Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Oct. 31, 2013 | |
Entity Information [Line Items] | ' | ' |
Entity Registrant Name | 'PROS HOLDINGS, INC. | ' |
Entity Central Index Key | '0001392972 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-13 | ' |
Amendment Flag | 'false | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 28,123,763 |
Entity Well-known Seasoned Issuer | 'No | ' |
Entity Voluntary Filers | 'No | ' |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $90,774 | $83,558 |
Accounts and unbilled receivables, net of allowance of $720 and $760, respectively | 44,627 | 38,801 |
Prepaid and other current assets | 6,406 | 5,067 |
Total current assets | 141,807 | 127,426 |
Restricted cash | 0 | 329 |
Property and equipment, net | 14,911 | 12,788 |
Other long term assets, net | 5,319 | 5,936 |
Total assets | 162,037 | 146,479 |
Current liabilities: | ' | ' |
Accounts payable | 6,012 | 3,775 |
Accrued liabilities | 5,065 | 3,258 |
Accrued payroll and other employee benefits | 6,858 | 7,669 |
Deferred revenue | 35,788 | 39,774 |
Total current liabilities | 53,723 | 54,476 |
Long-term deferred revenue | 2,787 | 2,007 |
Other Liabilities, Noncurrent | 970 | 1,327 |
Total liabilities | 57,480 | 57,810 |
Stockholders' equity: | ' | ' |
Preferred stock, $0.001 par value, 5,000,000 shares authorized none issued | 0 | 0 |
Common stock, $0.001 par value, 75,000,000 shares authorized; 32,535,983 and 31,966,432 shares issued, respectively; 28,118,398 and 27,548,847 shares outstanding, respectively | 33 | 32 |
Additional paid-in capital | 100,273 | 87,693 |
Treasury stock, 4,417,585 common shares, at cost | -13,938 | -13,938 |
Retained earnings | 18,189 | 14,882 |
Total stockholders' equity | 104,557 | 88,669 |
Total liabilities and stockholders' equity | $162,037 | $146,479 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Allowance for bad debts | $720 | $760 |
Preferred stock - par value | $0.00 | $0.00 |
Preferred stock - shares authorized | 5,000,000 | 5,000,000 |
Preferred stock - shares issued | 0 | 0 |
Common stock - par value | $0.00 | $0.00 |
Common stock - shares authorized | 75,000,000 | 75,000,000 |
Common stock - shares issued | 32,535,983 | 31,966,432 |
Common stock - shares outstanding | 28,118,398 | 27,548,847 |
Treasury stock - shares | 4,417,585 | 4,417,585 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Revenue: | ' | ' | ' | ' |
License and implementation | $25,085 | $19,494 | $71,847 | $55,466 |
Maintenance and support | 11,728 | 10,419 | 34,119 | 29,602 |
Total revenue | 36,813 | 29,913 | 105,966 | 85,068 |
Cost of revenue: | ' | ' | ' | ' |
License and implementation | 9,008 | 6,547 | 26,287 | 18,090 |
Maintenance and support | 2,018 | 2,122 | 6,079 | 6,017 |
Total cost of revenue | 11,026 | 8,669 | 32,366 | 24,107 |
Gross profit | 25,787 | 21,244 | 73,600 | 60,961 |
Operating Expenses | ' | ' | ' | ' |
Selling, marketing, general and administrative | 15,714 | 12,383 | 45,936 | 34,524 |
Research and development | 8,001 | 7,049 | 24,122 | 20,518 |
Business Combination, Acquisition Related Costs | 677 | 0 | 677 | 0 |
Income from operations | 1,395 | 1,812 | 2,865 | 5,919 |
Other income: | ' | ' | ' | ' |
Other Nonoperating Income (Expense) | 83 | -15 | -150 | -121 |
Income before income tax provision | 1,478 | 1,797 | 2,715 | 5,798 |
Income tax provision | 485 | 441 | -592 | 2,256 |
Net income | 993 | 1,356 | 3,307 | 3,542 |
Net earnings per share: | ' | ' | ' | ' |
Basic | $0.04 | $0.05 | $0.12 | $0.13 |
Diluted | $0.03 | $0.05 | $0.11 | $0.13 |
Weighted average number of shares: | ' | ' | ' | ' |
Basic | 28,096,333 | 27,426,269 | 27,953,416 | 27,322,940 |
Diluted | 30,315,499 | 28,362,582 | 29,935,756 | 28,320,181 |
Other comprehensive income, net of tax: | ' | ' | ' | ' |
Other comprehensive income | 0 | 0 | 0 | 0 |
Comprehensive income | $993 | $1,356 | $3,307 | $3,542 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Operating activities: | ' | ' |
Net income | $3,307 | $3,542 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation, Depletion and Amortization | 3,080 | 1,546 |
Share-based compensation | 11,822 | 6,962 |
Excess tax benefits on share-based compensation | 0 | -1,715 |
Tax Benefit from Stock Options Exercised | -9 | 1,621 |
Deferred Income Tax Expense (Benefit) | 654 | 344 |
Provision for doubtful accounts | -40 | -257 |
Changes in operating assets and liabilities: | ' | ' |
Accounts and unbilled receivables | -5,787 | -12,832 |
Prepaid expenses and other assets | -1,413 | 3,276 |
Accounts payable | 2,191 | 137 |
Accrued liabilities | 1,371 | 2,334 |
Accrued payroll and other employee benefits | -811 | 1,123 |
Deferred revenue | -3,206 | 4,788 |
Net cash provided by operating activities | 11,159 | 10,869 |
Investing activities: | ' | ' |
Purchases of property and equipment | -2,636 | -5,391 |
Internal-use software development costs capitalized | -2,265 | -1,378 |
Increase (Decrease) in Restricted Cash | 329 | 0 |
Net cash used in investing activities | -4,572 | -6,769 |
Financing activities: | ' | ' |
Exercise of stock options | 3,079 | 1,033 |
Excess tax benefits on share-based compensation | 0 | 1,715 |
Tax withholding related to net share settlement of restricted stock units | -2,450 | -2,411 |
Debt Issuance Cost | 0 | -250 |
Net cash (used in) provided by financing activities | 629 | 87 |
Net increase in cash and cash equivalents | 7,216 | 4,187 |
Cash and cash equivalents: | ' | ' |
Beginning of period | 83,558 | 68,457 |
End of period | $90,774 | $72,644 |
Organization_and_Nature_of_Ope
Organization and Nature of Operations | 3 Months Ended |
Sep. 30, 2013 | |
Organization and Nature of Operations [Abstract] | ' |
Organization and nature of operations | ' |
Organization and Nature of Operations | |
PROS Holdings, Inc., a Delaware corporation, through its operating subsidiaries (the “Company”), provides big data software applications designed to help companies outperform in their markets by using big data to sell more effectively. The Company applies data science to unlock buying patterns and preferences within transaction data to reveal which opportunities are most likely to close, which offers are most likely to sell and which prices are most likely to win. The Company offers big data software applications to analyze, execute, and optimize sales, pricing, quoting, rebates and revenue management. The Company also provides professional services to implement its software applications as well as business consulting. In addition, the Company provides product maintenance and support to its customers to receive unspecified upgrades, maintenance releases and bug fixes during the term of the support period on a when-and-if-available basis. The Company provides its big data software applications to enterprises across a range of industries, including manufacturing, distribution, services and travel. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies (Notes) | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Accounting Policies [Abstract] | ' | ||||||
Significant Accounting Policies [Text Block] | ' | ||||||
Summary of Significant Accounting Policies | |||||||
The accompanying unaudited condensed consolidated financial statements reflect the application of significant accounting policies as described below and elsewhere in these notes to the condensed consolidated financial statements. | |||||||
