Qumu (QUMU) 10-Q 8 Aug 16 2016 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Aug. 04, 2016
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,016
Current Fiscal Year End Date	--12-31
Document Period End Date	Jun. 30, 2016
Entity Registrant Name	QUMU CORP
Entity Central Index Key	892,482
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		9,232,390

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 8,032	$ 7,072
Marketable securities	250	6,249
Receivables, net of allowance for doubtful accounts of $16 and $24, respectively	5,826	11,257
Income tax receivable	384	659
Prepaid expenses and other current assets	2,873	3,392
Total current assets	17,365	28,629
Property and equipment, net of accumulated depreciation of $3,206 and $2,615, respectively	2,360	2,942
Intangible assets, net	9,472	11,032
Goodwill	7,330	8,103
Deferred income taxes, non-current	60	57
Other assets, non-current	5,299	3,649
Total assets	41,886	54,412
Current liabilities:
Accounts payable and other accrued liabilities	4,154	3,864
Accrued compensation	2,881	4,014
Deferred revenue	10,130	10,413
Deferred rent	296	270
Financing obligations	407	502
Current liabilities from discontinued operations	50	50
Total current liabilities	17,918	19,113
Long-term liabilities:
Deferred revenue, non-current	503	2,215
Income taxes payable, non-current	6	9
Deferred tax liability, non-current	436	575
Financing obligations, non-current	347	519
Deferred rent - non-current	847	998
Other non-current liabilities	0	226
Total long-term liabilities	2,139	4,542
Total liabilities	20,057	23,655
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.01 par value, authorized 250,000 shares, no shares issued and outstanding	0	0
Common stock, $0.01 par value, authorized 29,750,000 shares, issued and outstanding 9,246,803 and 9,188,682, respectively	92	92
Additional paid-in capital	66,206	65,484
Accumulated deficit	(41,721)	(33,298)
Accumulated other comprehensive loss	(2,748)	(1,521)
Total stockholders’ equity	21,829	30,757
Total liabilities and stockholders’ equity	$ 41,886	$ 54,412

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Receivables, allowance for doubtful accounts and sales returns	$ 16	$ 24
Property and equipment, accumulated depreciation and amortization	$ 3,206	$ 2,615
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	29,750,000	29,750,000
Common stock, shares issued	9,246,803	9,188,682
Common stock, shares outstanding	9,246,803	9,188,682
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	250,000	250,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0

Condensed Consolidated Statemen

Condensed Consolidated Statements Of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Revenues:
Software licenses and appliances	$ 836	$ 2,719	$ 2,798	$ 3,703
Service	5,679	6,045	12,453	11,030
Total revenues	6,515	8,764	15,251	14,733
Cost of revenues:
Software licenses and appliances	412	706	1,369	939
Service	2,542	3,786	5,403	7,328
Total cost of revenues	2,954	4,492	6,772	8,267
Gross profit	3,561	4,272	8,479	6,466
Operating expenses:
Research and development	2,410	2,858	4,760	5,660
Sales and marketing	2,978	4,740	6,510	9,568
General and administrative	2,265	3,558	5,235	7,922
Amortization of purchased intangibles	227	200	453	399
Total operating expenses	7,880	11,356	16,958	23,549
Operating loss	(4,319)	(7,084)	(8,479)	(17,083)
Other income (expense):
Interest income (expense), net	(15)	15	(27)	31
Other Nonoperating Income (Expense)	(47)	(4)	(11)	(68)
Total other income (expense), net	(62)	11	(38)	(37)
Loss before income taxes	(4,381)	(7,073)	(8,517)	(17,120)
Income tax benefit	(90)	(146)	(94)	(319)
Net loss from continuing operations	(4,291)	(6,927)	(8,423)	(16,801)
Net loss from discontinued operations, net of tax	0	(22)	0	(89)
Net loss	$ (4,291)	$ (6,949)	$ (8,423)	$ (16,890)
Net loss from continuing operations per share	$ (0.46)	$ (0.75)	$ (0.91)	$ (1.83)
Net income from discontinued operations per share	0	0	0	0
Net loss per share	$ (0.46)	$ (0.75)	$ (0.91)	$ (1.83)
Basic and diluted weighted average shares outstanding	9,236	9,243	9,227	9,206

