Numerex (NMRX) 10-Q 11 May 15 2015 Q1 Quarterly report Financial data

Document_And_Entity_Informatio

Document And Entity Information	3 Months Ended
	Mar. 31, 2015	8-May-15
Document And Entity Information [Abstract]
Entity Registrant Name	NUMEREX CORP /PA/
Entity Central Index Key	870753
Trading Symbol	nmrx
Current Fiscal Year End Date	-19
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		18,984,563
Document Type	10-Q
Document Period End Date	31-Mar-15
Amendment Flag	FALSE
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1

UNAUDITED_CONDENSED_CONSOLIDAT

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified
CURRENT ASSETS
Cash and cash equivalents	$14,705	$17,270
Accounts receivable, less allowance for doubtful accounts of $1,786 and $1,106	13,231	12,287
Financing receivables, current	1,666	1,595
Inventory, net of reserve for obsolescence	8,091	8,410
Prepaid expenses and other current assets	2,436	2,329
Deferred tax assets, current	3,161	3,161
TOTAL CURRENT ASSETS	43,290	45,052
Financing receivables, less current portion	2,924	2,984
Property and equipment, net of accumulated depreciation and amortization of $4,385 and $3,815	4,861	4,889
Software, net of accumulated amortization	6,024	6,106
Other intangible assets, net of accumulated amortization	19,124	19,163
Goodwill	44,548	44,548
Deferred tax assets, less current portion	5,967	5,616
Other assets	2,714	2,585
TOTAL ASSETS	129,452	130,943
CURRENT LIABILITIES
Accounts payable	11,589	12,257
Accrued expenses and other current liabilities	2,686	2,471
Deferred revenues	1,889	2,258
Current portion of long-term debt	4,067	4,251
Obligations under capital lease	57	148
TOTAL CURRENT LIABILITIES	20,288	21,385
Long-term debt, less current portion	18,412	19,350
Other liabilities	1,751	1,346
TOTAL LIABILITIES	40,451	42,081
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY
Preferred stock, no par value; authorized 3,000; none issued
Common stock value
Additional paid-in capital	99,840	99,056
Treasury stock, at cost, 1,292 shares	-5,352	-5,352
Accumulated other comprehensive loss	-73	-48
Accumulated deficit	-5,414	-4,794
TOTAL SHAREHOLDERS' EQUITY	89,001	88,862
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	129,452	130,943
Class A Common Stock
SHAREHOLDERS' EQUITY
Common stock value
Class B Common Stock
SHAREHOLDERS' EQUITY
Common stock value

UNAUDITED_CONDENSED_CONSOLIDAT1

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, except Share data, unless otherwise specified
Accounts receivable, allowance for doubtful accounts (in dollars)	$1,786	$1,106
Accumulated depreciation and amortization	$4,385	$3,815
Preferred stock, no par value (in dollars per share)
Preferred stock, shares authorized	3,000	3,000
Preferred stock, shares issued
Treasury stock, at cost, shares	1,292	1,292
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	20,285	20,284
Common stock, shares outstanding	18,993	18,992
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

UNAUDITED_CONDENSED_CONSOLIDAT2

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME (USD $)	3 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Net revenues:
Subscription and support revenues	$16,529	$13,886
Embedded devices and hardware	5,149	6,887
Total net revenues	21,678	20,773
Cost of sales, exclusive of a portion of depreciation and amortization shown below:
Subscription and support revenues	6,719	5,359
Embedded devices and hardware	4,853	5,574
Gross profit	10,106	9,840
Operating expenses:
Sales and marketing	3,064	2,954
General and administrative	3,929	3,598
Engineering and development	2,293	1,278
Depreciation and amortization	1,654	1,348
Operating (loss) income	-834	662
Interest expense	210	54
Other income, net	-38	-1,133
(Loss) income from continuing operations before income taxes	-1,006	1,741
Income tax (benefit) expense	-386	595
(Loss) income from continuing operations, net of income taxes	-620	1,146
(Loss) from discontinued operations, net of income taxes		-56
Net (loss) income	-620	1,090
Other items of comprehensive income, net of income taxes:
Foreign currency translation adjustment	-25	-4
Comprehensive (loss) income	($645)	$1,086
Basic earnings per share:
(Loss) income from continuing operations (in dollars per share)	($0.03)	$0.06
(Loss) income from discontinued operations (in dollars per share)	$0	$0
Net (loss) income (in dollars per share)	($0.03)	$0.06
Diluted earnings per share:
(Loss) income from continuing operations (in dollars per share)	($0.03)	$0.06
(Loss) income from discontinued operations (in dollars per share)	$0	$0
Net (loss) income (in dollars per share)	($0.03)	$0.06
Weighted average shares outstanding used in computing earnings per share:
Basic (in shares)	18,993	18,853
Diluted (in shares)	18,993	19,350

