Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Feb. 15, 2015 | Jun. 30, 2014 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Interactive Intelligence Group, Inc. | ||
Entity Central Index Key | 1517650 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 21,436,302 | ||
Entity Public Float | $942,455,424 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $36,168 | $65,881 |
Short-term investments | 20,041 | 32,162 |
Accounts receivable, net of allowance for doubtful accounts of $1,052 at December 31, 2014 and $1,233 at December 31, 2013 | 87,413 | 80,414 |
Deferred tax assets, net | 23,684 | |
Prepaid expenses | 29,417 | 21,989 |
Other current assets | 14,655 | 13,566 |
Total current assets | 187,694 | 237,696 |
Long-term investments | 5,495 | 9,787 |
Property and equipment, net | 44,785 | 36,919 |
Capitalized software, net | 33,598 | 7,324 |
Goodwill | 43,732 | 37,298 |
Intangible assets, net | 16,517 | 19,025 |
Other assets, net | 6,902 | 5,173 |
Total assets | 338,723 | 353,222 |
Current liabilities: | ||
Accounts payable | 10,236 | 8,727 |
Accrued liabilities | 18,299 | 15,162 |
Accrued compensation and related expenses | 19,211 | 17,494 |
Deferred product revenues | 5,945 | 10,412 |
Deferred recurring revenues | 76,647 | 70,762 |
Deferred services revenues | 9,925 | 10,868 |
Total current liabilities | 140,263 | 133,425 |
Long-term deferred revenues | 18,158 | 23,914 |
Deferred tax liabilities, net | 2,437 | 2,388 |
Other long-term liabilities | 7,135 | 4,140 |
Total liabilities | 167,993 | 163,867 |
Shareholders' equity: | ||
Common stock, $0.01 par value; 100,000,000 authorized; 21,278,858 issued and outstanding at December 31, 2014, 20,504,106 issued and outstanding at December 31, 2013 | 213 | 205 |
Additional paid-in capital | 196,691 | 170,072 |
Accumulated other comprehensive loss | -5,561 | -1,676 |
Retained earnings (accumulated deficit) | -20,613 | 20,754 |
Total shareholders' equity | 170,730 | 189,355 |
Total liabilities and shareholders' equity | $338,723 | $353,222 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Current assets: | ||
Accounts receivable, allowance for doubtful accounts | $1,052 | $1,233 |
Shareholders' equity: | ||
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 21,278,858 | 20,504,106 |
Common stock , shares outstanding (in shares) | 21,278,858 | 20,504,106 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations and Comprehensive Income (Loss) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues: | |||
Product | $99,200 | $117,708 | $88,626 |
Recurring | 187,373 | 147,941 | 118,343 |
Services | 54,723 | 52,585 | 30,396 |
Total revenues | 341,296 | 318,234 | 237,365 |
Cost of revenues: | |||
Costs of product | 27,549 | 29,233 | 24,329 |
Cost of recurring | 63,917 | 44,961 | 32,227 |
Costs of services | 44,056 | 38,760 | 21,099 |
Amortization of intangible assets | 540 | 196 | 163 |
Total cost of revenues | 136,062 | 113,150 | 77,818 |
Gross profit | 205,234 | 205,084 | 159,547 |
Operating expenses: | |||
Sales and marketing | 119,143 | 103,777 | 81,539 |
Research and development | 59,482 | 50,397 | 45,682 |
General and administrative | 42,507 | 34,651 | 29,722 |
Amortization of intangible assets | 1,881 | 1,862 | 1,521 |
Total operating expenses | 223,013 | 190,687 | 158,464 |
Operating income (loss) | -17,779 | 14,397 | 1,083 |
Other income (expense): | |||
Interest income, net | 1,011 | 833 | 772 |
Other expense | 727 | 2,142 | 189 |
Total other income (expense) | 284 | -1,309 | 583 |
Income (loss) before income taxes | -17,495 | 13,088 | 1,666 |
Income tax expense | -23,872 | -3,573 | -760 |
Net income (loss) | -41,367 | 9,515 | 906 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustment | -3,745 | -907 | -645 |
Unrealized investment gain (loss) - net of tax | -140 | -94 | 163 |
Comprehensive income (loss) | ($45,252) | $8,514 | $424 |
Net income (loss) per share: | |||
Basic | ($1.98) | $0.47 | $0.05 |
Diluted | ($1.98) | $0.45 | $0.04 |
Shares used to compute net income (loss) per share: | |||
Basic | 20,930 | 20,033 | 19,241 |
Diluted | 20,930 | 21,088 | 20,162 |
Consolidated_Statement_of_Shar
Consolidated Statement of Shareholders' Equity (USD $) | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Loss [Member] | Retained Earnings [Member] | Total |
In Thousands, except Share data | |||||
Balance at Dec. 31, 2011 | $190 | $119,644 | ($193) | $10,333 | $129,974 |
Balance (in shares) at Dec. 31, 2011 | 18,961,000 | ||||
Stock-based compensation expense | 6,677 | 6,677 | |||
Exercise of stock options | 4 | 5,025 | 5,029 | ||
Exercise of stock options (in shares) | 430,000 | ||||
Issuances of common stock | 680 | 680 | |||
Issuances of common stock (in shares) | 26,000 | ||||
Issuance of restricted stock units, net of tax withholdings | -253 | -253 | |||
Issuance of restricted stock units, net of tax withholdings (in shares) | 20,000 | ||||
Tax benefits from stock-based payment arrangements | 1,586 | 1,586 | |||
Net income | 906 | 906 | |||
Foreign currency translation adjustment | -645 | -645 | |||
Net unrealized investment gain (loss) | 163 | 163 | |||
Balance at Dec. 31, 2012 | 194 | 133,359 | -675 | 11,239 | 144,117 |
Balance (in shares) at Dec. 31, 2012 | 19,437,000 | ||||
Stock-based compensation expense | 9,247 | 9,247 | |||
Exercise of stock options | 11 | 14,111 | 14,122 | ||
Exercise of stock options (in shares) | 1,007,000 | ||||
Issuances of common stock | 837 | 837 | |||
Issuances of common stock (in shares) | 19,000 | ||||
Issuance of restricted stock units, net of tax withholdings | -961 | -961 | |||
Issuance of restricted stock units, net of tax withholdings (in shares) | 41,000 | ||||
Tax benefits from stock-based payment arrangements | 13,479 | 13,479 | |||
Net income | 9,515 | 9,515 | |||
Foreign currency translation adjustment | -907 | -907 | |||
Net unrealized investment gain (loss) | -94 | -94 | |||
Balance at Dec. 31, 2013 | 205 | 170,072 | -1,676 | 20,754 | 189,355 |
Balance (in shares) at Dec. 31, 2013 | 20,504,000 | 20,504,106 | |||
Stock-based compensation expense | 14,912 | 14,912 | |||
Issuance of restricted shares | 4,692 | 4,692 | |||
Exercise of stock options | 8 | 8,602 | 8,610 | ||
Exercise of stock options (in shares) | 673,000 | ||||
Issuances of common stock | 1,320 | 1,320 | |||
Issuances of common stock (in shares) | 25,000 | ||||
Issuance of restricted stock units, net of tax withholdings | -2,724 | -2,724 | |||
Issuance of restricted stock units, net of tax withholdings (in shares) | 77,000 | ||||
Tax benefits from stock-based payment arrangements | -183 | -183 | |||
Net income | -41,367 | -41,367 | |||
Foreign currency translation adjustment | -3,745 | -3,745 | |||
Net unrealized investment gain (loss) | -140 | -140 | |||
Balance at Dec. 31, 2014 | $213 | $196,691 | ($5,561) | ($20,613) | $170,730 |
Balance (in shares) at Dec. 31, 2014 | 21,279,000 | 21,278,858 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating activities: | |||
Net income (loss) | ($41,367) | $9,515 | $906 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Depreciation | 15,787 | 11,664 | 8,547 |
Amortization | 2,421 | 2,058 | 1,776 |
Other non-cash items | -1,033 | 1,439 | -906 |
Stock-based compensation expense | 13,259 | 9,247 | 6,677 |
Excess tax benefits from stock-based payment arrangements | -13,479 | -1,586 | |
Deferred income taxes | 23,550 | -4,795 | -12,311 |
Amortization (accretion) of investment premium (discount) | 523 | -37 | 846 |
Loss on disposal of fixed assets | 76 | 74 | |
Changes in operating assets and liabilities: | |||
Accounts receivable | -6,999 | -12,005 | -10,166 |
Prepaid expenses | -7,374 | -6,178 | -4,490 |
Other current assets | -1,257 | 737 | -975 |
Accounts payable | 1,509 | -69 | 5,071 |
Accrued liabilities | 1,371 | 1,233 | 11,941 |
Accrued compensation and related expenses | 1,717 | 3,854 | 4,400 |
Deferred product revenues | -4,355 | 4,284 | 1,190 |
Deferred recurring revenues | 17 | 17,183 | 10,507 |
Deferred services revenues | -943 | 2,462 | 2,343 |
Other assets and liabilities | 1,382 | 262 | -2,976 |
Net cash provided by operating activities | -1,716 | 27,375 | 20,868 |
Investing activities: | |||
Sales of available-for-sale investments | 48,750 | 26,803 | 58,235 |
Purchases of available-for-sale investments | -32,967 | -33,270 | -30,348 |
Purchases of property and equipment | -21,363 | -20,758 | -15,554 |
Capitalized software | -20,417 | -6,112 | -862 |
Acquisitions, net of cash | -9,173 | -725 | -22,651 |
Unrealized (gain) loss on investment | -33 | 34 | -138 |
Net cash used in investing activities | -35,203 | -34,028 | -11,318 |
Financing activities: | |||
Proceeds from stock options exercised | 8,610 | 14,122 | 5,029 |
Proceeds from issuance of common stock | 1,320 | 837 | 680 |
Tax withholding on restricted stock awards | -2,724 | -961 | -253 |
Excess tax benefit from stock-based payment arrangements | 13,479 | 1,586 | |
Net cash provided by financing activities | 7,206 | 27,477 | 7,042 |
Net (decrease) increase in cash and cash equivalents | -29,713 | 20,824 | 16,592 |
Cash and cash equivalents, beginning of period | 65,881 | 45,057 | 28,465 |
Cash and cash equivalents, end of period | 36,168 | 65,881 | 45,057 |
Cash paid during the period for: | |||
Interest | 6 | 5 | |
Income taxes | 2,410 | 882 | 3,213 |
Other non-cash item: | |||
Purchase of property and equipment payable at end of period | $1,761 | $413 | $173 |
The_Company
The Company | 12 Months Ended |
Dec. 31, 2014 | |
The Company [Abstract] | |
The Company | 1.THE COMPANY |
Interactive Intelligence Group, Inc. (“Interactive Intelligence” or the “Company”) is a global provider of software and services for collaboration, communications, and customer engagement. The Company’s primary offering is the Customer Interaction Center™ (“CIC”) product suite, a multichannel communications platform that can be deployed on-premises or through the cloud as Communications as a Service (“CaaS”). The Company is a recognized leader in the worldwide contact center market, where its software applications provide a range of pre-integrated inbound and outbound communications functionality. The Company utilizes this same communications platform to provide solutions for unified communications, workforce optimization and business process automation. The Company’s solutions are broadly applicable, and are used by businesses and organizations in various industries, including teleservices, insurance, banking, accounts receivable management, utilities, healthcare, retail, technology, government and business services. The Company continues to invest in the development of its technology, particularly in its next generation cloud communication platform, Interactive Intelligence PureCloudSM (“PureCloud”). | |
The Company commenced principal operations in 1994 and revenues were first recognized in 1997. Since then, the Company has established wholly-owned subsidiaries in 14 other countries. The Company’s world headquarters are located in Indianapolis, Indiana with regional offices throughout the United States and 20 other countries. The Company markets its software solutions worldwide. | |
Summary_Of_Certain_Accounting_
Summary Of Certain Accounting Policies And Recent Accounting Pronouncements | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Summary Of Certain Accounting Policies And Recent Accounting Pronouncements [Abstract] | |||||||||
Summary Of Certain Accounting Policies And Recent Accounting Pronouncements | 2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||
Principles of Consolidation | |||||||||
The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries after elimination of all significant intercompany accounts and transactions. | |||||||||
Use of Estimates | |||||||||
The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. On an on-going basis, management reevaluates these estimates including those related to revenue recognition, allowance for doubtful accounts, stock-based compensation, research and development, legal, goodwill and intangible assets, other assets and accounting for income taxes. Despite management’s best effort to establish good faith estimates and assumptions, actual results could differ from these estimates. | |||||||||
Revisions and Adjustments | |||||||||
Effective January 1, 2014, the Company revised certain personnel related expenses which were included in cost of recurring revenues in prior periods to sales and marketing expenses. In prior years, these costs were not significant; however, as these costs have continued to increase in line with the Company’s growth strategy related to its cloud offerings, the Company concluded that it is appropriate to report these personnel related expenses as sales and marketing. For the year ended December 31, 2013, $904,000 has been revised to sales and marketing expenses based on this new expense presentation. The revision did not have any impact on the overall results previously reported. | |||||||||
During 2014, the Company separately classified deferred services revenues and deferred recurring revenues. As of December 31, 2013, $70.8 million has been reclassified to separately present deferred recurring revenues from deferred services revenues. The revision did not have any impact on the overall results previously reported. | |||||||||
Revenue Recognition | |||||||||
The Company reports three types of revenues: product revenues, recurring revenues, and services revenues. Product revenues are generated from licensing the right to use its software solutions on-premises, and in certain instances, selling hardware as a component of the solution. Recurring revenues are generated by annual support fees from on-premises license agreements and fees from the Company’s cloud offerings. Services revenues are generated primarily from professional services and educational services fees. Revenues are generated by direct sales to customers and by indirect sales through the Company’s partner channels. | |||||||||
Product Revenues | |||||||||
For any revenues to be recognized from a perpetual license agreement, the following criteria must be met: | |||||||||
· | Persuasive evidence of an arrangement exists; | ||||||||
· | The fee is fixed or determinable; | ||||||||
· | Collection is probable; and | ||||||||
· | Delivery has occurred. | ||||||||
For a perpetual license agreement, upon meeting the revenue recognition criteria above, the Company immediately recognizes as product revenues the residual amount of the total contract fees if sufficient vendor specific objective evidence (“VSOE”) of fair value exists to support allocating a portion of the total fee to the undelivered elements of the arrangement. If sufficient VSOE of fair value for the undelivered product support does not exist, the Company recognizes the initial license fee as product revenues ratably over the initial term of the support agreement once support is the only undelivered element. The support period is generally 12 months but may be up to 18 months for initial orders because support begins when the licenses are downloaded, when support commences, or no more than six months following the contract date. If the contract includes prepaid support, the support period may be up to 36 months. The Company determines VSOE of fair value for support in on-premises agreements based on substantive renewal rates the customer must pay to renew the support. The VSOE of fair value for other services is based on amounts charged when the services are sold in stand-alone sales. | |||||||||
The Company sells hardware manufactured by third parties, which does not contain the Company’s software, and certain appliances, including the Interaction Gateway and the Interaction Media Server, which combine third-party hardware and the Company’s Interaction Gateway or Interaction Media Server software. These appliances are not pre-loaded with the Company’s Customer Interaction Center (“CIC”) software and the Company does not require its customers to purchase these items directly from them. The Company’s CIC software will still function properly on hardware, gateways or media servers purchased from other vendors. Although the appliances mentioned above are a combination of hardware and software, the software does not primarily work together with the hardware to provide the hardware’s essential functionality. In addition, the Interaction Media Server software can be purchased separately and loaded onto other media servers the customer already owns or purchased from another vendor. The Company recognizes revenues related to hardware sales when the hardware is delivered and all other revenue recognition criteria are met. | |||||||||
Contracts that contain both software and hardware are reviewed to allocate the deliverables into separate units of accounting in accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 605-25, Revenue Recognition – Multiple Element Arrangements. The units of accounting fall into one of two categories: software or non-software related products. FASB ASC 605-25 is used to allocate the fair value of each. | |||||||||
Recurring Revenues | |||||||||
The Company generates recurring revenues from its cloud offerings and annual support fees. For cloud contracts, customers pay a minimum monthly fee to use a specified number of software licenses, plus any overages over the minimum. Customers are billed the greater of their minimum monthly fee or actual usage, and revenue is recognized monthly as the service is delivered. The total contract fee also includes an implementation fee, which is recognized ratably over the term of the contract. | |||||||||
The Company recognizes annual support fees as recurring revenues ratably over the post-contract support period, which is typically 12 months, but may extend up to three years if prepaid. | |||||||||
Services Revenues | |||||||||
The Company generates revenues from other services that it provides to its customers and partners including fees for professional services and educational services. Revenues from professional services, which include implementing the Company’s solutions, and educational services, which consist of training courses for customers and partners, are recognized as the related services are performed. | |||||||||
Accounts Receivable and Allowance for Doubtful Accounts Receivable | |||||||||
Trade accounts receivable are recorded at the invoiced amount. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable. The Company estimates bad debt expense based on a percentage of revenue reported and a detailed analysis of receivables each period. The Company reviews the allowance for doubtful accounts each reporting period based on a detailed analysis of its accounts receivable. In the analysis, the Company primarily considers the age of the customer’s or partner’s receivable and also considers the creditworthiness of the customer or partner, the economic conditions of the customer’s or partner’s industry, and general economic conditions, among other factors. If any of these factors change, the Company may also change its original estimates, which could impact the level of its future allowance for doubtful accounts. | |||||||||
If payment is not made timely, the Company will contact the customer or partner to try to obtain the payment. If this is not successful, the Company will institute other collection practices such as generating collection letters, charging interest, involving sales personnel and ultimately terminating the customer’s or partner’s access to future upgrades, licenses or services and technical support. Once all collection efforts are exhausted, the receivable is written off against the allowance for doubtful accounts. | |||||||||
Cash and Cash Equivalents | |||||||||
The Company considers all highly liquid investments with a maturity of three months or less from date of purchase to be cash equivalents. Cash and cash equivalents consist primarily of cash on deposit with financial institutions and high quality money market instruments. | |||||||||
Investments | |||||||||
The Company’s investments, which consist primarily of taxable corporate and government debt securities, are classified as available-for-sale. Such investments are recorded at fair value and unrealized gains and losses are excluded from earnings and recorded as a separate component of equity until realized. Premiums or discounts are amortized or accreted over the life of the related security as an adjustment to yield using the effective interest method. Realized gains and losses from the sale of available-for-sale securities are determined on a specific identification basis. A decline in the market value of securities below cost judged to be other than temporary results in a reduction in the carrying amount to fair value. The impairment is charged to earnings and a new cost basis for the security is established. Interest and dividends on all securities are included in interest income when earned. | |||||||||
Property and Equipment | |||||||||
Property and equipment are stated at cost. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized using the straight-line method over the lesser of the term of the related lease or the estimated useful life. The Company leases its office space under operating lease agreements. In accordance with FASB ASC Topic 840, Leases (“FASB ASC 840”), for operating leases with escalating rent payments, the Company records rent expense on a straight-line basis over the life of the lease. | |||||||||
Impairment of Long-Lived Assets | |||||||||
In accordance with FASB ASC Topic 360, Property, Plant and Equipment, certain of the Company’s assets, such as property and equipment and intangibles subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the asset exceeds the fair value of the asset. | |||||||||
