Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Oct. 21, 2013 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 30-Sep-13 | |
Document Fiscal Year Focus | 2013 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | DMRC | |
Entity Registrant Name | Digimarc CORP | |
Entity Central Index Key | 1438231 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 7,289,288 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $5,079 | $6,866 |
Marketable securities | 27,935 | 25,403 |
Trade accounts receivable, net | 5,117 | 4,216 |
Other current assets | 1,507 | 1,016 |
Total current assets | 39,638 | 37,501 |
Marketable securities | 5,097 | 6,787 |
Property and equipment, net | 2,472 | 1,453 |
Intangibles, net | 6,700 | 6,721 |
Goodwill | 1,114 | 1,114 |
Deferred tax assets, net | 3,217 | 3,589 |
Other assets | 265 | 166 |
Total assets | 58,503 | 57,331 |
Current liabilities: | ||
Accounts payable and other accrued liabilities | 1,482 | 1,143 |
Deferred revenue | 2,784 | 2,512 |
Total current liabilities | 4,266 | 3,655 |
Deferred rent and other long-term liabilities | 405 | 673 |
Total liabilities | 4,671 | 4,328 |
Commitments and contingencies (Note 13) | ||
Shareholders' equity: | ||
Preferred stock (par value $0.001 per share, 2,500,000 authorized, 10,000 shares issued and outstanding at September 30, 2013 and December 31, 2012) | 50 | 50 |
Common stock (par value $0.001 per share, 50,000,000 authorized, 7,289,288 and 7,168,359 shares issued and outstanding at September 30, 2013 and December 31, 2012, respectively) | 7 | 7 |
Additional paid-in capital | 42,320 | 39,869 |
Retained earnings | 11,455 | 13,077 |
Total shareholders' equity | 53,832 | 53,003 |
Total liabilities and shareholders' equity | $58,503 | $57,331 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 2,500,000 | 2,500,000 |
Preferred stock, shares issued | 10,000 | 10,000 |
Preferred stock, shares outstanding | 10,000 | 10,000 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 7,289,288 | 7,168,359 |
Common stock, shares outstanding | 7,289,288 | 7,168,359 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Revenue: | ||||
Service | $3,030 | $2,616 | $8,981 | $8,273 |
Subscription | 1,424 | 327 | 4,241 | 922 |
License | 2,971 | 5,960 | 14,916 | 25,866 |
Total revenue | 7,425 | 8,903 | 28,138 | 35,061 |
Cost of revenue: | ||||
Service | 1,232 | 1,362 | 4,067 | 4,544 |
Subscription | 625 | 46 | 1,848 | 138 |
License | 98 | 59 | 294 | 178 |
Total cost of revenue | 1,955 | 1,467 | 6,209 | 4,860 |
Gross profit | 5,470 | 7,436 | 21,929 | 30,201 |
Operating expenses: | ||||
Sales and marketing | 1,482 | 937 | 4,322 | 2,914 |
Research, development and engineering | 3,277 | 2,320 | 8,824 | 6,464 |
General and administrative | 2,456 | 2,282 | 6,990 | 7,231 |
Intellectual property | 278 | 309 | 816 | 919 |
Total operating expenses | 7,493 | 5,848 | 20,952 | 17,528 |
Operating income (loss) | -2,023 | 1,588 | 977 | 12,673 |
Net loss from joint ventures | -1,107 | |||
Other income, net | 33 | 48 | 81 | 139 |
Income (loss) before income taxes | -1,990 | 1,636 | 1,058 | 11,705 |
(Provision) benefit for income taxes | 1,195 | -633 | -280 | -4,487 |
Net income (loss) | ($795) | $1,003 | $778 | $7,218 |
Earnings (loss) per common share: | ||||
Earnings (loss) per common share-basic | ($0.12) | $0.14 | $0.09 | $1.02 |
Earnings (loss) per common share-diluted | ($0.12) | $0.14 | $0.09 | $0.98 |
Weighted average common shares outstanding-basic | 6,860 | 6,761 | 6,850 | 6,745 |
Weighted average common shares outstanding-diluted | 6,860 | 6,984 | 7,080 | 6,997 |
Cash dividends declared per common share | $0.11 | $0.11 | $0.33 | $0.22 |
Consolidated_Statements_of_Sha
Consolidated Statements of Shareholders' Equity (USD $) | Total | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] |
In Thousands, except Share data | |||||
BALANCE at Dec. 31, 2011 | $41,717 | $50 | $7 | $34,511 | $7,149 |
BALANCE, shares at Dec. 31, 2011 | 10,000 | 7,008,031 | |||
Exercise of stock options | 1,448 | 1,448 | |||
Exercise of stock options, shares | 150,250 | ||||
Issuance of restricted common stock, shares | 146,020 | ||||
Forfeiture of restricted common stock, shares | -9,575 | ||||
Purchase and retirement of common stock | -3,899 | -3,899 | |||
Purchase and retirement of common stock, shares | 158,103 | -158,103 | |||
Stock-based compensation | 4,279 | 4,279 | |||
Tax benefit from stock-based awards | 1,801 | 1,801 | |||
Net income | 7,218 | 7,218 | |||
Cash dividends declared | -1,561 | -1,561 | |||
BALANCE at Sep. 30, 2012 | 51,003 | 50 | 7 | 38,140 | 12,806 |
BALANCE, shares at Sep. 30, 2012 | 10,000 | 7,136,623 | |||
BALANCE at Dec. 31, 2012 | 53,003 | 50 | 7 | 39,869 | 13,077 |
BALANCE, shares at Dec. 31, 2012 | 10,000 | 7,168,359 | |||
Exercise of stock options | 176 | ||||
Exercise of stock options, shares | 18,300 | 18,300 | |||
Issuance of restricted common stock, shares | 217,090 | ||||
Forfeiture of restricted common stock, shares | -67,360 | ||||
Purchase and retirement of common stock | -854 | -854 | |||
Purchase and retirement of common stock, shares | 47,101 | -47,101 | |||
Stock-based compensation | 3,305 | 3,305 | |||
Net income | 778 | 778 | |||
Cash dividends declared | -2,400 | -2,400 | |||
BALANCE at Sep. 30, 2013 | $53,832 | $50 | $7 | $42,320 | $11,455 |
BALANCE, shares at Sep. 30, 2013 | 10,000 | 7,289,288 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash flows from operating activities: | ||
Net income | $778 | $7,218 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization of property and equipment | 513 | 444 |
Amortization and write-off of intangibles | 931 | 213 |
Gain on reversal of contingent merger consideration | -190 | |
Stock-based compensation | 3,219 | 4,152 |
Net loss from joint ventures | 1,107 | |
Deferred income taxes | 354 | -77 |
Tax benefit from stock-based awards | 2,385 | |
Excess tax benefit from stock-based awards | -1,801 | |
Increase in allowance for doubtful accounts | 22 | |
Changes in operating assets and liabilities: | ||
Trade accounts receivable, net | -923 | -128 |
Other current assets | -577 | -45 |
Other assets | -99 | 167 |
Accounts payable and other accrued liabilities | 286 | -119 |
Income taxes payable | 88 | 875 |
Deferred revenue | 263 | -512 |
Net cash provided by operating activities | 4,665 | 13,879 |
Cash flows from investing activities: | ||
Purchase of property and equipment | -1,532 | -376 |
Capitalized patent costs and purchased intellectual property | -824 | -898 |
Investments in joint ventures, net | -692 | |
Sale or maturity of marketable securities | 47,344 | 117,680 |
Purchase of marketable securities | -48,186 | -122,132 |
Net cash used in investing activities | -3,198 | -6,418 |
Cash flows from financing activities: | ||
Issuance of common stock | 1,448 | |
Purchase of common stock | -854 | -3,899 |
Cash dividends paid | -2,400 | -1,561 |
Excess tax benefit from stock-based awards | 1,801 | |
Net cash used in financing activities | -3,254 | -2,211 |
Net increase (decrease) in cash and cash equivalents | -1,787 | 5,250 |
Cash and cash equivalents at beginning of period | 6,866 | 3,419 |
Cash and cash equivalents at end of period | 5,079 | 8,669 |
Supplemental disclosure of cash flow information: | ||
Cash paid for income taxes | 46 | 1,260 |
Supplemental schedule of non-cash investing activities: | ||
Stock-based compensation capitalized to patent costs | 86 | 77 |
Supplemental schedule of non-cash financing activities: | ||
Exercise of stock options | $176 | $1,448 |
Description_of_Business_and_Si
Description of Business and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | |
Description of Business and Significant Accounting Policies | 1. Description of Business and Significant Accounting Policies |
Description of Business | |
Digimarc Corporation (“Digimarc” or the “Company”), an Oregon corporation, enables governments and enterprises around the world to give digital identities to media and objects that computers can sense and recognize and to which they can react. The Company’s inventions provide the means to infuse persistent digital information, perceptible only to computers and digital devices, into all forms of media content. The unique digital identifier placed in media generally persists with it regardless of the distribution path and whether it is copied, manipulated or converted to a different format, and does not affect the quality of the content or the enjoyment or other traditional uses of it. The Company’s technology permits computers and digital devices to quickly and reliably identify relevant data from vast amounts of media content. | |
Interim Consolidated Financial Statements | |
The Company has adhered to the accounting policies set forth in its Annual Report on Form 10-K for the year ended December 31, 2012 in preparing the accompanying interim consolidated financial statements. | |
The accompanying interim consolidated financial statements have been prepared from the Company’s records without audit and, in management’s opinion, include all adjustments (consisting of only normal recurring adjustments) necessary to fairly reflect the financial condition and the results of operations for the periods presented. Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (the “U.S.”) have been condensed or omitted in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). | |
These interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012, which was filed with the SEC on February 22, 2013. The results of operations for the interim periods presented in these consolidated financial statements are not necessarily indicative of the results for the full year. | |
Reclassifications | |
Certain prior period amounts in the accompanying interim consolidated financial statements and notes thereto have been reclassified to conform to current period presentation. These reclassifications had no material effect on the results of operations or financial position for any period presented. The Company has historically combined license and subscription revenue on the consolidated statement of operations, but given the increase in subscription revenue in the current year, the Company is now presenting license revenue and subscription revenue separately. | |
Goodwill | |
The Company tests goodwill for impairment annually in June and whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Such reviews assess the fair value of the Company’s assets compared to the carrying values. | |
The Company operates as one reporting unit. The Company estimated the fair value of its single reporting unit using a market approach. The market approach estimates fair value in part on market capitalization plus an estimated control premium. | |
In connection with the Company’s annual impairment test of goodwill as of June 30, 2013, it was concluded that there was no impairment as the estimated fair value of the Company’s reporting unit substantially exceeded the carrying value. | |
Recent Accounting Pronouncements | |
In July 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2013-11, “Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Credit Carryforward Exists.” ASU No 2013-11 provides explicit guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carry forward exists. The amendments in this update are effective for fiscal years and interim reporting periods beginning after December 15, 2013. Early adoption is permitted. The amendments should be applied prospectively for all unrecognized tax benefits that exist as of the effective date. Retrospective application is permitted. The Company does not expect the adoption of this standard to have a material impact on the Company’s financial condition or results of operations. |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||
Fair Value of Financial Instruments | 2. Fair Value of Financial Instruments | ||||||||||||||||||||
Accounting Standards Codification (“ASC”) 820 “Fair Value Measurements and Disclosures” (“ASC 820”) defines fair value, establishes a framework for measuring fair value under generally accepted accounting principles in the U.S., and enhances disclosures about fair value measurements. ASC 820 describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value, which are the following: | |||||||||||||||||||||
• | Level 1—Pricing inputs are quoted prices available in active markets for identical assets as of the reporting date. | ||||||||||||||||||||
• | Level 2—Pricing inputs are quoted for similar assets, or inputs that are observable, either directly or indirectly, for substantially the full term through corroboration with observable market data. Level 2 includes assets valued at quoted prices adjusted for legal or contractual restrictions specific to these investments. | ||||||||||||||||||||
• | Level 3—Pricing inputs are unobservable for the assets; that is, the inputs reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset. | ||||||||||||||||||||
