Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Feb. 14, 2014 | Jun. 28, 2013 |
Document And Entity Information [Abstract] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Trading Symbol | 'DMRC | ' | ' |
Entity Registrant Name | 'Digimarc CORP | ' | ' |
Entity Central Index Key | '0001438231 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 7,432,554 | ' |
Entity Public Float | ' | ' | $144 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $3,811 | $6,866 |
Marketable securities | 25,851 | 25,403 |
Trade accounts receivable, net | 5,838 | 4,216 |
Other current assets | 1,658 | 1,016 |
Total current assets | 37,158 | 37,501 |
Marketable securities | 5,302 | 6,787 |
Property and equipment, net | 2,395 | 1,453 |
Intangibles, net | 6,709 | 6,721 |
Goodwill | 1,114 | 1,114 |
Deferred tax assets, net | 3,949 | 3,589 |
Other assets | 570 | 166 |
Total assets | 57,197 | 57,331 |
Current liabilities: | ' | ' |
Accounts payable and other accrued liabilities | 1,560 | 1,143 |
Deferred revenue | 4,218 | 2,512 |
Total current liabilities | 5,778 | 3,655 |
Deferred rent and other long-term liabilities | 496 | 673 |
Total liabilities | 6,274 | 4,328 |
Commitments and contingencies (Note 15) | ' | ' |
Shareholders' equity: | ' | ' |
Preferred stock (par value $0.001 per share, 2,500,000 authorized, 10,000 shares issued and outstanding at December 31, 2013 and 2012) | 50 | 50 |
Common stock (par value $0.001 per share, 50,000,000 authorized, 7,401,072 and 7,168,359 shares issued and outstanding at December 31, 2013 and 2012, respectively) | 7 | 7 |
Additional paid-in capital | 41,498 | 39,869 |
Retained earnings | 9,368 | 13,077 |
Total shareholders' equity | 50,923 | 53,003 |
Total liabilities and shareholders' equity | $57,197 | $57,331 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 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 | 7,401,072 | 7,168,359 |
Common stock, shares outstanding | 7,401,072 | 7,168,359 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenue: | ' | ' | ' |
Service | $11,631 | $10,792 | $12,395 |
Subscription | 5,591 | 1,481 | 1,378 |
License | 17,742 | 32,102 | 22,266 |
Total revenue | 34,964 | 44,375 | 36,039 |
Cost of revenue: | ' | ' | ' |
Service | 5,327 | 5,917 | 6,638 |
Subscription | 2,491 | 355 | 177 |
License | 387 | 236 | 122 |
Total cost of revenue | 8,205 | 6,508 | 6,937 |
Gross profit | 26,759 | 37,867 | 29,102 |
Operating expenses: | ' | ' | ' |
Sales and marketing | 6,144 | 3,827 | 4,336 |
Research, development and engineering | 12,274 | 8,741 | 7,327 |
General and administrative | 9,624 | 9,457 | 9,956 |
Intellectual property | 1,129 | 1,248 | 1,094 |
Total operating expenses | 29,171 | 23,273 | 22,713 |
Operating income (loss) | -2,412 | 14,594 | 6,389 |
Net loss from joint ventures | ' | -1,107 | -2,714 |
Other income, net | 109 | 179 | 195 |
Income (loss) before income taxes | -2,303 | 13,666 | 3,870 |
(Provision) benefit for income taxes | 1,796 | -5,394 | 1,786 |
Net income (loss) | ($507) | $8,272 | $5,656 |
Earnings (loss) per common share: | ' | ' | ' |
Earnings (loss) per common share-basic | ($0.10) | $1.16 | $0.84 |
Earnings (loss) per common share-diluted | ($0.10) | $1.12 | $0.76 |
Weighted average common shares outstanding-basic | 6,866 | 6,757 | 6,741 |
Weighted average common shares outstanding-diluted | 6,866 | 6,989 | 7,430 |
Cash dividends declared per common share | $0.44 | $0.33 | ' |
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, 2010 | $51,159 | $50 | $7 | $49,609 | $1,493 |
BALANCE, shares at Dec. 31, 2010 | ' | 10,000 | 7,443,450 | ' | ' |
Exercise of stock options | ' | ' | ' | ' | ' |
Exercise of stock options, shares | 169,420 | ' | 169,420 | ' | ' |
Issuance of restricted common stock, shares | ' | ' | 190,180 | ' | ' |
Forfeiture of restricted common stock, shares | ' | ' | -18,120 | ' | ' |
Purchase and retirement of common stock | -20,397 | ' | ' | -20,397 | ' |
Purchase and retirement of common stock, shares | -766,899 | ' | -776,899 | ' | ' |
Stock-based compensation | 4,231 | ' | ' | 4,231 | ' |
Tax benefit (expense) from stock-based awards | 1,068 | ' | ' | 1,068 | ' |
Net income (loss) | 5,656 | ' | ' | ' | 5,656 |
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 | ' | ' | ' | ' | ' |
Exercise of stock options, shares | 172,250 | ' | 172,250 | ' | ' |
Issuance of restricted common stock, shares | ' | ' | 202,340 | ' | ' |
Forfeiture of restricted common stock, shares | ' | ' | -12,300 | ' | ' |
Purchase and retirement of common stock | -3,100 | ' | ' | -3,100 | ' |
Purchase and retirement of common stock, shares | -201,962 | ' | -201,962 | ' | ' |
Stock-based compensation | 5,414 | ' | ' | 5,414 | ' |
Tax benefit (expense) from stock-based awards | 3,044 | ' | ' | 3,044 | ' |
Net income (loss) | 8,272 | ' | ' | ' | 8,272 |
Cash dividends declared | -2,344 | ' | ' | ' | -2,344 |
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 | ' | ' | ' | ' | ' |
Exercise of stock options, shares | 42,050 | ' | 42,050 | ' | ' |
Issuance of restricted common stock, shares | ' | ' | 388,190 | ' | ' |
Forfeiture of restricted common stock, shares | ' | ' | -88,633 | ' | ' |
Purchase and retirement of common stock | -1,822 | ' | ' | -1,822 | ' |
Purchase and retirement of common stock, shares | -108,894 | ' | -108,894 | ' | ' |
Stock-based compensation | 4,639 | ' | ' | 4,639 | ' |
Tax benefit (expense) from stock-based awards | -1,188 | ' | ' | -1,188 | ' |
Net income (loss) | -507 | ' | ' | ' | -507 |
Cash dividends declared | -3,202 | ' | ' | ' | -3,202 |
BALANCE at Dec. 31, 2013 | $50,923 | $50 | $7 | $41,498 | $9,368 |
BALANCE, shares at Dec. 31, 2013 | ' | 10,000 | 7,401,072 | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash flows from operating activities: | ' | ' | ' |
Net income (loss) | ($507) | $8,272 | $5,656 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ' | ' | ' |
Depreciation and amortization of property and equipment | 742 | 600 | 613 |
Amortization and write-off of intangibles | 1,247 | 385 | 143 |
Increase in allowance for doubtful accounts | 45 | ' | ' |
Gain on reversal of contingent merger consideration | -190 | ' | ' |
Stock-based compensation | 4,502 | 5,256 | 4,216 |
Net loss from joint ventures | ' | 1,107 | 2,714 |
Deferred income taxes | -715 | -284 | -3,640 |
Tax benefit (expense) from stock-based awards | -855 | 3,688 | 1,873 |
Excess tax benefit from stock-based awards | -201 | -3,044 | -1,068 |
Changes in operating assets and liabilities: | ' | ' | ' |
Trade accounts receivable, net | -1,667 | -187 | -21 |
Other current assets | -342 | 219 | 240 |
Other assets | -404 | 201 | 107 |
Accounts payable and other liabilities | 124 | -228 | -668 |
Deferred revenue | 1,694 | -384 | 88 |
Net cash provided by operating activities | 3,473 | 15,601 | 10,253 |
Cash flows from investing activities: | ' | ' | ' |
Purchase of property and equipment | -1,644 | -570 | -678 |
Capitalized patent costs and purchased intellectual property | -1,098 | -1,170 | -712 |
Investments in joint ventures, net | ' | -692 | -2,100 |
Business acquisitions, net of cash acquired | ' | -5,092 | ' |
Sale or maturity of marketable securities | 55,627 | 144,214 | 74,689 |
Purchase of marketable securities | -54,590 | -146,444 | -65,044 |
Net cash provided by (used in) investing activities | -1,705 | -9,754 | 6,155 |
Cash flows from financing activities: | ' | ' | ' |
Purchase of common stock | -1,822 | -3,100 | -20,397 |
Cash dividends paid | -3,202 | -2,344 | ' |
Excess tax benefit from stock-based awards | 201 | 3,044 | 1,068 |
Net cash used in financing activities | -4,823 | -2,400 | -19,329 |
Net increase (decrease) in cash and cash equivalents | -3,055 | 3,447 | -2,921 |
Cash and cash equivalents at beginning of period | 6,866 | 3,419 | 6,340 |
Cash and cash equivalents at end of period | 3,811 | 6,866 | 3,419 |
Supplemental disclosure of cash flow information: | ' | ' | ' |
Cash paid for income taxes | 46 | 1,819 | 13 |
Supplemental schedule of non-cash investing activities: | ' | ' | ' |
Stock-based compensation capitalized to patent costs | 137 | 108 | 65 |
Supplemental schedule of non-cash financing activities: | ' | ' | ' |
Exercise of stock options | ' | ' | ' |
Description_of_Business_and_Su
Description of Business and Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||||||
Description of Business and Summary of Significant Accounting Policies | ' | ||||||||||||||||||||
(1) Description of Business and Summary of 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 technology provides the means to infuse persistent digital information, “Digimarc IDs,” 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 all forms of media content. | |||||||||||||||||||||
Principles of Consolidation | |||||||||||||||||||||
The consolidated financial statements include the accounts of Digimarc and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated. | |||||||||||||||||||||
Use of Estimates | |||||||||||||||||||||
The preparation of the consolidated financial statements in accordance with accounting principles generally accepted in the U.S. requires Digimarc to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expenses, and related disclosure of contingent assets and liabilities. Certain of the Company’s accounting policies require higher degrees of judgment than others in their application. These include revenue recognition on long-term contracts, goodwill, impairment of long-lived assets, contingencies, stock-based compensation and income taxes. Digimarc bases its estimates on historical experience and on other assumptions that are believed to be reasonable in the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. | |||||||||||||||||||||
Reclassifications | |||||||||||||||||||||
Certain prior period amounts in the accompanying 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 statements of operations, but given the increase in subscription revenue in the current year, the Company is now presenting license revenue and subscription revenue separately. The Company has reclassified the impact of net shares settled on stock option exercises in the statements of shareholder’s equity and cash flows on a net basis to conform to current year presentation. | |||||||||||||||||||||
Cash Equivalents | |||||||||||||||||||||
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 money market securities, certificates of deposit, commercial paper, and pre-refunded municipal bonds totaling $2,443 and $5,878 at December 31, 2013 and 2012, respectively. Cash equivalents are carried at cost or amortized cost, which approximates market. | |||||||||||||||||||||
Marketable Securities | |||||||||||||||||||||
The Company considers all investments with original maturities over 90 days that mature in less than one year from the balance sheet date to be short-term marketable securities. Both short- and long-term marketable securities primarily include pre-refunded municipal bonds, corporate notes, commercial paper and U.S. federal agency notes. The Company’s marketable securities are classified as held-to-maturity and are reported at amortized cost, which approximates market. | |||||||||||||||||||||
A decline in the market value of any security below amortized cost that is deemed to be other-than-temporary results in a reduction in the carrying amount. The impairment is charged to earnings and a new cost basis for the security is established. To determine whether an impairment is other-than-temporary, the Company considers whether it has the ability and intent to hold the investment until a market price recovery and considers whether evidence indicating that the cost of the investment is recoverable outweighs evidence to the contrary. There have been no other-than-temporary impairments identified or recorded by the Company. | |||||||||||||||||||||
Premiums and discounts are amortized or accreted over the life of the related security as an adjustment to yield using a method that approximates the effective interest method. Under this method, dividend and interest income are recognized when earned. | |||||||||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||||||
Accounting Standards Certification (“ASC”) 820 “Fair Value Measurements and Disclosures” 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 investments as of the reporting date. | ||||||||||||||||||||
• | Level 2—Pricing inputs are quoted for similar investments, or inputs that are observable, either directly or indirectly, for substantially the full term through corroboration with observable market data. Level 2 includes investments valued at quoted prices adjusted for legal or contractual restrictions specific to these investments. | ||||||||||||||||||||
• | Level 3—Pricing inputs are unobservable for the investment; that is, the inputs reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. | ||||||||||||||||||||
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 December 31, 2013 and 2012, respectively, was as follows: | |||||||||||||||||||||
December 31, 2013 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
Money market securities | $ | 2,343 | $ | — | $ | — | $ | 2,343 | |||||||||||||
Pre-refunded municipal bonds (1) | — | 29,268 | — | 29,268 | |||||||||||||||||
Corporate notes | — | 1,180 | — | 1,180 | |||||||||||||||||
U.S. federal agency notes | — | 331 | — | 331 | |||||||||||||||||
Certificates of deposits | — | 321 | — | 321 | |||||||||||||||||
Other municipals | — | 153 | — | 153 | |||||||||||||||||
Total | $ | 2,343 | $ | 31,253 | $ | — | $ | 33,596 | |||||||||||||
December 31, 2012 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
Money market securities | $ | 901 | $ | — | $ | — | $ | 901 | |||||||||||||
Pre-refunded municipal bonds (1) | — | 21,878 | — | 21,878 | |||||||||||||||||
Corporate notes | — | 10,100 | — | 10,100 | |||||||||||||||||
Commercial paper | — | 2,614 | — | 2,614 | |||||||||||||||||
U.S. federal agency notes | — | 1,637 | — | 1,637 | |||||||||||||||||
Certificates of deposits | — | 491 | — | 491 | |||||||||||||||||
U.S. treasuries | — | 289 | — | 289 | |||||||||||||||||
Other municipals | — | 158 | — | 158 | |||||||||||||||||
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 December 31, 2013 are as follows: | |||||||||||||||||||||
Maturities by Period | |||||||||||||||||||||
Total | Less than | 1-5 years | 5-10 years | More than | |||||||||||||||||
1 year | 10 years | ||||||||||||||||||||
Maturities | $ | 33,596 | $ | 28,294 | $ | 5,302 | $ | — | $ | — | |||||||||||
Concentrations of Business and Credit Risk | |||||||||||||||||||||
A significant portion of the Company’s business depends on a limited number of large contracts. The loss of any large contract may result in loss of revenue and margin on a prospective basis. Financial instruments that potentially subject Digimarc to concentrations of credit risk consist primarily of cash and cash equivalents, marketable securities, and accounts receivable. Digimarc places its cash and cash equivalents with major banks and financial institutions and at times deposits may exceed insured limits. Other than cash used for operating needs, which may include short-term marketable securities with the Company’s principal banks, Digimarc’s investment policy limits its credit exposure to any one financial institution or type of financial instrument by limiting the maximum of 5% of its cash equivalents and marketable securities or $1,000, whichever is greater, to be invested in any one issuer except for the U.S. government, U.S. federal agencies and U.S. backed securities, which have no limits, at the time of purchase. The Company’s investment policy also limits its credit exposure by limiting the maximum of 40% of its cash equivalents and marketable securities, or $15,000, whichever is greater, to be invested in any one industry category, (e.g., financial or energy industries), at the time of purchase. As a result, Digimarc’s credit risk associated with cash and cash equivalents and marketable securities is believed to be minimal. | |||||||||||||||||||||
Contingencies: | |||||||||||||||||||||
The Company evaluates all pending or threatened contingencies or commitments, if any, that are reasonably likely to have a material adverse effect on the Company’s operations or financial position. The Company assesses the probability of an adverse outcome and determines if it is remote, reasonably possible or probable as defined in accordance with the provisions of ASC 450 “Contingencies.” If information available prior to the issuance of the financial statements indicates that it is probable that an asset has been impaired or a liability has been incurred at the date of the financial statements, and the amount of the loss, or the range of probable loss can be reasonably estimated, then the loss is accrued and charged to operations. If no accrual is made for a loss contingency because one or both of the conditions pursuant to ASC 450 are not met, but the probability of an adverse outcome is at least reasonably possible, the Company will disclose the nature of the contingency and provide an estimate of the possible loss or range of loss, or state that such an estimate cannot be made. | |||||||||||||||||||||
Equity Method Investments | |||||||||||||||||||||
The Company accounts for its joint ventures under the equity method of accounting pursuant to ASC 323 “Investments—Equity Method and Joint Ventures.” Under the equity method, investments are carried at cost, plus or minus the Company’s proportionate share, based on present ownership interests, of: (a) the investee’s profit or loss after the date of acquisition; (b) changes in the Company’s equity that have not been recognized in the investee’s profit or loss; and (c) certain other adjustments. Distributions received from the investee (such as dividends) reduce the carrying amount of the investment. | |||||||||||||||||||||
Goodwill | |||||||||||||||||||||
The Company accounts for business combinations under the acquisition method of accounting in accordance with ASC 805, “Business Combinations,” where the total purchase price is allocated to the tangible and identified intangible assets acquired and liabilities assumed based on their estimated fair values. The purchase price is allocated using the information currently available, and may be adjusted, up to one year from acquisition date, after obtaining more information regarding, among other things, asset valuations, liabilities assumed and revisions to preliminary estimates. | |||||||||||||||||||||
Contingent consideration is recorded at the acquisition date based upon the estimated fair value of the contingent payments. The fair value of the contingent consideration is re-measured each reporting period with any adjustments in fair value being recognized in earnings from operations. | |||||||||||||||||||||
The purchase price in excess of the fair value of the tangible and identified intangible assets acquired less liabilities assumed is recognized as 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 their carrying value. The Company operates as a single reporting unit. The Company estimated the fair value of its single reporting unit using a market approach, which takes into account the Company’s 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. | |||||||||||||||||||||
Impairment of Long-Lived Assets | |||||||||||||||||||||
The Company assesses long-lived assets for impairment whenever events or changes in circumstances indicated that the carrying amount of an asset may not be recoverable, in accordance with the provisions of ASC 360 “Property, Plant and Equipment.” This statement requires that long-lived assets, including definite-lived intangible assets, be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the assets to future net undiscounted cash flows expected to be generated by the assets over their remaining useful life. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Fair value is determined based on discounted cash flows or appraised values, depending on the nature of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. As of December 31, 2013, there have been no such impairment losses. | |||||||||||||||||||||
Research and Development | |||||||||||||||||||||
Research and development costs are expensed as incurred in accordance with ASC 730 “Research and Development.” | |||||||||||||||||||||
Software Development Costs | |||||||||||||||||||||
