Numerex (NMRX) 10-Q 7 Nov 16 2016 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Oct. 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		19,583,392
Document Type	10-Q
Document Period End Date	Sep. 30, 2016
Amendment Flag	false
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3

UNAUDITED CONDENSED CONSOLIDATE

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
CURRENT ASSETS
Cash and cash equivalents	$ 9,824	$ 16,237
Restricted cash	221
Accounts receivable, less allowance for doubtful accounts of $743 and $618	9,353	9,237
Financing receivables, current	1,877	1,780
Inventory, net of reserves	6,339	7,617
Prepaid expenses and other current assets	1,838	1,887
Deferred tax assets, current	603	603
TOTAL CURRENT ASSETS	30,055	37,361
Financing receivables, less current portion	2,090	2,330
Property and equipment, net of accumulated depreciation and amortization	6,136	4,795
Software, net of accumulated amortization	6,118	7,146
Other intangible assets, net of accumulated amortization	12,879	15,722
Goodwill	40,945	43,424
Other assets	849	409
TOTAL ASSETS	99,072	111,187
CURRENT LIABILITIES
Accounts payable	11,572	11,390
Accrued expenses and other current liabilities	3,777	2,864
Deferred revenues	1,563	1,942
Current maturities of long-term debt, net of debt issuance costs	638	3,600
Current obligations under capital lease	257
TOTAL CURRENT LIABILITIES	17,807	19,796
Long-term debt, net of debt issuance costs, less current maturities	15,456	15,309
Obligations under capital lease, noncurrent	980
Deferred tax liabilities, noncurrent	1,416	1,595
Other liabilities	1,528	1,891
TOTAL LIABILITIES	37,187	38,591
COMMITMENTS AND CONTINGENCIES (NOTE H)
SHAREHOLDERS' EQUITY
Preferred stock, no par value; 3,000 authorized; none issued
Additional paid-in capital	104,568	102,108
Treasury stock, at cost, 1,326 and 1,316 shares	(5,466)	(5,444)
Accumulated other comprehensive loss	(105)	(117)
Accumulated deficit	(37,112)	(23,951)
TOTAL SHAREHOLDERS' EQUITY	61,885	72,596
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	99,072	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	Sep. 30, 2016	Dec. 31, 2015
Accounts receivable, allowance for doubtful accounts (in dollars)	$ 743	$ 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	20,910	20,652
Common stock, shares outstanding	19,583	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 - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Net revenues:
Subscription and support revenues	$ 14,388	$ 15,624	$ 44,183	$ 48,874
Embedded devices and hardware	3,024	7,710	8,886	21,791
Total net revenues	17,412	23,334	53,069	70,665
Cost of sales, exclusive of a portion of depreciation and amortization shown below:
Subscription and support revenues	5,828	6,538	17,242	19,728
Embedded devices and hardware	3,082	6,958	9,027	19,582
Inventory reserves	27	1,277	514	1,547
Impairment of other asset		1,275		1,275
Gross profit	8,475	7,286	26,286	28,533
Operating expenses:
Sales and marketing	3,229	3,047	9,444	9,136
General and administrative	3,280	4,507	11,269	12,108
Engineering and development	2,229	2,201	6,920	6,695
Depreciation and amortization	1,658	2,100	4,992	5,411
Impairment of goodwill and other intangible assets		1,250	4,172	1,250
Restructuring charges	276		1,520
Operating loss	(2,197)	(5,819)	(12,031)	(6,067)
Interest expense	469	188	1,196	604
Loss on extinguishment of debt			290
Other income, net	(33)	(31)	(99)	(100)
Loss before income taxes	(2,633)	(5,976)	(13,418)	(6,571)
Income tax (benefit) expense	(87)	10,404	(257)	10,159
Net loss	(2,546)	(16,380)	(13,161)	(16,730)
Other items of comprehensive income (loss), net of income taxes:
Foreign currency translation adjustment	1	30	12	47
Comprehensive loss	$ (2,545)	$ (16,350)	$ (13,149)	$ (16,683)
Loss per share:
Basic (in dollars per share)	$ (0.13)	$ (0.86)	$ (0.68)	$ (0.88)
Diluted (in dollars per share)	$ (0.13)	$ (0.86)	$ (0.68)	$ (0.88)
Weighted average shares outstanding used in per share calculation
Basic (in shares)	19,542	19,137	19,456	19,053
Diluted (in shares)	19,542	19,137	19,456	19,053

