Zix (ZIXI) 10-Q 8 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	May 04, 2017
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
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		54,827,732

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 23,432	$ 26,457
Receivables, net	1,010	1,209
Prepaid and other current assets	2,592	2,829
Total current assets	27,034	30,495
Property and equipment, net	3,870	3,976
Goodwill	10,742	2,161
Deferred tax assets	44,919	45,726
Total assets	86,565	82,358
Current liabilities:
Accounts payable	420	355
Accrued expenses	5,143	4,365
Deferred revenue	26,793	25,773
Total current liabilities	32,356	30,493
Long-term liabilities:
Deferred revenue	1,619	1,448
Deferred rent	1,308	1,347
Total long-term liabilities	2,927	2,795
Total liabilities	35,283	33,288
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; 79,757,175 issued and 54,398,490 outstanding in 2017 and 78,913,266 issued and 53,643,139 outstanding in 2016	769	769
Additional paid-in capital	375,276	374,386
Treasury stock, at cost; 25,358,685 common shares in 2017 and 25,270,127 common shares in 2016	(98,223)	(97,770)
Accumulated deficit	(226,540)	(228,315)
Total stockholders’ equity	51,282	49,070
Total liabilities and stockholders’ equity	$ 86,565	$ 82,358

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2017	Dec. 31, 2016
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	79,757,175	78,913,266
Common stock, shares outstanding	54,398,490	53,643,139
Treasury stock, shares	25,358,685	25,270,127

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Income Statement [Abstract]
Revenues	$ 15,893	$ 14,328
Cost of revenues	2,823	2,537
Gross margin	13,070	11,791
Operating expenses:
Research and development	2,423	2,179
Selling, general and administrative	7,985	7,144
Total operating expenses	10,408	9,323
Operating income	2,662	2,468
Other income, net	79	59
Income before income taxes	2,741	2,527
Income tax expense	(966)	(957)
Net income	$ 1,775	$ 1,570
Basic income per common share	$ 0.03	$ 0.03
Diluted income per common share	$ 0.03	$ 0.03
Basic weighted average common shares outstanding	52,959,185	56,002,447
Diluted weighted average common shares outstanding	53,666,649	56,581,366

Condensed Consolidated Stateme5

Condensed Consolidated Statement of Stockholders' Equity (Unaudited) - 3 months ended Mar. 31, 2017 - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid-In Capital [Member]	Treasury Stock [Member]	Accumulated Deficit [Member]
Beginning balances at Dec. 31, 2016	$ 49,070	$ 769	$ 374,386	$ (97,770)	$ (228,315)
Beginning balances, shares at Dec. 31, 2016		78,913,266
Issuance of common stock upon exercise of stock options	$ 300		300
Issuance of common stock upon exercise of stock options, shares	88,508	88,508
Issuance of common stock upon vesting of restricted stock units, shares		83,166
Issuance of restricted common stock, shares		600,623
Issuance of restricted performance common stock, shares		71,612
Employee stock-based compensation costs	$ 137		590	(453)
Net income	1,775				1,775
Ending balances at Mar. 31, 2017	$ 51,282	$ 769	$ 375,276	$ (98,223)	$ (226,540)
Ending balances, shares at Mar. 31, 2017		79,757,175

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Operating activities:
Net income	$ 1,775	$ 1,570
Non-cash items in net income:
Depreciation and amortization	575	534
Employee stock-based compensation costs	590	362
Changes in deferred taxes	807	819
Changes in operating assets and liabilities:
Receivables	443	(642)
Prepaid and other current assets	244	394
Accounts payable	12	74
Deferred revenue	654	1,510
Accrued and other liabilities	(959)	(580)
Net cash provided by operating activities	4,141	4,041
Investing activities:
Purchases of property and equipment	(463)	(183)
Acquisition of business, net of cash acquired	(6,550)
Net cash used in investing activities	(7,013)	(183)
Financing activities:
Proceeds from exercise of stock options	300	50
Purchase of treasury shares	(453)	(5,483)
Net cash used in financing activities	(153)	(5,433)
Increase (decrease) in cash and cash equivalents	(3,025)	(1,575)
Cash and cash equivalents, beginning of period	26,457	28,664
Cash and cash equivalents, end of period	$ 23,432	$ 27,089

