoption of this guidance to have a material impact on our financial statements. |
Going Concern | Going Concern In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements – Going Concern (Subtopic 205-40); Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern |
Revenue Recognition | Revenue Recognition In May 2014, the FASB and the International Accounting Standards Board jointly issued ASU 2014-9, Revenue from Contracts with Customers (Topic 606), |
Derivative Financial Instrume24
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Losses on Derivative Financial Instruments | The following table presents the losses on our derivative financial instruments which are included in loss on derivatives in our accompanying condensed consolidated statements of income (in thousands): Three Months Ended Six Months Ended 2015 2014 2015 2014 Currency swaps $ 208 $ 158 $ 72 $ 214 Total $ 208 $ 158 $ 72 $ 214 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets and Liabilities Measured at Fair Value | The following table presents our financial assets and liabilities that are carried at fair value, classified according to the three categories described above (in thousands): Fair Value Measurement at June 30, 2015 Total Quoted Prices in Significant Other Significant Assets: Cash equivalents—money market funds $ 26,458 $ 26,458 $ — $ — Cash equivalents—commercial paper 9,249 — 9,249 — Cash equivalents—corporate bonds 4,319 — 4,319 — Total assets $ 40,026 $ 26,458 $ 13,568 $ — Liabilities: Contingent acquisition consideration $ 4,997 $ — $ — $ 4,997 Total liabilities $ 4,997 $ — $ — $ 4,997 Fair Value Measurement at December 31, 2014 Total Quoted Prices in Significant Other Significant Assets: Cash equivalents—money market funds $ 34,309 $ 34,309 $ — $ — Cash equivalents—commercial paper 3,000 — 3,000 — Cash equivalents—U.S. government and agency securities 2,700 — 2,700 — Total assets $ 40,009 $ 34,309 $ 5,700 $ — Liabilities: Contingent acquisition consideration $ 270 $ — $ 270 $ — Total liabilities $ 270 $ — $ 270 $ — |
Summary of Changes in Estimated Fair Value for Liabilities Measured on a Recurring Basis Using Significant Unobservable Inputs (Level 3) | The changes in the estimated fair value for our liabilities measured on a recurring basis using significant unobservable inputs (Level 3) are as follows (in thousands): Three Months Ended Six Months Ended Fair value measurement at the beginning of period $ 4,900 $ — Contingent consideration recorded upon acquisition 4,900 Accreted interest 97 97 Fair value measurement at end of period $ 4,997 $ 4,997 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consists of the following (in thousands): June 30, December 31, Computer equipment and software $ 17,472 $ 12,084 Furniture and fixtures 1,122 1,093 Leasehold improvements 3,957 3,498 Total cost 22,551 16,675 Less accumulated depreciation and amortization (6,940 ) (6,097 ) Property and equipment, net $ 15,611 $ 10,578 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible assets consist of the following (dollar amounts in thousands): June 30, 2015 December 31, 2014 Weighted- Gross Accumulated Net Gross Accumulated Net Customer relationships 10 $ 60,175 $ (47,818 ) $ 12,357 $ 57,488 $ (47,018 ) $ 10,470 Acquired technology 11 54,604 (36,860 ) 17,744 55,064 (34,411 ) 20,653 Non-compete agreements 4 12,979 (11,948 ) 1,031 12,172 (11,862 ) 310 Indefinite-lived intangible assets: Trademarks 38,024 — 38,024 38,029 — 38,029 Domain names 4,400 — 4,400 4,400 — 4,400 Total $ 170,182 $ (96,626 ) $ 73,556 $ 167,153 $ (93,291 ) $ 73,862 |
Defined Benefit Pension Plan (T
Defined Benefit Pension Plan (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Components of Net Periodic Benefit Cost | The components of net periodic benefit cost included in the accompanying condensed consolidated statements of income were as follows (in thousands): Three Months Ended Six Months Ended 2015 2014 2015 2014 Service cost $ 30 $ 29 $ 59 $ 59 Interest cost 30 44 58 88 Amortization 19 — 38 — Net periodic benefit cost $ 79 $ 73 $ 155 $ 147 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Tax Reconciliation Computed at Federal Statutory Rates to Income Tax Expense | A reconciliation of income taxes computed at federal statutory rates to income tax expense is as follows (dollar amounts in thousands): Three Months Ended June 