Goodwill and Other Intangible Assets | |||||||||
The Company reviews goodwill and intangible assets with indefinite lives for impairment at least annually in accordance with FASB Accounting Standards Update (“ASU”) 2011-08, Testing Goodwill for Impairment, which amends FASB ASC Topic 350, Intangibles – Goodwill and Other (“FASB ASC 350”). This guidance requires the Company to perform the goodwill impairment analysis annually or when a change in facts and circumstances indicates that the fair value of an asset may be below its carrying amount. Application of goodwill impairment testing involves judgment, including but not limited to, the identification of reporting units and estimation of the fair value of each reporting unit. A reporting unit is defined as an operating segment or one level below an operating segment. The Company tests goodwill at the operating segment level as it has determined that the characteristics of the reporting units within its operating segment are similar and allows for their aggregation in accordance with the applicable accounting guidance. Based on the review of the qualitative events and circumstances outlined in FASB ASU 2011-08, the Company determined that it was more likely than not that the fair value of its reporting unit was greater than its carrying amount, and the two-step process of the goodwill impairment test was not necessary to perform. Identifiable intangible assets such as intellectual property trademarks and patents are amortized over a 10 to 15 year period using the straight-line method. In addition, other intangible assets, such as customer relationships, core technology and non-compete agreements are amortized over a 5 to 18 year period using the straight-line method. The Company determined no indication of impairment existed as of December 31, 2014 when the annual impairment tests were performed for goodwill and intangible assets. | |||||||||
Advertising | |||||||||
The Company expenses all advertising costs as incurred. Advertising expense for 2014, 2013 and 2012 was $6.2 million, $6.4 million and $4.4 million, respectively. | |||||||||
Research and Development | |||||||||
Research and development expenditures for the Company’s on-premises and CaaS solutions are generally expensed as incurred. FASB ASC Topic 985, Software, requires capitalization of certain software development costs subsequent to the establishment of technological feasibility. Based on the Company’s product development process, technological feasibility is established upon completion of a working model. Historically, costs incurred by the Company between completion of the working model and the point at which the product is ready for general release have been insignificant. | |||||||||
During 2014, the Company continued to invest in its PureCloud PlatformSM, its next generation cloud communication platform. This platform will be the Company’s first solution offered solely as a cloud service, with no on-premises option. The costs incurred for this new platform result from internal activity, as the Company does not intend to sell the PureCloud solution but will offer PureCloud as a service. As a result, the Company capitalized $16.9 million and $3.6 million of internal use software costs relating to this new platform during 2014 and 2013, respectively. Research and development expense (after capitalization) for 2014, 2013 and 2012 was $59.5 million, $50.4 million and $45.7 million, respectively. | |||||||||
Stock-Based Compensation | |||||||||
Consistent with FASB ASC Topic 718, Compensation – Stock Compensation (“FASB ASC 718”), the Company continues to use the Black-Scholes option-pricing model as its method of valuation for stock option awards. The Company’s determination of fair value of stock option awards on the date of grant using the Black-Scholes option-pricing model is affected by the Company’s stock price as well as assumptions regarding a number of highly complex and subjective variables. These variables include, but are not limited to, the Company’s expected stock price volatility over the term of the awards and an expected risk-free rate of return. If factors change and the Company uses different assumptions for estimating stock-based compensation expense associated with awards granted in future periods, stock-based compensation expense may differ materially in the future from that recorded in the current period. | |||||||||
The Company records compensation expense for stock-based awards using the straight-line method, which is expensed over the vesting period of the award. Stock-based compensation expense for employee and director stock options and restricted stock units recognized under FASB ASC 718 for the years ended December 31, 2014, 2013 and 2012 was $13.3 million, $9.2 million and $6.7 million, respectively. See Note 7 for further information on the Company’s stock-based compensation. | |||||||||
Fair Value Measurements | |||||||||
The carrying amounts of the Company’s financial instruments, including cash and cash equivalents, accounts receivable, accounts payable, and accrued liabilities, approximate their respective fair market values due to the short maturities of these financial instruments. The fair values of short-term and long-term investments are valued in accordance with FASB ASC Topic 820, Fair Value Measurements and Disclosures (“FASB ASC 820”). | |||||||||
Income Taxes | |||||||||
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. 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 that includes the enactment date. | |||||||||
FASB ASC Topic 740, Income Taxes (“FASB ASC 740”), establishes financial accounting and reporting standards for the effect of income taxes. The Company is subject to income taxes in both the United States and numerous foreign jurisdictions. Significant judgment is required in evaluating the Company’s tax positions and determining its provision for income taxes. The objectives of accounting for income taxes are to recognize the amount of taxes payable or refundable for the current year and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in an entity’s financial statements or tax returns. Variations in the actual outcome of these future tax consequences could materially impact the Company’s financial position, results of operations, or cash flows. | |||||||||
In assessing the recoverability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon generation of future taxable income prior to the period in which temporary differences such as loss carryforwards and tax credits expire. Management considers the scheduled reversal of deferred tax liabilities, if any (including the impact of available carryback and carryforward periods), projected future taxable income and tax planning strategies in making this assessment. During the fourth quarter of 2014, the Company recorded a deferred income tax expense of $33.4 million related to recording a valuation allowance to reduce a significant portion of the Company’s deferred tax assets. The Company has incurred cumulative tax losses in recent periods due to its business model shift to the cloud. Such tax losses may continue for a period of time. This deferred income tax expense reflects the Company’s assessment that it is more likely than not that the deferred tax assets will not be realizable in the foreseeable future. | |||||||||
As of December 31, 2014, the Company had $10.0 million in tax credit carryforwards recorded as deferred tax assets as well as a valuation allowance of $33.6 million. The Company will continue to evaluate the valuation of deferred tax assets in accordance with the requirements of FASB ASC 740. See Note 10 for further information on the Company’s income taxes. | |||||||||
The revenue from sales tax collected from customers is recorded on a net basis. | |||||||||
Net Income (Loss) per Share | |||||||||
Basic net income (loss) per share is calculated based on the weighted-average number of common shares outstanding in accordance with FASB ASC Topic 260, Earnings per Share. Diluted net income per share is calculated based on the weighted-average number of common shares outstanding plus the effect of dilutive potential common shares. When the Company reports a net loss, the calculation of diluted net loss per share excludes potential common shares as the effect would be anti-dilutive. Potential common shares are composed of shares of common stock issuable upon the exercise of stock options and vesting of restricted stock units (“RSUs”). The calculation of diluted net income per share excludes shares underlying stock options outstanding that would be anti-dilutive. The following table sets forth the calculation of basic and diluted net income (loss) per share (in thousands, except per share amounts): | |||||||||
Years Ended December 31, | |||||||||
2014 | 2013 | 2012 | |||||||
Net income (loss), as reported (A) | $ | -41,367 | $ | 9,515 | $ | 906 | |||
Weighted average shares of common stock outstanding (B) | 20,930 | 20,033 | 19,241 | ||||||
Dilutive effect of employee stock options and RSUs | - | 1,055 | 921 | ||||||
Common stock and common stock equivalents (C) | 20,930 | 21,088 | 20,162 | ||||||
Net income (loss) per share: | |||||||||
Basic (A/B) | $ | -1.98 | $ | 0.47 | $ | 0.05 | |||
Diluted (A/C) | -1.98 | 0.45 | 0.04 | ||||||
The Company’s calculation of diluted net income (loss) per share for 2014, 2013 and 2012 excludes RSUs and stock options to purchase approximately 207,000, 197,000 and 726,000 shares of the Company's common stock, respectively. | |||||||||
Comprehensive Income (Loss) | |||||||||
Comprehensive income (loss) is comprised of net income (loss) and other comprehensive income (loss). The Company reports unrealized gains (losses) on marketable securities and foreign currency translation adjustments as other comprehensive income (loss). | |||||||||
Legal Proceedings | |||||||||
Liabilities for loss contingencies arising from claims, assessments, litigation, fines, penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment and/or remediation can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. | |||||||||
Internal Use Software | |||||||||
The Company capitalizes costs related to its PureCloud Platform and certain projects described below for internal use in accordance with FASB ASC 350-40, Internal Use Software. Once a solution has reached the development stage, internal and external costs, if direct and incremental, are capitalized until the software is substantially complete and ready for its intended use. The capitalization of costs ceases upon completion of all substantial testing. Costs incurred in the preliminary stages of development, maintenance and training costs are expensed as incurred. During the years ended December 31, 2014 and 2013, the Company capitalized $16.9 million and $3.6 million, respectively, of costs related to the development of its PureCloud Platform. The Company will continue to capitalize development costs related to this project and will begin amortizing such costs once the software is ready for production beginning in the first half of 2015. | |||||||||
The Company is implementing new business systems to meet its internal business needs. The Company has no substantive plans to market such software externally. During the years ended December 31, 2014 and 2013, the Company capitalized $5.2 million and $2.5 million, respectively, of costs associated with development and implementation of these systems. | |||||||||
Investments
Investments | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Investments [Abstract] | |||||||||||||
Investments | 3.INVESTMENTS | ||||||||||||
The Company’s short-term investments all mature in less than one year and the Company’s long-term investments mature between one and three years. Both short-term and long-term investments are considered available for sale. In 2014 and 2013, the Company purchased short-term investments for $22.4 million and $26.4 million, respectively. As of December 31, 2014 and 2013, the Company held $20.0 million and $32.2 million, respectively, in short-term investments and $5.5 million and $9.8 million, respectively, in long-term investments that were recorded at their fair values. The Company does not invest in subprime assets. | |||||||||||||
Gross realized gains and losses included in interest income, net totaled less than $15,000 in each of 2014, 2013 and 2012. | |||||||||||||
Interest income, net was $1,011,000, $833,000, and $772,000 in 2014, 2013 and 2012, respectively. | |||||||||||||
FASB ASC 820, as amended, defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. FASB ASC 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes the following three levels of inputs that may be used to measure fair value: | |||||||||||||
· | Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. | ||||||||||||
· | Level 2 - Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | ||||||||||||
· | Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. | ||||||||||||
The Company’s assets that are measured at fair value are classified within Level 1 or Level 2 of the fair value hierarchy. The types of instruments valued based on quoted prices in active markets include money market securities. Such instruments are classified within Level 1 of the fair value hierarchy. The Company invests in money market funds that are traded daily and does not adjust the quoted price for such instruments. The types of instruments valued based on quoted prices in less active markets, broker or dealer quotations, or alternative pricing sources with reasonable levels of price transparency include corporate notes, agency bonds, commercial paper, certificates of deposit, and international government bonds. Such instruments are classified within Level 2 of the fair value hierarchy. The Company uses consensus pricing, which is based on multiple pricing sources, to value its fixed income investments. | |||||||||||||
The following table sets forth a summary of the Company’s financial assets, classified as cash and cash equivalents, short-term investments and long-term investments on its condensed consolidated balance sheet, measured at fair value as of December 31, 2014 and 2013 (in thousands): | |||||||||||||
Fair Value Measurements at December 31, 2014 Using | |||||||||||||
Quoted Prices in | Significant | Significant | |||||||||||
Active Markets for | Other Observable | Unobservable | |||||||||||
Identical Assets | Inputs | Inputs | |||||||||||
Description | Total | (Level 1) | (Level 2) | (Level 3) | |||||||||
Cash & cash equivalents: | |||||||||||||
Cash | $ | 34,452 | $ | 34,452 | $ | - | $ | - | |||||
Money market funds | 1,716 | 1,716 | - | - | |||||||||
Total | $ | 36,168 | $ | 36,168 | $ | - | $ | - | |||||
Short-term investments: | |||||||||||||
Corporate notes | 19,241 | - | 19,241 | - | |||||||||
Commercial paper | 800 | - | 800 | - | |||||||||
Total | $ | 20,041 | $ | - | $ | 20,041 | $ | - | |||||
Long-term investments: | |||||||||||||
U.S. government securities | 1,000 | 1,000 | - | - | |||||||||
Corporate notes | 4,495 | - | 4,495 | - | |||||||||
Total | $ | 5,495 | $ | 1,000 | $ | 4,495 | $ | - | |||||
Fair Value Measurements at December 31, 2013 Using | |||||||||||||
Quoted Prices in | Significant | Significant | |||||||||||
Active Markets for | Other Observable | Unobservable | |||||||||||
Identical Assets | Inputs | Inputs | |||||||||||
Description | Total | (Level 1) | (Level 2) | (Level 3) | |||||||||
Cash & cash equivalents: | |||||||||||||
Cash | $ | 57,715 | $ | 57,715 | $ | - | $ | - | |||||
Money market funds | 8,166 | 8,166 | - | - | |||||||||
Total | $ | 65,881 | $ | 65,881 | $ | - | $ | - | |||||
Short-term investments: | |||||||||||||
Agency bonds | $ | 1,008 | - | $ | 1,008 | - | |||||||
Corporate notes | 28,307 | $ | - | 28,307 | $ | - | |||||||
Commercial paper | 2,297 | - | 2,297 | - | |||||||||
Certificates of deposit | 550 | - | 550 | - | |||||||||
Total | $ | 32,162 | $ | - | $ | 32,162 | $ | - | |||||
Long-term investments: | |||||||||||||
Corporate notes | 9,787 | - | 9,787 | - | |||||||||
Total | $ | 9,787 | $ | - | $ | 9,787 | $ | - | |||||
Accounts_Receivable_And_Concen
Accounts Receivable And Concentration Of Credit Risk | 12 Months Ended |
Dec. 31, 2014 | |
Accounts Receivable And Concentration Of Credit Risk [Abstract] | |
Accounts Receivable And Concentration Of Credit Risk | 4.ACCOUNTS RECEIVABLE AND CONCENTRATION OF CREDIT RISK |
The Company evaluates the creditworthiness of its customers and partners on a periodic basis and generally does not require collateral. The Company records unbilled accounts receivable, which represents amounts recognized as revenues for invoices that have not yet been sent to customers. This balance fluctuates depending on the contractual billing milestones and work performed related to projects specified in the contract. When the work performed is ahead of the billing milestones related to a services engagement, unbilled accounts receivable will be recorded. The balance of unbilled accounts receivable recorded as of December 31, 2014 and 2013 was $8.0 million and $6.5 million, respectively. | |
No customer or partner accounted for 10% or more of the Company’s revenues in 2014, 2013 or 2012 or for 10% or more of the Company’s accounts receivable as of December 31, 2014 and 2013. The Company’s top five partners collectively represented 17% and 26% of the Company’s accounts receivable balance at December 31, 2014 and 2013, respectively. | |
Property_And_Equipment
Property And Equipment | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Property And Equipment [Abstract] | ||||||
Property And Equipment | 5.PROPERTY AND EQUIPMENT | |||||
Property and equipment are summarized as follows as of December 31, 2014 and 2013 (in thousands): | ||||||
2014 | 2013 | |||||
Computer equipment | $ | 25,905 | $ | 22,617 | ||
Leasehold improvements | 21,103 | 18,338 | ||||
Furniture and fixtures | 12,719 | 11,366 | ||||
Data center equipment | 27,800 | 18,948 | ||||
Software | 2,956 | 2,769 | ||||
Office equipment | 2,198 | 1,679 | ||||
Trade show equipment and other | 929 | 566 | ||||
Construction in process | 1,627 | 3 | ||||
Total property and equipment | 95,237 | 76,286 | ||||
Less accumulated depreciation | -50,452 | -39,367 | ||||
Net property and equipment | $ | 44,785 | $ | 36,919 | ||
Property and equipment is depreciated over useful lives of 3 to 7 years, except for leasehold improvements, which are depreciated over the lesser of the term of the related lease or the estimated useful life, and vary from 3 to 15 years. During the years ended December 31, 2014 and 2013, the Company reduced assets and accumulated depreciation by $3.4 million and $2.6 million, respectively, for fully depreciated computer and software equipment that was more than six years old and was no longer in use. | ||||||
Capitalized_Software
Capitalized Software | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Capitalized Software [Abstract] | |||||||
Capitalized Software | |||||||
6. CAPITALIZED SOFTWARE | |||||||
Capitalized software is summarized as follows as of December 31, 2014 and 2013 (in thousands): | |||||||
As of December 31, | |||||||
2014 | 2013 | ||||||
Capitalized internal-use software development costs related to PureCloud Platform | $ | 20,448 | $ | 3,562 | |||
Capitalized internal-use software development costs related to internal business systems, net of accumulated amortization of $3,258 and $2,203, respectively | 6,337 | 2,174 | |||||
Acquired developed technology, net of accumulated amortization of $1,161 and $620, respectively | 6,813 | 1,588 | |||||
$ | 33,598 | $ | 7,324 | ||||
The Company had not amortized any of the capitalized internal-use software development costs related to the PureCloud Platform as of December 31, 2014, as the software was not generally available as of December 31, 2014. Capitalized internal use software amortization expense related to internal business systems totaled $1.1 million, $1.1 million and $572,000 for the years ended December 31, 2014, 2013 and 2012, respectively. Acquired developed technology amortization expense totaled $540,000, $196,000 and $163,000 for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||
During the years ended December 31, 2014 and 2013, the Company capitalized $16.9 million and $3.6 million, respectively, of costs related to the development of its PureCloud Platform. During the years ended December 31, 2014 and 2013, the Company capitalized $5.2 million and $2.5 million, respectively, of costs associated with the development and implementation of its internal business systems. During the year ended December 31, 2014, the Company capitalized $5.8 million of acquired developed technology, with no acquired developed technology capitalized during the year ended December 31, 2013. | |||||||
StockBased_Compensation
Stock-Based Compensation | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Stock-Based Compensation [Abstract] | ||||||||||||||||||
Stock-Based Compensation | ||||||||||||||||||
7 | STOCK-BASED COMPENSATION | |||||||||||||||||
Equity Plans | ||||||||||||||||||