UNAUDITED CONDENSED CONSOLIDAT5

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY - 9 months ended Sep. 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		2,202				2,202
Exercises, vesting and other equity- based compensation plan activity, net		250	(22)			228
Exercises, vesting and other equity- based compensation plan activity, net (in shares)	257
Issuance of common shares for services		8				8
Issuance of common shares for services (in shares)	1
Translation adjustment				12		12
Net loss					(13,161)	(13,161)
Balance at Sep. 30, 2016		$ 104,568	$ (5,466)	$ (105)	$ (37,112)	$ 61,885
Balance (in shares) at Sep. 30, 2016	20,910

UNAUDITED CONDENSED CONSOLIDAT6

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash flows from operating activities:
Net loss	$ (13,161)	$ (16,730)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation and amortization	5,997	6,163
Impairment of goodwill and other assets	4,172	2,525
Non-cash restructuring charges	345
Equity-based compensation expense	2,202	2,319
Loss on extinguishment of debt	290
Deferred income taxes	(268)	10,147
Bad debt expense	327	400
Inventory reserves	514	1,547
Other non-cash expense	138	63
Changes in assets and liabilities:
Accounts and financing receivables	(303)	(1,898)
Inventory, net	(1,323)	(861)
Accounts payable	427	(31)
Deferred revenue	(554)	231
Other	394	249
Net cash (used in) provided by operating activities	(803)	4,124
Cash flows from investing activities:
Purchases of property and equipment	(789)	(1,984)
Capitalized software development and purchases of software	(1,662)	(3,314)
Net cash used in investing activities	(2,451)	(5,298)
Cash flows from financing activities:
Proceeds from long-term debt	17,000
Principal payments on debt	(19,349)	(3,313)
Principal payments on capital lease obligations		(148)
Exercises, vesting and other equity-based compensation plan activity, net	486	138
Payment of taxes on equity-based awards	(258)	(291)
Deferred financing costs paid	(1,038)
Net cash used in financing activities	(3,159)	(3,614)
Net decrease in cash and cash equivalents	(6,413)	(4,788)
Cash and cash equivalents at beginning of period	16,237	17,270
Cash and cash equivalents at end of period	9,824	12,482
Supplemental disclosures of cash flow information:
Cash paid for interest	1,047	513
Net cash paid for income taxes	6	70
Disclosure of non-cash operating, investing and financing activities:
Capital expenditures in accounts payable	196	203
Fixed assets acquired under a capital lease	1,237
Transfers of inventory to equipment for managed services	$ 2,087	$ 1,064

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 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 leading provider of managed enterprise solutions enabling the Internet of Things (IoT). The Company's solutions produce new revenue streams or create operating efficiencies for its customers. Numerex provides its technology and services through its integrated platforms, which are generally sold on a subscription basis. The Company offers a portfolio of managed end-to-end IoT solutions including smart devices, network connectivity and service applications capable of addressing the needs of a wide spectrum of vertical markets and industrial customers. The Company's mission is to empower enterprise operations with world-class, managed IoT solutions that are simple, innovative, scalable, and secure. Numerex is ISO 27001 information security-certified, highlighting the Company's focus on data security, service reliability and around-the-clock support of its customers. Foreign operations were not significant to us for the three and nine months ended September 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 September 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 nine months ended September 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 September 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	9 Months Ended
	Sep. 30, 2016
Inventory [Abstract]
INVENTORY	NOTE B – INVENTORY Inventory consisted of the following as of the dates below (in thousands): September 30, December 31, 2016 2015 Raw materials $ 1,553 $ 1,903 Finished goods 7,206 8,420 Inventory reserves (2,420 ) (2,706 ) $ 6,339 $ 7,617 During the nine months ended September 30, 2016, we transferred $2.1 million of inventory to monitoring equipment within property and equipment and disposed of $0.8 million of fully reserved invento

