Digimarc (DMRC) 10-Q 23 Jul 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Jul. 16, 2015
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2
Trading Symbol	DMRC
Entity Registrant Name	Digimarc CORP
Entity Central Index Key	1,438,231
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		8,558,107

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 4,047	$ 6,122
Marketable securities	29,999	32,201
Trade accounts receivable, net	3,020	4,545
Other current assets	2,575	2,611
Total current assets	39,641	45,479
Marketable securities		749
Property and equipment, net	2,786	2,976
Intangibles, net	6,728	6,720
Goodwill	1,114	1,114
Other assets	304	378
Total assets	50,573	57,416
Current liabilities:
Accounts payable and other accrued liabilities	1,387	1,379
Deferred revenue	2,290	3,660
Total current liabilities	3,677	5,039
Deferred rent and other long-term liabilities	219	203
Total liabilities	$ 3,896	$ 5,242
Commitments and contingencies (Note 12)
Shareholders' equity:
Preferred stock (par value $0.001 per share, 2,500 authorized, 10 shares issued and outstanding at June 30, 2015 and December 31, 2014)	$ 50	$ 50
Common stock (par value $0.001 per share, 50,000 authorized, 8,553 and 8,427 shares issued and outstanding at June 30, 2015 and December 31, 2014, respectively)	9	8
Additional paid-in capital	62,886	60,222
Accumulated deficit	(16,268)	(8,106)
Total shareholders' equity	46,677	52,174
Total liabilities and shareholders' equity	$ 50,573	$ 57,416

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands	Jun. 30, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	2,500	2,500
Preferred stock, shares issued	10	10
Preferred stock, shares outstanding	10	10
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	50,000	50,000
Common stock, shares issued	8,553	8,427
Common stock, shares outstanding	8,553	8,427

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Revenue:
Service	$ 3,235	$ 2,716	$ 6,736	$ 5,704
Subscription	1,670	1,496	3,386	2,908
License	893	1,451	1,665	4,256
Total revenue	5,798	5,663	11,787	12,868
Cost of revenue:
Service	1,497	1,169	3,075	2,583
Subscription	866	699	1,620	1,348
License	86	84	170	167
Total cost of revenue	2,449	1,952	4,865	4,098
Gross profit	3,349	3,711	6,922	8,770
Operating expenses:
Sales and marketing	2,098	2,052	4,188	3,931
Research, development and engineering	3,025	3,404	6,109	6,950
General and administrative	1,980	2,326	4,186	4,747
Intellectual property	291	387	658	921
Total operating expenses	7,394	8,169	15,141	16,549
Operating loss	(4,045)	(4,458)	(8,219)	(7,779)
Other income, net	32	21	55	48
Loss before income taxes	(4,013)	(4,437)	(8,164)	(7,731)
Benefit for income taxes	1	1,757	2	3,065
Net loss	$ (4,012)	$ (2,680)	$ (8,162)	$ (4,666)
Earnings (loss) per common share:
Loss per common share-basic	$ (0.50)	$ (0.38)	$ (1.02)	$ (0.68)
Loss per common share-diluted	$ (0.50)	$ (0.38)	$ (1.02)	$ (0.68)
Weighted average common shares outstanding-basic	8,029	7,113	7,995	7,057
Weighted average common shares outstanding-diluted	8,029	7,113	7,995	7,057
Cash dividends declared per common share		$ 0.11		$ 0.22

Consolidated Statements of Shar

Consolidated Statements of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings (Accumulated Deficit) [Member]
Balance at Dec. 31, 2013	$ 50,923	$ 50	$ 7	$ 41,498	$ 9,368
Balance, shares at Dec. 31, 2013		10	7,401
Exercise of stock options	1,176		$ 1	1,175
Exercise of stock options, shares			170
Issuance of restricted common stock	0	$ 0	$ 0	0	0
Issuance of restricted common stock, shares			82
Forfeiture of restricted common stock	0	0	$ 0	0	0
Forfeiture of restricted common stock, shares			(13)
Purchase and retirement of common stock	(1,440)			(1,440)
Purchase and retirement of common stock, shares			(68)
Stock-based compensation	2,718			2,718
Tax impact from stock-based awards	(609)			(609)
Net loss	(4,666)				(4,666)
Cash dividends declared	(1,654)				(1,654)
Balance at Jun. 30, 2014	46,448	$ 50	$ 8	43,342	3,048
Balance, shares at Jun. 30, 2014		10	7,572
Balance at Dec. 31, 2014	52,174	$ 50	$ 8	60,222	(8,106)
Balance, shares at Dec. 31, 2014		10	8,427
Exercise of stock options	$ 1,129		$ 1	1,128
Exercise of stock options, shares	71		71
Issuance of restricted common stock	$ 0	$ 0	$ 0	0	0
Issuance of restricted common stock, shares			119
Forfeiture of restricted common stock	0	0	$ 0	0	0
Forfeiture of restricted common stock, shares			(28)
Purchase and retirement of common stock	(1,035)			(1,035)
Purchase and retirement of common stock, shares			(36)
Stock-based compensation	2,571			2,571
Net loss	(8,162)				(8,162)
Balance at Jun. 30, 2015	$ 46,677	$ 50	$ 9	$ 62,886	$ (16,268)
Balance, shares at Jun. 30, 2015		10	8,553

