Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Jul. 19, 2016 | |
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, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 104,674,965 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 30,885 | $ 44,680 |
Restricted cash | 62,790 | 0 |
Marketable securities | 0 | 28,322 |
Accounts receivable, net | 24,872 | 26,795 |
Income taxes receivable | 135 | 170 |
Deferred income taxes | 80 | 89 |
Prepaid expenses and other current assets | 6,278 | 9,578 |
Total current assets | 125,040 | 109,634 |
Property and equipment, net | 30,647 | 36,143 |
Marketable securities, less current portion | 40 | 40 |
Deferred income taxes, less current portion | 1,284 | 1,252 |
Goodwill | 76,242 | 76,143 |
Other assets | 1,903 | 2,415 |
Total assets | 235,156 | 225,627 |
Current liabilities: | ||
Accounts payable | 7,630 | 9,137 |
Deferred revenue | 2,469 | 2,890 |
Capital lease obligations | 1,119 | 466 |
Income taxes payable | 165 | 204 |
Provision for litigation | 18,000 | 0 |
Other current liabilities | 10,391 | 10,857 |
Total current liabilities | 39,774 | 23,554 |
Long-term debt | 12,790 | 0 |
Capital lease obligations, less current portion | 3,008 | 1,436 |
Deferred income taxes | 145 | 137 |
Deferred revenue, less current portion | 52 | 92 |
Provision for litigation, less current portion | 36,000 | 0 |
Other long-term liabilities | 1,963 | 2,311 |
Total liabilities | 93,732 | 27,530 |
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; 104,653 and 102,299 shares issued and outstanding at June 30, 2016 and December 31, 2015, respectively | 104 | 102 |
Additional paid-in capital | 483,903 | 477,202 |
Accumulated other comprehensive loss | (10,304) | (10,812) |
Accumulated deficit | (332,279) | (268,395) |
Total stockholders’ equity | 141,424 | 198,097 |
Total liabilities and stockholders’ equity | $ 235,156 | $ 225,627 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Convertible Preferred Stock, Par Value (in usd 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 usd per share) | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 300,000,000 | 300,000,000 |
Common Stock, Shares Issued | 104,653,000 | 102,299,000 |
Common Stock, Shares Outstanding | 104,653,000 | 102,299,000 |
Unaudited Consolidated Statemen
Unaudited Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | ||
Income Statement [Abstract] | |||||
Revenues | $ 43,560 | $ 43,795 | $ 84,982 | $ 86,124 | |
Cost of revenue: | |||||
Cost of services (1) | [1] | 20,271 | 21,271 | 40,380 | 42,928 |
Depreciation — network | 4,489 | 4,376 | 9,157 | 8,528 | |
Total cost of revenue | 24,760 | 25,647 | 49,537 | 51,456 | |
Gross profit | 18,800 | 18,148 | 35,445 | 34,668 | |
Operating expenses: | |||||
General and administrative | 7,241 | 6,081 | 14,049 | 12,932 | |
Sales and marketing | 8,117 | 10,002 | 17,020 | 20,278 | |
Research and development | 6,289 | 7,646 | 12,614 | 13,909 | |
Depreciation and amortization | 626 | 635 | 1,249 | 1,276 | |
Provision for litigation | 54,000 | 0 | 54,000 | 0 | |
Total operating expenses | 76,273 | 24,364 | 98,932 | 48,395 | |
Operating loss | (57,473) | (6,216) | (63,487) | (13,727) | |
Other income (expense): | |||||
Interest expense | (279) | 0 | (459) | (4) | |
Interest income | 8 | 75 | 14 | 149 | |
Other, net | (79) | (131) | 321 | 1,682 | |
Total other income (expense) | (350) | (56) | (124) | 1,827 | |
Loss before income taxes | (57,823) | (6,272) | (63,611) | (11,900) | |
Income tax expense | 115 | 90 | 273 | 145 | |
Net loss | $ (57,938) | $ (6,362) | $ (63,884) | $ (12,045) | |
Net loss per share, Basic and diluted: | |||||
Basic and diluted (in usd per share) | $ (0.56) | $ (0.06) | $ (0.62) | $ (0.12) | |
Weighted average shares used in per share calculation: | |||||
Basic and diluted weighted average outstanding shares of common stock (in shares) | 103,904 | 99,841 | 103,299 | 99,239 | |
[1] | Cost of services excludes amortization related to intangibles, including existing technologies, and customer relationships, 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, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (57,938) | $ (6,362) | $ (63,884) | $ (12,045) |
Other comprehensive income (loss), net of tax: | ||||
Unrealized (loss) gain on investments | 0 | (19) | 0 | 42 |
Foreign exchange translation (loss) gain | (195) | 1,020 | 464 | (2,051) |
Other comprehensive (loss) gain, net of tax | (195) | 1,001 | 464 | (2,009) |
Comprehensive loss | $ (58,133) | $ (5,361) | $ (63,420) | $ (14,054) |
Unaudited Consolidated Stateme6
Unaudited Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Operating activities | ||
Net loss | $ (63,884) | $ (12,045) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 10,406 | 9,804 |
Share-based compensation | 6,789 | 6,349 |
Provision for litigation | 54,000 | 0 |
Foreign currency remeasurement loss (gain) | 166 | (1,595) |
Deferred income taxes | 14 | (115) |
Gain on sale of property and equipment | (134) | 0 |
Accounts receivable (recoveries) charges | (33) | 470 |
Amortization of premium on marketable securities | 19 | 106 |
Realized loss on marketable securities | 32 | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 1,957 | (9,292) |
Prepaid expenses and other current assets | 3,392 | (202) |
Income taxes receivable | 38 | 11 |
Other assets | 508 | 1,009 |
Accounts payable and other current liabilities | (2,439) | 1,666 |
Deferred revenue | (461) | 317 |
Income taxes payable | (55) | 0 |
Other long term liabilities | (337) | (444) |
Net cash provided by (used in) operating activities | 9,978 | (3,961) |
Investing activities | ||
Purchases of marketable securities | 0 | (11,921) |
Sale and maturities of marketable securities | 28,315 | 11,760 |
Change in restricted cash | (62,790) | 0 |
Purchases of property and equipment | (1,680) | (12,061) |
Net cash used in investing activities | (36,155) | (12,222) |
Financing activities | ||
Principal payments on capital lease obligations | (478) | (358) |
Payments of employee tax withholdings related to restricted stock vesting | (944) | (1,944) |
Cash paid for purchase of common stock | 0 | (957) |
Proceeds from line of credit | 12,790 | 0 |
Proceeds from employee stock plans | 856 | 2,519 |
Net cash provided by (used in) financing activities | 12,224 | (740) |
Effect of exchange rate changes on cash and cash equivalents | 158 | (342) |
Net decrease in cash and cash equivalents | (13,795) | (17,265) |
Cash and cash equivalents, beginning of period | 44,680 | 57,767 |
Cash and cash equivalents, end of period | 30,885 | 40,502 |
Supplemental disclosure of cash flow information | ||
Cash paid during the period for interest | 354 | 4 |
Cash paid during the period for income taxes, net of refunds | 281 | 284 |
Property and equipment acquired through capital leases | $ 2,659 | $ 0 |
Nature of Business
Nature of Business | 6 Months Ended |
Jun. 30, 2016 | |
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 marketed under the Orchestrate Platform which include content delivery, video content management, website and web application acceleration, website and content security, and cloud storage services. 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, 2016 | |
