Zix (ZIXI) 10-Q 4 Nov 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Nov. 02, 2015
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3
Trading Symbol	ZIXI
Entity Registrant Name	ZIX CORP
Entity Central Index Key	855,612
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		55,479,489

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 24,058	$ 21,685
Receivables, net	1,243	1,452
Prepaid and other current assets	2,498	2,372
Deferred tax assets	1,311	1,763
Total current assets	29,110	27,272
Property and equipment, net	4,422	4,399
Goodwill	2,161	2,161
Deferred tax assets	48,175	49,892
Total assets	83,868	83,724
Current liabilities:
Accounts payable	159	506
Accrued expenses	3,238	2,930
Deferred revenue	24,413	21,587
Total current liabilities	27,810	25,023
Long-term liabilities:
Deferred revenue	978	898
Deferred rent	1,454	1,533
Total long-term liabilities	2,432	2,431
Total liabilities	$ 30,242	$ 27,454
Commitments and contingencies (see Note 7)
Stockholders' equity:
Preferred stock, $1 par value, 10,000,000 shares authorized; none issued and outstanding
Common stock, $0.01 par value, 175,000,000 shares authorized; 76,482,937 issued and 55,860,833 outstanding in 2015 and 75,017,775 issued and 56,980,789 outstanding in 2014	$ 755	$ 741
Additional paid-in capital	367,064	361,579
Treasury stock, at cost; 20,622,104 common shares in 2015 and 18,036,986 common shares in 2014	(79,243)	(66,882)
Accumulated deficit	(234,950)	(239,168)
Total stockholders' equity	53,626	56,270
Total liabilities and stockholders' equity	$ 83,868	$ 83,724

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 1	$ 1
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	175,000,000	175,000,000
Common stock, shares issued	76,482,937	75,017,775
Common stock, shares outstanding	55,860,833	56,980,789
Treasury stock, shares	20,622,104	18,036,986

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Income Statement [Abstract]
Revenues	$ 14,011	$ 12,705	$ 40,386	$ 37,482
Cost of revenues	2,429	2,062	7,071	6,119
Gross margin	11,582	10,643	33,315	31,363
Operating expenses:
Research and development	2,044	2,234	6,243	6,653
Selling, general and administrative	6,420	6,544	20,381	19,611
Total operating expenses	8,464	8,778	26,624	26,264
Operating income	3,118	1,865	6,691	5,099
Other income, net	110	66	162	140
Income before income taxes	3,228	1,931	6,853	5,239
Income tax expense	(1,301)	(768)	(2,635)	(2,040)
Net Income	$ 1,927	$ 1,163	$ 4,218	$ 3,199
Basic income per common share	$ 0.03	$ 0.02	$ 0.07	$ 0.05
Diluted income per common share	$ 0.03	$ 0.02	$ 0.07	$ 0.05
Basic weighted average common shares outstanding	56,517,278	57,610,386	56,719,942	58,510,426
Diluted weighted average common shares outstanding	57,590,136	58,501,937	57,786,463	59,613,658

Condensed Consolidated Stateme5

Condensed Consolidated Statement of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid-In Capital [Member]	Treasury Stock [Member]	Accumulated Deficit [Member]
Beginning balance, shares	75,017,775
Beginning balance at Dec. 31, 2014	$ 56,270	$ 741	$ 361,579	$ (66,882)	$ (239,168)
Issuance of common stock upon exercise of stock options	$ 4,328	$ 14	4,314
Issuance of common stock upon exercise of stock options, shares	1,399,412	1,399,412
Issuance of common stock upon vesting of restricted stock units		65,750
Employee stock-based compensation costs	$ 810		1,171	(361)
Treasury repurchase program	(12,000)			(12,000)
Net income	4,218				4,218
Ending balance at Sep. 30, 2015	$ 53,626	$ 755	$ 367,064	$ (79,243)	$ (234,950)
Ending balance, shares at Sep. 30, 2015		76,482,937
Beginning balance, shares	76,482,937	75,017,775