30, 2015 2014 Provision for income taxes at statutory rate $ 3,180 35.0 % $ 4,284 35.0 % State and local income taxes, net of federal tax benefit 130 1.4 % 225 1.8 % Stock compensation 30 0.3 % 78 0.6 % Foreign rate differential (99 ) (1.1 )% — — Disqualifying dispositions of incentive stock options (3 ) — (25 ) (0.2 )% Other, net (55 ) (0.6 )% (13 ) — Reported income tax provision $ 3,183 35.0 % $ 4,549 37.2 % Six Months Ended June 30, 2015 2014 Provision for income taxes at statutory rate $ 7,001 35.0 % $ 9,028 35.0 % State and local income taxes, net of federal tax benefit 287 1.4 % 481 1.9 % Stock compensation 62 0.3 % 165 0.6 % Reversal of reserves (342 ) (1.7 )% — — Foreign rate differential (186 ) (0.9 )% 178 0.7 % Disqualifying dispositions of incentive stock options (19 ) (0.1 )% (42 ) (0.2 )% Other, net (61 ) (0.3 )% (153 ) (0.6 )% Reported income tax provision $ 6,742 33.7 % $ 9,657 37.4 % |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following presents a reconciliation of the numerator and denominator used in the calculation of basic and diluted net income per share (in thousands, except share and per share data): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Numerator: Net income, as reported $ 5,904 $ 7,691 $ 13,261 $ 16,136 Less: net income attributable to participating securities (150 ) (159 ) (301 ) (289 ) Net income available to common shareholders—basic $ 5,754 $ 7,532 $ 12,960 $ 15,847 Denominator: Basic: Weighted-average shares of common stock outstanding 39,873,730 39,555,875 39,758,947 39,438,705 Less: weighted-average shares of unvested restricted common stock outstanding (1,047,545 ) (841,697 ) (931,279 ) (725,273 ) Weighted-average number of common shares used in computing basic net income per common share 38,826,185 38,714,178 38,827,668 38,713,432 Net income per share applicable to common shareholders—basic $ 0.15 $ 0.19 $ 0.33 $ 0.41 Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Numerator: Net income available to common shareholders—basic $ 5,754 $ 7,532 $ 12,960 $ 15,847 Add-back: undistributed earnings allocated to unvested shareholders (1) 51 96 124 N/A Less: undistributed earnings reallocated to unvested shareholders (1) (50 ) (94 ) (122 ) N/A Net income available to common shareholders—diluted $ 5,755 $ 7,534 $ 12,962 $ 15,847 Denominator: Diluted: Weighted-average shares of common stock outstanding 39,873,730 39,555,875 39,758,947 39,438,705 Less: weighted-average shares of unvested restricted common stock outstanding (1,047,545 ) (841,697 ) (931,279 ) (725,273 ) Weighted-average number of common shares issuable upon exercise of outstanding stock options, based on the treasury stock method 569,210 909,339 631,090 973,470 Weighted-average number of restricted stock, based on the treasury stock method (2) N/A N/A N/A 179,004 Weighted-average number of common shares used in computing diluted net income per common share 39,395,395 39,623,517 39,458,758 39,865,906 Net income per share applicable to common shareholders—diluted $ 0.15 $ 0.19 $ 0.33 $ 0.40 (1) Adjustments to net income relate to net income per share calculations under the two class method; therefore, it is not applicable, or N/A, for certain periods presented. (2) Adjustments pertain to net income per share calculations under the treasury stock method; therefore, it is not applicable, or N/A, for certain periods presented. |
Schedule of Anti-Dilutive Securities Excluded from Computation of Earnings Per Share | The following common share equivalents have been excluded from the computation of diluted weighted-average shares outstanding, as their effect would have been anti-dilutive: Three Months Ended Six Months Ended 2015 2014 2015 2014 Options 433,463 689,410 370,201 417,058 Unvested restricted stock 405,522 395,520 247,768 233,813 Unvested restricted stock units 14,825 5,700 11,341 3,420 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
Schedule of Share Based Compensation Expense | The following presents the impact of share based compensation expense on our condensed consolidated statements of income (in thousands): Three Months Ended Six Months Ended 2015 2014 2015 2014 Marketing and selling $ 1,609 $ 1,250 $ 2,875 $ 2,296 Research and development 644 613 1,186 1,127 General and administrative 1,217 893 2,180 1,593 Total expensed $ 3,470 $ 2,756 $ 6,241 $ 5,016 Property and equipment 40 40 82 63 Total share based compensation $ 3,510 $ 2,796 $ 6,323 $ 5,079 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Revenue for Major Markets | The following table presents revenue for these two major markets (in thousands): Three Months Ended Six Months Ended 2015 2014 2015 2014 Creative Professional $ 20,678 $ 18,266 $ 41,182 $ 35,985 OEM 25,727 26,697 51,269 55,050 Total $ 46,405 $ 44,963 $ 92,451 $ 91,035 |