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2017
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Basis of Presentation	1. Basis of Presentation The accompanying condensed consolidated financial statements of Zix Corporation (“Zix” the “Company,” “we,” “our,” “us”) should be read in conjunction with the audited consolidated financial statements included in the Company’s 2016 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 three-month period ended March 31, 2017, 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	3 Months Ended
	Mar. 31, 2017
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. Generally Accepted Accounting Principles (“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 have begun an assessment of the guidance and expect our revenue to remain primarily unchanged. We are additionally analyzing the effect of the new guidance on the timing of our recognition of the incremental costs of obtaining contracts. Accordingly, we are still 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. 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 expect the valuation of right to use assets and lease liabilities to be the present value of our forecasted future lease commitments and are assessing the discount rate to be applied in these valuations. 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 became effective for us beginning 2017. We completed an evaluation of the impact of this new guidance in the first quarter 2017, which has resulted in $414 thousand in previously unrecognized excess tax benefits being recorded on a modified retrospective basis through a cumulative-effect adjustment to retained earnings. The balance was fully reserved, resulting in a net zero impact to our retained earnings.

Stock- Based Awards and Stock-B

Stock- Based Awards and Stock-Based Employee Compensation Expense	3 Months Ended
	Mar. 31, 2017
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 RSUs”). As of March 31, 2017, the Company had 1,902,521 stock options outstanding, 1,140,125 non-vested Restricted Stock awards; 193,110 non-vested Performance Stock awards; 129,420 non-vested RSUs; 60,663 non-vested Performance RSUs and 1,589,653 shares of common stock available for grant. Stock Option Activity The following is a summary of all stock option transactions during the three months ended March 31, 2017: Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Yrs) Outstanding at December 31, 2016 1,960,279 $ 3.78 Granted at market price 30,750 $ 4.96 Cancelled or expired — $ — Exercised (88,508 ) $ 3.40 Outstanding at March 31, 2017 1,902,521 $ 3.82 3.73 Options exercisable at March 31, 2017 1,634,271 $ 3.81 2.84 At March 31, 2017, we had 1,103,459 stock options outstanding and 865,959 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 were each $1.9 million and $1.7 million, respectively. The Company had no excess tax benefit in the three month period ended March 31, 2017, related to the exercise of the 88,508 stock options. The Company recorded a $2 thousand excess tax benefit in the three month period ended March 31, 2016, related to the exercise of 19,812 stock options. Restricted Stock Activity The following is a summary of Restricted Stock activity during the three months ended March 31, 2017: Restricted Shares Weighted Average Fair Value Non-vested restricted stock at December 31, 2016 689,242 $ 3.94 Granted at market price 600,623 4.97 Vested (149,740 ) 3.72 Cancelled — — Non-vested restricted stock at March 31, 2017 1,140,125 $ 4.52 The Company recorded a $71 thousand excess tax benefit in the three month period ended March 31, 2017, related to the 149,740 Restricted Stock awards that vested. The Company recorded a $32 thousand excess tax benefit in the three month period ended March 31, 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 March 31, 2017: Restricted Stock Units Weighted Average Fair Value Non-vested restricted stock units at December 31, 2016 158,086 $ 3.92 Granted at market price 54,500 4.96 Vested (83,166 ) 3.86 Cancelled — — Non-vested restricted stock units at March 31, 2017 129,420 $ 4.39 The Company recorded a $9 thousand excess tax benefit in the three month period ended March 31, 2017, related to the 83,166 RSUs that vested. The Company recorded a $5 thousand excess tax benefit in the three month period ended March 31, 2016, related to 133,664 RSUs that vested. Performance RSU Activity The following is a summary of all Performance RSU activity during the three months ended March 31, 2017: Performance RSUs Weighted Average Fair Value Non-vested performance RSUs at December 31, 2016 90,831 $ 3.81 Granted at market price 11,500 4.96 Vested — — Forfeited (41,668 ) 3.83 Non-vested performance RSUs at March 31, 2017 60,663 $ 4.02 The Company had no excess tax benefit in the three month period ended March 31, 2017. The Company recorded a $12 thousand excess tax benefit in the three month period ended March 31, 2016, related to 77,428 Performance RSUs that vested. Performance Stock Activity The following is a summary of all Performance Stock activity during the three months ended March 31, 2017: Performance Stock Weighted Average Fair Value Non-vested performance stock at December 31, 2016 121,500 $ 3.61 Granted at market price 112,112 4.96 Vested — — Forfeited (40,502 ) 3.61 Non-vested performance stock at March 31, 2017 193,110 $ 4.39 The Company had no excess tax benefit in each of the three month periods ended March 31, 2017, and 2016. 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 month period ended March 31, 2017, the total stock-based employee compensation expense resulting from stock options, Restricted Stock, RSUs, Performance RSUs and Performance Stock was recorded to the following line items of the Company’s condensed consolidated statements of income: (In thousands) Three Months Ended March 31, 2017 Cost of revenues $ 71 Research and development 80 Selling, general and administrative 439 Stock-based compensation expense $ 590 A deferred tax asset totaling $172 thousand and $90 thousand, resulting from stock-based compensation expense associated with awards relating to the Company’s U.S. operations, was recorded for the three month periods ended March 31, 2017 and 2016, respectively. As of March 31, 2017, there was $6.6 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 1.80 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, 2016.

