Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Feb. 03, 2014 | Jun. 28, 2013 |
Document and Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'LIMELIGHT NETWORKS, INC. | ' | ' |
Entity Central Index Key | '0001391127 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Entity Public Float | ' | ' | $125.60 |
Entity Common Stock, Shares Outstanding | ' | 97,843,306 | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $85,956 | $108,915 |
Marketable securities | 32,506 | 19,040 |
Accounts receivable, net | 21,430 | 26,602 |
Income taxes receivable | 371 | 471 |
Deferred income taxes | 93 | 38 |
Prepaid expenses and other current assets | 8,192 | 12,308 |
Total current assets | 148,548 | 167,374 |
Property and equipment, net | 32,905 | 41,251 |
Marketable securities, less current portion | 46 | 18 |
Deferred income tax, less current portion | 1,307 | 2,838 |
Goodwill | 77,035 | 80,278 |
Other intangible assets, net | 2,354 | 6,387 |
Other assets | 6,103 | 6,735 |
Total assets | 268,298 | 304,881 |
Current liabilities: | ' | ' |
Accounts payable | 5,473 | 6,730 |
Deferred revenue | 3,523 | 6,892 |
Capital lease obligations | 466 | 1,301 |
Income taxes payable | 799 | 519 |
Other current liabilities | 15,022 | 14,866 |
Total current liabilities | 25,283 | 30,308 |
Capital lease obligations, less current portion | 358 | 824 |
Deferred income tax | 321 | 461 |
Deferred revenue, less current portion | 1,500 | 797 |
Other long-term liabilities | 3,505 | 5,261 |
Total liabilities | 30,967 | 37,651 |
Commitments and contingencies | ' | ' |
Stockholders’ equity: | ' | ' |
Convertible preferred stock, $0.001 par value; 7,500 shares authorized; 0 shares issued and outstanding | 0 | ' |
Common stock, $0.001 par value; 300,000 shares authorized at December 31, 2013 and, 2012; 97,677 and 98,038 shares issued and outstanding at December 31, 2013 and 2012, respectively | 98 | 98 |
Additional paid-in capital | 458,748 | 452,258 |
Contingent consideration | 0 | 33 |
Accumulated other comprehensive loss | -1,663 | -709 |
Accumulated deficit | -219,852 | -184,450 |
Total stockholders’ equity | 237,331 | 267,230 |
Total liabilities and stockholders’ equity | $268,298 | $304,881 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Financial Position [Abstract] | ' | ' |
Convertible Preferred Stock, Par Value (in dollars per share) | $0.00 | $0.00 |
Convertible Preferred Stock, Shares Authorized | 7,500,000 | 7,500,000 |
Convertible Preferred Stock, Shares Issued | 0 | 0 |
Convertible Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, Par Value (in dollars per share) | $0.00 | $0.00 |
Common Stock, Shares Authorized | 300,000,000 | 300,000,000 |
Common Stock, Shares Issued | 97,677,000 | 98,038,000 |
Common stock, shares outstanding | 97,677,000 | 98,038,000 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | |||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Income Statement [Abstract] | ' | ' | ' | |||
Revenues | $173,433 | $180,236 | $171,292 | |||
Cost of revenue: | ' | ' | ' | |||
Cost of services (1) | 88,783 | [1] | 85,226 | [1] | 82,976 | [1] |
Depreciation — network | 22,942 | 27,992 | 28,030 | |||
Total cost of revenue | 111,725 | 113,218 | 111,006 | |||
Gross profit | 61,708 | 67,018 | 60,286 | |||
Operating expenses: | ' | ' | ' | |||
General and administrative | 31,904 | 34,500 | 30,672 | |||
Sales and marketing | 41,474 | 45,044 | 40,110 | |||
Research and development | 22,003 | 20,182 | 17,163 | |||
Depreciation and amortization | 5,804 | 5,843 | 4,787 | |||
Total operating expenses | 101,185 | 105,569 | 92,732 | |||
Operating loss | -39,477 | -38,551 | -32,446 | |||
Other income (expense): | ' | ' | ' | |||
Interest expense | -76 | -177 | -299 | |||
Interest income | 321 | 356 | 752 | |||
Gain on sale of cost basis investment | 0 | 9,420 | 0 | |||
Other, net | 4,643 | -602 | -311 | |||
Total other income | 4,888 | 8,997 | 142 | |||
Loss from continuing operations before income taxes | -34,589 | -29,554 | -32,304 | |||
Income tax provision (benefit) | 387 | 481 | -2,238 | |||
Loss from continuing operations | -34,976 | -30,035 | -30,066 | |||
Discontinued operations: | ' | ' | ' | |||
(Loss) income from discontinued operations, net of income taxes | -426 | -2,861 | 4,778 | |||
Net loss | ($35,402) | ($32,896) | ($25,288) | |||
Basic net (loss) income per weighted average share: | ' | ' | ' | |||
Continuing operations (in dollars per share) | ($0.36) | ($0.30) | ($0.28) | |||
Discontinued operations (in dollars per share) | ($0.01) | ($0.02) | $0.05 | |||
Total (in dollars per share) | ($0.37) | ($0.32) | ($0.23) | |||
Diluted net (loss) income per weighted average share: | ' | ' | ' | |||
Continuing operations (in dollars per share) | ($0.36) | ($0.30) | ($0.28) | |||
Discontinued operations (in dollars per share) | ($0.01) | ($0.02) | $0.05 | |||
Total (in dollars per share) | ($0.37) | ($0.32) | ($0.23) | |||
Shares used in per weighted average share calculations: | ' | ' | ' | |||
Basic (shares) | 96,851 | 101,283 | 109,236 | |||
Diluted (shares) | 96,851 | 101,283 | 109,236 | |||
[1] | Cost of services excludes amortization related to intangibles, including existing technologies, customer relationships, and trade names and trademarks, which are included in depreciation and amortization |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Loss (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' |
Net loss | ($35,402) | ($32,896) | ($25,288) |
Other comprehensive (loss) income, net of tax: | ' | ' | ' |
Unrealized (loss) gain on investments | -13 | -28 | -52 |
Cumulative translation adjustment | 0 | 0 | 494 |
Foreign exchange translation | -941 | -172 | -1,069 |
Discontinued operations | 0 | 0 | -211 |
Other comprehensive loss, net of tax | -954 | -200 | -838 |
Comprehensive loss | ($36,356) | ($33,096) | ($26,126) |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total | Common Stock | Additional Paid-In Capital | Contingent Consideration | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
In Thousands, except Share data, unless otherwise specified | ||||||
Beginning balance at Dec. 31, 2010 | $256,109 | $100 | $380,338 | $1,608 | $329 | ($126,266) |
Beginning balance, Shares at Dec. 31, 2010 | ' | 100,068,000 | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' |
Net loss | -25,288 | 0 | 0 | 0 | 0 | -25,288 |
Change in unrealized gains (losses) on available-for-sale investments, net of taxes | -52 | 0 | 0 | 0 | -52 | 0 |
Cumulative foreign currency translation adjustment, net of taxes | 494 | ' | ' | ' | 494 | ' |
Foreign currency translation adjustment, net of taxes | -1,069 | ' | ' | ' | -1,069 | ' |
Discontinued operations | -211 | 0 | 0 | 0 | -211 | 0 |
Exercise of common stock options, Shares | ' | 258,000 | ' | ' | ' | ' |
Exercise of common stock options | 733 | 0 | 733 | 0 | 0 | 0 |
Vesting of restricted stock units, Shares | ' | 985,000 | ' | ' | ' | ' |
Vesting of restricted stock units | 0 | 1 | -1 | 0 | 0 | 0 |
Restricted stock units surrendered in lieu of withholding taxes, Shares | ' | -293,000 | ' | ' | ' | ' |
Restricted stock units surrendered in lieu of withholding taxes | -1,298 | 0 | -1,298 | 0 | 0 | 0 |
Common stock received from escrow in settlement of Eye Wonder indemnity claims, Shares | ' | -589,000 | ' | ' | ' | ' |
Common stock received from escrow in settlement of Eye Wonder indemnity claims | -1,712 | -1 | -1,711 | 0 | 0 | 0 |
Issuance of common stock for contingent consideration, Shares | ' | 387,000 | ' | ' | ' | ' |
Issuance of common stock for contingent consideration | 0 | 0 | 1,389 | -1,389 | 0 | 0 |
Issuance of common stock for business acquisitions, Shares | ' | 1,483,000 | ' | ' | ' | ' |
Issuance of common stock for business acquisitions | 11,638 | 1 | 11,637 | 0 | 0 | 0 |
Issuance of common stock related to secondary offering, Shares | ' | 11,500,000 | ' | ' | ' | ' |
Issuance of common stock related to secondary offering | 77,049 | 12 | 77,037 | ' | ' | ' |
Purchase of common stock, Shares | ' | -9,450,000 | ' | ' | ' | ' |
Purchase of common stock | -24,373 | -9 | -24,364 | ' | ' | ' |
Share-based compensation - continuing operations | 15,881 | 0 | 15,881 | 0 | 0 | 0 |
Share-based compensation - discontinued operations | 1,204 | 0 | 1,204 | 0 | 0 | 0 |
Ending balance at Dec. 31, 2011 | 309,105 | 104 | 460,845 | 219 | -509 | -151,554 |
Ending balance, Shares at Dec. 31, 2011 | ' | 104,349,000 | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' |
Net loss | -32,896 | 0 | 0 | 0 | 0 | -32,896 |
Change in unrealized gains (losses) on available-for-sale investments, net of taxes | -28 | 0 | 0 | 0 | -28 | 0 |
Cumulative foreign currency translation adjustment, net of taxes | 0 | ' | ' | ' | ' | ' |
Foreign currency translation adjustment, net of taxes | -172 | 0 | 0 | 0 | -172 | 0 |
Discontinued operations | 0 | ' | ' | ' | ' | ' |
Exercise of common stock options, Shares | ' | 175,000 | ' | ' | ' | ' |
Exercise of common stock options | 190 | 0 | 190 | 0 | 0 | 0 |
Vesting of restricted stock units, Shares | ' | 2,451,000 | ' | ' | ' | ' |
Vesting of restricted stock units | 0 | 3 | -3 | 0 | 0 | 0 |
Restricted stock units surrendered in lieu of withholding taxes, Shares | ' | -788,000 | ' | ' | ' | ' |
Restricted stock units surrendered in lieu of withholding taxes | -1,904 | -1 | -1,903 | 0 | 0 | 0 |
Common stock received from escrow in settlement of Eye Wonder indemnity claims, Shares | ' | -110,000 | ' | ' | ' | ' |
Common stock received from escrow in settlement of Eye Wonder indemnity claims | -398 | 0 | -398 | 0 | 0 | 0 |
Issuance of common stock for contingent consideration, Shares | ' | 61,000 | ' | ' | ' | ' |
Issuance of common stock for contingent consideration | 0 | 0 | 186 | -186 | 0 | 0 |
Issuance of common stock for business acquisitions, Shares | ' | 350,000 | ' | ' | ' | ' |
Issuance of common stock for business acquisitions | 0 | 0 | 0 | ' | ' | ' |
Purchase of common stock, Shares | ' | -8,450,000 | ' | ' | ' | ' |
Purchase of common stock | -21,142 | -8 | -21,134 | 0 | 0 | 0 |
Share-based compensation - continuing operations | 14,475 | 0 | 14,475 | 0 | 0 | 0 |
Ending balance at Dec. 31, 2012 | 267,230 | 98 | 452,258 | 33 | -709 | -184,450 |
Ending balance, Shares at Dec. 31, 2012 | 98,038,000 | 98,038,000 | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' |
Net loss | -35,402 | 0 | 0 | 0 | 0 | -35,402 |
Change in unrealized gains (losses) on available-for-sale investments, net of taxes | -13 | 0 | 0 | 0 | -13 | 0 |
Cumulative foreign currency translation adjustment, net of taxes | 0 | ' | ' | ' | ' | ' |
Foreign currency translation adjustment, net of taxes | -941 | 0 | 0 | 0 | -941 | 0 |
Discontinued operations | 0 | ' | ' | ' | ' | ' |
Exercise of common stock options, Shares | ' | 143,000 | ' | ' | ' | ' |
Exercise of common stock options | 38 | 0 | 38 | 0 | 0 | 0 |
Vesting of restricted stock units, Shares | ' | 2,032,000 | ' | ' | ' | ' |
Vesting of restricted stock units | 0 | 2 | -2 | 0 | 0 | 0 |
Restricted stock units surrendered in lieu of withholding taxes, Shares | ' | -593,000 | ' | ' | ' | ' |
Restricted stock units surrendered in lieu of withholding taxes | -1,304 | 0 | -1,304 | 0 | 0 | 0 |
Issuance of common stock for contingent consideration, Shares | 10,915 | 11,000 | ' | ' | ' | ' |
Issuance of common stock for contingent consideration | 0 | 0 | 33 | -33 | 0 | 0 |
Issuance of common stock under employee stock purchase plan, Shares | ' | 135,000 | ' | ' | ' | ' |
Issuance of common stock under employee stock purchase plan | 225 | ' | 225 | ' | ' | ' |
Purchase of common stock, Shares | ' | -2,089,000 | ' | ' | ' | ' |
Purchase of common stock | -4,847 | -2 | -4,845 | 0 | 0 | 0 |
Share-based compensation - continuing operations | 12,345 | 0 | 12,345 | 0 | 0 | 0 |
Ending balance at Dec. 31, 2013 | $237,331 | $98 | $458,748 | $0 | ($1,663) | ($219,852) |
Ending balance, Shares at Dec. 31, 2013 | 97,677,000 | 97,677,000 | ' | ' | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Operating activities | ' | ' | ' |
Net loss | ($35,402) | ($32,896) | ($25,288) |
(Loss) income from discontinued operations | -426 | -2,861 | 4,778 |
Net loss from continuing operations | -34,976 | -30,035 | -30,066 |
Adjustments to reconcile net loss from continuing operations to net cash provided by operating activities of continuing operations: | ' | ' | ' |
Depreciation and amortization | 28,746 | 33,835 | 32,817 |
Share-based compensation | 12,345 | 14,475 | 15,881 |
Foreign currency remeasurement gain | -531 | -103 | 0 |
Deferred income taxes | -328 | -38 | -214 |
Loss on disposal of property and equipment | 442 | 89 | 0 |
Accounts receivable charges | 965 | 2,010 | 1,181 |
Amortization (accretion) of premium (discount) on marketable securities | 639 | 472 | -63 |
Non cash tax benefit associated with sale of discontinued operations | 0 | 0 | -2,572 |
Non cash increase in cost basis investment | 0 | -528 | -1,038 |
Gain on sale of cost basis investment | 0 | -9,420 | 0 |
Gain on sale of the Web Content Management business | -3,836 | 0 | 0 |
Changes in operating assets and liabilities: | ' | ' | ' |
Accounts receivable | 2,581 | -567 | 5 |
Prepaid expenses and other current assets | 1,222 | 2,910 | -582 |
Income taxes receivable | 105 | -440 | 184 |
Other assets | 519 | -1,626 | -3,859 |
Accounts payable | -2,192 | 2,419 | -2,491 |
Deferred revenue | 4 | -137 | -1,021 |
Other current liabilities | 384 | 17 | -3,254 |
Income taxes payable | 305 | -255 | -1,357 |
Other long term liabilities | -798 | -649 | 1,344 |
Net cash provided by operating activities of continuing operations | 5,596 | 12,429 | 4,895 |
Investing activities | ' | ' | ' |
Purchase of marketable securities | -59,047 | -27,280 | -22,712 |
Maturities of marketable securities | 44,901 | 27,625 | 14,932 |
Purchases of property and equipment | -18,575 | -18,390 | -30,363 |
Proceeds from the sale of cost basis investment | 1,237 | 10,154 | 0 |
Proceeds from sale of the Web Content Management business | 12,341 | 0 | 0 |
Proceeds from the sale of discontinued operations | 124 | 7,441 | 61,000 |
Acquisition of businesses, net of cash acquired | 0 | 0 | -7,360 |
Net cash (used in) provided by investing activities of continuing operations | -19,019 | -450 | 15,497 |
Financing activities | ' | ' | ' |
Payments on capital lease obligations | -1,301 | -1,749 | -1,384 |
Payment of employee tax withholdings related to restricted stock | -2,372 | -683 | -1,196 |
Cash paid for purchase of common stock | -5,512 | -20,851 | -24,373 |
Proceeds from exercise of stock options | 38 | 190 | 733 |
Proceeds from employee stock purchase plan | 225 | 0 | 0 |
Proceeds from secondary public offering, net | 0 | 0 | 77,049 |
Net cash (used in) provided by financing activities of continuing operations | -8,922 | -23,093 | 50,829 |
Effect of exchange rate changes on cash and cash equivalents | -606 | -171 | 351 |
Discontinued operations | ' | ' | ' |
Cash used in operating activities of discontinued operations | -8 | -149 | -5,400 |
Cash used in investing activities of discontinued operations | 0 | 0 | -684 |
Net cash used in discontinued operations | -8 | -149 | -6,084 |
Net (decrease) increase in cash and cash equivalents | -22,959 | -11,434 | 65,488 |
Cash and cash equivalents, beginning of year | 108,915 | 120,349 | 54,861 |
Cash and cash equivalents, end of year | 85,956 | 108,915 | 120,349 |
Supplement disclosure of cash flow information | ' | ' | ' |
Cash paid during the year for interest | 76 | 178 | 203 |
Cash paid during the year for income taxes, net of refunds | 321 | 1,428 | 1,851 |
Property and equipment remaining in accounts payable and other current liabilities | 1,709 | 948 | 3,275 |
Purchase of property and equipment under capital leases | 0 | 0 | 2,271 |
Property and equipment acquired through leasehold incentives | 386 | 0 | 2,361 |
Common stock issued in connection with acquisition of businesses | 0 | 0 | 9,413 |
Contingent consideration common stock issued in connection with acquisition of businesses | 33 | 186 | 1,389 |
Property acquired due to vendor concession | $0 | $0 | $0 |
Nature_of_Business
Nature of Business | 12 Months Ended |
Dec. 31, 2013 | |
Nature of Business [Abstract] | ' |
Nature of Business | ' |
Nature of Business | |
Limelight Networks, Inc. (the Company) operates a globally distributed, high-performance network (its global network) and provides a suite of integrated services including content delivery services, video content management services, performance services for website and web application acceleration, and cloud storage services. These four services work collectively to enable any organization to deliver a digital experience to any device, anywhere in the world. | |
The Company, incorporated in Delaware, has operated in the Phoenix metropolitan area since 2001 and elsewhere throughout the United States since 2003. The Company began international operations in 2004. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Accounting Policies [Abstract] | ' | |||||||||
Summary of Significant Accounting Policies | ' | |||||||||
Summary of Significant Accounting Policies | ||||||||||
Basis of Presentation | ||||||||||
The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP). The consolidated financial statements include accounts of the Company and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated. In addition, certain other reclassifications have been made to prior year amounts to conform to the current year presentation. All information is presented in thousands, except per share amounts and where specifically noted. | ||||||||||
Revision of Previously Issued Financial Statements | ||||||||||
For the year ended December 31, 2013, the statement of operations was revised to reclassify certain amounts to cost of revenues, research and development and sales and marketing expenses that were previously reported in general and administrative expenses. The following table summarizes the reclassification by line item within the statement of operations for the prior years ended December 31, 2012 and 2011: | ||||||||||
For the Year Ended December 31, 2012 | ||||||||||
As | As | |||||||||
Reported | Reclassifications | Revised | ||||||||
Cost of services | $ | 83,723 | $ | 1,503 | $ | 85,226 | ||||
Total cost of revenue | 111,715 | 1,503 | 113,218 | |||||||
Gross profit | 68,521 | (1,503 | ) | 67,018 | ||||||
General and administrative | 36,003 | (1,503 | ) | 34,500 | ||||||
Total operating expenses | 107,072 | (1,503 | ) | 105,569 | ||||||
For the Year Ended December 31, 2011 | ||||||||||
As | As | |||||||||
Reported | Reclassifications | Revised | ||||||||
Cost of services | $ | 81,556 | $ | 1,420 | $ | 82,976 | ||||
Total cost of revenue | 109,586 | 1,420 | 111,006 | |||||||
Gross profit | 61,706 | (1,420 | ) | 60,286 | ||||||
General and administrative | 32,138 | (1,466 | ) | 30,672 | ||||||
Sales and marketing | 40,081 | 29 | 40,110 | |||||||
Research and development | 17,146 | 17 | 17,163 | |||||||
Total operating expenses | 94,152 | (1,420 | ) | 92,732 | ||||||
The Company also revised the statement of cash flow presentation for certain remeasurement gains and losses from the “Effect of exchange rate changes on cash and cash equivalents” line item to the “Foreign currency remeasurement (gain) loss” line item included in “Net cash provided by operating activities of continuing operations.” The amount of this revision for the year ended December 31, 2012 was approximately $103. | ||||||||||
On September 1, 2011, the Company completed the sale of its EyeWonder LLC and subsidiaries and chors GmbH video and rich media advertising services (EyeWonder and chors) to DG FastChannel, Inc. (now Digital Generation, Inc.) (DG). The sale of EyeWonder and chors met the criteria for discontinued operations during the year ended December 31, 2011. Accordingly, the results of operations related to EyeWonder and chors have been classified as discontinued operations in all periods presented. See further discussion in Note 5. | ||||||||||
Use of Estimates | ||||||||||
The preparation of the consolidated financial statements and related disclosures in conformity with U.S. GAAP requires management to make judgments, assumptions, and estimates that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results and outcomes may differ from those estimates. The results of operations presented in this annual report on Form 10-K are not necessarily indicative of the results that may be expected for the year ending December 31, 2014 or for any future periods. | ||||||||||
Foreign Currency Translation | ||||||||||
The Company analyzes the functional currency for each of its international subsidiaries periodically to determine if a significant change in facts and circumstances indicate that the primary economic currency has changed. As of December 31, 2010, the Company’s international subsidiaries had the U.S. dollar as their functional currencies. During the first quarter of 2011, the Company analyzed the various economic factors of its international subsidiaries and determined that the operations of its subsidiaries that were previously determined to operate in a U.S. dollar functional currency environment had changed and their functional currencies should be changed to the local currencies. The Company was historically primarily focused on the United States market and deployed network assets in foreign jurisdictions to support its United States customers. The Company is now conducting business and generating revenue from an international customer base. It has significantly expanded its sales, operations and finance resources internationally and various contracts were moved to the foreign subsidiaries to better match foreign currency costs with foreign currency revenues. Effective January 1, 2011, the adjustment from translating these subsidiaries’ financial statements from the local currency to the U.S. dollar was recorded as a separate component of accumulated other comprehensive loss. The foreign currency translation adjustments reflect the translation of the balance sheet at period end exchange rates and the income statement at an average exchange rate in effect during each period. Upon the change in functional currency, the Company recorded a cumulative translation adjustment of approximately $494, which is included in the consolidated statement of comprehensive loss for the year ended December 31, 2011. Due to changes in exchange rates between reporting periods and changes in certain account balances, the foreign currency translation adjustment will change from period to period. During the years ended December 31, 2013, 2012 and 2011, the Company recorded additional foreign currency translation losses of $941, $172 and $1,069, respectively, in its statements of comprehensive loss. During the year ended December 31, 2013, the Company recorded a foreign exchange remeasurement gain of approximately $92. During each of the years ended December 31, 2012 and 2011, the Company recorded foreign exchange remeasurement losses of approximately $513 and $266 respectively. The foreign exchange remeasurement gains and losses are included in other income (expense) in the consolidated statements of operations. | ||||||||||
Recent Accounting Standards | ||||||||||
Recently Adopted Accounting Standards | ||||||||||
In February 2013, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2013-02, which requires additional disclosures regarding the reporting of reclassifications out of accumulated other comprehensive income (loss). ASU 2013-02 requires an entity to present, either on the face of the statement where net income (loss) is presented, or in the notes, significant amounts reclassified out of accumulated other comprehensive income (loss) by the respective line items of net income (loss), but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income (loss) in its entirety in the same reporting period. This guidance is effective for reporting periods beginning after December 15, 2012. The Company adopted this guidance effective January 1, 2013, and has included the additional disclosures in Note 16. | ||||||||||
In March 2013, the FASB issued ASU 2013-05, which permits an entity to release cumulative translation adjustments into net income when a reporting entity (parent) ceases to have a controlling financial interest in a subsidiary or group of assets that is a business within a foreign entity. Accordingly, the cumulative translation adjustment should be released into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided, or, if a controlling financial interest is no longer held. The revised standard is effective for the Company for fiscal years beginning after December 15, 2013. The company adopted this guidance effective January 1, 2014. The Company does not expect adoption of this ASU to significantly impact its consolidated financial statements. | ||||||||||
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 (Topic 740). ASU 2013-11 requires that unrecognized tax benefits be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except in certain circumstances. When those circumstances exist, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The company has adopted this guidance, see further discussion in Note 21. | ||||||||||
Revenue Recognition | ||||||||||
The Company derives revenue primarily from the sale of services that comprise components of its Orchestrate Platform. The Company’s customers generally execute contracts with terms of one year or longer, which are referred to as recurring revenue contracts or long-term contracts. These contracts generally commit the customer to a minimum monthly level of usage with additional charges applicable for actual usage above the monthly minimum commitment. The Company defines usage as customer data sent or received using its content delivery service, or content that is hosted or cached by the Company at the request or direction of its customer. The Company recognizes the monthly minimum as revenue each month provided that an enforceable contract has been signed by both parties, the service has been delivered to the customer, the fee for the service is fixed or determinable, and collection is reasonably assured. Should a customer’s usage of the Company’s services exceed the monthly minimum commitment, the Company recognizes revenue for such excess in the period of the usage. For annual or other non-monthly period revenue commitments, the Company recognizes revenue monthly based upon the customer’s actual usage each month of the commitment period and only recognizes any remaining committed amount for the applicable period in the last month thereof. | ||||||||||
The Company typically charges the customer an installation fee when the services are first activated. The Company does not charge installation fees for contract renewals. Installation fees are recorded as deferred revenue and recognized as revenue ratably over the estimated life of the customer arrangement. The Company also derives revenue from services and events sold as discrete, non-recurring events or based solely on usage. For these services, the Company recognizes revenue after an enforceable contract has been signed by both parties, the fee is fixed or determinable, the event or usage has occurred and collection is reasonably assured. | ||||||||||
The Company has, on occasion, entered into multi-element arrangements. Revenue arrangements with multiple deliverables are divided into separate units of accounting if each deliverable has stand-alone value to the customer. Arrangements not meeting these criteria are combined into a single unit of accounting. | ||||||||||
For services sold in multiple-element arrangements, consideration is allocated to each deliverable at the inception of an arrangement based on relative selling prices. Substantially all services are sold on a stand-alone basis, providing vendor specific objective evidence (VSOE) of selling prices. In the absence of VSOE or third-party evidence of selling prices, consideration would be allocated based on the Company’s best estimate of such prices. | ||||||||||
The Company recognized approximately $1,914, $2,837, and $4,309, respectively, in revenue under multi-element arrangements for the years ended December 31, 2013, 2012, and 2011. As of December 31, 2013, the Company had no deferred revenue related to multi-element arrangements. | ||||||||||