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	9 Months Ended
	Sep. 30, 2016
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT	NOTE C – PROPERTY AND EQUIPMENT Property and equipment consisted of the following (in thousands): September 30, December 31, 2016 2015 Computer, network and other equipment $ 8,759 $ 7,150 Monitoring equipment 5,102 3,015 Furniture and fixtures 486 888 Leasehold improvements 265 374 Total property and equipment 14,612 11,427 Accumulated depreciation and amortization (8,476 ) (6,632 ) $ 6,136 $ 4,795 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 $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 nine months ended September 30, 2016, we transferred $2.1 million of inventory to monitoring equipment as part of our managed services business.

GOODWILL AND OTHER INTANGIBLE A

GOODWILL AND OTHER INTANGIBLE ASSETS	9 Months Ended
	Sep. 30, 2016
Intangible Assets [Abstract]
GOODWILL AND OTHER INTANGIBLE ASSETS	NOTE D – GOODWILL AND OTHER INTANGIBLE ASSETS Impairment Charges During the second quarter of 2016, management evaluated and determined that the Omnilink and Do-It-Yourself (DIY) product lines and reporting units should be tested for impairment as a result of lower operating results, which are related to strategic changes and delays associated with the launch of a new personal tracking product line. Management initiated a quantitative two-step goodwill impairment test by comparing the carrying value of the net assets of the respective units to its fair value based on a discounted cash flow analysis. Based on our assessment, we determined that the fair value of these reporting units were less than the respective carrying value and goodwill was impaired, and we recorded $4.2 million in impairment charges. Such charges related to trade names, technology and goodwill as of September 30, 2016, and are summarized as follows: 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 - - (27 ) - Impairment (1,612 ) (2,264 ) (81 ) (215 ) $ (4,172 ) September 30, 2016 $ 1,360 $ 15,316 $ 137 $ 1,441 There were no impairment charges recorded during the quarter ended September 30, 2016. Intangible Assets Other Than Goodwill Intangible assets other than goodwill are summarized as follows (dollars in thousands): As of September 30, 2016 As of December 31, 2015 Gross Gross Remaining Carrying Accumulated Net Book Carrying Accumulated Net Book Useful Lives Amount Amortization Value Amount Amortization Value Purchased and developed software 1.8 $ 16,736 $ (12,051 ) $ 4,685 $ 15,399 $ (9,503 ) $ 5,896 Software in development n/a 1,433 - 1,433 1,250 - 1,250 Total software 18,169 (12,051 ) 6,118 16,649 (9,503 ) 7,146 Licenses 2.9 13,215 (12,442 ) 773 13,215 (12,167 ) 1,048 Customer relationships 7.7 8,167 (2,852 ) 5,315 8,167 (2,285 ) 5,882 Technologies 11.2 4,316 (829 ) 3,487 4,316 (595 ) 3,721 Patents and trademarks 1.9 4,296 (2,352 ) 1,944 4,236 (2,137 ) 2,099 Trade names Indefinite 1,360 - 1,360 2,972 - 2,972 Total other intangible assets 31,354 (18,475 ) 12,879 32,906 (17,184 ) 15,722 $ 49,523 $ (30,526 ) $ 18,997 $ 49,555 $ (26,687 ) $ 22,868 Remaining useful lives in the preceding table were calculated on a weighted average basis as of September 30, 2016. Intangible asset amortization expense recorded in operations was $1.3 million and $3.8 million, respectively, for the three month and nine months ended September 30, 2016 compared to $1.3 million and $3.8 million for the respective periods in 2015. Amortization and depreciation expense recorded in cost of subscription revenues was $0.4 million and $1.0 million, respectively, for the three and nine months ended September 30, 2016, compared to $0.3 million and $0.8 million, respectively, for the three and nine months ended September 30, 2015. Additionally, we have capitalized approximately $0.5 million and $1.1 million of internally generated software development costs for the three and nine months ended September 30, 2016, respectively, and $0.6 million and $1.8 million for the three and nine months ended September 30, 2015, respectively.