Under ASC 985 “Software,” software development costs are to be capitalized beginning when a product’s technological feasibility has been established and ending when a product is made available for general release to customers. To date, the establishment of technological feasibility of the Company’s products has occurred shortly before general release and, therefore, software development costs qualifying for capitalization have been immaterial. Accordingly, the Company has not capitalized any software development costs and has charged all such costs to research and development expense. | |||||||||||||||||||||
Patent Costs | |||||||||||||||||||||
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 award date, which varies depending on the pendency period of the application, generally approximating seventeen years. Capitalized patent costs, also referred to as patent prosecution costs, include internal legal labor, professional legal fees, government filing fees and translation fees related to expanding the Company’s patent portfolio. | |||||||||||||||||||||
Costs associated with the maintenance and annuity fees of patents are accounted for as prepaid assets at the time of payment and amortized over the shorter of the maintenance period or remaining life of the related patent. | |||||||||||||||||||||
Revenue Recognition | |||||||||||||||||||||
See Note 2 for detail disclosures of the Company’s revenue recognition policy. | |||||||||||||||||||||
Stock-Based Compensation | |||||||||||||||||||||
The Company accounts for stock-based compensation in accordance with ASC 718 “Compensation—Stock Compensation,” which requires the measurement and recognition of compensation for all stock-based awards made to employees and directors including stock options and restricted stock based on estimated fair values. | |||||||||||||||||||||
For stock option awards, the Company uses the Black-Scholes option pricing model as its method of valuation. The Company’s determination of the fair value on the date of grant is affected by its stock price as well as assumptions regarding a number of subjective variables. These variables include, but are not limited to, the expected life of the award, the Company’s expected stock price volatility over the term of the award, the risk-free interest rate and the expected dividend yield. Although the fair value of stock-based awards is determined in accordance with ASC 718 and SAB No. 107 “Shared-Based Payment,” the Black-Scholes option pricing model requires the input of subjective assumptions, and other reasonable assumptions could provide differing results. | |||||||||||||||||||||
The fair value of restricted stock awards granted 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 of the related restricted stock using the straight-line method. | |||||||||||||||||||||
Income Taxes | |||||||||||||||||||||
The Company accounts for income taxes in accordance with ASC 740 “Income Taxes” utilizing the asset and liability method. Under the asset and liability method, deferred income taxes reflect the future tax consequences of differences between the tax basis of assets and liabilities and their financial reporting amounts. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period of enactment. | |||||||||||||||||||||
Valuation allowances are established when necessary to reduce deferred tax assets to the amount that is more likely than not expected to be realized. A valuation allowance is required for deferred tax assets if, based on available evidence, it is more likely than not that all or some portion of the asset will not be realized due to the inability to generate sufficient taxable income in the period and/or of the character necessary to utilize the benefit of the deferred tax asset. The more-likely-than-not criterion means the likelihood of realization is greater than 50 percent. When evaluating whether it is more likely than not that all or some portion of the deferred tax asset will not be realized, the Company evaluates all available evidence, both positive and negative, that may affect the realizability of deferred tax assets and that should be identified and considered in determining the appropriate amount of valuation allowance. | |||||||||||||||||||||
The Company is subject to federal and state income taxes within the U.S. and in the ordinary course of business, there are transactions and calculations where the ultimate tax determination is uncertain. The Company is also subject to withholding taxes in various foreign jurisdictions. The withholding taxes are computed by the customers and paid to foreign jurisdictions on its behalf. The Company reports a liability (or contra asset) for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. The Company recognizes interest and penalties, if any, related to the unrecognized tax benefits in income tax expense. | |||||||||||||||||||||
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 has adopted the provisions of this standard and noted no material impact on the Company’s financial condition or results of operations. |
Revenue_Recognition
Revenue Recognition | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Text Block [Abstract] | ' | |||
Revenue Recognition | ' | |||
(2) 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 license fees and/or 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 licenses, 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, licenses and subscriptions for which revenue has not been earned. |
Acquisition_of_Attributor_Corp
Acquisition of Attributor Corporation ("Attributor") | 12 Months Ended | ||||||||
Dec. 31, 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 of 2013 and resulted in no changes to the purchase price allocation. | |||||||||
Total purchase price | $ | 5,632 | |||||||
Less: Estimated fair value of net tangible assets acquired and (liabilities assumed): | |||||||||
Cash and cash equivalents | $ | 350 | |||||||
Trade accounts receivable, net | 527 | ||||||||
Other current assets | 18 | ||||||||
Property and equipment, net | 102 | ||||||||
Deferred tax assets | 1,225 | ||||||||
Accounts payable and other accrued liabilities | (499 | ) | |||||||
Deferred revenue | (225 | ) | |||||||
Less: Estimated fair value of identifiable intangible assets acquired: | |||||||||
Existing technology | 1,560 | ||||||||
Customer relationships | 290 | ||||||||
Backlog | 760 | ||||||||
Tradenames | 290 | ||||||||
Non-solicitation agreements | 120 | ||||||||
Goodwill | $ | 1,114 | |||||||
The goodwill is not deductible for tax purposes. Key factors that make up the goodwill created by the transaction include knowledge and experience of the acquired workforce and infrastructure and expected synergies from the combination of operations. | |||||||||
The Company recorded a $190 liability in the purchase price allocation reflecting the estimated fair value of the contingent merger consideration on the acquisition date, which was presented in 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. The reversal of the $190 liability is reflected as a reduction in general and administrative expense within the consolidated statements of operations for the year ended December 31, 2013. The contingency period ended on December 31, 2013 with $0 contingent merger consideration being earned. |
Patent_Licensing_Arrangement_w
Patent Licensing Arrangement with Intellectual Ventures | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Text Block [Abstract] | ' | |||
Patent Licensing Arrangement with Intellectual Ventures | ' | |||
(4) Patent Licensing Arrangement with Intellectual Ventures | ||||
On October 5, 2010, the Company entered into a patent licensing arrangement with IV Digital Multimedia Inventions, LLC, a Delaware limited liability company affiliated with Intellectual Ventures (“IV”), pursuant to which the Company granted an exclusive license to sublicense, subject to pre-existing encumbrances and a grant-back license, 597 patents and 288 patent applications held by the Company. As of December 31, 2013, there are approximately 716 patents and 59 patent applications exclusively licensed to IV. | ||||
The Company also assigned to IV the related causes of action and other enforcement rights and IV has the sole right, but not the obligation, to prepare, file, prosecute, maintain, defend and enforce the licensed patents at its expense. IV may at any time abandon its license or other rights to all or any of the licensed patents, in which case, certain licensed patents that IV opts to release revert back to the Company. | ||||
The Company also entered into a patent rights agreement pursuant to which the Company granted IV an exclusive call option to purchase all or any number of the licensed patents and/or patent applications. The agreement further provides for the grant by IV to the Company the right to put all or any number of patents within the licensed patents to IV if IV threatens or commences an action or proceeding with respect to infringement of a licensed patent. | ||||
The financial aspects of the IV agreement for the Company include: | ||||
• | a license fee of $36 million, paid to the Company in increasing quarterly installments over three years ($11,400 in 2011, $12,550 in 2012 and $6,775 in 2013); | |||
• | 20% of the profits generated from the IV licensing program, which profits consist of sublicensing and other monetization revenue less specified expenses, including the license fee; | |||
• | IV assumes responsibility for approximately $1 million per year in prosecution and maintenance costs previously borne by the Company; | |||
• | a minimum of $4 million of paid support services over five years from the Company to assist IV in maximizing the value of the licensed assets; and | |||
• | a royalty-free grant-back license to the licensed patents to continue the Company’s existing business related to those assets, including maintaining and renewing existing patent licenses, and providing software and services. | |||
The payment terms extend beyond the Company’s normal 30 to 60 day payment terms, thus the license revenue was recognized when the installments were due, and the support services are recognized as the services are performed. |
Segment_Information
Segment Information | 12 Months Ended | ||||||||||||
Dec. 31, 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 to 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: | |||||||||||||
Year Ended | Year Ended | Year Ended | |||||||||||
December 31, 2013 | December 31, 2012 | December 31, 2011 | |||||||||||
Domestic | $ | 18,857 | $ | 30,736 | $ | 22,660 | |||||||
International (1) | 16,107 | 13,639 | 13,379 | ||||||||||
Total | $ | 34,964 | $ | 44,375 | $ | 36,039 | |||||||
-1 | Revenue from the Central Banks, consisting 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: | |||||||||||||
Year Ended | Year Ended | Year Ended | |||||||||||
December 31, 2013 | December 31, 2012 | December 31, 2011 | |||||||||||
Central Banks | 33 | % | 23 | % | 27 | % | |||||||
IV | 22 | % | 30 | % | 33 | % | |||||||
The Nielsen Company (“Nielsen”) | 11 | % | * | 11 | % | ||||||||
Verance Corporation (“Verance”) | * | 27 | % | * | |||||||||
* | Less than 10% | ||||||||||||
On May 15, 2013, IV made the last quarterly payment of the license 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 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 | 12 Months Ended | ||||||||||||
Dec. 31, 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 | |||||||||||||
Stock Options | |||||||||||||
Valuation and Amortization Method. The Company estimates the fair value of stock options granted using the Black-Scholes option valuation model. 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 the awards 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 by 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 years ended December 31, 2013 and 2012. | |||||||||||||
The Company records stock-based compensation expense for stock option awards only for those awards that are expected to vest. | |||||||||||||
A summary of the weighted average assumptions and results for options granted are as follows: | |||||||||||||
Year Ended | Year Ended | Year Ended | |||||||||||
December 31, | December 31, | December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||||
Expected life (in years) | N/A | N/A | 5.28 – 5.75 | ||||||||||
Expected volatility | N/A | N/A | 42% – 44% | ||||||||||
Risk-free interest rate | N/A | N/A | 1.0% – 2% | ||||||||||
Expected dividend yield | N/A | N/A | 0% | ||||||||||
Year Ended | Year Ended | Year Ended | |||||||||||
December 31, | December 31, | December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||||
Fair value of stock options granted | $ | — | $ | — | $ | 2,464 | |||||||
Restricted Stock | |||||||||||||
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 | |||||||||||||
Year Ended | Year Ended | Year Ended | |||||||||||
December 31, 2013 | December 31, 2012 | December 31, 2011 | |||||||||||
Stock-based compensation: | |||||||||||||
Cost of revenue | $ | 533 | $ | 603 | $ | 593 | |||||||
Sales and marketing | 422 | 409 | 302 | ||||||||||
Research, development and engineering | 1,116 | 840 | 560 | ||||||||||
General and administrative | 2,183 | 3,148 | 2,568 | ||||||||||
Intellectual property | 248 | 256 | 193 | ||||||||||
Stock compensation expense | 4,502 | 5,256 | 4,216 | ||||||||||
Capitalized to patent costs | 137 | 108 | 65 | ||||||||||
Total stock-based compensation | $ | 4,639 | $ | 5,364 | $ | 4,281 | |||||||
The following table sets forth total unrecognized compensation cost related to non-vested stock-based awards granted under all equity compensation plans, including stock options and restricted stock: | |||||||||||||
Year Ended | Year Ended | Year Ended | |||||||||||
December 31, | December 31, | December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||||
Unrecognized compensation costs | $ | 9,711 | $ | 8,333 | $ | 9,463 | |||||||
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 December 31, 2013 for stock options and restricted stock over a weighted average periods through December 2017 as follows: | |||||||||||||
Stock | Restricted | ||||||||||||
Options | Stock | ||||||||||||
Weighted average period | 0.75 years | 1.66 years |
Earnings_Per_Common_Share
Earnings Per Common Share | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Earnings Per Common Share | ' | ||||||||||||
(7) Earnings 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 potentially dilutive effect of stock options. The following table reconciles earnings (loss) per common share for the years ended December 31, 2013 and 2012: | |||||||||||||
Year Ended | Year Ended | ||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||
Basic Earnings (Loss) per Common Share: | |||||||||||||
Numerator: | |||||||||||||
Net income (loss) | $ | (507 | ) | $ | 8,272 | ||||||||
Distributed earnings to common shares | 3,013 | 2,214 | |||||||||||
Distributed earnings to participating securities | 189 | 130 | |||||||||||
Total distributed earnings | 3,202 | 2,344 | |||||||||||
Undistributed earnings (loss) allocable to common shares | (3,709 | ) | 5,639 | ||||||||||
Undistributed earnings allocable to participating securities | — | 289 | |||||||||||
Total undistributed earnings (loss) | (3,709 | ) | 5,928 | ||||||||||
Earnings (loss) to common shares—basic | $ | (696 | ) | $ | 7,853 | ||||||||
Denominator: | |||||||||||||
Weighted average common shares outstanding—basic (in thousands) | 6,866 | 6,757 | |||||||||||
Basic earnings (loss) per common share | $ | (0.10 | ) | $ | 1.16 | ||||||||
Year Ended | Year Ended | ||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||
Diluted Earnings (Loss) per Common Share: | |||||||||||||
Numerator: | |||||||||||||
Earnings (loss) to common shares— basic | $ | (696 | ) | $ | 7,853 | ||||||||
Undistributed earnings allocated to participating securities | — | 289 | |||||||||||
Undistributed earnings reallocated to participating securities | — | (280 | ) | ||||||||||
Earnings (loss) to common shares—diluted | $ | (696 | ) | $ | 7,862 | ||||||||
Denominator: | |||||||||||||
Weighted average common shares outstanding—basic (in thousands) | 6,866 | 6,757 | |||||||||||
Dilutive effect of stock options | — | 232 | |||||||||||
Weighted average common shares outstanding—dilutive (in thousands) | 6,866 | 6,989 | |||||||||||
Diluted earnings (loss) per common share | $ | (0.10 | ) | $ | 1.12 | ||||||||
There were 439,193 common stock equivalents related to stock options that were anti-dilutive and excluded from diluted earnings per common share for the year ended December 31, 2013 as the Company incurred a net loss for the period. | |||||||||||||
There were 215,000 common stock equivalents related to stock options that were anti-dilutive and excluded from diluted earnings per common share for the years ended December 31, 2012 as their exercise prices were higher than the average market price of the underlying common stock for the period. | |||||||||||||
Earnings per common share was calculated under the treasury stock method in prior periods because the impact of applying the two-class method for computing basic and diluted earnings per common share was not material. Basic and diluted earnings per common share were computed using the weighted average number of common shares outstanding during each period, with diluted earnings per common share adjusted for the potentially dilutive effect of common shares. | |||||||||||||
Year Ended December 31, 2011 | |||||||||||||
Income | Shares | Per | |||||||||||
(Numerator) | (in thousands) | Share | |||||||||||
(Denominator) | Amount | ||||||||||||
Basic EPS | |||||||||||||
Income available to common shareholders | $ | 5,656 | 6,741 | $ | 0.84 | ||||||||
Effect of Dilutive Securities | |||||||||||||
Options | 393 | ||||||||||||
Restricted stock | 296 | ||||||||||||
Diluted EPS | |||||||||||||
Income available to common shareholders | $ | 5,656 | 7,430 | $ | 0.76 | ||||||||
There were 136,957 common stock equivalents related to stock options that were anti-dilutive and excluded from diluted earnings per common share for the year ended December 31, 2011 as 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 | 12 Months Ended | ||||||||
Dec. 31, 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. | |||||||||
December 31, 2013 | December 31, 2012 | ||||||||
Trade accounts receivable | $ | 5,883 | $ | 4,216 | |||||
Allowance for doubtful accounts | (45 | ) | — | ||||||
Trade accounts receivable, net | $ | 5,838 | $ | 4,216 | |||||
Unpaid deferred revenue included in accounts receivable | $ | 3,319 | $ | 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 each reporting period. 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 are included in trade accounts receivable are billed in accordance with the provisions of the contracts with the Company’s customers. Unpaid deferred revenue from the Company’s cash-basis customers are not included in trade accounts receivable nor deferred revenue. | |||||||||
Major customers | |||||||||
Customers who accounted for more than 10% of trade accounts receivable, net are as follows: | |||||||||
December 31, 2013 | December 31, 2012 | ||||||||
Central Banks | 47 | % | 30 | % | |||||
Nielsen | 20 | % | 24 | % | |||||
Civolution | 10 | % | 14 | % |
Property_and_Equipment
Property and Equipment | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Property Plant And Equipment [Abstract] | ' | ||||||||||||
Property and Equipment | ' | ||||||||||||
(9) Property and Equipment | |||||||||||||
Property and Equipment | |||||||||||||
Property and equipment are stated at cost. 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 seven years. Leasehold improvements are amortized using the straight-line method over the shorter of the estimated useful life or the lease term. | |||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||
Office furniture and fixtures | $ | 762 | $ | 420 | |||||||||
Equipment | 3,127 | 1,886 | |||||||||||
Leasehold improvements | 1,137 | 1,083 | |||||||||||
Gross property and equipment | 5,026 | 3,389 | |||||||||||
Less accumulated depreciation and amortization | (2,631 | ) | (1,936 | ) | |||||||||
Property and equipment, net | $ | 2,395 | $ | 1,453 | |||||||||
Leases | |||||||||||||
Future minimum lease payments under non-cancelable operating leases are as follows: | |||||||||||||
Year ending December 31: | Operating | ||||||||||||
Leases | |||||||||||||
2014 | $ | 1,074 | |||||||||||
2015 | 1,112 | ||||||||||||
2016 | 808 | ||||||||||||
2017 | 3 | ||||||||||||
2018 | — | ||||||||||||
Thereafter | — | ||||||||||||
Total minimum lease payments | $ | 2,997 | |||||||||||
Rent expense on the operating leases are as follows: | |||||||||||||
Year Ended | Year Ended | Year Ended | |||||||||||