UNAUDITED_CONDENSED_CONSOLIDAT3

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (USD $)	Common Shares	Additional Paid-in Capital	Treasury Stock	Accumulated Other Comprehensive Loss	Accumulated Deficit	Total
In Thousands, unless otherwise specified
Balance at Jan. 01, 2015	$20,284	$99,056	($5,352)	($48)	($4,794)	$88,862
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Equity-based compensation expense		783				783
Equity-based compensation plan activity	1
Value of shares retained to pay employee taxes		-2				-2
Translation adjustment				-25		-25
Other		3				3
Net loss					-620	-620
Balance at Mar. 31, 2015	$20,285	$99,840	($5,352)	($73)	($5,414)	$89,001

UNAUDITED_CONDENSED_CONSOLIDAT4

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Cash flows from operating activities:
Net (loss) income	($620)	$1,090
Less (loss) income from discontinued operations, net of income taxes		-56
(Loss) income from continuing operations, net of income taxes	-620	1,146
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization	1,881	1,419
Equity-based compensation expense	784	555
Deferred income taxes	-351	448
Bad debt expense	140	183
Inventory reserves	134	130
Gain on sale of cost method investment		-1,109
Other non-cash expense	21	9
Changes in assets and liabilities, net of effects of acquisitions:
Accounts and financing receivables	-1,094	-1,605
Inventory, net	185	-442
Accounts payable	-657	-446
Deferred revenue	51	56
Other	-154	-43
Net cash provided by operating activities	320	301
Cash flows from investing activities:
Purchases of property and equipment	-554	-847
Capitalized software development and purchases of software	-1,119	-910
Proceeds from sale of cost basis investment		1,308
Net cash used in investing activities	-1,673	-449
Cash flows from financing activities:
Principal payments on debt	-1,121	-105
Principal payments on capital lease obligations	-90	-69
Equity-based compensation plan activity	1	182
Payment of employee taxes on equity-based awards	-2	-106
Net cash used in financing activities	-1,212	-98
Cash flows from discontinued operations:
Cash provided by operating activities		29
Net cash provided by discontinued operations		29
Net decrease in cash and cash equivalents	-2,565	-217
Cash and cash equivalents at beginning of period	17,270	25,603
Cash and cash equivalents at end of period	14,705	25,386
Supplemental disclosures of cash flow information:
Cash paid for interest	191	54
Cash paid for income taxes	28	29
Disclosure of non-cash investing and financing activities:
Non cash interest	19
Capital expenditures in accounts payable	$407	$115

NATURE_OF_OPERATIONS_AND_BASIS

NATURE OF OPERATIONS AND BASIS OF PRESENTATION	3 Months Ended
	Mar. 31, 2015
Nature Of Operations And Basis Of Presentation [Abstract]
NATURE OF OPERATIONS AND BASIS OF PRESENTATION	NOTE A – NATURE OF OPERATIONS AND BASIS OF PRESENTATION
	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.
	We prepared the accompanying unaudited condensed consolidated financial statements in accordance with accounting principles generally accepted in the United States of America, referred to as GAAP, for interim financial information and the Rules and Regulations issued by the Securities Exchange Commission, or SEC, as applicable. These financial statements include all of our accounts and those of our wholly-owned subsidiaries. We have eliminated intercompany transactions and balances in consolidation.
	Certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted, although we believe that the disclosures made are adequate to make the information not misleading. In the opinion of management, the accompanying financial statements reflect all adjustments, which consist of normal recurring adjustments unless otherwise disclosed, considered necessary for a fair presentation of our financial position as of March 31, 2015 and our operating results and cash flows for the interim periods presented. The accompanying condensed consolidated balance sheet as of December 31, 2014 was derived from our audited financial statements, but does not include all disclosures required by GAAP. The financial information presented herein should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2014 which includes information and disclosures not included in this quarterly report.
	The preparation of financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses and related disclosure of contingent assets and liabilities. Actual results may differ materially from these estimates. Operating results for the three months ended March 31, 2015, may not be indicative of the results that may be expected for the year ending December 31, 2015 or any future periods.

