Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Mar. 04, 2015 | Jun. 30, 2014 |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | NUMEREX CORP /PA/ | ||
Entity Central Index Key | 870753 | ||
Trading Symbol | nmrx | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Common Stock, Shares Outstanding | 19 | ||
Entity Public Float | $175.60 | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Amendment Flag | FALSE | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS | ||
Cash and cash equivalents | $17,270 | $25,603 |
Accounts receivable, less allowance for doubtful accounts of $1,106 and $674 | 12,287 | 9,385 |
Financing receivables, current | 1,595 | 1,223 |
Inventory, net of reserve for obsolescence | 8,410 | 8,315 |
Prepaid expenses and other current assets | 2,329 | 1,833 |
Deferred tax assets, current | 3,161 | 2,742 |
Assets of discontinued operations | 840 | |
TOTAL CURRENT ASSETS | 45,052 | 49,941 |
Financing receivables, less current portion | 2,984 | 3,029 |
Property and equipment, net of accumulated depreciation and amortization | 4,889 | 3,125 |
Software, net of accumulated amortization | 6,106 | 6,381 |
Other intangible assets, net of accumulated amortization | 19,163 | 5,617 |
Goodwill | 44,548 | 26,941 |
Deferred tax assets, less current portion | 5,616 | 3,958 |
Other assets | 2,585 | 2,298 |
TOTAL ASSETS | 130,943 | 101,290 |
CURRENT LIABILITIES | ||
Accounts payable | 12,257 | 9,953 |
Accrued expenses and other current liabilities | 2,471 | 2,004 |
Deferred revenues | 2,258 | 1,894 |
Current portion of long-term debt | 4,251 | 633 |
Obligations under capital lease | 148 | 306 |
Liabilities of discontinued operations | 207 | |
TOTAL CURRENT LIABILITIES | 21,385 | 14,997 |
Long-term debt, less current portion | 19,350 | 475 |
Obligations under capital lease, less current portion | 148 | |
Other liabilities | 1,346 | 1,693 |
TOTAL LIABILITIES | 42,081 | 17,313 |
COMMITMENTS AND CONTINGENCIES | ||
SHAREHOLDERS' EQUITY | ||
Preferred stock, no par value; authorized 3,000; none issued | ||
Additional paid-in capital | 99,056 | 95,777 |
Treasury stock, at cost, 1,292 and 1,241 shares | -5,352 | -5,238 |
Accumulated other comprehensive loss | -48 | -24 |
Accumulated deficit | -4,794 | -6,538 |
TOTAL SHAREHOLDERS' EQUITY | 88,862 | 83,977 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 130,943 | 101,290 |
Class A common stock | ||
SHAREHOLDERS' EQUITY | ||
Common stock value | ||
Class B common stock | ||
SHAREHOLDERS' EQUITY | ||
Common stock value |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accounts receivable, allowance for doubtful accounts (in dollars) | $1,106 | $674 |
Preferred stock, no par value (in dollars per share) | ||
Preferred stock, shares authorized | 3,000 | 3,000 |
Preferred stock, shares issued | ||
Treasury stock, a cost, shares | 1,292 | 1,241 |
Class A common stock | ||
Common stock, no par value (in dollars per share) | ||
Common stock, shares authorized | 30,000 | 30,000 |
Common stock, shares issued | 20,284 | 20,069 |
Common stock, shares outstanding | 18,992 | 18,828 |
Class B common stock | ||
Common stock, no par value (in dollars per share) | ||
Common stock, shares authorized | 5,000 | 5,000 |
Common stock, shares issued |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net revenues: | |||
Subscription and support revenues | $65,020 | $51,640 | $43,067 |
Embedded devices and hardware | 28,849 | 26,192 | 21,965 |
Total net revenues | 93,869 | 77,832 | 65,032 |
Cost of sales, exclusive of a portion of depreciation and amortization shown below: | |||
Subscription and support revenues | 25,371 | 21,754 | 17,955 |
Embedded devices and hardware | 25,234 | 23,938 | 19,202 |
Gross profit | 43,264 | 32,140 | 27,875 |
Operating expenses: | |||
Sales and marketing | 11,876 | 9,544 | 8,242 |
General and administrative | 15,063 | 13,281 | 10,257 |
Engineering and development | 8,009 | 4,915 | 3,096 |
Depreciation and amortization | 6,201 | 4,819 | 3,313 |
Operating income (loss) | 2,115 | -419 | 2,967 |
Interest expense | 798 | 304 | 336 |
Other (income) expense, net | -1,338 | -319 | 500 |
Income (loss) from continuing operations before income taxes | 2,655 | -404 | 2,131 |
Income tax expense (benefit) | 419 | -2,369 | -4,902 |
Income from continuing operations, net of income taxes | 2,236 | 1,965 | 7,033 |
(Loss) income from discontinued operations, net of income taxes | -492 | -1,380 | 132 |
Net income | 1,744 | 585 | 7,165 |
Other items of comprehensive income, net of income taxes: | |||
Foreign currency translation adjustment | -24 | -16 | 5 |
Comprehensive income | $1,720 | $569 | $7,170 |
Basic earnings per share: | |||
Income from continuing operations (in dollars per share) | $0.12 | $0.11 | $0.46 |
(Loss) income from discontinued operations (in dollars per share) | ($0.03) | ($0.08) | $0 |
Net income (in dollars per share) | $0.09 | $0.03 | $0.46 |
Diluted earnings per share: | |||
Income from continuing operations (in dollars per share) | $0.12 | $0.10 | $0.44 |
(Loss) income from discontinued operations (in dollars per share) | ($0.03) | ($0.07) | $0.01 |
Net income (in dollars per share) | $0.09 | $0.03 | $0.45 |
Weighted average shares outstanding used in computing earnings per share: | |||
Basic (in shares) | 18,922 | 18,413 | 15,412 |
Diluted (in shares) | 19,268 | 18,950 | 16,014 |
CONSOLIDATED_STATEMENTS_OF_SHA
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (USD $) | Common Shares | Additional Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive Loss | Accumulated Deficit | Total |
In Thousands, unless otherwise specified | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | |
Balance at Dec. 31, 2011 | $66,634 | ($8,136) | ($13) | ($14,288) | $44,197 | |
Balance (in shares) at Dec. 31, 2011 | 16,691 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of shares in connection with acquisition | 476 | 476 | ||||
Issuance of shares in connection with acquisition (in shares) | 42 | |||||
Equity-based compensation expense | 1,388 | 1,388 | ||||
Equity-based compensation expense (in shares) | 54 | |||||
Equity-based compensation plan activity | 589 | 589 | ||||
Equity-based compensation plan activity (in shares) | 339 | |||||
Value of shares retained to pay employee taxes | -1,202 | -1,202 | ||||
Exercise of warrants | 187 | 187 | ||||
Exercise of warrants (in shares) | 45 | |||||
Translation adjustment | 5 | 5 | ||||
Net income | 7,165 | 7,165 | ||||
Balance at Dec. 31, 2012 | 68,072 | -8,136 | -8 | -7,123 | 52,805 | |
Balance (in shares) at Dec. 31, 2012 | 17,171 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Sale of shares, net of issuance costs and expenses | 27,731 | 27,731 | ||||
Sale of shares, net of issuance costs and expenses (in shares) | 2,662 | |||||
Issuance of shares in connection with acquisition | 925 | 925 | ||||
Issuance of shares in connection with acquisition (in shares) | 74 | |||||
Equity-based compensation expense | 1,879 | 1,879 | ||||
Equity-based compensation expense (in shares) | 190 | |||||
Equity-based compensation plan activity | 341 | 341 | ||||
Equity-based compensation plan activity (in shares) | 201 | |||||
Value of shares retained to pay employee taxes | -466 | -466 | ||||
Exercise of warrants | 193 | 193 | ||||
Exercise of warrants (in shares) | 92 | |||||
Retirement of treasury shares | -2,898 | 2,898 | ||||
Retirement of treasury shares (in shares) | -321 | |||||
Translation adjustment | -16 | -16 | ||||
Net income | 585 | 585 | ||||
Balance at Dec. 31, 2013 | 95,777 | -5,238 | -24 | -6,538 | 83,977 | |
Balance (in shares) at Dec. 31, 2013 | 20,069 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Equity-based compensation expense | 2,565 | 2,565 | ||||
Equity-based compensation expense (in shares) | 1 | |||||
Equity-based compensation plan activity | 867 | 867 | ||||
Equity-based compensation plan activity (in shares) | 214 | |||||
Value of shares retained to pay employee taxes | -153 | -114 | -267 | |||
Translation adjustment | -24 | -24 | ||||
Net income | 1,744 | 1,744 | ||||
Balance at Dec. 31, 2014 | $99,056 | ($5,352) | ($48) | ($4,794) | $88,862 | |
Balance (in shares) at Dec. 31, 2014 | 20,284 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | |||
Net income | $1,744 | $585 | $7,165 |
Less (loss) income from discontinued operations, net of income taxes | -492 | -1,380 | 132 |
Income from continuing operations, net of income taxes | 2,236 | 1,965 | 7,033 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 6,812 | 5,119 | 3,442 |
Equity-based compensation expense | 2,565 | 1,879 | 1,388 |
Deferred income taxes | 365 | -2,128 | -4,872 |
Bad debt expense | 392 | 444 | 188 |
Inventory reserves | 544 | 807 | 148 |
Gain on sale of cost method investment | -1,109 | -328 | |
Other non-cash expense | 98 | 79 | 93 |
Changes in assets and liabilities, net of effects of acquisitions: | |||
Accounts and financing receivables | -1,034 | -3,201 | -3,405 |
Inventory, net | 233 | -1,625 | -633 |
Accounts payable | 665 | 1,477 | -670 |
Deferred revenue | 154 | 508 | -46 |
Other | -1,465 | 1,092 | -742 |
Net cash provided by operating activities | 10,456 | 6,088 | 1,924 |
Cash flows from investing activities: | |||
Net cash paid for acquisition | -37,287 | -2,794 | -2,000 |
Purchases of property and equipment | -2,209 | -1,004 | -1,679 |
Purchases of intangible and other assets | -3,237 | -3,430 | -2,773 |
Proceeds from sale of cost basis investment | 1,309 | 650 | |
Proceeds from sale-leaseback of equipment | 716 | ||
Net cash used in investing activities | -41,424 | -5,862 | -6,452 |
Cash flows from financing activities: | |||
Principal payments on debt | -2,508 | -7,186 | -2,306 |
Fees paid for credit facility | -293 | -73 | |
Principal payments on capital lease obligations | -306 | -263 | -237 |
Proceeds from underwritten offering, net of offering costs | 27,731 | ||
Proceeds from long-term debt | 25,000 | 3,000 | |
Equity-based compensation plan activity | 867 | 338 | 560 |
Payment of employee taxes on equity-based awards | -267 | -466 | -1,202 |
Proceeds from exercise of warrants | 193 | 187 | |
Restricted cash | 221 | ||
Net cash provided by financing activities | 22,493 | 20,347 | 150 |
Cash flows from discontinued operations: | |||
Cash provided by (used in) operating activities | 142 | 93 | -221 |
Cash used in investing activities | -11 | ||
Net cash provided by (used in) discontinued operations | 142 | 82 | -221 |
Net (decrease) increase in cash and cash equivalents | -8,333 | 20,655 | -4,599 |
Cash and cash equivalents at beginning of year | 25,603 | 4,948 | 9,547 |
Cash and cash equivalents at end of year | 17,270 | 25,603 | 4,948 |
Supplemental disclosures of cash flow information: | |||
Cash paid for interest | 703 | 272 | 271 |
Cash paid for income taxes | 146 | 97 | 175 |
Disclosure of non-cash investing and financing activities: | |||
Acquisition of property under capital lease | 716 | ||
Capital expenditures in accounts payable | 417 | 923 | 202 |
Common stock issued in connection with acquisition | 925 | 476 | |
Deferred payment issued in connection with acquisition | 200 | ||
Promissory note issued in connection with acquisition | 1,900 | ||
Managed services inventory transferred to fixed assets | $1,739 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Accounting Policies [Abstract] | ||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Nature of Business | ||||
Numerex Corp. (NASDAQ: NMRX) is a leading provider of interactive and on-demand machine-to-machine (M2M) enterprise solutions enabling the Internet of Things (IoT). The Company provides its technology and services through its integrated M2M horizontal platforms, which are generally sold on a subscription basis. The Company offers Numerex DNA® that may include hardware and smart Devices, cellular and satellite Network services, and software Applications that are delivered through our M2M platform. The Company also provides business services to enable the development of efficient, reliable, and secure solutions while accelerating deployment. Numerex is ISO 27001 information security-certified, highlighting the Company’s focus on M2M data security, service reliability and around-the-clock support of its customers’ M2M solutions. | ||||
Basis of Presentation | ||||
The consolidated financial statements include the results of operations and financial position of Numerex and its wholly owned subsidiaries in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). Intercompany accounts and transactions have been eliminated in consolidation. | ||||
Discontinued Operations | ||||
Businesses to be divested are classified in the consolidated financial statements as either discontinued operations or held for sale. For businesses classified as discontinued operations, the balance sheet amounts and results of operations are reclassified from their historical presentation to assets and liabilities of discontinued operations on the consolidated balance sheet and to discontinued operations on the consolidated statements of income and comprehensive income and cash flows, respectively, for all periods presented. The gains or losses associated with these divested businesses are also recorded in discontinued operations in the consolidated statements of income and comprehensive income. Additionally, the accompanying notes do not include the assets, liabilities, or operating results of businesses classified as discontinued operations for all periods presented. As of June 30, 2014, we completed the divestiture of the businesses classified as discontinued operations. We have not had and do not expect to have any significant continuing involvement with these businesses following their divestiture. | ||||
Estimates and Assumptions | ||||
The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expense and related disclosure of contingent assets and liabilities. On an ongoing basis, we evaluate our estimates, including those related to revenue recognition, doubtful accounts, goodwill and intangible assets, expenses, accruals, equity-based compensation, income taxes, restructuring charges, leases, long-term service contracts, contingencies and litigation. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ materially from these estimates. | ||||
Fair Value of Financial Instruments | ||||
The fair value of financial instruments classified as current assets or liabilities, including cash and cash equivalents, accounts receivable, and accounts payable and accrued expenses approximate carrying value, principally because of the short-term, maturity of those items. The fair value of our capitalized lease obligation approximates carrying value based on the short-term maturity of the obligation. The fair value of our long-term financing receivables and note payable approximates carrying value based on their effective interest rates compared to current market rates and similar type borrowing arrangements. | ||||
We measure and report certain financial assets and liabilities at fair value on a recurring basis, including cash equivalents. The major categories of nonfinancial assets and liabilities that we measure at fair value include reporting units measured at fair value in step one of our goodwill impairment test. | ||||
Concentration of Credit Risk | ||||
Financial instruments that potentially subject us to a concentration of credit risk are primarily cash investments and accounts and financing receivables. We maintain our cash and overnight investment balances in financial institutions, which typically exceed federally insured limits. We had cash balances in excess of these limits of $17.0 million and $25.4 million at December 31, 2014 and 2013, respectively. We have not experienced any losses in such accounts and believe we are not exposed to any significant credit risk on cash and cash equivalents. Concentration of credit risk with respect to accounts and financing receivables from customers is limited. We perform credit evaluations of prospective customers and we evaluate our trade receivables periodically. Our accounts and financing receivables are at risk to the extent that we may not be able to collect from some of our customers. See Notes E, F and Q for more information. | ||||
Revenue Recognition | ||||
Our revenue is generated from two primary sources, subscription fees and the sale of M2M devices and hardware. Revenue is recognized when persuasive evidence of an agreement exists, the hardware or service has been delivered, fees and prices are fixed and determinable, collection is reasonably assured and all other significant obligations have been fulfilled. Revenue is recognized net of sales and any transactional taxes. | ||||
Subscription fees are based on the number of devices (subscriptions) on our integrated M2M horizontal platform network. Subscription fees are typically invoiced and recognized as revenue as we provide the services or process transactions in accordance with contractual performance standards. Customer contracts are generally recurring or multi-year agreements. Subscription fees also include volume-based excess network usage, messages and other activity that are recognized as revenue as incurred, consistent with contractual terms. We may, under an appropriate agreement, bill subscription fees in advance for the network service to be provided. In these instances, we recognize the advance charge (even if nonrefundable) as deferred revenue and recognize the revenue over future periods in accordance with the contract term as the network service (time, data or minutes) is provided, delivered or performed. Subscription revenue may also include set-up fees which are deferred and recognized ratably over the estimated life of the subscription. Direct and incremental costs associated with deferred revenue are also deferred, classified as deferred costs in prepaid expense and other assets in our consolidated balance sheets, and recognized in the period revenue is recognized. Unbilled revenue consists of earned revenue that results from non-calendar month billing cycles and the one-month lag time in billing related to certain of our services. | ||||
We recognize revenue from the sale of M2M devices and hardware at the time of shipment and passage of title. Provisions for rebates, promotions, product returns and discounts to customers are recorded as a reduction in revenue in the same period that the revenue is recognized. We offer customers the right to return hardware that does not function properly within a limited time after delivery. We continuously monitor and track such hardware returns and record a provision for the estimated amount of such future returns based on historical experience and any notification received of pending returns. While such returns have historically been within expectations and the provisions established, we cannot guarantee that we will continue to experience the same return rates that we have experienced in the past. Any significant increase in hardware failure rates and the resulting credit returns could have a material adverse impact on operating results for the period or periods in which such returns materialize. Shipping and handling fees received from customers are recorded with embedded device and hardware revenue and associated costs are recorded in cost of embedded devices and hardware. | ||||
On occasion we sell both hardware and monthly recurring services to the same customer. In such cases, we evaluate such arrangements to determine if a multiple-element arrangement exists. For multiple-element revenue arrangements, we allocate arrangement consideration at the inception of an arrangement to all elements using the relative selling price method. The hierarchy for determining the selling price of a deliverable includes (a) vendor-specific objective evidence, if available, (b) third-party evidence, if vendor-specific objective evidence is not available and (c) our best estimate of the selling price, if neither vendor-specific nor third-party evidence is available. In most cases, vendor-specific objective evidence is available for us, as the vast majority of our business is either selling hardware or service on a standalone basis. Certain judgments and estimates are made and used to determine revenue recognized in any accounting period. If estimates are revised, material differences may result in the amount and timing of revenues recognized for a given period. | ||||
Cash and Cash Equivalents | ||||
We consider all investments with an original maturity of three months or less at date of purchase to be cash equivalents. Cash equivalents consist of overnight repurchase agreements and amounts on deposit in foreign banks. We held $0.4 million and $0.2 million in foreign bank accounts at December 31, 2014 and 2013, respectively. | ||||
Accounts Receivable and Allowance for Doubtful Accounts | ||||
Trade accounts receivable are stated at gross invoiced amounts less discounts, other allowances and provision for uncollectible accounts. Trade accounts receivable include earned but unbilled revenue that results from non-calendar month billing cycles and lag time in billing related to certain of our services. Credit is extended to customers based on an evaluation of a customer’s financial condition and, generally, collateral is not required. Accounts receivable are generally due within 30-90 days. We maintain an allowance for estimated losses resulting from the inability of our customers to make required payments. The allowance for doubtful accounts is based principally upon specifically identified amounts where collection is deemed doubtful. Additional non-specific allowances are recorded based on historical experience and our assessment of a variety of factors related to the general financial condition and business prospects of our customer base. We review the collectability of individual accounts and assess the adequacy of the allowance for doubtful accounts quarterly. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. | ||||
Financing Receivables | ||||
Financing receivables are due in installments. We evaluate the credit quality of our financing receivables on an ongoing basis utilizing an aging of the accounts and write-offs, customer collection experience, the customer’s financial condition, known risk characteristics impacting the respective customer base, and other available economic conditions, to determine the appropriate allowance. Similar to accounts receivable, we typically do not require collateral. All amounts due at December 31, 2014 and 2013 were deemed fully collectible and an allowance was not necessary. | ||||
Inventories and Reserves for Excess, Slow-Moving and Obsolete Inventory | ||||
Inventories are valued at the lower of cost or market and consist of (1) security devices and (2) cellular M2M Modems and Modules and (3) satellite M2M Modems. Cost is generally determined on the first-in, first-out (FIFO) basis. Inbound freight costs, including raw material freight costs to contract manufacturers is recorded in inventory and these costs are recognized in cost of sales when the product is sold. Lower of cost or market value of inventory is determined at the product level and evaluated quarterly. Estimated reserves for obsolescence or slow moving inventory are maintained based on current economic conditions, historical sales quantities and patterns and, in some cases, the specific risk of loss on specifically identified inventories. Such inventories are recorded at estimated realizable value net of the costs of disposal. | ||||
Property and Equipment | ||||
Depreciation is provided in amounts sufficient to relate the cost of depreciable assets to operations over their estimated service lives. Property and equipment under capital leases are amortized over the lives of the respective leases or over the service lives of the assets for those leases and leasehold improvements, whichever is shorter. Depreciation and amortization for property and equipment is calculated using the straight-line method over the following estimated lives: | ||||
● | Machinery and equipment | 4-10 years | ||
● | Furniture, fixtures and fittings | 3-10 years | ||
● | Leasehold improvements | up to 10 years | ||
Capitalized Software | ||||
