Numerex (NMRX) 10-Q 4 Aug 16 2016 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Jul. 28, 2016
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		19,495,566
Document Type	10-Q
Document Period End Date	Jun. 30, 2016
Amendment Flag	false
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2

UNAUDITED CONDENSED CONSOLIDATE

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
CURRENT ASSETS
Cash and cash equivalents	$ 9,889	$ 16,237
Restricted cash	221
Accounts receivable, less allowance for doubtful accounts of $782 and $618	9,895	9,237
Financing receivables, current	1,927	1,780
Inventory, net of reserves	6,519	7,617
Prepaid expenses and other current assets	2,398	1,887
Deferred tax assets, current	603	603
TOTAL CURRENT ASSETS	31,452	37,361
Financing receivables, less current portion	2,299	2,330
Property and equipment, net of accumulated depreciation and amortization	6,136	4,795
Software, net of accumulated amortization	6,488	7,146
Other intangible assets, net of accumulated amortization	13,321	15,722
Goodwill	40,945	43,424
Other assets	396	409
TOTAL ASSETS	101,037	111,187
CURRENT LIABILITIES
Accounts payable	11,644	11,390
Accrued expenses and other current liabilities	3,831	2,864
Deferred revenues	1,553	1,942
Current maturities of long-term debt, net of debt issuance costs		3,600
Current obligations under capital lease	198
TOTAL CURRENT LIABILITIES	17,226	19,796
Long-term debt, net of debt issuance costs, less current maturities	16,027	15,309
Obligations under capital lease, noncurrent	1,039
Deferred tax liabilities, noncurrent	1,415	1,595
Other liabilities	1,664	1,891
TOTAL LIABILITIES	37,371	38,591
COMMITMENTS AND CONTINGENCIES (NOTE I)
SHAREHOLDERS' EQUITY
Preferred stock, no par value; 3,000 authorized; none issued
Additional paid-in capital	103,802	102,108
Treasury stock, at cost, 1,326 and 1,316 shares	(5,466)	(5,444)
Accumulated other comprehensive loss	(103)	(117)
Accumulated deficit	(34,567)	(23,951)
TOTAL SHAREHOLDERS' EQUITY	63,666	72,596
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	101,037	111,187
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, $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Accounts receivable, allowance for doubtful accounts (in dollars)	$ 782	$ 618
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	1,326	1,316
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	20,789	20,652
Common stock, shares outstanding	19,463	19,177
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		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Net revenues:
Subscription and support revenues	$ 14,810	$ 16,721	$ 29,794	$ 33,250
Embedded devices and hardware	2,796	8,932	5,862	14,080
Total net revenues	17,606	25,653	35,656	47,330
Cost of sales, exclusive of a portion of depreciation and amortization shown below:
Subscription and support revenues	5,713	6,471	11,414	13,190
Embedded devices and hardware	2,854	7,906	5,945	12,624
Provision for inventory reserves	460	136	487	271
Gross profit	8,579	11,140	17,810	21,245
Operating expenses:
Sales and marketing	3,270	3,026	6,215	6,089
General and administrative	3,859	3,672	7,988	7,601
Engineering and development	2,444	2,201	4,691	4,494
Depreciation and amortization	1,677	1,658	3,335	3,312
Impairment of goodwill and other intangible assets	4,172		4,172
Restructuring charges	1,243		1,243
Operating (loss) income	(8,086)	583	(9,834)	(251)
Interest expense	460	210	727	415
Loss on extinguishment of debt			290
Other income, net	(22)	(37)	(65)	(69)
(Loss) income before income taxes	(8,524)	410	(10,786)	(597)
Income tax (benefit) expense	(234)	141	(170)	(245)
Net (loss) income	(8,290)	269	(10,616)	(352)
Other items of comprehensive loss (income), net of income taxes:
Foreign currency translation adjustment	1	(25)	(14)	(18)
Comprehensive (loss) income	$ (8,291)	$ 294	$ (10,602)	$ (334)
(Loss) earnings per share:
Basic (in dollars per share)	$ (0.43)	$ 0.01	$ (0.55)	$ (0.02)
Diluted (in dollars per share)	$ (0.43)	$ 0.01	$ (0.55)	$ (0.02)
Weighted average shares outstanding used in per share calculation:
Basic (in shares)	19,449	19,029	19,413	19,011
Diluted (in shares)	19,449	19,269	19,413	19,011

UNAUDITED CONDENSED CONSOLIDAT5

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY - 6 months ended Jun. 30, 2016 - 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, 2015		$ 102,108	$ (5,444)	$ (117)	$ (23,951)	$ 72,596
Balance (in shares) at Dec. 31, 2015	20,652
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Equity-based compensation expense		1,451				1,451
Exercises, vesting and other equity- based compensation plan activity, net		235	(22)			213
Exercises, vesting and other equity- based compensation plan activity, net (in shares)	136
Issuance of common shares for services		8				8
Issuance of common shares for services (in shares)	1
Translation adjustment				14		14
Net loss					(10,616)	(10,616)
Balance at Jun. 30, 2016		$ 103,802	$ (5,466)	$ (103)	$ (34,567)	$ 63,666
Balance (in shares) at Jun. 30, 2016	20,789

