Numerex (NMRX) 10-Q 9 Nov 15 2015 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Nov. 03, 2015
Document And Entity Information [Abstract]
Entity Registrant Name	NUMEREX CORP /PA/
Entity Central Index Key	870,753
Trading Symbol	nmrx
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		19,254,706
Document Type	10-Q
Document Period End Date	Sep. 30, 2015
Amendment Flag	false
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3

UNAUDITED CONDENSED CONSOLIDATE

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
CURRENT ASSETS
Cash and cash equivalents	$ 12,482	$ 17,270
Accounts receivable, less allowance for doubtful accounts of $2,052 and $1,106	14,092	12,287
Financing receivables, current	1,789	1,595
Inventory, net of reserves	7,974	8,410
Prepaid expenses and other current assets	2,054	2,329
Deferred tax assets, current		3,161
TOTAL CURRENT ASSETS	38,391	45,052
Financing receivables, less current portion	2,687	2,984
Property and equipment, net of accumulated depreciation and amortization	4,492	4,889
Software, net of accumulated amortization	6,958	6,106
Other intangible assets, net of accumulated amortization	17,512	19,163
Goodwill	43,424	44,348
Deferred tax assets, less current portion		5,816
Other assets	1,107	2,585
TOTAL ASSETS	114,571	130,943
CURRENT LIABILITIES
Accounts payable	12,011	12,257
Accrued expenses and other current liabilities	3,062	2,471
Deferred revenues	2,026	2,258
Current portion of long-term debt	3,750	4,251
Obligations under capital lease		148
TOTAL CURRENT LIABILITIES	20,849	21,385
Long-term debt, less current portion	16,537	19,350
Noncurrent deferred taxes	1,170
Other liabilities	1,759	1,346
TOTAL LIABILITIES	$ 40,315	$ 42,081
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY
Preferred stock, no par value; 3,000 authorized; none issued
Additional paid-in capital	$ 101,319	$ 99,056
Treasury stock, at cost; 1,307 and 1,292 shares	(5,444)	(5,352)
Accumulated other comprehensive loss	(95)	(48)
Accumulated deficit	(21,524)	(4,794)
TOTAL SHAREHOLDERS' EQUITY	74,256	88,862
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 114,571	$ 130,943
Class A Common Stock
SHAREHOLDERS' EQUITY
Common stock value
Class B Common Stock
SHAREHOLDERS' EQUITY
Common stock value

UNAUDITED CONDENSED CONSOLIDAT3

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) shares in Thousands, $ / shares in Thousands, $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Accounts receivable, allowance for doubtful accounts (in dollars)	$ 2,052	$ 1,106
Preferred stock, no par value (in dollars per share)	$ 0	$ 0
Preferred stock, shares authorized	3,000	3,000
Preferred stock, shares issued	0	0
Treasury stock, at cost, shares	1,307	1,292
Class A Common Stock
Common stock, no par value (in dollars per share)	$ 0	$ 0
Common stock, shares authorized	30,000	30,000
Common stock, shares issued	20,532	20,284
Common stock, shares outstanding	19,225	18,992
Class B Common Stock
Common stock, no par value (in dollars per share)	$ 0	$ 0
Common stock, shares authorized	5,000	5,000
Common stock, shares issued	0	0

UNAUDITED CONDENSED CONSOLIDAT4

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Net revenues:
Subscription and support revenues	$ 15,624	$ 17,429	$ 48,874	$ 47,530
Embedded devices and hardware	7,710	8,234	21,791	21,483
Total net revenues	23,334	25,663	70,665	69,013
Cost of sales, exclusive of a portion of depreciation and amortization shown below:
Subscription and support revenues	6,538	7,011	19,728	18,647
Embedded devices and hardware	6,958	7,236	19,582	18,102
Inventory reserves	1,277	129	1,547	415
Impairment of other asset	1,275		1,275
Gross profit	7,286	11,287	28,533	31,849
Operating expenses:
Sales and marketing	3,047	3,029	9,136	9,066
General and administrative	4,507	3,429	12,108	11,207
Engineering and development	2,201	2,430	6,695	5,794
Depreciation and amortization	2,100	1,597	5,411	4,570
Impairment of goodwill and other intangible assets	1,250		1,250
Operating (loss) income	(5,819)	802	(6,067)	1,212
Interest expense	188	278	604	564
Other income, net	(31)	(97)	(100)	(1,272)
(Loss) income from continuing operations before income taxes	(5,976)	621	(6,571)	1,920
Income tax expense	10,404	358	10,159	283
(Loss) income from continuing operations, net of income taxes	(16,380)	263	(16,730)	1,637
Loss from discontinued operations, net of income taxes				(492)
Net (loss) income	(16,380)	263	(16,730)	1,145
Other items of comprehensive income, net of income taxes:
Foreign currency translation adjustment	30	(13)	47	(10)
Comprehensive (loss) income	$ (16,350)	$ 250	$ (16,683)	$ 1,135
Basic (loss) earnings per share:
(Loss) income from continuing operations (in dollars per share)	$ (0.86)	$ 0.01	$ (0.88)	$ 0.09
Loss from discontinued operations (in dollars per share)				(0.03)
Net (loss) income (in dollars per share)	(0.86)	0.01	(0.88)	0.06
Diluted (loss) earnings per share:
(Loss) income from continuing operations (in dollars per share)	(0.86)	0.01	(0.88)	0.09
Loss from discontinued operations (in dollars per share)				(0.03)
Net (loss) income (in dollars per share)	$ (0.86)	$ 0.01	$ (0.88)	$ 0.06
Weighted average shares outstanding used in computing earnings per share:
Basic (in shares)	19,137	18,956	19,053	18,900
Diluted (in shares)	19,137	19,263	19,053	19,253