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 are, in the opinion of management, necessary for the fair presentation of the interim periods presented and 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, 2016, 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, 2015. 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, 2016, or for any other future periods. Recent Accounting Standards Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (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. In August 2015, the FASB issued ASU 2015-14, which defers the effective date of ASU 2014-09 for all entities by one year. Accordingly, public business entities should apply the guidance in ASU 2014-09 to annual reporting periods (including interim periods within those periods) beginning after December 15, 2017. Early adoption is permitted but not before annual periods beginning after December 15, 2016. The standard permits the use of the retrospective or the modified approach method. 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 November 2015, the FASB issued ASU 2015-17, which will require entities to present deferred tax assets (DTAs) and deferred tax liabilities (DTLs) as noncurrent in a classified balance sheet. ASU 2015-17 simplifies the current guidance, which requires entities to separately present DTAs and DTLs as current and noncurrent in a classified balance sheet. ASU 2015-17 is effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. At this time we do not anticipate early adoption of this ASU, and we do not expect the adoption of this guidance to have a material impact on our consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, which establishes a right-of-use model that requires a lessee to record a right-of-use asset and a lease liability on the balance sheet for most leases. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. This guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within that reporting period. Early adoption is permitted and should be applied using a modified retrospective approach. We are in the process of evaluating the potential impacts of this new guidance on our consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU No. 2016-08, which clarifies the implementation guidance on principal versus agent considerations. The guidance includes indicators to assist an entity in determining whether it controls a specified good or service before it is transferred to the customers. We are in the process of evaluating the potential impact that adopting this new accounting standard will have on our consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU No. 2016-09, which updated guidance to include changes to simplify the accounting for several aspects of share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, accounting for forfeitures, and classification on the statement of cash flows. This guidance is effective for fiscal years beginning after December 15, 2016, including interim periods within that reporting period. Early adoption is permitted. We are in the process of evaluating the timing of adoption and potential impacts of this new guidance on our consolidated financial statements. |
Restricted Cash
Restricted Cash | 6 Months Ended |
Jun. 30, 2016 | |
Cash and Cash Equivalents [Abstract] | |
Restricted Cash | Restricted Cash We consider cash that is legally restricted and cash that is held as a compensating balance for letters of credit arrangements as restricted cash. As of June 30, 2016, restricted cash of $62,790 represents collateral for the stand-by letter of credit for the previously estimated upper end of our range of potential loss in our intellectual property dispute with Akamai Technologies, Inc., or Akamai. Refer to Note 12 "Contingencies - Legal Matters" for further information, including developments subsequent to June 30, 2016. |
Investments in Marketable Secur
Investments in Marketable Securities | 6 Months Ended |
Jun. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments in Marketable Securities | Investments in Marketable Securities During the quarter ended March 31, 2016, we sold the majority of our marketable securities. The following is a summary of marketable securities, designated as available-for-sale, at June 30, 2016 : Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Certificate of deposits $ 40 $ — $ — $ 40 The amortized cost and estimated fair value of marketable securities at June 30, 2016 , 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 $ — $ — $ — $ — Due after one year and through five years 40 — — 40 $ 40 $ — $ — $ 40 The following is a summary of marketable securities, designated as available-for-sale, at December 31, 2015 : Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Certificate of deposit $ 12,480 $ 1 $ 17 $ 12,464 Corporate notes and bonds 15,940 2 44 15,898 Total marketable securities $ 28,420 $ 3 $ 61 $ 28,362 The amortized cost and estimated fair value of marketable securities at December 31, 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 $ 18,075 $ 2 $ 12 $ 18,065 Due after one year and through five years 10,345 1 49 10,297 $ 28,420 $ 3 $ 61 $ 28,362 |
Accounts Receivable, net
Accounts Receivable, net | 6 Months Ended |
Jun. 30, 2016 | |
Receivables [Abstract] | |
Accounts Receivable, net | Accounts Receivable, net Accounts receivable, net include: June 30, December 31, 2016 2015 Accounts receivable $ 26,198 $ 28,599 Less: credit allowance (270 ) (460 ) Less: allowance for doubtful accounts (1,056 ) (1,344 ) Total accounts receivable, net $ 24,872 $ 26,795 |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 6 Months Ended |
Jun. 30, 2016 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid Expenses and Other Current Assets | Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets include: June 30, December 31, 2016 2015 Prepaid bandwidth and backbone $ 2,440 $ 2,417 VAT receivable 1,046 2,720 Prepaid expenses and insurance 2,026 3,641 Vendor deposits and other 766 800 Total prepaid expenses and other current assets $ 6,278 $ 9,578 |
Property and Equipment, net
Property and Equipment, net | 6 Months Ended |
Jun. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, net | Property and Equipment, net Property and equipment, net include: June 30, December 31, 2016 2015 Network equipment $ 119,670 $ 129,172 Computer equipment and software 11,659 11,408 Furniture and fixtures 2,464 2,472 Leasehold improvements 5,006 4,976 Other equipment 169 166 Total property and equipment 138,968 148,194 Less: accumulated depreciation (108,321 ) (112,051 ) Total property and equipment, net $ 30,647 $ 36,143 Depreciation expense related to property and equipment classified in operating expense was $620 and $434 for the three months ended June 30, 2016 and 2015 , respectively and was $ 1,237 and $ 877 for the six months ended June 30, 2016 and 2015, respectively. |
Goodwill
Goodwill | 6 Months Ended |
Jun. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill We have recorded goodwill as a result of past 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 our financial performance due to the loss of key customers, loss of key personnel, emergence of new technologies or new competitors and/or unfavorable outcomes of intellectual property disputes; • 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, 2016. Foreign currency translation adjustments decreased the carrying amount of goodwill for the three months ended June 30, 2016 by $ (128) . For the six months ended June 30, 2016, foreign currency translation adjustments increased the carrying value of goodwill by $99 . |
Other Current Liabilities
Other Current Liabilities | 6 Months Ended |
Jun. 30, 2016 | |
Other Liabilities Disclosure [Abstract] | |
Other Current Liabilities | Other Current Liabilities Other current liabilities include: June 30, December 31, 2016 2015 Accrued compensation and benefits $ 4,033 $ 4,786 Accrued cost of revenue 2,641 2,698 Deferred rent 712 782 Accrued legal fees 386 143 Other accrued expenses 2,619 2,448 Total other current liabilities $ 10,391 $ 10,857 |
Line of Credit
Line of Credit | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Line of Credit | Line of Credit On November 2, 2015, we entered into a Loan and Security Agreement (the Credit Agreement) with Silicon Valley Bank (SVB). The Credit Agreement provides for revolving credit borrowings up to a maximum principal amount of $25,000 . We are subject to a borrowing base calculation to determine the amount available to us. Our borrowing capacity is the lesser of the commitment amount or 80% of eligible accounts receivable. All outstanding borrowings owed under the Credit Agreement become due and payable no later than the final maturity date of November 2, 2017. We had no outstanding borrowings at December 31, 2015, and had availability under the Credit Agreement of approximately $18,000 . As of June 30, 2016, we had drawn $12,790 against the line of credit and our remaining availability under the Credit Agreement was approximately $5,400 . Borrowings under the Credit Agreement bear interest at our option of one, two, three or six-month LIBOR plus a margin of 2.75% or an Alternative Base Rate (ABR), which is defined as the higher of (a) Wall Street Journal prime rate or (b) Federal Funds Rate plus 0.50% , plus a margin of 0.50% or 1.50% depending on our minimum liquidity, as defined in the Credit Agreement. If we fall below a minimum liquidity of $17,500 , we are required to use