Schedule of Revenue by Geographic Segments | The following summarizes revenue by location: Three Months Ended June 30, 2015 2014 Sales % of Total Sales % of Total (In thousands, except percentages) United States $ 26,520 57.2 % $ 24,602 54.7 % United Kingdom 1,530 3.3 2,636 5.9 Germany 5,389 11.6 4,210 9.4 Japan 12,773 27.5 13,367 29.7 Other Asia 193 0.4 148 0.3 Total $ 46,405 100.0 % $ 44,963 100.0 % Six Months Ended June 30, 2015 2014 Sales % of Total Sales % of Total (In thousands, except percentages) United States $ 51,363 55.5 % $ 48,538 53.3 % United Kingdom 3,378 3.7 5,329 5.9 Germany 11,233 12.2 8,687 9.5 Japan 25,980 28.1 28,081 30.9 Other Asia 497 0.5 400 0.4 Total $ 92,451 100.0 % $ 91,035 100.0 % |
Schedule of Assets by Geographic Segments | Long-lived assets, which include property and equipment, goodwill and intangible assets, but exclude other assets, long-term investments and deferred tax assets, are attributed to geographic areas in which Company assets reside and is shown below (in thousands): June 30, December 31, Long-lived assets: United States $ 210,344 $ 189,927 United Kingdom 4,992 5,138 Germany 57,500 62,917 Asia (including Japan) 3,525 3,457 Total $ 276,361 $ 261,439 |
Nature of the Business - Additi
Nature of the Business - Additional Information (Detail) - 6 months ended Jun. 30, 2015 | SegmentSubsidiary |
Nature Of Business [Abstract] | |
Number of business segments | Segment | 1 |
Number of subsidiaries, domestic | 4 |
Number of subsidiaries, foreign | 5 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) $ in Thousands | Jan. 30, 2015USD ($)Employees | Jul. 14, 2014USD ($)Employees | Jan. 31, 2015USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) |
Business Acquisition [Line Items] | |||||
Business acquisition, cash paid net of cash acquired | $ 14,289 | $ 1,015 | |||
FontShop [Member] | |||||
Business Acquisition [Line Items] | |||||
Total purchase price | $ 14,600 | ||||
Business acquisition, cash paid | 11,900 | $ 2,700 | |||
Goodwill acquired | $ 6,300 | ||||
Number of employees joined in connection with the acquisition | Employees | 50 | ||||
Intangible assets acquired | $ 8,500 | ||||
Expected tax deductible amount on goodwill | $ 6,300 | ||||
Date of acquisition | Oct. 28, 2014 | ||||
Swyft Media [Member] | |||||
Business Acquisition [Line Items] | |||||
Total purchase price | $ 17,000 | ||||
Business acquisition, cash paid | 12,100 | ||||
Contingent consideration | 15,000 | ||||
Contingent consideration, net present value | 4,900 | ||||
Goodwill acquired | 13,600 | ||||
Business acquisition, cash paid net of cash acquired | 11,600 | ||||
Intangible assets acquired | $ 4,700 | ||||
Number of employees joined in connection with the acquisition | Employees | 12 |
Derivative Financial Instrume35
Derivative Financial Instruments - Additional Information (Detail) - Forward Contracts [Member] - Contract | 6 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | |
Derivative [Line Items] | ||
Forward contract terms | 30-day forward contract | |
Number of forward contract outstanding | 1 | 1 |
Derivative Financial Instrume36
Derivative Financial Instruments - Losses on Derivative Financial Instruments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Derivative [Line Items] | ||||
Loss on derivatives | $ 208 | $ 158 | $ 72 | $ 214 |
Currency Swaps [Member] | ||||
Derivative [Line Items] | ||||
Loss on derivatives | $ 208 | $ 158 | $ 72 | $ 214 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Financial Assets and Liabilities Measured at Fair Value (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total assets | $ 40,026 | $ 40,009 | |
Total liabilities | 4,997 | 270 | |
Contingent Consideration [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Contingent acquisition consideration | 4,997 | 270 | |
Money Market Funds [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash equivalents | 26,458 | 34,309 | |
