Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Feb. 10, 2015 | Jun. 30, 2014 |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | LIMELIGHT NETWORKS, INC. | ||
Entity Central Index Key | 1391127 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | FALSE | ||
Entity Common Stock, Shares Outstanding | 98,309,471 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $177.20 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $57,767 | $85,956 |
Marketable securities | 35,317 | 32,506 |
Accounts receivable, net | 22,622 | 21,430 |
Income taxes receivable | 237 | 371 |
Deferred income taxes | 78 | 93 |
Prepaid expenses and other current assets | 9,625 | 8,192 |
Total current assets | 125,646 | 148,548 |
Property and equipment, net | 32,636 | 32,905 |
Marketable securities, less current portion | 40 | 46 |
Deferred income taxes, less current portion | 1,364 | 1,307 |
Goodwill | 76,133 | 77,035 |
Other intangible assets, net | 1,071 | 2,354 |
Other assets | 4,451 | 6,103 |
Total assets | 241,341 | 268,298 |
Current liabilities: | ||
Accounts payable | 7,065 | 5,473 |
Deferred revenue | 3,509 | 3,523 |
Capital lease obligations | 223 | 466 |
Income taxes payable | 248 | 799 |
Other current liabilities | 14,383 | 15,022 |
Total current liabilities | 25,428 | 25,283 |
Capital lease obligations, less current portion | 135 | 358 |
Deferred income taxes | 170 | 321 |
Deferred revenue, less current portion | 405 | 1,500 |
Other long-term liabilities | 3,040 | 3,505 |
Total liabilities | 29,178 | 30,967 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Convertible preferred stock, $0.001 par value; 7,500 shares authorized; 0 shares issued and outstanding | 0 | 0 |
Common stock, $0.001 par value; 300,000 shares authorized at December 31, 2014 and, 2013; 98,409 and 97,677 shares issued and outstanding at December 31, 2014 and 2013, respectively | 98 | 98 |
Additional paid-in capital | 464,294 | 458,748 |
Accumulated other comprehensive loss | -7,786 | -1,663 |
Accumulated deficit | -244,443 | -219,852 |
Total stockholders’ equity | 212,163 | 237,331 |
Total liabilities and stockholders’ equity | $241,341 | $268,298 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
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 | 98,049,000 | 97,677,000 |
Common stock, shares outstanding | 98,049,000 | 97,677,000 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | |||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Income Statement [Abstract] | ||||||
Revenues | $162,259 | $173,433 | $180,236 | |||
Cost of revenue: | ||||||
Cost of services (1) | 82,176 | [1] | 88,783 | [1] | 85,226 | [1] |
Depreciation — network | 16,673 | 22,942 | 27,992 | |||
Total cost of revenue | 98,849 | 111,725 | 113,218 | |||
Gross profit | 63,410 | 61,708 | 67,018 | |||
Operating expenses: | ||||||
General and administrative | 28,176 | 31,904 | 34,500 | |||
Sales and marketing | 37,458 | 41,474 | 45,044 | |||
Research and development | 20,965 | 22,003 | 20,182 | |||
Depreciation and amortization | 3,529 | 5,804 | 5,843 | |||
Total operating expenses | 90,128 | 101,185 | 105,569 | |||
Operating loss | -26,718 | -39,477 | -38,551 | |||
Other income (expense): | ||||||
Interest expense | -32 | -76 | -177 | |||
Interest income | 276 | 321 | 356 | |||
Gain on sale of cost basis investment | 0 | 0 | 9,420 | |||
Other, net | 1,821 | 4,643 | -602 | |||
Total other income (expense) | 2,065 | 4,888 | 8,997 | |||
Loss from continuing operations before income taxes | -24,653 | -34,589 | -29,554 | |||
Income tax provision | 203 | 387 | 481 | |||
Loss from continuing operations | -24,856 | -34,976 | -30,035 | |||
Discontinued operations: | ||||||
Income (loss) from discontinued operations, net of income taxes | 265 | -426 | -2,861 | |||
Net loss | ($24,591) | ($35,402) | ($32,896) | |||
Net loss per basic and diluted share: | ||||||
Basic and diluted net loss per share, Continuing operations (in dollars per share) | ($0.25) | ($0.36) | ($0.30) | |||
Basic and diluted net loss per share, Discontinued operations (in dollars per share) | $0 | ($0.01) | ($0.02) | |||
Total Basic and diluted net loss per share (in dollars per share) | ($0.25) | ($0.37) | ($0.32) | |||
Weighted average shares used in per share calculation | ||||||
Basic and diluted weighted average outstanding shares of common stock (in shares) | 98,365 | 96,851 | 101,283 | |||
[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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Net loss | ($24,591) | ($35,402) | ($32,896) |
Other comprehensive loss, net of tax: | |||
Unrealized loss on marketable securities | -68 | -13 | -28 |
Foreign exchange translation | -6,055 | -941 | -172 |
Other comprehensive loss, net of tax | -6,123 | -954 | -200 |
Comprehensive loss | ($30,714) | ($36,356) | ($33,096) |
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, unless otherwise specified | ||||||
Beginning balance at Dec. 31, 2011 | $309,105 | $104 | $460,845 | $219 | ($509) | ($151,554) |
Beginning balance, Shares at Dec. 31, 2011 | 104,349 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | -32,896 | -32,896 | ||||
Change in unrealized gains (losses) on available-for-sale investments, net of taxes | -28 | -28 | ||||
Foreign currency translation adjustment, net of taxes | -172 | -172 | ||||
Exercise of common stock options, Shares | 175 | |||||
Exercise of common stock options | 190 | 190 | ||||
Vesting of restricted stock units, Shares | 2,451 | |||||
Vesting of restricted stock units | 0 | 3 | -3 | |||
Restricted stock units surrendered in lieu of withholding taxes, Shares | -788 | |||||
Restricted stock units surrendered in lieu of withholding taxes | -1,904 | -1 | -1,903 | |||
Common stock received from escrow in settlement of Eye Wonder indemnity claims, Shares | -110 | |||||
Common stock received from escrow in settlement of Eye Wonder indemnity claims | -398 | -398 | ||||
Issuance of common stock for contingent consideration, Shares | 0 | 61 | ||||
Issuance of common stock for contingent consideration | 186 | -186 | ||||
Issuance of common stock for business acquisitions, Shares | 0 | 350 | ||||
Purchase of common stock, Shares | -8,450 | |||||
Purchase of common stock | -21,142 | -8 | -21,134 | |||
Share-based compensation - continuing operations | 14,475 | 14,475 | ||||
Ending balance at Dec. 31, 2012 | 267,230 | 98 | 452,258 | 33 | -709 | -184,450 |
Ending balance, Shares at Dec. 31, 2012 | 98,038 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | -35,402 | -35,402 | ||||
Change in unrealized gains (losses) on available-for-sale investments, net of taxes | -13 | -13 | ||||
Foreign currency translation adjustment, net of taxes | -941 | -941 | ||||
Exercise of common stock options, Shares | 143 | |||||
Exercise of common stock options | 38 | 38 | ||||
Vesting of restricted stock units, Shares | 2,032 | |||||
Vesting of restricted stock units | 0 | 2 | -2 | |||
Restricted stock units surrendered in lieu of withholding taxes, Shares | -593 | |||||
Restricted stock units surrendered in lieu of withholding taxes | -1,304 | -1,304 | ||||
Issuance of common stock for contingent consideration, Shares | 11 | |||||
Issuance of common stock for contingent consideration | 0 | 33 | -33 | |||
Issuance of common stock for business acquisitions, Shares | 135 | |||||
Issuance of common stock for business acquisitions | 225 | 225 | ||||
Purchase of common stock, Shares | -2,089 | |||||
Purchase of common stock | -4,847 | -2 | -4,845 | |||
Share-based compensation - continuing operations | 12,345 | 12,345 | ||||
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 | 97,677 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | -24,591 | -24,591 | ||||
Change in unrealized gains (losses) on available-for-sale investments, net of taxes | -68 | -68 | ||||
Foreign currency translation adjustment, net of taxes | -6,055 | -6,055 | ||||
Exercise of common stock options, Shares | 522 | |||||
Exercise of common stock options | 894 | 1 | 893 | |||
Vesting of restricted stock units, Shares | 2,385 | |||||
Vesting of restricted stock units | 0 | 2 | -2 | |||
Restricted stock units surrendered in lieu of withholding taxes, Shares | -725 | |||||
Restricted stock units surrendered in lieu of withholding taxes | -1,644 | -1 | -1,643 | |||
Issuance of common stock under employee stock purchase plan, Shares | 269 | |||||
Issuance of common stock under employee stock purchase plan | 488 | 488 | ||||
Purchase of common stock, Shares | -1,719 | |||||
Purchase of common stock | -4,683 | -2 | -4,681 | |||
Share-based compensation - continuing operations | 10,491 | 10,491 | ||||
Ending balance at Dec. 31, 2014 | $212,163 | $98 | $464,294 | $0 | ($7,786) | ($244,443) |
Ending balance, Shares at Dec. 31, 2014 | 98,049 | 98,409 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating activities | |||
Net loss | ($24,591) | ($35,402) | ($32,896) |
(Loss) income from discontinued operations | 265 | -426 | -2,861 |
Net loss from continuing operations | -24,856 | -34,976 | -30,035 |
Adjustments to reconcile net loss from continuing operations to net cash provided by operating activities of continuing operations: | |||
Depreciation and amortization | 20,202 | 28,746 | 33,835 |
Share-based compensation | 10,491 | 12,345 | 14,475 |
Foreign currency remeasurement gain | -2,167 | -531 | -103 |
Deferred income taxes | -359 | -328 | -38 |
Loss on disposal of property and equipment | 0 | 442 | 89 |
Accounts receivable charges | 408 | 965 | 2,010 |
Amortization (accretion) of premium (discount) on marketable securities | 459 | 639 | 472 |
Non cash tax benefit associated with sale of discontinued operations | -59 | 0 | 0 |
Non cash increase in cost basis investment | 0 | 0 | -528 |
Gain on sale of cost basis investment | 0 | 0 | -9,420 |
Gain on sale of the Web Content Management business | 0 | -3,836 | 0 |
Changes in operating assets and liabilities: | |||
Accounts receivable | -1,600 | 2,581 | -567 |
Prepaid expenses and other current assets | -1,792 | 1,222 | 2,910 |
Income taxes receivable | 150 | 105 | -440 |
Other assets | 1,607 | 519 | -1,626 |
Accounts payable | 2,276 | -2,192 | 2,419 |
Deferred revenue | -1,109 | 4 | -137 |
Other current liabilities | -2,154 | 384 | 17 |
Income taxes payable | -233 | 305 | -255 |
Other long term liabilities | -796 | -798 | -649 |
Net cash provided by operating activities of continuing operations | 468 | 5,596 | 12,429 |
Investing activities | |||
Purchase of marketable securities | -25,482 | -59,047 | -27,280 |
Maturities of marketable securities | 22,150 | 44,901 | 27,625 |
Purchases of property and equipment | -18,581 | -18,575 | -18,390 |
Proceeds from the sale of cost basis investment | 0 | 1,237 | 10,154 |
Proceeds from sale of the Web Content Management business | 0 | 12,341 | 0 |
Proceeds from the sale of discontinued operations | 414 | 124 | 7,441 |
Net cash used in investing activities of continuing operations | -21,499 | -19,019 | -450 |
Financing activities | |||
Payments on capital lease obligations | -466 | -1,301 | -1,749 |
Payment of employee tax withholdings related to restricted stock | -1,795 | -2,372 | -683 |
Cash paid for purchase of common stock | -4,542 | -5,512 | -20,851 |
Proceeds from exercise of stock options and employee stock plan | 1,381 | 263 | 190 |
Net cash used in financing activities of continuing operations | -5,422 | -8,922 | -23,093 |
Effect of exchange rate changes on cash and cash equivalents | -1,732 | -606 | -171 |
Discontinued operations | |||
Cash used in operating activities of discontinued operations | -4 | -8 | -149 |
Net (decrease) increase in cash and cash equivalents | -28,189 | -22,959 | -11,434 |
Cash and cash equivalents, beginning of year | 85,956 | 108,915 | 120,349 |
Cash and cash equivalents, end of year | 57,767 | 85,956 | 108,915 |
Supplement disclosure of cash flow information | |||
Cash paid during the year for interest | 32 | 76 | 178 |
Cash paid during the year for income taxes, net of refunds | 647 | 321 | 1,428 |
Property and equipment remaining in accounts payable and other current liabilities | 2,983 | 1,709 | 948 |
Property and equipment acquired through leasehold incentives | 0 | 386 | 0 |
Contingent consideration common stock issued in connection with acquisition of businesses | 0 | 33 | 186 |
Property acquired due to vendor concession | $0 | $250 | $0 |
Nature_of_Business
Nature of Business | 12 Months Ended |
Dec. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [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 primary service groups work collectively to enable any organization to deliver digital content 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, 2014 | ||
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 period amounts to conform to the current period presentation. All information is presented in thousands, except per share amounts and where specifically noted. | ||
During the year ended December 31, 2014, the Company recorded an immaterial error correction of approximately $1,100 relating to previous over billings by a co-location provider. This correction was recorded as a reduction of costs of revenues. | ||
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. (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, 2015 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. The Company conducts business and generates revenue from an international customer base. The Company has sales, operations and finance resources internationally and various contracts with the foreign subsidiaries to match foreign currency costs with foreign currency revenues. 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, 2014, 2013 and 2012, the Company recorded foreign currency translation losses of $6,055, $941 and $172, respectively, in its statements of comprehensive loss. During the years ended December 31, 2014 and 2013, the Company recorded a foreign exchange gain of approximately $1,489 and $92, respectively. During the year ended December 31, 2012, the Company recorded a foreign exchange loss of approximately $513. The foreign exchange gains and losses are included in other income (expense) in the consolidated statements of operations. | ||
Recent Accounting Standards | ||
Recently Adopted Accounting Standards | ||