the ABR interest rate. We incurred a commitment fee (issuance costs) of 0.25% upon entering into the Credit Agreement and 0.20% to be paid on the one year anniversary of closing. In addition, there is an unused line fee of 0.375% if our minimum liquidity is greater than $17,500 . If our minimum liquidity falls below $17,500 , the unused line fee is 0.250% . Commitment fees are included in prepaid expenses and other current assets and as amortized are charged to interest expense. During the three months ended June 30, 2016, interest expense was $109 and commitment fees expense and amortization was $114 . During the six months ended June 30, 2016, interest expense was $181 and commitment fees expense and amortization was $140 . Any borrowings are secured by essentially all of our domestic personal property, with a negative pledge on intellectual property. SVB’s security interest in our foreign subsidiaries is limited to 65% of voting stock of each such foreign subsidiary. The Credit Agreement contains a covenant that requires us to maintain a minimum tangible net worth of $100,000 . Tangible net worth is defined as total stockholders’ equity less cash held by our foreign subsidiaries, goodwill and other intangible assets. The tangible net worth requirement is adjusted by up to $52,500 upon recording a provision or making a payment related to the Akamai ‘703 Litigation. We are also subject to certain customary limitations on our ability to, among other things, incur debt, grant liens, make acquisitions and other investments, make certain restricted payments such as dividends, dispose of assets or undergo a change in control. In addition, the Credit Agreement contains a covenant limiting the maximum unfinanced capital expenditures amount to $25,000 per annum. As of June 30, 2016, we were in compliance with all covenants under the Credit Agreement. Refer to Note 12 "Contingencies - Legal Matters" for further information, including developments subsequent to June 30, 2016. |
Other Long Term Liabilities
Other Long Term Liabilities | 6 Months Ended |
Jun. 30, 2016 | |
Other Liabilities Disclosure [Abstract] | |
Other Long Term Liabilities | Other Long Term Liabilities Other long term liabilities include: June 30, December 31, 2016 2015 Deferred rent $ 1,569 $ 1,907 Income taxes payable 394 404 Total other long term liabilities $ 1,963 $ 2,311 |
Contingencies
Contingencies | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies Legal Matters Akamai ‘703 Litigation In June 2006, Akamai Technologies, Inc. and the Massachusetts Institute of Technology filed a lawsuit against us in the United States District Court for the District of Massachusetts alleging that we were infringing multiple patents assigned to MIT and exclusively licensed by MIT to Akamai. In February 2008, a jury returned a verdict in this lawsuit, finding that we infringed four claims of U.S. Patent No. 6,108,703 (the ’703 patent) and awarded Akamai damages of approximately $45,500 , which included lost profits, reasonable royalties and price erosion damages for the period April 2005 through December 31, 2007. On April 24, 2009, the court granted our motion for judgment as a matter of law, thus overturning the jury’s verdict finding us liable for infringing the ‘703 patent. On August 13, 2015, after more than six years of appeals by both Akamai and us in the Federal Circuit and the Supreme Court of the United States, the Federal Circuit issued an opinion establishing a new standard for direct infringement in a divided actor scenario. The Federal Circuit then reinstated the 2008 jury verdict that we were liable for infringement of the '703 patent and denied any remaining legacy appeals. The case was remanded back to the District Court for the District of Massachusetts (the District Court) on December 23, 2015, to resolve questions of supplemental damages, applicable interest on the existing damages award and entry of final judgment, among other things. At that time, Akamai sought entry of final judgment on the original jury award, an accounting of post-suit damages, damages for willful infringement and pre-judgment interest, which Akamai estimated to be approximately $99,000 in the aggregate, and a permanent injunction against us. After a series of motions filed by the parties in District Court, Akamai agreed to waive its right to supplemental damages, which limited the maximum potential damages for us to approximately $62,790 plus future accruing interest (if any). We also petitioned review by the Supreme Court of the United States of the Federal Circuit’s decision to reinstate the jury verdict. Our request for review was denied on April 18, 2016. Our motion seeking to challenge the validity of the ‘703 patent based on intervening changes in law was denied on April 25, 2016 by the District Court. On July 1, 2016, the District Court entered final judgment in the case and reduced total damages payable by us to $50,956 , which is significantly less than the previously disclosed upper-end of range of loss of $62,790 . As a result, in July 2016, we have regained access to $11,834 of availability under our line of credit. On August 1, 2016, we entered into a settlement and license agreement with Akamai with respect to the ‘703 and certain other related patents. The agreement settles all asserted and unasserted claims with respect to the licensed patents. The terms of the agreement require us to pay $54,000 over twelve equal quarterly installments beginning on August 1, 2016. The settlement and license agreement requires Akamai to release us from the letter of credit promptly following its receipt of the initial license payment. In accordance with ASC 855, Subsequent Events, this is a recognized subsequent event. Accordingly, we have taken a charge in the quarter ended June 30, 2016 for the full, undiscounted amount of $54,000 , per our accounting policy. 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. Akamai and XO Litigation On November 30, 2015, we filed a lawsuit against Akamai and XO Communications in the District Court for the Eastern District of Virginia alleging the infringement of six of our patents covering a broad range of inventions that we believe are critical to the effective and efficient delivery of bytes by a content delivery network (the Akamai and XO Litigation). In April 2016, the District Court denied a request for transfer by Akamai and XO Communications and set the trial date in this case for January 3, 2017. Akamai also filed counterclaims on April 29, 2016, alleging the infringement of five of its patents. We filed an answer to Akamai’s counterclaims, denying each of the allegations of infringement on May 23, 2016. At this time, we do not believe a loss is probable nor reasonably possible, and as such, no provision for this lawsuit has been recorded in the consolidated financial statements. We intend to vigorously protect our intellectual property rights in this matter and vigorously defend against each of the counterclaims. 2016 Akamai Litigation On February 16, 2016, Akamai filed a complaint against us in the District Court for the District of Massachusetts alleging infringement of three of its patents (the 2016 Akamai Litigation). In April 2016, Akamai amended its complaint by withdrawing one of the asserted patents. We filed our answer to the complaint, denying each of the allegations of infringement, and asserting two counterclaims alleging infringement of two of our patents. At this time, we do not believe a loss is probable nor reasonably possible, and as such, no provision for this lawsuit has been recorded in the consolidated financial statements. We intend to vigorously defend against Akamai’s claims and vigorously protect our intellectual property rights in this matter. Other Matters 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. Taxes 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, 2016 | |
Earnings Per Share [Abstract] | |