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Operating activities:
Net income	$ 4,218	$ 3,199
Non-cash items in net income:
Depreciation and amortization	1,618	1,210
Employee stock-based compensation costs	1,171	1,334
Changes in deferred taxes	2,169	1,669
Changes in operating assets and liabilities:
Receivables	209	11
Prepaid and other current assets	(126)	290
Accounts payable	(241)	(482)
Deferred revenue	2,906	2,334
Accrued and other liabilities	229	1,015
Net cash provided by operating activities	12,153	10,580
Investing activities:
Purchases of property and equipment	(1,747)	(1,797)
Net cash used in investing activities	(1,747)	(1,797)
Financing activities:
Proceeds from exercise of stock options	4,328	457
Purchase of treasury shares	(12,361)	(16,496)
Net cash used in financing activities	(8,033)	(16,039)
Increase (decrease) in cash and cash equivalents	2,373	(7,256)
Cash and cash equivalents, beginning of period	21,685	27,518
Cash and cash equivalents, end of period	$ 24,058	$ 20,262

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	1. Basis of Presentation The accompanying condensed consolidated financial statements of Zix Corporation (“ZixCorp,” the “Company,” “we,” “our,” “us”) should be read in conjunction with the audited consolidated financial statements included in the Company’s 2014 Annual Report on Form 10-K. These financial statements are unaudited, but have been prepared in the ordinary course of business for the purpose of providing information with respect to the covered interim periods. Management of the Company believes that all adjustments necessary for a fair presentation for such periods have been included and are of a normal recurring nature. The results of operations for the nine-month period ended September 30, 2015, are not necessarily indicative of the results to be expected for any future periods or for the full fiscal year.

Recent Accounting Standards and

Recent Accounting Standards and Pronouncements	9 Months Ended
	Sep. 30, 2015
Accounting Changes and Error Corrections [Abstract]
Recent Accounting Standards and Pronouncements	2. Recent Accounting Standards and Pronouncements Revenue Recognition In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09), which supersedes most current revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing U.S. GAAP. The standard is effective for us beginning 2018, and requires using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). We are currently evaluating the impact of our pending adoption of ASU 2014-09 on our consolidated financial statements and have not yet determined the method by which we will adopt the standard in 2018. Debt Issuance In April 2015, the FASB issued Accounting Standards Update No. 2015-03, Simplifying the Presentation of Debt Issuance Costs (ASU 2015-03), which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The standard is effective for us beginning in 2016, and is not expected to have a material impact on our consolidated financial statements.