Basis of presentation | |||||||
The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial reporting and applicable quarterly reporting regulations of the Securities and Exchange Commission (“SEC”). In management’s opinion, the accompanying interim unaudited condensed consolidated financial statements include all adjustments necessary for a fair statement of the financial position of the Company as of September 30, 2013, the results of operations for the three and nine months ended September 30, 2013 and cash flows for the nine months ended September 30, 2013. | |||||||
Certain information and disclosures normally included in the notes to the annual financial statements prepared in accordance with GAAP have been omitted from these interim unaudited condensed consolidated financial statements pursuant to the rules and regulations of the SEC. Accordingly, these unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2012 (“Annual Report”) filed with the SEC. The condensed consolidated balance sheet as of December 31, 2012 was derived from the Company’s audited consolidated financial statements, but does not include all disclosures required by GAAP. | |||||||
Basis of consolidation | |||||||
The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. | |||||||
Dollar amounts | |||||||
The dollar amounts presented in the tabular data within these footnote disclosures are stated in thousands of dollars, except per unit amounts, or as noted within the context of each footnote disclosure. | |||||||
Use of estimates | |||||||
The Company’s management prepares the unaudited condensed consolidated financial statements in accordance with GAAP. The Company makes estimates and assumptions in the preparation of its unaudited condensed consolidated financial statements, and its estimates and assumptions may affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements, and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates. The complexity and judgment required in the Company’s estimation process, as well as issues related to the assumptions, risks and uncertainties inherent in the application of the percentage-of-completion method of accounting, affect the amounts of revenue, expenses, unbilled receivables and deferred revenue. Estimates are also used for, but not limited to, receivables, allowance for doubtful accounts, useful lives of assets, depreciation, income taxes and deferred tax asset valuation, valuation of stock options, other current liabilities and accrued liabilities. Numerous internal and external factors can affect estimates. The critical accounting policies related to the estimates and judgments are discussed in the Company’s Annual Report under management’s discussion and analysis of financial condition and results of operations. There have been no significant changes to the Company’s critical accounting policies as described in the Company’s Annual Report. | |||||||
Revenue recognition | |||||||
The Company derives its revenue from the licensing and implementation of software solutions and associated software maintenance and support. To a lesser extent, the Company's revenue includes nonsoftware related hosting services. The Company's arrangements with customers typically include: (a) license fees for the use of our solutions either in perpetuity or over a specified term, (b) professional services for configuration, implementation and training services and (c) maintenance and support related to the solutions, including technical support and software updates. If there is significant uncertainty about contract completion or collectability is not reasonably assured, revenue is deferred until the uncertainty is sufficiently resolved or collectability is reasonably assured. In addition, revenue is recognized when persuasive evidence of an arrangement exists and fees are fixed or determinable. | |||||||
In determining whether professional services revenue should be accounted for separately from license revenue, the Company evaluates whether the professional services are considered essential to the functionality of the software using factors such as: the nature of its software products; whether they are ready for use by the customer upon receipt; the nature of professional services; the availability of services from other vendors; whether the timing of payments for license revenue coincides with performance of services; and whether milestones or acceptance criteria exist that affect the realizability of the software license fee. | |||||||
If the Company determines that professional services revenue should not be accounted for separately from license revenue, | |||||||
the license revenue is recognized together with the professional services revenue using the percentage-of-completion method or completed contract method. The completed contract method is also used for contracts where there is a risk over final acceptance by the customer or for contracts that are short term in nature. | |||||||
The percentage-of-completion computation is measured by the percentage of man-days incurred during the reporting period as compared to the estimated total man-days necessary for each contract for implementation of the software solutions. The Company measures performance under the percentage-of-completion method using total man-day method based on current estimates of man-days to complete the project. The Company believes that for each such project, man-days expended in proportion to total estimated man-days at completion represents the most reliable and meaningful measure for determining a project's progress toward completion. Under our fixed-fee arrangements, should a loss be anticipated on a contract, the full amount is recorded when the loss is determinable. | |||||||
The Company also licenses software solutions under term license agreements that typically include maintenance and support during the license term. When maintenance and support is included for the entire term of the license, there is no renewal rate and the Company has not established vendor specific objective evidence (“VSOE”) of fair value for the maintenance and support on term licenses. For term license agreements, revenue and the associated costs are deferred until the delivery of the solution and recognized ratably over the remaining license term. | |||||||
For arrangements that include hosting services, the Company allocates the arrangement consideration between the hosting service and other elements and recognize the hosting fee ratably beginning on the date the customer commences use of our services and continuing through the end of the hosting term. | |||||||
For multiple element arrangements that contain software and nonsoftware elements (such as the Company's hosting service offerings), the Company allocates revenue between the software and software-related elements as a group and any nonsoftware elements based on a relative fair value allocation. The Company determines fair value for each deliverable using the following hierarchy. The Company utilizes VSOE of fair value if it exists; however in certain instances, the Company may not be able to establish VSOE for all deliverables in an arrangement with multiple elements. This may be due to infrequently selling each element separately, not pricing solutions or services within a narrow range, or only having a limited sales history. In addition, third party evidence ("TPE") may not be available. When the Company is unable to establish selling prices using VSOE or TPE, the Company uses best estimated selling price ("BESP") in the allocation of arrangement consideration. The objective of BESP is to determine the price at which the Company would transact a sale if the product or service were sold on a stand-alone basis. For transactions that only include software and software-related elements, the Company continues to account for such arrangements under the software revenue recognition standards which require it to establish VSOE of fair value to allocate arrangement consideration to multiple deliverables. | |||||||