Net Loss per Share | Net Loss per Share We calculate basic and diluted loss per weighted average share. 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 include 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, 2016 2015 2016 2015 Net loss $ (57,938 ) $ (6,362 ) $ (63,884 ) $ (12,045 ) Basic and diluted weighted average outstanding shares of common stock 103,904 99,841 103,299 99,239 Basic and diluted net loss per share: $ (0.56 ) $ (0.06 ) $ (0.62 ) $ (0.12 ) For the three and six months ended June 30, 2016 and 2015 , the following potentially dilutive common stock, including awards granted under our equity incentive compensation plans, were excluded from the computation of diluted net loss per share because including them would have been anti-dilutive. Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Employee stock purchase plan 205 66 205 66 Stock options 84 2,787 109 2,088 Restricted stock units 482 3,145 502 2,997 771 5,998 816 5,151 |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2016 | |
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 program, 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 and six month periods ended June 30, 2016. During the six months ended June 30, 2015, we purchased and canceled 293 shares for $818 , including commissions and expenses. All repurchased shares were canceled and returned to authorized but unissued status. Amended and Restated Equity Incentive Plan We established the 2007 Equity Incentive Plan, or the 2007 Plan, which allows for the grant of equity, including stock options and restricted stock unit awards. In June 2016, our stockholders approved the Amended and Restated Equity Incentive Plan, or the Restated 2007 Plan, which amended and restated the 2007 Plan. Approval of the Restated 2007 Plan replaced the terms and conditions of the 2007 Plan with the terms and conditions of the Restated 2007 Plan and extended the term of the plan to April 2026. There was no increase in the aggregate amount of shares available for issuance. The total number of shares authorized for issuance under the Restated 2007 Plan as of June 30, 2016 was 9,762 . 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, 2016, we issued 719 shares under the ESPP. Total cash proceeds from the purchase of the shares under the ESPP was approximately $813 . As of June 30, 2016, shares reserved for issuance to employees under this plan totaled 1,923 , and we held employee contributions of $237 (included in other current liabilities) for future purchases under the ESPP. Preferred Stock Our board of directors has authorized the issuance of up to 7,500 shares of preferred stock at June 30, 2016. 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 June 30, 2016, the board of directors had not adopted any resolutions for the issuance of preferred stock. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 30, 2016 | |
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, 2016 , was as follows: Unrealized Gains (Losses) on Foreign Available for Currency Sale Securities Total Balance, December 31, 2015 $ (10,768 ) $ (44 ) $ (10,812 ) Other comprehensive income before reclassifications 464 — 464 Amounts reclassified from accumulated other comprehensive income (loss) — 44 44 Net current period other comprehensive income 464 44 508 Balance, June 30, 2016 $ (10,304 ) $ — $ (10,304 ) |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jun. 30, 2016 | |
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, 2016 2015 2016 2015 Share-based compensation expense by type: Stock options $ 960 $ 1,031 $ 1,943 $ 2,213 Restricted stock units 2,108 2,157 4,468 3,970 ESPP 225 92 378 166 Total share-based compensation expense $ 3,293 $ 3,280 $ 6,789 $ 6,349 Share-based compensation expense included in the consolidated statements of operations: Cost of services $ 436 $ 571 $ 909 $ 1,084 General and administrative expense 1,677 1,476 3,503 2,882 Sales and marketing expense 638 608 1,375 1,297 Research and development expense 542 625 1,002 1,086 Total share-based compensation expense $ 3,293 $ 3,280 $ 6,789 $ 6,349 Unrecognized share-based compensation expense totaled approximately $18,500 at June 30, 2016 , of which $5,449 related to stock options and $13,051 related to restricted stock units. We currently expect to recognize share-based compensation expense of $5,771 during the remainder of 2016, $8,204 in 2017 and the remainder thereafter based on scheduled vesting of the stock options and restricted stock units outstanding at June 30, 2016 . |
Leases and Commitments
Leases and Commitments | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Leases and Commitments | Leases and Commitments Operating Leases We are committed to various non-cancellable operating leases for office space and office equipment which expire through 2022. Certain leases contain provisions for renewal options and rent escalations upon expiration of the initial lease terms. Approximate future minimum lease payments over the remaining lease periods as of June 30, 2016 , are as follows: Remainder of 2016 $ 1,993 2017 3,260 2018 3,001 2019 1,488 2020 566 Thereafter 414 Total minimum payments $ 10,722 Purchase Commitments We have long-term commitments for bandwidth usage and co-location with various networks and Internet service providers (ISPs). The following summarizes minimum commitments as of June 30, 2016 : Remainder of 2016 $ 18,465 2017 20,342 2018 9,875 2019 2,576 2020 51 Thereafter 23 Total minimum payments $ 51,332 Capital Leases We lease equipment under capital lease agreements which extend through 2020. As of June 30, 2016, and December 31, 2015, the outstanding balance for capital leases was approximately $4,127 and $1,902 , respectively. We have recorded assets under capital lease obligations of approximately $4,588 and $1,679 , respectively, as of June 30, 2016 and December 31, 2015. Related accumulated amortization totaled approximately $816 and $210 , respectively as of June 30, 2016 and December 31, 2015. The assets acquired under capital leases and related accumulated amortization are included in property and equipment, net in the consolidated balance sheets. The related amortization is included in depreciation - network (cost of revenue) and depreciation and amortization expense (operating expenses) in the consolidated statements of operations. Interest expense related to capital leases was approximately $49 and $0 , respectively, for the three months ended June 30, 2016 and 2015. Interest expense related to capital leases was approximately $ 84 and $ 4 , respectively, for the six months ended June 30, 2016 and 2015. Future minimum capital lease payments at June 30, 2016 were as follows: Remainder of 2016 $ 493 2017 1,331 2018 1,331 2019 1,236 2020 193 Thereafter — Total 4,584 Amounts representing interest (457 ) Total minimum lease payments $ 4,127 |
Concentrations
Concentrations | 6 Months Ended |
Jun. 30, 2016 | |
Risks and Uncertainties [Abstract] | |
Concentrations | Concentrations During the three and six months ended June 30, 2016 , we had one customer, Microsoft, who represented 10% or more of our total revenue. During the three and six months ended June 30, 2015, we had no customer who represented 10% or more of our total revenue. Revenue from customers located within the United States, our country of domicile, was $23,627 for the three months ended June 30, 2016 , compared to $25,661 for the three months ended June 30, 2015 . For the six months ended June 30, 2016, revenue from customers located within the United States was $ 46,037 , compared to $ 51,272 for the six months ended June 30, 2015. During the three and six months ended June 30, 2016 and 2015, 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, 2016 | |
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, income tax expense for the three months ended June 30, 2016 and 2015, was $115 and $90 , respectively. For the six months ended June 30, 2016 and 2015, income tax expense was $ 273 and $ 145 , 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 month periods. We file income tax returns in jurisdictions with varying statutes of limitations. Tax years 2013 through 2015 remain subject to examination by federal tax authorities. Tax years 2012 through 2015 generally remain subject to examination by state tax authorities. As of June 30, 2016 , 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, 2016 | |
Segment Reporting [Abstract] | |