Supplemental Cash Flow Informat

Supplemental Cash Flow Information	3 Months Ended
	Mar. 31, 2017
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: Three Months Ended March 31, (In thousands) 2017 2016 Cash income tax payments $ 40 $ 128

Receivables, Net

Receivables, Net	3 Months Ended
	Mar. 31, 2017
Receivables [Abstract]
Receivables, Net	5. Receivables, net (In thousands) March 31, 2017 December 31, 2016 Gross accounts receivables $ 7,158 $ 8,417 Allowance for returns and doubtful accounts (231 ) (91 ) Unpaid portion of deferred revenue (5,917 ) (7,117 ) Note receivable 458 458 Allowance for note receivable (458 ) (458 ) Receivables, net $ 1,010 $ 1,209 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 March 31, 2017.

Earnings Per Share and Potentia

Earnings Per Share and Potential Dilution	3 Months Ended
	Mar. 31, 2017
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 months ended March 31, 2017 and 2016, are as follows: Three Months ended March 31, 2017 2016 Basic weighted average shares 52,959,185 56,002,447 Effect of dilutive securities: Employee and director stock options 379,225 335,699 Restricted stock 227,562 123,311 RSUs 60,026 80,251 Performance RSUs 15,284 33,623 Performance Stock 25,367 6,035 Potential dilutive common shares 53,666,649 56,581,366 During the three months ended March 31, 2017, weighted average shares related to 241,058 stock options, 255,712 shares of Restricted Stock, 18,974 RSUs, 6,006 Performance RSU’s, and 58,547 shares of Performance Stock were excluded from the calculation of diluted earnings per share because these awards were anti-dilutive. During the three months ended March 31, 2016, weighted average shares related to 1,015,793 stock options, 130,000 shares of Restricted Stock, 29,149 RSUs, 3,544 Performance RSUs, and 22,289 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	3 Months Ended
	Mar. 31, 2017
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	7. Commitments and contingencies A summary of our fixed contractual obligations and commitments at March 31, 2017, is as follows: Payments Due by Period (In thousands) Total 1 Year Years 2 & 3 Years 4 & 5 Beyond 5 Years Operating leases $ 9,212 $ 1,535 $ 2,720 $ 2,162 $ 2,795 We have not entered into any material, non-cancelable purchase commitments at March 31, 2017. 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	3 Months Ended
	Mar. 31, 2017
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	3 Months Ended
	Mar. 31, 2017
Equity [Abstract]
Common Stock Repurchase Program	9. Common Stock Repurchase Program No shares were repurchased during the three months ended March 31, 2017. During the three months ended March 31, 2016, the Company repurchased 1,303,484 shares of our common stock at an aggregate cost of $5.2 million under a $15.0 million share repurchase program authorized by our board of directors in January 2016.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2017
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 $47.0 million reserve. Any reduction to this $47.0 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 quarter 2017 actual earnings, the Company believes the deferred tax asset allowance as of December 31, 2016, will remain unchanged at December 31, 2017. For this reason, the Company has recognized its first quarter 2017 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.