We capitalize software both for internal use and for inclusion in our products. For internal use software, costs incurred in the preliminary project stage of developing or acquiring internal use software are expensed as incurred. After the preliminary project stage is completed, management has approved the project and it is probable that the project will be completed and the software will be used for its intended purpose, we capitalize certain internal and external costs incurred to acquire or create internal use software, principally related to software coding, designing system interfaces and installation and testing of the software. We amortize capitalized internal use software costs using the straight-line method over the estimated useful life of the software, generally three years. | ||||
We capitalize software development costs for software embedded in our products when technological feasibility is established and conclude capitalization when the hardware is ready for release. We amortize capitalized costs for software to be sold using the straight-line method over the estimated useful life based on anticipated revenue streams of the software, generally three years. Software development costs incurred prior to the establishment of technological feasibility are expensed as incurred as engineering and development. | ||||
Intangible Assets, Including Goodwill | ||||
Intangible assets consist of acquired customer relationships and intellectual property, patents and trademarks, and goodwill. These assets, except for goodwill and trade names, are amortized over their expected useful lives. Acquired customer relationships are amortized using the straight-line method over 4 to 11 years. Acquired intellectual property and patents are amortized using the straight-line method over 7 to 16 years, representing the shorter of their estimated useful lives or the period until the patent renews. Costs to maintain patents are expensed as incurred while costs to renew patents are capitalized and amortized over the remaining estimated useful lives. | ||||
Goodwill and trade names are not amortized but are subject to an annual impairment test, and more frequently if events or circumstances occur that would indicate a potential decline in its fair value. An impairment charge will be recognized only when the implied fair value of a reporting unit’s goodwill is less than its carrying amount. The annual assessment of goodwill for impairment includes comparing the fair value of each reporting unit to the carrying value, referred to as step one. If the fair value of a reporting unit exceeds its carrying value, goodwill is not impaired and no further testing is necessary. If the carrying value of a reporting unit exceeds its fair value, a second test is performed, referred to as step two, to measure the amount of impairment to goodwill, if any. To measure the amount of any impairment, we determine the implied fair value of goodwill in the same manner as if we were acquiring the affected reporting unit in a business combination. Specifically, we allocate the fair value of the affected reporting unit to all of the assets and liabilities of that unit, including any unrecognized intangible assets, in a hypothetical calculation that would yield the implied fair value of goodwill. If the implied fair value of goodwill is less than the goodwill recorded on the consolidated balance sheet, an impairment charge for the difference is recorded. | ||||
We base the impairment analysis of goodwill on estimated fair values. The assumptions, inputs and judgments used in performing the valuation analysis are inherently subjective and reflect estimates based on known facts and circumstances at the time the valuation is performed. These estimates and assumptions primarily include, but are not limited to, discount rates, terminal growth rates, projected revenues and costs, projected cash flows, and capital expenditure forecasts. | ||||
We elected to change our annual goodwill impairment testing measurement date from December 31 to October 1 effective October 1, 2013, primarily to correspond to our annual strategic, financial planning and budgeting processes. The change in annual testing dates did not affect our financial results for any interim period or the year ended December 31, 2013. We did not identify the need for any impairment as a result of our annual assessment. In addition, we assess on a quarterly basis whether any events have occurred or circumstances have changed that would indicate an impairment could exist. | ||||
Impairment of Long-lived Assets | ||||
Long-lived assets, such as property and equipment and intangible assets subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount which the carrying amount of the asset exceeds the fair value of the asset. | ||||
Income Taxes | ||||
We account for income taxes using the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to the differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using the enacted tax rates applied to taxable income. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is provided for deferred tax assets when it is more likely than not that the asset will not be realized. | ||||
We conduct business globally and file income tax returns in the United States and in many state and certain foreign jurisdictions. We are subject to state and local income tax examinations for years after and including 1998. These tax years remain open due to the net operating losses generated in these years that have not been utilized as of the year ended December 31, 2014. Likewise, the existence of net operating losses from earlier periods could subject us to United States federal income tax examination for years including and after 2001, since such net operating losses have not been utilized as of the year ended December 31, 2014. | ||||
Treasury Stock | ||||
We account for treasury stock under the cost method. When treasury stock is re-issued at a higher price than its cost, the difference is recorded as a component of additional paid-in capital to the extent that there are gains to offset the losses. If there are no treasury stock gains in additional paid-in capital, the losses are recorded as a component of accumulated deficit. | ||||
Foreign Currency Translation | ||||
The assets and liabilities of our foreign operations are translated into U.S. dollars at the period end spot exchange rates, and revenues and expenses are translated at estimated average exchange rates for each period. Resulting translation adjustments are reflected as other comprehensive income in the consolidated statements of income and comprehensive income and within shareholders’ equity. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred. Foreign operations are not significant to us for the years ended December 31, 2014, 2013 or 2012. | ||||
Engineering and Development | ||||
Engineering and development expenses that are not capitalizable as software development costs are charged to operations in the period in which they are incurred. Engineering and development costs consist primarily of salaries and other personnel-related costs, bonuses, and third-party services. For the years ended December 31, 2014, 2013 and 2012, engineering and development costs recorded in operations were $8.0 million, $4.9 million and $3.1 million, respectively. | ||||
Advertising Expenses | ||||
Advertising expenses are charged to operations in the period in which they are incurred. For the years ended December 31, 2014, 2013 and 2012, advertising costs were approximately $0.9 million, $0.7 million and $0.8 million, respectively. | ||||
Reclassifications | ||||
Previously reported software and other intangible assets have been reclassified in the consolidated balance sheet to conform to the current period presentation. | ||||
Recent Accounting Pronouncements | ||||
In August 2014, the Financial Accounting Standards Board (FASB) issued guidance about disclosing an entity’s ability to continue as a going concern. The guidance is intended to define management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. The standard will be effective for annual periods ending after December 15, 2016, and for interim and annual periods thereafter, with early application permitted. We do not expect the adoption of this guidance to have a material impact on the company’s financial position or results of operations. | ||||
In June 2014, the FASB issued guidance that applies to all reporting entities that grant their employees share-based payments in which the terms of the award provide that a performance target that affects vesting could be achieved after the requisite service period. It requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition and follows existing accounting guidance for the treatment of performance conditions. The standard will be effective for us prospectively for fiscal years, and interim reporting periods within those years, beginning January 1, 2016, with early adoption permitted. We do not expect the adoption of this guidance to have a material impact on our financial position or results of operations. | ||||
In May 2014, the FASB issued new accounting guidance for revenue recognized from contracts with customers. The core principle of the guidance is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under current guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. The guidance will become effective for us for fiscal years, and interim reporting periods within those years, beginning January 1, 2017 and will require retrospective application. We are currently in the process of evaluating the impact of adoption on our consolidated financial statements. | ||||
In April 2014, the FASB issued amendments to guidance for reporting discontinued operations and disposals of components of an entity. The amended guidance requires that a disposal representing a strategic shift that has (or will have) a major effect on an entity’s financial results or a business activity classified as held for sale should be reported as discontinued operations. The amendments also expand the disclosure requirements for discontinued operations. The amendments are effective for us prospectively for fiscal years, and interim reporting periods within those years, beginning January 1, 2015 (early adoption is permitted only for disposals that have not been previously reported). The implementation of the amended guidance is not expected to have a material impact on our consolidated financial position or results of operations. | ||||
In July 2013, the FASB issued new accounting guidance related to the presentation of unrecognized tax benefits when a net operating loss carry-forward, a similar tax loss, or a tax credit carry-forward exists. This guidance clarifies that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carry-forward, a similar tax loss, or a tax credit carry-forward if such settlement is required or expected in the event the uncertain tax position is disallowed. In situations where a net operating loss carry-forward, a similar tax loss, or a tax credit carry-forward is not available at the reporting date under the tax law of the applicable jurisdiction or the tax law of the jurisdiction does not require, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. This guidance was effective for us prospectively for fiscal years, and interim periods within those years, beginning January 1, 2014. Because the guidance only affects presentation, adoption did not have a material effect on our financial condition or results of operations. | ||||
In March 2013, the FASB issued an update to the accounting standards to clarify the applicable guidance for a parent company’s accounting for the release of the cumulative translation adjustment into net income upon derecognition of certain subsidiaries or groups of assets within a foreign entity or of an investment in a foreign entity. This guidance was effective for us prospectively for fiscal periods beginning after January 1, 2014. Adoption did not have a material impact on our financial condition or results of operations. |
MERGER_AND_ACQUISITIONS
MERGER AND ACQUISITIONS | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Business Combinations [Abstract] | |||||||||
MERGER AND ACQUISITIONS | NOTE B – MERGER AND ACQUISITIONS | ||||||||
2014 Merger | |||||||||
On May 5, 2014, in accordance with the terms and conditions of the merger agreement, we merged our wholly-owned subsidiary with and into Omnilink Systems Inc. (Omnilink) with Omnilink surviving the merger as a wholly-owned subsidiary of the Company. The purchase price was $37.5 million cash. | |||||||||
Omnilink provides tracking and monitoring services for people and valuable assets via Omnilink’s M2M platform that connects hardware, networks, software, and support services. We expect our combination with Omnilink to provide operating synergies and create potential growth opportunities through product enhancement and channel expansion. The assets, liabilities and operating results of Omnilink are reflected in our consolidated financial statements commencing from the merger date. Transaction costs of $1.0 million for the year ended December 31, 2014 have been recorded in general and administrative expense in the accompanying consolidated statement of income and comprehensive income. | |||||||||
The following table summarizes the fair values of the assets acquired and liabilities assumed as of the closing date of the Omnilink merger (dollars in thousands): | |||||||||
Estimated | |||||||||
Fair Value | Useful Lives | ||||||||
Cash | $ | 195 | n/a | ||||||
Accounts receivable | 2,677 | n/a | |||||||
Inventory | 873 | n/a | |||||||
Prepaid and other assets | 377 | n/a | |||||||
Property and equipment | 1,613 | 4(a) | |||||||
Deferred tax asset | 2,400 | n/a | |||||||
Customer relationships | 6,056 | 11 | |||||||
Technology | 4,998 | 14 | |||||||
Trade names | 3,632 | Indefinite | |||||||
Goodwill | 17,518 | Indefinite | |||||||
Total identifiable assets acquired | 40,339 | ||||||||
Accounts payable | (1,756 | ) | n/a | ||||||
Accrued expenses | (1,037 | ) | n/a | ||||||
Deferred revenue | (64 | ) | n/a | ||||||
Total liabilities assumed | (2,857 | ) | |||||||
Net assets acquired | $ | 37,482 | |||||||
(a) | The weighted average remaining useful life for all property and equipment is approximately four years. | ||||||||
The above fair value purchase price allocations are provisional and subject to change. The total purchase consideration for the merger was allocated to identifiable assets purchased and liabilities assumed based on fair value. The estimated fair value attributed to intangible assets, other than Goodwill, was based on common valuation techniques. The final valuation of assets acquired and liabilities assumed is expected to be completed as soon as possible, but no later than one year from the acquisition date. Given the scope of the operational integration and valuation efforts, as well as the complexity presented in the valuation of the tax effects related to tax attributes and other deferred tax items, the valuation of certain assets and liabilities is still being completed. The primary area that is not yet finalized relates to the calculation of deferred taxes and the corresponding effect on the residual value of goodwill. We have recorded estimated net deferred tax assets, pending finalization of Omnilink’s pre-acquisition income tax returns. | |||||||||
The gross amount of accounts receivable in the table above is $2.9 million. Based on the nature and financial strength of the customers, we expect to collect amounts due for the accounts receivable of $2.7 million. Our best estimate at the merger date of the contractual cash flows not expected to be collected is $0.2 million. | |||||||||
The residual allocation to goodwill results from such factors as an assembled workforce, expected significant synergies for market growth and profitability as well as Omnilink’s service and product lines contributing to our becoming the market leader in select M2M vertical markets. The total amount of goodwill will not be deductible for income tax purposes. | |||||||||
Unaudited Pro forma Results | |||||||||
The condensed consolidated statement of income for the year ended December 31, 2014 includes approximately $8.7 million of revenues contributed by Omnilink products and services for the period from May 5, 2014 through December 31, 2014. Immediately upon closing the merger, we began integrating Omnilink’s operations with our existing operations. As a result, the legacy and acquired businesses are now sharing various selling, general and administrative functions. Any measure of stand-alone profitability for Omnilink in the post-acquisition period is not material and cannot be calculated accurately due to the shared cost structure of the acquired and legacy businesses. | |||||||||
The following table presents the unaudited pro forma consolidated net revenues, income (loss) from continuing operations before income taxes and net income (loss) for the year ended December 31, 2014 and 2013, based on the historical statements of operations of Numerex and of Omnilink, giving effect to the Omnilink merger and related financing as if they had occurred on January 1, 2013. The unaudited pro forma financial information is not necessarily indicative of what the consolidated results of operations actually would have been had the acquisition occurred at the beginning of each year. In addition, the unaudited pro forma financial information does not attempt to project the future results of operations of the combined company (in thousands except per share data). | |||||||||
Unaudited Pro Forma Results | |||||||||
For the Years Ended December 31, | |||||||||
2014 | 2013 | ||||||||
Net revenues | $ | 98,134 | $ | 90,628 | |||||
Income (loss) from continuing operations, before income tax | 2,719 | (2,370 | ) | ||||||
Net income (loss) | 2,147 | (856 | ) | ||||||
Basic and diluted income (loss) per common share | 0.11 | (0.05 | ) | ||||||
The unaudited pro forma financial information above gives effect to the following: | |||||||||
● | Adjust depreciation expense for a 2014 net historical Omnilink reduction of $0.1 million and a 2013 net historical Omnilink reduction of $0.1 million for the effect of recording property and equipment at estimated fair value. | ||||||||
● | Adjust amortization expense for a 2014 net increase of $0.3 million and a 2013 net increase of $0.9 million for the effect of recording intangible assets at estimated fair value. | ||||||||
● | Adjust interest expense for a 2014 net increase of $0.1 million and a 2013 net increase of $0.6 million due to the repayment of Omnilink’s debt balances in conjunction with the merger and the merger-related debt incurred by Numerex and related amortization of deferred financing costs. | ||||||||
● | Adjust expense by $1.0 million to reclassify expense recorded for merger-related costs in the year ended December 31, 2014, to the year ended December 31, 2013, to reflect the expenses as of the pro forma merger date of January 1, 2013. | ||||||||
The unaudited pro forma results do not include any revenue or cost reductions that may be achieved through the business combination, or the impact of non-recurring items directly related to the business combination. | |||||||||
2013 Acquisitions | |||||||||
On December 2, 2013, we acquired substantially all the assets, products and technologies of a small technology company that provided remote monitoring and management of bulk storage tanks. The acquisition expands the scope and scale of our capabilities in supply chain and remote monitoring markets. Total consideration was $2.8 million in cash (of which $0.2 million was paid on December 2, 2014). | |||||||||
The following table sets forth the allocation of the purchase price and a summary of estimated useful lives (dollars in thousands): | |||||||||
Fair | Useful | ||||||||
Value | Lives | ||||||||
Accounts receivable | $ | 175 | n/a | ||||||
Inventory | 78 | n/a | |||||||
Fixed assets | 5 | 3 | |||||||
Software | 110 | 3 | |||||||
Customer relationships | 265 | 7 | |||||||
Other intangibles | 389 | 3 | |||||||
Goodwill | 1,612 | Indefinite | |||||||
Leases receivable | 275 | n/a | |||||||
Accounts payable | (81 | ) | n/a | ||||||
Other liabilities | (11 | ) | n/a | ||||||
Net assets acquired | $ | 2,817 | |||||||
The gross amount of leases receivable in the table above was $0.3 million. Based on the nature and financial strength of the lessees, we expect to fully collect all amounts due pursuant to the lease agreements. | |||||||||
On February 1, 2013, we acquired substantially all of the assets and business of a small technology company that provided products and services for environmental monitoring, wireless remote control and monitoring, wireless sensor networks, and connected device consulting. We acquired the company’s assets to expand our technical capabilities and the markets we serve. Total consideration was $1.1 million, comprised of $0.2 million in cash and 73,587 shares of our common stock having a fair value at the time of issuance of $0.9 million and the assumption of certain liabilities. The issued shares of common stock are subject to various time-based selling restrictions. | |||||||||
The following table sets forth the allocation of the purchase price and a summary of estimated useful lives (dollars in thousands): | |||||||||
Fair | Useful | ||||||||
Value | Lives | ||||||||
Accounts receivable | $ | 35 | n/a | ||||||
Inventory | 55 | n/a | |||||||
Fixed assets | 25 | 5-Mar | |||||||
Software | 967 | 3.5 | |||||||
Trademarks | 32 | 5 | |||||||
Deferred revenue | (12 | ) | n/a | ||||||
Net assets acquired | $ | 1,102 | |||||||
The total purchase consideration for each of the 2013 acquisitions was allocated to identifiable assets purchased and liabilities assumed based on fair value. The fair values of intangible assets other than goodwill acquired in the two acquisitions were estimated using common valuation techniques. The fair value of acquired software was estimated using a cost approach based on assumptions of our historical software development costs. The fair value of trademarks was based on an income approach with key assumptions including estimated royalty rates to license the trademarks from a third party. The valuation of customer relationships utilized an income approach and discounted cash flows taking into consideration the number of customer relationships acquired and estimated customer turnover. Amortization expense related to the two acquisitions was less than $0.8 million from the date of their respective acquisitions. | |||||||||
No portion of the purchase price was allocated to goodwill in the February 2013 acquisition. The $1.6 million excess of the total consideration over the fair value of the net assets acquired in December 2013 was recorded as goodwill. Goodwill represents expected synergies between us and the acquired business and the value that the acquisition provides to support and widen our M2M platform capabilities in the supply chain and remote monitoring markets. Goodwill is expected to be fully deductible for tax purposes. |
DISCONTINUED_OPERATIONS
DISCONTINUED OPERATIONS | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||
DISCONTINUED OPERATIONS | NOTE C – DISCONTINUED OPERATIONS | ||||||||||||
In June 2014, we completed the sale and disposition of components of our business classified as discontinued operations. These components were classified as discontinued operations in June 2013, when we decided to exit certain businesses and related products that are not core to future business plans. These non-core businesses include BNI Solutions, Inc. (BNI), Digilog, Inc. and DCX Systems, Inc. These businesses were previously reported in our consolidated financial statements as a separate segment, “Other Services”. The related products and services include video conferencing hardware and installation of telecommunications equipment, all of which are unrelated to our core M2M communication products and services. | |||||||||||||