The Company’s equity plans, adopted in 1999 and 2006, authorize the Board of Directors or the Compensation Committee, as applicable, to grant incentive and nonqualified stock options, and, in the case of the 2006 Equity Incentive Plan, as amended and as assumed by Interactive Intelligence Group, Inc. (the “2006 Plan”), stock appreciation rights, restricted stock, RSUs, performance shares, performance units and other stock-based awards. After adoption of the 2006 Plan by the Company’s shareholders in May 2006, the Company may no longer make any grants under previous plans, but any shares subject to awards under the 1999 Stock Option and Incentive Plan and the Outside Directors Stock Option Plan (collectively, the “1999 Plans”) that are cancelled are added to shares available under the 2006 Plan. At the Company’s 2013 Annual Meeting of Shareholders on May 22, 2013, the Company’s shareholders approved an amendment to the 2006 plan which increased the number of shares available for issuance under the 2006 Plan by 2,000,000 shares. A maximum of 9,050,933 shares are available for delivery under the 2006 Plan, which consists of (i) 5,350,000 shares, plus (ii) 320,000 shares available for issuance under the 1999 Plans, but not underlying any outstanding stock options or other awards under the 1999 Plans, plus (iii) up to 3,380,933 shares subject to outstanding stock options or other awards under the 1999 Plans that expire, are forfeited or otherwise terminate unexercised on or after May 18, 2006. The number of shares available under the 2006 Plan is subject to adjustment for certain changes in the Company’s capital structure. The exercise price of options granted under the 2006 Plan is equal to the closing price of the Company’s common stock, as reported by The NASDAQ Global Select Market, on the business day immediately preceding the date of grant. As of December 31, 2014, 2013 and 2012 there were 1,897,742; 2,338,146; and 753,883 shares of stock, respectively, available for issuance for equity compensation awards under the 2006 Plan. | ||||||||||||||||||
During 2014 and prior, the Company granted RSUs and three types of stock options. The first type of stock option is non-performance-based subject only to time-based vesting, and these stock options are granted by the Company as annual grants to executives, to certain new employees and to newly-elected non-employee directors. These stock options vest in four equal annual installments beginning one year after the grant date. The fair value of these option grants is determined on the date of grant and the related compensation expense is recognized for the entire award on a straight-line basis over the requisite service period. | ||||||||||||||||||
The second type of stock option granted by the Company is performance-based subject to cancellation if the specified performance targets are not met. If the applicable performance targets have been achieved, the options will vest in four equal annual installments beginning one year after the performance-related period has ended. The fair value of these stock option grants is determined on the date of grant and the related compensation expense is recognized over the requisite service period, including the initial period for which the specified performance targets must be met. | ||||||||||||||||||
The third type of stock option granted by the Company is director options granted to non-employee directors annually. These options are similar to the non-performance-based options described above except that the director options vest one year after the grant date. The fair value of these option grants is determined on the date of the grant and the related compensation expense is recognized over one year. These director options are generally granted at the Company’s Annual Meeting of Shareholders during the second quarter of each fiscal year. | ||||||||||||||||||
The Company grants RSUs to certain key employees, executives and certain new employees. The fair value of the RSUs is determined on the date of grant and the RSUs are either time-based or performance based. The time-based RSUs vest in four equal annual installments beginning one year after the grant date. RSUs are not included in issued and outstanding common stock until the shares are vested and settlement has occurred. | ||||||||||||||||||
Beginning in 2015, the Company does not intend to issue stock options, but plans to only issue time-based and performance-based RSUs to its employees, executive officers and non-employee directors. The plans may be terminated by the Company’s Board of Directors at any time. | ||||||||||||||||||
Stock-Based Compensation Expense Information | ||||||||||||||||||
The following table summarizes the allocation of stock-based compensation expense related to employee and director stock options and RSUs under FASB ASC 718 for the years ended December 31, 2014, 2013 and 2012 (in thousands): | ||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||
Stock-based compensation expense by category: | ||||||||||||||||||
Costs of recurring revenues | $ | 1,345 | $ | 806 | $ | 523 | ||||||||||||
Costs of services revenues | 432 | 245 | 147 | |||||||||||||||
Sales and marketing | 4,077 | 3,109 | 2,250 | |||||||||||||||
Research and development | 4,027 | 2,733 | 1,886 | |||||||||||||||
General and administrative | 3,378 | 2,354 | 1,871 | |||||||||||||||
Total stock-based compensation expense | $ | 13,259 | $ | 9,247 | $ | 6,677 | ||||||||||||
Effect of stock-based compensation expense on net income (loss) per share: | ||||||||||||||||||
Basic | $ | -0.63 | $ | -0.46 | $ | -0.35 | ||||||||||||
Diluted | -0.63 | -0.44 | -0.33 | |||||||||||||||
In addition, the Company capitalized $1.7 million of stock-based compensation expense during 2014 related to capitalized software. No stock-based compensation expenses were capitalized during 2013 or 2012. | ||||||||||||||||||
At each quarter end, the Company evaluates the probability that the performance-based awards granted during the year will be forfeited at year-end for non-performance and reverses the associated expense recorded in previous periods. During the fourth quarter of 2014, 2013 and 2012, the Company reversed stock option expense recorded in previous periods associated with these performance-based options totaling $300,000 in 2014, $128,000 in 2013 and $54,000 in 2012. After taking into account the options that were cancelled during 2014, 2013 and 2012, the estimated total grant date fair value, not accounting for estimated forfeitures, is as follows (in thousands): | ||||||||||||||||||
Number of Options Granted | Number of Options Cancelled | Grant Date Fair Value | ||||||||||||||||
Year: | ||||||||||||||||||
2014 | 271 | 101 | $ | 7,068 | ||||||||||||||
2013 | 275 | 46 | 4,521 | |||||||||||||||
2012 | 416 | 21 | 4,896 | |||||||||||||||
As required by FASB ASC 718, management has made an estimate of expected forfeitures and is recognizing compensation expense only for those stock awards expected to vest. For the year ended December 31, 2014, the Company estimated that the total stock-based compensation expense for the awards not expected to vest was $167,000, with such amounts deducted to arrive at the fair value of $6.9 million. | ||||||||||||||||||
Stock Option and RSU Valuation | ||||||||||||||||||
The Company estimated the fair value of stock options using the Black-Scholes valuation model. During the fourth quarter of 2013, the Company re-evaluated the expected life of its stock options based on historical exercise data by reviewing the exercise, expiration and termination patterns of the Company’s three types of stock options. Based on the results of this analysis, the expected life of non-performance-based stock options issued in the first quarter of 2014 changed from an expected life of 4.25 years used in 2013 to an expected life of 4.0 years, the expected life of performance-based stock options issued in the first quarter of 2014 changed from an expected life of 4.75 years used in 2013 to an expected life of 4.5 years and the expected life of annual director options issued in the second quarter of 2014 changed from an expected life of 3.5 years used in 2013 to an expected life of 4.0 years. | ||||||||||||||||||
Non-performance-based options and RSUs were historically granted throughout the year to newly-elected non-employee directors and newly-hired employees of the Company, and were granted annually to management. Performance-based options were only granted to sales and marketing employees during the first quarter of each year and annual option grants to non-employee directors only occurred during the second quarter of each year. Beginning in 2015, the Company does not intend to issue stock options, but plans to issue time-based and performance-based RSUs to its employees, executive officers and non-employee directors. The weighted-average estimated per option value of non-performance-based, performance-based and director options granted under the 2006 Plan during the years ended December 31, 2014, 2013 and 2012 was $31.38, $17.99 and $12.21, respectively, using the following assumptions: | ||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||
Valuation assumptions for non-performance-based options: | 2014 | 2013 | 2012 | |||||||||||||||
Dividend yield | - | % | - | % | - | % | ||||||||||||
Expected volatility | 60.41 | % | 54.36 - 54.44 | % | 59.04 - 64.70 | % | ||||||||||||
Risk-free interest rate | 1.38 | % | 1.04 - 1.12 | % | 0.53 - 0.71 | % | ||||||||||||
Expected life of option (in years) | 4.00 | 4.25 | 4.25 | |||||||||||||||
Years Ended December 31, | ||||||||||||||||||
Valuation assumptions for performance-based options: | 2014 | 2013 | 2012 | |||||||||||||||
Dividend yield | - | % | - | % | - | % | ||||||||||||
Expected volatility | 59.76 | % | 57.56 | % | 63.23 | % | ||||||||||||
Risk-free interest rate | 1.51 | % | 0.73 | % | 0.79 | % | ||||||||||||
Expected life of option (in years) | 4.50 | 4.75 | 4.75 | |||||||||||||||
Years Ended December 31, | ||||||||||||||||||
Valuation assumptions for annual director options: | 2014 | 2013 | 2012 | |||||||||||||||
Dividend yield | - | % | - | % | - | % | ||||||||||||
Expected volatility | 61.70 | % | 49.33 | % | 57.10 | % | ||||||||||||
Risk-free interest rate | 1.17 | % | 0.54 | % | 0.49 | % | ||||||||||||
Expected life of option (in years) | 4.00 | 3.50 | 3.50 | |||||||||||||||
Expected Dividend: The Black-Scholes valuation model calls for a single expected dividend yield as an input. The Company has never declared or paid cash dividends on its common stock and does not expect to declare or pay any cash dividends in the foreseeable future. | ||||||||||||||||||
Expected Volatility: The Company’s volatility factor was based exclusively on its historical stock prices over the most recent period commensurate with the estimated expected life of the stock options. | ||||||||||||||||||
Risk-Free Rate: The Company bases the risk-free interest rate on the implied yield currently available on U.S. Treasury zero-coupon issues with an equivalent remaining term commensurate with the estimated expected life of the stock options. | ||||||||||||||||||
Expected Term: The Company’s expected term represents the period that the Company’s stock options are expected to be outstanding. Previously, the simplified method as described in FASB ASC 718 was used to calculate the expected term. Beginning in 2013, the Company calculated expected term based on historical exercise data. The earned performance-based options accounted for 3%, 7%, and 8% of total options granted in 2014, 2013 and 2012, respectively. | ||||||||||||||||||
Estimated Pre-vesting Forfeitures: The Company includes an estimate for forfeitures in calculating stock option expense. When estimating forfeitures, the Company considers historical termination behavior as well as any future trends it expects. In 2005, the Company began issuing options with a term of six years from the date of grant. | ||||||||||||||||||
If an incentive stock option is granted to an employee who, at the time the option is granted, owns stock representing more than 10% percent of the voting power of all classes of stock of the Company, the exercise price of the option may not be less than 110% of the market value per share on the date the option is granted and the term of the option shall be not more than five years from the date of grant. | ||||||||||||||||||
RSUs are valued using the fair market value of the Company’s stock on the date of grant and expense is recognized on a straight-line basis taking into account an estimated forfeiture rate. | ||||||||||||||||||
Stock Option and RSU Activity | ||||||||||||||||||
The following table sets forth a summary of stock option activity for the years ended December 31, 2014, 2013 and 2012: | ||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||
Weighted- | Weighted- | Weighted- | ||||||||||||||||
Average | Average | Average | ||||||||||||||||
Exercise | Exercise | Exercise | ||||||||||||||||
Options | Price | Options | Price | Options | Price | |||||||||||||
Balances, beginning of year | 1,852,620 | $ | 22.25 | 2,631,198 | $ | 17.21 | 2,665,654 | $ | 15.16 | |||||||||
Options granted | 225,250 | 63.15 | 251,250 | 41.91 | 401,000 | 24.87 | ||||||||||||
Options exercised | -672,321 | 12.79 | -1,007,578 | 14.00 | -429,956 | 11.69 | ||||||||||||
Options cancelled, forfeited or expired | -54,750 | 42.73 | -22,250 | 20.98 | -5,500 | 14.05 | ||||||||||||
Options outstanding at end of year | 1,350,799 | 32.95 | 1,852,620 | 22.25 | 2,631,198 | 17.21 | ||||||||||||
Option price range at end of year | $ | 6.66 - 66.39 | $ | 3.53 - 66.21 | $ | 2.89 - 37.76 | ||||||||||||
Weighted-average fair value of options granted during the year | $ | 31.38 | $ | 17.99 | $ | 12.21 | ||||||||||||
Options exercisable at end of year | 723,801 | 24.98 | 1,010,495 | 15.53 | 1,579,982 | 13.33 | ||||||||||||
The following table sets forth information regarding the Company’s stock options outstanding and exercisable at December 31, 2014: | ||||||||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||||||
Weighted- | ||||||||||||||||||
Average | Weighted- | Weighted- | ||||||||||||||||
Remaining | Average | Average | ||||||||||||||||
Range of Exercise | Contractual | Exercise | Exercise | |||||||||||||||
Prices | Number | Life | Price | Number | Price | |||||||||||||
$ | 6.66 | - | $ | 18.90 | 117,225 | 0.84 | $ | 12.14 | 117,225 | $ | 12.14 | |||||||
19.66 | - | 19.66 | 235,425 | 1.19 | 19.66 | 224,800 | 19.66 | |||||||||||
19.77 | - | 22.92 | 10,000 | 1.38 | 22.48 | 5,000 | 22.09 | |||||||||||
24.50 | - | 24.50 | 242,400 | 3.21 | 24.50 | 91,150 | 24.50 | |||||||||||
25.00 | - | 30.92 | 77,750 | 3.28 | 26.96 | 53,500 | 26.42 | |||||||||||
32.33 | - | 32.33 | 194,750 | 2.23 | 32.33 | 127,000 | 32.33 | |||||||||||
32.53 | - | 37.76 | 62,250 | 2.92 | 33.36 | 39,000 | 33.04 | |||||||||||
39.97 | - | 39.97 | 153,749 | 4.31 | 39.97 | 24,376 | 39.97 | |||||||||||
48.12 | - | 66.21 | 87,000 | 4.89 | 50.30 | 41,750 | 50.49 | |||||||||||
66.39 | - | 66.39 | 170,250 | 5.18 | 66.39 | - | - | |||||||||||
Total shares/average price | 1,350,799 | 2.97 | 32.95 | 723,801 | 24.98 | |||||||||||||
The total intrinsic value of options exercised during the year ended December 31, 2014 was $29.5 million. The aggregate intrinsic value of options outstanding as of December 31, 2014 was $23.6 million and the aggregate intrinsic value of options currently exercisable as of December 31, 2014 was $16.7 million. The aggregate intrinsic value represents the total intrinsic value, based on the Company’s closing stock price per share of $47.90 as of December 31, 2014, which would have been realized by the option holders had all option holders exercised their options as of that date. The total number of in-the-money options exercisable as of December 31, 2014 represented 682,051 shares with a weighted average exercise price of $23.41. | ||||||||||||||||||
As of December 31, 2014, there was $8.3 million of total unrecognized compensation expense related to non-vested stock options. This expense is expected to be recognized over the weighted average remaining vesting period of 1.67 years. | ||||||||||||||||||
The following table sets forth a summary of RSU activity for the year ended December 31, 2014: | ||||||||||||||||||
Weighted- | ||||||||||||||||||
Average Grant | ||||||||||||||||||
Awards | Date Price | |||||||||||||||||
Balances, beginning of year | 385,701 | $ | 36.72 | |||||||||||||||
RSUs granted | 359,769 | 60.15 | ||||||||||||||||
RSUs vested | -117,591 | 35.35 | ||||||||||||||||
RSUs forfeited | -35,515 | 53.08 | ||||||||||||||||
RSUs outstanding | 592,364 | 50.24 | ||||||||||||||||
As of December 31, 2014, there was $22.9 million of total unrecognized compensation expense related to non-vested RSUs. This expense is expected to be recognized over the weighted average remaining vesting period of 2.24 years. | ||||||||||||||||||
2000 Employee Stock Purchase Plan | ||||||||||||||||||
In May 2000, the Company adopted the 2000 Employee Stock Purchase Plan (the “2000 Purchase Plan”). A total of 500,000 shares of common stock were reserved for issuance under the 2000 Purchase Plan. In May 2005, the shareholders of the Company approved an amendment to the 2000 Purchase Plan that increased the number of shares of common stock available for purchase and issuance to 750,000. The 2000 Purchase Plan permits eligible employees to acquire shares of the Company’s common stock through periodic payroll deductions of up to 20% of their total compensation up to a maximum of $1,000 per pay period. The price at which the Company’s common stock may be purchased is 95% of the fair market value of the Company’s closing common stock price, as reported on The NASDAQ Global Select Market, on the last business day of the quarter. The actual purchase date is generally on the first business day of the next calendar quarter. An employee may set aside up to $25,000 to purchase shares annually. The initial offering period commenced on April 1, 2000. A total of 25,365 shares, 19,002 shares and 25,644 shares were purchased and issued during 2014, 2013 and 2012, respectively, under the 2000 Purchase Plan at an average price of $52.04, $44.02 and $26.50, respectively. As of December 31, 2014, there were 63,363 shares available for purchase and issuance under the 2000 Purchase Plan. | ||||||||||||||||||
The 2000 Purchase Plan was modified, as of January 1, 2006, to ensure that it was considered non-compensatory under FASB ASC 718. As a result, the Company has not recognized any stock-based compensation expense related to its 2000 Purchase Plan. | ||||||||||||||||||
Lease_Commitments
Lease Commitments | 12 Months Ended | ||
Dec. 31, 2014 | |||
Lease Commitments [Abstract] | |||
Lease Commitments | 8.LEASE COMMITMENTS | ||
The Company’s world headquarters are located in approximately 315,000 square feet of space in three office buildings in Indianapolis, Indiana. This space was formerly leased pursuant to that certain Office Lease Agreement (the “Office Lease”), dated April 1, 2001, between the Company and Duke Realty Limited Partnership (formerly Duke-Weeks Realty Limited Partnership), as amended. On May 6, 2014, the Company entered into a lease termination agreement with Duke Realty Limited Partnership, whereby the Office Lease (and the eight amendments thereto) was terminated. In place of such Office Lease and amendments, on May 6, 2014, the Company entered into new separate lease agreements with Duke Realty Limited Partnership for each of the three office buildings, one of which expires on March 31, 2018 and two of which expire on or after June 30, 2025. | |||
On May 6, 2014, the Company also entered into a lease agreement with Duke Construction Limited Partnership to expand its world headquarters to include a fourth, build-to-suit building in Indianapolis, Indiana. The target date for completion of construction of the fourth office building is mid-2015 and the lease term expires 10 years after construction in completed. | |||
The Company also occupies a product distribution center in Indianapolis, Indiana, has regional offices and international offices in Europe, the Middle East and Africa (“EMEA”) and Asia-Pacific (“APAC”), and has several other office leases throughout the United States and in 20 other countries with initial lease terms of up to five years. The Company rents office space for sales, services, development and international offices under three to five year leases. In accordance with FASB ASC 840, rental expense is recognized ratably over the lease period, including those leases containing escalation clauses. | |||
The Company believes that all of its facilities are adequate and well suited to accommodate its business operations. The Company continuously reviews space requirements to ensure it has adequate room for growth in the future. Since December 31, 2014, the Company has not entered into any new operating leases. | |||
Rent expense, net was $12.5 million, $9.9 million and $9.1 million for the years ended December 31, 2014, 2013 and 2012, respectively. Minimum future lease payments under the Company’s operating leases as of December 31, 2014 are summarized as follows (in thousands): | |||
2015 | $ | 13,527 | |
2016 | 14,232 | ||
2017 | 12,411 | ||
2018 | 9,792 | ||
2019 | 9,216 | ||
Thereafter | 45,650 | ||
Total minimum lease payments | $ | 104,828 | |
Retirement_Savings_Plan
Retirement Savings Plan | 12 Months Ended |
Dec. 31, 2014 | |
Retirement Savings Plan [Abstract] | |
Retirement Savings Plan | 9.RETIREMENT SAVINGS PLAN |
The Company maintains a 401(k) retirement savings plan (the “Plan”) to provide retirement benefits for substantially all of its North American employees. Participants in the Plan may elect to contribute up to 50% of their pre-tax annual compensation to the Plan, limited to the maximum amount allowed by the Internal Revenue Code, as amended. The Company, at its discretion, may also make annual contributions to the Plan. | |
Effective July 1, 2012, the Plan Administrator approved an amendment to the Plan Document to exclude temporary and leased employees from being able to participate in the Plan. | |