Commercial Paper [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash equivalents | 9,249 | 3,000 | |
US Government and Agency Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash equivalents | 2,700 | ||
Corporate Bonds [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash equivalents | 4,319 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total assets | 26,458 | 34,309 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Money Market Funds [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash equivalents | 26,458 | 34,309 | |
Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total assets | 13,568 | 5,700 | |
Total liabilities | 270 | ||
Significant Other Observable Inputs (Level 2) [Member] | Contingent Consideration [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Contingent acquisition consideration | 270 | ||
Significant Other Observable Inputs (Level 2) [Member] | Commercial Paper [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash equivalents | 9,249 | 3,000 | |
Significant Other Observable Inputs (Level 2) [Member] | US Government and Agency Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash equivalents | $ 2,700 | ||
Significant Other Observable Inputs (Level 2) [Member] | Corporate Bonds [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash equivalents | 4,319 | ||
Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Contingent acquisition consideration | 4,997 | $ 4,900 | |
Total liabilities | 4,997 | ||
Significant Unobservable Inputs (Level 3) [Member] | Contingent Consideration [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Contingent acquisition consideration | $ 4,997 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) | Jan. 30, 2015USD ($) | Jun. 30, 2015USD ($)ContractSimulations | Jun. 30, 2015GBP (£)Contract | Dec. 31, 2014USD ($)Contract | Dec. 31, 2014GBP (£)Contract |
Derivative [Line Items] | |||||
Contingent acquisition consideration | $ 4,997,000 | ||||
Monte Carlo Simulation [Member] | |||||
Derivative [Line Items] | |||||
Number of simulation trials | Simulations | 100,000 | ||||
Swyft Media [Member] | |||||
Derivative [Line Items] | |||||
Contingent acquisition consideration | $ 5,000,000 | ||||
Business acquisition contingent consideration | $ 17,000,000 | ||||
Swyft Media [Member] | Maximum [Member] | |||||
Derivative [Line Items] | |||||
Business acquisition contingent consideration | $ 15,000,000 | ||||
Forward Contract to Sell [Member] | |||||
Derivative [Line Items] | |||||
30-day forward contract outstanding | £ | £ 2,200,000 | £ 2,300,000 | |||
Number of forward contract outstanding | Contract | 1 | 1 | 1 | 1 | |
Forward Contract to Purchase [Member] | |||||
Derivative [Line Items] | |||||
30-day forward contract outstanding | $ 3,400,000 | $ 3,500,000 | |||
Number of forward contract outstanding | Contract | 1 | 1 | 1 | 1 | |
Forward Contracts [Member] | |||||
Derivative [Line Items] | |||||
Number of forward contract outstanding | Contract | 1 | 1 | 1 | 1 | |
Forward contract terms | 30-day forward contract |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Changes in Estimated Fair Value for Liabilities Measured on a Recurring Basis Using Significant Unobservable Inputs (Level 3) (Detail) - Jun. 30, 2015 - Significant Unobservable Inputs (Level 3) [Member] - USD ($) $ in Thousands | Total | Total |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value measurement at the beginning of period | $ 4,900 | |
Contingent consideration recorded upon acquisition | 4,900 | $ 4,900 |
Accreted interest | 97 | 97 |
Fair value measurement at end of period | $ 4,997 | $ 4,997 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Total cost | $ 22,551 | $ 16,675 |
Less accumulated depreciation and amortization | (6,940) | (6,097) |
Property and equipment, net | 15,611 | 10,578 |
Computer Equipment and Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 17,472 | 12,084 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 1,122 | 1,093 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | $ 3,957 | $ 3,498 |
Intangible Assets - Intangible
Intangible Assets - Intangible Assets (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | |
Finite-Lived Intangible Assets [Line Items] | ||
Acquired technology, Gross Carrying Amount | $ 60,175 | $ 57,488 |
Non-compete agreements, Gross Carrying Amount | 12,979 | 12,172 |