Acquisitions

Acquisitions	3 Months Ended
	Mar. 31, 2017
Business Combinations [Abstract]
Acquisitions	11. Acquisitions On March 15, 2017, the Company acquired all of the outstanding capital stock of Greenview Data, Inc. (“Greenview”), a provider of antivirus, anti-spam, and archiving products for a total purchase price of $8.3 million, including cash consideration of $6.6 million, subject to a customary post-closing adjustment for working capital. Our acquisition of Greenview addresses increasing buyer demand for email security bundles by adding these capabilities to our existing portfolio of encryption services. Of the cash consideration paid, $650 thousand was deposited into an escrow account for the satisfaction of certain indemnification claims of the Company, if any, during the two year period following the closing of the closing of the acquisition, after which the balance, if any, will be distributed to the selling shareholders. The Company may additionally be required to pay earnout consideration in cash of up to $1.6 million based on achievement of certain sales milestones of Greenview products by December 31, 2018. Contingent consideration is considered a Level 3 fair value measurement. The Company is in the process of assessing the fair value for this contingent consideration, which was not complete as of March 31, 2017. We accounted for the acquisition as the purchase of a business and have initially recorded the excess purchase price as goodwill. The goodwill from this transaction is not deductible for tax purposes. The results of operations and the provisional fair values of the acquired assets and liabilities assumed have been included in the accompanying condensed consolidated financial statements since our March 15, 2017, acquisition date. Revenue from Greenview was not material for the three month period ending March 31, 2017, and due to the continued integration of the combined businesses, it was impractical to determine earnings or to calculate pro forma consolidated results of operations for the three month periods ending March 31, 2017 and 2016. The following table summarizes the provisional fair value of acquired assets and liabilities: (In thousands) Provisional Fair Value Assets: Current assets $ 333 Property, and equipment, net 6 Goodwill 8,581 Total assets 8,920 Liabilities: Deferred revenue $ 537 Other current liabilities 114 Total current liabilities 651 Net assets recorded $ 8,269 The Company is in the process of determining the valuation of certain intangible assets and liabilities, which may result in further refinement of the allocation of the purchase price for Greenview.

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2017
Subsequent Events [Abstract]
Subsequent Events	12. Subsequent Events On April 24, 2017, the Company’s board of directors approved a share repurchase program that enables the Company to purchase up to $10 million of its shares of common stock. The amount and timing of specific repurchases are subject to market conditions, applicable to legal requirements and other factors. Any share purchase would be funded from existing cash resources and may be suspended or discontinued at any time. The share repurchase program will expire May 31, 2018.

Recent Accounting Standards a19

Recent Accounting Standards and Pronouncements (Policies)	3 Months Ended
	Mar. 31, 2017
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. Generally Accepted Accounting Principles (“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 have begun an assessment of the guidance and expect our revenue to remain primarily unchanged. We are additionally analyzing the effect of the new guidance on the timing of our recognition of the incremental costs of obtaining contracts. Accordingly, we are still 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.
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 expect the valuation of right to use assets and lease liabilities to be the present value of our forecasted future lease commitments and are assessing the discount rate to be applied in these valuations. 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 became effective for us beginning 2017. We completed an evaluation of the impact of this new guidance in the first quarter 2017, which has resulted in $414 thousand in previously unrecognized excess tax benefits being recorded on a modified retrospective basis through a cumulative-effect adjustment to retained earnings. The balance was fully reserved, resulting in a net zero impact to our retained earnings.
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 Stock20