Maintenance and support revenue includes post-implementation customer support and the right to unspecified software updates and enhancements on a when-and-if available basis. The Company generally invoices for maintenance and support services on a monthly, quarterly or on an annual basis through the maintenance and support period. The Company recognizes revenue from maintenance and support arrangements ratably over the period in which the maintenance and support services are provided. | |||||||
Software license and implementation revenue that have been recognized, but for which the Company has not invoiced the customer, are recorded as unbilled receivables. Invoices that have been issued before software license, implementation and maintenance and support revenue have been recognized are recorded as deferred revenue in the accompanying unaudited condensed consolidated balance sheets. | |||||||
Internal-use software | |||||||
Costs incurred to develop internal-use software during the development stage are capitalized, stated at cost, and depreciated using the straight-line method over the estimated useful lives of the assets. Development stage costs generally include salaries and personnel costs and third party contractor expenses associated with internal-use software configuration, coding, installation and testing. Capitalized internal-use software development costs related to the Company's cloud-based offerings were $0.8 million and $0.6 million for the three months ended September 30, 2013 and 2012, respectively, and $2.4 million and $1.4 million for the nine months ended September 30, 2013 and 2012, respectively. Capitalized internal-use software development costs related to our cloud-based offerings are amortized using the straight-line method over the useful life of the asset. For the three and nine months ended September 30, 2013, the Company amortized $0.1 million and $0.3 million, respectively, of capitalized internal-use software development costs related to its cloud-based offerings. Capitalized software for internal use is included in property and equipment, net in the unaudited condensed consolidated balance sheets. Amortization of capitalized internal-use software development costs related to the Company's cloud-based offerings is included in cost of license and implementation revenues in the accompanying unaudited condensed consolidated statements of comprehensive income. | |||||||
Noncash share-based compensation | |||||||
The Company measures all share-based payments to its employees based on the grant date fair value of the awards and recognizes expense in the Company’s unaudited consolidated statement of comprehensive income on a straight-line basis over the period during which the recipient is required to perform service (generally over the vesting period of the awards). To date, the Company has granted stock options, Restricted Stock Units (“RSUs”), Stock Appreciation Rights (“SARs”), and Market Stock Units (“MSUs”). The MSUs are performance-based awards where the number of shares that vest are based upon the Company’s relative shareholder return. | |||||||
The following table presents the number of shares or units outstanding for each award type as of September 30, 2013 and December 31, 2012, respectively. | |||||||
Award type | September 30, 2013 | December 31, 2012 | |||||
Stock options | 1,182,290 | 1,474,828 | |||||
Restricted stock units | 1,613,335 | 1,182,726 | |||||
Stock appreciation rights | 725,196 | 789,637 | |||||
Market share units | 469,000 | 205,000 | |||||
Stock options, RSUs and SARs vest ratably between three and four years. The actual number of MSUs that will be eligible to vest is based on the total shareholder return of the Company relative to the total shareholder return of the Russell 2000 Index (“Index”) over their respective performance periods, as defined by each award's plan documents. | |||||||
The fair value of the RSUs is based on the closing price of the Company’s stock on the date of grant. | |||||||
The Company estimates the fair value of MSUs on the date of grant using a Monte Carlo simulation model. The determination of fair value of the MSUs is affected by the Company’s stock price and a number of assumptions including the expected volatilities of the Company’s stock and the Index, its risk-free interest rate and expected dividends. The Company’s expected volatility at the date of grant was based on the historical volatilities of the Company and the Index over the performance period. | |||||||
The assumptions used to value the MSUs granted during the nine months ended September 30, 2013 were as follows: | |||||||
For the Three Months Ended September 30, 2013 | |||||||
Volatility | 57% | ||||||
Risk-free interest rate | 0.35% | ||||||
Expected option life in years | 2.84 | ||||||
Dividend yield | — | ||||||
Earnings per share | |||||||
The Company computes basic earnings per share by dividing net income by the weighted average number of common shares outstanding. Diluted earnings per share is computed by dividing net income by the weighted average number of common shares and dilutive potential common shares then outstanding. Potential common shares consist of shares issuable upon the exercise of stock options and SARs or the vesting of share-based awards. Diluted earnings per share reflect the assumed conversion of all dilutive share-based awards using the treasury stock method. | |||||||
Fair value measurement | |||||||
The Company’s financial assets that are measured at fair value on a recurring basis consisted of $58.0 million invested in treasury money market funds at both September 30, 2013 and December 31, 2012, respectively. The fair value of these accounts is determined based on quoted market prices, which represents level 1 in the fair value hierarchy as defined by ASC 820, “Fair Value Measurement and Disclosure.” | |||||||
Deferred revenue and unbilled receivables | |||||||
Software license and implementation services that have been performed, but for which the Company has not invoiced the customer, are recorded as unbilled receivables, and invoices that have been issued before the software license and implementation services have been performed are recorded as deferred revenue in the accompanying unaudited condensed consolidated balance sheets. The Company generally invoices for maintenance and support services on a monthly, a quarterly or an annual basis through the maintenance and support period. | |||||||
Credit Facility | |||||||