December 31, | December 31, | December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||||
Rent expense | $ | 925 | $ | 776 | $ | 866 |
Intangibles
Intangibles | 12 Months Ended | ||||||||||||
Dec. 31, 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 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. | |||||||||||||
Estimated Life | December 31, 2013 | December 31, 2012 | |||||||||||
(years) | |||||||||||||
Capitalized patent costs | 17-20 | $ | 5,157 | $ | 3,973 | ||||||||
Intangible assets acquired: | |||||||||||||
Purchased patents and intellectual property | 10-Mar | 250 | 250 | ||||||||||
Existing technology | 5 | 1,560 | 1,560 | ||||||||||
Customer relationships | 7 | 290 | 290 | ||||||||||
Backlog | 2 | 760 | 760 | ||||||||||
Tradenames | 3 | 290 | 290 | ||||||||||
Non-solicitation agreements | 1 | 120 | 120 | ||||||||||
Gross intangible assets | 8,427 | 7,243 | |||||||||||
Accumulated amortization | (1,718 | ) | (522 | ) | |||||||||
Intangible assets, net | $ | 6,709 | $ | 6,721 | |||||||||
The aggregate amortization expense recorded in the years ended December 31, 2013, 2012 and 2011 was $1,196, $315 and $124, respectively. For intangible assets recorded at December 31, 2013, the estimated future aggregate amortization expense for the years ending December 31, 2014 through 2018 is approximately: | |||||||||||||
Year ending December 31: | Amortization | ||||||||||||
Expense | |||||||||||||
2014 | $ | 1,012 | |||||||||||
2015 | 640 | ||||||||||||
2016 | 507 | ||||||||||||
2017 | 479 | ||||||||||||
2018 | 184 |
Shareholders_Equity
Shareholders' Equity | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||||||
Shareholders' Equity | ' | ||||||||||||||||||||||||
(11) Shareholders’ Equity | |||||||||||||||||||||||||
Preferred Stock | |||||||||||||||||||||||||
In June 2008, the Board of Directors authorized 2,500,000 shares of preferred stock, par value $0.001 per share. The Board of Directors has the authority to issue the undesignated preferred stock in one or more series and to determine the powers, preferences and rights and the qualifications, limitations or restrictions granted to or imposed upon any wholly unissued series of undesignated preferred stock and to fix the number of shares constituting any series and the designation of such series, without any further vote or action by the shareholders. The issuance of preferred stock may have the effect of delaying, deferring or preventing a change of control of the Company without further action by shareholders and may adversely affect the voting and other rights of the holders of common 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. | |||||||||||||||||||||||||
Common Stock | |||||||||||||||||||||||||
In June 2008, the Board of Directors authorized 50,000,000 shares of common stock, par value $0.001 per share. The holders of Digimarc common stock are entitled to one vote for each share held of record on all matters submitted to a vote of its shareholders, including the election of directors. Subject to preferences that may be granted to any then outstanding preferred stock, holders of common stock are entitled to receive ratably those dividends as may be declared by the Board of Directors out of funds legally available for such purpose, as well as any distributions to the Company’s shareholders. The Series A Preferred does not have any dividend preferences. In the event of the Company’s liquidation, dissolution or winding up, holders of common stock are entitled to share ratably in all of the Company’s assets remaining after payment of liabilities and the liquidation preference of any then outstanding preferred stock. Holders of common stock have no preemptive or other subscription or conversion rights. There are no redemption or sinking fund provisions applicable to the common stock. All outstanding shares of common stock are fully paid and non-assessable. | |||||||||||||||||||||||||
Stock Incentive Plan | |||||||||||||||||||||||||
In July 2008 the Company’s Board of Directors initially adopted the 2008 Incentive Plan, or the 2008 Plan. The 2008 Plan provides for the grant of stock options, stock appreciation rights, stock awards, restricted stock, stock units, performance shares, performance units, and cash-based awards, which may be granted to officers, directors, employees, consultants, agents, advisors and independent contractors who provide services to the Company and its affiliated companies. | |||||||||||||||||||||||||
The 2008 Plan authorizes the issuance of up to 2,500,000 shares of common stock. The shares authorized under the 2008 Plan are subject to adjustment in the event of a stock split, stock dividend, recapitalization or similar event. Shares issued under the 2008 Plan will consist of authorized and unissued shares or shares held by the Company as treasury shares. If an award granted under the 2008 Plan lapses, expires, terminates or is forfeited or surrendered without having been fully exercised or without the issuance of all the shares subject to the award, the shares covered by that award will again be available for use under the 2008 Plan. Shares that are (i) tendered by a participant or retained by the Company as payment for the purchase price of an award or to satisfy tax withholding obligations or (ii) covered by an award that is settled in cash, or in some manner that some or all of the shares covered by the award are not issued, will be available for issuance under the 2008 Plan. In addition, awards granted as substitute awards in connection with acquisition transactions will not reduce the number of shares authorized for issuance under the 2008 Plan. | |||||||||||||||||||||||||
Stock Options | |||||||||||||||||||||||||
As of December 31, 2013, under all of the Company’s stock-based compensation plans, equity awards to purchase an additional 609,168 shares were authorized for future grants under the plans. The Company issues new shares upon option exercises. | |||||||||||||||||||||||||
Options granted, exercised and canceled under the stock incentive plan are summarized as follows: | |||||||||||||||||||||||||
Number of | Weighted Average | Weighted Average | Aggregate | ||||||||||||||||||||||
Shares | Exercise Price | Grant Date | Intrinsic | ||||||||||||||||||||||
Fair Value | Value | ||||||||||||||||||||||||
Options outstanding, December 31, 2010 | 993,491 | $ | 10.47 | $ | 6.55 | ||||||||||||||||||||
Granted | 215,000 | $ | 27.84 | $ | 11.46 | ||||||||||||||||||||
Exercised | (169,420 | ) | $ | 9.75 | $ | 6.33 | |||||||||||||||||||
Canceled | (10,833 | ) | $ | 9.64 | $ | 6.28 | |||||||||||||||||||
Options outstanding, December 31, 2011 | 1,028,238 | $ | 14.23 | $ | 7.61 | ||||||||||||||||||||
Granted | — | — | — | ||||||||||||||||||||||
Exercised | (172,250 | ) | $ | 9.64 | $ | 6.29 | |||||||||||||||||||
Canceled | — | — | — | ||||||||||||||||||||||
Options outstanding, December 31, 2012 | 855,988 | $ | 15.16 | $ | 7.88 | ||||||||||||||||||||
Granted | — | — | — | ||||||||||||||||||||||
Exercised | (42,050 | ) | $ | 9.64 | $ | 6.3 | |||||||||||||||||||
Canceled | (416 | ) | $ | 14.99 | $ | 8.12 | |||||||||||||||||||
Options outstanding, December 31, 2013 | 813,522 | $ | 15.44 | $ | 7.96 | $ | 4,950 | ||||||||||||||||||
Options exercisable, December 31, 2013 | 740,781 | $ | 14.3 | $ | 4,942 | ||||||||||||||||||||
Options unvested, December 31, 2013 | 72,741 | $ | 27.06 | $ | 8 | ||||||||||||||||||||
The aggregate intrinsic value is based on the closing price of $19.26 per share of Digimarc common stock on December 31, 2013, which would have been received by the optionees had all of the options with exercise prices less than $19.26 per share been exercised on that date. | |||||||||||||||||||||||||
The following table summarizes information about stock options outstanding at December 31, 2013: | |||||||||||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||||||||||
Exercise Price | Number | Remaining | Weighted | Number | Remaining | Weighted | |||||||||||||||||||
Outstanding | Contractual | Average | Exercisable | Contractual | Average | ||||||||||||||||||||
Life (Years) | Price | Life (Years) | Price | ||||||||||||||||||||||
$9.64 – $9.91 | 466,022 | 4.73 | $ | 9.66 | 466,022 | 4.73 | $ | 9.66 | |||||||||||||||||
$14.99 – $18.01 | 132,500 | 5.33 | $ | 15.67 | 130,626 | 5.32 | $ | 15.68 | |||||||||||||||||
$24.35 – $30.01 | 215,000 | 7.58 | $ | 27.84 | 144,133 | 7.55 | $ | 28.07 | |||||||||||||||||
$9.64 – $30.01 | 813,522 | 5.58 | $ | 15.44 | 740,781 | 5.39 | $ | 14.3 | |||||||||||||||||
Restricted Stock | |||||||||||||||||||||||||
The Compensation Committee of the Board of Directors has awarded restricted stock shares under the Company’s 2008 Plan to certain employees. The shares subject to the restricted stock awards will vest over a certain period, usually four years, following the date of the grant. Specific terms of the restricted stock awards are governed by Restricted Stock Agreements between the Company and the award recipients. | |||||||||||||||||||||||||
The following table reconciles the unvested balance of restricted stock: | |||||||||||||||||||||||||
Number of | Weighted | ||||||||||||||||||||||||
Shares | Average | ||||||||||||||||||||||||
Grant Date | |||||||||||||||||||||||||
Fair Value | |||||||||||||||||||||||||
Unvested balance, December 31, 2010 | 197,760 | $ | 14.25 | ||||||||||||||||||||||
Granted | 190,180 | $ | 29.12 | ||||||||||||||||||||||
Vested | (73,110 | ) | $ | 20.82 | |||||||||||||||||||||
Canceled | (18,120 | ) | $ | 19.24 | |||||||||||||||||||||
Unvested balance, December 31, 2011 | 296,710 | $ | 21.51 | ||||||||||||||||||||||
Granted | 202,340 | $ | 22.51 | ||||||||||||||||||||||
Vested | (117,667 | ) | $ | 22.52 | |||||||||||||||||||||
Canceled | (12,300 | ) | $ | 22.05 | |||||||||||||||||||||
Unvested balance, December 31, 2012 | 369,083 | $ | 21.72 | ||||||||||||||||||||||
Granted | 388,190 | $ | 20.15 | ||||||||||||||||||||||
Vested | (220,514 | ) | $ | 23.21 | |||||||||||||||||||||
Canceled | (88,633 | ) | $ | 20.35 | |||||||||||||||||||||
Unvested balance, December 31, 2013 | 448,126 | $ | 19.89 | ||||||||||||||||||||||
Defined_Contribution_Pension_P
Defined Contribution Pension Plan | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Compensation And Retirement Disclosure [Abstract] | ' | ||||||||||||
Defined Contribution Pension Plan | ' | ||||||||||||
(12) Defined Contribution Pension Plan | |||||||||||||
The Company sponsors an employee savings plan (the “Plan”) which qualifies as a deferred salary arrangement under Section 401(k) of the Internal Revenue Code. The Plan combines both an employee savings plan and company matching plan into one plan under Section 401(k), including a 401(k) Roth option. Employees become eligible to participate in the Plan at the beginning of the month following the employee’s hire date. Employees may contribute up to 75% of their pay to the Plan, subject to the limitations of the Internal Revenue Code. Company matching contributions are mandatory under the Plan. | |||||||||||||
The Company made matching contributions in the aggregate amount as follows: | |||||||||||||
Year Ended | Year Ended | Year Ended | |||||||||||
December 31, | December 31, | December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||||
Matching contributions | $ | 396 | $ | 366 | $ | 349 |
Joint_Venture_and_Related_Part
Joint Venture and Related Party Transactions | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Related Party Transactions [Abstract] | ' | ||||||||||||
Joint Venture and Related Party Transactions | ' | ||||||||||||
(13) Joint Venture and Related Party Transactions | |||||||||||||
In June 2009, the Company entered into two joint venture agreements with Nielsen to launch two new companies; TVaura LLC (in which Digimarc holds a 51% ownership interest) and TVaura Mobile LLC (in which Digimarc holds a 49% ownership interest). The two joint venture agreements and a revised patent license agreement expanded and replaced the previous license and services agreement between the Company and Nielsen that had been in operation since late 2007. Under the joint venture agreements, the Company and Nielsen agreed to work together to develop new products and services, including the expansion and deployment of those products and services that were in development under the prior agreement. | |||||||||||||
Under the terms of the revised patent license agreement, Nielsen agreed to pay Digimarc $18,750 during the period from July 2009 through January 2014, and Digimarc granted to Nielsen a non-exclusive license to Digimarc’s patents for use within Nielsen’s business. Unless earlier terminated in accordance with the agreement, the license will continue until the expiration of the last to expire of the licensed patents. The payment terms extend beyond the Company’s normal 30 to 60 day payment terms, thus the license revenue is being recognized when the installments are due. | |||||||||||||
The Company provided technical and development services to the joint ventures totaling $6,848 during the period July 2009 through March 2012. Service revenue was recognized as the services were performed. | |||||||||||||
The Company and Nielsen each made initial cash contributions aggregating $3,500 payable quarterly from July 2009 through July 2011 to fund TVaura LLC and initial cash contributions aggregating $2,500 payable quarterly from July 2009 through July 2011 to fund TVaura Mobile LLC. | |||||||||||||
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 and contributed $796 to TVaura Mobile LLC 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 December 31, 2013, both Digimarc and Nielsen continued to assess the market opportunities of each of the joint ventures. | |||||||||||||
The investment in joint ventures balance was $0 as of December 31, 2013 and 2012. | |||||||||||||
Pursuant to the terms of the agreements and ASC 810 “Consolidation,” the joint ventures are not consolidated with the Company because the minority member has substantive participating rights, or veto rights, such that no member has majority control. | |||||||||||||
Related Party Transactions | |||||||||||||
Year Ended | Year Ended | Year Ended | |||||||||||
December 31, | December 31, | December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||||
TVaura LLC: | |||||||||||||
Capital contributions (return of capital) | $ | — | $ | (104 | ) | $ | 1,200 | ||||||
Revenue (1) | $ | — | $ | — | $ | 2,640 | |||||||
TVaura Mobile LLC: | |||||||||||||
Capital contributions | $ | — | $ | 796 | $ | 900 | |||||||
Revenue (1) | $ | — | $ | 272 | $ | — | |||||||
Total: | |||||||||||||
Capital contributions, net | $ | — | $ | 692 | $ | 2,100 | |||||||
Revenue (1) | $ | — | $ | 272 | $ | 2,640 | |||||||
-1 | Technical and development services | ||||||||||||
Summarized financial data for TVaura LLC: | |||||||||||||
December 31, | December 31, | ||||||||||||
2013 | 2012 | ||||||||||||
Current assets | $ | — | $ | — | |||||||||
Noncurrent assets | $ | — | $ | — | |||||||||
Current liabilities | $ | — | $ | — | |||||||||
Noncurrent liabilities | $ | — | $ | — | |||||||||
Year Ended | Year Ended | Year Ended | |||||||||||
December 31, | December 31, | December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||||
Revenue | $ | — | $ | — | $ | — | |||||||
Gross profit | $ | — | $ | — | $ | — | |||||||
Operating expenses | $ | — | $ | 52 | $ | 2,699 | |||||||
Net loss from continuing operations | $ | — | $ | (52 | ) | $ | (2,699 | ) | |||||
The Company’s pro-rata share—net loss | $ | — | $ | (27 | ) | $ | (1,376 | ) | |||||
The Company’s gain on investment | $ | — | $ | 70 | $ | — | |||||||
Summarized financial data for TVaura Mobile LLC: | |||||||||||||
December 31, | December 31, | ||||||||||||
2013 | 2012 | ||||||||||||
Current assets | $ | 932 | $ | 937 | |||||||||
Noncurrent assets | $ | — | $ | — | |||||||||
Current liabilities | $ | 957 | $ | 957 | |||||||||
Noncurrent liabilities | $ | — | $ | — | |||||||||
Year Ended | Year Ended | Year Ended | |||||||||||
December 31, | December 31, | December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||||
Revenue | $ | — | $ | — | $ | 105 | |||||||
Gross profit | $ | — | $ | — | $ | 105 | |||||||
Operating expenses | $ | 5 | $ | 2,266 | $ | 2,848 | |||||||
Net loss from continuing operations | $ | (5 | ) | $ | (2,266 | ) | $ | (2,743 | ) | ||||
The Company’s pro-rata share—net loss | $ | — | $ | (1,100 | ) | $ | (1,338 | ) | |||||
The Company’s loss on investment | $ | — | $ | (50 | ) | $ | — |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Income Taxes | ' | ||||||||||||||||||||||||
(14) Income Taxes | |||||||||||||||||||||||||
The provision (benefit) for income taxes reflects current taxes, deferred taxes, and withholding taxes in certain foreign jurisdictions. The withholding taxes are computed by the Company’s customers and paid to foreign jurisdictions on the Company’s behalf. The effective tax rates for the years ended December 31, 2013 and 2012 were 78% and 39%, respectively. The effective tax rate of 78%, resulting in a tax benefit of $1.8 million, was due mainly to the retroactive extension of the 2012 and 2013 federal research and experimentation credits in January 2013. The Company will be able to carryback current year tax losses for refunds of taxes previously paid. | |||||||||||||||||||||||||
Components of tax expense (benefit) allocated to continuing operations include the following: | |||||||||||||||||||||||||
Year Ended | Year Ended | Year Ended | |||||||||||||||||||||||
December 31, | December 31, | December 31, | |||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Current: | |||||||||||||||||||||||||
Federal | $ | (1,420 | ) | $ | 4,699 | $ | 1,066 | ||||||||||||||||||
State | 1 | 570 | 3 | ||||||||||||||||||||||
Foreign | 5 | 1 | (20 | ) | |||||||||||||||||||||
Sub-total | (1,414 | ) | 5,270 | 1,049 | |||||||||||||||||||||
Deferred: | |||||||||||||||||||||||||
Federal | (204 | ) | 97 | (2,470 | ) | ||||||||||||||||||||
State | (178 | ) | 27 | (365 | ) | ||||||||||||||||||||
Foreign | — | — | — | ||||||||||||||||||||||
Sub-total | (382 | ) | 124 | (2,835 | ) | ||||||||||||||||||||
Total tax expense (benefit) | $ | (1,796 | ) | $ | 5,394 | $ | (1,786 | ) | |||||||||||||||||
The reconciliation of the statutory federal income tax rate to the Company’s effective income tax rate is as follows: | |||||||||||||||||||||||||
Year Ended | % | Year Ended | % | Year Ended | % | ||||||||||||||||||||
December 31, | December 31, | December 31, | |||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Income taxes computed at statutory rates | $ | (783 | ) | 34 | % | $ | 4,647 | 34 | % | $ | 1,316 | 34 | % | ||||||||||||
Increases (decreases) resulting from: | |||||||||||||||||||||||||
State income taxes, net of federal tax benefit | (301 | ) | 13 | % | 705 | 5 | % | 194 | 5 | % | |||||||||||||||
Federal and state research and experimentation credits | (918 | ) | 40 | % | (122 | ) | (1 | )% | (784 | ) | (20 | )% | |||||||||||||
Change in valuation allowance | 187 | (8 | )% | 12 | — | (2,581 | ) | (67 | )% | ||||||||||||||||
Transaction costs | — | — | 65 | 1 | % | — | — | ||||||||||||||||||
Impact of federal graduated rates | — | — | 39 | — | — | — | |||||||||||||||||||
Other | 19 | (1 | )% | 48 | — | 69 | 2 | % | |||||||||||||||||
Total | $ | (1,796 | ) | 78 | % | $ | 5,394 | 39 | % | $ | (1,786 | ) | (46 | )% | |||||||||||
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The tax effects of significant items comprising the Company’s deferred tax assets and deferred tax liabilities are as follows: | |||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Deferred tax assets: | |||||||||||||||||||||||||
Stock based compensation | $ | 2,305 | $ | 2,636 | |||||||||||||||||||||
Federal and state net operating losses | 3,153 | 1,900 | |||||||||||||||||||||||
Goodwill | 1,037 | 1,146 | |||||||||||||||||||||||
Accrued compensation | 22 | 50 | |||||||||||||||||||||||
Deferred rent | 158 | 170 | |||||||||||||||||||||||
Federal and state research and experimentation credits | 92 | — | |||||||||||||||||||||||
Other | 33 | — | |||||||||||||||||||||||
Total gross deferred tax assets | 6,800 | 5,902 | |||||||||||||||||||||||
Less valuation allowance | (371 | ) | (184 | ) | |||||||||||||||||||||
Net deferred tax assets | $ | 6,429 | $ | 5,718 | |||||||||||||||||||||
Deferred tax liabilities: | |||||||||||||||||||||||||
Patent expenditures | $ | (1,695 | ) | $ | (1,385 | ) | |||||||||||||||||||
Fixed asset differences | (461 | ) | (167 | ) | |||||||||||||||||||||
Intangible asset differences | (233 | ) | (506 | ) | |||||||||||||||||||||