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash flows from operating activities:
Net loss	$ (8,162)	$ (4,666)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation, amortization and write-off of property and equipment	604	459
Amortization and write-off of intangibles	520	606
Changes in allowance for doubtful accounts	16	(17)
Stock-based compensation	2,480	2,631
Deferred income taxes		(1,621)
Changes in operating assets and liabilities:
Trade accounts receivable	1,509	2,164
Other current assets	36	(1,412)
Other assets	74	84
Accounts payable and other accrued liabilities	(160)	(291)
Deferred revenue	(1,285)	(1,984)
Net cash used in operating activities	(4,368)	(4,047)
Cash flows from investing activities:
Purchase of property and equipment	(324)	(579)
Capitalized patent costs	(428)	(561)
Maturity of marketable securities	39,144	32,376
Purchase of marketable securities	(36,193)	(25,810)
Net cash provided by investing activities	2,199	5,426
Cash flows from financing activities:
Exercise of stock options	1,129	1,176
Purchase of common stock	(1,035)	(1,440)
Cash dividends paid		(1,654)
Net cash provided by (used in) financing activities	94	(1,918)
Net decrease in cash and cash equivalents	(2,075)	(539)
Cash and cash equivalents at beginning of period	6,122	3,811
Cash and cash equivalents at end of period	4,047	3,272
Supplemental disclosure of cash flow information:
Cash received for income taxes, net	2	12
Supplemental schedule of non-cash investing activities:
Stock-based compensation capitalized to patent costs and software	$ 91	$ 87

Description of Business and Sig

Description of Business and Significant Accounting Policies	6 Months Ended
	Jun. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business and Significant Accounting Policies	1. Description of Business and Significant Accounting Policies Description of Business Digimarc Corporation (“Digimarc” or the “Company”), an Oregon corporation, enables governments and enterprises around the world to give digital identities to media and objects that computers can sense and recognize and to which they can react. The Company has developed the Digimarc Barcode and Intuitive Computing Platform that are designed to optimize the identification of all consumer brand impressions, wherever and whenever they may appear, facilitating modern mobile-centric shopping. The platform includes means to embed “Digimarc Barcodes,” invisible and inaudible barcode-like information that is recognizable by smartphones, industrial scanners, and other computer interfaces into virtually all forms of media content, including consumer products packaging. Digimarc Barcodes have many applications, including facilitating remarkably faster scanning of products at retail checkout as well as improved engagement with smartphone-equipped consumers. The Digimarc Barcode is robust yet imperceptible by people in ordinary use, allowing for reliable, efficient, economical, globally scalable automatic identification of media without visible computer codes like traditional barcodes. Interim Consolidated Financial Statements The Company has adhered to the accounting policies set forth in its Annual Report on Form 10-K for the year ended December 31, 2014 in preparing the accompanying interim consolidated financial statements. The accompanying interim consolidated financial statements have been prepared from the Company’s records without audit and, in management’s opinion, include all adjustments (consisting of only normal recurring adjustments) necessary to fairly reflect the financial condition and the results of operations for the periods presented. Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) have been condensed or omitted in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). These interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, which was filed with the SEC on February 20, 2015. The results of operations for the interim periods presented in these consolidated financial statements are not necessarily indicative of the results for the full year. Reclassifications Certain prior period amounts in the accompanying 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. 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, 2015 and 2014, it was concluded that there was no impairment as the estimated fair value of the Company’s reporting unit substantially exceeded the carrying value. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “ Revenue from Contracts with Customers (Topic 606) On July 9, 2015, the FASB affirmed its proposal to defer the effective date of the new revenue standard for public entities by one year to annual reporting periods beginning after December 31, 2017, and interim periods beginning in the first interim period within the year of adoption. Early application would be permitted, but not before the original effective date for public entities, annual reporting periods after December 15, 2016, and interim periods beginning in the first interim period within the year of adoption.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	6 Months Ended
	Jun. 30, 2015
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	2. Fair Value of Financial Instruments The estimated fair values of the Company’s financial instruments, which include 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 June 30, 2015 and December 31, 2014, respectively, was as follows: June 30, 2015 Level 1 Level 2 Level 3 Total Money market securities $ 1,447 $ — $ — $ 1,447 Corporate notes — 19,141 — 19,141 Pre-refunded municipal bonds (1) — 9,203 — 9,203 Commercial paper — 2,149 — 2,149 Certificates of deposits — 845 — 845 Total $ 1,447 $ 31,338 $ — $ 32,785 December 31, 2014 Level 1 Level 2 Level 3 Total Money market securities $ 3,556 $ — $ — $ 3,556 Corporate notes — 19,245 — 19,245 Pre-refunded municipal bonds (1) — 13,317 — 13,317 Certificates of deposits — 2,176 — 2,176 Total $ 3,556 $ 34,738 $ — $ 38,294 (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 June 30, 2015 are as follows: Maturities by Period Total Less than 1-5 years 5-10 years More than Cash equivalents and marketable securities $ 32,785 $ 32,785 $ — $ — $ — 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 funds and certificates of deposit totaling $2,786 and $5,344 at June 30, 2015 and December 31, 2014, respectively. Cash equivalents are carried at cost or amortized cost, which approximates fair value.

Revenue Recognition

Revenue Recognition	6 Months Ended
	Jun. 30, 2015
Text Block [Abstract]
Revenue Recognition	3. Revenue Recognition The Company derives its revenue primarily from development services, subscriptions and licensing of its intellectual property: • Service revenue consists primarily of software development and consulting services. The majority of service revenue arrangements are structured as time and materials consulting agreements. • Subscription revenue includes Digimarc Discover, Barcode and Guardian products and services, is generally recurring, paid in advance and recognized over the term of the subscription. • License revenue originates primarily from licensing the Company’s intellectual property where the Company receives license fees and/or royalties as its income stream. Revenue is recognized in accordance with ASC 605 “ Revenue Recognition Software (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 licenses, and maintenance and support 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 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: • Service revenue is generally determined based on time and materials. Revenue for development and consulting 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 Digimarc Discover, Barcode and Guardian products and services, is generally paid in advance and recognized over the term of the subscription, which is generally one to three years. • 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 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 service, subscription and license contracts for which revenue has not been earned.