As of September 30, 2013, $0.2 million of unamortized debt issuance costs related to the revolving credit facility ("Revolver") is included in other long term assets in the unaudited condensed consolidated balance sheets. For the three and nine months ended September 30, 2013, $12,500 and $37,500, respectively, of debt issuance cost amortization is included in Other Expense (Income), net in the unaudited condensed consolidated statements of comprehensive income. | |||||||
As of September 30, 2013, the Company had no outstanding borrowings under the Revolver. | |||||||
Income taxes | |||||||
At the end of each interim reporting period, the Company estimates its annual effective tax rate to calculate its income tax provision. The estimated effective tax rate includes U.S. federal, state and foreign income taxes and is based on the application of an estimated annual income tax rate applied to the current quarter’s year-to-date pre-tax income. This estimated effective tax rate is used in providing for income taxes on a year-to-date basis and may change in subsequent interim reporting periods. | |||||||
In January 2013, Congress passed the American Taxpayer Relief Act of 2012 which included, among other legislation, the retroactive extension of the Research and Experimentations ("R&E") tax credit. The passage of this legislation made the R&E tax credit retroactive to January 1, 2012 and extended the R&E tax credit until December 31, 2013. | |||||||
The effective tax rate for the three months ended September 30, 2013 and 2012 was 33% and 25%, respectively. The effective tax rate (benefit) for the nine months ended September 30, 2013 and 2012 was (22)% and 39%, respectively. The increase in the effective tax rate in the three months ended September 30, 2013 compared to the three months ended September 30, 2012 is primarily due to an increase in non-deductible share-based compensation expense in 2013 and a discrete tax provision amount recorded in the third quarter of 2012 related to a favorable return-to-provision adjustment attributable to higher than expected 2011 R&E tax credits, partially offset by the application of the 2013 R&E tax credit. The difference between the effective tax rate for the nine months ended September 30, 2013 compared to the nine months ended September 30, 2012 is primarily due to the application of the 2013 R&E tax credit, a discrete benefit attributed to the 2012 R&E tax credit recorded in the first quarter of 2013, partially offset by a rate increase attributed to an increase in non-deductible share-based compensation expense and a discrete tax provision amount recorded in the third quarter of 2012 related to a favorable return-to-provision adjustment attributable to higher than expected 2011 R&E tax credits. | |||||||
The difference between the effective tax rate and the federal statutory rate of 34% for the three months ended September 30, 2013 was due primarily to the 2013 R&E tax credit, partially offset by a rate increase attributable to nondeductible share-based compensation expense. The difference between the effective tax rate and the federal statutory rate of 34% for the nine months ended September 30, 2013 was due primarily to rate decreases from the 2013 R&E tax credit and a discrete benefit attributed to the 2012 R&E tax credit, partially offset by a rate increase attributable to nondeductible share-based compensation expense. |
Earnings_per_Share_Note
Earnings per Share (Note) | 3 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Earnings per Share | ' | |||||||||||||||
Earnings per Share | ||||||||||||||||
The following table sets forth the computation of basic and diluted earnings per share for the three and nine months ended September 30, 2013 and 2012: | ||||||||||||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Numerator: | ||||||||||||||||
Net income | $ | 993 | $ | 1,356 | $ | 3,307 | $ | 3,542 | ||||||||
Denominator: | ||||||||||||||||
Weighted average shares (basic) | 28,096,333 | 27,426,269 | 27,953,416 | 27,322,940 | ||||||||||||
Dilutive effect of potential common shares | 2,219,166 | 936,313 | 1,982,340 | 997,241 | ||||||||||||
Weighted average shares (diluted) | 30,315,499 | 28,362,582 | 29,935,756 | 28,320,181 | ||||||||||||
Basic earnings per share | $ | 0.04 | $ | 0.05 | $ | 0.12 | $ | 0.13 | ||||||||
Diluted earnings per share | $ | 0.03 | $ | 0.05 | $ | 0.11 | $ | 0.13 | ||||||||
Dilutive potential common shares consist of shares issuable upon the exercise of stock options, settlement of SARs, vesting of RSUs and MSUs. Potential common shares determined to be antidilutive and excluded from diluted weighted average shares outstanding were approximately 140 and 1,005,000 for the three months ended September 30, 2013 and 2012, respectively, and approximately 12,000 and 549,000 for the nine months ended September 30, 2013 and 2012, respectively. |
Noncash_Sharebased_Compensatio
Noncash Share-based Compensation (Note) | 3 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Noncash Share-based Compensation [Abstract] | ' | |||||||||||||||
Noncash Share-based Compensation | ' | |||||||||||||||
4. Noncash Share-based Compensation | ||||||||||||||||
During the three months ended September 30, 2013, the Company granted 44,525 shares of RSUs with a weighted average grant-date fair value of $31.06 per share. The Company did not grant stock options, SARs or MSUs during the three months ended September 30, 2013. | ||||||||||||||||
During the nine months ended September 30, 2013, the Company granted 839,125 shares of RSUs with a weighted average grant-date fair value of $20.37 per share. The Company granted 270,000 MSUs with a weighted average grant-date fair value of $40.58 to certain executive officers and non-executive employees during the nine months ended September 30, 2013. These MSUs vest on January 1, 2016 and the actual number of MSUs that will be eligible to vest is based on the total shareholder return of the Company relative to the total shareholder return of the Index over their respective performance period, as defined by each award's plan documents. The Company did not grant any stock options or SARs during the nine months ended September 30, 2013. | ||||||||||||||||
Share-based compensation expense is allocated to expense categories on the unaudited condensed consolidated statements of comprehensive income. The following table summarizes share-based compensation expense included in the Company’s unaudited condensed consolidated statements of comprehensive income for the three and nine months ended September 30, 2013 and 2012: | ||||||||||||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Share-based compensation: | ||||||||||||||||
Cost of revenue: | ||||||||||||||||
License and implementation | $ | 536 | $ | 335 | $ | 1,531 | $ | 966 | ||||||||
Total included in cost of revenue | 536 | 335 | 1,531 | 966 | ||||||||||||
Operating expenses: | ||||||||||||||||
Selling, marketing, general and administrative | 2,940 | 1,662 | 8,000 | 4,565 | ||||||||||||
Research and development | 788 | 493 | 2,291 | 1,431 | ||||||||||||
Total included in operating expenses | 3,728 | 2,155 | 10,291 | 5,996 | ||||||||||||
Total share-based compensation expense | $ | 4,264 | $ | 2,490 | $ | 11,822 | $ | 6,962 | ||||||||