Other | (16 | ) | (18 | ) | |||||||||||||||||||||
Total deferred tax liabilities | $ | (2,405 | ) | $ | (2,076 | ) | |||||||||||||||||||
Net deferred tax assets | $ | 4,024 | $ | 3,642 | |||||||||||||||||||||
In December 2012, the Company acquired 100% of the outstanding stock of Attributor in a non-taxable transaction. Due to Attributor’s history of losses and the inability to utilize Attributor losses to offset the Company’s income for state tax purposes, the Company concluded that it is not more likely than not that the Attributor state deferred tax assets will be realized and a full valuation allowance has been recorded on the state deferred tax assets of Attributor. The valuation allowance recorded as of December 31, 2013 and 2012 is $371 and $184, respectively, all of which relates to the state deferred tax assets of Attributor. The change in valuation allowance for the years ended December 31, 2013, 2012 and 2011 was $187, $184 and $0, respectively. | |||||||||||||||||||||||||
As of December 31, 2013, the Company has federal and state net operating loss carry-forwards of $7,455 and $11,293, respectively, which have a carry-forward of 7 – 20 years depending on the jurisdiction. The deferred tax assets, before valuation allowance, for federal and state net operating loss carryforwards acquired in the Attributor acquisition have been reduced to the amount of losses allowed to be utilized in the post-acquisition period before expiration after considering the applicable limitations of IRC Sec. 382. As of December 31, 2013, the Company has federal and state research and experimental tax credits of $1,167 and $156, respectively, which have a carry-forward of 5 – 20 years depending on the jurisdiction and for which the benefits upon usage will be recorded in additional paid-in capital from the effects of stock options. As of December 31, 2013, the Company has foreign tax credits of $55 which have a carry-forward of 6 – 9 years and for which the benefits upon usage will be recorded in additional paid-in capital from the effects of stock options. | |||||||||||||||||||||||||
The Company records accrued interest and penalties associated with uncertain tax positions in income tax expense in the consolidated statements of operations. For the years ended December 31, 2013, 2012 and 2011, the Company recognized accrued interest and penalties associated with uncertain tax positions of $3, $0 and $0, respectively. The Company does not anticipate any of its unrecognized benefits will significantly increase or decrease within the next 12 months. | |||||||||||||||||||||||||
A summary reconciliation of the Company’s uncertain tax positions is as follows: | |||||||||||||||||||||||||
For the Year | For the Year | For the Year | |||||||||||||||||||||||
Ended | Ended | Ended | |||||||||||||||||||||||
December 31, | December 31, | December 31, | |||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Beginning balance | $ | 108 | $ | 102 | $ | — | |||||||||||||||||||
Addition for current year tax positions | 105 | 6 | 30 | ||||||||||||||||||||||
Addition for prior year tax positions | 6 | — | 72 | ||||||||||||||||||||||
Settlements with taxing authorities | — | — | — | ||||||||||||||||||||||
Lapsing of statutes of limitations | — | — | — | ||||||||||||||||||||||
Ending balance | $ | 219 | $ | 108 | $ | 102 | |||||||||||||||||||
The balance for uncertain tax positions is classified as a long-term liability on the consolidated balance sheets. All uncertain tax positions if reversed would affect the effective tax rate. | |||||||||||||||||||||||||
The Company is subject to examination in the federal jurisdiction for the 2010 thru 2013 tax years and other state jurisdictions for the 2009 thru 2013 tax years. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2013 | |
Commitments And Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
(15) 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. | |
The Company’s 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 recently been set and trial is scheduled for October 2015. Blue Spike has not alleged a specific amount of monetary damages in its complaint. | |
In May 2013, the Company instituted an arbitration proceeding against IV regarding IV’s calculation of potential profit sharing payments under the Company’s license agreement with IV. The action was settled on January 17, 2014. The settlement did not result in profit sharing payments to the Company. The next profit participation report from IV is due to us in March 2014, covering 2013 licensing activities. | |
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 | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Text Block [Abstract] | ' | ||||||||||||
Stock Repurchases | ' | ||||||||||||
(16) Stock Repurchases | |||||||||||||
Summary of common stock shares repurchased: | |||||||||||||
Year Ended | Year Ended | Year Ended | |||||||||||
December 31, | December 31, | December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||||
Private transaction | — | — | 552,536 | ||||||||||
Repurchase program | — | 50,900 | 104,577 | ||||||||||
Exercise of stock options | 18,283 | 69,272 | 48,432 | ||||||||||
Tax withholding obligations on stock options | 8,644 | 39,005 | 46,401 | ||||||||||
Tax withholding obligations on restricted shares | 81,967 | 42,785 | 24,953 | ||||||||||
Total | 108,894 | 201,962 | 766,899 | ||||||||||
Value of common stock shares repurchased: | |||||||||||||
Year Ended | Year Ended | Year Ended | |||||||||||
December 31, | December 31, | December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||||
Private transaction | $ | — | $ | — | $ | 14,927 | |||||||
Repurchase program | — | 1,201 | 3,099 | ||||||||||
Exercise of stock options | 405 | 1,660 | 1,651 | ||||||||||
Tax withholding obligations on stock options | 194 | 949 | 1,658 | ||||||||||
Tax withholding obligations on restricted shares | 1,628 | 950 | 713 | ||||||||||
Total | $ | 2,227 | $ | 4,760 | $ | 22,048 | |||||||
On January 26, 2011, the Company repurchased 552,536 shares of its common stock from Koninklijke Philips Electronics, N.V., in a privately negotiated transaction. The shares were purchased for an aggregate price of approximately $14,927, including transaction fees. | |||||||||||||
In each of April 2009 and November 2011, the Board of Directors approved a stock repurchase program authorizing the purchase, at the discretion of management, of shares of the Company’s common stock through either periodic open-market or private transactions at then-prevailing market prices. Under the April 2009 program that expired in April 2012, the Company repurchased 223,851 shares at an aggregate purchase price of $4,858. Under the November 2011 program, the Board of Directors approved the repurchase of an additional $5,000 of shares of common stock. In November 2013, the program was extended through December 31, 2014. As of December 31, 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 agreements, 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 | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
(17) Subsequent Events | |
On February 20, 2014, the Board of Directors declared a quarterly dividend of $0.11 per share, payable on March 10, 2014 to shareholders of record on March 3, 2014. |
Quarterly_Financial_Informatio
Quarterly Financial Information | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||
Quarterly Financial Information | ' | ||||||||||||||||
(18) Quarterly Financial Information—Unaudited | |||||||||||||||||
Quarter ended: | March 31 | June 30 | September 30 | December 31 | |||||||||||||
2013 | |||||||||||||||||
Service revenue | $ | 2,929 | $ | 3,022 | $ | 3,030 | $ | 2,650 | |||||||||
Subscription revenue | 1,384 | 1,433 | 1,424 | 1,350 | |||||||||||||
License revenue | 5,930 | 6,015 | 2,971 | 2,826 | |||||||||||||
Total revenue | 10,243 | 10,470 | 7,425 | 6,826 | |||||||||||||
Total cost of revenue | 2,134 | 2,120 | 1,955 | 1,996 | |||||||||||||
Gross profit | 8,109 | 8,350 | 5,470 | 4,830 | |||||||||||||
Gross profit percent, service revenue | 52 | % | 53 | % | 59 | % | 52 | % | |||||||||
Gross profit percent, subscription revenue | 54 | % | 59 | % | 56 | % | 52 | % | |||||||||
Gross profit percent, license revenue | 98 | % | 98 | % | 97 | % | 97 | % | |||||||||
Gross profit percent, total | 79 | % | 80 | % | 74 | % | 71 | % | |||||||||
Sales and marketing | $ | 1,277 | $ | 1,563 | $ | 1,482 | $ | 1,822 | |||||||||
Research, development and engineering | 2,725 | 2,822 | 3,277 | 3,450 | |||||||||||||
General and administrative | 2,186 | 2,348 | 2,456 | 2,635 | |||||||||||||
Intellectual property | 277 | 261 | 278 | 313 | |||||||||||||
Operating income (loss) | 1,644 | 1,356 | (2,023 | ) | (3,390 | ) | |||||||||||
Net income (loss) | 971 | 602 | (795 | ) | (1,285 | ) | |||||||||||
Earnings (loss) per common share: | |||||||||||||||||
Earnings (loss) per common share—basic | $ | 0.13 | $ | 0.08 | $ | (0.12 | ) | $ | (0.19 | ) | |||||||
Earnings (loss) per common share—diluted | $ | 0.13 | $ | 0.08 | $ | (0.12 | ) | $ | (0.19 | ) | |||||||
Weighted average common shares outstanding—basic | 6,838 | 6,850 | 6,860 | 6,913 | |||||||||||||
Weighted average common shares outstanding—diluted | 7,058 | 7,090 | 6,860 | 6,913 | |||||||||||||
Quarter ended: | March 31 | June 30 | September 30 | December 31 | |||||||||||||
2012 | |||||||||||||||||
Service revenue | $ | 3,048 | $ | 2,609 | $ | 2,616 | $ | 2,519 | |||||||||
Subscription revenue | 278 | 317 | 327 | 559 | |||||||||||||
License revenue | 13,720 | 6,186 | 5,960 | 6,236 | |||||||||||||
Total revenue | 17,046 | 9,112 | 8,903 | 9,314 | |||||||||||||
Total cost of revenue | 1,810 | 1,583 | 1,467 | 1,648 | |||||||||||||
Gross profit | 15,236 | 7,529 | 7,436 | 7,666 | |||||||||||||
Gross profit percent, service revenue | 44 | % | 43 | % | 48 | % | 45 | % | |||||||||
Gross profit percent, subscription revenue | 83 | % | 86 | % | 86 | % | 61 | % | |||||||||
Gross profit percent, license revenue | 99 | % | 99 | % | 99 | % | 99 | % | |||||||||
Gross profit percent, total | 89 | % | 83 | % | 84 | % | 82 | % | |||||||||
Sales and marketing | $ | 1,007 | $ | 970 | $ | 937 | $ | 913 | |||||||||
Research, development and engineering | 1,998 | 2,146 | 2,320 | 2,277 | |||||||||||||
General and administrative | 2,758 | 2,191 | 2,282 | 2,226 | |||||||||||||
Intellectual property | 319 | 291 | 309 | 329 | |||||||||||||
Operating income | 9,154 | 1,931 | 1,588 | 1,921 | |||||||||||||
Net income | 4,999 | 1,216 | 1,003 | 1,054 | |||||||||||||
Earnings per common share: | |||||||||||||||||
Earnings per common share—basic | $ | 0.74 | $ | 0.17 | $ | 0.14 | $ | 0.15 | |||||||||
Earnings per common share—diluted | $ | 0.7 | $ | 0.17 | $ | 0.14 | $ | 0.14 | |||||||||
Weighted average common shares outstanding—basic | 6,738 | 6,737 | 6,761 | 6,791 | |||||||||||||
Weighted average common shares outstanding—diluted | 7,140 | 6,993 | 6,984 | 6,966 |
Description_of_Business_and_Su1
Description of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 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 technology provides the means to infuse persistent digital information, “Digimarc IDs,” 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 all forms of media content. | |||||||||||||||||||||
Principles of Consolidation | ' | ||||||||||||||||||||
Principles of Consolidation | |||||||||||||||||||||
The consolidated financial statements include the accounts of Digimarc and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated. | |||||||||||||||||||||
Use of Estimates | ' | ||||||||||||||||||||
Use of Estimates | |||||||||||||||||||||
The preparation of the consolidated financial statements in accordance with accounting principles generally accepted in the U.S. requires Digimarc to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expenses, and related disclosure of contingent assets and liabilities. Certain of the Company’s accounting policies require higher degrees of judgment than others in their application. These include revenue recognition on long-term contracts, goodwill, impairment of long-lived assets, contingencies, stock-based compensation and income taxes. Digimarc bases its estimates on historical experience and on other assumptions that are believed to be reasonable in the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. | |||||||||||||||||||||
Reclassifications | ' | ||||||||||||||||||||
Reclassifications | |||||||||||||||||||||
Certain prior period amounts in the accompanying 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 statements of operations, but given the increase in subscription revenue in the current year, the Company is now presenting license revenue and subscription revenue separately. The Company has reclassified the impact of net shares settled on stock option exercises in the statements of shareholder’s equity and cash flows on a net basis to conform to current year presentation. | |||||||||||||||||||||
Cash Equivalents | ' | ||||||||||||||||||||
Cash Equivalents | |||||||||||||||||||||
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 money market securities, certificates of deposit, commercial paper, and pre-refunded municipal bonds totaling $2,443 and $5,878 at December 31, 2013 and 2012, respectively. Cash equivalents are carried at cost or amortized cost, which approximates market. | |||||||||||||||||||||
Marketable Securities | ' | ||||||||||||||||||||
Marketable Securities | |||||||||||||||||||||
The Company considers all investments with original maturities over 90 days that mature in less than one year from the balance sheet date to be short-term marketable securities. Both short- and long-term marketable securities primarily include pre-refunded municipal bonds, corporate notes, commercial paper and U.S. federal agency notes. The Company’s marketable securities are classified as held-to-maturity and are reported at amortized cost, which approximates market. | |||||||||||||||||||||
A decline in the market value of any security below amortized cost that is deemed to be other-than-temporary results in a reduction in the carrying amount. The impairment is charged to earnings and a new cost basis for the security is established. To determine whether an impairment is other-than-temporary, the Company considers whether it has the ability and intent to hold the investment until a market price recovery and considers whether evidence indicating that the cost of the investment is recoverable outweighs evidence to the contrary. There have been no other-than-temporary impairments identified or recorded by the Company. | |||||||||||||||||||||
Premiums and discounts are amortized or accreted over the life of the related security as an adjustment to yield using a method that approximates the effective interest method. Under this method, dividend and interest income are recognized when earned. | |||||||||||||||||||||
Fair Value of Financial Instruments | ' | ||||||||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||||||
Accounting Standards Certification (“ASC”) 820 “Fair Value Measurements and Disclosures” 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 investments as of the reporting date. | ||||||||||||||||||||
• | Level 2—Pricing inputs are quoted for similar investments, or inputs that are observable, either directly or indirectly, for substantially the full term through corroboration with observable market data. Level 2 includes investments valued at quoted prices adjusted for legal or contractual restrictions specific to these investments. | ||||||||||||||||||||
• | Level 3—Pricing inputs are unobservable for the investment; that is, the inputs reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. | ||||||||||||||||||||
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 December 31, 2013 and 2012, respectively, was as follows: | |||||||||||||||||||||
December 31, 2013 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
Money market securities | $ | 2,343 | $ | — | $ | — | $ | 2,343 | |||||||||||||
Pre-refunded municipal bonds (1) | — | 29,268 | — | 29,268 | |||||||||||||||||
Corporate notes | — | 1,180 | — | 1,180 | |||||||||||||||||
U.S. federal agency notes | — | 331 | — | 331 | |||||||||||||||||
Certificates of deposits | — | 321 | — | 321 | |||||||||||||||||
Other municipals | — | 153 | — | 153 | |||||||||||||||||
Total | $ | 2,343 | $ | 31,253 | $ | — | $ | 33,596 | |||||||||||||
December 31, 2012 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
Money market securities | $ | 901 | $ | — | $ | — | $ | 901 | |||||||||||||
Pre-refunded municipal bonds (1) | — | 21,878 | — | 21,878 | |||||||||||||||||
Corporate notes | — | 10,100 | — | 10,100 | |||||||||||||||||
Commercial paper | — | 2,614 | — | 2,614 | |||||||||||||||||
U.S. federal agency notes | — | 1,637 | — | 1,637 | |||||||||||||||||
Certificates of deposits | — | 491 | — | 491 | |||||||||||||||||
U.S. treasuries | — | 289 | — | 289 | |||||||||||||||||
Other municipals | — | 158 | — | 158 | |||||||||||||||||
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 December 31, 2013 are as follows: | |||||||||||||||||||||
Maturities by Period | |||||||||||||||||||||
Total | Less than | 1-5 years | 5-10 years | More than | |||||||||||||||||
1 year | 10 years | ||||||||||||||||||||
Maturities | $ | 33,596 | $ | 28,294 | $ | 5,302 | $ | — | $ | — | |||||||||||
Concentrations of Business and Credit Risk | ' | ||||||||||||||||||||
Concentrations of Business and Credit Risk | |||||||||||||||||||||
A significant portion of the Company’s business depends on a limited number of large contracts. The loss of any large contract may result in loss of revenue and margin on a prospective basis. Financial instruments that potentially subject Digimarc to concentrations of credit risk consist primarily of cash and cash equivalents, marketable securities, and accounts receivable. Digimarc places its cash and cash equivalents with major banks and financial institutions and at times deposits may exceed insured limits. Other than cash used for operating needs, which may include short-term marketable securities with the Company’s principal banks, Digimarc’s investment policy limits its credit exposure to any one financial institution or type of financial instrument by limiting the maximum of 5% of its cash equivalents and marketable securities or $1,000, whichever is greater, to be invested in any one issuer except for the U.S. government, U.S. federal agencies and U.S. backed securities, which have no limits, at the time of purchase. The Company’s investment policy also limits its credit exposure by limiting the maximum of 40% of its cash equivalents and marketable securities, or $15,000, whichever is greater, to be invested in any one industry category, (e.g., financial or energy industries), at the time of purchase. As a result, Digimarc’s credit risk associated with cash and cash equivalents and marketable securities is believed to be minimal. | |||||||||||||||||||||
Contingencies | ' | ||||||||||||||||||||
Contingencies: | |||||||||||||||||||||
The Company evaluates all pending or threatened contingencies or commitments, if any, that are reasonably likely to have a material adverse effect on the Company’s operations or financial position. The Company assesses the probability of an adverse outcome and determines if it is remote, reasonably possible or probable as defined in accordance with the provisions of ASC 450 “Contingencies.” If information available prior to the issuance of the financial statements indicates that it is probable that an asset has been impaired or a liability has been incurred at the date of the financial statements, and the amount of the loss, or the range of probable loss can be reasonably estimated, then the loss is accrued and charged to operations. If no accrual is made for a loss contingency because one or both of the conditions pursuant to ASC 450 are not met, but the probability of an adverse outcome is at least reasonably possible, the Company will disclose the nature of the contingency and provide an estimate of the possible loss or range of loss, or state that such an estimate cannot be made. | |||||||||||||||||||||
Equity Method Investments | ' | ||||||||||||||||||||
Equity Method Investments | |||||||||||||||||||||