Segment Information

Segment Information	6 Months Ended
	Jun. 30, 2015
Segment Reporting [Abstract]
Segment Information	4. Segment Information Geographic Information The Company derives its revenue from a single reporting segment: media management solutions. Revenue is generated in this segment through development services, subscriptions and licensing of intellectual property. The Company markets its products in the U.S. and in non-U.S. countries through its sales and licensing personnel. Revenue by geographic area, based upon the “bill-to” location, was as follows: Three Three Six Six Domestic $ 1,758 $ 1,782 $ 3,445 $ 4,899 International (1) 4,040 3,881 8,342 7,969 Total $ 5,798 $ 5,663 $ 11,787 $ 12,868 (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 10% or more of the Company’s revenue are as follows: Three Three Six Six Central Banks 54 % 51 % 57 % 47 %

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jun. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	5. Stock-Based Compensation Stock-based compensation includes expense charges for all stock-based awards to employees and directors. These awards include stock option grants and restricted stock awards. Stock-based compensation expense related to internal labor is capitalized to patent costs and software based on direct labor hours charged to capitalized patent costs and software. Determining Fair Value Stock Options Valuation and Amortization Method. Expected Life. Expected Volatility. Risk-Free Interest Rate. Expected Dividend Yield. There were no stock options granted during the three- and six-month periods ended June 30, 2015 and 2014. The Company records stock-based compensation expense for stock option awards only for those awards that are expected to vest. 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, and is recognized over the vesting period using the straight-line method. The Company records stock-based compensation expense for restricted stock awards only for those awards that are expected to vest. Stock-based Compensation Three Three Six Six Stock-based compensation: Cost of revenue $ 213 $ 129 $ 398 $ 270 Sales and marketing 175 175 334 318 Research, development and engineering 328 364 615 720 General and administrative 484 607 1,002 1,156 Intellectual property 63 97 131 167 Stock-based compensation expense 1,263 1,372 2,480 2,631 Capitalized to patent costs and software 54 42 91 87 Total stock-based compensation expense $ 1,317 $ 1,414 $ 2,571 $ 2,718 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: As of As of Total unrecognized compensation costs $ 11,339 $ 11,206 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 June 30, 2015 for stock options and restricted stock over weighted average periods through June 2019 as follows: Stock Restricted Weighted average period 0.0 years 1.5 years Stock Option Activity As of June 30, 2015, under all of the Company’s stock-based compensation plans, equity awards to purchase an additional 1,425 shares were authorized for future grants under the plans. The Company issues new shares upon option exercises. The following table reconciles the outstanding balance of stock options: Three-months ended June 30, 2015: Options Weighted Weighted Aggregate Outstanding at March 31, 2015 556 $ 16.76 $ 8.40 Options granted — — — Options exercised (26 ) 9.64 6.30 Options forfeited or expired — — — Outstanding at June 30, 2015 530 $ 17.12 $ 8.51 $ 14,849 Six-months ended June 30, 2015: Options Weighted Weighted Aggregate Outstanding at December 31, 2014 601 $ 16.97 $ 8.42 Options granted — — — Options exercised (71 ) 15.83 7.79 Options forfeited or expired — — — Outstanding at June 30, 2015 530 $ 17.12 $ 8.51 $ 14,849 Exercisable at June 30, 2015 530 $ 17.12 $ 14,849 The aggregate intrinsic value is based on the closing price of $45.14 per share of Digimarc common stock on June 30, 2015, which would have been received by the optionees had all of the options with exercise prices less than $45.14 per share been exercised on that date. Restricted Stock Activity The following table reconciles the unvested balance of restricted stock: Three-months ended June 30, 2015: Number of Weighted Unvested balance, March 31, 2015 545 $ 23.97 Granted 29 $ 27.94 Vested (62 ) $ 26.17 Forfeited (23 ) $ 23.07 Unvested balance, June 30, 2015 489 $ 23.98 Six-months ended June 30, 2015: Number of Weighted Unvested balance, December 31, 2014 502 $ 23.09 Granted 119 $ 28.48 Vested (104 ) $ 24.94 Forfeited (28 ) $ 23.65 Unvested balance, June 30, 2015 489 $ 23.98 The following table indicates the fair value of all restricted stock awards that vested during the three- and six-months ended June 30, 2015 and 2014: Three Three Six Six Fair value of vested restricted stock awards $ 1,666 $ 1,844 $ 2,879 $ 3,211