At the inception of a customer contract for service, the Company makes an assessment as to that customer’s ability to pay for the services provided. If the Company subsequently determines that collection from the customer is not reasonably assured, the Company records an allowance for doubtful accounts and bad debt expense or deferred revenue for all of that customer’s unpaid invoices and ceases recognizing revenue for continued services provided until cash is received. | ||||||||||
Deferred revenue represents amounts billed to customers for which revenue has not been recognized. Deferred revenue primarily consists of the unearned portion of monthly billed service fees, prepayments made by customers for future periods, and deferred installation fees. | ||||||||||
Cash and Cash Equivalents | ||||||||||
The Company holds its cash and cash equivalents in checking, money market, and highly-liquid investments. The Company considers all highly liquid investments with maturities of three months or less when purchased to be cash equivalents. | ||||||||||
Investments in Marketable Securities | ||||||||||
Management determines the appropriate classification of its marketable securities at the time of purchase and reevaluates such classification as of each balance sheet date. The Company has classified its investments in marketable securities as available-for-sale. Available-for-sale investments are initially recorded at cost with temporary changes in fair value periodically recorded through comprehensive income. Realized gains and losses and declines in value judged to be other than temporary are determined based on the specific identification method and are reported in the statements of operations. The Company periodically reviews its investments for other-than-temporary declines in fair value based on the specific identification method and writes down investments to their fair value when an other-than-temporary decline has occurred. | ||||||||||
Accounts Receivable | ||||||||||
Trade accounts receivable are recorded at the invoiced amounts and do not bear interest. The Company records reserves against its accounts receivable balance for service credits and for doubtful accounts. Estimates are used in determining both of these reserves. The allowance for doubtful accounts charges are included as a component of general and administrative expenses. | ||||||||||
The allowance for doubtful accounts is based upon a calculation that uses the Company’s aging of accounts receivable and applies a reserve percentage to the specific age of the receivable to estimate the allowance for doubtful accounts. The reserve percentages are determined based on the Company’s historical write-off experience. These estimates could change significantly if the Company’s customers’ financial condition changes or if the economy in general deteriorates. | ||||||||||
The Company’s reserve for service credits relates to credits that are expected to be issued to customers during the ordinary course of business. These credits typically relate to customer disputes and billing adjustments and are estimated at the time the revenue is recognized and recorded as a reduction of revenues. Estimates for service credits are based on an analysis of credits issued in previous periods. | ||||||||||
Property and Equipment | ||||||||||
Property and equipment are carried at cost less accumulated depreciation or amortization. Depreciation and amortization are computed using the straight-line method over the assets’ estimated useful lives of the applicable asset. | ||||||||||
Network equipment | 3 years | |||||||||
Computer equipment | 3 years | |||||||||
Capitalized software | 3 years | |||||||||
Furniture and fixtures | 3-5 years | |||||||||
Other equipment | 3-7 years | |||||||||
Leasehold improvements are amortized over the shorter of the asset’s estimated useful life or the respective lease term. Repairs and maintenance are charged to expense as incurred. | ||||||||||
Goodwill and Other Intangible Assets | ||||||||||
Goodwill represents costs in excess of fair values assigned to the underlying net assets of the acquired company. Goodwill is not amortized but instead is tested for impairment annually or more frequently if events or changes in circumstances indicate goodwill might be impaired. | ||||||||||
The Company’s other intangible assets represent existing technologies, trade names and trademarks, and customer relationship intangibles. Other intangible assets are amortized over their respective estimated lives, ranging from less than one year to six years. In the event that facts and circumstances indicate intangibles or other long-lived assets may be impaired, the Company evaluates the recoverability and estimated useful lives of such assets. Amortization of other intangible assets is included in depreciation and amortization in the accompanying consolidated statements of operations. | ||||||||||
Contingencies | ||||||||||
The Company records contingent liabilities resulting from asserted and unasserted claims when it is probable that a loss has been incurred and the amount of the loss is reasonably estimable. Contingent liabilities are disclosed when there is a reasonable possibility that the ultimate loss will exceed the recorded liability. Estimating probable losses requires analysis of multiple factors, in some cases including judgments about the potential actions of third party claimants and courts. Therefore, actual losses in any future period are inherently uncertain. | ||||||||||
Long-Lived Assets | ||||||||||
The Company reviews its long-lived assets for impairment annually, or whenever events or circumstances indicate that the carrying amount of an asset may not be fully recoverable. The Company recognizes an impairment loss if the sum of the expected long-term undiscounted cash flows that the long-lived asset is expected to generate is less than the carrying amount of the long-lived asset being evaluated. The Company treats any write-downs as permanent reductions in the carrying amounts of the assets. The Company believes the carrying amounts of its long-lived assets at December 31, 2013 and 2012 are fully realizable and has not recorded any impairment losses. | ||||||||||
Deferred Rent and Lease Accounting | ||||||||||
The Company leases bandwidth, co-location and office space in various locations. At the inception of each lease, the Company evaluates the lease terms to determine whether the lease will be accounted for as an operating or a capital lease. The term of the lease used for this evaluation includes renewal option periods only in instances where the exercise of the renewal option can be reasonably assured and failure to exercise the option would result in an economic penalty. The Company records tenant improvement allowances granted under the lease agreements as leasehold improvements within property and equipment and within deferred rent. | ||||||||||
For leases that contain rent escalation provisions, the Company records the total rent payable during the lease term on a straight-line basis over the term of the lease (including any “rent free” period beginning upon possession of the premises), and records any difference between the actual rent paid and the straight-line rent expense recorded as increases or decreases in deferred rent. | ||||||||||
Cost of Revenue | ||||||||||
Cost of revenues consists primarily of fees paid to network providers for bandwidth and backbone, costs incurred for non-settlement free peering and connection to Internet service provider networks and fees paid to data center operators for housing network equipment in third party network data centers, also known as co-location costs. Cost of revenues also includes depreciation of network equipment used to deliver the Company’s content delivery services, payroll and related costs and share-based compensation for its network operations, and professional services personnel. | ||||||||||
The Company enters into contracts for bandwidth with third party network providers with terms typically ranging from several months to five years. These contracts generally commit the Company to pay minimum monthly fees plus additional fees for bandwidth usage above contracted minimums. A portion of the global computing platform traffic delivery is completed through direct connection to ISP networks, called peering. | ||||||||||
Research and Development and Software Development Costs | ||||||||||
Research and development costs consist primarily of payroll and related personnel costs for the design, development, deployment, testing, operation, and enhancement of the Company’s services, and network. Costs incurred in the development of the Company’s services are expensed as incurred. | ||||||||||
Advertising Costs | ||||||||||
Costs associated with advertising are expensed as incurred. Advertising expenses, which are comprised of Internet, trade show, and publications advertising, were approximately $2,754, $2,474, and $2,290 for the years ended December 31, 2013, 2012, and 2011, respectively. | ||||||||||
Income Taxes | ||||||||||
The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. | ||||||||||
The Company records net deferred tax assets to the extent it believes these assets will more likely than not be realized. In making such determination, the Company considers all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies, and recent financial performance. In the event the Company was to determine that it would be able to realize its deferred income tax assets in the future in excess of their net recorded amount, the Company would make an adjustment to the valuation allowance, which would reduce the provision for income taxes. | ||||||||||
The Company recognizes uncertain income tax positions in its financial statements when it is more-likely-than-not the position will be sustained upon examination. | ||||||||||
Fair Value of Financial Instruments | ||||||||||
The carrying amounts of cash and cash equivalents approximate fair value due to the nature and short maturity of those instruments. The respective fair values of marketable securities are determined based on quoted market prices, which approximate fair values. The carrying amounts of accounts receivable, accounts payable, and accrued liabilities reported in the consolidated balance sheets approximate their respective fair values due to the immediate or short-term maturity of these financial instruments. |
Investments_in_Marketable_Secu
Investments in Marketable Securities | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Marketable Securities [Abstract] | ' | |||||||||||||||
Investments in Marketable Securities | ' | |||||||||||||||
Investments in Marketable Securities | ||||||||||||||||
The following is a summary of marketable securities (designated as available-for-sale) at December 31, 2013: | ||||||||||||||||
Amortized | Gross | Gross | Estimated | |||||||||||||
Cost | Unrealized | Unrealized | Fair Value | |||||||||||||
Gains | Losses | |||||||||||||||
Government agency bonds | $ | 261 | $ | — | $ | — | $ | 261 | ||||||||
Certificate of deposit | 4,080 | — | 4 | 4,076 | ||||||||||||
Commercial paper | 2,200 | — | — | 2,200 | ||||||||||||
Corporate notes and bonds | 26,001 | 15 | 7 | 26,009 | ||||||||||||
32,542 | 15 | 11 | 32,546 | |||||||||||||
Publicly traded common stock | 12 | — | 6 | 6 | ||||||||||||
Total marketable securities | $ | 32,554 | $ | 15 | $ | 17 | $ | 32,552 | ||||||||
At December 31, 2013, the Company evaluated its marketable securities and determined unrealized losses were due to fluctuations in interest rates. Management does not believe any of the unrealized losses represented an other-than-temporary impairment based on its evaluation of available evidence as of December 31, 2013. The Company’s intent is to hold these investments to such time as these assets are no longer impaired. | ||||||||||||||||
Expected maturities can differ from contractual maturities because the issuers of the securities may have the right to prepay obligations without prepayment penalties, and the Company views its available-for-sale securities as available for current operations. | ||||||||||||||||
The amortized cost and estimated fair value of the marketable securities (designated as available-for-sale) at December 31, 2013, by maturity, are shown below: | ||||||||||||||||
Amortized | Gross | Gross | Estimated | |||||||||||||
Cost | Unrealized | Unrealized | Fair Value | |||||||||||||
Gains | Losses | |||||||||||||||
Available-for-sale securities | ||||||||||||||||
Due in one year or less | $ | 17,031 | $ | 2 | $ | 5 | $ | 17,028 | ||||||||
Due after one year and through five years | 15,511 | 13 | 6 | 15,518 | ||||||||||||
$ | 32,542 | $ | 15 | $ | 11 | $ | 32,546 | |||||||||
The following is a summary of marketable securities (designated as available-for-sale) at December 31, 2012: | ||||||||||||||||
Amortized | Gross | Gross | Estimated | |||||||||||||
Cost | Unrealized | Unrealized | Fair Value | |||||||||||||
Gains | Losses | |||||||||||||||
Government agency bonds | $ | 6,266 | $ | 4 | $ | — | $ | 6,270 | ||||||||
Certificate of deposit | 2,741 | — | — | 2,741 | ||||||||||||
Commercial paper | 500 | — | — | 500 | ||||||||||||
Corporate notes and bonds | 9,527 | 3 | 1 | 9,529 | ||||||||||||
19,034 | 7 | 1 | 19,040 | |||||||||||||
Publicly traded common stock | 12 | 6 | — | 18 | ||||||||||||
Total marketable securities | $ | 19,046 | $ | 13 | $ | 1 | $ | 19,058 | ||||||||
The amortized cost and estimated fair value of the marketable securities (designated as available-for-sale) at December 31, 2012, by maturity, are shown below: | ||||||||||||||||
Amortized | Gross | Gross | Estimated | |||||||||||||
Cost | Unrealized | Unrealized | Fair Value | |||||||||||||
Gains | Losses | |||||||||||||||
Available-for-sale securities | ||||||||||||||||
Due in one year or less | $ | 18,260 | $ | 6 | $ | 1 | $ | 18,265 | ||||||||
Due after one year and through five years | 774 | 1 | — | 775 | ||||||||||||
$ | 19,034 | $ | 7 | $ | 1 | $ | 19,040 | |||||||||
Business_Disposition
Business Disposition | 12 Months Ended |
Dec. 31, 2013 | |
Discontinued Operations and Disposal Groups [Abstract] | ' |
Business Disposition | ' |
Business Disposition | |
On December 23, 2013, the Company sold 100% of the outstanding common stock of our Web Content Management (WCM) business for $12,341 in cash, net of preliminary working capital adjustments. After allocating goodwill of $3,799 to WCM, the sale resulted in a gain of approximately $3,836, which is included in Other, net in the consolidated statement of operations for the year ended December 31, 2013. This sale was not treated as a discontinued operation because the operations and cash flows of the WCM business cannot be clearly distinguished, operationally or for financial reporting purposes, from the rest of the Company. |
Discontinued_Operations
Discontinued Operations | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | |||||||||||
Discontinued Operations | ' | |||||||||||
Discontinued Operations | ||||||||||||
On September 1, 2011, the Company completed the sale of its EyeWonder and chors rich media advertising services to DG for net proceeds of $61,000 ($66,000 gross cash proceeds less $5,000 held in escrow) plus an estimated $10,854 receivable from DG pursuant to the purchase agreement dated as of August 30, 2011 by and among the Company, DG and Limelight Networks Germany GmbH. | ||||||||||||
The $10,854 receivable from DG was determined by the Company based on estimated future cash payments equal to the excess of certain current assets over certain current liabilities of EyeWonder and chors as of August 30, 2011, as defined in the purchase agreement (the Net Working Capital). The Company estimated the Net Working Capital based on its determination of the current assets and current liabilities in accordance with the relevant provisions of the purchase agreement. | ||||||||||||
The following is a summary of activity related to the receivable from DG for the years ended December 31, 2013 and 2012: | ||||||||||||
Balance, December 31, 2011 | $ | 10,854 | ||||||||||
Payments received from DG | (7,440 | ) | ||||||||||
Allowance for doubtful accounts receivable and other receivables adjustments | (2,060 | ) | ||||||||||
Net Working Capital adjustments | (818 | ) | ||||||||||
Balance, December 31, 2012 | $ | 536 | ||||||||||
Payments received from DG | (124 | ) | ||||||||||
Allowance for doubtful accounts receivable and other receivable adjustments | (412 | ) | ||||||||||
Balance, December 31, 2013 | $ | — | ||||||||||
During the year ended December 31, 2013, the Company recorded a charge to discontinued operations of $412 in the consolidated statement of operations to write-off the remaining accounts receivable balance from DG as it was determined the balance was no longer collectible. | ||||||||||||
During the year ended December 31, 2012, the Company recorded a charge to discontinued operations of $2,861 in the consolidated statement of operations comprised of $2,060 of allowance for doubtful accounts receivable and a reduction of $818 related to Net Working Capital adjustments. | ||||||||||||
During the year ended December 31, 2011, the Company recorded a gain on sale of discontinued operations of $14,756 net of income taxes. The gain on sale also reflects the realization of foreign currency translation adjustment gains of approximately $400 and $100 in unrealized losses on investments previously included in accumulated other comprehensive income (loss). | ||||||||||||
The sale of EyeWonder and chors met the criteria to be reported as discontinued operations. Accordingly, the operating results of EyeWonder and chors have been reclassified to discontinued operations in the accompanying consolidated statements of operations. The Company included only revenues and costs directly attributable to the discontinued operations in determining income (loss) from discontinued operations, and not those attributable to the ongoing entity. Accordingly, no general corporate overhead costs were allocated to discontinued operations. | ||||||||||||
Operating results of discontinued operations for the years ended December 31, 2013, 2012, and 2011, respectively, are as follows: | ||||||||||||
Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Revenues | $ | — | $ | — | $ | 22,302 | ||||||
Cost of revenues | — | — | (8,843 | ) | ||||||||
General and administrative expenses | (15 | ) | 163 | (6,055 | ) | |||||||
Sales and marketing expenses | — | — | (8,183 | ) | ||||||||
Research and development expenses | — | — | (4,853 | ) | ||||||||
Depreciation and amortization | — | — | (3,761 | ) | ||||||||
Interest expense | — | — | (16 | ) | ||||||||
Interest income | — | — | 21 | |||||||||
Other (expense) income | — | — | (525 | ) | ||||||||
(Loss) gain on sale of discontinued operations, net of income taxes | (411 | ) | (3,024 | ) | 14,756 | |||||||
(Loss) income before income taxes | (426 | ) | (2,861 | ) | 4,843 | |||||||
Income tax expense | — | — | (65 | ) | ||||||||
(Loss) income from discontinued operations | $ | (426 | ) | $ | (2,861 | ) | $ | 4,778 | ||||
(Loss) income from discontinued operations per weighted average share: | ||||||||||||
Basic | $ | (0.01 | ) | $ | (0.02 | ) | $ | 0.05 | ||||
Diluted | $ | (0.01 | ) | $ | (0.02 | ) | $ | 0.05 | ||||
Shares used in per weighted average share calculation for discontinued operations: | ||||||||||||
Basic and diluted | 96,851 | 101,283 | 109,236 | |||||||||
Accounts_Receivable
Accounts Receivable | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Accounts Receivable, Net [Abstract] | ' | |||||||
Accounts Receivable | ' | |||||||
Accounts Receivable | ||||||||
Accounts receivable include: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Accounts receivable | $ | 17,497 | $ | 23,675 | ||||
Unbilled accounts receivable | 5,943 | 6,997 | ||||||
23,440 | 30,672 | |||||||
Less: credit allowance | (610 | ) | (640 | ) | ||||
Less: allowance for doubtful accounts | (1,400 | ) | (3,430 | ) | ||||
Total accounts receivable, net | $ | 21,430 | $ | 26,602 | ||||
Prepaid_Expenses_and_Other_Cur
Prepaid Expenses and Other Current Assets | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Prepaid Expense and Other Assets, Current [Abstract] | ' | |||||||
Prepaid Expenses and Other Current Assets | ' | |||||||
Prepaid Expenses and Other Current Assets | ||||||||
Prepaid expenses and other current assets include: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Prepaid bandwidth and backbone services | $ | 2,045 | $ | 3,614 | ||||
Non-income taxes receivable (VAT) | 1,588 | 1,739 | ||||||
Gaikai sale escrow receivable | — | 1,237 | ||||||
Receivable from DG (see note 5) | — | 536 | ||||||
Employee advances and prepaid recoverable commissions | 189 | 551 | ||||||
Vendor deposits and other | 4,370 | 4,631 | ||||||
Total prepaid expenses and other current assets | $ | 8,192 | $ | 12,308 | ||||
In May 2010, the Company made a strategic investment in Gaikai Inc., a private cloud-based gaming technology company (Gaikai). In August 2012, Sony Computer Entertainment Inc. (Sony) acquired Gaikai and the Company recorded a gain on sale of its cost basis investment in Gaikai of $9,420 which is reflected in other income (expense) in the accompanying consolidated statement of operations for the year ended December 31, 2012. The carrying value of the Gaikai cost basis investment as of the sale date was approximately $2,000. The aggregate selling price was $11,400 consisting of $10,154 of cash received and $1,237 held in escrow for a period of up to 15 months to cover any potential indemnification claims. In November 2013, the Company received $1,246, which included the escrow receivable of $1,237, plus interest of $9. | ||||||||
Additionally, as a result of the acquisition by Sony, the Company’s contract for services with Gaikai was terminated and the Company received approximately $1,300 in terminations fees which was recorded as revenue in 2012. |
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||
Goodwill and Other Intangible Assets | ' | |||||||||||
Goodwill and Other Intangible Assets | ||||||||||||
The Company has recorded goodwill and other intangible assets as a result of its business acquisitions. Goodwill is recorded when the purchase price paid for an acquisition exceeds the estimated fair value of the net identified tangible and intangible assets acquired. In each of the Company’s acquisitions, the objective of the acquisition was to expand the Company’s product offerings and customer base and to achieve synergies related to cross selling opportunities, all of which contributed to the recognition of goodwill. | ||||||||||||
The Company tests goodwill for impairment on an annual basis or more frequently if events or changes in circumstances indicate that goodwill might be impaired. The Company concluded that it has one reporting unit and assigned the entire balance of goodwill to this reporting unit during 2013. The fair value of the reporting unit is determined using the Company’s market capitalization as of its annual impairment assessment date or each reporting date if circumstances indicate the goodwill might be impaired. Items that could reasonably be expected to negatively affect key assumptions used in estimating fair value include but are not limited to: | ||||||||||||
• | sustained decline in the Company’s stock price due to a decline in its financial performance due to the loss of key customers, loss of key personnel, emergence of new technologies or new competitors; | |||||||||||
• | decline in overall market or economic conditions leading to a decline in its stock price; and | |||||||||||
• | decline in observed control premiums paid in business combinations involving comparable companies. | |||||||||||
The estimated fair value of the reporting unit is determined using a market approach. The Company’s market capitalization is adjusted for a control premium based on the estimated average and median control premiums of transactions involving companies comparable to the Company. As of the annual impairment testing date of October 31, 2013 and at December 31, 2013, the Company determined that goodwill was not impaired. The Company determined that the estimated fair value of its reporting unit exceeded carrying value by approximately $24,800 or 11%, and $33,100 or 14%, using the market capitalization of the Company plus an estimated control premium of 40% on October 31, 2013 and December 31, 2013, respectively. Adverse changes to certain key assumptions as described above could result in a future charge to earnings. | ||||||||||||
The changes in the carrying amount of goodwill for continuing operations for the years ended December 31, 2013 and 2012 were as follows: | ||||||||||||
Balance, December 31, 2011 | $ | 80,105 | ||||||||||
Foreign currency translation adjustment | 173 | |||||||||||
Balance, December 31, 2012 | $ | 80,278 | ||||||||||
Foreign currency translation adjustment | 556 | |||||||||||
Disposition of the WCM business | $ | (3,799 | ) | |||||||||
Balance, December 31, 2013 | $ | 77,035 | ||||||||||
Other intangible assets that are subject to amortization consisted of the following: | ||||||||||||
31-Dec-13 | ||||||||||||
Gross | Accumulated | Net | ||||||||||
Carrying | Amortization | Carrying | ||||||||||
Amount | Amount | |||||||||||
Existing technologies | $ | 6,164 | $ | (3,875 | ) | $ | 2,289 | |||||
Customer relationships | 150 | (85 | ) | 65 | ||||||||
Total other intangible assets | $ | 6,314 | $ | (3,960 | ) | $ | 2,354 | |||||
31-Dec-12 | ||||||||||||
Gross | Accumulated | Net | ||||||||||
Carrying | Amortization | Carrying | ||||||||||
Amount | Amount | |||||||||||
Existing technologies | $ | 8,436 | $ | (4,035 | ) | $ | 4,401 | |||||
Customer relationships | 3,412 | (1,427 | ) | 1,985 | ||||||||
Trade names and trademark | 160 | (159 | ) | 1 | ||||||||
Total other intangible assets | $ | 12,008 | $ | (5,621 | ) | $ | 6,387 | |||||
Aggregate expense related to amortization of other intangible assets included in continuing operations for the years ended December 31, 2013, 2012, and 2011 was approximately $2,843, $2,871, and $2,350, respectively. Based on the Company’s other intangible assets as of December 31, 2013, aggregate expense related to the amortization of other intangible assets is expected to be $1,159 in 2014, and $892, $303, and $0 for fiscal years 2015, 2016, and 2017, respectively. | ||||||||||||
The weighted average amortization period for Existing technologies is 4.7 years. The weighted average amortization period for Customer relationships is 6.0 years. |
Property_and_Equipment
Property and Equipment | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property and Equipment | ' | |||||||
Property and Equipment | ||||||||
Property and equipment include: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Network equipment | $ | 180,896 | $ | 168,637 | ||||
Computer equipment | 11,073 | 10,398 | ||||||
Furniture and fixtures | 2,723 | 2,595 | ||||||
Leasehold improvements | 7,162 | 6,684 | ||||||
Other equipment | 570 | 534 | ||||||
202,424 | 188,848 | |||||||
Less: accumulated depreciation | (169,519 | ) | (147,597 | ) | ||||
Total property and equipment, net | $ | 32,905 | $ | 41,251 | ||||
Cost of revenue depreciation expense related to property and equipment was approximately $22,942, $27,992, and $28,030, respectively, for the years ended December 31, 2013, 2012, and 2011, respectively. | ||||||||
Operating expense depreciation and amortization expense related to property and equipment was approximately $2,961, $2,972, and $2,437, respectively, for the years ended December 31, 2013, 2012, and 2011, respectively. |
Other_Assets
Other Assets | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Other Assets, Noncurrent [Abstract] | ' | |||||||
Other Assets | ' | |||||||
Other Assets | ||||||||
Other assets include: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Prepaid bandwidth and backbone services | $ | 4,268 | $ | 5,799 | ||||
Vendor deposits and other | 1,835 | 729 | ||||||