UNAUDITED CONDENSED CONSOLIDAT5

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY - 9 months ended Sep. 30, 2015 - USD ($) shares in Thousands, $ in Thousands	Common Shares	Additional Paid-in Capital	Treasury Stock	Accumulated Other Comprehensive Loss	Accumulated Deficit	Total
Balance at Dec. 31, 2014		$ 99,056	$ (5,352)	$ (48)	$ (4,794)	$ 88,862
Balance (in shares) at Dec. 31, 2014	20,284
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Equity-based compensation expense		2,319				2,319
Equity-based compensation expense (in shares)	133
Equity-based compensation plan activity		138				138
Equity-based compensation plan activity (in shares)	114
Value of shares retained to pay employee taxes		(199)	(92)			(291)
Translation adjustment				(47)		(47)
Other		5				5
Other (in shares)	1
Net loss					(16,730)	(16,730)
Balance at Sep. 30, 2015		$ 101,319	$ (5,444)	$ (95)	$ (21,524)	$ 74,256
Balance (in shares) at Sep. 30, 2015	20,532

UNAUDITED CONDENSED CONSOLIDAT6

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash flows from operating activities:
Net (loss) income	$ (16,730)	$ 1,145
Less loss from discontinued operations, net of income taxes		(492)
(Loss) income from continuing operations, net of income taxes	(16,730)	1,637
Adjustments to reconcile net (loss) income from continuing operations to net cash provided by operating activities:
Depreciation and amortization	6,163	4,969
Impairment of goodwill, other intangible assets and other assets	2,525
Equity-based compensation expense	2,319	1,833
Deferred income taxes	10,147	36
Bad debt expense	400	364
Inventory reserves	1,547	415
Gain on sale of cost method investment		(1,109)
Other non-cash expense	63	76
Changes in assets and liabilities, net of effects of acquisitions:
Accounts and financing receivables	(1,898)	(1,638)
Inventory, net	(861)	613
Accounts payable	(31)	208
Deferred revenue	231	(77)
Other	249	(275)
Net cash provided by operating activities	4,124	7,052
Cash flows from investing activities:
Net cash paid for acquisition		(37,113)
Purchases of property and equipment	(1,984)	(1,335)
Capitalized software development and purchases of software	(3,314)	(2,709)
Proceeds from sale of cost basis investment		1,309
Net cash used in investing activities	(5,298)	(39,848)
Cash flows from financing activities:
Principal payments on debt	(3,313)	(1,725)
Principal payments on capital lease obligations	(148)	(221)
Proceeds from long-term debt		25,000
Equity-based compensation plan activity	138	935
Payment of taxes on equity-based awards	(291)	(288)
Deferred financing costs		(293)
Net cash (used in) provided by financing activities	(3,614)	23,408
Cash flows from discontinued operations:
Cash provided by operating activities		142
Net decrease in cash and cash equivalents	(4,788)	(9,246)
Cash and cash equivalents at beginning of period	17,270	25,603
Cash and cash equivalents at end of period	12,482	16,357
Supplemental disclosures of cash flow information:
Cash paid for interest	513	488
Cash paid for income taxes	70	83
Disclosure of non-cash investing and financing activities:
Capital expenditures in accounts payable	$ 203	386
Note issued in conjunction with disposal of discontinued operations		$ 35