UNAUDITED CONDENSED CONSOLIDAT6

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash flows from operating activities:
Net loss	$ (10,616)	$ (352)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation and amortization	3,968	3,782
Impairment of goodwill and other intangible assets	4,172
Non-cash restructuring charges	370
Equity-based compensation expense	1,451	1,581
Loss on extinguishment of debt	290
Deferred income taxes	(179)	(213)
Bad debt expense	228	200
Provision for inventory reserves	487	271
Other non-cash expense	72	41
Changes in assets and liabilities:
Accounts and financing receivables	(1,004)	(3,216)
Inventory, net	(844)	(470)
Accounts payable	421	1,486
Deferred revenue	(454)	(102)
Other	253	161
Net cash (used in) provided by operating activities	(1,385)	3,169
Cash flows from investing activities:
Purchases of property and equipment	(509)	(1,219)
Capitalized software development and purchases of software	(1,280)	(2,431)
Net cash used in investing activities	(1,789)	(3,650)
Cash flows from financing activities:
Proceeds from long-term debt	17,000
Principal payments on debt	(19,349)	(2,219)
Principal payments on capital lease obligations		(148)
Exercises, vesting and other equity-based compensation plan activity	386	138
Payment of taxes on equity-based awards	(173)	(350)
Deferred financing costs paid	(1,038)
Net cash used in financing activities	(3,174)	(2,579)
Net decrease in cash and cash equivalents	(6,348)	(3,060)
Cash and cash equivalents at beginning of period	16,237	17,270
Cash and cash equivalents at end of period	9,889	14,210
Supplemental disclosures of cash flow information:
Cash paid for interest	645	377
Net cash paid for income taxes	6	28
Disclosure of non-cash investing and financing activities:
Capital expenditures in accounts payable	274	$ 407
Fixed assets acquired under a capital lease	$ 1,237

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Business Numerex Corp. (NASDAQ: NMRX) is a holding company and, through its subsidiaries, is a single source, leading provider of managed enterprise solutions enabling the Internet of Things (IoT). An IoT solution is generally viewed as a combination of devices, software and services that operate with little or no human interaction. Our managed IoT solutions are simple, innovative, scalable and secure. Our solutions incorporate each of the four key IoT building blocks – Device, Network, Application and Platform. We provide our technology and service solutions through our integrated IoT horizontal platforms, which are generally sold on a subscription basis. We are ISO 27001 information security-certified, highlighting our focus on IoT data security, service reliability and around-the-clock support of our customers’ IoT solutions. Foreign operations were not significant to us for the three and six months ended June 30, 2016 or 2015. Basis of Presentation 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 June 30, 2016 and our operating results and cash flows for the interim periods presented. The accompanying condensed consolidated balance sheet as of December 31, 2015 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, 2015 which includes information and disclosures not included in this quarterly report. Estimates and Assumptions 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 six months ended June 30, 2016 may not be indicative of the results that may be expected for the year ending December 31, 2016 or any future periods. Restricted Cash As of June 30, 2016, cash of $0.2 million was held in escrow related to certain vendor obligations as a result of entering into our new loan agreement. See Note G – Debt. There was no restricted cash at December 31, 2015. Reclassifications As a result of the adoption of a recent accounting pronouncement, see Note K – Recent Accounting Pronouncements, the balance sheet as of December 31, 2015 reflects the following reclassifications (dollars in thousands): Historical Reclassi- Presentation fication As Adjusted Prepaid expenses and other current assets $ 2,037 $ (150 ) $ 1,887 Other assets 699 (290 ) 409 Current portion of long-term debt 3,750 (150 ) 3,600 Long-term debt, less current portion 15,599 (290 ) 15,309

INVENTORY

INVENTORY	6 Months Ended
	Jun. 30, 2016
Inventory [Abstract]
INVENTORY	NOTE B – INVENTORY Inventory consisted of the following as of the dates below (in thousands): June 30, December 31, 2016 2015 Raw materials $ 1,640 $ 1,903 Finished goods 7,398 8,420 Inventory reserves (2,519 ) (2,706 ) $ 6,519 $ 7,617 During the six months ended June 30, 2016, we transferred $1.5 million of inventory to monitoring equipment within property and equipment and disposed of $0.7 million of fully reserved inventory.

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	6 Months Ended
	Jun. 30, 2016
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT	NOTE C – PROPERTY AND EQUIPMENT Property and equipment consisted of the following (in thousands): June 30, December 31, 2016 2015 Computer, network and other equipment $ 8,092 $ 7,150 Monitoring equipment 4,469 3,015 Furniture and fixtures 932 888 Leasehold improvements 376 374 Total property and equipment 13,869 11,427 Accumulated depreciation and amortization (7,733 ) (6,632 ) $ 6,136 $ 4,795 During the quarter ended June 30, 2016, we entered into an agreement effective August 1, 2016 to sublease the office space formerly occupied by our corporate headquarters that included all furniture and fixtures. We recorded a restructuring charge of $1.2 million, which included a $0.4 million non-cash charge for the estimated net book value of the furniture and fixtures as of August 1, 2016, the cease-use date. See Note F – Restructuring. During the six months ended June 30, 2016, we transferred $1.5 million of inventory to monitoring equipment as part of our managed services business.