In April 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-08, which includes amendments that change the requirements for reporting discontinued operations and require additional disclosures about discontinued operations. Under the new guidance, only disposals representing a strategic shift in operations - that is, a major effect on the organization's operations and financial results - should be presented as discontinued operations. Examples include a disposal of a major geographic area, a major line of business, or a major equity method investment. Additionally, this ASU requires expanded disclosures about discontinued operations that will provide financial statement users with more information about the assets, liabilities, income, and expenses of discontinued operations. The Company will adopt this guidance effective January 1, 2015. The new guidance would only impact the Company upon the reporting of discontinued operations. | ||
In May 2014, the FASB issued ASU 2014-09, which provides guidance for revenue recognition. The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under today’s guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. This guidance will be effective for the Company in the first quarter of 2017. Early adoption is not permitted. The standard permits the use of the retrospective or cumulative effect transition method. The Company has not yet selected a transition method and is currently in the process of evaluating the impact of adoption of this ASU on its consolidated financial statements and disclosures. | ||
In August 2014, the FASB issued ASU 2014-15, which provides guidance for disclosure of uncertainties about an entity’s ability to continue as a going concern. ASU 2014-15 defines management's responsibility to assess an entity's ability to continue as a going concern, and to provide related footnote disclosures in certain circumstances. This guidance will be effective for the Company in the first annual period ending after December 15, 2016; however, early adoption is permitted. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements. | ||
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. | ||
Certain of the Company's revenue arrangements consist of 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. The Company's multiple-element arrangements may include a combination of some or all of the following: content delivery services, video content management services, performance services for website and web application acceleration, and cloud storage. Each of these products has stand-alone value and is sold separately. In the absence of vendor specific objective evidence (VSOE) or third-party evidence of selling prices, consideration would be allocated based on management’s best estimate of such prices. The deliverables within multiple-element arrangements are provided over the same contract period, and therefore, revenue is recognized over the same period. | ||
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. Installation fees do not have standalone value. | ||
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. | ||
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 and software | 3 years | |
Furniture and fixtures | 3 years | |
Other equipment | 3-5 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 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. The Company has concluded that it has one reporting unit and assigned the entire balance of goodwill to this reporting unit. As of the annual impairment testing date of October 31, 2014 and in an interim impairment test performed at December 31, 2014, 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 $117,330 or 53%, and $169,141 or 80%, using the market capitalization of the Company plus an estimated control premium of 40% on October 31, 2014 and December 31, 2014, respectively. | ||
The Company’s other intangible assets represent existing technologies 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, 2014 and 2013 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 leased warehouse space and utilities, 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 | ||
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 $1,409, $2,754, and $2,474 for the years ended December 31, 2014, 2013, and 2012, 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. | ||
Share-Based Compensation | ||
The Company measures all employee share-based compensation awards using the fair-value method. The grant date fair value was 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. The 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 has never paid cash dividends and does not currently intend to pay cash dividends, and therefore, has assumed a 0% dividend yield. The Company develops an estimate of the number of share-based awards that will be forfeited due to employee turnover. The Company will continue to use judgment in evaluating the expected term, volatility, and forfeiture rate related to its own share-based awards on a prospective basis, and in incorporating these factors into the model. | ||
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 share-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 share-based compensation recognized will also change. |
Investments_in_Marketable_Secu
Investments in Marketable Securities | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Investments, Debt and Equity 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, 2014: | ||||||||||||||||
Amortized | Gross | Gross | Estimated | |||||||||||||
Cost | Unrealized | Unrealized | Fair Value | |||||||||||||
Gains | Losses | |||||||||||||||
Certificate of deposit | 11,040 | 2 | 32 | 11,010 | ||||||||||||
Commercial paper | 1,498 | — | 1 | 1,497 | ||||||||||||
Corporate notes and bonds | 21,876 | 7 | 33 | 21,850 | ||||||||||||
Convertible debt security | 1,000 | — | — | 1,000 | ||||||||||||
Total marketable securities | $ | 35,414 | $ | 9 | $ | 66 | $ | 35,357 | ||||||||
At December 31, 2014, 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, 2014. The Company’s intent is to hold these investments to such time as these assets are no longer impaired. The Company views its available-for-sale securities as available for current operations. | ||||||||||||||||
The amortized cost and estimated fair value of the marketable debt securities at December 31, 2014, 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 | $ | 19,798 | $ | 5 | $ | 9 | $ | 19,794 | ||||||||
Due after one year and through five years | 15,616 | 4 | 57 | 15,563 | ||||||||||||
$ | 35,414 | $ | 9 | $ | 66 | $ | 35,357 | |||||||||
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 amortized cost and estimated fair value of the marketable debt securities 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 | |||||||||
Business_Disposition
Business Disposition | 12 Months Ended |
Dec. 31, 2014 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Business Disposition | Business Disposition |
On December 23, 2013, the Company sold 100% of the outstanding common stock of its 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 $3,836, which was included in Other, net in the consolidated statement of operations for the year ended December 31, 2013. During the year ended December 31, 2014, the Company recorded a working capital adjustment of $(62) (expense), related to new information subsequent to the closing of the acquisition, which is included in Other, net in the consolidated statement of operations for the year ended December 31, 2014. 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, 2014 | ||||||||||||
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 plus an estimated $10,854 receivable from DG pursuant to the purchase agreement. | ||||||||||||
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 as of August 30, 2011. During 2013, the Company wrote-off the remaining receivable balance of $412 from DG as it believed the balance was no longer collectible. | ||||||||||||
During the year ended December 31, 2014, the Company received $414 from DG as final settlement for the previously written-off receivable. The Company recorded $269, ($414 cash received, net of tax of $145), as income from discontinued operations during the year ended 2014. | ||||||||||||
Additionally, during the year ended December 31, 2014, the Company incurred $4 (net of tax) in expense related to discontinued operations which is recorded in the accompanying consolidated statements of operations for the year ended December 31, 2014. | ||||||||||||
During the year ended December 31, 2012, the Company recorded a charge to discontinued operations of $2,861 in the consolidated statement of operations primarily comprised of $2,060 of allowance for doubtful accounts receivable and a reduction of $818 related to Net Working Capital adjustments. | ||||||||||||
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, 2014, 2013, and 2012, respectively, are as follows: | ||||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
General and administrative expenses | (4 | ) | (15 | ) | 163 | |||||||
Gain (loss) on sale of discontinued operations, net of income taxes | 269 | (411 | ) | (3,024 | ) | |||||||
Income (loss) before income taxes | 265 | (426 | ) | (2,861 | ) | |||||||
Income tax expense | — | — | — | |||||||||
Income (loss) from discontinued operations | $ | 265 | $ | (426 | ) | $ | (2,861 | ) | ||||
Income (loss) from discontinued operations per weighted average share: | ||||||||||||
Basic and diluted | $ | — | $ | (0.01 | ) | $ | (0.02 | ) | ||||
Shares used in per weighted average share calculation for discontinued operations: | ||||||||||||
Basic and diluted | 98,365 | 96,851 | 101,283 | |||||||||
Accounts_Receivable
Accounts Receivable | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Receivables [Abstract] | ||||||||
Accounts Receivable | Accounts Receivable | |||||||
Accounts receivable include: | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Accounts receivable | $ | 14,507 | $ | 17,497 | ||||
Unbilled accounts receivable | 9,949 | 5,943 | ||||||
24,456 | 23,440 | |||||||
Less: credit allowance | (380 | ) | (610 | ) | ||||
Less: allowance for doubtful accounts | (1,454 | ) | (1,400 | ) | ||||
Total accounts receivable, net | $ | 22,622 | $ | 21,430 | ||||
Goodwill
Goodwill | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Goodwill and Other Intangible Assets | Goodwill | |||
The Company has recorded goodwill 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 2014. The estimated 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 changes in the carrying amount of goodwill for the years ended December 31, 2014 and 2013 were as follows: | ||||
Balance, December 31, 2012 | $ | 80,278 | ||
Foreign currency translation adjustment | 556 | |||
Disposition of the WCM business | (3,799 | ) | ||
Balance, December 31, 2013 | $ | 77,035 | ||
Foreign currency translation adjustment | (902 | ) | ||
Balance, December 31, 2014 | $ | 76,133 | ||
Property_and_Equipment
Property and Equipment | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Property and Equipment | Property and Equipment | |||||||
Property and equipment include: | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Network equipment | $ | 192,145 | $ | 180,896 | ||||
Computer equipment and software | 12,169 | 11,073 | ||||||
Furniture and fixtures | 2,718 | 2,723 | ||||||
Leasehold improvements | 7,351 | 7,162 | ||||||
Other equipment | 570 | 570 | ||||||
214,953 | 202,424 | |||||||
Less: accumulated depreciation | (182,317 | ) | (169,519 | ) | ||||
Total property and equipment, net | $ | 32,636 | $ | 32,905 | ||||
Cost of revenue depreciation expense related to property and equipment was approximately $16,673, $22,942, and $27,992, respectively, for the years ended December 31, 2014, 2013, and 2012, respectively. | ||||||||
Operating expense depreciation and amortization expense related to property and equipment was approximately $2,391, $2,961, and $2,972, respectively, for the years ended December 31, 2014, 2013, and 2012, respectively. |
Other_Current_Liabilities
Other Current Liabilities | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Other Liabilities, Current [Abstract] | ||||||||
Other Current Liabilities | Other Current Liabilities | |||||||
Other current liabilities include: | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Accrued compensation and benefits | $ | 5,266 | $ | 6,682 | ||||
Accrued cost of revenue | 2,031 | 1,833 | ||||||
Accrued legal fees | 1,292 | 1,769 | ||||||
Deferred rent | 1,277 | 1,074 | ||||||
Other accrued expenses | 4,517 | 3,664 | ||||||
Total other current liabilities | $ | 14,383 | $ | 15,022 | ||||
Other_Long_Term_Liabilities
Other Long Term Liabilities | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Other Liabilities, Noncurrent [Abstract] | ||||||||
Other Long Term Liabilities | Other Long Term Liabilities | |||||||
Other long term liabilities include: | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Deferred rent | $ | 2,511 | $ | 3,384 | ||||
Income taxes payable | 529 | 121 | ||||||
Total other long term liabilities | $ | 3,040 | $ | 3,505 | ||||
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2014 | |
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. 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 did not act on Akamai's cross petition. On April 30, 2014, the Supreme Court heard oral argument in our case. On June 2, 2014, the Supreme Court issued its decision and reversed the Federal Circuit's decision, remanding the case back to that court. On July 24, 2014, the Federal Circuit issued an order vacating its prior judgment, reinstating the appeals, dissolving its en banc status, and referring the case back to the original Court of Appeals panel for further proceedings. The Federal Circuit heard arguments on September 11, 2014. The Company does not believe an ultimate 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, 2014 | ||||||||||||
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. | ||||||||||||
The following table sets forth the components used in the computation of basic and diluted net loss per share for the periods indicated: | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Loss from continuing operations | $ | (24,856 | ) | $ | (34,976 | ) | $ | (30,035 | ) | |||
Income (loss) from discontinued operations | 265 | (426 | ) | (2,861 | ) | |||||||
Net loss | $ | (24,591 | ) | $ | (35,402 | ) | $ | (32,896 | ) | |||
Basic and diluted weighted average outstanding shares of common stock | 98,365 | 96,851 | 101,283 | |||||||||
Basic and diluted loss per share: | ||||||||||||
Continuing operations | $ | (0.25 | ) | $ | (0.36 | ) | $ | (0.30 | ) | |||
Discontinued operations | — | (0.01 | ) | (0.02 | ) | |||||||
Basic and diluted net loss per share | $ | (0.25 | ) | $ | (0.37 | ) | $ | (0.32 | ) | |||
For the years ended December 31, 2014, 2013 and 2012, outstanding options and restricted stock units of approximately 2,468, 1,986 and 2,273, 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, 2014 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders’ Equity |
