Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Jul. 24, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | LIMELIGHT NETWORKS, INC. | |
Entity Central Index Key | 1,391,127 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 100,443,596 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 40,502 | $ 57,767 |
Marketable securities | 34,415 | 35,317 |
Accounts receivable, net | 31,444 | 22,622 |
Income taxes receivable | 212 | 237 |
Deferred income taxes | 71 | 78 |
Prepaid expenses and other current assets | 9,714 | 9,625 |
Total current assets | 116,358 | 125,646 |
Property and equipment, net | 37,788 | 32,636 |
Marketable securities, less current portion | 40 | 40 |
Deferred income taxes, less current portion | 1,374 | 1,364 |
Goodwill | 76,381 | 76,133 |
Other intangible assets, net | 693 | 1,071 |
Other assets | 4,437 | 4,451 |
Total assets | 237,071 | 241,341 |
Current liabilities: | ||
Accounts payable | 14,339 | 7,065 |
Deferred revenue | 4,142 | 3,509 |
Capital lease obligations | 0 | 223 |
Income taxes payable | 185 | 248 |
Other current liabilities | 11,391 | 14,383 |
Total current liabilities | 30,057 | 25,428 |
Capital lease obligations, less current portion | 0 | 135 |
Deferred income taxes | 134 | 170 |
Deferred revenue, less current portion | 89 | 405 |
Other long-term liabilities | 2,585 | 3,040 |
Total liabilities | $ 32,865 | $ 29,178 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Convertible preferred stock, $0.001 par value; 7,500 shares authorized; no shares issued and outstanding | $ 0 | $ 0 |
Common stock, $0.001 par value; 300,000 shares authorized at June 30, 2015, and December 31, 2014; 100,440 and 98,409 shares issued and outstanding at June 30, 2015, and December 31, 2014, respectively | 100 | 98 |
Additional paid-in capital | 470,389 | 464,294 |
Accumulated other comprehensive loss | (9,795) | (7,786) |
Accumulated deficit | (256,488) | (244,443) |
Total stockholders’ equity | 204,206 | 212,163 |
Total liabilities and stockholders’ equity | $ 237,071 | $ 241,341 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Convertible Preferred Stock, Par Value (in dollars per share) | $ 0.001 | $ 0.001 |
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) | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 300,000,000 | 300,000,000 |
Common Stock, Shares Issued | 100,440,000 | 98,409,000 |
Common Stock, Shares Outstanding | 100,440,000 | 98,409,000 |
Unaudited Consolidated Statemen
Unaudited Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Income Statement [Abstract] | |||||
Revenues | $ 43,795 | $ 41,343 | $ 86,124 | $ 82,512 | |
Cost of revenue: | |||||
Cost of services | [1] | 21,271 | 21,326 | 42,928 | 42,891 |
Depreciation — network | 4,376 | 4,144 | 8,528 | 8,481 | |
Total cost of revenue | 25,647 | 25,470 | 51,456 | 51,372 | |
Gross profit | 18,148 | 15,873 | 34,668 | 31,140 | |
Operating expenses: | |||||
General and administrative | 6,081 | 7,643 | 12,932 | 14,671 | |
Sales and marketing | 10,002 | 9,370 | 20,278 | 19,624 | |
Research and development | 7,646 | 4,859 | 13,909 | 9,437 | |
Depreciation and amortization | 635 | 977 | 1,276 | 2,043 | |
Total operating expenses | 24,364 | 22,849 | 48,395 | 45,775 | |
Operating loss | (6,216) | (6,976) | (13,727) | (14,635) | |
Other income (expense): | |||||
Interest expense | 0 | (7) | (4) | (19) | |
Interest income | 75 | 67 | 149 | 137 | |
Other, net | (131) | (195) | 1,682 | (178) | |
Total other income (expense) | (56) | (135) | 1,827 | (60) | |
Loss from continuing operations before income taxes | (6,272) | (7,111) | (11,900) | (14,695) | |
Income tax expense | 90 | 27 | 145 | 83 | |
Loss from continuing operations | (6,362) | (7,138) | (12,045) | (14,778) | |
Discontinued operations: | |||||
Income from discontinued operations, net of income taxes | 0 | 269 | 0 | 269 | |
Net loss | $ (6,362) | $ (6,869) | $ (12,045) | $ (14,509) | |
Net loss per share, Basic and diluted: | |||||
Continuing operations (in dollars per share) | $ (0.06) | $ (0.07) | $ (0.12) | $ (0.15) | |
Discontinued operations (in dollars per share) | 0 | 0 | 0 | 0 | |
Basic and diluted (in dollars per share) | $ (0.06) | $ (0.07) | $ (0.12) | $ (0.15) | |
Weighted average shares used in per share calculation: | |||||
Basic and diluted weighted average outstanding shares of common stock | 99,841 | 98,419 | 99,239 | 98,183 | |
[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. |
Unaudited Consolidated Stateme5
Unaudited Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (6,362) | $ (6,869) | $ (12,045) | $ (14,509) |
Other comprehensive income (loss), net of tax: | ||||
Unrealized (loss) gain on investments | (19) | 1 | 42 | 8 |
Foreign exchange translation gain (loss) | 1,020 | 614 | (2,051) | 767 |
Other comprehensive income (loss), net of tax | 1,001 | 615 | (2,009) | 775 |
Comprehensive loss | $ (5,361) | $ (6,254) | $ (14,054) | $ (13,734) |
Unaudited Consolidated Stateme6
Unaudited Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Operating activities | ||
Net loss | $ (12,045) | $ (14,509) |
Income from discontinued operations | 0 | 269 |
Net loss from continuing operations | (12,045) | (14,778) |
Adjustments to reconcile net loss to net cash used in operating activities of continuing operations: | ||
Depreciation and amortization | 9,804 | 10,524 |
Share-based compensation | 6,349 | 5,213 |
Foreign currency remeasurement (gain) loss | (1,595) | 140 |
Deferred income taxes | (115) | (202) |
Accounts receivable charges | 470 | 512 |
Amortization of premium on marketable securities | 106 | 286 |
Non cash tax benefit associated with income from discontinued operations | 0 | (59) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (9,292) | (3,148) |
Prepaid expenses and other current assets | (202) | 572 |
Income taxes receivable | 11 | 108 |
Other assets | 1,009 | 928 |
Accounts payable | 3,374 | 3,296 |
Deferred revenue | 317 | (807) |
Other current liabilities | (1,708) | (2,819) |
Income taxes payable | 0 | (119) |
Other long term liabilities | (444) | (235) |
Net cash used in operating activities of continuing operations | (3,961) | (588) |
Investing activities | ||
Purchases of marketable securities | (11,921) | (14,683) |
Maturities of marketable securities | 11,760 | 12,865 |
Purchases of property and equipment | (12,061) | (8,909) |
Proceeds from the sale of discontinued operations | 0 | 414 |
Net cash used in investing activities of continuing operations | (12,222) | (10,313) |
Financing activities | ||
Payments on capital lease obligations | (358) | (323) |
Payment of employee tax withholdings related to restricted stock vesting | (1,944) | (1,171) |
Cash paid for purchase of common stock | (957) | (1,204) |
Proceeds from exercise of stock options and employee stock plans | 2,519 | 734 |
Net cash used in financing activities of continuing operations | (740) | (1,964) |
Effect of exchange rate changes on cash and cash equivalents | (342) | 313 |
Net decrease in cash and cash equivalents | (17,265) | (12,552) |
Cash and cash equivalents, beginning of period | 57,767 | 85,956 |
Cash and cash equivalents, end of period | 40,502 | 73,404 |
Supplemental disclosure of cash flow information | ||
Cash paid during the period for interest | 4 | 19 |
Cash paid during the period for income taxes, net of refunds | 284 | 350 |
Property and equipment expenditures remaining in accounts payable and other current liabilities | $ 5,849 | $ 2,163 |
Nature of Business