GOODWILL AND OTHER INTANGIBLE A

GOODWILL AND OTHER INTANGIBLE ASSETS	6 Months Ended
	Jun. 30, 2016
Intangible Assets [Abstract]
GOODWILL AND OTHER INTANGIBLE ASSETS	NOTE D – GOODWILL AND OTHER INTANGIBLE ASSETS Impairment Charges We recorded $4.2 million in impairment charges for trade names, technology and goodwill as of June 30, 2016. The Omnilink and Do-It-Yourself (DIY) product lines and reporting units did not generate results of operations consistent with our expectations and recent forecasts for the three months ended June 30, 2016. The lower operating results and future expectations for Omnilink are principally related to strategic changes and delays associated with the launch of a new personal tracking product line. We also continue to evaluate different strategic options for the DIY reporting unit. These factors were triggering events that indicated that it was more likely than not that the fair value of the Omnilink and DIY reporting units were less than their carrying amounts. As a result, we performed initial assessments of goodwill for impairment, along with other intangible assets of the reporting units, as of June 30, 2016. We estimated the fair value of the reporting units using a combination of market and income approaches and concluded that the estimated fair value of the Omnilink and DIY reporting units were less than their carrying values. We assessed the implied fair value of goodwill in the same manner as if we were acquiring the reporting units in a business combination. Specifically, we allocated the estimated fair value of the reporting units to all of the assets and liabilities of those units, including any unrecognized intangible assets, in a hypothetical calculation, referred to as Step Two. We assessed the amortizing long-lived assets for impairment based on undiscounted cash flows and concluded that, with the exception of DIY technology, the carrying values of other amortizing long-lived assets and intangible assets were recoverable. Based on Step Two calculations, we recorded non-cash impairment charges as of June 30, 2016 of $1.6 million for indefinite-lived trade names and $2.3 million for goodwill of the Omnilink reporting unit, and $0.1 million for technology and $0.2 million for goodwill of the DIY reporting unit. Changes in the effected carrying values are summarized as follows (in thousands): Omnilink DIY Total Trade Names Goodwill Technology Goodwill Impairment January 1, 2016 $ 2,972 $ 17,580 $ 245 $ 1,656 Amortization - - (18 ) - Impairment (1,612 ) (2,264 ) (81 ) (215 ) $ (4,172 ) June 30, 2016 $ 1,360 $ 15,316 $ 146 $ 1,441 Intangible Assets Other Than Goodwill Intangible assets other than goodwill are summarized as follows (dollars in thousands): As of June 30, 2016 As of December 31, 2015 Remaining Gross Accumulated Net Book Gross Accumulated Net Book Purchased and developed software 1.9 $ 16,269 $ (11,220 ) $ 5,049 $ 15,399 $ (9,503 ) $ 5,896 Software in development n/a 1,439 - 1,439 1,250 - 1,250 Total software 17,708 (11,220 ) 6,488 16,649 (9,503 ) 7,146 Licenses 3.0 13,297 (12,352 ) 945 13,215 (12,167 ) 1,048 Customer relationships 7.7 8,167 (2,665 ) 5,502 8,167 (2,285 ) 5,882 Technologies 11.3 4,235 (754 ) 3,481 4,316 (595 ) 3,721 Patents and trademarks 2.2 4,375 (2,342 ) 2,033 4,236 (2,137 ) 2,099 Trade names Indefinite 1,360 - 1,360 2,972 - 2,972 Total other intangible assets 31,434 (18,113 ) 13,321 32,906 (17,184 ) 15,722 $ 49,142 $ (29,333 ) $ 19,809 $ 49,555 $ (26,687 ) $ 22,868 Remaining useful lives in the preceding table were calculated on a weighted average basis as of June 30, 2016. We did not incur significant costs to renew or extend the term of acquired intangible assets during the three or six months ending June 30, 2016. Intangible asset amortization expense recorded in operations was $1.3 million and $2.6 million, respectively, for the three month and six months ended June 30, 2016 compared to $1.3 million and $2.5 million for the respective periods in 2015. Amortization expense recorded in cost of subscription revenues was $0.3 million and $0.6 million, respectively, for the three and six months ended June 30, 2016, compared to $0.2 million and $0.5 million, respectively, for the three and six months ended June 30, 2015. Additionally, we have capitalized approximately $0.3 million and $0.6 million of internally generated software development costs for the three and six months ended June 30, 2016, respectively, and $0.8 million and $1.2 million for the three and six months ended June 30, 2015, respectively.

INCOME TAXES

INCOME TAXES	6 Months Ended
	Jun. 30, 2016
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. 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. During 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 2016 and 2036. We will maintain the valuation allowance against the net deferred tax assets until sufficient positive evidence outweighs any negative evidence to support reversal. We recorded an income tax benefit of $0.2 million for both the three and six months ending June 30, 2016, representing effective tax rates of 2.7% and 1.6%, respectively. The difference in the effective tax rates compared to the federal statutory rate are due primarily to differences between the book and tax bases and accounting differences for certain long and indefinite lived intangible assets. We also recognized a provision for income tax expense for certain 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. We recorded a provision for income tax expense of $0.1 million for the three months ended June 30, 2015 and an income tax benefit of $0.2 million for the six months ended June 30, 2015. The effective tax rates were 34.3% and 41.0% for the three and six months ended June 30, 2015, respectively. The effective tax rates for the three months and six months ended June 30, 2015 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 file U.S., state and foreign income tax returns in jurisdictions with varying statutes of limitation. The 2012 through 2015 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.

RESTRUCTURING

RESTRUCTURING	6 Months Ended
	Jun. 30, 2016
Restructuring Costs [Abstract]
RESTRUCTURING	NOTE F – RESTRUCTURING During the quarter ended June 30, 2016, we entered into agreements to relocate our corporate headquarters. One agreement is a sublease of the office space formerly occupied by our corporate headquarters and includes all furniture and fixtures. The sublease agreement is effective August 1, 2016 and coterminous with the prime lease agreement expiring on September 29, 2022. We recorded a restructuring charge of $1.2 million, which includes $0.8 million related to facilities and $0.4 million in severance costs. The restructuring charge for facilities is comprised of $0.4 million for broker and other related fees and $0.4 million non-cash charge for the estimated August 1, 2016 net book value of furniture, fixtures and leasehold improvements. We anticipate incurring an additional $0.1 million during the quarter ended September 30, 2016 for moving and other related costs. Our temporary new corporate headquarters office space, effective July 15, 2016, is under a one year lease agreement. We anticipate cash savings of $0.8 million under the new agreement over the next 12 months and are reviewing alternatives for longer-term office space. The severance costs of $0.4 million were incurred and paid during the period. The following table summarizes restructuring activities for the six months ended June 30, 2016: Balance at December 31, 2015 $ - Net charges 1,243 Elimination of deferred rent 778 Write down of fixed assets (370 ) Payments (412 ) Balance at June 30, 2016 1,239 Less current portion (598 ) Amounts due after one year $ 641 The current portion of the restructuring liability reserve is recorded in accrued expense and other current liabilities and the balance in other liabilities (noncurrent) in the unaudited condensed consolidated balance sheets.