NATURE OF OPERATIONS AND BASIS

NATURE OF OPERATIONS AND BASIS OF PRESENTATION	9 Months Ended
	Sep. 30, 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 managed 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 September 30, 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 and nine months ended September 30, 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	9 Months Ended
	Sep. 30, 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. Omnilink provides tracking and monitoring services for people and valuable assets via Omnilink’s M2M platform that connects hardware, networks, software, and support services. Our combination with Omnilink has provided operating synergies and created 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): 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 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 fair value of acquired software was estimated using a cost approach based on assumptions of our historical software development costs. The fair value of trade names was based on an income approach with key assumptions including estimated royalty rates to license the trade names 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. The gross amount of accounts receivable in the table above is $2.9 million. Based on the nature and financial strength of the customers on the date of acquisition, we expected to collect amounts due for the accounts receivable of $2.7 million. The value of the deferred tax asset and goodwill as disclosed above reflect a subsequent measurement period adjustment of $0.2 million recorded during the three months ended June 30, 2015 to record the final calculation of acquired deferred tax assets. 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. The measurement period adjustment resulted in recasting the December 31, 2014 consolidated balance sheet, as follows (in thousands): December 31, Measurement December 31, 2014 Period 2014 As Reported Adjustment Recast Assets Goodwill $ 44,548 $ (200 ) $ 44,348 Deferred tax assets, less current portion 5,616 200 5,816 $ 50,164 $ - $ 50,164 The measurement period adjustment had no effect on the statements of operations and comprehensive (loss) income or cash flows.

INVENTORY

INVENTORY	9 Months Ended
	Sep. 30, 2015
Inventory [Abstract]
INVENTORY	NOTE C - INVENTORY Inventory consisted of the following (in thousands): September 30, December 31, 2015 2014 Raw materials $ 2,109 $ 2,228 Finished goods 8,559 7,579 Inventory reserves (2,694 ) (1,397 ) $ 7,974 $ 8,410 In September 2015, we entered into new and amended agreements with wireless carriers that make adding 2G devices to wireless networks financially unfavorable under most circumstances. As a result of these agreements, we performed a lower of cost or market analysis leading to a significant increase in the inventory reserve of $1.1 million related to older, second generation (2G) cellular telecommunication devices and older satellite devices as well as an accrual for a purchase commitment related to raw materials for the older satellite devices that we will not fulfill.

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	9 Months Ended
	Sep. 30, 2015
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT	NOTE D – PROPERTY AND EQUIPMENT Property and equipment consisted of the following (in thousands): September 30, December 31, 2015 2014 Computer, network and other equipment $ 6,394 $ 5,925 Monitoring equipment 2,834 1,705 Furniture and fixtures 888 746 Leasehold improvements 357 328 Total property and equipment 10,473 8,704 Accumulated depreciation and amortization (5,981 ) (3,815 ) $ 4,492 $ 4,889 Monitoring equipment includes devices and hardware owned by us and used by customers under managed service arrangements. Depreciation expense for monitoring equipment included in cost of sales for subscription and support revenues in the accompanying condensed consolidated statements of operations and comprehensive (loss) income was $0.3 million and $0.2 million for the three months ended September 30, 2015 and 2014, respectively, and $0.8 million and $0.4 million for the nine months ended September 30, 2015 and 2014, respectively. During the three and nine months ended September 30, 2015, we recognized additional depreciation expense of $0.4 million for managed service devices and hardware used by a financially troubled customer.

INTANGIBLE ASSETS

INTANGIBLE ASSETS	9 Months Ended
	Sep. 30, 2015
Intangible Assets [Abstract]
