Zix (ZIXI) 10-Q 3 Aug 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Aug. 01, 2016
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2
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		53,277,565

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 20,728	$ 28,664
Receivables, net	785	498
Prepaid and other current assets	2,875	2,908
Total current assets	24,388	32,070
Property and equipment, net	4,279	4,143
Goodwill	2,161	2,161
Deferred tax assets	47,767	48,912
Total assets	78,595	87,286
Current liabilities:
Accounts payable	702	370
Accrued expenses	4,670	4,697
Deferred revenue	24,617	23,182
Total current liabilities	29,989	28,249
Long-term liabilities:
Deferred revenue	1,435	839
Deferred rent	1,427	1,426
Total long-term liabilities	2,862	2,265
Total liabilities	32,851	30,514
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; 78,484,568 issued and 53,533,760 outstanding in 2016 and 77,852,453 issued and 56,546,879 outstanding in 2015	768	767
Additional paid-in capital	373,532	372,400
Treasury stock, at cost; 24,950,808 common shares in 2016 and 21,305,574 common shares in 2015	(96,533)	(82,243)
Accumulated deficit	(232,023)	(234,152)
Total stockholders’ equity	45,744	56,772
Total liabilities and stockholders’ equity	$ 78,595	$ 87,286

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2016	Dec. 31, 2015
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	78,484,568	77,852,453
Common stock, shares outstanding	53,533,760	56,546,879
Treasury stock, shares	24,950,808	21,305,574

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Income Statement [Abstract]
Revenues	$ 14,930	$ 13,302	$ 29,258	$ 26,375
Cost of revenues	2,635	2,429	5,172	4,642
Gross margin	12,295	10,873	24,086	21,733
Operating expenses:
Research and development	2,321	2,094	4,500	4,199
Selling, general and administrative	9,028	7,046	16,172	13,961
Total operating expenses	11,349	9,140	20,672	18,160
Operating income	946	1,733	3,414	3,573
Other income, net	50	29	109	52
Income before income taxes	996	1,762	3,523	3,625
Income tax expense	(437)	(647)	(1,394)	(1,334)
Net income	$ 559	$ 1,115	$ 2,129	$ 2,291
Basic income per common share	$ 0.01	$ 0.02	$ 0.04	$ 0.04
Diluted income per common share	$ 0.01	$ 0.02	$ 0.04	$ 0.04
Basic weighted average common shares outstanding	53,766,979	57,146,014	54,884,713	56,822,953
Diluted weighted average common shares outstanding	54,270,000	58,373,407	55,425,683	57,886,307

Condensed Consolidated Stateme5

Condensed Consolidated Statement of Stockholders' Equity (Unaudited) - 6 months ended Jun. 30, 2016 - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid-In Capital [Member]	Treasury Stock [Member]	Accumulated Deficit [Member]
Beginning balances at Dec. 31, 2015	$ 56,772	$ 767	$ 372,400	$ (82,243)	$ (234,152)
Beginning balances, shares at Dec. 31, 2015	77,852,453	77,852,453
Issuance of common stock upon exercise of stock options	$ 50	$ 1	49
Issuance of common stock upon exercise of stock options, shares	19,812	19,812
Issuance of common stock upon vesting of restricted stock units, shares		131,664
Issuance of common stock upon vesting of performance stock units, shares		77,428
Issuance of restricted common stock, shares		403,211
Employee stock-based compensation costs	$ 820		1,083	(263)
Treasury repurchase program	(14,027)			(14,027)
Net income	2,129				2,129
Ending balances at Jun. 30, 2016	$ 45,744	$ 768	$ 373,532	$ (96,533)	$ (232,023)
Ending balances, shares at Jun. 30, 2016		78,484,568

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Operating activities:
Net income	$ 2,129	$ 2,291
Non-cash items in net income:
Depreciation and amortization	1,098	1,051
Employee stock-based compensation costs	1,083	833
Changes in deferred taxes	1,145	1,053
Changes in operating assets and liabilities:
Receivables	(287)	193
Prepaid and other current assets	33	11
Accounts payable	336	266
Deferred revenue	2,031	(219)
Accrued and other liabilities	(26)	86
Net cash provided by operating activities	7,542	5,565
Investing activities:
Purchases of property and equipment	(1,238)	(1,400)
Net cash used in investing activities	(1,238)	(1,400)
Financing activities:
Proceeds from exercise of stock options	50	3,642
Purchase of treasury shares	(14,290)	(1,518)
Net cash (used in) provided by financing activities	(14,240)	2,124
Increase (decrease) in cash and cash equivalents	(7,936)	6,289
Cash and cash equivalents, beginning of period	28,664	21,685
Cash and cash equivalents, end of period	$ 20,728	$ 27,974