DEBT

DEBT	6 Months Ended
	Jun. 30, 2016
Debt Disclosure [Abstract]
DEBT	NOTE G – DEBT Debt consisted of the following as of the dates below (dollars in thousands): June 30, December 31, 2016 2015 Note payable to Crystal Financial LLC, with interest at LIBOR plus margin $ 17,000 $ - Note payable to Silicon Valley Bank, repaid in 2016 - 19,349 Less long-term deferred financing costs (973 ) (440 ) 16,027 18,909 Less current portion of long-term debt - (3,600 ) Noncurrent portion of long-term debt $ 16,027 $ 15,309 On March 9, 2016, we and certain of our wholly-owned, consolidated subsidiaries entered into a new term loan agreement with Crystal Financial LLC as Term Agent, and the term lenders party thereto (the “Crystal Loan Agreement”) pursuant to which the term lenders made a term loan to us in the amount of $17.0 million. The net proceeds from the term loan (after payment of the fees and expenses of the Term Agent), along with $2.9 million of cash on hand, were used to repay the $19.4 million outstanding debt under the Silicon Valley Bank (SVB) Loan Agreement and pay related transaction fees. We recorded a charge of $0.3 million to loss on extinguishment of debt for unamortized deferred financing costs related to the SVB Loan Agreement during the six months ended June 30, 2016. The maturity date of the term loan is March 9, 2020. We are required to make regular quarterly principal payments of $637,500 beginning September 1, 2017 with the balance due on the maturity date, if not otherwise repaid earlier by way of voluntary prepayments, or upon the occurrence of certain Prepayment Events or Excess Cash Flow (as defined in the Crystal Loan Agreement), or as a result of acceleration of the loan as a result of an event of default. Prepayments of the loan are subject to a prepayment penalty of 3% of the amount prepaid if prepayment occurs prior to the first anniversary of the closing date and 2% of the amount prepaid if the prepayment occurs on or after the first anniversary of the closing date but prior to the second anniversary date of the closing date. There is no prepayment penalty for prepayments that occur on or after the second anniversary of the closing date. The interest rate payable on the outstanding loan amount is determined by reference to LIBOR plus a margin established in the agreement. At June 30, 2016, the applicable interest rate was 9.18%. Our obligations under the Crystal Loan Agreement are secured by a first priority security interest in 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 minimum Adjusted EBITDA, minimum Consolidated Fixed Charge Coverage Ratio, maximum Consolidated Total Net Leverage, maximum subscriber Churn, and minimum Liquidity, all of which are defined in the Crystal Loan Agreement. We are also prohibited from incurring indebtedness, disposing of or permitting liens on our assets and making restricted payments, including cash dividends on shares of our common stock, except as expressly permitted under the Crystal Loan Agreement. The 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 agreement may be accelerated. On July 29, 2016, we entered into an amendment to the Crystal Loan Agreement to modify the covenant relating to the maximum subscriber Churn and update the definition of Adjusted EBITDA. As a result of the amendment, we were in compliance with all covenants as of June 30, 2016.

(LOSS) EARNINGS PER SHARE

(LOSS) EARNINGS PER SHARE	6 Months Ended
	Jun. 30, 2016
Earnings Per Share [Abstract]
(LOSS) EARNINGS PER SHARE	NOTE H – (LOSS) EARNINGS PER SHARE Basic (loss) earnings per share attributable to common shareholders is based on the weighted-average number of common shares outstanding 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 shares does not assume exercise of securities that would have an anti-dilutive effect on earnings. Dilutes (loss) per share is not presented separately because there are no adjustments to the numerator in calculating dilutive net loss per share and all potentially dilutive common stock equivalents would be antidilutive. The following table presents a reconciliation of the shares used in the calculation of basic and dilutive earnings per share and anti-dilutive equity based compensation awards. Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Weighted average common shares outstanding: Basic 19,449 19,029 19,413 19,011 Dilutive effect of common stock equivalents - 240 - - Diluted 19,449 19,269 19,413 19,011 Anti-dilutive equity-based compensation awards 2,158 850 2,158 1,773

LEASES, COMMITMENTS AND CONTING

LEASES, COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
LEASES, COMMITMENTS AND CONTINGENCIES	NOTE I – LEASES, COMMITMENTS AND CONTINGENCIES Capital Lease We record leases in which we have substantially all of the benefits and risks of ownership as capital leases and all other leases as operating leases. For leases determined to be capital leases, we record the assets held under capital lease and related obligations at lesser of the present value of aggregate future minimum lease payments or the fair value of the assets held under capital lease. We amortize the underlying assets over the expected life of the assets if we will retain title to the assets at the end of the lease term; otherwise we amortize the asset over the term of the lease. In March 2016, we entered into a 60 month lease arrangement for computer and network equipment, software and related costs having a value of $1.2 million. The lease commenced in April 2016 and is accounted for as a capital lease. Future minimum capital lease payments and the present value of the net minimum lease payments for the capital leases as of June 30, 2015 are as follows (in thousands): Total minimum lease payments $ 1,384 Less amounts representing interest (147 ) Present value of future minimum lease payments 1,237 Less current portion (198 ) Amounts due after one year $ 1,039 Operating Leases As disclosed in Note F – Restructuring, in June 2016, we entered into agreements to relocate our corporate headquarters. One agreement is a sublease of the office space formerly occupied by our corporate headquarters and includes all furniture and fixtures. The sublease agreement is effective August 1, 2016 and coterminous with the prime lease agreement expiring on September 29, 2022. Rental income from the sublease will be $0.9 million annually plus 2.5% annual escalation, recorded as a reduction to rental expense in general and administrative expense. We also executed a one year lease agreement for temporary new corporate headquarters office space effective July 15, 2016. Annual rent expense will be $0.1 million through July 2017, also recorded in general and administrative expense. We anticipate cash savings of $0.8 million under the new agreement over the next 12 months and are reviewing alternatives for longer-term and lower cost office space.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	6 Months Ended
	Jun. 30, 2016
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	NOTE J - FAIR VALUE MEASUREMENTS We account for certain assets at fair value. The hierarchy below lists three levels of fair value based on the extent to which inputs used in measuring fair value are observable in the market. We categorize each of our fair value measurements in one of these three levels based on the lowest level input that is significant to the fair value measurement in its entirety. These levels are: Level 1 Level 2 Level 3 Assets measured at fair value on a recurring basis comprise only investments in short-term US Treasury Funds of $15.5 million as of December 31, 2015. The investments are classified as available for sale debt securities included in cash and cash equivalents in the consolidated balance sheets and are categorized as Level 1 measurements in the fair value hierarchy. We do not have any liabilities measured at fair value on a recurring basis. The following table summarizes assets measured at fair value on a nonrecurring basis during the six months ended June 30, 2016 (in thousands): Fair Total Value Level 3 Losses April 1, 2016 Omnilink Reporting Unit Indefinite lived trade names $ 1,360 $ 1,360 $ 1,612 Goodwill 15,316 15,316 2,264 DIY Reporting Unit Technology 146 146 81 Goodwill 1,441 1,441 215 Total nonrecurring fair value measurements $ 18,263 $ 18,263 $ 4,172 See Note D – Goodwill and Intangible Assets for additional information.