In February 2013, the number of shares available for issuance increased by 900,000 to 7,268,000 under an evergreen provision in our 2007 Equity Incentive Plan ("2007 Stock Plan"). As of September 30, 2013, 440,051 shares remained available for issuance under the 2007 Stock Plan. At September 30, 2013, there was an estimated $33.4 million of total unrecognized compensation costs related to share-based compensation arrangements. These costs will be recognized over a weighted average period of 2.6 years. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Sep. 30, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
Commitments and Contingencies | |
Litigation: | |
In the ordinary course of the Company’s business, the Company regularly becomes involved in contract and other negotiations and, in more limited circumstances, becomes involved in legal proceedings, claims and litigation. The outcomes of these matters are inherently unpredictable. The Company is not currently involved in any outstanding litigation that it believes, individually or in the aggregate, will have a material adverse effect on its business, financial condition, results of operations or cash flows. |
Subsequent_Events_Notes
Subsequent Events (Notes) | 9 Months Ended |
Sep. 30, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events [Text Block] | ' |
Subsequent Events | |
On October 24, 2013, the Company entered into a tender offer agreement with Cameleon Software ("Cameleon"), a French software company listed on the NYSE Euronext exchange, indicating the Company's intent to acquire Cameleon through the tender offer for all of the outstanding share capital of Cameleon in an all-cash transaction valued at approximately €24 million (U.S. $33 million), net of cash expected to be acquired. The Cameleon board unanimously recommended this tender offer. Completion of the tender offer is subject to, among other things, clearance of the tender offer by the Autorité des Marchés Financiers (AMF), and Cameleon shareholders tendering at least 65% of Cameleon’s freely tradeable shares and warrants in the tender offer. As part of the tender offer, the Company placed approximately $40 million in an escrow to fund the acquisition. These funds will be unavailable to the Company for other uses until the successful closing of the tender offer, the failure of the tender offer in accordance with its terms or the AMF's rejection of the tender offer, whichever first occurs. If successful, we expect to complete the acquisition of Cameleon in the first quarter of 2014. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 3 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Accounting Policies [Abstract] | ' | ||||||
Deferred Revenue and Unbilled Receivables [Policy Text Block] | ' | ||||||
Deferred revenue and unbilled receivables | |||||||
Software license and implementation services that have been performed, but for which the Company has not invoiced the customer, are recorded as unbilled receivables, and invoices that have been issued before the software license and implementation services have been performed are recorded as deferred revenue in the accompanying unaudited condensed consolidated balance sheets. The Company generally invoices for maintenance and support services on a monthly, a quarterly or an annual basis through the maintenance and support period | |||||||
Basis of presentation | ' | ||||||
Basis of presentation | |||||||
The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial reporting and applicable quarterly reporting regulations of the Securities and Exchange Commission (“SEC”). In management’s opinion, the accompanying interim unaudited condensed consolidated financial statements include all adjustments necessary for a fair statement of the financial position of the Company as of September 30, 2013, the results of operations for the three and nine months ended September 30, 2013 and cash flows for the nine months ended September 30, 2013. | |||||||
Certain information and disclosures normally included in the notes to the annual financial statements prepared in accordance with GAAP have been omitted from these interim unaudited condensed consolidated financial statements pursuant to the rules and regulations of the SEC. Accordingly, these unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2012 (“Annual Report”) filed with the SEC. The condensed consolidated balance sheet as of December 31, 2012 was derived from the Company’s audited consolidated financial statements, but does not include all disclosures required by GAAP. | |||||||
Basis of consolidation | ' | ||||||
Basis of consolidation | |||||||
The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. | |||||||
Dollar amounts | ' | ||||||
Dollar amounts | |||||||
The dollar amounts presented in the tabular data within these footnote disclosures are stated in thousands of dollars, except per unit amounts, or as noted within the context of each footnote disclosure. | |||||||
Use of estimates | ' | ||||||
Use of estimates | |||||||
The Company’s management prepares the unaudited condensed consolidated financial statements in accordance with GAAP. The Company makes estimates and assumptions in the preparation of its unaudited condensed consolidated financial statements, and its estimates and assumptions may affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements, and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates. The complexity and judgment required in the Company’s estimation process, as well as issues related to the assumptions, risks and uncertainties inherent in the application of the percentage-of-completion method of accounting, affect the amounts of revenue, expenses, unbilled receivables and deferred revenue. Estimates are also used for, but not limited to, receivables, allowance for doubtful accounts, useful lives of assets, depreciation, income taxes and deferred tax asset valuation, valuation of stock options, other current liabilities and accrued liabilities. Numerous internal and external factors can affect estimates. The critical accounting policies related to the estimates and judgments are discussed in the Company’s Annual Report under management’s discussion and analysis of financial condition and results of operations. There have been no significant changes to the Company’s critical accounting policies as described in the Company’s Annual Report. | |||||||
Revenue recognition | ' | ||||||
Revenue recognition | |||||||
The Company derives its revenue from the licensing and implementation of software solutions and associated software maintenance and support. To a lesser extent, the Company's revenue includes nonsoftware related hosting services. The Company's arrangements with customers typically include: (a) license fees for the use of our solutions either in perpetuity or over a specified term, (b) professional services for configuration, implementation and training services and (c) maintenance and support related to the solutions, including technical support and software updates. If there is significant uncertainty about contract completion or collectability is not reasonably assured, revenue is deferred until the uncertainty is sufficiently resolved or collectability is reasonably assured. In addition, revenue is recognized when persuasive evidence of an arrangement exists and fees are fixed or determinable. | |||||||