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jun. 30, 2016
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 2015 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 six-month period ended June 30, 2016, 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	6 Months Ended
	Jun. 30, 2016
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 (“ASU”) 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. Leases In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (Topic 842), which introduces a lessee model that brings most leases on the balance sheet. The new ASU eliminates the requirement in U.S. GAAP that entities use bright-line tests in determining lease classifications and requires lessors to provide additional transparency into their exposure to the changes in value of their residual assets and how they manage that exposure. The standard is effective for us beginning 2019. We are currently evaluating the potential impact of this new guidance on our consolidated financial statements. Accounting for Share-Based Payments In March 2016, the FASB issued Accounting Standards Update No. 2016-09, Improvements to Employee Share-Based Payment Accounting (Topic 718), which simplifies several aspects of the accounting for employee share-based payment transactions including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The standard is effective for us beginning 2017. We are currently evaluating the potential impact of this new guidance on our consolidated financial statements.

Stock- Based Awards and Stock-B

Stock- Based Awards and Stock-Based Employee Compensation Expense	6 Months Ended
	Jun. 30, 2016
Disclosure Of Compensation Related Costs Sharebased 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 (i) stock options, (ii) restricted stock awards, some of which are subject to time-based vesting (“Restricted Stock”) and some of which are subject to performance-based vesting (“Performance Stock”), and (iii) restricted stock units, some of which are subject to time-based vesting (“RSUs”) and some of which are subject to performance-based vesting (“Performance RSU’s”). As of June 30, 2016, the Company had 2,013,827 stock options outstanding, 694,472 non-vested Restricted Stock awards; non-vested 141,500 Performance Stock awards; 206,336 non-vested RSUs; 110,831 non-vested Performance RSUs and 2,548,391 shares available for grant. Stock Option Activity The following is a summary of all stock option transactions during the three months ended June 30, 2016: Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Yrs) Outstanding at March 31, 2016 2,016,827 $ 3.67 Granted at market price — — Cancelled or expired (3,000 ) $ 2.50 Exercised — $ — Outstanding at June 30, 2016 2,013,827 $ 3.67 3.88 Options exercisable at June 30, 2016 1,751,372 $ 3.69 3.06 At June 30, 2016, we had 1,010,467 stock options outstanding and 748,012 stock 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 stock options was each $1.1 million. The Company did not record an excess tax benefit in the three month period ended June 30, 2016. The Company recorded a $2 thousand excess tax benefit in the six month period ended June 30, 2016, related to the exercise of 19,812 options. Restricted Stock Activity The following is a summary of Restricted Stock activity during the three months ended June 30, 2016: Restricted Shares Weighted Average Fair Value Non-vested restricted stock at March 31, 2016 577,961 $ 3.88 Granted at market price 120,000 3.77 Vested (3,489 ) 3.61 Cancelled — — Non-vested restricted stock at June 30, 2016 694,472 $ 3.86 The Company did not record an excess tax benefit in the three month period ended June 30, 2016. The Company recorded a $32 thousand excess tax benefit in the six month period ended June 30, 2016, related to 168,750 restricted stock awards that vested. Restricted Stock Unit Activity The following is a summary of all RSU activity during the three months ended June 30, 2016: Restricted Stock Units Weighted Average Fair Value Non-vested restricted stock units at March 31, 2016 206,336 $ 3.72 Granted at market price — — Vested — — Cancelled — — Non-vested restricted stock units at June 30, 2016 206,336 $ 3.72 The Company did not record an excess tax benefit in the three month period ended June 30, 2016. The Company recorded a $5 thousand excess tax benefit in the six month period ended June 30, 2016, related to 131,664 restricted stock units that vested. Performance RSU Activity The following is a summary of all Performance RSU activity during the three months ended June 30, 2016: Performance RSUs Weighted Average Fair Value Non-vested performance RSUs at March 31, 2016 110,831 $ 3.83 Granted at market price — — Vested — — Cancelled — — Non-vested performance RSUs at June 30, 2016 110,831 $ 3.83 The Company did not record an excess tax benefit in the three month period ended June 30, 2016. The Company recorded a $12 thousand excess tax benefit in the six month period ended June 30, 2016, related to 77,428 performance units that vested. Performance Stock Activity The following is a summary of all Performance Stock activity during the three months ended June 30, 2016: Performance Stock Weighted Average Fair Value Non-vested performance stock at March 31, 2016 141,500 $ 3.61 Granted at market price — — Vested — — Cancelled — — Non-vested performance stock at June 30, 2016 141,500 $ 3.61 The weighted average grant-date fair value of awards of Restricted Stock, RSUs, Performance RSUs and Performance Stock 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 six month periods ended June 30, 2016, the total stock-based employee compensation expense resulting from stock options, Restricted Stock, RSUs, Performance RSU’s and Performance Stock was recorded to the following line items of the Company’s condensed consolidated statements of income: (In thousands) Three Months Ended June 30, 2016 Six Months Ended June 30, 2016 Cost of revenues $ 56 $ 116 Research and development 75 152 Selling, general and administrative 590 815 Stock-based compensation expense $ 721 $ 1,083 Our second quarter 2016 stock-based compensation expense includes $280 thousand related to the accelerated vesting of equity awards related to our CFO departure. A deferred tax asset totaling $303 thousand and $223 thousand, resulting from stock-based compensation expense associated with awards relating to the Company’s U.S. operations, was recorded for the six month periods ended June 30, 2016 and 2015, respectively. As of June 30, 2016, there was $3.8 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 1.76 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, 2015.