MERGER

MERGER	3 Months Ended
	Mar. 31, 2015
Acquisition [Abstract]
MERGER	NOTE B – 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 Numerex. The purchase price of $37.5 million was composed of a cash payment of $37.3 million and a working capital adjustment of $0.2 million, subject to post-closing purchase price adjustments and escrows as provided in the merger agreement.
	Omnilink provided 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 included in our condensed consolidated financial statements commencing from the merger date.
	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):
			Fair Value			Estimated
						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.

INVENTORY

INVENTORY	3 Months Ended
	Mar. 31, 2015
Inventory [Abstract]
INVENTORY	NOTE C - INVENTORY
	Inventory consisted of the following (in thousands):
		March 31,			December 31,
		2015			2014
	Raw materials	$	1,663		$	2,228
	Finished goods		7,959			7,579
	Reserve for obsolescence		(1,531	)		(1,397	)
		$	8,091		$	8,410

INTANGIBLE_ASSETS

INTANGIBLE ASSETS	3 Months Ended
	Mar. 31, 2015
Intangible Assets [Abstract]
INTANGIBLE ASSETS	NOTE D – INTANGIBLE ASSETS
	Intangible Assets Other Than Goodwill
	Intangible assets other than goodwill are summarized as follows (dollars in thousands):
		As of March 31, 2015									As of December 31, 2014
		Remaining		Gross		Accumulated			Net Book		Gross		Accumulated			Net Book
		Useful Lives		Carrying		Amortization			Value		Carrying		Amortization			Value
				Amount							Amount
	Purchased and developed software		1.4	$	11,887	$	(7,134	)	$	4,753	$	11,176	$	(6,409	)	$	4,767
	Software in development		n/a		1,271		-			1,271		1,339		-			1,339
	Total software				13,158		(7,134	)		6,024		12,515		(6,409	)		6,106
	Licenses		0.4		12,763		(11,955	)		808		12,763		(11,886	)		877
	Customer relationships		8.3		8,287		(1,594	)		6,693		8,287		(1,359	)		6,928
	Technologies		13.1		4,998		(327	)		4,671		4,998		(237	)		4,761
	Patents and trademarks		3.9		4,220		(1,778	)		2,442		3,343		(1,657	)		1,686
	Trade names		Indefinite		3,632		-			3,632		3,632		-			3,632
	Other		n/a		878		-			878		1,279		-			1,279
	Total other intangible assets				34,778		(15,654	)		19,124		34,302		(15,139	)		19,163
				$	47,936	$	(22,788	)	$	25,148	$	46,817	$	(21,548	)	$	25,269
	Remaining useful lives in the preceding table were calculated on a weighted average basis as of March 31, 2015. We did not incur significant costs to renew or extend the term of acquired intangible assets during the three months ending March 31, 2015.
	Amortization expense related to intangible assets was $1.2 million and $1.0 million for the three months ended March 31, 2015 and 2014, respectively. Amortization expense recorded in cost of subscription revenues in the accompanying condensed consolidated statements of operations and comprehensive (loss) income was $0.2 million and $0.1 million for the three months ended March 31, 2015 and 2014, respectively. Additionally, we have capitalized approximately $0.4 million and $0.5 million, respectively of internally generated software development costs for the three months ended March 31, 2015 and 2014 respectively.

INCOME_TAXES

INCOME TAXES	3 Months Ended
	Mar. 31, 2015
Income Taxes [Abstract]
INCOME TAXES	NOTE E – INCOME TAXES
	We calculate our interim income tax provision in accordance with the accounting guidance for income taxes in interim periods. At the end of each interim period, we make our best estimate of the annual expected effective tax rate and apply that rate to our ordinary year-to-date income or loss.  In addition, we calculate a year-to-date adjustment to increase or decrease our income tax provision to take into account our current expected effective tax rate.  The tax or benefit related to significant, unusual, or extraordinary items that will be separately reported or reported net of their related tax effect are individually computed and recognized in the interim period in which those items occur.
	For the three months ended March 31, 2015, we recorded income tax benefit from continuing operations of $0.4 million, as compared to an income tax expense of $0.6 million for the three months ended March 31, 2014.  Our effective tax rates for the three months ended March 31, 2015 and 2014 were 38.4% and 34.2% respectively. The effective tax rate for the three months ended March 31, 2015 and 2014 differed from the federal statutory rate applied to income and losses before income taxes primarily as a result of the effect of expenses that are not deductible for income tax purposes and state income taxes, including the tax effect of changes in effective state income tax rates, partially offset by an income tax benefit on disqualifying dispositions of incentive stock options.
	We continue to maintain a valuation allowance for deferred tax assets related to certain state and foreign net operating losses, and federal loss carryforwards for which we have determined it is more likely than not expiration will occur before utilization. We file U.S., state and foreign income tax returns in jurisdictions with varying statutes of limitation. The 2011 through 2014 tax years generally remain subject to examination by federal and most state tax authorities. However, certain returns from years in which net operating losses have arisen are still open for examination by the tax authorities.