Segment Reporting and Geographic Areas | Segment Reporting and Geographic Areas Our chief operating decision maker (whom is our Chief Executive Officer) reviews the financial information presented on a consolidated basis for purposes of allocating resources and evaluating our financial performance. We operate in one industry segment — content delivery and related services and 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 our revenue by geographic area: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Americas $ 26,102 59.9 % $ 26,968 61.6 % $ 50,110 59.0 % $ 54,228 63.0 % EMEA 7,476 17.2 % 7,527 17.2 % 16,388 19.2 % 15,575 18.0 % Asia Pacific 9,982 22.9 % 9,300 21.2 % 18,484 21.8 % 16,321 19.0 % Total revenue $ 43,560 100.0 % $ 43,795 100.0 % $ 84,982 100.0 % $ 86,124 100.0 % The following table sets forth long-lived assets by geographic area in which the assets are located: June 30, December 31, 2016 2015 Americas $ 17,578 $ 19,692 International 13,071 16,466 Total long-lived assets $ 30,649 $ 36,158 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements As of June 30, 2016 , and December 31, 2015 , 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, 2016 : 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) $ 1 $ 1 $ — $ — Certificate of deposit (1) 40 — 40 — Total assets measured at fair value $ 41 $ 1 $ 40 $ — ____________ (1) Classified in marketable securities (2) Classified in cash and cash equivalents The following is a summary of fair value measurements at December 31, 2015 : 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) $ 725 $ 725 $ — $ — Corporate notes and bonds (1) 15,898 — 15,898 — Certificate of deposit (1) 12,464 — 12,464 — Total assets measured at fair value $ 29,087 $ 725 $ 28,362 $ — ____________ (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. |
Summary of Significant Accoun28
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
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 are, in the opinion of management, necessary for the fair presentation of the interim periods presented and 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, 2016, 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, 2015. 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, 2016, or for any other future periods. |
Recent Accounting Standards | Recent Accounting Standards Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (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. In August 2015, the FASB issued ASU 2015-14, which defers the effective date of ASU 2014-09 for all entities by one year. Accordingly, public business entities should apply the guidance in ASU 2014-09 to annual reporting periods (including interim periods within those periods) beginning after December 15, 2017. Early adoption is permitted but not before annual periods beginning after December 15, 2016. The standard permits the use of the retrospective or the modified approach method. 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 November 2015, the FASB issued ASU 2015-17, which will require entities to present deferred tax assets (DTAs) and deferred tax liabilities (DTLs) as noncurrent in a classified balance sheet. ASU 2015-17 simplifies the current guidance, which requires entities to separately present DTAs and DTLs as current and noncurrent in a classified balance sheet. ASU 2015-17 is effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. At this time we do not anticipate early adoption of this ASU, and we do not expect the adoption of this guidance to have a material impact on our consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, which establishes a right-of-use model that requires a lessee to record a right-of-use asset and a lease liability on the balance sheet for most leases. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. This guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within that reporting period. Early adoption is permitted and should be applied using a modified retrospective approach. We are in the process of evaluating the potential impacts of this new guidance on our consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU No. 2016-08, which clarifies the implementation guidance on principal versus agent considerations. The guidance includes indicators to assist an entity in determining whether it controls a specified good or service before it is transferred to the customers. We are in the process of evaluating the potential impact that adopting this new accounting standard will have on our consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU No. 2016-09, which updated guidance to include changes to simplify the accounting for several aspects of share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, accounting for forfeitures, and classification on the statement of cash flows. This guidance is effective for fiscal years beginning after December 15, 2016, including interim periods within that reporting period. Early adoption is permitted. We are in the process of evaluating the timing of adoption and potential impacts of this new guidance on our consolidated financial statements. |
Investments in Marketable Sec29
Investments in Marketable Securities (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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, 2016 : Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Certificate of deposits $ 40 $ — $ — $ 40 The following is a summary of marketable securities, designated as available-for-sale, at December 31, 2015 : Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Certificate of deposit $ 12,480 $ 1 $ 17 $ 12,464 Corporate notes and bonds 15,940 2 44 15,898 Total marketable securities $ 28,420 $ 3 $ 61 $ 28,362 |
Amortized Cost and Estimated Fair Value of Marketable Securities (designated as available-for-sale) by maturity | The amortized cost and estimated fair value of marketable securities at June 30, 2016 , 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 $ — $ — $ — $ — Due after one year and through five years 40 — — 40 $ 40 $ — $ — $ 40 The amortized cost and estimated fair value of marketable securities at December 31, 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 $ 18,075 $ 2 $ 12 $ 18,065 Due after one year and through five years 10,345 1 49 10,297 $ 28,420 $ 3 $ 61 $ 28,362 |
Accounts Receivable, net (Table
Accounts Receivable, net (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Receivables [Abstract] | |
Summary of Accounts Receivable, net | Accounts receivable, net include: June 30, December 31, 2016 2015 Accounts receivable $ 26,198 $ 28,599 Less: credit allowance (270 ) (460 ) Less: allowance for doubtful accounts (1,056 ) (1,344 ) Total accounts receivable, net $ 24,872 $ 26,795 |
Prepaid Expenses and Other Cu31
Prepaid Expenses and Other Current Assets (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets include: June 30, December 31, 2016 2015 Prepaid bandwidth and backbone $ 2,440 $ 2,417 VAT receivable 1,046 2,720 Prepaid expenses and insurance 2,026 3,641 Vendor deposits and other 766 800 Total prepaid expenses and other current assets $ 6,278 $ 9,578 |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, net | Property and equipment, net include: June 30, December 31, 2016 2015 Network equipment $ 119,670 $ 129,172 Computer equipment and software 11,659 11,408 Furniture and fixtures 2,464 2,472 Leasehold improvements 5,006 4,976 Other equipment 169 166 Total property and equipment 138,968 148,194 Less: accumulated depreciation (108,321 ) (112,051 ) Total property and equipment, net $ 30,647 $ 36,143 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Other Liabilities Disclosure [Abstract] | |
Other Current Liabilities | Other current liabilities include: June 30, December 31, 2016 2015 Accrued compensation and benefits $ 4,033 $ 4,786 Accrued cost of revenue 2,641 2,698 Deferred rent 712 782 Accrued legal fees 386 143 Other accrued expenses 2,619 2,448 Total other current liabilities $ 10,391 $ 10,857 |
Other Long Term Liabilities (Ta
Other Long Term Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Other Liabilities Disclosure [Abstract] | |