The Company accounts for its joint ventures under the equity method of accounting pursuant to ASC 323 “Investments – Equity Method and Joint Ventures.” Under the equity method, investments are carried at cost, plus or minus the Company’s proportionate share, based on present ownership interests, of: (a) the investee’s profit or loss after the date of acquisition; (b) changes in the Company’s equity that have not been recognized in the investee’s profit or loss; and (c) certain other adjustments. Distributions received from the investee (such as dividends) reduce the carrying amount of the investment. | |||||||||||||||||||||
Goodwill | ' | ||||||||||||||||||||
Goodwill | |||||||||||||||||||||
The Company accounts for business combinations under the acquisition method of accounting in accordance with ASC 805, “Business Combinations,” where the total purchase price is allocated to the tangible and identified intangible assets acquired and liabilities assumed based on their estimated fair values. The purchase price is allocated using the information currently available, and may be adjusted, up to one year from acquisition date, after obtaining more information regarding, among other things, asset valuations, liabilities assumed and revisions to preliminary estimates. | |||||||||||||||||||||
Contingent consideration is recorded at the acquisition date based upon the estimated fair value of the contingent payments. The fair value of the contingent consideration is re-measured each reporting period with any adjustments in fair value being recognized in earnings from operations. | |||||||||||||||||||||
The purchase price in excess of the fair value of the tangible and identified intangible assets acquired less liabilities assumed is recognized as 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 their carrying value. The Company operates as a single reporting unit. The Company estimated the fair value of its single reporting unit using a market approach, which takes into account the Company’s 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. | |||||||||||||||||||||
Impairment of Long-Lived Assets | ' | ||||||||||||||||||||
Impairment of Long-Lived Assets | |||||||||||||||||||||
The Company assesses long-lived assets for impairment whenever events or changes in circumstances indicated that the carrying amount of an asset may not be recoverable, in accordance with the provisions of ASC 360 “Property, Plant and Equipment.” This statement requires that long-lived assets, including definite-lived intangible assets, be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the assets to future net undiscounted cash flows expected to be generated by the assets over their remaining useful life. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Fair value is determined based on discounted cash flows or appraised values, depending on the nature of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. As of December 31, 2013, there have been no such impairment losses. | |||||||||||||||||||||
Research and Development | ' | ||||||||||||||||||||
Research and Development | |||||||||||||||||||||
Research and development costs are expensed as incurred in accordance with ASC 730 “Research and Development.” | |||||||||||||||||||||
Software Development Costs | ' | ||||||||||||||||||||
Software Development Costs | |||||||||||||||||||||
Under ASC 985 “Software,” software development costs are to be capitalized beginning when a product’s technological feasibility has been established and ending when a product is made available for general release to customers. To date, the establishment of technological feasibility of the Company’s products has occurred shortly before general release and, therefore, software development costs qualifying for capitalization have been immaterial. Accordingly, the Company has not capitalized any software development costs and has charged all such costs to research and development expense. | |||||||||||||||||||||
Patent Costs | ' | ||||||||||||||||||||
Patent Costs | |||||||||||||||||||||
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 award date, which varies depending on the pendency period of the application, generally approximating seventeen years. Capitalized patent costs, also referred to as patent prosecution costs, include internal legal labor, professional legal fees, government filing fees and translation fees related to expanding the Company’s patent portfolio. | |||||||||||||||||||||
Costs associated with the maintenance and annuity fees of patents are accounted for as prepaid assets at the time of payment and amortized over the shorter of the maintenance period or remaining life of the related patent. | |||||||||||||||||||||
Revenue Recognition | ' | ||||||||||||||||||||
Revenue Recognition | |||||||||||||||||||||
See Note 2 for detail disclosures of the Company’s revenue recognition policy. | |||||||||||||||||||||
Stock-Based Compensation | ' | ||||||||||||||||||||
Stock-Based Compensation | |||||||||||||||||||||
The Company accounts for stock-based compensation in accordance with ASC 718 “Compensation—Stock Compensation,” which requires the measurement and recognition of compensation for all stock-based awards made to employees and directors including stock options and restricted stock based on estimated fair values. | |||||||||||||||||||||
For stock option awards, the Company uses the Black-Scholes option pricing model as its method of valuation. The Company’s determination of the fair value on the date of grant is affected by its stock price as well as assumptions regarding a number of subjective variables. These variables include, but are not limited to, the expected life of the award, the Company’s expected stock price volatility over the term of the award, the risk-free interest rate and the expected dividend yield. Although the fair value of stock-based awards is determined in accordance with ASC 718 and SAB No. 107 “Shared-Based Payment,” the Black-Scholes option pricing model requires the input of subjective assumptions, and other reasonable assumptions could provide differing results. | |||||||||||||||||||||
The fair value of restricted stock awards granted 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 of the related restricted stock using the straight-line method. | |||||||||||||||||||||
Income Taxes | ' | ||||||||||||||||||||
Income Taxes | |||||||||||||||||||||
The Company accounts for income taxes in accordance with ASC 740 “Income Taxes” utilizing the asset and liability method. Under the asset and liability method, deferred income taxes reflect the future tax consequences of differences between the tax basis of assets and liabilities and their financial reporting amounts. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period of enactment. | |||||||||||||||||||||
Valuation allowances are established when necessary to reduce deferred tax assets to the amount that is more likely than not expected to be realized. A valuation allowance is required for deferred tax assets if, based on available evidence, it is more likely than not that all or some portion of the asset will not be realized due to the inability to generate sufficient taxable income in the period and/or of the character necessary to utilize the benefit of the deferred tax asset. The more-likely-than-not criterion means the likelihood of realization is greater than 50 percent. When evaluating whether it is more likely than not that all or some portion of the deferred tax asset will not be realized, the Company evaluates all available evidence, both positive and negative, that may affect the realizability of deferred tax assets and that should be identified and considered in determining the appropriate amount of valuation allowance. | |||||||||||||||||||||
The Company is subject to federal and state income taxes within the U.S. and in the ordinary course of business, there are transactions and calculations where the ultimate tax determination is uncertain. The Company is also subject to withholding taxes in various foreign jurisdictions. The withholding taxes are computed by the customers and paid to foreign jurisdictions on its behalf. The Company reports a liability (or contra asset) for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. The Company recognizes interest and penalties, if any, related to the unrecognized tax benefits in income tax expense. | |||||||||||||||||||||
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 has adopted the provisions of this standard and noted no material impact on the Company’s financial condition or results of operations. | |||||||||||||||||||||
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. |
Description_of_Business_and_Su2
Description of Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||||||
Summary of Fair Value Hierarchy for Financial Assets | ' | ||||||||||||||||||||
The Company’s fair value hierarchy for its cash equivalents and marketable securities as of December 31, 2013 and 2012, respectively, was as follows: | |||||||||||||||||||||
December 31, 2013 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
Money market securities | $ | 2,343 | $ | — | $ | — | $ | 2,343 | |||||||||||||
Pre-refunded municipal bonds (1) | — | 29,268 | — | 29,268 | |||||||||||||||||
Corporate notes | — | 1,180 | — | 1,180 | |||||||||||||||||
U.S. federal agency notes | — | 331 | — | 331 | |||||||||||||||||
Certificates of deposits | — | 321 | — | 321 | |||||||||||||||||
Other municipals | — | 153 | — | 153 | |||||||||||||||||
Total | $ | 2,343 | $ | 31,253 | $ | — | $ | 33,596 | |||||||||||||
December 31, 2012 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
Money market securities | $ | 901 | $ | — | $ | — | $ | 901 | |||||||||||||
Pre-refunded municipal bonds (1) | — | 21,878 | — | 21,878 | |||||||||||||||||
Corporate notes | — | 10,100 | — | 10,100 | |||||||||||||||||
Commercial paper | — | 2,614 | — | 2,614 | |||||||||||||||||
U.S. federal agency notes | — | 1,637 | — | 1,637 | |||||||||||||||||
Certificates of deposits | — | 491 | — | 491 | |||||||||||||||||
U.S. treasuries | — | 289 | — | 289 | |||||||||||||||||
Other municipals | — | 158 | — | 158 | |||||||||||||||||
Total | $ | 901 | $ | 37,167 | $ | — | $ | 38,068 | |||||||||||||
-1 | Pre-refunded municipal bonds are collateralized by U.S. treasuries. | ||||||||||||||||||||
Summary of Fair Value Maturities for Financial Asset | ' | ||||||||||||||||||||
The fair value maturities of the Company’s cash equivalents and marketable securities as of December 31, 2013 are as follows: | |||||||||||||||||||||
Maturities by Period | |||||||||||||||||||||
Total | Less than | 1-5 years | 5-10 years | More than | |||||||||||||||||
1 year | 10 years | ||||||||||||||||||||
Maturities | $ | 33,596 | $ | 28,294 | $ | 5,302 | $ | — | $ | — | |||||||||||
Acquisition_of_Attributor_Corp1
Acquisition of Attributor Corporation ("Attributor") (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Business Combinations [Abstract] | ' | ||||||||
Summary of Purchase Price Allocation | ' | ||||||||
This review was completed with the filing of the Attributor 2012 tax return in the third quarter of 2013 and resulted in no changes to the purchase price allocation. | |||||||||
Total purchase price | $ | 5,632 | |||||||
Less: Estimated fair value of net tangible assets acquired and (liabilities assumed): | |||||||||
Cash and cash equivalents | $ | 350 | |||||||
Trade accounts receivable, net | 527 | ||||||||
Other current assets | 18 | ||||||||
Property and equipment, net | 102 | ||||||||
Deferred tax assets | 1,225 | ||||||||
Accounts payable and other accrued liabilities | (499 | ) | |||||||
Deferred revenue | (225 | ) | |||||||
Less: Estimated fair value of identifiable intangible assets acquired: | |||||||||
Existing technology | 1,560 | ||||||||
Customer relationships | 290 | ||||||||
Backlog | 760 | ||||||||
Tradenames | 290 | ||||||||
Non-solicitation agreements | 120 | ||||||||
Goodwill | $ | 1,114 | |||||||
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||
Geographical Segment Revenue | ' | ||||||||||||
Revenue, based upon the “bill-to” location, by geographic area is as follows: | |||||||||||||
Year Ended | Year Ended | Year Ended | |||||||||||
December 31, 2013 | December 31, 2012 | December 31, 2011 | |||||||||||
Domestic | $ | 18,857 | $ | 30,736 | $ | 22,660 | |||||||
International (1) | 16,107 | 13,639 | 13,379 | ||||||||||
Total | $ | 34,964 | $ | 44,375 | $ | 36,039 | |||||||
-1 | Revenue from the Central Banks, consisting 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 Revenue | ' | ||||||||||||
Customers who accounted for more than 10% of the Company’s revenue are as follows: | |||||||||||||
Year Ended | Year Ended | Year Ended | |||||||||||
December 31, 2013 | December 31, 2012 | December 31, 2011 | |||||||||||
Central Banks | 33 | % | 23 | % | 27 | % | |||||||
IV | 22 | % | 30 | % | 33 | % | |||||||
The Nielsen Company (“Nielsen”) | 11 | % | * | 11 | % | ||||||||
Verance Corporation (“Verance”) | * | 27 | % | * | |||||||||
* | Less than 10% |
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||
Weighted Average Assumptions and Results for Options Granted | ' | ||||||||||||
A summary of the weighted average assumptions and results for options granted are as follows: | |||||||||||||
Year Ended | Year Ended | Year Ended | |||||||||||
December 31, | December 31, | December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||||
Expected life (in years) | N/A | N/A | 5.28 – 5.75 | ||||||||||
Expected volatility | N/A | N/A | 42% – 44% | ||||||||||
Risk-free interest rate | N/A | N/A | 1.0% – 2% | ||||||||||
Expected dividend yield | N/A | N/A | 0% | ||||||||||
Year Ended | Year Ended | Year Ended | |||||||||||
December 31, | December 31, | December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||||
Fair value of stock options granted | $ | — | $ | — | $ | 2,464 | |||||||
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 | |||||||||||||
Year Ended | Year Ended | Year Ended | |||||||||||
December 31, 2013 | December 31, 2012 | December 31, 2011 | |||||||||||
Stock-based compensation: | |||||||||||||
Cost of revenue | $ | 533 | $ | 603 | $ | 593 | |||||||
Sales and marketing | 422 | 409 | 302 | ||||||||||
Research, development and engineering | 1,116 | 840 | 560 | ||||||||||
General and administrative | 2,183 | 3,148 | 2,568 | ||||||||||
Intellectual property | 248 | 256 | 193 | ||||||||||
Stock compensation expense | 4,502 | 5,256 | 4,216 | ||||||||||
Capitalized to patent costs | 137 | 108 | 65 | ||||||||||
Total stock-based compensation | $ | 4,639 | $ | 5,364 | $ | 4,281 | |||||||
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 stock options and restricted stock: | |||||||||||||
Year Ended | Year Ended | Year Ended | |||||||||||
December 31, | December 31, | December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||||
Unrecognized compensation costs | $ | 9,711 | $ | 8,333 | $ | 9,463 | |||||||
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 December 31, 2013 for stock options and restricted stock over a weighted average periods through December 2017 as follows: | |||||||||||||
Stock | Restricted | ||||||||||||
Options | Stock | ||||||||||||
Weighted average period | 0.75 years | 1.66 years |
Earnings_Per_Common_Share_Tabl
Earnings Per Common Share (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 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 years ended December 31, 2013 and 2012: | |||||||||||||
Year Ended | Year Ended | ||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||
Basic Earnings (Loss) per Common Share: | |||||||||||||
Numerator: | |||||||||||||
Net income (loss) | $ | (507 | ) | $ | 8,272 | ||||||||
Distributed earnings to common shares | 3,013 | 2,214 | |||||||||||
Distributed earnings to participating securities | 189 | 130 | |||||||||||
Total distributed earnings | 3,202 | 2,344 | |||||||||||
Undistributed earnings (loss) allocable to common shares | (3,709 | ) | 5,639 | ||||||||||
Undistributed earnings allocable to participating securities | — | 289 | |||||||||||
Total undistributed earnings (loss) | (3,709 | ) | 5,928 | ||||||||||
Earnings (loss) to common shares—basic | $ | (696 | ) | $ | 7,853 | ||||||||
Denominator: | |||||||||||||
Weighted average common shares outstanding—basic (in thousands) | 6,866 | 6,757 | |||||||||||
Basic earnings (loss) per common share | $ | (0.10 | ) | $ | 1.16 | ||||||||
Year Ended | Year Ended | ||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||
Diluted Earnings (Loss) per Common Share: | |||||||||||||
Numerator: | |||||||||||||
Earnings (loss) to common shares— basic | $ | (696 | ) | $ | 7,853 | ||||||||
Undistributed earnings allocated to participating securities | — | 289 | |||||||||||
Undistributed earnings reallocated to participating securities | — | (280 | ) | ||||||||||
Earnings (loss) to common shares—diluted | $ | (696 | ) | $ | 7,862 | ||||||||
Denominator: | |||||||||||||
Weighted average common shares outstanding—basic (in thousands) | 6,866 | 6,757 | |||||||||||
Dilutive effect of stock options | — | 232 | |||||||||||
Weighted average common shares outstanding—dilutive (in thousands) | 6,866 | 6,989 | |||||||||||
Diluted earnings (loss) per common share | $ | (0.10 | ) | $ | 1.12 | ||||||||
Basic and Diluted Earnings Per Common Share Computed Using Weighted Average Number of Common Shares Outstanding | ' | ||||||||||||
Basic and diluted earnings per common share were computed using the weighted average number of common shares outstanding during each period, with diluted earnings per common share adjusted for the potentially dilutive effect of common shares. | |||||||||||||
Year Ended December 31, 2011 | |||||||||||||
Income | Shares | Per | |||||||||||
(Numerator) | (in thousands) | Share | |||||||||||
(Denominator) | Amount | ||||||||||||
Basic EPS | |||||||||||||
Income available to common shareholders | $ | 5,656 | 6,741 | $ | 0.84 | ||||||||
Effect of Dilutive Securities | |||||||||||||
Options | 393 | ||||||||||||
Restricted stock | 296 | ||||||||||||
Diluted EPS | |||||||||||||
Income available to common shareholders | $ | 5,656 | 7,430 | $ | 0.76 | ||||||||
Trade_Accounts_Receivable_and_1
Trade Accounts Receivable and Allowance for Doubtful Accounts (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Receivables [Abstract] | ' | ||||||||
Summary of Accounts Receivable | ' | ||||||||
Trade Accounts Receivable | |||||||||
Trade accounts receivable are recorded at the invoiced amount. | |||||||||
December 31, 2013 | December 31, 2012 | ||||||||
Trade accounts receivable | $ | 5,883 | $ | 4,216 | |||||
Allowance for doubtful accounts | (45 | ) | — | ||||||
Trade accounts receivable, net | $ | 5,838 | $ | 4,216 | |||||
Unpaid deferred revenue included in accounts receivable | $ | 3,319 | $ | 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: | |||||||||
December 31, 2013 | December 31, 2012 | ||||||||
Central Banks | 47 | % | 30 | % | |||||
Nielsen | 20 | % | 24 | % | |||||
Civolution | 10 | % | 14 | % |
Property_and_Equipment_Tables
Property and Equipment (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 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 seven years. Leasehold improvements are amortized using the straight-line method over the shorter of the estimated useful life or the lease term. | |||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||
Office furniture and fixtures | $ | 762 | $ | 420 | |||||||||
Equipment | 3,127 | 1,886 | |||||||||||
Leasehold improvements | 1,137 | 1,083 | |||||||||||
Gross property and equipment | 5,026 | 3,389 | |||||||||||
Less accumulated depreciation and amortization | (2,631 | ) | (1,936 | ) | |||||||||
Property and equipment, net | $ | 2,395 | $ | 1,453 | |||||||||
Future Minimum Lease Payments under Non-Cancelable Operating Leases | ' | ||||||||||||
Future minimum lease payments under non-cancelable operating leases are as follows: | |||||||||||||
Year ending December 31: | Operating | ||||||||||||
Leases | |||||||||||||
2014 | $ | 1,074 | |||||||||||
2015 | 1,112 | ||||||||||||
2016 | 808 | ||||||||||||
2017 | 3 | ||||||||||||
2018 | — | ||||||||||||
Thereafter | — | ||||||||||||
Total minimum lease payments | $ | 2,997 | |||||||||||
Operating Leases Rent Expense | ' | ||||||||||||
Rent expense on the operating leases are as follows: | |||||||||||||
Year Ended | Year Ended | Year Ended | |||||||||||
December 31, | December 31, | December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||||
Rent expense | $ | 925 | $ | 776 | $ | 866 |
Intangibles_Tables
Intangibles (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 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. | |||||||||||||
Estimated Life | December 31, 2013 | December 31, 2012 | |||||||||||
(years) | |||||||||||||
Capitalized patent costs | 17-20 | $ | 5,157 | $ | 3,973 | ||||||||
Intangible assets acquired: | |||||||||||||