Condensed Consolidated Stateme5

Condensed Consolidated Statements Of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Statement of Comprehensive Income [Abstract]
Net loss	$ (4,291)	$ (6,949)	$ (8,423)	$ (16,890)
Other comprehensive income (loss):
Net change in foreign currency translation adjustments	(878)	934	(1,228)	99
Change in net unrealized gain (loss) on marketable securities, net of tax	0	7	1	17
Total other comprehensive income (loss)	(878)	941	(1,227)	116
Total comprehensive loss	$ (5,169)	$ (6,008)	$ (9,650)	$ (16,774)

Condensed Consolidated Stateme6

Condensed Consolidated Statements Of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash flows used in operating activities:
Net loss	$ (8,423)	$ (16,890)
Net loss from discontinued operations, net of tax	0	89
Net loss from continuing operations	(8,423)	(16,801)
Adjustments to reconcile net loss to net cash used in continuing operating activities:
Depreciation and amortization	1,700	1,503
Stock-based compensation	740	1,068
Loss on disposal of property and equipment	0	4
Deferred income taxes	(90)	(170)
Changes in operating assets and liabilities:
Receivables	5,192	3,393
Income taxes receivable / payable	241	(209)
Prepaid expenses and other assets	(1,171)	(2,293)
Accounts payable and other accrued liabilities	330	(559)
Accrued compensation	(1,113)	(1,763)
Deferred revenue	(1,749)	1,073
Deferred rent	(120)	0
Other non-current liabilities	(226)	(69)
Net cash used in continuing operating activities	(4,689)	(14,823)
Net cash used in discontinued operating activities	0	(397)
Net cash used in operating activities	(4,689)	(15,220)
Cash flows provided by investing activities:
Purchases of marketable securities	0	(9,250)
Sales and maturities of marketable securities	6,000	17,965
Purchases of property and equipment	(33)	(425)
Proceeds from sale of property and equipment	0	43
Net cash provided by investing activities	5,967	8,333
Cash flows used in financing activities:
Principal payments on financing obligations	(259)	(168)
Common stock repurchases to settle employee withholding liability	(18)	(45)
Proceeds from employee stock plans	0	142
Net cash used in financing activities	(277)	(71)
Effect of exchange rate changes on cash	(41)	9
Net increase (decrease) in cash and cash equivalents	960	(6,949)
Cash and cash equivalents, beginning of period	7,072	11,684
Cash and cash equivalents, end of period	8,032	4,735
Supplemental disclosures of net cash paid during the period:
Income taxes paid, net	23	95
Interest paid	$ 35	$ 2

Nature of Business and Basis of

Nature of Business and Basis of Presentation	6 Months Ended
	Jun. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Business and Basis of Presentation	Nature of Business and Basis of Presentation Qumu Corporation (the "Company") provides the tools businesses need to create, manage, secure, deliver and measure the success of their videos. The Company's innovative solutions release the power in video to engage and empower employees, partners and clients. Organizations around the world realize the greatest possible value from video they create and publish. Whatever the audience size, viewer device or network configuration, the Company's solutions are how business does video. The Company views its operations and manages its business as one segment and one reporting unit. Factors used to identify the Company's single operating segment and reporting unit include the financial information available for evaluation by the chief operating decision maker in making decisions about how to allocate resources and assess performance. The Company manages the marketing of its products and services through regional sales representatives and independent distributors in the United States and international markets. The Company previously conducted its operations through two businesses consisting of 1) its enterprise video content management software business and 2) its disc publishing business. On June 27, 2014, the Company's shareholders approved the sale of the disc publishing assets and on July 1, 2014, the sale was completed. As a result, effective June 27, 2014, the disc publishing business was classified as held for sale and qualified for presentation as discontinued operations effective with the reporting of the Company's financial results for the second quarter of 2014. Accordingly, effective June 27, 2014, the Company had one remaining reportable segment, the enterprise video content management software business. The operational results of the disc publishing business are presented in the “Net loss from discontinued operations, net of tax” line item on the condensed consolidated statements of operations. All remaining amounts presented in the accompanying consolidated financial statements and notes reflect the financial results and financial position of the Company's continuing enterprise video content management software business, other than consolidated amounts reflecting operating results and balances for both the continuing and discontinued operations. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The accompanying condensed consolidated financial statements are unaudited and have been prepared by the Company in accordance with accounting principles generally accepted in the United States of America for interim financial information, pursuant to the rules and regulations of the Securities and Exchange Commission. Pursuant to such rules and regulations, certain financial information and footnote disclosures normally included in a complete set of financial statements have been condensed or omitted. However, in the opinion of management, the financial statements include all adjustments, consisting of normal recurring accruals, necessary for a fair presentation of the financial position and results of operations and cash flows of the interim periods presented. Operating results for these interim periods are not necessarily indicative of results to be expected for the entire year, due to seasonal, operating and other factors. The operating results for the three and six months ended June 30, 2016 and 2015 and the financial position as of June 30, 2016 and December 31, 2015 reflect the Company's disc publishing business as discontinued operations. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K as of and for the year ended December 31, 2015 .