Stock- Based Awards and Stock-B

Stock- Based Awards and Stock-Based Employee Compensation Expense	9 Months Ended
	Sep. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock- Based Awards and Stock-Based Employee Compensation Expense	3. Stock- Based Awards and Stock-Based Employee Compensation Expense Our stock-based awards include stock options, restricted stock awards (“Restricted Stock”), and restricted stock units (“RSUs”). During our annual meeting held June 24, 2015, our shareholders approved the Zix Corporation Amended and Restated 2012 Incentive Plan which increased the number of shares available for grant by 3,600,000. As of September 30, 2015, the Company had 3,044,068 stock options outstanding and 3,901,308 shares available for grant. Stock Option Activity There were 252,861 and 1,399,412 stock options exercised for the three and nine month periods ended September 30, 2015, respectively. There were 217,468 and 241,441 stock options exercised for the three and nine month periods ended September 30, 2014, respectively. There was no excess tax benefit recorded in the three or nine month periods ended September 30, 2015, related to the option exercises. The following is a summary of all stock option transactions during the three months ended September 30, 2015: Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Yrs) Outstanding at June 30, 2015 3,298,333 $ 3.50 Granted at market price — — Cancelled or expired (1,404 ) $ 4.87 Exercised (252,861 ) $ 2.70 Outstanding at September 30, 2015 3,044,068 $ 3.56 3.84 Options exercisable at September 30, 2015 2,863,818 $ 3.61 3.65 At September 30, 2015, we had 2,041,732 stock options outstanding and 1,861,482 options exercisable with an exercise price lower than the market price of the Company’s common stock on that date. The aggregate intrinsic value of these options was $2.6 million and $2.3 million, respectively. Restricted Stock Activity The following is a summary of all Restricted Stock activity during the three months ended September 30, 2015: Restricted Shares Weighted Average Fair Value Non-vested at June 30, 2015 432,750 $ 3.34 Granted at market price — — Vested (109,500 ) 2.84 Cancelled — — Non-vested restricted stock at September 30, 2015 323,250 $ 3.51 Restricted Stock Unit Activity The following is a summary of all RSU activity during the three months ended September 30, 2015: Restricted Stock Units Weighted Average Fair Value Non-vested at June 30, 2015 327,750 $ 3.68 Granted at market price — — Vested (28,250 ) 2.49 Cancelled — — Non-vested restricted stock units at September 30, 2015 299,500 $ 3.79 Performance Unit Activity The following is a summary of all performance unit (“PU”) activity during the three months ended September 30, 2015: Performance Units Weighted Average Fair Value Non-vested at June 30, 2015 182,500 $ 3.88 Granted at market price — — Vested — — Cancelled — — Non-vested performance units at September 30, 2015 182,500 $ 3.88 The weighted average grant-date fair value of awards of Restricted Stock, RSUs, and PUs is based on the quoted market price of the Company’s common stock on the date of grant. Stock-Based Compensation Expense For the three and nine month periods ended September 30, 2015, the total stock-based employee compensation expense resulting from stock options, Restricted Stock, RSUs, and PUs was recorded to the following line items of the Company’s condensed consolidated statements of income: (In thousands) Three Months Ended September 30, 2015 Nine Months Ended September 30, 2015 Cost of revenues $ 38 $ 136 Research and development 57 183 Selling, general and administrative 243 852 Stock-based compensation expense $ 338 $ 1,171 A deferred tax asset totaling $312 thousand and $368 thousand, resulting from stock-based compensation expense associated with awards relating to the Company’s U.S. operations, was recorded for the nine month periods ended September 30, 2015 and 2014, respectively. As of September 30, 2015, there was $2.5 million of total unrecognized stock-based compensation expense related to non-vested stock-based compensation awards granted under the incentive plans. This expense is expected to be recognized over a weighted average period of 1.34 years. For additional information regarding the Company’s Equity Awards and Stock-based Employee Compensation, see Note 3 to the consolidated financial statements contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2014.

Supplemental Cash Flow Informat

Supplemental Cash Flow Information	9 Months Ended
	Sep. 30, 2015
Supplemental Cash Flow Elements [Abstract]
Supplemental Cash Flow Information	4. Supplemental Cash Flow Information Supplemental cash flow information relating to taxes and non-cash activities: Nine Months Ended September 30, (In thousands) 2015 2014 Cash income tax payments $ 306 $ 399 Non-cash investing and financing activities: Payables related to purchases of capitalized assets $ 106 $ (628 ) Excess tax benefit on exercise of employee stock options $ — $ 70 Excess tax benefit on vesting of restricted awards $ — $ 69

Receivables, Net

Receivables, Net	9 Months Ended
	Sep. 30, 2015
Receivables [Abstract]
Receivables, Net	5. Receivables, net (In thousands) September 30, 2015 December 31, 2014 Gross accounts receivables $ 7,992 $ 8,116 Allowance for returns and doubtful accounts (139 ) (108 ) Unpaid portion of deferred revenue (6,610 ) (6,556 ) Note receivable 458 458 Allowance for note receivable (458 ) (458 ) Receivables, net $ 1,243 $ 1,452 Our gross accounts receivables for the year ended 2014 included $318 thousand associated with a tenant improvement allowance received as an incentive when we renewed the lease for our Dallas headquarters in 2013. The tenant improvement receivable was collected in full at March 31, 2015. The allowance for doubtful accounts includes all specific accounts receivable which we believe are likely not collectible based on known information. In addition, we record 2.5% of all accounts receivable greater than 90 days past due, net of those accounts specifically reserved, as a general allowance against accounts that could potentially become uncollectible. The reduction for unpaid deferred revenue represents future customer service or maintenance obligations which have been billed to customers, but remain unpaid as of the respective balance sheet dates. Deferred revenue on our consolidated balance sheets represents future customer service or maintenance obligations which have been billed and collected as of the respective balance sheet dates. The note receivable represents the remaining outstanding balance of an original note related to the sale of a product line in 2005 in the amount of $540 thousand. This was fully reserved at the time of the sale as the note’s collectability was not assured. The note receivable is fully reserved at September 30, 2015.