Purchased patents and intellectual property | 10-Mar | 250 | 250 | ||||||||||
Existing technology | 5 | 1,560 | 1,560 | ||||||||||
Customer relationships | 7 | 290 | 290 | ||||||||||
Backlog | 2 | 760 | 760 | ||||||||||
Tradenames | 3 | 290 | 290 | ||||||||||
Non-solicitation agreements | 1 | 120 | 120 | ||||||||||
Gross intangible assets | 8,427 | 7,243 | |||||||||||
Accumulated amortization | (1,718 | ) | (522 | ) | |||||||||
Intangible assets, net | $ | 6,709 | $ | 6,721 | |||||||||
Estimated Future Aggregate Amortization Expense | ' | ||||||||||||
The aggregate amortization expense recorded in the years ended December 31, 2013, 2012 and 2011 was $1,196, $315 and $124, respectively. For intangible assets recorded at December 31, 2013, the estimated future aggregate amortization expense for the years ending December 31, 2014 through 2018 is approximately: | |||||||||||||
Year ending December 31: | Amortization | ||||||||||||
Expense | |||||||||||||
2014 | $ | 1,012 | |||||||||||
2015 | 640 | ||||||||||||
2016 | 507 | ||||||||||||
2017 | 479 | ||||||||||||
2018 | 184 |
Shareholders_Equity_Tables
Shareholders' Equity (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||||||
Summary of Options Granted, Exercised and Canceled | ' | ||||||||||||||||||||||||
Options granted, exercised and canceled under the stock incentive plan are summarized as follows: | |||||||||||||||||||||||||
Number of | Weighted Average | Weighted Average | Aggregate | ||||||||||||||||||||||
Shares | Exercise Price | Grant Date | Intrinsic | ||||||||||||||||||||||
Fair Value | Value | ||||||||||||||||||||||||
Options outstanding, December 31, 2010 | 993,491 | $ | 10.47 | $ | 6.55 | ||||||||||||||||||||
Granted | 215,000 | $ | 27.84 | $ | 11.46 | ||||||||||||||||||||
Exercised | (169,420 | ) | $ | 9.75 | $ | 6.33 | |||||||||||||||||||
Canceled | (10,833 | ) | $ | 9.64 | $ | 6.28 | |||||||||||||||||||
Options outstanding, December 31, 2011 | 1,028,238 | $ | 14.23 | $ | 7.61 | ||||||||||||||||||||
Granted | — | — | — | ||||||||||||||||||||||
Exercised | (172,250 | ) | $ | 9.64 | $ | 6.29 | |||||||||||||||||||
Canceled | — | — | — | ||||||||||||||||||||||
Options outstanding, December 31, 2012 | 855,988 | $ | 15.16 | $ | 7.88 | ||||||||||||||||||||
Granted | — | — | — | ||||||||||||||||||||||
Exercised | (42,050 | ) | $ | 9.64 | $ | 6.3 | |||||||||||||||||||
Canceled | (416 | ) | $ | 14.99 | $ | 8.12 | |||||||||||||||||||
Options outstanding, December 31, 2013 | 813,522 | $ | 15.44 | $ | 7.96 | $ | 4,950 | ||||||||||||||||||
Options exercisable, December 31, 2013 | 740,781 | $ | 14.3 | $ | 4,942 | ||||||||||||||||||||
Options unvested, December 31, 2013 | 72,741 | $ | 27.06 | $ | 8 | ||||||||||||||||||||
Summary of Information about Stock Options Outstanding | ' | ||||||||||||||||||||||||
The following table summarizes information about stock options outstanding at December 31, 2013: | |||||||||||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||||||||||
Exercise Price | Number | Remaining | Weighted | Number | Remaining | Weighted | |||||||||||||||||||
Outstanding | Contractual | Average | Exercisable | Contractual | Average | ||||||||||||||||||||
Life (Years) | Price | Life (Years) | Price | ||||||||||||||||||||||
$ 9.64 – $ 9.91 | 466,022 | 4.73 | $ | 9.66 | 466,022 | 4.73 | $ | 9.66 | |||||||||||||||||
$14.99 – $18.01 | 132,500 | 5.33 | $ | 15.67 | 130,626 | 5.32 | $ | 15.68 | |||||||||||||||||
$24.35 – $30.01 | 215,000 | 7.58 | $ | 27.84 | 144,133 | 7.55 | $ | 28.07 | |||||||||||||||||
$ 9.64 – $30.01 | 813,522 | 5.58 | $ | 15.44 | 740,781 | 5.39 | $ | 14.3 | |||||||||||||||||
Reconciliation of Unvested Balance of Restricted Stock | ' | ||||||||||||||||||||||||
The following table reconciles the unvested balance of restricted stock: | |||||||||||||||||||||||||
Number of | Weighted | ||||||||||||||||||||||||
Shares | Average | ||||||||||||||||||||||||
Grant Date | |||||||||||||||||||||||||
Fair Value | |||||||||||||||||||||||||
Unvested balance, December 31, 2010 | 197,760 | $ | 14.25 | ||||||||||||||||||||||
Granted | 190,180 | $ | 29.12 | ||||||||||||||||||||||
Vested | (73,110 | ) | $ | 20.82 | |||||||||||||||||||||
Canceled | (18,120 | ) | $ | 19.24 | |||||||||||||||||||||
Unvested balance, December 31, 2011 | 296,710 | $ | 21.51 | ||||||||||||||||||||||
Granted | 202,340 | $ | 22.51 | ||||||||||||||||||||||
Vested | (117,667 | ) | $ | 22.52 | |||||||||||||||||||||
Canceled | (12,300 | ) | $ | 22.05 | |||||||||||||||||||||
Unvested balance, December 31, 2012 | 369,083 | $ | 21.72 | ||||||||||||||||||||||
Granted | 388,190 | $ | 20.15 | ||||||||||||||||||||||
Vested | (220,514 | ) | $ | 23.21 | |||||||||||||||||||||
Canceled | (88,633 | ) | $ | 20.35 | |||||||||||||||||||||
Unvested balance, December 31, 2013 | 448,126 | $ | 19.89 | ||||||||||||||||||||||
Defined_Contribution_Pension_P1
Defined Contribution Pension Plan (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Compensation And Retirement Disclosure [Abstract] | ' | ||||||||||||
Statement of Company Made Matching Contributions | ' | ||||||||||||
The Company made matching contributions in the aggregate amount as follows: | |||||||||||||
Year Ended | Year Ended | Year Ended | |||||||||||
December 31, | December 31, | December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||||
Matching contributions | $ | 396 | $ | 366 | $ | 349 |
Joint_Venture_and_Related_Part1
Joint Venture and Related Party Transactions (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Related Party Transactions | ' | ||||||||||||
Related Party Transactions | |||||||||||||
Year Ended | Year Ended | Year Ended | |||||||||||
December 31, | December 31, | December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||||
TVaura LLC: | |||||||||||||
Capital contributions (return of capital) | $ | — | $ | (104 | ) | $ | 1,200 | ||||||
Revenue (1) | $ | — | $ | — | $ | 2,640 | |||||||
TVaura Mobile LLC: | |||||||||||||
Capital contributions | $ | — | $ | 796 | $ | 900 | |||||||
Revenue (1) | $ | — | $ | 272 | $ | — | |||||||
Total: | |||||||||||||
Capital contributions, net | $ | — | $ | 692 | $ | 2,100 | |||||||
Revenue (1) | $ | — | $ | 272 | $ | 2,640 | |||||||
-1 | Technical and development services | ||||||||||||
TVaura LLC [Member] | ' | ||||||||||||
Summarized Financial Data | ' | ||||||||||||
Summarized financial data for TVaura LLC: | |||||||||||||
December 31, | December 31, | ||||||||||||
2013 | 2012 | ||||||||||||
Current assets | $ | — | $ | — | |||||||||
Noncurrent assets | $ | — | $ | — | |||||||||
Current liabilities | $ | — | $ | — | |||||||||
Noncurrent liabilities | $ | — | $ | — | |||||||||
Year Ended | Year Ended | Year Ended | |||||||||||
December 31, | December 31, | December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||||
Revenue | $ | — | $ | — | $ | — | |||||||
Gross profit | $ | — | $ | — | $ | — | |||||||
Operating expenses | $ | — | $ | 52 | $ | 2,699 | |||||||
Net loss from continuing operations | $ | — | $ | (52 | ) | $ | (2,699 | ) | |||||
The Company’s pro-rata share—net loss | $ | — | $ | (27 | ) | $ | (1,376 | ) | |||||
The Company’s gain on investment | $ | — | $ | 70 | $ | — | |||||||
TVaura Mobile LLC [Member] | ' | ||||||||||||
Summarized Financial Data | ' | ||||||||||||
Summarized financial data for TVaura Mobile LLC: | |||||||||||||
December 31, | December 31, | ||||||||||||
2013 | 2012 | ||||||||||||
Current assets | $ | 932 | $ | 937 | |||||||||
Noncurrent assets | $ | — | $ | — | |||||||||
Current liabilities | $ | 957 | $ | 957 | |||||||||
Noncurrent liabilities | $ | — | $ | — | |||||||||
Year Ended | Year Ended | Year Ended | |||||||||||
December 31, | December 31, | December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||||
Revenue | $ | — | $ | — | $ | 105 | |||||||
Gross profit | $ | — | $ | — | $ | 105 | |||||||
Operating expenses | $ | 5 | $ | 2,266 | $ | 2,848 | |||||||
Net loss from continuing operations | $ | (5 | ) | $ | (2,266 | ) | $ | (2,743 | ) | ||||
The Company’s pro-rata share—net loss | $ | — | $ | (1,100 | ) | $ | (1,338 | ) | |||||
The Company’s loss on investment | $ | — | $ | (50 | ) | $ | — |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Components of Tax Expense (Benefit) Allocated to Continuing Operations | ' | ||||||||||||||||||||||||
Components of tax expense (benefit) allocated to continuing operations include the following: | |||||||||||||||||||||||||
Year Ended | Year Ended | Year Ended | |||||||||||||||||||||||
December 31, | December 31, | December 31, | |||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Current: | |||||||||||||||||||||||||
Federal | $ | (1,420 | ) | $ | 4,699 | $ | 1,066 | ||||||||||||||||||
State | 1 | 570 | 3 | ||||||||||||||||||||||
Foreign | 5 | 1 | (20 | ) | |||||||||||||||||||||
Sub-total | (1,414 | ) | 5,270 | 1,049 | |||||||||||||||||||||
Deferred: | |||||||||||||||||||||||||
Federal | (204 | ) | 97 | (2,470 | ) | ||||||||||||||||||||
State | (178 | ) | 27 | (365 | ) | ||||||||||||||||||||
Foreign | — | — | — | ||||||||||||||||||||||
Sub-total | (382 | ) | 124 | (2,835 | ) | ||||||||||||||||||||
Total tax expense (benefit) | $ | (1,796 | ) | $ | 5,394 | $ | (1,786 | ) | |||||||||||||||||
Reconciliation of the Statutory Federal Income Tax Rate to the Company's Effective Income Tax Rate | ' | ||||||||||||||||||||||||
The reconciliation of the statutory federal income tax rate to the Company’s effective income tax rate is as follows: | |||||||||||||||||||||||||
Year Ended | % | Year Ended | % | Year Ended | % | ||||||||||||||||||||
December 31, | December 31, | December 31, | |||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Income taxes computed at statutory rates | $ | (783 | ) | 34 | % | $ | 4,647 | 34 | % | $ | 1,316 | 34 | % | ||||||||||||
Increases (decreases) resulting from: | |||||||||||||||||||||||||
State income taxes, net of federal tax benefit | (301 | ) | 13 | % | 705 | 5 | % | 194 | 5 | % | |||||||||||||||
Federal and state research and experimentation credits | (918 | ) | 40 | % | (122 | ) | (1 | )% | (784 | ) | (20 | )% | |||||||||||||
Change in valuation allowance | 187 | (8 | )% | 12 | — | (2,581 | ) | (67 | )% | ||||||||||||||||
Transaction costs | — | — | 65 | 1 | % | — | — | ||||||||||||||||||
Impact of federal graduated rates | — | — | 39 | — | — | — | |||||||||||||||||||
Other | 19 | (1 | )% | 48 | — | 69 | 2 | % | |||||||||||||||||
Total | $ | (1,796 | ) | 78 | % | $ | 5,394 | 39 | % | $ | (1,786 | ) | (46 | )% | |||||||||||
Tax Effects of Significant Items Comprising the Company's Deferred Tax Assets and Deferred Tax Liabilities | ' | ||||||||||||||||||||||||
The tax effects of significant items comprising the Company’s deferred tax assets and deferred tax liabilities are as follows: | |||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Deferred tax assets: | |||||||||||||||||||||||||
Stock based compensation | $ | 2,305 | $ | 2,636 | |||||||||||||||||||||
Federal and state net operating losses | 3,153 | 1,900 | |||||||||||||||||||||||
Goodwill | 1,037 | 1,146 | |||||||||||||||||||||||
Accrued compensation | 22 | 50 | |||||||||||||||||||||||
Deferred rent | 158 | 170 | |||||||||||||||||||||||
Federal and state research and experimentation credits | 92 | — | |||||||||||||||||||||||
Other | 33 | — | |||||||||||||||||||||||
Total gross deferred tax assets | 6,800 | 5,902 | |||||||||||||||||||||||
Less valuation allowance | (371 | ) | (184 | ) | |||||||||||||||||||||
Net deferred tax assets | $ | 6,429 | $ | 5,718 | |||||||||||||||||||||
Deferred tax liabilities: | |||||||||||||||||||||||||
Patent expenditures | $ | (1,695 | ) | $ | (1,385 | ) | |||||||||||||||||||
Fixed asset differences | (461 | ) | (167 | ) | |||||||||||||||||||||
Intangible asset differences | (233 | ) | (506 | ) | |||||||||||||||||||||
Other | (16 | ) | (18 | ) | |||||||||||||||||||||
Total deferred tax liabilities | $ | (2,405 | ) | $ | (2,076 | ) | |||||||||||||||||||
Net deferred tax assets | $ | 4,024 | $ | 3,642 | |||||||||||||||||||||
Summary of Reconciliation of the Company's Uncertain Tax Positions | ' | ||||||||||||||||||||||||
A summary reconciliation of the Company’s uncertain tax positions is as follows: | |||||||||||||||||||||||||
For the Year | For the Year | For the Year | |||||||||||||||||||||||
Ended | Ended | Ended | |||||||||||||||||||||||
December 31, | December 31, | December 31, | |||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Beginning balance | $ | 108 | $ | 102 | $ | — | |||||||||||||||||||
Addition for current year tax positions | 105 | 6 | 30 | ||||||||||||||||||||||
Addition for prior year tax positions | 6 | — | 72 | ||||||||||||||||||||||
Settlements with taxing authorities | — | — | — | ||||||||||||||||||||||
Lapsing of statutes of limitations | — | — | — | ||||||||||||||||||||||
Ending balance | $ | 219 | $ | 108 | $ | 102 |
Stock_Repurchases_Tables
Stock Repurchases (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Text Block [Abstract] | ' | ||||||||||||
Summary of Common Stock Shares Repurchased | ' | ||||||||||||
Summary of common stock shares repurchased: | |||||||||||||
Year Ended | Year Ended | Year Ended | |||||||||||
December 31, | December 31, | December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||||
Private transaction | — | — | 552,536 | ||||||||||
Repurchase program | — | 50,900 | 104,577 | ||||||||||
Exercise of stock options | 18,283 | 69,272 | 48,432 | ||||||||||
Tax withholding obligations on stock options | 8,644 | 39,005 | 46,401 | ||||||||||
Tax withholding obligations on restricted shares | 81,967 | 42,785 | 24,953 | ||||||||||
Total | 108,894 | 201,962 | 766,899 | ||||||||||
Value of Common Stock Shares Repurchased | ' | ||||||||||||
Value of common stock shares repurchased: | |||||||||||||
Year Ended | Year Ended | Year Ended | |||||||||||
December 31, | December 31, | December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||||
Private transaction | $ | — | $ | — | $ | 14,927 | |||||||
Repurchase program | — | 1,201 | 3,099 | ||||||||||
Exercise of stock options | 405 | 1,660 | 1,651 | ||||||||||
Tax withholding obligations on stock options | 194 | 949 | 1,658 | ||||||||||
Tax withholding obligations on restricted shares | 1,628 | 950 | 713 | ||||||||||
Total | $ | 2,227 | $ | 4,760 | $ | 22,048 |
Quarterly_Financial_Informatio1
Quarterly Financial Information (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||
Schedule of Quarterly Financial Information | ' | ||||||||||||||||
Quarter ended: | March 31 | June 30 | September 30 | December 31 | |||||||||||||
2013 | |||||||||||||||||
Service revenue | $ | 2,929 | $ | 3,022 | $ | 3,030 | $ | 2,650 | |||||||||
Subscription revenue | 1,384 | 1,433 | 1,424 | 1,350 | |||||||||||||
License revenue | 5,930 | 6,015 | 2,971 | 2,826 | |||||||||||||
Total revenue | 10,243 | 10,470 | 7,425 | 6,826 | |||||||||||||
Total cost of revenue | 2,134 | 2,120 | 1,955 | 1,996 | |||||||||||||
Gross profit | 8,109 | 8,350 | 5,470 | 4,830 | |||||||||||||
Gross profit percent, service revenue | 52 | % | 53 | % | 59 | % | 52 | % | |||||||||
Gross profit percent, subscription revenue | 54 | % | 59 | % | 56 | % | 52 | % | |||||||||
Gross profit percent, license revenue | 98 | % | 98 | % | 97 | % | 97 | % | |||||||||
Gross profit percent, total | 79 | % | 80 | % | 74 | % | 71 | % | |||||||||
Sales and marketing | $ | 1,277 | $ | 1,563 | $ | 1,482 | $ | 1,822 | |||||||||
Research, development and engineering | 2,725 | 2,822 | 3,277 | 3,450 | |||||||||||||
General and administrative | 2,186 | 2,348 | 2,456 | 2,635 | |||||||||||||
Intellectual property | 277 | 261 | 278 | 313 | |||||||||||||
Operating income (loss) | 1,644 | 1,356 | (2,023 | ) | (3,390 | ) | |||||||||||
Net income (loss) | 971 | 602 | (795 | ) | (1,285 | ) | |||||||||||
Earnings (loss) per common share: | |||||||||||||||||
Earnings (loss) per common share—basic | $ | 0.13 | $ | 0.08 | $ | (0.12 | ) | $ | (0.19 | ) | |||||||
Earnings (loss) per common share—diluted | $ | 0.13 | $ | 0.08 | $ | (0.12 | ) | $ | (0.19 | ) | |||||||
Weighted average common shares outstanding—basic | 6,838 | 6,850 | 6,860 | 6,913 | |||||||||||||
Weighted average common shares outstanding—diluted | 7,058 | 7,090 | 6,860 | 6,913 | |||||||||||||
Quarter ended: | March 31 | June 30 | September 30 | December 31 | |||||||||||||
2012 | |||||||||||||||||
Service revenue | $ | 3,048 | $ | 2,609 | $ | 2,616 | $ | 2,519 | |||||||||
Subscription revenue | 278 | 317 | 327 | 559 | |||||||||||||
License revenue | 13,720 | 6,186 | 5,960 | 6,236 | |||||||||||||
Total revenue | 17,046 | 9,112 | 8,903 | 9,314 | |||||||||||||
Total cost of revenue | 1,810 | 1,583 | 1,467 | 1,648 | |||||||||||||
Gross profit | 15,236 | 7,529 | 7,436 | 7,666 | |||||||||||||
Gross profit percent, service revenue | 44 | % | 43 | % | 48 | % | 45 | % | |||||||||
Gross profit percent, subscription revenue | 83 | % | 86 | % | 86 | % | 61 | % | |||||||||
Gross profit percent, license revenue | 99 | % | 99 | % | 99 | % | 99 | % | |||||||||
Gross profit percent, total | 89 | % | 83 | % | 84 | % | 82 | % | |||||||||
Sales and marketing | $ | 1,007 | $ | 970 | $ | 937 | $ | 913 | |||||||||
Research, development and engineering | 1,998 | 2,146 | 2,320 | 2,277 | |||||||||||||
General and administrative | 2,758 | 2,191 | 2,282 | 2,226 | |||||||||||||
Intellectual property | 319 | 291 | 309 | 329 | |||||||||||||
Operating income | 9,154 | 1,931 | 1,588 | 1,921 | |||||||||||||
Net income | 4,999 | 1,216 | 1,003 | 1,054 | |||||||||||||
Earnings per common share: | |||||||||||||||||
Earnings per common share—basic | $ | 0.74 | $ | 0.17 | $ | 0.14 | $ | 0.15 | |||||||||
Earnings per common share—diluted | $ | 0.7 | $ | 0.17 | $ | 0.14 | $ | 0.14 | |||||||||
Weighted average common shares outstanding—basic | 6,738 | 6,737 | 6,761 | 6,791 | |||||||||||||
Weighted average common shares outstanding—diluted | 7,140 | 6,993 | 6,984 | 6,966 |
Description_of_Business_and_Su3
Description of Business and Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 0 Months Ended | 6 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 |
Accounting Policies [Abstract] | ' | ' | ' | ' |
Highly liquid marketable securities with original maturities | ' | ' | '90 days or less | ' |
Cash equivalents include money market funds, certificates of deposit, commercial paper, and investments in pre-refunded municipal bonds | $2,443 | ' | $2,443 | $5,878 |
Short-term marketable securities maturity description | ' | ' | 'Over 90 days that mature in less than one year | ' |
Marketable securities other-than temporary impairments | ' | ' | 0 | ' |
Credit exposure to any one financial institution or type of financial instrument | ' | ' | '5% of its cash equivalents and marketable securities or $1,000, whichever is greater | ' |
Percentage of credit exposure to any one financial institution or type of financial instrument | 5.00% | ' | 5.00% | ' |
Maximum amount of credit exposure to any one financial institution or type of financial instrument | ' | ' | 1,000 | ' |
Credit exposure limits of cash and cash equivalents and marketable securities | ' | ' | '40% of its cash equivalents and marketable securities, or $15,000, whichever is greater | ' |
Percentage of credit exposure limits based on cash and cash equivalents and marketable securities | ' | ' | 40.00% | ' |
Credit exposure limits of cash and cash equivalents and marketable securities under option two | ' | ' | 15,000 | ' |
Purchase price adjustment date | ' | ' | '1 year | ' |
Impairment of goodwill | ' | 0 | ' | ' |
Impairment losses of long-lived assets | $0 | ' | ' | ' |
Term of patent | ' | ' | '17 years | ' |
Likelihood percentage of income taxes realization | ' | ' | 50.00% | ' |
Description_of_Business_and_Su4
Description of Business and Summary of Significant Accounting Policies - Summary of Fair Value Hierarchy for Financial Assets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total | $33,596 | ' |
Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total | 33,596 | 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 | 2,343 | 901 |
Fair Value, Measurements, Recurring [Member] | Pre-refunded municipal bonds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total | 29,268 | 21,878 |
Fair Value, Measurements, Recurring [Member] | Corporate notes [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total | 1,180 | 10,100 |
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 | 331 | 1,637 |
Fair Value, Measurements, Recurring [Member] | Certificates of deposits [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total | 321 | 491 |