INCOME TAXES

INCOME TAXES	9 Months Ended
	Sep. 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 $0.1 million and $0.3 million for the three and nine months ending September 30, 2016, respectively, representing effective tax rates of 3.3% and 1.9%, 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 $10.4 million for the three months ended September 30, 2015 and income tax expense of $10.2 million for the nine months ended September 30, 2015. The effective tax rates were 174.1% and 154.6% for the three and nine months ended September 30, 2015, respectively. The effective tax rates for the three months and nine months ended September 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 2013 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	9 Months Ended
	Sep. 30, 2016
Restructuring Costs [Abstract]
RESTRUCTURING	NOTE F – RESTRUCTURING In 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 is coterminous with the prime lease agreement expiring on September 29, 2022. We recorded a restructuring charge of $1.5 million, which includes $0.8 million related to facilities and $0.7 million in severance costs for the nine months ended September 30, 2016. Of this $1.5 million charge, $1.2 million was recorded during the three months ended June 30, 2016, related to severance and facility charges, and $0.3 million was recorded for the three months ended September 30, 2016, related to severance. The restructuring charge for facilities of $0.8 million 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, as well as moving 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.

DEBT

DEBT	9 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
DEBT	NOTE G – DEBT Debt consisted of the following (dollars in thousands): September 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 (906 ) (440 ) 16,094 18,909 Less current portion of long-term debt (638 ) (3,600 ) Noncurrent portion of long-term debt $ 15,456 $ 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 nine months ended September 30, 2016. The maturity date of the term loan is March 9, 2020. We are required to make regular quarterly principal payments of $0.6 million 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 September 30, 2016, the applicable interest rate was 9.35%. 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 and November 3, 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 amendments, we were in compliance with all covenants as of September 30, 2016.

(LOSS) EARNINGS PER SHARE

(LOSS) EARNINGS PER SHARE	9 Months Ended
	Sep. 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. Diluted (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 (in thousands). For the Three Months Ended For the Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Weighted average common shares outstanding Basic 19,542 19,137 19,456 19,053 Dilutive effect of common stock equivalents - - - - Total 19,542 19,137 19,456 19,053 Anti-dilutive equity-based compensation awards 1,571 2,294 1,576 2,294

LEASES, COMMITMENTS AND CONTING

LEASES, COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 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 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 September 30, 2016 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 (257 ) Amounts due after one year $ 980 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 is 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	9 Months Ended
	Sep. 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 nine months ended September 30, 2016 (in thousands): Fair Total Value Level 3 Losses 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	9 Months Ended
	Sep. 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, $0.9 million of deferred financing costs is included in long-term debt as of September 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 August 2016, the FASB issued guidance to reduce diversity in practice related to eight specific cash flow issues. This standard will be effective for annual periods beginning after December 15, 2017, including interim periods within that reporting period. Early adoption of this standard is permitted. The Company is currently evaluating the impact this guidance may have on its statement of cash flows. 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	9 Months Ended
	Sep. 30, 2016
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE L – SUBSEQUENT EVENTS Amended Debt Agreement On November 3, 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)	9 Months Ended
	Sep. 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 September 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 nine months ended September 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 September 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)	9 Months Ended
	Sep. 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)	9 Months Ended
	Sep. 30, 2016
Inventory [Abstract]
Schedule of inventory	September 30, December 31, 2016 2015 Raw materials $ 1,553 $ 1,903 Finished goods 7,206 8,420 Inventory reserves (2,420 ) (2,706 ) $ 6,339 $ 7,617