Nature of Business | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business | Nature of Business Limelight operates a globally distributed, high-performance 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 security, 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. We were incorporated in Delaware in 2003, and have operated in the Phoenix metropolitan area since 2001 and elsewhere throughout the United States since 2003. We began international operations in 2004. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited interim consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. They do not include all of the information and footnotes required by U.S. generally accepted accounting principles (U.S. GAAP) for complete financial statements. Such interim financial information is unaudited but reflects all adjustments that, in the opinion of management, are necessary for the fair presentation of the interim periods presented. All such adjustments are, in the opinion of management, of a normal recurring nature. The results of operations presented in this quarterly report on Form 10-Q are not necessarily indicative of the results that may be expected for the year ending December 31, 2015, or for any future periods. This quarterly report on Form 10-Q should be read in conjunction with our audited financial statements and footnotes included in our annual report on Form 10-K for the fiscal year ended December 31, 2014. All information is presented in thousands, except per share amounts and where specifically noted. The consolidated financial statements include accounts of Limelight and our wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated. In addition, certain other reclassifications have been made to prior year amounts to conform to the current year presentation. 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 quarterly report on Form 10-Q are not necessarily indicative of the results that may be expected for the year ending December 31, 2015, or for any other future periods. Recent Accounting Standards Recently Adopted Accounting Pronouncements 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. We adopted this guidance on January 1, 2015. The new guidance would only impact us upon the disposal of a business. Recently Issued Accounting Pronouncements 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 us in the first quarter of 2017, if not deferred as discussed below. Early adoption is not permitted. The standard permits the use of the retrospective or cumulative effect transition method. In July 2015, the FASB decided to defer by one-year the effective date of ASU 2014-09. If this decision is codified without revision, the new standard will become effective for us beginning with the first quarter of 2018. We have not yet selected a transition method, and are currently in the process of evaluating the impact of adoption of this ASU on our 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 us in the first annual period ending after December 15, 2016, and interim periods within such year; however, early adoption is permitted. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements. In February 2015, the FASB issued ASU 2015-02, which provides a revised consolidation model for all reporting entities to use in evaluating whether they should consolidate certain legal entities. All legal entities will be subject to reevaluation under this revised consolidation model. The revised consolidation model, among other things, (i) modifies the evaluation of whether limited partnerships and similar legal entities are variable interest entities (VIEs) or voting interest entities, (ii) eliminates the presumption that a general partner should consolidate a limited partnership, and (iii) modifies the consolidation analysis of reporting entities that are involved with VIEs through fee arrangements and related party relationships. ASU 2015-2 is effective for fiscal years, and interim reporting periods within those fiscal years, beginning after September 1, 2016. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements. In April 2015, the FASB issued ASU 2015-05, which provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The guidance will not change U.S. GAAP for a customer's accounting for service contracts. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements. In June 2015, the FASB issued ASU 2015-10, which covers a wide range of Topics in the Codification. The amendments in this Update represent changes to clarify the Codification, correct unintended application of guidance, or make minor improvements to the Codification that are not expected to have a significant effect on current accounting practice or create a significant administrative cost on most entities. We do not anticipate that the adoption of this standard will have a material impact on our consolidated financial statements and footnote disclosures. |
Investments in Marketable Secur
Investments in Marketable Securities | 6 Months Ended |
Jun. 30, 2015 | |
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 June 30, 2015 : Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Certificate of deposit $ 16,560 $ 12 $ 6 $ 16,566 Commercial paper 1,500 — — 1,500 Corporate notes and bonds 16,410 7 28 16,389 Total marketable securities $ 34,470 $ 19 $ 34 $ 34,455 At June 30, 2015, we evaluated our marketable securities and determined unrealized losses were due to fluctuations in interest rates. We do not believe any of the unrealized losses represented an other-than-temporary impairment based on our evaluation of available evidence as of June 30, 2015. Our intent is to hold these investments to such time as these assets are no longer impaired. We view our available-for-sale securities as available for current operations. The amortized cost and estimated fair value of the marketable debt securities at June 30, 2015 , by maturity, are shown below: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Available-for-sale securities Due in one year or less $ 23,393 $ 13 $ 3 $ 23,403 Due after one year and through five years 11,077 6 31 11,052 $ 34,470 $ 19 $ 34 $ 34,455 The following is a summary of marketable securities, designated as available-for-sale, at December 31, 2014 : Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value 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 securities 1,000 — — 1,000 Total marketable securities $ 35,414 $ 9 $ 66 $ 35,357 The amortized cost and estimated fair value of the marketable debt securities at December 31, 2014 , by maturity, are shown below: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value 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 |
Accounts Receivable, net
Accounts Receivable, net | 6 Months Ended |
Jun. 30, 2015 | |
Receivables [Abstract] | |
Accounts Receivable, net | Accounts Receivable, net Accounts receivable, net include: June 30, December 31, 2015 2014 Accounts receivable $ 33,313 $ 24,456 Less: credit allowance (500 ) (380 ) Less: allowance for doubtful accounts (1,369 ) (1,454 ) Total accounts receivable, net $ 31,444 $ 22,622 |
Goodwill
Goodwill | 6 Months Ended |
Jun. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill We have recorded goodwill as a result of our 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 our acquisitions, the objective of the acquisition was to expand our product offerings and customer base and to achieve synergies related to cross selling opportunities, all of which contributed to the recognition of goodwill. We test goodwill for impairment on an annual basis or more frequently if events or changes in circumstances indicate that goodwill might be impaired. We concluded that we have one reporting unit and assigned the entire balance of goodwill to this reporting unit. The estimated fair value of the reporting unit is determined using our market capitalization as of our 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 our 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 our stock price; and • decline in observed control premiums paid in business combinations involving comparable companies. No interim indicators of impairment were identified as of June 30, 2015. Foreign currency translation adjustments increased the carrying amount of goodwill for the three and six months ended June 30, 2015, by $361 and $248 , respectively. |
Property and Equipment, net
Property and Equipment, net | 6 Months Ended |
Jun. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, net | Property and Equipment, net Property and equipment, net include: June 30, December 31, 2015 2014 Network equipment $ 138,907 $ 127,962 Computer equipment and software 10,540 9,079 Furniture and fixtures 2,379 2,498 Leasehold improvements 5,196 5,262 Other equipment 181 186 Total property and equipment 157,203 144,987 Less: accumulated depreciation and amortization (119,415 ) (112,351 ) Total property and equipment, net $ 37,788 $ 32,636 Depreciation and amortization expense related to property and equipment classified in operating expense was $434 and $639 for the three months ended June 30, 2015 and 2014 , respectively and was $877 and $1,368 for the six months ended June 30, 2015 and 2014, respectively. |