The estimated fair values of the Company’s financial instruments, which include cash and cash equivalents, accounts receivable, accounts payable and other accrued liabilities approximate their carrying values due to the short-term nature of these instruments. The Company records marketable securities at amortized cost, which approximates fair value. | |||||||||||||||||||||
The Company’s fair value hierarchy for its cash equivalents and marketable securities as of September 30, 2013 and December 31, 2012, respectively, was as follows: | |||||||||||||||||||||
September 30, 2013 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
Money market securities | $ | 4,352 | $ | — | $ | — | $ | 4,352 | |||||||||||||
U.S. federal agency notes | — | 332 | — | 332 | |||||||||||||||||
Pre-refunded municipal bonds (1) | — | 30,106 | — | 30,106 | |||||||||||||||||
Other municipal bonds | 154 | 154 | |||||||||||||||||||
Corporate notes | — | 2,440 | — | 2,440 | |||||||||||||||||
Total | $ | 4,352 | $ | 33,032 | $ | — | $ | 37,384 | |||||||||||||
December 31, 2012 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
Money market securities | $ | 901 | $ | — | $ | — | $ | 901 | |||||||||||||
Certificates of deposits | — | 491 | — | 491 | |||||||||||||||||
U.S. treasuries | — | 289 | — | 289 | |||||||||||||||||
U.S. federal agency notes | — | 1,637 | — | 1,637 | |||||||||||||||||
Pre-refunded municipal bonds (1) | — | 21,878 | — | 21,878 | |||||||||||||||||
Other municipal bonds | 158 | 158 | |||||||||||||||||||
Corporate notes | — | 10,100 | — | 10,100 | |||||||||||||||||
Commercial paper | — | 2,614 | — | 2,614 | |||||||||||||||||
Total | $ | 901 | $ | 37,167 | $ | — | $ | 38,068 | |||||||||||||
-1 | Pre-refunded municipal bonds are collateralized by U.S. treasuries. | ||||||||||||||||||||
The fair value maturities of the Company’s cash equivalents and marketable securities as of September 30, 2013 were as follows: | |||||||||||||||||||||
Maturities by Period | |||||||||||||||||||||
Total | Less than | 1-5 years | 5-10 years | More than | |||||||||||||||||
1 year | 10 years | ||||||||||||||||||||
Cash equivalents and marketable securities | $ | 37,384 | $ | 32,287 | $ | 5,097 | $ | — | $ | — | |||||||||||
The Company considers all highly liquid marketable securities with original maturities of 90 days or less at the date of acquisition to be cash equivalents. Cash equivalents include mostly money market funds and pre-refunded municipal bonds totaling $4,352 and $5,878 at September 30, 2013 and December 31, 2012, respectively. Cash equivalents are carried at cost or amortized cost, which approximates fair value, due to their short maturities. |
Acquisition_of_Attributor_Corp
Acquisition of Attributor Corporation ("Attributor") | 9 Months Ended |
Sep. 30, 2013 | |
Business Combinations [Abstract] | |
Acquisition of Attributor Corporation ("Attributor") | 3. Acquisition of Attributor Corporation (“Attributor”) |
The Company accounted for the acquisition of Attributor in December 2012 using the acquisition method of accounting. Under the acquisition method of accounting, the total purchase price was allocated to the tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values. The purchase price was allocated using the information available, pending the completion of the Company’s review of the acquired tax assets and liabilities. This review was completed with the filing of the Attributor 2012 tax return in the third quarter and resulted in no changes to the purchase price allocation as disclosed in Note 4 of the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012. | |
The Company recorded a $190 liability in the preliminary purchase price allocation reflecting the estimated fair value of the contingent merger consideration on the acquisition date, which was presented in deferred rent and other long-term liabilities at December 31, 2012. At March 31, 2013, the Company determined that the estimated fair value of the contingent merger consideration was $0 based on the Company’s most recent projections and therefore reversed the liability. As of September 30, 2013, the Company continued to believe the estimated fair value of the contingent merger consideration was $0. The reversal of the $190 liability is reflected as a reduction in general and administrative expense within the consolidated statements of operations for the nine-month period ended September 30, 2013. |
Revenue_Recognition
Revenue Recognition | 9 Months Ended | |||
Sep. 30, 2013 | ||||
Text Block [Abstract] | ||||
Revenue Recognition | 4. Revenue Recognition | |||
The Company derives its revenue primarily from development services, subscriptions and licensing of its patent portfolio: | ||||
• | Service revenue consists primarily of software development and consulting services. The majority of service revenue arrangements are structured as time and materials consulting agreements and fixed price consulting agreements. | |||
• | Subscription revenue includes subscriptions for products and services, is generally recurring, paid in advance and recognized over the term of the subscription. | |||
• | License revenue, including royalty revenue, originates primarily from licensing the Company’s technology and patents where the Company receives royalties as its income stream. | |||
Revenue is recognized in accordance with ASC 605 “Revenue Recognition” and ASC 985 “Software” when the following four criteria are met: | ||||
(i) | persuasive evidence of an arrangement exists, | |||
(ii) | delivery has occurred, | |||
(iii) | the fee is fixed or determinable, and | |||
(iv) | collection is reasonably assured. | |||
Some customer arrangements encompass multiple deliverables, such as patent license, professional services, software subscriptions, and maintenance fees. For arrangements that include multiple deliverables, the Company identifies separate units of accounting at inception based on the consensus reached under ASC 605-25 “Multiple-Element Arrangements,” which provides that revenue arrangements with multiple deliverables should be divided into separate units of accounting if certain criteria are met. The consideration for the arrangement is allocated to the separate units of accounting using the relative selling price method. | ||||
The relative selling price method allocates the consideration based on the Company’s specific assumptions rather than assumptions of a marketplace participant, and any discount in the arrangement proportionally to each deliverable on the basis of each deliverable’s selling price. | ||||
Applicable revenue recognition criteria is considered separately for each separate unit of accounting as follows: | ||||
• | Revenue from professional service arrangements is generally determined based on time and materials. Revenue for professional services is recognized as the services are performed. Billing for services rendered generally occurs within one month after the services are provided. | |||
• | Subscription revenue, which includes subscriptions for products and services, is generally paid in advance and recognized over the term of the subscription, which is generally one month to twenty-four months. | |||
• | License revenue is recognized when amounts owed to the Company have been earned, are fixed or determinable (within the Company’s normal 30 to 60 day payment terms), and collection is reasonably assured. If the payment terms extend beyond the normal 30 to 60 days, the fee may not be considered to be fixed or determinable, and the revenue would then be recognized when installments are due. | |||
• | The Company records revenue from certain license agreements upon cash receipt as a result of collectability not being reasonably assured. | |||
• | The Company’s standard payment terms for license arrangements are 30 to 60 days. Extended payment terms increase the likelihood the Company will grant a customer a concession, such as reduced license payments or additional rights, rather than hold firm on minimum commitments in an agreement to the point of losing a potential advocate and licensee of patented technology in the marketplace. Extended payment terms on patent license arrangements are not considered to be fixed or determinable if payments are due beyond the Company’s standard payment terms, primarily because of the risk of substantial modification present in the Company’s patent licensing business. As such, revenue on license arrangements with extended payment terms are recognized as fees become fixed or determinable. | |||
Deferred revenue consists of billings in advance for professional services, subscriptions and licenses for which revenue has not been earned. |
Segment_Information
Segment Information | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||
Segment Information | 5. Segment Information | ||||||||||||||||
Geographic Information | |||||||||||||||||
The Company derives its revenue from a single reporting segment: media management solutions. Revenue is generated in this segment through licensing of intellectual property, subscriptions of various products and services, and the delivery of services pursuant to contracts with various customers. The Company markets its products in the U.S. and in non-U.S. countries through its sales and licensing personnel. | |||||||||||||||||
Revenue, based upon the “bill-to” location, by geographic area is as follows: | |||||||||||||||||
Three | Three | Nine | Nine | ||||||||||||||
Months | Months | Months | Months | ||||||||||||||
Ended | Ended | Ended | Ended | ||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Domestic | $ | 3,536 | $ | 5,830 | $ | 15,902 | $ | 24,923 | |||||||||
International(1) | 3,889 | 3,073 | 12,236 | 10,138 | |||||||||||||
Total | $ | 7,425 | $ | 8,903 | $ | 28,138 | $ | 35,061 | |||||||||
-1 | Revenue from the Central Banks, comprised of a consortium of central banks around the world, is classified as international revenue. Reporting revenue by country for this customer is not practicable. | ||||||||||||||||
Major Customers | |||||||||||||||||
Customers who accounted for more than 10% of the Company’s revenue are as follows: | |||||||||||||||||
Three | Three | Nine | Nine | ||||||||||||||
Months | Months | Months | Months | ||||||||||||||
Ended | Ended | Ended | Ended | ||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Central Banks | 37 | % | 27 | % | 31 | % | 22 | % | |||||||||
The Nielsen Company (“Nielsen”) | 13 | % | 12 | % | 11 | % | * | ||||||||||
Verance Corporation (“Verance”) | 12 | % | 11 | % | * | 31 | % | ||||||||||
Intellectual Ventures (“IV”) | * | 40 | % | 27 | % | 29 | % | ||||||||||
* | Less than 10% | ||||||||||||||||
On May 15, 2013, IV made the last quarterly payment of the license issuance fee related to the patent license agreement dated October 5, 2010. No profit sharing under the patent license agreement has been earned to date. | |||||||||||||||||
On January 30, 2012, the Company and Verance, a longtime cash basis revenue customer, settled all disputes regarding breach of contract and patent infringement claims. In connection with the resolution of these matters, Verance paid the Company $8,852 for amounts due to Digimarc through December 31, 2011 and all claims between the parties were dismissed. Revenue from this payment was recorded in the quarter ended March 31, 2012. |
StockBased_Compensation
Stock-Based Compensation | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||||||||||||||||||||||||
Stock-Based Compensation | 6. Stock-Based Compensation | ||||||||||||||||||||||||
Stock-based compensation includes expense charges for all stock-based awards to employees and directors. These awards include option grants, restricted stock awards and preferred stock. | |||||||||||||||||||||||||
Stock-based compensation expense related to internal legal labor is capitalized to patent costs based on direct labor hours charged to capitalized patent costs. | |||||||||||||||||||||||||
Determining Fair Value | |||||||||||||||||||||||||
Preferred Stock | |||||||||||||||||||||||||
The Board of Directors authorized 10,000 shares of Series A Redeemable Nonvoting Preferred stock (“Series A Preferred”) that were issued to certain executive officers at the time of formation. The Series A Preferred has no voting rights, except as required by law, and may be redeemed at the option of the Company’s Board of Directors at any time on or after June 18, 2013. | |||||||||||||||||||||||||
The Series A Preferred is redeemable based on the stated fair value of $5.00 per share. The Series A Preferred has no dividend rights and no rights to the undistributed earnings of the Company. | |||||||||||||||||||||||||
Stock Options | |||||||||||||||||||||||||
Valuation and Amortization Method. The Company estimates the fair value of stock options granted using the Black-Scholes option pricing model as of the date of grant (measurement date). The Company amortizes the fair value of all awards on a straight-line basis over the requisite service periods, which are generally the vesting periods. | |||||||||||||||||||||||||