All assets and liabilities of the discontinued operations were reclassified into two line items, assets and liabilities of discontinued operations, and classified as current in the accompanying December 31, 2013 consolidated balance sheet. All revenue and expense of the discontinued operations were reclassified and presented in the accompanying consolidated statements of income and comprehensive income as results of discontinued operations, net of income taxes, after income from continuing operations, net of income tax benefit and before net income. Similarly, all cash flows of the discontinued operations were reclassified and presented in the accompanying consolidated statements of cash flows as cash flows from discontinued operations. | |||||||||||||
On June 30, 2014, we completed the sale of all of the capital stock of BNI and the disposition of the remaining discontinued operations. The following table presents the financial results of the discontinued operations (in thousands): | |||||||||||||
For the Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Revenues from discontinued operations | $ | 207 | $ | 1,163 | $ | 1,708 | |||||||
(Loss) income from discontinued operations before income taxes | (285 | ) | (1,567 | ) | 225 | ||||||||
Income tax (benefit) expense | (127 | ) | (187 | ) | 93 | ||||||||
(Loss) income from discontinued operations, net of income taxes | (158 | ) | (1,380 | ) | 132 | ||||||||
Loss on disposal of subsidiary included in discontinued operations | (309 | ) | — | — | |||||||||
Loss on dissolution of subsidiaries included in discontinued operations | (25 | ) | — | — | |||||||||
Net (loss) income from discontinued operations | $ | (492 | ) | $ | (1,380 | ) | $ | 132 | |||||
There are no assets or liabilities reported as discontinued operations as of December 31, 2014 due to our disposal of all discontinued operations. The following table summarizes the assets and liabilities reported as discontinued operations as of December 31, 2013 (in thousands): | |||||||||||||
December 31, | |||||||||||||
2013 | |||||||||||||
ASSETS | |||||||||||||
CURRENT ASSETS | |||||||||||||
Accounts receivable, less allowance for doubtful accounts of $600 | $ | 253 | |||||||||||
Inventory, net of reserve for obsolescence of $30 | 122 | ||||||||||||
Prepaid expenses and other current assets | 164 | ||||||||||||
TOTAL CURRENT ASSETS | 539 | ||||||||||||
Property and equipment, net | 9 | ||||||||||||
Other assets | 292 | ||||||||||||
TOTAL ASSETS OF DISCONTINUED OPERATIONS | $ | 840 | |||||||||||
LIABILITIES | |||||||||||||
CURRENT LIABILITIES | |||||||||||||
Accounts payable | $ | 10 | |||||||||||
Accrued expenses and other current liabilities | 171 | ||||||||||||
Deferred revenues | 26 | ||||||||||||
TOTAL LIABILITIES OF DISCONTINUED OPERATIONS | $ | 207 |
FAIR_VALE_MEASUREMENTS
FAIR VALE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2014 | |
Fair Value Disclosures [Abstract] | |
FAIR VALE MEASUREMENTS | NOTE D – FAIR VALE MEASUREMENTS |
We account for certain assets at fair value. The hierarchy below lists three levels of fair value based on the extent to which inputs used in measuring fair value are observable in the market. We categorize each of our fair value measurements in one of these three levels based on the lowest level input that is significant to the fair value measurement in its entirety. These levels are: | |
Level 1—Valuations based on quoted prices for identical assets and liabilities in active markets. | |
Level 2—Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. | |
Level 3—Valuations based on unobservable inputs reflecting our own assumptions, consistent with reasonably available assumptions made by other market participants. These valuations require significant judgment. | |
Assets measured at fair value on a recurring basis comprise only investments in short-term US Treasury Funds of $17.2 million and $17.6 million as of December 31, 2014 and 2013, respectively. The investments are included in cash and cash equivalents in the consolidated balance sheets and are categorized as Level 1 measurements in the fair value hierarchy. We do not have any liabilities measured at fair value on a recurring basis. |
ACCOUNTS_RECEIVABLE
ACCOUNTS RECEIVABLE | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Receivables [Abstract] | |||||||||
ACCOUNTS RECEIVABLE | NOTE E – ACCOUNTS RECEIVABLE | ||||||||
Accounts receivable and related allowance for doubtful accounts consisted of the following (in thousands): | |||||||||
As of December 31, | |||||||||
2014 | 2013 | ||||||||
Accounts receivable | $ | 12,997 | $ | 9,521 | |||||
Unbilled accounts receivable | 396 | 538 | |||||||
Allowance for doubtful accounts | (1,106 | ) | (674 | ) | |||||
$ | 12,287 | $ | 9,385 |
FINANCING_RECEIVABLES
FINANCING RECEIVABLES | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Financing Receivable, Net [Abstract] | |||||||||
FINANCING RECEIVABLES | NOTE F – FINANCING RECEIVABLES | ||||||||
We lease certain hardware devices to a small number of hardware distributors under sales-type leases expiring in various years through 2018. These receivables typically have terms ranging from two to four years and bear interest at 2%. Because the devices are not functional on our network without an active service agreement with us, we can de-activate devices for non-payment, and have therefore established a history of successfully collecting amounts due under the original payment terms without making concessions to customers. In addition, our long-standing relationships with these high credit quality customers support our assertion that revenues are fixed and determinable and probable of collection. Financing receivables also include leases acquired in a recent business combination. The acquired leases are also with high credit quality customers and have terms ranging from four to five years and bear interest at 7% to 8%. See Note B. | |||||||||
The components of lease receivables were as follows (in thousands): | |||||||||
As of December 31, | |||||||||
2014 | 2013 | ||||||||
Total minimum lease payments receivable | $ | 4,785 | $ | 4,338 | |||||
Unearned income | (206 | ) | (86 | ) | |||||
Present value of future minimum lease payments receivable | 4,579 | 4,252 | |||||||
Less current portion | (1,595 | ) | (1,223 | ) | |||||
Amounts due after one year | $ | 2,984 | $ | 3,029 | |||||
Future minimum lease payments to be received subsequent to December 31, 2014 are as follows (in thousands): | |||||||||
2015 | $ | 1,709 | |||||||
2016 | 1,535 | ||||||||
2017 | 1,120 | ||||||||
2018 | 416 | ||||||||
2019 | 5 | ||||||||
$ | 4,785 | ||||||||
Our financing receivables are comprised of a single portfolio segment because of the small number of customers and the similar nature of the sales-type leasing arrangements. We evaluate the credit quality of financing receivables based on a combination of factors, including, but not limited to, customer collection experience, economic conditions, the customer’s financial condition and known risk characteristics impacting the respective end users of our customers. | |||||||||
We utilize historical collection experience from our population of similar customers to establish any allowance for credit losses. Financing receivables are placed in non-accrual status after 60 days of nonpayment and written off only after we have exhausted all collection efforts. We have been successful collecting financing receivables and consider the credit quality of such arrangements to be good. We have not experienced any material credit losses for any period in the three years ended December 31, 2014. Customer payments are considered past due if a scheduled payment is not received within contractually agreed upon terms. As of December 31, 2014, there were no financing receivables past due more than 30 days. |
INVENTORY
INVENTORY | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
INVENTORY | NOTE G – INVENTORY | ||||||||
Inventory consisted of the following (in thousands): | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Raw materials | $ | 2,228 | $ | 1,503 | |||||
Finished goods | 7,579 | 7,922 | |||||||
Reserve for obsolescence | (1,397 | ) | (1,110 | ) | |||||
$ | 8,410 | $ | 8,315 |
PREPAID_EXPENSES_AND_OTHER_ASS
PREPAID EXPENSES AND OTHER ASSETS | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||
PREPAID EXPENSES AND OTHER ASSETS | NOTE H – PREPAID EXPENSES AND OTHER ASSETS | ||||||||
Prepaid expenses and other current assets consisted of the following (in thousands): | |||||||||
As of December 31, | |||||||||
2014 | 2013 | ||||||||
Prepaid expenses | $ | 1,358 | $ | 1,223 | |||||
Deferred costs | 578 | 488 | |||||||
Other | 393 | 122 | |||||||
$ | 2,329 | $ | 1,833 | ||||||
Other noncurrent assets consisted of the following (in thousands): | |||||||||
As of December 31, | |||||||||
2014 | 2013 | ||||||||
Prepaid carrier fees | $ | 1,860 | $ | 1,658 | |||||
Deferred activation fees | 310 | 168 | |||||||
Deferred financing fees | 260 | 104 | |||||||
Deposits | 155 | 168 | |||||||
Cost method investment | - | 200 | |||||||
$ | 2,585 | $ | 2,298 | ||||||
During 2011, we purchased and installed telecommunication infrastructure equipment and related equipment to improve the capacity and functionality of our devices operating on one of our carrier networks. To comply with the needs of one of our carriers and in exchange for more favorable carrier fees, we transferred the legal right to the equipment to the vendor. Thus, our existing agreement with this vendor was amended to provide for the new carrier fees and the legal transfer of the equipment. We accounted for this transaction as a non-monetary exchange. The $2.2 million cost of the equipment was determined to be its fair value and we recorded this transaction by transferring the equipment cost to prepaid carrier fees. The prepaid expense is being amortized in cost of sales for subscription and support revenue on a straight-line basis over the term of the agreement, which is ten years. | |||||||||
During 2014, we made a prepayment of $0.4 million to license additional network access on one of our carrier networks. This prepayment is also included in prepaid carrier fees and is being amortized in cost of sales for subscription and support revenue on a straight line basis over the term of the agreement, which is seven years. | |||||||||
The cost method investment represented a minority interest of less than 20% in a privately-held business. In February 2014, we sold the investment for net proceeds of $1.3 million resulting in a pre-tax gain of $1.1 million. |
PROPERTY_AND_EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
PROPERTY AND EQUIPMENT | NOTE I – PROPERTY AND EQUIPMENT | ||||||||
Property and equipment consisted of the following (in thousands): | |||||||||
As of December 31, | |||||||||
2014 | 2013 | ||||||||
Computer, network and other equipment | $ | 7,630 | $ | 4,196 | |||||
Furniture and fixtures | 746 | 600 | |||||||
Leasehold improvements | 328 | 208 | |||||||
Total property and equipment | 8,704 | 5,004 | |||||||
Accumulated depreciation and amortization | (3,815 | ) | (1,879 | ) | |||||
$ | 4,889 | $ | 3,125 | ||||||
Depreciation and amortization expense for property and equipment, including assets recorded as capital leases, was $1.6 million, $1.1 million, and $0.7 million for the years ended December 31, 2014, 2013, and 2012 respectively. Assets recorded as capital leases included $0.7 million in computers, network and other equipment and $0.4 million in accumulated depreciation and amortization at December 31, 2014. |
INTANGIBLE_ASSETS
INTANGIBLE ASSETS | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||
INTANGIBLE ASSETS | NOTE J – INTANGIBLE ASSETS | ||||||||||||||||||||||||||||
Intangible Assets Other Than Goodwill | |||||||||||||||||||||||||||||
Intangible assets other than goodwill are summarized as follows (dollars in thousands): | |||||||||||||||||||||||||||||
As of December 31, 2014 | As of December 31, 2013 | ||||||||||||||||||||||||||||
Remaining | Gross | Accumulated | Net Book | Gross | Accumulated | Net Book | |||||||||||||||||||||||
Useful Lives | Carrying | Amortization | Value | Carrying | Amortization | Value | |||||||||||||||||||||||
Amount | Amount | ||||||||||||||||||||||||||||
Purchased and developed software | 2.5 | $ | 11,176 | $ | (6,409 | ) | $ | 4,767 | $ | 8,836 | $ | (3,706 | ) | $ | 5,130 | ||||||||||||||
Software in development | n/a | 1,339 | - | 1,339 | 1,251 | - | 1,251 | ||||||||||||||||||||||
Total software | 12,515 | (6,409 | ) | 6,106 | 10,087 | (3,706 | ) | 6,381 | |||||||||||||||||||||
Licenses | 0.5 | 12,763 | (11,886 | ) | 877 | 12,646 | (11,415 | ) | 1,231 | ||||||||||||||||||||
Customer relationships | 8.5 | 8,287 | (1,359 | ) | 6,928 | 2,231 | (602 | ) | 1,629 | ||||||||||||||||||||
Technologies | 13.3 | 4,998 | (237 | ) | 4,761 | - | - | - | |||||||||||||||||||||
Patents and trademarks | 4.1 | 3,343 | (1,657 | ) | 1,686 | 2,846 | (1,172 | ) | 1,674 | ||||||||||||||||||||
Trade names | Indefinite | 3,632 | - | 3,632 | - | - | - | ||||||||||||||||||||||
Other | n/a | 1,279 | - | 1,279 | 1,083 | - | 1,083 | ||||||||||||||||||||||
Total other intangible assets | 34,302 | (15,139 | ) | 19,163 | 18,806 | (13,189 | ) | 5,617 | |||||||||||||||||||||
$ | 46,817 | $ | (21,548 | ) | $ | 25,269 | $ | 28,893 | $ | (16,895 | ) | $ | 11,998 | ||||||||||||||||
Remaining useful lives in the preceding table were calculated on a weighted average basis as of December 31, 2014. We did not incur costs to renew or extend the term of acquired intangible assets during the year ended December 31, 2014. Amortization of intangible assets for the years ended December 31, 2014, 2013 and 2012 was $4.6 million, $3.8 million, and $2.6 million, respectively. In addition, $0.3 million, $0.2 million and $0.2 million of amortization of intangible assets is recorded in cost of subscription and support revenue in the accompanying consolidated statement of income and comprehensive income for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||||||||||||||||||
At December 31, 2014 and 2013, we have capitalized approximately $2.0 million and $1.8 million, respectively of internally generated software development costs. Amortization of capitalized software development costs for the years ended December 31, 2014, 2013 and 2012 was $1.4 million, $1.1 million and $1.0 million, respectively included in total amortization disclosed above. | |||||||||||||||||||||||||||||
We expect amortization expense for the next five years to be as follows based on intangible assets as of December 31, 2014 (in thousands): | |||||||||||||||||||||||||||||
2015 | $ | 4,621 | |||||||||||||||||||||||||||
2016 | 3,241 | ||||||||||||||||||||||||||||
2017 | 2,050 | ||||||||||||||||||||||||||||
2018 | 1,516 | ||||||||||||||||||||||||||||
2019 | 1,253 | ||||||||||||||||||||||||||||
Thereafter | 6,338 | ||||||||||||||||||||||||||||
$ | 19,019 | ||||||||||||||||||||||||||||
Goodwill | |||||||||||||||||||||||||||||
The carrying amount of goodwill for each of the two years for the period ended December 31, 2014 is as follows (in thousands): | |||||||||||||||||||||||||||||
1-Jan-13 | $ | 25,418 | |||||||||||||||||||||||||||
Acquisition | 1,523 | ||||||||||||||||||||||||||||
31-Dec-13 | 26,941 | ||||||||||||||||||||||||||||
Measurement period adjustment | 89 | ||||||||||||||||||||||||||||
Acquisition | 17,518 | ||||||||||||||||||||||||||||
31-Dec-14 | $ | 44,548 | |||||||||||||||||||||||||||
Acquisition related goodwill additions were the result of the Omnilink merger. See Note B. | |||||||||||||||||||||||||||||
The measurement period adjustment is related to lease receivables on the opening balance sheet of our December 2013 acquisition with no effect on the statement of income and an immaterial effect on the associated balance sheet captions. | |||||||||||||||||||||||||||||
Our gross goodwill balance as of December 31, 2014 and 2013 was $48.9 million and $31.3 million, respectively. Accumulated impairment losses were $4.4 million as of both December 31, 2014 and 2013. We have not recorded any goodwill impairment losses in continuing operations for the years ended December 31, 2014 and 2013. |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
INCOME TAXES | NOTE K – INCOME TAXES | ||||||||||||
The provision (benefit) for income taxes consisted of the following (in thousands): | |||||||||||||
For The Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Current: | |||||||||||||
Federal | $ | 73 | $ | (183 | ) | $ | (19 | ) | |||||
State | 38 | 22 | 30 | ||||||||||
Reserve | (57 | ) | (80 | ) | (41 | ) | |||||||
Deferred: | |||||||||||||
Federal | 546 | (2,033 | ) | (4,502 | ) | ||||||||
State | (181 | ) | (95 | ) | (370 | ) | |||||||
$ | 419 | $ | (2,369 | ) | $ | (4,902 | ) | ||||||
Income taxes recorded by us differ from the amounts computed by applying the statutory U.S. federal income tax rate to income before income taxes. The following schedule reconciles income tax provision (benefit) at the statutory rate and the actual income tax expense as reflected in the consolidated statements of income and comprehensive income for the respective periods (in thousands): | |||||||||||||
For The Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Income tax expense (benefit) computed at | |||||||||||||
U.S. corporate tax rate of 34% | $ | 903 | $ | (137 | ) | $ | 725 | ||||||
Adjustments attributable to: | |||||||||||||
Deferred balance adjustments | - | (1,893 | ) | - | |||||||||
Valuation allowance | 1,077 | - | (5,545 | ) | |||||||||
Income tax payable adjustments | - | (71 | ) | - | |||||||||
State income tax | 24 | (73 | ) | 24 | |||||||||
Reserve for uncertain tax positions | (57 | ) | (80 | ) | (41 | ) | |||||||
Non-deductible expenses | (1,575 | ) | (97 | ) | (56 | ) | |||||||
Other | 47 | (18 | ) | (9 | ) | ||||||||
$ | 419 | $ | (2,369 | ) | $ | (4,902 | ) | ||||||
During the year ended December 31, 2013, we recorded a deferred income tax benefit of $2.4 million primarily consisting of a tax accounting method change allowing a one-time acceleration and catch-up of depreciation and amortization. The tax accounting method change related to our 2003 acquisition of our former joint venture partner’s interest in our Cellemetry LLC subsidiary. | |||||||||||||
During the year ended December 31, 2012, we determined that it would be more likely than not that the cumulative federal net operating losses and certain other deferred tax assets would be recoverable. This determination was based on our sustained profitable operating performance over the three years ending December 31, 2012 and continued expectations for future income. Accordingly, we released our valuation allowance against these items. During the year ended December 31, 2014, we determined that it would be more likely than not, that certain additional state net operating losses would also be recoverable. We continue to maintain a valuation allowance against certain other deferred tax assets that we determined we will likely not utilize before expiration. Deferred tax assets still subject to a valuation allowance include certain state net operating losses, tax credits, capital loss carryforward and foreign net operating losses. As a result of the release of the valuation allowances we recognized a deferred tax benefit of $0.2 million and $4.8 million during the years ended December 31, 2014 and 2012, respectively. Additionally, the valuation allowance increased by $1.3 million due to a capital loss carryforward for the year ended December 31, 2014. | |||||||||||||
The components of our net deferred tax assets and liabilities are as follows (in thousands): | |||||||||||||
As of December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Current deferred tax asset: | |||||||||||||
Inventories | $ | 549 | $ | 438 | |||||||||
Accruals | 417 | 145 | |||||||||||
Federal and state net operating loss carryforwards | 2,380 | 2,463 | |||||||||||
Other | 495 | 318 | |||||||||||
Valuation allowance | (680 | ) | (622 | ) | |||||||||
3,161 | 2,742 | ||||||||||||
Non-current deferred tax asset | |||||||||||||
Equity-based compensation | 2,030 | 1,357 | |||||||||||
Difference between book and tax basis of property | (305 | ) | (111 | ) | |||||||||
Intangible assets | (3,698 | ) | 621 | ||||||||||
Federal, state and foreign net operating loss carry forwards | 8,694 | 1,763 | |||||||||||
Tax credit carry forward | 1,323 | 1,251 | |||||||||||
Valuation allowance | (2,428 | ) | (923 | ) | |||||||||
5,616 | 3,958 | ||||||||||||
Net deferred tax assets | $ | 8,777 | $ | 6,700 | |||||||||
The increase in deferred tax assets related to federal and state net operating loss carry forwards is primarily due to acquiring $22.3 million in net operating losses in our merger with Omnilink on May 5, 2014. Net operating loss carryforwards available at December 31, 2014; expire as follows (in thousands): | |||||||||||||
Year of | |||||||||||||
Amount | Expiration | ||||||||||||
Federal net operating losses | $ | 25,000 | 2023-2035 | ||||||||||
State net operating losses | 63,000 | 2015-2035 | |||||||||||
Alternative minimum tax credit carryforward | 810 | n/a | |||||||||||
General business credit carryforward | 510 | 2018-2031 | |||||||||||
We file U.S., state and foreign income tax returns in jurisdictions with varying statutes of limitation. The 2002 through 2013 tax years generally remain subject to examination by federal and most state tax authorities. However, certain returns from years as early as 1998, in which net operating losses were generated, remain open for examination by the tax authorities. | |||||||||||||
We evaluate liabilities for uncertain tax positions and, as of December 31, 2014, we recorded a net decrease to the liability for unrecognized tax benefits of $0.1 million in income tax benefit. This amount is comprised of tax benefits recognized on the settlement of certain prior period state tax matters and the corresponding accrual of estimated penalties and interest. Our total unrecognized tax benefits as of December 31, 2014 were approximately $0.1 million including estimated penalties and interest. We anticipate a decrease to the balance of total unrecognized tax benefits of less than $0.1 million within the next 12 months. Our effective tax rate will be favorably affected if we are able to recognize these tax benefits. | |||||||||||||
The following table summarizes the activity related to our unrecognized tax benefits, net of federal benefit, and excludes interest and penalties (in thousands): | |||||||||||||
2014 | 2013 | ||||||||||||
Balance at January 1 | $ | 102 | $ | 159 | |||||||||
Decreases as a result of positions taken during prior periods | (48 | ) | (57 | ) | |||||||||
Balance at December 31 | $ | 54 | $ | 102 |
OTHER_LIABILITIES
OTHER LIABILITIES | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Other Liabilities Disclosure [Abstract] | |||||||||
OTHER LIABILITIES | NOTE L – OTHER LIABILITIES | ||||||||
Other current liabilities consisted of the following (in thousands): | |||||||||
As of December 31, | |||||||||
2014 | 2013 | ||||||||
Payroll related | $ | 696 | $ | 1,269 | |||||
Accrued expenses | 1,775 | 735 | |||||||
$ | 2,471 | $ | 2,004 | ||||||
Other noncurrent liabilities consisted of the following (in thousands): | |||||||||
As of December 31, | |||||||||
2014 | 2013 | ||||||||
Deferred revenue | $ | 414 | $ | 560 | |||||
Deferred rent | 932 | 1,133 | |||||||
$ | 1,346 | $ | 1,693 |
DEBT
DEBT | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Debt Disclosure [Abstract] | |||||||||
DEBT | NOTE M – DEBT | ||||||||
Debt consisted of the following (dollars in thousands): | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Note payable to Silicon Valley Bank, with interest at our option of prime rate or LIBOR rate plus margin. | $ | 23,125 | $ | - | |||||
Seller financed note payable, with interest at 4.25%, monthly payments of principal and interest, secured by equipment, due September 2015 | 476 | 1,108 | |||||||
23,601 | 1,108 | ||||||||
Less current portion of long-term debt | 4,251 | 633 | |||||||
Noncurrent portion of long-term debt | $ | 19,350 | $ | 475 | |||||