RECENT ACCOUNTING PRONOUNCEMENT

RECENT ACCOUNTING PRONOUNCEMENTS	6 Months Ended
	Jun. 30, 2016
Recent Accounting Pronouncements [Abstract]
RECENT ACCOUNTING PRONOUNCEMENTS	NOTE K – RECENT ACCOUNTING PRONOUNCEMENTS Recently Adopted Accounting Guidance In March 2015, the Financial Accounting Standards Board (FASB) issued guidance about simplifying the presentation of deferred financing costs. The guidance was intended to help clarify deferred financing 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 deferred financing costs were not affected. The guidance was effective January 1, 2016 and, in accordance with the guidance, $1.0 million of deferred financing costs is included in long-term debt as of June 30, 2016 and $0.4 million of deferred financing costs was reclassified from current and noncurrent other assets to the current and noncurrent portions of long-term debt as of December 31, 2015. See Note A – Summary of Significant Account Policies. In September 2015, the FASB issued guidance to simplify the accounting for measurement-period adjustments for an acquirer in a business combination. The update requires 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 was effective January 1, 2016 and the adoption of this guidance did not have a material impact on our financial statements. Recently Issued Accounting Guidance In March 2016, the FASB issued guidance to simplify several aspects of the accounting for share-based payments transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The guidance is effective for annual and interim periods beginning after December 31, 2016. Early adoption is permitted for any entity in any interim or annual period. We are currently evaluating the effect that the updated standard will have on our financial statements, but expect the guidance will add modest volatility in our equity-based compensation expense, provision for income taxes, and net income (loss) due to recording award forfeitures as they occur instead of on the basis of assumed averages. In February 2016, the FASB issued guidance that requires lessees to recognize most leases as assets and liabilities on the balance sheet. Qualitative and quantitative disclosures will be enhanced to better understand the amount, timing and uncertainty of cash flows arising from leases. The guidance is effective for annual and interim periods beginning after December 31, 2018. The updated standard mandates a modified retrospective transition method with early adoption permitted. We are currently evaluating the effect that the updated standard will have on our financial statements. In November 2015, the FASB issued guidance requiring all deferred tax assets and liabilities to be classified as non-current on the balance sheet instead of separating deferred taxes into current and non-current amounts. In addition, valuation allowance allocations between current and non-current deferred tax assets are no longer required because those allowances also will be classified as non-current. This standard is effective for public companies for annual periods beginning after December 15, 2016. We do not expect the adoption of this guidance to have a material impact on our financial statements. In July 2015, the FASB issued guidance intended to simplify the presentation of applicable inventory at the lower of cost or net realizable value. The new guidance clarifies that net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Subsequent measurement is unchanged for inventory measured using LIFO or the retail inventory method. The new guidance will be effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. We do not expect the adoption of this guidance to have a material impact on our financial position or results of operations. In May 2014, the FASB issued new accounting guidance for revenue recognized from contracts with customers. The core principle of the guidance is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under current guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. The guidance will become effective for us for fiscal years, and interim reporting periods within those years, beginning January 1, 2018 and will require retrospective application. We are evaluating the effect that this amendment will have on our consolidated financial statements and related disclosures. We have not yet selected a transition method nor have we determined the effect of the standard on our ongoing financial reporting.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2016
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE L – SUBSEQUENT EVENTS Operating Leases We entered into agreements effective in July and August, 2016 to relocate our corporate headquarters. See Note F – Restructuring and Note I – Leases, Commitments and Contingencies. Amended Debt Agreement On July 29, 2016, we entered into an amendment to the Crystal Loan Agreement to modify the covenant related to the maximum subscriber Churn defined in the agreement, and update the definition of Adjusted EBITDA. See Note G – Debt.

SUMMARY OF SIGNIFICANT ACCOUN19

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation 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 June 30, 2016 and our operating results and cash flows for the interim periods presented. The accompanying condensed consolidated balance sheet as of December 31, 2015 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, 2015 which includes information and disclosures not included in this quarterly report.
Estimates and Assumptions	Estimates and Assumptions 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 six months ended June 30, 2016 may not be indicative of the results that may be expected for the year ending December 31, 2016 or any future periods.
Restricted Cash	Restricted Cash As of June 30, 2016, cash of $0.2 million was held in escrow related to certain vendor obligations as a result of entering into our new loan agreement. See Note G – Debt. There was no restricted cash at December 31, 2015.
Reclassifications	Reclassifications As a result of the adoption of a recent accounting pronouncement, see Note K – Recent Accounting Pronouncements, the balance sheet as of December 31, 2015 reflects the following reclassifications (dollars in thousands): Historical Reclassi- Presentation fication As Adjusted Prepaid expenses and other current assets $ 2,037 $ (150 ) $ 1,887 Other assets 699 (290 ) 409 Current portion of long-term debt 3,750 (150 ) 3,600 Long-term debt, less current portion 15,599 (290 ) 15,309

SUMMARY OF SIGNIFICANT ACCOUN20

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	6 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
Schedule of reclassifications	Historical Reclassi- Presentation fication As Adjusted Prepaid expenses and other current assets $ 2,037 $ (150 ) $ 1,887 Other assets 699 (290 ) 409 Current portion of long-term debt 3,750 (150 ) 3,600 Long-term debt, less current portion 15,599 (290 ) 15,309

INVENTORY (Tables)