Stock- Based Awards and Stock-Based Employee Compensation Expense (Tables)	3 Months Ended
	Mar. 31, 2017
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 March 31, 2017: Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Yrs) Outstanding at December 31, 2016 1,960,279 $ 3.78 Granted at market price 30,750 $ 4.96 Cancelled or expired — $ — Exercised (88,508 ) $ 3.40 Outstanding at March 31, 2017 1,902,521 $ 3.82 3.73 Options exercisable at March 31, 2017 1,634,271 $ 3.81 2.84
Summary of Restricted Stock Activity	The following is a summary of Restricted Stock activity during the three months ended March 31, 2017: Restricted Shares Weighted Average Fair Value Non-vested restricted stock at December 31, 2016 689,242 $ 3.94 Granted at market price 600,623 4.97 Vested (149,740 ) 3.72 Cancelled — — Non-vested restricted stock at March 31, 2017 1,140,125 $ 4.52
Summary of All Restricted Stock Unit Activity	The following is a summary of all RSU activity during the three months ended March 31, 2017: Restricted Stock Units Weighted Average Fair Value Non-vested restricted stock units at December 31, 2016 158,086 $ 3.92 Granted at market price 54,500 4.96 Vested (83,166 ) 3.86 Cancelled — — Non-vested restricted stock units at March 31, 2017 129,420 $ 4.39
Summary of All Performance RSU Activity	The following is a summary of all Performance RSU activity during the three months ended March 31, 2017: Performance RSUs Weighted Average Fair Value Non-vested performance RSUs at December 31, 2016 90,831 $ 3.81 Granted at market price 11,500 4.96 Vested — — Forfeited (41,668 ) 3.83 Non-vested performance RSUs at March 31, 2017 60,663 $ 4.02
Summary of All Performance Stock Activity	The following is a summary of all Performance Stock activity during the three months ended March 31, 2017: Performance Stock Weighted Average Fair Value Non-vested performance stock at December 31, 2016 121,500 $ 3.61 Granted at market price 112,112 4.96 Vested — — Forfeited (40,502 ) 3.61 Non-vested performance stock at March 31, 2017 193,110 $ 4.39
Summary of Total Stock-based Employee Compensation Expense Resulting from Stock Options, Restricted Stock, RSUs, Performance RSUs, and Performance Stock	For the three month period ended March 31, 2017, the total stock-based employee compensation expense resulting from stock options, Restricted Stock, RSUs, Performance RSUs and Performance Stock was recorded to the following line items of the Company’s condensed consolidated statements of income: (In thousands) Three Months Ended March 31, 2017 Cost of revenues $ 71 Research and development 80 Selling, general and administrative 439 Stock-based compensation expense $ 590

Supplemental Cash Flow Inform21

Supplemental Cash Flow Information (Tables)	3 Months Ended
	Mar. 31, 2017
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: Three Months Ended March 31, (In thousands) 2017 2016 Cash income tax payments $ 40 $ 128

Receivables, Net (Tables)

Receivables, Net (Tables)	3 Months Ended
	Mar. 31, 2017
Receivables [Abstract]
Summary of Net Receivables	(In thousands) March 31, 2017 December 31, 2016 Gross accounts receivables $ 7,158 $ 8,417 Allowance for returns and doubtful accounts (231 ) (91 ) Unpaid portion of deferred revenue (5,917 ) (7,117 ) Note receivable 458 458 Allowance for note receivable (458 ) (458 ) Receivables, net $ 1,010 $ 1,209

Earnings Per Share and Potent23

Earnings Per Share and Potential Dilution (Tables)	3 Months Ended
	Mar. 31, 2017
Earnings Per Share [Abstract]
Computations of Basic and Diluted Earnings Per Share	The computations for basic and diluted earnings per share for the three months ended March 31, 2017 and 2016, are as follows: Three Months ended March 31, 2017 2016 Basic weighted average shares 52,959,185 56,002,447 Effect of dilutive securities: Employee and director stock options 379,225 335,699 Restricted stock 227,562 123,311 RSUs 60,026 80,251 Performance RSUs 15,284 33,623 Performance Stock 25,367 6,035 Potential dilutive common shares 53,666,649 56,581,366

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	Mar. 31, 2017
Commitments And Contingencies Disclosure [Abstract]
Summary of Fixed Contractual Obligations and Commitments	A summary of our fixed contractual obligations and commitments at March 31, 2017, is as follows: Payments Due by Period (In thousands) Total 1 Year Years 2 & 3 Years 4 & 5 Beyond 5 Years Operating leases $ 9,212 $ 1,535 $ 2,720 $ 2,162 $ 2,795