INTANGIBLE ASSETS	NOTE E – INTANGIBLE ASSETS Intangible Assets Other Than Goodwill Intangible assets other than goodwill are summarized as follows (dollars in thousands): As of September 30, 2015 As of December 31, 2014 Gross Gross Remaining Carrying Accumulated Net Book Carrying Accumulated Net Book Useful Lives Amount Amortization Value Amount Amortization Value Purchased and developed software 1.2 $ 13,233 $ (8,658 ) $ 4,575 $ 11,176 $ (6,409 ) $ 4,767 Software in development n/a 2,383 - 2,383 1,339 - 1,339 Total software 15,616 (8,658 ) 6,958 12,515 (6,409 ) 6,106 Licenses 0.4 12,786 (12,081 ) 705 12,763 (11,886 ) 877 Customer relationships 7.8 8,287 (2,064 ) 6,223 8,287 (1,359 ) 6,928 Technologies 12.6 4,998 (506 ) 4,492 4,998 (237 ) 4,761 Patents and trademarks 3.6 4,018 (2,027 ) 1,991 3,343 (1,657 ) 1,686 Trade names Indefinite 3,632 - 3,632 3,632 - 3,632 Other n/a 469 - 469 1,279 - 1,279 Total other intangible assets 34,190 (16,678 ) 17,512 34,302 (15,139 ) 19,163 $ 49,806 $ (25,336 ) $ 24,470 $ 46,817 $ (21,548 ) $ 25,269 Remaining useful lives in the preceding table were calculated on a weighted average basis as of September 30, 2015. We did not incur significant costs to renew or extend the term of acquired intangible assets during the three or nine months ending September 30, 2015. Amortization expense related to intangible assets was $1.3 million and $3.8 million for the three and nine months ended September 30, 2015 compared to $1.2 million and $3.4 million and for the respective periods in 2014. Amortization expense recorded in cost of subscription revenues in the accompanying condensed consolidated statements of operations and comprehensive (loss) income was $0.3 million and $0.8 million for the three and nine months ended September 30, 2015, and $0.2 million and $0.4 million for the three and nine months ended September 30, 2014. Additionally, we have capitalized approximately $0.6 million and $1.8 million of internally generated software development costs for the three and nine months ended September 30, 2015, respectively and $0.6 million and $1.6 million for the three and nine months ended September 30, 2014, respectively. Impairment of Goodwill and Patents and Trademarks Our Do-It-Yourself (DIY) product line and reporting unit is not generating results of operations consistent with our expectations and previous forecasts and management is evaluating different strategic options for the reporting unit. These factors were triggering events that it was more likely than not that the fair value of the DIY reporting unit was less than its carrying amount. As a result, we performed our initial assessment of Goodwill for impairment of the DIY reporting unit, along with other intangible assets of the reporting unit, in the period ending September 30, 2015. The DIY reporting unit included $2.6 million in recorded goodwill and $0.6 million carrying value of patents along with an additional $1.3 million in other intangible assets. We estimated the fair value of the reporting unit using a combination of market and income approaches and concluded that the estimated fair value of the reporting unit was less than its carrying value. We assessed the implied fair value of goodwill in the same manner as if we were acquiring the reporting unit in a business combination. Specifically, we allocated the estimated fair value of the reporting unit to all of the assets and liabilities of that unit, including any unrecognized intangible assets, in a hypothetical calculation, referred to as Step 2. We assessed the amortizing long-lived assets for impairment based on undiscounted cash flows and concluded that the carrying value of patents may not be recoverable. As a result, the fair value of patents was estimated using an income approach. Based on preliminary Step 2 calculations, we have recorded impairments of $0.9 million for goodwill and $0.3 million for patents during the period ending September 30, 2015. The amount of the impairments is an estimate that has not been finalized prior to filing this quarterly report. We expect to finalize Step 2 of the goodwill analysis and finalize the impairment of patents during the quarter ended December 31, 2015. Activity for the carrying amount of goodwill for the nine months ended September 30, 2015 is summarized as follows (in thousands): January 1, 2015 $ 44,348 DIY reporting unit impairment (924 ) September 30, 2015 $ 43,424 The January 1, 2015 goodwill balance of $44,348 reflects a final measurement period adjustment of $0.2 million related to deferred tax assets. See Note B – Merger.