In determining whether professional services revenue should be accounted for separately from license revenue, the Company evaluates whether the professional services are considered essential to the functionality of the software using factors such as: the nature of its software products; whether they are ready for use by the customer upon receipt; the nature of professional services; the availability of services from other vendors; whether the timing of payments for license revenue coincides with performance of services; and whether milestones or acceptance criteria exist that affect the realizability of the software license fee. | |||||||
If the Company determines that professional services revenue should not be accounted for separately from license revenue, | |||||||
the license revenue is recognized together with the professional services revenue using the percentage-of-completion method or completed contract method. The completed contract method is also used for contracts where there is a risk over final acceptance by the customer or for contracts that are short term in nature. | |||||||
The percentage-of-completion computation is measured by the percentage of man-days incurred during the reporting period as compared to the estimated total man-days necessary for each contract for implementation of the software solutions. The Company measures performance under the percentage-of-completion method using total man-day method based on current estimates of man-days to complete the project. The Company believes that for each such project, man-days expended in proportion to total estimated man-days at completion represents the most reliable and meaningful measure for determining a project's progress toward completion. Under our fixed-fee arrangements, should a loss be anticipated on a contract, the full amount is recorded when the loss is determinable. | |||||||
The Company also licenses software solutions under term license agreements that typically include maintenance and support during the license term. When maintenance and support is included for the entire term of the license, there is no renewal rate and the Company has not established vendor specific objective evidence (“VSOE”) of fair value for the maintenance and support on term licenses. For term license agreements, revenue and the associated costs are deferred until the delivery of the solution and recognized ratably over the remaining license term. | |||||||
For arrangements that include hosting services, the Company allocates the arrangement consideration between the hosting service and other elements and recognize the hosting fee ratably beginning on the date the customer commences use of our services and continuing through the end of the hosting term. | |||||||
For multiple element arrangements that contain software and nonsoftware elements (such as the Company's hosting service offerings), the Company allocates revenue between the software and software-related elements as a group and any nonsoftware elements based on a relative fair value allocation. The Company determines fair value for each deliverable using the following hierarchy. The Company utilizes VSOE of fair value if it exists; however in certain instances, the Company may not be able to establish VSOE for all deliverables in an arrangement with multiple elements. This may be due to infrequently selling each element separately, not pricing solutions or services within a narrow range, or only having a limited sales history. In addition, third party evidence ("TPE") may not be available. When the Company is unable to establish selling prices using VSOE or TPE, the Company uses best estimated selling price ("BESP") in the allocation of arrangement consideration. The objective of BESP is to determine the price at which the Company would transact a sale if the product or service were sold on a stand-alone basis. For transactions that only include software and software-related elements, the Company continues to account for such arrangements under the software revenue recognition standards which require it to establish VSOE of fair value to allocate arrangement consideration to multiple deliverables. | |||||||
Maintenance and support revenue includes post-implementation customer support and the right to unspecified software updates and enhancements on a when-and-if available basis. The Company generally invoices for maintenance and support services on a monthly, quarterly or on an annual basis through the maintenance and support period. The Company recognizes revenue from maintenance and support arrangements ratably over the period in which the maintenance and support services are provided. | |||||||
Software license and implementation revenue that have been recognized, but for which the Company has not invoiced the customer, are recorded as unbilled receivables. Invoices that have been issued before software license, implementation and maintenance and support revenue have been recognized are recorded as deferred revenue in the accompanying unaudited condensed consolidated balance sheets. | |||||||
Internal-use software | ' | ||||||
Internal-use software | |||||||
Costs incurred to develop internal-use software during the development stage are capitalized, stated at cost, and depreciated using the straight-line method over the estimated useful lives of the assets. Development stage costs generally include salaries and personnel costs and third party contractor expenses associated with internal-use software configuration, coding, installation and testing. Capitalized internal-use software development costs related to the Company's cloud-based offerings were $0.8 million and $0.6 million for the three months ended September 30, 2013 and 2012, respectively, and $2.4 million and $1.4 million for the nine months ended September 30, 2013 and 2012, respectively. Capitalized internal-use software development costs related to our cloud-based offerings are amortized using the straight-line method over the useful life of the asset. For the three and nine months ended September 30, 2013, the Company amortized $0.1 million and $0.3 million, respectively, of capitalized internal-use software development costs related to its cloud-based offerings. Capitalized software for internal use is included in property and equipment, net in the unaudited condensed consolidated balance sheets. Amortization of capitalized internal-use software development costs related to the Company's cloud-based offerings is included in cost of license and implementation revenues in the accompanying unaudited condensed consolidated statements of comprehensive income. | |||||||
Noncash share-based compensation | ' | ||||||
Noncash share-based compensation | |||||||
The Company measures all share-based payments to its employees based on the grant date fair value of the awards and recognizes expense in the Company’s unaudited consolidated statement of comprehensive income on a straight-line basis over the period during which the recipient is required to perform service (generally over the vesting period of the awards). To date, the Company has granted stock options, Restricted Stock Units (“RSUs”), Stock Appreciation Rights (“SARs”), and Market Stock Units (“MSUs”). The MSUs are performance-based awards where the number of shares that vest are based upon the Company’s relative shareholder return. | |||||||
The following table presents the number of shares or units outstanding for each award type as of September 30, 2013 and December 31, 2012, respectively. | |||||||