Supplemental Cash Flow Informat

Supplemental Cash Flow Information	6 Months Ended
	Jun. 30, 2016
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: Six Months Ended June 30, (In thousands) 2016 2015 Cash income tax payments $ 354 $ 260

Receivables, Net

Receivables, Net	6 Months Ended
	Jun. 30, 2016
Receivables [Abstract]
Receivables, Net	5. Receivables, net (In thousands) June 30, 2016 December 31, 2015 Gross accounts receivables $ 8,433 $ 7,882 Allowance for returns and doubtful accounts (85 ) (59 ) Unpaid portion of deferred revenue (7,563 ) (7,325 ) Note receivable 458 458 Allowance for note receivable (458 ) (458 ) Receivables, net $ 785 $ 498 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 June 30, 2016.

Earnings Per Share and Potentia

Earnings Per Share and Potential Dilution	6 Months Ended
	Jun. 30, 2016
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 applicable 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 six months ended June 30, 2016 and 2015, are as follows: Three Months ended June 30, Six Months ended June 30, 2016 2015 2016 2015 Basic weighted average shares 53,766,979 57,146,014 54,884,713 56,822,953 Effect of dilutive securities: Employee and director stock options 304,993 889,639 320,346 776,782 Restricted stock 119,264 185,581 121,287 182,945 RSUs 49,076 100,810 64,664 77,945 Performance RSUs 12,786 51,363 23,204 25,682 Performance Stock 16,902 — 11,469 — Potential dilutive common shares 54,270,000 58,373,407 55,425,683 57,886,307 During the three months ended June 30, 2016, weighted average shares related to 1,122,314 stock options, 102,500 shares of Restricted Stock, and 19,750 RSUs were excluded from the calculation of diluted earnings per share because these awards were anti-dilutive. During the six months ended June 30, 2016, weighted average shares related to 1,069,054 stock options, 116,250 shares of Restricted Stock, 24,449 RSUs 1,772 Performance RSUs, and 11,144 shares of Performance Stock were excluded from the calculation of diluted earnings per share because these awards were similarly anti-dilutive.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2016
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	7. Commitments and contingencies A summary of our fixed contractual obligations and commitments at June 30, 2016, is as follows: Payments Due by Period (In thousands) Total 1 Year Years 2 & 3 Years 4 & 5 Beyond 5 Years Operating leases $ 9,770 $ 1,517 $ 2,560 $ 2,094 $ 3,599 We have not entered into any material, non-cancelable purchase commitments at June 30, 2016. 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	6 Months Ended
	Jun. 30, 2016
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	6 Months Ended
	Jun. 30, 2016
Equity [Abstract]
Common Stock Repurchase Program	9. Common Stock Repurchase Program During the three months ended June 30, 2016, the Company repurchased 2,269,588 shares of our common stock at an aggregate cost of $8.8 million under a $15.0 million share repurchase program authorized by our board of directors in January 2016. The program was completed in July 2016. During the three months ended March 31, 2016, the Company repurchased 1,303,484 shares at an aggregate cost of $5.2 million under the same program. During the three months ended June 30, 2015, the Company repurchased 278,600 shares of our common stock at an aggregate cost of $1.3 million under a $15.0 million share repurchase program authorized by our board of directors in May 2015. No shares were repurchased during the three months ended March 31, 2015.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2016
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 $46.1 million reserve. Any reduction to this $46.1 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 and second quarter 2016 actual earnings, the Company believes the deferred tax asset allowance as of December 31, 2015, will remain unchanged at December 31, 2016. For this reason, the Company has recognized its first and second quarter 2016 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)	6 Months Ended