Other Current Liabilities
Other Current Liabilities | 6 Months Ended |
Jun. 30, 2015 | |
Other Liabilities Disclosure [Abstract] | |
Other Current Liabilities | Other Current Liabilities Other current liabilities include: June 30, December 31, 2015 2014 Accrued compensation and benefits $ 4,562 $ 5,266 Accrued cost of revenue 2,310 2,031 Deferred rent 1,086 1,277 Accrued legal fees 64 1,292 Other accrued expenses 3,369 4,517 Total other current liabilities $ 11,391 $ 14,383 |
Other Long Term Liabilities
Other Long Term Liabilities | 6 Months Ended |
Jun. 30, 2015 | |
Other Liabilities Disclosure [Abstract] | |
Other Long Term Liabilities | Other Long Term Liabilities Other long term liabilities include: June 30, December 31, 2015 2014 Deferred rent $ 2,096 $ 2,511 Income taxes payable 489 529 Total other long term liabilities $ 2,585 $ 3,040 |
Contingencies
Contingencies | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies Legal Matters Akamai Litigation In June 2006, Akamai Technologies, Inc. (Akamai) and the Massachusetts Institute of Technology (MIT) filed a lawsuit against us in the United States District Court for the District of Massachusetts alleging that we were 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 we infringed four claims of the ’703 patent at issue and rejecting our 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 we estimated to be $2,600 at December 31, 2007. We recorded an aggregate $48,100 as a provision for litigation as of December 31, 2007. During 2008, we 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 District Court denied our Motions for Judgment as a Matter of Law (JMOL), Obviousness, and a New Trial. The District Court also denied Akamai’s Motion for Permanent Injunction as premature and its Motions for Summary Judgment regarding our equitable defenses. The District Court conducted a bench trial in November 2008 regarding our equitable defenses. We also filed a motion for reconsideration of the District Court’s earlier denial of our motion for JMOL. Our motion for JMOL was based largely upon a clarification in the standard for a finding of joint infringement articulated by the United States Court of Appeals for the Federal Circuit in the case of Muniauction, Inc. v. Thomson Corp. , released after the District Court denied our initial motion for JMOL. On April 24, 2009, the District Court issued its order and memorandum setting aside the adverse jury verdict and ruling that we did not infringe Akamai’s ’703 patent and that we were entitled to JMOL. Based upon the District Court’s April 24, 2009 order, we reversed the $65,600 provision for litigation previously recorded for this lawsuit as we no longer believed that payment of any amounts represented by the litigation provision was probable. The District Court entered final judgment in our favor on May 22, 2009, and Akamai filed its notice of appeal of the District Court’s decision on May 26, 2009. On December 20, 2010, the United States Court of Appeals for the Federal Circuit issued its opinion affirming the District Court’s entry of judgment in our favor. On February 18, 2011, Akamai filed a motion with the Federal Circuit seeking a rehearing and rehearing en banc . On April 21, 2011, 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 District Court’s entry of judgment in our favor, and reinstated the appeal. On August 31, 2012, the Federal Circuit issued its opinion in the case. The Federal Circuit stated that the District Court correctly determined that we did not directly infringe Akamai’s ’703 patent and upheld the District Court’s decision to vacate the original jury’s damages award. The Federal Circuit also held that we 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 District Court, and gave Akamai an opportunity for a new trial to attempt to prove that we induced our customers to infringe Akamai’s patent under the Federal Circuit's new legal standard. On December 28, 2012, we filed a petition for writ of certiorari to the United States Supreme Court to appeal this sharply divided Federal Circuit decision. Akamai then filed a cross petition for consideration of the Court of Appeals' standard for direct infringement followed by an opposition to our 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, and on May 13, 2015, the Federal Circuit issued its opinion in the case, holding that we did not infringe Akamai's '703 patent. On June 12, 2015, Akamai filed a motion with the Federal Circuit seeking a rehearing en banc . We do 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, we believe that there is a reasonable possibility that we have incurred a loss related to the Akamai litigation. While we believe that there is a reasonable possibility that a loss has been incurred, we are not able to estimate a range of the loss due to the complexity and procedural status of the case. We will continue to vigorously defend against the allegation. Legal and other expenses associated with this case have been significant. We include these litigation expenses in general and administrative expenses as incurred, as reported in the consolidated statement of operations. Other Litigation We are 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 our business, financial position, results of operations, or cash flows. Litigation relating to the content delivery services industry is not uncommon, and we are, and from time to time have 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 We are 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 us conducting business online or providing Internet-related services. Increased regulation could negatively affect our business directly, as well as the businesses of our customers, which could reduce their demand for our services. For example, tax authorities in various states and abroad may impose taxes on the Internet-related revenue we generate 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, we may come under audit, which could result in changes to our tax estimates. We believe we maintain adequate tax reserves to offset potential liabilities that may arise upon audit. Although we believe our 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 | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Net Loss per Share | Net Loss per Share We calculate basic and diluted earnings per weighted average share based on net loss. We use 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 includes the dilutive effect of all potentially dilutive common stock, including awards granted under our equity incentive compensation plans 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: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Loss from continuing operations $ (6,362 ) $ (7,138 ) $ (12,045 ) $ (14,778 ) Income from discontinued operations $ — $ 269 $ — $ 269 Net loss $ (6,362 ) $ (6,869 ) $ (12,045 ) $ (14,509 ) Basic and diluted weighted average outstanding shares of common stock 99,841 98,419 99,239 98,183 Basic and diluted net loss per share: Continuing operations $ (0.06 ) $ (0.07 ) $ (0.12 ) $ (0.15 ) Discontinued operations — — — — Total $ (0.06 ) $ (0.07 ) $ (0.12 ) $ (0.15 ) For the three months ended June 30, 2015 and 2014 , potentially dilutive common stock, including awards granted under our equity incentive compensation plans of 5,998 (stock options 2,787 , restricted stock units 3,145 , employee stock purchase plan 66 ) and 2,080 (stock options 673 , restricted stock units 1,381 , employee stock purchase plan 26 ), respectively, were excluded from the computation of diluted net loss per share because including them would have been anti-dilutive. For the six months ended June 30, 2015 and 2014 , potentially dilutive common stock, including awards granted under our equity incentive compensation plans of 5,151 (stock options 2,088 , restricted stock units 2,997 , employee stock purchase plan 66 ) and 1,931 (stock options 626 , restricted stock units 1,279 , employee stock purchase plan 26 ), respectively, were excluded from the computation of diluted net loss per share because including them would have been anti-dilutive. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Common Stock On February 12, 2014, our board of directors authorized a $15,000 share repurchase program. Under this authorization, we may repurchase shares periodically in the open market or through privately negotiated transactions, in accordance with applicable securities rules regarding issuer repurchases. We did not purchase any shares during the three months ended June 30, 2015. During the six months ended June 30, 2015, we purchased and canceled 293 shares for $818 , including commissions and expenses. During the three and six months ended June 30, 2014, we purchased and canceled approximately 500 shares for approximately $1,233 including commissions and expenses. All repurchased shares were canceled and returned to authorized but unissued status. Employee Stock Purchase Plan In June 2013, our stockholders approved our 2013 Employee Stock Purchase Plan (ESPP). The ESPP allows participants to purchase our 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 three and six months ended June 30, 2015, we issued 202 shares under the ESPP. Total cash proceeds from the purchase of shares under the ESPP was approximately $451 . As of June 30, 2015, shares reserved for issuance to employees under this plan totaled 3,394 , and we held employee contributions of $241 (included in other current liabilities) for future purchases under the ESPP. The ESPP is considered compensatory. During the three months ended June 30, 2015 and 2014, we recorded compensation expense of $92 and $30 , respectively. During the six months ended June 30, 2015 and 2014, we recorded compensation expense of $166 and $86 , respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Changes in the components of accumulated other comprehensive loss, net of tax, for the six months ended June 30, 2015, was as follows: Unrealized Gains (Losses) on Foreign Available for Currency Sale Securities Total Balance, December 31, 2014 $ (7,743 ) $ (43 ) $ (7,786 ) Other comprehensive (loss) income before reclassifications (2,051 ) 42 (2,009 ) Amounts reclassified from accumulated other comprehensive income (loss) — — — Net current period other comprehensive (loss) income (2,051 ) 42 (2,009 ) Balance, June 30, 2015 $ (9,794 ) $ (1 ) $ (9,795 ) |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Share-Based Compensation The following table summarizes the components of share-based compensation expense included in our consolidated statement of operations: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Share-based compensation expense by type: Stock options $ 1,031 $ 1,195 $ 2,213 $ 2,425 Restricted stock units 2,157 1,409 3,970 2,702 ESPP 92 30 166 86 Total share-based compensation expense $ 3,280 $ 2,634 $ 6,349 $ 5,213 Share-based compensation expense included in the consolidated statements of operations: Cost of services $ 571 $ 498 $ 1,084 $ 1,002 General and administrative expense 1,476 1,165 2,882 2,365 Sales and marketing expense 608 601 1,297 1,126 Research and development expense 625 370 1,086 720 Total share-based compensation expense $ 3,280 $ 2,634 $ 6,349 $ 5,213 Unrecognized share-based compensation expense totaled approximately $23,949 at June 30, 2015 , of which $7,479 related to stock options and $16,470 related to restricted stock awards. We currently expect to recognize share-based compensation expense of $5,849 during the remainder of 2015, $10,131 in 2016 and the remainder thereafter based on scheduled vesting of the stock options and restricted stock units outstanding at June 30, 2015. |
Leases and Commitments
Leases and Commitments | 6 Months Ended |
Jun. 30, 2015 | |
Leases and Commitments [Abstract] | |
Leases and Commitments | Leases and Commitments Operating Leases We are committed to various non-cancellable operating leases for office space and office equipment that expire through 2022. Certain leases contain provisions for renewal options and rent escalations upon expiration of the initial lease terms. Approximate future minimum lease payments over the remaining lease periods as of June 30, 2015 , are as follows: Remainder of 2015 $ 2,137 2016 3,734 2017 3,070 2018 2,849 2019 1,151 Thereafter 604 Total minimum payments $ 13,545 Purchase Commitments We have 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 June 30, 2015 : Remainder of 2015 $ 20,464 2016 16,719 2017 3,810 2018 1,393 2019 409 Thereafter 19 Total minimum payments $ 42,814 Capital Leases We leased equipment under capital lease agreements which extended through 2017. The outstanding balance for capital leases was $358 as of December 31, 2014 . In March 2015, we paid $323 , which represented the outstanding balance for our capital lease obligations. As of June 30, 2015, we had no outstanding capital lease obligations. Interest expense for all periods presented was immaterial. |
Concentrations
Concentrations | 6 Months Ended |
Jun. 30, 2015 | |
Risks and Uncertainties [Abstract] | |
Concentrations | Concentrations During the three and six months ended June 30, 2015 , we had no customer who represented 10% or more of our total revenue. For the three and six months ended June 30, 2014, we had one customer, Netflix, Inc. who represented approximately 13% and 12% , respectively, of our total revenue. Revenue from customers located within the United States, our country of domicile, was $25,661 for the three months ended June 30, 2015, compared to $24,124 for the three months ended June 30, 2014 . For the six months ended June 30, 2015, revenue from customers located within the United States was $51,272 , compared to $49,284 for the six months ended June 30, 2014. During the three and six months ended June 30, 2015 and 2014, we had two countries, based on customer location, the United States and Japan, that accounted for 10% or more of our total revenues. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income Taxes Income taxes for the interim periods presented have been included in the accompanying consolidated financial statements on the basis of an estimated annual effective tax rate. Based on an estimated annual effective tax rate and discrete items, the income tax expense for the three months ended June 30, 2015 and 2014, was $90 and $27 , respectively. For the six months ended June 30, 2015 and 2014, income tax expense was $145 and $83 , respectively. Income tax expense was different than the statutory income tax rate primarily due to us providing for a valuation allowance on deferred tax assets in certain jurisdictions, and the recording of state and foreign tax expense for the three and six month periods. We file income tax returns in jurisdictions with varying statues of limitations. Tax years 2010 through 2014 generally remain subject to examination by federal and most state tax authorities. As of June 30, 2015, we are not under any federal or state examination for income taxes. |
Segment Reporting and Geographi