Expected Life. The expected life of awards granted represents the period of time that they are expected to be outstanding. The Company determines the expected life based on historical experience with similar awards, giving consideration to the contractual terms, vesting schedules and pre-vesting and post-vesting forfeitures. Stock options granted generally vest over three to four years for employee grants and one to two years for director grants, and have contractual terms of ten years. | |||||||||||||||||||||||||
Expected Volatility. The Company estimates the volatility of its common stock at the date of grant based on the historical volatility of its common stock based on historical prices over the most recent period commensurate with the expected life of the award. | |||||||||||||||||||||||||
Risk-Free Interest Rate. The Company determines the risk-free interest rate using current U.S. treasury yields for bonds with a maturity commensurate with the expected life of the award. | |||||||||||||||||||||||||
Expected Dividend Yield. The expected dividend yield is derived using a formula which uses the Company’s expected annual dividend rate over the expected term divided by the fair value of the Company’s common stock at the grant date. | |||||||||||||||||||||||||
There were no stock options granted during the three- or nine-month periods ended September 30, 2013 and 2012. | |||||||||||||||||||||||||
The Company records stock-based compensation expense for stock option awards only for those awards that are expected to vest. | |||||||||||||||||||||||||
Restricted Stock | |||||||||||||||||||||||||
The Compensation Committee of the Board of Directors has awarded restricted stock shares under the Company’s 2008 Stock Incentive Plan to certain employees and directors. The shares subject to the restricted stock awards generally vest over three to four years for employees and one year for directors. Specific terms of the restricted stock awards are governed by Restricted Stock Agreements between the Company and the award recipients. Restricted stock awards are treated as outstanding when granted. | |||||||||||||||||||||||||
The fair value of restricted stock awarded is based on the fair market value of the Company’s common stock on the date of the grant (measurement date), and is recognized over the vesting period using the straight-line method. | |||||||||||||||||||||||||
The Company records stock-based compensation expense for restricted stock awards only for those awards that are expected to vest. | |||||||||||||||||||||||||
Stock-based Compensation | |||||||||||||||||||||||||
Three | Three | Nine | Nine | ||||||||||||||||||||||
Months | Months | Months | Months | ||||||||||||||||||||||
Ended | Ended | Ended | Ended | ||||||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
Stock-based compensation: | |||||||||||||||||||||||||
Cost of revenue | $ | 78 | $ | 141 | $ | 374 | $ | 479 | |||||||||||||||||
Sales and marketing | 103 | 98 | 298 | 331 | |||||||||||||||||||||
Research, development and engineering | 278 | 242 | 766 | 639 | |||||||||||||||||||||
General and administrative | 529 | 844 | 1,595 | 2,508 | |||||||||||||||||||||
Intellectual property | 62 | 70 | 186 | 195 | |||||||||||||||||||||
Stock-based compensation expense | 1,050 | 1,395 | 3,219 | 4,152 | |||||||||||||||||||||
Capitalized to patent costs | 22 | 27 | 86 | 77 | |||||||||||||||||||||
Total stock-based compensation | $ | 1,072 | $ | 1,422 | $ | 3,305 | $ | 4,229 | |||||||||||||||||
The following table sets forth total unrecognized compensation cost related to non-vested stock-based awards granted under all equity compensation plans, including preferred stock, stock options and restricted stock: | |||||||||||||||||||||||||
As of | As of | ||||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Unrecognized compensation costs | $ | 8,409 | $ | 8,333 | |||||||||||||||||||||
Total unrecognized compensation costs will be adjusted for any future changes in estimated forfeitures. | |||||||||||||||||||||||||
The Company expects to recognize the unrecognized compensation costs as of September 30, 2013 for stock options and restricted stock over a weighted average period through September 2017 as follows: | |||||||||||||||||||||||||
Stock | Restricted | ||||||||||||||||||||||||
Options | Stock | ||||||||||||||||||||||||
Weighted average period | 0.82 years | 1.23 years | |||||||||||||||||||||||
Stock Option Activity | |||||||||||||||||||||||||
As of September 30, 2013, under all of the Company’s stock-based compensation plans, equity awards to purchase an additional 696,786 shares were authorized for future grants under the plans. The Company issues new shares upon option exercises. | |||||||||||||||||||||||||
The following table reconciles the outstanding balance of stock options: | |||||||||||||||||||||||||
Three-months ended September 30, 2013: | Options | Weighted | Weighted | Aggregate | |||||||||||||||||||||
Average | Average | Intrinsic | |||||||||||||||||||||||
Exercise | Grant Date | Value | |||||||||||||||||||||||
Price | Fair Value | ||||||||||||||||||||||||
Outstanding at June 30, 2013 | 842,688 | $ | 15.24 | $ | 7.9 | ||||||||||||||||||||
Options granted | — | — | — | ||||||||||||||||||||||
Options exercised | (5,000 | ) | $ | 9.64 | $ | 6.3 | |||||||||||||||||||
Options canceled or expired | — | — | — | ||||||||||||||||||||||
Outstanding at September 30, 2013 | 837,688 | $ | 15.28 | $ | 7.91 | $ | 5,766 | ||||||||||||||||||
Nine-months ended September 30, 2013: | Options | Weighted | Weighted | Aggregate | |||||||||||||||||||||
Average | Average | Intrinsic | |||||||||||||||||||||||
Exercise | Grant Date | Value | |||||||||||||||||||||||
Price | Fair Value | ||||||||||||||||||||||||
Outstanding at December 31, 2012 | 855,988 | $ | 15.16 | $ | 7.88 | ||||||||||||||||||||
Options granted | — | — | — | ||||||||||||||||||||||
Options exercised | (18,300 | ) | $ | 9.64 | $ | 6.3 | |||||||||||||||||||
Options canceled or expired | — | — | — | ||||||||||||||||||||||
Outstanding at September 30, 2013 | 837,688 | $ | 15.28 | $ | 7.91 | $ | 5,766 | ||||||||||||||||||
Exercisable at September 30, 2013 | 742,135 | $ | 13.86 | $ | 5,718 | ||||||||||||||||||||
Unvested at September 30, 2013 | 95,553 | $ | 26.26 | $ | 48 | ||||||||||||||||||||
The aggregate intrinsic value is based on the closing price of $20.20 per share of Digimarc common stock on September 30, 2013, which would have been received by the optionees had all of the options with exercise prices less than $20.20 per share been exercised on that date. The following table summarizes information about stock options outstanding at September 30, 2013: | |||||||||||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||||||||||
Range of Exercise Prices | Number | Remaining | Weighted | Number | Remaining | Weighted | |||||||||||||||||||
Outstanding | Contractual | Average | Exercisable | Contractual | Average | ||||||||||||||||||||
Life (Years) | Exercise | Life (Years) | Exercise | ||||||||||||||||||||||
Price | Price | ||||||||||||||||||||||||
$9.64 - $9.91 | 489,772 | 5.11 | $ | 9.66 | 489,772 | 5.11 | $ | 9.66 | |||||||||||||||||
$14.99 - $18.01 | 132,916 | 6.33 | $ | 15.67 | 123,751 | 6.34 | $ | 15.72 | |||||||||||||||||
$24.35 - 30.01 | 215,000 | 7.82 | $ | 27.84 | 128,612 | 7.79 | $ | 28.1 | |||||||||||||||||
$9.64 - $30.01 | 837,688 | 6 | $ | 15.28 | 742,135 | 5.78 | $ | 13.86 | |||||||||||||||||
Restricted Stock Activity | |||||||||||||||||||||||||
The following table reconciles the unvested balance of restricted stock: | |||||||||||||||||||||||||
Three-months ended September 30, 2013: | Number of | Weighted | |||||||||||||||||||||||
Shares | Average | ||||||||||||||||||||||||
Grant Date | |||||||||||||||||||||||||
Fair Value | |||||||||||||||||||||||||
Unvested balance, June 30, 2013 | 407,423 | $ | 22.11 | ||||||||||||||||||||||
Granted | 32,700 | $ | 20.38 | ||||||||||||||||||||||
Vested | (12,040 | ) | $ | 20.41 | |||||||||||||||||||||
Canceled | (5,505 | ) | $ | 22.22 | |||||||||||||||||||||
Unvested balance, September 30, 2013 | 422,578 | $ | 23.19 | ||||||||||||||||||||||
Nine-months ended September 30, 2013: | Number of | Weighted | |||||||||||||||||||||||
Shares | Average | ||||||||||||||||||||||||
Grant Date | |||||||||||||||||||||||||
Fair Value | |||||||||||||||||||||||||
Unvested balance, December 31, 2012 | 369,083 | $ | 21.72 | ||||||||||||||||||||||
Granted | 217,090 | $ | 21.64 | ||||||||||||||||||||||
Vested | (96,235 | ) | $ | 16.6 | |||||||||||||||||||||
Canceled | (67,360 | ) | $ | 19.55 | |||||||||||||||||||||
Unvested balance, September 30, 2013 | 422,578 | $ | 23.19 | ||||||||||||||||||||||
Earnings_Loss_Per_Common_Share
Earnings (Loss) Per Common Share | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||
Earnings (Loss) Per Common Share | 7. Earnings (Loss) Per Common Share | ||||||||||||||||
The Company calculates basic and diluted earnings per common share in accordance with ASC 260 “Earnings Per Share,” using the two-class method because the Company’s unvested restricted stock is a participating security since these awards contain non-forfeitable rights to receive dividends. Under the two-class method, earnings are allocated to each class of common stock and participating security as if all of the net earnings for the period had been distributed. | |||||||||||||||||
Basic earnings per common share excludes dilution and is calculated by dividing earnings to common shares by the weighted-average number of common shares outstanding for the period. Diluted earnings per common share is calculated by dividing earnings to common shares by the weighted-average number of common shares, as adjusted for the potential dilutive of stock options outstanding as of the balance sheet date. The following table reconciles earnings (loss) per common share for the three- and nine-month periods ended September 30, 2013 and 2012: | |||||||||||||||||
Three Months | Three Months | Nine Months | Nine Months | ||||||||||||||
Ended | Ended | Ended | Ended | ||||||||||||||
September 30, 2013 | September 30, 2012 | September 30, 2013 | September 30, 2012 | ||||||||||||||
Basic Earnings (Loss) per Common Share: | |||||||||||||||||
Numerator: | |||||||||||||||||
Net income (loss) | $ | (795 | ) | $ | 1,003 | $ | 778 | $ | 7,218 | ||||||||
Distributed earnings to common shares | 754 | 741 | 2,260 | 1,471 | |||||||||||||
Distributed earnings to participating securities | 46 | 41 | 142 | 90 | |||||||||||||
Total distributed earnings | 800 | 782 | 2,402 | 1,561 | |||||||||||||
Undistributed earnings (loss) allocable to common shares | (1,595 | ) | 210 | (1,624 | ) | 5,378 | |||||||||||
Undistributed earnings (loss) allocable to participating securities | — | 11 | — | 279 | |||||||||||||
Total undistributed earnings (loss) | (1,595 | ) | 221 | (1,624 | ) | 5,657 | |||||||||||
Earnings (loss) to common shares—basic | $ | (841 | ) | $ | 951 | $ | 636 | $ | 6,849 | ||||||||
Denominator: | |||||||||||||||||
Weighted average common shares outstanding—basic (in thousands) | 6,860 | 6,761 | 6,850 | 6,745 | |||||||||||||
Basic earnings (loss) per common share | $ | (0.12 | ) | $ | 0.14 | $ | 0.09 | $ | 1.02 | ||||||||
Three Months | Three Months | Nine Months | Nine Months | ||||||||||||||
Ended | Ended | Ended | Ended | ||||||||||||||
September 30, 2013 | September 30, 2012 | September 30, 2013 | September 30, 2012 | ||||||||||||||
Diluted Earnings (Loss) per Common Share: | |||||||||||||||||
Numerator: | |||||||||||||||||
Earnings (loss) to common shares—basic | $ | (841 | ) | $ | 951 | $ | 636 | $ | 6,849 | ||||||||
Undistributed earnings allocated to participating securities | — | 11 | — | 279 | |||||||||||||
Undistributed earnings reallocated to participating securities | — | (10 | ) | — | (269 | ) | |||||||||||
Earnings (loss) to common shares—diluted | $ | (841 | ) | $ | 952 | $ | 636 | $ | 6,859 | ||||||||
Denominator: | |||||||||||||||||
Weighted average common shares outstanding—basic (in thousands) | 6,860 | 6,761 | 6,850 | 6,745 | |||||||||||||
Dilutive effect of stock options | — | 223 | 230 | 252 | |||||||||||||
Weighted average common shares outstanding—dilutive (in thousands) | 6,860 | 6,984 | 7,080 | 6,997 | |||||||||||||
Diluted earnings (loss) per common share | $ | (0.12 | ) | $ | 0.14 | $ | 0.09 | $ | 0.98 | ||||||||
Common stock equivalents related to stock options of 228,158 are antidilutive in a net loss period and, therefore, are not included in the diluted per common share calculation for the three-month period ended September 30, 2013. | |||||||||||||||||
There were 215,000 common stock equivalents related to stock options that were anti-dilutive and excluded from diluted earnings per common share calculation for the three- and nine-month period ended September 30, 2013 and 2012 because their exercise prices were higher than the average market price of the underlying common stock for the period. |
Trade_Accounts_Receivable_and_
Trade Accounts Receivable and Allowance for Doubtful Accounts | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Receivables [Abstract] | |||||||||