Common Stock | |
On February 12, 2014, the Company's board of directors authorized a $15,000 share repurchase program. Under this program, the Company may repurchase shares periodically in the open market or through privately negotiated transactions, in accordance with applicable securities rules regarding issuer repurchases. During the year ended December 31, 2014, the Company purchased and canceled 1,719 shares for $4,683, including commissions and expenses. All repurchased shares were canceled and returned to authorized but unissued status. | |
During the year ended December 31, 2013, the Company purchased and canceled approximately 2,300 shares for approximately $5,512, including commissions and expenses under a previously authorized share repurchase program. All repurchased shares were canceled 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 years ended December 31, 2014 and 2013, the Company issued 269 and 135 shares, respectively, under the ESPP. Total cash proceeds from the purchase of shares under the ESPP were approximately $487 and $225, respectively for the years ended December 31, 2014 and 2013. As of December 31, 2014, shares reserved for issuance to employees under this plan totaled 3,596 and the Company held employee contributions of approximately $88 (included in other current liabilities) for future purchases under the ESPP. The ESPP is considered compensatory. The Company recorded compensation expense of $178 and $57, respectively, during the years ended December 31, 2014 and 2013, related to the ESPP. | |
The Company has reserved approximately 5,446 unissued shares of common stock for future options and restricted stock units under the incentive compensation plan. | |
Preferred Stock | |
The Company's board of directors has authorized the issuance of up to 7,500 shares of preferred stock at December 31, 2014. 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, 2014, 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, 2014 | ||||||||||||
Equity [Abstract] | ||||||||||||
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss | |||||||||||
Changes in the components of accumulated other comprehensive loss, net of tax, for the year ended December 31, 2014 was as follows: | ||||||||||||
Unrealized | ||||||||||||
Gains (Losses) on | ||||||||||||
Foreign | Available for | |||||||||||
Currency | Sale Securities | Total | ||||||||||
Balance, December 31, 2013 | $ | (1,688 | ) | $ | 25 | $ | (1,663 | ) | ||||
Other comprehensive loss before reclassifications | (6,055 | ) | (68 | ) | (6,123 | ) | ||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | — | — | |||||||||
Net current period other comprehensive loss | (6,055 | ) | (68 | ) | (6,123 | ) | ||||||
Balance, December 31, 2014 | $ | (7,743 | ) | $ | (43 | ) | $ | (7,786 | ) | |||
ShareBased_Compensation
Share-Based Compensation | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
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 2014, 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, 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 | |||||||||||||||
Granted | 4,215 | 2.4 | |||||||||||||||
Exercised | (522 | ) | 1.71 | ||||||||||||||
Cancelled | (2,803 | ) | 4.15 | ||||||||||||||
Balance at December 31, 2014 | 16,872 | 3.66 | |||||||||||||||
The following table summarizes the information about stock options outstanding and exercisable at December 31, 2014: | |||||||||||||||||
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 | 493 | 1.2 | $ | 0.38 | 493 | $ | 0.38 | ||||||||||
$ 1.51 — $ 3.00 | 9,535 | 8.5 | 2.26 | 3,439 | 2.18 | ||||||||||||
$ 3.01 — $ 4.50 | 2,621 | 3.3 | 3.74 | 2,458 | 3.78 | ||||||||||||
$ 4.51 — $ 6.00 | 1,533 | 4.9 | 5.16 | 1,458 | 5.15 | ||||||||||||
$ 6.01 — $ 7.50 | 1,633 | 1.4 | 6.46 | 1,620 | 6.46 | ||||||||||||
$ 7.51 — $ 15.00 | 1,057 | 3.5 | 11.06 | 1,042 | 11.1 | ||||||||||||
16,872 | 10,510 | ||||||||||||||||
The weighted-average grant-date fair value of options granted during the years ended December 31, 2014, 2013, and 2012 on a per-share basis was approximately $1.45, $1.48, and $1.60, respectively. The total intrinsic value of the options exercised during the years ended December 31, 2014, 2013, and 2012 was approximately $449, $265, and $309, respectively. The aggregate intrinsic value of options outstanding at December 31, 2014 is approximately $6,008. The weighted average remaining contractual term of options currently exercisable at December 31, 2014 was 4.4 years. | |||||||||||||||||
The fair value of options awarded were estimated on the grant date using the following weighted average assumptions: | |||||||||||||||||
Years Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Expected volatility | 66.05 | % | 77.96 | % | 78.1 | % | |||||||||||
Expected term, years | 5.99 | 6.05 | 5.88 | ||||||||||||||
Risk-free interest | 1.83 | % | 1.31 | % | 0.91 | % | |||||||||||
Expected dividends | — | % | — | % | — | % | |||||||||||
Unrecognized share-based compensation related to stock options totaled $8,418 at December 31, 2014. 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, 2014. | |||||||||||||||||
During the years ended December 31, 2014, 2013, and 2012, the Company recorded share-based compensation related to stock options of approximately $4,704, $6,617, and $7,426, respectively. | |||||||||||||||||
The following table summarizes the different types of RSUs outstanding (in thousands): | |||||||||||||||||
Years Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
RSUs with service-based vesting conditions | 6,820 | 5,286 | 4,232 | ||||||||||||||
Performance-based RSUs | — | — | 349 | ||||||||||||||
Unvested RSUs | 6,820 | 5,286 | 4,581 | ||||||||||||||
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, 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 | |||||||||||||||
Granted | 5,542 | 2.33 | |||||||||||||||
Vested | (2,385 | ) | 2.28 | ||||||||||||||
Cancelled | (1,623 | ) | 2.22 | ||||||||||||||
Balance at December 31, 2014 | 6,820 | 2.3 | |||||||||||||||
The weighted-average grant-date fair value of RSUs granted during the years ended December 31, 2014, 2013, and 2012 was approximately $2.33, $2.15, and $2.37, respectively. The total intrinsic value of the units vested during the years ended December 31, 2014, 2013, and 2012 was approximately $5,469, $5,117, and $5,400, respectively. The aggregate intrinsic value of RSUs outstanding at December 31, 2014 is $18,892. | |||||||||||||||||
Share-based payment compensation related to RSUs for the years ended December 31, 2014, 2013, and 2012 was approximately $5,609, $5,671, and $7,049, respectively. At December 31, 2014 there was approximately $13,128 of total unrecognized compensation costs related to RSUs. That cost is expected to be recognized over a weighted-average period of approximately 2.65 years as of December 31, 2014. | |||||||||||||||||
The Company recorded share-based compensation expense related to stock options, restricted stock and RSUs during the years ended December 31, 2014, 2013, and 2012 of approximately $10,491, $12,345, and $14,475, respectively. Unrecognized share-based compensation expense totaled approximately $21,546 at December 31, 2014, which is expected to be recognized over a weighted average period of approximately 2.59 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, 2014, 2013, and 2012: | |||||||||||||||||
Years Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Share-based compensation expense by type: | |||||||||||||||||
Stock options | $ | 4,704 | $ | 6,617 | $ | 7,426 | |||||||||||
Restricted stock units | 5,609 | 5,671 | 7,049 | ||||||||||||||
ESPP | 178 | 57 | — | ||||||||||||||
Total share-based compensation expense | $ | 10,491 | $ | 12,345 | $ | 14,475 | |||||||||||
Share-based compensation expense included in the consolidated statements of operations: | |||||||||||||||||
Cost of services | $ | 1,956 | $ | 1,873 | $ | 2,117 | |||||||||||
General and administrative expense | 4,741 | 5,971 | 6,511 | ||||||||||||||
Sales and marketing expense | 2,317 | 2,245 | 3,104 | ||||||||||||||
Research and development expense | 1,477 | 2,256 | 2,743 | ||||||||||||||
Total share-based compensation expense | $ | 10,491 | $ | 12,345 | $ | 14,475 | |||||||||||
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2014 | |
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, 2014, 2013, and 2012, respectively, Goldman, Sachs & Co. owned approximately 31% of the Company’s outstanding common stock. | |
The Company leased office space to an entity in which previous members of its board of directors have an ownership interest. During the year ended December 31, 2012, the Company invoiced and collected approximately $16, in office space rental from this entity. | |
The Company sold services to entities owned, in whole or in part, by certain of the Company’s executive officers and previous directors. Revenue derived from related parties was less than 1% of total revenue for the year ended December 31, 2014. Revenue derived from related parties was approximately 1% for the years ended December 31, 2013 and 2012, respectively. Total outstanding accounts receivable from all related parties as of December 31, 2014, 2013 and 2012 was $0, $7 and $1,300, respectively. | |
During 2013, the Company entered into an agreement for services with an entity in which a current member of its board of directors was an officer. During 2013, the Company incurred approximately $154 in expense for services rendered. The Company did not incur similar expenses in 2014. |
Leases_and_Commitments
Leases and Commitments | 12 Months Ended | |||
Dec. 31, 2014 | ||||
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 2023. 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, 2014 are as follows: | ||||
2015 | $ | 3,990 | ||
2016 | 3,152 | |||
2017 | 2,780 | |||
2018 | 2,850 | |||
2019 | 1,279 | |||
Thereafter | 1,011 | |||
Total minimum payments | $ | 15,062 | ||
Purchase Commitments | ||||
The Company has long-term commitments for bandwidth usage and co-location with various networks and Internet service providers or ISPs. | ||||
The following summarizes minimum commitments as of December 31, 2014: | ||||
2015 | $ | 32,241 | ||
2016 | 8,483 | |||
2017 | 1,466 | |||
2018 | 857 | |||
2019 | 353 | |||
Thereafter | — | |||
Total minimum payments | $ | 43,400 | ||
Rent and operating expense relating to these operating lease agreements and bandwidth and co-location agreements was approximately $58,288, $61,693, and $58,818, respectively, for the years ended December 31, 2014, 2013, and 2012. | ||||
Capital Leases | ||||
The Company leases equipment under capital lease agreements which extend through 2017. As of December 31, 2014 and 2013, the outstanding balance for capital leases was approximately $358 and $824, respectively. The Company recorded assets under capital lease obligations of approximately $2,224 and $2,312, respectively, as of December 31, 2014 and 2013. Related accumulated amortization totaled approximately $2,209 and $1,878, respectively as of December 31, 2014 and 2013. 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, 2014 was approximately six percent. Interest expense related to capital leases was approximately $32, $76, and $170, respectively, for the years ended December 31, 2014, 2013, and 2012. | ||||
Future minimum capital lease payments at December 31, 2014 were as follows: | ||||
2015 | $ | 238 | ||
2016 | 134 | |||
2017 | 4 | |||
2018 | — | |||
2019 | — | |||
Thereafter | — | |||
Total | 376 | |||
Amounts representing interest | (18 | ) | ||
Present value of minimum lease payments | $ | 358 | ||
Concentrations
Concentrations | 12 Months Ended |
Dec. 31, 2014 | |
Concentrations [Abstract] | |
Concentrations | Concentrations |
During the year ended December 31, 2014, the Company had no customer who represented 10% or more of total revenue. For the years ended December 31, 2013, and 2012, Netflix, Inc. represented approximately 11% of the Company’s total revenue. | |
Revenue from sources outside America totaled approximately $60,957, $54,413, and $54,636, respectively, for the years ended December 31, 2014, 2013, and 2012. | |
During the years ended December 31, 2014 and 2012, the Company had two countries, Japan and the United States, which accounted for 10% or more of the Company’s total revenues. During the year ended December 31, 2013, the Company had no single country outside of the United States that accounted for 10% or more of the Company's total revenues. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||
Income taxes | Income Taxes | ||||||||||||||||||||
The Company's loss from continuing operations before income taxes consists of the following: | |||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
(Loss) income from continuing operations before income taxes: | |||||||||||||||||||||
United States | $ | (25,025 | ) | $ | (34,789 | ) | $ | (29,991 | ) | ||||||||||||
Foreign | 372 | 200 | 437 | ||||||||||||||||||
$ | (24,653 | ) | $ | (34,589 | ) | $ | (29,554 | ) | |||||||||||||
The components of the provision for income taxes are as follows: | |||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Current: | |||||||||||||||||||||
Federal | $ | (143 | ) | $ | — | $ | — | ||||||||||||||
State | 26 | 80 | (20 | ) | |||||||||||||||||
Foreign | 680 | 442 | 558 | ||||||||||||||||||
Total current | 563 | 522 | 538 | ||||||||||||||||||
Deferred: | |||||||||||||||||||||
Federal | 15 | 16 | 16 | ||||||||||||||||||
State | — | — | — | ||||||||||||||||||
Foreign | (375 | ) | (151 | ) | (73 | ) | |||||||||||||||
Total deferred | (360 | ) | (135 | ) | (57 | ) | |||||||||||||||
Total provision | $ | 203 | $ | 387 | $ | 481 | |||||||||||||||
A reconciliation of the U.S. federal statutory rate to the Company’s effective income tax rate is shown in the table below: | |||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Amount | Percent | Amount | Percent | Amount | Percent | ||||||||||||||||
U.S. federal statutory tax rate | $ | (8,629 | ) | 35 | % | $ | (12,106 | ) | 35 | % | $ | (10,344 | ) | 35 | % | ||||||
Impact related to sale of discontinued operations | (143 | ) | 1 | % | — | — | % | — | — | % | |||||||||||
Valuation allowance | 7,424 | (30 | )% | 12,958 | (37 | )% | 10,329 | (35 | )% | ||||||||||||
Foreign income taxes | (26 | ) | — | % | 221 | (1 | )% | 351 | (1 | )% | |||||||||||
State income taxes | 26 | — | % | 80 | — | % | (20 | ) | — | % | |||||||||||
Non-deductible expenses | 1,335 | (6 | )% | (783 | ) | 2 | % | 168 | (1 | )% | |||||||||||
Uncertain tax positions | 201 | (1 | )% | 14 | — | % | (18 | ) | — | % | |||||||||||
Share-based compensation | — | — | % | — | — | % | — | — | % | ||||||||||||