	Jun. 30, 2016
Accounting Changes And Error Corrections [Abstract]
Revenue Recognition	Revenue Recognition In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 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.
Leases	Leases In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (Topic 842), which introduces a lessee model that brings most leases on the balance sheet. The new ASU eliminates the requirement in U.S. GAAP that entities use bright-line tests in determining lease classifications and requires lessors to provide additional transparency into their exposure to the changes in value of their residual assets and how they manage that exposure. The standard is effective for us beginning 2019. We are currently evaluating the potential impact of this new guidance on our consolidated financial statements.
Accounting for Share-Based Payments	Accounting for Share-Based Payments In March 2016, the FASB issued Accounting Standards Update No. 2016-09, Improvements to Employee Share-Based Payment Accounting (Topic 718), which simplifies several aspects of the accounting for employee share-based payment transactions including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The standard is effective for us beginning 2017. We are currently evaluating the potential impact of this new guidance 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)	6 Months Ended
	Jun. 30, 2016
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Summary of All Stock Option Transactions	The following is a summary of all stock option transactions during the three months ended June 30, 2016: Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Yrs) Outstanding at March 31, 2016 2,016,827 $ 3.67 Granted at market price — — Cancelled or expired (3,000 ) $ 2.50 Exercised — $ — Outstanding at June 30, 2016 2,013,827 $ 3.67 3.88 Options exercisable at June 30, 2016 1,751,372 $ 3.69 3.06
Summary of Restricted Stock Activity	The following is a summary of Restricted Stock activity during the three months ended June 30, 2016: Restricted Shares Weighted Average Fair Value Non-vested restricted stock at March 31, 2016 577,961 $ 3.88 Granted at market price 120,000 3.77 Vested (3,489 ) 3.61 Cancelled — — Non-vested restricted stock at June 30, 2016 694,472 $ 3.86
Summary of All Restricted Stock Unit Activity	The following is a summary of all RSU activity during the three months ended June 30, 2016: Restricted Stock Units Weighted Average Fair Value Non-vested restricted stock units at March 31, 2016 206,336 $ 3.72 Granted at market price — — Vested — — Cancelled — — Non-vested restricted stock units at June 30, 2016 206,336 $ 3.72
Summary of All Performance RSU Activity	The following is a summary of all Performance RSU activity during the three months ended June 30, 2016: Performance RSUs Weighted Average Fair Value Non-vested performance RSUs at March 31, 2016 110,831 $ 3.83 Granted at market price — — Vested — — Cancelled — — Non-vested performance RSUs at June 30, 2016 110,831 $ 3.83
Summary of All Performance Stock Activity	The following is a summary of all Performance Stock activity during the three months ended June 30, 2016: Performance Stock Weighted Average Fair Value Non-vested performance stock at March 31, 2016 141,500 $ 3.61 Granted at market price — — Vested — — Cancelled — — Non-vested performance stock at June 30, 2016 141,500 $ 3.61
Summary of Stock-Based Employee Compensation Expense	For the three and six month periods ended June 30, 2016, the total stock-based employee compensation expense resulting from stock options, Restricted Stock, RSUs, Performance RSU’s and Performance Stock was recorded to the following line items of the Company’s condensed consolidated statements of income: (In thousands) Three Months Ended June 30, 2016 Six Months Ended June 30, 2016 Cost of revenues $ 56 $ 116 Research and development 75 152 Selling, general and administrative 590 815 Stock-based compensation expense $ 721 $ 1,083