Other Long Term Liabilities | Other long term liabilities include: June 30, December 31, 2016 2015 Deferred rent $ 1,569 $ 1,907 Income taxes payable 394 404 Total other long term liabilities $ 1,963 $ 2,311 |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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, 2016 2015 2016 2015 Net loss $ (57,938 ) $ (6,362 ) $ (63,884 ) $ (12,045 ) Basic and diluted weighted average outstanding shares of common stock 103,904 99,841 103,299 99,239 Basic and diluted net loss per share: $ (0.56 ) $ (0.06 ) $ (0.62 ) $ (0.12 ) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | For the three and six months ended June 30, 2016 and 2015 , the following potentially dilutive common stock, including awards granted under our equity incentive compensation plans, were excluded from the computation of diluted net loss per share because including them would have been anti-dilutive. Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Employee stock purchase plan 205 66 205 66 Stock options 84 2,787 109 2,088 Restricted stock units 482 3,145 502 2,997 771 5,998 816 5,151 |
Accumulated Other Comprehensi36
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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, 2016 , was as follows: Unrealized Gains (Losses) on Foreign Available for Currency Sale Securities Total Balance, December 31, 2015 $ (10,768 ) $ (44 ) $ (10,812 ) Other comprehensive income before reclassifications 464 — 464 Amounts reclassified from accumulated other comprehensive income (loss) — 44 44 Net current period other comprehensive income 464 44 508 Balance, June 30, 2016 $ (10,304 ) $ — $ (10,304 ) |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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, 2016 2015 2016 2015 Share-based compensation expense by type: Stock options $ 960 $ 1,031 $ 1,943 $ 2,213 Restricted stock units 2,108 2,157 4,468 3,970 ESPP 225 92 378 166 Total share-based compensation expense $ 3,293 $ 3,280 $ 6,789 $ 6,349 Share-based compensation expense included in the consolidated statements of operations: Cost of services $ 436 $ 571 $ 909 $ 1,084 General and administrative expense 1,677 1,476 3,503 2,882 Sales and marketing expense 638 608 1,375 1,297 Research and development expense 542 625 1,002 1,086 Total share-based compensation expense $ 3,293 $ 3,280 $ 6,789 $ 6,349 |
Leases and Commitments (Tables)
Leases and Commitments (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Lease Payments Over Remaining Lease Periods | Approximate future minimum lease payments over the remaining lease periods as of June 30, 2016 , are as follows: Remainder of 2016 $ 1,993 2017 3,260 2018 3,001 2019 1,488 2020 566 Thereafter 414 Total minimum payments $ 10,722 |
Minimum Purchase Commitments | The following summarizes minimum commitments as of June 30, 2016 : Remainder of 2016 $ 18,465 2017 20,342 2018 9,875 2019 2,576 2020 51 Thereafter 23 Total minimum payments $ 51,332 |
Future Minimum Capital Lease Payments | Future minimum capital lease payments at June 30, 2016 were as follows: Remainder of 2016 $ 493 2017 1,331 2018 1,331 2019 1,236 2020 193 Thereafter — Total 4,584 Amounts representing interest (457 ) Total minimum lease payments $ 4,127 |
Segment Reporting and Geograp39
Segment Reporting and Geographic Areas (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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 our revenue by geographic area: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Americas $ 26,102 59.9 % $ 26,968 61.6 % $ 50,110 59.0 % $ 54,228 63.0 % EMEA 7,476 17.2 % 7,527 17.2 % 16,388 19.2 % 15,575 18.0 % Asia Pacific 9,982 22.9 % 9,300 21.2 % 18,484 21.8 % 16,321 19.0 % Total revenue $ 43,560 100.0 % $ 43,795 100.0 % $ 84,982 100.0 % $ 86,124 100.0 % |
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, 2016 2015 Americas $ 17,578 $ 19,692 International 13,071 16,466 Total long-lived assets $ 30,649 $ 36,158 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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, 2016 : 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) $ 1 $ 1 $ — $ — Certificate of deposit (1) 40 — 40 — Total assets measured at fair value $ 41 $ 1 $ 40 $ — ____________ (1) Classified in marketable securities (2) Classified in cash and cash equivalents The following is a summary of fair value measurements at December 31, 2015 : 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) $ 725 $ 725 $ — $ — Corporate notes and bonds (1) 15,898 — 15,898 — Certificate of deposit (1) 12,464 — 12,464 — Total assets measured at fair value $ 29,087 $ 725 $ 28,362 $ — ____________ (1) Classified in marketable securities (2) Classified in cash and cash equivalents |
Restricted Cash (Details)
Restricted Cash (Details) $ in Thousands | Jun. 30, 2016USD ($) |
Cash and Cash Equivalents [Abstract] | |
Restricted cash for potential loss in Akamai Technologies, Inc. intellectual property dispute | $ 62,790 |
Investments in Marketable Sec42
Investments in Marketable Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Summary of marketable securities (designated as available-for-sale) | ||
Amortized Cost | $ 28,420 | |
Gross Unrealized Gains | 3 | |
Gross Unrealized Losses | 61 | |
Estimated Fair Value | 28,362 | |
Certificate of deposit | ||
Summary of marketable securities (designated as available-for-sale) | ||
Amortized Cost | $ 40 | 12,480 |
Gross Unrealized Gains | 0 | 1 |
Gross Unrealized Losses | 0 | 17 |
Estimated Fair Value | $ 40 | 12,464 |
Corporate notes and bonds | ||
Summary of marketable securities (designated as available-for-sale) | ||
Amortized Cost | 15,940 | |
Gross Unrealized Gains | 2 | |
Gross Unrealized Losses | 44 | |
Estimated Fair Value | $ 15,898 |
Investments in Marketable Sec43
Investments in Marketable Securities (Details 1) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Amortized cost and estimated fair value of marketable securities (designated as available-for-sale) by maturity | ||
Amortized Cost | $ 28,420 | |
Gross Unrealized Gains | 3 | |
Gross Unrealized Losses | 61 | |
Estimated Fair Value | 28,362 | |
Debt securities | ||
Amortized cost and estimated fair value of marketable securities (designated as available-for-sale) by maturity | ||
Amortized Cost, Due in one year or less | $ 0 | 18,075 |
Gross Unrealized Gains, Due in one year or less | 0 | 2 |
Gross Unrealized Losses, Due in one year or less | 0 | 12 |
Estimated Fair Value, Due in one year or less | 0 | 18,065 |
Amortized Cost, Due after one year and through five years | 40 | 10,345 |
Gross Unrealized Gains, Due after one year and through five years | 0 | 1 |
Gross Unrealized Losses, Due after one year and through five years | 0 | 49 |
Estimated Fair Value, Due after one year and through five years | 40 | 10,297 |
Amortized Cost | 40 | 28,420 |
Gross Unrealized Gains | 0 | 3 |
Gross Unrealized Losses | 0 | 61 |
Estimated Fair Value | $ 40 | $ 28,362 |
Accounts Receivable, net (Detai
Accounts Receivable, net (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Summary of Accounts Receivable, net | ||
Accounts receivable | $ 26,198 | $ 28,599 |
Less: credit allowance | (270) | (460) |
Less: allowance for doubtful accounts | (1,056) | (1,344) |
Total accounts receivable, net | $ 24,872 | $ 26,795 |
Prepaid Expenses and Other Cu45
Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Prepaid Expense and Other Assets, Current [Abstract] | ||
Prepaid bandwidth and backbone | $ 2,440 | $ 2,417 |
VAT receivable | 1,046 | 2,720 |
Prepaid expenses and insurance | 2,026 | 3,641 |
Vendor deposits and other | 766 | 800 |
Total prepaid expenses and other current assets | $ 6,278 | $ 9,578 |
Property and Equipment, net (De
Property and Equipment, net (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Property and equipment, net | ||
Property and equipment, gross | $ 138,968 | $ 148,194 |
Less: accumulated depreciation | (108,321) | (112,051) |
Total property and equipment, net | 30,647 | 36,143 |
Network equipment | ||
Property and equipment, net | ||
Property and equipment, gross | 119,670 | 129,172 |
Computer equipment and software | ||
Property and equipment, net | ||
Property and equipment, gross | 11,659 | 11,408 |
Furniture and fixtures | ||
Property and equipment, net | ||
Property and equipment, gross | 2,464 | 2,472 |
Leasehold improvements | ||
Property and equipment, net | ||
Property and equipment, gross | 5,006 | 4,976 |
Other equipment | ||
Property and equipment, net | ||
Property and equipment, gross | $ 169 | $ 166 |
Property and Equipment, net (47
Property and Equipment, net (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Property, Plant and Equipment [Abstract] | ||||
Operating expense depreciation | $ 620 | $ 434 | $ 1,237 | $ 877 |
Goodwill (Details Textual)