Other | 15 | — | % | 3 | — | % | 15 | — | % | ||||||||||||
Provision for income taxes | $ | 203 | (1 | )% | $ | 387 | (1 | )% | $ | 481 | (2 | )% | |||||||||
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: | |||||||||||||||||||||
December 31, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Deferred tax assets: | |||||||||||||||||||||
Share-based compensation | $ | 13,613 | $ | 12,797 | |||||||||||||||||
Net operating loss and tax credit carry-forwards | 33,519 | 25,052 | |||||||||||||||||||
Deferred revenue | 2,089 | 2,808 | |||||||||||||||||||
Accounts receivable reserves | 556 | 537 | |||||||||||||||||||
Fixed assets | 4,813 | 5,751 | |||||||||||||||||||
Other | 1,693 | 2,267 | |||||||||||||||||||
Total deferred tax assets | 56,283 | 49,212 | |||||||||||||||||||
Deferred tax liabilities: | |||||||||||||||||||||
Intangible assets | (177 | ) | (738 | ) | |||||||||||||||||
Prepaid expenses | (144 | ) | (164 | ) | |||||||||||||||||
Other | (36 | ) | (65 | ) | |||||||||||||||||
Total deferred tax liabilities | (357 | ) | (967 | ) | |||||||||||||||||
Valuation allowance | (54,654 | ) | (47,166 | ) | |||||||||||||||||
Net deferred tax assets | $ | 1,272 | $ | 1,079 | |||||||||||||||||
In addition to the deferred tax assets listed in the table above, the Company has unrecorded tax benefits of $10,750 and $10,350 at December 31, 2014 and December 31, 2013, 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 RSUs, which, if subsequently realized will be recorded to contributed capital. As a result of net operating loss (NOL) 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 NOL carryforwards relate to prior years’ NOLs, which may be used to reduce tax liabilities in future years. At December 31, 2014, the Company had $97,400 federal and $66,200 state NOL carryforwards, including the NOLs discussed in the preceding paragraph. The Company’s federal NOL will begin to expire in 2027 and the state NOL carryforwards will begin to expire in 2015. 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, 2014 the Company had state tax credit carryforwards of $88, which will expire at various dates beginning in 2015. | |||||||||||||||||||||
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, 2014, no valuation allowance was provided on $1,600 of deferred tax assets associated with certain NOLs 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 NOL 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. | |||||||||||||||||||||
Estimated liabilities for unrecognized tax benefits are included in “other liabilities” on the consolidated balance sheet. These contingent liabilities relate to various tax matters that result from uncertainties in the application of complex income tax regulations in the numerous jurisdictions in which the Company operates. As of December 31, 2014, unrecognized tax benefits were $2,043, of which approximately $446, if recognized, would favorably impact the effective tax rate and the remaining balance would be substantially offset by valuation allowances. | |||||||||||||||||||||
A summary of the activities associated with the Company’s reserve for unrecognized tax benefits, interest and penalties follow: | |||||||||||||||||||||
Unrecognized | |||||||||||||||||||||
Tax Benefits | |||||||||||||||||||||
Balance at January 1, 2013 | $ | 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 | ||||||||||||||||||||
Additions for tax positions related to current year | — | ||||||||||||||||||||
Additions for tax positions related to prior years | 312 | ||||||||||||||||||||
Settlements | — | ||||||||||||||||||||
Adjustment related to foreign currency translation | (4 | ) | |||||||||||||||||||
Reductions related to the lapse of applicable statute of limitations | (22 | ) | |||||||||||||||||||
Reduction for tax positions of prior years | — | ||||||||||||||||||||
Balance at December 31, 2014 | $ | 2,043 | |||||||||||||||||||
The Company recognizes interest and penalties related to unrecognized tax benefits in its tax provision. As of December 31, 2014, the Company had an interest and penalties accrual related to unrecognized tax benefits of $79, which decreased during 2014 by $15. 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 2010 through 2013 generally remain subject to examination by federal and most state tax authorities. As of December 31, 2014, 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, 2014. 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. A hypothetical calculation of the deferred tax liability, assuming those earnings were remitted, is not practicable. |
401k_Plan
401(k) Plan | 12 Months Ended |
Dec. 31, 2014 | |
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 $1,225, $1,196, and $1,101 during the years ended December 31, 2014, 2013, and 2012, respectively. |
Segment_Reporting_and_Geograph
Segment Reporting and Geographic Information | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Segment Reporting [Abstract] | ||||||||||||
Segment Reporting | Segment Reporting and Geographic Information | |||||||||||
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, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Revenue | ||||||||||||
Americas | $ | 101,302 | $ | 119,020 | $ | 125,600 | ||||||
EMEA | 33,630 | 30,793 | 30,898 | |||||||||
Asia Pacific | 27,327 | 23,620 | 23,738 | |||||||||
Total revenue | $ | 162,259 | $ | 173,433 | $ | 180,236 | ||||||
The following table sets forth long-lived assets by geographic area: | ||||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Long-lived Assets | ||||||||||||
Americas | $ | 22,505 | $ | 26,502 | $ | 36,513 | ||||||
International | 11,202 | 8,757 | 11,125 | |||||||||
Total long-lived assets | $ | 33,707 | $ | 35,259 | $ | 47,638 | ||||||
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
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, 2014 and 2013, 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, a convertible debt security 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 active markets (level 1), less active markets (level 2) and on unobservable inputs where little or no market data exists (level 3). 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 current interest rates, discount rates and customer credit profile. | ||||||||||||||||
The following is a summary of fair value measurements at December 31, 2014: | ||||||||||||||||
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: | ||||||||||||||||
Money market funds (2) | $ | 57 | $ | 57 | $ | — | $ | — | ||||||||
Corporate notes and bonds (1) | 21,850 | — | 21,850 | — | ||||||||||||
Commercial paper (1) | 1,497 | — | 1,497 | — | ||||||||||||
Certificate of deposit (1) | 11,010 | — | 11,010 | — | ||||||||||||
Convertible debt security (1) | 1,000 | — | — | 1,000 | ||||||||||||
Total assets measured at fair value | $ | 35,414 | $ | 57 | $ | 34,357 | $ | 1,000 | ||||||||
____________ | ||||||||||||||||
-1 | Classified in marketable securities | |||||||||||||||
-2 | Classified in cash and cash equivalents | |||||||||||||||
In November 2014, the Company made a $1,000 strategic, noncontrolling convertible debt security investment in an unconsolidated privately-held entity, which is included in marketable securities in its Consolidated Balance Sheets. The fair value of this investment has been measured based on this recent transaction, which is considered the best evidence of fair value currently available. When this evidence is not available, the Company uses other valuation techniques such as transactions in similar instruments, discounted cash flow techniques, third party appraisals or public comparables. Based on its assessment of fair value at December 31, 2014, there has not been any significant change in the fair value of the convertible debt security since the date of the Company's investment. | ||||||||||||||||
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 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, 2014 | ||||||||||||||||
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, 2014 and 2013. | ||||||||||||||||
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: | ||||||||||||||||
For the Three Months Ended | ||||||||||||||||
March 31, | June 30, | Sept. 30, | Dec. 31, | |||||||||||||
2014 | 2014 | 2014 (a) | 2014 | |||||||||||||
Revenues | $ | 41,170 | $ | 41,343 | $ | 39,020 | $ | 40,727 | ||||||||
Gross profit | $ | 15,267 | $ | 15,873 | $ | 16,141 | $ | 16,129 | ||||||||
Loss from continuing operations | $ | (7,640 | ) | $ | (7,138 | ) | $ | (5,071 | ) | $ | (5,007 | ) | ||||
Income (loss) from discontinued operations | $ | — | $ | 269 | $ | (4 | ) | $ | — | |||||||
Net loss | $ | (7,640 | ) | $ | (6,869 | ) | $ | (5,075 | ) | $ | (5,007 | ) | ||||
Basic and diluted net loss per share from continuing | $ | (0.08 | ) | $ | (0.07 | ) | $ | (0.05 | ) | $ | (0.05 | ) | ||||
operations | ||||||||||||||||
Basic and diluted net loss per share from discontinued | $ | — | $ | — | $ | — | $ | — | ||||||||
operations | ||||||||||||||||
Basic and diluted net loss per share | $ | (0.08 | ) | $ | (0.07 | ) | $ | (0.05 | ) | $ | (0.05 | ) | ||||
Basic and diluted weighted average common shares | 97,946 | 98,419 | 98,458 | 98,637 | ||||||||||||
outstanding | ||||||||||||||||
(a) During the three months ended September 30, 2014, the Company recorded an immaterial error correction of approximately $1,100 relating to previous over billings by a co-location provider. The correction was recorded as a reduction of costs of revenue. | ||||||||||||||||
For the Three Months Ended | ||||||||||||||||
March 31, | June 30, | Sept. 30, | Dec. 31, | |||||||||||||
2013 | 2013 | 2013 | 2013 (b) | |||||||||||||
Revenues | $ | 45,813 | $ | 42,763 | $ | 42,656 | $ | 42,200 | ||||||||
Gross profit | $ | 16,777 | $ | 14,417 | $ | 15,240 | $ | 15,275 | ||||||||
Loss from continuing operations | $ | (8,136 | ) | $ | (11,233 | ) | $ | (10,903 | ) | $ | (4,704 | ) | ||||
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 operations | $ | (0.08 | ) | $ | (0.12 | ) | $ | (0.11 | ) | $ | (0.05 | ) | ||||
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 | ||||||||||||||||
(b) See discussion of sale of the WCM business in Note 4. |
Schedule_II_Valuation_and_Qual
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
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, 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 | 951 | — | — | $ | 47,166 | ||||||||||
Year ended December 31, 2014: | |||||||||||||||||
Allowances deducted from asset accounts: | |||||||||||||||||
Reserves for accounts receivable | $ | 2,010 | 408 | (230 | ) | 354 | $ | 1,834 | |||||||||
Deferred tax asset valuation allowance | $ | 47,166 | 7,488 | — | — | $ | 54,654 | ||||||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |
Dec. 31, 2014 | ||
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 period amounts to conform to the current period presentation. All information is presented in thousands, except per share amounts and where specifically noted. | ||
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, 2015 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. The Company conducts business and generates revenue from an international customer base. The Company has sales, operations and finance resources internationally and various contracts with the foreign subsidiaries to match foreign currency costs with foreign currency revenues. 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. | ||
Recent Accounting Standards | Recent Accounting Standards | |
Recently Adopted Accounting Standards | ||
In April 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-08, which includes amendments that change the requirements for reporting discontinued operations and require additional disclosures about discontinued operations. Under the new guidance, only disposals representing a strategic shift in operations - that is, a major effect on the organization's operations and financial results - should be presented as discontinued operations. Examples include a disposal of a major geographic area, a major line of business, or a major equity method investment. Additionally, this ASU requires expanded disclosures about discontinued operations that will provide financial statement users with more information about the assets, liabilities, income, and expenses of discontinued operations. The Company will adopt this guidance effective January 1, 2015. The new guidance would only impact the Company upon the reporting of discontinued operations. | ||
In May 2014, the FASB issued ASU 2014-09, which provides guidance for revenue recognition. The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under today’s guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. This guidance will be effective for the Company in the first quarter of 2017. Early adoption is not permitted. The standard permits the use of the retrospective or cumulative effect transition method. The Company has not yet selected a transition method and is currently in the process of evaluating the impact of adoption of this ASU on its consolidated financial statements and disclosures. | ||
In August 2014, the FASB issued ASU 2014-15, which provides guidance for disclosure of uncertainties about an entity’s ability to continue as a going concern. ASU 2014-15 defines management's responsibility to assess an entity's ability to continue as a going concern, and to provide related footnote disclosures in certain circumstances. This guidance will be effective for the Company in the first annual period ending after December 15, 2016; however, early adoption is permitted. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements. | ||
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. | ||
Certain of the Company's revenue arrangements consist of 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. The Company's multiple-element arrangements may include a combination of some or all of the following: content delivery services, video content management services, performance services for website and web application acceleration, and cloud storage. Each of these products has stand-alone value and is sold separately. In the absence of vendor specific objective evidence (VSOE) or third-party evidence of selling prices, consideration would be allocated based on management’s best estimate of such prices. The deliverables within multiple-element arrangements are provided over the same contract period, and therefore, revenue is recognized over the same period. | ||
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. Installation fees do not have standalone value. | ||
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. | ||