Deferred expenses | — | 207 | ||||||
Total other assets | $ | 6,103 | $ | 6,735 | ||||
The Company enters into multi-year arrangements with telecommunications providers for bandwidth and backbone capacity. The agreements sometimes require the Company to make advanced payments for future services to be received. |
Other_Current_Liabilities
Other Current Liabilities | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Other Liabilities, Current [Abstract] | ' | |||||||
Other Current Liabilities | ' | |||||||
Other Current Liabilities | ||||||||
Other current liabilities include: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Accrued compensation and benefits | $ | 6,682 | $ | 6,703 | ||||
Accrued cost of revenue | 1,833 | 2,307 | ||||||
Accrued legal fees | 1,769 | 1,591 | ||||||
Indirect taxes payable | 639 | 1,029 | ||||||
Customer deposits | 635 | 361 | ||||||
Other accrued expenses | 3,464 | 2,875 | ||||||
Total other current liabilities | $ | 15,022 | $ | 14,866 | ||||
Other_Long_Term_Liabilities
Other Long Term Liabilities | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Other Liabilities, Noncurrent [Abstract] | ' | |||||||
Other Long Term Liabilities | ' | |||||||
Other Long Term Liabilities | ||||||||
Other long term liabilities include: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Deferred rent | $ | 3,384 | $ | 3,543 | ||||
Income taxes payable | 121 | 1,718 | ||||||
Total other long term liabilities | $ | 3,505 | $ | 5,261 | ||||
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2013 | |
Loss Contingency, Information about Litigation Matters [Abstract] | ' |
Contingencies | ' |
Contingencies | |
Akamai Litigation | |
In June 2006, Akamai Technologies, Inc., or Akamai, and the Massachusetts Institute of Technology, or MIT, filed a lawsuit against the Company in the United States District Court for the District of Massachusetts alleging that the Company was infringing two patents assigned to MIT and exclusively licensed by MIT to Akamai, United States Patent No. 6,553,413 (the ’413 patent) and United States Patent No. 6,108,703 (the ’703 patent). In September 2006, Akamai and MIT expanded their claims to assert infringement of a third patent United States Patent No. 7,103,645 (the ’645 patent). Before trial, Akamai waived by stipulation its claims of indirect or induced infringement and proceeded to trial only on the theory of direct infringement. In February 2008, a jury returned a verdict in this lawsuit, finding that the Company infringed four claims of the ’703 patent at issue and rejecting the Company’s invalidity defenses. The jury awarded an aggregate of approximately $45,500 which includes lost profits, reasonable royalties and price erosion damages for the period April 2005 through December 31, 2007. In addition, the jury awarded prejudgment interest which the Company estimated to be $2,600 at December 31, 2007. The Company recorded an aggregate $48,100 as a provision for litigation as of December 31, 2007. During 2008, the Company recorded a potential additional provision of approximately $17,500 for potential additional infringement damages and interest. The total provision for litigation at December 31, 2008 was $65,600. | |
On July 1, 2008, the court denied the Company’s Motions for Judgment as a Matter of Law (JMOL), Obviousness, and a New Trial. The court also denied Akamai’s Motion for Permanent Injunction as premature and its Motions for Summary Judgment regarding the Company’s equitable defenses. The court conducted a bench trial in November 2008 regarding the Company’s equitable defenses. The Company also filed a motion for reconsideration of the court’s earlier denial of the Company’s motion for JMOL. The Company’s motion for JMOL was based largely upon a clarification in the standard for a finding of joint infringement articulated by the Federal Circuit in the case of Muniauction, Inc. v. Thomson Corp., released after the court denied the Company’s initial motion for JMOL. On April 24, 2009, the court issued its order and memorandum setting aside the adverse jury verdict and ruling that the Company did not infringe Akamai’s ’703 patent and that the Company was entitled to JMOL. Based upon the court’s April 24, 2009 order, the Company reversed the $65,600 provision for litigation previously recorded for this lawsuit as the Company no longer believed that payment of any amounts represented by the litigation provision was probable. The court entered final judgment in favor of the Company on May 22, 2009, and Akamai filed its notice of appeal of the court’s decision on May 26, 2009. On December 20, 2010, the Court of Appeals for the Federal Circuit issued its opinion affirming the trial court’s entry of judgment in the Company’s favor. On February 18, 2011, Akamai filed a motion with the Court of Appeals for the Federal Circuit seeking a rehearing and rehearing en banc. On April 21, 2011, the Court of Appeals for the Federal Circuit issued an order denying the petition for rehearing, granting the petition for rehearing en banc, vacating the December 20, 2010 opinion affirming the trial court’s entry of judgment in the Company’s favor, and reinstated the appeal. | |
On August 31, 2012, the Court of Appeals for the Federal Circuit issued its opinion in the case. The Court of Appeals stated that the trial court correctly determined that the Company did not directly infringe Akamai’s ’703 patent and upheld the trial court’s decision to vacate the original jury’s damages award. The Court of Appeals also held that the Company did not infringe Akamai’s ’413 or ’645 patents. A slim majority in this three-way divided opinion also announced a revised legal theory of induced infringement, remanded the case to the trial court, and gave Akamai an opportunity for a new trial to attempt to prove that the Company induced its customers to infringe Akamai’s patent under the Court of Appeals’ new legal standard. On December 28, 2012, the Company filed a petition for writ of certiorari to the United States Supreme Court to appeal this sharply divided Court of Appeals decision and sought to stay any proceedings at the trial court until the Supreme Court rules on that petition. Akamai then filed a cross petition for consideration of the Court of Appeals standard for direct infringement followed by an opposition to the Company’s petition. On January 10, 2014, the Supreme Court granted our petition for writ of certiorari and will hear argument in our case on April 30, 2014. The Company believes that the Court of Appeal’s new induced infringement standard runs counter to the Patent Act and Supreme Court precedent, and it should be overturned by the Supreme Court. Additionally, just as the Company has successfully shown that it does not directly infringe Akamai’s patent, the Company firmly believes that it will ultimately be successful in showing that it does not infringe Akamai’s patent under the Court of Appeals majority’s new induced infringement theory, and does not believe a loss is probable; therefore, no provision for this lawsuit is recorded in the consolidated financial statements. | |
In light of the status of the litigation, the Company believes that there is a reasonable possibility that it has incurred a loss related to the Akamai litigation. While the Company believes that there is a reasonable possibility that a loss has been incurred, the Company is not able to estimate a range of the loss due to the complexity and procedural status of the case. The Company will continue to vigorously defend against the allegation. | |
Legal and other expenses associated with this case have been significant. The Company includes these litigation expenses in general and administrative expenses as incurred, as reported in the consolidated statement of operations. | |
Other Litigation | |
The Company is subject to various other legal proceedings and claims, either asserted or unasserted, arising in the ordinary course of business. While the outcome of these claims cannot be predicted with certainty, management does not believe the outcome of any of these matters will have a material adverse effect on the Company’s business, financial position, results of operations, or cash flows. Litigation relating to the content delivery services industry is not uncommon, and the Company is, and from time to time has been, subject to such litigation. No assurances can be given with respect to the extent or outcome of any such litigation in the future. | |
Other Matters | |
The Company is subject to indirect taxation in various states and foreign jurisdictions. Laws and regulations that apply to communications and commerce conducted over the Internet are becoming more prevalent, both in the United States and internationally, and may impose additional burdens on the Company conducting business online or providing Internet-related services. Increased regulation could negatively affect the Company’s business directly, as well as the businesses of its customers, which could reduce their demand for the Company’s services. For example, tax authorities in various states and abroad may impose taxes on the Internet-related revenue the Company generates based on regulations currently being applied to similar but not directly comparable industries. | |
There are many transactions and calculations where the ultimate tax determination is uncertain. In addition, domestic and international taxation laws are subject to change. In the future, the Company may come under audit, which could result in changes to its tax estimates. The Company believes it maintains adequate tax reserves to offset potential liabilities that may arise upon audit. Although the Company believes its tax estimates and associated reserves are reasonable, the final determination of tax audits and any related litigation could be materially different than the amounts established for tax contingencies. To the extent these estimates ultimately prove to be inaccurate, the associated reserves would be adjusted, resulting in the recording of a benefit or expense in the period in which a change in estimate or a final determination is made. |
Net_Loss_per_Share
Net Loss per Share | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
Net Loss per Share | ' | |||||||||||
Net Loss per Share | ||||||||||||
The Company calculates basic and diluted earnings per weighted average share based on net income (loss). The Company uses the weighted-average number of shares of common stock outstanding during the period for the computation of basic earnings per share. Diluted earnings per share include the dilutive effect of convertible stock options and restricted stock units in the weighted-average number of shares of common stock outstanding. Net income (loss) from continuing operations is utilized in determining whether potential shares of common stock are dilutive or anti-dilutive for purposes of computing diluted net income (loss) per share. | ||||||||||||
The following table sets forth the components used in the computation of basic and diluted net loss per share for the periods indicated (in thousands, except per share data): | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Net loss from continuing operations | $ | (34,976 | ) | $ | (30,035 | ) | $ | (30,066 | ) | |||
Net (loss) income from discontinued operations | (426 | ) | (2,861 | ) | 4,778 | |||||||
Net loss available to common stockholders | $ | (35,402 | ) | $ | (32,896 | ) | $ | (25,288 | ) | |||
Basic weighted average outstanding shares of common stock | 96,851 | 101,283 | 109,236 | |||||||||
Basic weighted average outstanding shares of common stock | 96,851 | 101,283 | 109,236 | |||||||||
Dilutive effect of stock options and restricted stock units | — | — | — | |||||||||
Diluted weighted average outstanding shares of common stock | 96,851 | 101,283 | 109,236 | |||||||||
Basic and diluted income (loss) per share: | ||||||||||||
Continuing operations | $ | (0.36 | ) | $ | (0.30 | ) | $ | (0.28 | ) | |||
Discontinued operations | (0.01 | ) | (0.02 | ) | 0.05 | |||||||
Basic and diluted net loss per share | $ | (0.37 | ) | $ | (0.32 | ) | $ | (0.23 | ) | |||
For the years ended December 31, 2013, 2012 and 2011, outstanding options and restricted stock units of approximately 1,986, 2,273 and 4,427, respectively, were excluded from the computation of diluted net loss per share because including them would have been anti-dilutive. |
Stockholders_Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2013 | |
Stockholders' Equity Note [Abstract] | ' |
Stockholders' Equity | ' |
Stockholders’ Equity | |
Common Stock | |
The Company has had a share repurchase program since September 2011. The Company has repurchased shares of common stock from time to time through May 9, 2013. Through December 31, 2013, the Company has used a total of $50,736, including commissions and expenses, to repurchase 19,990,423 shares at an average cost per share of $2.55. All repurchased shares were cancelled and returned to authorized but unissued status. | |
In June 2013, the Company’s stockholders approved the Company’s 2013 Employee Stock Purchase Plan (ESPP). The ESPP allows participants to purchase the Company’s common stock at a 15% discount of the lower of the beginning or end of the offering period using the closing price on that day. During the year ended December 31, 2013, the Company issued 135,271 shares under the ESPP. Total cash proceeds from the purchase of shares under the ESPP were approximately $225. As of December 31, 2013, shares reserved for issuance to employees under this plan totaled 4,000,000 and the Company held employee contributions of approximately $26 for future purchases under the ESPP. The ESPP is considered compensatory. The Company recorded compensation expense of $57 during the year ended December 31, 2013 related to the ESPP. | |
During the year ended December 31, 2013, the Company issued 10,915 shares of its common stock in connection with the achievement of contingent consideration goals related to a previous acquisition. | |
The Company has reserved approximately 5,162,930 unissued shares of common stock for future options and restricted stock units under the incentive compensation plan. | |
Preferred Stock | |
The board of directors has authorized the issuance of up to 7,500,000 shares of preferred stock at December 31, 2013. The preferred stock may be issued in one or more series pursuant to a resolution or resolutions providing for such issuance duly adopted by the board of directors. As of December 31, 2013, the Board had not adopted any resolutions for the issuance of preferred stock. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Equity [Abstract] | ' | |||||||||||
Accumulated Other Comprehensive Loss | ' | |||||||||||
Accumulated Other Comprehensive Loss | ||||||||||||
Changes in the components of accumulated other comprehensive loss, net of tax, for the years ended December 31, 2013 and 2012 was as follows: | ||||||||||||
Unrealized | ||||||||||||
Gains (Losses) on | ||||||||||||
Foreign | Available for | |||||||||||
Currency | Sale Securities | Total | ||||||||||
Balance, December 31, 2012 | $ | (747 | ) | $ | 38 | $ | (709 | ) | ||||
Other comprehensive loss before reclassifications | (941 | ) | (13 | ) | (954 | ) | ||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | — | — | |||||||||
Net current period other comprehensive loss | (941 | ) | (13 | ) | (954 | ) | ||||||
Balance, December 31, 2013 | $ | (1,688 | ) | $ | 25 | $ | (1,663 | ) | ||||
Unrealized | ||||||||||||
Gains (Losses) on | ||||||||||||
Foreign | Available for | |||||||||||
Currency | Sale Securities | Total | ||||||||||
Balance, December 31, 2011 | $ | (575 | ) | $ | 66 | $ | (509 | ) | ||||
Other comprehensive loss before reclassifications | (172 | ) | (28 | ) | (200 | ) | ||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | — | — | |||||||||
Net current period other comprehensive loss | (172 | ) | (28 | ) | (200 | ) | ||||||
Balance, December 31, 2012 | $ | (747 | ) | $ | 38 | $ | (709 | ) | ||||
ShareBased_Compensation
Share-Based Compensation | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | ' | ||||||||||||||||
Share-Based Compensation | ' | ||||||||||||||||
Share-Based Compensation | |||||||||||||||||
Incentive Compensation Plans | |||||||||||||||||
The Company maintains Incentive Compensation Plans (the Plans) to attract, motivate, retain, and reward high quality executives and other employees, officers, directors, and consultants by enabling such persons to acquire or increase a proprietary interest in the Company. The Plans are intended to be qualified plans under the Internal Revenue Code. | |||||||||||||||||
The Plans allow the Company to award stock option grants and restricted stock units (RSUs) to employees, directors and consultants of the Company. During 2013, the Company granted awards to employees and directors. The exercise price of incentive stock options granted under the Plan may not be granted at less than 100% of the fair market value of the Company’s common stock on the date of the grant. | |||||||||||||||||
Data pertaining to stock option activity under the Plans are as follows: | |||||||||||||||||
Number of | Weighted | ||||||||||||||||
Shares | Average | ||||||||||||||||
Exercise | |||||||||||||||||
Price | |||||||||||||||||
(In thousands) | |||||||||||||||||
Balance at December 31, 2010 | 12,008 | $ | 4.94 | ||||||||||||||
Granted | 4,675 | 5.68 | |||||||||||||||
Exercised | (262 | ) | 2.3 | ||||||||||||||
Cancelled | (3,073 | ) | 5.04 | ||||||||||||||
Balance at December 31, 2011 | 13,348 | 5.23 | |||||||||||||||
Granted | 2,972 | 2.4 | |||||||||||||||
Exercised | (176 | ) | 1.08 | ||||||||||||||
Cancelled | (1,834 | ) | 6.1 | ||||||||||||||
Balance at December 31, 2012 | 14,310 | 4.58 | |||||||||||||||
Granted | 4,902 | 2.19 | |||||||||||||||
Exercised | (143 | ) | 0.26 | ||||||||||||||
Cancelled | (3,087 | ) | 3.87 | ||||||||||||||
Balance at December 31, 2013 | 15,982 | 4 | |||||||||||||||
The following table summarizes the information about stock options outstanding and exercisable at December 31, 2013: | |||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||
Exercise Price | Number of | Weighted | Weighted | Number of | Weighted | ||||||||||||
Options | Average | Average | Options | Average | |||||||||||||
Outstanding | Remaining | Exercise | Exercisable | Exercise | |||||||||||||
Contractual | Price | Price | |||||||||||||||
Life (Years) | |||||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||
$ 0.00 — $ 1.50 | 569 | 2.2 | $ | 0.36 | 569 | $ | 0.36 | ||||||||||
$ 1.51 — $ 3.00 | 6,661 | 8.4 | 2.17 | 1,606 | 2.11 | ||||||||||||
$ 3.01 — $ 4.50 | 3,640 | 5.4 | 3.77 | 3,269 | 3.76 | ||||||||||||
$ 4.51 — $ 6.00 | 2,070 | 5.9 | 5.18 | 1,700 | 5.13 | ||||||||||||
$ 6.01 — $ 7.50 | 1,759 | 3.4 | 6.46 | 1,685 | 6.46 | ||||||||||||
$ 7.51 — $ 15.00 | 1,283 | 3.9 | 10.56 | 1,155 | 10.83 | ||||||||||||
15,982 | 9,984 | ||||||||||||||||
The weighted-average grant-date fair value of options granted during the years ended December 31, 2013, 2012, and 2011 on a per-share basis was approximately $1.48, $1.60, and $3.70, respectively. The total intrinsic value of the options exercised during the years ended December 31, 2013, 2012, and 2011 was approximately $265, $309, and $801, respectively. The aggregate intrinsic value of options outstanding at December 31, 2013 is approximately $1,113. The weighted average remaining contractual term of options currently exercisable at December 31, 2013 was 4.8 years. | |||||||||||||||||
The Company measures all employee share-based payment awards using a fair-value method. The grant date fair value is determined using the Black-Scholes-Merton pricing model. The Black-Scholes-Merton valuation calculation requires the Company to make key assumptions such as future stock price volatility, expected terms, risk-free rates, and dividend yield. The Company’s expected volatility is derived from its own volatility rate as a publicly traded company and historical volatilities of similar public companies within the Internet services and network industry. Each company’s historical volatility is weighted based on certain qualitative factors and combined to produce a single volatility factor used by the Company. For most of 2013, the Company did not have enough historical experience as a public company to provide a reasonable estimate of the expected term; therefore, expected term was calculated using the “short-cut” method, which takes into consideration the grant’s contractual life and the vesting periods. As of December 31, 2013, the Company's expected term is based on its historical experience. The risk-free interest factor is based on the United States Treasury yield curve in effect at the time of the grant for zero coupon United States Treasury notes with maturities of approximately equal to each grant’s expected term. The Company estimates its forfeiture rate based on an analysis of its actual forfeitures and will continue to evaluate the adequacy of the forfeiture rate based on actual forfeiture experience, analysis of employee turnover behavior, and other factors. Any impact from a forfeiture rate adjustment will be recognized in full in the period of the adjustment. | |||||||||||||||||
The fair value of each new option awarded is estimated on the grant date using the assumptions noted in the following table: | |||||||||||||||||
Years Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Expected volatility | 77.96 | % | 78.1 | % | 72.25 | % | |||||||||||
Expected term, years | 6.05 | 5.88 | 6.08 | ||||||||||||||
Risk-free interest | 1.31 | % | 0.91 | % | 2.14 | % | |||||||||||
Expected dividends | — | % | — | % | — | % | |||||||||||
Unrecognized share-based compensation related to stock options totaled $8,186 at December 31, 2013. The Company expects to amortize unvested stock compensation related to stock options over a weighted average period of approximately 2.5 years at December 31, 2013. | |||||||||||||||||
During the years ended December 31, 2013, 2012, and 2011, the Company recorded share-based compensation related to stock options of approximately $6,617, $7,426, and $9,568, respectively. | |||||||||||||||||
The following table summarizes the different types of RSUs outstanding (in thousands): | |||||||||||||||||
Years Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
RSUs with service-based vesting conditions | 5,286 | 4,232 | 3,392 | ||||||||||||||
Performance-based RSUs | — | 349 | 459 | ||||||||||||||
Unvested RSUs | 5,286 | 4,581 | 3,851 | ||||||||||||||
Each RSU represents the right to receive one share of the Company’s common stock upon vesting. The fair value of these RSUs was calculated based upon the Company’s closing stock price on the date of grant. | |||||||||||||||||
Data pertaining to RSUs activity under the Plans is as follows: | |||||||||||||||||
Number of | Weighted | ||||||||||||||||
Units | Average | ||||||||||||||||
Fair Value | |||||||||||||||||
(In thousands) | |||||||||||||||||
Balance at December 31, 2010 | 2,627 | $ | 4.31 | ||||||||||||||
Granted | 2,829 | 3.32 | |||||||||||||||
Vested | (986 | ) | 4.09 | ||||||||||||||
Cancelled | (619 | ) | 4.04 | ||||||||||||||
Balance at December 31, 2011 | 3,851 | 3.66 | |||||||||||||||
Granted | 4,085 | 2.37 | |||||||||||||||
Vested | (2,450 | ) | 2.68 | ||||||||||||||
Cancelled | (905 | ) | 3.17 | ||||||||||||||
Balance at December 31, 2012 | 4,581 | 2.74 | |||||||||||||||
Granted | 4,970 | 2.15 | |||||||||||||||
Vested | (2,032 | ) | 2.53 | ||||||||||||||
Cancelled | (2,233 | ) | 2.78 | ||||||||||||||
Balance at December 31, 2013 | 5,286 | 2.24 | |||||||||||||||
The weighted-average grant-date fair value of RSUs granted during the years ended December 31, 2013, 2012, and 2011 was approximately $2.15, $2.37, and $3.32, respectively. The total intrinsic value of the units vested during the years ended December 31, 2013, 2012, and 2011 was approximately $5,117, $5,400, and $2,900, respectively. The aggregate intrinsic value of RSUs outstanding at December 31, 2013 is $10,467. | |||||||||||||||||
Share-based payment compensation related to all restricted stock awards and RSUs for the years ended December 31, 2013, 2012, and 2011 was approximately $5,671, $7,049, and $6,313, respectively. At December 31, 2013 there was approximately $8,788 of total unrecognized compensation costs related to RSUs. That cost is expected to be recognized over a weighted-average period of approximately 2.55 years as of December 31, 2013. | |||||||||||||||||
The Company applies the straight-line attribution method to recognize compensation costs associated with awards that are not subject to graded vesting. For awards that are subject to graded vesting and performance based awards, the Company recognizes compensation costs separately for each vesting tranche. The Company also estimates when and if performance-based awards will be earned. If an award is not considered probable of being earned, no amount of stock-based compensation is recognized. If the award is deemed probable of being earned, related compensation expense is recorded over the estimated service period. To the extent the Company’s estimates of awards considered probable of being earned changes, the amount of stock-based compensation recognized will also change. | |||||||||||||||||
The Company recorded share-based compensation expense related to stock options, restricted stock and RSUs during the years ended December 31, 2013, 2012, and 2011 of approximately $12,345, $14,475, and $15,881, respectively. Unrecognized share-based compensation expense totaled approximately $16,974 at December 31, 2013, which is expected to be recognized over a weighted average period of approximately 2.53 years. | |||||||||||||||||
The following table summarizes the components of share-based compensation expense included in the Company’s consolidated statement of operations for the years ended December 31, 2013, 2012, and 2011: | |||||||||||||||||
Years Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Share-based compensation expense by type of award: | |||||||||||||||||
Stock options | $ | 6,617 | $ | 7,426 | $ | 9,568 | |||||||||||
Restricted stock units | 5,671 | 7,049 | 6,313 | ||||||||||||||
Shares issued under the 2013 ESPP | 57 | — | — | ||||||||||||||
Total share-based compensation expense | $ | 12,345 | $ | 14,475 | $ | 15,881 | |||||||||||
Effect of share-based compensation expense on income by financial statement line: | |||||||||||||||||
Cost of services | $ | 1,873 | $ | 2,117 | $ | 2,419 | |||||||||||
General and administrative expense | 5,971 | 6,511 | 6,132 | ||||||||||||||
Sales and marketing expense | 2,245 | 3,104 | 3,776 | ||||||||||||||
Research and development expense | 2,256 | 2,743 | 3,554 | ||||||||||||||
Total cost related to share-based compensation expense | $ | 12,345 | $ | 14,475 | $ | 15,881 | |||||||||||
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2013 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions | ' |
Related Party Transactions | |
In July 2006, an aggregate of 39,869,960 shares of Series B Preferred Stock was issued at a purchase price of $3.26 per share to certain accredited investors in a private placement transaction. As a result of this transaction, entities affiliated with Goldman, Sachs & Co., one of the lead underwriters of the Company’s initial public offering (IPO), became holders of more than 10% of the Company’s common stock. On June 14, 2007, upon the closing of the Company’s IPO, all outstanding shares of the Company’s Series B Preferred Stock automatically converted into shares of common stock on a 1-for-1 share basis. As of December 31, 2013, 2012, and 2011, Goldman, Sachs & Co. owned approximately 31%, 31%, and 29%, respectively, of the Company’s outstanding common stock. | |
The Company leased office space to an entity in which current members of its board of directors have an ownership interest. During the years ended December 31, 2012 and 2011, the Company invoiced and collected approximately $16 and $71, respectively, in office space rental from this entity. | |