Trade Accounts Receivable and Allowance for Doubtful Accounts | 8. Trade Accounts Receivable and Allowance for Doubtful Accounts | ||||||||
Trade Accounts Receivable | |||||||||
Trade accounts receivable are recorded at the invoiced amount. | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Trade accounts receivable | $ | 5,139 | $ | 4,216 | |||||
Allowance for doubtful accounts | (22 | ) | — | ||||||
Trade accounts receivable, net | $ | 5,117 | $ | 4,216 | |||||
Unpaid deferred revenue included in trade accounts receivable | $ | 1,668 | $ | 1,589 | |||||
Allowance for doubtful accounts | |||||||||
The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing trade accounts receivable. The Company determines the allowance based on historical write-off experience and current information. The Company reviews its allowance for doubtful accounts monthly. Account balances are charged against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. | |||||||||
Unpaid deferred revenue | |||||||||
The unpaid deferred revenue that is included in trade accounts receivable is billed in accordance with the provisions of the contracts with the Company’s customers. Unpaid deferred revenue from the Company’s cash-basis customers is not included in either trade accounts receivable or deferred revenue accounts. | |||||||||
Major customers | |||||||||
Customers who accounted for more than 10% of trade accounts receivable, net are as follows: | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Central Banks | 31 | % | 30 | % | |||||
Nielsen | 20 | % | 24 | % | |||||
Civolution | 12 | % | 14 | % | |||||
IV | 12 | % | * | ||||||
* | Less than 10% |
Property_and_Equipment
Property and Equipment | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Property Plant And Equipment [Abstract] | |||||||||
Property and Equipment | 9. Property and Equipment | ||||||||
Property and equipment are stated at cost less accumulated depreciation. Repairs and maintenance are charged to expense when incurred. | |||||||||
Depreciation on property and equipment is calculated using the straight-line method over the estimated useful lives of the assets, generally two to twelve years. Leasehold improvements are amortized using the straight-line method over the shorter of the estimated useful life or the lease term. | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Office furniture and fixtures | $ | 586 | $ | 420 | |||||
Equipment | 3,155 | 1,886 | |||||||
Leasehold improvements | 1,180 | 1,083 | |||||||
Gross property and equipment | 4,921 | 3,389 | |||||||
Less accumulated depreciation and amortization | (2,449 | ) | (1,936 | ) | |||||
Property and equipment, net | $ | 2,472 | $ | 1,453 | |||||
Intangibles
Intangibles | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | |||||||||
Intangibles | 10. Intangibles | ||||||||
Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. | |||||||||
Amortization of capitalized patent costs associated with the application and award of patents in the U.S. and various other countries are capitalized and amortized on a straight-line basis over the term of the patents as determined at the award date, which varies depending on the pendency period of the application, generally approximating seventeen years. | |||||||||
Amortization of intangible assets acquired is calculated using the straight-line method over the estimated useful lives of the assets. | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Capitalized patent costs | $ | 4,858 | $ | 3,973 | |||||
Intangible assets acquired: | |||||||||
Purchased patents and intellectual property | 250 | 250 | |||||||
Existing technology | 1,560 | 1,560 | |||||||
Customer relationships | 290 | 290 | |||||||
Backlog | 760 | 760 | |||||||
Tradenames | 290 | 290 | |||||||
Non-solicitation agreements | 120 | 120 | |||||||
Gross intangible assets | 8,128 | 7,243 | |||||||
Accumulated amortization | (1,428 | ) | (522 | ) | |||||
Intangibles, net | $ | 6,700 | $ | 6,721 | |||||
Joint_Venture_and_Related_Part
Joint Venture and Related Party Transactions | 9 Months Ended |
Sep. 30, 2013 | |
Related Party Transactions [Abstract] | |
Joint Venture and Related Party Transactions | 11. Joint Venture and Related Party Transactions |
In March 2012, Digimarc and Nielsen decided to reduce the investments in their two joint ventures to minimal levels while assessing alternative approaches to achieving each of their goals in the emerging market opportunity of synchronized second screen television. In connection with this plan for the suspension of operations, the joint ventures accrued estimated expenses for the first quarter’s operations and severance costs for joint venture employees. Digimarc’s share of the one-time severance and suspension costs was approximately $500. Pursuant to the plan of suspending operations of the joint ventures with Nielsen, in April 2012 the Company received $104 of remaining cash from TVaura LLC (in which Digimarc holds a 51% ownership) and contributed $796 to TVaura Mobile LLC (in which Digimarc holds a 49% ownership) to fund both the first quarter’s operating expenses as well as the suspension related costs. Payment of all expenses incurred after the suspension of operations of each joint venture is unconditionally the responsibility of the majority owner, which expenses for TVaura LLC, if any, will be paid by Digimarc. As of September 30, 2013, both Digimarc and Nielsen continued to assess the market opportunities of each of the joint ventures. | |
Summarized financial information for the joint ventures has not been provided as the disclosures are immaterial to the Company’s filing given the operations of the joint ventures have been suspended and the Company’s investment in each joint venture is $0 as of September 30, 2013 and December 31, 2012. |
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2013 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 12. Income Taxes |
The provision for income taxes for the three- and nine-month periods ended September 30, 2013 reflect income taxes for federal and state jurisdictions reduced by available tax credit carry-forwards and tax credits claimed during the period. The effective tax rate for the nine-month period ended September 30, 2013 was 26%. The effective tax rate is lower than the statutory tax rate due to the impact of permanent items, primarily research and experimentation credits. The effective tax rate for the nine-month period ended September 30, 2012 was 38%. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2013 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 13. Commitments and Contingencies |
Certain of the Company’s product license and services agreements include an indemnification provision for claims from third parties relating to the Company’s intellectual property. Such indemnification provisions are accounted for in accordance with ASC 450 “Contingencies.” To date, there have been no claims made under such indemnification provisions. | |
Our subsidiary, Attributor, is a defendant in a patent infringement lawsuit brought by Blue Spike, LLC (E.D. Texas, Civil Action No: 6:12-cv-540). The case was brought against Attributor in August 2012, and was consolidated with other lawsuits brought by Blue Spike into Civil Action No. 6:12-cv-00499. | |
Blue Spike asserted infringement by Attributor of four patents. Attributor filed an answer denying that it has infringed any valid claim of the patents in suit, and asserting specified defenses, including non-infringement and invalidity. The court has consolidated the cases that Blue Spike has brought against over ninety defendants into one case. A schedule for the case has not yet been set. Blue Spike has not alleged a specific amount of monetary damages in its complaint. | |
On May 31, 2013, Digimarc triggered arbitration under the provisions of its Patent License Agreement (“Agreement”) with IV to resolve ongoing disputes relating to IV’s calculation of potential profit sharing payments under the Agreement. For more information regarding the arbitration process, refer to Section 11.9(c) of the Agreement, filed as Exhibit 10.12 to Digimarc’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 3, 2011. | |
The Company is subject from time to time to other legal proceedings and claims arising in the ordinary course of business. |
Stock_Repurchases
Stock Repurchases | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Text Block [Abstract] | |||||||||||||||||
Stock Repurchases | 14. Stock Repurchases | ||||||||||||||||
Summary of common stock shares repurchased: | |||||||||||||||||
Three Months | Three Months | Nine Months | Nine Months | ||||||||||||||
Ended | Ended | Ended | Ended | ||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Repurchase program | — | 12,663 | — | 40,210 | |||||||||||||
Exercise of stock options | 2,301 | 35,755 | 7,917 | 58,535 | |||||||||||||
Tax withholding obligations on stock options | 982 | 20,891 | 3,777 | 35,012 | |||||||||||||
Tax withholding obligations on restricted shares | 4,488 | 3,775 | 35,407 | 24,346 | |||||||||||||
Total | 7,771 | 73,084 | 47,101 | 158,103 | |||||||||||||
Value of common stock shares repurchased: | |||||||||||||||||
Three Months | Three Months | Nine Months | Nine Months | ||||||||||||||
Ended | Ended | Ended | Ended | ||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Repurchase program | $ | — | $ | 287 | $ | — | $ | 998 | |||||||||
Exercise of stock options | $ | 48 | $ | 846 | $ | 177 | $ | 1,448 | |||||||||
Tax withholding obligations on stock options | $ | 20 | $ | 495 | $ | 85 | $ | 870 | |||||||||
Tax withholding obligations on restricted shares | $ | 92 | $ | 84 | $ | 769 | $ | 583 | |||||||||
Total | $ | 160 | $ | 1,712 | $ | 1,031 | $ | 3,899 | |||||||||
In November 2011, the Board of Directors approved a stock repurchase program authorizing the purchase, at the discretion of management, of up to $5,000 of the Company’s common stock through either periodic open-market or private transactions at then-prevailing market prices through November 30, 2012. In December 2012, the program was extended through December 31, 2013. As of September 30, 2013, the Company had repurchased 43,293 shares under this program at an aggregate purchase price of $1,002. | |||||||||||||||||
As part of the Company’s 2008 Stock Incentive Plan, stock options are granted and restricted stock shares are awarded to certain employees and directors. | |||||||||||||||||
Pursuant to the terms of the stock option grants, the Company withholds (purchases) a number of whole shares of common stock having a fair market value (as determined as of the date of exercise) equal to the amount of the total value of the aggregate exercise price of the options exercised. In addition, the Company withholds (purchases) from shares issued upon exercise of the stock options a number of whole shares of common stock having a fair market value (as determined by the Company as of the date of exercise) equal to the amount of tax required to be withheld by law, in order to satisfy the tax withholding obligations of the Company in connection with the exercise of such options. | |||||||||||||||||
Pursuant to the terms of the restricted stock award agreement, the Company withholds (purchases) from fully vested shares of common stock otherwise deliverable to the employee, a number of whole shares of common stock having a fair market value (as determined as of the date of vesting) equal to the amount of tax required to be withheld by law, in order to satisfy the tax withholding obligations of the Company in connection with the vesting of such shares. |
Subsequent_Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2013 | |
Subsequent Events [Abstract] | |
Subsequent Events | 15. Subsequent Events |
In accordance with ASC 855 “Subsequent Events,” the Company has evaluated subsequent events. | |
On October 22, 2013, the Board of Directors declared a quarterly dividend of $0.11 per share, payable on November 12, 2013 to shareholders of record on November 4, 2013. |
Description_of_Business_and_Si1
Description of Business and Significant Accounting Policies (Policies) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||
Description of Business | Description of Business | ||||||||||||||||
Digimarc Corporation (“Digimarc” or the “Company”), an Oregon corporation, enables governments and enterprises around the world to give digital identities to media and objects that computers can sense and recognize and to which they can react. The Company’s inventions provide the means to infuse persistent digital information, perceptible only to computers and digital devices, into all forms of media content. The unique digital identifier placed in media generally persists with it regardless of the distribution path and whether it is copied, manipulated or converted to a different format, and does not affect the quality of the content or the enjoyment or other traditional uses of it. The Company’s technology permits computers and digital devices to quickly and reliably identify relevant data from vast amounts of media content. | |||||||||||||||||