Marketable Securities

Marketable Securities	6 Months Ended
	Jun. 30, 2016
Marketable Securities [Abstract]
Marketable Securities	Marketable Securities Marketable securities consisted of the following (in thousands): June 30, 2016 Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Certificates of deposit $ 250 $ — $ — $ 250 Total marketable securities $ 250 $ — $ — $ 250 December 31, 2015 Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Certificates of deposit $ 6,250 $ — $ (1 ) $ 6,249 Total marketable securities $ 6,250 $ — $ (1 ) $ 6,249

Intangible Assets and Goodwill

Intangible Assets and Goodwill	6 Months Ended
	Jun. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets and Goodwill	Intangible Assets and Goodwill Changes in the Company’s amortizable intangible assets consisted of the following (in thousands): June 30, 2016 Customer Relationships Developed Technology Trademarks / Trade-Names Covenants Not to Compete Total Original cost $ 4,912 $ 8,195 $ 2,183 $ 34 $ 15,324 Accumulated amortization (1,333 ) (3,903 ) (593 ) (23 ) (5,852 ) Net identifiable intangible assets $ 3,579 $ 4,292 $ 1,590 $ 11 $ 9,472 Weighted-average useful lives (years) 10 6 15 2 9 December 31, 2015 Customer Relationships Developed Technology Trademarks / Trade-Names Covenants Not to Compete Total Original cost $ 5,115 $ 8,567 $ 2,190 $ 38 $ 15,910 Accumulated amortization (1,075 ) (3,261 ) (528 ) (14 ) (4,878 ) Net identifiable intangible assets $ 4,040 $ 5,306 $ 1,662 $ 24 $ 11,032 Weighted-average useful lives (years) 10 6 15 2 9 Changes to the carrying amount of net amortizable intangible assets for the six months ended June 30, 2016 consisted of the following (in thousands): Six Months Ended Balance, beginning of period $ 11,032 Amortization expense (1,098 ) Currency translation (462 ) Balance, end of period $ 9,472 Amortization expense of intangible assets consisted of the following (in thousands): Three Months Ended Six Months Ended 2016 2015 2016 2015 Amortization expense associated with the developed technology included in cost of revenues $ 323 $ 317 $ 645 $ 633 Amortization expense associated with other acquired intangible assets included in operating expenses 227 200 453 399 Total amortization expense $ 550 $ 517 $ 1,098 $ 1,032 Changes to the carrying amount of goodwill for the six months ended June 30, 2016 consisted of the following (in thousands): Six Months Ended Balance, beginning of year $ 8,103 Currency translation (773 ) Balance, end of period $ 7,330 During the six months ended June 30, 2016 , the Company’s stock price traded at levels which caused the Company’s enterprise value, excluding any control premium, to approximate its book value, resulting in increased risk of a potential impairment of goodwill. As of June 30, 2016 , the Company’s market capitalization, without a control premium, exceeded its book value by approximately 88% . Declines in the Company's market capitalization could require the Company to record goodwill and other impairment charges. While a goodwill impairment charge is a non-cash charge, it would have a negative impact on the Company's results of operations.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Leases and Other Financing Obligations Balances for assets acquired under capital lease obligations and included in property and equipment were as follows (in thousands): June 30, December 31, Computer and network equipment $ 511 $ 511 Furniture 287 287 Assets acquired under capital lease obligations 798 798 Accumulated depreciation (246 ) (123 ) Assets acquired under capital lease obligations, net $ 552 $ 675 The current and long-term portions of capital leases and other financing obligations were as follows (in thousands): June 30, December 31, Capital leases and other financing obligations, current $ 407 $ 502 Capital leases and other financing obligations, noncurrent 347 519 Total capital leases and other financing obligations $ 754 $ 1,021 The Company leases certain of its facilities and some of its equipment under non-cancelable operating lease arrangements. The rental payments under these leases are charged to expense on a straight-line basis over the non-cancelable term of the lease. Future minimum payments under capital lease obligations, other financing obligations, and non-cancelable operating leases, excluding property taxes and other operating expenses as of June 30, 2016 are as follows (in thousands): Periods ending December 31, Capital leases and other financing obligations Operating leases Total Remainder of 2016 $ 268 $ 710 $ 978 2017 373 1,226 1,599 2018 175 1,020 1,195 2019 3 550 553 2020 — 309 309 Thereafter — 658 658 Total minimum lease payments 819 $ 4,473 $ 5,292 Less amount representing interest (65 ) Present value of net minimum lease payments $ 754 Contingencies The Company is exposed to a number of asserted and unasserted claims encountered in the normal course of business. Legal costs related to loss contingencies are expensed as incurred. In the opinion of management, the resolution of these matters will not have a material adverse effect on the Company’s financial position or results of operations. The Company’s standard arrangements include provisions indemnifying customers against liabilities if the Company's products infringe a third-party’s intellectual property rights. The Company has not incurred any costs in its continuing operations as a result of such indemnifications and has not accrued any liabilities related to such contingent obligations in the accompanying condensed consolidated financial statements.