Earnings (Loss) Per Common Shar

Earnings (Loss) Per Common Share	6 Months Ended
	Jun. 30, 2015
Earnings Per Share [Abstract]
Earnings (Loss) Per Common Share	6. Earnings (Loss) Per Common Share The Company calculates basic and diluted earnings per common share in accordance with ASC 260 “ Earnings Per Share 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 three- and six-month periods ended June 30, 2015 and 2014: Three Months Three Months Six Months Six Months Basic Earnings (Loss) per Common Share: Numerator: Net loss $ (4,012 ) $ (2,680 ) $ (8,162 ) $ (4,666 ) Distributed earnings to common shares — 780 — 1,553 Distributed earnings to participating securities — 50 — 101 Total distributed earnings — 830 — 1,654 Undistributed loss allocable to common shares (4,012 ) (3,510 ) (8,162 ) (6,320 ) Undistributed earnings allocable to participating securities — — — — Total undistributed loss (4,012 ) (3,510 ) (8,162 ) (6,320 ) Loss to common shares—basic $ (4,012 ) $ (2,730 ) $ (8,162 ) $ (4,767 ) Denominator Weighted average common shares outstanding—basic 8,029 7,113 7,995 7,057 Basic earnings (loss) per common share $ (0.50 ) $ (0.38 ) $ (1.02 ) $ (0.68 ) Three Months Three Months Six Months Six Months Diluted Earnings (Loss) per Common Share: Numerator: Loss to common shares—basic $ (4,012 ) $ (2,730 ) $ (8,162 ) $ (4,767 ) Undistributed earnings allocated to participating securities — — — — Undistributed earnings reallocated to participating securities — — — — Loss to common shares—diluted $ (4,012 ) $ (2,730 ) $ (8,162 ) $ (4,767 ) Denominator Weighted average common shares outstanding—basic 8,029 7,113 7,995 7,057 Dilutive effect of stock options — — — — Weighted average common shares outstanding—dilutive 8,029 7,113 7,995 7,057 Diluted earnings (loss) per common share $ (0.50 ) $ (0.38 ) $ (1.02 ) $ (0.68 ) There were 216 and 214 common stock equivalents related to stock options that were anti-dilutive and excluded from diluted earnings per common share for the three- and six-month periods ended June 30, 2015, respectively, as the Company incurred a net loss during the periods. There were 241 and 219 common stock equivalents related to stock options that were anti-dilutive and excluded from diluted earnings per common share calculations for the three- and six-month periods ended June 30, 2014, respectively, as the Company incurred a net loss during the periods.

Trade Accounts Receivable

Trade Accounts Receivable	6 Months Ended
	Jun. 30, 2015
Receivables [Abstract]
Trade Accounts Receivable	7. Trade Accounts Receivable Trade Accounts Receivable Trade accounts receivable are recorded at the invoiced amount. June 30, December 31, Trade accounts receivable $ 3,058 $ 4,567 Allowance for doubtful accounts (38 ) (22 ) Trade accounts receivable, net $ 3,020 $ 4,545 Unpaid deferred revenue included in trade accounts receivable $ 386 $ 1,974 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 is included in trade accounts receivable is billed in accordance with the provisions of the contracts with the Company’s customers. Unpaid deferred revenue from the Company’s cash-basis customers is not included in trade accounts receivable nor deferred revenue. Major customers Customers who accounted for 10% or more of trade accounts receivable, net are as follows: June 30, December 31, Central Banks 58 % 61 % Civolution * 13 % * Less than 10%

Property and Equipment

Property and Equipment	6 Months Ended
	Jun. 30, 2015
Property, Plant and Equipment [Abstract]
Property and Equipment	8. 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. June 30, December 31, Office furniture and fixtures $ 913 $ 845 Software 1,456 1,312 Equipment 3,126 3,072 Leasehold improvements 1,229 1,198 Gross property and equipment 6,724 6,427 Less accumulated depreciation and amortization (3,938 ) (3,451 ) Property and equipment, net $ 2,786 $ 2,976

Intangibles

Intangibles	6 Months Ended
	Jun. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Intangibles	9. Intangibles Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Amortization of capitalized patent costs associated with the application and award of patents in the U.S. and various other countries are capitalized and amortized on a straight-line basis over the term of the patents as determined at the award date, which varies depending on the pendency period of the application, generally approximating seventeen years. Amortization of intangible assets acquired is calculated using the straight-line method over the estimated useful lives of the assets. June 30, December 31, Capitalized patent costs $ 6,551 $ 6,183 Intangible assets acquired: Purchased patents and intellectual property 250 250 Existing technology 1,560 1,560 Customer relationships 290 290 Backlog 760 760 Tradenames 290 290 Non-solicitation agreements 120 120 Gross intangible assets 9,821 9,453 Accumulated amortization (3,093 ) (2,733 ) Intangibles, net $ 6,728 $ 6,720

Joint Ventures and Related Part

Joint Ventures and Related Party Transactions	6 Months Ended
	Jun. 30, 2015
Related Party Transactions [Abstract]
Joint Ventures and Related Party Transactions	10. Joint Ventures and Related Party Transactions In March 2012, Digimarc and Nielsen decided to reduce the investments in their two joint ventures, TVaura LLC (in which Digimarc holds a 51% ownership interest) and TVaura Mobile LLC (in which Digimarc holds a 49% ownership interest), to minimal levels while assessing alternative approaches to achieving each of their goals in the emerging market opportunity of synchronized second screen television. 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 June 30, 2015, both Digimarc and Nielsen continued to assess the market opportunities of each of the joint ventures. Summarized financial information for the joint ventures has not been provided as the disclosures are immaterial to the Company’s filing given the operations of the joint ventures have been suspended. The joint ventures had no revenue or expenses for the three- and six-month periods ended June 30, 2015 and 2014. The Company’s investment in each joint venture was $0 as of June 30, 2015 and December 31, 2014.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2015
Income Tax Disclosure [Abstract]
Income Taxes	11. Income Taxes The benefit for income taxes reflects current taxes, deferred taxes, and withholding taxes in certain foreign jurisdictions. The effective tax rate for the six-months ended June 30, 2015 and 2014 was 0% and 40%, respectively. The valuation allowance against net deferred tax assets as of June 30, 2015 was $10,406, an increase of $3,118 from $7,288 as of December 31, 2014.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	12. 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.” The Company is subject from time to time to other legal proceedings and claims arising in the ordinary course of business.