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	9 Months Ended
	Sep. 30, 2016
Property, Plant and Equipment [Abstract]
Schedule of components of property and equipment	September 30, December 31, 2016 2015 Computer, network and other equipment $ 8,759 $ 7,150 Monitoring equipment 5,102 3,015 Furniture and fixtures 486 888 Leasehold improvements 265 374 Total property and equipment 14,612 11,427 Accumulated depreciation and amortization (8,476 ) (6,632 ) $ 6,136 $ 4,795

GOODWILL AND OTHER INTANGIBLE23

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)	9 Months Ended
	Sep. 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 - - (27 ) - Impairment (1,612 ) (2,264 ) (81 ) (215 ) $ (4,172 ) September 30, 2016 $ 1,360 $ 15,316 $ 137 $ 1,441
Schedule of intangible assets other than goodwill	As of September 30, 2016 As of December 31, 2015 Gross Gross Remaining Carrying Accumulated Net Book Carrying Accumulated Net Book Useful Lives Amount Amortization Value Amount Amortization Value Purchased and developed software 1.8 $ 16,736 $ (12,051 ) $ 4,685 $ 15,399 $ (9,503 ) $ 5,896 Software in development n/a 1,433 - 1,433 1,250 - 1,250 Total software 18,169 (12,051 ) 6,118 16,649 (9,503 ) 7,146 Licenses 2.9 13,215 (12,442 ) 773 13,215 (12,167 ) 1,048 Customer relationships 7.7 8,167 (2,852 ) 5,315 8,167 (2,285 ) 5,882 Technologies 11.2 4,316 (829 ) 3,487 4,316 (595 ) 3,721 Patents and trademarks 1.9 4,296 (2,352 ) 1,944 4,236 (2,137 ) 2,099 Trade names Indefinite 1,360 - 1,360 2,972 - 2,972 Total other intangible assets 31,354 (18,475 ) 12,879 32,906 (17,184 ) 15,722 $ 49,523 $ (30,526 ) $ 18,997 $ 49,555 $ (26,687 ) $ 22,868

DEBT (Tables)

DEBT (Tables)	9 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
Schedule of debt	September 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 (906 ) (440 ) 16,094 18,909 Less current portion of long-term debt (638 ) (3,600 ) Noncurrent portion of long-term debt $ 15,456 $ 15,309

(LOSS) EARNINGS PER SHARE (Tabl

(LOSS) EARNINGS PER SHARE (Tables)	9 Months Ended
	Sep. 30, 2016
Earnings Per Share [Abstract]
Schedule of calculation of basic and dilutive earnings per share and anti-dilutive equity based compensation awards	For the Three Months Ended For the Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Weighted average common shares outstanding Basic 19,542 19,137 19,456 19,053 Dilutive effect of common stock equivalents - - - - Total 19,542 19,137 19,456 19,053 Anti-dilutive equity-based compensation awards 1,571 2,294 1,576 2,294

LEASES, COMMITMENTS AND CONTI26

LEASES, COMMITMENTS AND CONTINGENCIES (Tables)	9 Months Ended
	Sep. 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 (257 ) Amounts due after one year $ 980

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	9 Months Ended
	Sep. 30, 2016
Fair Value Disclosures [Abstract]
Schedule of fair value on a nonrecurring basis	Fair Total Value Level 3 Losses 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 ACCOUN28

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Summary Of Significant Accounting Policies [Line Items]
Prepaid expenses and other current assets	$ 1,838	$ 1,887
Other assets	849	409
Current portion of long-term debt	638	3,600
Long-term debt, less current portion	$ 15,456	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 ACCOUN29

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

INVENTORY - Summary of inventor

INVENTORY - Summary of inventory (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Inventory [Abstract]
Raw materials	$ 1,553	$ 1,903
Finished goods	7,206	8,420
Inventory reserves	(2,420)	(2,706)
Inventory, net	$ 6,339	$ 7,617

INVENTORY (Detail Textuals)