Segment Reporting and Geographic Areas | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting and Geographic Areas We operate in one industry segment — content delivery and related services. We operate in three geographic areas — Americas, Europe, Middle East and Africa (EMEA) and Asia Pacific. Revenue by geography is based on the location of the customer from which the revenue is earned. The following table sets forth revenue by geographic area: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Americas $ 26,968 61.6 % $ 25,980 62.8 % $ 54,228 63.0 % $ 53,204 64.5 % EMEA 7,527 17.2 % 8,861 21.4 % 15,575 18.0 % 17,363 21.0 % Asia Pacific 9,300 21.2 % 6,502 15.7 % 16,321 19.0 % 11,945 14.5 % Total revenue $ 43,795 100.0 % $ 41,343 100.0 % $ 86,124 100.0 % $ 82,512 100.0 % The following table sets forth long-lived assets by geographic area in which the assets are located: June 30, December 31, 2015 2014 Americas $ 23,183 $ 22,505 International 15,298 11,202 Total long-lived assets $ 38,481 $ 33,707 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements As of June 30, 2015 , and December 31, 2014 , we held certain assets and liabilities that were required to be measured at fair value on a recurring basis. The following is a summary of fair value measurements at June 30, 2015 : Fair Value Measurements at Reporting Date Using Description Total Quoted Prices In Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Money market funds (2) $ 174 $ 174 $ — $ — Corporate notes and bonds (1) 16,389 — 16,389 — Commercial paper (1) 1,500 1,500 Certificate of deposit (1) 16,566 — 16,566 — Total assets measured at fair value $ 34,629 $ 174 $ 34,455 $ — ____________ (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 Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) 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 During the three months ended June 30, 2015, a $1,000 convertible debt security, classified as Level 3 in the fair value hierarchy as of December 31, 2014, was converted into preferred shares of the issuing entity. As a result of the conversion, we recognized $275 in gain, related to a beneficial conversion feature, which is included in other income (expense) in our statement of operations. After conversion, at June 30, 2015, the investment is carried at cost ( $1,275 ) and is evaluated for impairment quarterly or when events or changes in circumstances indicate the carrying value of the investment may exceed its fair value. The Company did not estimate the fair value of the investment because the Company did not identify any events or circumstances that would have a significant adverse effect on the fair value of the investment. Determining fair value is not practicable because the preferred shares are not publicly traded and information necessary to determine fair value is not available. The cost basis investment has been reclassified to, and is included in, other assets in our consolidated balance sheet, and is no longer subject to fair value measurement disclosures and was accordingly transferred out of Level 3 as of June 30, 2015. 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. |
Summary of Significant Accoun25
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited interim consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. They do not include all of the information and footnotes required by U.S. generally accepted accounting principles (U.S. GAAP) for complete financial statements. Such interim financial information is unaudited but reflects all adjustments that, in the opinion of management, are necessary for the fair presentation of the interim periods presented. All such adjustments are, in the opinion of management, of a normal recurring nature. The results of operations presented in this quarterly report on Form 10-Q are not necessarily indicative of the results that may be expected for the year ending December 31, 2015, or for any future periods. This quarterly report on Form 10-Q should be read in conjunction with our audited financial statements and footnotes included in our annual report on Form 10-K for the fiscal year ended December 31, 2014. All information is presented in thousands, except per share amounts and where specifically noted. The consolidated financial statements include accounts of Limelight and our wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated. In addition, certain other reclassifications have been made to prior year amounts to conform to the current year presentation. |
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 quarterly report on Form 10-Q are not necessarily indicative of the results that may be expected for the year ending December 31, 2015, or for any other future periods. |
Recent Accounting Pronouncements | Recent Accounting Standards Recently Adopted Accounting Pronouncements 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. We adopted this guidance on January 1, 2015. The new guidance would only impact us upon the disposal of a business. Recently Issued Accounting Pronouncements 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 us in the first quarter of 2017, if not deferred as discussed below. Early adoption is not permitted. The standard permits the use of the retrospective or cumulative effect transition method. In July 2015, the FASB decided to defer by one-year the effective date of ASU 2014-09. If this decision is codified without revision, the new standard will become effective for us beginning with the first quarter of 2018. We have not yet selected a transition method, and are currently in the process of evaluating the impact of adoption of this ASU on our 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 us in the first annual period ending after December 15, 2016, and interim periods within such year; however, early adoption is permitted. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements. In February 2015, the FASB issued ASU 2015-02, which provides a revised consolidation model for all reporting entities to use in evaluating whether they should consolidate certain legal entities. All legal entities will be subject to reevaluation under this revised consolidation model. The revised consolidation model, among other things, (i) modifies the evaluation of whether limited partnerships and similar legal entities are variable interest entities (VIEs) or voting interest entities, (ii) eliminates the presumption that a general partner should consolidate a limited partnership, and (iii) modifies the consolidation analysis of reporting entities that are involved with VIEs through fee arrangements and related party relationships. ASU 2015-2 is effective for fiscal years, and interim reporting periods within those fiscal years, beginning after September 1, 2016. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements. In April 2015, the FASB issued ASU 2015-05, which provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The guidance will not change U.S. GAAP for a customer's accounting for service contracts. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements. In June 2015, the FASB issued ASU 2015-10, which covers a wide range of Topics in the Codification. The amendments in this Update represent changes to clarify the Codification, correct unintended application of guidance, or make minor improvements to the Codification that are not expected to have a significant effect on current accounting practice or create a significant administrative cost on most entities. We do not anticipate that the adoption of this standard will have a material impact on our consolidated financial statements and footnote disclosures. |
Investments in Marketable Sec26
Investments in Marketable Securities (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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 June 30, 2015 : Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Certificate of deposit $ 16,560 $ 12 $ 6 $ 16,566 Commercial paper 1,500 — — 1,500 Corporate notes and bonds 16,410 7 28 16,389 Total marketable securities $ 34,470 $ 19 $ 34 $ 34,455 The following is a summary of marketable securities, designated as available-for-sale, at December 31, 2014 : Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value 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 securities 1,000 — — 1,000 Total marketable securities $ 35,414 $ 9 $ 66 $ 35,357 |
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 Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value 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 June 30, 2015 , by maturity, are shown below: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Available-for-sale securities Due in one year or less $ 23,393 $ 13 $ 3 $ 23,403 Due after one year and through five years 11,077 6 31 11,052 $ 34,470 $ 19 $ 34 $ 34,455 |
Accounts Receivable, net (Table
Accounts Receivable, net (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Receivables [Abstract] | |