Description of Business and S19

Description of Business and Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2015
Commitments and Contingencies Disclosure [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 has developed the Digimarc Barcode and Intuitive Computing Platform that are designed to optimize the identification of all consumer brand impressions, wherever and whenever they may appear, facilitating modern mobile-centric shopping. The platform includes means to embed “Digimarc Barcodes,” invisible and inaudible barcode-like information that is recognizable by smartphones, industrial scanners, and other computer interfaces into virtually all forms of media content, including consumer products packaging. Digimarc Barcodes have many applications, including facilitating remarkably faster scanning of products at retail checkout as well as improved engagement with smartphone-equipped consumers. The Digimarc Barcode is robust yet imperceptible by people in ordinary use, allowing for reliable, efficient, economical, globally scalable automatic identification of media without visible computer codes like traditional barcodes.
Interim Consolidated Financial Statements	Interim Consolidated Financial Statements The Company has adhered to the accounting policies set forth in its Annual Report on Form 10-K for the year ended December 31, 2014 in preparing the accompanying interim consolidated financial statements. The accompanying interim consolidated financial statements have been prepared from the Company’s records without audit and, in management’s opinion, include all adjustments (consisting of only normal recurring adjustments) necessary to fairly reflect the financial condition and the results of operations for the periods presented. Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) have been condensed or omitted in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). These interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, which was filed with the SEC on February 20, 2015. The results of operations for the interim periods presented in these consolidated financial statements are not necessarily indicative of the results for the full year.
Reclassifications	Reclassifications Certain prior period amounts in the accompanying 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.
Goodwill	Goodwill The Company tests goodwill for impairment annually in June and whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Such reviews assess the fair value of the Company’s assets compared to 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, 2015 and 2014, it was concluded that there was no impairment as the estimated fair value of the Company’s reporting unit substantially exceeded the carrying value.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “ Revenue from Contracts with Customers (Topic 606) On July 9, 2015, the FASB affirmed its proposal to defer the effective date of the new revenue standard for public entities by one year to annual reporting periods beginning after December 31, 2017, and interim periods beginning in the first interim period within the year of adoption. Early application would be permitted, but not before the original effective date for public entities, annual reporting periods after December 15, 2016, and interim periods beginning in the first interim period within the year of adoption.
Earnings Per Share	The Company calculates basic and diluted earnings per common share in accordance with ASC 260 “ Earnings Per Share
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.”

Fair Value of Financial Instr20

Fair Value of Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 2015
Fair Value Disclosures [Abstract]
Summary of Fair Value Hierarchy for Financial Assets	The Company’s fair value hierarchy for its cash equivalents and marketable securities as of June 30, 2015 and December 31, 2014, respectively, was as follows: June 30, 2015 Level 1 Level 2 Level 3 Total Money market securities $ 1,447 $ — $ — $ 1,447 Corporate notes — 19,141 — 19,141 Pre-refunded municipal bonds (1) — 9,203 — 9,203 Commercial paper — 2,149 — 2,149 Certificates of deposits — 845 — 845 Total $ 1,447 $ 31,338 $ — $ 32,785 December 31, 2014 Level 1 Level 2 Level 3 Total Money market securities $ 3,556 $ — $ — $ 3,556 Corporate notes — 19,245 — 19,245 Pre-refunded municipal bonds (1) — 13,317 — 13,317 Certificates of deposits — 2,176 — 2,176 Total $ 3,556 $ 34,738 $ — $ 38,294 (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 June 30, 2015 are as follows: Maturities by Period Total Less than 1-5 years 5-10 years More than Cash equivalents and marketable securities $ 32,785 $ 32,785 $ — $ — $ —

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Jun. 30, 2015
Segment Reporting [Abstract]
Geographical Segment Revenue	Revenue by geographic area, based upon the “bill-to” location, was as follows: Three Three Six Six Domestic $ 1,758 $ 1,782 $ 3,445 $ 4,899 International (1) 4,040 3,881 8,342 7,969 Total $ 5,798 $ 5,663 $ 11,787 $ 12,868 (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 10% or More of Company's Revenue	Customers who accounted for 10% or more of the Company’s revenue are as follows: Three Three Six Six Central Banks 54 % 51 % 57 % 47 %

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Allocation of Stock-Based Compensation	Stock-based Compensation Three Three Six Six Stock-based compensation: Cost of revenue $ 213 $ 129 $ 398 $ 270 Sales and marketing 175 175 334 318 Research, development and engineering 328 364 615 720 General and administrative 484 607 1,002 1,156 Intellectual property 63 97 131 167 Stock-based compensation expense 1,263 1,372 2,480 2,631 Capitalized to patent costs and software 54 42 91 87 Total stock-based compensation expense $ 1,317 $ 1,414 $ 2,571 $ 2,718
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: As of As of Total unrecognized compensation costs $ 11,339 $ 11,206
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 June 30, 2015 for stock options and restricted stock over weighted average periods through June 2019 as follows: Stock Restricted Weighted average period 0.0 years 1.5 years
Reconciliation of Outstanding Balance of Stock Options	The following table reconciles the outstanding balance of stock options: Three-months ended June 30, 2015: Options Weighted Weighted Aggregate Outstanding at March 31, 2015 556 $ 16.76 $ 8.40 Options granted — — — Options exercised (26 ) 9.64 6.30 Options forfeited or expired — — — Outstanding at June 30, 2015 530 $ 17.12 $ 8.51 $ 14,849 Six-months ended June 30, 2015: Options Weighted Weighted Aggregate Outstanding at December 31, 2014 601 $ 16.97 $ 8.42 Options granted — — — Options exercised (71 ) 15.83 7.79 Options forfeited or expired — — — Outstanding at June 30, 2015 530 $ 17.12 $ 8.51 $ 14,849 Exercisable at June 30, 2015 530 $ 17.12 $ 14,849
Reconciliation of Unvested Balance of Restricted Stock	The following table reconciles the unvested balance of restricted stock: Three-months ended June 30, 2015: Number of Weighted Unvested balance, March 31, 2015 545 $ 23.97 Granted 29 $ 27.94 Vested (62 ) $ 26.17 Forfeited (23 ) $ 23.07 Unvested balance, June 30, 2015 489 $ 23.98 Six-months ended June 30, 2015: Number of Weighted Unvested balance, December 31, 2014 502 $ 23.09 Granted 119 $ 28.48 Vested (104 ) $ 24.94 Forfeited (28 ) $ 23.65 Unvested balance, June 30, 2015 489 $ 23.98
Fair Value of Restricted Stock Awards Vested	The following table indicates the fair value of all restricted stock awards that vested during the three- and six-months ended June 30, 2015 and 2014: Three Three Six Six Fair value of vested restricted stock awards $ 1,666 $ 1,844 $ 2,879 $ 3,211