OTHER ASSETS

OTHER ASSETS	9 Months Ended
	Sep. 30, 2015
Other Assets, Noncurrent [Abstract]
OTHER ASSETS	NOTE F – OTHER ASSETS Other noncurrent assets consisted of the following (in thousands): September 30, December 31, 2015 2014 Deferred activation fees $ 414 $ 310 Prepaid carrier fees 375 1,860 Deferred financing fees 201 260 Deposits 117 155 $ 1,107 $ 2,585 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. During 2014, we made a prepayment of $0.4 million to the same carrier to license additional network access. Both prepaid expenses were being amortized in cost of sales for subscription and support revenue on a straight-line basis over the term of the agreement, which was to expire in 2021. In September 2015, we entered into a mutual agreement with the vendor to (1) cancel the existing agreement, (2) purchase certain equipment from the vendor and (3) assume certain national

INCOME TAXES

INCOME TAXES	9 Months Ended
	Sep. 30, 2015
Income Taxes [Abstract]
INCOME TAXES	NOTE G – 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. In assessing the realizability of deferred tax assets, we consider whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. We consider projections of future taxable income, tax planning strategies and the reversal of temporary differences in making this assessment. At September 30, 2015, we determined that we would not meet the criteria of “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 cumulative loss over the past three years. Accordingly, we recorded a valuation allowance against these items. The deferred tax assets consist of federal net operating losses, state net operating losses, tax credits, and other deferred tax assets, most of which expire between 2015 and 2035. We will maintain the valuation allowance against the net deferred tax assets until sufficient positive evidence outweighs any negative evidence to support reversal. Future reversals or increases to the valuation allowance could have a significant impact on our future earnings. As a result of recording a valuation allowance as of September 30, 2015, we recognized deferred tax expense of $10.4 million, representing an effective tax rate of (174.1%), for the three months ended September 30, 2015 and deferred tax expense of $10.1 million, representing an effective tax rate of (154.6%), for the nine months ended September 30, 2015. The remaining difference of $0.3 million in income tax expense for the three months ended September 30, 2015 is primarily reversing the previous year-to-date benefit. For the nine months ended September 30, 2015, the remaining difference of $0.1 million in income tax expense is for state income taxes that cannot utilize offsetting net operating losses. Income tax expense recorded in the future will be reduced or increased to the extent of offsetting decreases or increases to the valuation allowance. For the three and nine months ended September 30, 2014, we recorded income tax expense from continuing operations of $0.4 million and $0.3 million, respectively, representing effective tax rates of 57.6% and 14.7%, respectively. Our income tax expense of $0.4 million for the three months ended September 30, 2014 included a year-to-date adjustment of $0.2 million or 31.3% of the quarter’s pre-tax income, to increase our tax provision for the six months ended June 30, 2014 to the estimated annual effective tax rate. Our effective tax rates for the three and nine months ended September 30, 2014 differed from the federal statutory rate applied to income and losses before income taxes primarily as a result of a number of discrete items, including (1) the effect of expenses that are not deductible for income tax purposes, including a portion of transaction costs incurred in the Omnilink merger and (2) state income taxes, including the tax effect of changes in effective state income tax rates resulting from the merger with Omnilink. In addition, the effective tax rate for the nine months ended September 30, 2014, was reduced for the income tax benefit from the capital loss on the disposal of BNI due to the ability to offset capital gains in our current tax year and to carry back for capital gains in prior tax years. We file U.S., state and foreign income tax returns in jurisdictions with varying statutes of limitation. The 2012 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	9 Months Ended
	Sep. 30, 2015
Debt Disclosure [Abstract]
DEBT	NOTE H – DEBT Debt consisted of the following (dollars in thousands): September 30, December 31, 2015 2014 Note payable to Silicon Valley Bank, with interest at our option of prime rate or LIBOR rate plus margin $ 20,287 $ 23,125 Seller financed note payable, with interest at 4.25%, monthly payments of principal and interest, secured by equipment, due September 2015 - 476 20,287 23,601 Less current portion of long-term debt 3,750 4,251 Noncurrent portion of long-term debt $ 16,537 $ 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 September 30, 2015,we had no outstanding balance on 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. As of September 30, 2015, we did not meet the fixed charge coverage ratio covenant. We entered into the first amendment to the Loan Agreement on November 3, 2015 (the “Amendment”). The Amendment does not permit any subsequent advances under the Credit Facility, waived the fixed charge coverage ratio for the three months ended September 30, 2015 and added a monthly liquidity ratio covenant. As a result of the waiver and our expectation of maintaining compliance with all of the covenants in the future, we have continued to record scheduled principal payments due after twelve months as noncurrent. 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. The Promissory Note was paid in full as of September 30, 2015.

NET (LOSS) EARNINGS PER SHARE

NET (LOSS) EARNINGS PER SHARE	9 Months Ended
	Sep. 30, 2015
NET (LOSS) EARNINGS PER SHARE
NET (LOSS) EARNINGS PER SHARE	NOTE I – 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): Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 (Loss) income from continuing operations, net of income taxes $ (16,380 ) $ 263 $ (16,730 ) $ 1,637 Weighted average shares outstanding: Basic 19,137 18,956 19,053 18,900 Dilutive effect of common stock equivalents - 307 - 353 Total 19,137 19,263 19,053 19,253 Anti-dilutive equity-based compensation awards 2,294 757 2,294 757

RECENT ACCOUNTING PRONOUNCEMENT

RECENT ACCOUNTING PRONOUNCEMENTS	9 Months Ended
	Sep. 30, 2015
Recent Accounting Pronouncements [Abstract]
RECENT ACCOUNTING PRONOUNCEMENTS	NOTE J – RECENT ACCOUNTING PRONOUNCEMENTS In September 2015, the Financial Accounting Standards Board (FASB) issued an accounting standards update to simplify the accounting for measurement-period adjustments for an acquirer in a business combination. The update will require an acquirer to recognize any adjustments to provisional amounts of the initial accounting for a business combination with a corresponding adjustment to goodwill in the reporting period in which the adjustments are determined in the measurement period, as opposed to revising prior periods presented in financial statements. Thus, an acquirer shall adjust its financial statements as needed, including recognizing in its current-period earnings the full effect of changes in depreciation, amortization, or other income effects, by line item, if any, as a result of the change to the provisional amounts calculated as if the accounting had been completed at the acquisition date. This update is effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. We do not expect the adoption of this guidance to have a material impact on our financial statements. In July 2015, In March 2015, the 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 stat e 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. On July 9, 2015, the FASB voted to defer the effective date by one year to December 15, 2017 for interim and annual reporting periods beginning after that date and permitted early adoption of the standard, but not before the original effective date of December 15, 2016. We are currently evaluating how the adoption of this standard will impact our Consolidated Financial Statements.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	9 Months Ended
	Sep. 30, 2015
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE K – SUBSEQUENT EVENTS On October 8, 2015, we closed on a mutual agreement with a vendor to (1) cancel the existing agreement, (2) purchase certain equipment from the vendor and (3) assume certain national On November 3, 2015, we entered into the first amendment to the Loan Agreement. See Note H – Debt.