Goodwill (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2016 | Jun. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Foreign currency translation adjustment | $ (128) | $ 99 |
Other Current Liabilities (Deta
Other Current Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Other Liabilities Disclosure [Abstract] | ||
Accrued compensation and benefits | $ 4,033 | $ 4,786 |
Accrued cost of revenue | 2,641 | 2,698 |
Deferred rent | 712 | 782 |
Accrued legal fees | 386 | 143 |
Other accrued expenses | 2,619 | 2,448 |
Total other current liabilities | $ 10,391 | $ 10,857 |
Line of Credit (Details)
Line of Credit (Details) - Revolving Credit Facility - Credit Agreement - USD ($) | Nov. 02, 2015 | Jun. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 |
Line of Credit Facility [Line Items] | ||||
Maximum borrowing amount | $ 25,000,000 | |||
Borrowing capacity limit, percent of accounts receivable | 80.00% | |||
Proceeds from line of credit | $ 12,790,000 | $ 12,790,000 | $ 0 | |
Current borrowing capacity | 5,400,000 | 5,400,000 | $ 18,000,000 | |
Minimum liquidity benchmark | $ 17,500,000 | |||
Commitment fee paid at closing (percent) | 0.25% | |||
Commitment fee top be paid at one year anniversary of closing (percent) | 0.20% | |||
Interest expense, line of credit | 109,000 | 181,000 | ||
Commitment fees amortization | $ 114,000 | 140,000 | ||
Voting stock in foreign subsidiaries (percent) | 65.00% | |||
Minimum tangible net worth | $ 100,000,000 | |||
Maximum adjustment if payment made on litigation | $ 52,500,000 | |||
Maximum unfinanced capital expenditures per annum | $ 25,000,000 | |||
Maximum | ||||
Line of Credit Facility [Line Items] | ||||
Unused line fee (percent) | 0.375% | |||
Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Unused line fee (percent) | 0.25% | |||
LIBOR | ||||
Line of Credit Facility [Line Items] | ||||
Variable rate (percent) | 2.75% | |||
Alternative Base Rate | ||||
Line of Credit Facility [Line Items] | ||||
Variable rate (percent) | 0.50% | |||
Variable rate minimum (percent) | 0.50% | |||
Variable rate maximum (percent) | 1.50% |
Other Long Term Liabilities (De
Other Long Term Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Other Liabilities Disclosure [Abstract] | ||
Deferred rent | $ 1,569 | $ 1,907 |
Income taxes payable | 394 | 404 |
Total other long term liabilities | $ 1,963 | $ 2,311 |
Contingencies (Details)
Contingencies (Details) $ in Thousands | Aug. 01, 2016USD ($)installment_payment | Jul. 01, 2016USD ($) | Aug. 13, 2015 | Apr. 30, 2016Patentcounterclaim | Feb. 29, 2008USD ($)Claim | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Apr. 29, 2016Patent | Feb. 16, 2016Patent | Dec. 23, 2015USD ($) | Nov. 30, 2015Patent |
Loss Contingencies [Line Items] | |||||||||||||
Provision for litigation | $ 54,000 | $ 0 | $ 54,000 | $ 0 | |||||||||
Akamai '703 Litigation | Pending Litigation | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Number of claims Company infringed | Claim | 4 | ||||||||||||
Aggregate of lost profits, reasonable royalties and price erosion damages | $ 45,500 | ||||||||||||
Duration of appeals in the courts | 6 years | ||||||||||||
Estimated original jury award | $ 99,000 | ||||||||||||
Estimated possible loss for damages and interest, maximum | $ 62,790 | ||||||||||||
Akamai '703 Litigation | Settled Litigation | Subsequent Event | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Provision for litigation | $ 54,000 | $ 50,956 | |||||||||||
Line of credit, availability | $ 11,834 | ||||||||||||
Number of quarterly installment payments for litigation settlement | installment_payment | 12 | ||||||||||||
Akamai and XO Communications Litigation | Pending Litigation | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Number of company patents infringed | Patent | 6 | ||||||||||||
Akamai Litigation | Pending Litigation | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Number of patents Company was infringing | Patent | 5 | ||||||||||||
2016 Akamai Litigation | Pending Litigation | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Number of company patents infringed | Patent | 2 | ||||||||||||
Number of patents Company was infringing | Patent | 3 | ||||||||||||
Number of patents company infringed, withdrawn | Patent | 1 | ||||||||||||
Number of counterclaims | counterclaim | 2 |
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, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Earnings Per Share [Abstract] | ||||
Net loss | $ (57,938) | $ (6,362) | $ (63,884) | $ (12,045) |
Basic and diluted weighted average outstanding shares of common stock (in shares) | 103,904 | 99,841 | 103,299 | 99,239 |
Basic and diluted (in usd per share) | $ (0.56) | $ (0.06) | $ (0.62) | $ (0.12) |
Net Loss per Share Dilutive Com
Net Loss per Share Dilutive Common Stock (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Excluded outstanding options and restricted stock units (in shares) | 771 | 5,998 | 816 | 5,151 |
Employee stock purchase plan | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Excluded outstanding options and restricted stock units (in shares) | 205 | 66 | 205 | 66 |
Stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Excluded outstanding options and restricted stock units (in shares) | 84 | 2,787 | 109 | 2,088 |
Restricted stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Excluded outstanding options and restricted stock units (in shares) | 482 | 3,145 | 502 | 2,997 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Feb. 12, 2014 | |
Equity, Class of Treasury Stock [Line Items] | |||||
Cash paid for common stock including commissions | $ 0 | $ 957,000 | |||
Issuance of preferred stock authorized (in shares) | 7,500,000 | 7,500,000 | 7,500,000 | ||
Employee Stock Purchase Plan | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Discount from market price for employees | 15.00% | ||||
Shares issued (in shares) | 719,000 | 719,000 | |||
Proceeds received for stock issued | $ 813,000 | $ 813,000 | |||
Common Stock reserved for future options and restricted stock awards (in shares) | 1,923,000 | 1,923,000 | |||
Employee funds held by company for future purchase of shares | $ 237,000 | $ 237,000 | |||
2007 Equity Incentive Plan | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Shares authorized for issuance under Restated 2007 Plan (in shares) | 9,762,000 | 9,762,000 | |||
Share Repurchase Program | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Stock repurchase amount authorized | $ 15,000,000 | ||||
Stock repurchased and retired during period (in shares) | 0 | 0 | 293,000 | ||
Cash paid for common stock including commissions | $ 818,000 |
Accumulated Other Comprehensi56
Accumulated Other Comprehensive Loss (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2016USD ($) | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Accumulated other comprehensive income, beginning balance | $ 198,097 |
Accumulated other comprehensive income, ending balance | 141,424 |
Foreign currency | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Accumulated other comprehensive income, beginning balance | (10,768) |
Other comprehensive income before reclassifications | 464 |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 |
Other comprehensive gain (loss), net of tax | 464 |
Accumulated other comprehensive income, ending balance | (10,304) |
Unrealized gains (losses) on available for sale securities | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Accumulated other comprehensive income, beginning balance | (44) |
Other comprehensive income before reclassifications | 0 |
Amounts reclassified from accumulated other comprehensive income (loss) | 44 |
Other comprehensive gain (loss), net of tax | 44 |
Accumulated other comprehensive income, ending balance | 0 |
AOCI | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Accumulated other comprehensive income, beginning balance | (10,812) |
Other comprehensive income before reclassifications | 464 |
Amounts reclassified from accumulated other comprehensive income (loss) | 44 |
Other comprehensive gain (loss), net of tax | 508 |
Accumulated other comprehensive income, ending balance | $ (10,304) |
Share-Based Compensation (Detai
Share-Based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Components of share-based compensation expense | ||||
Share-based compensation | $ 3,293 | $ 3,280 | $ 6,789 | $ 6,349 |