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jun. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	Stock-Based Compensation The Company granted the following stock-based awards: Three Months Ended Six Months Ended 2016 2015 2016 2015 Stock options 30,000 130,000 30,000 140,000 Restricted stock awards and restricted stock units 120,000 143,468 120,000 150,218 On May 12, 2016, the Company’s shareholders approved an amendment to the 2007 Plan to increase the number of shares authorized under the plan by 500,000 to a total of 2,730,320 shares. With the exception of an award of non-qualified options to purchase 130,000 shares of the Company's common stock to a newly hired executive management level employee on May 18, 2015, the stock options, restricted stock awards and restricted stock units granted during the three and six months ended June 30, 2016 and 2015 were granted under the Company's Second Amended and Restated 2007 Stock Incentive Plan (the "2007 Plan"), a shareholder approved plan. The Company recognized the following expense related to its share-based payment arrangements (in thousands): Three Months Ended Six Months Ended 2016 2015 2016 2015 Stock-based compensation cost, before income tax benefit: Stock options $ 156 $ 158 $ 304 $ 373 Restricted stock awards and restricted stock units 233 342 436 695 Total stock-based compensation $ 389 $ 500 $ 740 $ 1,068 Three Months Ended Six Months Ended 2016 2015 2016 2015 Stock-based compensation cost included in: Cost of revenues $ 25 $ 38 $ 18 $ 74 Operating expenses 364 462 722 994 Total stock-based compensation $ 389 $ 500 $ 740 $ 1,068

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2016
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes As of June 30, 2016 and December 31, 2015 , the Company’s liability for gross unrecognized tax benefits totaled $1.0 million and $970,000 , respectively (excluding interest and penalties). Total accrued interest and penalties relating to unrecognized tax benefits amounted to $3,000 and $4,000 on a gross basis at June 30, 2016 and December 31, 2015 , respectively. The change in the liability for gross unrecognized tax benefits reflects an increase in reserves established for federal and state research and development credits. The Company does not currently expect significant changes in the amount of unrecognized tax benefits during the next twelve months.