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 and software | 3 years | |
Furniture and fixtures | 3 years | |
Other equipment | 3-5 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 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. The Company has concluded that it has one reporting unit and assigned the entire balance of goodwill to this reporting unit. As of the annual impairment testing date of October 31, 2014 and in an interim impairment test performed at December 31, 2014, 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 $117,330 or 53%, and $169,141 or 80%, using the market capitalization of the Company plus an estimated control premium of 40% on October 31, 2014 and December 31, 2014, respectively. | ||
The Company’s other intangible assets represent existing technologies 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, 2014 and 2013 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 leased warehouse space and utilities, 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 | Research and Development | |
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. | ||
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. | ||
Share-Based Compensation | Share-Based Compensation | |
The Company measures all employee share-based compensation awards using the fair-value method. The grant date fair value was 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. The 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 has never paid cash dividends and does not currently intend to pay cash dividends, and therefore, has assumed a 0% dividend yield. The Company develops an estimate of the number of share-based awards that will be forfeited due to employee turnover. The Company will continue to use judgment in evaluating the expected term, volatility, and forfeiture rate related to its own share-based awards on a prospective basis, and in incorporating these factors into the model. | ||
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 share-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 share-based compensation recognized will also change. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |
Dec. 31, 2014 | ||
Accounting Policies [Abstract] | ||
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 and software | 3 years | |
Furniture and fixtures | 3 years | |
Other equipment | 3-5 years |
Investments_in_Marketable_Secu1
Investments in Marketable Securities (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Investments, Debt and Equity 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, 2014: | |||||||||||||||
Amortized | Gross | Gross | Estimated | |||||||||||||
Cost | Unrealized | Unrealized | Fair Value | |||||||||||||
Gains | Losses | |||||||||||||||
Certificate of deposit | 11,040 | 2 | 32 | 11,010 | ||||||||||||
Commercial paper | 1,498 | — | 1 | 1,497 | ||||||||||||
Corporate notes and bonds | 21,876 | 7 | 33 | 21,850 | ||||||||||||
Convertible debt security | 1,000 | — | — | 1,000 | ||||||||||||
Total marketable securities | $ | 35,414 | $ | 9 | $ | 66 | $ | 35,357 | ||||||||
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 | ||||||||
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 debt securities at December 31, 2014, 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 | $ | 19,798 | $ | 5 | $ | 9 | $ | 19,794 | ||||||||
Due after one year and through five years | 15,616 | 4 | 57 | 15,563 | ||||||||||||
$ | 35,414 | $ | 9 | $ | 66 | $ | 35,357 | |||||||||
The amortized cost and estimated fair value of the marketable debt securities 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, 2014 | ||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ||||||||||||
Operating results of discontinued operations | Operating results of discontinued operations for the years ended December 31, 2014, 2013, and 2012, respectively, are as follows: | |||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
General and administrative expenses | (4 | ) | (15 | ) | 163 | |||||||
Gain (loss) on sale of discontinued operations, net of income taxes | 269 | (411 | ) | (3,024 | ) | |||||||
Income (loss) before income taxes | 265 | (426 | ) | (2,861 | ) | |||||||
Income tax expense | — | — | — | |||||||||
Income (loss) from discontinued operations | $ | 265 | $ | (426 | ) | $ | (2,861 | ) | ||||
Income (loss) from discontinued operations per weighted average share: | ||||||||||||
Basic and diluted | $ | — | $ | (0.01 | ) | $ | (0.02 | ) | ||||
Shares used in per weighted average share calculation for discontinued operations: | ||||||||||||
Basic and diluted | 98,365 | 96,851 | 101,283 | |||||||||
Accounts_Receivable_net_Tables
Accounts Receivable, net (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Receivables [Abstract] | ||||||||
Summary of accounts receivable, net | Accounts receivable include: | |||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Accounts receivable | $ | 14,507 | $ | 17,497 | ||||
Unbilled accounts receivable | 9,949 | 5,943 | ||||||
24,456 | 23,440 | |||||||
Less: credit allowance | (380 | ) | (610 | ) | ||||
Less: allowance for doubtful accounts | (1,454 | ) | (1,400 | ) | ||||
Total accounts receivable, net | $ | 22,622 | $ | 21,430 | ||||
Goodwill_Tables
Goodwill (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Schedule of changes in the carrying amount of goodwill | The changes in the carrying amount of goodwill for the years ended December 31, 2014 and 2013 were as follows: | |||
Balance, December 31, 2012 | $ | 80,278 | ||
Foreign currency translation adjustment | 556 | |||
Disposition of the WCM business | (3,799 | ) | ||
Balance, December 31, 2013 | $ | 77,035 | ||
Foreign currency translation adjustment | (902 | ) | ||
Balance, December 31, 2014 | $ | 76,133 | ||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Property and equipment, net | Property and equipment include: | |||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Network equipment | $ | 192,145 | $ | 180,896 | ||||
Computer equipment and software | 12,169 | 11,073 | ||||||
Furniture and fixtures | 2,718 | 2,723 | ||||||
Leasehold improvements | 7,351 | 7,162 | ||||||
Other equipment | 570 | 570 | ||||||
214,953 | 202,424 | |||||||
Less: accumulated depreciation | (182,317 | ) | (169,519 | ) | ||||
Total property and equipment, net | $ | 32,636 | $ | 32,905 | ||||
Other_Current_Liabilities_Tabl
Other Current Liabilities (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Other Liabilities, Current [Abstract] | ||||||||
Other current liabilities | Other current liabilities include: | |||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Accrued compensation and benefits | $ | 5,266 | $ | 6,682 | ||||
Accrued cost of revenue | 2,031 | 1,833 | ||||||
Accrued legal fees | 1,292 | 1,769 | ||||||
Deferred rent | 1,277 | 1,074 | ||||||
Other accrued expenses | 4,517 | 3,664 | ||||||
Total other current liabilities | $ | 14,383 | $ | 15,022 | ||||
Other_Long_Term_Liabilities_Ta
Other Long Term Liabilities (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Other Liabilities, Noncurrent [Abstract] | ||||||||
Other long term liabilities | Other long term liabilities include: | |||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Deferred rent | $ | 2,511 | $ | 3,384 | ||||
Income taxes payable | 529 | 121 | ||||||
Total other long term liabilities | $ | 3,040 | $ | 3,505 | ||||
Net_Loss_per_Share_Tables
Net Loss per Share (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
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: | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Loss from continuing operations | $ | (24,856 | ) | $ | (34,976 | ) | $ | (30,035 | ) | |||
Income (loss) from discontinued operations | 265 | (426 | ) | (2,861 | ) | |||||||
Net loss | $ | (24,591 | ) | $ | (35,402 | ) | $ | (32,896 | ) | |||
Basic and diluted weighted average outstanding shares of common stock | 98,365 | 96,851 | 101,283 | |||||||||
Basic and diluted loss per share: | ||||||||||||
Continuing operations | $ | (0.25 | ) | $ | (0.36 | ) | $ | (0.30 | ) | |||
Discontinued operations | — | (0.01 | ) | (0.02 | ) | |||||||
Basic and diluted net loss per share | $ | (0.25 | ) | $ | (0.37 | ) | $ | (0.32 | ) |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Equity [Abstract] | ||||||||||||
Schedule of accumulated other comprehensive loss | Changes in the components of accumulated other comprehensive loss, net of tax, for the year ended December 31, 2014 was as follows: | |||||||||||
Unrealized | ||||||||||||
Gains (Losses) on | ||||||||||||
Foreign | Available for | |||||||||||
Currency | Sale Securities | Total | ||||||||||
Balance, December 31, 2013 | $ | (1,688 | ) | $ | 25 | $ | (1,663 | ) | ||||
Other comprehensive loss before reclassifications | (6,055 | ) | (68 | ) | (6,123 | ) | ||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | — | — | |||||||||
Net current period other comprehensive loss | (6,055 | ) | (68 | ) | (6,123 | ) | ||||||
Balance, December 31, 2014 | $ | (7,743 | ) | $ | (43 | ) | $ | (7,786 | ) | |||
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
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, 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 | |||||||||||||||
Granted | 4,215 | 2.4 | |||||||||||||||
Exercised | (522 | ) | 1.71 | ||||||||||||||
Cancelled | (2,803 | ) | 4.15 | ||||||||||||||
Balance at December 31, 2014 | 16,872 | 3.66 | |||||||||||||||
Outstanding stock options | The following table summarizes the information about stock options outstanding and exercisable at December 31, 2014: | ||||||||||||||||
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 | 493 | 1.2 | $ | 0.38 | 493 | $ | 0.38 | ||||||||||
$ 1.51 — $ 3.00 | 9,535 | 8.5 | 2.26 | 3,439 | 2.18 | ||||||||||||
$ 3.01 — $ 4.50 | 2,621 | 3.3 | 3.74 | 2,458 | 3.78 | ||||||||||||
$ 4.51 — $ 6.00 | 1,533 | 4.9 | 5.16 | 1,458 | 5.15 | ||||||||||||
$ 6.01 — $ 7.50 | 1,633 | 1.4 | 6.46 | 1,620 | 6.46 | ||||||||||||
$ 7.51 — $ 15.00 | 1,057 | 3.5 | 11.06 | 1,042 | 11.1 | ||||||||||||
16,872 | 10,510 | ||||||||||||||||
Grant date fair value of option | The fair value of options awarded were estimated on the grant date using the following weighted average assumptions: | ||||||||||||||||
Years Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Expected volatility | 66.05 | % | 77.96 | % | 78.1 | % | |||||||||||
Expected term, years | 5.99 | 6.05 | 5.88 | ||||||||||||||
Risk-free interest | 1.83 | % | 1.31 | % | 0.91 | % | |||||||||||
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, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
RSUs with service-based vesting conditions | 6,820 | 5,286 | 4,232 | ||||||||||||||
Performance-based RSUs | — | — | 349 | ||||||||||||||
Unvested RSUs | 6,820 | 5,286 | 4,581 | ||||||||||||||
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, 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 | |||||||||||||||
Granted | 5,542 | 2.33 | |||||||||||||||
Vested | (2,385 | ) | 2.28 | ||||||||||||||
Cancelled | (1,623 | ) | 2.22 | ||||||||||||||
Balance at December 31, 2014 | 6,820 | 2.3 | |||||||||||||||
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, 2014, 2013, and 2012: | ||||||||||||||||
Years Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Share-based compensation expense by type: | |||||||||||||||||
Stock options | $ | 4,704 | $ | 6,617 | $ | 7,426 | |||||||||||
Restricted stock units | 5,609 | 5,671 | 7,049 | ||||||||||||||
ESPP | 178 | 57 | — | ||||||||||||||
Total share-based compensation expense | $ | 10,491 | $ | 12,345 | $ | 14,475 | |||||||||||
Share-based compensation expense included in the consolidated statements of operations: | |||||||||||||||||
Cost of services | $ | 1,956 | $ | 1,873 | $ | 2,117 | |||||||||||
General and administrative expense | 4,741 | 5,971 | 6,511 | ||||||||||||||
Sales and marketing expense | 2,317 | 2,245 | 3,104 | ||||||||||||||
Research and development expense | 1,477 | 2,256 | 2,743 | ||||||||||||||
Total share-based compensation expense | $ | 10,491 | $ | 12,345 | $ | 14,475 | |||||||||||
Leases_and_Commitments_Tables
Leases and Commitments (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
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, 2014 are as follows: | |||
2015 | $ | 3,990 | ||
2016 | 3,152 | |||
2017 | 2,780 | |||
2018 | 2,850 | |||
2019 | 1,279 | |||
Thereafter | 1,011 | |||
Total minimum payments | $ | 15,062 | ||
Minimum Purchase commitments | The following summarizes minimum commitments as of December 31, 2014: | |||
2015 | $ | 32,241 | ||
2016 | 8,483 | |||
2017 | 1,466 | |||
2018 | 857 | |||
2019 | 353 | |||
Thereafter | — | |||
Total minimum payments | $ | 43,400 | ||
Future minimum capital lease payments | Future minimum capital lease payments at December 31, 2014 were as follows: | |||
2015 | $ | 238 | ||
2016 | 134 | |||
2017 | 4 | |||
2018 | — | |||
2019 | — | |||
Thereafter | — | |||
Total | 376 | |||
Amounts representing interest | (18 | ) | ||
Present value of minimum lease payments | $ | 358 | ||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||
(Loss) income before taxes | The Company's loss from continuing operations before income taxes consists of the following: | ||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
(Loss) income from continuing operations before income taxes: | |||||||||||||||||||||
United States | $ | (25,025 | ) | $ | (34,789 | ) | $ | (29,991 | ) | ||||||||||||
Foreign | 372 | 200 | 437 | ||||||||||||||||||
$ | (24,653 | ) | $ | (34,589 | ) | $ | (29,554 | ) | |||||||||||||
Components of provision (benefit) for income taxes | The components of the provision for income taxes are as follows: | ||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Current: | |||||||||||||||||||||
Federal | $ | (143 | ) | $ | — | $ | — | ||||||||||||||
State | 26 | 80 | (20 | ) | |||||||||||||||||
Foreign | 680 | 442 | 558 | ||||||||||||||||||
Total current | 563 | 522 | 538 | ||||||||||||||||||
Deferred: | |||||||||||||||||||||
Federal | 15 | 16 | 16 | ||||||||||||||||||
State | — | — | — | ||||||||||||||||||
Foreign | (375 | ) | (151 | ) | (73 | ) | |||||||||||||||
Total deferred | (360 | ) | (135 | ) | (57 | ) | |||||||||||||||
Total provision | $ | 203 | $ | 387 | $ | 481 | |||||||||||||||
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: | ||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Amount | Percent | Amount | Percent | Amount | Percent | ||||||||||||||||
U.S. federal statutory tax rate | $ | (8,629 | ) | 35 | % | $ | (12,106 | ) | 35 | % | $ | (10,344 | ) | 35 | % | ||||||
Impact related to sale of discontinued operations | (143 | ) | 1 | % | — | — | % | — | — | % | |||||||||||
Valuation allowance | 7,424 | (30 | )% | 12,958 | (37 | )% | 10,329 | (35 | )% | ||||||||||||