Earnings (Loss) Per Common Sh23

Earnings (Loss) Per Common Share (Tables)	6 Months Ended
	Jun. 30, 2015
Earnings Per Share [Abstract]
Summary of Reconciliation of Earnings (Loss) Per Common Share	The following table reconciles earnings (loss) per common share for the three- and six-month periods ended June 30, 2015 and 2014: Three Months Three Months Six Months Six Months Basic Earnings (Loss) per Common Share: Numerator: Net loss $ (4,012 ) $ (2,680 ) $ (8,162 ) $ (4,666 ) Distributed earnings to common shares — 780 — 1,553 Distributed earnings to participating securities — 50 — 101 Total distributed earnings — 830 — 1,654 Undistributed loss allocable to common shares (4,012 ) (3,510 ) (8,162 ) (6,320 ) Undistributed earnings allocable to participating securities — — — — Total undistributed loss (4,012 ) (3,510 ) (8,162 ) (6,320 ) Loss to common shares—basic $ (4,012 ) $ (2,730 ) $ (8,162 ) $ (4,767 ) Denominator Weighted average common shares outstanding—basic 8,029 7,113 7,995 7,057 Basic earnings (loss) per common share $ (0.50 ) $ (0.38 ) $ (1.02 ) $ (0.68 ) Three Months Three Months Six Months Six Months Diluted Earnings (Loss) per Common Share: Numerator: Loss to common shares—basic $ (4,012 ) $ (2,730 ) $ (8,162 ) $ (4,767 ) Undistributed earnings allocated to participating securities — — — — Undistributed earnings reallocated to participating securities — — — — Loss to common shares—diluted $ (4,012 ) $ (2,730 ) $ (8,162 ) $ (4,767 ) Denominator Weighted average common shares outstanding—basic 8,029 7,113 7,995 7,057 Dilutive effect of stock options — — — — Weighted average common shares outstanding—dilutive 8,029 7,113 7,995 7,057 Diluted earnings (loss) per common share $ (0.50 ) $ (0.38 ) $ (1.02 ) $ (0.68 )

Trade Accounts Receivable (Tabl

Trade Accounts Receivable (Tables)	6 Months Ended
	Jun. 30, 2015
Receivables [Abstract]
Summary of Trade Accounts Receivable	Trade accounts receivable are recorded at the invoiced amount. June 30, December 31, Trade accounts receivable $ 3,058 $ 4,567 Allowance for doubtful accounts (38 ) (22 ) Trade accounts receivable, net $ 3,020 $ 4,545 Unpaid deferred revenue included in trade accounts receivable $ 386 $ 1,974
Customers Who Accounted for 10% or More of Trade Accounts Receivable, Net	Customers who accounted for 10% or more of trade accounts receivable, net are as follows: June 30, December 31, Central Banks 58 % 61 % Civolution * 13 % * Less than 10%

Property and Equipment (Tables)

Property and Equipment (Tables)	6 Months Ended
	Jun. 30, 2015
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. June 30, December 31, Office furniture and fixtures $ 913 $ 845 Software 1,456 1,312 Equipment 3,126 3,072 Leasehold improvements 1,229 1,198 Gross property and equipment 6,724 6,427 Less accumulated depreciation and amortization (3,938 ) (3,451 ) Property and equipment, net $ 2,786 $ 2,976

Intangibles (Tables)

Intangibles (Tables)	6 Months Ended
	Jun. 30, 2015
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. June 30, December 31, Capitalized patent costs $ 6,551 $ 6,183 Intangible assets acquired: Purchased patents and intellectual property 250 250 Existing technology 1,560 1,560 Customer relationships 290 290 Backlog 760 760 Tradenames 290 290 Non-solicitation agreements 120 120 Gross intangible assets 9,821 9,453 Accumulated amortization (3,093 ) (2,733 ) Intangibles, net $ 6,728 $ 6,720

Description of Business and S27

Description of Business and Significant Accounting Policies - Additional Information (Detail) - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Accounting Policies [Abstract]
Impairment of goodwill	$ 0	$ 0

Fair Value of Financial Instr28

Fair Value of Financial Instruments - Summary of Fair Value Hierarchy for Financial Assets (Detail) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	$ 32,785
Fair value, measurements, recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	32,785	$ 38,294
Fair value, measurements, recurring [Member] | Pre-refunded municipal bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	9,203	13,317
Fair value, measurements, recurring [Member] | Money market securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	1,447	3,556
Fair value, measurements, recurring [Member] | Corporate notes [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	19,141	19,245
Fair value, measurements, recurring [Member] | Commercial paper [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	2,149
Fair value, measurements, recurring [Member] | Certificates of deposits [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	845	2,176
Fair value, measurements, recurring [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	1,447	3,556
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	1,447	3,556
Fair value, measurements, recurring [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	31,338	34,738
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	9,203	13,317
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	19,141	19,245
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	2,149
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	$ 845	$ 2,176