The Company sells services to entities owned, in whole or in part, by certain of the Company’s executive officers and directors. Revenue derived from related parties was approximately 1% for the years ended December 31, 2013, 2012, and 2011 respectively. Total outstanding accounts receivable from all related parties as of December 31, 2013, 2012 and 2011 was approximately $7, $1,300 and $400, respectively. | |
During 2013, the Company entered into an agreement for services with an entity in which a current member of its board of directors is an officer. During 2013, the Company incurred approximately $154 in expense for services rendered. |
Leases_and_Commitments
Leases and Commitments | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Leases and Commitments [Abstract] | ' | |||
Leases and Commitments | ' | |||
Leases and Commitments | ||||
Operating Leases | ||||
The Company is committed to various non-cancellable operating leases for office space and office equipment which expire through 2022. Certain leases contain provisions for renewal options and rent escalations upon expiration of the initial lease terms. Approximate future minimum lease payments over the remaining lease periods as of December 31, 2013 are as follows: | ||||
2014 | $ | 3,887 | ||
2015 | 3,242 | |||
2016 | 2,621 | |||
2017 | 2,213 | |||
2018 and thereafter | 3,387 | |||
Total minimum payments | $ | 15,350 | ||
Purchase Commitments | ||||
The Company has long-term commitments for bandwidth usage and co-location with various networks and ISPs. The following summarizes minimum commitments as of December 31, 2013: | ||||
2014 | $ | 32,728 | ||
2015 | 18,674 | |||
2016 | 4,831 | |||
2017 | 873 | |||
2018 and thereafter | 382 | |||
Total minimum payments | $ | 57,488 | ||
Rent and operating expense relating to these operating lease agreements and bandwidth and co-location agreements was approximately $61,693, $58,818, and $60,140, respectively, for the years ended December 31, 2013, 2012, and 2011. | ||||
Capital Leases | ||||
The Company leases equipment under capital lease agreements which extend through 2016. As of December 31, 2013 and 2012, the outstanding balance for capital leases was approximately $824 and $2,125, respectively. The Company recorded assets under capital lease obligations of approximately $2,312 and $5,100, respectively, as of December 31, 2013 and 2012. Related accumulated amortization totaled approximately $1,878 and $2,900, respectively as of December 31, 2013 and 2012. The assets acquired under capital leases and related accumulated amortization is included in property and equipment, net in the consolidated balance sheets. The related amortization is included in depreciation and amortization expense in the Consolidated Statements of Operations. The average interest rate on the Company’s outstanding capital leases at December 31, 2013 was approximately six percent. Interest expense related to capital leases was approximately $76, $170, and $186, respectively, for the years ended December 31, 2013, 2012, and 2011. | ||||
Future minimum capital lease payments at December 31, 2013 were as follows (in thousands): | ||||
2014 | $ | 498 | ||
2015 | 238 | |||
2016 | 133 | |||
2017 | 5 | |||
2018 and thereafter | — | |||
Total | 874 | |||
Amounts representing interest | (50 | ) | ||
Present value of minimum lease payments | $ | 824 | ||
Concentrations
Concentrations | 12 Months Ended |
Dec. 31, 2013 | |
Concentrations [Abstract] | ' |
Concentrations | ' |
Concentrations | |
For each of the years ended December 31, 2013, 2012, and 2011, Netflix, Inc. represented approximately 11% of the Company’s total revenue. | |
Revenue from sources outside America totaled approximately $55,020, $54,636, and $51,427, respectively, for the years ended December 31, 2013, 2012, and 2011. | |
During the years ended December 31, 2013 and 2011, the Company had no single country outside of the United States that accounted for 10% or more of the Company's total revenues. During the year ended December 31, 2012, the Company had two countries, Japan and the United States, which accounted for 10% or more of the Company’s total revenues. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||||||||||
Income taxes | ' | ||||||||||||||||||||
Income Taxes | |||||||||||||||||||||
The Company's loss from continuing operations before income taxes consists of the following (in thousands): | |||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
(Loss) income before income taxes: | |||||||||||||||||||||
United States | $ | (34,789 | ) | $ | (29,991 | ) | $ | (30,438 | ) | ||||||||||||
Foreign | 200 | 437 | (1,866 | ) | |||||||||||||||||
$ | (34,589 | ) | $ | (29,554 | ) | $ | (32,304 | ) | |||||||||||||
The components of the provision (benefit) for income taxes are as follows (in thousands): | |||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Current: | |||||||||||||||||||||
Federal | $ | — | $ | — | $ | — | |||||||||||||||
State | 80 | (20 | ) | 198 | |||||||||||||||||
Foreign | 442 | 558 | 550 | ||||||||||||||||||
Total current | 522 | 538 | 748 | ||||||||||||||||||
Deferred: | |||||||||||||||||||||
Federal | 16 | 16 | (2,571 | ) | |||||||||||||||||
State | — | — | — | ||||||||||||||||||
Foreign | (151 | ) | (73 | ) | (415 | ) | |||||||||||||||
Total deferred | (135 | ) | (57 | ) | (2,986 | ) | |||||||||||||||
Total (benefit) provision | $ | 387 | $ | 481 | $ | (2,238 | ) | ||||||||||||||
A reconciliation of the U.S. federal statutory rate to the Company’s effective income tax rate is shown in the table below (in thousands, except percent): | |||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Amount | Percent | Amount | Percent | Amount | Percent | ||||||||||||||||
U.S. federal statutory tax rate | $ | (12,106 | ) | 35 | % | $ | (10,344 | ) | 35 | % | $ | (11,306 | ) | 35 | % | ||||||
Impact related to sale of discontinued operations | — | — | % | — | — | % | 7,893 | (24 | )% | ||||||||||||
Valuation allowance | 12,958 | (37 | )% | 10,329 | (35 | )% | 52 | — | % | ||||||||||||
Foreign income taxes | 221 | (1 | )% | 351 | (1 | )% | 797 | (3 | )% | ||||||||||||
State income taxes | 80 | — | % | (20 | ) | — | % | 198 | (1 | )% | |||||||||||
Non-deductible expenses | (783 | ) | 2 | % | 168 | (1 | )% | 136 | — | % | |||||||||||
Uncertain tax positions | 14 | — | % | (18 | ) | — | % | (9 | ) | — | % | ||||||||||
Share-based compensation | — | — | % | — | — | % | — | — | % | ||||||||||||
Other | 3 | — | % | 15 | — | % | 1 | — | % | ||||||||||||
Provision for (benefit from) income taxes | $ | 387 | (1 | )% | $ | 481 | (2 | )% | $ | (2,238 | ) | 7 | % | ||||||||
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purpose. Significant components of the Company’s deferred tax assets and liabilities are as follows (in thousands): | |||||||||||||||||||||
December 31, | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Deferred tax assets: | |||||||||||||||||||||
Share-based compensation | $ | 12,797 | $ | 12,506 | |||||||||||||||||
Net operating loss and tax credit carry-forwards | 26,991 | 27,484 | |||||||||||||||||||
Deferred revenue | 2,808 | 3,984 | |||||||||||||||||||
Accounts receivable reserves | 537 | 1,281 | |||||||||||||||||||
Fixed assets | 5,751 | 4,904 | |||||||||||||||||||
Other | 1,209 | 921 | |||||||||||||||||||
Total deferred tax assets | 50,093 | 51,080 | |||||||||||||||||||
Deferred tax liabilities: | |||||||||||||||||||||
Intangible assets | (738 | ) | (2,103 | ) | |||||||||||||||||
Prepaid expenses | (164 | ) | (187 | ) | |||||||||||||||||
Other | (65 | ) | (160 | ) | |||||||||||||||||
Total deferred tax liabilities | (967 | ) | (2,450 | ) | |||||||||||||||||
Valuation allowance | (48,047 | ) | (46,215 | ) | |||||||||||||||||
Net deferred tax assets (liabilities) | $ | 1,079 | $ | 2,415 | |||||||||||||||||
In addition to the deferred tax assets listed in the table above, the Company has unrecorded tax benefits of $10,350 and $10,000 at December 31, 2013 and December 31, 2012, respectively, primarily attributable to the difference between the amount of the financial statement expense and the allowable tax deduction associated with employee stock options and restricted stock units, which, if subsequently realized will be recorded to contributed capital. As a result of net operating loss carryforwards, the Company was not able to recognize the excess tax benefits of stock option deductions because the deductions did not reduce income tax payable. Although not recognized for financial reporting purposes, this unrecorded tax benefit is available to reduce future income and is incorporated into the disclosed amounts of the Company’s federal and state NOL carryforwards, discussed below. | |||||||||||||||||||||
The federal and state net operating loss carryforwards relate to prior years’ NOLs, which may be used to reduce tax liabilities in future years. At December 31, 2013, the Company had $79,300 federal and $59,200 state net operating loss carryforwards, including the NOLs discussed in the preceding paragraph. The Company’s federal net operating losses will begin to expire in 2019 and the state net operating loss carryforwards will begin to expire in 2014. Pursuant to Sections 382 and 383 of the Internal Revenue Code, the utilization of NOLs and other tax attributes may be subject to substantial limitations if certain ownership changes occur during a three-year testing period (as defined by the Internal Revenue Code). At December 31, 2013 the Company had state tax credit carryforwards of $340, which will expire at various dates beginning in 2014. At December 31, 2013 the Company had federal tax credit carryforwards of $300, which will expire at various dates beginning in 2026. | |||||||||||||||||||||
The Company reduces the carrying amounts of deferred tax assets by a valuation allowance, if based on the evidence available, it is more-likely-than-not that such assets will not be realized. In making the assessment under the more-likely-than-not standard, appropriate consideration must be given to all positive and negative evidence related to the realization of the deferred tax assets. This assessment considers, among other matters, the nature, frequency and severity of current and cumulative losses, forecasts of future profitability, the duration of statutory carry-forward periods by jurisdiction, unitary versus stand-alone state tax filings, the Company’s experience with loss carryforwards not expiring unutilized, and all tax planning alternatives that may be available. | |||||||||||||||||||||
A valuation allowance has been recorded against the Company’s deferred tax assets, with the exception of deferred tax assets at certain foreign subsidiaries as management cannot conclude that it is more-likely-than-not that these assets will be realized. As of December 31, 2012, no valuation allowance was provided on $1,600 of deferred tax assets associated with certain net operating losses because it was believed that they will be used to offset the Company’s liabilities relating to its uncertain tax positions. 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 (Topic 740). ASU 2013-11 requires that unrecognized tax benefits be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except in certain circumstances. When those circumstances exist, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The company has analyzed the guidance under ASU 2013-11 and determined that due to the Company’s NOL position, the unrecognized tax benefits of $1,600 associated with certain net operating losses should be presented in the December 31, 2013 financial statements as a reduction to the deferred tax assets for the net operating loss carryforward. | |||||||||||||||||||||
The Company has certain taxable temporary differences related to intangible assets that cannot be offset by existing deductible temporary differences resulting in a deferred tax liability of approximately $250 and $400 as of December 31, 2013 and 2012, respectively. | |||||||||||||||||||||
A summary of the activities associated with the Company’s reserve for unrecognized tax benefits, interest and penalties follow (in thousands): | |||||||||||||||||||||
Unrecognized | |||||||||||||||||||||
Tax Benefits | |||||||||||||||||||||
Balance at January 1, 2012 | $ | 39 | |||||||||||||||||||
Additions for tax positions related to current year | 1,718 | ||||||||||||||||||||
Settlements | — | ||||||||||||||||||||
Reduction for tax positions of prior years | — | ||||||||||||||||||||
Balance at December 31, 2012 | 1,757 | ||||||||||||||||||||
Additions for tax positions related to current year | — | ||||||||||||||||||||
Settlements | — | ||||||||||||||||||||
Reduction for tax positions of prior years | — | ||||||||||||||||||||
Balance at December 31, 2013 | $ | 1,757 | |||||||||||||||||||
The Company recognizes interest and penalties related to unrecognized tax benefits in its tax provision. As of December 31, 2013, the Company had an interest and penalties accrual related to unrecognized tax benefits of $94, which decreased during 2013 by $14. The Company anticipates its unrecognized tax benefits may increase or decrease within twelve months of the reporting date, as audits or reviews are initiated or settled and as a result of settled potential tax liabilities in certain foreign jurisdictions. It is not currently reasonably possible to estimate the range of change. | |||||||||||||||||||||
The Company files income tax returns in jurisdictions with varying statues of limitations. Tax years 2009 through 2012 generally remain subject to examination by federal and most state tax authorities. As of December 31, 2013, the Company is not under any federal or state examinations. | |||||||||||||||||||||
Income taxes have not been provided on a portion of the undistributed earnings of the Company’s foreign subsidiaries over which the Company had sufficient influence to control the distribution of such earnings and had determined that substantially all of such earnings were reinvested indefinitely. The undistributed earnings of the Company’s foreign subsidiaries were approximately $1,600 at December 31, 2013. These earnings could become subject to either or both federal income tax and foreign withholding tax if they are remitted as dividends, if foreign earnings are loaned to any of the Company’s domestic subsidiaries, or if the Company sells its investment in such subsidiaries. |
401k_Plan
401(k) Plan | 12 Months Ended |
Dec. 31, 2013 | |
General Discussion of Pension and Other Postretirement Benefits [Abstract] | ' |
401(k) Plan | ' |
401(k) Plan | |
The Company manages the Limelight Networks 401(k) Plan covering effectively all employees of the Company. The plan is a 401(k) profit sharing plan in which participating employees are fully vested in any contributions they make. | |
The Company will match employee deferrals as follows: a dollar-for-dollar match on eligible employee’s deferral that does not exceed 3% of compensation for the year and a 50% match on the next 2% of the employee deferrals. Company employees may elect to reduce their current compensation up to the statutory limit. The Company made matching contributions of approximately $1,196, $1,101, and $918 during the years ended December 31, 2013, 2012, and 2011, respectively. |
Segment_Reporting
Segment Reporting | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||
Segment Reporting | ' | |||||||||||
Segment Reporting | ||||||||||||
The Company operates in one industry segment — content delivery and related services. The Company operates in three geographic areas — Americas, Europe, Middle East and Africa (EMEA) and Asia Pacific. | ||||||||||||
Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision 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 financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance. The Company has one business activity and there are no segment managers who are held accountable for operations, operating results and plans for products or components below the consolidated unit level. Accordingly, the Company reports as a single operating segment. | ||||||||||||
Revenue by geography is based on the location of the customer from which the revenue is earned. The following table sets forth revenue and long-lived assets by geographic area: | ||||||||||||
Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Revenue | ||||||||||||
Americas | $ | 118,413 | $ | 125,600 | $ | 119,865 | ||||||
EMEA | 31,401 | 30,898 | 31,697 | |||||||||
Asia Pacific | 23,619 | 23,738 | 19,730 | |||||||||
Total revenue | $ | 173,433 | $ | 180,236 | $ | 171,292 | ||||||
For the year ended December 31, 2013, the Company made reclassifications to certain customers within our geographic regions. This was primarily the result of customers relocating from one geographic region to another geographic region. For all periods presented, customers are reported in their new geographic region. The impact of the customer reclassifications from previously reported amounts were as follows. For the year ended December 31, 2012, Americas increased $1,734, EMEA increased $4,422, and Asia Pacific decreased $6,156. For the year ended December 31, 2011, Americas increased $567, EMEA increased $5,729, and Asia Pacific decreased $6,296. | ||||||||||||
The following table sets forth long-lived assets by geographic area: | ||||||||||||
Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Long-lived Assets | ||||||||||||
Americas | $ | 26,502 | $ | 36,513 | $ | 51,478 | ||||||
International | 8,757 | 11,125 | 14,097 | |||||||||
Total long-lived assets | $ | 35,259 | $ | 47,638 | $ | 65,575 | ||||||
Approximately $1,195 and $1,647, respectively, of long-lived assets at December 31, 2012 and 2011, has been reclassified to Americas from International. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ' | |||||||||||||||
Fair Value Measurements | ' | |||||||||||||||
Fair Value Measurements | ||||||||||||||||
The Company evaluates certain of its financial instruments within the three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: | ||||||||||||||||
Level 1 | — | defined as observable inputs such as quoted prices in active markets; | ||||||||||||||
Level 2 | — | defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and | ||||||||||||||
Level 3 | — | defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. | ||||||||||||||
As of December 31, 2013 and 2012, the Company held certain assets and liabilities that were required to be measured at fair value on a recurring basis. These include money market funds, commercial paper, corporate notes and bonds, U.S. government agency bonds, and publicly traded stocks, which are classified as either cash and cash equivalents or marketable securities. | ||||||||||||||||
The Company’s financial assets are valued using market prices on both active markets (level 1) and less active markets (level 2). Level 1 instrument valuations are obtained from real-time quotes for transactions in active exchange markets involving identical assets. Level 2 instrument valuations are obtained from readily available pricing sources for comparable instruments or identical instruments in less active markets. Level 3 inputs are valued using models that take into account the terms of the arrangement as well as multiple inputs where applicable, such as estimated units sold and other customer utilization metrics. | ||||||||||||||||
The following is a summary of fair value measurements at December 31, 2013: | ||||||||||||||||
Fair Value Measurements at Reporting Date Using | ||||||||||||||||
Description | Total | Quoted Prices In Active Markets for Identical Assets | Significant | Significant | ||||||||||||
(Level 1) | Other | Unobservable | ||||||||||||||
Observable | Inputs | |||||||||||||||
Inputs | (Level 3) | |||||||||||||||
(Level 2) | ||||||||||||||||
Assets: | ||||||||||||||||
Government agency bonds (1) | $ | 261 | $ | — | $ | 261 | $ | — | ||||||||
Money market funds (2) | 9,740 | 9,740 | — | — | ||||||||||||
Corporate notes and bonds (1) | 26,009 | — | 26,009 | — | ||||||||||||
Commercial paper (1) | 2,200 | — | 2,200 | — | ||||||||||||
Certificate of deposit (1) | 4,076 | — | 4,076 | — | ||||||||||||
Publicly traded common stock (1) | 6 | 6 | — | — | ||||||||||||
Total assets measured at fair value | $ | 42,292 | $ | 9,746 | $ | 32,546 | $ | — | ||||||||
____________ | ||||||||||||||||
-1 | Classified in marketable securities | |||||||||||||||
-2 | Classified in cash and cash equivalents | |||||||||||||||
For the year ended December 31, 2013, unrealized gains and losses for marketable securities are included in other comprehensive income and expense. For the year ended December 31, 2013, the Company had net unrealized losses of approximately $13. | ||||||||||||||||
The following is a summary of fair value measurements at December 31, 2012: | ||||||||||||||||
Fair Value Measurements at Reporting Date Using | ||||||||||||||||
Description | Total | Quoted Prices In Active Markets for Identical Assets | Significant | Significant | ||||||||||||
(Level 1) | Other | Unobservable | ||||||||||||||
Observable | Inputs | |||||||||||||||
Inputs | (Level 3) | |||||||||||||||
(Level 2) | ||||||||||||||||
Assets: | ||||||||||||||||
Government agency bonds (1) | $ | 6,270 | $ | — | $ | 6,270 | $ | — | ||||||||
Money market funds (2) | 14,697 | 14,697 | — | — | ||||||||||||
Corporate notes and bonds (1) | 9,529 | — | 9,529 | — | ||||||||||||
Commercial paper (1) | 500 | — | 500 | — | ||||||||||||
Certificate of deposit (1) | 2,741 | — | 2,741 | — | ||||||||||||
Publicly traded common stock (1) | 18 | 18 | — | — | ||||||||||||
Total assets measured at fair value | $ | 33,755 | $ | 14,715 | $ | 19,040 | $ | — | ||||||||
____________ | ||||||||||||||||
-1 | Classified in marketable securities | |||||||||||||||
-2 | Classified in cash and cash equivalents | |||||||||||||||
For the year ended December 31, 2012, unrealized gains and losses for marketable securities are included in other comprehensive income and expense. For the year ended December 31, 2012, the Company had net unrealized losses of approximately $28. | ||||||||||||||||
The carrying amount of cash equivalents approximates fair value because their maturity is less than three months. The carrying amount of short-term and long-term marketable securities approximates fair value as the securities are marked to market as of each balance sheet date with any unrealized gains and losses reported in stockholders’ equity. The carrying amount of accounts receivable, accounts payable and accrued liabilities approximates fair value due to the short-term maturity of the amounts. |
Quarterly_Financial_Results_un
Quarterly Financial Results (unaudited) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Quarterly Financial Data [Abstract] | ' | |||||||||||||||
Quarterly Financial Results (unaudited) | ' | |||||||||||||||
Quarterly Financial Results (unaudited) | ||||||||||||||||
The following table sets forth certain unaudited quarterly results of operations of the Company for the years ended December 31, 2013 and 2012. The information for the March 31, June 30 and September 30, 2013 quarters and each of the quarters in the year ended December 31, 2012 have been revised to reclassify certain amounts to cost of revenues, research and development and sales and marketing expenses. These costs were previously reported in general and administrative expenses. | ||||||||||||||||
In the opinion of management, this information has been prepared on the same basis as the audited consolidated financial statements and all necessary adjustments, consisting only of normal recurring adjustments, have been included in the amounts below for a fair statement of the quarterly information when read in conjunction with the audited consolidated financial statements and related notes included elsewhere in this annual report on Form 10-K (in thousands, except per share data): | ||||||||||||||||
For the Three Months Ended | ||||||||||||||||
March 31, | June 30, | Sept. 30, | Dec. 31, | |||||||||||||
2013 | 2013 | 2013 | 2013 (a) | |||||||||||||
Revenues | $ | 45,813 | $ | 42,763 | $ | 42,656 | $ | 42,200 | ||||||||
Gross profit (c) | $ | 16,777 | $ | 14,417 | $ | 15,240 | $ | 15,275 | ||||||||
Net loss from continuing operations | $ | (8,136 | ) | $ | (11,233 | ) | $ | (10,903 | ) | $ | (4,704 | ) | ||||
Net loss from discontinued operations | $ | — | $ | — | $ | (15 | ) | $ | (411 | ) | ||||||
Net loss | $ | (8,136 | ) | $ | (11,233 | ) | $ | (10,918 | ) | $ | (5,115 | ) | ||||
Basic and diluted net loss per share from continuing | $ | (0.08 | ) | $ | (0.12 | ) | $ | (0.11 | ) | $ | (0.05 | ) | ||||
operations | ||||||||||||||||
Basic and diluted net loss per share from discontinued | $ | — | $ | — | $ | — | $ | — | ||||||||
operations | ||||||||||||||||
Basic and diluted net loss per share | $ | (0.08 | ) | $ | (0.12 | ) | $ | (0.11 | ) | $ | (0.05 | ) | ||||
Basic and diluted weighted average common shares | 96,818 | 96,257 | 96,949 | 97,380 | ||||||||||||
outstanding | ||||||||||||||||
(a) See discussion of sale of Clickability in Note 4. | ||||||||||||||||
For the Three Months Ended | ||||||||||||||||
March 31, | June 30, | Sept. 30, | Dec. 31, | |||||||||||||
2012 | 2012 | 2012 (b) | 2012 | |||||||||||||
Revenues | $ | 44,316 | $ | 44,447 | $ | 45,001 | $ | 46,471 | ||||||||
Gross profit (c) | $ | 16,596 | $ | 16,517 | $ | 16,309 | $ | 17,596 | ||||||||
Net loss from continuing operations | $ | (9,697 | ) | $ | (9,437 | ) | $ | (610 | ) | $ | (10,291 | ) | ||||
Net (loss) income from discontinued operations | $ | (309 | ) | $ | (391 | ) | $ | (218 | ) | $ | (1,943 | ) | ||||
Net (loss) income | $ | (10,006 | ) | $ | (9,828 | ) | $ | (828 | ) | $ | (12,234 | ) | ||||
Basic and diluted net loss per share from continuing operations | $ | (0.09 | ) | $ | (0.10 | ) | $ | (0.01 | ) | $ | (0.10 | ) | ||||
Basic and diluted net (loss) income per share from discontinued operations | $ | (0.01 | ) | $ | — | $ | — | $ | (0.02 | ) | ||||||
Basic and diluted net (loss) income per share | $ | (0.10 | ) | $ | (0.10 | ) | $ | (0.01 | ) | $ | (0.12 | ) | ||||
Basic and diluted weighted average common shares outstanding | 104,226 | 102,783 | 99,359 | 98,765 | ||||||||||||
(b) See discussion of sale of cost basis investment in Gaikai in Note 7. | ||||||||||||||||
(c) The table below reflects reclassifications made to gross profit for the applicable periods (See Note 2): | ||||||||||||||||
Gross Profit | ||||||||||||||||
As | As | |||||||||||||||
Three Months Ended | Reported | Reclassifications | Revised | |||||||||||||
March 31, 2013 | $ | 17,081 | $ | (304 | ) | $ | 16,777 | |||||||||
June 30, 2013 | $ | 14,773 | $ | (356 | ) | $ | 14,417 | |||||||||
September 30, 2013 | $ | 15,605 | $ | (365 | ) | $ | 15,240 | |||||||||
December 31, 2013 | $ | 15,275 | $ | — | $ | 15,275 | ||||||||||
March 31, 2012 | $ | 16,986 | $ | (390 | ) | $ | 16,596 | |||||||||
June 30, 2012 | $ | 16,884 | $ | (367 | ) | $ | 16,517 | |||||||||
September 30, 2012 | $ | 16,718 | $ | (409 | ) | $ | 16,309 | |||||||||
December 31, 2012 | $ | 17,933 | $ | (337 | ) | $ | 17,596 | |||||||||
Schedule_II_Valuation_and_Qual
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | ' | ||||||||||||||||
Schedule II - Valuation and Qualifying Accounts | ' | ||||||||||||||||
SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS | |||||||||||||||||
(In thousands) | |||||||||||||||||
Additions | Deductions | ||||||||||||||||
Description | Balance at | Charged to | Charged | Write-Offs | Balance at | ||||||||||||
Beginning | Costs and | Against | Net of | End of Period | |||||||||||||
of Period | Expenses | Revenue | Recoveries | ||||||||||||||
Year ended December 31, 2011: | |||||||||||||||||
Allowances deducted from asset accounts: | |||||||||||||||||
Reserves for accounts receivable | $ | 6,732 | 1,357 | (270 | ) | 3,428 | $ | 4,391 | |||||||||
Deferred tax asset valuation allowance | $ | 35,120 | 1,095 | — | — | $ | 36,215 | ||||||||||
Year ended December 31, 2012: | |||||||||||||||||
Allowances deducted from asset accounts: | |||||||||||||||||
Reserves for accounts receivable | $ | 4,391 | 2,062 | (170 | ) | 2,213 | $ | 4,070 | |||||||||
Deferred tax asset valuation allowance | $ | 36,215 | 10,000 | — | — | $ | 46,215 | ||||||||||
Year ended December 31, 2013: | |||||||||||||||||