Interim Consolidated Financial Statements | Interim Consolidated Financial Statements | ||||||||||||||||
The Company has adhered to the accounting policies set forth in its Annual Report on Form 10-K for the year ended December 31, 2012 in preparing the accompanying interim consolidated financial statements. | |||||||||||||||||
The accompanying interim consolidated financial statements have been prepared from the Company’s records without audit and, in management’s opinion, include all adjustments (consisting of only normal recurring adjustments) necessary to fairly reflect the financial condition and the results of operations for the periods presented. Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (the “U.S.”) have been condensed or omitted in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). | |||||||||||||||||
These interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012, which was filed with the SEC on February 22, 2013. The results of operations for the interim periods presented in these consolidated financial statements are not necessarily indicative of the results for the full year. | |||||||||||||||||
Reclassifications | Reclassifications | ||||||||||||||||
Certain prior period amounts in the accompanying interim consolidated financial statements and notes thereto have been reclassified to conform to current period presentation. These reclassifications had no material effect on the results of operations or financial position for any period presented. The Company has historically combined license and subscription revenue on the consolidated statement of operations, but given the increase in subscription revenue in the current year, the Company is now presenting license revenue and subscription revenue separately. | |||||||||||||||||
Goodwill | Goodwill | ||||||||||||||||
The Company tests goodwill for impairment annually in June and whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Such reviews assess the fair value of the Company’s assets compared to the carrying values. | |||||||||||||||||
The Company operates as one reporting unit. The Company estimated the fair value of its single reporting unit using a market approach. The market approach estimates fair value in part on market capitalization plus an estimated control premium. | |||||||||||||||||
In connection with the Company’s annual impairment test of goodwill as of June 30, 2013, it was concluded that there was no impairment as the estimated fair value of the Company’s reporting unit substantially exceeded the carrying value. | |||||||||||||||||
Recent Accounting Pronouncements | Recent Accounting Pronouncements | ||||||||||||||||
In July 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2013-11, “Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Credit Carryforward Exists.” ASU No 2013-11 provides explicit guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carry forward exists. The amendments in this update are effective for fiscal years and interim reporting periods beginning after December 15, 2013. Early adoption is permitted. The amendments should be applied prospectively for all unrecognized tax benefits that exist as of the effective date. Retrospective application is permitted. The Company does not expect the adoption of this standard to have a material impact on the Company’s financial condition or results of operations. | |||||||||||||||||
Fair Value Measurements and Disclosures | Accounting Standards Codification (“ASC”) 820 “Fair Value Measurements and Disclosures” (“ASC 820”) defines fair value, establishes a framework for measuring fair value under generally accepted accounting principles in the U.S., and enhances disclosures about fair value measurements. ASC 820 describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value, which are the following: | ||||||||||||||||
• | Level 1—Pricing inputs are quoted prices available in active markets for identical assets as of the reporting date. | ||||||||||||||||
• | Level 2—Pricing inputs are quoted for similar assets, or inputs that are observable, either directly or indirectly, for substantially the full term through corroboration with observable market data. Level 2 includes assets valued at quoted prices adjusted for legal or contractual restrictions specific to these investments. | ||||||||||||||||
• | Level 3—Pricing inputs are unobservable for the assets; that is, the inputs reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset. | ||||||||||||||||
The estimated fair values of the Company’s financial instruments, which include cash and cash equivalents, accounts receivable, accounts payable and other accrued liabilities approximate their carrying values due to the short-term nature of these instruments. The Company records marketable securities at amortized cost, which approximates fair value. | |||||||||||||||||
The Company’s fair value hierarchy for its cash equivalents and marketable securities as of September 30, 2013 and December 31, 2012, respectively, was as follows: | |||||||||||||||||
September 30, 2013 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Money market securities | $ | 4,352 | $ | — | $ | — | $ | 4,352 | |||||||||
U.S. federal agency notes | — | 332 | — | 332 | |||||||||||||
Pre-refunded municipal bonds (1) | — | 30,106 | — | 30,106 | |||||||||||||
Other municipal bonds | 154 | 154 | |||||||||||||||
Corporate notes | — | 2,440 | — | 2,440 | |||||||||||||
Total | $ | 4,352 | $ | 33,032 | $ | — | $ | 37,384 | |||||||||
December 31, 2012 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Money market securities | $ | 901 | $ | — | $ | — | $ | 901 | |||||||||
Certificates of deposits | — | 491 | — | 491 | |||||||||||||
U.S. treasuries | — | 289 | — | 289 | |||||||||||||
U.S. federal agency notes | — | 1,637 | — | 1,637 | |||||||||||||
Pre-refunded municipal bonds (1) | — | 21,878 | — | 21,878 | |||||||||||||
Other municipal bonds | 158 | 158 | |||||||||||||||
Corporate notes | — | 10,100 | — | 10,100 | |||||||||||||
Commercial paper | — | 2,614 | — | 2,614 | |||||||||||||
Total | $ | 901 | $ | 37,167 | $ | — | $ | 38,068 | |||||||||
-1 | Pre-refunded municipal bonds are collateralized by U.S. treasuries. | ||||||||||||||||
Revenue Recognition | Revenue is recognized in accordance with ASC 605 “Revenue Recognition” and ASC 985 “Software” when the following four criteria are met: | ||||||||||||||||
(i) | persuasive evidence of an arrangement exists, | ||||||||||||||||
(ii) | delivery has occurred, | ||||||||||||||||
(iii) | the fee is fixed or determinable, and | ||||||||||||||||
(iv) | collection is reasonably assured. | ||||||||||||||||
Some customer arrangements encompass multiple deliverables, such as patent license, professional services, software subscriptions, and maintenance fees. For arrangements that include multiple deliverables, the Company identifies separate units of accounting at inception based on the consensus reached under ASC 605-25 “Multiple-Element Arrangements,” which provides that revenue arrangements with multiple deliverables should be divided into separate units of accounting if certain criteria are met. The consideration for the arrangement is allocated to the separate units of accounting using the relative selling price method. | |||||||||||||||||
The relative selling price method allocates the consideration based on the Company’s specific assumptions rather than assumptions of a marketplace participant, and any discount in the arrangement proportionally to each deliverable on the basis of each deliverable’s selling price. | |||||||||||||||||
Applicable revenue recognition criteria is considered separately for each separate unit of accounting as follows: | |||||||||||||||||
• | Revenue from professional service arrangements is generally determined based on time and materials. Revenue for professional services is recognized as the services are performed. Billing for services rendered generally occurs within one month after the services are provided. | ||||||||||||||||
• | Subscription revenue, which includes subscriptions for products and services, is generally paid in advance and recognized over the term of the subscription, which is generally one month to twenty-four months. | ||||||||||||||||
• | License revenue is recognized when amounts owed to the Company have been earned, are fixed or determinable (within the Company’s normal 30 to 60 day payment terms), and collection is reasonably assured. If the payment terms extend beyond the normal 30 to 60 days, the fee may not be considered to be fixed or determinable, and the revenue would then be recognized when installments are due. | ||||||||||||||||
• | The Company records revenue from certain license agreements upon cash receipt as a result of collectability not being reasonably assured. | ||||||||||||||||
• | The Company’s standard payment terms for license arrangements are 30 to 60 days. Extended payment terms increase the likelihood the Company will grant a customer a concession, such as reduced license payments or additional rights, rather than hold firm on minimum commitments in an agreement to the point of losing a potential advocate and licensee of patented technology in the marketplace. Extended payment terms on patent license arrangements are not considered to be fixed or determinable if payments are due beyond the Company’s standard payment terms, primarily because of the risk of substantial modification present in the Company’s patent licensing business. As such, revenue on license arrangements with extended payment terms are recognized as fees become fixed or determinable. | ||||||||||||||||
Deferred revenue consists of billings in advance for professional services, subscriptions and licenses for which revenue has not been earned. | |||||||||||||||||
Earnings Per Share | The Company calculates basic and diluted earnings per common share in accordance with ASC 260 “Earnings Per Share,” using the two-class method because the Company’s unvested restricted stock is a participating security since these awards contain non-forfeitable rights to receive dividends. Under the two-class method, earnings are allocated to each class of common stock and participating security as if all of the net earnings for the period had been distributed. | ||||||||||||||||
Contingencies | Certain of the Company’s product license and services agreements include an indemnification provision for claims from third parties relating to the Company’s intellectual property. Such indemnification provisions are accounted for in accordance with ASC 450 “Contingencies.” To date, there have been no claims made under such indemnification provisions. | ||||||||||||||||
Subsequent Events | In accordance with ASC 855 “Subsequent Events,” the Company has evaluated subsequent events. |
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||
Summary of Fair Value Hierarchy for Financial Assets | The Company’s fair value hierarchy for its cash equivalents and marketable securities as of September 30, 2013 and December 31, 2012, respectively, was as follows: | ||||||||||||||||||||
September 30, 2013 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
Money market securities | $ | 4,352 | $ | — | $ | — | $ | 4,352 | |||||||||||||
U.S. federal agency notes | — | 332 | — | 332 | |||||||||||||||||
Pre-refunded municipal bonds (1) | — | 30,106 | — | 30,106 | |||||||||||||||||
Other municipal bonds | 154 | 154 | |||||||||||||||||||
Corporate notes | — | 2,440 | — | 2,440 | |||||||||||||||||
Total | $ | 4,352 | $ | 33,032 | $ | — | $ | 37,384 | |||||||||||||
December 31, 2012 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
Money market securities | $ | 901 | $ | — | $ | — | $ | 901 | |||||||||||||
Certificates of deposits | — | 491 | — | 491 | |||||||||||||||||
U.S. treasuries | — | 289 | — | 289 | |||||||||||||||||
U.S. federal agency notes | — | 1,637 | — | 1,637 | |||||||||||||||||
Pre-refunded municipal bonds (1) | — | 21,878 | — | 21,878 | |||||||||||||||||
Other municipal bonds | 158 | 158 | |||||||||||||||||||
Corporate notes | — | 10,100 | — | 10,100 | |||||||||||||||||
Commercial paper | — | 2,614 | — | 2,614 | |||||||||||||||||
Total | $ | 901 | $ | 37,167 | $ | — | $ | 38,068 | |||||||||||||
-1 | Pre-refunded municipal bonds are collateralized by U.S. treasuries. | ||||||||||||||||||||
Summary of Fair Value Maturities for Financial Assets | The fair value maturities of the Company’s cash equivalents and marketable securities as of September 30, 2013 were as follows: | ||||||||||||||||||||
Maturities by Period | |||||||||||||||||||||
Total | Less than | 1-5 years | 5-10 years | More than | |||||||||||||||||
1 year | 10 years | ||||||||||||||||||||
Cash equivalents and marketable securities | $ | 37,384 | $ | 32,287 | $ | 5,097 | $ | — | $ | — | |||||||||||
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||
Geographical Segment Revenue | Revenue, based upon the “bill-to” location, by geographic area is as follows: | ||||||||||||||||