Summary of accounts receivable, net | Accounts receivable, net include: June 30, December 31, 2015 2014 Accounts receivable $ 33,313 $ 24,456 Less: credit allowance (500 ) (380 ) Less: allowance for doubtful accounts (1,369 ) (1,454 ) Total accounts receivable, net $ 31,444 $ 22,622 |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment, net | Property and equipment, net include: June 30, December 31, 2015 2014 Network equipment $ 138,907 $ 127,962 Computer equipment and software 10,540 9,079 Furniture and fixtures 2,379 2,498 Leasehold improvements 5,196 5,262 Other equipment 181 186 Total property and equipment 157,203 144,987 Less: accumulated depreciation and amortization (119,415 ) (112,351 ) Total property and equipment, net $ 37,788 $ 32,636 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Other Liabilities Disclosure [Abstract] | |
Other current liabilities | Other current liabilities include: June 30, December 31, 2015 2014 Accrued compensation and benefits $ 4,562 $ 5,266 Accrued cost of revenue 2,310 2,031 Deferred rent 1,086 1,277 Accrued legal fees 64 1,292 Other accrued expenses 3,369 4,517 Total other current liabilities $ 11,391 $ 14,383 |
Other Long Term Liabilities (Ta
Other Long Term Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Other Liabilities Disclosure [Abstract] | |
Other long term liabilities | Other long term liabilities include: June 30, December 31, 2015 2014 Deferred rent $ 2,096 $ 2,511 Income taxes payable 489 529 Total other long term liabilities $ 2,585 $ 3,040 |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Loss from continuing operations $ (6,362 ) $ (7,138 ) $ (12,045 ) $ (14,778 ) Income from discontinued operations $ — $ 269 $ — $ 269 Net loss $ (6,362 ) $ (6,869 ) $ (12,045 ) $ (14,509 ) Basic and diluted weighted average outstanding shares of common stock 99,841 98,419 99,239 98,183 Basic and diluted net loss per share: Continuing operations $ (0.06 ) $ (0.07 ) $ (0.12 ) $ (0.15 ) Discontinued operations — — — — Total $ (0.06 ) $ (0.07 ) $ (0.12 ) $ (0.15 ) |
Accumulated Other Comprehensi32
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
Schedule of accumulated other comprehensive loss | Changes in the components of accumulated other comprehensive loss, net of tax, for the six months ended June 30, 2015, was as follows: Unrealized Gains (Losses) on Foreign Available for Currency Sale Securities Total Balance, December 31, 2014 $ (7,743 ) $ (43 ) $ (7,786 ) Other comprehensive (loss) income before reclassifications (2,051 ) 42 (2,009 ) Amounts reclassified from accumulated other comprehensive income (loss) — — — Net current period other comprehensive (loss) income (2,051 ) 42 (2,009 ) Balance, June 30, 2015 $ (9,794 ) $ (1 ) $ (9,795 ) |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Components of share-based compensation expense | The following table summarizes the components of share-based compensation expense included in our consolidated statement of operations: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Share-based compensation expense by type: Stock options $ 1,031 $ 1,195 $ 2,213 $ 2,425 Restricted stock units 2,157 1,409 3,970 2,702 ESPP 92 30 166 86 Total share-based compensation expense $ 3,280 $ 2,634 $ 6,349 $ 5,213 Share-based compensation expense included in the consolidated statements of operations: Cost of services $ 571 $ 498 $ 1,084 $ 1,002 General and administrative expense 1,476 1,165 2,882 2,365 Sales and marketing expense 608 601 1,297 1,126 Research and development expense 625 370 1,086 720 Total share-based compensation expense $ 3,280 $ 2,634 $ 6,349 $ 5,213 |
Leases and Commitments (Tables)
Leases and Commitments (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Leases and Commitments [Abstract] | |
Future minimum lease payments over remaining lease periods | Approximate future minimum lease payments over the remaining lease periods as of June 30, 2015 , are as follows: Remainder of 2015 $ 2,137 2016 3,734 2017 3,070 2018 2,849 2019 1,151 Thereafter 604 Total minimum payments $ 13,545 |
Minimum Purchase commitments | The following summarizes minimum commitments as of June 30, 2015 : Remainder of 2015 $ 20,464 2016 16,719 2017 3,810 2018 1,393 2019 409 Thereafter 19 Total minimum payments $ 42,814 |
Segment Reporting and Geograp35
Segment Reporting and Geographic Areas (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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 by geographic area: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Americas $ 26,968 61.6 % $ 25,980 62.8 % $ 54,228 63.0 % $ 53,204 64.5 % EMEA 7,527 17.2 % 8,861 21.4 % 15,575 18.0 % 17,363 21.0 % Asia Pacific 9,300 21.2 % 6,502 15.7 % 16,321 19.0 % 11,945 14.5 % Total revenue $ 43,795 100.0 % $ 41,343 100.0 % $ 86,124 100.0 % $ 82,512 100.0 % |
Long-lived assets by geographical area | The following table sets forth long-lived assets by geographic area in which the assets are located: June 30, December 31, 2015 2014 Americas $ 23,183 $ 22,505 International 15,298 11,202 Total long-lived assets $ 38,481 $ 33,707 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [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 June 30, 2015 : Fair Value Measurements at Reporting Date Using Description Total Quoted Prices In Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Money market funds (2) $ 174 $ 174 $ — $ — Corporate notes and bonds (1) 16,389 — 16,389 — Commercial paper (1) 1,500 1,500 Certificate of deposit (1) 16,566 — 16,566 — Total assets measured at fair value $ 34,629 $ 174 $ 34,455 $ — ____________ (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 Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) 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 |
Nature of Business (Details)
Nature of Business (Details) | 6 Months Ended |
Jun. 30, 2015service_unit | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of services | 4 |
Investments in Marketable Sec38
Investments in Marketable Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Summary of marketable securities (designated as available-for-sale) | ||
Amortized Cost | $ 34,470 | $ 35,414 |
Gross Unrealized Gains | 19 | 9 |
Gross Unrealized Losses | 34 | 66 |
Estimated Fair Value | 34,455 | 35,357 |
Certificate of deposit [Member] | ||
Summary of marketable securities (designated as available-for-sale) | ||
Amortized Cost | 16,560 | 11,040 |
Gross Unrealized Gains | 12 | 2 |
Gross Unrealized Losses | 6 | 32 |
Estimated Fair Value | 16,566 | 11,010 |
Commercial paper [Member] | ||
Summary of marketable securities (designated as available-for-sale) | ||
Amortized Cost | 1,500 | 1,498 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 1 |
Estimated Fair Value | 1,500 | 1,497 |
Corporate notes and bonds [Member] | ||
Summary of marketable securities (designated as available-for-sale) | ||
Amortized Cost | 16,410 | 21,876 |
Gross Unrealized Gains | 7 | 7 |
Gross Unrealized Losses | 28 | 33 |
Estimated Fair Value | $ 16,389 | 21,850 |
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 |
Investments in Marketable Sec39
Investments in Marketable Securities (Details 1) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Amortized cost and estimated fair value of marketable securities (designated as available-for-sale) by maturity | ||
Amortized Cost | $ 34,470 | $ 35,414 |
Gross Unrealized Gains | 19 | 9 |
Gross Unrealized Losses | 34 | 66 |
Estimated Fair Value | 34,455 | 35,357 |
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 | 23,393 | 19,798 |
Gross Unrealized Gains, Due in one year or less | 13 | 5 |
Gross Unrealized Losses, Due in one year or less | 3 | 9 |
Estimated Fair Value, Due in one year or less | 23,403 | 19,794 |
Amortized Cost, Due after one year and through five years | 11,077 | 15,616 |
Gross Unrealized Gains, Due after one year and through five years | 6 | 4 |
Gross Unrealized Losses, Due after one year and through five years | 31 | 57 |
Estimated Fair Value, Due after one year and through five years | 11,052 | 15,563 |
Amortized Cost | 34,470 | 35,414 |
Gross Unrealized Gains | 19 | 9 |
Gross Unrealized Losses | 34 | 66 |
Estimated Fair Value | $ 34,455 | $ 35,357 |
Accounts Receivable, net (Detai
Accounts Receivable, net (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Summary of Accounts receivable, net | ||
Accounts receivable | $ 33,313 | $ 24,456 |
Less: credit allowance | (500) | (380) |