Allowances deducted from asset accounts: | |||||||||||||||||
Reserves for accounts receivable | $ | 4,070 | 965 | (30 | ) | 2,995 | $ | 2,010 | |||||||||
Deferred tax asset valuation allowance | $ | 46,215 | 1,832 | — | — | $ | 48,047 | ||||||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Accounting Policies [Abstract] | ' | |||||||||
Basis of Presentation | ' | |||||||||
Basis of Presentation | ||||||||||
The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP). The consolidated financial statements include accounts of the Company and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated. In addition, certain other reclassifications have been made to prior year amounts to conform to the current year presentation. All information is presented in thousands, except per share amounts and where specifically noted. | ||||||||||
Revision of Previously Issued Financial Statements | ' | |||||||||
Revision of Previously Issued Financial Statements | ||||||||||
For the year ended December 31, 2013, the statement of operations was revised to reclassify certain amounts to cost of revenues, research and development and sales and marketing expenses that were previously reported in general and administrative expenses. The following table summarizes the reclassification by line item within the statement of operations for the prior years ended December 31, 2012 and 2011: | ||||||||||
For the Year Ended December 31, 2012 | ||||||||||
As | As | |||||||||
Reported | Reclassifications | Revised | ||||||||
Cost of services | $ | 83,723 | $ | 1,503 | $ | 85,226 | ||||
Total cost of revenue | 111,715 | 1,503 | 113,218 | |||||||
Gross profit | 68,521 | (1,503 | ) | 67,018 | ||||||
General and administrative | 36,003 | (1,503 | ) | 34,500 | ||||||
Total operating expenses | 107,072 | (1,503 | ) | 105,569 | ||||||
For the Year Ended December 31, 2011 | ||||||||||
As | As | |||||||||
Reported | Reclassifications | Revised | ||||||||
Cost of services | $ | 81,556 | $ | 1,420 | $ | 82,976 | ||||
Total cost of revenue | 109,586 | 1,420 | 111,006 | |||||||
Gross profit | 61,706 | (1,420 | ) | 60,286 | ||||||
General and administrative | 32,138 | (1,466 | ) | 30,672 | ||||||
Sales and marketing | 40,081 | 29 | 40,110 | |||||||
Research and development | 17,146 | 17 | 17,163 | |||||||
Total operating expenses | 94,152 | (1,420 | ) | 92,732 | ||||||
The Company also revised the statement of cash flow presentation for certain remeasurement gains and losses from the “Effect of exchange rate changes on cash and cash equivalents” line item to the “Foreign currency remeasurement (gain) loss” line item included in “Net cash provided by operating activities of continuing operations.” The amount of this revision for the year ended December 31, 2012 was approximately $103. | ||||||||||
On September 1, 2011, the Company completed the sale of its EyeWonder LLC and subsidiaries and chors GmbH video and rich media advertising services (EyeWonder and chors) to DG FastChannel, Inc. (now Digital Generation, Inc.) (DG). The sale of EyeWonder and chors met the criteria for discontinued operations during the year ended December 31, 2011. Accordingly, the results of operations related to EyeWonder and chors have been classified as discontinued operations in all periods presented. See further discussion in Note 5. | ||||||||||
Use of Estimates | ' | |||||||||
Use of Estimates | ||||||||||
The preparation of the consolidated financial statements and related disclosures in conformity with U.S. GAAP requires management to make judgments, assumptions, and estimates that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results and outcomes may differ from those estimates. The results of operations presented in this annual report on Form 10-K are not necessarily indicative of the results that may be expected for the year ending December 31, 2014 or for any future periods. | ||||||||||
Foreign Currency Translation | ' | |||||||||
Foreign Currency Translation | ||||||||||
The Company analyzes the functional currency for each of its international subsidiaries periodically to determine if a significant change in facts and circumstances indicate that the primary economic currency has changed. As of December 31, 2010, the Company’s international subsidiaries had the U.S. dollar as their functional currencies. During the first quarter of 2011, the Company analyzed the various economic factors of its international subsidiaries and determined that the operations of its subsidiaries that were previously determined to operate in a U.S. dollar functional currency environment had changed and their functional currencies should be changed to the local currencies. The Company was historically primarily focused on the United States market and deployed network assets in foreign jurisdictions to support its United States customers. The Company is now conducting business and generating revenue from an international customer base. It has significantly expanded its sales, operations and finance resources internationally and various contracts were moved to the foreign subsidiaries to better match foreign currency costs with foreign currency revenues. Effective January 1, 2011, the adjustment from translating these subsidiaries’ financial statements from the local currency to the U.S. dollar was recorded as a separate component of accumulated other comprehensive loss. The foreign currency translation adjustments reflect the translation of the balance sheet at period end exchange rates and the income statement at an average exchange rate in effect during each period. | ||||||||||
Recent Accounting Pronouncements | ' | |||||||||
Recent Accounting Standards | ||||||||||
Recently Adopted Accounting Standards | ||||||||||
In February 2013, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2013-02, which requires additional disclosures regarding the reporting of reclassifications out of accumulated other comprehensive income (loss). ASU 2013-02 requires an entity to present, either on the face of the statement where net income (loss) is presented, or in the notes, significant amounts reclassified out of accumulated other comprehensive income (loss) by the respective line items of net income (loss), but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income (loss) in its entirety in the same reporting period. This guidance is effective for reporting periods beginning after December 15, 2012. The Company adopted this guidance effective January 1, 2013, and has included the additional disclosures in Note 16. | ||||||||||
In March 2013, the FASB issued ASU 2013-05, which permits an entity to release cumulative translation adjustments into net income when a reporting entity (parent) ceases to have a controlling financial interest in a subsidiary or group of assets that is a business within a foreign entity. Accordingly, the cumulative translation adjustment should be released into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided, or, if a controlling financial interest is no longer held. The revised standard is effective for the Company for fiscal years beginning after December 15, 2013. The company adopted this guidance effective January 1, 2014. The Company does not expect adoption of this ASU to significantly impact its consolidated financial statements. | ||||||||||
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 (Topic 740). ASU 2013-11 requires that unrecognized tax benefits be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except in certain circumstances. When those circumstances exist, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The company has adopted this guidance, see further discussion in Note 21. | ||||||||||
Revenue Recognition | ' | |||||||||
Revenue Recognition | ||||||||||
The Company derives revenue primarily from the sale of services that comprise components of its Orchestrate Platform. The Company’s customers generally execute contracts with terms of one year or longer, which are referred to as recurring revenue contracts or long-term contracts. These contracts generally commit the customer to a minimum monthly level of usage with additional charges applicable for actual usage above the monthly minimum commitment. The Company defines usage as customer data sent or received using its content delivery service, or content that is hosted or cached by the Company at the request or direction of its customer. The Company recognizes the monthly minimum as revenue each month provided that an enforceable contract has been signed by both parties, the service has been delivered to the customer, the fee for the service is fixed or determinable, and collection is reasonably assured. Should a customer’s usage of the Company’s services exceed the monthly minimum commitment, the Company recognizes revenue for such excess in the period of the usage. For annual or other non-monthly period revenue commitments, the Company recognizes revenue monthly based upon the customer’s actual usage each month of the commitment period and only recognizes any remaining committed amount for the applicable period in the last month thereof. | ||||||||||
The Company typically charges the customer an installation fee when the services are first activated. The Company does not charge installation fees for contract renewals. Installation fees are recorded as deferred revenue and recognized as revenue ratably over the estimated life of the customer arrangement. The Company also derives revenue from services and events sold as discrete, non-recurring events or based solely on usage. For these services, the Company recognizes revenue after an enforceable contract has been signed by both parties, the fee is fixed or determinable, the event or usage has occurred and collection is reasonably assured. | ||||||||||
The Company has, on occasion, entered into multi-element arrangements. Revenue arrangements with multiple deliverables are divided into separate units of accounting if each deliverable has stand-alone value to the customer. Arrangements not meeting these criteria are combined into a single unit of accounting. | ||||||||||
For services sold in multiple-element arrangements, consideration is allocated to each deliverable at the inception of an arrangement based on relative selling prices. Substantially all services are sold on a stand-alone basis, providing vendor specific objective evidence (VSOE) of selling prices. In the absence of VSOE or third-party evidence of selling prices, consideration would be allocated based on the Company’s best estimate of such prices. | ||||||||||
At the inception of a customer contract for service, the Company makes an assessment as to that customer’s ability to pay for the services provided. If the Company subsequently determines that collection from the customer is not reasonably assured, the Company records an allowance for doubtful accounts and bad debt expense or deferred revenue for all of that customer’s unpaid invoices and ceases recognizing revenue for continued services provided until cash is received. | ||||||||||
Deferred revenue represents amounts billed to customers for which revenue has not been recognized. Deferred revenue primarily consists of the unearned portion of monthly billed service fees, prepayments made by customers for future periods, and deferred installation fees. | ||||||||||
Cash and Cash Equivalents | ' | |||||||||
Cash and Cash Equivalents | ||||||||||
The Company holds its cash and cash equivalents in checking, money market, and highly-liquid investments. The Company considers all highly liquid investments with maturities of three months or less when purchased to be cash equivalents. | ||||||||||
Investments in Marketable Securities | ' | |||||||||
Investments in Marketable Securities | ||||||||||
Management determines the appropriate classification of its marketable securities at the time of purchase and reevaluates such classification as of each balance sheet date. The Company has classified its investments in marketable securities as available-for-sale. Available-for-sale investments are initially recorded at cost with temporary changes in fair value periodically recorded through comprehensive income. Realized gains and losses and declines in value judged to be other than temporary are determined based on the specific identification method and are reported in the statements of operations. The Company periodically reviews its investments for other-than-temporary declines in fair value based on the specific identification method and writes down investments to their fair value when an other-than-temporary decline has occurred. | ||||||||||
Accounts Receivable | ' | |||||||||
Accounts Receivable | ||||||||||
Trade accounts receivable are recorded at the invoiced amounts and do not bear interest. The Company records reserves against its accounts receivable balance for service credits and for doubtful accounts. Estimates are used in determining both of these reserves. The allowance for doubtful accounts charges are included as a component of general and administrative expenses. | ||||||||||
The allowance for doubtful accounts is based upon a calculation that uses the Company’s aging of accounts receivable and applies a reserve percentage to the specific age of the receivable to estimate the allowance for doubtful accounts. The reserve percentages are determined based on the Company’s historical write-off experience. These estimates could change significantly if the Company’s customers’ financial condition changes or if the economy in general deteriorates. | ||||||||||
The Company’s reserve for service credits relates to credits that are expected to be issued to customers during the ordinary course of business. These credits typically relate to customer disputes and billing adjustments and are estimated at the time the revenue is recognized and recorded as a reduction of revenues. Estimates for service credits are based on an analysis of credits issued in previous periods. | ||||||||||
Property and Equipment | ' | |||||||||
Property and Equipment | ||||||||||
Property and equipment are carried at cost less accumulated depreciation or amortization. Depreciation and amortization are computed using the straight-line method over the assets’ estimated useful lives of the applicable asset. | ||||||||||
Network equipment | 3 years | |||||||||
Computer equipment | 3 years | |||||||||
Capitalized software | 3 years | |||||||||
Furniture and fixtures | 3-5 years | |||||||||
Other equipment | 3-7 years | |||||||||
Leasehold improvements are amortized over the shorter of the asset’s estimated useful life or the respective lease term. Repairs and maintenance are charged to expense as incurred. | ||||||||||
Goodwill and Other Intangible Assets | ' | |||||||||
Goodwill and Other Intangible Assets | ||||||||||
Goodwill represents costs in excess of fair values assigned to the underlying net assets of the acquired company. Goodwill is not amortized but instead is tested for impairment annually or more frequently if events or changes in circumstances indicate goodwill might be impaired. | ||||||||||
The Company’s other intangible assets represent existing technologies, trade names and trademarks, and customer relationship intangibles. Other intangible assets are amortized over their respective estimated lives, ranging from less than one year to six years. In the event that facts and circumstances indicate intangibles or other long-lived assets may be impaired, the Company evaluates the recoverability and estimated useful lives of such assets. Amortization of other intangible assets is included in depreciation and amortization in the accompanying consolidated statements of operations. | ||||||||||
Contingencies | ' | |||||||||
Contingencies | ||||||||||
The Company records contingent liabilities resulting from asserted and unasserted claims when it is probable that a loss has been incurred and the amount of the loss is reasonably estimable. Contingent liabilities are disclosed when there is a reasonable possibility that the ultimate loss will exceed the recorded liability. Estimating probable losses requires analysis of multiple factors, in some cases including judgments about the potential actions of third party claimants and courts. Therefore, actual losses in any future period are inherently uncertain. | ||||||||||
Long-Lived Assets | ' | |||||||||
Long-Lived Assets | ||||||||||
The Company reviews its long-lived assets for impairment annually, or whenever events or circumstances indicate that the carrying amount of an asset may not be fully recoverable. The Company recognizes an impairment loss if the sum of the expected long-term undiscounted cash flows that the long-lived asset is expected to generate is less than the carrying amount of the long-lived asset being evaluated. The Company treats any write-downs as permanent reductions in the carrying amounts of the assets. The Company believes the carrying amounts of its long-lived assets at December 31, 2013 and 2012 are fully realizable and has not recorded any impairment losses. | ||||||||||
Deferred Rent and Lease Accounting | ' | |||||||||
Deferred Rent and Lease Accounting | ||||||||||
The Company leases bandwidth, co-location and office space in various locations. At the inception of each lease, the Company evaluates the lease terms to determine whether the lease will be accounted for as an operating or a capital lease. The term of the lease used for this evaluation includes renewal option periods only in instances where the exercise of the renewal option can be reasonably assured and failure to exercise the option would result in an economic penalty. The Company records tenant improvement allowances granted under the lease agreements as leasehold improvements within property and equipment and within deferred rent. | ||||||||||
For leases that contain rent escalation provisions, the Company records the total rent payable during the lease term on a straight-line basis over the term of the lease (including any “rent free” period beginning upon possession of the premises), and records any difference between the actual rent paid and the straight-line rent expense recorded as increases or decreases in deferred rent. | ||||||||||
Cost of Revenue | ' | |||||||||
Cost of Revenue | ||||||||||
Cost of revenues consists primarily of fees paid to network providers for bandwidth and backbone, costs incurred for non-settlement free peering and connection to Internet service provider networks and fees paid to data center operators for housing network equipment in third party network data centers, also known as co-location costs. Cost of revenues also includes depreciation of network equipment used to deliver the Company’s content delivery services, payroll and related costs and share-based compensation for its network operations, and professional services personnel. | ||||||||||
The Company enters into contracts for bandwidth with third party network providers with terms typically ranging from several months to five years. These contracts generally commit the Company to pay minimum monthly fees plus additional fees for bandwidth usage above contracted minimums. A portion of the global computing platform traffic delivery is completed through direct connection to ISP networks, called peering. | ||||||||||
Research and Development and Software Development Costs | ' | |||||||||
Research and Development and Software Development Costs | ||||||||||
Research and development costs consist primarily of payroll and related personnel costs for the design, development, deployment, testing, operation, and enhancement of the Company’s services, and network. Costs incurred in the development of the Company’s services are expensed as incurred. | ||||||||||
Advertising Costs | ' | |||||||||
Advertising Costs | ||||||||||
Costs associated with advertising are expensed as incurred. Advertising expenses, which are comprised of Internet, trade show, and publications advertising, were approximately $2,754, $2,474, and $2,290 for the years ended December 31, 2013, 2012, and 2011, respectively. | ||||||||||
Income Taxes | ' | |||||||||
Income Taxes | ||||||||||
The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. | ||||||||||
The Company records net deferred tax assets to the extent it believes these assets will more likely than not be realized. In making such determination, the Company considers all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies, and recent financial performance. In the event the Company was to determine that it would be able to realize its deferred income tax assets in the future in excess of their net recorded amount, the Company would make an adjustment to the valuation allowance, which would reduce the provision for income taxes. | ||||||||||
The Company recognizes uncertain income tax positions in its financial statements when it is more-likely-than-not the position will be sustained upon examination. | ||||||||||
Fair Value of Financial Instruments | ' | |||||||||
Fair Value of Financial Instruments | ||||||||||
The carrying amounts of cash and cash equivalents approximate fair value due to the nature and short maturity of those instruments. The respective fair values of marketable securities are determined based on quoted market prices, which approximate fair values. The carrying amounts of accounts receivable, accounts payable, and accrued liabilities reported in the consolidated balance sheets approximate their respective fair values due to the immediate or short-term maturity of these financial instruments. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Accounting Policies [Abstract] | ' | |||||||||
Schedule of reclassifications within statement of operations | ' | |||||||||
The following table summarizes the reclassification by line item within the statement of operations for the prior years ended December 31, 2012 and 2011: | ||||||||||
For the Year Ended December 31, 2012 | ||||||||||
As | As | |||||||||
Reported | Reclassifications | Revised | ||||||||
Cost of services | $ | 83,723 | $ | 1,503 | $ | 85,226 | ||||
Total cost of revenue | 111,715 | 1,503 | 113,218 | |||||||
Gross profit | 68,521 | (1,503 | ) | 67,018 | ||||||
General and administrative | 36,003 | (1,503 | ) | 34,500 | ||||||
Total operating expenses | 107,072 | (1,503 | ) | 105,569 | ||||||
For the Year Ended December 31, 2011 | ||||||||||
As | As | |||||||||
Reported | Reclassifications | Revised | ||||||||
Cost of services | $ | 81,556 | $ | 1,420 | $ | 82,976 | ||||
Total cost of revenue | 109,586 | 1,420 | 111,006 | |||||||
Gross profit | 61,706 | (1,420 | ) | 60,286 | ||||||
General and administrative | 32,138 | (1,466 | ) | 30,672 | ||||||
Sales and marketing | 40,081 | 29 | 40,110 | |||||||
Research and development | 17,146 | 17 | 17,163 | |||||||
Total operating expenses | 94,152 | (1,420 | ) | 92,732 | ||||||
Estimated useful lives of assets | ' | |||||||||
Depreciation and amortization are computed using the straight-line method over the assets’ estimated useful lives of the applicable asset. | ||||||||||
Network equipment | 3 years | |||||||||
Computer equipment | 3 years | |||||||||
Capitalized software | 3 years | |||||||||
Furniture and fixtures | 3-5 years | |||||||||
Other equipment | 3-7 years |
Investments_in_Marketable_Secu1
Investments in Marketable Securities (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Marketable Securities [Abstract] | ' | |||||||||||||||
Summary of marketable securities (designated as available-for-sale) | ' | |||||||||||||||
The following is a summary of marketable securities (designated as available-for-sale) at December 31, 2013: | ||||||||||||||||
Amortized | Gross | Gross | Estimated | |||||||||||||
Cost | Unrealized | Unrealized | Fair Value | |||||||||||||
Gains | Losses | |||||||||||||||
Government agency bonds | $ | 261 | $ | — | $ | — | $ | 261 | ||||||||
Certificate of deposit | 4,080 | — | 4 | 4,076 | ||||||||||||
Commercial paper | 2,200 | — | — | 2,200 | ||||||||||||
Corporate notes and bonds | 26,001 | 15 | 7 | 26,009 | ||||||||||||
32,542 | 15 | 11 | 32,546 | |||||||||||||
Publicly traded common stock | 12 | — | 6 | 6 | ||||||||||||
Total marketable securities | $ | 32,554 | $ | 15 | $ | 17 | $ | 32,552 | ||||||||
The following is a summary of marketable securities (designated as available-for-sale) at December 31, 2012: | ||||||||||||||||
Amortized | Gross | Gross | Estimated | |||||||||||||
Cost | Unrealized | Unrealized | Fair Value | |||||||||||||
Gains | Losses | |||||||||||||||
Government agency bonds | $ | 6,266 | $ | 4 | $ | — | $ | 6,270 | ||||||||
Certificate of deposit | 2,741 | — | — | 2,741 | ||||||||||||
Commercial paper | 500 | — | — | 500 | ||||||||||||
Corporate notes and bonds | 9,527 | 3 | 1 | 9,529 | ||||||||||||
19,034 | 7 | 1 | 19,040 | |||||||||||||
Publicly traded common stock | 12 | 6 | — | 18 | ||||||||||||
Total marketable securities | $ | 19,046 | $ | 13 | $ | 1 | $ | 19,058 | ||||||||
Amortized cost and estimated fair value of marketable securities (designated as available-for-sale) by maturity | ' | |||||||||||||||
The amortized cost and estimated fair value of the marketable securities (designated as available-for-sale) at December 31, 2012, by maturity, are shown below: | ||||||||||||||||
Amortized | Gross | Gross | Estimated | |||||||||||||
Cost | Unrealized | Unrealized | Fair Value | |||||||||||||
Gains | Losses | |||||||||||||||
Available-for-sale securities | ||||||||||||||||
Due in one year or less | $ | 18,260 | $ | 6 | $ | 1 | $ | 18,265 | ||||||||
Due after one year and through five years | 774 | 1 | — | 775 | ||||||||||||
$ | 19,034 | $ | 7 | $ | 1 | $ | 19,040 | |||||||||
The amortized cost and estimated fair value of the marketable securities (designated as available-for-sale) at December 31, 2013, by maturity, are shown below: | ||||||||||||||||
Amortized | Gross | Gross | Estimated | |||||||||||||
Cost | Unrealized | Unrealized | Fair Value | |||||||||||||
Gains | Losses | |||||||||||||||
Available-for-sale securities | ||||||||||||||||
Due in one year or less | $ | 17,031 | $ | 2 | $ | 5 | $ | 17,028 | ||||||||
Due after one year and through five years | 15,511 | 13 | 6 | 15,518 | ||||||||||||
$ | 32,542 | $ | 15 | $ | 11 | $ | 32,546 | |||||||||
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | |||||||||||
Summary of activity related to receivable | ' | |||||||||||
The following is a summary of activity related to the receivable from DG for the years ended December 31, 2013 and 2012: | ||||||||||||
Balance, December 31, 2011 | $ | 10,854 | ||||||||||
Payments received from DG | (7,440 | ) | ||||||||||
Allowance for doubtful accounts receivable and other receivables adjustments | (2,060 | ) | ||||||||||
Net Working Capital adjustments | (818 | ) | ||||||||||
Balance, December 31, 2012 | $ | 536 | ||||||||||
Payments received from DG | (124 | ) | ||||||||||
Allowance for doubtful accounts receivable and other receivable adjustments | (412 | ) | ||||||||||
Balance, December 31, 2013 | $ | — | ||||||||||
Operating results of discontinued operations | ' | |||||||||||
Operating results of discontinued operations for the years ended December 31, 2013, 2012, and 2011, respectively, are as follows: | ||||||||||||
Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Revenues | $ | — | $ | — | $ | 22,302 | ||||||
Cost of revenues | — | — | (8,843 | ) | ||||||||
General and administrative expenses | (15 | ) | 163 | (6,055 | ) | |||||||
Sales and marketing expenses | — | — | (8,183 | ) | ||||||||
Research and development expenses | — | — | (4,853 | ) | ||||||||
Depreciation and amortization | — | — | (3,761 | ) | ||||||||
Interest expense | — | — | (16 | ) | ||||||||
Interest income | — | — | 21 | |||||||||
Other (expense) income | — | — | (525 | ) | ||||||||
(Loss) gain on sale of discontinued operations, net of income taxes | (411 | ) | (3,024 | ) | 14,756 | |||||||
(Loss) income before income taxes | (426 | ) | (2,861 | ) | 4,843 | |||||||
Income tax expense | — | — | (65 | ) | ||||||||
(Loss) income from discontinued operations | $ | (426 | ) | $ | (2,861 | ) | $ | 4,778 | ||||
(Loss) income from discontinued operations per weighted average share: | ||||||||||||
Basic | $ | (0.01 | ) | $ | (0.02 | ) | $ | 0.05 | ||||