Three | Three | Nine | Nine | ||||||||||||||
Months | Months | Months | Months | ||||||||||||||
Ended | Ended | Ended | Ended | ||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Domestic | $ | 3,536 | $ | 5,830 | $ | 15,902 | $ | 24,923 | |||||||||
International(1) | 3,889 | 3,073 | 12,236 | 10,138 | |||||||||||||
Total | $ | 7,425 | $ | 8,903 | $ | 28,138 | $ | 35,061 | |||||||||
-1 | Revenue from the Central Banks, comprised of a consortium of central banks around the world, is classified as international revenue. Reporting revenue by country for this customer is not practicable. | ||||||||||||||||
Customers Who Accounted for More than 10% of Company's Revenues | Major Customers | ||||||||||||||||
Customers who accounted for more than 10% of the Company’s revenue are as follows: | |||||||||||||||||
Three | Three | Nine | Nine | ||||||||||||||
Months | Months | Months | Months | ||||||||||||||
Ended | Ended | Ended | Ended | ||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Central Banks | 37 | % | 27 | % | 31 | % | 22 | % | |||||||||
The Nielsen Company (“Nielsen”) | 13 | % | 12 | % | 11 | % | * | ||||||||||
Verance Corporation (“Verance”) | 12 | % | 11 | % | * | 31 | % | ||||||||||
Intellectual Ventures (“IV”) | * | 40 | % | 27 | % | 29 | % | ||||||||||
* | Less than 10% |
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||||||||||||||||||||||||
Allocation of Stock-Based Compensation | The Company records stock-based compensation expense for restricted stock awards only for those awards that are expected to vest. | ||||||||||||||||||||||||
Stock-based Compensation | |||||||||||||||||||||||||
Three | Three | Nine | Nine | ||||||||||||||||||||||
Months | Months | Months | Months | ||||||||||||||||||||||
Ended | Ended | Ended | Ended | ||||||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
Stock-based compensation: | |||||||||||||||||||||||||
Cost of revenue | $ | 78 | $ | 141 | $ | 374 | $ | 479 | |||||||||||||||||
Sales and marketing | 103 | 98 | 298 | 331 | |||||||||||||||||||||
Research, development and engineering | 278 | 242 | 766 | 639 | |||||||||||||||||||||
General and administrative | 529 | 844 | 1,595 | 2,508 | |||||||||||||||||||||
Intellectual property | 62 | 70 | 186 | 195 | |||||||||||||||||||||
Stock-based compensation expense | 1,050 | 1,395 | 3,219 | 4,152 | |||||||||||||||||||||
Capitalized to patent costs | 22 | 27 | 86 | 77 | |||||||||||||||||||||
Total stock-based compensation | $ | 1,072 | $ | 1,422 | $ | 3,305 | $ | 4,229 | |||||||||||||||||
Unrecognized Compensation Cost Related to Non-Vested Stock-Based Awards Granted | The following table sets forth total unrecognized compensation cost related to non-vested stock-based awards granted under all equity compensation plans, including preferred stock, stock options and restricted stock: | ||||||||||||||||||||||||
As of | As of | ||||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Unrecognized compensation costs | $ | 8,409 | $ | 8,333 | |||||||||||||||||||||
Weighted Average Period for Recognition of Unrecognized Compensation Cost for Stock Options and Restricted Stock | The Company expects to recognize the unrecognized compensation costs as of September 30, 2013 for stock options and restricted stock over a weighted average period through September 2017 as follows: | ||||||||||||||||||||||||
Stock | Restricted | ||||||||||||||||||||||||
Options | Stock | ||||||||||||||||||||||||
Weighted average period | 0.82 years | 1.23 years | |||||||||||||||||||||||
Reconciliation of Outstanding Balance of Stock Options | The following table reconciles the outstanding balance of stock options: | ||||||||||||||||||||||||
Three-months ended September 30, 2013: | Options | Weighted | Weighted | Aggregate | |||||||||||||||||||||
Average | Average | Intrinsic | |||||||||||||||||||||||
Exercise | Grant Date | Value | |||||||||||||||||||||||
Price | Fair Value | ||||||||||||||||||||||||
Outstanding at June 30, 2013 | 842,688 | $ | 15.24 | $ | 7.9 | ||||||||||||||||||||
Options granted | — | — | — | ||||||||||||||||||||||
Options exercised | (5,000 | ) | $ | 9.64 | $ | 6.3 | |||||||||||||||||||
Options canceled or expired | — | — | — | ||||||||||||||||||||||
Outstanding at September 30, 2013 | 837,688 | $ | 15.28 | $ | 7.91 | $ | 5,766 | ||||||||||||||||||
Nine-months ended September 30, 2013: | Options | Weighted | Weighted | Aggregate | |||||||||||||||||||||
Average | Average | Intrinsic | |||||||||||||||||||||||
Exercise | Grant Date | Value | |||||||||||||||||||||||
Price | Fair Value | ||||||||||||||||||||||||
Outstanding at December 31, 2012 | 855,988 | $ | 15.16 | $ | 7.88 | ||||||||||||||||||||
Options granted | — | — | — | ||||||||||||||||||||||
Options exercised | (18,300 | ) | $ | 9.64 | $ | 6.3 | |||||||||||||||||||
Options canceled or expired | — | — | — | ||||||||||||||||||||||
Outstanding at September 30, 2013 | 837,688 | $ | 15.28 | $ | 7.91 | $ | 5,766 | ||||||||||||||||||
Exercisable at September 30, 2013 | 742,135 | $ | 13.86 | $ | 5,718 | ||||||||||||||||||||
Unvested at September 30, 2013 | 95,553 | $ | 26.26 | $ | 48 | ||||||||||||||||||||
Summary of Information about Stock Options Outstanding | The following table summarizes information about stock options outstanding at September 30, 2013: | ||||||||||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||||||||||
Range of Exercise Prices | Number | Remaining | Weighted | Number | Remaining | Weighted | |||||||||||||||||||
Outstanding | Contractual | Average | Exercisable | Contractual | Average | ||||||||||||||||||||
Life (Years) | Exercise | Life (Years) | Exercise | ||||||||||||||||||||||
Price | Price | ||||||||||||||||||||||||
$9.64 - $9.91 | 489,772 | 5.11 | $ | 9.66 | 489,772 | 5.11 | $ | 9.66 | |||||||||||||||||
$14.99 - $18.01 | 132,916 | 6.33 | $ | 15.67 | 123,751 | 6.34 | $ | 15.72 | |||||||||||||||||
$24.35 - 30.01 | 215,000 | 7.82 | $ | 27.84 | 128,612 | 7.79 | $ | 28.1 | |||||||||||||||||
$9.64 - $30.01 | 837,688 | 6 | $ | 15.28 | 742,135 | 5.78 | $ | 13.86 | |||||||||||||||||
Reconciliation of Unvested Balance of Restricted Stock | Restricted Stock Activity | ||||||||||||||||||||||||
The following table reconciles the unvested balance of restricted stock: | |||||||||||||||||||||||||
Three-months ended September 30, 2013: | Number of | Weighted | |||||||||||||||||||||||
Shares | Average | ||||||||||||||||||||||||
Grant Date | |||||||||||||||||||||||||
Fair Value | |||||||||||||||||||||||||
Unvested balance, June 30, 2013 | 407,423 | $ | 22.11 | ||||||||||||||||||||||
Granted | 32,700 | $ | 20.38 | ||||||||||||||||||||||
Vested | (12,040 | ) | $ | 20.41 | |||||||||||||||||||||
Canceled | (5,505 | ) | $ | 22.22 | |||||||||||||||||||||
Unvested balance, September 30, 2013 | 422,578 | $ | 23.19 | ||||||||||||||||||||||
Nine-months ended September 30, 2013: | Number of | Weighted | |||||||||||||||||||||||
Shares | Average | ||||||||||||||||||||||||
Grant Date | |||||||||||||||||||||||||
Fair Value | |||||||||||||||||||||||||
Unvested balance, December 31, 2012 | 369,083 | $ | 21.72 | ||||||||||||||||||||||
Granted | 217,090 | $ | 21.64 | ||||||||||||||||||||||
Vested | (96,235 | ) | $ | 16.6 | |||||||||||||||||||||
Canceled | (67,360 | ) | $ | 19.55 | |||||||||||||||||||||
Unvested balance, September 30, 2013 | 422,578 | $ | 23.19 | ||||||||||||||||||||||
Earnings_Loss_Per_Common_Share1
Earnings (Loss) Per Common Share (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||
Summary of Reconciliation of Earnings (Loss) Per Common Share | The following table reconciles earnings (loss) per common share for the three- and nine-month periods ended September 30, 2013 and 2012: | ||||||||||||||||
Three Months | Three Months | Nine Months | Nine Months | ||||||||||||||
Ended | Ended | Ended | Ended | ||||||||||||||
September 30, 2013 | September 30, 2012 | September 30, 2013 | September 30, 2012 | ||||||||||||||
Basic Earnings (Loss) per Common Share: | |||||||||||||||||
Numerator: | |||||||||||||||||
Net income (loss) | $ | (795 | ) | $ | 1,003 | $ | 778 | $ | 7,218 | ||||||||
Distributed earnings to common shares | 754 | 741 | 2,260 | 1,471 | |||||||||||||
Distributed earnings to participating securities | 46 | 41 | 142 | 90 | |||||||||||||
Total distributed earnings | 800 | 782 | 2,402 | 1,561 | |||||||||||||
Undistributed earnings (loss) allocable to common shares | (1,595 | ) | 210 | (1,624 | ) | 5,378 | |||||||||||
Undistributed earnings (loss) allocable to participating securities | — | 11 | — | 279 | |||||||||||||
Total undistributed earnings (loss) | (1,595 | ) | 221 | (1,624 | ) | 5,657 | |||||||||||
Earnings (loss) to common shares—basic | $ | (841 | ) | $ | 951 | $ | 636 | $ | 6,849 | ||||||||
Denominator: | |||||||||||||||||
Weighted average common shares outstanding—basic (in thousands) | 6,860 | 6,761 | 6,850 | 6,745 | |||||||||||||
Basic earnings (loss) per common share | $ | (0.12 | ) | $ | 0.14 | $ | 0.09 | $ | 1.02 | ||||||||
Three Months | Three Months | Nine Months | Nine Months | ||||||||||||||
Ended | Ended | Ended | Ended | ||||||||||||||
September 30, 2013 | September 30, 2012 | September 30, 2013 | September 30, 2012 | ||||||||||||||
Diluted Earnings (Loss) per Common Share: | |||||||||||||||||
Numerator: | |||||||||||||||||
Earnings (loss) to common shares—basic | $ | (841 | ) | $ | 951 | $ | 636 | $ | 6,849 | ||||||||
Undistributed earnings allocated to participating securities | — | 11 | — | 279 | |||||||||||||
Undistributed earnings reallocated to participating securities | — | (10 | ) | — | (269 | ) | |||||||||||
Earnings (loss) to common shares—diluted | $ | (841 | ) | $ | 952 | $ | 636 | $ | 6,859 | ||||||||
Denominator: | |||||||||||||||||
Weighted average common shares outstanding—basic (in thousands) | 6,860 | 6,761 | 6,850 | 6,745 | |||||||||||||
Dilutive effect of stock options | — | 223 | 230 | 252 | |||||||||||||
Weighted average common shares outstanding—dilutive (in thousands) | 6,860 | 6,984 | 7,080 | 6,997 | |||||||||||||
Diluted earnings (loss) per common share | $ | (0.12 | ) | $ | 0.14 | $ | 0.09 | $ | 0.98 | ||||||||
Trade_Accounts_Receivable_and_1
Trade Accounts Receivable and Allowance for Doubtful Accounts (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Receivables [Abstract] | |||||||||
Summary of Accounts Receivable | Trade accounts receivable are recorded at the invoiced amount. | ||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Trade accounts receivable | $ | 5,139 | $ | 4,216 | |||||
Allowance for doubtful accounts | (22 | ) | — | ||||||
Trade accounts receivable, net | $ | 5,117 | $ | 4,216 | |||||
Unpaid deferred revenue included in trade accounts receivable | $ | 1,668 | $ | 1,589 | |||||
Customers Who Accounted for More than 10% of Trade Accounts Receivable, Net | Customers who accounted for more than 10% of trade accounts receivable, net are as follows: | ||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Central Banks | 31 | % | 30 | % | |||||
Nielsen | 20 | % | 24 | % | |||||
Civolution | 12 | % | 14 | % | |||||
IV | 12 | % | * | ||||||
* | Less than 10% |
Property_and_Equipment_Tables
Property and Equipment (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Property Plant And Equipment [Abstract] | |||||||||
Depreciation and Amortization on Property and Equipment Using the Straight-Line Method | Depreciation on property and equipment is calculated using the straight-line method over the estimated useful lives of the assets, generally two to twelve years. Leasehold improvements are amortized using the straight-line method over the shorter of the estimated useful life or the lease term. | ||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Office furniture and fixtures | $ | 586 | $ | 420 | |||||
Equipment | 3,155 | 1,886 | |||||||
Leasehold improvements | 1,180 | 1,083 | |||||||
Gross property and equipment | 4,921 | 3,389 | |||||||
Less accumulated depreciation and amortization | (2,449 | ) | (1,936 | ) | |||||
Property and equipment, net | $ | 2,472 | $ | 1,453 | |||||
Intangibles_Tables
Intangibles (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | |||||||||
Amortization of Intangible Assets Acquired | Amortization of intangible assets acquired is calculated using the straight-line method over the estimated useful lives of the assets. | ||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Capitalized patent costs | $ | 4,858 | $ | 3,973 | |||||
Intangible assets acquired: | |||||||||
Purchased patents and intellectual property | 250 | 250 | |||||||
Existing technology | 1,560 | 1,560 | |||||||
Customer relationships | 290 | 290 | |||||||
Backlog | 760 | 760 | |||||||
Tradenames | 290 | 290 | |||||||
Non-solicitation agreements | 120 | 120 | |||||||
Gross intangible assets | 8,128 | 7,243 | |||||||
Accumulated amortization | (1,428 | ) | (522 | ) | |||||
Intangibles, net | $ | 6,700 | $ | 6,721 | |||||
Stock_Repurchases_Tables
Stock Repurchases (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Text Block [Abstract] | |||||||||||||||||