Earnings Per Share and Potentia

Earnings Per Share and Potential Dilution	9 Months Ended
	Sep. 30, 2015
Earnings Per Share [Abstract]
Earnings Per Share and Potential Dilution	6. Earnings Per Share and Potential Dilution Basic earnings per share are computed using the weighted average number of common shares outstanding for the period. The dilutive effect of potential common shares outstanding is included in diluted earnings per share. The computations for basic and diluted earnings per share for the three and nine months ended September 30, 2015 and 2014, are as follows: Three Months ended September 30, Nine Months ended September 30, 2015 2014 2015 2014 Basic weighted average shares 56,517,278 57,610,386 56,719,942 58,510,426 Effect of dilutive securities: Employee and director stock options 767,104 701,111 773,556 858,876 Restricted stock 150,052 146,556 171,980 188,412 RSUs 108,299 43,884 88,063 55,876 PUs 47,403 — 32,922 68 Potential dilutive common shares 57,590,136 58,501,937 57,786,463 59,613,658 During the three months ended September 30, 2015, weighted average shares related to 920,050 stock options, and 3,995 shares of Restricted Stock were excluded from the calculation of diluted earnings per share because they were anti-dilutive. During the nine months ended September 30, 2015, weighted average shares related to 1,330,021 stock options, 58,813 shares of Restricted Stock, 44,683 RSUs and 32,648 PUs were excluded from the calculation of diluted earnings per share because the awards were similarly anti-dilutive.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	7. Commitments and contingencies A summary of our fixed contractual obligations and commitments at September 30, 2015, is as follows: Payments Due by Period (In thousands) Total 1 Year Years 2 & 3 Years 4 & 5 Beyond 5 Years Operating leases $ 9,938 $ 1,413 $ 2,078 $ 2,060 $ 4,387 We have not entered into any material, non-cancelable purchase commitments at September 30, 2015. Claims and Proceedings We are from time to time involved in legal claims, litigation, and other legal proceedings. Although we may incur significant expenses in those matters, we expect no material adverse effect on our operations or financial results from current or concluded legal proceedings.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2015
Fair Value Disclosures [Abstract]
Fair Value Measurements	8. Fair Value Measurements FASB guidance regarding fair value measurement establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets for identical assets or liabilities; Level 2, defined as inputs other than quoted prices for similar assets and liabilities in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs for which little or no market data exists, therefore requiring an entity to develop its own assumptions. For certain of the Company’s financial instruments, including cash and cash equivalents, trade receivables, and accounts payable, the fair values approximate carrying values due to the short-term maturities of these instruments. The carrying values of other current assets and accrued expenses are also not recorded at fair value, but approximate fair values primarily due to their short-term nature.

Common Stock Repurchase Program

Common Stock Repurchase Program	9 Months Ended
	Sep. 30, 2015
Equity [Abstract]
Common Stock Repurchase Program	9. Common Stock Repurchase Program During the three months ended September 30, 2015, the Company repurchased 2,223,270 shares at an aggregate cost of $10.7 million under a $15 million share repurchase authorized by our board of directors in May 2015. The share repurchase program was completed in October 2015. During the three months ended June 30, 2015, the Company repurchased 278,600 shares at an aggregate cost of $1.3 million under this program. On May 11, 2015, the board of directors also approved the termination of the $10 million share repurchase program announced in January 2015. No shares were repurchased under that program. During the three months ended September 30, 2014, the Company repurchased 2,663,066 shares at an aggregate cost of $10 million, completing a $10 million share repurchase authorized by our board of directors in July 2014. During the three months ended March 31, 2014, the Company repurchased 1,407,129 shares at an aggregate cost of $6.2 million, completing a $15 million share repurchase program authorized by our board of directors in 2013.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2015
Income Tax Disclosure [Abstract]
Income Taxes	10. Income Taxes The operating losses incurred by the Company’s U.S. operations in past years and the resulting net operating losses for U.S. Federal tax purposes are subject to a $46 million reserve. Any reduction to this $46 million valuation allowance is based on an assessment of future utilization following accounting guidance, which relies largely on historical earnings. Using this methodology, and updating the future taxable earnings estimates based on first, second, and third quarter 2015 actual earnings, the Company believes the deferred tax asset allowance as of December 31, 2014, will remain unchanged at December 31, 2015. For this reason, the Company has recognized its first, second, and third quarter 2015 federal deferred tax provision in full. If in prospective periods we conclude our future U.S. federal taxable estimate established at the end of the year will exceed the prior year estimate, the Company will offset its federal deferred tax provision by reducing its valuation allowance by an equal amount, thereby eliminating from its deferred tax provision federal taxes in excess of the estimated Alternative Minimum Tax from the Company’s financial statements. The Company will continue to reevaluate the need for its valuation allowance each quarter, following the same assessment methodology described above. Adjusting our valuation allowance could have a significant impact on operating results for each period that it becomes more likely than not that an additional portion of our deferred tax assets will or will not be realized.