Fair Value, Measurements, Recurring [Member] | Other municipals [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total | 153 | 158 |
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] | 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 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total | 2,343 | 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 | 2,343 | 901 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total | 31,253 | 37,167 |
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 | 29,268 | 21,878 |
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 | 1,180 | 10,100 |
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 | 331 | 1,637 |
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 | 321 | 491 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Other municipals [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total | 153 | 158 |
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 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 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] | 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] | 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] | 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] | 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] | Other municipals [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, Measurements, Recurring [Member] | Level 3 [Member] | U.S. treasuries [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total | ' | ' |
Description_of_Business_and_Su5
Description of Business and Summary of Significant Accounting Policies - Summary of Fair Value Maturities for Financial Asset (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Fair Value Disclosures [Abstract] | ' |
Maturities, Total | $33,596 |
Maturities, Less than 1 year | 28,294 |
Maturities, 1-5 years | 5,302 |
Maturities, 5-10 years | ' |
Maturities, More than 10 year | ' |
Revenue_Recognition_Additional
Revenue Recognition - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 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 |
Acquisition_of_Attributor_Corp2
Acquisition of Attributor Corporation ("Attributor") - Summary of Purchase Price Allocation (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Business Acquisition [Line Items] | ' | ' |
Total purchase price | $5,632 | ' |
Less: Estimated fair value of net tangible assets acquired and (liabilities assumed): | ' | ' |
Cash and cash equivalents | 350 | ' |
Trade accounts receivable, net | 527 | ' |
Other current assets | 18 | ' |
Property and equipment, net | 102 | ' |
Deferred tax assets | 1,225 | ' |
Accounts payable and other accrued liabilities | -499 | ' |
Deferred revenue | -225 | ' |
Less: Estimated fair value of identifiable intangible assets acquired: | ' | ' |
Goodwill | 1,114 | 1,114 |
Existing technology [Member] | ' | ' |
Less: Estimated fair value of identifiable intangible assets acquired: | ' | ' |
Estimated fair value of identifiable intangible assets acquired | 1,560 | ' |
Customer relationships [Member] | ' | ' |
Less: Estimated fair value of identifiable intangible assets acquired: | ' | ' |
Estimated fair value of identifiable intangible assets acquired | 290 | ' |
Backlog [Member] | ' | ' |
Less: Estimated fair value of identifiable intangible assets acquired: | ' | ' |
Estimated fair value of identifiable intangible assets acquired | 760 | ' |
Tradenames [Member] | ' | ' |
Less: Estimated fair value of identifiable intangible assets acquired: | ' | ' |
Estimated fair value of identifiable intangible assets acquired | 290 | ' |
Non-solicitation agreements [Member] | ' | ' |
Less: Estimated fair value of identifiable intangible assets acquired: | ' | ' |
Estimated fair value of identifiable intangible assets acquired | $120 | ' |
Acquisition_of_Attributor_Corp3
Acquisition of Attributor Corporation ("Attributor") - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 |
Business Combinations [Abstract] | ' | ' | ' |
Reversal of contingent consideration liability | $190 | ' | ' |
Fair value of contingent consideration | $0 | $0 | $190 |
Patent_Licensing_Arrangement_w1
Patent Licensing Arrangement with Intellectual Ventures - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Installment | |||
Patents | |||
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Number of patents | 597 | ' | ' |
Number of patent applications | 288 | ' | ' |
License fee | $36,000,000 | ' | ' |
Number of installments in which license fee is increasing | 4 | ' | ' |
License issue fee installments period | '3 years | ' | ' |
Increase in installments | 6,775,000 | 12,550,000 | 11,400,000 |
Percentage of profits including license fee | 20.00% | ' | ' |
Responsibility in prosecution and maintenance costs per year | 1,000,000 | ' | ' |
Minimum value of paid support for maximizing the value of licensed assets | $4,000,000 | ' | ' |
Period for maximizing value of licensed assets | '5 years | ' | ' |
Intellectual Ventures (''IV'') [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Number of patents | 716 | ' | ' |
Number of patent applications | 59 | ' | ' |
Minimum [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Company's normal payment term | '30 days | ' | ' |
Maximum [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Company's normal payment term | '60 days | ' | ' |
Segment_Information_Additional
Segment Information - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment | |||||||||||
Revenue, Major Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of reporting segments | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' |
Proceeds from major customer | $6,826 | $7,425 | $10,470 | $10,243 | $9,314 | $8,903 | $9,112 | $17,046 | $34,964 | $44,375 | $36,039 |
Verance Corporation ("Verance") [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from major customer | ' | ' | ' | ' | ' | ' | ' | $8,852 | ' | ' | ' |
Sales [Member] | Verance Corporation ("Verance") [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue from segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | 27.00% | ' |
Sales [Member] | Minimum [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue from segments | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' |
Segment_Information_Geographic
Segment Information - Geographical Segment Revenue (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total | $6,826 | $7,425 | $10,470 | $10,243 | $9,314 | $8,903 | $9,112 | $17,046 | $34,964 | $44,375 | $36,039 |
Domestic [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total | ' | ' | ' | ' | ' | ' | ' | ' | 18,857 | 30,736 | 22,660 |
International [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total | ' | ' | ' | ' | ' | ' | ' | ' | $16,107 | $13,639 | $13,379 |
Segment_Information_Customers_
Segment Information - Customers Who Accounted for More than 10% of Company's Revenue (Detail) (Sales [Member]) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Central Banks [Member] | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Entity wide revenue major customer percentage | 33.00% | 23.00% | 27.00% |
Intellectual Ventures (''IV'') [Member] | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Entity wide revenue major customer percentage | 22.00% | 30.00% | 33.00% |
The Nielsen Company ("Nielsen") [Member] | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Entity wide revenue major customer percentage | 11.00% | ' | 11.00% |
Verance Corporation ("Verance") [Member] | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Entity wide revenue major customer percentage | ' | 27.00% | ' |
Segment_Information_Customers_1
Segment Information - Customers Who Accounted for More than 10% of Company's Revenue (Parenthetical) (Detail) (The Nielsen Company ("Nielsen") [Member], Sales [Member]) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Entity wide revenue major customer percentage | 11.00% | ' | 11.00% |
Maximum [Member] | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Entity wide revenue major customer percentage | 10.00% | ' | ' |
StockBased_Compensation_Additi
Stock-Based Compensation - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Contractual terms | '10 years | ' | ' |
Stock options granted | 0 | 0 | 215,000 |
Minimum [Member] | Employee [Member] | Stock Option [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Vesting period for stock options and restricted stock | '3 years | ' | ' |
Minimum [Member] | Director [Member] | Stock Option [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Vesting period for stock options and restricted stock | '1 year | ' | ' |
Maximum [Member] | Employee [Member] | Stock Option [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Vesting period for stock options and restricted stock | '4 years | ' | ' |
Maximum [Member] | Director [Member] | Stock Option [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Vesting period for stock options and restricted stock | '2 years | ' | ' |
StockBased_Compensation_Weight
Stock-Based Compensation - Weighted Average Assumptions and Results for Options Granted (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Expected volatility, minimum | ' | ' | 42.00% |
Expected volatility, maximum | ' | ' | 44.00% |
Risk-free interest rate, minimum | ' | ' | 1.00% |
Risk-free interest rate, maximum | ' | ' | 2.00% |
Expected dividend yield | ' | ' | 0.00% |
Fair value of stock options granted | ' | ' | $2,464 |
Minimum [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Expected life (in years) | ' | ' | '5 years 3 months 11 days |
Maximum [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Expected life (in years) | ' | ' | '5 years 9 months |
StockBased_Compensation_Alloca
Stock-Based Compensation - Allocation of Stock-Based Compensation (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Stock-based compensation expense | $4,502 | $5,256 | $4,216 |
Capitalized to patent costs | 137 | 108 | 65 |
Total stock-based compensation | 4,639 | 5,364 | 4,281 |
Cost of revenue [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Stock-based compensation expense | 533 | 603 | 593 |
Sales and marketing [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Stock-based compensation expense | 422 | 409 | 302 |
Research, development and engineering [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Stock-based compensation expense | 1,116 | 840 | 560 |
General and administrative [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Stock-based compensation expense | 2,183 | 3,148 | 2,568 |
Purchased patents and intellectual property [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Stock-based compensation expense | $248 | $256 | $193 |
StockBased_Compensation_Unreco
Stock-Based Compensation - Unrecognized Compensation Cost Related to Non-Vested Stock-Based Awards Granted (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ' | ' |
Unrecognized compensation costs | $9,711 | $8,333 | $9,463 |
StockBased_Compensation_Weight1
Stock-Based Compensation - Weighted Average Period for Recognition of Unrecognized Compensation Cost for Stock Options and Restricted Stock (Detail) | 12 Months Ended |
Dec. 31, 2013 | |
Stock Option [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Weighted average period | '9 months |
Restricted Stock [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Weighted average period | '1 year 7 months 28 days |
Earnings_Per_Common_Share_Summ
Earnings Per Common Share - Summary of Reconciliation of Earnings (Loss) Per Common Share (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Basic Earnings (Loss) per Common Share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | ($1,285) | ($795) | $602 | $971 | $1,054 | $1,003 | $1,216 | $4,999 | ($507) | $8,272 | $5,656 |
Distributed earnings to common shares | ' | ' | ' | ' | ' | ' | ' | ' | 3,013 | 2,214 | ' |
Distributed earnings to participating securities | ' | ' | ' | ' | ' | ' | ' | ' | 189 | 130 | ' |
Total distributed earnings | ' | ' | ' | ' | ' | ' | ' | ' | 3,202 | 2,344 | ' |
Undistributed earnings (loss) allocable to common shares | ' | ' | ' | ' | ' | ' | ' | ' | -3,709 | 5,639 | ' |
Undistributed earnings allocable to participating securities | ' | ' | ' | ' | ' | ' | ' | ' | ' | 289 | ' |
Total undistributed earnings (loss) | ' | ' | ' | ' | ' | ' | ' | ' | -3,709 | 5,928 | ' |
Earnings (loss) to common shares-basic | ' | ' | ' | ' | ' | ' | ' | ' | -696 | 7,853 | ' |
Weighted average common shares outstanding-basic | 6,913 | 6,860 | 6,850 | 6,838 | 6,791 | 6,761 | 6,737 | 6,738 | 6,866 | 6,757 | 6,741 |
Basic earnings (loss) per common share | ($0.19) | ($0.12) | $0.08 | $0.13 | $0.15 | $0.14 | $0.17 | $0.74 | ($0.10) | $1.16 | $0.84 |
Diluted Earnings (Loss) per Common Share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Earnings (loss) to common shares- basic | ' | ' | ' | ' | ' | ' | ' | ' | -696 | 7,853 | ' |
Undistributed earnings allocated to participating securities | ' | ' | ' | ' | ' | ' | ' | ' | ' | 289 | ' |
Undistributed earnings reallocated to participating securities | ' | ' | ' | ' | ' | ' | ' | ' | ' | -280 | ' |
Earnings (loss) to common shares-diluted | ' | ' | ' | ' | ' | ' | ' | ' | ($696) | $7,862 | ' |
Weighted average common shares outstanding-basic | 6,913 | 6,860 | 6,850 | 6,838 | 6,791 | 6,761 | 6,737 | 6,738 | 6,866 | 6,757 | 6,741 |
Dilutive effect of stock options | ' | ' | ' | ' | ' | ' | ' | ' | ' | 232 | ' |
Weighted average common shares outstanding-dilutive | 6,913 | 6,860 | 7,090 | 7,058 | 6,966 | 6,984 | 6,993 | 7,140 | 6,866 | 6,989 | 7,430 |
Diluted earnings (loss) per common share | ($0.19) | ($0.12) | $0.08 | $0.13 | $0.14 | $0.14 | $0.17 | $0.70 | ($0.10) | $1.12 | $0.76 |
Earnings_Per_Common_Share_Addi
Earnings Per Common Share - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Earnings Per Share [Abstract] | ' | ' | ' |
Common stock equivalents related to stock options that were anti-dilutive and excluded from diluted net income per share | 439,193 | 215,000 | 136,957 |
Earnings_Per_Common_Share_Basi
Earnings Per Common Share - Basic and Diluted Earnings Per Common Share Computed Using Weighted Average Number of Common Shares Outstanding (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Basic EPS | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income available to common shareholders | ($1,285) | ($795) | $602 | $971 | $1,054 | $1,003 | $1,216 | $4,999 | ($507) | $8,272 | $5,656 |
Income available to common shareholders, Shares | 6,913 | 6,860 | 6,850 | 6,838 | 6,791 | 6,761 | 6,737 | 6,738 | 6,866 | 6,757 | 6,741 |
Income available to common shareholders, Per Share | ($0.19) | ($0.12) | $0.08 | $0.13 | $0.15 | $0.14 | $0.17 | $0.74 | ($0.10) | $1.16 | $0.84 |
Diluted EPS | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income available to common shareholders | ($1,285) | ($795) | $602 | $971 | $1,054 | $1,003 | $1,216 | $4,999 | ($507) | $8,272 | $5,656 |
Income available to common shareholders, Shares | 6,913 | 6,860 | 7,090 | 7,058 | 6,966 | 6,984 | 6,993 | 7,140 | 6,866 | 6,989 | 7,430 |
Income available to common shareholders, Per Share | ($0.19) | ($0.12) | $0.08 | $0.13 | $0.14 | $0.14 | $0.17 | $0.70 | ($0.10) | $1.12 | $0.76 |
Stock Option [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Effect of Dilutive Securities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Effect of Dilutive Securities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 393 |
Restricted Stock [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Effect of Dilutive Securities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Effect of Dilutive Securities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 296 |
Trade_Accounts_Receivable_and_2
Trade Accounts Receivable and Allowance for Doubtful Accounts - Summary of Accounts Receivable (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Accounts Receivable Net Current [Abstract] | ' | ' |
Trade accounts receivable | $5,883 | $4,216 |
Allowance for doubtful accounts | -45 | ' |
Trade accounts receivable, net | 5,838 | 4,216 |
Unpaid deferred revenue included in accounts receivable | $3,319 | $1,589 |
Trade_Accounts_Receivable_and_3
Trade Accounts Receivable and Allowance for Doubtful Accounts - Additional Information (Detail) (Accounts Receivable [Member], Minimum [Member]) | 12 Months Ended |
Dec. 31, 2013 | |
Accounts Receivable [Member] | Minimum [Member] | ' |
Concentration Risk [Line Items] | ' |
Revenue from segments | 10.00% |
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 (Detail) (Accounts Receivable [Member]) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Central Banks [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Percentage of trade accounts receivable of major customers | 47.00% | 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 | 10.00% | 14.00% |
Property_and_Equipment_Additio
Property and Equipment - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2013 | |
Minimum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful lives of the assets | '2 years |
Maximum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful lives of the assets | '7 years |
Property_and_Equipment_Depreci
Property and Equipment - Depreciation and Amortization on Property and Equipment Using the Straight-Line Method (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Property Plant And Equipment [Abstract] | ' | ' |
Office furniture and fixtures | $762 | $420 |
Equipment | 3,127 | 1,886 |
Leasehold improvements | 1,137 | 1,083 |
Gross property and equipment | 5,026 | 3,389 |
Less accumulated depreciation and amortization | -2,631 | -1,936 |
Property and equipment, net | $2,395 | $1,453 |
Property_and_Equipment_Future_
Property and Equipment - Future Minimum Lease Payments under Non-Cancelable Operating Leases (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Operating Leases Future Minimum Payments Due [Abstract] | ' |
2014 | $1,074 |
2015 | 1,112 |
2016 | 808 |
2017 | 3 |
2018 | ' |
Thereafter | ' |
Total minimum lease payments | $2,997 |
Property_and_Equipment_Operati
Property and Equipment - Operating Leases Rent Expense (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Operating Leases Rent Expense [Abstract] | ' | ' | ' |
Rent expense | $925 | $776 | $866 |
Intangibles_Additional_Informa
Intangibles - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Aggregate amortization expense | $1,196 | $315 | $124 |
Capitalized patent costs [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Estimated useful life | '17 years | ' | ' |
Intangibles_Amortization_of_In
Intangibles - Amortization of Intangible Assets Acquired (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Capitalized patent costs | $5,157 | $3,973 |
Intangible assets acquired: | ' | ' |
Gross intangible assets | 8,427 | 7,243 |
Accumulated amortization | -1,718 | -522 |
Intangible assets, net | 6,709 | 6,721 |
Purchased patents and intellectual property [Member] | ' | ' |
Intangible assets acquired: | ' | ' |
Intangible assets amount | 250 | 250 |
Purchased patents and intellectual property [Member] | Minimum [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Estimated useful life | '3 years | ' |
Purchased patents and intellectual property [Member] | Maximum [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Estimated useful life | '10 years | ' |
Existing technology [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Estimated useful life | '5 years | ' |
Intangible assets acquired: | ' | ' |
Intangible assets amount | 1,560 | 1,560 |
Customer relationships [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Estimated useful life | '7 years | ' |
Intangible assets acquired: | ' | ' |
Intangible assets amount | 290 | 290 |
Backlog [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Estimated useful life | '2 years | ' |
Intangible assets acquired: | ' | ' |
Intangible assets amount | 760 | 760 |
Tradenames [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Estimated useful life | '3 years | ' |
Intangible assets acquired: | ' | ' |
Intangible assets amount | 290 | 290 |
Non-solicitation agreements [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Estimated useful life | '1 year | ' |
Intangible assets acquired: | ' | ' |
Intangible assets amount | $120 | $120 |
Capitalized patent costs [Member] | Minimum [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Estimated useful life | '17 years | ' |
Capitalized patent costs [Member] | Maximum [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Estimated useful life | '20 years | ' |
Intangibles_Estimated_Future_A
Intangibles - Estimated Future Aggregate Amortization Expense (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Finite Lived Intangible Assets Future Amortization Expense [Abstract] | ' |