Summary of Common Stock Shares Repurchased | Summary of common stock shares repurchased: | ||||||||||||||||
Three Months | Three Months | Nine Months | Nine Months | ||||||||||||||
Ended | Ended | Ended | Ended | ||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Repurchase program | — | 12,663 | — | 40,210 | |||||||||||||
Exercise of stock options | 2,301 | 35,755 | 7,917 | 58,535 | |||||||||||||
Tax withholding obligations on stock options | 982 | 20,891 | 3,777 | 35,012 | |||||||||||||
Tax withholding obligations on restricted shares | 4,488 | 3,775 | 35,407 | 24,346 | |||||||||||||
Total | 7,771 | 73,084 | 47,101 | 158,103 | |||||||||||||
Value of Common Stock Shares Repurchased | Value of common stock shares repurchased: | ||||||||||||||||
Three Months | Three Months | Nine Months | Nine Months | ||||||||||||||
Ended | Ended | Ended | Ended | ||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Repurchase program | $ | — | $ | 287 | $ | — | $ | 998 | |||||||||
Exercise of stock options | $ | 48 | $ | 846 | $ | 177 | $ | 1,448 | |||||||||
Tax withholding obligations on stock options | $ | 20 | $ | 495 | $ | 85 | $ | 870 | |||||||||
Tax withholding obligations on restricted shares | $ | 92 | $ | 84 | $ | 769 | $ | 583 | |||||||||
Total | $ | 160 | $ | 1,712 | $ | 1,031 | $ | 3,899 | |||||||||
Description_of_Business_and_Si2
Description of Business and Significant Accounting Policies - Additional Information (Detail) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
Segment | |
Accounting Policies [Abstract] | |
Number of reporting units | 1 |
Impairment of goodwill | $0 |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments - Summary of Fair Value Hierarchy for Financial Assets (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | $37,384 | |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 37,384 | 38,068 |
Fair Value, Measurements, Recurring [Member] | Money market securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 4,352 | 901 |
Fair Value, Measurements, Recurring [Member] | U.S. federal agency notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 332 | 1,637 |
Fair Value, Measurements, Recurring [Member] | Pre-refunded municipal bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 30,106 | 21,878 |
Fair Value, Measurements, Recurring [Member] | Other municipal bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 154 | 158 |
Fair Value, Measurements, Recurring [Member] | Corporate notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 2,440 | 10,100 |
Fair Value, Measurements, Recurring [Member] | Certificates of deposits [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 491 | |
Fair Value, Measurements, Recurring [Member] | U.S. treasuries [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 289 | |
Fair Value, Measurements, Recurring [Member] | Commercial paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 2,614 | |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 4,352 | 901 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Money market securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 4,352 | 901 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | U.S. federal agency notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | ||
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Pre-refunded municipal bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | ||
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Corporate notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | ||
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Certificates of deposits [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | ||
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | U.S. treasuries [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | ||
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Commercial paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | ||
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 33,032 | 37,167 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Money market securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | ||
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | U.S. federal agency notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 332 | 1,637 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Pre-refunded municipal bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 30,106 | 21,878 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Other municipal bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 154 | 158 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Corporate notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 2,440 | 10,100 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Certificates of deposits [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 491 | |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | U.S. treasuries [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 289 | |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Commercial paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 2,614 | |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | ||
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Money market securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | ||
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | U.S. federal agency notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | ||
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Pre-refunded municipal bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | ||
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Other municipal bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | ||
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Corporate notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | ||
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Certificates of deposits [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | ||
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | U.S. treasuries [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | ||
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Commercial paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total |
Fair_Value_of_Financial_Instru3
Fair Value of Financial Instruments - Summary of Fair Value Maturities for Financial Assets (Detail) (USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
Fair Value Disclosures [Abstract] | |
Maturities, Total | $37,384 |
Maturities, Less than 1 year | 32,287 |
Maturities, 1-5 years | 5,097 |
Maturities, 5-10 years | |
Maturities, More than 10 years |
Fair_Value_of_Financial_Instru4
Fair Value of Financial Instruments - Additional Information (Detail) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Fair Value Disclosures [Abstract] | ||
Highly liquid marketable securities with original maturities | 90 days | |
Cash equivalents include money market funds, certificates of deposit, commercial paper, and investments in pre-refunded municipal bonds | $4,352 | $5,878 |
Acquisition_of_Attributor_Corp1
Acquisition of Attributor Corporation (''Attributor'') - Additional Information (Detail) (USD $) | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 |
Business Combinations [Abstract] | |||
Fair value of contingent consideration | $0 | $0 | $190 |
Reversal of contingent consideration liability | $190 |
Revenue_Recognition_Additional
Revenue Recognition - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2013 | |
Revenue Recognition [Abstract] | |
Period of revenue from services | 1 month |
Subscription revenue term minimum | 1 month |
Subscription revenue term maximum | 24 months |
License revenue recognized payment terms, maximum | 60 days |
License revenue recognized payment terms, minimum | 30 days |
Segment_Information_Geographic
Segment Information - Geographical Segment Revenue (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total | $7,425 | $8,903 | $28,138 | $35,061 |
Operating Segments [Member] | Domestic [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total | 3,536 | 5,830 | 15,902 | 24,923 |
Operating Segments [Member] | International [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total | $3,889 | $3,073 | $12,236 | $10,138 |
Segment_Information_Additional
Segment Information - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Jan. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 |
Verance Corporation (Verance) [Member] | Sales [Member] | Sales [Member] | Sales [Member] | Minimum [Member] | Minimum [Member] | |||||
Verance Corporation (Verance) [Member] | Verance Corporation (Verance) [Member] | Verance Corporation (Verance) [Member] | Sales [Member] | Sales [Member] | ||||||
Revenue, Major Customer [Line Items] | ||||||||||
Revenue from segments | 12.00% | 11.00% | 31.00% | 10.00% | 10.00% | |||||
Proceeds from major customer | $7,425 | $8,903 | $28,138 | $35,061 | $8,852 |
Segment_Information_Customers_
Segment Information - Customers Who Accounted for More than 10% of Company's Revenues (Detail) (Sales [Member]) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Central Banks [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Entity wide revenue major customer percentage | 37.00% | 27.00% | 31.00% | 22.00% |
The Nielsen Company ("Nielsen") [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Entity wide revenue major customer percentage | 13.00% | 12.00% | 11.00% | |
Verance Corporation (Verance) [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Entity wide revenue major customer percentage | 12.00% | 11.00% | 31.00% | |
Intellectual Ventures (''IV'') [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Entity wide revenue major customer percentage | 40.00% | 27.00% | 29.00% |
Segment_Information_Customers_1
Segment Information - Customers Who Accounted for More than 10% of Company's Revenues (Parenthetical) (Detail) (Minimum [Member], Sales [Member]) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2013 | Sep. 30, 2013 | |
Minimum [Member] | Sales [Member] | ||
Revenue, Major Customer [Line Items] | ||
Entity wide revenue major customer percentage | 10.00% | 10.00% |
StockBased_Compensation_Additi
Stock-Based Compensation - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Contractual terms | 10 years | |||
Stock options granted | 0 | 0 | ||
Closing price of common stock | $20.20 | $20.20 | ||
Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation plans, equity awards | 696,786 | |||
Minimum [Member] | Stock Option [Member] | Employee [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period for stock options and restricted stock | 3 years | |||
Minimum [Member] | Stock Option [Member] | Director [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period for stock options and restricted stock | 1 year | |||
Minimum [Member] | Restricted Stock [Member] | Employee [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period for stock options and restricted stock | 3 years | |||
Minimum [Member] | Restricted Stock [Member] | Director [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period for stock options and restricted stock | 1 year | |||
Maximum [Member] | Stock Option [Member] | Employee [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period for stock options and restricted stock | 4 years | |||
Maximum [Member] | Stock Option [Member] | Director [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period for stock options and restricted stock | 2 years | |||
Maximum [Member] | Restricted Stock [Member] | Employee [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period for stock options and restricted stock | 4 years | |||
Series A Preferred Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Authorized shares of Series A Redeemable Nonvoting Preferred stock | 10,000 | 10,000 | ||
Series A Preferred redeemable stated fair value | $5 | $5 |
StockBased_Compensation_Alloca
Stock-Based Compensation - Allocation of Stock-Based Compensation (Detail) (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] | ||||
Stock-based compensation expense | $1,050 | $1,395 | $3,219 | $4,152 |
Capitalized to patent costs | 22 | 27 | 86 | 77 |
Total stock-based compensation | 1,072 | 1,422 | 3,219 | 4,152 |
Cost of revenue [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 78 | 141 | 374 | 479 |
Sales and marketing [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 103 | 98 | 298 | 331 |
Research, development and engineering [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 278 | 242 | 766 | 639 |
General and administrative [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 529 | 844 | 1,595 | 2,508 |
Intellectual property [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $62 | $70 | $186 | $195 |
StockBased_Compensation_Unreco
Stock-Based Compensation - Unrecognized Compensation Cost Related to Non-Vested Stock-Based Awards Granted (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Unrecognized compensation costs | $8,409 | $8,333 |
StockBased_Compensation_Weight
Stock-Based Compensation - Weighted Average Period for Recognition of Unrecognized Compensation Cost for Stock Options and Restricted Stock (Detail) | 9 Months Ended |