Recent Accounting Standards a17

Recent Accounting Standards and Pronouncements (Policies)	9 Months Ended
	Sep. 30, 2015
Accounting Changes and Error Corrections [Abstract]
Revenue Recognition	Revenue Recognition In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09), which supersedes most current revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing U.S. GAAP. The standard is effective for us beginning 2018, and requires using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). We are currently evaluating the impact of our pending adoption of ASU 2014-09 on our consolidated financial statements and have not yet determined the method by which we will adopt the standard in 2018.
Debt Issuance	Debt Issuance In April 2015, the FASB issued Accounting Standards Update No. 2015-03, Simplifying the Presentation of Debt Issuance Costs (ASU 2015-03), which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The standard is effective for us beginning in 2016, and is not expected to have a material impact on our consolidated financial statements.
Fair Value Measurements	FASB guidance regarding fair value measurement establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets for identical assets or liabilities; Level 2, defined as inputs other than quoted prices for similar assets and liabilities in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs for which little or no market data exists, therefore requiring an entity to develop its own assumptions. For certain of the Company’s financial instruments, including cash and cash equivalents, trade receivables, and accounts payable, the fair values approximate carrying values due to the short-term maturities of these instruments. The carrying values of other current assets and accrued expenses are also not recorded at fair value, but approximate fair values primarily due to their short-term nature.

Stock- Based Awards and Stock18

Stock- Based Awards and Stock-Based Employee Compensation Expense (Tables)	9 Months Ended
	Sep. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Summary of All Stock Option Transactions	The following is a summary of all stock option transactions during the three months ended September 30, 2015: Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Yrs) Outstanding at June 30, 2015 3,298,333 $ 3.50 Granted at market price — — Cancelled or expired (1,404 ) $ 4.87 Exercised (252,861 ) $ 2.70 Outstanding at September 30, 2015 3,044,068 $ 3.56 3.84 Options exercisable at September 30, 2015 2,863,818 $ 3.61 3.65
Summary of All Restricted Stock Activity	The following is a summary of all Restricted Stock activity during the three months ended September 30, 2015: Restricted Shares Weighted Average Fair Value Non-vested at June 30, 2015 432,750 $ 3.34 Granted at market price — — Vested (109,500 ) 2.84 Cancelled — — Non-vested restricted stock at September 30, 2015 323,250 $ 3.51
Summary of All Restricted Stock Unit Activity	The following is a summary of all RSU activity during the three months ended September 30, 2015: Restricted Stock Units Weighted Average Fair Value Non-vested at June 30, 2015 327,750 $ 3.68 Granted at market price — — Vested (28,250 ) 2.49 Cancelled — — Non-vested restricted stock units at September 30, 2015 299,500 $ 3.79
Summary of All Performance Unit Activity	The following is a summary of all performance unit (“PU”) activity during the three months ended September 30, 2015: Performance Units Weighted Average Fair Value Non-vested at June 30, 2015 182,500 $ 3.88 Granted at market price — — Vested — — Cancelled — — Non-vested performance units at September 30, 2015 182,500 $ 3.88
Summary of Stock-Based Employee Compensation Expense	For the three and nine month periods ended September 30, 2015, the total stock-based employee compensation expense resulting from stock options, Restricted Stock, RSUs, and PUs was recorded to the following line items of the Company’s condensed consolidated statements of income: (In thousands) Three Months Ended September 30, 2015 Nine Months Ended September 30, 2015 Cost of revenues $ 38 $ 136 Research and development 57 183 Selling, general and administrative 243 852 Stock-based compensation expense $ 338 $ 1,171