Diluted | $ | (0.01 | ) | $ | (0.02 | ) | $ | 0.05 | ||||
Shares used in per weighted average share calculation for discontinued operations: | ||||||||||||
Basic and diluted | 96,851 | 101,283 | 109,236 | |||||||||
Accounts_Receivable_net_Tables
Accounts Receivable, net (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Accounts Receivable, Net [Abstract] | ' | |||||||
Summary of accounts receivable, net | ' | |||||||
Accounts receivable include: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Accounts receivable | $ | 17,497 | $ | 23,675 | ||||
Unbilled accounts receivable | 5,943 | 6,997 | ||||||
23,440 | 30,672 | |||||||
Less: credit allowance | (610 | ) | (640 | ) | ||||
Less: allowance for doubtful accounts | (1,400 | ) | (3,430 | ) | ||||
Total accounts receivable, net | $ | 21,430 | $ | 26,602 | ||||
Prepaid_Expenses_and_Other_Cur1
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Prepaid Expense and Other Assets, Current [Abstract] | ' | |||||||
Summary of Prepaid expenses and other current assets | ' | |||||||
Prepaid expenses and other current assets include: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Prepaid bandwidth and backbone services | $ | 2,045 | $ | 3,614 | ||||
Non-income taxes receivable (VAT) | 1,588 | 1,739 | ||||||
Gaikai sale escrow receivable | — | 1,237 | ||||||
Receivable from DG (see note 5) | — | 536 | ||||||
Employee advances and prepaid recoverable commissions | 189 | 551 | ||||||
Vendor deposits and other | 4,370 | 4,631 | ||||||
Total prepaid expenses and other current assets | $ | 8,192 | $ | 12,308 | ||||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||
Schedule of changes in the carrying amount of goodwill | ' | |||||||||||
The changes in the carrying amount of goodwill for continuing operations for the years ended December 31, 2013 and 2012 were as follows: | ||||||||||||
Balance, December 31, 2011 | $ | 80,105 | ||||||||||
Foreign currency translation adjustment | 173 | |||||||||||
Balance, December 31, 2012 | $ | 80,278 | ||||||||||
Foreign currency translation adjustment | 556 | |||||||||||
Disposition of the WCM business | $ | (3,799 | ) | |||||||||
Balance, December 31, 2013 | $ | 77,035 | ||||||||||
Schedule of other intangible assets subject to amortization | ' | |||||||||||
Other intangible assets that are subject to amortization consisted of the following: | ||||||||||||
31-Dec-13 | ||||||||||||
Gross | Accumulated | Net | ||||||||||
Carrying | Amortization | Carrying | ||||||||||
Amount | Amount | |||||||||||
Existing technologies | $ | 6,164 | $ | (3,875 | ) | $ | 2,289 | |||||
Customer relationships | 150 | (85 | ) | 65 | ||||||||
Total other intangible assets | $ | 6,314 | $ | (3,960 | ) | $ | 2,354 | |||||
31-Dec-12 | ||||||||||||
Gross | Accumulated | Net | ||||||||||
Carrying | Amortization | Carrying | ||||||||||
Amount | Amount | |||||||||||
Existing technologies | $ | 8,436 | $ | (4,035 | ) | $ | 4,401 | |||||
Customer relationships | 3,412 | (1,427 | ) | 1,985 | ||||||||
Trade names and trademark | 160 | (159 | ) | 1 | ||||||||
Total other intangible assets | $ | 12,008 | $ | (5,621 | ) | $ | 6,387 | |||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property and equipment, net | ' | |||||||
Property and equipment include: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Network equipment | $ | 180,896 | $ | 168,637 | ||||
Computer equipment | 11,073 | 10,398 | ||||||
Furniture and fixtures | 2,723 | 2,595 | ||||||
Leasehold improvements | 7,162 | 6,684 | ||||||
Other equipment | 570 | 534 | ||||||
202,424 | 188,848 | |||||||
Less: accumulated depreciation | (169,519 | ) | (147,597 | ) | ||||
Total property and equipment, net | $ | 32,905 | $ | 41,251 | ||||
Other_Assets_Tables
Other Assets (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Other Assets, Noncurrent [Abstract] | ' | |||||||
Other assets | ' | |||||||
Other assets include: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Prepaid bandwidth and backbone services | $ | 4,268 | $ | 5,799 | ||||
Vendor deposits and other | 1,835 | 729 | ||||||
Deferred expenses | — | 207 | ||||||
Total other assets | $ | 6,103 | $ | 6,735 | ||||
Other_Current_Liabilities_Tabl
Other Current Liabilities (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Other Liabilities, Current [Abstract] | ' | |||||||
Other current liabilities | ' | |||||||
Other current liabilities include: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Accrued compensation and benefits | $ | 6,682 | $ | 6,703 | ||||
Accrued cost of revenue | 1,833 | 2,307 | ||||||
Accrued legal fees | 1,769 | 1,591 | ||||||
Indirect taxes payable | 639 | 1,029 | ||||||
Customer deposits | 635 | 361 | ||||||
Other accrued expenses | 3,464 | 2,875 | ||||||
Total other current liabilities | $ | 15,022 | $ | 14,866 | ||||
Other_Long_Term_Liabilities_Ta
Other Long Term Liabilities (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Other Liabilities, Noncurrent [Abstract] | ' | |||||||
Other long term liabilities | ' | |||||||
Other long term liabilities include: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Deferred rent | $ | 3,384 | $ | 3,543 | ||||
Income taxes payable | 121 | 1,718 | ||||||
Total other long term liabilities | $ | 3,505 | $ | 5,261 | ||||
Net_Loss_per_Share_Tables
Net Loss per Share (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
Computation of basic and diluted net income (loss) per share | ' | |||||||||||
The following table sets forth the components used in the computation of basic and diluted net loss per share for the periods indicated (in thousands, except per share data): | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Net loss from continuing operations | $ | (34,976 | ) | $ | (30,035 | ) | $ | (30,066 | ) | |||
Net (loss) income from discontinued operations | (426 | ) | (2,861 | ) | 4,778 | |||||||
Net loss available to common stockholders | $ | (35,402 | ) | $ | (32,896 | ) | $ | (25,288 | ) | |||
Basic weighted average outstanding shares of common stock | 96,851 | 101,283 | 109,236 | |||||||||
Basic weighted average outstanding shares of common stock | 96,851 | 101,283 | 109,236 | |||||||||
Dilutive effect of stock options and restricted stock units | — | — | — | |||||||||
Diluted weighted average outstanding shares of common stock | 96,851 | 101,283 | 109,236 | |||||||||
Basic and diluted income (loss) per share: | ||||||||||||
Continuing operations | $ | (0.36 | ) | $ | (0.30 | ) | $ | (0.28 | ) | |||
Discontinued operations | (0.01 | ) | (0.02 | ) | 0.05 | |||||||
Basic and diluted net loss per share | $ | (0.37 | ) | $ | (0.32 | ) | $ | (0.23 | ) | |||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Equity [Abstract] | ' | |||||||||||
Schedule of accumulated other comprehensive loss | ' | |||||||||||
Changes in the components of accumulated other comprehensive loss, net of tax, for the years ended December 31, 2013 and 2012 was as follows: | ||||||||||||
Unrealized | ||||||||||||
Gains (Losses) on | ||||||||||||
Foreign | Available for | |||||||||||
Currency | Sale Securities | Total | ||||||||||
Balance, December 31, 2012 | $ | (747 | ) | $ | 38 | $ | (709 | ) | ||||
Other comprehensive loss before reclassifications | (941 | ) | (13 | ) | (954 | ) | ||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | — | — | |||||||||
Net current period other comprehensive loss | (941 | ) | (13 | ) | (954 | ) | ||||||
Balance, December 31, 2013 | $ | (1,688 | ) | $ | 25 | $ | (1,663 | ) | ||||
Unrealized | ||||||||||||
Gains (Losses) on | ||||||||||||
Foreign | Available for | |||||||||||
Currency | Sale Securities | Total | ||||||||||
Balance, December 31, 2011 | $ | (575 | ) | $ | 66 | $ | (509 | ) | ||||
Other comprehensive loss before reclassifications | (172 | ) | (28 | ) | (200 | ) | ||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | — | — | |||||||||
Net current period other comprehensive loss | (172 | ) | (28 | ) | (200 | ) | ||||||
Balance, December 31, 2012 | $ | (747 | ) | $ | 38 | $ | (709 | ) | ||||
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | ' | ||||||||||||||||
Stock option activity | ' | ||||||||||||||||
Data pertaining to stock option activity under the Plans are as follows: | |||||||||||||||||
Number of | Weighted | ||||||||||||||||
Shares | Average | ||||||||||||||||
Exercise | |||||||||||||||||
Price | |||||||||||||||||
(In thousands) | |||||||||||||||||
Balance at December 31, 2010 | 12,008 | $ | 4.94 | ||||||||||||||
Granted | 4,675 | 5.68 | |||||||||||||||
Exercised | (262 | ) | 2.3 | ||||||||||||||
Cancelled | (3,073 | ) | 5.04 | ||||||||||||||
Balance at December 31, 2011 | 13,348 | 5.23 | |||||||||||||||
Granted | 2,972 | 2.4 | |||||||||||||||
Exercised | (176 | ) | 1.08 | ||||||||||||||
Cancelled | (1,834 | ) | 6.1 | ||||||||||||||
Balance at December 31, 2012 | 14,310 | 4.58 | |||||||||||||||
Granted | 4,902 | 2.19 | |||||||||||||||
Exercised | (143 | ) | 0.26 | ||||||||||||||
Cancelled | (3,087 | ) | 3.87 | ||||||||||||||
Balance at December 31, 2013 | 15,982 | 4 | |||||||||||||||
Outstanding stock options | ' | ||||||||||||||||
The following table summarizes the information about stock options outstanding and exercisable at December 31, 2013: | |||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||
Exercise Price | Number of | Weighted | Weighted | Number of | Weighted | ||||||||||||
Options | Average | Average | Options | Average | |||||||||||||
Outstanding | Remaining | Exercise | Exercisable | Exercise | |||||||||||||
Contractual | Price | Price | |||||||||||||||
Life (Years) | |||||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||
$ 0.00 — $ 1.50 | 569 | 2.2 | $ | 0.36 | 569 | $ | 0.36 | ||||||||||
$ 1.51 — $ 3.00 | 6,661 | 8.4 | 2.17 | 1,606 | 2.11 | ||||||||||||
$ 3.01 — $ 4.50 | 3,640 | 5.4 | 3.77 | 3,269 | 3.76 | ||||||||||||
$ 4.51 — $ 6.00 | 2,070 | 5.9 | 5.18 | 1,700 | 5.13 | ||||||||||||
$ 6.01 — $ 7.50 | 1,759 | 3.4 | 6.46 | 1,685 | 6.46 | ||||||||||||
$ 7.51 — $ 15.00 | 1,283 | 3.9 | 10.56 | 1,155 | 10.83 | ||||||||||||
15,982 | 9,984 | ||||||||||||||||
Grant date fair value of option | ' | ||||||||||||||||
The fair value of each new option awarded is estimated on the grant date using the assumptions noted in the following table: | |||||||||||||||||
Years Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Expected volatility | 77.96 | % | 78.1 | % | 72.25 | % | |||||||||||
Expected term, years | 6.05 | 5.88 | 6.08 | ||||||||||||||
Risk-free interest | 1.31 | % | 0.91 | % | 2.14 | % | |||||||||||
Expected dividends | — | % | — | % | — | % | |||||||||||
Different types of restricted stock units (RSUs) outstanding | ' | ||||||||||||||||
The following table summarizes the different types of RSUs outstanding (in thousands): | |||||||||||||||||
Years Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
RSUs with service-based vesting conditions | 5,286 | 4,232 | 3,392 | ||||||||||||||
Performance-based RSUs | — | 349 | 459 | ||||||||||||||
Unvested RSUs | 5,286 | 4,581 | 3,851 | ||||||||||||||
Restricted stock units activity | ' | ||||||||||||||||
Data pertaining to RSUs activity under the Plans is as follows: | |||||||||||||||||
Number of | Weighted | ||||||||||||||||
Units | Average | ||||||||||||||||
Fair Value | |||||||||||||||||
(In thousands) | |||||||||||||||||
Balance at December 31, 2010 | 2,627 | $ | 4.31 | ||||||||||||||
Granted | 2,829 | 3.32 | |||||||||||||||
Vested | (986 | ) | 4.09 | ||||||||||||||
Cancelled | (619 | ) | 4.04 | ||||||||||||||
Balance at December 31, 2011 | 3,851 | 3.66 | |||||||||||||||
Granted | 4,085 | 2.37 | |||||||||||||||
Vested | (2,450 | ) | 2.68 | ||||||||||||||
Cancelled | (905 | ) | 3.17 | ||||||||||||||
Balance at December 31, 2012 | 4,581 | 2.74 | |||||||||||||||
Granted | 4,970 | 2.15 | |||||||||||||||
Vested | (2,032 | ) | 2.53 | ||||||||||||||
Cancelled | (2,233 | ) | 2.78 | ||||||||||||||
Balance at December 31, 2013 | 5,286 | 2.24 | |||||||||||||||
Components of share-based compensation expense | ' | ||||||||||||||||
The following table summarizes the components of share-based compensation expense included in the Company’s consolidated statement of operations for the years ended December 31, 2013, 2012, and 2011: | |||||||||||||||||
Years Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Share-based compensation expense by type of award: | |||||||||||||||||
Stock options | $ | 6,617 | $ | 7,426 | $ | 9,568 | |||||||||||
Restricted stock units | 5,671 | 7,049 | 6,313 | ||||||||||||||
Shares issued under the 2013 ESPP | 57 | — | — | ||||||||||||||
Total share-based compensation expense | $ | 12,345 | $ | 14,475 | $ | 15,881 | |||||||||||
Effect of share-based compensation expense on income by financial statement line: | |||||||||||||||||
Cost of services | $ | 1,873 | $ | 2,117 | $ | 2,419 | |||||||||||
General and administrative expense | 5,971 | 6,511 | 6,132 | ||||||||||||||
Sales and marketing expense | 2,245 | 3,104 | 3,776 | ||||||||||||||
Research and development expense | 2,256 | 2,743 | 3,554 | ||||||||||||||
Total cost related to share-based compensation expense | $ | 12,345 | $ | 14,475 | $ | 15,881 | |||||||||||
Leases_and_Commitments_Tables
Leases and Commitments (Tables) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Leases and Commitments [Abstract] | ' | |||
Future minimum lease payments over remaining lease periods | ' | |||
Approximate future minimum lease payments over the remaining lease periods as of December 31, 2013 are as follows: | ||||
2014 | $ | 3,887 | ||
2015 | 3,242 | |||
2016 | 2,621 | |||
2017 | 2,213 | |||
2018 and thereafter | 3,387 | |||
Total minimum payments | $ | 15,350 | ||
Minimum Purchase commitments | ' | |||
The following summarizes minimum commitments as of December 31, 2013: | ||||
2014 | $ | 32,728 | ||
2015 | 18,674 | |||
2016 | 4,831 | |||
2017 | 873 | |||
2018 and thereafter | 382 | |||
Total minimum payments | $ | 57,488 | ||
Future minimum capital lease payments | ' | |||
Future minimum capital lease payments at December 31, 2013 were as follows (in thousands): | ||||
2014 | $ | 498 | ||
2015 | 238 | |||
2016 | 133 | |||
2017 | 5 | |||
2018 and thereafter | — | |||
Total | 874 | |||
Amounts representing interest | (50 | ) | ||
Present value of minimum lease payments | $ | 824 | ||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||||||||||
(Loss) income before taxes | ' | ||||||||||||||||||||
The Company's loss from continuing operations before income taxes consists of the following (in thousands): | |||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
(Loss) income before income taxes: | |||||||||||||||||||||
United States | $ | (34,789 | ) | $ | (29,991 | ) | $ | (30,438 | ) | ||||||||||||
Foreign | 200 | 437 | (1,866 | ) | |||||||||||||||||
$ | (34,589 | ) | $ | (29,554 | ) | $ | (32,304 | ) | |||||||||||||
Components of provision (benefit) for income taxes | ' | ||||||||||||||||||||
The components of the provision (benefit) for income taxes are as follows (in thousands): | |||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Current: | |||||||||||||||||||||
Federal | $ | — | $ | — | $ | — | |||||||||||||||
State | 80 | (20 | ) | 198 | |||||||||||||||||
Foreign | 442 | 558 | 550 | ||||||||||||||||||
Total current | 522 | 538 | 748 | ||||||||||||||||||
Deferred: | |||||||||||||||||||||
Federal | 16 | 16 | (2,571 | ) | |||||||||||||||||
State | — | — | — | ||||||||||||||||||
Foreign | (151 | ) | (73 | ) | (415 | ) | |||||||||||||||
Total deferred | (135 | ) | (57 | ) | (2,986 | ) | |||||||||||||||
Total (benefit) provision | $ | 387 | $ | 481 | $ | (2,238 | ) | ||||||||||||||
Reconciliation of the U.S. federal statutory rate to the Company's effective income tax rate | ' | ||||||||||||||||||||
A reconciliation of the U.S. federal statutory rate to the Company’s effective income tax rate is shown in the table below (in thousands, except percent): | |||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Amount | Percent | Amount | Percent | Amount | Percent | ||||||||||||||||
U.S. federal statutory tax rate | $ | (12,106 | ) | 35 | % | $ | (10,344 | ) | 35 | % | $ | (11,306 | ) | 35 | % | ||||||
Impact related to sale of discontinued operations | — | — | % | — | — | % | 7,893 | (24 | )% | ||||||||||||
Valuation allowance | 12,958 | (37 | )% | 10,329 | (35 | )% | 52 | — | % | ||||||||||||
Foreign income taxes | 221 | (1 | )% | 351 | (1 | )% | 797 | (3 | )% | ||||||||||||
State income taxes | 80 | — | % | (20 | ) | — | % | 198 | (1 | )% | |||||||||||
Non-deductible expenses | (783 | ) | 2 | % | 168 | (1 | )% | 136 | — | % | |||||||||||
Uncertain tax positions | 14 | — | % | (18 | ) | — | % | (9 | ) | — | % | ||||||||||
Share-based compensation | — | — | % | — | — | % | — | — | % | ||||||||||||
Other | 3 | — | % | 15 | — | % | 1 | — | % | ||||||||||||
Provision for (benefit from) income taxes | $ | 387 | (1 | )% | $ | 481 | (2 | )% | $ | (2,238 | ) | 7 | % | ||||||||
Components of Company's deferred tax assets and liabilities | ' | ||||||||||||||||||||
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purpose. Significant components of the Company’s deferred tax assets and liabilities are as follows (in thousands): | |||||||||||||||||||||
December 31, | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Deferred tax assets: | |||||||||||||||||||||
Share-based compensation | $ | 12,797 | $ | 12,506 | |||||||||||||||||
Net operating loss and tax credit carry-forwards | 26,991 | 27,484 | |||||||||||||||||||
Deferred revenue | 2,808 | 3,984 | |||||||||||||||||||
Accounts receivable reserves | 537 | 1,281 | |||||||||||||||||||
Fixed assets | 5,751 | 4,904 | |||||||||||||||||||
Other | 1,209 | 921 | |||||||||||||||||||
Total deferred tax assets | 50,093 | 51,080 | |||||||||||||||||||
Deferred tax liabilities: | |||||||||||||||||||||
Intangible assets | (738 | ) | (2,103 | ) | |||||||||||||||||
Prepaid expenses | (164 | ) | (187 | ) | |||||||||||||||||
Other | (65 | ) | (160 | ) | |||||||||||||||||
Total deferred tax liabilities | (967 | ) | (2,450 | ) | |||||||||||||||||
Valuation allowance | (48,047 | ) | (46,215 | ) | |||||||||||||||||
Net deferred tax assets (liabilities) | $ | 1,079 | $ | 2,415 | |||||||||||||||||
Summary of activities associated with Company's reserve for unrecognized tax benefits interest and penalties | ' | ||||||||||||||||||||
A summary of the activities associated with the Company’s reserve for unrecognized tax benefits, interest and penalties follow (in thousands): | |||||||||||||||||||||
Unrecognized | |||||||||||||||||||||
Tax Benefits | |||||||||||||||||||||
Balance at January 1, 2012 | $ | 39 | |||||||||||||||||||
Additions for tax positions related to current year | 1,718 | ||||||||||||||||||||
Settlements | — | ||||||||||||||||||||
Reduction for tax positions of prior years | — | ||||||||||||||||||||
Balance at December 31, 2012 | 1,757 | ||||||||||||||||||||
Additions for tax positions related to current year | — | ||||||||||||||||||||
Settlements | — | ||||||||||||||||||||
Reduction for tax positions of prior years | — | ||||||||||||||||||||
Balance at December 31, 2013 | $ | 1,757 | |||||||||||||||||||
Segment_Reporting_Tables
Segment Reporting (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||
Revenue earned by geographic area | ' | |||||||||||
Revenue by geography is based on the location of the customer from which the revenue is earned. The following table sets forth revenue and long-lived assets by geographic area: | ||||||||||||
Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Revenue | ||||||||||||
Americas | $ | 118,413 | $ | 125,600 | $ | 119,865 | ||||||
EMEA | 31,401 | 30,898 | 31,697 | |||||||||
Asia Pacific | 23,619 | 23,738 | 19,730 | |||||||||
Total revenue | $ | 173,433 | $ | 180,236 | $ | 171,292 | ||||||
Long-lived assets by geographical area | ' | |||||||||||
The following table sets forth long-lived assets by geographic area: | ||||||||||||
Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Long-lived Assets | ||||||||||||
Americas | $ | 26,502 | $ | 36,513 | $ | 51,478 | ||||||
International | 8,757 | 11,125 | 14,097 | |||||||||
Total long-lived assets | $ | 35,259 | $ | 47,638 | $ | 65,575 | ||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ' | |||||||||||||||
Summary of money market funds, marketable securities, other investment-related assets and current liabilities | ' | |||||||||||||||
The following is a summary of fair value measurements at December 31, 2013: | ||||||||||||||||
Fair Value Measurements at Reporting Date Using | ||||||||||||||||
Description | Total | Quoted Prices In Active Markets for Identical Assets | Significant | Significant | ||||||||||||
(Level 1) | Other | Unobservable | ||||||||||||||
Observable | Inputs | |||||||||||||||
Inputs | (Level 3) | |||||||||||||||
(Level 2) | ||||||||||||||||
Assets: | ||||||||||||||||
Government agency bonds (1) | $ | 261 | $ | — | $ | 261 | $ | — | ||||||||
Money market funds (2) | 9,740 | 9,740 | — | — | ||||||||||||
Corporate notes and bonds (1) | 26,009 | — | 26,009 | — | ||||||||||||
Commercial paper (1) | 2,200 | — | 2,200 | — | ||||||||||||
Certificate of deposit (1) | 4,076 | — | 4,076 | — | ||||||||||||
Publicly traded common stock (1) | 6 | 6 | — | — | ||||||||||||
Total assets measured at fair value | $ | 42,292 | $ | 9,746 | $ | 32,546 | $ | — | ||||||||
____________ | ||||||||||||||||
-1 | Classified in marketable securities | |||||||||||||||
-2 | Classified in cash and cash equivalents | |||||||||||||||
The following is a summary of fair value measurements at December 31, 2012: | ||||||||||||||||
Fair Value Measurements at Reporting Date Using | ||||||||||||||||
Description | Total | Quoted Prices In Active Markets for Identical Assets | Significant | Significant | ||||||||||||
(Level 1) | Other | Unobservable | ||||||||||||||
Observable | Inputs | |||||||||||||||
Inputs | (Level 3) | |||||||||||||||
(Level 2) | ||||||||||||||||
Assets: | ||||||||||||||||
Government agency bonds (1) | $ | 6,270 | $ | — | $ | 6,270 | $ | — | ||||||||
Money market funds (2) | 14,697 | 14,697 | — | — | ||||||||||||
Corporate notes and bonds (1) | 9,529 | — | 9,529 | — | ||||||||||||
Commercial paper (1) | 500 | — | 500 | — | ||||||||||||
Certificate of deposit (1) | 2,741 | — | 2,741 | — | ||||||||||||
Publicly traded common stock (1) | 18 | 18 | — | — | ||||||||||||
Total assets measured at fair value | $ | 33,755 | $ | 14,715 | $ | 19,040 | $ | — | ||||||||
____________ | ||||||||||||||||
-1 | Classified in marketable securities | |||||||||||||||
-2 | Classified in cash and cash equivalents |
Quarterly_Financial_Results_un1
Quarterly Financial Results (unaudited) (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Quarterly Financial Data [Abstract] | ' | |||||||||||||||
Quarterly results of operations (unaudited) | ' | |||||||||||||||
The following table sets forth certain unaudited quarterly results of operations of the Company for the years ended December 31, 2013 and 2012. The information for the March 31, June 30 and September 30, 2013 quarters and each of the quarters in the year ended December 31, 2012 have been revised to reclassify certain amounts to cost of revenues, research and development and sales and marketing expenses. These costs were previously reported in general and administrative expenses. | ||||||||||||||||
In the opinion of management, this information has been prepared on the same basis as the audited consolidated financial statements and all necessary adjustments, consisting only of normal recurring adjustments, have been included in the amounts below for a fair statement of the quarterly information when read in conjunction with the audited consolidated financial statements and related notes included elsewhere in this annual report on Form 10-K (in thousands, except per share data): | ||||||||||||||||
For the Three Months Ended | ||||||||||||||||
March 31, | June 30, | Sept. 30, | Dec. 31, | |||||||||||||
2013 | 2013 | 2013 | 2013 (a) | |||||||||||||
Revenues | $ | 45,813 | $ | 42,763 | $ | 42,656 | $ | 42,200 | ||||||||
Gross profit (c) | $ | 16,777 | $ | 14,417 | $ | 15,240 | $ | 15,275 | ||||||||
Net loss from continuing operations | $ | (8,136 | ) | $ | (11,233 | ) | $ | (10,903 | ) | $ | (4,704 | ) | ||||
Net loss from discontinued operations | $ | — | $ | — | $ | (15 | ) | $ | (411 | ) | ||||||
Net loss | $ | (8,136 | ) | $ | (11,233 | ) | $ | (10,918 | ) | $ | (5,115 | ) | ||||
Basic and diluted net loss per share from continuing | $ | (0.08 | ) | $ | (0.12 | ) | $ | (0.11 | ) | $ | (0.05 | ) | ||||
operations | ||||||||||||||||
Basic and diluted net loss per share from discontinued | $ | — | $ | — | $ | — | $ | — | ||||||||
operations | ||||||||||||||||
Basic and diluted net loss per share | $ | (0.08 | ) | $ | (0.12 | ) | $ | (0.11 | ) | $ | (0.05 | ) | ||||
Basic and diluted weighted average common shares | 96,818 | 96,257 | 96,949 | 97,380 | ||||||||||||
outstanding | ||||||||||||||||
(a) See discussion of sale of Clickability in Note 4. | ||||||||||||||||
For the Three Months Ended | ||||||||||||||||
March 31, | June 30, | Sept. 30, | Dec. 31, | |||||||||||||
2012 | 2012 | 2012 (b) | 2012 | |||||||||||||
Revenues | $ | 44,316 | $ | 44,447 | $ | 45,001 | $ | 46,471 | ||||||||
Gross profit (c) | $ | 16,596 | $ | 16,517 | $ | 16,309 | $ | 17,596 | ||||||||
Net loss from continuing operations | $ | (9,697 | ) | $ | (9,437 | ) | $ | (610 | ) | $ | (10,291 | ) | ||||
Net (loss) income from discontinued operations | $ | (309 | ) | $ | (391 | ) | $ | (218 | ) | $ | (1,943 | ) | ||||
Net (loss) income | $ | (10,006 | ) | $ | (9,828 | ) | $ | (828 | ) | $ | (12,234 | ) | ||||
Basic and diluted net loss per share from continuing operations | $ | (0.09 | ) | $ | (0.10 | ) | $ | (0.01 | ) | $ | (0.10 | ) | ||||
Basic and diluted net (loss) income per share from discontinued operations | $ | (0.01 | ) | $ | — | $ | — | $ | (0.02 | ) | ||||||
Basic and diluted net (loss) income per share | $ | (0.10 | ) | $ | (0.10 | ) | $ | (0.01 | ) | $ | (0.12 | ) | ||||
Basic and diluted weighted average common shares outstanding | 104,226 | 102,783 | 99,359 | 98,765 | ||||||||||||
(b) See discussion of sale of cost basis investment in Gaikai in Note 7. | ||||||||||||||||
(c) The table below reflects reclassifications made to gross profit for the applicable periods (See Note 2): | ||||||||||||||||
Gross Profit | ||||||||||||||||
As | As | |||||||||||||||
Three Months Ended | Reported | Reclassifications | Revised | |||||||||||||
March 31, 2013 | $ | 17,081 | $ | (304 | ) | $ | 16,777 | |||||||||
June 30, 2013 | $ | 14,773 | $ | (356 | ) | $ | 14,417 | |||||||||
September 30, 2013 | $ | 15,605 | $ | (365 | ) | $ | 15,240 | |||||||||
December 31, 2013 | $ | 15,275 | $ | — | $ | 15,275 | ||||||||||
March 31, 2012 | $ | 16,986 | $ | (390 | ) | $ | 16,596 | |||||||||
June 30, 2012 | $ | 16,884 | $ | (367 | ) | $ | 16,517 | |||||||||
September 30, 2012 | $ | 16,718 | $ | (409 | ) | $ | 16,309 | |||||||||
December 31, 2012 | $ | 17,933 | $ | (337 | ) | $ | 17,596 | |||||||||
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||||||||||
Cost of services | ' | ' | ' | ' | ' | ' | ' | ' | $88,783 | [1] | $85,226 | [1] | $82,976 | [1] | ||||||||
Total cost of revenue | ' | ' | ' | ' | ' | ' | ' | ' | 111,725 | 113,218 | 111,006 | |||||||||||
Gross profit | 15,275 | [2],[3] | 15,240 | [2] | 14,417 | [2] | 16,777 | [2] | 17,596 | [2] | 16,309 | [2],[4] | 16,517 | [2] | 16,596 | [2] | 61,708 | 67,018 | 60,286 | |||
General and administrative | ' | ' | ' | ' | ' | ' | ' | ' | 31,904 | 34,500 | 30,672 | |||||||||||
Sales and marketing | ' | ' | ' | ' | ' | ' | ' | ' | 41,474 | 45,044 | 40,110 | |||||||||||
Research and development | ' | ' | ' | ' | ' | ' | ' | ' | 22,003 | 20,182 | 17,163 | |||||||||||
Total operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | 101,185 | 105,569 | 92,732 | |||||||||||
Foreign currency remeasurement gain | ' | ' | ' | ' | ' | ' | ' | ' | 531 | 103 | 0 | |||||||||||
As Reported [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Cost of services | ' | ' | ' | ' | ' | ' | ' | ' | ' | 83,723 | 81,556 | |||||||||||
Total cost of revenue | ' | ' | ' | ' | ' | ' | ' | ' | ' | 111,715 | 109,586 | |||||||||||
Gross profit | 15,275 | 15,605 | 14,773 | 17,081 | 17,933 | 16,718 | 16,884 | 16,986 | ' | 68,521 | 61,706 | |||||||||||