For the years ended December 31, 2014, 2013 and 2012, subject to meeting specified operating targets, the Company matched up to 33% of the first 9% of a participant’s pre-tax compensation contributed to the Plan. For the year ended December 31, 2014, the Company’s performance did not result in a match; however the Compensation Committee approved a discretionary match for the maximum contribution of $2.7 million, which was contributed by issuing shares of the Company’s common stock to the employees’ accounts in February 2015. For the year ended December 31, 2013, the Company’s performance resulted in a match for the full amount of $2.0 million, which was contributed to the employees’ accounts in cash in February 2014. For the year ended December 31, 2012, the Company’s performance resulted in no match; however due to the Company’s high order growth performance, its Board of Directors granted a discretionary match for the maximum contribution of $1.5 million, which was contributed to the employees’ accounts in cash in February 2013. | |
For an eligible participant who has worked for the Company for less than four years at the time of the Company matching contribution, the contribution will vest in equal installments over four years based on the anniversary date of the participant’s employment. For an eligible participant who has worked for the Company for four or more years at the time of contribution, the contribution is 100% vested. | |
For the year ended December 31, 2015, the Company anticipates matching up to 33% of the first 9% of a participant’s pre-tax compensation contributed to the Plan. | |
Although the Company has not expressed any intent to terminate the Plan, it has the option to do so at any time subject to the provisions of the Employee Retirement Income Security Act of 1974. Upon termination of the Plan, either full or partial, participants become fully vested in their entire account balances. | |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Income Taxes [Abstract] | |||||||||
Income Taxes | |||||||||
10. INCOME TAXES | |||||||||
The following table sets forth information regarding the United States and foreign components of income tax expense for 2014, 2013 and 2012 (in thousands): | |||||||||
Current | Deferred | Total | |||||||
2014 | |||||||||
United States Federal | $ | -3,920 | $ | 28,333 | $ | 24,413 | |||
State and local | -594 | -787 | -1,381 | ||||||
Foreign jurisdiction | 1,254 | -414 | 840 | ||||||
Total | $ | -3,260 | $ | 27,132 | $ | 23,872 | |||
2013 | |||||||||
United States Federal | $ | 3,735 | $ | -7,380 | $ | -3,645 | |||
State and local | 587 | -580 | 7 | ||||||
Foreign jurisdiction | 7,433 | -222 | 7,211 | ||||||
Total | $ | 11,755 | $ | -8,182 | $ | 3,573 | |||
2012 | |||||||||
United States Federal | 9,670 | -7,844 | 1,826 | ||||||
State and local | 1,705 | -1,060 | 645 | ||||||
Foreign jurisdiction | 1,696 | -3,407 | -1,711 | ||||||
Total | $ | 13,071 | $ | -12,311 | $ | 760 | |||
The tax effects of temporary differences that gave rise to significant portions of the deferred tax assets at December 31, 2014, 2013 and 2012 are presented below (in thousands): | |||||||||
2014 | 2013 | 2012 | |||||||
Deferred tax assets: | |||||||||
Allowance for doubtful accounts | $ | 382 | $ | 293 | $ | 455 | |||
Accrued expenses | 4,244 | 4,144 | 3,786 | ||||||
Deferred revenues | 14,125 | 13,442 | 6,785 | ||||||
Stock-based compensation expense | 7,849 | 6,037 | 5,575 | ||||||
Depreciation and amortization expense | 1,014 | 423 | 348 | ||||||
Tax net operating loss carryforwards | 906 | 109 | 3,962 | ||||||
Foreign tax credit carryforwards | 2,668 | 1,403 | 1,031 | ||||||
Research tax carryforwards | 7,425 | 3,930 | 2,190 | ||||||
Valuation allowance | -33,555 | -135 | - | ||||||
Total deferred tax assets | 5,058 | 29,646 | 24,132 | ||||||
Deferred tax liabilities: | |||||||||
Depreciation and amortization expense | -948 | -1,287 | - | ||||||
Intangibles | -6,403 | -6,957 | -7,491 | ||||||
Investments | -143 | -143 | -140 | ||||||
Total deferred tax liabilities | -7,494 | -8,387 | -7,631 | ||||||
Net deferred tax assets | $ | -2,436 | $ | 21,259 | $ | 16,501 | |||
In assessing the recoverability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon generation of future taxable income prior to the period in which temporary differences such as loss carryforwards and tax credits expire. Management considers the scheduled reversal of deferred tax liabilities, if any (including the impact of available carryback and carryforward periods), projected future taxable income and tax planning strategies in making this assessment. During the fourth quarter of 2014, the Company recorded a deferred income tax expense of $33.4 million related to recording a valuation allowance to reduce a significant portion of the Company’s deferred tax assets. The Company has incurred cumulative tax losses in recent periods due to its business model shift to the cloud. Such tax losses may continue for a period of time. This deferred income tax expense reflects the Company’s assessment that it is more likely than not that the deferred tax assets will not be realizable in the foreseeable future. Therefore, the Company recorded a valuation allowance to reduce the carrying value of the deferred tax assets. As a result, the valuation allowance on the Company’s net deferred tax assets increased by $33.4 million during 2014. | |||||||||
The following table sets forth the items accounting for the difference between expected income tax expense compared to actual income tax expense recorded in the Company’s consolidated financial statements (in thousands): | |||||||||
Years Ended December 31, | |||||||||
2014 | 2013 | 2012 | |||||||
Expected income tax expense at 35% tax rate | $ | -6,123 | $ | 4,580 | $ | 583 | |||
Permanent items | 485 | 612 | - | ||||||
State taxes, net of federal benefit | -634 | 361 | 554 | ||||||
Disqualifying dispositions of stock options | -44 | -353 | -237 | ||||||
Research tax credit | -2,487 | -2,441 | -621 | ||||||
Prior year tax credit adjustment | - | 702 | 97 | ||||||
Increase in liabilities for uncertain tax positions | 210 | -35 | 431 | ||||||
Valuation allowance | 33,420 | 135 | - | ||||||
Other | -955 | 12 | -47 | ||||||
Income tax expense | $ | 23,872 | $ | 3,573 | $ | 760 | |||
During 2010, the Company utilized its remaining US federal net operating losses generated from tax benefits related to the exercise of stock options. The Company had no tax benefits related to the exercise of stock options during 2014. Tax benefits related to the exercise of stock options during 2013 and 2012 were $13.5 million and $1.2 million, respectively. The Company does not record a deferred tax asset on its balance sheet for the tax benefits from these deductions until they are realizable. At December 31, 2014, the Company had approximately $10.0 million of foreign tax credits and federal and state research tax credit carryforwards available to offset taxes payable. | |||||||||
The Company and its subsidiaries file federal income tax returns and income tax returns in various states and foreign jurisdictions. Tax years 2012 and forward remain open for examination for federal tax purposes and tax years 2010 and forward remain open for examination for the Company’s more significant state tax jurisdictions. To the extent utilized in future years’ tax returns, net operating loss and capital loss carryforwards at December 31, 2014 will remain subject to examination until the respective tax year is closed. | |||||||||
Historically, the impact of foreign effective income tax rates on the Company’s overall effective income tax rates has been immaterial due to the fact that the Company uses a cost plus basis method for calculating taxes in the majority of the foreign tax jurisdictions in which the Company operates. A cost plus basis limits the taxes paid in these foreign jurisdictions to a markup of the costs that the Company incurs in these jurisdictions and is not tied to the actual revenues generated. A cost plus basis guarantees the foreign subsidiaries operating income whereas foreign subsidiary resellers are not guaranteed a profit margin. However, due to the Company switching certain of its existing foreign subsidiaries from cost plus to resellers entities, the foreign effective tax rate could become material in future years. As of December 31, 2014, 2013 and 2012, the recorded foreign tax expense (benefit) and the related effect on the income tax rates were $0.5 million, or 2.08%, $6.8 million, or 190%, and ($2.9 million), or (376%), respectively. | |||||||||
FASB ASC 740 prescribes a recognition threshold and measurement attributes for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The Company has identified uncertain tax positions related to certain tax credits and certain state income tax apportionment that the Company currently believes meet the “more likely than not” recognition threshold to be sustained upon examination. The balance of the reserve was approximately $2.3 million at December 31, 2014. | |||||||||
The Company accounts for uncertain income taxes under FASB ASC 740. The Company recognizes financial statement benefits for positions taken for tax return purposes when it is more-likely-than-not that the position will be sustained. A reconciliation of the beginning and ending amount of the gross unrecognized tax benefits is as follows (in thousands): | |||||||||
2014 | 2013 | ||||||||
Unrecognized Tax Benefits at Beginning of Year | $ | 2,087 | $ | 2,131 | |||||
Increase in balance due to current year tax position | 439 | 461 | |||||||
Decrease in balance due to resolution of prior year tax position | -229 | -505 | |||||||
Unrecognized Tax Benefits at End of Year | $ | 2,297 | $ | 2,087 | |||||
If recognized, the entire remaining balance of unrecognized tax benefits would impact the effective tax rate. We recognize interest income, interest expense, and penalties relating to tax exposures as a component of income tax expense. As of December 31, 2014, the unrecognized tax benefit of $2.3 million included $27,000 of interest expense and penalties related to the above unrecognized tax benefits. | |||||||||
Segment_And_Geographic_Disclos
Segment And Geographic Disclosures | 12 Months Ended |
Dec. 31, 2014 | |
Segment And Geographic Disclosures [Abstract] | |
Segment And Geographic Disclosures | 11.SEGMENT AND GEOGRAPHIC DISCLOSURES |
In accordance with FASB ASC Topic 280, Segment Reporting , the Company views its operations and manages its business as principally one segment which is interaction management software solutions licensing and associated services. As a result, the financial information disclosed herein represents all of the material financial information related to the Company’s principal operating segment. | |
Revenues derived from customers and partners located in the United States accounted for approximately 64% of the Company’s total revenues in 2014, and approximately 63% of the Company’s total revenues in each of 2013 and 2012. The remaining revenues are from customers and partners located in foreign countries and each individual foreign country accounted for less than 10% of total revenues in each of 2014, 2013 and 2012. The Company attributes revenues to countries based on the country in which the customer or partner is located. Additionally, as of December 31, 2014 and 2013, the percentage of the Company’s net property and equipment, which included computer and office equipment, furniture and fixtures, leasehold improvements and data center equipment, that was located outside of the United States decreased to approximately 10% in 2014 from 11% in 2013. No more than 10% of the Company’s net property and equipment was located in any individual foreign country as of December 31, 2014 and 2013. | |
Commitments_And_Contingencies
Commitments And Contingencies | 12 Months Ended |
Dec. 31, 2014 | |
Commitments And Contingencies [Abstract] | |
Commitments And Contingencies | 12.COMMITMENTS AND CONTINGENCIES |
Legal Proceedings | |
From time to time, the Company has received notification from competitors and other technology providers claiming that the Company’s technology infringes their proprietary rights. The Company cannot assure you that these matters can be resolved amicably without litigation, or that the Company will be able to enter into licensing arrangements on terms and conditions that would not have a material adverse effect on its business, financial condition or results of operations. | |
From time to time, the Company is also involved in certain legal proceedings in the ordinary course of conducting its business. While the ultimate liability pursuant to these actions cannot currently be determined, the Company believes these legal proceedings will not have a material adverse effect on its financial position or results of operations. Litigation in general, and intellectual property litigation in particular, can be expensive and disruptive to normal business operations. Moreover, the results of complex legal proceedings are difficult to predict. | |
Guarantees | |
The Company provides indemnifications of varying scope and amount to certain customers against claims of intellectual property infringement made by third parties arising from the use of its solutions. The Company’s direct software license agreements include certain provisions for indemnifying customers, in material compliance with their license agreement, against liabilities if the Company’s software products infringe upon a third party's intellectual property rights, over the life of the agreement. There is no maximum potential amount of future payments set under the guarantee. However, the typical arrangement states that the Company may at any time and at its option and expense: (i) procure the right of the customer to continue to use the Company’s software that may infringe a third party’s rights; (ii) modify its software so as to avoid infringement; or (iii) require the customer to return its software and refund the customer the fee actually paid by the customer for its software less depreciation based on a five-year straight-line depreciation schedule. The customer’s failure to provide timely notice or reasonable assistance will relieve the Company of its obligations under this indemnification to the extent that it has been actually and materially prejudiced by such failure. To date, the Company has not incurred, nor does it expect to incur, any material related costs and, therefore, has not reserved for such liabilities in accordance with FASB ASC Topic 460, Guarantees. | |
The Company’s software license agreements also include a warranty that its software products will substantially conform to its software user documentation for a period of one year, provided the customer is in material compliance with the software license agreement. To date, the Company has not incurred any material costs associated with these product warranties, and as such, has not reserved for any such warranty liabilities in its operating results. | |
Lease Commitments and Other Contingencies | |
See Note 8 for further information on the Company’s lease commitments. | |
The Company has received and may continue to receive certain payroll tax credits and real estate tax abatements that were granted to the Company based upon certain growth projections. If the Company’s actual results are less than those projections, the Company may be subject to repayment of some or all of the tax credits or payment of additional real estate taxes in the case of the abatements. The Company does not believe that it will be subject to payment of any money related to these taxes; however, the Company cannot provide assurance as to the outcome. | |
Acquisitions
Acquisitions | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Acquisitions [Abstract] | ||||||||||||
Acquisitions | ||||||||||||
13 | ACQUISITIONS | |||||||||||
OrgSpan Acquisition | ||||||||||||
On May 14, 2014, the Company entered into a stock purchase agreement and acquired OrgSpan, Inc. (“OrgSpan”), a privately held provider of cloud-based enterprise social communications solutions. The Company purchased OrgSpan to leverage technology that will provide efficient deployment of the Company’s PureCloud Platform. As previously disclosed, Donald E. Brown, the Company’s Chairman of the Board, President and Chief Executive Officer, was a founder and majority stockholder of OrgSpan. The Company purchased OrgSpan for approximately $14.1 million, partially funded with cash on hand, which included the repayment of OrgSpan’s outstanding debt of approximately $8.0 million. OrgSpan’s outstanding debt consisted primarily of operating loans provided by Dr. Brown bearing interest at a rate of 4.25% per annum. Approximately $1.4 million in cash was paid to OrgSpan’s stockholders (other than Dr. Brown) and to holders of vested OrgSpan stock options. In exchange for his shares of OrgSpan stock, Dr. Brown has the right to receive an aggregate of 98,999 restricted shares of the Company’s common stock (the “Restricted Shares”), representing approximately $4.7 million of the purchase price, which Restricted Shares will vest and be issued by the Company upon the achievement of certain performance-based conditions tied to the launch and sales of the Company’s PureCloud Platform, which incorporates certain OrgSpan products and technology. The Restricted Shares will be unregistered. The difference between the $15.6 million purchase price previously disclosed in the Form 8-K filed on May 14, 2014 and the $14.1 million noted above is a result of the difference in the value of the 98,999 Restricted Shares received by Dr. Brown for accounting purposes. The Company also retained 38 OrgSpan employees as part of the transaction. | ||||||||||||
The acquisition was accounted for using the acquisition method of accounting in accordance with FASB ASC Topic 805, Business Combinations (“FASB ASC 805”). The results of OrgSpan’s operations were included in the Company’s condensed consolidated financial statements commencing on the acquisition date. | ||||||||||||
The purchase price allocations for the OrgSpan transaction were prepared by the Company’s management utilizing a third-party valuation report, which was prepared in accordance with the provisions of FASB ASC 805, and other tools available to the Company, including conversations with OrgSpan’s management and historical data from the Company’s other acquisitions. The following table summarizes the fair value of the intangible and other assets acquired and liabilities assumed at the date of the acquisition (in thousands): | ||||||||||||
May 1, | ||||||||||||
2014 | ||||||||||||
Cash and cash equivalents | $ | 61 | ||||||||||
Prepaid expenses | 54 | |||||||||||
Property and equipment, net | 144 | |||||||||||
Intangible assets, net | 5,766 | |||||||||||
Goodwill | 8,202 | |||||||||||
Total assets acquired | 14,227 | |||||||||||
Accrued accounts payable | -5 | |||||||||||
Other current liabilities | -44 | |||||||||||
Other long-term liabilities | -128 | |||||||||||
Net assets acquired | $ | 14,050 | ||||||||||
Professional fees related to this acquisition and recognized as of December 31, 2014 totaled $612,000, and included transaction costs such as legal, accounting, and valuation services, which were expensed as incurred. These costs are included within general and administrative expenses on the condensed consolidated statements of operations and comprehensive income (loss). | ||||||||||||
The premium paid over the fair value of the net assets acquired in the purchase, or goodwill, was primarily attributed to OrgSpan’s existing trained workforce. The goodwill is expected to be deductible for tax purposes, as the Company made a Section 338(h)(10) election for this acquisition. | ||||||||||||
Intangible assets acquired resulting from this acquisition consisted of technology, which is amortized on a straight-line basis. The following sets forth the current net book value of technology acquired and its original economic useful life (dollars in thousands): | ||||||||||||
As of December 31, 2014 | ||||||||||||
Economic | ||||||||||||
Accumulated | Useful Life | |||||||||||
Gross Amount | Amortization | Net Amount | (in years) | |||||||||
Technology | $ | 5,766 | $ | 384 | $ | 5,382 | 10 | |||||
Amtel Acquisition | ||||||||||||
On April 1, 2013, the Company closed its acquisition of certain assets of a New Zealand reseller, Amtel Communications, Ltd. (“Amtel”). Pursuant to the terms of the asset purchase agreement, the Company purchased contact center assets of Amtel for approximately $725,000, funded with cash-on-hand. The Company purchased Amtel’s customer support agreements as a continued part of its growth strategy, which increases the Company’s presence internationally, gives local customers direct access to expanded support services and paved the way for the launch of cloud-based communications services in New Zealand. The acquisition was accounted for using the acquisition method of accounting in accordance with FASB ASC 805. The results of Amtel’s operations related to the acquired assets were included in the Company’s condensed consolidated financial statements commencing on the acquisition date. | ||||||||||||
The purchase price allocations for the Amtel transaction were prepared by the Company’s management utilizing a third-party valuation report, which was prepared in accordance with the provisions of FASB ASC 805, and other tools available to the Company, including conversations with Amtel’s management and historical data from the Company’s other acquisitions. The following table summarizes the fair value of the intangible and other assets acquired and liabilities assumed at the date of the acquisition (in thousands): | ||||||||||||