On May 5, 2014, we entered into a Second Amended and Restated Loan and Security Agreement (the “Loan Agreement”) with Silicon Valley Bank in order to, among other things, establish a term loan of $25.0 million and a revolving line of credit of up to $5.0 million (collectively, the “Credit Facility”). As of December 31, 2014 there was $5.0 million available under the revolving line of credit. The proceeds from the term loan were used to finance the Omnilink merger. See Note B – Merger and Acquisitions. | |||||||||
The maturity date of the loan is May 5, 2019 with regular required quarterly principal payments which began June 30, 2014 as set forth in the table below. The remaining principal of $5 million will be due at maturity if not otherwise repaid earlier by way of voluntary Permitted Prepayments or by mandatory Excess Cash Flow Recapture Payments (as defined in the Loan Agreement). | |||||||||
Loan Agreement Principal Repayment Schedule | |||||||||
Quarterly | Annually | ||||||||
June 2014 - March 2015 | $ | 625,000 | $ | 2,500,000 | |||||
June 2015 - March 2016 | 937,500 | 3,750,000 | |||||||
June 2016 - March 2017 | 937,500 | 3,750,000 | |||||||
June 2017 - March 2018 | 1,250,000 | 5,000,000 | |||||||
June 2018 - March 2019 | 1,250,000 | 5,000,000 | |||||||
Outstanding balance due May 2019 | - | 5,000,000 | |||||||
The interest rate applicable to amounts drawn pursuant to the Loan Agreement is currently 2.75% and is, at our option, determined by reference to the prime rate or LIBOR rate plus a margin established in the Loan Agreement. The Loan Agreement includes customary representations and warranties as well as affirmative and negative covenants. | |||||||||
Our obligations under the Credit Facility are secured by substantially all of our assets and the assets of our subsidiaries. In addition, we are required to meet certain financial and other restrictive covenants customary with this type of facility, including maintaining a senior leverage ratio, a fixed charge coverage ratio and minimum liquidity availability. We are also prohibited from entering into any debt agreements senior to the Credit Facility and paying dividends. The Amended Loan Agreement contains customary events of default. If a default occurs and is not cured within the applicable cure period or is not waived, any outstanding obligations under the Credit Facility may be accelerated. We were in compliance with all of the Bank’s financial covenants at December 31, 2014. | |||||||||
In connection with our acquisition of a small technology business in October 2012, we entered into a Promissory Note of $1.9 million payable to the sellers of the business. This Promissory Note is subordinate to the Credit Facility, bears interest at the greater of prime plus 1% or 4.25% (4.25% as of December 31, 2014) and is payable in monthly installments through September 2015. As of December 31, 2014, the balance outstanding on the Promissory Note was $0.5 million, all classified as current. | |||||||||
The future maturities are summarized as follows (in thousands). | |||||||||
2015 | $ | 4,251 | |||||||
2016 | 3,750 | ||||||||
2017 | 4,688 | ||||||||
2018 | 5,000 | ||||||||
2019 | 5,912 | ||||||||
$ | 23,601 |
LEASES_COMMITMENTS_AND_CONTING
LEASES, COMMITMENTS AND CONTINGENCIES | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
LEASES, COMMITMENTS AND CONTINGENCIES | NOTE N – LEASES, COMMITMENTS AND CONTINGENCIES | ||||
Capital Leases | |||||
We record leases in which we have substantially all of the benefits and risks of ownership as capital leases and all other leases as operating leases. For leases determined to be capital leases, we record the assets held under capital lease and related obligations at lesser of the present value of aggregate future minimum lease payments or the fair value of the assets held under capital lease. We amortize the underlying assets over the expected life of the assets if we will retain title to the assets at the end of the lease term; otherwise we amortize the asset over the term of the lease. | |||||
During 2013, we entered into a sale leaseback arrangement for computer and network equipment having a value of $0.7 million and expiring in 2015. The arrangement was recorded as a capital lease because we retained the risks and benefits of the underlying assets. Future minimum capital lease payments and the present value of the net minimum lease payments for all capital leases as of December 31, 2014 are as follows (in thousands): | |||||
Total minimum lease payments | $ | 158 | |||
Less amounts representing interest | (10 | ) | |||
Present value of future minimum lease payments, all current | $ | 148 | |||
Operating Leases | |||||
We lease certain property and equipment under non-cancelable operating leases. The leases expire at various dates through 2022. Certain of our leases for office space have annual periods of free rent and escalation clauses of up to 2.5% or $1.00 per square foot. The leases also have options to renew for 60-65 months at the end of their terms. Rent expense, including short-term leases, amounted to approximately $1.6 million, $1.3 million and $1.1 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||
Future minimum lease payments under such non-cancelable operating leases subsequent to December 31, 2014, are as follows (in thousands): | |||||
Year Ending December 31, | |||||
2015 | $ | 1,514 | |||
2016 | 1,581 | ||||
2017 | 1,516 | ||||
2018 | 1,395 | ||||
2019 | 1,128 | ||||
Thereafter | 3,020 | ||||
$ | 10,154 | ||||
Purchase Commitments | |||||
We utilize several third-party contract manufacturers to manufacture our products and perform testing of finished products. These contract manufacturers acquire components and build products based on non- cancellable purchase commitments, which typically cover periods less than 12 months. Consistent with industry practice, we acquire components through purchase orders based on projected demand. For the year ended December 31, 2014, we had $5.4 million in open purchase commitments. |
EQUITYBASED_COMPENSATION
EQUITY-BASED COMPENSATION | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||
EQUITY-BASED COMPENSATION | NOTE O – EQUITY-BASED COMPENSATION | ||||||||||||
Compensation cost is recognized for all equity-based payments granted and is based on the grant-date fair value estimated using the Black-Scholes option pricing model and a lattice model for awards with market conditions. Our determination of fair value of equity-based payment awards on the date of grant using the option-pricing model is affected by our share price and our valuation assumptions. These primary variables include our expected share price volatility over the estimated life of the awards and actual and projected exercise behaviors. | |||||||||||||
As employees vest in their awards, compensation cost is recognized over the requisite service period with an offsetting credit to additional paid-in capital. Equity-based compensation expense is based on awards ultimately expected to vest and has been reduced for estimated forfeitures. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures are expected to differ from those estimates. For the years ended December 31, 2014, 2013 and 2012, equity-based compensation expense was $2.6 million, $1.9 million and $1.4 million, respectively. | |||||||||||||
We have outstanding awards granted pursuant to three shareholder approved equity-based compensation plans: the Long Term Incentive Plan (1999 Plan) the 2006 Long Term Incentive Plan (2006 Plan) and the 2014 Stock and Incentive Plan (2014 Plan). The 1999 Plan was terminated and replaced by the 2006 Plan. The 2006 Plan was terminated and replaced by the 2014 Plan. Equity-based awards outstanding under the 1999 and 2006 Plan remain in effect, but no new awards may be granted under those plans. A total of 6.3 million shares of our common stock have been reserved for issuance through the plans. Stock options and equity-settled stock appreciation rights (SARs) are generally granted with an exercise price equal to the market price of our common stock on the date of grant; the awards generally vest over four years of continuous service and have a contractual term of ten years. Grants of non-vested restricted stock awards to employees generally vest over four years of continuous service and grants to non-employee directors generally vest over one year. Certain awards provide for accelerated vesting if there is a change in control (as defined in the plans). | |||||||||||||
The recipient of a SAR is generally entitled to receive, upon exercise and without payment to us (but subject to required tax withholdings), that number of shares having an aggregate fair market value as of the date of exercise multiplied by an amount equal to the excess of the fair market value per share on the date of exercise over the fair market value per share at the date of the grant. | |||||||||||||
The fair value of stock options and SARs is estimated on the date of grant using the Black-Scholes option pricing model. Certain grants to executives require achievement of market conditions before the grant may be exercised. The fair value of awards with market exercise conditions is estimated on the date of grant using a lattice model with a Monte Carlo simulation. The fair value of all awards is amortized on a straight-line basis over the requisite service periods of the awards, which is generally the vesting period of four years. | |||||||||||||
Use of a valuation model requires us to make certain assumptions with respect to selected model inputs. Changes in these input variables would affect the amount of expense associated with equity-based compensation. Expected volatility is based on the historical volatility of our common shares over the expected term of the stock option or SAR. Expected term is based on historical exercise and employee termination data and represents the period of time that options and SARs are expected to be outstanding. The risk-free interest rate is based on U.S. Treasury Daily Treasury Yield Curve Rates corresponding to the expected life assumed at the date of grant. Dividend yield is zero as there are no payments of dividends made or expected. The fair value of non-vested restricted stock awards is based on the fair market value of the shares awarded at the date of grant multiplied by the number of shares awarded. | |||||||||||||
The weighted average assumptions to estimate the grant date fair value of stock options and SARs, including those with market conditions, are summarized as follows: | |||||||||||||
For The Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Volatility | 57.8 | % | 67.5 | % | 66.6 | % | |||||||
Expected term (in years) | 6.2 | 6.3 | 6.3 | ||||||||||
Risk-free rate | 1.88 | % | 1.52 | % | 1.1 | % | |||||||
Dividend yield | 0 | % | 0 | % | 0 | % | |||||||
A summary of stock option and SAR activity as of and for the year ended December 31, 2014 follows (shares in thousands): | |||||||||||||
Weighted | |||||||||||||
Average | |||||||||||||
Shares | Exercise Price | ||||||||||||
Outstanding, January 1, 2014 | 1,437 | $ | 7.77 | ||||||||||
Granted | 332 | 11.56 | |||||||||||
Exercised | (270 | ) | 6.69 | ||||||||||
Forfeited or expired | (167 | ) | 7.85 | ||||||||||
Outstanding, at December 31, 2014 | 1,332 | 8.93 | |||||||||||
Exercisable at December 31, 2014 | 727 | 7.06 | |||||||||||
As of December 31, 2014, stock options and SARs are further summarized as follows (shares and dollars in thousands): | |||||||||||||
Outstanding | Exercisable | ||||||||||||
Total shares | 1,332 | 727 | |||||||||||
Aggregate intrinsic value | $ | 4,264 | $ | 3,601 | |||||||||
Weighted-average remaining | |||||||||||||
contractual term (years) | 6.6 | 4.9 | |||||||||||
As of December 31, 2014, a total of 418,000 stock options and SARs with market-based exercise conditions are outstanding, of which 260,000 are vested and exercisable subject to the market conditions. | |||||||||||||
The weighted average grant-date fair value of stock options and SARs granted during the years ended December 31, 2014, 2013 and 2012 was $6.45, $6.28 and $5.99, respectively. | |||||||||||||
Stock option and SAR exercise data is summarized as follows (in thousands): | |||||||||||||
For the years ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Options and SARs exercised | 270 | 433 | 638 | ||||||||||
Net shares issued | 214 | 199 | 336 | ||||||||||
Total intrinsic value exercised | $ | 1,533 | $ | 2,552 | $ | 3,967 | |||||||
Cash received | 931 | 338 | 560 | ||||||||||
Recognized tax benefit | 1,300 | 2,208 | 2,619 | ||||||||||
Non-vested restricted stock award activity for the year ended December 31, 2014 is summarized as follows (shares in thousands): | |||||||||||||
Weighted | |||||||||||||
Average Grant | |||||||||||||
Shares | Date Fair Value | ||||||||||||
Outstanding, as of January 1, 2014 | 190 | $ | 12.09 | ||||||||||
Granted | 435 | 10.95 | |||||||||||
Vested | (95 | ) | 11.57 | ||||||||||
Forfeited | (42 | ) | 11.74 | ||||||||||
Outstanding, as of December 31, 2014 | 488 | 11.19 | |||||||||||
The total vest date fair value of non-vested restricted shares that vested during the years ended December 31, 2014, 2013 and 2012 was $1.1 million, $0.5 million and $0.5 million, respectively. | |||||||||||||
As of December 31, 2014, 2.4 million shares remain available for grant under the 2014 Plan. Shares available from prior plans were transferred to the successor plan. No shares remain available under any prior plans. Total unrecognized compensation costs related to all non-vested equity-based compensation arrangements was $7.0 million as of December 31, 2014 and is expected to be recognized over a weighted-average period of 1.5 years. |
OTHER_INCOME_EXPENSE_NET
OTHER (INCOME) EXPENSE, NET | 12 Months Ended |
Dec. 31, 2014 | |
Other Income and Expenses [Abstract] | |
OTHER (INCOME) EXPENSE, NET | NOTE P – OTHER (INCOME) EXPENSE, NET |
Other (income) expense, net includes $1.1 million for the year ended December 31, 2014 for a pre-tax gain on the sale of a cost method investment in a privately-held business. The carrying value of our investment was $0.2 million and we sold it for proceeds of $1.3 million. See Note H. | |
In 2013, we completed the sale of a cost method investment in a privately-held business based in the United Kingdom. The carrying value of our investment was $0.3 million and we sold it for net proceeds of $0.6 million resulting in a gain of $0.3 million. See Note H. | |
During the year ended December 31, 2012, other (income) expense, net includes $0.5 million for additional financing costs related to assets previously transferred to a vendor in a nonmonetary exchange. |
SIGNIFICANT_CUSTOMER_CONCENTRA
SIGNIFICANT CUSTOMER, CONCENTRATION OF CREDIT RISK AND RELATED PARTIES | 12 Months Ended |
Dec. 31, 2014 | |
Significant Customer Concentration Of Credit Risk And Related Parties [Abstract] | |
SIGNIFICANT CUSTOMER, CONCENTRATION OF CREDIT RISK AND RELATED PARTIES | NOTE Q – SIGNIFICANT CUSTOMER, CONCENTRATION OF CREDIT RISK AND RELATED PARTIES |
We have a hardware customer who accounted for 14.4% and 11.1%, or $13.5 million and $8.7 million, of our consolidated revenue for the years ended December 31, 2014 and 2013, respectively. Accounts receivable from this customer was $1.6 million and $2.7 million for the years ended December 31, 2014 and 2013, respectively. No customers exceeded 10% of consolidated revenue for the year ended December 31, 2012. | |
We had four suppliers from which our purchases were 72% of our hardware cost of sales, and four suppliers from which our purchases were 68% of our service cost of sales for the year ended December 31, 2014. Our accounts payable to these suppliers totaled $5.3 million at December 31, 2014. | |
We had three suppliers from which our purchases were 72% of our hardware cost of sales and two suppliers from which our purchases were 55% of our service cost of sales for the year ended December 31, 2013. Our accounts payable to these suppliers totaled $4.8 million at December 31, 2013. | |
We had two suppliers from which our purchases were 49% of our hardware cost of sales and two suppliers from which our purchases were 51% of our service cost of sales for the year ended December 31, 2012. Our accounts payable to these suppliers totaled $3.2 million at December 31, 2012. | |
Related party transactions include The Ryan Law Group. Mr. Andrew Ryan is a member of our Board of Directors and principal partner of The Ryan Law Group. During the years ended December 31, 2014, 2013 and 2012, The Ryan Law Group and another law firm in which Mr. Ryan was formerly a partner invoiced us legal fees of $290,000, $224,000 and $138,000, respectively. Our accounts payable to these law firms was $41,000 and $22,000 at December 31, 2014, and 2013, respectively. In addition, a firm affiliated with a family member of our chairman and chief executive officer has provided marketing services to us. Total fees invoiced were $80,000 annually for each of the years ended December 31, 2014, 2013 and 2012. |
BENEFIT_PLAN
BENEFIT PLAN | 12 Months Ended |
Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |
BENEFIT PLAN | NOTE R – BENEFIT PLAN |
We sponsor a 401(k) savings and investment plan that covers all eligible employees of the Company and our subsidiaries. Employees are eligible for participation beginning on their first day of employment. We contribute an amount equal to 50% of the portion of the employee’s elective deferral contribution that do not exceed 6% of the employee’s total compensation for each payroll period in which an elective deferral is made. Our contributions are made in cash on a monthly basis. Our matching contributions are vested over a three year period at a rate of 33% per year. For the years ended December 31, 2014, 2013, and 2012, we recorded expense of $0.3 million, $0.3 million, and $0.2 million, respectively. |
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
EARNINGS PER SHARE | NOTE S – EARNINGS PER SHARE | ||||||||||||
Basic earnings per common share available to common shareholders is based on the weighted-average number of common shares outstanding excluding the dilutive impact of common stock equivalents. We compute diluted net earnings per share on the weighted-average number of common shares outstanding and dilutive potential common shares, such as dilutive outstanding equity-based compensation. | |||||||||||||
The numerator in calculating both basic and diluted income per common share for each period is the same as net income. The denominator is based on the number of common shares as shown in the following table (in thousands, except per share data): | |||||||||||||
For the years ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Income from continuing operations | $ | 2,236 | $ | 1,965 | $ | 7,033 | |||||||
(Loss) income from discontinued operations | (492 | ) | (1,380 | ) | 132 | ||||||||
Net income | $ | 1,744 | $ | 585 | $ | 7,165 | |||||||
Common Shares: | |||||||||||||
Weighted average common shares outstanding | 18,922 | 18,413 | 15,412 | ||||||||||
Dilutive effect of common stock equivalents | 346 | 537 | 602 | ||||||||||
Total | 19,268 | 18,950 | 16,014 | ||||||||||
Basic earnings per share: | |||||||||||||
Income from continuing operations | $ | 0.12 | $ | 0.11 | $ | 0.46 | |||||||
(Loss) income from discontinued operations | (0.03 | ) | (0.08 | ) | 0 | ||||||||
Net income | $ | 0.09 | $ | 0.03 | $ | 0.46 | |||||||
Diluted earnings per share: | |||||||||||||
Income from continuing operations | $ | 0.12 | $ | 0.1 | $ | 0.44 | |||||||
(Loss) income from discontinued operations | (0.03 | ) | (0.07 | ) | 0.01 | ||||||||
Net income | $ | 0.09 | $ | 0.03 | $ | 0.45 | |||||||
As of December 31, 2014, 2013 and 2012, 0.8 million, 0.5 million and 0.4 million, respectively of stock options, SARs and warrants were excluded from the computation of diluted earnings per share as their effect was anti-dilutive. |
SEGMENT_INFORMATION
SEGMENT INFORMATION | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Segment Reporting [Abstract] | |||||||||||||
SEGMENT INFORMATION | NOTE T – SEGMENT INFORMATION | ||||||||||||
Revenue generated from customers based outside of the U.S. is summarized as follows: | |||||||||||||
For the years ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
U.S. | 94 | % | 94 | % | 88 | % | |||||||
Canada | 4 | % | 4 | % | 10 | % | |||||||
Others | 2 | % | 2 | % | 2 | % | |||||||
100 | % | 100 | % | 100 | % | ||||||||
Substantially all revenue generated from outside the U.S. and Canada is invoiced and collected in U.S. dollars. As of December 31, 2014 and 2013, long-lived assets located outside of the U.S. were less than 1% of total assets. | |||||||||||||
Following our decision to exit non-core businesses and their subsequent reclassification to discontinued operations in 2013, we reevaluated our reportable operating segments. Based on the financial data reviewed by the chief operating decision maker, our chief executive officer, we have concluded that all of our continuing operations are and continue to be a single reportable segment. See Note C. |
UNAUDITED_SELECTED_QUARTERLY_D
UNAUDITED SELECTED QUARTERLY DATA | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
UNAUDITED SELECTED QUARTERLY DATA | NOTE U – UNAUDITED SELECTED QUARTERLY DATA | ||||||||||||||||
The following tables summarize selected unaudited financial data for each quarter of the years ended December 31, 2014 and 2013 (in thousands except share data): | |||||||||||||||||
For The Three Months Ended | |||||||||||||||||
March 31, | June 30, | September 30, | December 31, | ||||||||||||||
2014 | 2014 | 2014 | 2014 | ||||||||||||||
Net revenues | $ | 20,773 | $ | 22,578 | $ | 25,663 | $ | 24,855 | |||||||||
Gross profit | 9,840 | 10,722 | 11,287 | 11,415 | |||||||||||||
Operating earnings (loss) | 662 | (252 | ) | 802 | 903 | ||||||||||||
Income (loss) from continuing operations before income taxes | 1,741 | (444 | ) | 621 | 737 | ||||||||||||
Income tax expense (benefit) | 595 | (670 | ) | 358 | 136 | ||||||||||||
Income from continuing operations, net of income tax benefit | 1,146 | 226 | 263 | 601 | |||||||||||||
Loss from discontinued operations | (56 | ) | (436 | ) | - | - | |||||||||||
Net income (loss) | 1,090 | (210 | ) | 263 | 601 | ||||||||||||
Basic earnings (loss) per share: | |||||||||||||||||
Income from continuing operations | $ | 0.06 | $ | 0.01 | $ | 0.01 | $ | 0.03 | |||||||||
Income (loss) from discontinued operations | 0 | (0.02 | ) | 0 | 0 | ||||||||||||
Net income (loss) | $ | 0.06 | $ | (0.01 | ) | $ | 0.01 | $ | 0.03 | ||||||||
Diluted earnings (loss) per share | |||||||||||||||||
Income from continuing operations | $ | 0.06 | $ | 0.01 | $ | 0.01 | $ | 0.03 | |||||||||
Income (loss) from discontinued operations | 0 | (0.02 | ) | 0 | 0 | ||||||||||||
Net income (loss) | $ | 0.06 | $ | (0.01 | ) | $ | 0.01 | $ | 0.03 | ||||||||
For The Three Months Ended | |||||||||||||||||
March 31, | June 30, | September 30, | December 31, | ||||||||||||||
2013 | 2013 | 2013 | 2013 | ||||||||||||||
Net revenues | $ | 16,437 | $ | 17,271 | $ | 21,951 | $ | 22,173 | |||||||||
Gross profit | 6,905 | 6,666 | 8,981 | 9,588 | |||||||||||||
Operating earnings (loss) | 45 | (1,983 | ) | 645 | 874 | ||||||||||||
(Loss) income from continuing operations before income taxes | (37 | ) | (2,042 | ) | 540 | 1,135 | |||||||||||
Income tax (benefit) expense | (65 | ) | (2,454 | ) | (35 | ) | 185 | ||||||||||
Income from continuing operations, net of income tax benefit | 28 | 412 | 575 | 950 | |||||||||||||
(Loss) income from discontinued operations | (17 | ) | (1,424 | ) | - | 61 | |||||||||||
Net income (loss) | 11 | (1,012 | ) | 575 | 1,011 | ||||||||||||
Basic earnings (loss) per share: | |||||||||||||||||
Income from continuing operations | $ | 0 | $ | 0.02 | $ | 0.03 | $ | 0.05 | |||||||||
Income (loss) from discontinued operations | 0 | (0.07 | ) | 0 | 0 | ||||||||||||
Net income (loss) | $ | 0 | $ | (0.05 | ) | $ | 0.03 | $ | 0.05 | ||||||||
Diluted earnings (loss) per share | |||||||||||||||||
Income from continuing operations | $ | 0 | $ | 0.02 | $ | 0.03 | $ | 0.05 | |||||||||
Income (loss) from discontinued operations | 0 | (0.08 | ) | 0 | 0 | ||||||||||||
Net income (loss) | $ | 0 | $ | (0.06 | ) | $ | 0.03 | $ | 0.05 | ||||||||