DEBT

DEBT	3 Months Ended
	Mar. 31, 2015
Debt Disclosure [Abstract]
DEBT	NOTE F – DEBT
	Debt consisted of the following (dollars in thousands):
		March 31,		December 31,
		2015		2014
	Note payable to Silicon Valley Bank, with interest at our option of prime rate or LIBOR rate plus margin	$	22,162	$	23,125
	Seller financed note payable, with interest at 4.25%, monthly payments of principal and interest, secured by equipment, due September 2015		317		476
			22,479		23,601
	Less current portion of long-term debt		4,067		4,251
	Noncurrent portion of long-term debt	$	18,412	$	19,350
	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 March 31, 2015, 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.
	The maturity date of the loan is May 5, 2019 with regular required quarterly principal payments which began June 30, 2014. The scheduled outstanding principal balance of $5.0 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).
	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.
	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 March 31, 2015.
	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 March 31, 2015) and is payable in monthly installments through September 2015. As of March 31, 2015, the balance outstanding on the Promissory Note was $0.3 million, all classified as current.

NET_LOSS_EARNINGS_PER_SHARE

NET (LOSS) EARNINGS PER SHARE	3 Months Ended
	Mar. 31, 2015
Net Earnings Per Share [Abstract]
NET (LOSS) EARNINGS PER SHARE	NOTE G – NET (LOSS) EARNINGS PER SHARE
	Basic (loss) earnings per share is computed by dividing net (loss) income available to common shareholders by the weighted average number of common shares outstanding during the period excluding the dilutive impact of common stock equivalents. Diluted earnings per share include the effect of all potentially dilutive securities on earnings per share. The dilutive effect of outstanding equity-based compensation awards is computed using the treasury stock method. The computation of diluted earnings per share does not assume exercise of securities that would have an anti-dilutive effect on earnings.
	The following table presents a reconciliation of the shares used in the calculation of basic and diluted net (loss) income per share from continuing operations contained in our condensed consolidated statements of operations and comprehensive (loss) income (in thousands):
		For the Three Months Ended
		March 31,
		2015			2014
	(Loss) income from continuing operations	$	(620	)	$	1,146
	Weighted average shares outstanding:
	Basic		18,993			18,853
	Dilutive effect of common stock equivalents		-			497
	Total		18,993			19,350
	Anti-dilutive equity-based compensation awards		727			510

RECENT_ACCOUNTING_PRONOUNCEMEN

RECENT ACCOUNTING PRONOUNCEMENTS	3 Months Ended
	Mar. 31, 2015
Recent Accounting Pronouncements [Abstract]
RECENT ACCOUNTING PRONOUNCEMENTS	NOTE H – RECENT ACCOUNTING PRONOUNCEMENTS
	In March 2015, the Financial Accounting Standards Board (FASB) issued guidance about simplifying the presentation of debt issuance costs. The guidance is intended to help clarify debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected. The amendments are effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within fiscal years beginning after December 15, 2016. We do not expect the adoption of this guidance to have a material impact on our financial position or results of operations.
	In August 2014, the 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 our 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 was set to become effective for us for fiscal years, and interim reporting periods within those years, beginning January 1, 2017 and will require retrospective application when adopted. In May 2015, the FASB issued for public comment a proposed Accounting Standards Update (ASU), Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, which would defer the effective date of its new revenue recognition standard by one year beginning January 1, 2018. We are currently in the process of evaluating the impact of adoption on our consolidated financial statements.

MERGER_Tables

MERGER (Tables)	3 Months Ended
	Mar. 31, 2015
Acquisition [Abstract]
Schedule of allocation of the purchase price and summary of estimated useful lives			Fair Value			Estimated
						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.