Award type | September 30, 2013 | December 31, 2012 | |||||
Stock options | 1,182,290 | 1,474,828 | |||||
Restricted stock units | 1,613,335 | 1,182,726 | |||||
Stock appreciation rights | 725,196 | 789,637 | |||||
Market share units | 469,000 | 205,000 | |||||
Stock options, RSUs and SARs vest ratably between three and four years. The actual number of MSUs that will be eligible to vest is based on the total shareholder return of the Company relative to the total shareholder return of the Russell 2000 Index (“Index”) over their respective performance periods, as defined by each award's plan documents. | |||||||
The fair value of the RSUs is based on the closing price of the Company’s stock on the date of grant. | |||||||
The Company estimates the fair value of MSUs on the date of grant using a Monte Carlo simulation model. The determination of fair value of the MSUs is affected by the Company’s stock price and a number of assumptions including the expected volatilities of the Company’s stock and the Index, its risk-free interest rate and expected dividends. The Company’s expected volatility at the date of grant was based on the historical volatilities of the Company and the Index over the performance period. | |||||||
The assumptions used to value the MSUs granted during the nine months ended September 30, 2013 were as follows: | |||||||
For the Three Months Ended September 30, 2013 | |||||||
Volatility | 57% | ||||||
Risk-free interest rate | 0.35% | ||||||
Expected option life in years | 2.84 | ||||||
Dividend yield | — | ||||||
Earnings per share | ' | ||||||
Earnings per share | |||||||
The Company computes basic earnings per share by dividing net income by the weighted average number of common shares outstanding. Diluted earnings per share is computed by dividing net income by the weighted average number of common shares and dilutive potential common shares then outstanding. Potential common shares consist of shares issuable upon the exercise of stock options and SARs or the vesting of share-based awards. Diluted earnings per share reflect the assumed conversion of all dilutive share-based awards using the treasury stock method. | |||||||
Fair value measurement | ' | ||||||
. | |||||||
Fair value measurement | |||||||
The Company’s financial assets that are measured at fair value on a recurring basis consisted of $58.0 million invested in treasury money market funds at both September 30, 2013 and December 31, 2012, respectively. The fair value of these accounts is determined based on quoted market prices, which represents level 1 in the fair value hierarchy as defined by ASC 820, “Fair Value Measurement and Disclosure. | |||||||
Credit Facility | ' | ||||||
Credit Facility | |||||||
As of September 30, 2013, $0.2 million of unamortized debt issuance costs related to the revolving credit facility ("Revolver") is included in other long term assets in the unaudited condensed consolidated balance sheets. For the three and nine months ended September 30, 2013, $12,500 and $37,500, respectively, of debt issuance cost amortization is included in Other Expense (Income), net in the unaudited condensed consolidated statements of comprehensive income. | |||||||
As of September 30, 2013, the Company had no outstanding borrowings under the Revolver. | |||||||
Income taxes | ' | ||||||
Income taxes | |||||||
At the end of each interim reporting period, the Company estimates its annual effective tax rate to calculate its income tax provision. The estimated effective tax rate includes U.S. federal, state and foreign income taxes and is based on the application of an estimated annual income tax rate applied to the current quarter’s year-to-date pre-tax income. This estimated effective tax rate is used in providing for income taxes on a year-to-date basis and may change in subsequent interim reporting periods. | |||||||
In January 2013, Congress passed the American Taxpayer Relief Act of 2012 which included, among other legislation, the retroactive extension of the Research and Experimentations ("R&E") tax credit. The passage of this legislation made the R&E tax credit retroactive to January 1, 2012 and extended the R&E tax credit until December 31, 2013. | |||||||
The effective tax rate for the three months ended September 30, 2013 and 2012 was 33% and 25%, respectively. The effective tax rate (benefit) for the nine months ended September 30, 2013 and 2012 was (22)% and 39%, respectively. The increase in the effective tax rate in the three months ended September 30, 2013 compared to the three months ended September 30, 2012 is primarily due to an increase in non-deductible share-based compensation expense in 2013 and a discrete tax provision amount recorded in the third quarter of 2012 related to a favorable return-to-provision adjustment attributable to higher than expected 2011 R&E tax credits, partially offset by the application of the 2013 R&E tax credit. The difference between the effective tax rate for the nine months ended September 30, 2013 compared to the nine months ended September 30, 2012 is primarily due to the application of the 2013 R&E tax credit, a discrete benefit attributed to the 2012 R&E tax credit recorded in the first quarter of 2013, partially offset by a rate increase attributed to an increase in non-deductible share-based compensation expense and a discrete tax provision amount recorded in the third quarter of 2012 related to a favorable return-to-provision adjustment attributable to higher than expected 2011 R&E tax credits. | |||||||
The difference between the effective tax rate and the federal statutory rate of 34% for the three months ended September 30, 2013 was due primarily to the 2013 R&E tax credit, partially offset by a rate increase attributable to nondeductible share-based compensation expense. The difference between the effective tax rate and the federal statutory rate of 34% for the nine months ended September 30, 2013 was due primarily to rate decreases from the 2013 R&E tax credit and a discrete benefit attributed to the 2012 R&E tax credit, partially offset by a rate increase attributable to nondeductible share-based compensation expense. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 3 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Accounting Policies [Abstract] | ' | ||||||
Awards outstanding [Table Text Block] | ' | ||||||
The following table presents the number of shares or units outstanding for each award type as of September 30, 2013 and December 31, 2012, respectively. | |||||||
Award type | September 30, 2013 | December 31, 2012 | |||||
Stock options | 1,182,290 | 1,474,828 | |||||
Restricted stock units | 1,613,335 | 1,182,726 | |||||
Stock appreciation rights | 725,196 | 789,637 | |||||
Market share units | 469,000 | 205,000 | |||||
Market Stock Units Valuation Assumptions [Table Text Block] | ' | ||||||
The assumptions used to value the MSUs granted during the nine months ended September 30, 2013 were as follows: | |||||||
For the Three Months Ended September 30, 2013 | |||||||
Volatility | 57% | ||||||
Risk-free interest rate | 0.35% | ||||||
Expected option life in years | 2.84 | ||||||
Dividend yield | — |
Earnings_per_Share_Table
Earnings per Share (Table) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | ' | |||||||||||||||