MERGER (Tables)

MERGER (Tables)	9 Months Ended
	Sep. 30, 2015
Acquisition [Abstract]
Schedule of fair values of the assets acquired and liabilities assumed as of the closing date of merger	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 measurement period adjustments related to merger	December 31, Measurement December 31, 2014 Period 2014 As Reported Adjustment Recast Assets Goodwill $ 44,548 $ (200 ) $ 44,348 Deferred tax assets, less current portion 5,616 200 5,816 $ 50,164 $ - $ 50,164

INVENTORY (Tables)

INVENTORY (Tables)	9 Months Ended
	Sep. 30, 2015
Inventory [Abstract]
Schedule of inventory	September 30, December 31, 2015 2014 Raw materials $ 2,109 $ 2,228 Finished goods 8,559 7,579 Inventory reserves (2,694 ) (1,397 ) $ 7,974 $ 8,410

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	9 Months Ended
	Sep. 30, 2015
Property, Plant and Equipment [Abstract]
Schedule of components of property and equipment	September 30, December 31, 2015 2014 Computer, network and other equipment $ 6,394 $ 5,925 Monitoring equipment 2,834 1,705 Furniture and fixtures 888 746 Leasehold improvements 357 328 Total property and equipment 10,473 8,704 Accumulated depreciation and amortization (5,981 ) (3,815 ) $ 4,492 $ 4,889

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	9 Months Ended
	Sep. 30, 2015
Intangible Assets [Abstract]
Schedule of intangible assets other than goodwill	As of September 30, 2015 As of December 31, 2014 Gross Gross Remaining Carrying Accumulated Net Book Carrying Accumulated Net Book Useful Lives Amount Amortization Value Amount Amortization Value Purchased and developed software 1.2 $ 13,233 $ (8,658 ) $ 4,575 $ 11,176 $ (6,409 ) $ 4,767 Software in development n/a 2,383 - 2,383 1,339 - 1,339 Total software 15,616 (8,658 ) 6,958 12,515 (6,409 ) 6,106 Licenses 0.4 12,786 (12,081 ) 705 12,763 (11,886 ) 877 Customer relationships 7.8 8,287 (2,064 ) 6,223 8,287 (1,359 ) 6,928 Technologies 12.6 4,998 (506 ) 4,492 4,998 (237 ) 4,761 Patents and trademarks 3.6 4,018 (2,027 ) 1,991 3,343 (1,657 ) 1,686 Trade names Indefinite 3,632 - 3,632 3,632 - 3,632 Other n/a 469 - 469 1,279 - 1,279 Total other intangible assets 34,190 (16,678 ) 17,512 34,302 (15,139 ) 19,163 $ 49,806 $ (25,336 ) $ 24,470 $ 46,817 $ (21,548 ) $ 25,269
Schedule of activity for the carrying amount of goodwill	January 1, 2015 $ 44,348 DIY reporting unit impairment (924 ) September 30, 2015 $ 43,424

OTHER ASSETS (Tables)

OTHER ASSETS (Tables)	9 Months Ended
	Sep. 30, 2015
Other Assets, Noncurrent [Abstract]
Schedule of other noncurrent assets	September 30, December 31, 2015 2014 Deferred activation fees $ 414 $ 310 Prepaid carrier fees 375 1,860 Deferred financing fees 201 260 Deposits 117 155 $ 1,107 $ 2,585

DEBT (Tables)

DEBT (Tables)	9 Months Ended
	Sep. 30, 2015
Debt Disclosure [Abstract]
Schedule of debt	September 30, December 31, 2015 2014 Note payable to Silicon Valley Bank, with interest at our option of prime rate or LIBOR rate plus margin $ 20,287 $ 23,125 Seller financed note payable, with interest at 4.25%, monthly payments of principal and interest, secured by equipment, due September 2015 - 476 20,287 23,601 Less current portion of long-term debt 3,750 4,251 Noncurrent portion of long-term debt $ 16,537 $ 19,350

NET (LOSS) EARNINGS PER SHARE (

NET (LOSS) EARNINGS PER SHARE (Tables)	9 Months Ended
	Sep. 30, 2015
NET (LOSS) EARNINGS PER SHARE
Schedule of reconciliation of shares used in the calculation of basic and diluted net (loss) income per share from continuing operations	Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 (Loss) income from continuing operations, net of income taxes $ (16,380 ) $ 263 $ (16,730 ) $ 1,637 Weighted average shares outstanding: Basic 19,137 18,956 19,053 18,900 Dilutive effect of common stock equivalents - 307 - 353 Total 19,137 19,263 19,053 19,253 Anti-dilutive equity-based compensation awards 2,294 757 2,294 757

MERGER - Summary of fair values

MERGER - Summary of fair values of assets acquired and liabilities assumed on closing date of the Omnilink merger (Details) - USD ($) $ in Thousands		May. 05, 2014	Sep. 30, 2015	Dec. 31, 2014
Business Acquisition [Line Items]
Goodwill			$ 43,424	$ 44,348
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	[1]	4 years
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 - Measurement period adj

MERGER - Measurement period adjustment resulted in recasting (Details 1) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Business Acquisition [Line Items]
Goodwill	$ 43,424	$ 44,348
Deferred tax assets, less current portion		5,816
Assets		50,164
Previously Reported
Business Acquisition [Line Items]
Goodwill		44,548
Deferred tax assets, less current portion		5,616
Assets		50,164
Measurement Period Adjustment
Business Acquisition [Line Items]
Goodwill		(200)
Deferred tax assets, less current portion		$ 200
Assets