General and administrative | ' | ' | ' | ' | ' | ' | ' | ' | ' | 36,003 | 32,138 | |||||||||||
Sales and marketing | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40,081 | |||||||||||
Research and development | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17,146 | |||||||||||
Total operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | 107,072 | 94,152 | |||||||||||
Reclassification [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Cost of services | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,503 | 1,420 | |||||||||||
Total cost of revenue | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,503 | 1,420 | |||||||||||
Gross profit | 0 | -365 | -356 | -304 | -337 | -409 | -367 | -390 | ' | -1,503 | -1,420 | |||||||||||
General and administrative | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1,503 | -1,466 | |||||||||||
Sales and marketing | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 29 | |||||||||||
Research and development | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17 | |||||||||||
Total operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1,503 | -1,420 | |||||||||||
Foreign currency remeasurement gain | ' | ' | ' | ' | ' | ' | ' | ' | ' | $103 | ' | |||||||||||
[1] | Cost of services excludes amortization related to intangibles, including existing technologies, customer relationships, and trade names and trademarks, which are included in depreciation and amortization | |||||||||||||||||||||
[2] | The table below reflects reclassifications made to gross profit for the applicable periods (See Note 2): For the period ended March 31, 2013, gross profit was previously reported as $17,081. After reclassifications of $(304), gross profit is now reported as $16,777. For the period ended June 30, 2013, gross profit was previously reported as $14,773. After reclassifications of $(356), gross profit is now reported as $14,417. For the period ended September 30, 2013, gross profit was previously reported as $15,605. After reclassifications of $(365), gross profit is now reported as $15,240. For the period ended December 31, 2013, gross profit was previously reported as $15,275. After reclassifications of $0, gross profit is now reported as $15,275. For the period ended March 31, 2012, gross profit was previously reported as $16,986. After reclassifications of $(390), gross profit is now reported as $16,596. For the period ended June 30, 2012, gross profit was previously reported as $16,884. After reclassifications of $(367), gross profit is now reported as $16,517. For the period ended September 30, 2012, gross profit was previously reported as $16,718. After reclassifications of $(409), gross profit is now reported as $16,309. For the period ended December 31, 2012, gross profit was previously reported as $17,933. After reclassifications of $(337), gross profit is now reported as $17,596. | |||||||||||||||||||||
[3] | See discussion of sale of Clickability in Note 4 | |||||||||||||||||||||
[4] | See discussion of sale of cost basis investment in Gaikai in Note 7. |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Details Textual) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Summary of Significant Accounting Policies (Textual) [Abstract] | ' | ' | ' |
Cumulative translation adjustment | ' | ' | $494 |
Foreign exchange translation | -941 | -172 | -1,069 |
Foreign exchange translation gains (losses) | 92 | -513 | -266 |
Revenue recognized | 1,914 | 2,837 | 4,309 |
Advertising expenses | $2,754 | $2,474 | $2,290 |
Maximum [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Estimated lives of other intangible assets | 'six years | ' | ' |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies (Details2) | 12 Months Ended |
Dec. 31, 2013 | |
Network equipment [Member] | ' |
Estimated useful lives of assets | ' |
Estimated useful lives of assets | '3 years |
Computer equipment [Member] | ' |
Estimated useful lives of assets | ' |
Estimated useful lives of assets | '3 years |
Capitalized software [Member] | ' |
Estimated useful lives of assets | ' |
Estimated useful lives of assets | '3 years |
Furniture and fixtures [Member] | Minimum [Member] | ' |
Estimated useful lives of assets | ' |
Estimated useful lives of assets | '3 years |
Furniture and fixtures [Member] | Maximum [Member] | ' |
Estimated useful lives of assets | ' |
Estimated useful lives of assets | '5 years |
Other equipment [Member] | Minimum [Member] | ' |
Estimated useful lives of assets | ' |
Estimated useful lives of assets | '3 years |
Other equipment [Member] | Maximum [Member] | ' |
Estimated useful lives of assets | ' |
Estimated useful lives of assets | '7 years |
Summary_of_Significant_Account6
Summary of Significant Accounting Policies 4 (Details) (Maximum [Member]) | 12 Months Ended |
Dec. 31, 2013 | |
Maximum [Member] | ' |
Deferred Revenue Arrangement [Line Items] | ' |
Term of contract with third party | '5 years |
Investments_in_Marketable_Secu2
Investments in Marketable Securities (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Summary of marketable securities (designated as available-for-sale) | ' | ' |
Amortized Cost | $32,554 | $19,046 |
Gross Unrealized Gains | 15 | 13 |
Gross Unrealized Losses | 17 | 1 |
Estimated Fair Value | 32,552 | 19,058 |
Government agency bonds [Member] | ' | ' |
Summary of marketable securities (designated as available-for-sale) | ' | ' |
Amortized Cost | 261 | 6,266 |
Gross Unrealized Gains | 0 | 4 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 261 | 6,270 |
Certificate of deposit [Member] | ' | ' |
Summary of marketable securities (designated as available-for-sale) | ' | ' |
Amortized Cost | 4,080 | 2,741 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 4 | 0 |
Estimated Fair Value | 4,076 | 2,741 |
Commercial paper [Member] | ' | ' |
Summary of marketable securities (designated as available-for-sale) | ' | ' |
Amortized Cost | 2,200 | 500 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 2,200 | 500 |
Corporate notes and bonds [Member] | ' | ' |
Summary of marketable securities (designated as available-for-sale) | ' | ' |
Amortized Cost | 26,001 | 9,527 |
Gross Unrealized Gains | 15 | 3 |
Gross Unrealized Losses | 7 | 1 |
Estimated Fair Value | 26,009 | 9,529 |
Debt securities [Member] | ' | ' |
Summary of marketable securities (designated as available-for-sale) | ' | ' |
Amortized Cost | 32,542 | 19,034 |
Gross Unrealized Gains | 15 | 7 |
Gross Unrealized Losses | 11 | 1 |
Estimated Fair Value | 32,546 | 19,040 |
Publicly traded common stock [Member] | ' | ' |
Summary of marketable securities (designated as available-for-sale) | ' | ' |
Amortized Cost | 12 | 12 |
Gross Unrealized Gains | 0 | 6 |
Gross Unrealized Losses | 6 | 0 |
Estimated Fair Value | $6 | $18 |
Investments_in_Marketable_Secu3
Investments in Marketable Securities (Details 1) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Amortized cost and estimated fair value of marketable securities (designated as available-for-sale) by maturity | ' | ' |
Amortized Cost | $32,554 | $19,046 |
Estimated Fair Value | 32,552 | 19,058 |
Debt Securities [Member] | ' | ' |
Amortized cost and estimated fair value of marketable securities (designated as available-for-sale) by maturity | ' | ' |
Amortized Cost, Due in one year or less | 17,031 | 18,260 |
Amortized Cost, Due after one year and through five years | 15,511 | 774 |
Amortized Cost | 32,542 | 19,034 |
Gross Unrealized Gains, Due in one year or less | 2 | 6 |
Gross Unrealized Gains, Due after one year and through five years | 13 | 1 |
Gross Unrealized Gains | 15 | 7 |
Gross Unrealized Losses, Due in one year or less | 5 | 1 |
Gross Unrealized Losses, Due after one year and through five years | 6 | 0 |
Gross Unrealized Losses | 11 | 1 |
Estimated Fair Value, Due in one year or less | 17,028 | 18,265 |
Estimated Fair Value, Due after one year and through five years | 15,518 | 775 |
Estimated Fair Value | $32,546 | $19,040 |
Business_Disposition_Details
Business Disposition (Details) (USD $) | 12 Months Ended | 0 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 23, 2013 |
Clickability, Inc. [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' |
Percentage of stock sold | ' | ' | ' | 100.00% |
Proceeds from sale of business | $12,341 | $0 | $0 | $12,341 |
Goodwill | 3,799 | ' | ' | 3,799 |
Gain on sale of business | $3,836 | $0 | $0 | $3,836 |
Discontinued_Operations_Detail
Discontinued Operations (Details Textual) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 01, 2011 | |
Discontinued Operations and Disposal Groups [Abstract] | ' | ' | ' | ' |
Amount of net proceeds from sale | ' | ' | ' | $61,000,000 |
Amount of gross proceeds from sale | ' | ' | ' | 66,000,000 |
Amount of net proceeds from sale held in escrow | ' | ' | ' | 5,000,000 |
Estimated receivable from DG | 0 | 536,000 | 10,854,000 | 10,854,000 |
Discontinued Operations (Textual) [Abstract] | ' | ' | ' | ' |
Allowance for doubtful accounts | 412,000 | 2,060,000 | ' | ' |
Net Working Capital adjustments claims | ' | 818,000 | ' | ' |
Discontinued Operations (Additional Textual) [Abstract] | ' | ' | ' | ' |
Discontinued operations charged | ' | 2,861,000 | ' | ' |
Gain on sale of discontinued operations, net of income taxes | -411,000 | -3,024,000 | 14,756,000 | ' |
Realization of foreign currency translation adjustment gains | ' | ' | 400,000 | ' |
Unrealized losses on investments | ' | ' | 100,000 | ' |
General corporate overhead costs allocated to discontinued operations | 0 | ' | ' | ' |
DG Fast Channel, Inc. [Member] | ' | ' | ' | ' |
Discontinued Operations (Textual) [Abstract] | ' | ' | ' | ' |
Allowance for doubtful accounts | ' | 2,060,000 | ' | ' |
Net Working Capital adjustments claims | ' | $818,000 | ' | ' |
Discontinued_Operations_Detail1
Discontinued Operations (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 01, 2011 |
Summary of activity related to receivable | ' | ' | ' |
Beginning balance | $536 | $10,854 | $10,854 |
Payments received from DG | -124 | -7,440 | ' |
Allowance for doubtful accounts receivable and other receivables adjustments | -412 | -2,060 | ' |
Net Working Capital adjustments | ' | -818 | ' |
Ending balance | $0 | $536 | $10,854 |
Discontinued_Operations_Detail2
Discontinued Operations (Details 1) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
Operating results of discontinued operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $0 | $22,302 | ||
Cost of revenues | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | -8,843 | ||
General and administrative expenses | ' | ' | ' | ' | ' | ' | ' | ' | -15 | 163 | -6,055 | ||
Sales and marketing expenses | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | -8,183 | ||
Research and development expenses | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | -4,853 | ||
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | -3,761 | ||
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | -16 | ||
Interest income | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 21 | ||
Other (expense) income | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | -525 | ||
(Loss) gain on sale of discontinued operations, net of income taxes | ' | ' | ' | ' | ' | ' | ' | ' | -411 | -3,024 | 14,756 | ||
(Loss) income before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | -426 | -2,861 | 4,843 | ||
Income tax expense | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | -65 | ||
(Loss) income from discontinued operations | ($411) | [1] | ($15) | $0 | $0 | ($1,943) | ($218) | [2] | ($391) | ($309) | ($426) | ($2,861) | $4,778 |
(Loss) income from discontinued operations per weighted average share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Basic (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ($0.01) | ($0.02) | $0.05 | ||
Diluted (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ($0.01) | ($0.02) | $0.05 | ||
Shares used in per weighted average share calculation for discontinued operations: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Basic and diluted (shares) | ' | ' | ' | ' | ' | ' | ' | ' | 96,851 | 101,283 | 109,236 | ||
[1] | See discussion of sale of Clickability in Note 4 | ||||||||||||
[2] | See discussion of sale of cost basis investment in Gaikai in Note 7. |
Accounts_Receivable_net_Detail
Accounts Receivable, net (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Summary of Accounts receivable, net | ' | ' |
Accounts receivable | $17,497 | $23,675 |
Unbilled accounts receivable | 5,943 | 6,997 |
Total accounts receivable, gross | 23,440 | 30,672 |
Less: credit allowance | -610 | -640 |
Less: allowance for doubtful accounts | -1,400 | -3,430 |
Total accounts receivable, net | $21,430 | $26,602 |
Prepaid_Expenses_and_Other_Cur2
Prepaid Expenses and Other Current Assets (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Aug. 31, 2012 |
In Thousands, unless otherwise specified | |||
Summary of Prepaid expenses and other current assets | ' | ' | ' |
Prepaid bandwidth and backbone services | $2,045 | $3,614 | ' |
Non-income taxes receivable (VAT) | 1,588 | 1,739 | ' |
Gaikai sale escrow receivable | 0 | 1,237 | 1,237 |
Receivable from DG (see note 5) | 0 | 536 | ' |
Employee advances and prepaid recoverable commissions | 189 | 551 | ' |
Vendor deposits and other | 4,370 | 4,631 | ' |
Total prepaid expenses and other current assets | $8,192 | $12,308 | ' |
Prepaid_Expenses_and_Other_Cur3
Prepaid Expenses and Other Current Assets (Details Textual) (USD $) | 1 Months Ended | 12 Months Ended | |||
Nov. 30, 2013 | Aug. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Prepaid Expenses and Other Current Assets (Textual) [Abstract] | ' | ' | ' | ' | ' |
Gain on sale of cost investment | ' | ' | $0 | $9,420,000 | $0 |
Carrying value of the Gaikai | ' | 2,000,000 | ' | ' | ' |
Aggregate selling price | ' | 11,400,000 | ' | ' | ' |
Aggregate selling price held in escrow | ' | 1,237,000 | 0 | 1,237,000 | ' |
Potential indemnification claims period | ' | '15 months | ' | ' | ' |
Proceeds from escrow receivable and interest | 1,246,000 | ' | ' | ' | ' |
Proceeds from the sale of cost basis investment | 1,237,000 | 10,154,000 | 1,237,000 | 10,154,000 | 0 |
Interest income on proceeds from escrow receivable | 9 | ' | ' | ' | ' |
Termination fees | ' | ' | ' | $1,300,000 | ' |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets (Details Textual) (USD $) | 0 Months Ended | 1 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' | ' | ' | ' |
Estimated fair value of goodwill | $24,800 | $33,100 | $33,100 | ' | ' |
Percentage of estimated fair value of goodwill exceeding carrying value | 11.00% | 14.00% | ' | ' | ' |
Control premium used to determine fair value of goodwill | ' | ' | 40.00% | ' | ' |
Aggregate expense related to amortization of other intangible assets | ' | ' | 2,843 | 2,871 | 2,350 |
2014 | ' | 1,159 | 1,159 | ' | ' |
2015 | ' | 892 | 892 | ' | ' |
2016 | ' | 303 | 303 | ' | ' |
2017 | ' | $0 | $0 | ' | ' |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of changes in the carrying amount of goodwill | ' | ' |
Beginning Balance | $80,278 | $80,105 |
Foreign currency translation adjustment | 556 | 173 |
Disposition of the WCM business | -3,799 | ' |
Ending Balance | $77,035 | $80,278 |
Goodwill_and_Other_Intangible_4
Goodwill and Other Intangible Assets (Details 1) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of other intangible assets subject to amortization | ' | ' |
Gross Carrying Amount | $6,314 | $12,008 |
Accumulated Amortization | -3,960 | -5,621 |
Net Carrying Amount | 2,354 | 6,387 |
Existing technologies [Member] | ' | ' |
Schedule of other intangible assets subject to amortization | ' | ' |
Gross Carrying Amount | 6,164 | 8,436 |
Accumulated Amortization | -3,875 | -4,035 |
Net Carrying Amount | 2,289 | 4,401 |
Weighted average amortization period | '4 years 8 months 12 days | ' |
Customer relationships [Member] | ' | ' |
Schedule of other intangible assets subject to amortization | ' | ' |
Gross Carrying Amount | 150 | 3,412 |
Accumulated Amortization | -85 | -1,427 |
Net Carrying Amount | 65 | 1,985 |
Weighted average amortization period | '6 years | ' |
Trade names and trademark [Member] | ' | ' |
Schedule of other intangible assets subject to amortization | ' | ' |
Gross Carrying Amount | ' | 160 |
Accumulated Amortization | ' | -159 |
Net Carrying Amount | ' | $1 |
Property_and_Equipment_Details
Property and Equipment (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Property and equipment, net | ' | ' |
Property and equipment, gross | $202,424 | $188,848 |
Less: accumulated depreciation | -169,519 | -147,597 |
Total property and equipment, net | 32,905 | 41,251 |
Network equipment [Member] | ' | ' |
Property and equipment, net | ' | ' |
Property and equipment, gross | 180,896 | 168,637 |
Computer equipment [Member] | ' | ' |
Property and equipment, net | ' | ' |
Property and equipment, gross | 11,073 | 10,398 |
Furniture and fixtures [Member] | ' | ' |
Property and equipment, net | ' | ' |
Property and equipment, gross | 2,723 | 2,595 |
Leasehold improvements [Member] | ' | ' |
Property and equipment, net | ' | ' |
Property and equipment, gross | 7,162 | 6,684 |
Other equipment [Member] | ' | ' |
Property and equipment, net | ' | ' |
Property and equipment, gross | $570 | $534 |
Property_and_Equipment_Details1
Property and Equipment (Details Textual) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Property and Equipment (Textual) [Abstract] | ' | ' | ' |
Cost of services depreciation | $22,942 | $27,992 | $28,030 |
Operating expense depreciation | $2,961 | $2,972 | $2,437 |
Other_Assets_Details
Other Assets (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Other assets | ' | ' |
Prepaid bandwidth and backbone services | $4,268 | $5,799 |
Vendor deposits and other | 1,835 | 729 |
Deferred expenses | 0 | 207 |
Total other assets | $6,103 | $6,735 |
Other_Current_Liabilities_Deta
Other Current Liabilities (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Other current liabilities | ' | ' |
Accrued compensation and benefits | $6,682 | $6,703 |
Accrued cost of revenue | 1,833 | 2,307 |
Accrued legal fees | 1,769 | 1,591 |
Indirect taxes payable | 639 | 1,029 |
Customer deposits | 635 | 361 |
Other accrued expenses | 3,464 | 2,875 |
Total other current liabilities | $15,022 | $14,866 |
Other_Long_Term_Liabilities_De
Other Long Term Liabilities (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Other long term liabilities | ' | ' |
Deferred rent | $3,384 | $3,543 |
Income taxes payable | 121 | 1,718 |
Total other long term liabilities | $3,505 | $5,261 |
Contingencies_Details
Contingencies (Details) (USD $) | 0 Months Ended | 1 Months Ended | 12 Months Ended | ||||
Apr. 24, 2009 | Feb. 29, 2008 | Dec. 31, 2007 | Dec. 31, 2008 | Dec. 31, 2013 | Sep. 30, 2006 | Jun. 30, 2006 | |
Claim | Patent | Patent | |||||
Contingencies (Textual) [Abstract] | ' | ' | ' | ' | ' | ' | ' |
Number of patents Company was infringing | ' | ' | ' | ' | ' | 3 | 2 |
Number of claims Company infringed | ' | 4 | ' | ' | ' | ' | ' |
Aggregate of lost profits, reasonable royalties and price erosion damages | ' | ' | $45,500,000 | ' | ' | ' | ' |
Prejudgment interest | ' | ' | 2,600,000 | ' | ' | ' | ' |
Provision for litigation | ' | ' | 48,100,000 | 65,600,000 | 0 | ' | ' |
Period increase (decrease) in loss contingency accrual | -65,600,000 | ' | ' | ' | ' | ' | ' |
Additional provision | ' | ' | ' | $17,500,000 | ' | ' | ' |
Net_Loss_per_Share_Details
Net Loss per Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
Computation of basic and diluted net income (loss) per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Net loss from continuing operations | ($4,704) | [1] | ($10,903) | ($11,233) | ($8,136) | ($10,291) | ($610) | [2] | ($9,437) | ($9,697) | ($34,976) | ($30,035) | ($30,066) |
(Loss) income from discontinued operations, net of income taxes | -411 | [1] | -15 | 0 | 0 | -1,943 | -218 | [2] | -391 | -309 | -426 | -2,861 | 4,778 |
Net loss | ($5,115) | [1] | ($10,918) | ($11,233) | ($8,136) | ($12,234) | ($828) | [2] | ($9,828) | ($10,006) | ($35,402) | ($32,896) | ($25,288) |
Basic weighted average shares of common stock (shares) | ' | ' | ' | ' | ' | ' | ' | ' | 96,851 | 101,283 | 109,236 | ||
Dilutive effect of stock options and restricted stock units (shares) | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | ||
Diluted weighted average shares of common stock (shares) | ' | ' | ' | ' | ' | ' | ' | ' | 96,851 | 101,283 | 109,236 | ||
Basic and diluted income (loss) per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Continuing operations (in dollars per share) | ($0.05) | [1] | ($0.11) | ($0.12) | ($0.08) | ($0.10) | ($0.01) | [2] | ($0.10) | ($0.09) | ($0.36) | ($0.30) | ($0.28) |
Discontinued operations (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ($0.01) | ($0.02) | $0.05 | ||
Basic and diluted net loss per share (in dollars per share) | ($0.05) | [1] | ($0.11) | ($0.12) | ($0.08) | ($0.12) | ($0.01) | [2] | ($0.10) | ($0.10) | ($0.37) | ($0.32) | ($0.23) |
[1] | See discussion of sale of Clickability in Note 4 | ||||||||||||
[2] | See discussion of sale of cost basis investment in Gaikai in Note 7. |
Net_Loss_per_Share_Details_Tex
Net Loss per Share (Details Textual) (Stock options and restricted stock (RSUs) [Member]) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Stock options and restricted stock (RSUs) [Member] | ' | ' | ' |
Net Loss per Share (Textual) [Abstract] | ' | ' | ' |
Excluded outstanding options and restricted stock units | 1,986 | 2,273 | 4,427 |
Stockholders_Equity_Details
Stockholders' Equity (Details) (USD $) | 12 Months Ended | 28 Months Ended | |||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 |
Employee Stock Purchase Plan [Member] | Employee Stock Purchase Plan [Member] | Employee Stock Purchase Plan [Member] | Share Repurchase Program [Member] | ||||
Equity, Class of Treasury Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Cash paid for common stock including commissions | ' | ' | ' | ' | ' | ' | $50,736 |
Stock repurchased and retired during period (shares) | ' | ' | ' | ' | ' | ' | 19,990,423 |
Average cost per share of repurchased shares (in dollars per share) | ' | ' | ' | ' | ' | ' | $2.55 |
Discount from market price for employees | ' | ' | ' | 15.00% | ' | ' | ' |
Issuance of common stock under employee stock purchase plan, shares | ' | ' | ' | 135,271 | ' | ' | ' |
Proceeds received for stock issued | 225 | 0 | 0 | 225 | ' | ' | ' |
Number of shares authorized under plan | ' | ' | ' | 4,000,000 | ' | ' | ' |
Employee funds held by Company for future purchase of shares | ' | ' | ' | 26 | ' | ' | ' |
Share-based compensation | $12,345 | $14,475 | $15,881 | $57 | $0 | $0 | ' |
Issuance of common stock for contingent consideration, Shares | 10,915 | ' | ' | ' | ' | ' | ' |
Common Stock reserved for future options and restricted stock awards (shares) | 5,162,930 | ' | ' | ' | ' | ' | ' |
Issuance of preferred stock authorized | 7,500,000 | 7,500,000 | ' | ' | ' | ' | ' |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Decrease in Accumulated Other Comprehensive Income [Roll Forward] | ' | ' | ' |
Beginning balance | ($709) | ($509) | ' |
Other comprehensive loss before reclassifications | -954 | -200 | ' |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | ' |
Other comprehensive loss, net of tax | -954 | -200 | -838 |
Ending balance | -1,663 | -709 | -509 |
Foreign Currency [Member] | ' | ' | ' |
Decrease in Accumulated Other Comprehensive Income [Roll Forward] | ' | ' | ' |
Beginning balance | -747 | -575 | ' |
Other comprehensive loss before reclassifications | -941 | -172 | ' |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | ' |
Other comprehensive loss, net of tax | -941 | -172 | ' |
Ending balance | -1,688 | -747 | ' |
Unrealized Gains (Losses) on Available for Sale Securities [Member] | ' | ' | ' |
Decrease in Accumulated Other Comprehensive Income [Roll Forward] | ' | ' | ' |
Beginning balance | 38 | 66 | ' |
Other comprehensive loss before reclassifications | -13 | -28 | ' |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | ' |
Other comprehensive loss, net of tax | -13 | -28 | ' |
Ending balance | $25 | $38 | ' |
ShareBased_Compensation_Detail
Share-Based Compensation (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Stock option activity | ' | ' | ' |
Number of Shares, Beginning Balance | 14,310 | 13,348 | 12,008 |
Number of Shares, Granted | 4,902 | 2,972 | 4,675 |
Number of Shares, Exercised | -143 | -176 | -262 |
Number of Shares, Cancelled | -3,087 | -1,834 | -3,073 |
Number of Shares, Ending Balance | 15,982 | 14,310 | 13,348 |
Weighted Average Exercise Price | ' | ' | ' |
Weighted Average Exercise Price, Beginning Balance | $4.58 | $5.23 | $4.94 |
Weighted Average Exercise Price, Granted | $2.19 | $2.40 | $5.68 |
Weighted Average Exercise Price, Exercised | $0.26 | $1.08 | $2.30 |
Weighted Average Exercise Price, Cancelled | $3.87 | $6.10 | $5.04 |
Weighted Average Exercise Price, Ending Balance | $4 | $4.58 | $5.23 |
ShareBased_Compensation_Detail1
Share-Based Compensation (Details 1) (USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 |
Outstanding stock options | ' |
Options Outstanding, Number of Options Outstanding | 15,982 |
Options Exercisable, Number of Options Exercisable | 9,984 |
Stock options [Member] | $ 0.00 — $ 1.50 [Member] | ' |
Outstanding stock options | ' |
Exercise price range, lower range limit | $0 |
Exercise price range, upper range limit | $1.50 |
Options Outstanding, Number of Options Outstanding | 569 |
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | '2 years 2 months 12 days |
Options Outstanding, Weighted Average Exercise Price | $0.36 |
Options Exercisable, Number of Options Exercisable | 569 |
Options Exercisable, Weighted Average Exercise Price | $0.36 |
Stock options [Member] | $ 1.51 — $ 3.00 [Member] | ' |
Outstanding stock options | ' |
Exercise price range, lower range limit | $1.51 |
Exercise price range, upper range limit | $3 |
Options Outstanding, Number of Options Outstanding | 6,661 |
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | '8 years 4 months 28 days |
Options Outstanding, Weighted Average Exercise Price | $2.17 |
Options Exercisable, Number of Options Exercisable | 1,606 |
Options Exercisable, Weighted Average Exercise Price | $2.11 |
Stock options [Member] | $ 3.01 — $ 4.50 [Member] | ' |
Outstanding stock options | ' |
Exercise price range, lower range limit | $3.01 |
Exercise price range, upper range limit | $4.50 |
Options Outstanding, Number of Options Outstanding | 3,640 |
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | '5 years 4 months 13 days |
Options Outstanding, Weighted Average Exercise Price | $3.77 |
Options Exercisable, Number of Options Exercisable | 3,269 |
Options Exercisable, Weighted Average Exercise Price | $3.76 |
Stock options [Member] | $ 4.51 — $ 6.00 [Member] | ' |
Outstanding stock options | ' |
Exercise price range, lower range limit | $4.51 |
Exercise price range, upper range limit | $6 |
Options Outstanding, Number of Options Outstanding | 2,070 |
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | '5 years 10 months 13 days |
Options Outstanding, Weighted Average Exercise Price | $5.18 |
Options Exercisable, Number of Options Exercisable | 1,700 |
Options Exercisable, Weighted Average Exercise Price | $5.13 |
Stock options [Member] | $ 6.01 — $ 7.50 [Member] | ' |
Outstanding stock options | ' |
Exercise price range, lower range limit | $6.01 |
Exercise price range, upper range limit | $7.50 |
Options Outstanding, Number of Options Outstanding | 1,759 |
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | '3 years 4 months 24 days |
Options Outstanding, Weighted Average Exercise Price | $6.46 |
Options Exercisable, Number of Options Exercisable | 1,685 |
Options Exercisable, Weighted Average Exercise Price | $6.46 |
Stock options [Member] | $ 7.51 — $ 15.00 [Member] | ' |
Outstanding stock options | ' |
Exercise price range, lower range limit | $7.51 |
Exercise price range, upper range limit | $15 |
Options Outstanding, Number of Options Outstanding | 1,283 |
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | '3 years 10 months 13 days |
Options Outstanding, Weighted Average Exercise Price | $10.56 |