Fair Value of Financial Instr29

Fair Value of Financial Instruments - Summary of Fair Value Maturities for Financial Asset (Detail) $ in Thousands	Jun. 30, 2015USD ($)
Fair Value Disclosures [Abstract]
Maturities, Total	$ 32,785
Maturities, Less than 1 year	32,785
Maturities, 1-5 years	0
Maturities, 5-10 years	0
Maturities, More than 10 years	$ 0

Fair Value of Financial Instr30

Fair Value of Financial Instruments - Additional Information (Detail) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Fair Value Disclosures [Abstract]
Highly liquid marketable securities with original maturities	90 days or less
Cash equivalents include money market funds and certificates of deposit	$ 2,786	$ 5,344

Revenue Recognition - Additiona

Revenue Recognition - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2015
Revenue Recognition [Abstract]
Period of revenue from services	1 month
Subscription revenue term, minimum	1 year
Subscription revenue term, maximum	3 years
License revenue recognized payment terms, maximum	60 days
License revenue recognized payment terms, minimum	30 days

Segment Information - Additiona

Segment Information - Additional Information (Detail) - 6 months ended Jun. 30, 2015 - Segment	Total
Revenue, Major Customer [Line Items]
Number of reporting segment	1
Sales [Member] | Minimum [Member] | Customer Concentration Risk [Member]
Revenue, Major Customer [Line Items]
Revenue from segment	10.00%

Segment Information - Geographi

Segment Information - Geographical Segment Revenue (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Revenues from External Customers and Long-Lived Assets [Line Items]
Total	$ 5,798	$ 5,663	$ 11,787	$ 12,868
Domestic [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total	1,758	1,782	3,445	4,899
International [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total	$ 4,040	$ 3,881	$ 8,342	$ 7,969

Segment Information - Customers

Segment Information - Customers Who Accounted for 10% or More of Company's Revenue (Detail)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Customer Concentration Risk [Member] | Sales [Member] | Central Banks [Member]
Revenue, Major Customer [Line Items]
Entity wide revenue major customers percentage	54.00%	51.00%	57.00%	47.00%

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Detail) - $ / shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Mar. 31, 2015	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Contractual terms			10 years
Stock options granted	0	0	0	0
Options with exercise prices less than per share	$ 17.12		$ 17.12		$ 16.76	$ 16.97
Stock options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation plans, shares authorized for future grants			1,425
Intrinsic value is based on closing price of per share of Digimarc common stock	45.14		$ 45.14
Options with exercise prices less than per share	$ 45.14		$ 45.14
Minimum [Member] | Employee [Member] | Stock options [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 options [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 options [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 options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period for stock options and restricted stock			2 years

Stock-Based Compensation - Allo

Stock-Based Compensation - Allocation of Stock-Based Compensation (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 1,263	$ 1,372	$ 2,480	$ 2,631
Capitalized to patent costs and software	54	42	91	87
Total stock-based compensation expense	1,317	1,414	2,571	2,718
Cost of revenue [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	213	129	398	270
Sales and marketing [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	175	175	334	318
Research, development and engineering [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	328	364	615	720
General and administrative [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	484	607	1,002	1,156
Intellectual property [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 63	$ 97	$ 131	$ 167

Stock-Based Compensation - Unre

Stock-Based Compensation - Unrecognized Compensation Cost Related to Non-Vested Stock-Based Awards Granted (Detail) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Total unrecognized compensation costs	$ 11,339	$ 11,206

Stock-Based Compensation - Weig

Stock-Based Compensation - Weighted Average Period for Recognition of Unrecognized Compensation Cost for Stock Options and Restricted Stock (Detail)	6 Months Ended
	Jun. 30, 2015
Stock options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average period
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average period	1 year 6 months

Stock-Based Compensation - Reco

Stock-Based Compensation - Reconciliation of Outstanding Balance of Stock Options (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Outstanding at beginning	556		601
Options granted	0	0	0	0
Options exercised	(26)		(71)
Options forfeited or expired	0		0
Outstanding at ending	530		530
Exercisable at ending	530		530
Weighted Average Exercise Price at beginning	$ 16.76		$ 16.97
Weighted Average Exercise Price, Options granted	0		0
Weighted Average Exercise Price, Options exercised	9.64		15.83
Weighted Average Exercise Price, Options forfeited or expired	0		0
Weighted Average Exercise Price at ending	17.12		17.12
Weighted Average Exercise Price, Exercisable at ending	17.12		17.12
Weighted Average Grant Date Fair Value at beginning	8.40		8.42
Weighted Average Grant Date Fair Value, Options granted	0		0
Weighted Average Grant Date Fair Value, Options exercised	6.30		7.79
Weighted Average Grant Date Fair Value, Options forfeited or expired	0		0
Weighted Average Grant Date Fair Value at ending	8.51		8.51
Weighted Average Grant Date Fair Value, Exercisable at ending	$ 0		$ 0
Aggregate Intrinsic Value Outstanding at ending	$ 14,849		$ 14,849
Aggregate Intrinsic Value, Exercisable at ending	$ 14,849		$ 14,849

Stock-Based Compensation - Re40

Stock-Based Compensation - Reconciliation of Unvested Balance of Restricted Stock (Detail) - Jun. 30, 2015 - Restricted Stock [Member] - $ / shares shares in Thousands	Total	Total
Number of Shares
Unvested, beginning balance	545	502
Granted	29	119
Vested	(62)	(104)
Forfeited	(23)	(28)
Unvested, ending balance	489	489
Weighted Average Grant Date Fair Value
Unvested, beginning balance	$ 23.97	$ 23.09
Granted	27.94	28.48
Vested	26.17	24.94
Forfeited	23.07	23.65
Unvested, ending balance	$ 23.98	$ 23.98

Stock-Based Compensation - Fair

Stock-Based Compensation - Fair Value of Restricted Stock Awards Vested (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of vested restricted stock awards	$ 1,666	$ 1,844	$ 2,879	$ 3,211