April 1, | ||||||||||||
2013 | ||||||||||||
Intangible assets, net | $ | 564 | ||||||||||
Goodwill | 296 | |||||||||||
Total assets acquired | 860 | |||||||||||
Deferred services revenues | -135 | |||||||||||
Net assets acquired | $ | 725 | ||||||||||
Professional fees recognized related to the Amtel acquisition totaled approximately $21,000 and included transaction costs such as legal, accounting, and valuation services, which were expensed as incurred. These costs are included within general and administrative expenses on the consolidated statements of operations and comprehensive income (loss). | ||||||||||||
The premium paid over the fair value of the net assets acquired in the purchase, or goodwill, was primarily attributed to Amtel’s existing client base. Included within goodwill is the assembled workforce, comprised of five employees, which does not qualify for separate recognition. None of the goodwill is expected to be deductible for tax purposes. | ||||||||||||
Intangible assets acquired resulting from this acquisition consisted of customer relationships, which are amortized on a straight-line basis. The following sets forth the current net book value of customer relationships acquired and their original economic useful life (dollars in thousands): | ||||||||||||
As of December 31, 2014 | ||||||||||||
Economic | ||||||||||||
Accumulated | Useful Life | |||||||||||
Gross Amount | Amortization | Net Amount | (in years) | |||||||||
Customer relationships | $ | 526 | $ | 77 | $ | 449 | 12 | |||||
Pro Forma Results | ||||||||||||
The Company has not furnished pro forma financial information related to its acquisition of OrgSpan or certain contact center assets of Amtel because such information is not material individually or in the aggregate to the overall financial results of the Company. | ||||||||||||
Goodwill and Other Intangible Assets | ||||||||||||
The following table presents a roll forward of goodwill as of December 31, 2014 (in thousands): | ||||||||||||
Balance as of December 31, 2013 | $ | 37,298 | ||||||||||
OrgSpan goodwill | 8,202 | |||||||||||
Foreign currency adjustment | -1,768 | |||||||||||
Balance as of December 31, 2014 | $ | 43,732 | ||||||||||
Application of goodwill impairment testing involves judgment, including but not limited to, the identification of reporting units and estimation of the fair value of each reporting unit. A reporting unit is defined as an operating segment or one level below an operating segment. The Company tests goodwill at the operating segment level as it has determined that the characteristics of the reporting units within its operating segment are similar and allows for their aggregation in accordance with the applicable accounting guidance. Based on the review of the qualitative events and circumstances outlined in FASB ASU 2011-08, the Company determined that it was more likely than not that the fair value of its reporting unit was greater than its carrying amount, and the two-step process of the goodwill impairment test was not necessary to perform. Identifiable intangible assets such as intellectual property trademarks and patents are amortized over a 10 to 15 year period using the straight-line method. In addition, other intangible assets, such as customer relationships, core technology and non-compete agreements are amortized over a 5 to 18 year period using the straight-line method. The Company determined no indication of impairment existed as of December 31, 2014 when the annual impairment tests were performed for goodwill and intangible assets. | ||||||||||||
Derivatives
Derivatives | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Derivatives [Abstract] | |||||||
Derivatives | 14.DERIVATIVES | ||||||
The Company enters into derivative contracts to mitigate its foreign currency risk associated with transacting business internationally. The Company uses foreign currency forward contracts to hedge the revaluation exposure of its net monetary assets and liabilities including cash, accounts receivable, accounts payable and certain intercompany payables and receivables. These hedges are undesignated and all realized and unrealized gains and losses are recorded as incurred within other income (expense) on the Company’s consolidated statements of operations and comprehensive income (loss). The objective is to offset the gains and losses on the underlying exposures with the gains and losses from the forward contracts. The Company’s hedging policy prohibits entering into hedge contracts that are speculative in nature. | |||||||
The Company records the fair value of its outstanding hedge contracts in other current assets and accrued liabilities depending upon the market value of the forward contracts at each balance sheet date. The following table summarizes the notional amount and fair value of the Company’s outstanding currency contracts at December 31, 2014 and December 31, 2013, respectively. | |||||||
USD Equivalent Notional Amount (000's) | |||||||
31-Dec-14 | 31-Dec-13 | ||||||
Euro | $ | 3,041 | $ | 12,483 | |||
Australian Dollar | 738 | 4,974 | |||||
US Dollar | 600 | 880 | |||||
Swedish Krona | 249 | - | |||||
South African Rand | - | 5,134 | |||||
Canadian Dollar | - | 2,017 | |||||
British Pound | - | 414 | |||||
New Zealand Dollar | - | 41 | |||||
Total | $ | 4,628 | $ | 25,943 | |||
Fair Value USD (1) (000's) | |||||||
31-Dec-14 | 31-Dec-13 | ||||||
Derivative Asset | $ | 17 | $ | 50 | |||
___________ | |||||||
-1 | The fair value measurement of these derivative contracts falls within Level 2 of the fair value hierarchy as defined in FASB ASC 820. See Note 3 - Investments for further information. | ||||||
During the years ended December 31, 2014 and 2013, the Company recorded hedging gains of $102,000 and $932,000, respectively. | |||||||
Recently_Issued_Accounting_Pro
Recently Issued Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2014 | |
Recently Issued Accounting Pronouncements [Abstract] | |
Recently Issued Accounting Pronouncements | |
15.RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS | |
In February 2013, the FASB issued FASB ASU 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income (Topic 220). The amendments in this update supersede and replace the presentation requirements for reclassifications out of accumulated other comprehensive income in FASB ASUs 2011-05 and 2011-12 for all public and private organizations. The amendments require an entity to provide additional information about reclassifications out of accumulated other comprehensive income. The guidance became effective for public entities for fiscal years and interim periods beginning after December 15, 2012. The Company adopted this guidance in the first quarter of 2013 and noted no material impact on its consolidated financial statements upon adoption. | |
In July 2013, the FASB issued FASB ASU 2013-11, Income Taxes: Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. This updated guidance requires an entity to present an unrecognized tax benefit as a reduction of a deferred tax asset for a net operating loss (NOL) carryforward, or similar tax loss or tax credit carryforward, rather than as a liability when (1) the uncertain tax position would reduce the NOL or other carryforward under the tax law of the applicable jurisdiction and (2) the entity intends to use the deferred tax asset for that purpose. This ASU does not require new recurring disclosures. The Company adopted this guidance during the first quarter of 2014 and noted no material impact on its consolidated financial statements upon adoption. | |
In May 2014, the FASB issued FASB ASU No. 2014-09, Revenue from Contracts with Customers (“FASB ASU 2014-09”), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. FASB ASU 2014-09 will replace most existing GAAP revenue recognition guidance when it becomes effective. This guidance becomes effective for the Company on January 1, 2017. Early adoption is not permitted. This guidance permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that FASB ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the guidance on its ongoing financial reporting. | |
Unaudited_Selected_Quarterly_F
Unaudited Selected Quarterly Financial Data | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Unaudited Selected Quarterly Financial Data [Abstract] | ||||||||||||
Unaudited Selected Quarterly Financial Data | 16. UNAUDITED SELECTED QUARTERLY FINANCIAL DATA | |||||||||||
The following selected quarterly data should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Item 7 of this Annual Report on Form 10-K. This information has been derived from unaudited consolidated financial statements of the Company that, in management’s opinion, reflect all recurring adjustments necessary to fairly present the Company’s financial information when read in conjunction with its consolidated financial statements and notes thereto. The results of operations for any quarter are not necessarily indicative of the results to be expected for any future period (in thousands, except per share amounts): | ||||||||||||
2014 | ||||||||||||
Quarter Ended | ||||||||||||
Mar. 31, | June 30, | Sep. 30, | Dec. 31, | |||||||||
Total revenues | $ | 79,448 | $ | 79,830 | $ | 89,462 | $ | 92,556 | ||||
Gross profit | 48,040 | 46,520 | 53,987 | 56,687 | ||||||||
Operating income (loss) | -4,813 | -11,513 | -3,464 | 2,010 | ||||||||
Net loss(1) | -2,564 | -6,798 | -2,143 | -29,863 | ||||||||
Net loss per share: | ||||||||||||
Basic | $ | -0.12 | $ | -0.33 | $ | -0.1 | $ | -1.42 | ||||
Diluted | -0.12 | -0.33 | -0.1 | -1.42 | ||||||||
Shares used to compute net loss per share: | ||||||||||||
Basic | 20,689 | 20,851 | 20,904 | 21,015 | ||||||||
Diluted | 20,689 | 20,851 | 20,904 | 21,015 | ||||||||
(1) During the fourth quarter of 2014, the Company recorded $33.4 million of deferred tax expense for a valuation on deferred tax assets. | ||||||||||||
2013 | ||||||||||||
Quarter Ended | ||||||||||||
Mar. 31, | June 30, | Sep. 30, | Dec. 31, | |||||||||
Total revenues | $ | 73,238 | $ | 76,242 | $ | 77,969 | $ | 90,785 | ||||
Gross profit | 47,308 | 48,900 | 50,003 | 57,969 | ||||||||
Operating income | 3,415 | 849 | 3,675 | 6,458 | ||||||||
Net income | 1,457 | 2,901 | 1,627 | 3,530 | ||||||||
Net income per share: | ||||||||||||
Basic | $ | 0.07 | $ | 0.15 | $ | 0.08 | $ | 0.17 | ||||
Diluted | 0.07 | 0.14 | 0.08 | 0.17 | ||||||||
Shares used to compute net income per share: | ||||||||||||
Basic | 19,704 | 19,946 | 20,112 | 20,360 | ||||||||
Diluted | 20,738 | 20,935 | 21,180 | 21,377 | ||||||||
Valuation_And_Qualifying_Accou
Valuation And Qualifying Accounts | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Valuation and Qualifying Accounts [Abstract] | ||||||||||||||
Valuation And Qualifying Accounts | Interactive Intelligence Group, Inc. | |||||||||||||
Schedule II – Valuation and Qualifying Accounts | ||||||||||||||
For the Years Ended December 31, 2014, 2013 and 2012 | ||||||||||||||
Description | Balance at Beginning of Period | Charged to Revenue and Expenses, net | Reduction of Allowance (1) | Balance at End of Period | ||||||||||
Allowance for Doubtful Accounts Receivable: | ||||||||||||||
2014 | $ | 1,233,000 | $ | 322,000 | $ | 503,000 | $ | 1,052,000 | ||||||
2013 | 1,584,000 | 132,000 | 483,000 | 1,233,000 | ||||||||||
2012 | 1,718,000 | 397,000 | 531,000 | 1,584,000 | ||||||||||
-1 | Uncollectible accounts written off, net of recoveries. | |||||||||||||
Summary_Of_Significant_Account
Summary Of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Summary Of Certain Accounting Policies And Recent Accounting Pronouncements [Abstract] | |||||||||
Principles of Consolidation | Principles of Consolidation | ||||||||
The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries after elimination of all significant intercompany accounts and transactions. | |||||||||
Use of Estimates | Use of Estimates | ||||||||
The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. On an on-going basis, management reevaluates these estimates including those related to revenue recognition, allowance for doubtful accounts, stock-based compensation, research and development, legal, goodwill and intangible assets, other assets and accounting for income taxes. Despite management’s best effort to establish good faith estimates and assumptions, actual results could differ from these estimates. | |||||||||
Revisions and Adjustments | Revisions and Adjustments | ||||||||
Effective January 1, 2014, the Company revised certain personnel related expenses which were included in cost of recurring revenues in prior periods to sales and marketing expenses. In prior years, these costs were not significant; however, as these costs have continued to increase in line with the Company’s growth strategy related to its cloud offerings, the Company concluded that it is appropriate to report these personnel related expenses as sales and marketing. For the year ended December 31, 2013, $904,000 has been revised to sales and marketing expenses based on this new expense presentation. The revision did not have any impact on the overall results previously reported. | |||||||||
During 2014, the Company separately classified deferred services revenues and deferred recurring revenues. As of December 31, 2013, $70.8 million has been reclassified to separately present deferred recurring revenues from deferred services revenues. The revision did not have any impact on the overall results previously reported. | |||||||||
Revenue Recognition | Revenue Recognition | ||||||||
The Company reports three types of revenues: product revenues, recurring revenues, and services revenues. Product revenues are generated from licensing the right to use its software solutions on-premises, and in certain instances, selling hardware as a component of the solution. Recurring revenues are generated by annual support fees from on-premises license agreements and fees from the Company’s cloud offerings. Services revenues are generated primarily from professional services and educational services fees. Revenues are generated by direct sales to customers and by indirect sales through the Company’s partner channels. | |||||||||
Product Revenue | Product Revenues | ||||||||
For any revenues to be recognized from a perpetual license agreement, the following criteria must be met: | |||||||||
· | Persuasive evidence of an arrangement exists; | ||||||||
· | The fee is fixed or determinable; | ||||||||
· | Collection is probable; and | ||||||||
· | Delivery has occurred. | ||||||||
For a perpetual license agreement, upon meeting the revenue recognition criteria above, the Company immediately recognizes as product revenues the residual amount of the total contract fees if sufficient vendor specific objective evidence (“VSOE”) of fair value exists to support allocating a portion of the total fee to the undelivered elements of the arrangement. If sufficient VSOE of fair value for the undelivered product support does not exist, the Company recognizes the initial license fee as product revenues ratably over the initial term of the support agreement once support is the only undelivered element. The support period is generally 12 months but may be up to 18 months for initial orders because support begins when the licenses are downloaded, when support commences, or no more than six months following the contract date. If the contract includes prepaid support, the support period may be up to 36 months. The Company determines VSOE of fair value for support in on-premises agreements based on substantive renewal rates the customer must pay to renew the support. The VSOE of fair value for other services is based on amounts charged when the services are sold in stand-alone sales. | |||||||||
The Company sells hardware manufactured by third parties, which does not contain the Company’s software, and certain appliances, including the Interaction Gateway and the Interaction Media Server, which combine third-party hardware and the Company’s Interaction Gateway or Interaction Media Server software. These appliances are not pre-loaded with the Company’s Customer Interaction Center (“CIC”) software and the Company does not require its customers to purchase these items directly from them. The Company’s CIC software will still function properly on hardware, gateways or media servers purchased from other vendors. Although the appliances mentioned above are a combination of hardware and software, the software does not primarily work together with the hardware to provide the hardware’s essential functionality. In addition, the Interaction Media Server software can be purchased separately and loaded onto other media servers the customer already owns or purchased from another vendor. The Company recognizes revenues related to hardware sales when the hardware is delivered and all other revenue recognition criteria are met. | |||||||||
Contracts that contain both software and hardware are reviewed to allocate the deliverables into separate units of accounting in accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 605-25, Revenue Recognition – Multiple Element Arrangements. The units of accounting fall into one of two categories: software or non-software related products. FASB ASC 605-25 is used to allocate the fair value of each. | |||||||||
Recurring Revenues | Recurring Revenues | ||||||||
The Company generates recurring revenues from its cloud offerings and annual support fees. For cloud contracts, customers pay a minimum monthly fee to use a specified number of software licenses, plus any overages over the minimum. Customers are billed the greater of their minimum monthly fee or actual usage, and revenue is recognized monthly as the service is delivered. The total contract fee also includes an implementation fee, which is recognized ratably over the term of the contract. | |||||||||
The Company recognizes annual support fees as recurring revenues ratably over the post-contract support period, which is typically 12 months, but may extend up to three years if prepaid. | |||||||||
Service Revenues | Services Revenues | ||||||||
The Company generates revenues from other services that it provides to its customers and partners including fees for professional services and educational services. Revenues from professional services, which include implementing the Company’s solutions, and educational services, which consist of training courses for customers and partners, are recognized as the related services are performed | |||||||||
Accounts Receivable and Allowance for Doubtful Accounts Receivable | Accounts Receivable and Allowance for Doubtful Accounts Receivable | ||||||||
Trade accounts receivable are recorded at the invoiced amount. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable. The Company estimates bad debt expense based on a percentage of revenue reported and a detailed analysis of receivables each period. The Company reviews the allowance for doubtful accounts each reporting period based on a detailed analysis of its accounts receivable. In the analysis, the Company primarily considers the age of the customer’s or partner’s receivable and also considers the creditworthiness of the customer or partner, the economic conditions of the customer’s or partner’s industry, and general economic conditions, among other factors. If any of these factors change, the Company may also change its original estimates, which could impact the level of its future allowance for doubtful accounts. | |||||||||
If payment is not made timely, the Company will contact the customer or partner to try to obtain the payment. If this is not successful, the Company will institute other collection practices such as generating collection letters, charging interest, involving sales personnel and ultimately terminating the customer’s or partner’s access to future upgrades, licenses or services and technical support. Once all collection efforts are exhausted, the receivable is written off against the allowance for doubtful accounts. | |||||||||
Cash and Cash Equivalents | Cash and Cash Equivalents | ||||||||
The Company considers all highly liquid investments with a maturity of three months or less from date of purchase to be cash equivalents. Cash and cash equivalents consist primarily of cash on deposit with financial institutions and high quality money market instruments. | |||||||||
Investments | Investments | ||||||||
The Company’s investments, which consist primarily of taxable corporate and government debt securities, are classified as available-for-sale. Such investments are recorded at fair value and unrealized gains and losses are excluded from earnings and recorded as a separate component of equity until realized. Premiums or discounts are amortized or accreted over the life of the related security as an adjustment to yield using the effective interest method. Realized gains and losses from the sale of available-for-sale securities are determined on a specific identification basis. A decline in the market value of securities below cost judged to be other than temporary results in a reduction in the carrying amount to fair value. The impairment is charged to earnings and a new cost basis for the security is established. Interest and dividends on all securities are included in interest income when earned. | |||||||||
Property and Equipment | Property and Equipment | ||||||||