2014 | $1,012 |
2015 | 640 |
2016 | 507 |
2017 | 479 |
2018 | $184 |
Shareholders_Equity_Additional
Shareholders' Equity - Additional Information (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
Series A Preferred Stock [Member] | Common Stock [Member] | Stock Option [Member] | Restricted Stock [Member] | |||||
Stock Incentive Plan [Member] | ||||||||
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, shares authorized | 2,500,000 | 2,500,000 | ' | ' | ' | ' | ' | ' |
Preferred stock, par value | $0.00 | $0.00 | ' | ' | ' | ' | ' | ' |
Authorized shares of Series A Redeemable Nonvoting Preferred stock | ' | ' | ' | ' | 10,000 | 2,500,000 | ' | ' |
Series A Preferred redeemable stated fair value | ' | ' | ' | ' | $5 | ' | ' | ' |
Series A Preferred stock dividend rights | ' | ' | ' | ' | $0 | ' | ' | ' |
Series A Preferred stock undistributed earnings | ' | ' | ' | ' | $0 | ' | ' | ' |
Common stock, shares authorized | 50,000,000 | 50,000,000 | ' | ' | ' | ' | ' | ' |
Common stock, par value | $0.00 | $0.00 | ' | ' | ' | ' | ' | ' |
Stock-based compensation plans, equity awards | ' | ' | ' | ' | ' | ' | 609,168 | ' |
Intrinsic value is based on closing price of per share of Digimarc common stock | ' | ' | ' | ' | ' | ' | $19.26 | ' |
Options with exercise prices less than per share | $15.44 | $15.16 | $14.23 | $10.47 | ' | ' | $19.26 | ' |
Vesting period for stock options and restricted stock | ' | ' | ' | ' | ' | ' | ' | '4 years |
Shareholders_Equity_Summary_of
Shareholders' Equity - Summary of Options Granted, Exercised and Canceled (Detail) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ' | ' |
Outstanding at beginning | 855,988 | 1,028,238 | 993,491 |
Weighted Average Exercise Price at beginning | $15.16 | $14.23 | $10.47 |
Options, Granted | 0 | 0 | 215,000 |
Options, Exercised | -42,050 | -172,250 | -169,420 |
Options, Canceled | -416 | ' | -10,833 |
Outstanding at ending | 813,522 | 855,988 | 1,028,238 |
Exercisable at ending | 740,781 | ' | ' |
Unvested at ending | 72,741 | ' | ' |
Weighted Average Exercise Price Options, Granted | ' | ' | $27.84 |
Weighted Average Exercise Price Options, Exercised | $9.64 | $9.64 | $9.75 |
Weighted Average Exercise Price Options, Canceled | $14.99 | ' | $9.64 |
Weighted Average Exercise Price at ending | $15.44 | $15.16 | $14.23 |
Weighted Average Exercise Exercisable at ending | $14.30 | ' | ' |
Weighted Average Grant Date Fair Value at beginning | $7.88 | $7.61 | $6.55 |
Weighted Average Exercise Unvested at ending | $27.06 | ' | ' |
Weighted Average Grant Date Fair Value Options, Granted | ' | ' | $11.46 |
Weighted Average Grant Date Fair Value Options, Exercised | $6.30 | $6.29 | $6.33 |
Weighted Average Grant Date Fair Value Options, Canceled | $8.12 | ' | $6.28 |
Weighted Average Grant Date Fair Value at ending | $7.96 | $7.88 | $7.61 |
Aggregate Intrinsic Value Outstanding at ending | $4,950 | ' | ' |
Aggregate Intrinsic Value Exercisable at ending | 4,942 | ' | ' |
Aggregate Intrinsic Value Unvested at ending | $8 | ' | ' |
Shareholders_Equity_Summary_of1
Shareholders' Equity - Summary of Information about Stock Options Outstanding (Detail) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Exercise Price, Lower Range Limit | $9.64 |
Exercise Price, Upper Range Limit | $30.01 |
Number Outstanding | 813,522 |
Remaining Contractual Life (Years), Outstanding | '5 years 6 months 29 days |
Weighted Average Price, Outstanding | $15.44 |
Number Exercisable | 740,781 |
Remaining Contractual Life (Years), Exercisable | '5 years 4 months 21 days |
Weighted Average Price, Exercisable | $14.30 |
Exercise Price $9.64 - $9.91 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Exercise Price, Lower Range Limit | $9.64 |
Exercise Price, Upper Range Limit | $9.91 |
Number Outstanding | 466,022 |
Remaining Contractual Life (Years), Outstanding | '4 years 8 months 23 days |
Weighted Average Price, Outstanding | $9.66 |
Number Exercisable | 466,022 |
Remaining Contractual Life (Years), Exercisable | '4 years 8 months 23 days |
Weighted Average Price, Exercisable | $9.66 |
Exercise Price $14.99 - $18.01 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Exercise Price, Lower Range Limit | $14.99 |
Exercise Price, Upper Range Limit | $18.01 |
Number Outstanding | 132,500 |
Remaining Contractual Life (Years), Outstanding | '5 years 3 months 29 days |
Weighted Average Price, Outstanding | $15.67 |
Number Exercisable | 130,626 |
Remaining Contractual Life (Years), Exercisable | '5 years 3 months 26 days |
Weighted Average Price, Exercisable | $15.68 |
Exercise Price $24.35 - $30.01 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Exercise Price, Lower Range Limit | $24.35 |
Exercise Price, Upper Range Limit | $30.01 |
Number Outstanding | 215,000 |
Remaining Contractual Life (Years), Outstanding | '7 years 6 months 29 days |
Weighted Average Price, Outstanding | $27.84 |
Number Exercisable | 144,133 |
Remaining Contractual Life (Years), Exercisable | '7 years 6 months 18 days |
Weighted Average Price, Exercisable | $28.07 |
Shareholders_Equity_Reconcilia
Shareholders' Equity - Reconciliation of Unvested Balance of Restricted Stock (Detail) (Restricted Stock [Member], USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Restricted Stock [Member] | ' | ' | ' |
Number of Shares | ' | ' | ' |
Unvested, beginning balance | 369,083 | 296,710 | 197,760 |
Granted | 388,190 | 202,340 | 190,180 |
Vested | -220,514 | -117,667 | -73,110 |
Canceled | -88,633 | -12,300 | -18,120 |
Unvested, ending balance | 448,126 | 369,083 | 296,710 |
Weighted Average Grant Date Fair Value | ' | ' | ' |
Unvested, beginning balance | $21.72 | $21.51 | $14.25 |
Granted | $20.15 | $22.51 | $29.12 |
Vested | $23.21 | $22.52 | $20.82 |
Canceled | $20.35 | $22.05 | $19.24 |
Unvested, ending balance | $19.89 | $21.72 | $21.51 |
Defined_Contribution_Pension_P2
Defined Contribution Pension Plan - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2013 | |
Compensation And Retirement Disclosure [Abstract] | ' |
Employees may contribute their pay to the Plan | 75.00% |
Defined_Contribution_Pension_P3
Defined Contribution Pension Plan - Statement of Company Made Matching Contributions (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Compensation And Retirement Disclosure [Abstract] | ' | ' | ' |
Matching contributions | $396 | $366 | $349 |
Joint_Venture_and_Related_Part2
Joint Venture and Related Party Transactions - Additional Information (Detail) (USD $) | 1 Months Ended | 33 Months Ended | 54 Months Ended | 1 Months Ended | 25 Months Ended | 1 Months Ended | 25 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Apr. 30, 2012 | Jul. 31, 2011 | Dec. 31, 2013 | Apr. 30, 2012 | Jul. 31, 2011 | Dec. 31, 2013 |
JointVenture | TVaura LLC [Member] | TVaura LLC [Member] | TVaura LLC [Member] | TVaura Mobile LLC [Member] | TVaura Mobile LLC [Member] | TVaura Mobile LLC [Member] | ||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity method investment, ownership percentage | ' | ' | ' | ' | ' | ' | 51.00% | ' | ' | 49.00% |
Number of joint venture agreements | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' |
License agreement payment | ' | ' | $18,750 | ' | ' | ' | ' | ' | ' | ' |
Technical and development services to the joint ventures | ' | 6,848 | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate initial cash contributions | ' | ' | ' | ' | ' | 3,500 | ' | ' | 2,500 | ' |
One-time severance and suspension costs | 500 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating expenses and suspension related costs returned | ' | ' | ' | ' | 104 | ' | ' | ' | ' | ' |
Net payment of operating expenses and suspension related costs | ' | ' | ' | ' | ' | ' | ' | 796 | ' | ' |
Investment in joint ventures | ' | ' | $0 | $0 | ' | ' | ' | ' | ' | ' |
Joint_Venture_and_Related_Part3
Joint Venture and Related Party Transactions - Related Party Transactions (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Related Party Transaction [Line Items] | ' | ' | ' |
Capital contributions, net | ' | $692 | $2,100 |
Revenue | ' | 272 | 2,640 |
TVaura LLC [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Capital contributions, net | ' | -104 | 1,200 |
Revenue | ' | ' | 2,640 |
TVaura Mobile LLC [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Capital contributions, net | ' | 796 | 900 |
Revenue | ' | $272 | ' |
Joint_Venture_and_Related_Part4
Joint Venture and Related Party Transactions - Summarized Financial Data (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current assets | $37,158 | ' | ' | ' | $37,501 | ' | ' | ' | $37,158 | $37,501 | ' |
Current liabilities | 5,778 | ' | ' | ' | 3,655 | ' | ' | ' | 5,778 | 3,655 | ' |
Noncurrent liabilities | 496 | ' | ' | ' | 673 | ' | ' | ' | 496 | 673 | ' |
Revenue | 6,826 | 7,425 | 10,470 | 10,243 | 9,314 | 8,903 | 9,112 | 17,046 | 34,964 | 44,375 | 36,039 |
Gross profit | 4,830 | 5,470 | 8,350 | 8,109 | 7,666 | 7,436 | 7,529 | 15,236 | 26,759 | 37,867 | 29,102 |
Operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | 29,171 | 23,273 | 22,713 |
TVaura LLC [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Noncurrent assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Noncurrent liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross profit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | 52 | 2,699 |
Net loss from continuing operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | -52 | -2,699 |
The Company's pro-rata share - net loss | ' | ' | ' | ' | ' | ' | ' | ' | ' | -27 | -1,376 |
The Company's gain on investment | ' | ' | ' | ' | ' | ' | ' | ' | ' | 70 | ' |
TVaura Mobile LLC [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current assets | 932 | ' | ' | ' | 937 | ' | ' | ' | 932 | 937 | ' |
Noncurrent assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current liabilities | 957 | ' | ' | ' | 957 | ' | ' | ' | 957 | 957 | ' |
Noncurrent liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 105 |
Gross profit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 105 |
Operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | 5 | 2,266 | 2,848 |
Net loss from continuing operations | ' | ' | ' | ' | ' | ' | ' | ' | -5 | -2,266 | -2,743 |
The Company's pro-rata share - net loss | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1,100 | -1,338 |
The Company's gain on investment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ($50) | ' |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Effective tax rate | 78.00% | 39.00% | -46.00% |
Tax benefit | ($1,796) | $5,394 | ($1,786) |
State deferred tax assets, valuation allowance | 371 | 184 | ' |
Acquisition of outstanding stock of Attributor Corporation | ' | 100.00% | ' |
Change in valuation allowance | 187 | 12 | -2,581 |
Federal net operating loss carry-forwards | 7,455 | ' | ' |
State net operating loss carry-forwards | 11,293 | ' | ' |
Minimum maturity period for federal net operating loss carry-forward | '7 years | ' | ' |
Maximum maturity period for federal net operating loss carry-forward | '20 years | ' | ' |
Minimum maturity period for state net operating loss carry-forward | '7 years | ' | ' |
Maximum maturity period for state net operating loss carry-forward | '20 years | ' | ' |
Federal research and experimental tax credits | 1,167 | ' | ' |
State research and experimental tax credits | 156 | ' | ' |
Minimum maturity period for federal research and experimental tax credit carry-forward | '5 years | ' | ' |
Maximum maturity period for federal research and experimental tax credit carry-forward | '20 years | ' | ' |
Minimum maturity period for state research and experimental tax credit carry-forward | '5 years | ' | ' |
Maximum maturity period for state research and experimental tax credit carry-forward | '20 years | ' | ' |
Foreign tax credits | 55 | ' | ' |
Minimum maturity period for foreign tax credit carry-forward | '6 years | ' | ' |
Maximum maturity period for foreign tax credit carry-forward | '9 years | ' | ' |
Accrued interest and penalties associated with uncertain tax positions | $3 | $0 | $0 |
Income_Taxes_Components_of_Tax
Income Taxes - Components of Tax Expense (Benefit) Allocated to Continuing Operations (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Current: | ' | ' | ' |
Federal | ($1,420) | $4,699 | $1,066 |
State | 1 | 570 | 3 |
Foreign | 5 | 1 | -20 |
Sub-total | -1,414 | 5,270 | 1,049 |
Deferred: | ' | ' | ' |
Federal | -204 | 97 | -2,470 |
State | -178 | 27 | -365 |
Foreign | ' | ' | ' |
Sub-total | -382 | 124 | -2,835 |
Total tax expense (benefit) | ($1,796) | $5,394 | ($1,786) |
Income_Taxes_Reconciliation_of
Income Taxes - Reconciliation of the Statutory Federal Income Tax Rate to the Company's Effective Income Tax Rate (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Income taxes computed at statutory rates | ($783) | $4,647 | $1,316 |
Increases (decreases) resulting from: | ' | ' | ' |
State income taxes, net of federal tax benefit | -301 | 705 | 194 |
Federal and state research and experimentation credits | -918 | -122 | -784 |
Change in valuation allowance | 187 | 12 | -2,581 |
Transaction costs | ' | 65 | ' |
Impact of federal graduated rates | ' | 39 | ' |
Other | 19 | 48 | 69 |
Total tax expense (benefit) | ($1,796) | $5,394 | ($1,786) |
Income taxes computed at statutory rates, Percentage | 34.00% | 34.00% | 34.00% |
Increases (decreases) resulting from: | ' | ' | ' |
State income taxes, net of federal tax benefit, Percentage | 13.00% | 5.00% | 5.00% |
Federal and state research and experimentation credits, Percentage | 40.00% | -1.00% | -20.00% |
Change in valuation allowance, Percentage | -8.00% | ' | -67.00% |
Transaction costs, Percentage | ' | 1.00% | ' |
Other, Percentage | -1.00% | ' | 2.00% |
Total, Percentage | 78.00% | 39.00% | -46.00% |
Income_Taxes_Tax_Effects_of_Si
Income Taxes - Tax Effects of Significant Items Comprising the Company's Deferred Tax Assets and Deferred Tax Liabilities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ' | ' |
Stock based compensation | $2,305 | $2,636 |
Federal and state net operating losses | 3,153 | 1,900 |
Goodwill | 1,037 | 1,146 |
Accrued compensation | 22 | 50 |
Deferred rent | 158 | 170 |
Federal and state research and experimentation credits | 92 | ' |
Other | 33 | ' |
Total gross deferred tax assets | 6,800 | 5,902 |
Less valuation allowance | -371 | -184 |
Net deferred tax assets | 6,429 | 5,718 |
Deferred tax liabilities: | ' | ' |
Patent expenditures | -1,695 | -1,385 |
Fixed asset differences | -461 | -167 |
Intangible asset differences | -233 | -506 |
Other | -16 | -18 |
Total deferred tax liabilities | -2,405 | -2,076 |
Net deferred tax assets | $4,024 | $3,642 |
Income_Taxes_Summary_of_Reconc
Income Taxes - Summary of Reconciliation of the Company's Uncertain Tax Positions (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Reconciliation Of Unrecognized Tax Benefits Excluding Amounts Pertaining To Examined Tax Returns [Roll Forward] | ' | ' | ' |
Beginning balance | $108 | $102 | ' |
Addition for current year tax positions | 105 | 6 | 30 |
Addition for prior year tax positions | 6 | ' | 72 |
Settlements with taxing authorities | ' | ' | ' |
Lapsing of statutes of limitations | ' | ' | ' |
Ending balance | $219 | $108 | $102 |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2013 | |
Cases | |
Patents | |
Loss Contingencies [Line Items] | ' |
Number of patents | 4 |
Number of case | 1 |
Minimum [Member] | ' |
Loss Contingencies [Line Items] | ' |
Number of defendants | 90 |
Stock_Repurchases_Summary_of_C
Stock Repurchases - Summary of Common Stock Shares Repurchased (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Equity, Class of Treasury Stock [Line Items] | ' | ' | ' |
Private transaction | ' | ' | 552,536 |
Repurchase program | ' | 50,900 | 104,577 |
Total | 108,894 | 201,962 | 766,899 |
Stock Option [Member] | ' | ' | ' |
Equity, Class of Treasury Stock [Line Items] | ' | ' | ' |
Exercise of stock options | 18,283 | 69,272 | 48,432 |
Tax withholding obligations | 8,644 | 39,005 | 46,401 |
Restricted Stock [Member] | ' | ' | ' |
Equity, Class of Treasury Stock [Line Items] | ' | ' | ' |
Tax withholding obligations | 81,967 | 42,785 | 24,953 |
Stock_Repurchases_Value_of_Com
Stock Repurchases - Value of Common Stock Shares Repurchased (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Equity, Class of Treasury Stock [Line Items] | ' | ' | ' |
Private transaction | ' | ' | $14,927 |
Repurchase program | ' | 1,201 | 3,099 |
Exercise of stock options | 405 | 1,660 | 1,651 |
Total | 1,822 | 3,100 | 20,397 |
Stock Option [Member] | ' | ' | ' |
Equity, Class of Treasury Stock [Line Items] | ' | ' | ' |
Tax withholding obligations | 194 | 949 | 1,658 |
Restricted Stock [Member] | ' | ' | ' |
Equity, Class of Treasury Stock [Line Items] | ' | ' | ' |
Tax withholding obligations | $1,628 | $950 | $713 |
Stock_Repurchases_Additional_I
Stock Repurchases - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | 0 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Apr. 30, 2012 | Nov. 30, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jan. 26, 2011 |
Koninklijke Philips Electronics, N.V. [Member] | ||||||
Equity, Class of Treasury Stock [Line Items] | ' | ' | ' | ' | ' | ' |
Common stock repurchased | 223,851 | ' | 43,293 | ' | ' | 552,536 |
Common stock repurchased, value | ' | ' | $1,822 | $3,100 | $20,397 | $14,927 |
Aggregate purchase price | 4,858 | ' | 1,002 | ' | ' | ' |
Repurchase of an additional shares of common stock | ' | $5,000 | ' | ' | ' | ' |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (Subsequent Events [Member], USD $) | 0 Months Ended |
Feb. 20, 2014 | |
Subsequent Events [Member] | ' |
Subsequent Event [Line Items] | ' |
Declared quarterly dividend | $0.11 |
Dividend declared date | 20-Feb-14 |
Dividend date to be paid | 10-Mar-14 |
Dividend date of record | 3-Mar-14 |
Quarterly_Financial_Informatio2
Quarterly Financial Information - Schedule of Quarterly Financial Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Statement [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Service revenue | $2,650 | $3,030 | $3,022 | $2,929 | $2,519 | $2,616 | $2,609 | $3,048 | $11,631 | $10,792 | $12,395 |
Subscription revenue | 1,350 | 1,424 | 1,433 | 1,384 | 559 | 327 | 317 | 278 | 5,591 | 1,481 | 1,378 |
License revenue | 2,826 | 2,971 | 6,015 | 5,930 | 6,236 | 5,960 | 6,186 | 13,720 | 17,742 | 32,102 | 22,266 |
Total revenue | 6,826 | 7,425 | 10,470 | 10,243 | 9,314 | 8,903 | 9,112 | 17,046 | 34,964 | 44,375 | 36,039 |
Total cost of revenue | 1,996 | 1,955 | 2,120 | 2,134 | 1,648 | 1,467 | 1,583 | 1,810 | 8,205 | 6,508 | 6,937 |
Gross profit | 4,830 | 5,470 | 8,350 | 8,109 | 7,666 | 7,436 | 7,529 | 15,236 | 26,759 | 37,867 | 29,102 |
Gross profit percent, service revenue | 52.00% | 59.00% | 53.00% | 52.00% | 45.00% | 48.00% | 43.00% | 44.00% | ' | ' | ' |
Gross profit percent, subscription revenue | 52.00% | 56.00% | 59.00% | 54.00% | 61.00% | 86.00% | 86.00% | 83.00% | ' | ' | ' |
Gross profit percent, license revenue | 97.00% | 97.00% | 98.00% | 98.00% | 99.00% | 99.00% | 99.00% | 99.00% | ' | ' | ' |
Gross profit percent, total | 71.00% | 74.00% | 80.00% | 79.00% | 82.00% | 84.00% | 83.00% | 89.00% | ' | ' | ' |
Sales and marketing | 1,822 | 1,482 | 1,563 | 1,277 | 913 | 937 | 970 | 1,007 | 6,144 | 3,827 | 4,336 |
Research, development and engineering | 3,450 | 3,277 | 2,822 | 2,725 | 2,277 | 2,320 | 2,146 | 1,998 | 12,274 | 8,741 | 7,327 |
General and administrative | 2,635 | 2,456 | 2,348 | 2,186 | 2,226 | 2,282 | 2,191 | 2,758 | 9,624 | 9,457 | 9,956 |
Intellectual property | 313 | 278 | 261 | 277 | 329 | 309 | 291 | 319 | 1,129 | 1,248 | 1,094 |
Operating income (loss) | -3,390 | -2,023 | 1,356 | 1,644 | 1,921 | 1,588 | 1,931 | 9,154 | -2,412 | 14,594 | 6,389 |
Net income (loss) | ($1,285) | ($795) | $602 | $971 | $1,054 | $1,003 | $1,216 | $4,999 | ($507) | $8,272 | $5,656 |
Earnings (loss) per common share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Earnings (loss) per common share-basic | ($0.19) | ($0.12) | $0.08 | $0.13 | $0.15 | $0.14 | $0.17 | $0.74 | ($0.10) | $1.16 | $0.84 |
Earnings (loss) per common share-diluted | ($0.19) | ($0.12) | $0.08 | $0.13 | $0.14 | $0.14 | $0.17 | $0.70 | ($0.10) | $1.12 | $0.76 |
Weighted average common shares outstanding-basic | 6,913 | 6,860 | 6,850 | 6,838 | 6,791 | 6,761 | 6,737 | 6,738 | 6,866 | 6,757 | 6,741 |
Weighted average common shares outstanding-diluted | 6,913 | 6,860 | 7,090 | 7,058 | 6,966 | 6,984 | 6,993 | 7,140 | 6,866 | 6,989 | 7,430 |