Options Exercisable, Number of Options Exercisable | 1,155 |
Options Exercisable, Weighted Average Exercise Price | $10.83 |
ShareBased_Compensation_Detail2
Share-Based Compensation (Details 2) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Grant date fair value of option | ' | ' | ' |
Expected volatility | 77.96% | 78.10% | 72.25% |
Expected term, years | '6 years 0 months 18 days | '5 years 10 months 17 days | '6 years 29 days |
Risk-free interest | 1.31% | 0.91% | 2.14% |
Expected dividends | 0.00% | 0.00% | 0.00% |
ShareBased_Compensation_Detail3
Share-Based Compensation (Details 3) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | ||||
Service Based Restricted Stock Units RSU [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Units outstanding | 5,286 | 4,232 | 3,392 | ' |
Performance Based Restricted Stock Units RSU [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Units outstanding | 0 | 349 | 459 | ' |
Restricted Stock Units (RSUs) [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Units outstanding | 5,286 | 4,581 | 3,851 | 2,627 |
ShareBased_Compensation_Detail4
Share-Based Compensation (Details 4) (Restricted Stock Units (RSUs) [Member], USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Restricted Stock Units (RSUs) [Member] | ' | ' | ' |
Restricted stock units (RSUs) outstanding | ' | ' | ' |
Number of Units, Beginning Balance | 4,581 | 3,851 | 2,627 |
Number of Units, Granted | 4,970 | 4,085 | 2,829 |
Number of Units, Vested | -2,032 | -2,450 | -986 |
Number of Units, Cancelled | -2,233 | -905 | -619 |
Number of Units, Ending Balance | 5,286 | 4,581 | 3,851 |
Weighted Average Fair Value | ' | ' | ' |
Weighted Average Fair Value, Beginning Balance | $2.74 | $3.66 | $4.31 |
Weighted Average Fair Value, Granted | $2.15 | $2.37 | $3.32 |
Weighted Average Fair Value, Vested | $2.53 | $2.68 | $4.09 |
Weighted Average Fair Value, Cancelled | $2.78 | $3.17 | $4.04 |
Weighted Average Fair Value, Ending Balance | $2.24 | $2.74 | $3.66 |
ShareBased_Compensation_Detail5
Share-Based Compensation (Details 5) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Components of share-based compensation expense | ' | ' | ' |
Share-based compensation | $12,345 | $14,475 | $15,881 |
Cost of services [Member] | ' | ' | ' |
Components of share-based compensation expense | ' | ' | ' |
Share-based compensation | 1,873 | 2,117 | 2,419 |
General and administrative expense [Member] | ' | ' | ' |
Components of share-based compensation expense | ' | ' | ' |
Share-based compensation | 5,971 | 6,511 | 6,132 |
Sales and marketing expense [Member] | ' | ' | ' |
Components of share-based compensation expense | ' | ' | ' |
Share-based compensation | 2,245 | 3,104 | 3,776 |
Research and development expense [Member] | ' | ' | ' |
Components of share-based compensation expense | ' | ' | ' |
Share-based compensation | 2,256 | 2,743 | 3,554 |
Stock options [Member] | ' | ' | ' |
Components of share-based compensation expense | ' | ' | ' |
Share-based compensation | 6,617 | 7,426 | 9,568 |
Restricted stock awards and units [Member] | ' | ' | ' |
Components of share-based compensation expense | ' | ' | ' |
Share-based compensation | 5,671 | 7,049 | 6,313 |
Employee Stock Purchase Plan [Member] | ' | ' | ' |
Components of share-based compensation expense | ' | ' | ' |
Share-based compensation | $57 | $0 | $0 |
ShareBased_Compensation_Detail6
Share-Based Compensation (Details Textual) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Weighted average period of unvested stock compensation | '2 years 6 months 11 days | ' | ' |
Share-Based Compensation (Textual) [Abstract] | ' | ' | ' |
Exercise price of incentive stock options granted under the Plan may not be granted | 100.00% | ' | ' |
Weighted-average grant-date fair value of options granted | $1.48 | $1.60 | $3.70 |
Total intrinsic value of the options exercised | $265 | $309 | $801 |
Aggregate intrinsic value of options outstanding | 1,113 | ' | ' |
Weighted average remaining contractual options period exercisable | '4 years 9 months 18 days | ' | ' |
Unrecognized share-based compensation expense related to stock options | 8,186 | ' | ' |
Share-based compensation related to stock options | 6,617 | 7,426 | 9,568 |
Unrecognized share-based compensation expense total | 16,974 | ' | ' |
Unrecognized share-based compensation expense related to restricted stock awards | 8,788 | ' | ' |
Share-based compensation | 12,345 | 14,475 | 15,881 |
Restricted Stock Units (RSUs) [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Weighted average period of unvested stock compensation | '2 years 6 months 18 days | ' | ' |
Weighted-average grant-date fair value of RSUs granted | $2.15 | $2.37 | $3.32 |
Aggregate intrinsic value of restricted stock units outstanding | 10,467 | ' | ' |
Share-based payment compensation related to restricted stock awards and restricted stock units | 5,671 | 7,049 | 6,313 |
Total intrinsic value of the units vested | $5,117,000 | $5,400,000 | $2,900,000 |
Share-Based Compensation (Textual) [Abstract] | ' | ' | ' |
Share-based compensation | 5,671 | 7,049 | 6,313 |
Stock options [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Weighted average period of unvested stock compensation | '2 years 6 months | ' | ' |
Share-Based Compensation (Textual) [Abstract] | ' | ' | ' |
Share-based compensation | $6,617 | $7,426 | $9,568 |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 12 Months Ended | 1 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2007 | Jul. 31, 2006 |
Series B Preferred Stock [Member] | Series B Preferred Stock [Member] | ||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' |
Aggregate issuance of Series B Preferred Stock | ' | ' | ' | ' | 39,869,960 |
Aggregate issuance of Series B Preferred Stock, purchase price | ' | ' | ' | ' | $3.26 |
Basis of conversion of Series B Convertible Preferred Stock into shares of common stock | ' | ' | ' | 'on a 1-for-1 share basis | ' |
Ownership percentage | 31.00% | 31.00% | 29.00% | ' | ' |
Invoiced for office space rental | ' | $16 | $71 | ' | ' |
Percentage of revenue derived from related parties | 1.00% | 1.00% | 1.00% | ' | ' |
Total outstanding accounts receivable from all related parties | 7 | 1,300 | 400 | ' | ' |
Related party expense for services | $154 | ' | ' | ' | ' |
Leases_and_Commitments_Details
Leases and Commitments (Details) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Future minimum lease payments over remaining lease periods | ' |
2014 | $3,887 |
2015 | 3,242 |
2016 | 2,621 |
2017 | 2,213 |
2018 and thereafter | 3,387 |
Total minimum payments | $15,350 |
Leases_and_Commitments_Details1
Leases and Commitments (Details 1) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Minimum purchase commitments | ' |
2014 | $32,728 |
2015 | 18,674 |
2016 | 4,831 |
2017 | 873 |
2018 and thereafter | 382 |
Total minimum payments | $57,488 |
Leases_and_Commitments_Details2
Leases and Commitments (Details Textual) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Leases and Commitments (Textual) [Abstract] | ' | ' | ' |
Rent and operating expense relating to operating lease agreements and bandwidth and co-location agreements | $61,693 | $58,818 | $60,140 |
Outstanding balance for capital leases | 824 | 2,125 | ' |
Recorded assets under capital lease obligations | 2,312 | 5,100 | ' |
Related accumulated amortization total | 1,878 | 2,900 | ' |
Average interest rate on outstanding capital leases | 6.00% | ' | ' |
Interest expense related to capital leases | $76 | $170 | $186 |
Leases_and_Commitments_Details3
Leases and Commitments (Details 2) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Future minimum capital lease payments | ' | ' |
2014 | $498 | ' |
2015 | 238 | ' |
2016 | 133 | ' |
2017 | 5 | ' |
2018 and thereafter | 0 | ' |
Total | 874 | ' |
Amounts representing interest | -50 | ' |
Present value of minimum lease payments | $824 | $2,125 |
Concentrations_Details
Concentrations (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Concentrations (Textual) [Abstract] | ' | ' | ' |
Percentage of Company's total revenue from Netflix | 11.00% | 11.00% | 11.00% |
Revenue from foreign sources | $55,020 | $54,636 | $51,427 |
Foreign countries accounting specified percentage of revenue | 'No single country outside of the United States accounted for 10% or more of the Company 's total revenues during those periods | 'Company had two countries, Japan and the United States that accounted for 10% or more of the Company's total revenues during those periods | 'No single country outside of the United States accounted for 10% or more of the Company 's total revenues during those periods |
Criteria for identifying major country as percentage of revenue | 10.00% | ' | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
(Loss) income before income taxes: | ' | ' | ' |
United States | ($34,789) | ($29,991) | ($30,438) |
Foreign | 200 | 437 | -1,866 |
Loss from continuing operations before income taxes | ($34,589) | ($29,554) | ($32,304) |
Income_Taxes_Details_1
Income Taxes (Details 1) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Current: | ' | ' | ' |
Federal | $0 | $0 | $0 |
State | 80 | -20 | 198 |
Foreign | 442 | 558 | 550 |
Total current | 522 | 538 | 748 |
Deferred: | ' | ' | ' |
Federal | 16 | 16 | -2,571 |
State | 0 | 0 | 0 |
Foreign | -151 | -73 | -415 |
Total deferred | -135 | -57 | -2,986 |
Total (benefit) provision | $387 | $481 | ($2,238) |
Income_Taxes_Details_2
Income Taxes (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | ' | ' | ' |
U.S. federal statutory tax | ($12,106) | ($10,344) | ($11,306) |
Impact related to sale of discontinued operations | 0 | 0 | 7,893 |
Valuation allowance | 12,958 | 10,329 | 52 |
Foreign income taxes | 221 | 351 | 797 |
State income taxes | 80 | -20 | 198 |
Non-deductible expenses | -783 | 168 | 136 |
Uncertain tax positions | 14 | -18 | -9 |
Share based compensation | 0 | 0 | 0 |
Other | 3 | 15 | 1 |
Total (benefit) provision | $387 | $481 | ($2,238) |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ' | ' | ' |
U.S. federal statutory tax rate | 35.00% | 35.00% | 35.00% |
Impact related to sale of discontinued operations rate | 0.00% | 0.00% | -24.00% |
Valuation allowance rate | -37.00% | -35.00% | 0.00% |
Foreign income taxes rate | -1.00% | -1.00% | -3.00% |
State income taxes rate | 0.00% | 0.00% | -1.00% |
Non-deductible expenses, rate | 2.00% | -1.00% | 0.00% |
Uncertain tax positions rate | 0.00% | 0.00% | 0.00% |
Share based compensation rate | 0.00% | 0.00% | 0.00% |
Other rate | 0.00% | 0.00% | 0.00% |
Provision for (benefit from) income taxes rate | -1.00% | -2.00% | 7.00% |
Income_Taxes_Details_3
Income Taxes (Details 3) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ' | ' |
Share-based compensation | $12,797 | $12,506 |
Net operating loss and tax credit carry forwards | 26,991 | 27,484 |
Deferred revenue | 2,808 | 3,984 |
Accounts receivable reserves | 537 | 1,281 |
Fixed assets | 5,751 | 4,904 |
Other | 1,209 | 921 |
Total deferred tax assets | 50,093 | 51,080 |
Deferred tax liabilities: | ' | ' |
Intangible assets | -738 | -2,103 |
Prepaid expenses | -164 | -187 |
Other | -65 | -160 |
Total deferred tax liabilities | -967 | -2,450 |
Valuation allowance | -48,047 | -46,215 |
Net deferred tax assets (liabilities) | $1,079 | $2,415 |
Income_Taxes_Details_4
Income Taxes (Details 4) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ' | ' |
Beginning balance | $1,757 | $39 |
Additions for tax positions related to current year | 0 | 1,718 |
Settlements | 0 | 0 |
Reduction for tax positions of prior years | 0 | 0 |
Ending balance | $1,757 | $1,757 |
Income_Taxes_Details_Textual
Income Taxes (Details Textual) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | ' | ' |
Deferred tax asst related to Property Plant and Equipment | $5,751 | $4,904 |
Total deferred tax assets | 50,093 | 51,080 |
Operating Loss Carryforwards [Line Items] | ' | ' |
Valuation allowance of deferred tax assets | 1,600 | 1,600 |
Deferred tax liability | 250 | 400 |
Interest and penalties accrual related to unrecognized tax benefits | 94 | ' |
Decrease in unrecognized tax benefits | 14 | ' |
Years subject to examination | '2009 through 2012 | ' |
Undistributed earnings | 1,600 | ' |
Federal [Member] | ' | ' |
Operating Loss Carryforwards [Line Items] | ' | ' |
Net operating loss carryforwards | 79,300 | ' |
Expiration of net operating losses | '2019 | ' |
Tax Credit Carryforward, Amount | 300 | ' |
Tax Credit Carryforward Expiration Year | '2026 | ' |
State [Member] | ' | ' |
Operating Loss Carryforwards [Line Items] | ' | ' |
Net operating loss carryforwards | 59,200 | ' |
Expiration of net operating losses | '2014 | ' |
Tax Credit Carryforward, Amount | 340 | ' |
Tax Credit Carryforward Expiration Year | '2014 | ' |
Unrecorded Tax Benefits [Member] | ' | ' |
Operating Loss Carryforwards [Line Items] | ' | ' |
Net operating loss carryforwards | $10,350 | $10,000 |
401k_Plan_Details
401(k) Plan (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
401(k) Plan (Textual) [Abstract] | ' | ' | ' |
Percentage of compensation for dollar-for-dollar match on eligible employee's deferral | 3.00% | ' | ' |
Percentage of match on next 2% of employee deferrals | 50.00% | ' | ' |
Percentage of employee compensation for 50% match on employees deferral | 2.00% | ' | ' |
Matching contributions | $1,196 | $1,101 | $918 |
Segment_Reporting_Details
Segment Reporting (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
Revenue earned by geographic area | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Revenues | $42,200 | [1] | $42,656 | $42,763 | $45,813 | $46,471 | $45,001 | [2] | $44,447 | $44,316 | $173,433 | $180,236 | $171,292 |
Americas [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Revenue earned by geographic area | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 118,413 | 125,600 | 119,865 | ||
EMEA [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Revenue earned by geographic area | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 31,401 | 30,898 | 31,697 | ||
Asia Pacific [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Revenue earned by geographic area | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | $23,619 | $23,738 | $19,730 | ||
[1] | See discussion of sale of Clickability in Note 4 | ||||||||||||
[2] | See discussion of sale of cost basis investment in Gaikai in Note 7. |
Segment_Reporting_Details_1
Segment Reporting (Details 1) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Long-lived assets by geographical area | ' | ' | ' |
Long-lived Assets | $35,259 | $47,638 | $65,575 |
Americas [Member] | ' | ' | ' |
Long-lived assets by geographical area | ' | ' | ' |
Long-lived Assets | 26,502 | 36,513 | 51,478 |
International [Member] | ' | ' | ' |
Long-lived assets by geographical area | ' | ' | ' |
Long-lived Assets | $8,757 | $11,125 | $14,097 |
Segment_Reporting_Details_Text
Segment Reporting (Details Textual) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
Segment | |||||||||||||
Location | |||||||||||||
Segment Reporting [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Number of industry segment | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ||
Number of geographic areas | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Reclassification of revenue between geographic segments, increase (decrease) | $42,200 | [1] | $42,656 | $42,763 | $45,813 | $46,471 | $45,001 | [2] | $44,447 | $44,316 | $173,433 | $180,236 | $171,292 |
Reclassification of long-lived assets between geographic segments increase (decrease) | 35,259 | ' | ' | ' | 47,638 | ' | ' | ' | 35,259 | 47,638 | 65,575 | ||
Americas [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Reclassification of revenue between geographic segments, increase (decrease) | ' | ' | ' | ' | ' | ' | ' | ' | 118,413 | 125,600 | 119,865 | ||
Americas [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Reclassification of long-lived assets between geographic segments increase (decrease) | 26,502 | ' | ' | ' | 36,513 | ' | ' | ' | 26,502 | 36,513 | 51,478 | ||
Reclassification [Member] | Americas [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Reclassification of revenue between geographic segments, increase (decrease) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,734 | 567 | ||
Reclassification [Member] | EMEA [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Reclassification of revenue between geographic segments, increase (decrease) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,422 | 5,729 | ||
Reclassification [Member] | Americas [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Reclassification of long-lived assets between geographic segments increase (decrease) | ' | ' | ' | ' | 1,195 | ' | ' | ' | ' | 1,195 | 1,647 | ||
Reclassification [Member] | Asia Pacific [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Reclassification of revenue between geographic segments, increase (decrease) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ($6,156) | ($6,296) | ||
[1] | See discussion of sale of Clickability in Note 4 | ||||||||||||
[2] | See discussion of sale of cost basis investment in Gaikai in Note 7. |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Assets: | ' | ' | ||
Total assets measured at fair value | $42,292 | $33,755 | ||
Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | ' | ' | ||
Assets: | ' | ' | ||
Total assets measured at fair value | 9,746 | 14,715 | ||
Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ||
Assets: | ' | ' | ||
Total assets measured at fair value | 32,546 | 19,040 | ||
Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ||
Assets: | ' | ' | ||
Total assets measured at fair value | 0 | 0 | ||
Government agency bonds [Member] | ' | ' | ||
Assets: | ' | ' | ||
Total assets measured at fair value | 261 | [1] | 6,270 | [1] |
Government agency bonds [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | ' | ' | ||
Assets: | ' | ' | ||
Total assets measured at fair value | 0 | [1] | 0 | [1] |
Government agency bonds [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ||
Assets: | ' | ' | ||
Total assets measured at fair value | 261 | [1] | 6,270 | [1] |
Government agency bonds [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ||
Assets: | ' | ' | ||
Total assets measured at fair value | 0 | [1] | 0 | [1] |
Money market funds [Member] | ' | ' | ||
Assets: | ' | ' | ||
Total assets measured at fair value | 9,740 | [2] | 14,697 | [2] |
Money market funds [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | ' | ' | ||
Assets: | ' | ' | ||
Total assets measured at fair value | 9,740 | [2] | 14,697 | [2] |
Money market funds [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ||
Assets: | ' | ' | ||
Total assets measured at fair value | 0 | [2] | 0 | [2] |
Money market funds [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ||
Assets: | ' | ' | ||
Total assets measured at fair value | 0 | [2] | 0 | [2] |
Corporate notes and bonds [Member] | ' | ' | ||
Assets: | ' | ' | ||
Total assets measured at fair value | 26,009 | [1] | 9,529 | [1] |
Corporate notes and bonds [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | ' | ' | ||
Assets: | ' | ' | ||
Total assets measured at fair value | 0 | [1] | 0 | [1] |
Corporate notes and bonds [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ||
Assets: | ' | ' | ||
Total assets measured at fair value | 26,009 | [1] | 9,529 | [1] |
Corporate notes and bonds [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ||
Assets: | ' | ' | ||
Total assets measured at fair value | 0 | [1] | 0 | [1] |
Commercial paper [Member] | ' | ' | ||
Assets: | ' | ' | ||
Total assets measured at fair value | 2,200 | [1] | 500 | [1] |
Commercial paper [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | ' | ' | ||
Assets: | ' | ' | ||
Total assets measured at fair value | 0 | [1] | 0 | [1] |
Commercial paper [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ||
Assets: | ' | ' | ||
Total assets measured at fair value | 2,200 | [1] | 500 | [1] |
Commercial paper [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ||
Assets: | ' | ' | ||
Total assets measured at fair value | 0 | [1] | 0 | [1] |
Certificate of deposit [Member] | ' | ' | ||
Assets: | ' | ' | ||
Total assets measured at fair value | 4,076 | [1] | 2,741 | [1] |
Certificate of deposit [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | ' | ' | ||
Assets: | ' | ' | ||
Total assets measured at fair value | 0 | [1] | 0 | [1] |
Certificate of deposit [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ||
Assets: | ' | ' | ||
Total assets measured at fair value | 4,076 | [1] | 2,741 | [1] |
Certificate of deposit [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ||
Assets: | ' | ' | ||
Total assets measured at fair value | 0 | [1] | 0 | [1] |
Publicly traded common stock [Member] | ' | ' | ||
Assets: | ' | ' | ||
Total assets measured at fair value | 6 | [1] | 18 | [1] |
Publicly traded common stock [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | ' | ' | ||
Assets: | ' | ' | ||
Total assets measured at fair value | 6 | [1] | 18 | [1] |
Publicly traded common stock [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ||
Assets: | ' | ' | ||
Total assets measured at fair value | 0 | [1] | 0 | [1] |
Publicly traded common stock [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ||
Assets: | ' | ' | ||
Total assets measured at fair value | $0 | [1] | $0 | [1] |
[1] | Classified in marketable securities | |||
[2] | Classified in cash and cash equivalents |
Fair_Value_Measurements_Detail1
Fair Value Measurements (Details Textual) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ' | ' | ' |
Unrealized (loss) gain on investments | ($13) | ($28) | ($52) |
Cash equivalent maturity date | '3 months | ' | ' |
Quarterly_Financial_Results_un2
Quarterly Financial Results (unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||||||
Quarterly results of operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Revenues | $42,200 | [1] | $42,656 | $42,763 | $45,813 | $46,471 | $45,001 | [2] | $44,447 | $44,316 | $173,433 | $180,236 | $171,292 | ||||||
Gross profit | 15,275 | [1],[3] | 15,240 | [3] | 14,417 | [3] | 16,777 | [3] | 17,596 | [3] | 16,309 | [2],[3] | 16,517 | [3] | 16,596 | [3] | 61,708 | 67,018 | 60,286 |
Net loss from continuing operations | -4,704 | [1] | -10,903 | -11,233 | -8,136 | -10,291 | -610 | [2] | -9,437 | -9,697 | -34,976 | -30,035 | -30,066 | ||||||
(Loss) income from discontinued operations, net of income taxes | -411 | [1] | -15 | 0 | 0 | -1,943 | -218 | [2] | -391 | -309 | -426 | -2,861 | 4,778 | ||||||
Net loss (income) | ($5,115) | [1] | ($10,918) | ($11,233) | ($8,136) | ($12,234) | ($828) | [2] | ($9,828) | ($10,006) | ($35,402) | ($32,896) | ($25,288) | ||||||
Basic and diluted net loss per share from continuing operations (in dollars per share) | ($0.05) | [1] | ($0.11) | ($0.12) | ($0.08) | ($0.10) | ($0.01) | [2] | ($0.10) | ($0.09) | ($0.36) | ($0.30) | ($0.28) | ||||||
Basic and diluted net loss per share from discontinued operations (in dollars per share) | $0 | [1] | $0 | $0 | $0 | ($0.02) | $0 | [2] | $0 | ($0.01) | ' | ' | ' | ||||||
Basic and diluted net loss per share (in dollars per share) | ($0.05) | [1] | ($0.11) | ($0.12) | ($0.08) | ($0.12) | ($0.01) | [2] | ($0.10) | ($0.10) | ($0.37) | ($0.32) | ($0.23) | ||||||
Basic and diluted weighted average common shares outstanding (shares) | 97,380 | [1] | 96,949 | 96,257 | 96,818 | 98,765 | 99,359 | [2] | 102,783 | 104,226 | ' | ' | ' | ||||||
[1] | See discussion of sale of Clickability in Note 4 | ||||||||||||||||||
[2] | See discussion of sale of cost basis investment in Gaikai in Note 7. | ||||||||||||||||||
[3] | The table below reflects reclassifications made to gross profit for the applicable periods (See Note 2): For the period ended March 31, 2013, gross profit was previously reported as $17,081. After reclassifications of $(304), gross profit is now reported as $16,777. For the period ended June 30, 2013, gross profit was previously reported as $14,773. After reclassifications of $(356), gross profit is now reported as $14,417. For the period ended September 30, 2013, gross profit was previously reported as $15,605. After reclassifications of $(365), gross profit is now reported as $15,240. For the period ended December 31, 2013, gross profit was previously reported as $15,275. After reclassifications of $0, gross profit is now reported as $15,275. For the period ended March 31, 2012, gross profit was previously reported as $16,986. After reclassifications of $(390), gross profit is now reported as $16,596. For the period ended June 30, 2012, gross profit was previously reported as $16,884. After reclassifications of $(367), gross profit is now reported as $16,517. For the period ended September 30, 2012, gross profit was previously reported as $16,718. After reclassifications of $(409), gross profit is now reported as $16,309. For the period ended December 31, 2012, gross profit was previously reported as $17,933. After reclassifications of $(337), gross profit is now reported as $17,596. |
Quarterly_Financial_Results_un3
Quarterly Financial Results (unaudited) (Details 1) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||||||
Gross profit | $15,275 | [1],[2] | $15,240 | [1] | $14,417 | [1] | $16,777 | [1] | $17,596 | [1] | $16,309 | [1],[3] | $16,517 | [1] | $16,596 | [1] | $61,708 | $67,018 | $60,286 |
As Reported [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Gross profit | 15,275 | 15,605 | 14,773 | 17,081 | 17,933 | 16,718 | 16,884 | 16,986 | ' | 68,521 | 61,706 | ||||||||
Reclassification [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Gross profit | $0 | ($365) | ($356) | ($304) | ($337) | ($409) | ($367) | ($390) | ' | ($1,503) | ($1,420) | ||||||||
[1] | The table below reflects reclassifications made to gross profit for the applicable periods (See Note 2): For the period ended March 31, 2013, gross profit was previously reported as $17,081. After reclassifications of $(304), gross profit is now reported as $16,777. For the period ended June 30, 2013, gross profit was previously reported as $14,773. After reclassifications of $(356), gross profit is now reported as $14,417. For the period ended September 30, 2013, gross profit was previously reported as $15,605. After reclassifications of $(365), gross profit is now reported as $15,240. For the period ended December 31, 2013, gross profit was previously reported as $15,275. After reclassifications of $0, gross profit is now reported as $15,275. For the period ended March 31, 2012, gross profit was previously reported as $16,986. After reclassifications of $(390), gross profit is now reported as $16,596. For the period ended June 30, 2012, gross profit was previously reported as $16,884. After reclassifications of $(367), gross profit is now reported as $16,517. For the period ended September 30, 2012, gross profit was previously reported as $16,718. After reclassifications of $(409), gross profit is now reported as $16,309. For the period ended December 31, 2012, gross profit was previously reported as $17,933. After reclassifications of $(337), gross profit is now reported as $17,596. | ||||||||||||||||||
[2] | See discussion of sale of Clickability in Note 4 | ||||||||||||||||||
[3] | See discussion of sale of cost basis investment in Gaikai in Note 7. |
Schedule_II_Valuation_and_Qual1
Schedule II - Valuation and Qualifying Accounts (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Reserves for accounts receivable [Member] | ' | ' | ' |
Valuation and Qualifying Accounts | ' | ' | ' |
Balance at Beginning of Period | $4,070 | $4,391 | $6,732 |
Additions, Charged to Costs and Expenses | 965 | 2,062 | 1,357 |
Additions, Charged Against Revenue | -30 | -170 | -270 |
Deductions, Write-Offs Net of Recoveries | 2,995 | 2,213 | 3,428 |
Balance at End of Period | 2,010 | 4,070 | 4,391 |
Deferred tax asset valuation allowance [Member] | ' | ' | ' |
Valuation and Qualifying Accounts | ' | ' | ' |
Balance at Beginning of Period | 46,215 | 36,215 | 35,120 |
Additions, Charged to Costs and Expenses | 1,832 | 10,000 | 1,095 |
Balance at End of Period | $48,047 | $46,215 | $36,215 |