Supplemental Cash Flow Inform19

Supplemental Cash Flow Information (Tables)	6 Months Ended
	Jun. 30, 2016
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: Six Months Ended June 30, (In thousands) 2016 2015 Cash income tax payments $ 354 $ 260

Receivables, Net (Tables)

Receivables, Net (Tables)	6 Months Ended
	Jun. 30, 2016
Receivables [Abstract]
Summary of Net Receivables	(In thousands) June 30, 2016 December 31, 2015 Gross accounts receivables $ 8,433 $ 7,882 Allowance for returns and doubtful accounts (85 ) (59 ) Unpaid portion of deferred revenue (7,563 ) (7,325 ) Note receivable 458 458 Allowance for note receivable (458 ) (458 ) Receivables, net $ 785 $ 498

Earnings Per Share and Potent21

Earnings Per Share and Potential Dilution (Tables)	6 Months Ended
	Jun. 30, 2016
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 six months ended June 30, 2016 and 2015, are as follows: Three Months ended June 30, Six Months ended June 30, 2016 2015 2016 2015 Basic weighted average shares 53,766,979 57,146,014 54,884,713 56,822,953 Effect of dilutive securities: Employee and director stock options 304,993 889,639 320,346 776,782 Restricted stock 119,264 185,581 121,287 182,945 RSUs 49,076 100,810 64,664 77,945 Performance RSUs 12,786 51,363 23,204 25,682 Performance Stock 16,902 — 11,469 — Potential dilutive common shares 54,270,000 58,373,407 55,425,683 57,886,307

Commitments and Contingencies (

Commitments and Contingencies (Tables)	6 Months Ended
	Jun. 30, 2016
Commitments And Contingencies Disclosure [Abstract]
Summary of Fixed Contractual Obligations and Commitments	A summary of our fixed contractual obligations and commitments at June 30, 2016, is as follows: Payments Due by Period (In thousands) Total 1 Year Years 2 & 3 Years 4 & 5 Beyond 5 Years Operating leases $ 9,770 $ 1,517 $ 2,560 $ 2,094 $ 3,599

Stock- Based Awards and Stock23

Stock- Based Awards and Stock-Based Employee Compensation Expense - Additional Information (Detail) - USD ($)	3 Months Ended	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Jun. 30, 2015
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Options outstanding	2,013,827	2,013,827	2,016,827
Shares available for grant	2,548,391	2,548,391
Options, options exercisable	1,751,372	1,751,372
Excess tax benefit on exercise of employee stock options	$ 0	$ 2,000
Stock option exercised	0	19,812
Tax benefit from restricted stock vested	$ 0	$ 32,000
Deferred tax assets, tax deferred expense compensation and benefits employee compensation	303,000	303,000		$ 223,000
Total unrecognized stock-based compensation related to non-vested stock-based compensation awards	3,800,000	$ 3,800,000
The number of years over which expense is expected to be recognized		1 year 9 months 4 days
CFO [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense related to accelerated vesting of equity awards	$ 280,000
Restricted Stock [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Non-vested stock	694,472	694,472	577,961
Restricted stock vested	3,489	168,750
Restricted Stock Units (RSUs) [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Non-vested stock	206,336	206,336	206,336
Restricted stock vested	0	131,664
Tax benefit from restricted stock units vested	$ 0	$ 5,000
Non-vested Performance Stock Awards [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Non-vested stock	141,500	141,500	141,500
Restricted stock vested	0
Non-vested Performance RSUs [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Non-vested stock	110,831	110,831	110,831
Restricted stock vested	0	77,428
Tax benefit from restricted stock units vested	$ 0	$ 12,000
Employee and Director Stock Options [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Options outstanding	1,010,467	1,010,467
Options, options exercisable	748,012	748,012
Aggregate intrinsic value of options outstanding	$ 1,100,000	$ 1,100,000
Aggregate intrinsic value of options exercisable	$ 1,100,000	$ 1,100,000