Supplemental Cash Flow Inform19

Supplemental Cash Flow Information (Tables)	9 Months Ended
	Sep. 30, 2015
Supplemental Cash Flow Elements [Abstract]
Supplemental Cash Flow Information Relating to Taxes and Non-Cash Activities	Supplemental cash flow information relating to taxes and non-cash activities: Nine Months Ended September 30, (In thousands) 2015 2014 Cash income tax payments $ 306 $ 399 Non-cash investing and financing activities: Payables related to purchases of capitalized assets $ 106 $ (628 ) Excess tax benefit on exercise of employee stock options $ — $ 70 Excess tax benefit on vesting of restricted awards $ — $ 69

Receivables, Net (Tables)

Receivables, Net (Tables)	9 Months Ended
	Sep. 30, 2015
Receivables [Abstract]
Summary of Net Receivables	(In thousands) September 30, 2015 December 31, 2014 Gross accounts receivables $ 7,992 $ 8,116 Allowance for returns and doubtful accounts (139 ) (108 ) Unpaid portion of deferred revenue (6,610 ) (6,556 ) Note receivable 458 458 Allowance for note receivable (458 ) (458 ) Receivables, net $ 1,243 $ 1,452

Earnings Per Share and Potent21

Earnings Per Share and Potential Dilution (Tables)	9 Months Ended
	Sep. 30, 2015
Earnings Per Share [Abstract]
Computations of Basic and Diluted Earnings Per Share	The computations for basic and diluted earnings per share for the three and nine months ended September 30, 2015 and 2014, are as follows: Three Months ended September 30, Nine Months ended September 30, 2015 2014 2015 2014 Basic weighted average shares 56,517,278 57,610,386 56,719,942 58,510,426 Effect of dilutive securities: Employee and director stock options 767,104 701,111 773,556 858,876 Restricted stock 150,052 146,556 171,980 188,412 RSUs 108,299 43,884 88,063 55,876 PUs 47,403 — 32,922 68 Potential dilutive common shares 57,590,136 58,501,937 57,786,463 59,613,658

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
Summary of Fixed Contractual Obligations and Commitments	A summary of our fixed contractual obligations and commitments at September 30, 2015, is as follows: Payments Due by Period (In thousands) Total 1 Year Years 2 & 3 Years 4 & 5 Beyond 5 Years Operating leases $ 9,938 $ 1,413 $ 2,078 $ 2,060 $ 4,387

Stock- Based Awards and Stock23

Stock- Based Awards and Stock-Based Employee Compensation Expense - Additional Information (Detail) - USD ($)	Jun. 24, 2015	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Jun. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options outstanding		3,044,068		3,044,068		3,298,333
Shares available for grant		3,901,308		3,901,308
Additional shares authorized for grant	3,600,000
Stock option exercised		252,861	217,468	1,399,412	241,441
Excess tax benefit on exercise of employee stock options		$ 0		$ 0	$ 70,000
Options, options exercisable		2,863,818		2,863,818
Deferred tax assets, tax deferred expense compensation and benefits employee compensation		$ 312,000	$ 368,000	$ 312,000	$ 368,000
Total unrecognized stock-based compensation expense related to non-vested stock-based compensation awards		$ 2,500,000		$ 2,500,000
The number of years over which expense is expected to be recognized				1 year 4 months 2 days
Employee and Director Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options outstanding		2,041,732		2,041,732
Options, options exercisable		1,861,482		1,861,482
Aggregate intrinsic value of options outstanding		$ 2,600,000		$ 2,600,000
Aggregate intrinsic value of options exercisable		$ 2,300,000		$ 2,300,000