INVENTORY (Tables)	6 Months Ended
	Jun. 30, 2016
Inventory [Abstract]
Schedule of inventory	June 30, December 31, 2016 2015 Raw materials $ 1,640 $ 1,903 Finished goods 7,398 8,420 Inventory reserves (2,519 ) (2,706 ) $ 6,519 $ 7,617

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	6 Months Ended
	Jun. 30, 2016
Property, Plant and Equipment [Abstract]
Schedule of components of property and equipment	June 30, December 31, 2016 2015 Computer, network and other equipment $ 8,092 $ 7,150 Monitoring equipment 4,469 3,015 Furniture and fixtures 932 888 Leasehold improvements 376 374 Total property and equipment 13,869 11,427 Accumulated depreciation and amortization (7,733 ) (6,632 ) $ 6,136 $ 4,795

GOODWILL AND OTHER INTANGIBLE23

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)	6 Months Ended
	Jun. 30, 2016
Intangible Assets [Abstract]
Schedule of changes in carrying values	Omnilink DIY Total Trade Names Goodwill Technology Goodwill Impairment January 1, 2016 $ 2,972 $ 17,580 $ 245 $ 1,656 Amortization - - (18 ) - Impairment (1,612 ) (2,264 ) (81 ) (215 ) $ (4,172 ) June 30, 2016 $ 1,360 $ 15,316 $ 146 $ 1,441
Schedule of intangible assets other than goodwill	As of June 30, 2016 As of December 31, 2015 Remaining Gross Accumulated Net Book Gross Accumulated Net Book Purchased and developed software 1.9 $ 16,269 $ (11,220 ) $ 5,049 $ 15,399 $ (9,503 ) $ 5,896 Software in development n/a 1,439 - 1,439 1,250 - 1,250 Total software 17,708 (11,220 ) 6,488 16,649 (9,503 ) 7,146 Licenses 3.0 13,297 (12,352 ) 945 13,215 (12,167 ) 1,048 Customer relationships 7.7 8,167 (2,665 ) 5,502 8,167 (2,285 ) 5,882 Technologies 11.3 4,235 (754 ) 3,481 4,316 (595 ) 3,721 Patents and trademarks 2.2 4,375 (2,342 ) 2,033 4,236 (2,137 ) 2,099 Trade names Indefinite 1,360 - 1,360 2,972 - 2,972 Total other intangible assets 31,434 (18,113 ) 13,321 32,906 (17,184 ) 15,722 $ 49,142 $ (29,333 ) $ 19,809 $ 49,555 $ (26,687 ) $ 22,868

RESTRUCTURING (Tables)

RESTRUCTURING (Tables)	6 Months Ended
	Jun. 30, 2016
Restructuring Costs [Abstract]
Schedule of restructuring costs	Balance at December 31, 2015 $ - Net charges 1,243 Elimination of deferred rent 778 Write down of fixed assets (370 ) Payments (412 ) Balance at June 30, 2016 1,239 Less current portion (598 ) Amounts due after one year $ 641

DEBT (Tables)

DEBT (Tables)	6 Months Ended
	Jun. 30, 2016
Debt Disclosure [Abstract]
Schedule of debt	June 30, December 31, 2016 2015 Note payable to Crystal Financial LLC, with interest at LIBOR plus margin $ 17,000 $ - Note payable to Silicon Valley Bank, repaid in 2016 - 19,349 Less long-term deferred financing costs (973 ) (440 ) 16,027 18,909 Less current portion of long-term debt - (3,600 ) Noncurrent portion of long-term debt $ 16,027 $ 15,309

(LOSS) EARNINGS PER SHARE (Tabl

(LOSS) EARNINGS PER SHARE (Tables)	6 Months Ended
	Jun. 30, 2016
Earnings Per Share [Abstract]
Schedule of calculation of basic and dilutive earnings per share and anti-dilutive equity based compensation awards	Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Weighted average common shares outstanding: Basic 19,449 19,029 19,413 19,011 Dilutive effect of common stock equivalents - 240 - - Diluted 19,449 19,269 19,413 19,011 Anti-dilutive equity-based compensation awards 2,158 850 2,158 1,773

LEASES, COMMITMENTS AND CONTI27

LEASES, COMMITMENTS AND CONTINGENCIES (Tables)	6 Months Ended
	Jun. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Schedule of minimum capital lease payments	Total minimum lease payments $ 1,384 Less amounts representing interest (147 ) Present value of future minimum lease payments 1,237 Less current portion (198 ) Amounts due after one year $ 1,039

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	6 Months Ended
	Jun. 30, 2016
Fair Value Disclosures [Abstract]
Schedule of fair value on a nonrecurring basis	Fair Total Value Level 3 Losses April 1, 2016 Omnilink Reporting Unit Indefinite lived trade names $ 1,360 $ 1,360 $ 1,612 Goodwill 15,316 15,316 2,264 DIY Reporting Unit Technology 146 146 81 Goodwill 1,441 1,441 215 Total nonrecurring fair value measurements $ 18,263 $ 18,263 $ 4,172

SUMMARY OF SIGNIFICANT ACCOUN29

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Summary Of Significant Accounting Policies [Line Items]
Prepaid expenses and other current assets	$ 2,398	$ 1,887
Other assets	396	409
Current portion of long-term debt		3,600
Long-term debt, less current portion	$ 16,027	15,309
Historical presentation
Summary Of Significant Accounting Policies [Line Items]
Prepaid expenses and other current assets		2,037
Other assets		699
Current portion of long-term debt		3,750
Long-term debt, less current portion		15,599
Reclassification
Summary Of Significant Accounting Policies [Line Items]
Prepaid expenses and other current assets		(150)
Other assets		(290)
Current portion of long-term debt		(150)
Long-term debt, less current portion		$ (290)

SUMMARY OF SIGNIFICANT ACCOUN30

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Detail Textuals) $ in Millions	Jun. 30, 2016USD ($)
Accounting Policies [Abstract]
Cash held in escrow	$ 0.2

INVENTORY - Summary of inventor

INVENTORY - Summary of inventory (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Inventory [Abstract]
Raw materials	$ 1,640	$ 1,903
Finished goods	7,398	8,420
Inventory reserves	(2,519)	(2,706)
Inventory, net	$ 6,519	$ 7,617