As described in Note B – Merger and Acquisitions, we have completed various business acquisitions during 2013 and 2014 affecting results of operations. | |||||||||||||||||
As described in Note K – Income Taxes, we recorded a significant income tax benefit during the three months ended June 30, 2013 for a tax accounting method change allowing a one-time acceleration and catch-up of depreciation and amortization. The tax accounting method change related to our 2003 acquisition of our former joint venture partner’s interest in our Cellemetry LLC subsidiary. We also released of a portion of the valuation allowance against federal net operating losses and certain other deferred tax assets during the three months ended September 30, 2012. | |||||||||||||||||
The sum of earnings per share for the four quarters may differ from the annual amounts due to the required method for calculating the weighted average shares for the respective periods. |
VALUATION_AND_QUALIFYING_ACCOU
VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | ||||||||||||||||||
VALUATION AND QUALIFYING ACCOUNTS | VALUATION AND QUALIFYING ACCOUNTS | |||||||||||||||||
Years ended December 31, 2014, 2013, 2012 | ||||||||||||||||||
(in thousands) | ||||||||||||||||||
Balance at | Additions | |||||||||||||||||
beginning of | charged to | Balance at | ||||||||||||||||
Description | Period | expense | Deductions | end of Period | ||||||||||||||
Year ended December 31, 2014: | ||||||||||||||||||
Accounts and financing receivables | ||||||||||||||||||
Allowance for uncollectible accounts, continuing operations | $ | 674 | $ | 392 | 40 | (a) | $ | 1,106 | ||||||||||
Allowance for uncollectible accounts, discontinued operations | 600 | - | (600 | ) | (a) | - | ||||||||||||
Inventory | ||||||||||||||||||
Reserve for obsolescence, continuing operations | 1,110 | 544 | (257 | ) | 1,397 | |||||||||||||
Reserve for obsolescence, discontinued operations | 30 | - | (30 | ) | - | |||||||||||||
Deferred tax assets | ||||||||||||||||||
Valuation allowance, continuing operations | 1,545 | - | 1,563 | 3,108 | ||||||||||||||
Valuation allowance, discontinued operations | 462 | - | (462 | ) | - | |||||||||||||
Year ended December 31, 2013: | ||||||||||||||||||
Accounts and financing receivables | ||||||||||||||||||
Allowance for uncollectible accounts, continuing operations | 367 | 444 | (137 | ) | (a) | 674 | ||||||||||||
Allowance for uncollectible accounts, discontinued operations | 16 | 602 | (18 | ) | (a) | 600 | ||||||||||||
Inventory | ||||||||||||||||||
Reserve for obsolescence, continuing operations | 332 | 807 | (29 | ) | 1,110 | |||||||||||||
Reserve for obsolescence, discontinued operations | 30 | - | - | 30 | ||||||||||||||
Deferred tax assets | ||||||||||||||||||
Valuation allowance, continuing operations | 1,650 | - | (105 | ) | 1,545 | |||||||||||||
Valuation allowance, discontinued operations | 460 | - | 2 | 462 | ||||||||||||||
Year ended December 31, 2012: | ||||||||||||||||||
Accounts and financing receivables | ||||||||||||||||||
Allowance for uncollectible accounts, continuing operations | 236 | 188 | (57 | ) | (b) | 367 | ||||||||||||
Allowance for uncollectible accounts, discontinued operations | - | 67 | (51 | ) | (b) | 16 | ||||||||||||
Inventory | ||||||||||||||||||
Reserve for obsolescence, continuing operations | 578 | 148 | (394 | ) | (c) | 332 | ||||||||||||
Reserve for obsolescence, discontinued operations | - | - | 30 | (c) | 30 | |||||||||||||
Deferred tax assets | ||||||||||||||||||
Valuation allowance, continuing operations | 11,000 | - | (9,350 | ) | (c) | 1,650 | ||||||||||||
Valuation allowance, discontinued operations | - | 460 | (c) | 460 | ||||||||||||||
(a) Amounts written off as uncollectible, net of recoveries | ||||||||||||||||||
(b) Amounts written off as uncollectible, net of recoveries and reclassification to discontinued operations | ||||||||||||||||||
(c) Includes reclassification to discontinued operations. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Accounting Policies [Abstract] | ||||
Basis of Presentation | Basis of Presentation | |||
The consolidated financial statements include the results of operations and financial position of Numerex and its wholly owned subsidiaries in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). Intercompany accounts and transactions have been eliminated in consolidation. | ||||
Discontinued Operations | Discontinued Operations | |||
Businesses to be divested are classified in the consolidated financial statements as either discontinued operations or held for sale. For businesses classified as discontinued operations, the balance sheet amounts and results of operations are reclassified from their historical presentation to assets and liabilities of discontinued operations on the consolidated balance sheet and to discontinued operations on the consolidated statements of income and comprehensive income and cash flows, respectively, for all periods presented. The gains or losses associated with these divested businesses are also recorded in discontinued operations in the consolidated statements of income and comprehensive income. Additionally, the accompanying notes do not include the assets, liabilities, or operating results of businesses classified as discontinued operations for all periods presented. As of June 30, 2014, we completed the divestiture of the businesses classified as discontinued operations. We have not had and do not expect to have any significant continuing involvement with these businesses following their divestiture. | ||||
Estimates and Assumptions | Estimates and Assumptions | |||
The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expense and related disclosure of contingent assets and liabilities. On an ongoing basis, we evaluate our estimates, including those related to revenue recognition, doubtful accounts, goodwill and intangible assets, expenses, accruals, equity-based compensation, income taxes, restructuring charges, leases, long-term service contracts, contingencies and litigation. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ materially from these estimates. | ||||
Fair Value of Financial Instruments | Fair Value of Financial Instruments | |||
The fair value of financial instruments classified as current assets or liabilities, including cash and cash equivalents, accounts receivable, and accounts payable and accrued expenses approximate carrying value, principally because of the short-term, maturity of those items. The fair value of our capitalized lease obligation approximates carrying value based on the short-term maturity of the obligation. The fair value of our long-term financing receivables and note payable approximates carrying value based on their effective interest rates compared to current market rates and similar type borrowing arrangements. | ||||
We measure and report certain financial assets and liabilities at fair value on a recurring basis, including cash equivalents. The major categories of nonfinancial assets and liabilities that we measure at fair value include reporting units measured at fair value in step one of our goodwill impairment test. | ||||
Concentration of Credit Risk | Concentration of Credit Risk | |||
Financial instruments that potentially subject us to a concentration of credit risk are primarily cash investments and accounts and financing receivables. We maintain our cash and overnight investment balances in financial institutions, which typically exceed federally insured limits. We had cash balances in excess of these limits of $17.0 million and $25.4 million at December 31, 2014 and 2013, respectively. We have not experienced any losses in such accounts and believe we are not exposed to any significant credit risk on cash and cash equivalents. Concentration of credit risk with respect to accounts and financing receivables from customers is limited. We perform credit evaluations of prospective customers and we evaluate our trade receivables periodically. Our accounts and financing receivables are at risk to the extent that we may not be able to collect from some of our customers. See Notes E, F and Q for more information. | ||||
Revenue Recognition | Revenue Recognition | |||
Our revenue is generated from two primary sources, subscription fees and the sale of M2M devices and hardware. Revenue is recognized when persuasive evidence of an agreement exists, the hardware or service has been delivered, fees and prices are fixed and determinable, collection is reasonably assured and all other significant obligations have been fulfilled. Revenue is recognized net of sales and any transactional taxes. | ||||
Subscription fees are based on the number of devices (subscriptions) on our integrated M2M horizontal platform network. Subscription fees are typically invoiced and recognized as revenue as we provide the services or process transactions in accordance with contractual performance standards. Customer contracts are generally recurring or multi-year agreements. Subscription fees also include volume-based excess network usage, messages and other activity that are recognized as revenue as incurred, consistent with contractual terms. We may, under an appropriate agreement, bill subscription fees in advance for the network service to be provided. In these instances, we recognize the advance charge (even if nonrefundable) as deferred revenue and recognize the revenue over future periods in accordance with the contract term as the network service (time, data or minutes) is provided, delivered or performed. Subscription revenue may also include set-up fees which are deferred and recognized ratably over the estimated life of the subscription. Direct and incremental costs associated with deferred revenue are also deferred, classified as deferred costs in prepaid expense and other assets in our consolidated balance sheets, and recognized in the period revenue is recognized. Unbilled revenue consists of earned revenue that results from non-calendar month billing cycles and the one-month lag time in billing related to certain of our services. | ||||
We recognize revenue from the sale of M2M devices and hardware at the time of shipment and passage of title. Provisions for rebates, promotions, product returns and discounts to customers are recorded as a reduction in revenue in the same period that the revenue is recognized. We offer customers the right to return hardware that does not function properly within a limited time after delivery. We continuously monitor and track such hardware returns and record a provision for the estimated amount of such future returns based on historical experience and any notification received of pending returns. While such returns have historically been within expectations and the provisions established, we cannot guarantee that we will continue to experience the same return rates that we have experienced in the past. Any significant increase in hardware failure rates and the resulting credit returns could have a material adverse impact on operating results for the period or periods in which such returns materialize. Shipping and handling fees received from customers are recorded with embedded device and hardware revenue and associated costs are recorded in cost of embedded devices and hardware. | ||||
On occasion we sell both hardware and monthly recurring services to the same customer. In such cases, we evaluate such arrangements to determine if a multiple-element arrangement exists. For multiple-element revenue arrangements, we allocate arrangement consideration at the inception of an arrangement to all elements using the relative selling price method. The hierarchy for determining the selling price of a deliverable includes (a) vendor-specific objective evidence, if available, (b) third-party evidence, if vendor-specific objective evidence is not available and (c) our best estimate of the selling price, if neither vendor-specific nor third-party evidence is available. In most cases, vendor-specific objective evidence is available for us, as the vast majority of our business is either selling hardware or service on a standalone basis. Certain judgments and estimates are made and used to determine revenue recognized in any accounting period. If estimates are revised, material differences may result in the amount and timing of revenues recognized for a given period. | ||||
Cash and Cash Equivalents | Cash and Cash Equivalents | |||
We consider all investments with an original maturity of three months or less at date of purchase to be cash equivalents. Cash equivalents consist of overnight repurchase agreements and amounts on deposit in foreign banks. We held $0.4 million and $0.2 million in foreign bank accounts at December 31, 2014 and 2013, respectively. | ||||
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts | |||
Trade accounts receivable are stated at gross invoiced amounts less discounts, other allowances and provision for uncollectible accounts. Trade accounts receivable include earned but unbilled revenue that results from non-calendar month billing cycles and lag time in billing related to certain of our services. Credit is extended to customers based on an evaluation of a customer’s financial condition and, generally, collateral is not required. Accounts receivable are generally due within 30-90 days. We maintain an allowance for estimated losses resulting from the inability of our customers to make required payments. The allowance for doubtful accounts is based principally upon specifically identified amounts where collection is deemed doubtful. Additional non-specific allowances are recorded based on historical experience and our assessment of a variety of factors related to the general financial condition and business prospects of our customer base. We review the collectability of individual accounts and assess the adequacy of the allowance for doubtful accounts quarterly. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. | ||||
Financing Receivables | Financing Receivables | |||
Financing receivables are due in installments. We evaluate the credit quality of our financing receivables on an ongoing basis utilizing an aging of the accounts and write-offs, customer collection experience, the customer’s financial condition, known risk characteristics impacting the respective customer base, and other available economic conditions, to determine the appropriate allowance. Similar to accounts receivable, we typically do not require collateral. All amounts due at December 31, 2014 and 2013 were deemed fully collectible and an allowance was not necessary. | ||||
Inventories and Reserves for Excess, Slow-Moving and Obsolete Inventory | Inventories and Reserves for Excess, Slow-Moving and Obsolete Inventory | |||
Inventories are valued at the lower of cost or market and consist of (1) security devices and (2) cellular M2M Modems and Modules and (3) satellite M2M Modems. Cost is generally determined on the first-in, first-out (FIFO) basis. Inbound freight costs, including raw material freight costs to contract manufacturers is recorded in inventory and these costs are recognized in cost of sales when the product is sold. Lower of cost or market value of inventory is determined at the product level and evaluated quarterly. Estimated reserves for obsolescence or slow moving inventory are maintained based on current economic conditions, historical sales quantities and patterns and, in some cases, the specific risk of loss on specifically identified inventories. Such inventories are recorded at estimated realizable value net of the costs of disposal. | ||||
Property and Equipment | Property and Equipment | |||
Depreciation is provided in amounts sufficient to relate the cost of depreciable assets to operations over their estimated service lives. Property and equipment under capital leases are amortized over the lives of the respective leases or over the service lives of the assets for those leases and leasehold improvements, whichever is shorter. Depreciation and amortization for property and equipment is calculated using the straight-line method over the following estimated lives: | ||||
● | Machinery and equipment | 4-10 years | ||
● | Furniture, fixtures and fittings | 3-10 years | ||
● | Leasehold improvements | up to 10 years | ||
Capitalized Software | Capitalized Software | |||
We capitalize software both for internal use and for inclusion in our products. For internal use software, costs incurred in the preliminary project stage of developing or acquiring internal use software are expensed as incurred. After the preliminary project stage is completed, management has approved the project and it is probable that the project will be completed and the software will be used for its intended purpose, we capitalize certain internal and external costs incurred to acquire or create internal use software, principally related to software coding, designing system interfaces and installation and testing of the software. We amortize capitalized internal use software costs using the straight-line method over the estimated useful life of the software, generally three years. | ||||
We capitalize software development costs for software embedded in our products when technological feasibility is established and conclude capitalization when the hardware is ready for release. We amortize capitalized costs for software to be sold using the straight-line method over the estimated useful life based on anticipated revenue streams of the software, generally three years. Software development costs incurred prior to the establishment of technological feasibility are expensed as incurred as engineering and development. | ||||
Intangible Assets, Including Goodwill | Intangible Assets, Including Goodwill | |||
Intangible assets consist of acquired customer relationships and intellectual property, patents and trademarks, and goodwill. These assets, except for goodwill and trade names, are amortized over their expected useful lives. Acquired customer relationships are amortized using the straight-line method over 4 to 11 years. Acquired intellectual property and patents are amortized using the straight-line method over 7 to 16 years, representing the shorter of their estimated useful lives or the period until the patent renews. Costs to maintain patents are expensed as incurred while costs to renew patents are capitalized and amortized over the remaining estimated useful lives. | ||||
Goodwill and trade names are not amortized but are subject to an annual impairment test, and more frequently if events or circumstances occur that would indicate a potential decline in its fair value. An impairment charge will be recognized only when the implied fair value of a reporting unit’s goodwill is less than its carrying amount. The annual assessment of goodwill for impairment includes comparing the fair value of each reporting unit to the carrying value, referred to as step one. If the fair value of a reporting unit exceeds its carrying value, goodwill is not impaired and no further testing is necessary. If the carrying value of a reporting unit exceeds its fair value, a second test is performed, referred to as step two, to measure the amount of impairment to goodwill, if any. To measure the amount of any impairment, we determine the implied fair value of goodwill in the same manner as if we were acquiring the affected reporting unit in a business combination. Specifically, we allocate the fair value of the affected reporting unit to all of the assets and liabilities of that unit, including any unrecognized intangible assets, in a hypothetical calculation that would yield the implied fair value of goodwill. If the implied fair value of goodwill is less than the goodwill recorded on the consolidated balance sheet, an impairment charge for the difference is recorded. | ||||
We base the impairment analysis of goodwill on estimated fair values. The assumptions, inputs and judgments used in performing the valuation analysis are inherently subjective and reflect estimates based on known facts and circumstances at the time the valuation is performed. These estimates and assumptions primarily include, but are not limited to, discount rates, terminal growth rates, projected revenues and costs, projected cash flows, and capital expenditure forecasts. | ||||
We elected to change our annual goodwill impairment testing measurement date from December 31 to October 1 effective October 1, 2013, primarily to correspond to our annual strategic, financial planning and budgeting processes. The change in annual testing dates did not affect our financial results for any interim period or the year ended December 31, 2013. We did not identify the need for any impairment as a result of our annual assessment. In addition, we assess on a quarterly basis whether any events have occurred or circumstances have changed that would indicate an impairment could exist. | ||||
Impairment of Long-lived Assets | Impairment of Long-lived Assets | |||
Long-lived assets, such as property and equipment and intangible assets subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount which the carrying amount of the asset exceeds the fair value of the asset. | ||||
Income Taxes | Income Taxes | |||
We account for income taxes using the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to the differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using the enacted tax rates applied to taxable income. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is provided for deferred tax assets when it is more likely than not that the asset will not be realized. | ||||
We conduct business globally and file income tax returns in the United States and in many state and certain foreign jurisdictions. We are subject to state and local income tax examinations for years after and including 1998. These tax years remain open due to the net operating losses generated in these years that have not been utilized as of the year ended December 31, 2014. Likewise, the existence of net operating losses from earlier periods could subject us to United States federal income tax examination for years including and after 2001, since such net operating losses have not been utilized as of the year ended December 31, 2014. | ||||
Treasury Stock | Treasury Stock | |||
We account for treasury stock under the cost method. When treasury stock is re-issued at a higher price than its cost, the difference is recorded as a component of additional paid-in capital to the extent that there are gains to offset the losses. If there are no treasury stock gains in additional paid-in capital, the losses are recorded as a component of accumulated deficit. | ||||
Foreign Currency Translation | Foreign Currency Translation | |||
The assets and liabilities of our foreign operations are translated into U.S. dollars at the period end spot exchange rates, and revenues and expenses are translated at estimated average exchange rates for each period. Resulting translation adjustments are reflected as other comprehensive income in the consolidated statements of income and comprehensive income and within shareholders’ equity. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred. Foreign operations are not significant to us for the years ended December 31, 2014, 2013 or 2012. | ||||
Engineering and Development | Engineering and Development | |||
Engineering and development expenses that are not capitalizable as software development costs are charged to operations in the period in which they are incurred. Engineering and development costs consist primarily of salaries and other personnel-related costs, bonuses, and third-party services. For the years ended December 31, 2014, 2013 and 2012, engineering and development costs recorded in operations were $8.0 million, $4.9 million and $3.1 million, respectively. | ||||
Advertising Expenses | Advertising Expenses | |||
Advertising expenses are charged to operations in the period in which they are incurred. For the years ended December 31, 2014, 2013 and 2012, advertising costs were approximately $0.9 million, $0.7 million and $0.8 million, respectively. | ||||
Reclassifications | Reclassifications | |||