Foreign income taxes | (26 | ) | — | % | 221 | (1 | )% | 351 | (1 | )% | |||||||||||
State income taxes | 26 | — | % | 80 | — | % | (20 | ) | — | % | |||||||||||
Non-deductible expenses | 1,335 | (6 | )% | (783 | ) | 2 | % | 168 | (1 | )% | |||||||||||
Uncertain tax positions | 201 | (1 | )% | 14 | — | % | (18 | ) | — | % | |||||||||||
Share-based compensation | — | — | % | — | — | % | — | — | % | ||||||||||||
Other | 15 | — | % | 3 | — | % | 15 | — | % | ||||||||||||
Provision for income taxes | $ | 203 | (1 | )% | $ | 387 | (1 | )% | $ | 481 | (2 | )% | |||||||||
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: | ||||||||||||||||||||
December 31, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Deferred tax assets: | |||||||||||||||||||||
Share-based compensation | $ | 13,613 | $ | 12,797 | |||||||||||||||||
Net operating loss and tax credit carry-forwards | 33,519 | 25,052 | |||||||||||||||||||
Deferred revenue | 2,089 | 2,808 | |||||||||||||||||||
Accounts receivable reserves | 556 | 537 | |||||||||||||||||||
Fixed assets | 4,813 | 5,751 | |||||||||||||||||||
Other | 1,693 | 2,267 | |||||||||||||||||||
Total deferred tax assets | 56,283 | 49,212 | |||||||||||||||||||
Deferred tax liabilities: | |||||||||||||||||||||
Intangible assets | (177 | ) | (738 | ) | |||||||||||||||||
Prepaid expenses | (144 | ) | (164 | ) | |||||||||||||||||
Other | (36 | ) | (65 | ) | |||||||||||||||||
Total deferred tax liabilities | (357 | ) | (967 | ) | |||||||||||||||||
Valuation allowance | (54,654 | ) | (47,166 | ) | |||||||||||||||||
Net deferred tax assets | $ | 1,272 | $ | 1,079 | |||||||||||||||||
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: | ||||||||||||||||||||
Unrecognized | |||||||||||||||||||||
Tax Benefits | |||||||||||||||||||||
Balance at January 1, 2013 | $ | 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 | ||||||||||||||||||||
Additions for tax positions related to current year | — | ||||||||||||||||||||
Additions for tax positions related to prior years | 312 | ||||||||||||||||||||
Settlements | — | ||||||||||||||||||||
Adjustment related to foreign currency translation | (4 | ) | |||||||||||||||||||
Reductions related to the lapse of applicable statute of limitations | (22 | ) | |||||||||||||||||||
Reduction for tax positions of prior years | — | ||||||||||||||||||||
Balance at December 31, 2014 | $ | 2,043 | |||||||||||||||||||
Segment_Reporting_and_Geograph1
Segment Reporting and Geographic Information (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
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, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Revenue | ||||||||||||
Americas | $ | 101,302 | $ | 119,020 | $ | 125,600 | ||||||
EMEA | 33,630 | 30,793 | 30,898 | |||||||||
Asia Pacific | 27,327 | 23,620 | 23,738 | |||||||||
Total revenue | $ | 162,259 | $ | 173,433 | $ | 180,236 | ||||||
Long-lived assets by geographical area | The following table sets forth long-lived assets by geographic area: | |||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Long-lived Assets | ||||||||||||
Americas | $ | 22,505 | $ | 26,502 | $ | 36,513 | ||||||
International | 11,202 | 8,757 | 11,125 | |||||||||
Total long-lived assets | $ | 33,707 | $ | 35,259 | $ | 47,638 | ||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
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, 2014: | ||||||||||||||||
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: | ||||||||||||||||
Money market funds (2) | $ | 57 | $ | 57 | $ | — | $ | — | ||||||||
Corporate notes and bonds (1) | 21,850 | — | 21,850 | — | ||||||||||||
Commercial paper (1) | 1,497 | — | 1,497 | — | ||||||||||||
Certificate of deposit (1) | 11,010 | — | 11,010 | — | ||||||||||||
Convertible debt security (1) | 1,000 | — | — | 1,000 | ||||||||||||
Total assets measured at fair value | $ | 35,414 | $ | 57 | $ | 34,357 | $ | 1,000 | ||||||||
____________ | ||||||||||||||||
-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, 2014 | ||||||||||||||||
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, 2014 and 2013. | |||||||||||||||
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: | ||||||||||||||||
For the Three Months Ended | ||||||||||||||||
March 31, | June 30, | Sept. 30, | Dec. 31, | |||||||||||||
2014 | 2014 | 2014 (a) | 2014 | |||||||||||||
Revenues | $ | 41,170 | $ | 41,343 | $ | 39,020 | $ | 40,727 | ||||||||
Gross profit | $ | 15,267 | $ | 15,873 | $ | 16,141 | $ | 16,129 | ||||||||
Loss from continuing operations | $ | (7,640 | ) | $ | (7,138 | ) | $ | (5,071 | ) | $ | (5,007 | ) | ||||
Income (loss) from discontinued operations | $ | — | $ | 269 | $ | (4 | ) | $ | — | |||||||
Net loss | $ | (7,640 | ) | $ | (6,869 | ) | $ | (5,075 | ) | $ | (5,007 | ) | ||||
Basic and diluted net loss per share from continuing | $ | (0.08 | ) | $ | (0.07 | ) | $ | (0.05 | ) | $ | (0.05 | ) | ||||
operations | ||||||||||||||||
Basic and diluted net loss per share from discontinued | $ | — | $ | — | $ | — | $ | — | ||||||||
operations | ||||||||||||||||
Basic and diluted net loss per share | $ | (0.08 | ) | $ | (0.07 | ) | $ | (0.05 | ) | $ | (0.05 | ) | ||||
Basic and diluted weighted average common shares | 97,946 | 98,419 | 98,458 | 98,637 | ||||||||||||
outstanding | ||||||||||||||||
(a) During the three months ended September 30, 2014, the Company recorded an immaterial error correction of approximately $1,100 relating to previous over billings by a co-location provider. The correction was recorded as a reduction of costs of revenue. | ||||||||||||||||
For the Three Months Ended | ||||||||||||||||
March 31, | June 30, | Sept. 30, | Dec. 31, | |||||||||||||
2013 | 2013 | 2013 | 2013 (b) | |||||||||||||
Revenues | $ | 45,813 | $ | 42,763 | $ | 42,656 | $ | 42,200 | ||||||||
Gross profit | $ | 16,777 | $ | 14,417 | $ | 15,240 | $ | 15,275 | ||||||||
Loss from continuing operations | $ | (8,136 | ) | $ | (11,233 | ) | $ | (10,903 | ) | $ | (4,704 | ) | ||||
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 operations | $ | (0.08 | ) | $ | (0.12 | ) | $ | (0.11 | ) | $ | (0.05 | ) | ||||
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 | ||||||||||||||||
(b) See discussion of sale of the WCM business in Note 4. |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | 3 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 |
Total cost of revenue | $98,849 | $111,725 | $113,218 | |
Reclassification [Member] | ||||
Total cost of revenue | $1,100 | $1,100 |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Details Textual) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 31, 2014 |
Summary of Significant Accounting Policies (Textual) [Abstract] | ||||
Foreign exchange translation | $6,055 | $941 | $172 | |
Foreign exchange translation gains (losses) | 1,489 | -92 | -513 | |
Advertising expenses | 1,409 | 2,754 | 2,474 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Estimated fair value in excess of carrying value of goodwill | $169,141 | $117,330 | ||
Percentage of estimated fair value of goodwill exceeding carrying value | 80.00% | 53.00% | ||
Control premium used to determine fair value of goodwill | 40.00% | |||
Finite-Lived Intangible Assets [Line Items] | ||||
Expected dividend rate (percent) | 0.00% | 0.00% | 0.00% | |
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, 2014 | |
Network equipment [Member] | |
Estimated useful lives of assets | |
Estimated useful lives of assets | 3 years |
Computer equipment and software [Member] | |
Estimated useful lives of assets | |
Estimated useful lives of assets | 3 years |
Furniture and fixtures [Member] | |
Estimated useful lives of assets | |
Estimated useful lives of assets | 3 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 | 5 years |
Summary_of_Significant_Account6
Summary of Significant Accounting Policies 4 (Details) (Maximum [Member]) | 12 Months Ended |
Dec. 31, 2014 | |
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, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Summary of marketable securities (designated as available-for-sale) | ||
Amortized Cost | $32,554 | |
Gross Unrealized Gains | 15 | |
Gross Unrealized Losses | 17 | |
Estimated Fair Value | 32,552 | |
Government agency bonds [Member] | ||
Summary of marketable securities (designated as available-for-sale) | ||
Amortized Cost | 261 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Estimated Fair Value | 261 | |
Certificate of deposit [Member] | ||
Summary of marketable securities (designated as available-for-sale) | ||
Amortized Cost | 11,040 | 4,080 |
Gross Unrealized Gains | 2 | 0 |
Gross Unrealized Losses | 32 | 4 |
Estimated Fair Value | 11,010 | 4,076 |
Commercial paper [Member] | ||
Summary of marketable securities (designated as available-for-sale) | ||
Amortized Cost | 1,498 | 2,200 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 1 | 0 |
Estimated Fair Value | 1,497 | 2,200 |
Corporate notes and bonds [Member] | ||
Summary of marketable securities (designated as available-for-sale) | ||
Amortized Cost | 21,876 | 26,001 |
Gross Unrealized Gains | 7 | 15 |
Gross Unrealized Losses | 33 | 7 |
Estimated Fair Value | 21,850 | 26,009 |
Convertible debt security [Member] | ||
Summary of marketable securities (designated as available-for-sale) | ||
Amortized Cost | 1,000 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Estimated Fair Value | 1,000 | |
Debt securities [Member] | ||
Summary of marketable securities (designated as available-for-sale) | ||
Amortized Cost | 35,414 | 32,542 |
Gross Unrealized Gains | 9 | 15 |
Gross Unrealized Losses | 66 | 11 |
Estimated Fair Value | 35,357 | 32,546 |
Publicly traded common stock [Member] | ||
Summary of marketable securities (designated as available-for-sale) | ||
Amortized Cost | 12 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 6 | |
Estimated Fair Value | $6 |
Investments_in_Marketable_Secu3
Investments in Marketable Securities (Details 1) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Amortized cost and estimated fair value of marketable securities (designated as available-for-sale) by maturity | ||
Amortized Cost | $32,554 | |
Gross Unrealized Gains | 15 | |
Gross Unrealized Losses | 17 | |
Estimated Fair Value | 32,552 | |
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 | 19,798 | 17,031 |
Amortized Cost, Due after one year and through five years | 15,616 | 15,511 |
Amortized Cost | 35,414 | 32,542 |
Gross Unrealized Gains, Due in one year or less | 5 | 2 |
Gross Unrealized Gains, Due after one year and through five years | 4 | 13 |
Gross Unrealized Gains | 9 | 15 |
Gross Unrealized Losses, Due in one year or less | 9 | 5 |
Gross Unrealized Losses, Due after one year and through five years | 57 | 6 |
Gross Unrealized Losses | 66 | 11 |
Estimated Fair Value, Due in one year or less | 19,794 | 17,028 |
Estimated Fair Value, Due after one year and through five years | 15,563 | 15,518 |
Estimated Fair Value | $35,357 | $32,546 |
Business_Disposition_Details
Business Disposition (Details) (USD $) | 12 Months Ended | 0 Months Ended | 3 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 23, 2013 | Mar. 31, 2014 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Proceeds from sale of business | $0 | $12,341 | $0 | ||
Goodwill | 3,799 | ||||
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 | ||||
Goodwill | 3,799 | ||||
Gain (loss) on sale of business | 3,836 | ||||
Clickability, Inc. [Member] | Other, net [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Gain (loss) on sale of business | ($62) |
Discontinued_Operations_Detail
Discontinued Operations (Details Textual) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 01, 2011 | |||
Discontinued Operations (Textual) [Abstract] | ||||||||||||||
Amount of net proceeds from sale | $61,000,000 | |||||||||||||
Estimated receivable from DG | 10,854,000 | |||||||||||||
Gain on sale of discontinued operations, net of income taxes | 269,000 | -411,000 | -3,024,000 | |||||||||||
Cash paid during the year for income taxes, net of refunds | 647,000 | 321,000 | 1,428,000 | |||||||||||
Income (loss) from discontinued operations, net of income taxes | 0 | -4,000 | [1] | 269,000 | 0 | -411,000 | [2] | -15,000 | 0 | 0 | 265,000 | -426,000 | -2,861,000 | |
Discontinued operations charged | 2,861,000 | |||||||||||||
General corporate overhead costs allocated to discontinued operations | 0 | |||||||||||||
DG FastChannel Inc. [Member] | ||||||||||||||
Discontinued Operations (Textual) [Abstract] | ||||||||||||||
Amount of net proceeds from sale | 269,000 | |||||||||||||
Allowance for doubtful accounts | 412,000 | 2,060,000 | ||||||||||||
Proceeds from divestiture of businesses related to receivables previously written off | 414,000 | |||||||||||||
Cash paid during the year for income taxes, net of refunds | 145,000 | |||||||||||||
Net Working Capital adjustments claims | $818,000 | |||||||||||||
[1] | During the three months ended September 30, 2014, the Company recorded an immaterial error correction of approximately $1,100 relating to previous over billings by a co-location provider. The correction was recorded as a reduction of costs of revenue. | |||||||||||||
[2] | See discussion of sale of the WCM business in Note 4. |
Discontinued_Operations_Detail1
Discontinued Operations (Details 1) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Operating results of discontinued operations | |||||||||||||
General and administrative expenses | ($4) | ($15) | $163 | ||||||||||
(Loss) gain on sale of discontinued operations, net of income taxes | 269 | -411 | -3,024 | ||||||||||
(Loss) income before income taxes | 265 | -426 | -2,861 | ||||||||||
Income tax expense | 0 | 0 | 0 | ||||||||||
(Loss) income from discontinued operations | $0 | ($4) | [1] | $269 | $0 | ($411) | [2] | ($15) | $0 | $0 | $265 | ($426) | ($2,861) |
(Loss) income from discontinued operations per weighted average share: | |||||||||||||
Basic and diluted (in dollars per share) | $0 | ($0.01) | ($0.02) | ||||||||||
Shares used in per weighted average share calculation for discontinued operations: | |||||||||||||
Basic and diluted (in shares) | 98,365 | 96,851 | 101,283 | ||||||||||
[1] | During the three months ended September 30, 2014, the Company recorded an immaterial error correction of approximately $1,100 relating to previous over billings by a co-location provider. The correction was recorded as a reduction of costs of revenue. | ||||||||||||
[2] | See discussion of sale of the WCM business in Note 4. |
Accounts_Receivable_net_Detail
Accounts Receivable, net (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Summary of Accounts receivable, net | ||
Accounts receivable | $14,507 | $17,497 |