INVENTORY (Detail Textuals)

INVENTORY (Detail Textuals) $ in Millions	Jun. 30, 2016USD ($)
Inventory [Abstract]
Inventory amount transferred to monitoring equipment	$ 1.5
Disposed of fully reserved inventory	$ 0.7

PROPERTY AND EQUIPMENT (Details

PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 13,869	$ 11,427
Accumulated depreciation and amortization	(7,733)	(6,632)
Property and equipment, net	6,136	4,795
Computer, network and other equipment
Property, Plant and Equipment [Line Items]
Total property and equipment	8,092	7,150
Monitoring equipment
Property, Plant and Equipment [Line Items]
Total property and equipment	4,469	3,015
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Total property and equipment	932	888
Leasehold improvements
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 376	$ 374

PROPERTY AND EQUIPMENT (Detail

PROPERTY AND EQUIPMENT (Detail Textuals) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2016USD ($)	Jun. 30, 2016USD ($)
Property, Plant and Equipment [Abstract]
Restructuring charges	$ 1,243	$ 1,243
Non cash charge value of the furniture and fixtures	400
Inventory amount transferred to monitoring equipment	$ 1,500	$ 1,500

GOODWILL AND OTHER INTANGIBLE35

GOODWILL AND OTHER INTANGIBLE ASSETS - Summary of changes in effected carrying values (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Indefinite-lived Intangible Assets [Roll Forward]
Amortization	$ (1,300)	$ (1,300)	$ (2,600)	$ (2,500)
Impairment	(4,172)		(4,172)
Trade names | Omnilink
Indefinite-lived Intangible Assets [Roll Forward]
January 1, 2016			2,972
Impairment	(1,612)		(1,612)
June 30, 2016	1,360		1,360
Technologies | DIY
Indefinite-lived Intangible Assets [Roll Forward]
January 1, 2016			245
Amortization			(18)
Impairment	(81)		(81)
June 30, 2016	146		146
Goodwill | Omnilink
Indefinite-lived Intangible Assets [Roll Forward]
January 1, 2016			17,580
Impairment	(2,264)		(2,264)
June 30, 2016	15,316		15,316
Goodwill | DIY
Indefinite-lived Intangible Assets [Roll Forward]
January 1, 2016			1,656
Impairment	(215)		(215)
June 30, 2016	$ 1,441		$ 1,441

GOODWILL AND OTHER INTANGIBLE36

GOODWILL AND OTHER INTANGIBLE ASSETS - Summary of intangible assets other than goodwill (Details 1) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 49,142	$ 49,555
Accumulated Amortization	(29,333)	(26,687)
Net Book Value	$ 19,809	22,868
Purchased and developed software
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Remaining Useful Lives	1 year 10 months 24 days
Gross Carrying Amount	$ 16,269	15,399
Accumulated Amortization	(11,220)	(9,503)
Net Book Value	5,049	5,896
Software in development
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Gross Carrying Amount	1,439	1,250
Accumulated Amortization
Net Book Value	1,439	1,250
Total software
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Gross Carrying Amount	17,708	16,649
Accumulated Amortization	(11,220)	(9,503)
Net Book Value	$ 6,488	7,146
Licenses
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Remaining Useful Lives	3 years
Gross Carrying Amount	$ 13,297	13,215
Accumulated Amortization	(12,352)	(12,167)
Net Book Value	$ 945	1,048
Customer relationships
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Remaining Useful Lives	7 years 8 months 12 days
Gross Carrying Amount	$ 8,167	8,167
Accumulated Amortization	(2,665)	(2,285)
Net Book Value	$ 5,502	5,882
Technologies
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Remaining Useful Lives	11 years 3 months 18 days
Gross Carrying Amount	$ 4,235	4,316
Accumulated Amortization	(754)	(595)
Net Book Value	$ 3,481	3,721
Patents and trademarks
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Remaining Useful Lives	2 years 2 months 12 days
Gross Carrying Amount	$ 4,375	4,236
Accumulated Amortization	(2,342)	(2,137)
Net Book Value	$ 2,033	2,099
Trade names
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Weighted Remaining Average Useful Lives	Indefinite
Gross Carrying Amount	$ 1,360	2,972
Net Book Value	1,360	2,972
Total Other Intangibles Assets
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Gross Carrying Amount	31,434	32,906
Accumulated Amortization	(18,113)	(17,184)
Net Book Value	$ 13,321	$ 15,722

GOODWILL AND OTHER INTANGIBLE37

GOODWILL AND OTHER INTANGIBLE ASSETS (Detail Textuals) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Impairment of goodwill and other intangible assets	$ 4,172		$ 4,172
Amortization expense of intangible assets	1,300	$ 1,300	2,600	$ 2,500
Amortization of intangible assets recorded in cost of subscription revenue	300	200	600	500
Internally generated software development costs	300	$ 800	600	$ 1,200
Trade names | Omnilink
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Impairment of goodwill and other intangible assets	1,612		1,612
Goodwill | Omnilink
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Impairment of goodwill and other intangible assets	2,264		2,264
Goodwill | DIY
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Impairment of goodwill and other intangible assets	215		215
Technologies | DIY
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Impairment of goodwill and other intangible assets	$ 81		81
Amortization expense of intangible assets			$ 18

INCOME TAXES (Detail Textuals)

INCOME TAXES (Detail Textuals) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Income Taxes [Abstract]
Income tax expense (benefit)	$ (234)	$ 141	$ (170)	$ (245)
Percentage of tax expense effective tax rate	2.70%	34.30%	1.60%	41.00%

RESTRUCTURING - Summary of rest

RESTRUCTURING - Summary of restructuring activities (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2016USD ($)
Restructuring Reserve [Roll Forward]
Balance at December 31, 2015
Net charges	1,243
Elimination of deferred rent	778
Write down of fixed assets	(370)
Payments	(412)
Balance at June 30, 2016	1,239
Less current portion	(598)
Amounts due after one year	$ 641

RESTRUCTURING (Detail Textuals)