Property and equipment are stated at cost. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized using the straight-line method over the lesser of the term of the related lease or the estimated useful life. The Company leases its office space under operating lease agreements. In accordance with FASB ASC Topic 840, Leases (“FASB ASC 840”), for operating leases with escalating rent payments, the Company records rent expense on a straight-line basis over the life of the lease. | |||||||||
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets | ||||||||
In accordance with FASB ASC Topic 360, Property, Plant and Equipment, certain of the Company’s assets, such as property and equipment and intangibles subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the asset exceeds the fair value of the asset. | |||||||||
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets | ||||||||
The Company reviews goodwill and intangible assets with indefinite lives for impairment at least annually in accordance with FASB Accounting Standards Update (“ASU”) 2011-08, Testing Goodwill for Impairment, which amends FASB ASC Topic 350, Intangibles – Goodwill and Other (“FASB ASC 350”). This guidance requires the Company to perform the goodwill impairment analysis annually or when a change in facts and circumstances indicates that the fair value of an asset may be below its carrying amount. Application of goodwill impairment testing involves judgment, including but not limited to, the identification of reporting units and estimation of the fair value of each reporting unit. A reporting unit is defined as an operating segment or one level below an operating segment. The Company tests goodwill at the operating segment level as it has determined that the characteristics of the reporting units within its operating segment are similar and allows for their aggregation in accordance with the applicable accounting guidance. Based on the review of the qualitative events and circumstances outlined in FASB ASU 2011-08, the Company determined that it was more likely than not that the fair value of its reporting unit was greater than its carrying amount, and the two-step process of the goodwill impairment test was not necessary to perform. Identifiable intangible assets such as intellectual property trademarks and patents are amortized over a 10 to 15 year period using the straight-line method. In addition, other intangible assets, such as customer relationships, core technology and non-compete agreements are amortized over a 5 to 18 year period using the straight-line method. The Company determined no indication of impairment existed as of December 31, 2014 when the annual impairment tests were performed for goodwill and intangible assets. | |||||||||
Advertising | Advertising | ||||||||
The Company expenses all advertising costs as incurred. Advertising expense for 2014, 2013 and 2012 was $6.2 million, $6.4 million and $4.4 million, respectively. | |||||||||
Research and Development | Research and Development | ||||||||
Research and development expenditures for the Company’s on-premises and CaaS solutions are generally expensed as incurred. FASB ASC Topic 985, Software, requires capitalization of certain software development costs subsequent to the establishment of technological feasibility. Based on the Company’s product development process, technological feasibility is established upon completion of a working model. Historically, costs incurred by the Company between completion of the working model and the point at which the product is ready for general release have been insignificant. | |||||||||
During 2014, the Company continued to invest in its PureCloud PlatformSM, its next generation cloud communication platform. This platform will be the Company’s first solution offered solely as a cloud service, with no on-premises option. The costs incurred for this new platform result from internal activity, as the Company does not intend to sell the PureCloud solution but will offer PureCloud as a service. As a result, the Company capitalized $16.9 million and $3.6 million of internal use software costs relating to this new platform during 2014 and 2013, respectively. Research and development expense (after capitalization) for 2014, 2013 and 2012 was $59.5 million, $50.4 million and $45.7 million, respectively. | |||||||||
Stock-Based Compensation | Stock-Based Compensation | ||||||||
Consistent with FASB ASC Topic 718, Compensation – Stock Compensation (“FASB ASC 718”), the Company continues to use the Black-Scholes option-pricing model as its method of valuation for stock option awards. The Company’s determination of fair value of stock option awards on the date of grant using the Black-Scholes option-pricing model is affected by the Company’s stock price as well as assumptions regarding a number of highly complex and subjective variables. These variables include, but are not limited to, the Company’s expected stock price volatility over the term of the awards and an expected risk-free rate of return. If factors change and the Company uses different assumptions for estimating stock-based compensation expense associated with awards granted in future periods, stock-based compensation expense may differ materially in the future from that recorded in the current period. | |||||||||
The Company records compensation expense for stock-based awards using the straight-line method, which is expensed over the vesting period of the award. Stock-based compensation expense for employee and director stock options and restricted stock units recognized under FASB ASC 718 for the years ended December 31, 2014, 2013 and 2012 was $13.3 million, $9.2 million and $6.7 million, respectively. See Note 7 for further information on the Company’s stock-based compensation. | |||||||||
Fair Value Measurements | Fair Value Measurements | ||||||||
The carrying amounts of the Company’s financial instruments, including cash and cash equivalents, accounts receivable, accounts payable, and accrued liabilities, approximate their respective fair market values due to the short maturities of these financial instruments. The fair values of short-term and long-term investments are valued in accordance with FASB ASC Topic 820, Fair Value Measurements and Disclosures (“FASB ASC 820”). | |||||||||
Income Taxes | Income Taxes | ||||||||
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. 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 that includes the enactment date. | |||||||||
FASB ASC Topic 740, Income Taxes (“FASB ASC 740”), establishes financial accounting and reporting standards for the effect of income taxes. The Company is subject to income taxes in both the United States and numerous foreign jurisdictions. Significant judgment is required in evaluating the Company’s tax positions and determining its provision for income taxes. The objectives of accounting for income taxes are to recognize the amount of taxes payable or refundable for the current year and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in an entity’s financial statements or tax returns. Variations in the actual outcome of these future tax consequences could materially impact the Company’s financial position, results of operations, or cash flows. | |||||||||
In assessing the recoverability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon generation of future taxable income prior to the period in which temporary differences such as loss carryforwards and tax credits expire. Management considers the scheduled reversal of deferred tax liabilities, if any (including the impact of available carryback and carryforward periods), projected future taxable income and tax planning strategies in making this assessment. During the fourth quarter of 2014, the Company recorded a deferred income tax expense of $33.4 million related to recording a valuation allowance to reduce a significant portion of the Company’s deferred tax assets. The Company has incurred cumulative tax losses in recent periods due to its business model shift to the cloud. Such tax losses may continue for a period of time. This deferred income tax expense reflects the Company’s assessment that it is more likely than not that the deferred tax assets will not be realizable in the foreseeable future. | |||||||||
As of December 31, 2014, the Company had $10.0 million in tax credit carryforwards recorded as deferred tax assets as well as a valuation allowance of $33.6 million. The Company will continue to evaluate the valuation of deferred tax assets in accordance with the requirements of FASB ASC 740. See Note 10 for further information on the Company’s income taxes. | |||||||||
The revenue from sales tax collected from customers is recorded on a net basis. | |||||||||
Net Income per Share | Net Income (Loss) per Share | ||||||||
Basic net income (loss) per share is calculated based on the weighted-average number of common shares outstanding in accordance with FASB ASC Topic 260, Earnings per Share. Diluted net income per share is calculated based on the weighted-average number of common shares outstanding plus the effect of dilutive potential common shares. When the Company reports a net loss, the calculation of diluted net loss per share excludes potential common shares as the effect would be anti-dilutive. Potential common shares are composed of shares of common stock issuable upon the exercise of stock options and vesting of restricted stock units (“RSUs”). The calculation of diluted net income per share excludes shares underlying stock options outstanding that would be anti-dilutive. The following table sets forth the calculation of basic and diluted net income (loss) per share (in thousands, except per share amounts): | |||||||||
Years Ended December 31, | |||||||||
2014 | 2013 | 2012 | |||||||
Net income (loss), as reported (A) | $ | -41,367 | $ | 9,515 | $ | 906 | |||
Weighted average shares of common stock outstanding (B) | 20,930 | 20,033 | 19,241 | ||||||
Dilutive effect of employee stock options and RSUs | - | 1,055 | 921 | ||||||
Common stock and common stock equivalents (C) | 20,930 | 21,088 | 20,162 | ||||||
Net income (loss) per share: | |||||||||
Basic (A/B) | $ | -1.98 | $ | 0.47 | $ | 0.05 | |||
Diluted (A/C) | -1.98 | 0.45 | 0.04 | ||||||
The Company’s calculation of diluted net income (loss) per share for 2014, 2013 and 2012 excludes RSUs and stock options to purchase approximately 207,000, 197,000 and 726,000 shares of the Company's common stock, respectively. | |||||||||
Comprehensive Income | Comprehensive Income (Loss) | ||||||||
Comprehensive income (loss) is comprised of net income (loss) and other comprehensive income (loss). The Company reports unrealized gains (losses) on marketable securities and foreign currency translation adjustments as other comprehensive income (loss). | |||||||||
Legal Proceedings | Legal Proceedings | ||||||||
Liabilities for loss contingencies arising from claims, assessments, litigation, fines, penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment and/or remediation can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. | |||||||||
Internal Use Software | Internal Use Software | ||||||||
The Company capitalizes costs related to its PureCloud Platform and certain projects described below for internal use in accordance with FASB ASC 350-40, Internal Use Software. Once a solution has reached the development stage, internal and external costs, if direct and incremental, are capitalized until the software is substantially complete and ready for its intended use. The capitalization of costs ceases upon completion of all substantial testing. Costs incurred in the preliminary stages of development, maintenance and training costs are expensed as incurred. During the years ended December 31, 2014 and 2013, the Company capitalized $16.9 million and $3.6 million, respectively, of costs related to the development of its PureCloud Platform. The Company will continue to capitalize development costs related to this project and will begin amortizing such costs once the software is ready for production beginning in the first half of 2015. | |||||||||
The Company is implementing new business systems to meet its internal business needs. The Company has no substantive plans to market such software externally. During the years ended December 31, 2014 and 2013, the Company capitalized $5.2 million and $2.5 million, respectively, of costs associated with development and implementation of these systems | |||||||||
Summary_Of_Significant_Account1
Summary Of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Summary Of Certain Accounting Policies And Recent Accounting Pronouncements [Abstract] | |||||||||
Calculation Of Basic And Diluted Net Income Per Share | |||||||||
Years Ended December 31, | |||||||||
2014 | 2013 | 2012 | |||||||
Net income (loss), as reported (A) | $ | -41,367 | $ | 9,515 | $ | 906 | |||
Weighted average shares of common stock outstanding (B) | 20,930 | 20,033 | 19,241 | ||||||
Dilutive effect of employee stock options and RSUs | - | 1,055 | 921 | ||||||
Common stock and common stock equivalents (C) | 20,930 | 21,088 | 20,162 | ||||||
Net income (loss) per share: | |||||||||
Basic (A/B) | $ | -1.98 | $ | 0.47 | $ | 0.05 | |||
Diluted (A/C) | -1.98 | 0.45 | 0.04 | ||||||
Investments_Tables
Investments (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Investments [Abstract] | |||||||||||||
Financial Assets Measured At Fair Value | |||||||||||||
Fair Value Measurements at December 31, 2014 Using | |||||||||||||
Quoted Prices in | Significant | Significant | |||||||||||
Active Markets for | Other Observable | Unobservable | |||||||||||
Identical Assets | Inputs | Inputs | |||||||||||
Description | Total | (Level 1) | (Level 2) | (Level 3) | |||||||||
Cash & cash equivalents: | |||||||||||||
Cash | $ | 34,452 | $ | 34,452 | $ | - | $ | - | |||||
Money market funds | 1,716 | 1,716 | - | - | |||||||||
Total | $ | 36,168 | $ | 36,168 | $ | - | $ | - | |||||
Short-term investments: | |||||||||||||
Corporate notes | 19,241 | - | 19,241 | - | |||||||||
Commercial paper | 800 | - | 800 | - | |||||||||
Total | $ | 20,041 | $ | - | $ | 20,041 | $ | - | |||||
Long-term investments: | |||||||||||||
U.S. government securities | 1,000 | 1,000 | - | - | |||||||||
Corporate notes | 4,495 | - | 4,495 | - | |||||||||
Total | $ | 5,495 | $ | 1,000 | $ | 4,495 | $ | - | |||||
Fair Value Measurements at December 31, 2013 Using | |||||||||||||
Quoted Prices in | Significant | Significant | |||||||||||
Active Markets for | Other Observable | Unobservable | |||||||||||
Identical Assets | Inputs | Inputs | |||||||||||
Description | Total | (Level 1) | (Level 2) | (Level 3) | |||||||||
Cash & cash equivalents: | |||||||||||||
Cash | $ | 57,715 | $ | 57,715 | $ | - | $ | - | |||||
Money market funds | 8,166 | 8,166 | - | - | |||||||||
Total | $ | 65,881 | $ | 65,881 | $ | - | $ | - | |||||
Short-term investments: | |||||||||||||
Agency bonds | $ | 1,008 | - | $ | 1,008 | - | |||||||
Corporate notes | 28,307 | $ | - | 28,307 | $ | - | |||||||
Commercial paper | 2,297 | - | 2,297 | - | |||||||||
Certificates of deposit | 550 | - | 550 | - | |||||||||
Total | $ | 32,162 | $ | - | $ | 32,162 | $ | - | |||||
Long-term investments: | |||||||||||||
Corporate notes | 9,787 | - | 9,787 | - | |||||||||
Total | $ | 9,787 | $ | - | $ | 9,787 | $ | - | |||||
Property_And_Equipment_Tables
Property And Equipment (Tables) | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Property And Equipment [Abstract] | ||||||
Summary Of Property And Equipment | ||||||
2014 | 2013 | |||||
Computer equipment | $ | 25,905 | $ | 22,617 | ||
Leasehold improvements | 21,103 | 18,338 | ||||
Furniture and fixtures | 12,719 | 11,366 | ||||
Data center equipment | 27,800 | 18,948 | ||||
Software | 2,956 | 2,769 | ||||
Office equipment | 2,198 | 1,679 | ||||
Trade show equipment and other | 929 | 566 | ||||
Construction in process | 1,627 | 3 | ||||
Total property and equipment | 95,237 | 76,286 | ||||
Less accumulated depreciation | -50,452 | -39,367 | ||||
Net property and equipment | $ | 44,785 | $ | 36,919 | ||
Capitalized_Software_Tables
Capitalized Software (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Capitalized Software [Abstract] | |||||||
Schedule of Capitalized Software | |||||||
As of December 31, | |||||||
2014 | 2013 | ||||||
Capitalized internal-use software development costs related to PureCloud Platform | $ | 20,448 | $ | 3,562 | |||
Capitalized internal-use software development costs related to internal business systems, net of accumulated amortization of $3,258 and $2,203, respectively | 6,337 | 2,174 | |||||
Acquired developed technology, net of accumulated amortization of $1,161 and $620, respectively | 6,813 | 1,588 | |||||
$ | 33,598 | $ | 7,324 | ||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Stock-Based Compensation [Abstract] | ||||||||||||||||||
Allocation of Stock-Based Compensation Expense | ||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||
Stock-based compensation expense by category: | ||||||||||||||||||
Costs of recurring revenues | $ | 1,345 | $ | 806 | $ | 523 | ||||||||||||
Costs of services revenues | 432 | 245 | 147 | |||||||||||||||
Sales and marketing | 4,077 | 3,109 | 2,250 | |||||||||||||||
Research and development | 4,027 | 2,733 | 1,886 | |||||||||||||||
General and administrative | 3,378 | 2,354 | 1,871 | |||||||||||||||
Total stock-based compensation expense | $ | 13,259 | $ | 9,247 | $ | 6,677 | ||||||||||||
Effect of stock-based compensation expense on net income (loss) per share: | ||||||||||||||||||
Basic | $ | -0.63 | $ | -0.46 | $ | -0.35 | ||||||||||||
Diluted | -0.63 | -0.44 | -0.33 | |||||||||||||||
Schedule Of Grant Date Fair Value | ||||||||||||||||||
Number of Options Granted | Number of Options Cancelled | Grant Date Fair Value | ||||||||||||||||
Year: | ||||||||||||||||||
2014 | 271 | 101 | $ | 7,068 | ||||||||||||||
2013 | 275 | 46 | 4,521 | |||||||||||||||
2012 | 416 | 21 | 4,896 | |||||||||||||||
Schedule of Valuation Assumptions | ||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||
Valuation assumptions for non-performance-based options: | 2014 | 2013 | 2012 | |||||||||||||||
Dividend yield | - | % | - | % | - | % | ||||||||||||
Expected volatility | 60.41 | % | 54.36 - 54.44 | % | 59.04 - 64.70 | % | ||||||||||||
Risk-free interest rate | 1.38 | % | 1.04 - 1.12 | % | 0.53 - 0.71 | % | ||||||||||||
Expected life of option (in years) | 4.00 | 4.25 | 4.25 | |||||||||||||||
Years Ended December 31, | ||||||||||||||||||
Valuation assumptions for performance-based options: | 2014 | 2013 | 2012 | |||||||||||||||
Dividend yield | - | % | - | % | - | % | ||||||||||||
Expected volatility | 59.76 | % | 57.56 | % | 63.23 | % | ||||||||||||
Risk-free interest rate | 1.51 | % | 0.73 | % | 0.79 | % | ||||||||||||
Expected life of option (in years) | 4.50 | 4.75 | 4.75 | |||||||||||||||
Years Ended December 31, | ||||||||||||||||||
Valuation assumptions for annual director options: | 2014 | 2013 | 2012 | |||||||||||||||
Dividend yield | - | % | - | % | - | % | ||||||||||||
Expected volatility | 61.70 | % | 49.33 | % | 57.10 | % | ||||||||||||
Risk-free interest rate | 1.17 | % | 0.54 | % | 0.49 | % | ||||||||||||
Expected life of option (in years) | 4.00 | 3.50 | 3.50 | |||||||||||||||
Summary of Stock Option Activity | ||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||
Weighted- | Weighted- | Weighted- | ||||||||||||||||
Average | Average | Average | ||||||||||||||||
Exercise | Exercise | Exercise | ||||||||||||||||
Options | Price | Options | Price | Options | Price | |||||||||||||
Balances, beginning of year | 1,852,620 | $ | 22.25 | 2,631,198 | $ | 17.21 | 2,665,654 | $ | 15.16 | |||||||||
Options granted | 225,250 | 63.15 | 251,250 | 41.91 | 401,000 | 24.87 | ||||||||||||
Options exercised | -672,321 | 12.79 | -1,007,578 | 14.00 | -429,956 | 11.69 | ||||||||||||
Options cancelled, forfeited or expired | -54,750 | 42.73 | -22,250 | 20.98 | -5,500 | 14.05 | ||||||||||||
Options outstanding at end of year | 1,350,799 | 32.95 | 1,852,620 | 22.25 | 2,631,198 | 17.21 | ||||||||||||
Option price range at end of year | $ | 6.66 - 66.39 | $ | 3.53 - 66.21 | $ | 2.89 - 37.76 | ||||||||||||
Weighted-average fair value of options granted during the year | $ | 31.38 | $ | 17.99 | $ | 12.21 | ||||||||||||
Options exercisable at end of year | 723,801 | 24.98 | 1,010,495 | 15.53 | 1,579,982 | 13.33 | ||||||||||||
Summary of Stock Options Outstanding and Exercisable | ||||||||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||||||
Weighted- | ||||||||||||||||||
Average | Weighted- | Weighted- | ||||||||||||||||
Remaining | Average | Average | ||||||||||||||||
Range of Exercise | Contractual | Exercise | Exercise | |||||||||||||||
Prices | Number | Life | Price | Number | Price | |||||||||||||
$ | 6.66 | - | $ | 18.90 | 117,225 | 0.84 | $ | 12.14 | 117,225 | $ | 12.14 | |||||||
19.66 | - | 19.66 | 235,425 | 1.19 | 19.66 | 224,800 | 19.66 | |||||||||||
19.77 | - | 22.92 | 10,000 | 1.38 | 22.48 | 5,000 | 22.09 | |||||||||||
24.50 | - | 24.50 | 242,400 | 3.21 | 24.50 | 91,150 | 24.50 | |||||||||||
25.00 | - | 30.92 | 77,750 | 3.28 | 26.96 | 53,500 | 26.42 | |||||||||||
32.33 | - | 32.33 | 194,750 | 2.23 | 32.33 | 127,000 | 32.33 | |||||||||||
32.53 | - | 37.76 | 62,250 | 2.92 | 33.36 | 39,000 | 33.04 | |||||||||||
39.97 | - | 39.97 | 153,749 | 4.31 | 39.97 | 24,376 | 39.97 | |||||||||||
48.12 | - | 66.21 | 87,000 | 4.89 | 50.30 | 41,750 | 50.49 | |||||||||||
66.39 | - | 66.39 | 170,250 | 5.18 | 66.39 | - | - | |||||||||||
Total shares/average price | 1,350,799 | 2.97 | 32.95 | 723,801 | 24.98 | |||||||||||||
Summary of RSU activity | ||||||||||||||||||
Weighted- | ||||||||||||||||||
Average Grant | ||||||||||||||||||
Awards | Date Price | |||||||||||||||||
Balances, beginning of year | 385,701 | $ | 36.72 | |||||||||||||||