Acquisitions (Tables)

Acquisitions (Tables)	3 Months Ended
	Mar. 31, 2017
Business Combinations [Abstract]
Summary of Provisional Fair Value of Acquired Assets and Liabilities	The following table summarizes the provisional fair value of acquired assets and liabilities: (In thousands) Provisional Fair Value Assets: Current assets $ 333 Property, and equipment, net 6 Goodwill 8,581 Total assets 8,920 Liabilities: Deferred revenue $ 537 Other current liabilities 114 Total current liabilities 651 Net assets recorded $ 8,269

Recent Accounting Standards a26

Recent Accounting Standards and Pronouncements - Additional Information (Detail) - Accounting Standards Update No. 2016-09 [Member]	Mar. 31, 2017USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Excess tax benefits were previously unrecognized, to record as cumulative-effect adjustment to retained earnings	$ 0
Previously unrecognized excess tax benefits offset by valuation allowance	$ 414,000

Stock- Based Awards and Stock27

Stock- Based Awards and Stock-Based Employee Compensation Expense - Additional Information (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Options outstanding	1,902,521		1,960,279
Shares of common stock available for grant	1,589,653
Options, options exercisable	1,634,271
Excess tax benefit on exercise of employee stock options	$ 0	$ 2,000
Stock option exercised	88,508	19,812
Tax benefit from restricted stock vested	$ 71,000	$ 32,000
Deferred tax assets, tax deferred expense compensation and benefits employee compensation	172,000	$ 90,000
Total unrecognized stock-based compensation related to non-vested stock-based compensation awards	$ 6,600,000
The number of years over which expense is expected to be recognized	1 year 9 months 18 days
Restricted Stock [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Non-vested stock	1,140,125		689,242
Restricted stock vested	149,740	168,750
Restricted Stock Units (RSUs) [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Non-vested stock	129,420		158,086
Restricted stock vested	83,166	133,664
Tax benefit from restricted stock units vested	$ 9,000	$ 5,000
Non-vested Performance Stock Awards [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Non-vested stock	193,110		121,500
Restricted stock vested	0
Tax benefit from restricted stock units vested	$ 0	$ 0
Non-vested Performance RSUs [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Non-vested stock	60,663		90,831
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	1,103,459
Options, options exercisable	865,959
Aggregate intrinsic value of options outstanding	$ 1,900,000
Aggregate intrinsic value of options exercisable	$ 1,700,000

Stock- Based Awards and Stock28

Stock- Based Awards and Stock-Based Employee Compensation Expense - Summary of All Stock Option Transactions (Detail) - $ / shares	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Roll Forward
Options, Outstanding, Beginning Balance	1,960,279
Options, Granted at market price	30,750
Options, Cancelled or expired	0
Options, Exercised	(88,508)	(19,812)
Options, Outstanding Ending Balance	1,902,521
Options, Options Exercisable	1,634,271
Weighted Average Exercise Price, Outstanding, Beginning Balance	$ 3.78
Weighted Average Exercise Price, Granted at market price	4.96
Weighted Average Exercise Price, Cancelled or expired	0
Weighted Average Exercise Price, Exercised	3.40
Weighted Average Exercise Price, Outstanding, Ending Balance	3.82
Weighted Average Exercise Price, Options Exercisable	$ 3.81
Weighted Average Remaining Contractual Term, Outstanding	3 years 8 months 23 days
Weighted Average Remaining Contractual Term, Options exercisable	2 years 10 months 2 days

Stock- Based Awards and Stock29

Stock- Based Awards and Stock-Based Employee Compensation Expense - Summary of Restricted Stock Activity (Detail) - Restricted Stock [Member] - $ / shares	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares, Non-vested, Beginning balance	689,242
Shares, Granted at market price	600,623
Shares, Vested	(149,740)	(168,750)
Shares, Cancelled	0
Shares, Non-vested, Ending balance	1,140,125
Weighted Average Fair Value, Non-vested, Beginning balance	$ 3.94
Weighted Average Fair Value, Granted at market price	4.97
Weighted Average Fair Value, Vested	3.72
Weighted Average Fair Value, Cancelled	0
Weighted Average Fair Value, Non-vested, Ending balance	$ 4.52