Computation of Net Loss From Co

Computation of Net Loss From Continuing Operations Per Share of Common Stock	6 Months Ended
	Jun. 30, 2016
Earnings Per Share [Abstract]
Computation of Net Loss From Continuing Operations Per Share of Common Stock	Computation of Net Loss From Continuing Operations Per Share of Common Stock The following table identifies the components of net loss per basic and diluted share (in thousands, except for per share data): Three Months Ended Six Months Ended 2016 2015 2016 2015 Shares outstanding at end of period 9,247 9,254 9,247 9,254 Basic weighted average shares outstanding 9,236 9,243 9,227 9,206 Dilutive effect of stock options and restricted stock units — — — — Total diluted weighted average shares outstanding 9,236 9,243 9,227 9,206 Net loss from continuing operations $ (4,291 ) $ (6,927 ) $ (8,423 ) $ (16,801 ) Net loss from continuing operations per basic and diluted share $ (0.46 ) $ (0.75 ) $ (0.91 ) $ (1.83 ) Stock options and restricted stock units to acquire weighted average common shares excluded from the computation of diluted weighted average common shares as their effect is anti-dilutive were as follows (in thousands): Three Months Ended Six Months Ended 2016 2015 2016 2015 Anti-dilutive stock options and restricted stock units 1,465 1,632 1,534 1,647

Investment in Software Company

Investment in Software Company	6 Months Ended
	Jun. 30, 2016
Investments, All Other Investments [Abstract]
Investment in Software Company	Investment in Software Company At June 30, 2016 and December 31, 2015 , the Company held an investment totaling $3.1 million in convertible preferred stock of BriefCam, Ltd. (“BriefCam”), a privately-held Israeli company that develops video synopsis technology to augment security and surveillance systems to facilitate review of surveillance video. The investment is included in other non-current assets. Because the Company's ownership interest is less than 20% and it has no other rights or privileges that enable it to exercise significant influence over the operating and financial policies of BriefCam, the Company accounts for this equity investment using the cost method. Equity securities accounted for under the cost method are reviewed quarterly for changes in circumstances or the occurrence of events that suggest the Company’s investment may not be fully recoverable. If an unrealized loss for the investment is considered to be other-than-temporary, the loss will be recognized in the Consolidated Statements of Operations in the period the determination is made. The Company monitors BriefCam's results of operations, business plan and capital raising activities and is not aware of any events or circumstances that would indicate a decline in the carrying value of its investment.

Recently Issued Accounting Stan

Recently Issued Accounting Standards	6 Months Ended
	Jun. 30, 2016
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
Recently Issued Accounting Standards	Recently Issued Accounting Standards In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting , which will simplify the income tax consequences, accounting for forfeitures and classification on the Statements of Consolidated Cash Flows. This standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016, with early adoption permitted. The Company is currently evaluating the impact this guidance will have on the consolidated financial statements and related disclosures. In February 2016, the FASB issued ASU 2016-02, Leases, which will supersede the existing lease guidance and will require all leases with a term greater than 12 months to be recognized in the statements of financial position and eliminate current real estate-specific lease guidance, while maintaining substantially similar classification criteria for distinguishing between finance leases and operating leases. This standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. The Company is currently evaluating the impact this guidance will have on the consolidated financial statements and related disclosures. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers , which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. In July 2015, the FASB voted to amend ASU 2014-09 by approving a one-year deferral of the effective date as well as providing the option to early adopt the standard on the original effective date. The new standard is effective for the Company on January 1, 2018 but may be early adopted effective January 1, 2017. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is currently evaluating the timing of its adoption and the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting.

Marketable Securities (Tables)

Marketable Securities (Tables)	6 Months Ended
	Jun. 30, 2016
Marketable Securities [Abstract]
Schedule Of Marketable Securities	Marketable securities consisted of the following (in thousands): June 30, 2016 Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Certificates of deposit $ 250 $ — $ — $ 250 Total marketable securities $ 250 $ — $ — $ 250 December 31, 2015 Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Certificates of deposit $ 6,250 $ — $ (1 ) $ 6,249 Total marketable securities $ 6,250 $ — $ (1 ) $ 6,249