RESTRUCTURING (Detail Textuals) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2016USD ($)	Jun. 30, 2016USD ($)
Restructuring Costs [Abstract]
Restructuring charges	$ 1,243	$ 1,243
Restructuring charges related to facilities		800
Severance costs		400
Broker and other related fees		400
Restructuring non-cash charge for estimated August 1, 2016		400
Restructuring additional anticipated moving and other related costs	$ 100	100
Restructuring anticipated cash savings		$ 800

DEBT - Summary of debt (Details

DEBT - Summary of debt (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Less long-term deferred financing costs	$ (973)	$ (440)
Long-term debt, total	16,027	18,909
Less current portion of long-term debt		(3,600)
Noncurrent portion of long-term debt	16,027	15,309
Note payable to Crystal Financial LLC, with interest at LIBOR plus margin
Debt Instrument [Line Items]
Long-term debt, gross	17,000
Note payable to Silicon Valley Bank, repaid in 2016
Debt Instrument [Line Items]
Long-term debt, gross		$ 19,349

DEBT (Detail Textuals)

DEBT (Detail Textuals) - USD ($)	Mar. 09, 2016	Jun. 30, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Loss on extinguishment of debt		$ (290,000)
Note payable to Crystal Financial LLC, with interest at LIBOR plus margin
Debt Instrument [Line Items]
Long-term debt, gross		$ 17,000,000
Note payable to Crystal Financial LLC, with interest at LIBOR plus margin | Term loan
Debt Instrument [Line Items]
Long-term debt, gross	$ 17,000,000
Amount of quarterly principal payments	$ 637,500
Prepayment penalty percentage prior to first anniversary	3.00%
Prepayment penalty percentage after first anniversary and before second anniversary	2.00%
Interest rate applicable to amounts drawn		9.18%
Note payable to Crystal Financial LLC, with interest at LIBOR plus margin | Silicon Valley Bank | Term loan
Debt Instrument [Line Items]
Repayment of long-term debt from cash on hand	$ 2,900,000
Repayment of outstanding debt	$ 19,400,000
Loss on extinguishment of debt		$ 300,000

(LOSS) EARNINGS PER SHARE (Deta

(LOSS) EARNINGS PER SHARE (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Weighted average common shares outstanding:
Basic (in shares)	19,449	19,029	19,413	19,011
Dilutive effect of common stock equivalents (in shares)		240
Diluted (in shares)	19,449	19,269	19,413	19,011
Anti-dilutive equity-based compensation awards	2,158	850	2,158	1,773

LEASES, COMMITMENTS AND CONTI44

LEASES, COMMITMENTS AND CONTINGENCIES - Future minimum capital lease payments and the present value of the net minimum lease payments (Details) $ in Thousands	Jun. 30, 2016USD ($)
Commitments and Contingencies Disclosure [Abstract]
Total minimum lease payments	$ 1,384
Less amounts representing interest	(147)
Present value of future minimum lease payments	1,237
Less current portion	(198)
Amounts due after one year	$ 1,039

LEASES, COMMITMENTS AND CONTI45

LEASES, COMMITMENTS AND CONTINGENCIES (Detail Textuals) - USD ($) $ in Millions	1 Months Ended	6 Months Ended
	Mar. 31, 2016	Jun. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Term of lease arrangement	60 months
Lease amount	$ 1.2
Rental income from sublease		$ 0.9
Annual escalation		2.50%
Annual rent expense		$ 0.1
Restructuring anticipated cash savings		$ 0.8

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2016USD ($)	Jun. 30, 2016USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impairment of goodwill and other intangible assets	$ 4,172	$ 4,172
Indefinite lived trade names | Omnilink
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impairment of goodwill and other intangible assets	1,612	1,612
Technologies | DIY
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impairment of goodwill and other intangible assets	81	81
Goodwill | Omnilink
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impairment of goodwill and other intangible assets	2,264	2,264
Goodwill | DIY
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impairment of goodwill and other intangible assets	215	215
Nonrecurring basis
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impairment of goodwill and other intangible assets	4,172	4,172
Total nonrecurring fair value measurements	18,263	18,263
Nonrecurring basis | Indefinite lived trade names | Omnilink
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impairment of goodwill and other intangible assets	1,612	1,612
Total nonrecurring fair value measurements	1,360	1,360
Nonrecurring basis | Technologies | DIY
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impairment of goodwill and other intangible assets	81	81
Total nonrecurring fair value measurements	146	146
Nonrecurring basis | Goodwill | Omnilink
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impairment of goodwill and other intangible assets	2,264	2,264
Total nonrecurring fair value measurements	15,316	15,316
Nonrecurring basis | Goodwill | DIY
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impairment of goodwill and other intangible assets	215	215
Total nonrecurring fair value measurements	1,441	1,441
Nonrecurring basis | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total nonrecurring fair value measurements	18,263	18,263
Nonrecurring basis | Level 3 | Indefinite lived trade names | Omnilink
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total nonrecurring fair value measurements	1,360	1,360
Nonrecurring basis | Level 3 | Technologies | DIY
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total nonrecurring fair value measurements	146	146
Nonrecurring basis | Level 3 | Goodwill | Omnilink
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total nonrecurring fair value measurements	15,316	15,316
Nonrecurring basis | Level 3 | Goodwill | DIY
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total nonrecurring fair value measurements	$ 1,441	$ 1,441

FAIR VALUE MEASUREMENTS (Deta47

FAIR VALUE MEASUREMENTS (Detail Textuals) $ in Millions	Dec. 31, 2015USD ($)
Fair Value Disclosures [Abstract]
Assets measured at fair value on a recurring basis for investments in short-term US Treasury Funds	$ 15.5

RECENT ACCOUNTING PRONOUNCEME48

RECENT ACCOUNTING PRONOUNCEMENTS (Detail Textuals) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Recent Accounting Pronouncements [Line Items]
Deferred financing costs	$ (973)	$ (440)
Deferred financing costs reclassified from assets to liabilities	440
Long-term debt
Recent Accounting Pronouncements [Line Items]
Deferred financing costs	$ 1,044