MERGER (Detail Textuals)

MERGER (Detail Textuals) - Omnilink Systems, Inc. - Merger agreement $ in Millions	May. 05, 2014USD ($)
Business Acquisition [Line Items]
Purchase price	$ 37.5
Consideration paid in cash	37.3
Working capital adjustment	$ 0.2

MERGER (Detail Textuals 1)

MERGER (Detail Textuals 1) - Omnilink Systems, Inc. - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2015	May. 05, 2014
Business Acquisition [Line Items]
Accounts receivable gross		$ 2,900
Accounts receivable net		$ 2,677
Subsequent measurement period adjustment	$ 200

INVENTORY - Summary of inventor

INVENTORY - Summary of inventory (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Inventory [Abstract]
Raw materials	$ 2,109	$ 2,228
Finished goods	8,559	7,579
Inventory reserves	(2,694)	(1,397)
Inventory, net	$ 7,974	$ 8,410

INVENTORY (Detail Textuals)

INVENTORY (Detail Textuals) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Inventory [Line Items]
Inventory reserves	$ 1,277	$ 129	$ 1,547	$ 415
Second generation (2G) cellular telecommunication devices, older satellite equipment and an accrued purchase commitment
Inventory [Line Items]
Inventory reserves	$ 1,100

PROPERTY AND EQUIPMENT - Summar

PROPERTY AND EQUIPMENT - Summary of property and equipment (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 10,473	$ 8,704
Accumulated depreciation and amortization	(5,981)	(3,815)
Property and equipment, net	4,492	4,889
Computer, network and other equipment
Property, Plant and Equipment [Line Items]
Total property and equipment	6,394	5,925
Monitoring equipment
Property, Plant and Equipment [Line Items]
Total property and equipment	2,834	1,705
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Total property and equipment	888	746
Leasehold improvements
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 357	$ 328

PROPERTY AND EQUIPMENT (Detail

PROPERTY AND EQUIPMENT (Detail Textuals) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Property, Plant and Equipment [Abstract]
Depreciation expense for monitoring equipment included in cost of sales	$ 0.3	$ 0.2	$ 0.8	$ 0.4
Additional depreciation expense for managed service devices and hardware	$ 0.4		$ 0.4

INTANGIBLE ASSETS - Summary of

INTANGIBLE ASSETS - Summary of intangible assets other than goodwill (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 49,806	$ 46,817
Accumulated Amortization	(25,336)	(21,548)
Net Book Value	$ 24,470	25,269
Purchased and developed software
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Remaining Useful Lives	1 year 2 months 12 days
Gross Carrying Amount	$ 13,233	11,176
Accumulated Amortization	(8,658)	(6,409)
Net Book Value	4,575	4,767
Software in development
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 2,383	$ 1,339
Accumulated Amortization
Net Book Value	$ 2,383	$ 1,339
Total software
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Gross Carrying Amount	15,616	12,515
Accumulated Amortization	(8,658)	(6,409)
Net Book Value	$ 6,958	6,106
Licenses
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Remaining Useful Lives	4 months 24 days
Gross Carrying Amount	$ 12,786	12,763
Accumulated Amortization	(12,081)	(11,886)
Net Book Value	$ 705	877
Customer relationships
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Remaining Useful Lives	7 years 9 months 18 days
Gross Carrying Amount	$ 8,287	8,287
Accumulated Amortization	(2,064)	(1,359)
Net Book Value	$ 6,223	6,928
Technologies
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Remaining Useful Lives	12 years 7 months 6 days
Gross Carrying Amount	$ 4,998	4,998
Accumulated Amortization	(506)	(237)
Net Book Value	$ 4,492	4,761
Patents and trademarks
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Remaining Useful Lives	3 years 7 months 6 days
Gross Carrying Amount	$ 4,018	3,343
Accumulated Amortization	(2,027)	(1,657)
Net Book Value	$ 1,991	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	$ 469	$ 1,279
Accumulated Amortization
Net Book Value	$ 469	$ 1,279
Total Other Intangibles
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Gross Carrying Amount	34,190	34,302
Accumulated Amortization	(16,678)	(15,139)
Net Book Value	$ 17,512	$ 19,163

INTANGIBLE ASSETS - Activity fo

INTANGIBLE ASSETS - Activity for the carrying amount of goodwill (Details 1) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2015
Goodwill [Roll Forward]
January 1, 2015		$ 44,348
September 30, 2015	$ 43,424	43,424
Do-It-Yourself (DIY)
Goodwill [Roll Forward]
January 1, 2015		44,348
DIY Reporting Unit Impairment	(924)	(924)
September 30, 2015	$ 43,424	$ 43,424