Unbilled accounts receivable | 9,949 | 5,943 |
Total accounts receivable, gross | 24,456 | 23,440 |
Less: credit allowance | -380 | -610 |
Less: allowance for doubtful accounts | -1,454 | -1,400 |
Total accounts receivable, net | $22,622 | $21,430 |
Goodwill_Details
Goodwill (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Schedule of changes in the carrying amount of goodwill | ||
Beginning Balance | $77,035 | $80,278 |
Foreign currency translation adjustment | -902 | 556 |
Disposition of the WCM business | -3,799 | |
Ending Balance | $76,133 | $77,035 |
Property_and_Equipment_Details
Property and Equipment (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property and equipment, net | ||
Property and equipment, gross | $214,953 | $202,424 |
Less: accumulated depreciation | -182,317 | -169,519 |
Total property and equipment, net | 32,636 | 32,905 |
Network equipment [Member] | ||
Property and equipment, net | ||
Property and equipment, gross | 192,145 | 180,896 |
Computer equipment and software [Member] | ||
Property and equipment, net | ||
Property and equipment, gross | 12,169 | 11,073 |
Furniture and fixtures [Member] | ||
Property and equipment, net | ||
Property and equipment, gross | 2,718 | 2,723 |
Leasehold improvements [Member] | ||
Property and equipment, net | ||
Property and equipment, gross | 7,351 | 7,162 |
Other equipment [Member] | ||
Property and equipment, net | ||
Property and equipment, gross | $570 | $570 |
Property_and_Equipment_Details1
Property and Equipment (Details Textual) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property and Equipment (Textual) [Abstract] | |||
Cost of services depreciation | $16,673 | $22,942 | $27,992 |
Operating expense depreciation | $2,391 | $2,961 | $2,972 |
Other_Current_Liabilities_Deta
Other Current Liabilities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Other current liabilities | ||
Accrued compensation and benefits | $5,266 | $6,682 |
Accrued cost of revenue | 2,031 | 1,833 |
Accrued legal fees | 1,292 | 1,769 |
Deferred rent | 1,277 | 1,074 |
Other accrued expenses | 4,517 | 3,664 |
Total other current liabilities | $14,383 | $15,022 |
Other_Long_Term_Liabilities_De
Other Long Term Liabilities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Other long term liabilities | ||
Deferred rent | $2,511 | $3,384 |
Income taxes payable | 529 | 121 |
Total other long term liabilities | $3,040 | $3,505 |
Contingencies_Details
Contingencies (Details) (USD $) | 0 Months Ended | 1 Months Ended | 12 Months Ended | ||||
Apr. 24, 2009 | Feb. 29, 2008 | Dec. 31, 2008 | Sep. 30, 2014 | Dec. 31, 2007 | 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 | 65,600,000 | 0 | 48,100,000 | ||||
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, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Computation of basic and diluted net income (loss) per share | |||||||||||||
Net loss from continuing operations | ($5,007) | ($5,071) | [1] | ($7,138) | ($7,640) | ($4,704) | [2] | ($10,903) | ($11,233) | ($8,136) | ($24,856) | ($34,976) | ($30,035) |
Income (loss) from discontinued operations, net of income taxes | 0 | -4 | [1] | 269 | 0 | -411 | [2] | -15 | 0 | 0 | 265 | -426 | -2,861 |
Net loss | ($5,007) | ($5,075) | [1] | ($6,869) | ($7,640) | ($5,115) | [2] | ($10,918) | ($11,233) | ($8,136) | ($24,591) | ($35,402) | ($32,896) |
Basic and diluted weighted average outstanding shares of common stock (in shares) | 98,637 | 98,458 | [1] | 98,419 | 97,946 | 97,380 | [2] | 96,949 | 96,257 | 96,818 | 98,365 | 96,851 | 101,283 |
Basic and diluted loss per share: | |||||||||||||
Basic and diluted net loss per share, Continuing operations (in dollars per share) | ($0.05) | ($0.05) | [1] | ($0.07) | ($0.08) | ($0.05) | [2] | ($0.11) | ($0.12) | ($0.08) | ($0.25) | ($0.36) | ($0.30) |
Basic and diluted net loss per share, Discontinued operations (in dollars per share) | $0 | $0 | [1] | $0 | $0 | $0 | [2] | $0 | $0 | $0 | $0 | ($0.01) | ($0.02) |
Total Basic and diluted net loss per share (in dollars per share) | ($0.05) | ($0.05) | [1] | ($0.07) | ($0.08) | ($0.05) | [2] | ($0.11) | ($0.12) | ($0.08) | ($0.25) | ($0.37) | ($0.32) |
[1] | During the three months ended September 30, 2014, the Company recorded an immaterial error correction of approximately $1,100 relating to previous over billings by a co-location provider. The correction was recorded as a reduction of costs of revenue. | ||||||||||||
[2] | See discussion of sale of the WCM business in Note 4. |
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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Stock options and restricted stock (RSUs) [Member] | |||
Net Loss per Share (Textual) [Abstract] | |||
Excluded outstanding options and restricted stock units | 2,468 | 1,986 | 2,273 |
Stockholders_Equity_Details
Stockholders' Equity (Details) (USD $) | 12 Months Ended | 9 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Feb. 12, 2014 |
Equity, Class of Treasury Stock [Line Items] | |||||
Payments for Repurchase of Common Stock | $4,542 | $5,512 | $20,851 | ||
Share-based compensation | 10,491 | 12,345 | 14,475 | ||
Issuance of common stock for contingent consideration (in shares) | 0 | ||||
Number of shares authorized under plan | 5,446,000 | ||||
Issuance of preferred stock authorized (shares) | 7,500,000 | 7,500,000 | |||
Employee Stock Purchase Plan [Member] | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Discount from market price for employees (percent) | 15.00% | ||||
Issuance of common stock under employee stock purchase plan (in shares) | 269,000 | 135,000 | |||
Proceeds received for stock issued | 487 | 225 | |||
Common Stock reserved for future options and restricted stock awards (shares) | 3,596,000 | ||||
Employee funds held by Company for future purchase of shares | 88 | ||||
Share-based compensation | 178 | 57 | 0 | ||
Share Repurchase Program [Member] | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Stock repurchase program authorized amount | 15,000 | ||||
Stock repurchased and retired during period (shares) | 1,719,000 | 2,300,000 | |||
Payments for Repurchase of Common Stock | $4,683 | $5,512 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Decrease in Accumulated Other Comprehensive Income [Roll Forward] | |||
Beginning balance | ($1,663) | ||
Other comprehensive loss before reclassifications | -6,123 | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | ||
Other comprehensive loss, net of tax | -6,123 | -954 | -200 |
Ending balance | -7,786 | -1,663 | |
Foreign Currency [Member] | |||
Decrease in Accumulated Other Comprehensive Income [Roll Forward] | |||
Beginning balance | -1,688 | ||
Other comprehensive loss before reclassifications | -6,055 | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | ||
Other comprehensive loss, net of tax | -6,055 | ||
Ending balance | -7,743 | ||
Unrealized Gains (Losses) on Available for Sale Securities [Member] | |||
Decrease in Accumulated Other Comprehensive Income [Roll Forward] | |||
Beginning balance | 25 | ||
Other comprehensive loss before reclassifications | -68 | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | ||
Other comprehensive loss, net of tax | -68 | ||
Ending balance | ($43) |
ShareBased_Compensation_Detail
Share-Based Compensation (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Stock option activity | |||
Number of Shares, Beginning Balance | 15,982 | 14,310 | 13,348 |
Number of Shares, Granted | 4,215 | 4,902 | 2,972 |
Number of Shares, Exercised | -522 | -143 | -176 |
Number of Shares, Cancelled | -2,803 | -3,087 | -1,834 |
Number of Shares, Ending Balance | 16,872 | 15,982 | 14,310 |
Weighted Average Exercise Price | |||
Weighted Average Exercise Price, Beginning Balance (in dollars per share) | $4 | $4.58 | $5.23 |
Weighted Average Exercise Price, Granted (in dollars per share) | $2.40 | $2.19 | $2.40 |
Weighted Average Exercise Price, Exercised (in dollars per share) | $1.71 | $0.26 | $1.08 |
Weighted Average Exercise Price, Canceled (in dollars per share) | $4.15 | $3.87 | $6.10 |
Weighted Average Exercise Price, Ending Balance (in dollars per share) | $3.66 | $4 | $4.58 |
ShareBased_Compensation_Detail1
Share-Based Compensation (Details 1) (USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 |
Outstanding stock options | |
Options Outstanding, Number of Options Outstanding | 16,872 |
Options Exercisable, Number of Options Exercisable | 10,510 |
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 | 493 |
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 1 year 2 months 12 days |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $0.38 |
Options Exercisable, Number of Options Exercisable | 493 |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $0.38 |
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 | 9,535 |
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 8 years 6 months |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $2.26 |
Options Exercisable, Number of Options Exercisable | 3,439 |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $2.18 |
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 | 2,621 |
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 3 years 3 months 18 days |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $3.74 |
Options Exercisable, Number of Options Exercisable | 2,458 |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $3.78 |
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 | 1,533 |
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 4 years 10 months 24 days |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $5.16 |
Options Exercisable, Number of Options Exercisable | 1,458 |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $5.15 |
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 | 1,633 |
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 1 year 4 months 24 days |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $6.46 |
Options Exercisable, Number of Options Exercisable | 1,620 |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $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 | 1,057 |
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 3 years 6 months |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $11.06 |
Options Exercisable, Number of Options Exercisable | 1,042 |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $11.10 |
ShareBased_Compensation_Detail2
Share-Based Compensation (Details 2) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Grant date fair value of option | |||
Expected volatility | 66.05% | 77.96% | 78.10% |
Expected term, years | 5 years 11 months 26 days | 6 years 0 months 18 days | 5 years 10 months 17 days |
Risk-free interest | 1.83% | 1.31% | 0.91% |
Expected dividends | 0.00% | 0.00% | 0.00% |
ShareBased_Compensation_Detail3
Share-Based Compensation (Details 3) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
RSUs with service-based vesting conditions [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Units outstanding | 6,820 | 5,286 | 4,232 | |
Performance-based RSUs [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Units outstanding | 0 | 0 | 349 | |
Unvested RSUs [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Units outstanding | 6,820 | 5,286 | 4,581 | 3,851 |
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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Restricted Stock Units (RSUs) [Member] | |||
Restricted stock units (RSUs) outstanding | |||
Number of Units, Beginning Balance | 5,286 | 4,581 | 3,851 |
Number of Units, Granted | 5,542 | 4,970 | 4,085 |
Number of Units, Vested | -2,385 | -2,032 | -2,450 |
Number of Units, Cancelled | -1,623 | -2,233 | -905 |
Number of Units, Ending Balance | 6,820 | 5,286 | 4,581 |
Weighted Average Fair Value | |||
Weighted Average Fair Value, Beginning Balance (in dollars per share) | $2.24 | $2.74 | $3.66 |
Weighted Average Fair Value, Granted (in dollars per share) | $2.33 | $2.15 | $2.37 |
Weighted Average Fair Value, Vested (in dollars per share) | $2.28 | $2.53 | $2.68 |
Weighted Average Fair Value, Canceled (in dollars per share) | $2.22 | $2.78 | $3.17 |
Weighted Average Fair Value, Ending Balance (in dollars per share) | $2.30 | $2.24 | $2.74 |
ShareBased_Compensation_Detail5
Share-Based Compensation (Details 5) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Components of share-based compensation expense | |||
Share-based compensation | $10,491 | $12,345 | $14,475 |
Cost of services [Member] | |||
Components of share-based compensation expense | |||
Share-based compensation | 1,956 | 1,873 | 2,117 |
General and administrative expense [Member] | |||
Components of share-based compensation expense | |||
Share-based compensation | 4,741 | 5,971 | 6,511 |
Sales and marketing expense [Member] | |||
Components of share-based compensation expense | |||
Share-based compensation | 2,317 | 2,245 | 3,104 |
Research and development expense [Member] | |||
Components of share-based compensation expense | |||
Share-based compensation | 1,477 | 2,256 | 2,743 |
Stock options [Member] | |||
Components of share-based compensation expense | |||
Share-based compensation | 4,704 | 6,617 | 7,426 |
Restricted Stock Units (RSUs) [Member] | |||
Components of share-based compensation expense | |||
Share-based compensation | 5,609 | 5,671 | 7,049 |
ESPP [Member] | |||
Components of share-based compensation expense | |||
Share-based compensation | $178 | $57 | $0 |
ShareBased_Compensation_Detail6
Share-Based Compensation (Details Textual) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Weighted average period of unvested stock compensation | 2 years 7 months 2 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 | $1.45 | $1.48 | $1.60 |
Total intrinsic value of the options exercised | $449 | $265 | $309 |
Aggregate intrinsic value of options outstanding | 6,008 | ||
Weighted average remaining contractual options period exercisable | 4 years 4 months 24 days | ||
Unrecognized share-based compensation expense related to stock options | 8,418 | ||
Share-based compensation related to stock options | 4,704 | 6,617 | 7,426 |
Unrecognized share-based compensation expense total | 21,546 | ||
Unrecognized share-based compensation expense related to restricted stock awards | 13,128 | ||
Share-based compensation | 10,491 | 12,345 | 14,475 |
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 7 months 24 days | ||
Weighted-average grant-date fair value of RSUs granted | $2.33 | $2.15 | $2.37 |
Aggregate intrinsic value of restricted stock units outstanding | 18,892 | ||
Share-based payment compensation related to restricted stock awards and restricted stock units | 5,609 | 5,671 | 7,049 |
Total intrinsic value of the units vested | 5,469 | 5,117 | 5,400 |