Stock- Based Awards and Stock30

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
	Mar. 31, 2017	Mar. 31, 2016
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares, Non-vested, Beginning balance	158,086
Shares, Granted at market price	54,500
Shares, Vested	(83,166)	(133,664)
Shares, Cancelled	0
Shares, Non-vested, Ending balance	129,420
Weighted Average Fair Value, Non-vested, Beginning balance	$ 3.92
Weighted Average Fair Value, Granted at market price	4.96
Weighted Average Fair Value, Vested	3.86
Weighted Average Fair Value, Cancelled	0
Weighted Average Fair Value, Non-vested, Ending balance	$ 4.39

Stock- Based Awards and Stock31

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
	Mar. 31, 2017	Mar. 31, 2016
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares, Non-vested, Beginning balance	90,831
Shares, Granted at market price	11,500
Shares, Vested	0	(77,428)
Shares, Cancelled	(41,668)
Shares, Non-vested, Ending balance	60,663
Weighted Average Fair Value, Non-vested, Beginning balance	$ 3.81
Weighted Average Fair Value, Granted at market price	4.96
Weighted Average Fair Value, Vested	0
Weighted Average Fair Value, Cancelled	3.83
Weighted Average Fair Value, Non-vested, Ending balance	$ 4.02

Stock- Based Awards and Stock32

Stock- Based Awards and Stock-Based Employee Compensation Expense - Summary of All Performance Stock Activity (Details) - Performance Stock [Member]	3 Months Ended
	Mar. 31, 2017$ / sharesshares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares, Non-vested, Beginning balance | shares	121,500
Shares, Granted at market price | shares	112,112
Shares, Vested | shares	0
Shares, Cancelled | shares	(40,502)
Shares, Non-vested, Ending balance | shares	193,110
Weighted Average Fair Value, Non-vested, Beginning balance | $ / shares	$ 3.61
Weighted Average Fair Value, Granted at market price | $ / shares	4.96
Weighted Average Fair Value, Vested | $ / shares	0
Weighted Average Fair Value, Cancelled | $ / shares	3.61
Weighted Average Fair Value, Non-vested, Ending balance | $ / shares	$ 4.39

Stock- Based Awards and Stock33

Stock- Based Awards and Stock-Based Employee Compensation Expense - Summary of Total Stock-based Employee Compensation Expense Resulting from Stock Options, Restricted Stock, RSUs, Performance RSUs, and Performance Stock (Detail) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	$ 590
Cost of Revenues [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	71
Research and Development [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	80
Selling, General and Administrative [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	$ 439

Supplemental Cash Flow Inform34

Supplemental Cash Flow Information - Supplemental Cash Flow Information Relating to Taxes and Non-Cash Activities (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Additional Cash Flow Elements And Supplemental Cash Flow Information [Abstract]
Cash income tax payments	$ 40	$ 128

Receivables, Net - Summary of N

Receivables, Net - Summary of Net Receivables (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Accounts Notes And Loans Receivable Net Current [Abstract]
Gross accounts receivables	$ 7,158	$ 8,417
Allowance for returns and doubtful accounts	(231)	(91)
Unpaid portion of deferred revenue	(5,917)	(7,117)
Note receivable	458	458
Allowance for note receivable	(458)	(458)
Receivables, net	$ 1,010	$ 1,209

Receivables, Net - Additional I

Receivables, Net - Additional Information (Detail) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)
Receivables [Abstract]
Percentage of doubtful debts on accounts receivable	2.50%
Note receivable on a product line	$ 540
Date of note receivable, reserved	Mar. 31, 2017

Earnings Per Share and Potent37

Earnings Per Share and Potential Dilution - Computations of Basic and Diluted Earnings Per Share (Detail) - shares	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Weighted Average Number of Shares [Line Items]
Basic weighted average shares	52,959,185	56,002,447
Potential dilutive common shares	53,666,649	56,581,366
Employee and Director Stock Options [Member]
Weighted Average Number of Shares [Line Items]
Effect of dilutive securities	379,225	335,699
Restricted Stock [Member]
Weighted Average Number of Shares [Line Items]
Effect of dilutive securities	227,562	123,311
Restricted Stock Units (RSUs) [Member]
Weighted Average Number of Shares [Line Items]
Effect of dilutive securities	60,026	80,251
Performance RSUs [Member]
Weighted Average Number of Shares [Line Items]
Effect of dilutive securities	15,284	33,623
Performance Stock [Member]
Weighted Average Number of Shares [Line Items]
Effect of dilutive securities	25,367	6,035