INVENTORY_Tables

INVENTORY (Tables)	3 Months Ended
	Mar. 31, 2015
Inventory [Abstract]
Schedule of inventory		March 31,			December 31,
		2015			2014
	Raw materials	$	1,663		$	2,228
	Finished goods		7,959			7,579
	Reserve for obsolescence		(1,531	)		(1,397	)
		$	8,091		$	8,410

INTANGIBLE_ASSETS_Tables

INTANGIBLE ASSETS (Tables)	3 Months Ended
	Mar. 31, 2015
Intangible Assets [Abstract]
Schedule of intangible assets other than goodwill		As of March 31, 2015									As of December 31, 2014
		Remaining		Gross		Accumulated			Net Book		Gross		Accumulated			Net Book
		Useful Lives		Carrying		Amortization			Value		Carrying		Amortization			Value
				Amount							Amount
	Purchased and developed software		1.4	$	11,887	$	(7,134	)	$	4,753	$	11,176	$	(6,409	)	$	4,767
	Software in development		n/a		1,271		-			1,271		1,339		-			1,339
	Total software				13,158		(7,134	)		6,024		12,515		(6,409	)		6,106
	Licenses		0.4		12,763		(11,955	)		808		12,763		(11,886	)		877
	Customer relationships		8.3		8,287		(1,594	)		6,693		8,287		(1,359	)		6,928
	Technologies		13.1		4,998		(327	)		4,671		4,998		(237	)		4,761
	Patents and trademarks		3.9		4,220		(1,778	)		2,442		3,343		(1,657	)		1,686
	Trade names		Indefinite		3,632		-			3,632		3,632		-			3,632
	Other		n/a		878		-			878		1,279		-			1,279
	Total other intangible assets				34,778		(15,654	)		19,124		34,302		(15,139	)		19,163
				$	47,936	$	(22,788	)	$	25,148	$	46,817	$	(21,548	)	$	25,269

DEBT_Tables

DEBT (Tables)	3 Months Ended
	Mar. 31, 2015
Debt Disclosure [Abstract]
Schedule of debt		March 31,		December 31,
		2015		2014
	Note payable to Silicon Valley Bank, with interest at our option of prime rate or LIBOR rate plus margin	$	22,162	$	23,125
	Seller financed note payable, with interest at 4.25%, monthly payments of principal and interest, secured by equipment, due September 2015		317		476
			22,479		23,601
	Less current portion of long-term debt		4,067		4,251
	Noncurrent portion of long-term debt	$	18,412	$	19,350

NET_LOSS_EARNINGS_PER_SHARE_Ta

NET (LOSS) EARNINGS PER SHARE (Tables)	3 Months Ended
	Mar. 31, 2015
Net Earnings Per Share [Abstract]
Schedule of basic and diluted weighted average shares outstanding for earnings per share calculations
		For the Three Months Ended
		March 31,
		2015			2014
	(Loss) income from continuing operations	$	(620	)	$	1,146
	Weighted average shares outstanding:
	Basic		18,993			18,853
	Dilutive effect of common stock equivalents		-			497
	Total		18,993			19,350
	Anti-dilutive equity-based compensation awards		727			510

MERGER_Summary_of_provisional_

MERGER - Summary of provisional measurements (Details) (USD $)	0 Months Ended
In Thousands, unless otherwise specified	5-May-14		Mar. 31, 2015	Dec. 31, 2014
Business Acquisition [Line Items]
Goodwill			$44,548	$44,548
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
Estimated useful lives of acquired finite lived intangible assets	11 years
Omnilink Systems, Inc. | Technology
Business Acquisition [Line Items]
Intangible assets other than goodwill	4,998
Estimated useful lives of acquired finite lived 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_Detail_Textuals

MERGER (Detail Textuals) (Omnilink Systems, Inc., Merger agreement, USD $)	0 Months Ended
In Millions, unless otherwise specified	5-May-14
Omnilink Systems, Inc. | Merger agreement
Business Acquisition [Line Items]
Total consideration	$37.50
Consideration paid in cash	37.3
Working capital adjustment	$0.20

MERGER_Detail_Textuals_1

MERGER (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

INVENTORY_Summary_of_inventory

INVENTORY - Summary of inventory (Details) (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified
Inventory [Abstract]
Raw materials	$1,663	$2,228
Finished goods	7,959	7,579
Reserve for obsolescence	-1,531	-1,397
Inventory, net	$8,091	$8,410