Share-Based Compensation (Textual) [Abstract] | |||
Share-based compensation | 5,609 | 5,671 | 7,049 |
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 | $4,704 | $6,617 | $7,426 |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 1 Months Ended | 12 Months Ended | 1 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2007 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Jul. 31, 2006 |
Related Party Transaction [Line Items] | |||||
Preferred Stock Conversion Ratio | 1 | ||||
Ownership percentage | 31.00% | 31.00% | 31.00% | ||
Invoiced for office space rental | $154 | $16 | |||
Percentage of revenue derived from related parties | 1.00% | 1.00% | |||
Total outstanding accounts receivable from all related parties | $7 | $1,300 | 0 | ||
Maximum [Member] | |||||
Related Party Transaction [Line Items] | |||||
Percentage of revenue derived from related parties | 1.00% | ||||
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 (in Dollars per share) | $3.26 | ||||
Basis of conversion of Series B Convertible Preferred Stock into shares of common stock | on a 1-for-1 share basis |
Leases_and_Commitments_Details
Leases and Commitments (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Future minimum lease payments over remaining lease periods | |
2015 | $3,990 |
2016 | 3,152 |
2017 | 2,780 |
2018 | 2,850 |
2019 | 1,279 |
Thereafter | 1,011 |
Total minimum payments | $15,062 |
Leases_and_Commitments_Details1
Leases and Commitments (Details 1) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Minimum purchase commitments | |
2015 | $32,241 |
2016 | 8,483 |
2017 | 1,466 |
2018 | 857 |
2019 | 353 |
Thereafter | 0 |
Total minimum payments | $43,400 |
Leases_and_Commitments_Details2
Leases and Commitments (Details Textual) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Leases and Commitments (Textual) [Abstract] | |||
Rent and operating expense relating to operating lease agreements and bandwidth and co-location agreements | $58,288 | $61,693 | $58,818 |
Outstanding balance for capital leases | 358 | 824 | |
Recorded assets under capital lease obligations | 2,224 | 2,312 | |
Related accumulated amortization total | 2,209 | 1,878 | |
Average interest rate on outstanding capital leases | 6.00% | ||
Interest expense related to capital leases | $32 | $76 | $170 |
Leases_and_Commitments_Details3
Leases and Commitments (Details 2) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Future minimum capital lease payments | ||
2015 | $238 | |
2016 | 134 | |
2017 | 4 | |
2018 | 0 | |
2019 and thereafter | 0 | |
Total | 376 | |
Amounts representing interest | -18 | |
Present value of minimum lease payments | $358 | $824 |
Concentrations_Details
Concentrations (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Concentrations (Textual) [Abstract] | |||
Percentage of Company's total revenue from Netflix | 11.00% | 11.00% | |
Revenue from foreign sources | $60,957 | $54,413 | $54,636 |
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 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
(Loss) income before income taxes: | |||
United States | ($25,025) | ($34,789) | ($29,991) |
Foreign | 372 | 200 | 437 |
Loss from continuing operations before income taxes | ($24,653) | ($34,589) | ($29,554) |
Income_Taxes_Details_1
Income Taxes (Details 1) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current: | |||
Federal | ($143) | $0 | $0 |
State | 26 | 80 | -20 |
Foreign | 680 | 442 | 558 |
Total current | 563 | 522 | 538 |
Deferred: | |||
Federal | 15 | 16 | 16 |
State | 0 | 0 | 0 |
Foreign | -375 | -151 | -73 |
Total deferred | -360 | -135 | -57 |
Total (benefit) provision | $203 | $387 | $481 |
Income_Taxes_Details_2
Income Taxes (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
U.S. federal statutory tax | ($8,629) | ($12,106) | ($10,344) |
Impact related to sale of discontinued operations | -143 | 0 | 0 |
Valuation allowance | 7,424 | 12,958 | 10,329 |
Foreign income taxes | -26 | 221 | 351 |
State income taxes | 26 | 80 | -20 |
Non-deductible expenses | 1,335 | -783 | 168 |
Uncertain tax positions | 201 | 14 | -18 |
Share based compensation | 0 | 0 | 0 |
Other | 15 | 3 | 15 |
Total (benefit) provision | $203 | $387 | $481 |
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 | 1.00% | 0.00% | 0.00% |
Valuation allowance rate | -30.00% | -37.00% | -35.00% |
Foreign income taxes rate | 0.00% | -1.00% | -1.00% |
State income taxes rate | 0.00% | 0.00% | 0.00% |
Non-deductible expenses, rate | -6.00% | 2.00% | -1.00% |
Uncertain tax positions rate | -1.00% | 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% | -1.00% | -2.00% |
Income_Taxes_Details_3
Income Taxes (Details 3) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ||
Share-based compensation | $13,613 | $12,797 |
Net operating loss and tax credit carry forwards | 33,519 | 25,052 |
Deferred revenue | 2,089 | 2,808 |
Accounts receivable reserves | 556 | 537 |
Fixed assets | 4,813 | 5,751 |
Other | 1,693 | 2,267 |
Total deferred tax assets | 56,283 | 49,212 |
Deferred tax liabilities: | ||
Intangible assets | -177 | -738 |
Prepaid expenses | -144 | -164 |
Other | -36 | -65 |
Total deferred tax liabilities | -357 | -967 |
Valuation allowance | -54,654 | -47,166 |
Net deferred tax assets (liabilities) | $1,272 | $1,079 |
Income_Taxes_Details_4
Income Taxes (Details 4) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Beginning balance | $1,757 | $1,757 |
Additions for tax positions related to current year | 0 | 0 |
Settlements | 0 | 0 |
Reduction for tax positions of prior years | 0 | 0 |
Additions for tax positions related to prior years | 312 | |
Adjustment related to foreign currency translation | -4 | |
Reductions related to the lapse of applicable statute of limitations | -22 | |
Ending balance | $2,043 | $1,757 |
Income_Taxes_Details_Textual
Income Taxes (Details Textual) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating Loss Carryforwards [Line Items] | |||
Valuation allowance of deferred tax assets | $1,600 | ||
Unrecognized tax benefits | 2,043 | 1,757 | 1,757 |
Unrecognized tax benefits that would impact effective tax rate | 446 | ||
Interest and penalties accrual related to unrecognized tax benefits | 79 | ||
Decrease in unrecognized tax benefits | 15 | ||
Undistributed earnings | 1,600 | ||
Federal [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforwards | 97,400 | ||
State [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforwards | 66,200 | ||
Tax Credit Carryforward, Amount | 88 | ||
Unrecorded Tax Benefits [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforwards | $10,750 | $10,350 |
401k_Plan_Details
401(k) Plan (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
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 | $1,225 | $1,196 | $1,101 |
Segment_Reporting_and_Geograph2
Segment Reporting and Geographic Information (Details Textual) | 12 Months Ended |
Dec. 31, 2014 | |
Location | |
Segment | |
Segment Reporting [Abstract] | |
Number of industry segment | 1 |
Number of geographic areas | 3 |
Segment_Reporting_and_Geograph3
Segment Reporting and Geographic Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Revenue earned by geographic area | |||||||||||||
Revenues | $40,727 | $39,020 | [1] | $41,343 | $41,170 | $42,200 | [2] | $42,656 | $42,763 | $45,813 | $162,259 | $173,433 | $180,236 |
Americas [Member] | |||||||||||||
Revenue earned by geographic area | |||||||||||||
Revenues | 101,302 | 119,020 | 125,600 | ||||||||||
EMEA [Member] | |||||||||||||
Revenue earned by geographic area | |||||||||||||
Revenues | 33,630 | 30,793 | 30,898 | ||||||||||
Asia Pacific [Member] | |||||||||||||
Revenue earned by geographic area | |||||||||||||
Revenues | $27,327 | $23,620 | $23,738 | ||||||||||
[1] | During the three months ended September 30, 2014, the Company recorded an immaterial error correction of approximately $1,100 relating to previous over billings by a co-location provider. The correction was recorded as a reduction of costs of revenue. | ||||||||||||
[2] | See discussion of sale of the WCM business in Note 4. |
Segment_Reporting_and_Geograph4
Segment Reporting and Geographic Information (Details 1) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Long-lived assets by geographical area | |||
Long-lived Assets | $33,707 | $35,259 | $47,638 |
Americas [Member] | |||
Long-lived assets by geographical area | |||
Long-lived Assets | 22,505 | 26,502 | 36,513 |
International [Member] | |||
Long-lived assets by geographical area | |||
Long-lived Assets | $11,202 | $8,757 | $11,125 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Assets: | ||||
Total assets measured at fair value | $35,414 | $42,292 | ||
Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | ||||
Assets: | ||||
Total assets measured at fair value | 57 | 9,746 | ||
Significant Other Observable Inputs (Level 2) [Member] | ||||
Assets: | ||||
Total assets measured at fair value | 34,357 | 32,546 | ||
Significant Unobservable Inputs (Level 3) [Member] | ||||
Assets: | ||||
Total assets measured at fair value | 1,000 | 0 | ||
Government agency bonds [Member] | ||||
Assets: | ||||
Total assets measured at fair value | 261 | [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] | ||
Government agency bonds [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||||
Assets: | ||||
Total assets measured at fair value | 261 | [1] | ||
Government agency bonds [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||||
Assets: | ||||
Total assets measured at fair value | 0 | [1] | ||
Money market funds [Member] | ||||
Assets: | ||||
Total assets measured at fair value | 57 | [2] | 9,740 | [2] |
Money market funds [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | ||||
Assets: | ||||
Total assets measured at fair value | 57 | [2] | 9,740 | [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 | 21,850 | [1] | 26,009 | [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 | 21,850 | [1] | 26,009 | [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 | 1,497 | [1] | 2,200 | [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 | 1,497 | [1] | 2,200 | [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 | 11,010 | [1] | 4,076 | [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 | 11,010 | [1] | 4,076 | [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] | ||
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] | ||
Publicly traded common stock [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||||
Assets: | ||||
Total assets measured at fair value | 0 | [1] | ||
Publicly traded common stock [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||||
Assets: | ||||
Total assets measured at fair value | 0 | [1] | ||
Convertible debt security [Member] | ||||
Assets: | ||||
Total assets measured at fair value | 1,000 | [1] | ||
Convertible debt security [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | ||||
Assets: | ||||
Total assets measured at fair value | 0 | [1] | ||
Convertible debt security [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||||
Assets: | ||||
Total assets measured at fair value | 0 | [1] | ||
Convertible debt security [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||||
Assets: | ||||
Total assets measured at fair value | $1,000 | [1] | ||
[1] | Classified in marketable securities | |||
[2] | Classified in cash and cash equivalents |
Fair_Value_Measurements_Detail1
Fair Value Measurements (Details Textual) (USD $) | 1 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||||
Investment in unconsolidated entity | $1,000 | |||
Unrealized loss on marketable securities | ($68) | ($13) | ($28) | |
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, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Quarterly results of operations | |||||||||||||
Revenues | $40,727 | $39,020 | [1] | $41,343 | $41,170 | $42,200 | [2] | $42,656 | $42,763 | $45,813 | $162,259 | $173,433 | $180,236 |
Gross profit | 16,129 | 16,141 | [1] | 15,873 | 15,267 | 15,275 | [2] | 15,240 | 14,417 | 16,777 | 63,410 | 61,708 | 67,018 |
Net loss from continuing operations | -5,007 | -5,071 | [1] | -7,138 | -7,640 | -4,704 | [2] | -10,903 | -11,233 | -8,136 | -24,856 | -34,976 | -30,035 |
Income (loss) from discontinued operations, net of income taxes | 0 | -4 | [1] | 269 | 0 | -411 | [2] | -15 | 0 | 0 | 265 | -426 | -2,861 |
Net loss | -5,007 | -5,075 | [1] | -6,869 | -7,640 | -5,115 | [2] | -10,918 | -11,233 | -8,136 | -24,591 | -35,402 | -32,896 |
Basic and diluted net loss per share, Continuing operations (in dollars per share) | ($0.05) | ($0.05) | [1] | ($0.07) | ($0.08) | ($0.05) | [2] | ($0.11) | ($0.12) | ($0.08) | ($0.25) | ($0.36) | ($0.30) |
Basic and diluted net loss per share, Discontinued operations (in dollars per share) | $0 | $0 | [1] | $0 | $0 | $0 | [2] | $0 | $0 | $0 | $0 | ($0.01) | ($0.02) |
Total Basic and diluted net loss per share (in dollars per share) | ($0.05) | ($0.05) | [1] | ($0.07) | ($0.08) | ($0.05) | [2] | ($0.11) | ($0.12) | ($0.08) | ($0.25) | ($0.37) | ($0.32) |
Basic and diluted weighted average outstanding shares of common stock (in shares) | 98,637 | 98,458 | [1] | 98,419 | 97,946 | 97,380 | [2] | 96,949 | 96,257 | 96,818 | 98,365 | 96,851 | 101,283 |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||
Cost of revenue | 98,849 | 111,725 | 113,218 | ||||||||||
Reclassification [Member] | |||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||
Cost of revenue | $1,100 | $1,100 | |||||||||||
[1] | During the three months ended September 30, 2014, the Company recorded an immaterial error correction of approximately $1,100 relating to previous over billings by a co-location provider. The correction was recorded as a reduction of costs of revenue. | ||||||||||||
[2] | See discussion of sale of the WCM business in Note 4. |
Schedule_II_Valuation_and_Qual1
Schedule II - Valuation and Qualifying Accounts (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reserves for accounts receivable [Member] | |||
Valuation and Qualifying Accounts | |||
Balance at Beginning of Period | $2,010 | $4,070 | $4,391 |
Additions, Charged to Costs and Expenses | 408 | 965 | 2,062 |
Additions, Charged Against Revenue | -230 | -30 | -170 |
Deductions, Write-Offs Net of Recoveries | 354 | 2,995 | 2,213 |
Balance at End of Period | 1,834 | 2,010 | 4,070 |
Deferred tax asset valuation allowance [Member] | |||
Valuation and Qualifying Accounts | |||
Balance at Beginning of Period | 47,166 | 46,215 | 36,215 |
Additions, Charged to Costs and Expenses | 7,488 | 951 | 10,000 |
Additions, Charged Against Revenue | 0 | 0 | 0 |
Deductions, Write-Offs Net of Recoveries | 0 | 0 | 0 |
Balance at End of Period | $54,654 | $47,166 | $46,215 |