Less: allowance for doubtful accounts | (1,369) | (1,454) |
Total accounts receivable, net | $ 31,444 | $ 22,622 |
Goodwill (Details Textual)
Goodwill (Details Textual) - Jun. 30, 2015 - USD ($) $ in Thousands | Total | Total |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Foreign currency translation adjustment | $ 361 | $ 248 |
Property and Equipment, net (De
Property and Equipment, net (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Property and equipment, net | ||
Property and equipment, gross | $ 157,203 | $ 144,987 |
Less: accumulated depreciation and amortization | (119,415) | (112,351) |
Total property and equipment, net | 37,788 | 32,636 |
Network equipment [Member] | ||
Property and equipment, net | ||
Property and equipment, gross | 138,907 | 127,962 |
Computer equipment and software [Member] | ||
Property and equipment, net | ||
Property and equipment, gross | 10,540 | 9,079 |
Furniture and fixtures [Member] | ||
Property and equipment, net | ||
Property and equipment, gross | 2,379 | 2,498 |
Leasehold improvements [Member] | ||
Property and equipment, net | ||
Property and equipment, gross | 5,196 | 5,262 |
Other equipment [Member] | ||
Property and equipment, net | ||
Property and equipment, gross | $ 181 | $ 186 |
Property and Equipment, net (43
Property and Equipment, net (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Property, Plant and Equipment [Abstract] | ||||
Operating expense depreciation | $ 434 | $ 639 | $ 877 | $ 1,368 |
Other Current Liabilities (Deta
Other Current Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Other Liabilities Disclosure [Abstract] | ||
Accrued compensation and benefits | $ 4,562 | $ 5,266 |
Accrued cost of revenue | 2,310 | 2,031 |
Deferred rent | 1,086 | 1,277 |
Accrued legal fees | 64 | 1,292 |
Other accrued expenses | 3,369 | 4,517 |
Total other current liabilities | $ 11,391 | $ 14,383 |
Other Long Term Liabilities (De
Other Long Term Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Other Liabilities Disclosure [Abstract] | ||
Deferred rent | $ 2,096 | $ 2,511 |
Income taxes payable | 489 | 529 |
Total other long term liabilities | $ 2,585 | $ 3,040 |
Contingencies (Details)
Contingencies (Details) | Apr. 24, 2009USD ($) | Feb. 29, 2008USD ($)Claim | Dec. 31, 2008USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2007USD ($) | Sep. 30, 2006Patent | Jun. 30, 2006Patent |
Loss Contingency [Abstract] | |||||||
Number of patents Company was infringing | Patent | 3 | 2 | |||||
Number of claims Company infringed | Claim | 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 | ||||
Additional provision | $ 17,500,000 | ||||||
Decrease in loss contingency accrual | $ 65,600,000 |
Net Loss per Share (Details)
Net Loss per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Earnings Per Share [Abstract] | ||||
Loss from continuing operations | $ (6,362) | $ (7,138) | $ (12,045) | $ (14,778) |
Income from discontinued operations | 0 | 269 | 0 | 269 |
Net loss | $ (6,362) | $ (6,869) | $ (12,045) | $ (14,509) |
Basic and diluted weighted average outstanding shares of common stock | 99,841 | 98,419 | 99,239 | 98,183 |
Basic and diluted net loss per share: | ||||
Continuing operations (in dollars per share) | $ (0.06) | $ (0.07) | $ (0.12) | $ (0.15) |
Discontinued operations (in dollars per share) | 0 | 0 | 0 | 0 |
Basic and diluted (in dollars per share) | $ (0.06) | $ (0.07) | $ (0.12) | $ (0.15) |
Net Loss per Share (Details Tex
Net Loss per Share (Details Textual) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Excluded outstanding options and restricted stock units | 5,998 | 2,080 | 5,151 | 1,931 |
Stock options [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Excluded outstanding options and restricted stock units | 2,787 | 673 | 2,088 | 626 |
Restricted stock units [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Excluded outstanding options and restricted stock units | 3,145 | 1,381 | 2,997 | 1,279 |
Employee stock purchase plan [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Excluded outstanding options and restricted stock units | 66 | 26 | 66 | 26 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Feb. 12, 2014 | |
Equity, Class of Treasury Stock [Line Items] | |||||
Cash paid for common stock including commissions | $ 957,000 | $ 1,204,000 | |||
Employee stock purchase plan [Member] | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Discount from market price for employees | 15.00% | ||||
Shares issued | 202,000 | 202,000 | |||
Cash proceeds received from issuance of shares | $ 451,000 | $ 451,000 | |||
Number of shares authorized under plan | 3,394,000 | 3,394,000 | |||
Employee funds held by company for future purchase of shares | $ 241,000 | $ 241,000 | |||
Compensation expense recognized | $ 92,000 | $ 30,000 | $ 166,000 | $ 86,000 | |
Share Repurchase Program [Member] | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Stock repurchase amount authorized | $ 15,000,000 | ||||
Stock repurchased and retired during period (shares) | 0 | 500,000 | 293,000 | 500,000 | |
Cash paid for common stock including commissions | $ 0 | $ 1,233,000 | $ 818,000 | $ 1,233,000 |
Accumulated Other Comprehensi50
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Decrease in Accumulated Other Comprehensive Income [Roll Forward] | ||||
Beginning balance | $ (7,786) | |||
Other comprehensive (loss) income before reclassifications | (2,009) | |||
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | |||
Other comprehensive income (loss), net of tax | $ 1,001 | $ 615 | (2,009) | $ 775 |
Ending balance | (9,795) | (9,795) | ||
Foreign Currency [Member] | ||||
Decrease in Accumulated Other Comprehensive Income [Roll Forward] | ||||
Beginning balance | (7,743) | |||
Other comprehensive (loss) income before reclassifications | (2,051) | |||
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | |||
Other comprehensive income (loss), net of tax | (2,051) | |||
Ending balance | (9,794) | (9,794) | ||
Unrealized Gains (Losses) on Available for Sale Securities [Member] | ||||
Decrease in Accumulated Other Comprehensive Income [Roll Forward] | ||||
Beginning balance | (43) | |||
Other comprehensive (loss) income before reclassifications | 42 | |||
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | |||
Other comprehensive income (loss), net of tax | 42 | |||
Ending balance | $ (1) | $ (1) |
Share-Based Compensation (Detai
Share-Based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Components of share-based compensation expense | ||||
Share-based compensation | $ 3,280 | $ 2,634 | $ 6,349 | $ 5,213 |
Cost of services [Member] | ||||
Components of share-based compensation expense | ||||
Share-based compensation | 571 | 498 | 1,084 | 1,002 |
General and administrative expense [Member] | ||||
Components of share-based compensation expense | ||||
Share-based compensation | 1,476 | 1,165 | 2,882 | 2,365 |
Sales and marketing expense [Member] | ||||
Components of share-based compensation expense | ||||
Share-based compensation | 608 | 601 | 1,297 | 1,126 |
Research and development expense [Member] | ||||
Components of share-based compensation expense | ||||
Share-based compensation | 625 | 370 | 1,086 | 720 |
Stock options [Member] | ||||
Components of share-based compensation expense | ||||
Share-based compensation | 1,031 | 1,195 | 2,213 | 2,425 |
Restricted stock units [Member] | ||||
Components of share-based compensation expense | ||||
Share-based compensation | 2,157 | 1,409 | 3,970 | 2,702 |
ESPP [Member] | ||||
Components of share-based compensation expense | ||||
Share-based compensation | $ 92 | $ 30 | $ 166 | $ 86 |
Share-Based Compensation (Det52
Share-Based Compensation (Details Textual) $ in Thousands | Jun. 30, 2015USD ($) |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |
Unrecognized share-based compensation expense total | $ 23,949 |
Share-based compensation expense, remainder of 2015 | 5,849 |
Share-based compensation expense, 2016 | 10,131 |
Stock options [Member] | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |
Unrecognized share-based compensation expense total | 7,479 |
Restricted stock awards [Member] | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |
Unrecognized share-based compensation expense total | $ 16,470 |
Leases and Commitments (Details
Leases and Commitments (Details) $ in Thousands | Jun. 30, 2015USD ($) |
Future minimum lease payments over remaining lease periods | |
Remainder of 2015 | $ 2,137 |
2,016 | 3,734 |
2,017 | 3,070 |
2,018 | 2,849 |
2,019 | 1,151 |
Thereafter | 604 |
Total minimum payments | $ 13,545 |
Leases and Commitments (Detai54
Leases and Commitments (Details 1) $ in Thousands | Jun. 30, 2015USD ($) |
Minimum purchase commitments | |
Remainder of 2015 | $ 20,464 |
2,016 | 16,719 |
2,017 | 3,810 |
2,018 | 1,393 |
2,019 | 409 |
Thereafter | 19 |
Total minimum payments | $ 42,814 |
Leases and Commitments (Detai55
Leases and Commitments (Details Textual) - USD ($) | 1 Months Ended | 6 Months Ended | ||
Mar. 31, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Leases Capital [Abstract] | ||||
Outstanding balance for capital leases | $ 0 | $ 358,000 | ||
Payments on capital lease obligations | $ 323,000 | $ 358,000 | $ 323,000 |
Concentrations (Details)
Concentrations (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015USD ($)customercountry | Jun. 30, 2014USD ($)customercountry | Jun. 30, 2015USD ($)customercountry | Jun. 30, 2014USD ($)customercountry | |
Concentration Risk [Line Items] | ||||
Revenues | $ 43,795 | $ 41,343 | $ 86,124 | $ 82,512 |
Customer Concentration Risk [Member] | Total Revenue [Member] | ||||
Concentration Risk [Line Items] | ||||
Number of customers | customer | 0 | 0 | 1 | 1 |
Customer Concentration Risk [Member] | Total Revenue [Member] | Netflix, Inc. [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration percentage | 13.00% | 12.00% | ||
Geographic Concentration Risk [Member] | Total Revenue [Member] | ||||
Concentration Risk [Line Items] | ||||
Number of countries accounting for more than 10% of revenue | country | 2 | 2 | 2 | 2 |
United States | Geographic Concentration Risk [Member] | Total Revenue [Member] | ||||
Concentration Risk [Line Items] | ||||
Revenues | $ 25,661 | $ 24,124 | $ 51,272 | $ 49,284 |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense | $ 90 | $ 27 | $ 145 | $ 83 |
Segment Reporting and Geograp58
Segment Reporting and Geographic Areas (Details Textual) - 6 months ended Jun. 30, 2015 | SegmentLocation |
Segment Reporting [Abstract] | |
Number of industry segment | 1 |
Number of geographic areas | Location | 3 |
Segment Reporting and Geograp59
Segment Reporting and Geographic Areas (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Revenue earned by geographic area | ||||
Revenues | $ 43,795 | $ 41,343 | $ 86,124 | $ 82,512 |
Percent of revenue | 100.00% | 100.00% | 100.00% | 100.00% |
Americas [Member] | ||||
Revenue earned by geographic area | ||||
Revenues | $ 26,968 | $ 25,980 | $ 54,228 | $ 53,204 |
Percent of revenue | 61.60% | 62.80% | 63.00% | 64.50% |
EMEA [Member] | ||||
Revenue earned by geographic area | ||||
Revenues | $ 7,527 | $ 8,861 | $ 15,575 | $ 17,363 |
Percent of revenue | 17.20% | 21.40% | 18.00% | 21.00% |
Asia Pacific [Member] | ||||
Revenue earned by geographic area | ||||
Revenues | $ 9,300 | $ 6,502 | $ 16,321 | $ 11,945 |
Percent of revenue | 21.20% | 15.70% | 19.00% | 14.50% |
Segment Reporting and Geograp60
Segment Reporting and Geographic Areas (Details 1) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Long-lived assets by geographical area | ||
Long-lived Assets | $ 38,481 | $ 33,707 |
Americas [Member] | ||
Long-lived assets by geographical area | ||
Long-lived Assets | 23,183 | 22,505 |
International [Member] | ||
Long-lived assets by geographical area | ||
Long-lived Assets | $ 15,298 | $ 11,202 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | |
Convertible debt security [Member] | |||
Assets: | |||
Total assets measured at fair value | [1] | $ 1,000 | |
Recurring basis [Member] | |||
Assets: | |||
Total assets measured at fair value | $ 34,629 | 35,414 | |
Recurring basis [Member] | Money market funds [Member] | |||
Assets: | |||
Total assets measured at fair value | [2] | 174 | 57 |
Recurring basis [Member] | Corporate notes and bonds [Member] | |||
Assets: | |||
Total assets measured at fair value | [1] | 16,389 | 21,850 |
Recurring basis [Member] | Commercial paper [Member] | |||
Assets: | |||
Total assets measured at fair value | [1] | 1,500 | 1,497 |
Recurring basis [Member] | Certificate of deposit [Member] | |||
Assets: | |||
Total assets measured at fair value | [1] | 16,566 | 11,010 |
Recurring basis [Member] | Convertible debt security [Member] | |||
Assets: | |||
Total assets measured at fair value | [1] | 1,000 | |
Recurring basis [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | |||
Assets: | |||
Total assets measured at fair value | 174 | 57 | |
Recurring basis [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Money market funds [Member] | |||
Assets: | |||
Total assets measured at fair value | [2] | 174 | 57 |
Recurring basis [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Corporate notes and bonds [Member] | |||
Assets: | |||
Total assets measured at fair value | [1] | 0 | 0 |
Recurring basis [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Commercial paper [Member] | |||
Assets: | |||
Total assets measured at fair value | [1] | 0 | |
Recurring basis [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Certificate of deposit [Member] | |||
Assets: | |||
Total assets measured at fair value | [1] | 0 | 0 |
Recurring basis [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Convertible debt security [Member] | |||
Assets: | |||
Total assets measured at fair value | [1] | 0 | |
Recurring basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Assets: | |||
Total assets measured at fair value | 34,455 | 34,357 | |
Recurring basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Money market funds [Member] | |||
Assets: | |||
Total assets measured at fair value | [2] | 0 | 0 |
Recurring basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Corporate notes and bonds [Member] | |||
Assets: | |||
Total assets measured at fair value | [1] | 16,389 | 21,850 |
Recurring basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Commercial paper [Member] | |||
Assets: | |||
Total assets measured at fair value | [1] | 1,500 | 1,497 |
Recurring basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Certificate of deposit [Member] | |||
Assets: | |||
Total assets measured at fair value | [1] | 16,566 | 11,010 |
Recurring basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Convertible debt security [Member] | |||
Assets: | |||
Total assets measured at fair value | [1] | 0 | |
Recurring basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Assets: | |||
Total assets measured at fair value | 0 | 1,000 | |
Recurring basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Money market funds [Member] | |||
Assets: | |||
Total assets measured at fair value | [2] | 0 | 0 |
Recurring basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Corporate notes and bonds [Member] | |||
Assets: | |||
Total assets measured at fair value | [1] | 0 | 0 |
Recurring basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Commercial paper [Member] | |||
Assets: | |||
Total assets measured at fair value | [1] | 0 | |
Recurring basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Certificate of deposit [Member] | |||
Assets: | |||
Total assets measured at fair value | [1] | $ 0 | 0 |
Recurring basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Convertible debt security [Member] | |||
Assets: | |||
Total assets measured at fair value | [1] | $ 1,000 | |
[1] | Classified in marketable securities | ||
[2] | Classified in cash and cash equivalents |
Fair Value Measurements (Deta62
Fair Value Measurements (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | ||
Investment [Line Items] | ||||
Cost method investments | $ 34,415 | $ 34,415 | $ 35,317 | |
Cash equivalent maturity date | 3 months | |||
Convertible debt security [Member] | ||||
Investment [Line Items] | ||||
Investment fair value | [1] | $ 1,000 | ||
Gain related from beneficial conversion feature | 275 | |||
Cost method investments | $ 1,275 | $ 1,275 | ||
[1] | Classified in marketable securities |