INVENTORY (Detail Textuals) $ in Millions	Sep. 30, 2016USD ($)
Inventory [Abstract]
Inventory amount transferred to monitoring equipment	$ 2.1
Disposed of fully reserved inventory	$ 0.8

PROPERTY AND EQUIPMENT (Details

PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 14,612	$ 11,427
Accumulated depreciation and amortization	(8,476)	(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	8,759	7,150
Monitoring equipment
Property, Plant and Equipment [Line Items]
Total property and equipment	5,102	3,015
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Total property and equipment	486	888
Leasehold improvements
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 265	$ 374

PROPERTY AND EQUIPMENT (Detail

PROPERTY AND EQUIPMENT (Detail Textuals) - USD ($) $ in Millions	1 Months Ended
	Aug. 31, 2016	Sep. 30, 2016
Property, Plant and Equipment [Abstract]
Non cash charge value of the furniture and fixtures	$ 0.4
Inventory amount transferred to monitoring equipment		$ 2.1

GOODWILL AND OTHER INTANGIBLE34

GOODWILL AND OTHER INTANGIBLE ASSETS - Summary of changes in effected carrying values (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Indefinite-lived Intangible Assets [Roll Forward]
Amortization	$ (1,300)	$ (1,300)	$ (3,800)	$ (3,800)
Impairment		$ (1,250)	(4,172)	$ (1,250)
Trade names | Omnilink
Indefinite-lived Intangible Assets [Roll Forward]
January 1, 2016			2,972
Amortization
Impairment			(1,612)
September 30, 2016	1,360		1,360
Technologies | DIY
Indefinite-lived Intangible Assets [Roll Forward]
January 1, 2016			245
Amortization			(27)
Impairment			(81)
September 30, 2016	137		137
Goodwill | Omnilink
Indefinite-lived Intangible Assets [Roll Forward]
January 1, 2016			17,580
Amortization
Impairment			(2,264)
September 30, 2016	15,316		15,316
Goodwill | DIY
Indefinite-lived Intangible Assets [Roll Forward]
January 1, 2016			1,656
Amortization
Impairment			(215)
September 30, 2016	$ 1,441		$ 1,441

GOODWILL AND OTHER INTANGIBLE35

GOODWILL AND OTHER INTANGIBLE ASSETS - Summary of intangible assets other than goodwill (Details 1) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 49,523	$ 49,555
Accumulated Amortization	(30,526)	(26,687)
Net Book Value	$ 18,997	22,868
Purchased and developed software
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Remaining Useful Lives	1 year 9 months 18 days
Gross Carrying Amount	$ 16,736	15,399
Accumulated Amortization	(12,051)	(9,503)
Net Book Value	4,685	5,896
Software in development
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Gross Carrying Amount	1,433	1,250
Accumulated Amortization
Net Book Value	1,433	1,250
Total software
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Gross Carrying Amount	18,169	16,649
Accumulated Amortization	(12,051)	(9,503)
Net Book Value	$ 6,118	7,146
Licenses
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Remaining Useful Lives	2 years 10 months 24 days
Gross Carrying Amount	$ 13,215	13,215
Accumulated Amortization	(12,442)	(12,167)
Net Book Value	$ 773	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	(2,852)	(2,285)
Net Book Value	$ 5,315	5,882
Technologies
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Remaining Useful Lives	11 years 2 months 12 days
Gross Carrying Amount	$ 4,316	4,316
Accumulated Amortization	(829)	(595)
Net Book Value	$ 3,487	3,721
Patents and trademarks
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Remaining Useful Lives	1 year 10 months 24 days
Gross Carrying Amount	$ 4,296	4,236
Accumulated Amortization	(2,352)	(2,137)
Net Book Value	$ 1,944	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	31,354	32,906
Accumulated Amortization	(18,475)	(17,184)
Net Book Value	$ 12,879	$ 15,722