Stock- Based Awards and Stock24

Stock- Based Awards and Stock-Based Employee Compensation Expense - Summary of All Stock Option Transactions (Detail)	3 Months Ended	6 Months Ended
	Jun. 30, 2016$ / sharesshares	Jun. 30, 2016$ / sharesshares
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Roll Forward
Options, Outstanding, Beginning Balance | shares	2,016,827
Options, Granted at market price | shares	0
Options, Cancelled or expired | shares	(3,000)
Options, Exercised | shares	0	(19,812)
Options, Outstanding Ending Balance | shares	2,013,827	2,013,827
Options, Options Exercisable | shares	1,751,372	1,751,372
Weighted Average Exercise Price, Outstanding, Beginning Balance | $ / shares	$ 3.67
Weighted Average Exercise Price, Granted at market price | $ / shares	0
Weighted Average Exercise Price, Cancelled or expired | $ / shares	2.50
Weighted Average Exercise Price, Exercised | $ / shares	0
Weighted Average Exercise Price, Outstanding, Ending Balance | $ / shares	3.67	$ 3.67
Weighted Average Exercise Price, Options Exercisable | $ / shares	$ 3.69	$ 3.69
Weighted Average Remaining Contractual Term, Outstanding	3 years 10 months 17 days
Weighted Average Remaining Contractual Term, Options exercisable	3 years 22 days

Stock- Based Awards and Stock25

Stock- Based Awards and Stock-Based Employee Compensation Expense - Summary of Restricted Stock Activity (Detail) - Restricted Stock [Member] - $ / shares	3 Months Ended	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2016
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares, Non-vested, Beginning balance	577,961
Shares, Granted at market price	120,000
Shares, Vested	(3,489)	(168,750)
Shares, Cancelled	0
Shares, Non-vested, Ending balance	694,472	694,472
Weighted Average Fair Value, Non-vested, Beginning balance	$ 3.88
Weighted Average Fair Value, Granted at market price	3.77
Weighted Average Fair Value, Vested	3.61
Weighted Average Fair Value, Cancelled	0
Weighted Average Fair Value, Non-vested, Ending balance	$ 3.86	$ 3.86

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] - $ / shares	3 Months Ended	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2016
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares, Non-vested, Beginning balance	206,336
Shares, Granted at market price	0
Shares, Vested	0	(131,664)
Shares, Cancelled	0
Shares, Non-vested, Ending balance	206,336	206,336
Weighted Average Fair Value, Non-vested, Beginning balance	$ 3.72
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	$ 3.72	$ 3.72

Stock- Based Awards and Stock27

Stock- Based Awards and Stock-Based Employee Compensation Expense - Summary of All Performance RSU Activity (Detail) - Non-vested Performance RSUs [Member] - $ / shares	3 Months Ended	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2016
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares, Non-vested, Beginning balance	110,831
Shares, Granted at market price	0
Shares, Vested	0	(77,428)
Shares, Cancelled	0
Shares, Non-vested, Ending balance	110,831	110,831
Weighted Average Fair Value, Non-vested, Beginning balance	$ 3.83
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	$ 3.83	$ 3.83

Stock- Based Awards and Stock28

Stock- Based Awards and Stock-Based Employee Compensation Expense - Summary of All Performance Stock Activity (Details) - Performance Stock [Member]	3 Months Ended
	Jun. 30, 2016$ / sharesshares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares, Non-vested, Beginning balance | shares	141,500
Shares, Granted at market price | shares	0
Shares, Vested | shares	0
Shares, Cancelled | shares	0
Shares, Non-vested, Ending balance | shares	141,500
Weighted Average Fair Value, Non-vested, Beginning balance | $ / shares	$ 3.61
Weighted Average Fair Value, Granted at market price | $ / shares	0
Weighted Average Fair Value, Vested | $ / shares	0
Weighted Average Fair Value, Cancelled | $ / shares	0
Weighted Average Fair Value, Non-vested, Ending balance | $ / shares	$ 3.61

Stock- Based Awards and Stock29

Stock- Based Awards and Stock-Based Employee Compensation Expense - Summary of Stock-Based Employee Compensation Expense (Detail) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	$ 721	$ 1,083
Cost of Revenues [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	56	116
Research and Development [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	75	152
Selling, General and Administrative [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	$ 590	$ 815

Supplemental Cash Flow Inform30

Supplemental Cash Flow Information - Supplemental Cash Flow Information Relating to Taxes and Non-Cash Activities (Detail) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Additional Cash Flow Elements And Supplemental Cash Flow Information [Abstract]
Cash income tax payments	$ 354	$ 260