INTANGIBLE_ASSETS_Summary_of_i

INTANGIBLE ASSETS - Summary of intangible assets other than goodwill (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Gross Carrying Amount	$47,936	$46,817
Accumulated Amortization	-22,788	-21,548
Net Book Value	25,148	25,269
Purchased and developed software
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Weighted Remaining Average Useful Lives	1 year 4 months 24 days
Gross Carrying Amount	11,887	11,176
Accumulated Amortization	-7,134	-6,409
Net Book Value	4,753	4,767
Software in development
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Gross Carrying Amount	1,271	1,339
Accumulated Amortization
Net Book Value	1,271	1,339
Total software
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Gross Carrying Amount	13,158	12,515
Accumulated Amortization	-7,134	-6,409
Net Book Value	6,024	6,106
Licenses
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Weighted Remaining Average Useful Lives	4 months 24 days
Gross Carrying Amount	12,763	12,763
Accumulated Amortization	-11,955	-11,886
Net Book Value	808	877
Customer relationships
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Weighted Remaining Average Useful Lives	8 years 3 months 18 days
Gross Carrying Amount	8,287	8,287
Accumulated Amortization	-1,594	-1,359
Net Book Value	6,693	6,928
Technologies
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Weighted Remaining Average Useful Lives	13 years 1 month 6 days
Gross Carrying Amount	4,998	4,998
Accumulated Amortization	-327	-237
Net Book Value	4,671	4,761
Patents and trademarks
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Weighted Remaining Average Useful Lives	3 years 10 months 24 days
Gross Carrying Amount	4,220	3,343
Accumulated Amortization	-1,778	-1,657
Net Book Value	2,442	1,686
Trade names
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Weighted Remaining Average Useful Lives	Indefinite
Gross Carrying Amount	3,632	3,632
Net Book Value	3,632	3,632
Other
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Gross Carrying Amount	878	1,279
Accumulated Amortization
Net Book Value	878	1,279
Total Other Intangibles
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Gross Carrying Amount	34,778	34,302
Accumulated Amortization	-15,654	-15,139
Net Book Value	$19,124	$19,163

INTANGIBLE_ASSETS_Detail_Textu

INTANGIBLE ASSETS (Detail Textuals) (USD $)	3 Months Ended
In Millions, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Intangible Assets [Abstract]
Amortization of intangible assets	$1.20	$1
Amortization of intangible assets is recorded in cost of subscription revenue	0.2	0.1
Internally generated software development costs	$0.40	$0.50

INCOME_TAXES_Detail_Textuals

INCOME TAXES (Detail Textuals) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Income Taxes [Abstract]
Income tax expense (benefit)	($386)	$595
Effective tax rates	38.40%	34.20%

DEBT_Summary_of_debt_Details

DEBT - Summary of debt (Details) (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified
Debt Instrument [Line Items]
Long-term debt, total	$22,479	$23,601
Less current portion of long-term debt	4,067	4,251
Noncurrent portion of long-term debt	18,412	19,350
Note payable to Silicon Valley Bank, with interest at our option of prime rate or LIBOR rate plus margin
Debt Instrument [Line Items]
Long-term debt, total	22,162	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]
Long-term debt, total	$317	$476

DEBT_Summary_of_debt_Parenthet

DEBT - Summary of debt (Parentheticals) (Details)	Mar. 31, 2015
Debt Disclosure [Abstract]
Interest rate of seller financed note payable	4.25%

DEBT_Detail_Textuals

DEBT (Detail Textuals) (Silicon Valley Bank, USD $)	0 Months Ended
In Millions, unless otherwise specified	5-May-14	Mar. 31, 2015
Term loan
Debt Instrument [Line Items]
Available credit amount	$25
Outstanding principal balance		5
Interest rate applicable to amounts drawn	2.75%
Revolving line of credit
Debt Instrument [Line Items]
Available credit amount	5
Amount available under the revolving line of credit		$0.50

DEBT_Detail_Textuals_1

DEBT (Detail Textuals 1) (USD $)	1 Months Ended
In Millions, unless otherwise specified	Oct. 31, 2012	Mar. 31, 2015
Promissory Note
Debt Instrument [Line Items]
Promissory note payable		0.3
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%

NET_LOSS_EARNINGS_PER_SHARE_Ba

NET (LOSS) EARNINGS PER SHARE - Basic and diluted weighted average shares outstanding for earnings per share calculations (Details) (USD $)	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Net Earnings Per Share [Abstract]
(Loss) income from continuing operations (in dollars)	($620)	$1,146
Weighted average shares outstanding:
Basic	18,993,000	18,853,000
Dilutive effect of common stock equivalents		497,000
Total	18,993,000	19,350,000
Anti-dilutive equity-based compensation awards	727,000	510,000