Earnings Per Share and Potent38

Earnings Per Share and Potential Dilution - Additional Information (Detail) - shares	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Employee and Director Stock Options [Member]
Weighted Average Number of Shares [Line Items]
Antidilutive securities excluded from computation of earnings per share amount	241,058	1,015,793
Restricted Stock [Member]
Weighted Average Number of Shares [Line Items]
Antidilutive securities excluded from computation of earnings per share amount	255,712	130,000
Restricted Stock Units (RSUs) [Member]
Weighted Average Number of Shares [Line Items]
Antidilutive securities excluded from computation of earnings per share amount	18,974	29,149
Performance RSUs [Member]
Weighted Average Number of Shares [Line Items]
Antidilutive securities excluded from computation of earnings per share amount	6,006	3,544
Performance Stock [Member]
Weighted Average Number of Shares [Line Items]
Antidilutive securities excluded from computation of earnings per share amount	58,547	22,289

Commitments and Contingencies -

Commitments and Contingencies - Summary of Fixed Contractual Obligations and Commitments (Detail) $ in Thousands	Mar. 31, 2017USD ($)
Operating Leases Future Minimum Payments Due [Abstract]
Operating leases, Total	$ 9,212
Operating leases, 1 Year	1,535
Operating leases, 2 & 3 Years	2,720
Operating leases, 4 & 5 Years	2,162
Operating leases, Beyond 5 Years	$ 2,795

Common Stock Repurchase Progr40

Common Stock Repurchase Program - Additional Information (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Jan. 31, 2016
Equity, Class of Treasury Stock [Line Items]
Share repurchase program authorized amount			$ 15,000,000
January 2016 Stock Repurchase Program [Member]
Equity, Class of Treasury Stock [Line Items]
Shares repurchased	0	1,303,484
Treasury repurchase program		$ 5,200,000

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) $ in Millions	Mar. 31, 2017USD ($)
Income Tax Disclosure [Abstract]
Operating loss carryforwards	$ 47

Acquisitions - Additional Infor

Acquisitions - Additional Information (Detail) - USD ($)	Mar. 15, 2017	Mar. 31, 2017	Dec. 31, 2018
Business Acquisition [Line Items]
Cash consideration		$ 6,550,000
Greenview Data, Inc [Member]
Business Acquisition [Line Items]
Total purchase price	$ 8,300,000
Cash consideration	6,600,000
Cash consideration paid through escrow deposit	$ 650,000
Escrow account certain indemnification claims, period	2 years
Greenview Data, Inc [Member] | Maximum [Member] | Scenario, Forecast [Member]
Business Acquisition [Line Items]
Additional pay earnout consideration in cash on achievement of certain sale milestones			$ 1,600,000

Acquisitions - Summary of Provi

Acquisitions - Summary of Provisional Fair Value of Acquired Assets and Liabilities (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Mar. 15, 2017	Dec. 31, 2016
Assets:
Goodwill	$ 10,742		$ 2,161
Greenview Data, Inc [Member]
Assets:
Current assets		$ 333
Property, and equipment, net		6
Goodwill		8,581
Total assets		8,920
Liabilities:
Deferred revenue		537
Other current liabilities		114
Total current liabilities		651
Net assets recorded		$ 8,269

Subsequent Events - Additional

Subsequent Events - Additional Information (Detail) - USD ($)	Apr. 24, 2017	Jan. 31, 2016
Subsequent Event [Line Items]
Share repurchase program authorized amount		$ 15,000,000
Subsequent Event [Member]
Subsequent Event [Line Items]
Share repurchase program expiration date	May 31, 2018
Subsequent Event [Member] | Maximum [Member]
Subsequent Event [Line Items]
Share repurchase program authorized amount	$ 10,000,000