Receivables, Net - Summary of N

Receivables, Net - Summary of Net Receivables (Detail) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Accounts Notes And Loans Receivable Net Current [Abstract]
Gross accounts receivables	$ 8,433	$ 7,882
Allowance for returns and doubtful accounts	(85)	(59)
Unpaid portion of deferred revenue	(7,563)	(7,325)
Note receivable	458	458
Allowance for note receivable	(458)	(458)
Receivables, net	$ 785	$ 498

Receivables, Net - Additional I

Receivables, Net - Additional Information (Detail) $ in Thousands	6 Months Ended
	Jun. 30, 2016USD ($)
Receivables [Abstract]
Percentage of doubtful debts on accounts receivable	2.50%
Note receivable on a product line	$ 540
Date of note receivable, reserved	Jun. 30, 2016

Earnings Per Share and Potent33

Earnings Per Share and Potential Dilution - Computations of Basic and Diluted Earnings Per Share (Detail) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Weighted Average Number of Shares [Line Items]
Basic weighted average shares	53,766,979	57,146,014	54,884,713	56,822,953
Potential dilutive common shares	54,270,000	58,373,407	55,425,683	57,886,307
Employee and Director Stock Options [Member]
Weighted Average Number of Shares [Line Items]
Effect of dilutive securities	304,993	889,639	320,346	776,782
Restricted Stock [Member]
Weighted Average Number of Shares [Line Items]
Effect of dilutive securities	119,264	185,581	121,287	182,945
Restricted Stock Units (RSUs) [Member]
Weighted Average Number of Shares [Line Items]
Effect of dilutive securities	49,076	100,810	64,664	77,945
Performance RSUs [Member]
Weighted Average Number of Shares [Line Items]
Effect of dilutive securities	12,786	51,363	23,204	25,682
Performance Stock [Member]
Weighted Average Number of Shares [Line Items]
Effect of dilutive securities	16,902		11,469

Earnings Per Share and Potent34

Earnings Per Share and Potential Dilution - Additional Information (Detail) - shares	3 Months Ended	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2016
Employee and Director Stock Options [Member]
Weighted Average Number of Shares [Line Items]
Antidilutive securities excluded from computation of earnings per share amount	1,122,314	1,069,054
Restricted Stock [Member]
Weighted Average Number of Shares [Line Items]
Antidilutive securities excluded from computation of earnings per share amount	102,500	116,250
Restricted Stock Units (RSUs) [Member]
Weighted Average Number of Shares [Line Items]
Antidilutive securities excluded from computation of earnings per share amount	19,750	24,449
Performance RSUs [Member]
Weighted Average Number of Shares [Line Items]
Antidilutive securities excluded from computation of earnings per share amount		1,772
Performance Stock [Member]
Weighted Average Number of Shares [Line Items]
Antidilutive securities excluded from computation of earnings per share amount		11,144

Commitments and Contingencies -

Commitments and Contingencies - Summary of Fixed Contractual Obligations and Commitments (Detail) $ in Thousands	Jun. 30, 2016USD ($)
Operating Leases Future Minimum Payments Due [Abstract]
Operating leases, Total	$ 9,770
Operating leases, 1 Year	1,517
Operating leases, 2 & 3 Years	2,560
Operating leases, 4 & 5 Years	2,094
Operating leases, Beyond 5 Years	$ 3,599

Common Stock Repurchase Progr36

Common Stock Repurchase Program - Additional Information (Detail) - USD ($)	3 Months Ended				6 Months Ended
	Jun. 30, 2016	Mar. 31, 2016	Jun. 30, 2015	Mar. 31, 2015	Jun. 30, 2016	Jan. 31, 2016	May 31, 2015
Equity, Class of Treasury Stock [Line Items]
Shares repurchased				0
Treasury repurchase program					$ 14,027,000
Share repurchase program authorized amount						$ 15,000,000	$ 15,000,000
January 2016 Stock Repurchase Program [Member]
Equity, Class of Treasury Stock [Line Items]
Shares repurchased	2,269,588	1,303,484
Treasury repurchase program	$ 8,800,000	$ 5,200,000
May 2015 Stock Repurchase Program [Member]
Equity, Class of Treasury Stock [Line Items]
Shares repurchased			278,600
Treasury repurchase program			$ 1,300,000

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) $ in Millions	Jun. 30, 2016USD ($)
Income Tax Disclosure [Abstract]
Operating loss carryforwards	$ 46.1