Intangible Assets and Goodwill

Intangible Assets and Goodwill (Tables)	6 Months Ended
	Jun. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Changes In Intangible Assets	Changes in the Company’s amortizable intangible assets consisted of the following (in thousands): June 30, 2016 Customer Relationships Developed Technology Trademarks / Trade-Names Covenants Not to Compete Total Original cost $ 4,912 $ 8,195 $ 2,183 $ 34 $ 15,324 Accumulated amortization (1,333 ) (3,903 ) (593 ) (23 ) (5,852 ) Net identifiable intangible assets $ 3,579 $ 4,292 $ 1,590 $ 11 $ 9,472 Weighted-average useful lives (years) 10 6 15 2 9 December 31, 2015 Customer Relationships Developed Technology Trademarks / Trade-Names Covenants Not to Compete Total Original cost $ 5,115 $ 8,567 $ 2,190 $ 38 $ 15,910 Accumulated amortization (1,075 ) (3,261 ) (528 ) (14 ) (4,878 ) Net identifiable intangible assets $ 4,040 $ 5,306 $ 1,662 $ 24 $ 11,032 Weighted-average useful lives (years) 10 6 15 2 9 Changes to the carrying amount of net amortizable intangible assets for the six months ended June 30, 2016 consisted of the following (in thousands): Six Months Ended Balance, beginning of period $ 11,032 Amortization expense (1,098 ) Currency translation (462 ) Balance, end of period $ 9,472
Amortization Expense	Amortization expense of intangible assets consisted of the following (in thousands): Three Months Ended Six Months Ended 2016 2015 2016 2015 Amortization expense associated with the developed technology included in cost of revenues $ 323 $ 317 $ 645 $ 633 Amortization expense associated with other acquired intangible assets included in operating expenses 227 200 453 399 Total amortization expense $ 550 $ 517 $ 1,098 $ 1,032
Changes in Goodwill	Changes to the carrying amount of goodwill for the six months ended June 30, 2016 consisted of the following (in thousands): Six Months Ended Balance, beginning of year $ 8,103 Currency translation (773 ) Balance, end of period $ 7,330

Commitments and Contingencies (

Commitments and Contingencies (Tables)	6 Months Ended
	Jun. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Schedule of Capital Leased Assets	Balances for assets acquired under capital lease obligations and included in property and equipment were as follows (in thousands): June 30, December 31, Computer and network equipment $ 511 $ 511 Furniture 287 287 Assets acquired under capital lease obligations 798 798 Accumulated depreciation (246 ) (123 ) Assets acquired under capital lease obligations, net $ 552 $ 675
Schedule of Debt	The current and long-term portions of capital leases and other financing obligations were as follows (in thousands): June 30, December 31, Capital leases and other financing obligations, current $ 407 $ 502 Capital leases and other financing obligations, noncurrent 347 519 Total capital leases and other financing obligations $ 754 $ 1,021
Schedule of Future Minimum Lease Payments for Capital Leases	Future minimum payments under capital lease obligations, other financing obligations, and non-cancelable operating leases, excluding property taxes and other operating expenses as of June 30, 2016 are as follows (in thousands): Periods ending December 31, Capital leases and other financing obligations Operating leases Total Remainder of 2016 $ 268 $ 710 $ 978 2017 373 1,226 1,599 2018 175 1,020 1,195 2019 3 550 553 2020 — 309 309 Thereafter — 658 658 Total minimum lease payments 819 $ 4,473 $ 5,292 Less amount representing interest (65 ) Present value of net minimum lease payments $ 754

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule Of Share-Based Payment Arrangements	The Company granted the following stock-based awards: Three Months Ended Six Months Ended 2016 2015 2016 2015 Stock options 30,000 130,000 30,000 140,000 Restricted stock awards and restricted stock units 120,000 143,468 120,000 150,218
Schedule of Allocation of Share-based Compensation Costs by Plan	The Company recognized the following expense related to its share-based payment arrangements (in thousands): Three Months Ended Six Months Ended 2016 2015 2016 2015 Stock-based compensation cost, before income tax benefit: Stock options $ 156 $ 158 $ 304 $ 373 Restricted stock awards and restricted stock units 233 342 436 695 Total stock-based compensation $ 389 $ 500 $ 740 $ 1,068 Three Months Ended Six Months Ended 2016 2015 2016 2015 Stock-based compensation cost included in: Cost of revenues $ 25 $ 38 $ 18 $ 74 Operating expenses 364 462 722 994 Total stock-based compensation $ 389 $ 500 $ 740 $ 1,068