Sep. 30, 2013 | |
Stock Option [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted average period | 9 months 26 days |
Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted average period | 1 year 2 months 23 days |
StockBased_Compensation_Reconc
Stock-Based Compensation - Reconciliation of Outstanding Balance of Stock Options (Detail) (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 |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||
Outstanding at beginning | 842,688 | 855,988 | ||
Options granted | 0 | 0 | ||
Options exercised | -5,000 | -18,300 | ||
Options canceled or expired | ||||
Outstanding at ending | 837,688 | 837,688 | ||
Exercisable at ending | 742,135 | 742,135 | ||
Unvested at ending | 95,553 | 95,553 | ||
Weighted Average Exercise Price at beginning | $15.24 | $15.16 | ||
Weighted Average Exercise Price, Options granted | ||||
Weighted Average Exercise Price, Options exercised | $9.64 | $9.64 | ||
Weighted Average Exercise Price, Options canceled or expired | ||||
Weighted Average Exercise Price at ending | $15.28 | $15.28 | ||
Weighted Average Exercise Price Exercisable at ending | $13.86 | $13.86 | ||
Weighted Average Grant Date Fair Value at beginning | $7.90 | $7.88 | ||
Weighted Average Exercise Price Unvested at ending | $26.26 | $26.26 | ||
Weighted Average Grant Date Fair Value, Options granted | ||||
Aggregate Intrinsic Value Outstanding at ending | $5,766 | $5,766 | ||
Weighted Average Grant Date Fair Value, Options exercised | $6.30 | $6.30 | ||
Aggregate Intrinsic Value Exercisable at ending | 5,718 | 5,718 | ||
Weighted Average Grant Date Fair Value, Options canceled or expired | ||||
Aggregate Intrinsic Value Unvested at ending | $48 | $48 | ||
Weighted Average Grant Date Fair Value at ending | $7.91 | $7.91 |
StockBased_Compensation_Summar
Stock-Based Compensation - Summary of Information about Stock Options Outstanding (Detail) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Range One [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Price, Lower Range Limit | $9.64 |
Range of Exercise Price, Upper Range Limit | $9.91 |
Number Outstanding | 489,772 |
Remaining Contractual Life (Years), Outstanding | 5 years 1 month 10 days |
Weighted Average Exercise Price, Outstanding | $9.66 |
Number Exercisable | 489,772 |
Option Exercisable Remaining Contractual Life (Years) | 5 years 1 month 10 days |
Weighted Average Exercise Price, Exercisable | $9.66 |
Range Two [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Price, Lower Range Limit | $14.99 |
Range of Exercise Price, Upper Range Limit | $18.01 |
Number Outstanding | 132,916 |
Remaining Contractual Life (Years), Outstanding | 6 years 3 months 29 days |
Weighted Average Exercise Price, Outstanding | $15.67 |
Number Exercisable | 123,751 |
Option Exercisable Remaining Contractual Life (Years) | 6 years 4 months 2 days |
Weighted Average Exercise Price, Exercisable | $15.72 |
Range Three [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Price, Lower Range Limit | $24.35 |
Range of Exercise Price, Upper Range Limit | $30.01 |
Number Outstanding | 215,000 |
Remaining Contractual Life (Years), Outstanding | 7 years 9 months 26 days |
Weighted Average Exercise Price, Outstanding | $27.84 |
Number Exercisable | 128,612 |
Option Exercisable Remaining Contractual Life (Years) | 7 years 9 months 15 days |
Weighted Average Exercise Price, Exercisable | $28.10 |
Range Four [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Price, Lower Range Limit | $9.64 |
Range of Exercise Price, Upper Range Limit | $30.01 |
Number Outstanding | 837,688 |
Remaining Contractual Life (Years), Outstanding | 6 years |
Weighted Average Exercise Price, Outstanding | $15.28 |
Number Exercisable | 742,135 |
Option Exercisable Remaining Contractual Life (Years) | 5 years 9 months 11 days |
Weighted Average Exercise Price, Exercisable | $13.86 |
StockBased_Compensation_Reconc1
Stock-Based Compensation - Reconciliation of Unvested Balance of Restricted Stock (Detail) (Restricted Stock [Member], USD $) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2013 | Sep. 30, 2013 | |
Restricted Stock [Member] | ||
Number of Shares | ||
Unvested, beginning balance | 407,423 | 369,083 |
Granted | 32,700 | 217,090 |
Vested | -12,040 | -96,235 |
Canceled | -5,505 | -67,360 |
Unvested, ending balance | 422,578 | 422,578 |
Weighted Average Grant Date Fair Value | ||
Unvested, beginning balance | $22.11 | $21.72 |
Granted | $20.38 | $21.64 |
Vested | $20.41 | $16.60 |
Canceled | $22.22 | $19.55 |
Unvested, ending balance | $23.19 | $23.19 |
Earnings_Per_Common_Share_Summ
Earnings Per Common Share - Summary of Reconciliation of Earnings (Loss) Per Common Share (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Basic Earnings (Loss) per Common Share: | ||||
Net income (loss) | ($795) | $1,003 | $778 | $7,218 |
Distributed earnings to common shares | 754 | 741 | 2,260 | 1,471 |
Distributed earnings to participating securities | 46 | 41 | 142 | 90 |
Total distributed earnings | 800 | 782 | 2,402 | 1,561 |
Undistributed earnings (loss) allocable to common shares | -1,595 | 210 | -1,624 | 5,378 |
Undistributed earnings (loss) allocable to participating securities | 11 | 279 | ||
Total undistributed earnings (loss) | -1,595 | 221 | -1,624 | 5,657 |
Earnings (loss) to common shares-basic | -841 | 951 | 636 | 6,849 |
Weighted average common shares outstanding-basic | 6,860 | 6,761 | 6,850 | 6,745 |
Basic earnings (loss) per common share | ($0.12) | $0.14 | $0.09 | $1.02 |
Diluted Earnings (Loss) per Common Share: | ||||
Earnings (loss) to common shares-basic | -841 | 951 | 636 | 6,849 |
Undistributed earnings allocated to participating securities | 11 | 279 | ||
Undistributed earnings reallocated to participating securities | -10 | -269 | ||
Earnings (loss) to common shares-diluted | ($841) | $952 | $636 | $6,859 |
Weighted average common shares outstanding-basic | 6,860 | 6,761 | 6,850 | 6,745 |
Dilutive effect of stock options | 223 | 230 | 252 | |
Weighted average common shares outstanding-dilutive | 6,860 | 6,984 | 7,080 | 6,997 |
Diluted earnings (loss) per common share | ($0.12) | $0.14 | $0.09 | $0.98 |
Earnings_Per_Common_Share_Addi
Earnings Per Common Share - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Earnings Per Share [Abstract] | ||||
Common stock equivalents related to stock options that were anti-dilutive and excluded from diluted net income per share | 228,158 | 215,000 | 215,000 | 215,000 |
Trade_Accounts_Receivable_and_2
Trade Accounts Receivable and Allowance for Doubtful Accounts - Summary of Accounts Receivable (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Accounts Receivable Net Current [Abstract] | ||
Unpaid deferred revenue included in trade accounts receivable | $1,668 | $1,589 |
Trade accounts receivable | 5,139 | 4,216 |
Allowance for doubtful accounts | -22 | |
Trade accounts receivable, net | $5,117 | $4,216 |
Trade_Accounts_Receivable_and_3
Trade Accounts Receivable and Allowance for Doubtful Accounts - Customers Who Accounted for More than 10% of Trade Accounts Receivable, Net (Detail) (Accounts Receivable [Member]) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2013 | Dec. 31, 2012 | |
Central Banks [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of trade accounts receivable of major customers | 31.00% | 30.00% |
The Nielsen Company ("Nielsen") [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of trade accounts receivable of major customers | 20.00% | 24.00% |
Civolution [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of trade accounts receivable of major customers | 12.00% | 14.00% |
Intellectual Ventures (''IV'') [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of trade accounts receivable of major customers | 12.00% |
Trade_Accounts_Receivable_and_4
Trade Accounts Receivable and Allowance for Doubtful Accounts - Customers Who Accounted for More than 10% of Trade Accounts Receivable, Net (Parenthetical) (Detail) (Minimum [Member], Accounts Receivable [Member]) | 12 Months Ended |
Dec. 31, 2012 | |
Minimum [Member] | Accounts Receivable [Member] | |
Concentration Risk [Line Items] | |
Percentage of trade accounts receivable of major customers | 10.00% |
Property_and_Equipment_Additio
Property and Equipment - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2013 | |
Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of the assets | 12 years |
Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of the assets | 2 years |
Property_and_Equipment_Depreci
Property and Equipment - Depreciation and Amortization on Property and Equipment Using the Straight-Line Method (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Property Plant And Equipment [Abstract] | ||
Office furniture and fixtures | $586 | $420 |
Equipment | 3,155 | 1,886 |
Leasehold improvements | 1,180 | 1,083 |
Gross property and equipment | 4,921 | 3,389 |
Less accumulated depreciation and amortization | -2,449 | -1,936 |
Property and equipment, net | $2,472 | $1,453 |
Intangibles_Additional_Informa
Intangibles - Additional Information (Detail) (Patents [Member]) | 9 Months Ended |
Sep. 30, 2013 | |
Patents [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life | 17 years |
Intangibles_Amortization_of_In
Intangibles - Amortization of Intangible Assets Acquired (Detail) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Finite-Lived Intangible Assets [Line Items] | ||
Capitalized patent costs | $4,858 | $3,973 |
Intangible assets acquired: | ||
Gross intangible assets | 8,128 | 7,243 |
Accumulated amortization | -1,428 | -522 |
Intangibles, net | 6,700 | 6,721 |
Intellectual property [Member] | ||
Intangible assets acquired: | ||
Intangible assets amount | 250 | 250 |
Existing technology [Member] | ||
Intangible assets acquired: | ||
Intangible assets amount | 1,560 | 1,560 |
Customer relationships [Member] | ||
Intangible assets acquired: | ||
Intangible assets amount | 290 | 290 |
Backlog [Member] | ||
Intangible assets acquired: | ||
Intangible assets amount | 760 | 760 |
Tradenames [Member] | ||
Intangible assets acquired: | ||
Intangible assets amount | 290 | 290 |
Non-solicitation agreements [Member] | ||
Intangible assets acquired: | ||
Intangible assets amount | $120 | $120 |
Joint_Venture_and_Related_Part1
Joint Venture and Related Party Transactions - Additional Information (Detail) (USD $) | 3 Months Ended | 1 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Apr. 30, 2012 | Apr. 30, 2012 |
Tvaura LLC [Member] | Tvaura Mobile LLC [Member] | ||||
Related Party Transaction [Line Items] | |||||
Operating expenses and suspension related costs returned | $104 | ||||
Equity method investment, Ownership percentage | 51.00% | 49.00% | |||
One-time severance and suspension costs | 500 | ||||
Net payment of operating expenses and suspension related costs | 796 | ||||
Investments in joint venture | $0 | $0 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate | 26.00% | 38.00% |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2013 | |
Cases | |
Defendant | |
Patents | |
Commitments And Contingencies Disclosure [Abstract] | |
Number of patents | 4 |
Number of defendants | 90 |
Number of case | 1 |
Stock_Repurchases_Summary_of_C
Stock Repurchases - Summary of Common Stock Shares Repurchased (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Stock Repurchase Program [Line Items] | ||||
Repurchase program | 12,663 | 0 | 40,210 | |
Total | 7,771 | 73,084 | 47,101 | 158,103 |
Stock Option [Member] | ||||
Stock Repurchase Program [Line Items] | ||||
Exercise of stock options | 2,301 | 35,755 | 7,917 | 58,535 |
Tax withholding obligations | 982 | 20,891 | 3,777 | 35,012 |
Restricted Stock [Member] | ||||
Stock Repurchase Program [Line Items] | ||||
Tax withholding obligations | 4,488 | 3,775 | 35,407 | 24,346 |
Stock_Repurchases_Value_of_Com
Stock Repurchases - Value of Common Stock Shares Repurchased (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Stock Repurchase Program [Line Items] | ||||
Repurchase program | $287 | $0 | $998 | |
Exercise of stock options | 48 | 846 | 177 | 1,448 |
Total | 160 | 1,712 | 854 | 3,899 |
Stock Option [Member] | ||||
Stock Repurchase Program [Line Items] | ||||
Tax withholding obligations | 20 | 495 | 85 | 870 |
Restricted Stock [Member] | ||||
Stock Repurchase Program [Line Items] | ||||
Tax withholding obligations | $92 | $84 | $769 | $583 |
Stock_Repurchases_Additional_I
Stock Repurchases - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Nov. 30, 2011 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Equity [Abstract] | ||||
Stock repurchase program authorizing additional | $5,000 | |||
Common stock repurchased | 12,663 | 0 | 40,210 | |
Aggregate purchase price | $287 | $0 | $998 |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Subsequent Events [Abstract] | |
Declared quarterly dividend | $0.11 |
Dividend declared date | 22-Oct-13 |
Dividend date to be paid | 12-Nov-13 |
Dividend date of record | 4-Nov-13 |