INTANGIBLE ASSETS (Detail Textu

INTANGIBLE ASSETS (Detail Textuals) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Amortization expense of intangible assets	$ 1,300	$ 1,200	$ 3,800	$ 3,400
Amortization of intangible assets recorded in cost of subscription revenue	300	200	800	400
Internally generated software development costs	600	$ 600	1,800	$ 1,600
Goodwill	43,424		43,424		$ 44,348
Do-It-Yourself (DIY)
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Fair value of DIY reporting unit	2,600		2,600
Goodwill	43,424		43,424		$ 44,348
Goodwill impairment	924		924
Carrying value of patents	600		600
Carrying value of other intangible assets	1,300		1,300
Impairments of patents	$ 300		$ 300

OTHER ASSETS - Summary of other

OTHER ASSETS - Summary of other noncurrent assets (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Other Assets, Noncurrent [Abstract]
Deferred activation fees	$ 414	$ 310
Prepaid carrier fees	375	1,860
Deferred financing fees	201	260
Deposits	117	155
Other noncurrent assets	$ 1,107	$ 2,585

OTHER ASSETS (Detail Textuals)

OTHER ASSETS (Detail Textuals) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014	Dec. 31, 2011
Other Assets, Noncurrent [Abstract]
Equipment cost			$ 2,200
Prepayment to license additional network access	$ 400	$ 400
Payment to cancel agreement, purchase equipment and assume carrier agreements	$ 500
Common stock issued to cancel agreement, purchase equipment and assume carrier agreements	30,000
Value of common stock issued to cancel agreement, purchase equipment and assume carrier agreements	$ 300
Total other assets	1,107	$ 2,585
Write off carrying value of prepaid expenses	$ 1,300

INCOME TAXES (Detail Textuals)

INCOME TAXES (Detail Textuals) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Income Taxes [Abstract]
Deferred tax expense	$ 10,400		$ 10,147	$ 36
Percentage of deferred tax expense effective tax rate	174.10%	57.60%	154.60%	14.70%
Remaining difference in income tax expense	$ 300		$ 100
Income tax expense (benefit)	10,404	$ 358	10,159	$ 283
Gross deferred tax assets, valuation allowance	$ 10,100		$ 10,100
Amount of year-to-date adjustment		$ 200
Percentage of year-to-date adjustment of quarter's pre-tax income		31.30%

DEBT - Summary of debt (Details

DEBT - Summary of debt (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
Long-term debt, total	$ 20,287	$ 23,601
Less current portion of long-term debt	3,750	4,251
Noncurrent portion of long-term debt	16,537	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	$ 20,287	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		$ 476

DEBT - Summary of debt (Parenth

DEBT - Summary of debt (Parentheticals) (Details)	Sep. 30, 2015
Debt Disclosure [Abstract]
Interest rate of seller financed note payable	4.25%

DEBT (Detail Textuals)

DEBT (Detail Textuals) - Silicon Valley Bank - USD ($)	May. 05, 2014	Sep. 30, 2015
Term loan
Debt Instrument [Line Items]
Available credit amount	$ 25,000,000
Outstanding principal balance		$ 5,000,000
Interest rate applicable to amounts drawn	2.75%
Revolving line of credit
Debt Instrument [Line Items]
Available credit amount	$ 5,000,000
Outstanding principal balance		$ 0

DEBT (Detail Textuals 1)

DEBT (Detail Textuals 1) $ in Millions	Oct. 31, 2012USD ($)
Small technology company | Promissory Note
Debt Instrument [Line Items]
Promissory note payable	$ 1.9

NET (LOSS) EARNINGS PER SHARE -

NET (LOSS) EARNINGS PER SHARE - Reconciliation of shares used in the calculation of basic and diluted net (loss) income per share (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
NET (LOSS) EARNINGS PER SHARE
(Loss) income from continuing operations, net of income taxes	$ (16,380)	$ 263	$ (16,730)	$ 1,637
Weighted average shares outstanding:
Basic	19,137	18,956	19,053	18,900
Dilutive effect of common stock equivalents		307		353
Total	19,137	19,263	19,053	19,253
Anti-dilutive equity-based compensation awards	2,294	757	2,294	757

SUBSEQUENT EVENTS (Detail Textu

SUBSEQUENT EVENTS (Detail Textuals) - USD ($) $ in Millions	Oct. 08, 2015	Sep. 30, 2015
Subsequent Event [Line Items]
Payment to cancel agreement, purchase equipment and assume carrier agreements		$ 0.5
Common stock issued to cancel agreement, purchase equipment and assume carrier agreements		30,000
Value of common stock issued to cancel agreement, purchase equipment and assume carrier agreements		$ 0.3
Subsequent Event
Subsequent Event [Line Items]
Payment to cancel agreement, purchase equipment and assume carrier agreements	$ 0.5
Common stock issued to cancel agreement, purchase equipment and assume carrier agreements	30,000
Value of common stock issued to cancel agreement, purchase equipment and assume carrier agreements	$ 0.3