Computation of Net Loss From 20

Computation of Net Loss From Continuing Operations Per Share of Common Stock (Tables)	6 Months Ended
	Jun. 30, 2016
Earnings Per Share [Abstract]
Components Of Net Income (Loss) Per Basic And Diluted Share	The following table identifies the components of net loss per basic and diluted share (in thousands, except for per share data): Three Months Ended Six Months Ended 2016 2015 2016 2015 Shares outstanding at end of period 9,247 9,254 9,247 9,254 Basic weighted average shares outstanding 9,236 9,243 9,227 9,206 Dilutive effect of stock options and restricted stock units — — — — Total diluted weighted average shares outstanding 9,236 9,243 9,227 9,206 Net loss from continuing operations $ (4,291 ) $ (6,927 ) $ (8,423 ) $ (16,801 ) Net loss from continuing operations per basic and diluted share $ (0.46 ) $ (0.75 ) $ (0.91 ) $ (1.83 )

Nature of Business and Basis 21

Nature of Business and Basis of Presentation (Details)	6 Months Ended
	Jun. 30, 2016segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of reportable segments	1

Marketable Securities (Schedule

Marketable Securities (Schedule Of Marketable Securities) (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Marketable Securities [Line Items]
Cost	$ 250	$ 6,250
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	(1)
Fair Value	250	6,249
Certificates Of Deposit
Marketable Securities [Line Items]
Cost	250	6,250
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	(1)
Fair Value	$ 250	$ 6,249

Intangible Assets and Goodwil23

Intangible Assets and Goodwill (Components Intangible Assets) (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Finite-Lived Intangible Assets [Line Items]
Original cost	$ 15,324	$ 15,910
Accumulated amortization	(5,852)	(4,878)
Net identifiable intangible assets	$ 9,472	$ 11,032
Weighted-average useful lives (years)	9 years	9 years
Customer Relationships
Finite-Lived Intangible Assets [Line Items]
Original cost	$ 4,912	$ 5,115
Accumulated amortization	(1,333)	(1,075)
Net identifiable intangible assets	$ 3,579	$ 4,040
Weighted-average useful lives (years)	10 years	10 years
Developed Technology
Finite-Lived Intangible Assets [Line Items]
Original cost	$ 8,195	$ 8,567
Accumulated amortization	(3,903)	(3,261)
Net identifiable intangible assets	$ 4,292	$ 5,306
Weighted-average useful lives (years)	6 years	6 years
Trademarks / Trade-Names
Finite-Lived Intangible Assets [Line Items]
Original cost	$ 2,183	$ 2,190
Accumulated amortization	(593)	(528)
Net identifiable intangible assets	$ 1,590	$ 1,662
Weighted-average useful lives (years)	15 years	15 years
Covenants Not to Compete
Finite-Lived Intangible Assets [Line Items]
Original cost	$ 34	$ 38
Accumulated amortization	(23)	(14)
Net identifiable intangible assets	$ 11	$ 24
Weighted-average useful lives (years)	2 years	2 years

Intangible Assets and Goodwil24

Intangible Assets and Goodwill (Intangible Assets Rollforward) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Finite-lived Intangible Assets [Roll Forward]
Balance, beginning of period			$ 11,032
Amortization expense	$ (550)	$ (517)	(1,098)	$ (1,032)
Currency translation			462
Balance, end of period	$ 9,472		$ 9,472

Intangible Assets and Goodwil25

Intangible Assets and Goodwill (Amortization Expense) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Amortization expense
Amortization of Intangible Assets, Production and Nonproduction	$ 550	$ 517	$ 1,098	$ 1,032
Amortization of Intangible Assets	227	200	453	399
Cost of revenues
Amortization expense
Amortization of Intangible Assets	323	317	645	633
Operating expenses
Amortization expense
Amortization of Intangible Assets	$ 227	$ 200	$ 453	$ 399