Earnings (Loss) Per Common Sh42

Earnings (Loss) Per Common Share - Summary of Reconciliation of Earnings (Loss) Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Basic Earnings (Loss) per Common Share:
Net loss	$ (4,012)	$ (2,680)	$ (8,162)	$ (4,666)
Distributed earnings to common shares		780		1,553
Distributed earnings to participating securities		50		101
Total distributed earnings		830		1,654
Undistributed loss allocable to common shares	(4,012)	(3,510)	(8,162)	(6,320)
Undistributed earnings allocable to participating securities	0	0	0	0
Total undistributed loss	(4,012)	(3,510)	(8,162)	(6,320)
Loss to common shares-basic	$ (4,012)	$ (2,730)	$ (8,162)	$ (4,767)
Weighted average common shares outstanding-basic	8,029	7,113	7,995	7,057
Basic earnings (loss) per common share	$ (0.50)	$ (0.38)	$ (1.02)	$ (0.68)
Diluted Earnings (Loss) per Common Share:
Loss to common shares-basic	$ (4,012)	$ (2,730)	$ (8,162)	$ (4,767)
Undistributed earnings allocated to participating securities	0	0	0	0
Undistributed earnings reallocated to participating securities	0	0	0	0
Loss to common shares-diluted	$ (4,012)	$ (2,730)	$ (8,162)	$ (4,767)
Weighted average common shares outstanding-basic	8,029	7,113	7,995	7,057
Dilutive effect of stock options	0	0	0	0
Weighted average common shares outstanding-dilutive	8,029	7,113	7,995	7,057
Diluted earnings (loss) per common share	$ (0.50)	$ (0.38)	$ (1.02)	$ (0.68)

Earnings (Loss) Per Common Sh43

Earnings (Loss) Per Common Share - Additional Information (Detail) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Earnings Per Share [Abstract]
Common stock equivalents related to stock options that were anti-dilutive and excluded from diluted net income per share	216	241	214	219

Trade Accounts Receivable - Sum

Trade Accounts Receivable - Summary of Trade Accounts Receivable (Detail) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Accounts Receivable, Net, Current [Abstract]
Trade accounts receivable	$ 3,058	$ 4,567
Allowance for doubtful accounts	(38)	(22)
Trade accounts receivable, net	3,020	4,545
Unpaid deferred revenue included in trade accounts receivable	$ 386	$ 1,974

Trade Accounts Receivable - Add

Trade Accounts Receivable - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2015
Accounts receivable [Member] | Minimum [Member] | Credit Concentration Risk [Member]
Concentration Risk [Line Items]
Revenue from segment	10.00%

Trade Accounts Receivable - Cus

Trade Accounts Receivable - Customers Who Accounted for 10% or More of Trade Accounts Receivable, Net (Detail) - Accounts receivable [Member] - Credit Concentration Risk [Member]	3 Months Ended	6 Months Ended
	Dec. 31, 2014	Jun. 30, 2015
Central Banks [Member]
Concentration Risk [Line Items]
Percentage of trade accounts receivable of major customers	61.00%	58.00%
Civolution [Member]
Concentration Risk [Line Items]
Percentage of trade accounts receivable of major customers	13.00%

Property and Equipment - Additi

Property and Equipment - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2015
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 - Deprec

Property and Equipment - Depreciation and Amortization on Property and Equipment Using the Straight-Line Method (Detail) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Property, Plant and Equipment [Abstract]
Office furniture and fixtures	$ 913	$ 845
Software	1,456	1,312
Equipment	3,126	3,072
Leasehold improvements	1,229	1,198
Gross property and equipment	6,724	6,427
Less accumulated depreciation and amortization	(3,938)	(3,451)
Property and equipment, net	$ 2,786	$ 2,976

Intangibles - Additional Inform

Intangibles - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2015
Capitalized patent costs [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated useful life	17 years

Intangibles - Amortization of I

Intangibles - Amortization of Intangible Assets Acquired (Detail) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Finite-Lived Intangible Assets [Line Items]
Capitalized patent costs	$ 6,551	$ 6,183
Intangible assets acquired:
Gross intangible assets	9,821	9,453
Accumulated amortization	(3,093)	(2,733)
Intangibles, net	6,728	6,720
Purchased patents and intellectual property [Member]
Intangible assets acquired:
Intangible assets amount	250	250
Existing technology [Member]
Intangible assets acquired:
Intangible assets amount	1,560	1,560
Customer relationships [Member]
Intangible assets acquired:
Intangible assets amount	290	290
Backlog [Member]
Intangible assets acquired:
Intangible assets amount	760	760
Tradenames [Member]
Intangible assets acquired:
Intangible assets amount	290	290
Non-solicitation agreements [Member]
Intangible assets acquired:
Intangible assets amount	$ 120	$ 120

Joint Ventures and Related Pa51

Joint Ventures and Related Party Transactions - Additional Information (Detail) - USD ($)	1 Months Ended	3 Months Ended		6 Months Ended
	Mar. 31, 2012	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Related Party Transaction [Line Items]
Joint ventures revenue or expenses		$ 0	$ 0	$ 0	$ 0
TVaura LLC [Member]
Related Party Transaction [Line Items]
Equity method investment, ownership percentage	51.00%
Investment in joint venture		0		0		$ 0
TVaura Mobile LLC [Member]
Related Party Transaction [Line Items]
Equity method investment, ownership percentage	49.00%
Investment in joint venture		$ 0		$ 0		$ 0

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Effective tax rate	0.00%	40.00%
Deferred tax assets, valuation allowance	$ 10,406		$ 7,288
Change in valuation allowance	$ 3,118