Gross Carrying Amount | 170,182 | 167,153 |
Accumulated Amortization | (96,626) | (93,291) |
Indefinite-lived intangible assets: | ||
Net Balance | 73,556 | 73,862 |
Trademarks [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Net Balance, Indefinite-Lived Intangible Assets | 38,024 | 38,029 |
Net Balance, Indefinite-Lived Intangible Assets | 38,024 | 38,029 |
Domain Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Net Balance, Indefinite-Lived Intangible Assets | 4,400 | 4,400 |
Net Balance, Indefinite-Lived Intangible Assets | $ 4,400 | 4,400 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Weighted-Average Amortization Period (Years) | 10 years | |
Accumulated Amortization | $ (47,818) | (47,018) |
Indefinite-lived intangible assets: | ||
Net Balance, Finite-Lived Intangible Assets | $ 12,357 | 10,470 |
Acquired Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Weighted-Average Amortization Period (Years) | 11 years | |
Acquired technology, Gross Carrying Amount | $ 54,604 | 55,064 |
Accumulated Amortization | (36,860) | (34,411) |
Indefinite-lived intangible assets: | ||
Net Balance, Finite-Lived Intangible Assets | $ 17,744 | 20,653 |
Non-compete Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Weighted-Average Amortization Period (Years) | 4 years | |
Accumulated Amortization | $ (11,948) | (11,862) |
Indefinite-lived intangible assets: | ||
Net Balance, Finite-Lived Intangible Assets | $ 1,031 | $ 310 |
Debt - Additional Information (
Debt - Additional Information (Detail) | 6 Months Ended | |
Jun. 30, 2015USD ($)Convenant | Jul. 13, 2011USD ($) | |
Debt Instrument [Line Items] | ||
Number of financial covenants | Convenant | 2 | |
Wells Fargo Bank [Member] | ||
Debt Instrument [Line Items] | ||
New credit agreement entering date | Jul. 13, 2011 | |
Secured revolving credit facility term, years | 5 years | |
Secured revolving credit facility, current borrowing capacity | $ 120,000,000 | |
Interest rate on outstanding borrowings | Borrowings under the Credit Facility bear interest at a variable rate based upon, at the Company’s option, either LIBOR or the base rate (which is the highest of (i) the prime rate, (ii) 0.5% plus the overnight federal funds rate, and (iii) 1.0% in excess of the three-month LIBOR rate), plus in each case, an applicable margin. The applicable margin for LIBOR loans, based on the applicable leverage ratio, is either 1.5% or 2.0% per annum, and the applicable margin for base rate loans, based on the applicable leverage ratio, is either 0.5% or 1.0% per annum. At June 30, 2015 our rate, inclusive of applicable margins, was 3.75% for prime. | |
Credit facility basis spread on variable rate LIBOR | 1.00% | |
Credit facility reference rate LIBOR | Three-month LIBOR | |
Outstanding debt under credit facility | $ 0 | |
Percentage of fee payment on unused line of credit facility | 0.375% | |
Federal Funds Rate [Member] | Wells Fargo Bank [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate on outstanding borrowings | 0.5% plus the overnight federal funds rate | |
LIBOR Rate [Member] | Wells Fargo Bank [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate on outstanding borrowings | 1.0% in excess of the three-month LIBOR rate | |
Credit facility basis spread on variable rate LIBOR | 0.50% | |
Applicable leverage ratio, lower end | 1.50% | |
Applicable leverage ratio, higher end | 2.00% | |
Base Rate [Member] | Wells Fargo Bank [Member] | ||
Debt Instrument [Line Items] | ||
Applicable leverage ratio, lower end | 0.50% | |
Applicable leverage ratio, higher end | 1.00% | |
Prime Rate [Member] | Wells Fargo Bank [Member] | ||
Debt Instrument [Line Items] | ||
Variable interest rate | 3.75% |
Defined Benefit Pension Plan -
Defined Benefit Pension Plan - Components of Net Periodic Benefit Cost (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Postemployment Benefits [Abstract] | ||||
Service cost | $ 30 | $ 29 | $ 59 | $ 59 |
Interest cost | 30 | 44 | 58 | 88 |
Amortization | 19 | 38 | ||
Net periodic benefit cost | $ 79 | $ 73 | $ 155 | $ 147 |
Income Taxes - Income Tax Recon
Income Taxes - Income Tax Reconciliation Computed at Federal Statutory Rates to Income Tax Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Tax Disclosure [Abstract] | ||||
Provision for income taxes at statutory rate | $ 3,180 | $ 4,284 | $ 7,001 | $ 9,028 |