RSUs granted | 359,769 | 60.15 | ||||||||||||||||
RSUs vested | -117,591 | 35.35 | ||||||||||||||||
RSUs forfeited | -35,515 | 53.08 | ||||||||||||||||
RSUs outstanding | 592,364 | 50.24 | ||||||||||||||||
Lease_Commitments_Tables
Lease Commitments (Tables) | 12 Months Ended | ||
Dec. 31, 2014 | |||
Lease Commitments [Abstract] | |||
Schedule Of Future Minimum Lease Payments | |||
2015 | $ | 13,527 | |
2016 | 14,232 | ||
2017 | 12,411 | ||
2018 | 9,792 | ||
2019 | 9,216 | ||
Thereafter | 45,650 | ||
Total minimum lease payments | $ | 104,828 | |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Income Taxes [Abstract] | |||||||||
Schedule Of United States And Foreign Components Of Income Tax Expense (Benefit) | |||||||||
Current | Deferred | Total | |||||||
2014 | |||||||||
United States Federal | $ | -3,920 | $ | 28,333 | $ | 24,413 | |||
State and local | -594 | -787 | -1,381 | ||||||
Foreign jurisdiction | 1,254 | -414 | 840 | ||||||
Total | $ | -3,260 | $ | 27,132 | $ | 23,872 | |||
2013 | |||||||||
United States Federal | $ | 3,735 | $ | -7,380 | $ | -3,645 | |||
State and local | 587 | -580 | 7 | ||||||
Foreign jurisdiction | 7,433 | -222 | 7,211 | ||||||
Total | $ | 11,755 | $ | -8,182 | $ | 3,573 | |||
2012 | |||||||||
United States Federal | 9,670 | -7,844 | 1,826 | ||||||
State and local | 1,705 | -1,060 | 645 | ||||||
Foreign jurisdiction | 1,696 | -3,407 | -1,711 | ||||||
Total | $ | 13,071 | $ | -12,311 | $ | 760 | |||
Schedule Of Deferred Tax Assets And Liabilities | |||||||||
2014 | 2013 | 2012 | |||||||
Deferred tax assets: | |||||||||
Allowance for doubtful accounts | $ | 382 | $ | 293 | $ | 455 | |||
Accrued expenses | 4,244 | 4,144 | 3,786 | ||||||
Deferred revenues | 14,125 | 13,442 | 6,785 | ||||||
Stock-based compensation expense | 7,849 | 6,037 | 5,575 | ||||||
Depreciation and amortization expense | 1,014 | 423 | 348 | ||||||
Tax net operating loss carryforwards | 906 | 109 | 3,962 | ||||||
Foreign tax credit carryforwards | 2,668 | 1,403 | 1,031 | ||||||
Research tax carryforwards | 7,425 | 3,930 | 2,190 | ||||||
Valuation allowance | -33,555 | -135 | - | ||||||
Total deferred tax assets | 5,058 | 29,646 | 24,132 | ||||||
Deferred tax liabilities: | |||||||||
Depreciation and amortization expense | -948 | -1,287 | - | ||||||
Intangibles | -6,403 | -6,957 | -7,491 | ||||||
Investments | -143 | -143 | -140 | ||||||
Total deferred tax liabilities | -7,494 | -8,387 | -7,631 | ||||||
Net deferred tax assets | $ | -2,436 | $ | 21,259 | $ | 16,501 | |||
Schedule of Effective Income Tax Rate Reconciliation | |||||||||
Years Ended December 31, | |||||||||
2014 | 2013 | 2012 | |||||||
Expected income tax expense at 35% tax rate | $ | -6,123 | $ | 4,580 | $ | 583 | |||
Permanent items | 485 | 612 | - | ||||||
State taxes, net of federal benefit | -634 | 361 | 554 | ||||||
Disqualifying dispositions of stock options | -44 | -353 | -237 | ||||||
Research tax credit | -2,487 | -2,441 | -621 | ||||||
Prior year tax credit adjustment | - | 702 | 97 | ||||||
Increase in liabilities for uncertain tax positions | 210 | -35 | 431 | ||||||
Valuation allowance | 33,420 | 135 | - | ||||||
Other | -955 | 12 | -47 | ||||||
Income tax expense | $ | 23,872 | $ | 3,573 | $ | 760 | |||
Reconciliation Of Beginning And Ending Amount Of Gross Unrecognized Tax Benefits | |||||||||
2014 | 2013 | ||||||||
Unrecognized Tax Benefits at Beginning of Year | $ | 2,087 | $ | 2,131 | |||||
Increase in balance due to current year tax position | 439 | 461 | |||||||
Decrease in balance due to resolution of prior year tax position | -229 | -505 | |||||||
Unrecognized Tax Benefits at End of Year | $ | 2,297 | $ | 2,087 | |||||
Acquisitions_Tables
Acquisitions (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Roll Forward Of Goodwill | ||||||||||||
Balance as of December 31, 2013 | $ | 37,298 | ||||||||||
OrgSpan goodwill | 8,202 | |||||||||||
Foreign currency adjustment | -1,768 | |||||||||||
Balance as of December 31, 2014 | $ | 43,732 | ||||||||||
OrgSpan, Inc. [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Fair Value Of The Intangible And Other Assets Acquired And Liabilities Assumed | ||||||||||||
May 1, | ||||||||||||
2014 | ||||||||||||
Cash and cash equivalents | $ | 61 | ||||||||||
Prepaid expenses | 54 | |||||||||||
Property and equipment, net | 144 | |||||||||||
Intangible assets, net | 5,766 | |||||||||||
Goodwill | 8,202 | |||||||||||
Total assets acquired | 14,227 | |||||||||||
Accrued accounts payable | -5 | |||||||||||
Other current liabilities | -44 | |||||||||||
Other long-term liabilities | -128 | |||||||||||
Net assets acquired | $ | 14,050 | ||||||||||
Intangible Assets Acquired And Economic Useful Life | ||||||||||||
As of December 31, 2014 | ||||||||||||
Economic | ||||||||||||
Accumulated | Useful Life | |||||||||||
Gross Amount | Amortization | Net Amount | (in years) | |||||||||
Technology | $ | 5,766 | $ | 384 | $ | 5,382 | 10 | |||||
Amtel Communications Ltd [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Fair Value Of The Intangible And Other Assets Acquired And Liabilities Assumed | ||||||||||||
April 1, | ||||||||||||
2013 | ||||||||||||
Intangible assets, net | $ | 564 | ||||||||||
Goodwill | 296 | |||||||||||
Total assets acquired | 860 | |||||||||||
Deferred services revenues | -135 | |||||||||||
Net assets acquired | $ | 725 | ||||||||||
Intangible Assets Acquired And Economic Useful Life | ||||||||||||
As of December 31, 2014 | ||||||||||||
Economic | ||||||||||||
Accumulated | Useful Life | |||||||||||
Gross Amount | Amortization | Net Amount | (in years) | |||||||||
Customer relationships | $ | 526 | $ | 77 | $ | 449 | 12 | |||||
Derivatives_Tables
Derivatives (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Derivatives [Abstract] | |||||||
Schedule Of Derivative Notional Amount And Fair Value | |||||||
USD Equivalent Notional Amount (000's) | |||||||
31-Dec-14 | 31-Dec-13 | ||||||
Euro | $ | 3,041 | $ | 12,483 | |||
Australian Dollar | 738 | 4,974 | |||||
US Dollar | 600 | 880 | |||||
Swedish Krona | 249 | - | |||||
South African Rand | - | 5,134 | |||||
Canadian Dollar | - | 2,017 | |||||
British Pound | - | 414 | |||||
New Zealand Dollar | - | 41 | |||||
Total | $ | 4,628 | $ | 25,943 | |||
Fair Value USD (1) (000's) | |||||||
31-Dec-14 | 31-Dec-13 | ||||||
Derivative Asset | $ | 17 | $ | 50 | |||
___________ | |||||||
-1 | The fair value measurement of these derivative contracts falls within Level 2 of the fair value hierarchy as defined in FASB ASC 820. See Note 3 - Investments for further information. | ||||||
The_Company_Details
The Company (Details) | 12 Months Ended |
Dec. 31, 2014 | |
country | |
The Company [Abstract] | |
Number of countries with wholly-owned subsidiaries | 14 |
Countries with regional offices | 20 |
Summary_Of_Significant_Account2
Summary Of Significant Accounting Policies (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Significant Accounting Policies [Line Items] | |||
Maturity period of liquid investments to be cash equivalents | 3 months | ||
Advertising expense | $6,200,000 | $6,400,000 | $4,400,000 |
Internal use software expenses | 16,900,000 | 3,600,000 | |
Research and development expense | 59,482,000 | 50,397,000 | 45,682,000 |
Stock-based compensation expense for employee and director stock options | 13,300,000 | 9,200,000 | 6,700,000 |
Valuation allowance | 33,420,000 | 135,000 | |
Tax credit carryforwards recorded as deferred tax assets | 10,000,000 | ||
Tax credit carryforwards recorded as valuation allowance | 33,600,000 | ||
Capitalized costs with development and implementation of business systems | 5,200,000 | 2,500,000 | |
Stock options excluded from diluted net income (loss) per share | 207,000 | 197,000 | 726,000 |
Deferred Recurring Revenues [Member] | |||
Significant Accounting Policies [Line Items] | |||
Prior period reclassification | 70,800,000 | ||
Sales and Marketing [Member] | |||
Significant Accounting Policies [Line Items] | |||
Prior period reclassification | $904,000 | ||
Minimum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Support period | 12 months | ||
Minimum [Member] | Trademarks And Patents [Member] | |||
Significant Accounting Policies [Line Items] | |||
Amortization period of intangible assets | 10 years | ||
Minimum [Member] | Customer Relationships, Core Technology And Non-Compete Agreements [Member] | |||
Significant Accounting Policies [Line Items] | |||
Amortization period of intangible assets | 5 years | ||
Maximum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Support period | 18 months | ||
Duration before support begins after contract date | 6 months | ||
Support period if contract includes prepaid support | 36 months | ||
Maximum [Member] | Trademarks And Patents [Member] | |||
Significant Accounting Policies [Line Items] | |||
Amortization period of intangible assets | 15 years | ||
Maximum [Member] | Customer Relationships, Core Technology And Non-Compete Agreements [Member] | |||
Significant Accounting Policies [Line Items] | |||
Amortization period of intangible assets | 18 years |
Summary_Of_Significant_Account3
Summary Of Significant Accounting Policies (Calculation Of Basic And Diluted Net Income Per Share) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||
Summary Of Certain Accounting Policies And Recent Accounting Pronouncements [Abstract] | |||||||||||||||
Net income (loss), as reported (A) | ($29,863) | [1] | ($2,143) | [1] | ($6,798) | [1] | ($2,564) | [1] | $3,530 | $1,627 | $2,901 | $1,457 | ($41,367) | $9,515 | $906 |
Weighted average shares of common stock outstanding (B) | 21,015 | 20,904 | 20,851 | 20,689 | 20,360 | 20,112 | 19,946 | 19,704 | 20,930 | 20,033 | 19,241 | ||||
Dilutive effect of employee stock options and RSUs | 1,055 | 921 | |||||||||||||
Common stock and common stock equivalents (C) | 21,015 | 20,904 | 20,851 | 20,689 | 20,930 | 21,088 | 20,162 | ||||||||
Basic (A/B) | ($1.42) | ($0.10) | ($0.33) | ($0.12) | $0.17 | $0.08 | $0.15 | $0.07 | ($1.98) | $0.47 | $0.05 | ||||
Diluted (A/C) | ($1.42) | ($0.10) | ($0.33) | ($0.12) | $0.17 | $0.08 | $0.14 | $0.07 | ($1.98) | $0.45 | $0.04 | ||||
[1] | During the fourth quarter of 2014, the Company recorded $33.4 million of deferred tax expense for a valuation on deferred tax assets. |
Investments_Narrative_Details
Investments (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Investments [Abstract] | |||
Purchased short-term investments | $22,400,000 | $26,400,000 | |
Short-term investments | 20,041,000 | 32,162,000 | |
Long-term investments | 5,495,000 | 9,787,000 | |
Gross realized gains and losses included in interest income, net | 15,000 | 15,000 | 15,000 |
Interest income | $1,011,000 | $833,000 | $772,000 |
Investments_Financial_Assets_M
Investments (Financial Assets Measured At Fair Value) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash & cash equivalents, Total | $36,168 | $65,881 |
Short-Term Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Total | 20,041 | 32,162 |
Long-Term Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Total | 5,495 | 9,787 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash & cash equivalents, Total | 36,168 | 65,881 |
Fair Value, Inputs, Level 1 [Member] | Long-Term Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Total | 1,000 | |
Fair Value, Inputs, Level 2 [Member] | Short-Term Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Total | 20,041 | 32,162 |
Fair Value, Inputs, Level 2 [Member] | Long-Term Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Total | 4,495 | 9,787 |
Cash [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash & cash equivalents, Total | 34,452 | 57,715 |
Cash [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash & cash equivalents, Total | 34,452 | 57,715 |
Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash & cash equivalents, Total | 1,716 | 8,166 |
Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash & cash equivalents, Total | 1,716 | 8,166 |
Corporate Notes [Member] | Short-Term Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Total | 19,241 | 28,307 |
Corporate Notes [Member] | Long-Term Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Total | 4,495 | 9,787 |
Corporate Notes [Member] | Fair Value, Inputs, Level 2 [Member] | Short-Term Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Total | 19,241 | 28,307 |
Corporate Notes [Member] | Fair Value, Inputs, Level 2 [Member] | Long-Term Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Total | 4,495 | 9,787 |
Agency Bonds [Member] | Short-Term Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Total | 1,008 | |
Agency Bonds [Member] | Fair Value, Inputs, Level 2 [Member] | Short-Term Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Total | 1,008 | |
Commercial Paper [Member] | Short-Term Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Total | 800 | 2,297 |
Commercial Paper [Member] | Fair Value, Inputs, Level 2 [Member] | Short-Term Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Total | 800 | 2,297 |
Certificates Of Deposit [Member] | Short-Term Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Total | 550 | |
Certificates Of Deposit [Member] | Fair Value, Inputs, Level 2 [Member] | Short-Term Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Total | 550 | |
US Government Securities [Member] | Long-Term Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Total | 1,000 | |
US Government Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Long-Term Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Total | $1,000 |
Accounts_Receivable_And_Concen1
Accounts Receivable And Concentration Of Credit Risk (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Concentration Risk [Line Items] | |||
Unbilled accounts receivable | 8 | 6.5 | |
Number of partners holding significant accounts receivable | 5 | ||
Revenue [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 10.00% | 10.00% | 10.00% |
Accounts Receivable [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 10.00% | 10.00% | 10.00% |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 17.00% | 26.00% |
Property_And_Equipment_Narrati
Property And Equipment (Narrative) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Property, Plant and Equipment [Line Items] | ||
Reduction in assets and accumulated depreciation | $3.40 | $2.60 |
Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment useful life | 7 years | |
Maximum [Member] | Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment useful life | 15 years | |
Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment useful life | 3 years | |
Minimum [Member] | Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment useful life | 3 years |
Property_And_Equipment_Summary
Property And Equipment (Summary Of Property And Equipment) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $95,237 | $76,286 |
Less accumulated depreciation | -50,452 | -39,367 |
Net property and equipment | 44,785 | 36,919 |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 25,905 | 22,617 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 21,103 | 18,338 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 12,719 | 11,366 |
Data Center [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 27,800 | 18,948 |
Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 2,956 | 2,769 |
Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 2,198 | 1,679 |
Trade Show Equipment And Other [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 929 | 566 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $1,627 | $3 |
Capitalized_Software_Narrative
Capitalized Software (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Internal Use Software - Pure Cloud [Member] | |||
Capitalized computer software costs | $16,900,000 | $3,600,000 | |
Internal Use Software - Internal Business Systems [Member] | |||
Software amortization expense | 1,100,000 | 1,100,000 | 572,000 |
Capitalized computer software costs | 5,200,000 | 2,500,000 | |
Acquired Development Technology [Member] | |||
Software amortization expense | 540,000 | 196,000 | 163,000 |
Capitalized computer software costs | $5,800,000 | $0 |
Capitalized_Software_Schedule_
Capitalized Software (Schedule of Capitalized Software) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Capitalized software | $33,598 | $7,324 |
Internal Use Software - Pure Cloud [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Capitalized software | 20,448 | 3,562 |
Internal Use Software - Internal Business Systems [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Capitalized software | 6,337 | 2,174 |
Capitalized software, accumulated amortization | 3,258 | 2,203 |
Acquired Development Technology [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Capitalized software | 6,813 | 1,588 |
Capitalized software, accumulated amortization | $1,161 | $620 |
StockBased_Compensation_Narrat
Stock-Based Compensation (Narrative) (Details) (USD $) | 12 Months Ended | 0 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | 22-May-13 | Dec. 31, 2011 | 31-May-05 | 31-May-00 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Total intrinsic value of options exercised | $29,500,000 | ||||||
Capitalized share based compensation Costs | 1,700,000 | ||||||
Estimated that the total stock-based compensation expense for the awards not expected to vest | 167,000 | ||||||
Awards expected to vest, fair value | 6,900,000 | ||||||
Percent of options granted attributed by performance based options | 3.00% | 7.00% | 8.00% | ||||
Term of option | 5 years | ||||||
Incentive stock option stock ownership threshold | 10.00% | ||||||
Exercise price of option over market value minimum percent | 110.00% | ||||||
Aggregate intrinsic value of options outstanding | 23,600,000 | ||||||
Aggregate intrinsic value of options currently exercisable | 16,700,000 | ||||||
Company's closing stock price per share | $47.90 | ||||||
Total unrecognized compensation cost related to non-vested stock options | 8,300,000 | ||||||
Weighted average remaining vesting period | 1 year 8 months 1 day | ||||||
Stock-based compensation expense | 13,259,000 | 9,247,000 | 6,677,000 | ||||
Scenario, Adjustment [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock-based compensation expense | -300,000 | -128,000 | -54,000 | ||||
Stock Options [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Outstanding stock options | 1,350,799 | 1,852,620 | 2,631,198 | 2,665,654 | |||
Total number of in-the-money options exercisable | 723,801 | 1,010,495 | 1,579,982 | ||||
Weighted average exercise price | $24.98 | $15.53 | $13.33 | ||||
In the Money Options [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Total number of in-the-money options exercisable | 682,051 | ||||||
Weighted average exercise price | $23.41 | ||||||
Restricted Stock Units (RSUs) [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Outstanding stock options | 592,364 | 385,701 | |||||
Weighted average remaining vesting period | 2 years 2 months 27 days | ||||||
Total unrecognized compensation cost related to non-vested RSUs | 22,900,000 | ||||||
Performance-Based Stock Options [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Expected life of option (in years) | 4 years 6 months | 4 years 9 months | 4 years 9 months | ||||
Non-Performance-Based Stock Options [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Expected life of option (in years) | 4 years | 4 years 3 months | 4 years 3 months | ||||
Director stock options [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Expected life of option (in years) | 4 years | 3 years 6 months | 3 years 6 months | ||||
2006 Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Additional shares available for issuance | 2,000,000 | ||||||
Shares available for delivery | 9,050,933 | ||||||
Outstanding stock options | 5,350,000 | ||||||
Weighted average exercise price | $31.38 | $17.99 | $12.21 | ||||
Shares of stock available for issuance for equity compensation awards | 1,897,742 | 2,338,146 | 753,883 | ||||
1999 Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Outstanding stock options | 3,380,933 | ||||||
Shares of stock available for issuance for equity compensation awards | 320,000 | ||||||
Plans Since 2005 [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Term of option | 6 years | ||||||
2000 Employee Stock Purchase Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares of stock available for issuance for equity compensation awards | 63,363 | ||||||
Common stock shares reserved for future issuance | 750,000 | 500,000 | |||||
Periodic payroll deduction percent of compensation maximum | 20.00% | ||||||
Compensation deduction maximum cap per pay period | 1,000 | ||||||
Purchase price of common stock, percent | 95.00% | ||||||
Plan maximum annual contributions per employee amount | $25,000 | ||||||
Shares purchased and issued | 25,365 | 19,002 | 25,644 | ||||
Purchase plan, average price | $52.04 | $44.02 | $26.50 |
StockBased_Compensation_Alloca
Stock-Based Compensation (Allocation of Stock-Based Compensation Expense) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $13,259,000 | $9,247,000 | $6,677,000 |
Effects of Stock-based compensation: Basic | ($0.63) | ($0.46) | ($0.35) |
Effects of Stock-based compensation: Diluted | ($0.63) | ($0.44) | ($0.33) |
Cost of Recurring Revenues [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 1,345,000 | 806,000 | 523,000 |
Cost of Services Revenues [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 432,000 | 245,000 | 147,000 |
Sales and Marketing [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 4,077,000 | 3,109,000 | 2,250,000 |
Research and Development [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 4,027,000 | 2,733,000 | 1,886,000 |