Stock- Based Awards and Stock24

Stock- Based Awards and Stock-Based Employee Compensation Expense - Summary of All Stock Option Transactions (Detail) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Options, Outstanding, Beginning Balance	3,298,333
Options, Granted at market price	0
Options, Cancelled or expired	(1,404)
Options, Exercised	(252,861)	(217,468)	(1,399,412)	(241,441)
Options, Outstanding, Ending Balance	3,044,068		3,044,068
Options, Options Exercisable	2,863,818		2,863,818
Weighted Average Exercise Price, Outstanding, Beginning Balance	$ 3.50
Weighted Average Exercise Price, Granted at market price	0
Weighted Average Exercise Price, Cancelled or expired	4.87
Weighted Average Exercise Price, Exercised	2.70
Weighted Average Exercise Price, Outstanding, Ending Balance	3.56		$ 3.56
Weighted Average Exercise Price, Options exercisable	$ 3.61		$ 3.61
Weighted Average Remaining Contractual Term, Outstanding	3 years 10 months 2 days
Weighted Average Remaining Contractual Term, Options exercisable	3 years 7 months 24 days

Stock- Based Awards and Stock25

Stock- Based Awards and Stock-Based Employee Compensation Expense - Summary of All Restricted Stock Activity (Detail) - Restricted Stock [Member]	3 Months Ended
	Sep. 30, 2015$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares, Non-vested, Beginning balance | shares	432,750
Shares, Granted at market price | shares	0
Shares, Vested | shares	(109,500)
Shares, Cancelled | shares	0
Shares, Non-vested, Ending balance | shares	323,250
Weighted Average Fair Value, Non-vested, Beginning balance	$ 3.34
Weighted Average Fair Value, Granted at market price	0
Weighted Average Fair Value, Vested	2.84
Weighted Average Fair Value, Cancelled	0
Weighted Average Fair Value, Non-vested, Ending balance	$ 3.51

Stock- Based Awards and Stock26

Stock- Based Awards and Stock-Based Employee Compensation Expense - Summary of All Restricted Stock Unit Activity (Detail) - Restricted Stock Units (RSUs) [Member]	3 Months Ended
	Sep. 30, 2015$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares, Non-vested, Beginning balance | shares	327,750
Shares, Granted at market price | shares	0
Shares, Vested | shares	(28,250)
Shares, Cancelled | shares	0
Shares, Non-vested, Ending balance | shares	299,500
Weighted Average Fair Value, Non-vested, Beginning balance	$ 3.68
Weighted Average Fair Value, Granted at market price	0
Weighted Average Fair Value, Vested	2.49
Weighted Average Fair Value, Cancelled	0
Weighted Average Fair Value, Non-vested, Ending balance	$ 3.79

Stock- Based Awards and Stock27

Stock- Based Awards and Stock-Based Employee Compensation Expense - Summary of Performance Unit Activity (Detail) - Performance Units [Member]	3 Months Ended
	Sep. 30, 2015$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares, Non-vested, Beginning balance | shares	182,500
Shares, Granted at market price | shares	0
Shares, Vested | shares	0
Shares, Cancelled | shares	0
Shares, Non-vested, Ending balance | shares	182,500
Weighted Average Fair Value, Non-vested, Beginning balance	$ 3.88
Weighted Average Fair Value, Granted at market price	0
Weighted Average Fair Value, Vested	0
Weighted Average Fair Value, Cancelled	0
Weighted Average Fair Value, Non-vested, Ending balance	$ 3.88

Stock- Based Awards and Stock28

Stock- Based Awards and Stock-Based Employee Compensation Expense - Summary of Stock-Based Employee Compensation Expense (Detail) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	$ 338	$ 1,171
Cost of Revenues [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	38	136
Research and Development [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	57	183
Selling, General and Administrative [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	$ 243	$ 852

Supplemental Cash Flow Inform29

Supplemental Cash Flow Information - Supplemental Cash Flow Information Relating to Taxes and Non-Cash Activities (Detail) - USD ($)	3 Months Ended	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2015	Sep. 30, 2014
Additional Cash Flow Elements and Supplemental Cash Flow Information [Abstract]
Cash income tax payments		$ 306,000	$ 399,000
Non-cash investing and financing activities:
Payables related to purchases of capitalized assets		106,000	(628,000)
Excess tax benefit on exercise of employee stock options	$ 0	$ 0	70,000
Excess tax benefit on vesting of restricted awards			$ 69,000