State and local income taxes, net of federal tax benefit | 130 | 225 | 287 | 481 |
Stock compensation | 30 | 78 | 62 | 165 |
Reversal of reserves | (342) | |||
Foreign rate differential | (99) | (186) | 178 | |
Disqualifying dispositions of incentive stock options | (3) | (25) | (19) | (42) |
Other, net | (55) | (13) | (61) | (153) |
Reported income tax provision | $ 3,183 | $ 4,549 | $ 6,742 | $ 9,657 |
Provision for income taxes at statutory rate, tax rate | 35.00% | 35.00% | 35.00% | 35.00% |
State and local income taxes, net of federal tax benefit, tax rate | 1.40% | 1.80% | 1.40% | 1.90% |
Stock compensation, tax rate | 0.30% | 0.60% | 0.30% | 0.60% |
Reversal of reserves, tax rate | (1.70%) | |||
Foreign rate differential, tax rate | (1.10%) | (0.90%) | 0.70% | |
Disqualifying dispositions of incentive stock options, tax rate | (0.20%) | (0.10%) | (0.20%) | |
Other, net, tax rate | (0.60%) | (0.30%) | (0.60%) | |
Reported income tax provision, tax rate | 35.00% | 37.20% | 33.70% | 37.40% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2015 | Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | ||
Reserve for uncertain tax positions | $ 6.5 | |
Uncertain tax position reduction in deferred tax assets | 3.7 | |
Uncertain tax positions long term liabilities | $ 2.8 | |
Income tax settlement, benefit recognized | $ 0.3 |
Net Income Per Share - Schedule
Net Income Per Share - Schedule of Earnings Per Share, Basic and Diluted (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Schedule Of Earnings Per Share Basic And Diluted [Line Items] | ||||
Net income, as reported | $ 5,904 | $ 7,691 | $ 13,261 | $ 16,136 |
Less: net income attributable to participating securities | (150) | (159) | (301) | (289) |
Net income available to common shareholders-basic | 5,754 | 7,532 | 12,960 | 15,847 |
Net income available to common shareholders-basic | 5,754 | 7,532 | 12,960 | 15,847 |
Add-back: undistributed earnings allocated to unvested shareholders | 51 | 96 | 124 | |
Less: undistributed earnings reallocated to unvested shareholders | (50) | (94) | (122) | |
Net income available to common shareholders-diluted | $ 5,755 | $ 7,534 | $ 12,962 | $ 15,847 |
Basic: | ||||
Weighted-average shares of common stock outstanding | 39,873,730 | 39,555,875 | 39,758,947 | 39,438,705 |
Less: weighted-average shares of unvested restricted common stock outstanding | (1,047,545) | (841,697) | (931,279) | (725,273) |
Weighted-average number of common shares used in computing basic net income per common share | 38,826,185 | 38,714,178 | 38,827,668 | 38,713,432 |
Net income per share applicable to common shareholders-basic | $ 0.15 | $ 0.19 | $ 0.33 | $ 0.41 |
Diluted: | ||||
Weighted-average shares of common stock outstanding | 39,873,730 | 39,555,875 | 39,758,947 | 39,438,705 |
Less: weighted-average shares of unvested restricted common stock outstanding | (1,047,545) | (841,697) | (931,279) | (725,273) |
Weighted-average number of common shares used in computing diluted net income per common share | 39,395,395 | 39,623,517 | 39,458,758 | 39,865,906 |
Net income per share applicable to common shareholders-diluted | $ 0.15 | $ 0.19 | $ 0.33 | $ 0.40 |
Weighted Average [Member] | ||||
Diluted: | ||||
Weighted-average number of common shares issuable upon exercise of outstanding stock options, based on the treasury stock method | 569,210 | 909,339 | 631,090 | 973,470 |
Weighted-average number of restricted stock, based on the treasury stock method | 179,004 |
Net Income Per Share - Schedu47
Net Income Per Share - Schedule of Anti-Dilutive Securities Excluded from Computation of Earnings Per Share (Detail) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Options [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from computation of earnings per share | 433,463 | 689,410 | 370,201 | 417,058 |
Unvested Restricted Stock [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from computation of earnings per share | 405,522 | 395,520 | 247,768 | 233,813 |
Unvested Restricted Stock Units [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from computation of earnings per share | 14,825 | 5,700 | 11,341 | 3,420 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Oct. 23, 2013 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Share based compensation, capitalized | $ 40,000 | $ 40,000 | $ 82,000 | $ 63,000 | |