The following table sets forth the computation of basic and diluted earnings per share for the three and nine months ended September 30, 2013 and 2012: | ||||||||||||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Numerator: | ||||||||||||||||
Net income | $ | 993 | $ | 1,356 | $ | 3,307 | $ | 3,542 | ||||||||
Denominator: | ||||||||||||||||
Weighted average shares (basic) | 28,096,333 | 27,426,269 | 27,953,416 | 27,322,940 | ||||||||||||
Dilutive effect of potential common shares | 2,219,166 | 936,313 | 1,982,340 | 997,241 | ||||||||||||
Weighted average shares (diluted) | 30,315,499 | 28,362,582 | 29,935,756 | 28,320,181 | ||||||||||||
Basic earnings per share | $ | 0.04 | $ | 0.05 | $ | 0.12 | $ | 0.13 | ||||||||
Diluted earnings per share | $ | 0.03 | $ | 0.05 | $ | 0.11 | $ | 0.13 | ||||||||
Noncash_Sharebased_Compensatio1
Noncash Share-based Compensation (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Noncash Share-based Compensation [Abstract] | ' | |||||||||||||||
Schedule of Share-based Compensation Expense | ' | |||||||||||||||
The following table summarizes share-based compensation expense included in the Company’s unaudited condensed consolidated statements of comprehensive income for the three and nine months ended September 30, 2013 and 2012: | ||||||||||||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Share-based compensation: | ||||||||||||||||
Cost of revenue: | ||||||||||||||||
License and implementation | $ | 536 | $ | 335 | $ | 1,531 | $ | 966 | ||||||||
Total included in cost of revenue | 536 | 335 | 1,531 | 966 | ||||||||||||
Operating expenses: | ||||||||||||||||
Selling, marketing, general and administrative | 2,940 | 1,662 | 8,000 | 4,565 | ||||||||||||
Research and development | 788 | 493 | 2,291 | 1,431 | ||||||||||||
Total included in operating expenses | 3,728 | 2,155 | 10,291 | 5,996 | ||||||||||||
Total share-based compensation expense | $ | 4,264 | $ | 2,490 | $ | 11,822 | $ | 6,962 | ||||||||
Summary_of_Significant_Account3
Summary of Significant Accounting Policies Significant Accounting Policies (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Summary of Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Debt Issuance Cost | $200,000 | ' | $0 | ($250,000) |
Treasury money market funds, at fair value | 58,000,000 | ' | 58,000,000 | ' |
Internal-use software development costs capitalized | ' | ' | 2,265,000 | 1,378,000 |
Effective income tax rate | 33.00% | 25.00% | -22.00% | 39.00% |
Federal statutory income tax rate | 34.00% | ' | ' | ' |
Amortization of Financing Costs | 12,500 | ' | 37,500 | ' |
Line of Credit Facility, Amount Outstanding | 0 | ' | 0 | ' |
Cloud-based product offerings [Member] | ' | ' | ' | ' |
Summary of Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Internal-use software development costs capitalized | 800,000 | 600,000 | 2,400,000 | 1,400,000 |
Capitalized Computer Software, Amortization | $100,000 | ' | $300,000 | ' |
Minimum [Member] | ' | ' | ' | ' |
Summary of Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | ' | ' | '3 years | ' |
Maximum [Member] | ' | ' | ' | ' |
Summary of Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | ' | ' | '4 years | ' |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies Awards Outstanding (Details) | Sep. 30, 2013 | Dec. 31, 2012 |
Stock options | ' | ' |
Awards outstanding [Line Items] | ' | ' |
Awards outstanding, Number | 1,182,290 | 1,474,828 |
Restricted stock units | ' | ' |
Awards outstanding [Line Items] | ' | ' |
Awards outstanding, Number | 1,613,335 | 1,182,726 |
Stock appreciation rights | ' | ' |
Awards outstanding [Line Items] | ' | ' |
Awards outstanding, Number | 725,196 | 789,637 |
Market share units | ' | ' |
Awards outstanding [Line Items] | ' | ' |
Awards outstanding, Number | 469,000 | 205,000 |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies Fair Value Calculation Assumptions (Details) (Market share units) | 3 Months Ended |
Sep. 30, 2013 | |
Market share units | ' |
Valuation Assumptions for MSUs [Line Items] | ' |
Volatility | 57.00% |
Risk-free interest rate | 0.35% |
Expected life, in years | '2 years 10 months 2 days |
Dividend yield | 0.00% |
Earnings_per_Share_Details
Earnings per Share (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Antidilutive potential common shares excluded from computation of earnings per share | 140 | 1,005,000 | 12,000 | 549,000 |
Earnings_per_Share_Basis_and_D
Earnings per Share Basis and Diluted (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Numerator | ' | ' | ' | ' |
Net income | $993 | $1,356 | $3,307 | $3,542 |
Denominator | ' | ' | ' | ' |
Weighted average shares (basic) | 28,096,333 | 27,426,269 | 27,953,416 | 27,322,940 |
Dilutive effect of potential common shares | 2,219,166 | 936,313 | 1,982,340 | 997,241 |
Weighted average shares (diluted) | 30,315,499 | 28,362,582 | 29,935,756 | 28,320,181 |
Basic earnings per share | $0.04 | $0.05 | $0.12 | $0.13 |
Diluted earnings per share | $0.03 | $0.05 | $0.11 | $0.13 |
Noncash_Sharebased_Compensatio2
Noncash Share-based Compensation (Details) (USD $) | 3 Months Ended | 9 Months Ended | |
In Millions, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | Jun. 30, 2013 |
Noncash Share-based Compensation (Narrative) [Line Items] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | ' | 900,000 | ' |
Shares reserved for issuance under Plan | 7,268,000 | 7,268,000 | ' |
Shares available for future grants | 440,051 | 440,051 | ' |
Unrecognized compensation cost related to share-based compensation | ' | ' | $33.40 |
Weighted average period to recognize cost, in years | '2 years 6 months 29 days | ' | ' |
RSUs | ' | ' | ' |
Noncash Share-based Compensation (Narrative) [Line Items] | ' | ' | ' |
Awards, other than options, granted in period | 44,525 | 839,125 | ' |
Weighted average grant date fair value, per share, of awards granted in period | $31.06 | 20.37 | ' |
MSUs | ' | ' | ' |
Noncash Share-based Compensation (Narrative) [Line Items] | ' | ' | ' |
Awards, other than options, granted in period | ' | 270,000 | ' |
Weighted average grant date fair value, per share, of awards granted in period | ' | 40.58 | ' |
Noncash_Sharebased_Compensatio3
Noncash Share-based Compensation Expense (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Share-based compensation expense | $4,264 | $2,490 | $11,822 | $6,962 |
Cost of revenue | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Share-based compensation expense | 536 | 335 | 1,531 | 966 |
License and implementation | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Share-based compensation expense | 536 | 335 | 1,531 | 966 |
Operating expenses | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Share-based compensation expense | 3,728 | 2,155 | 10,291 | 5,996 |
Selling, marketing, general and administrative | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Share-based compensation expense | 2,940 | 1,662 | 8,000 | 4,565 |
Research and development | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Share-based compensation expense | $788 | $493 | $2,291 | $1,431 |
Subsequent_Events_Details
Subsequent Events (Details) (Cameleon Aqcuistion [Member]) | Oct. 24, 2013 | Oct. 24, 2013 |
In Millions, unless otherwise specified | USD ($) | EUR (€) |
Subsequent Event [Line Items] | ' | ' |
Estimated Value of Acquisition | $33 | € 24 |
TenderOfferAcquisitionThresholdPercentage | 65.00% | 65.00% |
Restricted Cash and Cash Equivalents | $40 | ' |