GOODWILL AND OTHER INTANGIBLE36

GOODWILL AND OTHER INTANGIBLE ASSETS (Detail Textuals) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Intangible Assets [Abstract]
Impairment of goodwill and other intangible assets		$ 1,250	$ 4,172	$ 1,250
Amortization expense of intangible assets	$ 1,300	1,300	3,800	3,800
Amortization of intangible assets recorded in cost of subscription revenue	400	300	1,000	800
Internally generated software development costs	$ 500	$ 600	$ 1,100	$ 1,800

INCOME TAXES (Detail Textuals)

INCOME TAXES (Detail Textuals) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Income Taxes [Abstract]
Income tax expense (benefit)	$ (87)	$ 10,404	$ (257)	$ 10,159
Percentage of tax expense effective tax rate	3.30%	174.10%	1.90%	154.60%

RESTRUCTURING (Detail Textuals)

RESTRUCTURING (Detail Textuals) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Jun. 30, 2016	Sep. 30, 2016
Restructuring Costs [Abstract]
Restructuring charges	$ 276	$ 1,200	$ 1,520
Restructuring charges related to facilities	300		800
Severance costs	$ 300		700
Broker and other related fees			400
Restructuring non-cash charge for estimated August 1, 2016			400
Restructuring anticipated cash savings			$ 800

DEBT - Summary of debt (Details

DEBT - Summary of debt (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Less long-term deferred financing costs	$ (906)	$ (440)
Long-term debt, total	16,094	18,909
Less current portion of long-term debt	(638)	(3,600)
Noncurrent portion of long-term debt	15,456	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 ($) $ in Thousands	Mar. 09, 2016	Sep. 30, 2016
Debt Instrument [Line Items]
Loss on extinguishment of debt		$ (290)
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 Crystal Financial LLC, with interest at LIBOR plus margin | Term loan
Debt Instrument [Line Items]
Long-term debt, gross	$ 17,000
Amount of quarterly principal payments	$ 600
Prepayment penalty percentage prior to first anniversary	3.00%
Prepayment penalty percentage after first anniversary and before second anniversary	2.00%
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
Repayment of outstanding debt	$ 19,400
Loss on extinguishment of debt		$ 300
Interest rate applicable to amounts drawn		9.35%

(LOSS) EARNINGS PER SHARE (Deta

(LOSS) EARNINGS PER SHARE (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Weighted average common shares outstanding:
Basic (in shares)	19,542	19,137	19,456	19,053
Dilutive effect of common stock equivalents (in shares)
Diluted (in shares)	19,542	19,137	19,456	19,053
Anti-dilutive equity-based compensation awards	1,571	2,294	1,576	2,294

LEASES, COMMITMENTS AND CONTI42

LEASES, COMMITMENTS AND CONTINGENCIES - Future minimum capital lease payments and the present value of the net minimum lease payments (Details) $ in Thousands	Sep. 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	(257)
Amounts due after one year	$ 980

LEASES, COMMITMENTS AND CONTI43

LEASES, COMMITMENTS AND CONTINGENCIES (Detail Textuals) - USD ($) $ in Millions	1 Months Ended	9 Months Ended
	Mar. 31, 2016	Sep. 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) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impairment of goodwill and other intangible assets	$ 1,250	$ 4,172	$ 1,250
Total nonrecurring fair value measurements		18,263
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
Technologies | DIY
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impairment of goodwill and other intangible assets		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
Goodwill | DIY
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impairment of goodwill and other intangible assets		215
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
Total nonrecurring fair value measurements		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
Total nonrecurring fair value measurements		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
Total nonrecurring fair value measurements		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
Total nonrecurring fair value measurements		1,441
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
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
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
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

FAIR VALUE MEASUREMENTS (Deta45

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 PRONOUNCEME46

RECENT ACCOUNTING PRONOUNCEMENTS (Detail Textuals) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Recent Accounting Pronouncements [Line Items]
Deferred financing costs	$ 906	$ 440
Deferred financing costs reclassified from assets to liabilities	400
Long-term debt
Recent Accounting Pronouncements [Line Items]
Deferred financing costs	$ 900