Intangible Assets and Goodwil26

Intangible Assets and Goodwill (Goodwill) (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2016USD ($)
Goodwill [Line Items]
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount	88.00%
Goodwill [Roll Forward]
Balance, beginning of year	$ 8,103
Currency translation	(773)
Balance, end of period	$ 7,330

Commitments and Contingencies27

Commitments and Contingencies (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Capital Leased Assets [Line Items]
Capital Leased Assets, Gross	$ 798	$ 798
Capital Leases, Lessee Balance Sheet, Assets by Major Class, Accumulated Depreciation	(246)	(123)
Capital Leases, Balance Sheet, Assets by Major Class, Net	552	675
Computer and network equipment
Capital Leased Assets [Line Items]
Capital Leased Assets, Gross	511	511
Furniture
Capital Leased Assets [Line Items]
Capital Leased Assets, Gross	$ 287	$ 287

Commitments and Contingencies28

Commitments and Contingencies (Schedule of Capital Leases and Other Financing Obligations) (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Capital leases and other financing obligations, current	$ 407	$ 502
Capital leases and other financing obligations, noncurrent	347	519
Capital Lease Obligations	$ 754	$ 1,021

Commitments and Contingencies29

Commitments and Contingencies (Future Minimum Lease Payments) (Details) $ in Thousands	Dec. 31, 2015USD ($)
Contractual Obligation, Fiscal Year Maturity Schedule [Abstract]
Remainder of 2016	$ 978
2,017	1,599
2,018	1,195
2,019	553
2,020	309
Thereafter	658
Total minimum lease payments	5,292
Capital leases and other financing obligations
Remainder of 2016	268
2,017	373
2,018	175
2,019	3
2,020	0
Thereafter	0
Total minimum lease payments	819
Less amount representing interest	(65)
Present value of net minimum lease payments	754
Operating leases
Remainder of 2016	710
2,017	1,226
2,018	1,020
2,019	550
2,020	309
Thereafter	658
Total minimum lease payments	$ 4,473

Stock-Based Compensation (Sched

Stock-Based Compensation (Schedule of Stock-based Awards Granted) (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of stock options granted during period (in shares)	30,000		30,000	140,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures		130,000
2007 Stock Incentive Plan | Restricted stock awards and restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of equity other than options granted during period (in shares)	120,000	143,468	120,000	150,218

Stock-Based Compensation (Sch31

Stock-Based Compensation (Schedule Of Allocation of Share-Based Compensation Costs) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Cost Charged Against Income	$ 389	$ 500	$ 740	$ 1,068
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Cost Charged Against Income	156	158	304	373
Restricted stock awards and restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Cost Charged Against Income	233	342	436	695
Cost of revenues
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Cost Charged Against Income	25	38	18	74
Operating expenses
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Cost Charged Against Income	$ 364	$ 462	$ 722	$ 994

Stock-Based Compensation Narrat

Stock-Based Compensation Narrative (Details) - shares	May 12, 2016	Jun. 30, 2015
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures		130,000
2007 Stock Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized	500,000
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	2,730,320

Income Taxes (Details)

Income Taxes (Details) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Unrecognized tax benefits	$ 1,000,000	$ 970,000
Accrued interest and penalties relating to unrecognized tax benefits	$ 3,000	$ 4,000

Computation of Net Loss From 34

Computation of Net Loss From Continuing Operations Per Share of Common Stock (Components Of Net Income (Loss) Per Basic And Diluted Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Shares outstanding at end of period	9,247	9,254	9,247	9,254
Basic weighted average shares outstanding	9,236	9,243	9,227	9,206
Dilutive effect of stock options/restricted stock units	0	0	0	0
Total diluted weighted average shares outstanding	9,236	9,243	9,227	9,206
Net loss from continuing operations	$ (4,291)	$ (6,927)	$ (8,423)	$ (16,801)
Net loss from continuing operations per share	$ (0.46)	$ (0.75)	$ (0.91)	$ (1.83)
Stock Compensation Plan
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Antidilutive securities excluded from computation of earnings per share	1,465	1,632	1,534	1,647

Investment in Software Company

Investment in Software Company (Details) - Briefcam Ltd. - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
Cost method investments	$ 3.1	$ 3.1
Maximum
Minority ownership interest (less than 20%)	20.00%	20.00%