Unrecognized compensation expense | $ 30,400,000 | $ 30,400,000 | |||
Weighted-average period, years | 2 years 10 months 24 days | ||||
Share Repurchase Program [Member] | |||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Total amount authorized under repurchase program | $ 50,000,000 | ||||
Stock repurchase program, period in force | 2 years | ||||
Number of shares repurchased under stock repurchase program | 457,128 | ||||
Total common stock aggregate purchase price | $ 12,500,000 | ||||
Share Repurchases in Excess of Publicly Announced Share Repurchase Program [Member] | |||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Number of shares repurchased under stock repurchase program | 14,278 | ||||
Total common stock aggregate purchase price | $ 400,000 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Share Based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share based compensation, Total expensed | $ 3,470 | $ 2,756 | $ 6,241 | $ 5,016 |
Property and equipment | 40 | 40 | 82 | 63 |
Total share based compensation | 3,510 | 2,796 | 6,323 | 5,079 |
Marketing and Selling [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share based compensation, Total expensed | 1,609 | 1,250 | 2,875 | 2,296 |
Research and Development [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share based compensation, Total expensed | 644 | 613 | 1,186 | 1,127 |
General and Administrative [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share based compensation, Total expensed | $ 1,217 | $ 893 | $ 2,180 | $ 1,593 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) - 6 months ended Jun. 30, 2015 | SegmentMarkets |
Segment Reporting [Abstract] | |
Number of operating segment | 1 |
Number of major markets, segment reporting | Markets | 2 |
Segment Reporting - Schedule of
Segment Reporting - Schedule of Revenue for Major Markets (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Segment Reporting Information [Line Items] | ||||
Total | $ 46,405 | $ 44,963 | $ 92,451 | $ 91,035 |
Creative Professional [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total | 20,678 | 18,266 | 41,182 | 35,985 |
OEM [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total | $ 25,727 | $ 26,697 | $ 51,269 | $ 55,050 |
Segment Reporting - Schedule 52
Segment Reporting - Schedule of Revenue by Geographic Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Segment Reporting Information [Line Items] | ||||
Total | $ 46,405 | $ 44,963 | $ 92,451 | $ 91,035 |
% of Total | 100.00% | 100.00% | 100.00% | 100.00% |
United States [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total | $ 26,520 | $ 24,602 | $ 51,363 | $ 48,538 |
% of Total | 57.20% | 54.70% | 55.50% | 53.30% |
United Kingdom [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total | $ 1,530 | $ 2,636 | $ 3,378 | $ 5,329 |
% of Total | 3.30% | 5.90% | 3.70% | 5.90% |
Germany [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total | $ 5,389 | $ 4,210 | $ 11,233 | $ 8,687 |
% of Total | 11.60% | 9.40% | 12.20% | 9.50% |
Japan [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total | $ 12,773 | $ 13,367 | $ 25,980 | $ 28,081 |
% of Total | 27.50% | 29.70% | 28.10% | 30.90% |
Other Asia [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total | $ 193 | $ 148 | $ 497 | $ 400 |
% of Total | 0.40% | 0.30% | 0.50% | 0.40% |
Segment Reporting - Schedule 53
Segment Reporting - Schedule of Assets by Geographic Segments (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Long-lived assets: | ||
Total | $ 276,361 | $ 261,439 |
United States [Member] | ||
Long-lived assets: | ||
Total | 210,344 | 189,927 |
United Kingdom [Member] | ||
Long-lived assets: | ||
Total | 4,992 | 5,138 |
Germany [Member] | ||
Long-lived assets: | ||
Total | 57,500 | 62,917 |
Asia (Including Japan) [Member] | ||
Long-lived assets: | ||
Total | $ 3,525 | $ 3,457 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Period of licensing agreement term | 1 year | |
Warranty liabilities | $ 0 | $ 0 |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Detail) - $ / shares | 6 Months Ended | |
Jun. 30, 2015 | Jul. 22, 2015 | |
Subsequent Event [Line Items] | ||
Dividend payable, date of record | Oct. 1, 2015 | |
Dividend payable, date to be paid | Oct. 21, 2015 | |
Subsequent Events [Member] | ||
Subsequent Event [Line Items] | ||
Dividend approved, amount per share | $ 0.10 |