Previously reported software and other intangible assets have been reclassified in the consolidated balance sheet to conform to the current period presentation. | ||||
Recent Accounting Pronouncements | Recent Accounting Pronouncements | |||
In August 2014, the Financial Accounting Standards Board (FASB) issued guidance about disclosing an entity’s ability to continue as a going concern. The guidance is intended to define management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. The standard will be effective for annual periods ending after December 15, 2016, and for interim and annual periods thereafter, with early application permitted. We do not expect the adoption of this guidance to have a material impact on the company’s financial position or results of operations. | ||||
In June 2014, the FASB issued guidance that applies to all reporting entities that grant their employees share-based payments in which the terms of the award provide that a performance target that affects vesting could be achieved after the requisite service period. It requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition and follows existing accounting guidance for the treatment of performance conditions. The standard will be effective for us prospectively for fiscal years, and interim reporting periods within those years, beginning January 1, 2016, with early adoption permitted. We do not expect the adoption of this guidance to have a material impact on our financial position or results of operations. | ||||
In May 2014, the FASB issued new accounting guidance for revenue recognized from contracts with customers. The core principle of the guidance is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under current guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. The guidance will become effective for us for fiscal years, and interim reporting periods within those years, beginning January 1, 2017 and will require retrospective application. We are currently in the process of evaluating the impact of adoption on our consolidated financial statements. | ||||
In April 2014, the FASB issued amendments to guidance for reporting discontinued operations and disposals of components of an entity. The amended guidance requires that a disposal representing a strategic shift that has (or will have) a major effect on an entity’s financial results or a business activity classified as held for sale should be reported as discontinued operations. The amendments also expand the disclosure requirements for discontinued operations. The amendments are effective for us prospectively for fiscal years, and interim reporting periods within those years, beginning January 1, 2015 (early adoption is permitted only for disposals that have not been previously reported). The implementation of the amended guidance is not expected to have a material impact on our consolidated financial position or results of operations. | ||||
In July 2013, the FASB issued new accounting guidance related to the presentation of unrecognized tax benefits when a net operating loss carry-forward, a similar tax loss, or a tax credit carry-forward exists. This guidance clarifies that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carry-forward, a similar tax loss, or a tax credit carry-forward if such settlement is required or expected in the event the uncertain tax position is disallowed. In situations where a net operating loss carry-forward, a similar tax loss, or a tax credit carry-forward is not available at the reporting date under the tax law of the applicable jurisdiction or the tax law of the jurisdiction does not require, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. This guidance was effective for us prospectively for fiscal years, and interim periods within those years, beginning January 1, 2014. Because the guidance only affects presentation, adoption did not have a material effect on our financial condition or results of operations. | ||||
In March 2013, the FASB issued an update to the accounting standards to clarify the applicable guidance for a parent company’s accounting for the release of the cumulative translation adjustment into net income upon derecognition of certain subsidiaries or groups of assets within a foreign entity or of an investment in a foreign entity. This guidance was effective for us prospectively for fiscal periods beginning after January 1, 2014. Adoption did not have a material impact on our financial condition or results of operations. |
MERGER_AND_ACQUISITIONS_Tables
MERGER AND ACQUISITIONS (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Omnilink Systems, Inc. | 2014 Merger | |||||||||
Business Acquisition [Line Items] | |||||||||
Schedule of allocation of the purchase price | The following table summarizes the fair values of the assets acquired and liabilities assumed as of the closing date of the Omnilink merger (dollars in thousands): | ||||||||
Estimated | |||||||||
Fair Value | Useful Lives | ||||||||
Cash | $ | 195 | n/a | ||||||
Accounts receivable | 2,677 | n/a | |||||||
Inventory | 873 | n/a | |||||||
Prepaid and other assets | 377 | n/a | |||||||
Property and equipment | 1,613 | 4(a) | |||||||
Deferred tax asset | 2,400 | n/a | |||||||
Customer relationships | 6,056 | 11 | |||||||
Technology | 4,998 | 14 | |||||||
Trade names | 3,632 | Indefinite | |||||||
Goodwill | 17,518 | Indefinite | |||||||
Total identifiable assets acquired | 40,339 | ||||||||
Accounts payable | (1,756 | ) | n/a | ||||||
Accrued expenses | (1,037 | ) | n/a | ||||||
Deferred revenue | (64 | ) | n/a | ||||||
Total liabilities assumed | (2,857 | ) | |||||||
Net assets acquired | $ | 37,482 | |||||||
(a) | The weighted average remaining useful life for all property and equipment is approximately four years. | ||||||||
Schedule of unaudited pro forma results | |||||||||
Unaudited Pro Forma Results | |||||||||
For the Years Ended December 31, | |||||||||
2014 | 2013 | ||||||||
Net revenues | $ | 98,134 | $ | 90,628 | |||||
Income (loss) from continuing operations, before income tax | 2,719 | (2,370 | ) | ||||||
Net income (loss) | 2,147 | (856 | ) | ||||||
Basic and diluted income (loss) per common share | 0.11 | (0.05 | ) | ||||||
Small technology company | 2013 Acquisition | |||||||||
Business Acquisition [Line Items] | |||||||||
Schedule of allocation of the purchase price | |||||||||
Fair | Useful | ||||||||
Value | Lives | ||||||||
Accounts receivable | $ | 175 | n/a | ||||||
Inventory | 78 | n/a | |||||||
Fixed assets | 5 | 3 | |||||||
Software | 110 | 3 | |||||||
Customer relationships | 265 | 7 | |||||||
Other intangibles | 389 | 3 | |||||||
Goodwill | 1,612 | Indefinite | |||||||
Leases receivable | 275 | n/a | |||||||
Accounts payable | (81 | ) | n/a | ||||||
Other liabilities | (11 | ) | n/a | ||||||
Net assets acquired | $ | 2,817 | |||||||
Fair | Useful | ||||||||
Value | Lives | ||||||||
Accounts receivable | $ | 35 | n/a | ||||||
Inventory | 55 | n/a | |||||||
Fixed assets | 25 | 5-Mar | |||||||
Software | 967 | 3.5 | |||||||
Trademarks | 32 | 5 | |||||||
Deferred revenue | (12 | ) | n/a | ||||||
Net assets acquired | $ | 1,102 |
DISCONTINUED_OPERATIONS_Tables
DISCONTINUED OPERATIONS (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||
Schedule of financial results of the discontinued operations | |||||||||||||
For the Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Revenues from discontinued operations | $ | 207 | $ | 1,163 | $ | 1,708 | |||||||
(Loss) income from discontinued operations before income taxes | (285 | ) | (1,567 | ) | 225 | ||||||||
Income tax (benefit) expense | (127 | ) | (187 | ) | 93 | ||||||||
(Loss) income from discontinued operations, net of income taxes | (158 | ) | (1,380 | ) | 132 | ||||||||
Loss on disposal of subsidiary included in discontinued operations | (309 | ) | — | — | |||||||||
Loss on dissolution of subsidiaries included in discontinued operations | (25 | ) | — | — | |||||||||
Net (loss) income from discontinued operations | $ | (492 | ) | $ | (1,380 | ) | $ | 132 | |||||
Schedule of assets or liabilities reported as discontinued operations | |||||||||||||
December 31, | |||||||||||||
2013 | |||||||||||||
ASSETS | |||||||||||||
CURRENT ASSETS | |||||||||||||
Accounts receivable, less allowance for doubtful accounts of $600 | $ | 253 | |||||||||||
Inventory, net of reserve for obsolescence of $30 | 122 | ||||||||||||
Prepaid expenses and other current assets | 164 | ||||||||||||
TOTAL CURRENT ASSETS | 539 | ||||||||||||
Property and equipment, net | 9 | ||||||||||||
Other assets | 292 | ||||||||||||
TOTAL ASSETS OF DISCONTINUED OPERATIONS | $ | 840 | |||||||||||
LIABILITIES | |||||||||||||
CURRENT LIABILITIES | |||||||||||||
Accounts payable | $ | 10 | |||||||||||
Accrued expenses and other current liabilities | 171 | ||||||||||||
Deferred revenues | 26 | ||||||||||||
TOTAL LIABILITIES OF DISCONTINUED OPERATIONS | $ | 207 |
ACCOUNTS_RECEIVABLE_Tables
ACCOUNTS RECEIVABLE (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Receivables [Abstract] | |||||||||
Schedule of components of accounts receivables and related allowance for doubtful accounts | |||||||||
As of December 31, | |||||||||
2014 | 2013 | ||||||||
Accounts receivable | $ | 12,997 | $ | 9,521 | |||||
Unbilled accounts receivable | 396 | 538 | |||||||
Allowance for doubtful accounts | (1,106 | ) | (674 | ) | |||||
$ | 12,287 | $ | 9,385 |
FINANCING_RECEIVABLES_Tables
FINANCING RECEIVABLES (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Financing Receivable, Net [Abstract] | |||||||||
Schedule of components of lease receivables | |||||||||
As of December 31, | |||||||||
2014 | 2013 | ||||||||
Total minimum lease payments receivable | $ | 4,785 | $ | 4,338 | |||||
Unearned income | (206 | ) | (86 | ) | |||||
Present value of future minimum lease payments receivable | 4,579 | 4,252 | |||||||
Less current portion | (1,595 | ) | (1,223 | ) | |||||
Amounts due after one year | $ | 2,984 | $ | 3,029 | |||||
Schedule of future minimum lease payments | Future minimum lease payments to be received subsequent to December 31, 2014 are as follows (in thousands): | ||||||||
2015 | $ | 1,709 | |||||||
2016 | 1,535 | ||||||||
2017 | 1,120 | ||||||||
2018 | 416 | ||||||||
2019 | 5 | ||||||||
$ | 4,785 |
INVENTORY_Tables
INVENTORY (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Schedule of components of inventory | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Raw materials | $ | 2,228 | $ | 1,503 | |||||
Finished goods | 7,579 | 7,922 | |||||||
Reserve for obsolescence | (1,397 | ) | (1,110 | ) | |||||
$ | 8,410 | $ | 8,315 |
PREPAID_EXPENSES_AND_OTHER_ASS1
PREPAID EXPENSES AND OTHER ASSETS (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||
Schedule of components of prepaid expenses and other current assets | |||||||||
As of December 31, | |||||||||
2014 | 2013 | ||||||||
Prepaid expenses | $ | 1,358 | $ | 1,223 | |||||
Deferred costs | 578 | 488 | |||||||
Other | 393 | 122 | |||||||
$ | 2,329 | $ | 1,833 | ||||||
Schedule of components of other noncurrent assets | |||||||||
As of December 31, | |||||||||
2014 | 2013 | ||||||||
Prepaid carrier fees | $ | 1,860 | $ | 1,658 | |||||
Deferred activation fees | 310 | 168 | |||||||
Deferred financing fees | 260 | 104 | |||||||
Deposits | 155 | 168 | |||||||
Cost method investment | - | 200 | |||||||
$ | 2,585 | $ | 2,298 |
PROPERTY_AND_EQUIPMENT_Tables
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Schedule of components of property and equipment | |||||||||
As of December 31, | |||||||||
2014 | 2013 | ||||||||
Computer, network and other equipment | $ | 7,630 | $ | 4,196 | |||||
Furniture and fixtures | 746 | 600 | |||||||
Leasehold improvements | 328 | 208 | |||||||
Total property and equipment | 8,704 | 5,004 | |||||||
Accumulated depreciation and amortization | (3,815 | ) | (1,879 | ) | |||||
$ | 4,889 | $ | 3,125 |
INTANGIBLE_ASSETS_Tables
INTANGIBLE ASSETS (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||
Schedule of summary of intangible assets other than goodwill | |||||||||||||||||||||||||||||
As of December 31, 2014 | As of December 31, 2013 | ||||||||||||||||||||||||||||
Remaining | Gross | Accumulated | Net Book | Gross | Accumulated | Net Book | |||||||||||||||||||||||
Useful Lives | Carrying | Amortization | Value | Carrying | Amortization | Value | |||||||||||||||||||||||
Amount | Amount | ||||||||||||||||||||||||||||
Purchased and developed software | 2.5 | $ | 11,176 | $ | (6,409 | ) | $ | 4,767 | $ | 8,836 | $ | (3,706 | ) | $ | 5,130 | ||||||||||||||
Software in development | n/a | 1,339 | - | 1,339 | 1,251 | - | 1,251 | ||||||||||||||||||||||
Total software | 12,515 | (6,409 | ) | 6,106 | 10,087 | (3,706 | ) | 6,381 | |||||||||||||||||||||
Licenses | 0.5 | 12,763 | (11,886 | ) | 877 | 12,646 | (11,415 | ) | 1,231 | ||||||||||||||||||||
Customer relationships | 8.5 | 8,287 | (1,359 | ) | 6,928 | 2,231 | (602 | ) | 1,629 | ||||||||||||||||||||
Technologies | 13.3 | 4,998 | (237 | ) | 4,761 | - | - | - | |||||||||||||||||||||
Patents and trademarks | 4.1 | 3,343 | (1,657 | ) | 1,686 | 2,846 | (1,172 | ) | 1,674 | ||||||||||||||||||||
Trade names | Indefinite | 3,632 | - | 3,632 | - | - | - | ||||||||||||||||||||||
Other | n/a | 1,279 | - | 1,279 | 1,083 | - | 1,083 | ||||||||||||||||||||||
Total other intangible assets | 34,302 | (15,139 | ) | 19,163 | 18,806 | (13,189 | ) | 5,617 | |||||||||||||||||||||
$ | 46,817 | $ | (21,548 | ) | $ | 25,269 | $ | 28,893 | $ | (16,895 | ) | $ | 11,998 | ||||||||||||||||
Schedule of future amortization expenses | We expect amortization expense for the next five years to be as follows based on intangible assets as of December 31, 2014 (in thousands): | ||||||||||||||||||||||||||||
2015 | $ | 4,621 | |||||||||||||||||||||||||||
2016 | 3,241 | ||||||||||||||||||||||||||||
2017 | 2,050 | ||||||||||||||||||||||||||||
2018 | 1,516 | ||||||||||||||||||||||||||||
2019 | 1,253 | ||||||||||||||||||||||||||||
Thereafter | 6,338 | ||||||||||||||||||||||||||||
$ | 19,019 | ||||||||||||||||||||||||||||
Schedule of carrying amount of goodwill | |||||||||||||||||||||||||||||
1-Jan-13 | $ | 25,418 | |||||||||||||||||||||||||||
Acquisition | 1,523 | ||||||||||||||||||||||||||||
31-Dec-13 | 26,941 | ||||||||||||||||||||||||||||
Measurement period adjustment | 89 | ||||||||||||||||||||||||||||
Acquisition | 17,518 | ||||||||||||||||||||||||||||
31-Dec-14 | $ | 44,548 |
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Schedule of (benefit) provision for income taxes | |||||||||||||
For The Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Current: | |||||||||||||
Federal | $ | 73 | $ | (183 | ) | $ | (19 | ) | |||||
State | 38 | 22 | 30 | ||||||||||
Reserve | (57 | ) | (80 | ) | (41 | ) | |||||||
Deferred: | |||||||||||||
Federal | 546 | (2,033 | ) | (4,502 | ) | ||||||||
State | (181 | ) | (95 | ) | (370 | ) | |||||||
$ | 419 | $ | (2,369 | ) | $ | (4,902 | ) | ||||||
Schedule of reconciliation of income tax (benefit) provision at the statutory rate | |||||||||||||
For The Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Income tax expense (benefit) computed at | |||||||||||||
U.S. corporate tax rate of 34% | $ | 903 | $ | (137 | ) | $ | 725 | ||||||
Adjustments attributable to: | |||||||||||||
Deferred balance adjustments | - | (1,893 | ) | - | |||||||||
Valuation allowance | 1,077 | - | (5,545 | ) | |||||||||
Income tax payable adjustments | - | (71 | ) | - | |||||||||
State income tax | 24 | (73 | ) | 24 | |||||||||
Reserve for uncertain tax positions | (57 | ) | (80 | ) | (41 | ) | |||||||
Non-deductible expenses | (1,575 | ) | (97 | ) | (56 | ) | |||||||
Other | 47 | (18 | ) | (9 | ) | ||||||||
$ | 419 | $ | (2,369 | ) | $ | (4,902 | ) | ||||||
Schedule of components of deferred tax assets and liabilities | |||||||||||||
As of December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Current deferred tax asset: | |||||||||||||
Inventories | $ | 549 | $ | 438 | |||||||||
Accruals | 417 | 145 | |||||||||||
Federal and state net operating loss carryforwards | 2,380 | 2,463 | |||||||||||
Other | 495 | 318 | |||||||||||
Valuation allowance | (680 | ) | (622 | ) | |||||||||
3,161 | 2,742 | ||||||||||||
Non-current deferred tax asset | |||||||||||||
Equity-based compensation | 2,030 | 1,357 | |||||||||||
Difference between book and tax basis of property | (305 | ) | (111 | ) | |||||||||
Intangible assets | (3,698 | ) | 621 | ||||||||||
Federal, state and foreign net operating loss carry forwards | 8,694 | 1,763 | |||||||||||
Tax credit carry forward | 1,323 | 1,251 | |||||||||||
Valuation allowance | (2,428 | ) | (923 | ) | |||||||||
5,616 | 3,958 | ||||||||||||
Net deferred tax assets | $ | 8,777 | $ | 6,700 | |||||||||
Schedule of net operating loss carry forwards | |||||||||||||
Year of | |||||||||||||
Amount | Expiration | ||||||||||||
Federal net operating losses | $ | 25,000 | 2023-2035 | ||||||||||
State net operating losses | 63,000 | 2015-2035 | |||||||||||
Alternative minimum tax credit carryforward | 810 | n/a | |||||||||||
General business credit carryforward | 510 | 2018-2031 | |||||||||||
Schedule of summary of the activity related to our unrecognized tax benefit | |||||||||||||
2014 | 2013 | ||||||||||||
Balance at January 1 | $ | 102 | $ | 159 | |||||||||
Decreases as a result of positions taken during prior periods | (48 | ) | (57 | ) | |||||||||
Balance at December 31 | $ | 54 | $ | 102 |
OTHER_LIABILITIES_Tables
OTHER LIABILITIES (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Other Liabilities Disclosure [Abstract] | |||||||||
Schedule of other current liabilities | |||||||||
As of December 31, | |||||||||
2014 | 2013 | ||||||||
Payroll related | $ | 696 | $ | 1,269 | |||||
Accrued expenses | 1,775 | 735 | |||||||
$ | 2,471 | $ | 2,004 | ||||||
Schedule of other noncurrent liabilities | |||||||||
As of December 31, | |||||||||
2014 | 2013 | ||||||||
Deferred revenue | $ | 414 | $ | 560 | |||||
Deferred rent | 932 | 1,133 | |||||||
$ | 1,346 | $ | 1,693 |
DEBT_Tables
DEBT (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Schedule of debt | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Note payable to Silicon Valley Bank, with interest at our option of prime rate or LIBOR rate plus margin. | $ | 23,125 | $ | - | |||||
Seller financed note payable, with interest at 4.25%, monthly payments of principal and interest, secured by equipment, due September 2015 | 476 | 1,108 | |||||||
23,601 | 1,108 | ||||||||
Less current portion of long-term debt | 4,251 | 633 | |||||||
Noncurrent portion of long-term debt | $ | 19,350 | $ | 475 | |||||
Schedule of loan agreement principal repayment | Loan Agreement Principal Repayment Schedule | ||||||||
Quarterly | Annually | ||||||||
June 2014 - March 2015 | $ | 625,000 | $ | 2,500,000 | |||||
June 2015 - March 2016 | 937,500 | 3,750,000 | |||||||
June 2016 - March 2017 | 937,500 | 3,750,000 | |||||||
June 2017 - March 2018 | 1,250,000 | 5,000,000 | |||||||
June 2018 - March 2019 | 1,250,000 | 5,000,000 | |||||||
Outstanding balance due May 2019 | - | 5,000,000 | |||||||
Schedule of summary of future maturities | |||||||||
2015 | $ | 4,251 | |||||||
2016 | 3,750 | ||||||||
2017 | 4,688 | ||||||||
2018 | 5,000 | ||||||||
2019 | 5,912 | ||||||||
$ | 23,601 |
LEASES_COMMITMENTS_AND_CONTING1
LEASES, COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Schedule of minimum lease payments capital lease | Future minimum capital lease payments and the present value of the net minimum lease payments for all capital leases as of December 31, 2014 are as follows (in thousands): | ||||
Total minimum lease payments | $ | 158 | |||
Less amounts representing interest | (10 | ) | |||
Present value of future minimum lease payments, all current | $ | 148 | |||
Schedule of future minimum lease payments under such non-cancelable operating leases | Future minimum lease payments under such non-cancelable operating leases subsequent to December 31, 2014, are as follows (in thousands): | ||||
Year Ending December 31, | |||||
2015 | $ | 1,514 | |||
2016 | 1,581 | ||||
2017 | 1,516 | ||||
2018 | 1,395 | ||||
2019 | 1,128 | ||||
Thereafter | 3,020 | ||||
$ | 10,154 |
EQUITYBASED_COMPENSATION_Table
EQUITY-BASED COMPENSATION (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||
Schedule of assumptions to estimate the grant date fair value of stock options and SARs | |||||||||||||
For The Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Volatility | 57.8 | % | 67.5 | % | 66.6 | % | |||||||
Expected term (in years) | 6.2 | 6.3 | 6.3 | ||||||||||
Risk-free rate | 1.88 | % | 1.52 | % | 1.1 | % | |||||||
Dividend yield | 0 | % | 0 | % | 0 | % | |||||||
Schedule of summary of stock option and SAR activity outstanding | |||||||||||||
Weighted | |||||||||||||
Average | |||||||||||||
Shares | Exercise Price | ||||||||||||
Outstanding, January 1, 2014 | 1,437 | $ | 7.77 | ||||||||||
Granted | 332 | 11.56 | |||||||||||
Exercised | (270 | ) | 6.69 | ||||||||||
Forfeited or expired | (167 | ) | 7.85 | ||||||||||
Outstanding, at December 31, 2014 | 1,332 | 8.93 | |||||||||||
Exercisable at December 31, 2014 | 727 | 7.06 | |||||||||||
Schedule of summary of stock options and SARs | As of December 31, 2014, stock options and SARs are further summarized as follows (shares and dollars in thousands): | ||||||||||||
Outstanding | Exercisable | ||||||||||||
Total shares | 1,332 | 727 | |||||||||||
Aggregate intrinsic value | $ | 4,264 | $ | 3,601 | |||||||||
Weighted-average remaining | |||||||||||||
contractual term (years) | 6.6 | 4.9 | |||||||||||
Schedule of summary of stock option and SAR exercise data | |||||||||||||
For the years ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Options and SARs exercised | 270 | 433 | 638 | ||||||||||
Net shares issued | 214 | 199 | 336 | ||||||||||
Total intrinsic value exercised | $ | 1,533 | $ | 2,552 | $ | 3,967 | |||||||
Cash received | 931 | 338 | 560 | ||||||||||
Recognized tax benefit | 1,300 | 2,208 | 2,619 | ||||||||||
Schedule of summary of non-vested share restricted stock award activity | |||||||||||||
Weighted | |||||||||||||
Average Grant | |||||||||||||
Shares | Date Fair Value | ||||||||||||
Outstanding, as of January 1, 2014 | 190 | $ | 12.09 | ||||||||||
Granted | 435 | 10.95 | |||||||||||
Vested | (95 | ) | 11.57 | ||||||||||
Forfeited | (42 | ) | 11.74 | ||||||||||
Outstanding, as of December 31, 2014 | 488 | 11.19 |
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Schedule of earnings per share | |||||||||||||
For the years ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Income from continuing operations | $ | 2,236 | $ | 1,965 | $ | 7,033 | |||||||
(Loss) income from discontinued operations | (492 | ) | (1,380 | ) | 132 | ||||||||
Net income | $ | 1,744 | $ | 585 | $ | 7,165 | |||||||
Common Shares: | |||||||||||||
Weighted average common shares outstanding | 18,922 | 18,413 | 15,412 | ||||||||||
Dilutive effect of common stock equivalents | 346 | 537 | 602 | ||||||||||
Total | 19,268 | 18,950 | 16,014 | ||||||||||
Basic earnings per share: | |||||||||||||
Income from continuing operations | $ | 0.12 | $ | 0.11 | $ | 0.46 | |||||||
(Loss) income from discontinued operations | (0.03 | ) | (0.08 | ) | 0 | ||||||||
Net income | $ | 0.09 | $ | 0.03 | $ | 0.46 | |||||||
Diluted earnings per share: | |||||||||||||
Income from continuing operations | $ | 0.12 | $ | 0.1 | $ | 0.44 | |||||||
(Loss) income from discontinued operations | (0.03 | ) | (0.07 | ) | 0.01 | ||||||||
Net income | $ | 0.09 | $ | 0.03 | $ | 0.45 |
SEGMENT_INFORMATION_Tables
SEGMENT INFORMATION (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Segment Reporting [Abstract] | |||||||||||||
Schedule of revenue generated from customers based outside of the U.S. | |||||||||||||
For the years ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
U.S. | 94 | % | 94 | % | 88 | % | |||||||
Canada | 4 | % | 4 | % | 10 | % | |||||||
Others | 2 | % | 2 | % | 2 | % | |||||||
100 | % | 100 | % | 100 | % |
UNAUDITED_SELECTED_QUARTERLY_D1
UNAUDITED SELECTED QUARTERLY DATA (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Schedule of summary of unaudited financial data | |||||||||||||||||
For The Three Months Ended | |||||||||||||||||
March 31, | June 30, | September 30, | December 31, | ||||||||||||||