General and Administrative Expenses [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $3,378,000 | $2,354,000 | $1,871,000 |
StockBased_Compensation_Schedu
Stock-Based Compensation (Schedule Of Grant Date Fair Value) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Stock-Based Compensation [Abstract] | |||
Number of Options Granted | 271 | 275 | 416 |
Number of Options Cancelled | 101 | 46 | 21 |
Grant Date Fair Value | $7,068 | $4,521 | $4,896 |
StockBased_Compensation_Schedu1
Stock-Based Compensation (Schedule of Valuation Assumptions) (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Non-Performance-Based Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility, minimum | 54.36% | 59.04% | |
Expected volatility, maximum | 54.44% | 64.70% | |
Expected volatility | 60.41% | ||
Risk-free interest rate, minimum | 1.04% | 0.53% | |
Risk-free interest rate, maximum | 1.12% | 0.71% | |
Risk-free interest rate | 1.38% | ||
Expected life of option (in years) | 4 years | 4 years 3 months | 4 years 3 months |
Performance-Based Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 59.76% | 57.56% | 63.23% |
Risk-free interest rate | 1.51% | 0.73% | 0.79% |
Expected life of option (in years) | 4 years 6 months | 4 years 9 months | 4 years 9 months |
Director stock options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 61.70% | 49.33% | 57.10% |
Risk-free interest rate | 1.17% | 0.54% | 0.49% |
Expected life of option (in years) | 4 years | 3 years 6 months | 3 years 6 months |
StockBased_Compensation_Summar
Stock-Based Compensation (Summary of Stock Option Activity) (Details) (Stock Options [Member], USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Balances, beginning of year | 1,852,620 | 2,631,198 | 2,665,654 |
Granted | 225,250 | 251,250 | 401,000 |
Exercised | -672,321 | -1,007,578 | -429,956 |
Cancelled, forfeited or expired | -54,750 | -22,250 | -5,500 |
Options outstanding at end of year | 1,350,799 | 1,852,620 | 2,631,198 |
Range of exercise price, lower limit | $6.66 | $3.53 | $2.89 |
Range of exercise price, upper limit | $66.39 | $66.21 | $37.76 |
Weighted-average fair value of options granted | $31.38 | $17.99 | $12.21 |
Options exercisable at end of year | 723,801 | 1,010,495 | 1,579,982 |
Weighted-Average Exercise Price, Balance, beginning of year | $22.25 | $17.21 | $15.16 |
Weighted-Average Exercise Price, Granted | $63.15 | $41.91 | $24.87 |
Weighted-Average Exercise Price, Exercised | $12.79 | $14 | $11.69 |
Weighted-Average Exercise Price, Cancelled, forfeited or expired | $42.73 | $20.98 | $14.05 |
Weighted-Average Exercise Price, Options Outstanding at end of year | $32.95 | $22.25 | $17.21 |
Weighted-Average Exercise Price, Options exercisable at end of year | $24.98 | $15.53 | $13.33 |
StockBased_Compensation_Summar1
Stock-Based Compensation (Summary of Stock Options Outstanding and Exercisable) (Details) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options outstanding, number | 1,350,799 |
Options outstanding, weighted-average remaining contractual life | 2 years 11 months 19 days |
Options outstanding, weighted-average exercise price | $32.95 |
Options exercisable, number | 723,801 |
Options exercisable, weighted-average exercise price | $24.98 |
Range 1 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of exercise price, lower limit | $6.66 |
Range of exercise price, upper limit | $18.90 |
Options outstanding, number | 117,225 |
Options outstanding, weighted-average remaining contractual life | 10 months 2 days |
Options outstanding, weighted-average exercise price | $12.14 |
Options exercisable, number | 117,225 |
Options exercisable, weighted-average exercise price | $12.14 |
Range 2 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of exercise price, lower limit | $19.66 |
Range of exercise price, upper limit | $19.66 |
Options outstanding, number | 235,425 |
Options outstanding, weighted-average remaining contractual life | 1 year 2 months 9 days |
Options outstanding, weighted-average exercise price | $19.66 |
Options exercisable, number | 224,800 |
Options exercisable, weighted-average exercise price | $19.66 |
Range 3 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of exercise price, lower limit | $19.77 |
Range of exercise price, upper limit | $22.92 |
Options outstanding, number | 10,000 |
Options outstanding, weighted-average remaining contractual life | 1 year 4 months 17 days |
Options outstanding, weighted-average exercise price | $22.48 |
Options exercisable, number | 5,000 |
Options exercisable, weighted-average exercise price | $22.09 |
Range 4 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of exercise price, lower limit | $24.50 |
Range of exercise price, upper limit | $24.50 |
Options outstanding, number | 242,400 |
Options outstanding, weighted-average remaining contractual life | 3 years 2 months 16 days |
Options outstanding, weighted-average exercise price | $24.50 |
Options exercisable, number | 91,150 |
Options exercisable, weighted-average exercise price | $24.50 |
Range 5 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of exercise price, lower limit | $25 |
Range of exercise price, upper limit | $30.92 |
Options outstanding, number | 77,750 |
Options outstanding, weighted-average remaining contractual life | 3 years 3 months 11 days |
Options outstanding, weighted-average exercise price | $26.96 |
Options exercisable, number | 53,500 |
Options exercisable, weighted-average exercise price | $26.42 |
Range 6 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of exercise price, lower limit | $32.33 |
Range of exercise price, upper limit | $32.33 |
Options outstanding, number | 194,750 |
Options outstanding, weighted-average remaining contractual life | 2 years 2 months 23 days |
Options outstanding, weighted-average exercise price | $32.33 |
Options exercisable, number | 127,000 |
Options exercisable, weighted-average exercise price | $32.33 |
Range 7 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of exercise price, lower limit | $32.53 |
Range of exercise price, upper limit | $37.76 |
Options outstanding, number | 62,250 |
Options outstanding, weighted-average remaining contractual life | 2 years 11 months 1 day |
Options outstanding, weighted-average exercise price | $33.36 |
Options exercisable, number | 39,000 |
Options exercisable, weighted-average exercise price | $33.04 |
Range 8 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of exercise price, lower limit | $39.97 |
Range of exercise price, upper limit | $39.97 |
Options outstanding, number | 153,749 |
Options outstanding, weighted-average remaining contractual life | 4 years 3 months 22 days |
Options outstanding, weighted-average exercise price | $39.97 |
Options exercisable, number | 24,376 |
Options exercisable, weighted-average exercise price | $39.97 |
Range 9 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of exercise price, lower limit | $48.12 |
Range of exercise price, upper limit | $66.21 |
Options outstanding, number | 87,000 |
Options outstanding, weighted-average remaining contractual life | 4 years 10 months 21 days |
Options outstanding, weighted-average exercise price | $50.30 |
Options exercisable, number | 41,750 |
Options exercisable, weighted-average exercise price | $50.49 |
Range 10 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of exercise price, lower limit | $66.39 |
Range of exercise price, upper limit | $66.39 |
Options outstanding, number | 170,250 |
Options outstanding, weighted-average remaining contractual life | 5 years 2 months 5 days |
Options outstanding, weighted-average exercise price | $66.39 |
StockBased_Compensation_Summar2
Stock-Based Compensation (Summary of RSU Activity) (Details) (Restricted Stock Units (RSUs) [Member], USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Balances, beginning of year | 385,701 |
Granted | 359,769 |
Vested | -117,591 |
Forfeited | -35,515 |
Options outstanding at end of year | 592,364 |
Weighted-Average Exercise Price, Balance, beginning of year | $36.72 |
Weighted-Average Exercise Price, Granted | $60.15 |
Weighted-Average Exercise Price, Vested | $35.35 |
Weighted-Average Exercise Price, Forfeited | $53.08 |
Weighted-Average Exercise Price, Options Outstanding at end of year | $50.24 |
Lease_Commitments_Narrative_De
Lease Commitments (Narrative) (Details) (USD $) | 0 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | 6-May-14 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
country | ||||
sqft | ||||
item | ||||
Lease Commitments [Abstract] | ||||
Size of building | 315,000 | |||
Number of office buildings | 3 | |||
Number of other countries with office leases | 20 | |||
Duration of initial lease terms | 10 years | 5 years | ||
Rent expense, net | $12.50 | $9.90 | $9.10 |
Lease_Commitments_Schedule_Of_
Lease Commitments (Schedule Of Future Minimum Lease Payments) (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Lease Commitments [Abstract] | |
2015 | $13,527 |
2016 | 14,232 |
2017 | 12,411 |
2018 | 9,792 |
2019 | 9,216 |
Thereafter | 45,650 |
Total minimum lease payments | $104,828 |
Retirement_Savings_Plan_Detail
Retirement Savings Plan (Details) (USD $) | 1 Months Ended | 12 Months Ended | |||
In Millions, unless otherwise specified | Feb. 28, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2015 |
Maximum contribution percentage of pre-tax annual compensation per employee | 50.00% | ||||
Employer matching contribution percent | 33.00% | 33.00% | 33.00% | ||
Employee contribution percent | 9.00% | 9.00% | 9.00% | ||
Employer matched contribution to employee accounts | $1.50 | $2.70 | $2 | $0 | |
Vesting period if employed for less than 4 years | 4 years | ||||
Number of years employed before being fully vested | 4 years | ||||
Percent vested after employed for 4 years | 100.00% | ||||
Scenario, Forecast [Member] | |||||
Employer matching contribution percent | 33.00% | ||||
Employee contribution percent | 9.00% |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Taxes [Abstract] | |||
Tax benefits related to the exercise of stock options | $0 | $13,500,000 | $1,200,000 |
Increase in valuation allowance | 33,420,000 | 135,000 | |
Foreign tax credits and federal and state research tax credit carryforwards | 10,000,000 | ||
Foreign tax expense (benefit) | 500,000 | 6,800,000 | -2,900,000 |
Effective income tax rate | 2.08% | 190.00% | -376.00% |
Federal statutory tax rate | 35.00% | 35.00% | 35.00% |
Reserve for uncertain tax position | 2,300,000 | ||
Unrecognized tax benefit | 2,297,000 | 2,087,000 | 2,131,000 |
Interest expense and penalties related to unrecognized tax benefits | $27,000 |
Income_Taxes_Schedule_Of_Unite
Income Taxes (Schedule Of United States And Foreign Components Of Income Tax Expense (Benefit)) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Taxes [Abstract] | |||
Current, United States Federal | ($3,920) | $3,735 | $9,670 |
Current, State and local | -594 | 587 | 1,705 |
Current, Foreign jurisdiction | 1,254 | 7,433 | 1,696 |
Current, Total | -3,260 | 11,755 | 13,071 |
Deferred, United States Federal | 28,333 | -7,380 | -7,844 |
Deferred, State and local | -787 | -580 | -1,060 |
Deferred, Foreign jurisdiction | -414 | -222 | -3,407 |
Deferred, total | 27,132 | -8,182 | -12,311 |
Total, United States Federal | 24,413 | -3,645 | 1,826 |
Total, State and local | -1,381 | 7 | 645 |
Total, Foreign jurisdiction | 840 | 7,211 | -1,711 |
Income Tax Expense Total | $23,872 | $3,573 | $760 |
Income_Taxes_Schedule_Of_Defer
Income Taxes (Schedule Of Deferred Tax Assets And Liabilities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Income Taxes [Abstract] | |||
Allowance for doubtful accounts | $382 | $293 | $455 |
Accrued expenses | 4,244 | 4,144 | 3,786 |
Deferred revenues | 14,125 | 13,442 | 6,785 |
Stock-based compensation expense | 7,849 | 6,037 | 5,575 |
Depreciation and amortization expense | 1,014 | 423 | 348 |
Tax net operating loss carryforwards | 906 | 109 | 3,962 |
Foreign tax credit carryforwards | 2,668 | 1,403 | 1,031 |
Research tax carryforwards | 7,425 | 3,930 | 2,190 |
Valuation allowance | -33,555 | -135 | |
Total deferred tax assets | 5,058 | 29,646 | 24,132 |
Depreciation and amortization expense | -948 | -1,287 | |
Intangibles | -6,403 | -6,957 | -7,491 |
Investments | -143 | -143 | -140 |
Total deferred tax liabilities | -7,494 | -8,387 | -7,631 |
Net deferred tax assets | ($2,436) | $21,259 | $16,501 |
Income_Taxes_Schedule_Of_Effec
Income Taxes (Schedule Of Effective Income Tax Rate Reconciliation) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Taxes [Abstract] | |||
Expected income tax expense (benefit) at 35% tax rate | ($6,123) | $4,580 | $583 |
Permanent items | 485 | 612 | |
State taxes, net of federal benefit | -634 | 361 | 554 |
Disqualifying dispositions of stock options | -44 | -353 | -237 |
Research tax credit | -2,487 | -2,441 | -621 |
Prior year tax credit adjustment | 702 | 97 | |
Increase in liabilities for uncertain tax positions | 210 | -35 | 431 |
Valuation allowance | 33,420 | 135 | |
Other | -955 | 12 | -47 |
Income Tax Expense Total | $23,872 | $3,573 | $760 |
Federal statutory tax rate | 35.00% | 35.00% | 35.00% |
Income_Taxes_Reconciliation_Of
Income Taxes (Reconciliation Of Beginning And Ending Amount Of Gross Unrecognized Tax Benefits) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Income Taxes [Abstract] | ||
Unrecognized Tax Benefits at Beginning of Year | $2,087 | $2,131 |
Increase in balance due to current year tax position | 439 | 461 |
Decrease in balance due to resolution of prior year tax position | -229 | -505 |
Unrecognized Tax Benefits at End of Year | $2,297 | $2,087 |
Segment_And_Geographic_Disclos1
Segment And Geographic Disclosures (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
U.S. customers and partners percentage of total revenue | 64.00% | 63.00% | 63.00% |
Foreign customers and partners percentage of total revenue | 10.00% | 10.00% | 10.00% |
Property and equipment, net located in foreign countries | 10.00% | 11.00% | |
Maximum [Member] | |||
Net property and equipment, net located in foreign countries | 10.00% | 10.00% |
Commitments_And_Contingencies_
Commitments And Contingencies (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2014 | |
item | |
Operating Leased Assets [Line Items] | |
Number Of Office Buildings | 3 |
Software [Member] | |
Operating Leased Assets [Line Items] | |
Amortization period | 5 years |
Warranty period | 1 year |
Acquisitions_Narrative_Details
Acquisitions (Narrative) (Details) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended |
14-May-14 | Dec. 31, 2014 | Apr. 02, 2013 | Dec. 31, 2013 | |
employee | employee | |||
OrgSpan, Inc. [Member] | ||||
Business Acquisition [Line Items] | ||||
Consideration transferred | $14,100,000 | |||
Outstanding debt | 8,000,000 | |||
Interest rate | 4.25% | |||
Cash paid for acquisition | 1,400,000 | |||
Shares exchanged for acquisition | 98,999 | |||
Shares exchanged for acquisition, value | 4,700,000 | |||
Preliminary purchase price | 15,600,000 | |||
Professional fees | 612,000 | |||
Assembled workforce, number of employees | 38 | |||
Amtel Communications Ltd [Member] | ||||
Business Acquisition [Line Items] | ||||
Consideration transferred | 725,000 | |||
Professional fees | $21,000 | |||
Assembled workforce, number of employees | 5 | |||
Trademarks And Patents [Member] | Minimum [Member] | ||||
Business Acquisition [Line Items] | ||||
Amortization period of intangible assets | 10 years | |||
Trademarks And Patents [Member] | Minimum [Member] | Amtel Communications Ltd [Member] | ||||
Business Acquisition [Line Items] | ||||
Amortization period of intangible assets | 10 years | |||
Trademarks And Patents [Member] | Maximum [Member] | ||||
Business Acquisition [Line Items] | ||||
Amortization period of intangible assets | 15 years | |||
Trademarks And Patents [Member] | Maximum [Member] | Amtel Communications Ltd [Member] | ||||
Business Acquisition [Line Items] | ||||
Amortization period of intangible assets | 15 years | |||
Customer Relationships, Core Technology And Non-Compete Agreements [Member] | Minimum [Member] | ||||
Business Acquisition [Line Items] | ||||
Amortization period of intangible assets | 5 years | |||
Customer Relationships, Core Technology And Non-Compete Agreements [Member] | Minimum [Member] | Amtel Communications Ltd [Member] | ||||
Business Acquisition [Line Items] | ||||
Amortization period of intangible assets | 5 years | |||
Customer Relationships, Core Technology And Non-Compete Agreements [Member] | Maximum [Member] | ||||
Business Acquisition [Line Items] | ||||
Amortization period of intangible assets | 18 years | |||
Customer Relationships, Core Technology And Non-Compete Agreements [Member] | Maximum [Member] | Amtel Communications Ltd [Member] | ||||
Business Acquisition [Line Items] | ||||
Amortization period of intangible assets | 18 years |
Acquisitions_Fair_Value_Of_The
Acquisitions (Fair Value Of The Intangible And Other Assets Acquired And Liabilities Assumed) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | 1-May-14 | Apr. 01, 2013 |
In Thousands, unless otherwise specified | ||||
Business Acquisition [Line Items] | ||||
Goodwill | $43,732 | $37,298 | ||
OrgSpan, Inc. [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | 61 | |||
Prepaid expenses | 54 | |||
Property and equipment, net | 144 | |||
Intangible assets, net | 5,766 | |||
Goodwill | 8,202 | |||
Total assets acquired | 14,227 | |||
Accrued accounts payable | -5 | |||
Other current liabilities | -44 | |||
Other long-term liabilities | -128 | |||
Net assets acquired | 14,050 | |||
Amtel Communications Ltd [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets, net | 564 | |||
Goodwill | 296 | |||
Total assets acquired | 860 | |||
Deferred services revenues | -135 | |||
Net assets acquired | $725 |
Acquisitions_Intangible_Assets
Acquisitions (Intangible Assets Acquired And Economic Useful Life) (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
OrgSpan, Inc. [Member] | Technology [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Gross Amount | $5,766 |
Accumulated Amortization | 384 |
Net Amount | 5,382 |
Economic Useful Life (in years) | 10 years |
Amtel Communications Ltd [Member] | Customer Relationships [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Gross Amount | 526 |
Accumulated Amortization | 77 |
Net Amount | $449 |
Economic Useful Life (in years) | 12 years |
Acquisitions_Roll_Forward_Of_G
Acquisitions (Roll Forward Of Goodwill) (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Acquisitions [Abstract] | |
Balance as of December 31, 2011 | $37,298 |
OrgSpan goodwill | 8,202 |
Foreign currency adjustment | -1,768 |
Balance as of December 31, 2012 | $43,732 |
Derivatives_Narrative_Details
Derivatives (Narrative) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Derivatives [Abstract] | ||
Hedging gains (losses) | $102,000 | $932,000 |
Derivatives_Schedule_Of_Deriva
Derivatives (Schedule Of Derivative Notional Amount And Fair Value) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $4,628 | $25,943 |
Derivative Asset / (Liability) | 17 | 50 |
Euro [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 3,041 | 12,483 |
Australia Dollar [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 738 | 4,974 |
US Dollar [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 600 | 880 |
Swedish Krona [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 249 | |
South Africa Rand [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 5,134 | |
Canada Dollar [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 2,017 | |
British Pound [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 414 | |
New Zealand Dollar [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $41 |
Unaudited_Selected_Quarterly_F1
Unaudited Selected Quarterly Financial Data (Schedule Of Selected Quarterly Financial Data) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||
Unaudited Selected Quarterly Financial Data [Abstract] | |||||||||||||||
Total revenues | $92,556 | $89,462 | $79,830 | $79,448 | $90,785 | $77,969 | $76,242 | $73,238 | $341,296 | $318,234 | $237,365 | ||||
Gross profit | 56,687 | 53,987 | 46,520 | 48,040 | 57,969 | 50,003 | 48,900 | 47,308 | 205,234 | 205,084 | 159,547 | ||||
Operating income (expense) | 2,010 | -3,464 | -11,513 | -4,813 | 6,458 | 3,675 | 849 | 3,415 | -17,779 | 14,397 | 1,083 | ||||
Net income (loss) | ($29,863) | [1] | ($2,143) | [1] | ($6,798) | [1] | ($2,564) | [1] | $3,530 | $1,627 | $2,901 | $1,457 | ($41,367) | $9,515 | $906 |
Net income (loss) per share: | |||||||||||||||
Basic | ($1.42) | ($0.10) | ($0.33) | ($0.12) | $0.17 | $0.08 | $0.15 | $0.07 | ($1.98) | $0.47 | $0.05 | ||||
Diluted | ($1.42) | ($0.10) | ($0.33) | ($0.12) | $0.17 | $0.08 | $0.14 | $0.07 | ($1.98) | $0.45 | $0.04 | ||||
Shares used to compute net income (loss) per share: | |||||||||||||||
Basic | 21,015 | 20,904 | 20,851 | 20,689 | 20,360 | 20,112 | 19,946 | 19,704 | 20,930 | 20,033 | 19,241 | ||||
Diluted | 21,015 | 20,904 | 20,851 | 20,689 | 20,930 | 21,088 | 20,162 | ||||||||
[1] | During the fourth quarter of 2014, the Company recorded $33.4 million of deferred tax expense for a valuation on deferred tax assets. |
Valuation_And_Qualifying_Accou1
Valuation And Qualifying Accounts (Details) (USD $) | 12 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||
Valuation and Qualifying Accounts [Abstract] | ||||||
Balance at Beginning of Period | $1,233,000 | $1,584,000 | $1,718,000 | |||
Charged to Revenue and Expenses, net | 322,000 | 132,000 | 397,000 | |||
Reduction of Allowance | 503,000 | [1] | 483,000 | [1] | 531,000 | [1] |
Balance at End of Period | $1,052,000 | $1,233,000 | $1,584,000 | |||
[1] | Uncollectible accounts written off, net of recoveries. |