Receivables, Net - Summary of N

Receivables, Net - Summary of Net Receivables (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Accounts, Notes, Loans and Financing Receivable, Net, Current [Abstract]
Gross accounts receivables	$ 7,992	$ 8,116
Allowance for returns and doubtful accounts	(139)	(108)
Unpaid portion of deferred revenue	(6,610)	(6,556)
Note receivable	458	458
Allowance for note receivable	(458)	(458)
Receivables, net	$ 1,243	$ 1,452

Receivables, Net - Additional I

Receivables, Net - Additional Information (Detail) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Percentage of doubtful debts on accounts receivable	2.50%
Gross accounts receivables	$ 7,992	$ 8,116
Note receivable on a product line	$ 540
Date of note receivable, reserved	Sep. 30, 2015
Tenant Improvement Allowance [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross accounts receivables	$ 318

Earnings Per Share and Potent32

Earnings Per Share and Potential Dilution - Computations of Basic and Diluted Earnings Per Share (Detail) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Weighted Average Number of Shares [Line Items]
Basic weighted average shares	56,517,278	57,610,386	56,719,942	58,510,426
Potential dilutive common shares	57,590,136	58,501,937	57,786,463	59,613,658
Employee and Director Stock Options [Member]
Weighted Average Number of Shares [Line Items]
Effect of dilutive securities	767,104	701,111	773,556	858,876
Restricted Stock [Member]
Weighted Average Number of Shares [Line Items]
Effect of dilutive securities	150,052	146,556	171,980	188,412
Restricted Stock Units (RSUs) [Member]
Weighted Average Number of Shares [Line Items]
Effect of dilutive securities	108,299	43,884	88,063	55,876
Performance Units [Member]
Weighted Average Number of Shares [Line Items]
Effect of dilutive securities	47,403		32,922	68

Earnings Per Share and Potent33

Earnings Per Share and Potential Dilution - Additional Information (Detail) - shares	3 Months Ended	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2015
Employee and Director Stock Options [Member]
Weighted Average Number of Shares [Line Items]
Antidilutive securities excluded from computation of earnings per share amount	920,050	1,330,021
Restricted Stock [Member]
Weighted Average Number of Shares [Line Items]
Antidilutive securities excluded from computation of earnings per share amount	3,995	58,813
Restricted Stock Units (RSUs) [Member]
Weighted Average Number of Shares [Line Items]
Antidilutive securities excluded from computation of earnings per share amount		44,683
Performance Units [Member]
Weighted Average Number of Shares [Line Items]
Antidilutive securities excluded from computation of earnings per share amount		32,648

Commitments and Contingencies -

Commitments and Contingencies - Summary of Fixed Contractual Obligations and Commitments (Detail) $ in Thousands	Sep. 30, 2015USD ($)
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
Operating leases, Total	$ 9,938
Operating leases, 1 Year	1,413
Operating leases, 2 & 3 Years	2,078
Operating leases, 4 & 5 Years	2,060
Operating leases, Beyond 5 Years	$ 4,387

Common Stock Repurchase Progr35

Common Stock Repurchase Program - Additional Information (Detail) - USD ($)	May. 11, 2015	Sep. 30, 2015	Jun. 30, 2015	Sep. 30, 2014	Mar. 31, 2014	Sep. 30, 2015	Jul. 31, 2014	Nov. 06, 2013
Equity, Class of Treasury Stock [Line Items]
Share repurchase program authorized amount							$ 10,000,000	$ 15,000,000
Shares repurchased		2,223,270	278,600	2,663,066	1,407,129
Treasury repurchase program		$ 10,700,000	$ 1,300,000	$ 10,000,000	$ 6,200,000	$ 12,000,000
Stock repurchase completion date		2015-10
Maximum [Member]
Equity, Class of Treasury Stock [Line Items]
Share repurchase program authorized amount	$ 15,000,000
January 6, 2015 Stock Repurchase Program [Member]
Equity, Class of Treasury Stock [Line Items]
Stock repurchased program terminated amount	$ 10,000,000
Shares repurchased	0

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) $ in Millions	Sep. 30, 2015USD ($)
Income Tax Disclosure [Abstract]
Operating loss carryforwards	$ 46