2014 | 2014 | 2014 | 2014 | ||||||||||||||
Net revenues | $ | 20,773 | $ | 22,578 | $ | 25,663 | $ | 24,855 | |||||||||
Gross profit | 9,840 | 10,722 | 11,287 | 11,415 | |||||||||||||
Operating earnings (loss) | 662 | (252 | ) | 802 | 903 | ||||||||||||
Income (loss) from continuing operations before income taxes | 1,741 | (444 | ) | 621 | 737 | ||||||||||||
Income tax expense (benefit) | 595 | (670 | ) | 358 | 136 | ||||||||||||
Income from continuing operations, net of income tax benefit | 1,146 | 226 | 263 | 601 | |||||||||||||
Loss from discontinued operations | (56 | ) | (436 | ) | - | - | |||||||||||
Net income (loss) | 1,090 | (210 | ) | 263 | 601 | ||||||||||||
Basic earnings (loss) per share: | |||||||||||||||||
Income from continuing operations | $ | 0.06 | $ | 0.01 | $ | 0.01 | $ | 0.03 | |||||||||
Income (loss) from discontinued operations | 0 | (0.02 | ) | 0 | 0 | ||||||||||||
Net income (loss) | $ | 0.06 | $ | (0.01 | ) | $ | 0.01 | $ | 0.03 | ||||||||
Diluted earnings (loss) per share | |||||||||||||||||
Income from continuing operations | $ | 0.06 | $ | 0.01 | $ | 0.01 | $ | 0.03 | |||||||||
Income (loss) from discontinued operations | 0 | (0.02 | ) | 0 | 0 | ||||||||||||
Net income (loss) | $ | 0.06 | $ | (0.01 | ) | $ | 0.01 | $ | 0.03 | ||||||||
For The Three Months Ended | |||||||||||||||||
March 31, | June 30, | September 30, | December 31, | ||||||||||||||
2013 | 2013 | 2013 | 2013 | ||||||||||||||
Net revenues | $ | 16,437 | $ | 17,271 | $ | 21,951 | $ | 22,173 | |||||||||
Gross profit | 6,905 | 6,666 | 8,981 | 9,588 | |||||||||||||
Operating earnings (loss) | 45 | (1,983 | ) | 645 | 874 | ||||||||||||
(Loss) income from continuing operations before income taxes | (37 | ) | (2,042 | ) | 540 | 1,135 | |||||||||||
Income tax (benefit) expense | (65 | ) | (2,454 | ) | (35 | ) | 185 | ||||||||||
Income from continuing operations, net of income tax benefit | 28 | 412 | 575 | 950 | |||||||||||||
(Loss) income from discontinued operations | (17 | ) | (1,424 | ) | - | 61 | |||||||||||
Net income (loss) | 11 | (1,012 | ) | 575 | 1,011 | ||||||||||||
Basic earnings (loss) per share: | |||||||||||||||||
Income from continuing operations | $ | 0 | $ | 0.02 | $ | 0.03 | $ | 0.05 | |||||||||
Income (loss) from discontinued operations | 0 | (0.07 | ) | 0 | 0 | ||||||||||||
Net income (loss) | $ | 0 | $ | (0.05 | ) | $ | 0.03 | $ | 0.05 | ||||||||
Diluted earnings (loss) per share | |||||||||||||||||
Income from continuing operations | $ | 0 | $ | 0.02 | $ | 0.03 | $ | 0.05 | |||||||||
Income (loss) from discontinued operations | 0 | (0.08 | ) | 0 | 0 | ||||||||||||
Net income (loss) | $ | 0 | $ | (0.06 | ) | $ | 0.03 | $ | 0.05 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Detail Textuals) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Source | |||
Summary Of Significant Account Policies [Line Items] | |||
Cash balance in excess of federally insured limits | $17,000,000 | $25,400,000 | |
Number of sources for revenue generation | 2 | ||
Cash held in foreign bank accounts | 400,000 | 200,000 | |
Property and equipment, depreciation methods | Straight-line method | ||
Patents and acquired intellectual property amortized method | Straight-line method | ||
Engineering and development expenses | 8,009,000 | 4,915,000 | 3,096,000 |
Advertising expenses | $900,000 | $700,000 | $800,000 |
Purchased and developed software | |||
Summary Of Significant Account Policies [Line Items] | |||
Useful lives of intangible assets | 3 years | ||
Acquired customer relationships | |||
Summary Of Significant Account Policies [Line Items] | |||
Useful lives of intangible assets | 8 years 6 months | ||
Minimum | |||
Summary Of Significant Account Policies [Line Items] | |||
Accounts receivable, period due | 30 days | ||
Minimum | Patents and aquired intellectual property | |||
Summary Of Significant Account Policies [Line Items] | |||
Useful lives of intangible assets | 7 years | ||
Minimum | Acquired customer relationships | |||
Summary Of Significant Account Policies [Line Items] | |||
Useful lives of intangible assets | 4 years | ||
Minimum | Machinery And Equipment | |||
Summary Of Significant Account Policies [Line Items] | |||
Useful lives of property and equipment | 4 years | ||
Minimum | Furniture, fixtures and fittings | |||
Summary Of Significant Account Policies [Line Items] | |||
Useful lives of property and equipment | 3 years | ||
Maximum | |||
Summary Of Significant Account Policies [Line Items] | |||
Accounts receivable, period due | 90 days | ||
Maximum | Patents and aquired intellectual property | |||
Summary Of Significant Account Policies [Line Items] | |||
Useful lives of intangible assets | 16 years | ||
Maximum | Acquired customer relationships | |||
Summary Of Significant Account Policies [Line Items] | |||
Useful lives of intangible assets | 11 years | ||
Maximum | Machinery And Equipment | |||
Summary Of Significant Account Policies [Line Items] | |||
Useful lives of property and equipment | 10 years | ||
Maximum | Furniture, fixtures and fittings | |||
Summary Of Significant Account Policies [Line Items] | |||
Useful lives of property and equipment | 10 years | ||
Maximum | Leasehold improvements | |||
Summary Of Significant Account Policies [Line Items] | |||
Useful lives of property and equipment | 10 years |
MERGER_AND_ACQUISITIONS_Alloca
MERGER AND ACQUISITIONS - Allocation of purchase price and summary of estimated useful lives (Details) (USD $) | 0 Months Ended | ||||
In Thousands, unless otherwise specified | 5-May-14 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Business Acquisition [Line Items] | |||||
Goodwill | $44,548 | $26,941 | $25,418 | ||
Omnilink Systems, Inc. | |||||
Business Acquisition [Line Items] | |||||
Cash | 195 | ||||
Accounts receivable | 2,677 | ||||
Inventory | 873 | ||||
Prepaid and other assets | 377 | ||||
Property and equipment | 1,613 | ||||
Deferred tax asset | 2,400 | ||||
Goodwill | 17,518 | ||||
Total identifiable assets acquired | 40,339 | ||||
Accounts payable | -1,756 | ||||
Accrued expenses | -1,037 | ||||
Deferred revenue | -64 | ||||
Total liabilities assumed | -2,857 | ||||
Net assets acquired | 37,482 | ||||
Property and equipment, lives in years | 4 years | [1] | |||
Goodwill, lives in years | Indefinite | ||||
Omnilink Systems, Inc. | Customer Relationships | |||||
Business Acquisition [Line Items] | |||||
Intangible assets other than goodwill | 6,056 | ||||
Useful lives of intangible assets | 11 years | ||||
Omnilink Systems, Inc. | Technology | |||||
Business Acquisition [Line Items] | |||||
Intangible assets other than goodwill | 4,998 | ||||
Useful lives of intangible assets | 14 years | ||||
Omnilink Systems, Inc. | Trade names | |||||
Business Acquisition [Line Items] | |||||
Intangible assets other than goodwill | $3,632 | ||||
Estimated useful lives of acquired indefinite lived intangible assets | Indefinite | ||||
[1] | The weighted average remaining useful life for all property and equipment is approximately four years. |
MERGER_AND_ACQUISITIONS_Unaudi
MERGER AND ACQUISITIONS - Unaudited proforma results (Details 1) (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Business Combinations [Abstract] | ||
Net revenues | $98,134 | $90,628 |
Income (loss) from continuing operations, before income tax | 2,719 | -2,370 |
Net income (loss) | $2,147 | ($856) |
Basic and diluted income (loss) per common share | $0.11 | ($0.05) |
MERGER_AND_ACQUISITIONS_Alloca1
MERGER AND ACQUISITIONS - Allocation of purchase price and summary of estimated useful lives (Details 2) (USD $) | 0 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 02, 2013 | Feb. 01, 2013 | Feb. 01, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Business Acquisition [Line Items] | ||||||
Goodwill | $44,548 | $26,941 | $25,418 | |||
Small technology company | ||||||
Business Acquisition [Line Items] | ||||||
Accounts receivable | 175 | 35 | 35 | |||
Inventory | 78 | 55 | 55 | |||
Fixed assets | 5 | 25 | 25 | |||
Goodwill | 1,612 | 1,600 | ||||
Lease receivable | 275 | |||||
Accounts payable | -81 | |||||
Other liabilities | -11 | |||||
Deferred revenue | -12 | -12 | ||||
Net assets acquired | 2,817 | 1,102 | 1,102 | |||
Property and equipment, lives in years | 3 years | |||||
Goodwill, lives in years | Indefinite | |||||
Small technology company | Minimum | ||||||
Business Acquisition [Line Items] | ||||||
Property and equipment, lives in years | 3 years | |||||
Small technology company | Maximum | ||||||
Business Acquisition [Line Items] | ||||||
Property and equipment, lives in years | 5 years | |||||
Small technology company | Software | ||||||
Business Acquisition [Line Items] | ||||||
Software, trademarks, customer relationships and intangible assets | 110 | 967 | 967 | |||
Useful lives of intangible assets | 3 years | 3 years 6 months | ||||
Small technology company | Customer Relationships | ||||||
Business Acquisition [Line Items] | ||||||
Software, trademarks, customer relationships and intangible assets | 265 | |||||
Useful lives of intangible assets | 7 years | |||||
Small technology company | Other intangibles | ||||||
Business Acquisition [Line Items] | ||||||
Software, trademarks, customer relationships and intangible assets | 389 | |||||
Useful lives of intangible assets | 3 years | |||||
Small technology company | Trademarks | ||||||
Business Acquisition [Line Items] | ||||||
Software, trademarks, customer relationships and intangible assets | 32 | $32 | ||||
Useful lives of intangible assets | 5 years |
MERGER_AND_ACQUISITIONS_Detail
MERGER AND ACQUISITIONS (Detail Textuals) (Omnilink Systems, Inc., Merger agreement, USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | 5-May-14 |
Business Acquisition [Line Items] | ||
Purchase price | $37.50 | |
General and administrative expense | ||
Business Acquisition [Line Items] | ||
Transaction costs | $1 |
MERGER_AND_ACQUISITIONS_Detail1
MERGER AND ACQUISITIONS (Detail Textuals 1) (Omnilink Systems, Inc., USD $) | 5-May-14 |
Omnilink Systems, Inc. | |
Business Acquisition [Line Items] | |
Accounts receivable, gross | $2,900,000 |
Accounts receivable, net | 2,677,000 |
Accounts receivable, allowances | $200,000 |
MERGER_AND_ACQUISITIONS_Detail2
MERGER AND ACQUISITIONS (Detail Textuals 2) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Business Acquisition [Line Items] | |||||||||||
Net sales contributed by Omnilink | $24,855,000 | $25,663,000 | $22,578,000 | $20,773,000 | $22,173,000 | $21,951,000 | $17,271,000 | $16,437,000 | $93,869,000 | $77,832,000 | $65,032,000 |
Omnilink Systems, Inc. | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Net sales contributed by Omnilink | 8,700,000 | ||||||||||
Adjustment for depreciation expense | 100,000 | 100,000 | |||||||||
Adjustment for amortization expense | 300,000 | 900,000 | |||||||||
Adjustment for interest expense | 100,000 | 600,000 | |||||||||
Adjustment for acquisition related costs | $1,000,000 | $1,000,000 |
MERGER_AND_ACQUISITIONS_Detail3
MERGER AND ACQUISITIONS (Detail Textuals 3) (USD $) | 0 Months Ended | |||||
Dec. 02, 2013 | Feb. 01, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 02, 2014 | |
Business Acquisition [Line Items] | ||||||
Goodwill in connection with acquisition | $44,548,000 | $26,941,000 | $25,418,000 | |||
Small technology company | ||||||
Business Acquisition [Line Items] | ||||||
Total consideration | 2,800,000 | 1,100,000 | ||||
Cash paid | 200,000 | |||||
Gross amount of leases receivable | 275,000 | |||||
Consideration payable in cash | 200,000 | |||||
Number of shares issuable upon acquisition | 73,587 | |||||
Fair value of shares issuable | 900,000 | |||||
Amortization expense | less than $0.8 million | less than $0.8 million | ||||
Goodwill in connection with acquisition | $1,612,000 | $1,600,000 |
DISCONTINUED_OPERATIONS_Summar
DISCONTINUED OPERATIONS - Summary of the financial results of the discontinued operations (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
(Loss) income from discontinued operations, net of income taxes | ($492) | ($1,380) | $132 |
Discontinued operation | BNI Solutions, Inc. Digilog, Inc. and DCX Systems, Inc | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Revenues from discontinued operations | 207 | 1,163 | 1,708 |
(Loss) income from discontinued operations before income taxes | -285 | -1,567 | 225 |
Income tax (benefit) expense | -127 | -187 | 93 |
(Loss) income from discontinued operations, net of income taxes | -158 | -1,380 | 132 |
Loss on disposal of subsidiary included in discontinued operations | -309 | ||
Loss on dissolution of subsidiaries included in discontinued operations | -25 | ||
Net (loss) income from discontinued operations | ($492) | ($1,380) | $132 |
DISCONTINUED_OPERATIONS_Summar1
DISCONTINUED OPERATIONS - Summary of assets and liabilities reported as discontinued operations (Details 1) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
CURRENT ASSETS | |
TOTAL CURRENT ASSETS | $840 |
Discontinued operation | BNI Solutions, Inc. Digilog, Inc. and DCX Systems, Inc | |
CURRENT ASSETS | |
Accounts receivable, less allowance for doubtful accounts of $600 | 253 |
Inventory, net of reserve for obsolescence of $30 | 122 |
Prepaid expenses and other current assets | 164 |
TOTAL CURRENT ASSETS | 539 |
Property and equipment, net | 9 |
Other assets | 292 |
TOTAL ASSETS OF DISCONTINUED OPERATIONS | 840 |
CURRENT LIABILITIES | |
Accounts payable | 10 |
Accrued expenses and other current liabilities | 171 |
Deferred revenues | 26 |
TOTAL LIABILITIES OF DISCONTINUED OPERATIONS | $207 |
DISCONTINUED_OPERATIONS_Summar2
DISCONTINUED OPERATIONS - Summary of assets and liabilities reported as discontinued operations (Parentheticals) (Details 1) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Inventory, net of reserve for obsolescence | $8,410 | $8,315 |
Discontinued operation | BNI Solutions, Inc. Digilog, Inc. and DCX Systems, Inc | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Allowance for doubtful accounts | 600 | |
Inventory, net of reserve for obsolescence | $30 |
FAIR_VALE_MEASUREMENTS_Detail_
FAIR VALE MEASUREMENTS (Detail Textuals) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Fair Value Disclosures [Abstract] | ||
Assets measured at fair value on a recurring basis | $17.20 | $17.60 |
ACCOUNTS_RECEIVABLE_Accounts_r
ACCOUNTS RECEIVABLE - Accounts receivable and related allowance for doubtful accounts (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Receivables [Abstract] | ||
Accounts receivable | $12,997 | $9,521 |
Unbilled accounts receivable | 396 | 538 |
Allowance for doubtful accounts | -1,106 | -674 |
Accounts receivable, net | $12,287 | $9,385 |
FINANCING_RECEIVABLES_Summary_
FINANCING RECEIVABLES - Summary of components of lease receivables (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Net [Abstract] | ||
Total minimum lease payments receivable | $4,785 | $4,338 |
Unearned income | -206 | -86 |
Present value of future minimum lease payments receivable | 4,579 | 4,252 |
Less current portion | -1,595 | -1,223 |
Amounts due after one year | $2,984 | $3,029 |
FINANCING_RECEIVABLES_Summary_1
FINANCING RECEIVABLES - Summary of future minimum lease payments (Details 1) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Net [Abstract] | ||
2015 | $1,709 | |
2016 | 1,535 | |
2017 | 1,120 | |
2018 | 416 | |
2019 | 5 | |
Total future minimum lease payments | $4,785 | $4,338 |
FINANCING_RECEIVABLES_Detail_T
FINANCING RECEIVABLES (Detail Textuals) | 12 Months Ended |
Dec. 31, 2014 | |
Financing Receivable [Line Items] | |
Interest rate on receivables | 2.00% |
Sales type lease term | four to five years |
Interest rate | 7% to 8% |
Period of nonpayment of financing receivable before it's placed in non-accrual status | 60 days |
Minimum | |
Financing Receivable [Line Items] | |
Sales lease term | 2 years |
Maximum | |
Financing Receivable [Line Items] | |
Sales lease term | 4 years |
INVENTORY_Summary_of_inventory
INVENTORY - Summary of inventory (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ||
Raw materials | $2,228 | $1,503 |
Finished goods | 7,579 | 7,922 |
Reserve for obsolescence | -1,397 | -1,110 |
Inventory, net | $8,410 | $8,315 |
PREPAID_EXPENSES_AND_OTHER_ASS2
PREPAID EXPENSES AND OTHER ASSETS - Summary of prepaid expenses and other current assets (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid expenses | $1,358 | $1,223 |
Deferred costs | 578 | 488 |
Other | 393 | 122 |
Prepaid expenses and other assets | $2,329 | $1,833 |
PREPAID_EXPENSES_AND_OTHER_ASS3
PREPAID EXPENSES AND OTHER ASSETS - Summary of other noncurrent assets (Details 1) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Other Assets, Noncurrent Disclosure [Abstract] | ||
Prepaid carrier fees | $1,860 | $1,658 |
Deferred activation fees | 310 | 168 |
Deferred financing fees | 260 | 104 |
Deposits | 155 | 168 |
Cost method investment | 200 | |
Total other noncurrent assets | $2,585 | $2,298 |
PREPAID_EXPENSES_AND_OTHER_ASS4
PREPAID EXPENSES AND OTHER ASSETS (Detail Textuals) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Other Assets, Noncurrent Disclosure [Abstract] | |
Fair value of equipment | $2.20 |
Amortization period of prepaid expense | 10 years |
Prepayment to license additional network access | 0.4 |
Amortization period of prepayment to license additional network access | 7 years |
Cost method investment, percentage of minority interest held in two privately-held businesses | less than 20% |
Proceeds from sale of cost method investment | 1.3 |
Gain on the sale of an investment | $1.10 |
PROPERTY_AND_EQUIPMENT_Summary
PROPERTY AND EQUIPMENT - Summary of property and equipment (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $8,704 | $5,004 |
Accumulated depreciation and amortization | -3,815 | -1,879 |
Property and equipment, net | 4,889 | 3,125 |
Computer, network and other equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 7,630 | 4,196 |
Accumulated depreciation and amortization | -400 | |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 746 | 600 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $328 | $208 |
PROPERTY_AND_EQUIPMENT_Detail_
PROPERTY AND EQUIPMENT (Detail Textuals) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization expense | $6,812,000 | $5,119,000 | $3,442,000 |
Accumulated depreciation and amortization | 3,815,000 | 1,879,000 | |
Property and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization expense | 1,600,000 | 1,100,000 | 700,000 |
Computer, network and other equipment | |||
Property, Plant and Equipment [Line Items] | |||
Capital leases | 700,000 | ||
Accumulated depreciation and amortization | $400,000 |
INTANGIBLE_ASSETS_Summary_of_I
INTANGIBLE ASSETS - Summary of Intangible assets other than goodwill (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $46,817 | $28,893 |
Accumulated Amortization | -21,548 | -16,895 |
Net Book Value | 25,269 | 11,998 |
Purchased and developed software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Remaining Useful Lives | 2 years 6 months | |
Gross Carrying Amount | 11,176 | 8,836 |
Accumulated Amortization | -6,409 | -3,706 |
Net Book Value | 4,767 | 5,130 |
Software in development | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,339 | 1,251 |
Accumulated Amortization | ||
Net Book Value | 1,339 | 1,251 |
Software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Remaining Useful Lives | 3 years | |
Gross Carrying Amount | 12,515 | 10,087 |
Accumulated Amortization | -6,409 | -3,706 |
Net Book Value | 6,106 | 6,381 |
Licenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
Remaining Useful Lives | 6 months | |
Gross Carrying Amount | 12,763 | 12,646 |
Accumulated Amortization | -11,886 | -11,415 |
Net Book Value | 877 | 1,231 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Remaining Useful Lives | 8 years 6 months | |
Gross Carrying Amount | 8,287 | 2,231 |
Accumulated Amortization | -1,359 | -602 |
Net Book Value | 6,928 | 1,629 |
Technologies | ||
Finite-Lived Intangible Assets [Line Items] | ||
Remaining Useful Lives | 13 years 3 months 18 days | |
Gross Carrying Amount | 4,998 | |
Accumulated Amortization | -237 | |
Net Book Value | 4,761 | |
Patents and trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Remaining Useful Lives | 4 years 1 month 6 days | |
Gross Carrying Amount | 3,343 | 2,846 |
Accumulated Amortization | -1,657 | -1,172 |
Net Book Value | 1,686 | 1,674 |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Remaining Useful Lives | Indefinite | |
Gross Carrying Amount | 3,632 | |
Accumulated Amortization | ||
Net Book Value | 3,632 | |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,279 | 1,083 |
Accumulated Amortization | ||
Net Book Value | 1,279 | 1,083 |
Total other intangibles assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 34,302 | 18,806 |
Accumulated Amortization | -15,139 | -13,189 |
Net Book Value | $19,163 | $5,617 |
INTANGIBLE_ASSETS_Summary_of_a
INTANGIBLE ASSETS - Summary of amortization expense for next five year (Details 1) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2015 | $4,621 |
2016 | 3,241 |
2017 | 2,050 |
2018 | 1,516 |
2019 | 1,253 |
Thereafter | 6,338 |
Total amortization expense | $19,019 |
INTANGIBLE_ASSETS_Summary_of_c
INTANGIBLE ASSETS - Summary of carrying amount of goodwill (Details 2) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Goodwill [Roll Forward] | ||
Beginning year | $26,941 | $25,418 |
Measurement period adjustment | 89 | |
Acquisition | 17,518 | 1,523 |
Ending year | $44,548 | $26,941 |
INTANGIBLE_ASSETS_Detail_Textu
INTANGIBLE ASSETS (Detail Textuals) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of intangible assets and software | $4.60 | $3.80 | $2.60 |
Amortization of intangible assets recorded in cost of subscription revenue | 0.3 | 0.2 | 0.2 |
Capitalized internal software development costs | 2 | 1.8 | |
Amortization of capitalized software development costs | 1.4 | 1.1 | 1 |
Goodwill gross | 48.9 | 31.3 | |
Accumulated impairment losses | $4.40 | $4.40 |
INCOME_TAXES_Summary_of_compon
INCOME TAXES - Summary of components of (benefit) provision for income taxes (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current: | |||||||||||
Federal | $73 | ($183) | ($19) | ||||||||
State | 38 | 22 | 30 | ||||||||
Reserve | -57 | -80 | -41 | ||||||||
Deferred: | |||||||||||
Federal | 546 | -2,033 | -4,502 | ||||||||
State | -181 | -95 | -370 | ||||||||
Income tax benefit | $136 | $358 | ($670) | $595 | $185 | ($35) | ($2,454) | ($65) | $419 | ($2,369) | ($4,902) |
INCOME_TAXES_Summary_of_reconc
INCOME TAXES - Summary of reconciliation of income tax (benefit) provision (Details 1) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||||||||||
Income tax expense (benefit) computed at U.S. corporate tax rate of 34% | $903 | ($137) | $725 | ||||||||
Adjustments attributable to: | |||||||||||
Deferred balance adjustments | -1,893 | ||||||||||
Valuation allowance | 1,077 | -5,545 | |||||||||
Income tax payable adjustments | -71 | ||||||||||
State income tax | 24 | -73 | 24 | ||||||||
Reserve for uncertain tax positions | -57 | -80 | -41 | ||||||||
Non-deductible expenses | -1,575 | -97 | -56 | ||||||||
Other | 47 | -18 | -9 | ||||||||
Income tax benefit | $136 | $358 | ($670) | $595 | $185 | ($35) | ($2,454) | ($65) | $419 | ($2,369) | ($4,902) |
INCOME_TAXES_Summary_of_reconc1
INCOME TAXES - Summary of reconciliation of income tax (benefit) provision (Parentheticals) (Details 1) | 12 Months Ended |
Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |
U.S. corporate tax rate | 34.00% |
INCOME_TAXES_Summary_of_compon1
INCOME TAXES - Summary of components of our net deferred tax assets and liabilities (Details 2) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current deferred tax asset: | ||
Inventories | $549 | $438 |
Accruals | 417 | 145 |
Federal and state net operating loss carryforwards | 2,380 | 2,463 |
Other | 495 | 318 |
Valuation allowance | -680 | -622 |
Current deferred tax asset (liability) ,Total | 3,161 | 2,742 |
Non-current deferred tax asset | ||
Equity-based compensation | 2,030 | 1,357 |
Difference between book and tax basis of property | -305 | -111 |
Intangible assets | -3,698 | 621 |