Cost of services | ||||
Components of share-based compensation expense | ||||
Share-based compensation | 436 | 571 | 909 | 1,084 |
General and administrative expense | ||||
Components of share-based compensation expense | ||||
Share-based compensation | 1,677 | 1,476 | 3,503 | 2,882 |
Sales and marketing expense | ||||
Components of share-based compensation expense | ||||
Share-based compensation | 638 | 608 | 1,375 | 1,297 |
Research and development expense | ||||
Components of share-based compensation expense | ||||
Share-based compensation | 542 | 625 | 1,002 | 1,086 |
Stock options | ||||
Components of share-based compensation expense | ||||
Share-based compensation | 960 | 1,031 | 1,943 | 2,213 |
Restricted stock units | ||||
Components of share-based compensation expense | ||||
Share-based compensation | 2,108 | 2,157 | 4,468 | 3,970 |
ESPP | ||||
Components of share-based compensation expense | ||||
Share-based compensation | $ 225 | $ 92 | $ 378 | $ 166 |
Share-Based Compensation (Det58
Share-Based Compensation (Details Textual) $ in Thousands | Jun. 30, 2016USD ($) |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |
Unrecognized share-based compensation expense total | $ 18,500 |
Share-based compensation expense, remainder of 2016 | 5,771 |
Share-based compensation expense, 2017 | 8,204 |
Stock options | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |
Unrecognized share-based compensation expense total | 5,449 |
Restricted stock units | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |
Unrecognized share-based compensation expense total | $ 13,051 |
Leases and Commitments (Details
Leases and Commitments (Details) $ in Thousands | Jun. 30, 2016USD ($) |
Future minimum lease payments over remaining lease periods | |
Remainder of 2016 | $ 1,993 |
2,017 | 3,260 |
2,018 | 3,001 |
2,019 | 1,488 |
2,020 | 566 |
Thereafter | 414 |
Total minimum payments | $ 10,722 |
Leases and Commitments (Detai60
Leases and Commitments (Details 1) $ in Thousands | Jun. 30, 2016USD ($) |
Minimum purchase commitments | |
Remainder of 2016 | $ 18,465 |
2,017 | 20,342 |
2,018 | 9,875 |
2,019 | 2,576 |
2,020 | 51 |
Thereafter | 23 |
Total minimum payments | $ 51,332 |
Leases and Commitments (Detai61
Leases and Commitments (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Leases Capital [Abstract] | |||||
Outstanding balance for capital leases | $ 4,127 | $ 4,127 | $ 1,902 | ||
Recorded assets under capital lease obligations | 4,588 | 4,588 | 1,679 | ||
Related accumulated amortization total | 816 | 816 | $ 210 | ||
Interest expense related to capital leases | $ 49 | $ 0 | $ 84 | $ 4 |
Leases and Commitments (Detai62
Leases and Commitments (Details 2) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Commitments and Contingencies Disclosure [Abstract] | ||
Remainder of 2016 | $ 493 | |
2,017 | 1,331 | |
2,018 | 1,331 | |
2,019 | 1,236 | |
2,020 | 193 | |
Thereafter | 0 | |
Total | 4,584 | |
Amounts representing interest | (457) | |
Total minimum lease payments | $ 4,127 | $ 1,902 |
Concentrations (Details)
Concentrations (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016USD ($)customercountry | Jun. 30, 2015USD ($)customercountry | Jun. 30, 2016USD ($)customercountry | Jun. 30, 2015USD ($)customercountry | |
Concentration Risk [Line Items] | ||||
Number of customers who represented 10% or more of total revenue | customer | 1 | 0 | 1 | 0 |
Revenues | $ 43,560 | $ 43,795 | $ 84,982 | $ 86,124 |
Geographic concentration | Total revenue | ||||
Concentration Risk [Line Items] | ||||
Number of countries accounting for 10% or more of revenue | country | 2 | 2 | 2 | 2 |
United States | Geographic concentration | Total revenue | ||||
Concentration Risk [Line Items] | ||||
Revenues | $ 23,627 | $ 25,661 | $ 46,037 | $ 51,272 |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense | $ 115 | $ 90 | $ 273 | $ 145 |
Segment Reporting and Geograp65
Segment Reporting and Geographic Areas (Details Textual) | 6 Months Ended |
Jun. 30, 2016SegmentLocation | |
Segment Reporting [Abstract] | |
Number of industry segment | Segment | 1 |
Number of geographic areas | Location | 3 |
Segment Reporting and Geograp66
Segment Reporting and Geographic Areas (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Revenue earned by geographic area | ||||
Revenues | $ 43,560 | $ 43,795 | $ 84,982 | $ 86,124 |
Americas | ||||
Revenue earned by geographic area | ||||
Revenues | 26,102 | 26,968 | 50,110 | 54,228 |
EMEA | ||||
Revenue earned by geographic area | ||||
Revenues | 7,476 | 7,527 | 16,388 | 15,575 |
Asia Pacific | ||||
Revenue earned by geographic area | ||||
Revenues | $ 9,982 | $ 9,300 | $ 18,484 | $ 16,321 |
Geographic concentration | ||||
Revenue earned by geographic area | ||||
Percent of revenue | 100.00% | 100.00% | 100.00% | 100.00% |
Geographic concentration | Americas | ||||
Revenue earned by geographic area | ||||
Percent of revenue | 59.90% | 61.60% | 59.00% | 63.00% |
Geographic concentration | EMEA | ||||
Revenue earned by geographic area | ||||
Percent of revenue | 17.20% | 17.20% | 19.20% | 18.00% |
Geographic concentration | Asia Pacific | ||||
Revenue earned by geographic area | ||||
Percent of revenue | 22.90% | 21.20% | 21.80% | 19.00% |
Segment Reporting and Geograp67
Segment Reporting and Geographic Areas (Details 1) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Long-lived assets by geographical area | ||
Long-lived assets | $ 30,649 | $ 36,158 |
Americas | ||
Long-lived assets by geographical area | ||
Long-lived assets | 17,578 | 19,692 |
International | ||
Long-lived assets by geographical area | ||
Long-lived assets | $ 13,071 | $ 16,466 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Recurring basis - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | |||
Assets: | |||||
Total assets measured at fair value | $ 41 | $ 29,087 | |||
Money market funds | |||||
Assets: | |||||
Total assets measured at fair value | 1 | [1] | 725 | [2] | |
Corporate notes and bonds | |||||
Assets: | |||||
Total assets measured at fair value | [3] | 15,898 | |||
Certificate of deposit | |||||
Assets: | |||||
Total assets measured at fair value | 40 | [4] | 12,464 | [3] | |
Quoted Prices In Active Markets for Identical Assets (Level 1) | |||||
Assets: | |||||
Total assets measured at fair value | 1 | 725 | |||
Quoted Prices In Active Markets for Identical Assets (Level 1) | Money market funds | |||||
Assets: | |||||
Total assets measured at fair value | 1 | [1] | 725 | [2] | |
Quoted Prices In Active Markets for Identical Assets (Level 1) | Corporate notes and bonds | |||||
Assets: | |||||
Total assets measured at fair value | [3] | 0 | |||
Quoted Prices In Active Markets for Identical Assets (Level 1) | Certificate of deposit | |||||
Assets: | |||||
Total assets measured at fair value | 0 | [4] | 0 | [3] | |
Significant Other Observable Inputs (Level 2) | |||||
Assets: | |||||
Total assets measured at fair value | 40 | 28,362 | |||
Significant Other Observable Inputs (Level 2) | Money market funds | |||||
Assets: | |||||
Total assets measured at fair value | 0 | [1] | 0 | [2] | |
Significant Other Observable Inputs (Level 2) | Corporate notes and bonds | |||||
Assets: | |||||
Total assets measured at fair value | [3] | 15,898 | |||
Significant Other Observable Inputs (Level 2) | Certificate of deposit | |||||
Assets: | |||||
Total assets measured at fair value | 40 | [4] | 12,464 | [3] | |
Significant Unobservable Inputs (Level 3) | |||||
Assets: | |||||
Total assets measured at fair value | 0 | 0 | |||
Significant Unobservable Inputs (Level 3) | Money market funds | |||||
Assets: | |||||
Total assets measured at fair value | 0 | [1] | 0 | [2] | |
Significant Unobservable Inputs (Level 3) | Corporate notes and bonds | |||||
Assets: | |||||
Total assets measured at fair value | [3] | 0 | |||
Significant Unobservable Inputs (Level 3) | Certificate of deposit | |||||
Assets: | |||||
Total assets measured at fair value | $ 0 | [4] | $ 0 | [3] | |
[1] | Classified in cash and cash equivalents | ||||
[2] | Classified in cash and cash equivalents | ||||
[3] | Classified in marketable securities | ||||
[4] | Classified in marketable securities |
Fair Value Measurements (Deta69
Fair Value Measurements (Details Textual) | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Cash equivalent maturity date (in months) | 3 months |