Federal, state and foreign net operating loss carryforwards | 8,694 | 1,763 |
Tax credit carry forward | 1,323 | 1,251 |
Valuation allowance | -2,428 | -923 |
Non-current deferred tax asset, Total | 5,616 | 3,958 |
Net deferred tax assets | $8,777 | $6,700 |
INCOME_TAXES_Summary_of_net_op
INCOME TAXES - Summary of net operating loss carry forwards (Details 3) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Operating Loss Carryforwards [Line Items] | |
Net operating losses - Amount | 22,300 |
Alternative Minimum Tax | |
Operating Loss Carryforwards [Line Items] | |
Credit carry forward - Amount | 810 |
General Business | |
Operating Loss Carryforwards [Line Items] | |
Credit carry forward - Amount | 510 |
General Business | Minimum | |
Operating Loss Carryforwards [Line Items] | |
Credit carry forward - Year of Expiration | 2018 |
General Business | Maximum | |
Operating Loss Carryforwards [Line Items] | |
Credit carry forward - Year of Expiration | 2031 |
Federal | |
Operating Loss Carryforwards [Line Items] | |
Net operating losses - Amount | 25,000 |
Federal | Minimum | |
Operating Loss Carryforwards [Line Items] | |
Net operating losses - Year of Expiration | 2023 |
Federal | Maximum | |
Operating Loss Carryforwards [Line Items] | |
Net operating losses - Year of Expiration | 2035 |
State | |
Operating Loss Carryforwards [Line Items] | |
Net operating losses - Amount | 63,000 |
State | Minimum | |
Operating Loss Carryforwards [Line Items] | |
Net operating losses - Year of Expiration | 2015 |
State | Maximum | |
Operating Loss Carryforwards [Line Items] | |
Net operating losses - Year of Expiration | 2035 |
INCOME_TAXES_Activity_related_
INCOME TAXES - Activity related to unrecognized tax benefits, net of federal benefit, and excludes interest and penalties (Details 4) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Accounting Policies [Abstract] | ||
Balance at January 1 | $102 | $159 |
Decreases as a result of positions taken during prior periods | -48 | -57 |
Balance at December 31 | $54 | $102 |
INCOME_TAXES_Detail_textuals
INCOME TAXES (Detail textuals) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Abstract] | |||||||||||
Income tax expense (benefit) | $136,000 | $358,000 | ($670,000) | $595,000 | $185,000 | ($35,000) | ($2,454,000) | ($65,000) | $419,000 | ($2,369,000) | ($4,902,000) |
Deferred tax benefit | 365,000 | -2,128,000 | -4,872,000 | ||||||||
Valuation allowance increased due to a capital loss carryforward | 1,300,000 | 1,300,000 | |||||||||
Increase in deferred tax assets related to federal and state net operating loss carry forwards | 22,300,000 | 22,300,000 | |||||||||
Net decrease to liability for unrecognized tax benefits | 100,000 | ||||||||||
Total unrecognized tax benefits including estimated penalties and interest | 100,000 | 100,000 | |||||||||
Decrease to the total balance of total unrecognized tax benefits within the next twelve months | ($100,000) |
OTHER_LIABILITIES_Summary_of_o
OTHER LIABILITIES - Summary of other current liabilities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Other Liabilities Disclosure [Abstract] | ||
Payroll related | $696 | $1,269 |
Accrued expenses | 1,775 | 735 |
Other current liabilities, total | $2,471 | $2,004 |
OTHER_LIABILITIES_Summary_of_o1
OTHER LIABILITIES - Summary of other noncurrent liabilities (Details 1) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Other Liabilities Disclosure [Abstract] | ||
Deferred revenue | $414 | $560 |
Deferred rent | 932 | 1,133 |
Other noncurrent liabilities, total | $1,346 | $1,693 |
DEBT_Summary_of_debt_Details
DEBT - Summary of debt (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Note payable | $23,601 | $1,108 |
Less current portion of long-term debt | 4,251 | 633 |
Noncurrent portion of long-term debt | 19,350 | 475 |
Note payable to Silicon Valley Bank, with interest at our option of prime rate or LIBOR rate plus margin | ||
Debt Instrument [Line Items] | ||
Note payable | 23,125 | |
Seller financed note payable, with interest at 4.25%, monthly payments of principal and interest, secured by equipment, due September 2015 | ||
Debt Instrument [Line Items] | ||
Note payable | $476 | $1,108 |
DEBT_Summary_of_debt_Parenthet
DEBT - Summary of debt (Parentheticals) (Details) | Dec. 31, 2014 |
Debt Disclosure [Abstract] | |
Interest rate of seller financed note payable | 4.25% |
DEBT_Summary_of_loan_agreement
DEBT - Summary of loan agreement principal repayment (Details 1) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||
Annually | $5,000,000 | $5,000,000 |
June 2014 - March 2015 | ||
Debt Instrument [Line Items] | ||
Quarterly | 625,000 | |
Annually | 2,500,000 | 2,500,000 |
June 2015 - March 2016 | ||
Debt Instrument [Line Items] | ||
Quarterly | 937,500 | |
Annually | 3,750,000 | 3,750,000 |
June 2016 - March 2017 | ||
Debt Instrument [Line Items] | ||
Quarterly | 937,500 | |
Annually | 3,750,000 | 3,750,000 |
June 2017 - March 2018 | ||
Debt Instrument [Line Items] | ||
Quarterly | 1,250,000 | |
Annually | 5,000,000 | 5,000,000 |
June 2018 - March 2019 | ||
Debt Instrument [Line Items] | ||
Quarterly | 1,250,000 | |
Annually | 5,000,000 | 5,000,000 |
Outstanding balance due May 2019 | ||
Debt Instrument [Line Items] | ||
Quarterly | ||
Annually | $5,000,000 | $5,000,000 |
DEBT_Summary_of_future_maturit
DEBT - Summary of future maturities (Details 2) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Disclosure [Abstract] | ||
2015 | $4,251 | |
2016 | 3,750 | |
2017 | 4,688 | |
2018 | 5,000 | |
2019 | 5,912 | |
Long-term debt, total | $23,601 | $1,108 |
DEBT_Detail_Textuals
DEBT (Detail Textuals) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Debt Instrument [Line Items] | |
Amount of remaining principal | $5,000,000 |
Revolving Credit Facility | |
Debt Instrument [Line Items] | |
Available credit amount | 5,000,000 |
Silicon Valley Bank | Term Loan | |
Debt Instrument [Line Items] | |
Available credit amount | 25,000,000 |
Description of debt compliance | The maturity date of the loan is May 5, 2019 with regular required quarterly principal payments beginning June 30, 2014 equal to one fourth of 10% of the original principal amount through the quarter ended March 31, 2015 and increments to 15% for the quarterly periods through March 31, 2017 and to 20% for the quarterly periods through March 31, 2019 with any unpaid principal due at maturity. |
Interest rate applicable to amounts drawn | 2.75% |
Silicon Valley Bank | Revolving Credit Facility | |
Debt Instrument [Line Items] | |
Available credit amount | $5,000,000 |
DEBT_Detail_Textuals_1
DEBT (Detail Textuals 1) (USD $) | 12 Months Ended | 1 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 | Oct. 31, 2012 |
Promissory Note | ||
Debt Instrument [Line Items] | ||
Outstanding amount of promissory note | $0.50 | |
Small technology company | ||
Debt Instrument [Line Items] | ||
Promissory note payable | $1.90 | |
Interest rate spread over prime rate | 1.00% | |
Interest rate minimum percentage | 4.25% | |
Interest rate at end of period | 4.25% |
LEASES_COMMITMENTS_AND_CONTING2
LEASES, COMMITMENTS AND CONTINGENCIES - Future minimum capital lease payments and present value of net minimum lease payments for all capital leases (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | |
Total minimum lease payments | $158 |
Less amounts representing interest | -10 |
Present value of future minimum lease payments, all current | $148 |
LEASES_COMMITMENTS_AND_CONTING3
LEASES, COMMITMENTS AND CONTINGENCIES - Summary of future minimum lease payments under such non-cancelable operating leases (Details 1) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | |
2015 | $1,514 |
2016 | 1,581 |
2017 | 1,516 |
2018 | 1,395 |
2019 | 1,128 |
Thereafter | 3,020 |
Future minimum lease payments | $10,154 |
LEASES_COMMITMENTS_AND_CONTING4
LEASES, COMMITMENTS AND CONTINGENCIES (Detail Textuals) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating Leased Assets [Line Items] | |||
Description of lease terms | Our leases for office space have annual periods of free rent and escalation clauses of 2.5% to $1.00 per square foot. The leases also have options to renew for 60-65 months at the end of their terms. | ||
Rent expense | $1.60 | $1.30 | $1.10 |
Open purchase commitments | 5.4 | ||
Minimum | |||
Operating Leased Assets [Line Items] | |||
Lease renew period | 60 months | ||
Maximum | |||
Operating Leased Assets [Line Items] | |||
Lease renew period | 65 months | ||
Computer and network equipment | |||
Operating Leased Assets [Line Items] | |||
Value of sale leaseback asset | $0.70 |
EQUITYBASED_COMPENSATION_Summa
EQUITY-BASED COMPENSATION - Summary of assumptions to estimate the grant date fair value of stock options and SARs (Details) (Stock Option And Stock Appreciation Rights) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Stock Option And Stock Appreciation Rights | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Volatility | 57.80% | 67.50% | 66.60% |
Expected term (in years) | 6 years 2 months 12 days | 6 years 3 months 18 days | 6 years 3 months 18 days |
Risk-free rate | 1.88% | 1.52% | 1.10% |
Dividend yield | 0.00% | 0.00% | 0.00% |
EQUITYBASED_COMPENSATION_Summa1
EQUITY-BASED COMPENSATION - Summary of stock option and SAR activity (Details 1) (Stock Option And Stock Appreciation Rights, USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Stock Option And Stock Appreciation Rights | |||
Shares | |||
Outstanding, January 1, 2014 | 1,437 | ||
Granted | 332 | ||
Exercised | -270 | -433 | -638 |
Forfeited or expired | -167 | ||
Outstanding, at December 31, 2014 | 1,332 | 1,437 | |
Exercisable at December 31, 2014 | 727 | ||
Weighted Average Exercise Price | |||
Outstanding, January 1, 2014 | $7.77 | ||
Granted | $11.56 | ||
Exercised | $6.69 | ||
Forfeited or expired | $7.85 | ||
Outstanding, at December 31, 2014 | $8.93 | $7.77 | |
Exercisable at December 31, 2014 | $7.06 |
EQUITYBASED_COMPENSATION_Summa2
EQUITY-BASED COMPENSATION - Summary of stock options and SARs (Details 2) (Stock Option And Stock Appreciation Rights, USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Stock Option And Stock Appreciation Rights | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total shares, Outstanding | 1,332 | 1,437 |
Aggregate intrinsic value, Outstanding | $4,264 | |
Weighted-average remaining contractual term (years), Outstanding | 6 years 7 months 6 days | |
Total shares, Exercisable | 727 | |
Aggregate intrinsic value, Exercisable | $3,601 | |
Weighted-average remaining contractual term (years), Exercisable | 4 years 10 months 24 days |
EQUITYBASED_COMPENSATION_Summa3
EQUITY-BASED COMPENSATION - Summary of Stock option and SAR exercise data (Details 3) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Cash received | $867 | $338 | $560 |
Stock Option And Stock Appreciation Rights | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options and SARs exercised | 270 | 433 | 638 |
Net shares issued | 214 | 199 | 336 |
Total intrinsic value exercised | 1,533 | 2,552 | 3,967 |
Cash received | 931 | 338 | 560 |
Recognized tax benefit | $1,300 | $2,208 | $2,619 |
EQUITYBASED_COMPENSATION_Summa4
EQUITY-BASED COMPENSATION - Summary of Non-vested restricted stock award activity (Details 4) (Non-vested restricted stock, USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Non-vested restricted stock | |
Shares | |
Outstanding, as of January 1, 2014 | 190 |
Granted | 435 |
Vested | -95 |
Forfeited | -42 |
Outstanding, as of December 31, 2014 | 488 |
Weighted Average Grant Date Fair Value | |
Outstanding, as of January 1, 2014 | $12.09 |
Granted | $10.95 |
Vested | $11.57 |
Forfeited | $11.74 |
Outstanding, as of December 31, 2014 | $11.19 |
EQUITYBASED_COMPENSATION_Detai
EQUITY-BASED COMPENSATION (Detail Textuals) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Shareholder | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shareholder | 3 | ||
Equity-based compensation expense | $2.60 | $1.90 | $1.40 |
2014 Stock and Incentive Plan (2014 Plan) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares reserved for issuance | 6.3 | ||
2014 Stock and Incentive Plan (2014 Plan) | Non-vested restricted stock | Employee | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 4 years | ||
2014 Stock and Incentive Plan (2014 Plan) | Non-vested restricted stock | Non-employee director | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 1 year | ||
2014 Stock and Incentive Plan (2014 Plan) | Stock Option And Stock Appreciation Rights | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 4 years | ||
Continuous service contractual term | 10 years | ||
Method used for estimation of fair value of stock options and SARs | Black-Scholes option pricing model |
EQUITYBASED_COMPENSATION_Detai1
EQUITY-BASED COMPENSATION (Detail Textuals 1) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of stock options shares issued during period | 383,000 | ||
Vesting period of options | 4 years | ||
Stock Option And Stock Appreciation Rights | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield | 0.00% | 0.00% | 0.00% |
Number of stock options and SARs outstanding | 418,000 | ||
Number of stock options and SARs outstanding and exercisable | 260,000 | ||
Weighted average grant-date fair value | $6.45 | $6.28 | $5.99 |
EQUITYBASED_COMPENSATION_Detai2
EQUITY-BASED COMPENSATION (Detail Textuals 2) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
2014 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares remain available for grant | 2.4 | ||
Total unrecognized compensation costs | $7 | ||
Weighted-average recognition period | 1 year 6 months | ||
Non-vested restricted stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of non-vested restricted shares vested in period | $1.10 | $0.50 | $0.50 |
OTHER_INCOME_EXPENSE_NET_Detai
OTHER (INCOME) EXPENSE, NET (Detail Textuals) (USD $) | 12 Months Ended | 1 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 31, 2013 | |
Schedule of Cost-method Investments [Line Items] | ||||
Pre-tax gain on sale of cost method investment | $1,100,000 | |||
Proceeds from sale of cost basis investment | 1,300,000 | |||
Carrying value of investment | 200,000 | |||
Other (income) expense | -1,338,000 | -319,000 | 500,000 | |
M2M solutions company | ||||
Schedule of Cost-method Investments [Line Items] | ||||
Pre-tax gain on sale of cost method investment | 300,000 | |||
Proceeds from sale of cost basis investment | 600,000 | |||
Carrying value of investment | $300,000 |
SIGNIFICANT_CUSTOMER_CONCENTRA1
SIGNIFICANT CUSTOMER, CONCENTRATION OF CREDIT RISK AND RELATED PARTIES (Detail Textuals) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenue | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 100.00% | 100.00% | 100.00% |
Customer Concentration Risk | Revenue | |||
Concentration Risk [Line Items] | |||
Number of customers | 0 | ||
Concentration risk, benchmark description | No customers exceeded 10% of consolidated revenue | ||
Customer Concentration Risk | Revenue | Customer one | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 14.40% | 11.10% | |
Revenue accounted by customer | 13.5 | 8.7 | |
Customer Concentration Risk | Accounts receivable | Customer one | |||
Concentration Risk [Line Items] | |||
Revenue accounted by customer | 1.6 | 2.7 |
SIGNIFICANT_CUSTOMER_CONCENTRA2
SIGNIFICANT CUSTOMER, CONCENTRATION OF CREDIT RISK AND RELATED PARTIES (Detail Textuals 1) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Entity | Entity | Entity | |
Concentration Risk [Line Items] | |||
Accounts payable | 12,257 | 9,953 | |
Supplier Concentration Risk | Hardware cost of sales | |||
Concentration Risk [Line Items] | |||
Number of suppliers | 4 | 3 | 2 |
Cost of sales percentage | 72.00% | 72.00% | 49.00% |
Supplier Concentration Risk | Service cost of sales | |||
Concentration Risk [Line Items] | |||
Number of suppliers | 4 | 2 | 2 |
Cost of sales percentage | 68.00% | 55.00% | 51.00% |
Supplier Concentration Risk | Accounts Payable | |||
Concentration Risk [Line Items] | |||
Accounts payable | 5,300 | 4,800 | 3,200 |
SIGNIFICANT_CUSTOMER_CONCENTRA3
SIGNIFICANT CUSTOMER, CONCENTRATION OF CREDIT RISK AND RELATED PARTIES (Detail Textuals 2) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Related Party Transaction [Line Items] | |||
Accounts payable | $12,257,000 | $9,953,000 | |
Salisbury & Ryan LLP | |||
Related Party Transaction [Line Items] | |||
Legal fees | 290,000 | 224,000 | 138,000 |
Accounts payable | 41,000 | 22,000 | |
Family member of chairman and CEO | |||
Related Party Transaction [Line Items] | |||
Fees invoiced for marketing services | $80,000 | $80,000 | $80,000 |
BENEFIT_PLAN_Detail_Textuals
BENEFIT PLAN (Detail Textuals) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Compensation and Retirement Disclosure [Abstract] | |||
Employer contribution percentage | 50.00% | ||
Contribution percentage of employee's total compensation | 6.00% | ||
Contributions vesting period | 3 years | ||
Contributions vesting percentage | 33.00% | ||
Expense recognized | $0.30 | $0.30 | $0.20 |
EARNINGS_PER_SHARE_Number_Of_C
EARNINGS PER SHARE - Number Of Common Shares Used As Denominator (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings Per Share [Abstract] | |||||||||||
Income from continuing operations | $601 | $263 | $226 | $1,146 | $950 | $575 | $412 | $28 | $2,236 | $1,965 | $7,033 |
(Loss) income from discontinued operations | -436 | -56 | 61 | -1,424 | -17 | -492 | -1,380 | 132 | |||
Net income | $601 | $263 | ($210) | $1,090 | $1,011 | $575 | ($1,012) | $11 | $1,744 | $585 | $7,165 |
Common Shares: | |||||||||||
Weighted average common shares outstanding (in shares) | 18,922 | 18,413 | 15,412 | ||||||||
Dilutive effect of common stock equivalents | 346 | 537 | 602 | ||||||||
Total | 19,268 | 18,950 | 16,014 | ||||||||
Basic earnings per share: | |||||||||||
Income from continuing operations (in dollars per share) | $0.03 | $0.01 | $0.01 | $0.06 | $0.05 | $0.03 | $0.02 | $0 | $0.12 | $0.11 | $0.46 |
(Loss) income from discontinued operations (in dollars per share) | $0 | $0 | ($0.02) | $0 | $0 | $0 | ($0.07) | $0 | ($0.03) | ($0.08) | $0 |
Net income (in dollars per share) | $0.03 | $0.01 | ($0.01) | $0.06 | $0.05 | $0.03 | ($0.05) | $0 | $0.09 | $0.03 | $0.46 |
Diluted earnings per share: | |||||||||||
Income from continuing operations (in dollars per share) | $0.03 | $0.01 | $0.01 | $0.06 | $0.05 | $0.03 | $0.02 | $0 | $0.12 | $0.10 | $0.44 |
(Loss) income from discontinued operations (in dollars per share) | $0 | $0 | ($0.02) | $0 | $0 | $0 | ($0.08) | $0 | ($0.03) | ($0.07) | $0.01 |
Net income (in dollars per share) | $0.03 | $0.01 | ($0.01) | $0.06 | $0.05 | $0.03 | ($0.06) | $0 | $0.09 | $0.03 | $0.45 |
EARNINGS_PER_SHARE_Detail_Text
EARNINGS PER SHARE (Detail Textuals) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings Per Share [Abstract] | |||
Anti-dilutive shares excluded from diluted earning per share | 0.8 | 0.5 | 0.4 |
SEGMENT_INFORMATION_Revenue_Ge
SEGMENT INFORMATION - Revenue Generated From Customers Based Outside Of The U.S (Details) (Revenue) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue generated by external customers in foreign countries, percentage | 100.00% | 100.00% | 100.00% |
U.S. | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue generated by external customers in foreign countries, percentage | 94.00% | 94.00% | 88.00% |
Canada | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue generated by external customers in foreign countries, percentage | 4.00% | 4.00% | 10.00% |
Others | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue generated by external customers in foreign countries, percentage | 2.00% | 2.00% | 2.00% |
SEGMENT_INFORMATION_Detail_Tex
SEGMENT INFORMATION (Detail Textuals) | Dec. 31, 2014 | Dec. 31, 2013 |
Segment Reporting [Abstract] | ||
Long-lived assets located outside of the U.S. | 1.00% | 1.00% |
UNAUDITED_SELECTED_QUARTERLY_D2
UNAUDITED SELECTED QUARTERLY DATA - Summarize selected unaudited financial data for each quarter of the years (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net revenues | $24,855 | $25,663 | $22,578 | $20,773 | $22,173 | $21,951 | $17,271 | $16,437 | $93,869 | $77,832 | $65,032 |
Gross profit | 11,415 | 11,287 | 10,722 | 9,840 | 9,588 | 8,981 | 6,666 | 6,905 | 43,264 | 32,140 | 27,875 |
Operating earnings (loss) | 903 | 802 | -252 | 662 | 874 | 645 | -1,983 | 45 | 2,115 | -419 | 2,967 |
Income (loss) from continuing operations before income taxes | 737 | 621 | -444 | 1,741 | 1,135 | 540 | -2,042 | -37 | |||
Income tax expense (benefit) | 136 | 358 | -670 | 595 | 185 | -35 | -2,454 | -65 | 419 | -2,369 | -4,902 |
Income from continuing operations, net of income taxes | 601 | 263 | 226 | 1,146 | 950 | 575 | 412 | 28 | 2,236 | 1,965 | 7,033 |
Loss from discontinued operations | -436 | -56 | 61 | -1,424 | -17 | -492 | -1,380 | 132 | |||
Net income (loss) | $601 | $263 | ($210) | $1,090 | $1,011 | $575 | ($1,012) | $11 | $1,744 | $585 | $7,165 |
Basic earnings (loss) per share: | |||||||||||
Income from continuing operations (in dollars per share) | $0.03 | $0.01 | $0.01 | $0.06 | $0.05 | $0.03 | $0.02 | $0 | $0.12 | $0.11 | $0.46 |
Income (loss) from discontinued operations (in dollars per share) | $0 | $0 | ($0.02) | $0 | $0 | $0 | ($0.07) | $0 | ($0.03) | ($0.08) | $0 |
Net income (loss) (in dollars per share) | $0.03 | $0.01 | ($0.01) | $0.06 | $0.05 | $0.03 | ($0.05) | $0 | $0.09 | $0.03 | $0.46 |
Diluted earnings (loss) per share | |||||||||||
Income from continuing operations (in dollars per share) | $0.03 | $0.01 | $0.01 | $0.06 | $0.05 | $0.03 | $0.02 | $0 | $0.12 | $0.10 | $0.44 |
Income (loss) from discontinued operations (in dollars per share) | $0 | $0 | ($0.02) | $0 | $0 | $0 | ($0.08) | $0 | ($0.03) | ($0.07) | $0.01 |
Net income (loss) (in dollars per share) | $0.03 | $0.01 | ($0.01) | $0.06 | $0.05 | $0.03 | ($0.06) | $0 | $0.09 | $0.03 | $0.45 |
VALUATION_AND_QUALIFYING_ACCOU1
VALUATION AND QUALIFYING ACCOUNTS (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Accounts and financing receivables Allowance for uncollectible accounts | Continuing operations | ||||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||||
Balance at beginning of Period | $674 | $367 | $236 | |||
Additions charged to expense | 392 | 444 | 188 | |||
Deductions | 40 | [1] | -137 | [1] | -57 | [2] |
Balance at end of Period | 1,106 | 674 | 367 | |||
Accounts and financing receivables Allowance for uncollectible accounts | Discontinued operations | ||||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||||
Balance at beginning of Period | 600 | 16 | ||||
Additions charged to expense | 602 | 67 | ||||
Deductions | -600 | [1] | -18 | [1] | -51 | [2] |
Balance at end of Period | 600 | 16 | ||||
Inventory Reserve for obsolescence | Continuing operations | ||||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||||
Balance at beginning of Period | 1,110 | 332 | 578 | |||
Additions charged to expense | 544 | 807 | 148 | |||
Deductions | -257 | -29 | -394 | [3] | ||
Balance at end of Period | 1,397 | 1,110 | 332 | |||
Inventory Reserve for obsolescence | Discontinued operations | ||||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||||
Balance at beginning of Period | 30 | 30 | ||||
Additions charged to expense | ||||||
Deductions | -30 | 30 | [3] | |||
Balance at end of Period | 30 | 30 | ||||
Deferred tax assets Valuation allowance | Continuing operations | ||||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||||
Balance at beginning of Period | 1,545 | 1,650 | 11,000 | |||
Additions charged to expense | ||||||
Deductions | 1,563 | -105 | -9,350 | [3] | ||
Balance at end of Period | 3,108 | 1,545 | 1,650 | |||
Deferred tax assets Valuation allowance | Discontinued operations | ||||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||||
Balance at beginning of Period | 462 | 460 | ||||
Additions charged to expense | ||||||
Deductions | -462 | 2 | 460 | [3] | ||
Balance at end of Period | $462 | $460 | ||||
[1] | Amounts written off as uncollectible, net of recoveries | |||||
[2] | Amounts written off as uncollectible, net of recoveries and reclassification to discontinued operations | |||||
[3] | Includes reclassification to discontinued operations. |